February 12, 1999
Dear Fellow Shareholders,
Enclosed is our semi-annual report to shareholders. We are very
pleased to bring you these results. From April 1 through December 31, 1998, our
Fund was ahead 23.8%, compared with the S&P 500 Index's gain of 11.5%. Even more
dramatic was the performance of our fund when you add in the month of January
1999. In January alone, we were ahead 17.58%! That made us the 39th best
performing fund of the 10,293 funds tracked by Morningstar! So, what does that
mean in dollars and cents? An investment of $10,000 with our fund on April 1,
1998 was worth $14,557 on January 31, 1999, a 45.6% gain. The same investment in
the S&P 500 Index was worth $11,606, a gain of 16%. The chart below is a
timeline of the results.
Chart of Performance of $10,000 from April 1, 1998
To January 31, 1999 with the Marathon Fund compared
To the Standard & Poor's 500 Index
We use old-fashioned investment techniques, selecting the best
companies in the fastest growing industries. We avoid foreign companies, buying
on margin, short selling, futures, options, and high portfolio turnover. We are
investing for the 3-5 year period. While there are no guarantees about the
future, we are proud that we have outperformed the S&P 500 Index and 95% or more
of all mutual funds through January 31, 1999.
We take this opportunity to remind you to fund your Individual
Retirement Accounts before April 15, 1999. If you need forms or if you have any
questions, please call us at 1-415-693-0800 or toll free at 1-888-88-BOYLE or by
e-mail at [email protected]. We also remind to visit our web site
[www.boylefund.com] to read our daily commentary on the stock market and other
matters.
Sincerely yours,
/s/ Michael /s/ Joanne
_____________________
Michael and Joanne Boyle
<PAGE>
Boyle Marathon Fund
Schedule of Investments
December 31,1998 (unaudited)
Shares/Principal Amount Market Value % of Assets
----------------------- ------------ -----------
Technology
700 America Online 108,587
3,500 Applied Signal Technology * 37,625
1,350 Cisco Systems Inc. * 125,297
2,200 Dell Computer Corp. * 161,013
500 Digital Microwave Corp * 3,422
200 EMC Corporation * 17,000
500 Excite, Inc. * 21,031
100 Intel Corp. 11,856
300 Microsoft Corp. * 41,606
400 Quantum Corp. * 8,500
---------
535,937 37.17%
Retail
1,500 Gap Inc. 84,187
1,100 Home Depot Inc. 67,306
500 Preview Travel, Inc.* 9,219
300 Rite Aid 14,869
800 Ross Stores, Inc. 31,500
200 Safeway Inc. * 12,188
400 Starbucks Corp. * 22,450
300 Walgreen Co. 5,856
---------
247,575 17.17%
Pharmaceuticals
50 Bristol Myers Squibb Co. 6,691
50 Johnson & Johnson 4,194
500 Lilly, Eli & Co. 44,437
1,100 McKesson Corp. 86,969
250 Merck & Co. Inc. 36,875
300 Monsanto Co. 14,100
250 Pfizer Inc. 31,250
400 Warner Lambert Co. 30,075
300 Watson Pharmaceuticals, Inc.* 18,863
---------
273,454 18.97%
Financial Services
2,000 E Trade Group * 93,562
100 Fedl National Mortgage Assoc. 7,400
1,000 Hambrecht & Quist Group, Inc.* 22,250
2,000 Pre-Paid Legal Services, Inc.* 66,000
1,300 Robert Half International * 57,850
1,500 Schwab (Charles) Corp. 84,281
500 Silicon Valley Bancshares* 8,516
---------
339,859 23.57%
Cash and Equivalents
53,393 Fountain Square Treasury 53,393 3.70%
Total Investments 1,450,218 100.59%
Other Assets Less Liabilities (8,471) -0.59%
Net Assets - Equivalent to
$12.17 per share on 1,441,747 100.00%
* Non-Income producing securites.
The acompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Assets and Liabilites
December 31, 1998 (unaudited)
Assets:
Investment Securities at Market Value 1,450,218
(Identified Cost - $1,084,093)
Cash 100
Receivables:
Dividends and Interest 486
Other Assets 8,215
---------
Total Assets 1,459,019
Liabilities
Payables:
Investment Securities Purchased -
Shareholder Distributions -
Accrued Expenses 17,271
---------
Total Liabilities 17,271
Net Assets 1,441,748
Net Assets Consist of:
Capital Paid In 1,164,957
Undistributed Net Investment Income (20,863)
Accumulated Realized Gain (Loss)
on Investments - Net (74,001)
Unrealized Appreciation in Value of
Investments Based on Identified Cost - Net 371,655
---------
Net Assets, for 118,487 Shares Outstanding 1,441,748
Net Asset Value and Redemption Price
Per Share ($1,441,748/118,487 shares) 12.17
Offering Price Per Share 12.17
The acompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Operations
For six months ending December 31, 1998 (unaudited)
Investment Income:
Dividends 1,210
Interest 1,269
---------
Total Investment Income 2,479
Expenses
Management Fees (Note 2) 8,082
Administration Fee 5,388
Audit 4,112
Other expenses 1,551
Organizational Costs 992
---------
Total Expenses 20,125
Net Investment Income (17,646)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (74,001)
Distribution of Realized Capital Gains from
other Investment Companies -
Unrealized Gain (Loss) from Appreciation
(Depreciation) on Investments 316,161
Net Realized and Unrealized Gain (Loss)
---------
on Investments 242,160
Net Increase (Decrease) in Net Assets
from Operations 224,514
The acompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Changes in Net Assets (unaudited)
7/1/98 2/23/98
to to
12/31/98 6/30/98
-------- -------
From Operations:
Net Investment Income (17,646) (3,197)
Net Realized Gain (Loss) on Investments (74,001) 0
Net Unrealized Appreciation (Depreciation) 316,161 55,494
-------- -------
Increase (Decrease) in Net Assets from Operations 224,514 52,297
From Distributions to Shareholders
Net Investment Income 0 0
Net Realized Gain (Loss) from Security Transactions 0 0
-------- -------
Net Increase (Decrease) from Distributions 0 0
From Capital Share Transactions:
Proceeds From Sale of 22,918 Shares 231,995 932,962
Net Asset Value of 0 Shares Issued on Reinvestment
of Dividends 0 0
Cost of 0 Shares Redeemed 0 0
-------- -------
231,995 932,962
Net Increase in Net Assets 456,509 985,259
Net Assets at Beginning of Period 985,259 0
Net Assets at End of Period 1,441,768 985,259
The acompanying notes are an integral part of the financial statements.
<PAGE>
Financial Highlights (unaudited)
Selected data for a share of common stock outstanding throughout the period:
7/1/98 2/23/98
to to
12/31/98 6/30/98
-------- -------
Net Asset Value -
Beginning of Period 10.31 10.00
Net Investment Income (0.15) (0.05)
Net Gains or Losses on Securities
(realized and unrealized) 2.01 0.36
-------- -------
Total from Investment Operations 1.86 0.31
Dividends
(from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
Return of Capital 0.00 0.00
-------- -------
Total Distributions 0.00 0.00
Net Asset Value -
End of Period 12.17 10.31
Total Return * 36.08% 8.84%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 1,442 985
Before reimbursments
Ratio of Expenses to Average Net Assets* 7.42% 6.59%
Ratio of Net Income to Average Net Assets* (6.51)% (3.98)%
Portfolio Turnover Rate 20.79% 0.00%
Average commission per share 0.06891 0.04404
*Annualized
The acompanying notes are an integral part of the financial statements.
<PAGE>
Boyle Marathon Fund
Notes to Financial Statements
December 31, 1998 (unaudited)
1.) SIGNIFICANT ACCOUNTING POLICIES
The Fund is a open-end management investment company, organized as a
Trust under the laws of the State of Delaware by a Declaration of Trust
in October 1997. The Fund's investment objective is long-term capital
appreciation. The Fund intends to invest primarily in securities of
companies in the high technology, financial services, pharmaceutical,
and retail fields. Significant accounting policies of the Fund are
presented below:
SECURITY VALUATION:
The Fund intends to invest in a wide variety of equity and debt
securities. The investments in securities are carried at market value.
The market quotation used for common stocks, including those listed on
the NASDAQ National Market System, is the last sale price on the date on
which the valuation is made or, in the absence of sales, at the closing
bid price. Over-the-counter securities will be valued on the basis of
the bid price at the close of each business day. Short-term investments
are valued at amortized cost, which approximates market. Securities for
which market quotations are not readily available will be valued at fair
value as determined in good faith pursuant to procedures established by
the Board of Directors.
SECURITY TRANSACTION TIMING
Security transactions are recorded on the dates transactions are entered
into. Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Interest income is recorded as earned. The Fund
uses the identified cost basis in computing gain or loss on sale of
investment securities.
INCOME TAXES:
It is the Fund's policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements
of the Internal Revenue Service. This Internal Revenue Service
requirement may cause an excess of distributions over the book year-end
accumulated income. In addition, it is the Fund's policy to distribute
annually, after the end of the fiscal year, any remaining net investment
income and net realized capital gains.
ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
2.) INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory and administration
agreement with Boyle Management and Research, Inc. The Investment
Advisor receives from the Fund as compensation for its services an
annual fee of 1.5% on the Fund's net assets. Boyle Management and
Research, Inc. receives from the fund as compensation for its
administrative services an annual fee of 1.0% of the fund's net assets.
Boyle Management and Research, Inc. has agreed to be responsible for
payment of all operation expenses of the fund except for brokerage and
commission expenses, expenses of the trustees who are not officers of
the Investment Adviser, annual independent audit expenses and any
extraordinary and non-recurring expenses. From time to time, Boyle
Management and Research, Inc. may waive some or all of the fees and may
reimburse expenses of the Fund.
<PAGE>
Boyle Marathon Fund
Notes to Financial Statements
December 31, 1998 (unaudited)
3.) RELATED PARTY TRANSACTIONS
Certain owners of Boyle Management and Research, Inc. are also owners
and/or directors of the Boyle Marathon Fund. These individuals may
receive benefits from any management and or administration fees paid to
the Advisor.
4.) CAPITAL STOCK AND DISTRIBUTION
At December 31, 1998 an indefinite number of shares of capital stock
were authorized, and paid-in capital amounted to $1,164,957.
Transactions in common stock were as follows:
Shares sold 22,918
Shares issued to shareholders in
reinvestment of dividends 0
22,918
Shares redeemed
0
Net Increase 22,918
Shares Outstanding:
Beginning of Period
95,569
End of Period 118,487
5.) PURCHASES AND SALES OF SECURITIES
During the period six month period ending December 31, 1998, purchases
and sales of investment securities other than U.S. Government
obligations and short-term investments aggregated $438,783 and $223,668
respectively. Purchases and sales of U.S. Government obligations
aggregated $0 and $0 respectively.
6.) FINANCIAL INSTRUMENTS DISCLOSURE
There are no reportable financial instruments that have any off-balance
sheet risk as of December 31, 1998.
7.) SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at
December 31, 1998 was the same as identified cost.
At December 31, 1998, the composition of unrealized appreciation (the
excess of value over tax cost) and depreciation (the excess of tax cost
over value) was as follows:
Appreciation (Depreciation) Net Appreciation
(Depreciation)
404,788 (33,133) 371,655
