[TREE GRAPHIC OMITTED]
SEMI-ANNUAL
REPORT
-----------
APRIL 30, 1999
PIN OAK AGGRESSIVE STOCK
WHITE OAK GROWTH STOCK
RED OAK TECHNOLOGY SELECT
[OAK ASSOCIATES LOGO OMITTED]
OAK ASSOCIATES FUNDS
INVESTMENT ADVISER:
OAK ASSOCIATES, LTD.
WWW.OAKASSOCIATES.COM
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
-------
Message to Shareholders ................................................. 1
Market Commentary ....................................................... 3
Financial Highlights .................................................... 4
Statement of Net Assets ................................................. 6
Statement of Operations ................................................. 10
Statement of Changes in Net Assets ...................................... 11
Notes to Financial Statements ........................................... 12
- --------------------------------------------------------------------------------
Oak Associates, ltd., the investment adviser to the Funds, was established in
1985 and currently manages over $13 billion in pension, endowment, individual
and mutual fund assets. Oak concentrates in the market sectors believed to
have the greatest long-term growth potential and then focuses on key
companies in those areas. Oak believes that a patient buy and hold strategy,
low portfolio turnover, and controlled fund operating expense ratios are
integral to achieving superior long-term performance.
- --------------------------------------------------------------------------------
<PAGE>
MESSAGE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Fellow Shareholders:
[TREE GRAPHIC OMITTED]
We are pleased to send you the Oak Associates Funds' semi-annual report, which
contains information on the holdings of each of the Funds, along with the
Financial Highlights, Statement of Operations and Statement of Changes for the
six-month period ended April 30, 1999. We encourage you to read them to help you
stay informed about your mutual fund investment.
Although market volatility continues, with short-term irrational swings, overall
the past six months have been very positive for the Funds. Performance has
recovered sharply from the market downturn in October 1998, when the problems in
Asia caused a ripple effect through the U.S. markets. The Funds' solid
performance and a simple investment approach continue to garner media attention
in national publications. And while our primary responsibility is investment
management, our team is constantly working to improve service for
shareholders.
Some noteworthy highlights of the last six months include:
PERFORMANCE -- White Oak Growth and Pin Oak Aggressive returned 33.87% and
33.61%, respectively, for the six months ending April 30, 1999. For comparison,
the S&P 500 Index was up 22.32% during the same period. Red Oak Technology
Select has returned 11.50% since its inception on December 31, 1998, versus the
Nasdaq 100's return of 16.40%.
CONTINUED ASSET GROWTH -- As of April 30, 1999, we have grown to a $1.75 billion
fund company, up from $872 million in assets six months earlier.
RED OAK TECHNOLOGY SELECT FUND OPENS -- Launched on December 31, 1998, Red Oak
has gathered $68 million in assets and has performed well against its peer
group.
WEB SITE ENHANCEMENTS -- We have recently added an online account access
function to our site, WWW.OAKASSOCIATES.COm, where shareholders can view their
account balance and transaction history. Our Web team is planning major design
enhancements for the site this summer, which will provide additional investment
information and tools.
NATIONAL MEDIA ATTENTION -- For the second year in a row, White Oak Growth was
named to the "Money100" list of the best mutual funds in America, as selected by
MONEY magazine. In March, Red Oak Technology Select was featured in a
SMARTMONEY.COM story that is now posted on our Web site. And in April, Pin Oak
Aggressive was highlighted by INVESTOR'S BUSINESS DAILY in an article on high
performing small cap funds.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
1
<PAGE>
MESSAGE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
We are proud of the accomplishments we have made, and will continue to improve
upon them as we grow. The Oak Associates Funds' investment team understands your
interest in keeping abreast of all aspects of your investment because, like you,
we too are shareholders. If you have any suggestions, comments or questions
regarding your investment, please visit our Web site at WWW.OAKASSOCIATES.COM,
or call us toll-free at 1-888-462-5386.
As always, we appreciate the trust you have placed in us, and will continue to
work hard to help you achieve your financial objectives.
Sincerely,
/S/SIGNATURE /S/SIGNATURE
[PHOTO OMITTED] [PHOTO OMITTED]
James D. Oelschlager Douglas S. MacKay
CHIEF INVESTMENT OFFICER CO-PORTFOLIO MANAGER
PORTFOLIO MANAGER RED OAK TECHNOLOGY SELECT FUND
1-888-462-5386
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
2
<PAGE>
MARKET COMMENTARY
- --------------------------------------------------------------------------------
APRIL 30, 1999
Over the last six months, we have witnessed a strong recovery in the market.
While it may be hard to believe viewed from today's levels, the late
summer-early fall market correction could accurately be characterized as a bear
market given the magnitude of the decline -- over 20%. If you believe, as we do,
in the long-term potential of the market, then this downturn merely provided
several potential investment opportunities for investors. The recovery since the
October lows has been broad-based, across all of the sectors in which we invest
- -- technology, financial services and healthcare.
During the latter part of April, there has been a rotation out of growth stocks,
mostly technology and healthcare names, and into the previously out-of-favor
cyclical and commodity stocks. We believe that this rotation will be a short-
lived, temporary event. In essence, we believe it will prove to be a head-fake.
Many of these companies' profits are dependent on trends in commodity pricing.
Once prices increase, even for a short while, manufacturers won't be able to
keep themselves from flooding the market with additional goods, thereby bringing
the prices back down again. Such is the pattern of commodity-based companies.
This is the reason why we stay focused on long-term, sustainable potential
rather than trying to time the ups and downs of a stock group with poor relative
potential.
There has also been a great deal of talk about the recently released uptick in
the consumer price index, a primary measure of inflation in the economy. While
we do believe that inflation and interest rates are extremely important in
determining what the stock market does going forward, we would note that the
0.7% reported figure is only for a single month period and comes on the heels of
several months of very low numbers. The strong growth in productivity, the lack
of a sustained rise in commodity prices, low levels of inventory brought about
by intense supply chain management efforts, increased industry-wide competition
brought about by the Internet, and falling labor costs, all support lower
inflation ahead, not higher, as this month's statistic suggests. We would note
that over the last several months, unit labor costs have been declining, thanks
in large part to productivity gains that have been averaging over 4% on a
quarterly basis. It has been widely publicized before, even by the Fed chairman
himself, that the CPI number is misleading, and probably overstated. While we
are not ignoring the reported number, given the risk that inflation can pose to
the market, we think this happens to be a false reading.
In essence, we continue to expect more of the same -- a high growth, low
inflation economy. With the second Industrial Revolution underway, we will
likely see a continued surge in wealth creation that not only benefits the Gates
of the world, but also extends to the average person on the street. We continue
to favor healthcare, technology, and financial services companies in the current
environment, and are sticking with the leaders within their respective
categories. These remain great times for investors.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
3
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED APRIL 30, 1999 (UNAUDITED)
AND THE PERIODS ENDED OCTOBER 31,
<TABLE>
<CAPTION>
REALIZED AND NET
NET ASSET NET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET NET ASSETS
VALUE INVESTMENT GAINS OR FROM NET FROM VALUE END OF
BEGINNING INCOME (LOSSES) ON INVESTMENT CAPITAL END OF TOTAL PERIOD
OF PERIOD (LOSS) SECURITIES INCOME GAINS PERIOD RETURN+ (000)
- ------------------------------------------------------------------------------------------------------------------------
PIN OAK AGGRESSIVE STOCK FUND
<S> <C> <C> <C> <C> <C> <C>
1999 $21.96 (0.08) 7.46 -- -- $29.34 33.61% $65,489
1998(1) $19.46 (0.15) 2.65 -- -- $21.96 12.85% $41,444
1997 $17.08 (0.11) 2.49 -- -- $19.46 13.93% $31,681
1996 $17.32 (0.09) (0.15) -- -- $17.08 (1.39)% $23,738
1995 $11.60 (0.08) 5.80 -- -- $17.32 49.31% $15,652
1994 $12.62 (0.06) (0.96) -- -- $11.60 (8.08)% $9,624
1993 $10.28 (0.05) 2.39 -- -- $12.62 22.76% $9,079
1992(2) $10.00 -- 0.28 -- -- $10.28 11.57% $4,127
WHITE OAK GROWTH STOCK FUND
1999 $34.04 (0.05) 11.58 -- -- $45.57 33.87% $1,612,526
1998(1) $29.29 (0.05) 4.86 -- (0.06) $34.04 16.48% $830,219
1997 $21.88 0.03 7.49 (0.04) (0.07) $29.29 34.46% $362,404
1996 $18.08 0.05 3.80 (0.05) -- $21.88 21.33% $26,109
1995 $11.92 0.04 6.15 (0.03) -- $18.08 52.07% $10,495
1994 $10.64 0.02 1.28 (0.02) -- $11.92 12.24% $5,942
1993 $10.33 0.05 0.32 (0.06) -- $10.64 3.59% $5,539
1992(2) $10.00 0.02 0.33 (0.02) -- $10.33 14.30% $3,195
RED OAK TECHNOLOGY SELECT FUND
1999(3) $10.00 (0.02) 1.17 -- -- $11.15 11.50% $68,007
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO OF NET INCOME
RATIO OF EXPENSES (LOSS) TO
RATIO OF NET INCOME TO AVERAGE AVERAGE NET
EXPENSES TO (LOSS) TO NET ASSETS ASSETS PORTFOLIO
AVERAGE AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------
PIN OAK AGGRESSIVE STOCK FUND
<S> <C> <C> <C> <C> <C>
1999 1.00%* (0.60)%* 1.11%* (0.71)%* 11.79%
1998(1) 1.00% (0.79)% 1.14% (0.93)% 10.04%
1997 0.99% (0.75)% 1.23% (0.99)% 17.30%
1996 0.96% (0.62)% 1.47% (1.13)% 31.65%
1995 0.98% (0.70)% 1.65% (1.37)% 49.28%
1994 0.96% (0.62)% 1.74% (1.40)% 48.88%
1993 0.98% (0.48)% 2.07% (1.57)% 68.32%
1992(2) 1.00%* 0.03 %* 4.06%* (3.03)%* 4.00%
WHITE OAK GROWTH STOCK FUND
1999 1.00%* (0.30)%* 1.02%* (0.32)%* --
1998(1) 1.00% (0.22)% 1.07% (0.29)% 6.16%
1997 0.98% 0.06 % 1.14% (0.10)% 7.90%
1996 0.95% 0.23 % 1.50% (0.32)% 8.07%
1995 0.97% 0.29 % 2.06% (0.80)% 22.43%
1994 0.97% 0.19 % 2.24% (1.08)% 37.42%
1993 0.97% 0.54 % 2.71% (1.20)% 27.48%
1992(2) 1.00%* 0.74 %* 4.78%* (3.04)%* --
RED OAK TECHNOLOGY SELECT FUND
1999(3) 1.00%* (0.66)%* 1.35%* (1.01)%* 1.61%
<FN>
* ANNUALIZED
+ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIOD PRIOR TO FEBRUARY 27,
1998 IS THE FINANCIAL DATA OF THE PIN OAK AGGRESSIVE STOCK FUND AND THE
WHITE OAK GROWTH STOCK FUND, RESPECTIVELY, EACH A SERIES OF THE ADVISORS'
INNER CIRCLE FUND.
(2) THE PIN OAK AGGRESSIVE STOCK FUND AND THE WHITE OAK GROWTH STOCK FUND
COMMENCED OPERATIONS ON AUGUST 3, 1992. (3) THE RED OAK TECHNOLOGY SELECT FUND
COMMENCED OPERATIONS ON DECEMBER 31, 1998.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
WWW.OAKASSOCIATES.COM
4 & 5
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
PIN OAK AGGRESSIVE STOCK FUND
- ----------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------
COMMON STOCKS--94.6%
AIRCRAFT--4.7%
Gulfstream Aerospace* 63,000 $ 3,071
--------
3,071
--------
ATM MACHINES--4.0%
Diebold 108,500 2,611
--------
2,611
--------
BANKS--4.8%
MBNA 112,200 3,163
--------
3,163
--------
COMPUTER-AIDED DESIGN SOFTWARE--7.4%
Parametric Technology* 175,000 2,286
Synopsys* 55,000 2,592
--------
4,878
--------
COMPUTER COMMUNICATIONS EQUIPMENT--19.1%
3Com* 61,000 1,594
Cisco Systems* 95,400 10,882
--------
12,476
--------
COMPUTER HARDWARE--2.0%
Compaq Computer 58,500 1,305
--------
1,305
--------
INSURANCE--2.0%
Mutual Risk Management
Limited 34,732 1,350
--------
1,350
--------
MANAGED HEALTH CARE SERVICES--8.6%
Express Scripts, Cl A* 76,300 5,617
--------
5,617
--------
SEMI-CONDUCTOR CAPITAL EQUIPMENT MANUFACTURING--4.6%
Applied Materials* 55,900 2,998
--------
2,998
--------
SEMI-CONDUCTORS/ELECTRONICS--22.1%
Atmel* 112,500 2,053
Linear Technology 55,600 3,162
Maxim Integrated
Products* 59,400 3,326
Vitesse Semiconductor* 60,000 2,779
Xilinx* 68,800 3,139
--------
14,459
--------
- ----------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ----------------------------------------------
TECHNOLOGY CONSULTING SERVICES--5.7%
International Network
Services* 98,550 $ 3,745
--------
3,745
--------
TELECOMMUNICATIONS EQUIPMENT--9.6%
Ascend Communications* 29,000 2,802
Aspect
Telecommunications* 167,600 1,336
Ciena* 90,700 2,131
--------
6,269
--------
TOTAL COMMON STOCKS
(Cost $35,198) 61,942
--------
REPURCHASE AGREEMENT--6.5%
J.P. Morgan
4.820%, dated 04/30/99,
matures 05/03/99, repurchase
price $4,296,128 (collateralized by
U.S. Treasury Note, par value
$4,336,000, 3.875%, 01/15/09,
total market value:
$4,380,703) $4,294 4,294
--------
TOTAL REPURCHASE AGREEMENT
(Cost $4,294) 4,294
--------
TOTAL INVESTMENTS-- 101.1%
(Cost $39,492) 66,236
--------
OTHER ASSETS AND LIABILITIES,
NET (1.1%) (747)
--------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 2,231,741
outstanding shares of
beneficial interest 37,641
Accumulated net investment loss (178)
Accumulated net realized gain
on investments 1,282
Net unrealized appreciation
on investments 26,744
--------
TOTAL NET ASSETS-- 100.0% $65,489
--------
--------
Net Asset Value, Offering and Redemption
Price Per Share $29.34
--------
--------
* NON-INCOME PRODUCING SECURITY
CL --CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
6
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
WHITE OAK GROWTH STOCK FUND
- ----------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------
COMMON STOCKS--96.8%
BANKS--17.1%
BankAmerica 1,094,000 $ 78,768
Bankers Trust New York 101,800 9,168
Citigroup 1,260,000 94,815
MBNA 3,280,000 92,455
--------
275,206
--------
COMPUTER-AIDED DESIGN SOFTWARE--2.5%
Parametric Technology*3,074,300 40,158
--------
40,158
--------
COMPUTER COMMUNICATIONS EQUIPMENT--8.9%
3Com* 2,300,000 60,088
Cisco Systems* 735,750 83,921
--------
144,009
--------
COMPUTER HARDWARE--6.7%
Compaq Computer 2,080,000 46,410
Sun Microsystems* 1,025,400 61,332
--------
107,742
--------
COMPUTER STORAGE--4.3%
EMC* 630,000 68,631
--------
68,631
--------
FINANCIAL SERVICES--0.6%
First Data 235,100 9,977
--------
9,977
--------
INSURANCE--4.8%
American International
Group 664,999 78,096
--------
78,096
--------
MEDICAL INSTRUMENTS--4.8%
Medtronic 1,075,000 77,333
--------
77,333
--------
PHARMACEUTICALS--12.4%
Eli Lilly & Co. 785,000 57,796
Merck 950,000 66,738
Pfizer 662,000 76,171
--------
200,705
--------
- ----------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000)VALUE (000)
- ----------------------------------------------
PREPACKAGED SOFTWARE--1.8%
Microsoft* 348,000 $ 28,297
--------
28,297
--------
SECURITIES BROKER--4.8%
Morgan Stanley, Dean
Witter, Discover 775,000 76,870
--------
76,870
--------
SEMI-CONDUCTOR CAPITAL
EQUIPMENT MANUFACTURING--4.5%
Applied Materials* 1,354,200 72,619
--------
72,619
--------
SEMI-CONDUCTORS/ELECTRONICS--9.9%
Intel 1,330,000 81,379
Linear Technology 1,382,400 78,624
--------
160,003
--------
TELECOMMUNICATIONS EQUIPMENT--13.7%
Ascend Communications* 931,700 90,026
Ciena* 1,491,200 35,043
Nortel Networks 54,600 3,723
Tellabs* 845,000 92,448
--------
221,240
--------
TOTAL COMMON STOCKS
(Cost $1,176,699) 1,560,886
--------
REPURCHASE AGREEMENT--4.0%
J.P. Morgan
4.820%, dated 04/30/99, matures
05/03/99, repurchase price $64,216,258
(collateralized by U.S. Treasury
Note, par value $63,068,000,
6.750%, 04/30/00 and U.S.
Treasury Bond, par value
$816,000, 10.625%, 08/15/15,
total market value:
$65,475,044) $64,190 64,190
--------
TOTAL REPURCHASE AGREEMENT
(Cost $64,190) 64,190
--------
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
WHITE OAK GROWTH STOCK FUND
- -----------------------------------------------
MARKET
DESCRIPTION VALUE (000)
- -----------------------------------------------
TOTAL INVESTMENTS -- 100.8%
(Cost $1,240,889) $1,625,076
---------
OTHER ASSETS AND LIABILITIES,
NET-- (0.8%) (12,550)
---------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 35,383,341
outstanding shares of
beneficial interest 1,236,200
Accumulated net investment loss (1,904)
Accumulated net realized loss
on investments (5,957)
Net unrealized appreciation
on investments 384,187
---------
TOTAL NET ASSETS -- 100.0% $1,612,526
---------
---------
Net Asset Value, Offering and Redemption
Price Per Share $45.57
---------
---------
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
8
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
RED OAK TECHNOLOGY SELECT FUND
- ----------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------
COMMON STOCKS--98.8%
COMPUTER-AIDED DESIGN SOFTWARE--3.1%
Parametric Technology* 163,700 $ 2,138
--------
2,138
--------
COMPUTER COMMUNICATIONS EQUIPMENT--10.1%
3Com* 73,900 1,931
Cisco Systems* 43,200 4,927
--------
6,858
--------
COMPUTER HARDWARE--15.9%
Dell Computer* 100,800 4,152
Gateway 2000* 47,950 3,174
Sun Microsystems* 58,800 3,517
--------
10,843
--------
COMPUTER STORAGE--10.4%
EMC* 39,800 4,336
Network Appliance 54,700 2,752
--------
7,088
--------
FINANCIAL SERVICES--4.0%
Charles Schwab 24,600 2,700
--------
2,700
--------
INTERNET SOFTWARE--2.9%
America Online* 14,000 1,999
--------
1,999
--------
PREPACKAGED SOFTWARE--6.0%
Microsoft* 50,300 4,090
--------
4,090
--------
SEMI-CONDUCTOR CAPITAL EQUIPMENT MANUFACTURING--5.8%
Applied Materials* 72,800 3,904
--------
3,904
--------
SEMI-CONDUCTORS/ELECTRONICS--15.3%
Intel 66,400 4,063
Maxim Integrated
Products* 65,500 3,668
Vitesse Semiconductor* 57,400 2,658
--------
10,389
--------
- ----------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- ----------------------------------------------
TECHNOLOGY CONSULTING SERVICES--3.9%
International Network
Services* 69,550 $ 2,643
--------
2,643
--------
TELECOMMUNICATIONS EQUIPMENT--13.5%
Aspect
Telecommunications* 177,500 1,414
Ciena* 80,700 1,896
Tellabs* 25,700 2,812
Uniphase* 25,100 3,046
--------
9,168
--------
TELEPHONES & TELECOMMUNICATIONS--7.9%
AT&T 49,800 2,515
MCI Worldcom* 34,400 2,827
--------
5,342
--------
TOTAL COMMON STOCKS
(Cost $63,394) 67,162
--------
REPURCHASE AGREEMENT--2.3%
J.P. Morgan
4.820%, dated 04/30/99, matures 05/03/99,
repurchase price $1,575,361 (collateralized by
U.S. Treasury Note, par value $1,603,000,
4.875%, 03/31/01, total market
value: $1,606,525) $1,575 1,575
--------
TOTAL REPURCHASE AGREEMENT
(Cost $1,575) 1,575
--------
TOTAL INVESTMENTS-- 101.1%
(Cost $64,969) 68,737
--------
OTHER ASSETS AND LIABILITIES,
NET -- (1.1%) (730)
--------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 6,097,659
outstanding shares of
beneficial interest 65,070
Accumulated net investment loss (107)
Accumulated net realized loss
on investments (724)
Net unrealized appreciation
on investments 3,768
--------
TOTAL NET ASSETS-- 100.0% $68,007
--------
--------
Net Asset Value, Offering and Redemption
Price Per Share $11.15
--------
--------
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
9
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
PIN OAK WHITE OAK RED OAK
AGGRESSIVE STOCK GROWTH STOCK TECHNOLOGY SELECT
FUND FUND FUND
---------------------------------------------
11/01/98 11/01/98 12/31/98 (1)
TO 04/30/99 TO 04/30/99 TO 04/30/99
- -----------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C>
Dividends ..................................... $ 47 $ 3,482 $ 11
Interest ...................................... 68 935 43
- -----------------------------------------------------------------------------------------------
Total Investment Income .................... 115 4,417 54
- -----------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ...................... 217 4,677 119
Investment Advisory Fee Waiver ................ (32) (146) (56)
Administration Fees ........................... 44 652 28
Custodian Fees ................................ 2 21 3
Transfer Agent Fees and Expenses .............. 27 353 31
Avoided Transfer Agent Fees 9 439 --
Professional Fees ............................. 2 51 2
Trustee Fees .................................. -- 6 --
Registration Fees ............................. 19 176 30
Printing ...................................... 4 80 4
Insurance and Other Fees ...................... 1 12 --
- -----------------------------------------------------------------------------------------------
Total Expenses ............................. 293 6,321 161
- -----------------------------------------------------------------------------------------------
Net Investment Loss ........................ (178) (1,904) (107)
- -----------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold ............................ 1,485 -- (724)
Net Unrealized Appreciation of
Investment Securities ...................... 13,718 305,088 3,768
- -----------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
on Investments .......................... 15,203 305,088 3,044
- -----------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations ......................... $15,025 $303,184 $2,937
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
<FN>
(1) THE RED OAK TECHNOLOGY SELECT FUND COMMENCED OPERATIONS ON DECEMBER 31,
1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PIN OAK WHITE OAK RED OAK
AGGRESSIVE STOCK GROWTH STOCK TECHNOLOGY
FUND FUND SELECT FUND
------------------ ----------------------- ------------
11/01/98 11/01/98 12/31/98 (1)
TO 04/30/99 11/01/97 TO 04/30/99 11/01/97 TO 04/30/99
(UNAUDITED) TO 10/31/98 (UNAUDITED) TO 10/31/98 (UNAUDITED)
- -------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C> <C> <C> <C>
Net Investment Loss .................. $ (178) $ (277) $ (1,904) $ (1,326) $ (107)
Net Realized Gain (Loss) on
Securities Sold .................... 1,485 1,175 -- (5,957) (724)
Net Unrealized Appreciation of
Investment Securities ............. 13,718 2,886 305,088 56,368 3,768
- -------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations ................... 15,025 3,784 303,184 49,085 2,937
- -------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ................ -- -- -- -- --
Realized Capital Gains ............... -- -- -- (848) --
- -------------------------------------------------------------------------------------------------------
Total Distributions ............... -- -- -- (848) --
- -------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ........................ 33,549 25,022 688,251 699,743 71,571
Shares Issued in Lieu of Cash Distributions -- -- -- 802 --
Shares Redeemed ...................... (24,529) (19,043) (209,128) (280,967) (6,501)
- -------------------------------------------------------------------------------------------------------
Increase in Net Assets From Capital
Share Transactions ............. 9,020 5,979 479,123 419,578 65,070
- -------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 24,045 9,763 782,307 467,815 68,007
- -------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............... 41,444 31,681 830,219 362,404 --
- -------------------------------------------------------------------------------------------------------
End of Period ..................... $65,489 $41,444 $1,612,526 $830,219 $68,007
- -------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued ............................... 1,237 1,173 15,844 20,843 6,684
Issued in Lieu of Cash Distributions . -- -- -- 29 --
Redeemed ............................. (892) (914) (4,850) (8,854) (586)
- -------------------------------------------------------------------------------------------------------
Net Increase in Share Transactions ... 345 259 10,994 12,018 6,098
- -------------------------------------------------------------------------------------------------------
<FN>
(1) THE RED OAK TECHNOLOGY SELECT FUND COMMENCED OPERATIONS ON DECEMBER 31,
1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
1. ORGANIZATION:
THE OAK ASSOCIATES FUNDS (the "Trust") is organized as a Massachusetts business
trust under an Agreement and Declaration of Trust dated November 6, 1997. The
Trust is registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company with three portfolios: Pin
Oak Aggressive Stock Fund, White Oak Growth Stock Fund and Red Oak Technology
Select Fund (the "Funds"). The assets of each portfolio are segregated, and a
shareholder's interest is limited to the portfolio in which shares are held. The
Funds' prospectus provides a description of each Fund's investment objectives,
policies and strategies.
On February 25, 1998, the shareholders of the Advisors' Inner Circle White Oak
Growth Stock Fund and the Pin Oak Aggressive Stock Fund (the "Oak Funds") voted
to approve a tax-free reorganization of the Oak Funds through a transfer of all
assets and liabilities to the Oak Associates Funds White Oak Growth Stock Fund
and Pin Oak Aggressive Stock Fund. The reorganization took place on February 27,
1998.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION--Investments in equity securities, which are traded on a
national exchange (or reported on the NASDAQ national market system), are stated
at the last quoted sales price if readily available for such equity securities
on each business day; other equity securities traded in the over-the-counter
market and listed equity securities for which no sale was reported on that date
are stated at the last quoted bid price. Debt obligations exceeding sixty days
to maturity for which market quotations are readily available are valued at the
most recently quoted bid price. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost, which
approximates market value.
FEDERAL INCOME TAXES--It is each Fund's intention to qualify as a regulated
investment company by complying with the appropriate provisions of the Internal
Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income
taxes are required.
SECURITY TRANSACTIONS AND RELATED INCOME--Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis. Costs used in determining realized gains and
losses on the sales of investment securities are those of the specific
securities sold during the respective holding period.
NET ASSET VALUE PER SHARE--The net asset value per share of each Fund is
calculated on each business day by dividing the total value of each Fund's
assets, less liabilities, by the number of shares outstanding.
EXPENSES--Expenses that are directly related to one of the Funds are charged
to that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative daily net assets.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian bank until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Board of Trustees require that the market value of the collateral, including
accrued interest thereon, is sufficient in the event of default by the
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
12
<PAGE>
NOTESTO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
APRIL 30, 1999 (UNAUDITED)
counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization of
the collateral by the Portfolio may be delayed or limited.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income are
declared and paid to Shareholders on an annual basis, as applicable. Any net
realized capital gains on sales of securities are distributed to Shareholders at
least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with U.S. Federal income tax regulations, which may
differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature.
USE OF 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.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of SEI Investments Mutual Funds
Services (the "Administrator") and/or SEI Investments Distribution Co. (the
"Distributor"). Such officers are paid no fees by the Trust for serving as
officers of the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an Administrative Agreement dated
February 27, 1998, under which the Administrator provides management and
administrative services for an annual fee of 0.15% of the average daily net
assets of each of the Funds up to $250 million, 0.12% on the next $200 million,
0.10% on the next $200 million, and 0.08% of such assets in excess of $650
million.
There is a minimum annual fee of $75,000 per fund.
DST Systems, Inc. (the "Transfer Agent") serves as the transfer agent and
dividend distributing agent for the Funds under a transfer agency agreement
with the Trust.
The Trust and the Distributor are parties to a Distribution Agreement dated
February 27, 1998. The Distributor receives no fees for its distribution
services under this
agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Oak Associates, ltd. (the "Adviser") are parties to an Investment
Advisory Agreement dated February 27, 1998, under which the Adviser receives an
annual fee equal to 0.74% of the average daily net assets of each Fund. The
Adviser has voluntarily agreed to waive all or a portion of its fees (and to
reimburse the Funds' expenses if necessary) in order to limit operating expenses
to not more than 1.00% of the average daily net assets of each of the Funds. Fee
waivers and expense reimbursements are voluntary and may be terminated at any
time.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
13
<PAGE>
First Union National Bank acts as custodian (the "Custodian") for the Funds.
Fees of the Custodian are being paid on the basis of the net assets of the
Funds. The Custodian plays no role in determining the investment policies of the
Funds or which securities are to be purchased or sold by the Funds.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six months ended April 30, 1999, are as follows:
PIN OAK WHITE OAK RED OAK
AGGRESSIVE GROWTH TECHNOLOGY
STOCK STOCK SELECT
FUND FUND FUND
(000) (000) (000)
-------------------------------
Purchases $13,695 $445,544 $64,996
Sales 6,540 -- 877
At April 30, 1999, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at April 30, 1999, are as follows:
PIN OAK WHITE OAK RED OAK
AGGRESSIVE GROWTH TECHNOLOGY
STOCK STOCK SELECT
FUND FUND FUND
(000) (000) (000)
-------------------------------
Aggregate gross
unrealized
appreciation $32,526 $483,088 $7,024
Aggregate gross
unrealized
depreciation (5,782) (98,901) (3,256)
------- -------- ------
Net unrealized
appreciation $26,744 $384,187 $3,768
======= ======== ======
7. CAPITAL LOSS CARRYFORWARDS:
The capital loss carryforwards at October 31, 1998, for federal income tax
purposes are as follows:
EXPIRES EXPIRES EXPIRES
2004 2005 2006
------- ------- -------
Pin Oak Aggressive
Stock Fund $129,749 $73,224 $ --
White Oak Growth
Stock Fund $ -- $ -- $5,956,896
The capital loss carryforwards will be used to offset future net realized gains,
if any, and such gains so offset will not be distributed.
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
14
<PAGE>
NOTES
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
15
<PAGE>
NOTES
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
16
<PAGE>
NOTES
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
WWW.OAKASSOCIATES.COM
17
<PAGE>
NOTES
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
1-888-462-5386
18
<PAGE>
[LOGO OMITTED]
OAK ASSOCIATES FUNDS
PIN OAK AGGRESSIVE
WHITE OAK GROWTH
RED OAK TECHNOLOGY SELECT
P.O. BOX 419441
KANSAS CITY, MO 64141-6441
INVESTMENT ADVISER:
[LOGO OMITTED]
OAK ASSOCIATES, LTD.
TO OPEN AN ACCOUNT,
RECEIVE ACCOUNT INFORMATION,
MAKE INQUIRIES OR REQUEST
AN INVESTMENT KIT:
CALL TOLL FREE
1-888-4OAK-FUND
(1-888-462-5386)
WWW.OAKASSOCIATES.COM
OAK-F-021-08000
