[LOGO OMITTED]
OAK
ASSOCIATES
FUNDS
ANNUAL REPORT
October 31, 2000
Pin Oak Aggressive Stock Fund
White Oak Growth Stock Fund
Red Oak Technology Select Fund
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<PAGE>
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TABLE OF CONTENTS
Shareholder Letter ....................................... 1
About the Adviser ........................................ 3
Investment Team .......................................... 3
Market Overview .......................................... 4
Pin Oak Aggressive Profile ............................... 6
White Oak Growth Profile ................................. 8
Red Oak TechnologySelect Profile ......................... 10
Financial Highlights ..................................... 12
Statement of Net Assets .................................. 14
Statement of Operations .................................. 20
Statement of Changes
in Net Assets ............................................ 21
Notes to Financial Statements ............................ 22
Report of Independent Public Accountants ................. 25
Notice to Shareholders ................................... 26
CONTACT US
BY MAIL
--------------------------------------------------------------------------------
Oak Associates Funds
P.O. Box 219441
Kansas City, MO 64121-9441
BY TELEPHONE
--------------------------------------------------------------------------------
1-888-462-5386
Option 1 To order a free
investor kit
Option 2 To hear the latest
fund prices
Option 3 To obtain fund informa-
tion and performance
Option 4 For existing shareholders
to obtain account
information and
place transactions
ON THE WEB
--------------------------------------------------------------------------------
WWW.OAKASSOCIATES.COM
o To obtain fund prices
o Access your account on-line
o For portfolio manager
commentary
o To download forms and
applications
<PAGE>
TO OUR SHAREHOLDERS
................................................................................
[GRAPHIC OF TREE OMITTED]
Dear Fellow Shareholders:
We are pleased to send you the latest Annual Report for the Oak Associates Funds
covering the fiscal year ended October 31, 2000 and containing discussions of
the equity stock markets, the details of fund holdings, a report from the Funds'
independent auditors, and other important financial data. We encourage you to
read it carefully to stay abreast of your investments.
It has been a year of heightened market volatility, especially within the
technology-laden NASDAQ. The market's daily, if not hourly, gyrations can make
for some sensational headlines with today's constant media coverage. Our focus
will continue to be on the fundamentals of both the sectors and the specific
companies in which we invest, all with a long-term outlook. We continue to
believe that with patience, the buy-and-hold strategy remains the best
alternative for reaching your future investment goals.
PERFORMANCE -- As shown in the accompanying table, all three Oak Associates
Funds had strong one-year performance relative to their benchmarks. More
detailed performance and information can been seen on pages 6 through 11.
NEW LOOK AT OAKASSOCIATES.COM -- We encourage you to visit our new and improved
web site, where you can find daily fund prices and access your account balances.
In the first half of 2001, our team is looking to enhance the site by including
on-line trading and new account set-up as well as electronic delivery of
statements, prospectuses, and annual reports.
NEW BLACK OAK EMERGING TECHNOLOGY FUND -- This new fund will open on December
29, 2000 to take advantage of investments in companies that have the potential
to develop or benefit from new technology, or from significant improvements or
enhancements to existing technology. For information on this new fund log onto
www.oakassociates.com or call us at 1-888-462-5386.
(CONTINUED ON NEXT PAGE)
...................................... 1 .......................................
<PAGE>
TO OUR SHAREHOLDERS (CONTINUED)
................................................................................
As always, we look forward to serving your investment needs and thank you for
the trust you have placed in us.
Sincerely,
/S/SIGNATURE
James D. Oelschlager
CHIEF INVESTMENT OFFICER
ONE YEAR PERFORMANCE AS OF 10-31-00
[BAR CHART OMITTED]
PIN OAK 71.36%
S&P MID-CAP 400 31.65%
WHITE OAK 44.61%
S&P 500 6.09%
RED OAK 99.82%
NASDAQ 100 24.48%
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<PAGE>
ABOUT THE ADVISER
................................................................................
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Oak Associates, ltd., the investment adviser to the Funds, was established in
1985 and currently manages over $30 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 expenses are integral to achieving
superior long-term performance.
THE INVESTMENT TEAM
................................................................................
OAK ASSOCIATES, LTD.
Founder, Managing Member, Chief Investment Officer (1985-Present)
Portfolio Manager, White Oak Growth and Pin Oak Aggressive (1992-Present)
Co-Portfolio Manager, Red Oak Technology Select (1998-Present)
THE FIRESTONE TIRE & RUBBER COMPANY
Director of Pension Investments/Assistant Treasurer (1969-1985)
B.A. (Economics), Denison University (1964)
Juris Doctor, Northwestern University (1967)
Graduate Studies in Business, University of Chicago (1968-1969)
JAMES D. OELSCHLAGER
[PHOTO OF JAMES D. OELSCHLAGER OMITTED]
OAK ASSOCIATES, LTD.
Co-Portfolio Manager, Red Oak TechnologySelect (1998-Present)
Assistant Portfolio Manager, White Oak Growth, Pin Oak Aggressive (1992-Present)
Research Analyst (1991-Present)
PITTSBURGH NATIONAL BANK
Credit Analyst (1990-1991)
B.S. (Finance), Miami University(1990)
M.B.A., Case Western Reserve University (1994)
Chartered Financial Analyst (1998)
DOUGLAS S. MACKAY
[PHOTO OF DOUGLAS S. MACKAY OMITTED]
OAK ASSOCIATES, LTD.
Senior Portfolio Trader (1985-Present)
Assistant Portfolio Manager, White Oak Growth, Pin Oak Aggressive (1992-Present)
THE FIRESTONE TIRE & RUBBER COMPANY
Portfolio Investments Department (1979-1985)
Accounting Department (1968-1979)
B.S. (Finance), The University of Akron
DONNA L. BARTON
[PHOTO OF DONNA L. BARTON OMITTED]
www.oakassociates.com
...................................... 3 .......................................
<PAGE>
MARKET OVERVIEW
................................................................................
OCTOBER 31, 2000
THE YEAR IN REVIEW
The past twelve months have been quite volatile for investors in the equity
stock markets. The end of 1999 had a strong market surge, which carried over
into the first few months of 2000. In the spring there was a major sell-off,
followed by a summer rally, followed by a fall downturn. A five-percent change
in the market, either up or down or both in the same day, seemed to be almost a
daily occurrence. Keeping a long-term outlook can be tough in this environment,
but we think riding through the storms is the only way to beat the markets over
time.
The markets began the past twelve months with the technology-rich NASDAQ leading
the pack. Short-term investors poured money into the dot com stocks, causing
some Internet stocks and mutual funds to soar and end 1999 with triple digit
returns. This trend carried over into 2000, when money continued to be invested
in yesterday's technology winners. However, in the spring, some of the dot com
companies began to show signs of weakness or unravel as investor focus turned to
earnings and valuation. A swift and substantial downturn occurred, wiping out
the markets' year-to-date gains in a matter of days.
During the summer, there was a rotation into the technology infrastructure
companies, which provide the hardware and software for the building of the
Internet. Technology infrastructure companies, with real earnings and strong
growth rates, have been a favorite of ours, and the mid-year rally was very
strong in all three of our Funds.
During the past year, the Federal Reserve Board raised interest rates in an
effort to slow the growth rate of the economy. They did this to head off what
they perceived as potential future inflation. We have been of the belief for
some time that these rate hikes were unnecessary, as productivity gains derived
from technology would offset potential price increases. Nevertheless, rate hikes
did occur and signs of a slowing economy began to emerge in the fall of 2000.
The markets reacted quickly on the downside as companies either released
disappointing earnings, guided future growth rates down, or warned of weak
overseas sales due to Euro dollar concerns.
All of this made for some rough going in the equity markets over the past twelve
months, which makes it more important than ever to stay focused on the
long-term. We have said many times before that markets over-react on both the
upside and the
1-888-462-5386
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<PAGE>
................................................................................
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downside but tend to be rational over the long run. When the market is going up
sharply, everyone thinks they are smart and rich, and when it is going down
rapidly, everyone thinks they made a mistake and the world is ending. Not
reacting to these market gyrations is the key, and we believe a low portfolio
turnover approach has been a major reason for our performance success.
LOOKING AHEAD
The markets will search for clues as to how much the economy is slowing, trying
to determine if we are in for a "soft landing" as we saw in 1994 after several
rate increases, or a recession, where economic growth is negative. In spite of
oil price increases, we believe that a soft landing is more probable, and we may
even see the Fed disposed to lowering interest rates.
Even in a slowing economy, our focus will not shift from the best growth areas
in the market--technology, health care and financials. We view technology as a
very broad sector and think that some of its sub-sectors will do better than
others. Value added sub-sectors such as Storage, Fiber Optics and Broadband will
probably do better than sub-sectors where spending is becoming more
commoditized, such as PC related companies.
Healthcare companies should do well due to continued strong fundamental growth
and may even perform better in a slowing economy as investors rotate to these
stocks as defensive investments. The financial sector as a whole could face
problems during a slowdown, but those companies that have historically managed
credit risk well should outperform on a relative basis, and we think our
holdings in this area are well positioned.
It should not come as a shock to those who know us, but we think this bull
market is still running and will continue for some time. We are still in the
early innings of the technology build-out that has created this Second
Industrial Revolution. A slowing economy, heightened market volatility, and
other speed bumps will continue in the year ahead, but our investment strategy
will not waiver--invest in good companies with strong growth potential, all with
a three-to-five year time horizon.
www.oakassociates.com
...................................... 5 .......................................
<PAGE>
PIN OAK AGGRESSIVE STOCK FUND
................................................................................
OCTOBEr 31, 2000
This year was a strong one for the Pin Oak Aggressive Stock Fund, with a
12-month return of 71.36% versus the S&P Mid-Cap 400 return of 31.65%. When
ranked by Lipper Analytical for the one-year period ended October 31, 2000, Pin
Oak placed in the top 3% (#12 of 432) of Multi-Cap Growth Funds. On a five-year
annualized return, Pin Oak was up 32.87%, which placed it in the top 6% (#11 of
192) of funds in the same category.
The new categorization by Lipper Analytical of Pin Oak as a Multi-Cap Growth
Fund is perhaps more accurate than the previous Small or Mid-Cap Fund
comparison. Unlike many small- and mid-cap funds, we do not sell a strong
performing company merely because it has reached a certain size. We let our
portfolio winners run, and because of some stock picking successes Pin Oak now
has several large-cap holdings. In fact, we hope that all of our holdings in Pin
Oak become large companies since that would help us achieve our ultimate goal of
strong performance results. When we make new investments for Pin Oak, we try to
adhere to companies whose market capitalization is no more than $5 billion or
whose sales are less than $100 million annually.
Pin Oak's performance over the last twelve months was boosted by stock holdings
such as software provider Advent (ADVS), Internet caching appliance manufacturer
Cacheflow (CFLO), networking products provider Juniper (JNPR), and fiber optics
equipment manufacturer Ciena (CIEN).
PIN OAK AGGRESSIVE
The Fund invests primarily in common stocks of U.S. companies with small to
medium market capitalizations (between $500 million and $5 billion) that are key
performers within growing industries.
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<PAGE>
...............................................................................
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ALL DATA BELOW AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
PERFORMANCE UPDATE
-------------------------------------------------------------------------------------------
Average Annualized Total Returns
--------------------------------------------------------
1 Year 3 Year 5 Year Inception
Return Return Return to Date
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PIN OAK AGGRESSIVE STOCK FUND 71.36% 54.46% 32.87% 26.98%
-------------------------------------------------------------------------------------------
S&P 400 Mid-Cap Index 31.65% 19.36% 21.50% 18.44%
-------------------------------------------------------------------------------------------
Lipper Multi-Cap Average 34.32% 27.09% 23.56% 19.72%
-------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------
FUND DATA
--------------------------------------------
Ticker Symbol POGSX
Share Price $69.45
Total Net Assets $1.2B
Portfolio Turnover 13.16%
2000 Capital Gain Distribution $0.25
Long-Term cap gain
Record 12/4/00
Payable 12/6/00
TOP 10 HOLDINGS
-----------------------------------------
Cacheflow 6.1%
Applied Materials 5.7%
JDS Uniphase 5.5%
Cisco Systems 5.2%
Ciena Corporation 5.1%
Foundry Networks 5.0%
Network Appliance 4.8%
Juniper Networks 4.8%
Sycamore Networks 4.8%
Brocade Communications 4.7%
COMPARISON OF CHANGE IN THE VALUE OF A $25,000 INVESTMENT IN THE
PIN OAK AGGRESSIVE STOCK FUND, VERSUS THE S&P 400 MID-CAP INDEX, AND THE
LIPPER MULTI-CAP AVERAGE SINCE INCEPTION (8/3/92)
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
Pin Oak Aggressive S&P 400 Lipper
Stock Fund Mid-Cap Index Multi-Cap Average
8/31/92 25,000 25,000 25,000
10/92 27,343 25,958 26,500
10/93 33,566 31,534 32,881
10/94 30,854 32,278 33,164
10/95 46,068 39,125 42,032
10/96 45,427 45,913 49,736
10/97 51,755 60,903 60,594
10/98 58,406 64,984 62,060
10/99 111,304 78,676 93,457
10/00 190,730 103,577 125,624
www.oakassociates.com
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<PAGE>
WHITE OAK GROWTH STOCK FUND
................................................................................
OCTOBER 31, 2000
The White Oak Growth Stock Fund was up 44.61% for the year versus the S&P 500
Index return of 6.09%. For the same period, White Oak ranked in the top 4% (#18
of 500) of Large Cap Growth Funds as ranked by Lipper Analytical Services. On a
five-year annualized return, White Oak was up 33.88%, which placed it in the top
1% (#2 of 203) of funds in the same category.
White Oak surpassed $6 billion in assets this year, through strong results and
continued interest from new and existing investors. Given the size of the
companies that we invest in and our low portfolio turnover approach, White Oak's
asset growth and cash inflows have not hindered the Fund's operation. White Oak
is still relatively small compared to many similar mutual funds, and we believe
that having daily investable cash to put to work in today's roller coaster
markets has been beneficial to performance. With cash on hand, we can view a
short-term market downturn as a bargain shopping period, as long as the
fundamentals of the stocks we like are still strong.
Our three sectors of concentration fared well for the year, and it seemed that
when one sector, such as Technology, was under pressure, one of the other two --
Healthcare or Financials -- created a performance balance. Notable performers in
the portfolio included technology companies such as EMC (EMC) in the computer
storage area, and Sun Microsystems (SUNW) in computer hardware. In the Financial
area, credit card lender MBNA (KRB) contributed well, and, in the Healthcare
sector, medical device manufacturer Medtronic (MDT) was a portfolio stand out.
WHITE OAK GROWTH
The Fund invests primarily in common stocks of large capitalization companies
(in excess of $5 billion) that are key performers within growing industries.
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<PAGE>
................................................................................
[GRAPHIC OF TREE OMITTED]
ALL DATA BELOW AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
PERFORMANCE UPDATE
------------------------------------------------------------------------------------------
Average Annualized Total Returns
--------------------------------------------------
1 Year 3 Year 5 Year Inception
Return Return Return to Date
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WHITE OAK GROWTH STOCK FUND 44.61% 38.15% 33.88% 28.41%
------------------------------------------------------------------------------------------
S&P 500 Composite Index 6.09% 17.60% 21.67% 18.28%
------------------------------------------------------------------------------------------
Lipper Large-Cap Growth Average 15.25% 23.31% 22.17% 18.33%
------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------
FUND DATA
--------------------------------------------
Ticker Symbol WOGSX
Share Price $77.05
Total Net Assets $6.2B
Portfolio Turnover 13.86%
2000 Capital Gain Distribution $0.28
Long-Term cap gain
Record 12/4/00
Payable 12/6/00
TOP 10 HOLDINGS
-----------------------------------------
Merck 6.1%
Ciena 5.4%
Eli Lilly 5.4%
Brocade Communications 5.1%
Juniper Networks 4.9%
Medtronic 4.7%
EMC 4.7%
Applied Materials 4.7%
American Int'l. Group 4.7%
JDS Uniphase 4.6%
COMPARISON OF CHANGE IN THE VALUE OF A $25,000 INVESTMENT IN THE
WHITE OAK GROWTH STOCK FUND, VERSUS THE S&P 500 COMPOSITE INDEX, AND
THE LIPPER LARGE-CAP GROWTH AVERAGE SINCE INCEPTION (8/3/92)
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
White Oak Growth S&P 500 Lipper Large-Cap
Stock Fund Composite Index Growth Average
8/31/92 25,000 25,000 25,000
10/92 27,055 25,381 26,058
10/93 28,026 29,158 30,509
10/94 31,456 30,283 30,973
10/95 47,835 38,281 38,669
10/96 58,039 47,499 45,676
10/97 78,039 62,746 57,776
10/98 90,900 76,550 67,835
10/99 142,276 96,201 94,691
10/00 205,746 102,060 109,330
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<PAGE>
RED OAK TECHNOLOGY SELECT FUND
................................................................................
OCTOBER 31, 2000
The Red Oak Technology Select Fund was up 99.82% for the year versus the NASDAQ
100 return of 24.48%. For the same period, RED OAK RANKED #1 out of 148 Science
and Technology Funds according to Lipper Analytical Services. Since its
inception on December 31, 1998, Red Oak has had a cumulative return of 238.50%
versus a 78.93% return for the NASDAQ 100.
Red Oak has done well, especially on a relative basis. We are asked many times
why Red Oak has outperformed, both in up and down movements in the NASDAQ.
People are especially curious during market downturns, such as in the spring,
when the assumption is that a concentrated fund will fair worse than the broad
markets. We feel that it is not so much WHAT we invested in that helped the
portfolio, but rather what we DID NOT invest in. Avoiding the dot com stocks
helped us in the spring, and, in other technology downturns when high-flying,
speculative stocks were hurt the most, Red Oak's core technology holdings kept
the performance relatively strong.
Red Oak's annual performance was boosted by fibre channel companies such as
Brocade Communications (BRCD) and JNI Corporation (JNIC), fibre testing
equipment provider Newport (NEWP), and computer storage provider Network
Appliance (NTAP).
RED OAK TECH SELECT
The Fund primarily invests in common stocks of a small number of companies which
rely extensively on technology in their product development or operations, or
which are expected to benefit from technological advances and improvements.
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<PAGE>
................................................................................
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ALL DATA BELOW AS OF OCTOBER 31, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
PERFORMANCE UPDATE
-------------------------------------------------------------------------------------
Average Annualized Total Returns
-----------------------------------
1 Year Inception
Return to Date
-------------------------------------------------------------------------------------
<S> <C> <C>
RED OAK TECHNOLOGY SELECT FUND 99.82% 94.31%
-------------------------------------------------------------------------------------
NASDAQ 100 Index 24.48% 37.28%
-------------------------------------------------------------------------------------
Lipper Science & Technology Average 34.30% 51.85%
-------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------
FUND DATA
--------------------------------------------
Ticker Symbol ROGSX
Share Price $33.85
Total Net Assets $2.2B
Portfolio Turnover 40.13%
2000 Capital Gain Distribution none
TOP 10 HOLDINGS
-----------------------------------------
Juniper Networks 6.5%
Network Appliance 6.2%
Ciena 6.1%
Broadcom 5.2%
Cisco Systems 4.9%
Brocade Communications 4.9%
Sun Microsystems 4.6%
Maxim Integrated Products 4.6%
JNI Corporation 4.4%
EMC 4.1%
COMPARISON OF CHANGE IN THE VALUE OF A $25,000 INVESTMENT IN THE
RED OAK TECHNOLOGY SELECT FUND, VERSUS THE NASDAQ 100 INDEX,
AND THE LIPPER SCIENCE & TECHNOLOGY AVERAGE SINCE INCEPTION (12/31/98)
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
Red Oak Technology NASDAQ 100 Index Lipper Science &
Select Fund Technology Funds Average
12/31/98 25,000 25,000 25,000
10/99 42,348 35,932 40,119
10/00 84,620 44,728 53,880
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<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS ENDED OCTOBER 31,
<TABLE>
<CAPTION>
REALIZED AND NET
NET ASSET NET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE INVESTMENT GAINS OR FROM NET FROM VALUE
BEGINNING INCOME (LOSSES) ON INVESTMENT CAPITAL END OF
OF PERIOD (LOSS) SECURITIES INCOME GAINS PERIOD
------------------------------------------------------------------------------------------------------------------------------------
PIN OAK AGGRESSIVE STOCK FUND
<S> <C> <C> <C> <C> <C> <C>
2000 $41.85 $(0.20) $29.33 $ -- $(1.53) $69.45
------------------------------------------------------------------------------------------------------------------------------------
1999 21.96 (0.13) 20.02 -- -- 41.85
------------------------------------------------------------------------------------------------------------------------------------
1998(1) 19.46 (0.15) 2.65 -- -- 21.96
------------------------------------------------------------------------------------------------------------------------------------
1997 17.08 (0.11) 2.49 -- -- 19.46
------------------------------------------------------------------------------------------------------------------------------------
1996 17.32 (0.09) (0.15) -- -- 17.08
White Oak Growth Stock Fund
2000 $53.28 $(0.19) $23.96 $ -- $ -- $77.05
------------------------------------------------------------------------------------------------------------------------------------
1999 34.04 (0.13) 19.37 -- -- 53.28
------------------------------------------------------------------------------------------------------------------------------------
1998(1) 29.29 (0.05) 4.86 -- (0.06) 34.04
------------------------------------------------------------------------------------------------------------------------------------
1997 21.88 0.03 7.49 (0.04) (0.07) 29.29
------------------------------------------------------------------------------------------------------------------------------------
1996 18.08 0.05 3.80 (0.05) -- 21.88
Red Oak Technology Select Fund
2000 $16.94 $(0.13) $17.04 $ -- $ -- $33.85
------------------------------------------------------------------------------------------------------------------------------------
1999(2) 10.00 (0.05) 6.99 -- -- 16.94
------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS 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 RED OAK TECHNOLOGY SELECT FUND COMMENCED OPERATIONS ON DECEMBER 31, 1998.
ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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................................................................................
[GRAPHIC OF TREE OMITTED]
<TABLE>
<CAPTION>
RATIO OF NET
RATIO OF INVESTMENT
RATIO OF EXPENSES INCOME (LOSS)
NET ASSETS RATIO OF NET INVESTMENT TO AVERAGE TO AVERAGE
END OF EXPENSES TO INCOME (LOSS) NET ASSETS NET ASSETS PORTFOLIO
TOTAL PERIOD AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
71.36% $1,219,288 1.00% (0.59)% 1.02% (0.61)% 13.16%
------------------------------------------------------------------------------------------------------------------------------------
90.57 131,755 1.00 (0.57) 1.10 (0.67) 26.47
------------------------------------------------------------------------------------------------------------------------------------
12.85 41,444 1.00 (0.79) 1.14 (0.93) 10.04
------------------------------------------------------------------------------------------------------------------------------------
13.93 31,681 0.99 (0.75) 1.23 (0.99) 17.30
------------------------------------------------------------------------------------------------------------------------------------
(1.39) 23,738 0.96 (0.62) 1.47 (1.13) 31.65
44.61% $6,219,080 0.96% (0.38)% 0.96% (0.38)% 13.86%
------------------------------------------------------------------------------------------------------------------------------------
56.52 2,196,364 1.00 (0.34) 1.04 (0.38) 6.27
------------------------------------------------------------------------------------------------------------------------------------
16.48 830,219 1.00 (0.22) 1.07 (0.29) 6.16
------------------------------------------------------------------------------------------------------------------------------------
34.46 362,404 0.98 0.06 1.14 (0.10) 7.90
------------------------------------------------------------------------------------------------------------------------------------
21.33 26,109 0.95 0.23 1.50 (0.32) 8.07
99.82% $2,220,110 0.99% (0.79)% 1.01% (0.81)% 40.13%
------------------------------------------------------------------------------------------------------------------------------------
69.40+ 168,562 1.00 (0.81) 1.20 (1.01) 16.54
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
STATEMENT OF NET ASSETS
................................................................................
OCTOBER 31, 2000
PIN OAK AGGRESSIVE STOCK FUND
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCK -- 96.9%
--------------------------------------------------------------------------------
APPLICATION SERVICE PROVIDER -- 6.7%
Digex* 1,000,000 $ 39,250
Exodus Communications* 1,250,000 41,953
--------
81,203
--------
--------------------------------------------------------------------------------
BANKS -- 4.5%
--------------------------------------------------------------------------------
MBNA 1,455,000 54,653
--------
54,653
--------
--------------------------------------------------------------------------------
COMPUTER STORAGE--9.4%
--------------------------------------------------------------------------------
Network Appliance* 495,000 58,905
Veritas Software* 394,000 55,560
--------
114,465
--------
--------------------------------------------------------------------------------
FIBER OPTICS -- 15.3%
--------------------------------------------------------------------------------
Ciena* 590,000 62,024
JDS Uniphase* 820,000 66,779
Sycamore Networks* 925,000 58,506
--------
187,309
--------
--------------------------------------------------------------------------------
MANAGED HEALTH CARE SERVICES -- 4.1%
--------------------------------------------------------------------------------
Express Scripts, Class A* 740,000 49,719
--------
49,719
--------
--------------------------------------------------------------------------------
NETWORKING PRODUCTS-- 21.2%
--------------------------------------------------------------------------------
Cacheflow* 690,000 74,520
Cisco Systems* 1,180,000 63,572
Foundry Networks* 920,000 61,123
Juniper Networks* 301,600 58,812
--------
258,027
--------
--------------------------------------------------------------------------------
SEMI-CONDUCTORS/ELECTRONICS--23.1%
--------------------------------------------------------------------------------
Atmel* 2,360,000 35,252
Linear Technology 460,000 29,699
Maxim Integrated Products 525,000 34,814
PMC-Sierra* 330,000 55,935
TriQuint Semiconductor* 634,000 24,290
Vitesse Semiconductor* 760,000 53,153
Xilinx* 675,000 48,895
--------
282,038
--------
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
PREPACKAGED SOFTWARE -- 1.6%
--------------------------------------------------------------------------------
Advent Software* 330,000 $ 19,738
---------
19,738
---------
--------------------------------------------------------------------------------
STORAGE AREA NETWORKING --4.7%
--------------------------------------------------------------------------------
Brocade Communication Systems* 250,000 56,844
---------
56,844
---------
--------------------------------------------------------------------------------
INTERNET SERVICE PROVIDER -- 0.6%
--------------------------------------------------------------------------------
Earthlink* 1,210,000 7,903
---------
7,903
---------
--------------------------------------------------------------------------------
SEMI-CONDUCTOR CAPITAL EQUIPMENT
MANUFACTURING --5.7%
--------------------------------------------------------------------------------
Applied Materials* 1,310,000 69,594
---------
69,594
---------
TOTAL COMMON STOCKS
(Cost $1,085,757) 1,181,493
---------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 4.7%
--------------------------------------------------------------------------------
Greenwich
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $21,921,557
(collateralized by U.S. Treasury Note,
par value $21,810,000, 6.00%,
8/15/09, total market value:
$22,356,435) $21,918 21,918
J.P. Morgan
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $15,674,197
(collateralized by U.S. Treasury Note,
par value $15,438,000, 6.50%,
10/15/06, total market value:
$15,985,047) 15,671 15,671
Lehman Brothers
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $19,270,632
(collateralized by various U.S. Treasury
Instruments, total market value:
$19,657,111) 19,267 19,267
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $56,856) 56,856
---------
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PIN OAK AGGRESSIVE STOCK FUND -- CONTINUED
-----------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
-----------------------------------------------------
TOTAL INVESTMENTS -- 101.6%
(Cost $1,142,613) $1,238,349
----------
-----------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (1.6%) (19,061)
-----------------------------------------------------
-----------------------------------------------------
NET ASSETS:
-----------------------------------------------------
Portfolio Shares (unlimited authorization
-- no par value) based on 17,555,472
outstanding shares of beneficial interest 1,125,798
Accumulated net realized loss
on investments (2,246)
Net unrealized appreciation
on investments 95,736
----------
-----------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,219,288
-----------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share $69.45
==========
*NON-INCOME PRODUCING SECURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE
FINANCIAL STATEMENTS.
www.oakassociates.com
...................................... 15 ......................................
<PAGE>
STATEMENT OF NET ASSETS
................................................................................
OCTOBER 31, 2000
WHITE OAK GROWTH STOCK FUND
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 97.7%
--------------------------------------------------------------------------------
BANKS -- 8.7%
--------------------------------------------------------------------------------
Citigroup 5,135,000 $270,229
MBNA 7,150,000 268,572
--------
538,801
--------
--------------------------------------------------------------------------------
COMPUTER HARDWARE -- 3.7%
--------------------------------------------------------------------------------
Sun Microsystems* 2,050,800 227,382
--------
227,382
--------
--------------------------------------------------------------------------------
COMPUTER STORAGE -- 4.7%
--------------------------------------------------------------------------------
EMC* 3,290,000 293,016
--------
293,016
--------
--------------------------------------------------------------------------------
FIBER OPTICS -- 13.4%
--------------------------------------------------------------------------------
Ciena* 3,210,000 337,451
Corning 2,730,000 208,845
JDS Uniphase* 3,550,000 289,103
--------
835,399
--------
--------------------------------------------------------------------------------
MEDICAL INSTRUMENTS -- 4.7%
--------------------------------------------------------------------------------
Medtronic 5,425,000 294,645
--------
294,645
--------
--------------------------------------------------------------------------------
INSURANCE -- 4.7%
--------------------------------------------------------------------------------
American International
Group 2,977,500 291,795
--------
291,795
--------
--------------------------------------------------------------------------------
NETWORKING PRODUCTS -- 9.4%
--------------------------------------------------------------------------------
Cisco Systems* 5,250,000 282,844
Juniper Networks* 1,550,000 302,250
--------
585,094
--------
--------------------------------------------------------------------------------
PHARMECEUTICALS -- 16.0%
--------------------------------------------------------------------------------
Lilly (Eli) & Company 3,760,000 336,050
Merck & Company 4,200,000 377,737
Pfizer 6,475,000 279,639
--------
993,426
--------
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SECURITY BROKERS -- 7.6%
--------------------------------------------------------------------------------
First Data 180,000 $ 9,023
Morgan Stanley, Dean Witter,
Discover 2,835,000 227,686
Schwab Charles 6,635,000 233,054
---------
469,763
---------
--------------------------------------------------------------------------------
SEMI-CONDUCTORS/ELECTRONICS -- 7.4%
--------------------------------------------------------------------------------
Intel 4,740,000 213,300
Linear Technology 3,845,000 248,243
---------
461,543
---------
--------------------------------------------------------------------------------
PREPACKED SOFTWARE -- 4.0%
--------------------------------------------------------------------------------
Microsoft* 3,650,000 251,394
---------
251,394
---------
--------------------------------------------------------------------------------
SEMI-CONDUCTOR CAPITAL
EQUIPMENT MANUFACTURING -- 4.7%
--------------------------------------------------------------------------------
Applied Materials* 5,500,000 292,188
---------
292,188
---------
--------------------------------------------------------------------------------
STORAGE AREA NETWORKING -- 5.0%
--------------------------------------------------------------------------------
Brocade Communication
Systems* 1,382,000 314,232
---------
314,232
---------
--------------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT -- 3.7%
--------------------------------------------------------------------------------
Nortel Networks 5,000,000 227,500
---------
227,500
---------
TOTAL COMMON STOCKS
(Cost $4,368,070) 6,076,178
---------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 3.0%
--------------------------------------------------------------------------------
J.P. Morgan
6.50%, dated 10/31/00, matures
11/1/00, repurchase price
$60,993,822 (collateralized
by U.S. Treasury Note,
par value $61,467,000,
6.50%, 8/31/01, total
market value:
$62,202,700) $60,983 60,983
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WHITE OAK GROWTH STOCK FUND -- CONTINUED
--------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- (CONTINUED)
--------------------------------------------------------------------------------
Greenwich
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $61,709,245
(collateralized by U.S. Treasury Note,
par value $59,600,000, 6.125%,
11/15/27, total market value:
$62,933,927) $61,698 $61,698
Lehman Brothers
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $62,644,613
(collateralized by various U.S. Treasury
Instruments, total market value:
$63,889,461) 62,633 62,633
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $185,314) 185,314
---------
TOTAL INVESTMENTS -- 100.7%
(Cost $4,553,384) 6,261,492
---------
--------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.7%) (42,412)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
--------------------------------------------------------------------------------
Portfolio Shares (unlimited authorization
-- no par value) based on 80,717,064
outstanding shares of beneficial interest $ 4,487,477
Accumulated net realized gain
on investments 23,495
Net unrealized appreciation on
investments 1,708,108
-----------
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $6,219,080
--------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share $77.05
===========
*NON-INCOME PRODUCTING SECURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
www.oakassociates.com
..................................... 17 .......................................
<PAGE>
STATEMENT OF NET ASSETS
................................................................................
OCTOBER 31, 2000
RED OAK TECHNOLOGY SELECT FUND
--------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 98.1%
--------------------------------------------------------------------------------
APPLICATION SERVICE PROVIDER -- 2.0%
--------------------------------------------------------------------------------
Exodus Communications* 1,301,600 $ 43,685
----------
43,685
----------
--------------------------------------------------------------------------------
COMPUTER HARDWARE-- 4.6%
--------------------------------------------------------------------------------
Sun Microsystems* 931,000 103,225
----------
103,225
----------
--------------------------------------------------------------------------------
COMPUTER STORAGE -- 10.4%
--------------------------------------------------------------------------------
EMC* 1,030,200 91,752
Network Appliance* 1,162,300 138,314
----------
230,066
----------
--------------------------------------------------------------------------------
FIBER OPTICS -- 16.8%
--------------------------------------------------------------------------------
Ciena* 1,285,400 135,128
JDS Uniphase* 929,800 75,721
Newport 758,200 86,589
SDL* 292,500 75,830
----------
373,268
----------
--------------------------------------------------------------------------------
NETWORKING PRODUCTS-- 15.2%
--------------------------------------------------------------------------------
Cacheflow* 782,500 84,510
Cisco Systems* 2,023,800 109,032
Juniper Networks* 743,500 144,982
----------
338,524
----------
--------------------------------------------------------------------------------
SEMI-CONDUCTORS/ELECTRONICS -- 29.5%
--------------------------------------------------------------------------------
Avanex* 498,500 50,629
Broadcom (Class A)* 519,000 115,413
Intergrated Device Technology* 1,384,000 77,936
Maxim Integrated Products* 1,527,600 101,299
PMC-Sierra* 502,000 85,089
Semtech* 1,955,800 63,075
TriQuint Semiconductor* 1,975,200 75,675
Vitesse Semiconductor* 1,225,000 85,673
----------
654,789
----------
--------------------------------------------------------------------------------
STORAGE AREA NETWORKING -- 9.3%
--------------------------------------------------------------------------------
Brocade Communication Systems* 473,800 107,730
JNI* 1,104,000 98,325
----------
206,055
----------
--------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SEMI-CONDUCTOR CAPITAL EQUIPMENT
MANUFACTURING -- 7.4%
--------------------------------------------------------------------------------
Applied Materials* 1,366,600 $ 72,601
Novellus Systems* 2,200,000 90,062
----------
162,663
----------
--------------------------------------------------------------------------------
PREPACKAGED SOFTWARE -- 2.9%
--------------------------------------------------------------------------------
Tibco Software* 1,031,500 64,984
----------
64,984
----------
TOTAL COMMON STOCKS
(Cost $1,952,854) 2,177,259
----------
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 2.0%
--------------------------------------------------------------------------------
Greenwich
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $19,647,401
(collateralized by U.S. Treasury Note,
par value $19,550,000, 6.0%,
8/15/09, total market value:
$20,039,812) $19,644 19,644
J.P. Morgan
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $3,706,798
(collateralized by U.S. Treasury Note,
par value $3,792,000, 5.50%,
8/31/01, total market value:
$3,780,732) 3,706 3,706
Lehman Brothers
6.50%, dated 10/31/00, matures
11/1/00, repurchase price $21,606,697
(collateralized by U.S. Treasury Note,
par value $22,038,410, 8.00%,
5/15/01, total market value:
$22,038,910) 21,603 21,603
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $44,953) 44,953
----------
TOTAL INVESTMENTS -- 100.1%
(Cost $1,997,807) 2,222,212
----------
--------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (2,102)
--------------------------------------------------------------------------------
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<PAGE>
................................................................................
[GRAPHIC OF TREE OMITTED]
RED OAK TECHNOLOGY SELECT FUND -- CONTINUED
-----------------------------------------------------------
MARKET
DESCRIPTION VALUE (000)
-----------------------------------------------------------
NET ASSETS:
-----------------------------------------------------------
Portfolio Shares (unlimited authorization
-- no par value) based on 65,585,208
outstanding shares of beneficial interest $2,053,638
Accumulated net realized loss
on investments (57,933)
Net unrealized appreciation
on investments 224,405
----------
-----------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $2,220,110
-----------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share $33.85
==========
*NON-INCOME PRODUCTING SECURITY.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
www.oakassociates.com
.................................... 19 ........................................
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
....................................................................................................................................
FOR THE YEAR ENDED OCTOBER 31, 2000
PIN OAK WHITE OAK RED OAK
AGGRESSIVE STOCK GROWTH STOCK TECHNOLOGY SELECT
FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C>
Dividends ................................ $ 332 $ 15,822 $ 36
Interest ................................. 2,147 7,368 2,159
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income ............... 2,479 23,190 2,195
------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ................. 4,494 29,688 8,132
Investment Advisory Fee Waiver ........... (131) -- (179)
Administration Fees ...................... 662 3,276 1,050
Custodian Fees ........................... 29 183 53
Transfer Agent Fees and Expenses ......... 648 3,829 1,120
Professional Fees ........................ 19 99 35
Trustee Fees ............................. 2 17 3
Registration Fees ........................ 286 924 552
Printing ................................. 63 404 118
Insurance and Other Fees ................. 3 19 5
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses ........................ 6,075 38,439 10,889
------------------------------------------------------------------------------------------------------------------------------------
Net Investment Loss ................... (3,596) (15,249) (8,694)
------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold ....................... (2,244) 33,207 (56,567)
Net Unrealized Appreciation of
Investment Securities ................. 40,713 1,015,213 173,969
------------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
on Investments ..................... 38,469 1,048,420 117,402
------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations .................... $34,873 $1,033,171 $108,708
====================================================================================================================================
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
The accompanying notes are an integral part of the financial statements.
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...................................... 20 ......................................
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
....................................................................................................................................
FOR THE PERIODS ENDED OCTOBER 31
PIN OAK WHITE OAK RED OAK
AGGRESSIVE STOCK GROWTH STOCK TECHNOLOGY
FUND FUND SELECT FUND
------------------- ------------------- -------------------
11/01/99 11/01/98 11/01/99 11/01/98 11/01/99 12/31/98 (1)
TO 10/31/00 TO 10/31/99 TO 10/31/00 TO 10/31/99 TO 10/31/00 TO 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Loss ............. $ (3,596) $ (419) $ (15,249) $ (5,231) $ (8,694) $ (531)
Net Realized Gain (Loss)
on Securities Sold ........ (2,244) 6,073 33,207 (3,755) (56,567) (1,366)
Net Unrealized Appreciation of
Investment Securities ........ 40,713 41,997 1,015,213 613,797 173,969 50,436
------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting From Operations .... 34,873 47,651 1,033,171 604,811 108,708 48,539
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ........... -- -- -- -- -- --
Realized Capital Gains .......... (5,465) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total Distributions .......... (5,465) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ................... 1,592,983 84,532 4,036,586 1,169,912 2,903,298 137,216
Shares Issued in Lieu of Cash
Distributions ................. 5,222 -- -- -- -- --
Shares Redeemed ................. (540,080) (41,872) (1,047,041) (408,578) (960,458) (17,193)
------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From Capital
Share Transactions ........ 1,058,125 42,660 2,989,545 761,334 1,942,840 120,023
------------------------------------------------------------------------------------------------------------------------------------
Total Increase in
Net Assets ........... 1,087,533 90,311 4,022,716 1,366,145 2,051,548 168,562
------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .......... 131,755 41,444 2,196,364 830,219 168,562 --
------------------------------------------------------------------------------------------------------------------------------------
End of Period ................ $1,219,288 $131,755 $6,219,080 $2,196,364 $2,220,110 $168,562
------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued ....................... 22,051 2,631 54,187 25,841 83,393 11,337
Issued in Lieu of Cash
Distributions .............. 112 -- -- -- -- --
Redeemed ..................... (7,756) (1,369) (14,692) (9,008) (27,760) (1,385)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Share
Transactions .................. 14,407 1,262 39,495 16,833 55,633 9,952
------------------------------------------------------------------------------------------------------------------------------------
<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.
www.oakassociates.com
...................................... 21 ......................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS
................................................................................
OCTOBER 31, 2000
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 funds: Pin Oak
Aggressive Stock Fund, White Oak Growth Stock Fund and Red Oak Technology Select
Fund (the "Funds"). The assets of each Fund are segregated, and a shareholder's
interest is limited to the Fund 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.
Securities for which market quotations are not readily available are valued
at fair value as determined in good faith by, or in accordance with
procedures approved by the Board of Trustees.
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.
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
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................................................................................
[GRAPHIC OF TREE OMITTED]
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
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. In accordance with Statement of Position 93-2, Pin Oak Aggressive
Growth Fund, White Oak Growth Stock Fund, and Red Oak Technology Select Fund
reclassed $3,595,438, $15,248,784, and $8,693,235 respectively from Net
Investment Loss to Paid In Capital in the Statement of Net Assets. This
reclassification, which has no impact on the net asset value of the Funds,
is primarily attributable to net operating losses and differences in the
computation of distributable income under federal income tax rules versus
generally accepted accounting principles.
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, as amended October 1, 2000, under which the Administrator
provides management and administrative services for an annual fee of 0.04% of
the average daily net assets of each of the Funds up to $10 billion, 0.0175% on
the next $5 billion, and 0.015% of such assets in excess of $15 billion.
Prior to October 1, 2000, the Administrator was entitled to a 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.
The Trust has entered into an agreement with SEI Investments to manage the
investments of repurchase agreements for the Funds. For its
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...................................... 23 ......................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
OCTOBER 31, 2000
services SEI Investments Distribution Co. received $96,201 for the year ended
October 31, 2000.
DST Systems, Inc. (the "Transfer Agent") serves as the transfer agent and
dividend disbursing agent for the Funds under a transfer agency agreement with
the Trust. From time to time, the Funds may pay amounts to third parties that
provide sub-transfer agency and other administrative services relating to the
Funds to persons who beneficially own interests in the Funds.
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.
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 year ended October 31, 2000, are as follows:
PIN OAK WHITE OAK RED OAK
AGGRESSIVE GROWTH TECHNOLOGY
STOCK STOCK SELECT
FUND FUND FUND
(000) (000) (000)
---------- ---------- ----------
Purchases .... $1,094,623 $3,428,955 $2,336,593
Sales ........ 77,512 545,853 440,833
At October 31, 2000, 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 October 31, 2000, 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 ......... $291,197 $2,049,685 $513,281
Aggregate gross
unrealized
depreciation ......... (195,401) (341,577) (288,876)
-------- ---------- --------
Net unrealized
appreciation ......... $ 95,736 $1,708,108 $224,405
======== ========== ========
7. CAPITAL LOSS CARRYFORWARDS:
The capital loss carryforwards at October 31, 2000, for federal income tax
purposes are as follows (000):
EXPIRES EXPIRES
2007 2008
------- -------
Red Oak Technology
Select Fund ......... $1,366 $56,063
The capital loss carryforwards will be used to offset future net realized gains,
if any, and such gains offset will not be distributed.
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<PAGE>
REPORT OF INDEPENDENT PUBLIC
ACCOUNTANTS
................................................................................
To the Shareholders and Board of Trustees of
Oak Associates Funds:
We have audited the accompanying statements of net assets of the Pin Oak
Aggressive Stock Fund, White Oak Growth Stock Fund, and Red Oak Technology
Select Fund of the Oak Associates Funds (the "Trust") as of October 31, 2000,
and the related statements of operations for the year then ended, the statements
of changes in net assets and the financial highlights for the periods presented.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Pin Oak Aggressive Stock Fund, White Oak Growth Stock Fund, and Red Oak
Technology Select Fund of the Oak Associates Funds as of October 31, 2000, the
results of their operations for the year then ended, and the changes in their
net assets and the financial highlights for the periods presented, in conformity
with accounting principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
November 20, 2000
www.oakassociates.com
...................................... 25 ......................................
<PAGE>
NOTICE TO SHAREHOLDERS (UNAUDITED)
................................................................................
For shareholders that do not have an October 31, 2000 tax year end, this notice
is for informational purposes only. For shareholders with an October 31, 2000
tax year end, please consult your tax advisor as to the pertinence of this
notice. For the fiscal year ended October 31, 2000, each portfolio is
designating the following items with regard to distributions paid during the
year.
<TABLE>
<CAPTION>
LONG TERM
(20% RATE) ORDINARY
CAPITAL GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING
FUND DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS(1)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Pin Oak Aggressive Stock Fund 100.00% 0.00% 0.00% 100.00% 0.00%
White Oak Growth Stock Fund 0.00% 0.00% 0.00% 0.00% 0.00%
Red Oak Technology Select Fund 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(1) QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE CORPORATE DIVIDENDS RECEIVED DEDUCTION
AND IS REFLECTED AS A PERCENTAGE OF "ORDINARY INCOME DISTRIBUTIONS".
</FN>
</TABLE>
1-888-462-5386
...................................... 26 ......................................
<PAGE>
NOTES
................................................................................
[GRAPHIC OF TREE OMITTED]
www.oakassociates.com
...................................... 27 ......................................
<PAGE>
NOTES
................................................................................
1-888-462-5386
...................................... 28 ......................................
<PAGE>
[GRAPHIC LEAF OMITTED]
<PAGE>
[LOGO OMITTED]
OAK
ASSOCIATES
FUNDS
P.O. BOX 219441
KANSAS CITY, MO 64121-9441
CALL TOLL FREE
1-888-4OAKFUND
(1-888-462-5386)
WWW.OAKASSOCIATES.COM
OAK-F-021-09000
