- --------------------------------------------------------------------------------
ANNUAL REPORT
MAY 31,1999
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ATALANTA/SOSNOFF INVESTMENT TRUST
101 Park Avenue o New York, NY 10178
toll free 1-877-SOSNOFF (767-6633)
website o www.atalantasosnoff.com
e-mail o [email protected]
BOARD OF TRUSTEES
Howard A. Drucker
Anthony G. Miller
Toni E. Sosnoff [LOGO]
Irving L. Straus
Aida L. Wilder
INVESTMENT ADVISER
Atalanta/Sosnoff Capital Corp. (Delaware)
101 Park Avenue o New York, NY 10178
DISTRIBUTOR
Atalanta/Sosnoff Management Corporation
101 Park Avenue o New York, NY 10178
ATALANTA/SOSNOFF FUND
TRANSFER AGENT
Countrywide Fund Services, Inc.
P.O. Box 5354 o Cincinnati, OH 45201-5354
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[LOGO]
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<PAGE>
Letter To Shareholders July 15, 1999
================================================================================
Dear Shareholder:
For the fiscal period ended May 31, 1999, the Fund returned 23.4%, compared with
the S&P 500 Index return of 21.3%. These are especially good results in view of
the extreme volatility in the market over the last year.
In 1999, after a strong start, our performance lagged the S&P benchmark in the
second calendar quarter. The value sector strongly outperformed growth during
the second quarter, particularly in April and May. Overweighted positions in
cable and broadcasting corrected somewhat, but are doing better since June.
Underweighted sectors, such as technology, detracted from performance while
overweighted financials, particularly brokerage stocks, did poorly. Stock
selection in consumer cyclicals and chemicals also cost us some performance.
Despite an upward bias for interest rates, the growth sector (where we are
concentrated) has begun to recover. Our performance picked up during June and
this is carrying over into July.
We have adjusted the portfolio for a much stronger economic setting. We have
reduced holdings in the drug sector and financials. Several sectors where we
have remained very underweighted or unrepresented for several years are now
foothold positions. These include energy, the chemical industry and autos, as
well as commodity plays like gypsum.
Both the Federal Reserve Board and the majority of economists have grossly
underestimated the strength of economic activity in the country. The consensus
at year-end was below average GDP growth, possibly 2 percent. Many pundits were
forecasting a recession in '99. The reality is that consumer end product demand
has propelled GDP momentum to almost double the normalized growth rate of 2.5
percent. Retail sales, autos and housing are buoyant and unlikely to ease much
this year. All this is happening while inventories are quite moderate and our
foreign trade balance is negative at a $200 billion annual rate.
The Pacific Rim economies are slowly coming out of recession, as are large
economies in South America like Brazil. The impact on commodities, particularly
oil, has been dramatic. Industrial commodity prices rose 5 percent during the
second quarter while oil futures remain buoyant.
With consumer end product demand strong, domestic GDP momentum should continue
at a 4 percent clip thereby keeping upward pressure on inflation. Therefore, we
expect the Federal Reserve Board to increase money market rates by 25 to 50
basis points in the next six months even though the Fed recently gave an
indication of being neutral on short-term rates near term. The yield curve is
already steepening to reflect the stronger economy and more commodity price
inflation. While interest rates to some extent govern the valuation level for
equities, we expect corporate earnings to show very strong momentum this year.
Our projection for some time has been above consensus for the S&P 500 Index. Our
$50 a share earnings projection is now the consensus as estimates have risen
from $46 a share. Actually, we expect corporate earnings will rise 10 percent,
so our $50 earnings projection could still be low.
1
<PAGE>
Letter To Shareholders (Continued)
================================================================================
The issue of stock market valuation has specific pluses and minuses. If
corporate earnings are as good as we expect, it partially offsets the negative
impact of rising interest rates. To the extent that the inflationary trends are
moderate, as seen in the Consumer Price Index, the stock market can deal with
this. If there is more than a 50 basis point rise in yields, the market could
see some correction in price-earnings ratios. Our portfolio changes reflect this
point of view. Growth stocks that are at high valuations (drugs) do not benefit
from quickening GDP momentum so they can see their valuation pared. Since these
stocks are discounting 15 percent growth rates out to the year 2000 we have
reduced our holdings significantly. Cyclical growth stocks should continue to do
well and this is the heart of the portfolio construct-- cable, radio,
television, retailing, telecommunications and technology.
Sincerely,
Martin T. Sosnoff
o o o
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Comparison of the Change in Value of a $10,000 Investment
in the Atalanta/Sosnoff Fund and the S&P 500 Index
[GRAPHIC OMITTED]
5/31/99
-------
Atalanta/Sosnoff Fund $12,340
S&P 500 Index $12,130
------------------------------
Atalanta/Sosnoff Fund
Total Return
Since Inception* 23.40%
------------------------------
Past performance is not predictive of future performance.
*Initial public offering of shares was June 17, 1998.
2
<PAGE>
PORTFOLIO CHARACTERISTICS (UNAUDITED)
================================================================================
SECTOR CONCENTRATION VS. THE S&P 500 INDEX (AS OF MAY 31, 1999)
[GRAPHIC OMITTED]
TOP TEN HOLDINGS (AS OF MAY 31, 1999)
% of
Stock Sector Portfolio
-------------------------------------------------------------
Cablevision Systems Consumer Staples 5.9%
Chancellor Media Consumer Staples 4.9%
Microsoft Technology 4.5%
AT&T - Liberty Media Group Consumer Staples 4.4%
IBM Technology 3.4%
Merrill Lynch Financial 3.3%
Time Warner Consumer Staples 3.2%
Citigroup Financial 3.1%
MCI WorldCom Communication Services 2.4%
USG Capital Goods 2.4%
-----
Total: 37.5%
COMPARATIVE PERFORMANCE
<TABLE>
<CAPTION>
Average Annual Total Returns
Total Returns ---------------------------------
Since Inception* Year Ended Since Inception*
to May 31, 1999 June 30, 1999 to June 30, 1999
--------------- ------------- ----------------
<S> <C> <C> <C>
Atalanta/Sosnoff Fund 23.40% 18.07% 25.02%
Morningstar Large Cap Blend Category n/a% 17.58% n/a%
Lipper Growth Fund Index 16.34% 21.69% 22.27%
S&P 500 Index 21.30% 22.76% 26.87%
</TABLE>
*Inception (June 17, 1998)
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1999
================================================================================
ASSETS
Investment securities:
At acquisition cost ....................................... $ 11,587,209
============
At market value (Note 1) .................................. $ 13,912,458
Dividends receivable ......................................... 10,475
Receivable for capital shares sold ........................... 13,340
Receivable for securities sold ............................... 96,469
Receivable from Adviser (Note 3) ............................. 8,000
Organization costs, net (Note 1) ............................. 46,112
Other assets ................................................. 15,023
------------
TOTAL ASSETS ........................................... 14,101,877
------------
LIABILITIES
Bank overdraft ............................................... 1,995
Payable for securities purchased ............................. 595,944
Payable to affiliates (Note 3) ............................... 10,700
Other accrued expenses and liabilities ....................... 13,268
------------
TOTAL LIABILITIES ......................................... 621,907
------------
NET ASSETS ................................................... $ 13,479,970
============
Net assets consist of:
Paid-in capital .............................................. $ 11,566,805
Accumulated net realized losses from security transactions ... (412,084)
Net unrealized appreciation on investments ................... 2,325,249
------------
Net assets ................................................... $ 13,479,970
============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ................ 1,092,454
============
Net asset value, offering price and
redemption price per share (Note 1) ....................... $ 12.34
============
See accompanying notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED MAY 31, 1999(A)
================================================================================
INVESTMENT INCOME
Dividends ................................................... $ 89,751
-----------
EXPENSES
Investment advisory fees (Note 3) ........................... 74,620
Trustees' fees and expenses ................................. 22,594
Accounting services fees (Note 3) ........................... 22,000
Transfer agent fees (Note 3) ................................ 16,500
Service plan expense (Note 3) ............................... 24,873
Professional fees ........................................... 14,781
Registration fees ........................................... 14,656
Administration fees (Note 3) ................................ 14,074
Organization expense (Note 1) ............................... 11,528
Custodian fees .............................................. 11,293
Postage and supplies ........................................ 10,418
Insurance expense ........................................... 9,145
Printing of shareholder reports ............................. 6,269
Other expenses .............................................. 841
-----------
TOTAL EXPENSES ........................................... 253,592
Fees waived and expenses reimbursed by the Adviser (Note 3) . (104,369)
-----------
NET EXPENSES ............................................. 149,223
-----------
NET INVESTMENT LOSS ............................................ (59,472)
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions .............. (412,084)
Net change in unrealized appreciation/
depreciation on investments .............................. 2,325,249
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ............... 1,913,165
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..................... $ 1,853,693
===========
(a) Represents the period from the initial public offering of shares (June 17,
1998) through May 31, 1999.
See accompanying notes to financial statements.
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED MAY 31, 1999(A)
================================================================================
FROM OPERATIONS:
Net investment loss ....................................... $ (59,472)
Net realized losses from security transactions ............ (412,084)
Net change in unrealized appreciation/
depreciation on investments ............................ 2,325,249
------------
Net increase in net assets from operations ................... 1,853,693
------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ................................. 11,915,638
Payments for shares redeemed .............................. (389,361)
------------
Net increase in net assets from capital share transactions ... 11,526,277
------------
TOTAL INCREASE IN NET ASSETS ................................. 13,379,970
NET ASSETS:
Beginning of period (Note 1) .............................. 100,000
------------
End of period ............................................. $ 13,479,970
============
CAPITAL SHARE ACTIVITY:
Shares sold ............................................... 1,120,933
Shares redeemed ........................................... (38,479)
------------
Net increase in shares outstanding ........................ 1,082,454
Shares outstanding, beginning of period (Note 1) .......... 10,000
------------
Shares outstanding, end of period ......................... 1,092,454
============
(a) Represents the period from the initial public offering of shares (June 17,
1998) through May 31, 1999.
See accompanying notes to financial statements.
6
<PAGE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED MAY 31, 1999(A)
================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
Net asset value at beginning of period ......................... $ 10.00
----------
Income from investment operations:
Net investment loss ......................................... (0.05)
Net realized and unrealized gains on investments ............ 2.39
----------
Total from investment operations ............................... 2.34
----------
Net asset value at end of period ............................... $ 12.34
==========
Total return(b) ................................................ 23.40%
==========
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) ........................... $ 13,480
==========
Ratio of net expenses to average net assets(c)(d) .............. 1.50%
Ratio of net investment loss to average net assets(d) .......... (0.60%)
Portfolio turnover rate(d) ..................................... 124%
(a) Represents the period from the initial public offering of shares (June 17,
1998) through May 31, 1999.
(b) Not annualized.
(c) Absent fee waivers and expense reimbursements by the Adviser, the ratio of
expenses to average net assets would have been 2.54%(d) for the period
ended May 31, 1999 (Note 3).
(d) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
PORTFOLIO OF INVESTMENTS
MAY 31, 1999
================================================================================
Market
COMMON STOCKS -- 97.4% Shares Value
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BASIC MATERIALS -- 4.8%
Air Products and Chemicals ..................... 5,000 $ 205,000
Praxair ........................................ 5,000 244,063
Rohm and Haas .................................. 4,800 192,600
------------
641,663
------------
COMMUNICATION SERVICES -- 6.2%
AT&T ........................................... 4,305 238,927
MCI WorldCom* .................................. 3,700 319,588
Sprint ......................................... 2,400 270,600
------------
829,115
------------
CONSUMER CYCLICALS -- 10.8%
Costco Companies* .............................. 3,500 253,750
Delphi Automotive Systems* ..................... 1,957 38,406
Ford Motor ..................................... 4,000 228,250
General Motors ................................. 2,800 193,200
Southdown ...................................... 3,700 234,488
USG ............................................ 5,600 317,100
Wal-Mart Stores ................................ 4,600 196,075
------------
1,461,269
------------
CONSUMER STAPLES -- 31.6%
AT&T - Liberty Media Group - Class A* .......... 8,700 578,006
Cablevision Systems - Class A* ................. 9,800 772,975
CBS* ........................................... 2,900 121,075
Chancellor Media* .............................. 12,700 645,319
Comcast - Class A* ............................. 5,200 200,200
Fox Entertainment Group - Class A* ............. 10,000 255,000
Gillette ....................................... 3,900 198,900
Kroger* ........................................ 4,800 281,100
MediaOne Group* ................................ 4,200 310,275
News Corporation Limited - ADR ................. 7,000 213,063
Safeway* ....................................... 5,700 265,050
Time Warner .................................... 6,200 421,987
------------
4,262,950
------------
ENERGY -- 2.4%
Texaco ......................................... 2,000 131,000
Unocal ......................................... 4,800 190,800
------------
321,800
------------
8
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
Market
COMMON STOCKS -- 97.4% (Continued) Shares Value
- --------------------------------------------------------------------------------
FINANCIAL -- 20.3%
American International Group ................... 1,900 $ 217,194
Capital One Financial .......................... 1,800 271,238
Chase Manhattan ................................ 2,600 188,500
CIGNA .......................................... 2,900 270,425
CIT Group - Class A ............................ 5,500 159,500
Citigroup ...................................... 6,100 404,125
Fannie Mae ..................................... 4,300 292,400
Heller Financial ............................... 6,900 205,275
Merrill Lynch .................................. 5,200 436,800
Providian Financial ............................ 3,100 297,406
------------
2,742,863
------------
HEALTH CARE -- 6.8%
ICN Pharmaceuticals ............................ 8,300 272,862
Medtronic ...................................... 3,303 234,513
Pfizer ......................................... 1,600 171,200
United HealthCare .............................. 4,000 233,000
------------
911,575
------------
TECHNOLOGY -- 14.5%
Apple Computer* ................................ 3,000 132,187
Cisco Systems* ................................. 900 97,987
EMC* ........................................... 1,600 159,400
IBM ............................................ 3,800 441,988
Lycos* ......................................... 2,500 251,250
Microsoft* ..................................... 7,300 589,019
National Semiconductor* ........................ 6,900 133,687
Sun Microsystems* .............................. 2,500 149,375
------------
1,954,893
------------
TOTAL COMMON STOCKS-- 97.4% (Cost $10,800,879).. 13,126,128
------------
CASH EQUIVALENTS -- 5.8%
Firstar Stellar Treasury Fund (Cost $786,330) .. 786,330
------------
TOTAL INVESTMENT SECURITIES-- 103.2% (Cost $11,587,209) 13,912,458
LIABILITIES IN EXCESS OF OTHER ASSETS-- (3.2%) . (432,488)
------------
NET ASSETS-- 100.0% ............................ $ 13,479,970
============
* Non-income producing security.
ADR - American Depository Receipt.
See accompanying notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1999
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Atalanta/Sosnoff Fund (the Fund) is a diversified series of the
Atalanta/Sosnoff Investment Trust (the Trust), an open-end management investment
company registered under the Investment Company Act of 1940. The Trust was
organized as an Ohio business trust on January 29, 1998. The Fund was
capitalized on May 6, 1998 when Atalanta/Sosnoff Capital Corporation (Delaware)
(the Adviser) purchased the initial 10,000 shares of the Fund at $10 per share.
The public offering of shares of the Fund commenced on June 17, 1998. The Fund
had no operations prior to the public offering of shares except for the initial
issuance of shares.
The Fund seeks long-term capital appreciation, through equity investments in
companies entering into a cycle of accelerating earnings momentum.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued as of the
close of the regular session of trading on the New York Stock Exchange (normally
4:00 p.m., Eastern time). Securities which are traded on stock exchanges or are
quoted by NASDAQ are valued at the last reported sale price or, if not traded on
a particular day, at the closing bid price. Securities traded in the
over-the-counter market, and which are not quoted by NASDAQ, are valued at the
last sale price, if available, otherwise, at the last quoted bid price.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith in accordance with consistently applied
procedures established by and under the general supervision of the Board of
Trustees.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding, rounded to the nearest cent. The offering and
redemption price per share of the Fund is equal to the net asset value per
share.
Investment income -- Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned.
Distributions to shareholders-- Dividends arising from net investment income, if
any, are declared and paid annually to shareholders of the Fund. Net realized
short-term capital gains, if any, may be distributed throughout the year and net
realized long-term capital gains, if any, are distributed at least once each
year. Income dividends and capital gain distributions are determined in
accordance with income tax regulations.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are determined on a specific identification basis.
Organization costs -- Costs incurred by the Fund in connection with its
organization and registration of shares, net of certain expenses, have been
capitalized and are being amortized on a straight-line basis over a five year
period beginning with the commencement of operations.
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 at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code (the Code) available to regulated
investment companies. As provided therein, in any fiscal year in which the Fund
so qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
There were no dividends required to be declared by the Fund during calendar year
1998.
As of May 31, 1999, net unrealized appreciation on investments was $2,306,709
for federal income tax purposes, of which $2,565,833 related to appreciated
securities and $259,124 related to depreciated securities based on a federal
income tax cost basis of $11,605,749. The difference between the federal income
tax cost of portfolio investments and the financial statement cost is due to
certain timing differences in the recognition of capital losses under income tax
regulations and generally accepted accounting principles.
As of May 31, 1999, the Fund had capital loss carryforwards for federal income
tax purposes of $393,544, which expire May 31, 2007. These capital carryforwards
may be utilized in future years to offset net realized gains prior to
distributing any such gains to shareholders.
Reclassification of capital accounts - As of May 31, 1999, the Fund reclassified
$59,472 of accumulated net investment loss to paid-in capital on the Statement
of Assets and Liabilities. The reclassification, a result of permanent
differences between financial statement and income tax reporting requirements,
had no effect on the Fund's net assets or net asset value per share.
2. INVESTMENT TRANSACTIONS
During the period ended May 31, 1999, cost of purchases and proceeds from sales
of portfolio securities, other than short-term investments, amounted to
$22,605,664 and $11,405,975, respectively.
3. TRANSACTIONS WITH AFFILIATES
The President of the Trust is also Executive Vice President of the Adviser and
of Atalanta/Sosnoff Management Corporation (the Distributor), the principal
underwriter for the Fund and exclusive agent for the distribution of Fund
shares. The Vice President of the Trust is also Vice President of the Adviser.
Certain other officers of the Trust are also officers of Countrywide Fund
Services, Inc. (CFS), the administrative services agent, shareholder servicing
and transfer agent and accounting services agent for the Trust.
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by the Adviser pursuant to the terms of an
Investment Advisory Agreement. The Fund pays the Adviser an investment advisory
fee, computed and accrued daily and paid monthly, at an annual rate of 0.75% of
average daily net assets of the Fund.
The Adviser currently intends to voluntarily waive its investment advisory fees
and reimburse the Fund for expenses incurred to the extent necessary to limit
total operating expenses of the Fund to a maximum level of 1.50% of the Fund's
average daily net assets. Accordingly, the Adviser waived its investment
advisory fees of $74,620 and reimbursed the Fund for $29,749 of other operating
expenses during the period ended May 31, 1999.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, CFS supplies non-investment
related statistical and research data, internal regulatory compliance services
and executive and administrative services for the Fund. CFS supervises the
preparation of tax returns, reports to shareholders of the Fund, reports to and
filings with the Securities and Exchange Commission and state securities
commissions and materials for meetings of the Board of Trustees. For these
services, CFS receives a monthly fee at an annual rate of 0.15% on the Fund's
average daily net assets up to $50 million; 0.125% on such net assets between
$50 million and $100 million; and 0.10% on such net assets in excess of $100
million, subject to a $1,000 minimum monthly fee.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement, CFS calculates the daily
net asset value per share and maintains the financial books and records of the
Fund. For these services, CFS receives a fee, based on current asset levels, of
$2,000 per month from the Fund. In addition, the Fund reimburses CFS for
out-of-pocket expenses related to the pricing of the Fund's portfolio
securities.
TRANSFER AGENT AGREEMENT
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement, CFS maintains the records of each shareholder's account,
answers shareholders' inquiries concerning their accounts, processes purchases
and redemptions of the Fund's shares, acts as dividend and distribution
disbursing agent and performs other shareholder service functions. For these
services, CFS receives a monthly fee at an annual rate of $20 per shareholder
account from the Fund, subject to a $1,500 minimum monthly fee. In addition, the
Fund reimburses CFS for out-of-pocket expenses including, but not limited to,
postage and supplies.
SERVICE PLAN
The Fund has adopted a service plan (the Plan) under which the Fund compensates
the Distributor for services related to the distribution and promotion of Fund
shares. The Fund pays the Distributor a fee, computed and accrued daily and paid
monthly, at an annual rate of 0.25% of the average daily net assets of the Fund.
During the period ended May 31, 1999, the Fund incurred expenses of $24,873
under the Plan.
12
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
================================================================================
Arthur Andersen LLP [LOGO]
To the Shareholders and Board of Trustees of the Atalanta/Sosnoff Investment
Trust:
We have audited the accompanying statement of assets and liabilities of the
Atalanta/Sosnoff Fund of the Atalanta/Sosnoff Investment Trust, including the
portfolio of investments, as of May 31, 1999, and the related statement of
operations, the statement of changes in net assets, and the financial highlights
for the period indicated thereon. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of May 31, 1999, by correspondence with the
custodian and broker. 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 audit provides 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
Atalanta/Sosnoff Fund of the Atalanta/Sosnoff Investment Trust as of May 31,
1999, the results of its operations, the changes in its net assets, and the
financial highlights for the period indicated thereon, in conformity with
generally accepted accounting principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio
June 25, 1999
13
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