SMT FUND
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SCHEDULE OF INVESTMENTS
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As of November 30, 1999 (Unaudited)
Number Market
of Shares Value
--------- -----
MONEY MARKET - 0.01%
- --------------------
Firstar US Treasury Fund 939 939
Total Money Market
(Cost $939) 939
------
Total Investments
(Cost $939) 939
Other Assets and Liabilities, Net - 99.99% 14,247,393
Net Assets - 100% $14,248,332
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The accompanying notes are an integral part of these financial statements.
<PAGE>
SMT FUND
STATEMENT OF ASSETS AND LIABILITIES
As of November 30, 1999 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost $939) ....................... $ 939
Receivable interest...................................... 32,062
Receivable dividend ..................................... 426
Receivable for investments sold ......................... 14,242,083
Deferred organization costs ............................. 30,382
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Total assets ............................................ 14,305,892
LIABILITIES
Payable for commissions due ............................. 12,220
Accrued management fees.................................. 44,905
Accrued other fees....................................... 435
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Total liabilities ......................... 57,560
NET ASSETS ................................................... $ 14,248,332
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Net assets consist of:
Paid-in capital ......................................... 13,043,782
Undistributed net investment income (loss)............... (203,301)
Accumulated undistributed net realized gain on investments 1,407,851
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Net assets .............................................. $ 14,248,332
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Shares of capital stock
outstanding (no par value,
unlimited shares authorized)............................. 1,214,978
Net asset value, offering
and redemption price per share .......................... $ 11.73
The accompanying notes are an integral part of these financial statements.
<PAGE>
SMT FUND
STATEMENT OF OPERATIONS
For the six months ended November 30, 1999 (Unaudited)
INVESTMENT INCOME
Income:
Interest ................................................ $ 209,004
Dividends ............................................... 7,902
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Total net income ................................... 216,906
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Expenses:
Management fees expense.................................. 412,019
Trustee fee expense ..................................... 3,359
Organization expense..................................... 4,829
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Total expenses....................................... 420,207
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NET INVESTMENT INCOME (LOSS).................................. (203,301)
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REALIZED AND UNREALIZED GAIN(LOSS)
ON INVESTMENTS
Net realized (loss) on investments....................... (362,136)
Change in unrealized appreciation of investments......... (58,146)
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DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................... $ (623,583)
=========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
SMT FUND
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STATEMENT OF CHANGES IN NET ASSETS
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For the six months ended November 30, 1999 (Unaudited)
<TABLE>
<S> <C> <C>
Six-Months Period
Ended Ended
November 30, May 31,
1999 1999 (a)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ............................ $ (203,301) $ (211,439)
Net change in unrealized appreciation of investments..... (58,146) 58,146
Net realized (loss) on investments ...................... (362,136) 2,961,344
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Decrease in net assets resulting from operations (623,583) 2,808,051
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Dividends and distributions to shareholders from:
Net realized gains (loss)................................ --- (979,918)
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Total increase (decrease) ................................... (623,583) 1,828,133
Capital share transactions:
Proceeds from shares sold .............................. 2,562,638 15,962,586
Dividend reinvested...................................... --- 979,918
Cost of shares redeemed.................................. (4,220,713) (2,240,647)
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Increase (decrease) in net assets resulting from
capital share transactions .............................. (1,658,075) 14,701,857
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TOTAL INCREASE (DECREASE) IN NET ASSETS....................... (2,281,658) 16,529,990
NET ASSETS:
Beginning of period ((including accumulated undistributed net
investment income $0)............................. 16,529,990 ---
End of period (including accumulated undistributed net
investment income loss $203,301) .................. $ 14,248,332 $16,529,990
========== ==========
Shares of capital stock of the Fund sold and redeemed:
Shares sold ............................................ 209,208 1,451,269
Shares reinvested........................................ --- 87,885
Shares redeemed.......................................... (343,849) (189,535)
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NET INCREASE (DECREASE) IN NUMBER
OF SHARES OUTSTANDING ................................... (134,641) 1,349,619
=========== =========
(a) For the period June 5, 1998 (commencement of operations) to May 31, 1999.
The accompanying notes are an integral part of these financial statements.
<PAGE>
SMT FUND
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FINANCIAL HIGHLIGHTS (Unaudited)
- -------------------- -----------
Six-Months Period
Ended Ended
November 30, May 31,
1999 1999 (a)
----- --------
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning ................................... $12.25 $ 10.00 Income from
investment
Operations:
Net investment income(loss) ............................. (0.15) (0.22) Net realized and
unrealized
gain (loss) on investments.......................... (0.37) 3.44
----- -----
Total from investment income ............................ (0.52) 3.22
Less distributions:
Dividends from realized gains ............ 0.00 (0.97)
Dividend from net investment income...................... 0.00 0.00
---- ----
Total distribution ........................................... 0.00 (0.97)
Net asset value at end of period ............................. $11.73 $ 12.25
===== ======
TOTAL RETURN ................................................. (4.24%) 33.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period................................ $ 14,248,332 $ 16,529,990
Ratio of expenses to average net assets ....... 4.99% (b) 4.99% (b)
Ratio of net investment income to average net assets ......... (2.42%) (b) (1.94%) (b)
Portfolio turnover ........................................... 6,924.10% 10,710.86%
(a) For the period June 5, 1998 (commencement of operations) to May 31, 1999.
(b) Annualized.
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<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -----------------------------------------
Note 1 - General
The SMT Fund (the "Fund") was organized as a series of Securities Management &
Timing Funds, an Ohio business trust (the"Trust") on February 20, 1998. The SMT
Fund is a diversified, open-end mutual fund whose investment objective is to
provide long term capital appreciation. The Fund seeks to achieve this objective
by following a market timing strategy which is based on a proprietary investment
model developed by Securities Management & Timing, Inc., the Fund's adviser. The
Fund attempts to be "in the market" (invested in a broad range of common stocks)
when the market is rising and "out of the market" (invested in money market
instruments) when the market is declining.
The Adviser's market timing strategy uses a proprietary, computer-driven
technical model that generates buy and sell signals. When the technical
indicators in the model generate a buy signal, the Fund will substantially
invest in a broad range of high quality stocks selected by the Adviser. When the
indicator generates a sell signal, the stocks will be sold and the proceeds
invested in money market instruments.
Note 2 - Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A) Security Valuations
Securities which are traded on any exchange or on the NASDAQ over-the-counter
market are valued at the last quoted sale price. Lacking a last sale price, a
security is valued at its last bid price except when, in the Adviser's opinion,
the last bid price does not accurately reflect the current value of the
security. All other securities for which over-the-counter market quotations are
readily available are valued at their last bid price. When market quotations are
not readily available, when the Adviser determines the last bid price does not
accurately reflect the current value or when restricted securities are being
valued, such securities are valued as determined in good faith by the Adviser,
subject to review of the Board of Trustees of the Trust.
B) Securities Transactions and Related Income
Securities transactions are recorded on a trade date. Realized gains and losses
from securities transactions are recorded on the identified cost basis. Interest
income is recorded on the accrual basis and dividend income is recorded on the
ex-dividend date.
C) Dividends and Distributions to Shareholders
The Fund intends to distribute substantially all of its net investment income as
dividends to its shareholders on an annual basis, and intends to distribute its
net long-term capital gains and its short-term capital gains at least once a
year. However, to the extent that net realized gains of the Fund could be
reduced by any capital loss carry-overs, such gains will not be distributed.
D) Federal Income Taxes
It is the policy of the Fund to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders.
E) Expenses
Organizational costs represent costs incurred in connection with the
organization and the initial public offering of the Fund. Organizational costs
are deferred and will be amortized on a straight-line basis over five years. In
the event that the original shareholder (or any subsequent transferee) redeems
any of its original capital (seed capital) prior to these organizational costs
being fully amortized, the redemption proceeds will be reduced by a pro-rata
portion of any then unamortized organizational costs.
For the six months ended November 30, 1999, the unamortized balance was $30,382.
F) Estimates
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Note 3 - Agreements and Other Transactions with Affiliates
The Fund retains Securities Management & Timing, Inc., (the "Adviser") to manage
the Fund's investments. The Fund is authorized to pay the Adviser a fee equal to
an annual average rate of 4.95% of its average daily net assets, minus the
amount by which the Fund's total expenses (including organizational expenses,
but excluding brokerage, taxes, interest and extraordinary expenses) exceeds
4.99%. The Adviser pays all of the operating expenses of the Fund except
brokerage, taxes, interest, fees and expenses on non-interested persons trustees
and extraordinary expenses. For the six months ended November 30, 1999 the
Adviser earned $412,019. The officers of the Adviser are also officers,
directors, and shareholders of the Fund.
The Fund retains Unified Fund Services, Inc., (the "Administrator") to manage
the Fund's business affairs and provide the Fund with administrative services,
including all regulatory reporting and necessary office equipment, personnel and
facilities. The Fund also retains Unified Fund Services, Inc. (the Transfer
Agent) to serve as transfer agent, dividend paying agent and shareholder service
agent. For its services as Administrator, Unified Fund Services, Inc. receives a
monthly fee from the Adviser equal to an annual average rate of 0.08% of the
Fund's average daily net assets, subject to an annual minimum fee of $17,500.
The Fund retains Unified Management Corporation, (the"Distributor") to act as
the principal distributor of the Fund's shares. The services of the
Administrator, Transfer Agent, and Distributor are operating expenses paid by
the Adviser.
Note 4- Securities Transactions
For the six months ended November 30, 1999, purchases and sales proceeds from
investment securities, excluding short-term investments were as follows:
Purchases Sales
The SMT Fund $ 372,423,548 $ 387,852,693
