ROCHDALE
INVESTMENT
TRUST
ANNUAL REPORT
FOR THE PERIOD ENDED
MARCH 31, 1999
<PAGE>
ROCHDALE INVESTMENT TRUST
May 28, 1999
Dear Fellow Shareholder:
We are pleased to report on the investment performance and continuing growth of
the Rochdale Atlas Portfolio ("Atlas") and Rochdale Magna Portfolio ("Magna")
through March 31, 1999.
ROCHDALE ATLAS PORTFOLIO
The Rochdale Atlas Portfolio seeks to provide investors with capital
appreciation over the long term through investment in select countries that
Rochdale has determined to be most likely to outperform relative to foreign
indices. We identify and invest only in the nine top-ranked markets we have
selected out of the 34 largest foreign markets. Within each foreign market, we
select leading companies across industry groups to represent the overall stock
market. The portfolio is constructed using an active country and optimized stock
approach to invest in companies outside the United States in countries selected
by Rochdale's quantitative fundamental factor methodology. Exposure is typically
to both developed and emerging markets across several world regions.
We believe that the best opportunity for outperformance when investing
internationally is through investment in the select countries that are most
attractively valued with a positive economic outlook relative to overall world
markets. We seek to avoid foreign markets that we consider to be overpriced or
are experiencing a negative economic outlook. The focus on country selection is
well supported historically and is the key determinant for earning returns when
investing internationally.
From the start of investment operations of the Rochdale Atlas Portfolio on
October 2, 1998, the Fund generated a total return of 22.08% through March 31,
1999. During the first quarter of 1999, Atlas declined 1.55%. The starting Net
Asset Value ("NAV") of the Fund was $25.00. At the end of March, the NAV was
$30.52. The performance of Atlas was quite favorable as four of the nine
countries in which we invested appreciated significantly. The best performing
countries we selected during 1998 were the Philippines, Finland, Belgium, and
Ireland, which all appreciated in excess of 30%.
During 1999 we rebalanced the portfolio in accordance with the methodology we
employ that ranks all countries in our universe. For 1999 we have selected nine
countries in which we will focus our company investments. In 1999 we made quite
important changes in the countries. We shifted away from several of the European
countries and selected more Asian countries. This shift came at a time when many
investors were still shying away from that region of the world. The new
countries selected for 1999 were Singapore, South Korea, Chile, and Austria. As
we view the new countries selected, it appears to have been a positive change,
given that many of the Southeast Asian economies like South Korea and Singapore
have begun to emerge from a period of economic turmoil. Many economists have
identified these countries as being the leaders in the next few years in terms
of growing their economy. We believe the new countries we identified for 1999
are early and aggressive choices, yet they possess the characteristics we seek.
They are attractively valued, exhibit early signs of economic growth, and have
positive sentiment from analysts and economists.
<PAGE>
ROCHDALE INVESTMENT TRUST
The countries in which we are invested in 1999 are:
* Austria * India * Philippines
* Belgium * Ireland * South Korea
* Chile * Norway * Singapore
The leading companies in which Atlas was invested as of 3/31/99 were:
COMPANY WEIGHT COUNTRY
Norsk Hydro ASA (NOK20) 5.3% Norway
Erste Bank Der Ost 3.8% Austria
Allied Irish Banks 3.8% Ireland
SM Prime Holdings Inc. 3.4% Philippines
Fortis (NPV) 3.2% Belgium
The major global industries in which Atlas was invested as of 3/31/99 were:
INDUSTRY ATLAS PORTFOLIO DOW JONES WORLD INDEX ex US
Banks 22.3% 16.0%
Energy 12.7% 6.3%
Telecommunications 8.3% 10.6%
Utilities 7.1% 4.8%
Real Estate 6.4% 1.5%
The best performing companies we held during the first quarter of 1999 were:
COMPANY COUNTRY INDUSTRY
Ranbaxy Laboratories India Health Care
City Developments Singapore Real Estate
Quinenco SA Chile Multi-Industry
ITC Ltd. India Beverages
Norsk Hydro ASA Norway Energy
ROCHDALE MAGNA PORTFOLIO
The Rochdale Magna Portfolio seeks to provide investors with long-term capital
appreciation in excess of the S&P 500 through investment in a disciplined and
consistent manner using our proprietary quantitative fundamental methodology. We
invest in approximately 50 companies out of the S&P 500 universe which possess
the most favorable fundamental characteristics of earnings growth, cash flows,
and valuation. We select companies so that the portfolio is adequately
diversified across major industries as well as by growth and value
characteristics.
Since the start of investment operations on October 23, 1998 through March 31,
1999, the Rochdale Magna Portfolio provided shareholders with a total return of
17.12%. From January 1, 1999 through March 31, 1999,
2
<PAGE>
ROCHDALE INVESTMENT TRUST
Magna generated a total return of 4.80%, comparing favorably to the
highly-concentrated S&P 500 total return of 4.99% for the same period. This
positive performance was attributable to the appreciation of the overall market
as well as the selection of high-quality, well-performing companies in several
industries.
As of March 31, 1999, the five largest holdings were:
COMPANY WEIGHT
Cisco Systems 3.2%
Chase Manhattan 3.2%
MCI Worldcom 3.1%
E M C Corp. 3.0%
Schering-Plough 2.8%
At the end of the quarter, the top five industry groups were:
INDUSTRY WEIGHT
Technology 19.5%
Health Care 12.3%
Financial Services 10.8%
Business Services 9.9%
Capital Goods 7.9%
We are pleased with the performance of Magna, as it has performed well in
relationship to the overall appreciation of the market. We are well positioned
in several industries, those that we believe possess steady growth as well as
those more cyclical in nature. Through this diversification strategy, Magna will
continue its strategy to seek to earn a favorable return relative to the larger
company stock universe.
Although initial performance is no guarantee of future returns, we at Rochdale
are proud of the early success of the Rochdale Investment Trust. Thank you for
your investment. We look forward to continuing to help you reach your investment
goals.
Sincerely,
Carl Acebes
Garrett R. D'Alessandro
Portfolio Managers
3
<PAGE>
ROCHDALE INVESTMENT TRUST
ROCHDALE ATLAS PORTFOLIO vs. DOW JONES WORLD INDEX EX US
Value of $25,000 Investment
Rochdale Atlas Portfolio Dow Jones World Index Ex US
------------------------ ---------------------------
1-Oct-98 25,000.00 25,000.00
31-Oct-98 29,120.00 28,663.25
30-Nov-98 29,670.00 30,085.94
31-Dec-98 31,000.00 30,968.80
31-Jan-99 29,720.00 31,154.76
28-Feb-99 28,850.00 30,288.15
31-Mar-99 30,520.00 31,705.42
Total Return for the
Period Ended March 31, 1999
Since Commencement of Investment Operations (10/2/98) 22.08%
Past performance is not predictive of future performance.
ROCHDALE MAGNA PORTFOLIO vs. S & P 500 INDEX
Value of $25,000 Investment
Rochdale Magna Portfolio S & P 500
------------------------ ---------
22-Oct-98 25,000.00 25,000.00
31-Oct-98 25,510.00 25,477.09
30-Nov-98 26,340.00 27,022.34
31-Dec-98 27,940.00 28,577.78
31-Jan-99 29,080.00 29,772.80
28-Feb-99 28,170.00 28,847.48
31-Mar-99 29,280.00 30,002.56
Total Return for the
Period Ended March 31, 1999
Since Commencement of Investment Operations (10/23/98) 17.12%
Past performance is not predictive of future performance.
4
<PAGE>
ROCHDALE ATLAS PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 100.11% Market Value
- --------------------------------------------------------------------------------
AUSTRIA - 10.91%
BANKS - 6.52%
4,571 Bank Austria AG......................................... $ 272,326
7,625 Erste Bank Der Ost...................................... 387,493
-----------
659,819
-----------
BUILDING MATERIALS - 2.14%
1,233 Wienerberger Baust...................................... 216,775
-----------
ENERGY - 2.25%
2,579 OMV AG.................................................. 228,382
-----------
TOTAL FOR AUSTRIA....................................... 1,104,976
-----------
BELGIUM - 14.80%
BANKS - 2.11%
3,197 KBC Bankverzekerin NFV.................................. 213,455
-----------
ELECTRONICS - 1.47%
879 Barco NV................................................ 148,740
-----------
ENERGY - 2.22%
402 Petrofina SA............................................ 220,374
80 Petrofina ADR........................................... 4,379
-----------
224,753
-----------
FINANCIAL SERVICES - 7.58%
2,504 Almanij (Algem Maa)..................................... 173,818
8,626 Fortis B................................................ 318,978
1,501 Gpe Bruxelles Lam....................................... 274,279
-----------
767,075
-----------
MERCHANDISE - 1.42%
1,555 Delhaize Le Lion........................................ 144,259
-----------
TOTAL FOR BELGIUM....................................... 1,498,282
-----------
CHILE - 10.82%
BANKS - 1.24%
8,363 Banco Santander Chile ADR............................... 125,445
-----------
MERCHANDISE - 1.54%
12,693 Distribucion Y Servicio D & S ADR....................... 156,282
-----------
MULTI-INDUSTRY - 1.60%
16,290 Quinenco SA ADR......................................... 161,882
-----------
5
<PAGE>
ROCHDALE ATLAS PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - 2.36%
10,163 Compania CIA De Telecom De Chile ADR.................... $ 239,466
-----------
UTILITIES - 4.08%
8,872 Chilectra SA ADR........................................ 191,807
8,242 Enersis SA ADR.......................................... 220,989
-----------
412,796
-----------
TOTAL FOR CHILE......................................... 1,095,871
-----------
INDIA - 10.73%
BEVERAGES - 2.76%
10,301 ITC Ltd. GDR............................................ 279,157
-----------
CHEMICALS - 2.48%
19,411 Reliance Industries Ltd. ............................... 121,319
21,145 Reliance Industries Ltd. GDR............................ 129,970
-----------
251,289
-----------
HEALTH CARE - 1.95%
11,924 Ranbaxy Laboratories Ltd. GDR........................... 197,342
-----------
MOTOR VEHICLES - 1.69%
10,189 Bajaj Auto Ltd. GDR..................................... 171,175
-----------
TELECOMMUNICATIONS - 1.85%
17,601 Mahanagar Telephone NI GDR.............................. 187,011
-----------
TOTAL FOR INDIA......................................... 1,085,974
-----------
IRELAND - 12.41%
BANKS - 6.61%
3,674 Allied Irish Banks PLC ................................. 380,259
13,896 Bank of Ireland ........................................ 288,964
-----------
669,223
-----------
BUILDING MATERIALS - 2.34%
13,812 CRH .................................................... 237,266
-----------
HEALTH CARE - 2.77%
1,890 Elan Corp............................................... 131,210
2,144 Elan PLC ADR............................................ 149,544
-----------
280,754
-----------
TRANSPORTATION - AIR - 0.69%
1,701 Ryanair Holdings PLC.................................... 69,316
-----------
TOTAL FOR IRELAND....................................... 1,256,559
-----------
6
<PAGE>
ROCHDALE ATLAS PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
REPUBLIC OF KOREA - 12.27%
AUTOMOBILES - 1.88%
69,086 Hyundai Motor Co. GDR................................... $ 189,986
-----------
CHEMICALS - 2.30%
16,584 LG Chemical Ltd. GDR.................................... 216,007
3,621 LG Chemical Rights...................................... 16,765
-----------
232,772
-----------
ELECTRONIC APPLIANCES - 3.17%
20,066 Samsung Electronics Ltd. GDR............................ 321,056
-----------
TELECOMMUNICATIONS - 1.81%
15,040 SK Telecommunications Ltd............................... 183,300
-----------
UTILITIES - 3.11%
24,834 Korea Electric Power Corp. ADR.......................... 315,081
-----------
TOTAL FOR REPUBLIC OF KOREA............................. 1,242,195
-----------
NORWAY - 9.60%
BANKS - 1.55%
42,897 Den Norske Bank......................................... 157,191
-----------
ENERGY - 6.41%
13,329 Norsk Hydro AS ADR...................................... 538,158
7,228 Petroleum Geological Services AS ADR.................... 110,227
-----------
648,385
-----------
FINANCIAL SERVICES - 1.61%
22,130 Storebrand ASA ......................................... 163,332
-----------
TRANSPORTATION - SEA - 0.03%
222 Leif Hoegh & Co........................................ 2,530
-----------
TOTAL FOR NORWAY....................................... 971,438
-----------
PHILIPPINES - 8.39%
ENERGY - 1.79%
1,612,882 Petron Corp............................................ 181,059
-----------
MULTI-INDUSTRY - 0.96%
319,348 Ayala Corp............................................. 96,835
-----------
REAL ESTATE - 3.39%
1,662,204 SM Prime Holdings Inc.................................. 343,165
-----------
7
<PAGE>
ROCHDALE ATLAS PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - 2.25%
8,810 Philippine Long Distance Telephone Co. ADR............. $ 227,959
-----------
TOTAL FOR PHILIPPINES.................................. 849,018
-----------
SINGAPORE - 10.18%
BANKS - 4.34%
33,000 Overseas Chinese Bank.................................. 223,632
34,442 United Overseas Bank................................... 215,449
-----------
439,081
-----------
BROADCASTING AND PUBLISHING - 1.15%
10,500 Singapore Press HD..................................... 116,160
-----------
ELECTRONICS - 1.64%
3,000 Creative Technologies.................................. 34,926
48,000 Natsteel Electronics................................... 131,225
-----------
166,151
-----------
REAL ESTATE - 3.05%
9,000 City Developments Ltd. ADR............................. 46,862
50,362 City Developments...................................... 262,530
-----------
309,392
-----------
TOTAL FOR SINGAPORE.................................... 1,030,784
-----------
Total Common Stocks (cost $10,008,009)................. 10,135,097
-----------
Principal
Amount SHORT-TERM INVESTMENTS - 6.48%
- --------------------------------------------------------------------------------
$656,065 SSGA Funds - U.S. Government Money Market Fund,
Class A (cost $656,065)................................ 656,065
-----------
Total Investment in Securities (cost
$10,664,074*): 106.59%............................... 10,791,162
Liabilities in excess of Other Assets: (6.59%)......... (667,163)
-----------
TOTAL NET ASSETS: 100% ................................ $10,123,999
===========
* At March 31, 1999, the cost for Federal income tax purposes was the same as
the basis for financial reporting. Unrealized appreciation and depreciation of
securities were as follows:
Gross unrealized appreciation................................ $ 531,823
Gross unrealized depreciation................................ (404,735)
-----------
Net unrealized appreciation................................ $ 127,088
===========
See accompanying Notes to Financial Statements.
8
<PAGE>
ROCHDALE MAGNA PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Shares COMMON STOCKS - 100.21% Market Value
- --------------------------------------------------------------------------------
APPAREL - 1.86%
3,191 VF Corp................................................ $ 150,575
-----------
AUTOMOTIVE - 2.73%
3,897 Ford Motor Co. Del..................................... 221,155
-----------
BANKS - 4.91%
3,192 Chase Manhattan Corp. New.............................. 259,549
3,683 Fleet Financial Group Inc.............................. 138,573
-----------
398,122
-----------
BASIC MATERIALS - 3.87%
5,323 Mead Corp.............................................. 163,682
3,054 Sealed Air Corp. New *................................. 150,219
-----------
313,901
-----------
BUSINESS SERVICES - 9.90%
4,701 Browning Ferris Industries Inc......................... 181,282
2,464 Computer Sciences Corp.*............................... 135,982
4,767 De Luxe Corp........................................... 138,839
2,086 Interpublic Group Cos., Inc............................ 162,447
3,878 Paychex Inc............................................ 183,963
-----------
802,513
-----------
CAPITAL GOODS - 7.87%
2,240 Honeywell Inc.......................................... 169,820
4,009 ITT Industries Inc..................................... 141,818
2,550 Johnson Controls Inc................................... 159,056
1,238 United Technologies Inc................................ 167,672
-----------
638,366
-----------
ENERGY - 4.75%
2,900 Exxon Corp............................................. 204,631
5,014 Sunoco Inc............................................. 180,817
-----------
385,448
-----------
FINANCIAL SERVICES - 10.79%
2,032 Aetna Inc.............................................. 168,656
3,969 Countrywide Credit Industries Inc...................... 148,838
2,882 Hartford Financial Services Group...................... 163,734
2,090 Morgan Stanley Dean Witter ......................... 208,869
1,684 Providian Financial Corp............................... 185,240
-----------
875,337
-----------
FOOD AND BEVERAGE - 2.17%
2,816 Quaker Oats Co......................................... 176,176
-----------
9
<PAGE>
ROCHDALE MAGNA PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
HEALTH CARE - 12.26%
4,703 Becton Dickinson & Co.................................. $ 180,184
2,902 Pharmacia & Upjohn Inc................................. 181,012
4,113 Schering-Plough Corp................................... 227,500
2,511 Tyco International Ltd New............................. 180,164
3,400 Warner-Lambert Co...................................... 225,037
-----------
993,897
-----------
MEDIA - 2.24%
2,166 Viacom Inc. - Class B*................................. 181,809
-----------
PERSONAL AND HOUSEHOLD PRODUCTS - 2.07%
3,560 Avon Products Inc...................................... 167,542
-----------
PUBLISHING - 1.98%
6,336 American Greetings Corp................................ 160,776
-----------
RETAIL - 5.73%
3,967 Federated Department Stores Inc.*...................... 159,176
2,760 Lowes Companies Inc.................................... 166,980
6,732 Supervalu Inc.......................................... 138,848
-----------
465,004
-----------
TECHNOLOGY - 19.53%
4,227 BMC Software Inc.*..................................... 156,663
2,380 Cisco Systems Inc...................................... 260,759
4,785 Dell Computer Corp.*................................... 195,587
1,894 E M C Corp.*........................................... 241,959
2,209 Gateway 2000 Inc.*..................................... 151,455
1,874 Lucent Technologies Inc................................ 201,924
2,006 Texas Instruments Inc.................................. 199,095
6,373 Unisys Corp.*.......................................... 176,452
-----------
1,583,894
-----------
TELECOMMUNICATIONS - 5.67%
4,015 Frontier Corp.......................................... 208,278
2,844 MCI Worldcom Inc.*..................................... 251,872
-----------
460,150
-----------
TRANSPORTATION - 1.88%
5,047 Southwest Airlines Co.................................. 152,672
-----------
Total Common Stocks (cost $7,820,838).................. 8,127,337
-----------
10
<PAGE>
ROCHDALE MAGNA PORTFOLIO
SCHEDULE OF INVESTMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Principal
Amount SHORT-TERM INVESTMENTS - 1.05% Market Value
- --------------------------------------------------------------------------------
$85,286 SSGA Funds - U.S. Government Money Market
Fund, Class A (cost $85,286)........................... $ 85,286
-----------
Total Investment in Securities (cost $7,906,124+):
101.26%.............................................. 8,212,623
Liabilities in excess of Other Assets: (1.26%)......... (102,145)
-----------
Total Net Assets: 100%................................. $ 8,110,478
===========
* Non income-producing security.
+ At March 31, 1999, the cost for Federal income tax purposes was the same as
the basis for financial reporting. Unrealized appreciation and depreciation of
securities were as follows:
Gross unrealized appreciation................................ $ 552,708
Gross unrealized depreciation................................ (246,209)
-----------
Net unrealized appreciation................................ $ 306,499
===========
See accompanying Notes to Financial Statements.
11
<PAGE>
ROCHDALE INVESTMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES AT MARCH 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ATLAS MAGNA
PORTFOLIO PORTFOLIO
--------- ---------
<S> <C> <C>
ASSETS
Investments in securities, at value (cost $10,664,074 and
$7,906,124, respectively) ............................ $10,791,162 $8,212,623
Receivables:
Forward currency contracts - net .................... 2,481 --
Dividends ........................................... 10,155 3,724
Deferred organization costs ............................. 26,615 26,615
Prepaid registration .................................... 5,457 4,691
----------- ----------
Total assets ........................................ 10,835,870 8,247,653
----------- ----------
LIABILITIES
Payables:
Due to Advisor ...................................... 18,295 30,529
Securities purchased ................................ 649,978 81,630
Accrued expenses ........................................ 43,598 25,016
----------- ----------
Total liabilities ................................... 711,871 137,175
----------- ----------
NET ASSETS ................................................... $10,123,999 $8,110,478
=========== ==========
NET ASSET VALUE, OFFERING AND REDEMPTION* PRICE PER SHARE $ 30.52 $ 29.28
=========== ==========
Number of shares, $0.01 par value, issued and outstanding
(unlimited shares authorized) ....................... 331,719 276,992
=========== ==========
COMPOSITION OF NET ASSETS
Paid-in capital ......................................... $ 9,956,015 $7,737,568
Undistributed net realized gain ......................... 37,348 66,411
Net unrealized appreciation ............................. 130,636 306,499
----------- ----------
Net assets .......................................... $10,123,999 $8,110,478
=========== ==========
</TABLE>
*Shareholders holding shares for less than eighteen months will be subject to a
2.00% redemption fee.
See accompanying Notes to Financial Statements.
12
<PAGE>
ROCHDALE INVESTMENT TRUST
STATEMENT OF OPERATIONS
FOR THE PERIOD JUNE 29, 1998* THROUGH MARCH 31, 1999
- --------------------------------------------------------------------------------
ATLAS MAGNA
PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends (net of foreign taxes of $3,138 and
$0, respectively) .............................. $ 18,827 $ 17,533
Interest ......................................... 5,876 3,122
--------- ---------
Total income ................................. 24,703 20,655
--------- ---------
Expenses
Advisory fees .................................... 16,156 15,295
Administration fee ............................... 30,247 30,247
Custody fees ..................................... 34,367 12,522
Fund accounting fees ............................. 8,765 4,373
Audit fee ........................................ 8,673 7,840
Registration fees ................................ 5,073 4,539
Transfer agent fees .............................. 4,801 4,758
Deferred organization costs ...................... 4,742 4,742
Distribution costs ............................... 4,040 3,942
Trustee fees ..................................... 2,800 2,800
Legal fees ....................................... 3,981 4,212
Miscellaneous .................................... 1,603 1,553
Insurance ........................................ 505 506
Reports to shareholders .......................... 282 279
--------- ---------
Total expenses ................................. 126,035 97,608
Less: expenses waived and reimbursed ........... (99,964) (72,384)
--------- ---------
Net expenses ................................... 26,071 25,224
--------- ---------
NET INVESTMENT LOSS .......................... (1,368) (4,569)
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss):
Security transactions ............................ 47,755 70,980
Foreign currency transactions .................... (9,039) --
--------- ---------
Net realized gain .............................. 38,716 70,980
--------- ---------
Net change in unrealized appreciation on:
Investments ...................................... 127,088 306,499
Foreign currency transactions .................... 3,548 --
--------- ---------
Net unrealized appreciation .................... 130,636 306,499
--------- ---------
Net realized and unrealized gain ............. 169,352 377,479
--------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... $ 167,984 $ 372,910
========= =========
*Inception of Portfolios.
See accompanying Notes to Financial Statements.
13
<PAGE>
ROCHDALE INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JUNE 29, 1998* THROUGH MARCH 31, 1999
- --------------------------------------------------------------------------------
ATLAS MAGNA
PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment loss .......................... $ (1,368) $ (4,569)
Net realized gain ............................ 38,716 70,980
Net change in unrealized appreciation ........ 130,636 306,499
------------ -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... 167,984 372,910
------------ -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold .................... 9,968,316 7,685,818
Shares issued on reinvestment of distributions -- --
Cost of shares redeemed ...................... (67,051) --
------------ -----------
NET INCREASE FROM FUND SHARE TRANSACTIONS . 9,901,265 7,685,818
------------ -----------
TOTAL INCREASE IN NET ASSETS .............. 10,069,249 8,058,728
------------ -----------
NET ASSETS
Beginning of period .......................... 54,750 51,750
------------ -----------
END OF PERIOD ................................ $ 10,123,999 $ 8,110,478
============ ===========
CHANGE IN SHARES
Shares sold ..................................... 331,730 274,922
Shares issued on reinvestment of distributions .. -- --
Shares redeemed ................................. (2,201) --
------------ -----------
Net increase .................................... 329,529 274,922
============ ===========
*Inception of Portfolios.
See accompanying Notes to Financial Statements.
14
<PAGE>
ROCHDALE INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
ATLAS MAGNA
PORTFOLIO PORTFOLIO
June 29, 1998* through March 31, 1999
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.................. $25.00 $25.00
------ ------
Income from investment operations:
Net investment loss ............................... -- (0.02)
Net realized and unrealized gain................... 5.52 4.30
------ ------
Total from investment operations...................... 5.52 4.28
------ ------
Net asset value, end of period........................ $30.52 $29.28
====== ======
Total return ......................................... 22.08%** 17.12%***
Ratios/supplemental data:
Net assets, end of period (millions)................ $ 10.1 $ 8.1
Portfolio turnover rate .............................. 22.90% 47.81%
Average commission rate paid per share................ $.0073 $.0314
Ratio of expenses to average net assets:
Before expense reimbursement and waivers.......... 7.79%+ 6.19%+
After expense reimbursement and waivers............ 1.61%+ 1.60%+
Ratio of net investment loss to average net assets:
Before expense reimbursement and waivers........... (6.26%)+ (4.88%)+
After expense reimbursement and waivers............ (0.08%)+ (0.29%)+
</TABLE>
*Inception of Portfolios.
**Commencement of investment operations, October 2, 1998.
***Commencement of investment operations, October 23, 1998.
+Annualized.
See accompanying Notes to Financial Statements.
15
<PAGE>
ROCHDALE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
Rochdale Atlas Portfolio and Rochdale Magna Portfolio (the "Portfolios")
are diversified series of shares of beneficial interest of Rochdale Investment
Trust (the "Trust"), which is registered under the Investment Company Act of
1940 (the "1940 Act") as an open-end management investment company. The
investment objective of the Trust is to achieve long-term capital appreciation.
The Portfolios were established in June, 1998. Initial outside investors
purchased shares of the Portfolios on June 29, 1998. However, investment
operations of the Portfolios did not commence until October 2, 1998 and October
23, 1998 for the Rochdale Atlas Portfolio and the Rochdale Magna Portfolio,
respectively.
The Rochdale Atlas Portfolio is a foreign equity fund. It seeks to achieve
its objective by investing primarily in equity securities of select foreign
developed and emerging countries that Rochdale Investment Management, Inc.
("Rochdale" or the "Advisor") has identified as attractive relative to other
countries based on fundamental valuation, financial, and economic attributes.
The Rochdale Magna Portfolio is a large-cap domestic equity fund. It seeks
to achieve its objective by investing primarily in securities of companies that
Rochdale has identified through fundamental criteria as the leading growth and
leading value companies relative to growth and value industry peers.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios. These policies are in conformity with generally
accepted accounting principles.
A. SECURITY VALUATION. In valuing the Portfolios' assets for calculating
net asset value, readily marketable portfolio securities listed on a
national securities exchange or NASDAQ are valued at the last sale
price on the business day as of which such values is being determined.
If there has been no sale on such exchange or on NASDAQ on such day,
the security is valued at the closing bid price on such day. Readily
marketable securities traded only in an over-the-counter market and
not on NASDAQ are valued at the current or last bid price. If no bid
is quoted on such day, the security is valued by such method as the
Board of Trustees of the Trust shall determine in good faith to
reflect the security's fair value. All other assets of the Portfolios
are valued in such manner as the Board of Trustees in good faith deems
appropriate to reflect their fair value.
B. FEDERAL INCOME TAXES. The Portfolios intend to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of their taxable income to
their shareholders. Therefore, no federal income tax provision is
required.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Security transactions are
accounted for on the date the security is purchased or sold (trade
date). The cost of securities sold is determined under the identified
cost method. Dividend income is recognized on the ex-dividend date,
and interest income is recognized on the accrual basis. Purchase
discounts and premiums on securities held by the Portfolios are
accreted and amortized to maturity using the effective interest
method.
D. DEFERRED ORGANIZATION COSTS. All of the expenses incurred by the
Advisor in connection with the organization and registration of the
Portfolios' shares will be borne by the Portfolios and are being
amortized to expense on a straight-line basis over a period of five
years.
E. FOREIGN CURRENCY. Values of investments denominated in foreign
currencies are converted into U.S. dollars using the spot market rate
of exchange at the time of valuation. Purchases and sales of
investments and dividend and interest income are translated into U.S.
dollars using the spot market rate of exchange prevailing
16
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ROCHDALE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
on the respective dates of such translations. The gain or loss
resulting from changes in foreign exchange rates is included with net
realized and unrealized gain or loss from investments, as appropriate.
Foreign securities and currency transactions may involve certain
considerations and risks not typically associated with those of
domestic origin.
F. FORWARD CURRENCY CONTRACTS. A forward currency contract is an
agreement between two parties to buy or sell a currency at a set price
on a future date. Forward contracts are marked to market daily and the
change in market value is recorded by the Portfolio as an unrealized
gain or loss. When a contract is closed, the Portfolio records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was
closed. The Portfolio could be at risk if the counterparties are
unable to meet the terms of the contracts or if the value of the
currency changes unfavorably.
G. DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment
income and realized gains, if any, are recorded on the ex-dividend
date. Income distributions and capital gain distributions are
determined in accordance with income tax regulations, which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for foreign currency
transactions, net operating losses, equalization and post-October
capital and currency losses.
H. 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 at the date of the financial
statements. Actual results could differ from those estimates.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
Rochdale Investment Management, Inc. (the "Advisor") provides the
Portfolios with investment management services under an Investment Advisory
Agreement. The Advisor furnishes all investment advice, office space,
facilities, and most of the personnel needed by the Trust. As compensation for
its services, the Advisor is entitled to a monthly fee at the annual rate of
1.00% from each Portfolio based upon the average daily net assets of each
Portfolio.
The Portfolios are responsible for their own operating expenses. The
Advisor has agreed to reduce fees payable to it by the Portfolios to the extent
necessary to limit each Portfolio's aggregate annual operating expenses to a
maximum of 2.50% and 2.75% of average net assets for the Rochdale Magna and
Rochdale Atlas Portfolios, respectively. Any such reductions made by the Advisor
in its fees or payments or reimbursement of expenses which are the Portfolios'
obligation may be subject to reimbursement by the Portfolios within the
following three years, provided the Portfolios are able to effect such
reimbursement and remain in compliance with applicable limitations. For the
period ended March 31, 1999, the Advisor has waived its fees and has reimbursed
the Portfolios for expenses in the amounts of $82,348 for the Rochdale Atlas
Portfolio and $52,995 for the Rochdale Magna Portfolio, respectively, making the
Portfolios' expense ratios 1.61% and 1.60% versus actual operating expenses of
7.79% and 6.19%.
Investment Company Administration, LLC (the "Administrator") acts as the
Trust's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Portfolios; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Portfolios' custodian, transfer agent and
accountants; coordinates the preparation and payment of Fund expenses and
reviews the Portfolios' expense accruals. For its services, the Administrator
receives a monthly fee from each Portfolio at a rate of .10% annually of average
net assets, with a minimum annual fee per Portfolio of $40,000. The
Administrator has voluntarily waived fees of $10,776 and $12,647 for the
Rochdale Atlas Portfolio and the Rochdale Magna Portfolio, respectively, for the
period ended March 31, 1999.
Rochdale Investment Management, Inc., the Advisor, also acts as the
Portfolios' principal underwriter in a continuous public offering of the
Portfolios' shares.
17
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ROCHDALE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 1999, Continued
- --------------------------------------------------------------------------------
Rochdale Securities Corporation received brokerage commissions from the
Rochdale Magna Portfolio for the period ended March 31, 1999 of $1,112.
Certain officers and trustees of the Trust are also officers and/or
directors of the Advisor or Administrator. The independent trustees of the Trust
elected to waive their fees for the period ended March 31, 1999 in the amount of
$2,800 for each of the Rochdale Atlas and Rochdale Magna Portfolios.
NOTE 4 - DISTRIBUTION PLAN
The Portfolios have adopted a Distribution Plan (the "Plan") pursuant to
Rule 12b-1. The Plan provides that the Portfolios may pay for distribution and
related expenses of up to an annual rate of 0.25% of each Portfolio's average
net assets to Rochdale as distributor. Rochdale elected to waive its fees for
the period ended March 31, 1999 in the amounts of $4,040 and $3,942 for the
Rochdale Atlas Portfolio and Rochdale Magna Portfolio, respectively.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
For the period ended March 31, 1999, the cost of purchases and the proceeds
from sales of securities, other than short-term investments, were $10,917,876
and $956,955, and $9,578,084 and $1,828,228, respectively, for the Rochdale
Atlas Portfolio and for the Rochdale Magna Portfolio, respectively.
18
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ROCHDALE INVESTMENT TRUST
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
Rochdale Investment Trust
New York, New York
We have audited the accompanying statement of assets and liabilities of
Rochdale Atlas Portfolio and Rochdale Magna Portfolio, (each a series of shares
of beneficial interest of Rochdale Investment Trust) including the portfolios of
investments, as of March 31, 1999, and the related statements of operations, the
statements of changes in net assets and the financial highlights for the period
June 29, 1998 to March 31, 1999. These financial statements 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 generally accepted auditing
standards. Those standards require that we plan and perform the audits 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. Our procedures included confirmation of securities owned as of March
31, 1999, by correspondence with the custodian and brokers. 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
Rochdale Atlas Portfolio and Rochdale Magna Portfolio as of March 31, 1999, the
results of their operations, the changes in their net assets and the financial
highlights for the period June 29, 1998 to March 31, 1999, in conformity with
generally accepted accounting principles.
Tait Weller & Baker
Philadelphia, Pennsylvania
May 19, 1999
19
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ADVISOR
Rochdale Investment Management, Inc.
570 Lexington Avenue
New York, New York 10022-6837
(212) 702-3500
--
DISTRIBUTOR
Rochdale Investment Management, Inc.
570 Lexington Avenue
New York, New York 10022-6837
(212) 702-3500
--
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust
1776 Heritage Drive
North Quincy, Massachusetts 02171
--
AUDITORS
Tait, Weller & Baker
8 Penn Center, Suite 800
Philadelphia, Pennsylvania 19103
--
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, California 94104
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Statements and other information herein are dated and are subject to change.
