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Previous: DUNHILL INVESTMENT TRUST, 497J, 2000-06-02 |
Next: MORTGAGE LOAN ASSET BACKED PASS THROUGH CERT TRUST 1996-D, 8-K, 2000-06-02 |
UPRIGHT
INVESTMENTS TRUST
UPRIGHT GROWTH FUND
March 31, 2000
Semiannual Report
<PAGE>
Dear Shareholder:
We are pleased to present you the Semi Annual report of the Upright Growth Fund,
for the period of October 1, 1999 to March 31, 2000. Over this period, the Fund
produced a total return of 30.36%. This is compared to17.59 % for the S & P 500
(large companies), and 26.16 for the Russell 2000 (smaller companies). We are
glad to tell you that the Fund beating the above two benchmark with a plenty
cash on hand, that is mean we reduce portfolio volatile by holding a lot of cash
and mean time we did better performance than benchmark.
Market Review
The performance divergence between technology, biotechnology (so-called new
economy) and the stocks of more traditional, more stable grower (so-called old
economic) was widening during the past year. The narrower, technology focused
NASDAQ Composite Index returned was much higher then the S & P 500 Index -- a
large-capitalization index of 500 widely held stocks. The shinning and stung
performance of high-tech area not only attracts the investors but also
speculator and momentum player. When the " new economic," dot.com" and
"e-commerce" rolled off all investor's tongues, their money keep rolling into
that area. We found the well know and top performed mutual fund of value style
was under extremely redeem pressure, some fund even were redeemed 50% of its
assets, this is historical record in terms of the performance divergence and
money rollover. The redeemed money keeping rolled into technology stocks and
fund, this will create volatile and opportunity. When internet is getting
popular and information is so easily to obtain, the crowd will move
simeateualious and that will create the volatile, however, it also provide the
opportunity for some quality stocks which under perform and investor keep
selling them due to lost patience and chasing the technology stock. Some growth
companies during this period were actually hit quite hard. Those of out of favor
sectors and growth companies will provide us a great buying opportunity in the
future.
Investment Strategy
As of March 31, 2000, the Fund has 20% cash on hand. It is able to provide the
investment fund for us to commit to some greater growth companies that we have
been waiting for some time such medical industrial including drug and medical
equipment supply. Our investment strategies are as follows:
(1) Invest our cash in the medical sector that has been corrected since 1999.
We are optimistic about the medical sector for the following reasons:
(a) The earnings growth in medical stocks is pretty stable and could
generate strong relative return when other sectors face valuation
correction, rotation or growth slow.
(b) More importantly, some drug stocks had a quite certain percentage
correction from its peak, and the valuation become more reasonable
compare its historically, also more favorable compare to some so-called
new economic stocks. Such as Johnson and Johnson, have been down 33%,
from its peak $105 to recently $71, we took this opportunity that added
this quality company into our portfolio.
<PAGE>
(2) Selling some potation of high flyer technology stocks that reached
reasonable price recently and looking for next potential candidate, that
not only can lock in profit if technology stocks have rotation or
correction but also less volatile because the proceeds will go into some
undervalue sector or company or become cash to wait another purchase
opportunity.
(3) Increase some quality of the so-called old economic stocks. Although we
believe that the technology boom is in its early stages due to explosive
growth in computer networking, Internet, e-commerce, and telecommunication.
However, with tech stocks up so much already and valuations at all-time
highs. Also, no mater the company of new economic or old economic, earning
and value are still the key and eventually will reflect on the stock price.
Fashion is good for temporary.
Portfolio Review
Over the last six months, the Fund sold AVX Corp. that provide the 227% return,
also sold potation of and Network Solutions and Citrix Systems Inc that provide
350% and 400% respectively with a year. However, some semiconductor company such
as Intel and Micron Technology although appreciation more than 100% during past
year, but we still believe they still have room to grow because the cyclical
recovery in this industry. The similar situation also including Network
Appliance; R F Micro Device; S D L Inc ;Calpine Corp. those company still
deliver highly growth, we willing give them more time to grow During this
period, the worst performers in the fund are Armstrong World Industrial Inc;
Philip Morris; Lockheed Martin Corp.; Mattel; Compaq Computer; Nu Skin
Enterprises CL A; VISX Inc and Wackenhut Corrections Inc. Nonetheless, we still
have a positive outlook for those companies, especially some company not only
under the oversold stage but also has 9% dividend yield that provide a support
for the stock price. Also the good new is that those companies are very light
weighted on our portfolio, most companies are around 0.2% and the highest is
0.5% of the portfolio. We will use plenty cash to take this oversold opportunity
to purchase more once we feel ready.
We would like to take this opportunity to thank our shareholders for their
confidence and patience with us. We will continue to do our best and seek
rewarding returns on your behalf.
Best regards,
--------------------------------
David Y.S. Chiueh
President, Portfolio Manager
<PAGE>
<TABLE>
Upright Growth Fund
Schedule of Investments
March 31, 2000
<S> <C> <C> <C>
SHARES VALUES
Securities/Common Stocks
AUTO/TRUCK 0.77%
TRW INC * 200 11,700
BANK 7.61%
BANK AMERICA CORP 900 47,194
BANK ONE CORP 800 27,500
CITIGROUP INC 300 17,962
FIRST UNION CORP 600 22,350
--------
115,006
BUILDING 0.24%
ARMSTRONG WORLD IND INC 200 3,575
CABLE 1.99%
UNITEDGLOBALCOM * 400 30,025
CHEMICAL 1.75%
DUPONT 500 26,468
COMPUTER 12.96%
ACCLAIM ENTERTAINMENT INC * 1,000 3,312
ADAPTEC INC * 200 7,725
B M C SOFTWARE INC * 100 4,938
CITRIX SYSTEMS INC * 200 13,250
COMPAQ COMPUTER CORP 100 2,675
INTL BUSINESS MACHS CORP 200 23,650
INTUIT INC * 200 10,875
LUCENT TECHONLOGY 127 7,874
MARCHFIRST * 259 9,243
NETWORK APPLIANCE INC * 400 33,100
NOVELL INC * 200 5,725
SAP AG ADR 300 17,925
3 COM CORP * 1,000 55,625
--------
195,917
CONSUMBER 2.48%
CENDANT CORP * 1,000 18,688
GILLETTE 500 18,844
--------
37,532
See accompanying notes to financial statement
<PAGE>
SHARES VALUES
DEFENSE 0.77%
BOEING CO 200 7,562
LOCKHEED MARTIN CORP 200 4,088
--------
11,650
ELECTRONIC 9.92%
INTEL CORP 200 26,388
MICRON TECHNOLOGY INC * 400 50,400
R F MICRO DEVICES INC * 200 26,875
SDL INC * 200 42,575
VISX, INC DEL * 200 3,650
--------
149,888
ENERGY 2.49%
CALPINE CORP * 400 37,600
FINANCIAL 7.00%
ADVANTA CORP CL A 600 12,188
COUNTRYWIDE CR INDS INC 500 13,625
FIRST DATA CORP 200 8,875
KNIGHT/TRIMARK GROUP INC-CL A * 1,200 61,200
TD WATERHOUSE GROUP INC * 400 10,000
--------
105,888
FOOD 3.51%
CAMPBELL SOUP 700 21,525
KELLOGG * 800 20,600
RALSTON PURINA CORP 400 11,000
--------
53,125
HOUSEHOLD 0.86%
SALTON INC * 300 13,012
INTERNET 10.90%
AMERICAN ONLINE INC * 1,500 101,157
EXCITE AT HOME * 1,000 32,938
NEWARK SOLUTION INC CL A * 200 30,740
--------
164,835
LEISURE 1.19%
CALLAWAY GOLF CO 400 6,200
INTL GAME TECH. 400 8,675
MATTEL INC 300 3,150
--------
18,025
See accompanying notes to financial statement
<PAGE>
SHARES VALUES
MACHINE 1.30%
CATERPILLAR INC. 500 19,719
MEDICAL 10.00%
BARR LABORATORIES INC * 300 12,600
BOSTON SCIENTFIC CORP 1,000 21,313
DURA PHARMACEUTICAL INC 1,000 12,313
I C N PHARMACEUTICAL 400 10,900
JOHNSON AND JOHNSON 400 28,100
MCKESSON HBOC INC 900 18,900
MERCK & XO INC 200 12,425
SHIRE PHARMACEUTICALS GROUP * 521 26,700
WATSON PHARMACEUTICALS INC * 200 7,938
--------
151,189
OIL 0.68%
TRANSOCEAN SEDCO FOREX INC 200 10,262
PROTECTION 0.25%
WACKENHUT CORRECTIONS * 400 3,850
RETAIL 0.74%
ABERCROMBIE & FITCH CL A * 200 3,187
NU SKIN ASIA PACIFIC A * 1,000 7,938
--------
11,125
TELECOMMUNICATION 6.00%
ALCATEL ALSHOM ADR + 300 13,425
AT&T CORP 400 22,525
MOTOROLA INC 115 16,790
NIPPON TEL & TEL CO + 200 15,763
NOKIA CORP + 100 22,200
--------
90,703
TEXTILE 1.58%
NAUTICA ENTERPRISES INC * 800 9,400
TOMMY HILFIGER 1,000 14,500
--------
23,900
TOBACCO 0.41%
PHILIP MORRIS CO INC 300 6,262
TRANSPORTATION 1.46%
CONTINENTAL AIRLINES INC-CL B * 200 8,175
U.S. AIRWAYS GROUP INC * 500 13,906
--------
22,081
UTILITY 2.58%
SOUTHWESTERN 400 16,850
TELEPHONE & DATA SYSTEMS INC 200 22,200
--------
39,050
See accompanying notes to financial statement
<PAGE>
Total Securities/Common Stocks (cost $1,107,679) 89.46% 1,352,387
Cash Equivalents 20.24%
Fifth/Third Bank Money Fund 205,958
due 04/03/00 at 5.65%
Fifth/Third Bank Treasury Obligations Fund 5.49% 50,000
Fifth/Third Bank Prime Money Market Fund 5.49% 50,000
Total Cash Equivalents (cost $305,958) 305,958
Total Securities (cost $1,413,637) 109.70% 1,658,345
Other assets less liabilities (net) -9.70% (146,488)
Net Assets 100.00% $1,511,857
<FN>
* Non-income producing security
+ American Depository Receipt
</FN>
</TABLE>
See accompanying notes to financial statement
<PAGE>
<TABLE>
UPRIGHT GROWTH FUND
Statement of Assets and Liabilities
March 31, 2000 (Unaudited)
<S> <C> <C>
Assets:
Investment in securities, at value ( cost $1,413,637) $1,658,345
Subscriptions Receivable 50,000
Accrued Interest Receivable 457
----------
Total Assets 1,708,802
Liabilities:
Adviser Fee 8,181
Administrative Fee 2,454
Custodian Fee 1,100
Auditors and Legal Fee 3,247
Trustee Fee 549
Blue Sky Fee 978
Insurance Fee 366
Security Purchases Payable 180,070
----------
Total Liabilities 196,945
Net Assets 1,511,857
Net assets consist of:
Paid in capital 1,231,027
Undistributed net investment income (14,039)
Accumulated undistributed net realized gain (loss) 50,161
Net unrealized appreciation(depreciation) 244,708
Net Assets for 115,061 shares outstanding $1,511,857
Net Asset Value and redemption price per share $13.14
Maximum offering price per share, (100/97 of $13.14 ) $13.54
</TABLE>
See accompanying notes to financial statement
<PAGE>
<TABLE>
UPRIGHT GROWTH FUND
Statement of Operations
October 1, 1999 to March 31, 2000 (Unaudited)
<S> <C> <C>
Investment Income
Dividends $2,146
Interest 4,891
------
Total Income 7,037
Expenses
Adviser fees 8,181
Administrative fees 2,454
Custodian fees 1,830
Auditors and Legal fees 6,718
Trustee fees 549
Blue Sky fees 978
Insurance fees 366
Total expenses 21,076
Net investment income (Loss) (14,039)
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities 50,298
Change in net unrealized appreciation (depreciation) on Investment securities 242,477
Net gain (loss) 292,775
Net increase (decrease) in net assets resulting from operation $278,736
</TABLE>
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
UPRIGHT GROWTH FUND
Statement of Changes in Net Assets
For the Periods Ended March 31, 2000 and September 30, 1999
(Unaudited)
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income ($14,039) $1,772
Net realized gain (loss) on investments 50,298 (137)
Change in net unrealized appreciation (depreciation) 242,477 2,231
--------- ------
Net increase (decrease) in net assets from operations 278,736 3,866
Distributions to shareholders
From net investment income (1,772) 0
From net realized gain 0 0
--------- ------
Total distributions (1,772) 0
Share transactions
Net proceeds from sales of shares 421,651 707,604
Reinvestment of distributions 1,772 0
Shares redeemed 0 0
--------- -------
Net increase (decrease) in net assets from transaction 423,423 707,604
--------- -------
Total increase (decrease) in net assets $700,387 $711,470
Net Assets
Beginning of period $811,470 $100,000
--------- --------
End of period $1,511,857 $811,470
---------- --------
</TABLE>
See accompanying notes to financial statement
<PAGE>
<TABLE>
<CAPTION>
UPRIGHT GROWTH FUND
Financial Highlights
For a share outstanding throughout each period
(Unaudited)
Six Months Period from
Ended 01/21/99 1
03/31/00 to 09/30/99
<S> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $10.08 $10.00
Income from investment operations
Net investment income (0.15) 0.03
Net realized and unrealized gain (loss) 3.23 0.05
----- ----
Total from investment operations 3.08 0.08
Less Distributions
From net investment income 0.02 0.00
From net realized gain 0.00 0.00
----- ----
Total distributions 0.00 0.00
Net asset value, end of period $13.14 $10.08
Total Returns 30.36% 2 0.8% 2
Ratios and Supplemental Data
Net assets, end of period $1,511,857 $811,470
Ratio of expenses to average net assets 3.84% 3 5.47% 3
Ratio of expenses to average net assets (after reductions) 3.84% 3 1.95% 3
Ratio of net investment income to average net assets (2.56%) 3 (3.05%) 3
Ratio of net investment income to average net assets (after reductions) (2.56%) 3 0.47% 3
Portfolio turnover rate 17.58% 3 8.87% 3
See accompanying notes to financial statements
<FN>
1 Since Inception of Fund
2 Total returns do not include the one time sales charge
3 Annualized
</FN>
</TABLE>
<PAGE>
Notes to financial statements
UPRIGHT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
March 31,2000
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Upright Investments trust (the "Trust") is an open-end management Investment
Company organized as a business trust under the laws of the State of
Delaware under a Certificate of Formation dated March 4, 1998. The
Certificate of Formation provides for an unlimited number of authorized
shares of beneficial interest, which may, without shareholder approval, be
divided into an unlimited number of series of such shares, and which
presently consist of one series of shares for the Upright Growth Fund. The
Fund's investment objective is to provide long term growth Of capital, with
income as a secondary objective.
SECURITY VALUATION
The Fund intends to invest in a wide variety of equity and debt securities.
The investments in securities are carried at market value. The market
quotation used for common stocks, including those listed on the NASDAQ
National Market System, is the last sale price on the date on which the
valuation is made or, in the absence of sales, at the closing bid price.
Over- the-counter securities will be valued on the basis of the bid price at
the close of each business day. Short-term investments are valued at
amortized cost, which approximates market. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith pursuant to procedures established by the Board of
Directors.
SECURITY TRANSACTION TIMING
Security transactions are recorded on the date's transactions are entered
into. Dividend income and distributions to shareholders are recorded on the
ex-dividend data. Interest income is recorded as earned. The Fund uses the
identified cost basis in computing gain or loss on sale of investment
securities.
INCOME TAXES
It is the Fund's policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements of
the Internal Revenue Service. This Internal Revenue Service requirement may
cause an excess of distributions over the book year-end accumulated income.
In addition, it is the Fund's policy to distribute annually, after the end
of the fiscal year, any remaining net investment income and net realized
capital gains.
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.
<PAGE>
UPRIGHT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
March 31, 2000
2. RELATED PARTY TRANSACTIONS
David Y. S. Chiueh is an officer of Upright Financial Corporation,
the Fund Advisor. He is also an officer and trustee of the Fund.
Upright Financial Corporation, the Fund's investment advisor, is registered
as an investment advisor under the Investment Advisers Act of 1940. As
compensation for Upright Financial Corporation's services rendered to the
Fund, such Fund pays a fee, computed at an annual rate of 1.50% of its daily
net assets. The Fund has accrued $8,181 of advisor fees through March 31,
2000, none of which have been paid.
Upright Financial Corporation is the Fund's administrator. As compensation
for Upright Financial's services rendered to the Fund, such Fund pays a fee
computed at an annual rate of .45% of its daily net assets. The Fund has
accrued $2,454 of administration fees through March 31,2000, none of which
have been paid.
3. CAPITAL STOCK AND DISTRIBUTION
At March 31, 2000, an unlimited number of shares were authorized and paid in
capital amounted to $1,231,027 for the Upright Growth Fund. Transactions in
capital stock were as follows:
Shares Sold 34,541
Share Reinvested 150
Shares Redeemed 0
Net Increase 34,691
Shares Outstanding:
Beginning of period 80,520
End of period 115,061
4. SALES CHARGE
The sales charge for shares of the Fund are outlined below:
As a % of
Investment Offering Price Net Amount Invested
Up to $49,999 3.0% 3.09%
$ 50,000 - 99,999 2.5% 2.56%
$100,000 - 249,999 2.25% 2.30%
$250,000 - 499,999 1.75% 1.78%
$500,000 - 749,999 1.50% 1.52%
$750,000 - 999,999 1.25% 1.27%
$1 million and up .75% .76%
<PAGE>
UPRIGHT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONT'D)
March 31, 2000
5. PURCHASES AND SALES OF SECURITIES
During the period ended March 31, 2000 purchases and sales of
investment securities other than U. S. Government obligations
and short-term investments aggregated $1,142,530 and $85,149,
respectively. Purchases and sales of U. S. Government
obligations aggregated $0 and $0, respectively.
6. SECURITY TRANSACTIONS
For federal income tax purposes, the cost of investments owned at March 31,
2000 was the same as identified cost.
At March 31, 2000, the composition of unrealized appreciation (the excess of
value over tax cost) and depreciation (the excess of tax cost over value) was
as follows:
Net Appreciation
Appreciation (Depreciation) (Depreciation)
$336,348 $91,640 $244,708
<PAGE>
Investment Adviser and Administrator
Upright Financial Corporation
615 West Mt. Pleasant Avenue
Livingston, NJ 07039
Custodian
Fifth Third Bank Corporation
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Independent Auditors
McCurdy & Associates CPA's Inc.
27955 Clemens Road
Westlake, OH 44145
Transfer Agent
Mutual Shareholder Services
1301 East Ninth Street, Suite 1005
Cleveland, OH 44114
Underwriter
Maxus Securities Corp.
1301 East Ninth Street, Suite 3600
Cleveland, OH 44114
<PAGE>
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