SEMI-ANNUAL REPORT
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TriStar Large Cap Stock Fund
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September 30, 2000
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Dear Fellow Shareholders:
Welcome. We are pleased to have you as a shareholder of the TriStar Large Cap
Stock Fund. For our first reporting period the fund's investment performance
achieved mixed results. Through August the fund performed very well achieving a
return of 13.9% versus the S&P 500 of 5.8%. However the month of September saw
our fund drop 12.82% compared to a 5.35% drop in S&P 500. One of our core
holdings that disappointed us during September was Intel, which dropped 22% in
one day on news of revenue shortfalls and a concern over slowing demand for
their microprocessors. Other technology related stocks also fell during
September as the NASDAQ and the technology Sector of S&P 500 fell 12.7% and 18%
respectively. Our approach works best when trends are sustained and there were
several market trends that reversed themselves during the month of September.
For the period April 24 through September 30, 2000, the fund's return was down
slightly (.70%), versus our benchmark S&P 500 which was up .14%.
The dynamics of our model require systematically reviewing the companies in our
capitalization range (currently we are only investing in companies with market
capitalizations greater than $50 billion dollars) and moving assets towards
stocks that have demonstrated market leadership in the past and we believe will
provide market leadership in the future. Part of our approach to stock selection
is a belief that it is important to cut your loses and hold winners as opposed
to looking for turn around situations.
Going forward I remain confident that our technical approach to trend analysis
will be rewarded over time. I thank you for your continued support of our
efforts.
Russell P. Stockhaus
President and Fund Advisor
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TriStar Large Cap Stock Fund
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Schedule of Investments
September 30, 2000 (Unaudited)
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Shares/Principal Amount Market Value % of Assets
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COMMON STOCKS
Aircraft
75 Boeing Co. 4,725 1.77%
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Biological Products, Except Diagnostic Substances
40 Amgen, Inc.* 2,793 1.05%
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Commercial Banks
340 Citigroup, Inc. 18,381 6.90%
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Communication Services
60 Nextel Communications* 2,805 1.05%
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Computer Integrated Systems Design
140 Sun Microsystems* 16,345 6.13%
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Computer Peripheral Equipment
200 Cisco Systems, Inc.* 11,050 4.15%
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Computer Storage Devices
180 EMC Corporation* 17,843 6.69%
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Electronic Housewares and Fans
390 General Electric Co. 22,498 8.44%
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Electromedical and Electrotherpeutic Apparatus
110 Medtronic, Inc. 5,699 2.14%
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Electronic Computers
95 Compaq Computer Corp. 2,622
85 Hewlett-Packard Co. 8,245
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10,867 4.08%
Fire, Marine, and Casualty Insurance
135 American International Group, Inc. 12,918 4.85%
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Manufacturing Industries
125 Tyco International 6,484 2.43%
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Motion Picture and Video Tape Production
160 Disney (Walt) Co. 6,120 2.30%
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Natural Gas Liquids
30 Enron Corp. 2,629 0.99%
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Periodicals: Publishing, or Publishing and Printing
35 Viacom, Inc. Class B* 2,052 0.77%
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Pharmaceutical Preperations
75 Lilly, Eli & Co. 6,084
206 Pfizer Inc. 9,257
100 Pharmacia Corp. 6,019
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21,360 8.01%
Prepackaged Software
245 Oracle Corp. * 19,294
40 Veritas Software* 5,680
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24,974 9.37%
Pressed and Blown Glass and Glassware
25 Corning, Inc. Glass Works 7,425 2.79%
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Security Brokers, Dealers, and Flotation Companies
70 Merrill Lynch & Co. 4,620
100 Morgan Stanley 9,143
95 Schwab Corp. 3,373
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17,136 6.43%
Semiconductors and Related Devices
25 Broadcom Corp.* 6,093
370 Intel Corp. 15,378
65 JDS Uniphase* 6,155
55 Micron Technology Inc. 2,530
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30,156 11.31%
Special Industry Machinery
85 Applied Materials, Inc,* 5,042 1.89%
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Telephone and Telegraph Apparatus
250 Nortel Networks 14,891 5.59%
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Total for Common Stock 264,193 99.11%
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Cash and Equivalents
1,732 Firstar Treasury Fund 5.47% 1,732 0.65%
Total Investments 265,925 99.76%
(Identified Cost $ 255,540)
Other Assets Less Liabilities 651 0.24%
Net Assets 266,576 100.00%
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TriStar Large Cap Stock Fund
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Statement of Assets and Liabilities
September 30, 2000 (unaudited)
Assets:
Investment Securities at Market Value $ 265,925
(Identified Cost $ 255,540)
Cash 807
Receivables:
Dividends and Interest 118
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Total Assets 266,850
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Liabilities
Accrued Expenses 274
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Total Liabilities 274
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Net Assets $ 266,576
Net Assets Consist of:
Capital Paid In 270,461
Accumulated Undistributed Net Investment Income (957)
Accumulated Undistributed Realized
Gain (Loss) on Investments - Net (13,313)
Unrealized Appreciation in Value
of Investments Based on Identified Cost - Net 10,385
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Net Assets, for 26,855 Shares Outstanding $ 266,576
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Net Asset Value and Redemption Price
Per Share ($266,576/26,855 shares) 9.93
Offering Price Per Share 9.93
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TriStar Large Cap Stock Fund
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Statement of Operations
For the period of April 24, 2000 (commencement of operations)
through September 30, 2000 (unaudited)
Investment Income:
Dividends 396
Interest 75
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Total Investment Income 471
Expenses: (Note 2)
Management Fees 595
Administrative Fees 833
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Total Expenses 1,428
Net Investment Income (957)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (13,313)
Unrealized Appreciation (Depreciation) on Investments 10,385
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Net Realized and Unrealized Gain (Loss) on Investments (2,928)
Net Increase (Decrease) in Net Assets from Operations (3,885)
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TriStar Large Cap Stock Fund
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Statement of Changes in Net Assets (unaudited)
4/24/00*
to
9/30/00
From Operations:
Net Investment Income (957)
Net Realized Gain (Loss) on Investments (13,313)
Net Unrealized Appreciation (Depreciation) 10,385
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Increase (Decrease) in Net Assets from Operations (3,885)
From Capital Share Transactions:
Proceeds From Sale of Shares 282,493
Shares Issued on Reinvestment of Dividends 0
Cost of Shares Redeemed (112,032)
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Net Increase from Shareholder Activity 170,461
Net Increase in Net Assets 166,576
Net Assets at Beginning of Period 100,000
Net Assets at End of Period 266,576
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Share Transactions:
Issued 28,310
Reinvested -
Redeemed (11,455)
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Net increase (decrease) in shares 16,855
Shares outstanding beginning of period 10,000
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Shares outstanding end of period 26,855
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*commencement of operations
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TriStar Large Cap Stock Fund
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Financial Highlights (unaudited)
Selected data for a share outstanding throughout the period: 4/24/00**
to
9/30/00
Net Asset Value -
Beginning of Period 10.00
Net Investment Income (0.02)
Net Gains or Losses on Securities
(realized and unrealized) (0.05)
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Total from Investment Operations (0.07)
Net Asset Value -
End of Period 9.93
Total Return -0.70%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 267
Ratio of Expenses to Average Net Assets * 1.20%
Ratio of Net Income to Average Net Assets * -0.80%
Portfolio Turnover Rate * 61.67%
* Annualized
** commencement of operations.
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TriStar Large Cap Stock Fund
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Notes to Financial Statements
September 30, 2000 (Unaudited)
1.)SIGNIFICANT ACCOUNTING POLICIES
TriStar Investment Trust is an open-end management investment company. The
Company was organized in Ohio as a business trust and may offer shares of
beneficial interest in a number of separate series, each series
representing a distinct fund with its own investment objectives and
policies. At present, there is only one series authorized by the Trust,
which series has been designated as TriStar Large Cap Stock Fund (the
"Fund"). The Fund's primary investment objective is to seek long-term
capital appreciation. Significant accounting policies of the Fund are
presented below:
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.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service
when the Adviser believes such prices accurately reflect the fair market
value of such securities. A pricing service utilizes electronic data
processing techniques based on yield spreads relating to securities with
similar characteristics to determine prices for normal institutional-size
trading units of debt securities without regard to sale or bid prices. When
prices are not readily available from a pricing service, or when restricted
or illiquid securities are being valued, securities are valued at fair
value as determined in good faith by the Adviser, subject to review of the
Board of Trustees. Short term investments in fixed income securities with
maturities of less than 60 days when acquired, or which subsequently are
within 60 days of maturity, are valued by using the amortized cost method
of valuation, which the Board has determined will represent fair value.
SECURITY TRANSACTION TIMING:
Security transactions are recorded on the dates transactions are entered
into (the trade dates). Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recorded as
earned. The Fund uses the identified cost basis in computing gain or loss
on sale of investment securities. Discounts and premiums on securities
purchased are amortized over the life of the respective 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.
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2.)INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory and administration
agreement with TriStar Capital Management Corp. The Fund is authorized to
pay the Adviser a fee equal to an annual average rate of .50% of the fund's
average daily net assets up to $10 million, .30% of such assets from $10
million to $50 million and .20% of such assets in excess of $50 million for
investment adviser services. The Fund is also authorized to pay the
Administrator a fee equal to an annual average rate of .70%. As a result of
the above calculations, for the period of April 1, 2000 (commencement of
operations) through September 30, 2000, the advisor received management
fees totaling $595 and an administrative fee of $833.
3.)RELATED PARTY TRANSACTIONS
Control persons of TriStar Capital Management Corp. (the "Advisor") also
serve as directors of the Company. These individuals receive benefits from
the Advisor resulting from management fees paid to the Advisor of the Fund.
4.)CAPITAL STOCK AND DISTRIBUTION
At April 20, 2000, the authorized capitalization of the fund consists of
unlimited shares without par value per share. Each share has equal
dividend, distribution and liquidation rights. There are no conversion,
subscription or preemptive rights applicable to any shares of the fund. All
shares issued are fully paid and non-assessable. Each holder of common
stock has one vote for each share held. There are no restrictions on the
right of shareholders to retain or dispose of their shares. Voting rights
are non-cumulative. Paid in capital at September 30, 2000 was $270,461.
5.)PURCHASES AND SALES OF SECURITIES
During the period April 24, 2000 (commencement of operations) through
September 30, 2000, purchases and sales of investment securities other than
U.S. Government obligations and short-term investments aggregated $340,832
and $73,711 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 September
30, 2000 was the same as identified cost. At September 30, 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:
Appreciation (Depreciation) Net Appreciation (Appreciation)
27,666 (17,282) 10,384
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Board of Trustees
Russell P. Stockhaus, Chairman
Thomas P. Ziegler
Christopher S. McCann
Investment Adviser
TriStar Capital Management
13605 Crestway Drive
Brookpark, OH 44142
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Firstar Bank, NA
425 Walnut Street
P.O. Box 1118
Cincinnati, OH 45201
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
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