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UNAUDITED FINANCIAL STATEMENTS
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The Fairmont Fund
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June 30, 2000
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The Fairmont Fund
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Schedule of Investments
June 30, 2000 (unaudited)
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Shares/Principal Amount Market Value % of Assets
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COMMON STOCKS
Advertising Agencies
1,600 Grey Advertising, Inc. 832,000 8.86%
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Beauty Shops
20,000 Regis Corp. 250,000 2.66%
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Book Stores
20,000 Barnes and Noble, Inc.* 445,000 4.74%
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Business Services
30,000 Online Resources & Communications* 193,125 2.05%
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Cable and Other Pay Television Services
10,000 Comcast Corp. CL A Special Non-Vtg* 405,000 4.31%
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Computer Processing and Data Preparation Services
10,000 S1 Corp. * 233,125 2.48%
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Computer Programming
20,000 At Home Corp.* 415,000 4.42%
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Electronic Components
15,000 Adaptec, Inc.* 341,250 3.63%
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Funeral Services and Crematories
50,000 Service Corp. Int'l.* 159,375 1.70%
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Help Supply Services
75,000 Butler International, Inc. * 637,500 6.79%
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Hotels and Motels
70,000 Hilton Hotels Corp. 656,250 6.99%
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Motor Vehicle Parts and Accessories
5,000 Arvin Industries, Inc. 86,875 0.92%
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National Commercial Banks
20,000 Compass Bancshares, Inc. 341,250
25,000 First Tennessee National Corp. 414,063
10,000 Union Planters Corp. 279,375
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1,034,688 11.01%
Nursing and Personal Care Facilities
20,000 Sunrise Assisted Living, Inc. * 370,000 3.94%
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<PAGE>
Personal Credit Institutions
5,000 Capital One Financial 223,125 2.37%
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Pharmaceutical Preparations
16,000 Novartis AG 640,000 6.81%
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Prepackaged Software
20,000 Novell, Inc. * 185,000
10,000 PeopleSoft, Inc.* 167,500
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352,500 3.75%
Radio and Television Broadcasting
2,000 Qualcomm, Inc.* 120,000 1.28%
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Radio, Television, and Consumer Electronic Stores
5,000 Circuit City Stores, Inc. 165,938 1.77%
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Real Estate Investment Trusts
5,000 Felcor Lodging Trust, Inc. 92,500
20,000 RFS Hotel Investors, Inc. 235,000
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327,500 3.49%
Security Brokers, Dealers, and Flotation Companies
5,000 Donaldson Lufkin & Jenrette 212,187 2.26%
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Semiconductors and Related Devices
5,000 Texas Instruments, Inc. 343,437 3.66%
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Telephone and Telegraph Apparatus
5,000 Science Dynamics Corp.* 57,810 0.61%
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Testing Laboratories
20,000 Quintiles Transnational Corp.* 282,500 3.01%
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Truck Rental and Leasing, Without Drivers
80,000 Budget Group, Inc.* 330,000 3.51%
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Total Stocks (Cost $8,996,307) 9,114,185 97.02%
Bank Repurchase Agreements
with Firstar NA of Cincinnati,
issued 6-30-00 due 7-1-00,
fully collateralized GNMA 5.79%
due 2002 480,437 5.11%
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Total Investments (Cost $9,476,744) 9,594,622 102.14%
Other Assets Less Liabilities (200,836) (2.14)%
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Net Assets 9,393,786 100.00%
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The Fairmont Fund
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Statement of Assets and Liabilities
June 30, 2000 (unaudited)
Assets:
Investment Securities at Market Value (Note 2) $ 9,594,622
(Cost $9,476,744)
Receivables:
Dividends and Interest 9,944
Investment Securities Sold 159,291
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Total Assets 9,763,857
Liabilities
Accrued Expenses (Note 3) 15,646
Payables:
Investment Securities Purchased 349,425
Shares Redemed 5,000
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Total Liabilities 370,071
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Net Assets $ 9,393,786
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Net Assets Consist of:
Capital Paid In (Note 8) 10,866,655
Accumulated Undistributed Net Investment Loss (35,872)
Accumulated Realized Loss on Investments - Net (Note 6) (1,554,875)
Unrealized Appreciation on Investments (Note 5) 117,878
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Net Assets, for 474,745 Shares Outstanding $ 9,393,786
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Net Asset Value, Offering Price and Redemption Price
Per Share ($9,393,786/474,745 shares) $ 19.79
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The Fairmont Fund
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Statement of Operations
For the six months ended June 30, 2000 (unaudited)
Investment Income: (Note 2)
Dividends $ 68,308
Interest 9,298
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Total Investment Income 77,606
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Expenses
Management Fees (Note 3) 113,478
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Total Expenses 113,478
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Net Investment Loss (35,872)
Realized and Unrealized Loss on Investments: (Note 2)
Realized Loss on Investments (1,475,061)
Change Unrealized Appreciation on Investments (734,083)
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Net Realized and Unrealized Loss on Investments (2,209,144)
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Net Decrease in Net Assets from Operations $ (2,245,016)
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The Fairmont Fund
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Statement of Changes in Net Assets
(unaudited) 1/01/00 1/01/99
to to
6/30/00 12/31/99
From Operations:
Net Investment Loss $ (35,872) (17,679)
Net Realized Gain (Loss) on Investments (1,475,061) 1,206,359
Net Unrealized Depreciation on Investments (734,083) (3,339,684)
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Decrease in Net Assets from Operations (2,245,016) (2,151,004)
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From Distributions to Shareholders: (Note 4)
Net Investment Income 0 0
Net Realized Gains from Security Transactions 0 (141,259)
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Net Distributions 0 (141,259)
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From Capital Share Transactions: (Note 2)
Proceeds From Sale of Shares 55,044 479,685
Shares Issued on Reinvestment of Dividends 0 135,040
Cost of Shares Redeemed (3,449,350) (7,128,568)
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Net Decrease from Capital Share Transactions (3,394,306) (6,513,843)
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Net Decrease in Net Assets (5,639,322) (8,806,106)
Net Assets at Beginning of Period 15,033,108 23,839,214
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Net Assets at End of Period $ 9,393,786 $ 15,033,108
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Share Transactions:
Issued 2,609 19,494
Reinvested - 5,679
Redeemed (159,910) (298,576)
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Net increase (decrease) in shares (157,301) (273,403)
Shares outstanding beginning of period 632,046 905,449
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Shares outstanding end of period 474,745 632,046
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The Fairmont Fund
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<TABLE>
Financial Highlights (unaudited)
Selected data for a share outstanding throughoutthe period:
<CAPTION>
1/01/00 1/01/99 1/01/98 1/01/97 1/01/96
to to to to to
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96
<S> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $ 23.78 $ 26.33 $ 27.68 $ 26.45 $ 27.02
Net Investment Income (0.03) (0.49) (0.27) (0.16) (0.10)
Net Gains or Losses on Securities
(realized and unrealized) (3.96) (1.83) (1.08) 4.20 2.67
------ ------ ------ ------ ------
Total from Investment Operations (3.99) (2.32) (1.35) 4.04 2.57
Dividends
(from net investment income) 0.00 0.00 0.00 0.00 0.00
Distributions (from capital gains) 0.00 0.23 0.00 2.81 3.14
Return of Capital 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
Total Distributions 0.00 0.23 0.00 2.81 3.14
Net Asset Value -
End of Period $ 19.79 $ 23.78 $ 26.33 $ 27.68 $ 26.45
=========== =========== =========== =========== ===========
Total Return (16.78)% (8.83)% (4.88)% 15.27 % 9.52 %
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) $ 9,394 $ 15,033 $ 23,839 $ 31,856 $ 30,731
Ratio of Expenses to Average Net Assets 1.91%* 1.77 % 1.68 % 1.63 % 1.66 %
Ratio of Net Income to Average Net Assets (.60)%* (0.10)% (0.18)% (0.57)% (0.59)%
Portfolio Turnover Rate 5.05* 2.61 3.42 1.83 2.37
*Annualized
</TABLE>
<PAGE>
The Fairmont Fund
Notes to Financial Statements
(Unaudited)
June 30, 2000
(1) Organization
The Fairmont Fund (The Fund) is a no-load, diversified series of The
Camelot Funds, formerly The Fairmont Fund Trust (The Trust), which is a Kentucky
business trust and an open-end investment company registered under the
Investment Company Act of 1940. The Fund was established under a Declaration of
Trust dated December 29, 1980 and began offering its shares publicly on
September 2, 1981. The Fund's objective is capital appreciation which it seeks
to achieve by investing in equity securities that its Adviser believes are
undervalued.
(2) Summary of Significant Accounting Policies
(a) Valuation of Investment Securities - Purchases and sales of securities
are recorded on a trade date basis. Portfolio securities which are traded on
stock exchanges or in the over-the-counter markets are valued at the last sale
price as of 4:00 P.M. Eastern time on the day the securities are being valued
or, lacking any sales, at the mean between the closing bid and asked prices.
Fixed income securities are valued by using market quotations, or independent
pricing services which use prices provided by market makers or estimates of
market values obtained from yield data relating to instruments or securities
with similar characteristics. Securities and other assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of the Board of Trustees. Dividend income
is recorded on the ex-dividend date and interest income is recorded on the
accrual basis.
(b) Gains and Losses on Investment Securities - Gains and losses from sales
of investments are calculated on the "identified cost" method. Upon disposition
of a portion of the investment in a particular security, it is The Fund's
general practice to first select for sale those securities which qualify for
long-term capital gain or loss treatment for tax purposes.
(c) Repurchase Agreements - The Fund may acquire repurchase agreements from
banks or security dealers (the Seller) which the Board of Trustees and the
Adviser have determined creditworthy. The Seller of the repurchase agreement is
required to maintain the value of collateral at not less than the repurchase
price, including accrued interest. Securities pledged as collateral for
repurchase agreements are held by The Fund's custodian in the Federal
Reserve/Treasury book-entry system.
(d) Capital Shares - The Fund records purchases of its capital shares at
the daily net asset value next determined after receipt of a shareholder's check
or wire and application in proper form. Redemptions are recorded at the net
asset value next determined following receipt of a shareholder's written request
in proper form.
(e) Estimates and Assumptions - The preparation of financial statements in
conformity with generally accepted accounting principles requires The Fund 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.
(3) Investment Advisory Agreement, Commissions and Related Party Transactions
The Investment Advisory Agreement (the Agreement) provides that The Sachs
Company (the Adviser) will pay all of The Trust's operating expenses, excluding
brokerage fees and commissions, taxes, interest and extraordinary expenses.
Under the terms of the Agreement, The Fund pays the Adviser a fee at the rate of
2% of the first $10,000,000 of average daily net assets, 1-1/2% of the next
$20,000,000, and 1% of the average daily net assets over $30,000,000. The
management fee is accrued daily and paid monthly. The Adviser received
management fees of $113,478 for the six months ended June 30, 2000.
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The Fairmont Fund
Notes to Financial Statements
(Unaudited)
June 30, 2000
Morton H. Sachs, a trustee of The Fund, is the president and sole
shareholder of the Adviser. The Adviser, as a registered broker-dealer of
securities, effected substantially all of the investment portfolio transactions
for The Fund. For this service the Adviser received commissions of $124,285 for
the six months ended June 30, 2000.
Certain officers and/or Trustees of The Fund are officers of the Adviser.
(4) Distributions to Shareholders
No distributions to shareholders were made in six months ended June 30,
2000. The following is a summary of distributions for the year ended December
31, 1999.
Date Declared Paid In Cash Reinvested Total Per Share Amount
December 31, 1999 $6,219 $135,040 $141,259 $0.23
(5) Investments
For the six months ended June 30, 2000, the cost of purchases and proceeds from
sales of investments, other than temporary cash investments, were $29,014,137
and $32,759,021 respectively.
Following is information regarding unrealized appreciation (depreciation) and
aggregate cost of securities based upon federal income tax cost at June 30,
2000. The difference between book cost and tax cost consists of wash sales in
the amount of $161,924.
Tax Cost
Aggregate gross unrealized appreciation for
all securities with value in excess of cost.................$ 959,485
Aggregate gross unrealized depreciation for
all securities with cost in excess of value.................. ( 1,003,531)
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Net unrealized appreciation......................................$ (44,046)
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Aggregate cost of securities.....................................$ 9,158,231
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(6) Income Taxes
It is The Fund's policy to comply with the special provisions of the Internal
Revenue Code available to investment companies and, in the manner provided
therein, to distribute substantially all of its income to shareholders.
Therefore no tax provision is required.
(7) There are no reportable financial instruments which have any off-balance
sheet risk as of June 30, 2000.
(8) At June 30, 2000 an indefinite number of capital shares (no par value) were
authorized, and paid-in capital amounted to $10,866,655. Transactions in capital
shares were as follows:
Shares sold..................................... 2,609
Shares redeemed................................. ( 159,910)
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Net decrease.................................... ( 157,301)
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Shares outstanding:
Beginning of period.................... 632,046
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Ending of period....................... 474,745
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Board of Trustees
Morton H. Sachs
Jennifer S. Dobbins
Maurice J. Buchart
Jane W. Hardy
Boyce F. Martin, III
Investment Adviser
The Sachs Company
1346 South Third St.
Louisville, KY 40208
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
Counsel
Donald S. Mendelsohn
Brown, Cummins & Brown Co., L.P.A.
3500 Carew Tower
441 Vine Street
Cincinnati, OH 45202
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
