GIT Equity Trust
Special Growth Portfolio
Select Growth Portfolio
Equity Income Portfolio
Annual Report
March 31, 1994/Audited
GIT
GIT Investment Funds
<PAGE>
Management's Discussion of Fund Performance
May 15,1995
Dear Shareholder:
For the 12-month period ended March 31, 1995, the investment
climate for U.S. equities was mixed, with a weak stock market
through early December followed by a strong year-end rally which
continued well into 1995. Our equity funds generally reflected
these market trends; a weak performance through December led to a
subsequent recovery in the last three months of the fiscal year.
In recent months, the Dow Jones Industrial Average and the S&P
500 Index have set record highs; however the strength in the
major indices has still not been matched by the market as a
whole. A survey by a major brokerage firm in late April noted
that while the widely followed indices are hitting new highs in
1995, only 21% of all stocks are above their 1993-1994 highs.
Moreover, 50% of all stocks were still down 20% or more from the
highs set over the past two years. Thus, the strength of the
blue-chips has not been indicative of the market as a whole, and
to varying degrees this imbalance is reflected in the performance
of our three domestic funds.
During the 12-month period ended March 31, 1995, the Select
Growth Portfolio had a total return of 4.55%. A net loss of
2.32% in the first six months was followed by a net gain of 7.03%
in the second half of the fiscal year. Performance improved as
the year progressed, principally due to gains in technology and
financial services stocks. We continue to feel that our holdings
in these sectors offer outstanding long-term appreciation
prospects. Limiting the gains somewhat was underperformance in
economically cyclical issues. However, our economically
sensitive stocks appear to have bottomed out over the last couple
of months. Their current valuations reflect a "deep recession"
scenario, and we feel that they offer substantial upside
potential should the economy maintain its current strength.
The Special Growth Portfolio, which invests primarily in smaller
companies, was particularly affected by the market's preference
for blue chip issues. Its total return for the 12-month period
was 2.27%. Nevertheless, the fund's total return of 5.19% for
the final three months of the year reflected the solid
fundamentals and attractive valuations of many of its current
holdings.
The more conservative Equity Income Portfolio achieved a total
return of 6.04% for the 12 months ended March 31, 1995. All of
this gain came during the final quarter, in which the fund
returned 7.38%. The portfolio benefited from its exposure to
natural gas and pharmaceutical stocks. In addition, the recent
declines in intermediate and longer-term interest rates resulted
in higher values on stocks with solid dividend yields.
The recent stock market rally has resulted in high prices for
many stocks, particularly those which are heavily weighted in the
major indices. Many stocks are probably close to being fully
valued, which limits their near-term appreciation potential. We
have confidence, however, that our funds' selective emphasis on
both growth and value will position them well for the coming
years.
We appreciate your confidence in GIT Investment Funds, and
encourage you to look at all 13 of our no-load mutual fund
portfolios.
Sincerely,
(signature)
A. Bruce Cleveland
President
<PAGE>
Management's Discussion of Fund Performance (continued)
Comparison of Changes in the Value of a $10,000 Investment and the S&P 500
Depicted herein is a graphic presentation consisting of three charts
comparing the value of a $10,000 investment made to each of the portfolios
against the S&P 500. Through the use of line graphs, the following
information is presented:
Value (as of March 31, 1995) of a $10,000 investment made on March 31, 1985
in the Special Growth Portfolio: $28,793. Average Annual Total Returns:
1 year - 2.27 percent, 5 year - 6.44 percent and 10 year - 11.16 percent.
Value (as of March 31, 1995) of a $10,000 investment made on March 31, 1985
in the Select Growth Portfolio: $27,465. Average Annual Total Returns:
1 year - 4.55 percent, 5 year - 6.04 percent and 10 year - 10.63 percent.
Value (as of March 31, 1995) of a $10,000 investment made on March 31, 1985
in the Equity Income Portfolio: $24,842. Average Annual Total Returns:
1 year - 6.04 percent, 5 year - 6.34 percent and 10 year - 9.53 percent.
Corresponding value of the S&P 500: $38,392
Past performance is not predictive of future performance.
<PAGE>
Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees and Shareholders, Special Growth
Portfolio, Select Growth Portfolio and Equity Income Portfolio,
GIT Equity Trust:
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments of GIT
Equity Trust (comprising, respectively, the Special Growth,
Select Growth and Equity Income Portfolios) as of March 31, 1995,
and the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years
in the period then ended, and the financial highlights for each
of the five years in the period then ended. These financial
statements and financial highlights 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 audit 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, 1995, by correspondence with the
custodian. 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 each of the respective portfolios
constituting GIT Equity Trust at March 31, 1995, the results of
their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted
accounting principles.
(signature)
Ernst & Young LLP
Washington, DC
May 5, 1995
<PAGE>
Special Growth Portfolio
Portfolio of Investments - March 31, 1995
Number
of
Company Description Shares Value
COMMON STOCKS AND
EQUIVALENTS:
86.8% of Net Assets
AIRCRAFT AND
AEROSPACE: 3.6%
FlightSafety
International,
Inc. Provides simulator
training for operators
of aircrafts and ships 25,000 $1,143,750
AUTO RELATED: 3.0%
Armor All Products
Corporation Markets automotive
cleaners and
protectants 45,000 950,625
BUILDING AND
CONSTRUCTION: 4.5%
Central Sprinkler
Corporation <F1> Manufactures fire
sprinklers for
commercial, industrial
and residential
properties 40,000 650,000
Watts Industries,
Inc., Class A Manufactures valves for
water safety and
control 36,000 778,500
COMMUNICATION: 2.5%
Hong Kong
Telecommunications
Ltd., ADR <F2> Provides
telecommunication
services in Hong Kong 40,000 775,000
COMPUTER SERVICES: 9.5%
American List
Corporation Compiles computerized
lists of high school
and college students 62,000 1,317,500
CUC International
Inc. <F1> Operates database
programs that provide
marketing services to
members 30,000 1,166,250
Data Research
Associates ,
Inc. <F1> Provides libraries with
automation systems and
electronic networking
services 50,000 512,500
DRUGS AND HEALTH CARE: 10.3%
Advanced Technology
Laboratories,
Inc. <F1> Produces ultrasonic
diagnostic equipment 38,500 587,125
Haemonetics
Corporation <F1> Designs and
manufactures equipment
for the collection,
processing and surgical
salvage of blood 40,000 580,000
North American
Biologicals,
Inc. <F1> Provides plasma
components to the
pharmaceutical
and diagnostic
industries 8,000 71,000
SpaceLabs Medical,
Inc. <F1> Produces patient
monitoring devices 40,000 985,000
Utah Medical
Products, Inc.
<F1> Manufactures disposable
medical products 106,000 1,026,875
ELECTRICAL AND ELECTRONICS: 4.3%
Best Power
Technology,
Inc. <F1> Manufactures
uninterruptible power
supplies for computers 20,000 255,000
IFR Systems,
Inc. <F1> Manufactures
communications test
equipment 85,000 1,105,000
ENTERTAINMENT: 3.0%
Carnival Corporation,
Class A Operates cruise ships 40,000 935,000
ENVIRONMENTAL SERVICES: 1.6%
Horsehead Resource
Development Company,
Inc. <F1> Processes hazardous
waste for useful
by-products and provides
soil reclamation
services 100,000 500,000
EQUIPMENT RENTAL: 2.5%
McGrath Rentcorp Leases temporary modular
offices 50,000 781,250
HOUSEHOLD FURNISHINGS & APPAREL: 8.3%
Juno Lighting,
Incorporated Manufactures indoor
lighting products 55,000 1,086,250
Newell Company Manufactures and markets
consumer hardware and
housewares 46,000 1,173,000
Tandy Brands
Accessories,
Inc. <F1> Manufactures leather
goods and accessories 48,000 372,000
INSURANCE: 5.6%
Amwest Insurance
Group, Inc. Underwrites surety
bonds 45,000 646,875
Frontier Insurance
Group, Inc. Underwrites general
liability, workers'
compensation and
property insurance 30,000 708,750
20th Century
Industries <F1> Markets auto insurance
on the west coast 35,000 411,250
See Notes to Portfolios of Investments.
<PAGE>
Special Growth Portfolio
Portfolio of Investments - March 31, 1995 (continued)
Number
of
Company Description Shares Value
LEISURE: 1.2%
Bell Sports
Corporation <F1> Manufactures and
markets bicycle helmets 15,000 $206,250
Paul-Son Gaming
Corporation <F1> Manufactures gaming
tables and related
supplies 20,000 187,500
MANUFACTURING: 0.6%
Koala
Corporation <F1> Manufactures and markets
child protection
products 32,000 180,000
OFFICE EQUIPMENT: 7.7%
Ennis Business
Forms, Inc. Produces business forms 60,000 795,000
International
Imaging Materials,
Inc. <F1> Produces thermal
transfer ribbons for
color copiers 33,000 886,875
Varitronics
Systems, Inc. <F1> Manufactures
print-on-tape lettering
systems 60,000 765,000
OIL RELATED: 5.8%
Input/Output,
Inc. <F1> Designs and manufactures
3-dimensional seismic
data acquisition
systems 40,000 1,055,000
WD-40 Company Manufactures and
distributes specialized
lubricants 20,000 782,500
PUBLISHING/PRINTING: 1.5%
Consolidated
Graphics, Inc.
<F1> Provides general
commercial printing
services 40,000 475,000
REAL ESTATE: 2.6%
Real Estate
Investment Trust of
California West coast real estate
investment trust 20,000 330,000
Western Investment
Real Estate Trust West coast real estate
investment trust 40,000 485,000
RETAIL: 5.8%
Leslie's
Poolmart <F1> Retails swimming pool
supplies and related
products 70,000 1,067,500
Little Switzerland,
Inc. <F1> Operates duty-free
stores in the
Caribbean 75,000 375,000
Pentech
International,
Inc. <F1> Designs and markets
writing and drawing
instruments 100,000 393,750
TRANSPORTATION: 2.9%
Offshore Logistics,
Inc. <F1> Provides worldwide
transportation services
to offshore oil
exploration and
production companies 70,000 910,000
TOTAL COMMON STOCKS AND EQUIVALENTS
(Cost $20,019,015) <F3> 27,412,875
Principal
Amount
U.S. GOVERNMENT AGENCY OBLIGATIONS:
9.5% of Net Assets
Federal Home Loan Mortgage Corporation
Discount Note, 6.04%, 4/4/95 $1,000,000 999,836
Federal Home Loan Mortgage Corporation
Discount Note, 5.99%, 4/5/95 1,000,000 999,672
Federal Home Loan Mortgage Corporation
Discount Note, 6.09%, 5/2/95 1,000,000 994,658
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,994,715)<F3> 2,994,166
REPURCHASE AGREEMENT: 12.8% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 3/31/95 at 6.15%, due 4/03/95
collateralized by $4,130,481 in United States
Treasury Bills due 4/15/95. Total proceeds at
maturity are $4,051,075. (Cost $4,049,000) <F3> 4,049,000
TOTAL INVESTMENTS (Cost $27,062,730) <F3> $34,456,041
See Notes to Portfolios of Investments.
<PAGE>
Select Growth Portfolio
Portfolio of Investments - March 31, 1995
Number
of
Shares Value
COMMON STOCKS: 92.5% of Net Assets
AUTOMOTIVE: 5.4%
Chrysler Corporation 2,000 $83,750
Eaton Corporation 1,000 54,250
General Motors Corporation 1,000 44,250
Magna International, Inc., Class A 2,000 76,250
BANKING AND FINANCE: 14.2%
Chemical Banking Corporation 2,500 94,375
Dean Witter Discover and Company 2,500 101,875
Federal National Mortgage Association 1,000 81,375
Green Tree Financial Corporation 3,200 131,200
Merrill Lynch & Company, Inc. 1,500 63,937
Norwest Corporation 3,000 76,125
Travelers, Inc. 3,200 123,600
BEVERAGES: 1.6%
PepsiCo, Inc. 2,000 78,000
BUILDING AND CONSTRUCTION: 2.1%
Continental Homes Holding Corporation 3,500 42,875
Masco Corporation 2,000 55,250
CAPITAL GOODS: 2.3%
General Electric Company 2,000 108,250
CHEMICALS: 1.9%
Lubrizol Corporation 2,600 91,650
COMPUTER HARDWARE AND PERIPHERALS: 9.1%
Cisco Systems, Inc. <F1> 2,000 76,125
Compaq Computer Corporation <F1> 3,500 120,750
Newbridge Networks Corporation <F1> 1,000 32,750
Quantum Corporation <F1> 4,500 67,219
Sun Microsystems, Inc. <F1> 3,900 135,038
COMPUTER SOFTWARE AND SERVICES: 4.5%
Reynolds & Reynolds Company, Class A 3,500 96,250
Sungard Data Systems, Inc. <F1> 2,500 115,156
CONSUMER PRODUCTS: 6.6%
Callaway Golf Company 5,000 70,000
Lancaster Colony Corporation 3,200 112,800
Nutramax Products, Inc. 6,000 52,500
Procter & Gamble Company 1,200 79,500
ELECTRONICS: 9.7%
Intel Corporation 1,000 84,812
Marshall Industries <F1> 4,000 104,000
Motorola, Inc. 2,200 120,175
Pioneer Standard Electronics, Inc. 4,250 76,500
Recoton Corporation <F1> 4,500 74,813
FOREST PRODUCTS - PAPER: 2.3%
Louisiana-Pacific Corporation 4,000 $110,500
FURNITURE / HOME APPLIANCES: 2.5%
Whirlpool Corporation 2,200 120,450
INSURANCE: 7.0%
American International Group, Inc. 500 52,125
Health System International, Inc. 3,500 117,687
PXRE Corporation 3,000 72,375
U.S. Healthcare, Inc. 2,000 88,250
MANUFACTURED HOUSING: 4.6%
Clayton Homes, Inc. 6,250 107,031
Oakwood Homes Corporation 4,200 110,775
MEDICAL RELATED: 1.3%
Safeskin Corporation <F1> 5,000 62,500
PETROLEUM: 1.3%
Tosco Corporation 2,000 62,000
RESTAURANT: 2.2%
McDonald's Corporation 3,000 102,375
RETAIL-APPAREL: 4.1%
Deckers Outdoor Corporation <F1> 6,000 89,250
Gap, Inc. (The) 3,000 106,500
RETAIL-DEPARTMENT STORES: 1.5%
Consolidated Stores Corporation <F1> 3,500 70,438
RETAIL-SPECIAL LINES: 4.2%
General Nutrition Companies, Inc. <F1> 4,000 110,000
Good Guys, Inc. <F1> 4,000 46,500
Sun Television and Appliances, Inc. 5,000 42,188
TELECOMMUNICATIONS: 3.0%
A T & T Corporation 2,000 103,500
MCI Communications Corporation 1,900 39,069
TRANSPORTATION: 1.2%
Union Pacific Corporation 1,000 55,000
TOTAL COMMON STOCKS
(Cost $3,980,539) <F3> 4,393,913
REPURCHASE AGREEMENT: 7.3% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 3/31/95 at 6.15%, due 4/03/95
collateralized by $355,003 in United States
Treasury Bills due 4/15/95. Total proceeds at
maturity are $348,178. (Cost $348,000) <F3> 348,000
TOTAL INVESTMENTS (Cost $4,328,539) <F3> $4,741,913
See Notes to Portfolio of Investments.
<PAGE>
Equity Income Portfolio
Portfolio of Investments - March 31, 1995
Number
of
Shares Value
COMMON STOCKS: 92.7% of Net Assets
BANKING AND FINANCE: 14.0%
Bank of New York Company 2,000 $65,750
Crestar Financial Corporation 1,000 44,000
Federal Home Loan Mortgage Corporation 1,500 90,750
H&R Block, Inc 1,500 65,062
J.P. Morgan & Company, Inc. 1,800 109,800
NationsBank Corporation 2,000 101,500
CHEMICAL: 8.1%
Chemed Corporation 2,500 78,125
Monsanto Company 1,200 96,300
WD-40 Company 2,600 101,725
ELECTRONICS: 1.6%
Diebold, Inc. 1,500 53,437
HOUSEHOLD PRODUCTS: 3.0%
Clorox Company 1,700 102,000
INSURANCE: 4.5%
Cigna Corporation 700 52,325
St. Paul Companies, Inc. 2,000 100,000
LEASING: 3.0%
GATX Corporation 2,300 102,925
MANUFACTURING: 3.4%
Minnesota Mining & Manufacturing Company 2,000 116,250
NATURAL GAS: 5.5%
Tenneco, Inc. 2,000 94,250
Williams Companies, Inc. 3,046 93,284
OFFICE/BUSINESS EQUIPMENT: 2.1%
Pitney-Bowes, Inc. 2,000 72,000
PETROLEUM: 7.2%
Amoco Corporation 2,000 127,250
Royal Dutch Petroleum Company 1,000 120,000
PHARMACEUTICALS: 4.2%
American Home Products Corporation 2,000 142,500
PUBLISHING AND PRINTING: 1.5%
Dun & Bradstreet Corporation 1,000 52,625
REAL ESTATE: 4.4%
Post Properties, Inc. 1,500 44,438
Simon Property Group, Inc. 1,500 36,562
Sun Communities, Inc. 3,000 67,500
RETAIL - DEPARTMENT STORE: 2.2%
May Department Stores Company 2,000 74,000
TELECOMMUNICATION: 11.6%
Ameritech Corporation 1,800 $74,250
Pacific Telesis Group 2,000 60,500
Southwestern Bell Corporation 2,500 105,313
Sprint Corporation 2,000 60,500
Telecom Corporation of New Zealand
Limited, ADR <F2> 1,600 95,600
TRANSPORTATION: 3.9%
CSX Corporation 1,000 78,750
Norfolk Southern Corporation 800 53,500
UTILITIES - ELECTRIC: 4.9%
Baltimore Gas and Electric Company 4,600 108,675
Scana Corporation 1,400 58,450
UTILITIES - GAS: 7.7%
Brooklyn Union Gas Company 3,000 72,375
Northwest Natural Gas Company 3,500 108,937
Washington Gas Light Company 2,000 80,750
TOTAL COMMON STOCKS
(Cost $2,638,785) <F3> 3,161,958
PREFERRED STOCKS: 1.5% of Net Assets
Chase Manhattan Corporation,
9.08% Series J 1,000 25,625
Sears, Roebuck and Company Depository
Shares, 8.88% Series 1ST 1,000 25,438
TOTAL PREFERRED STOCKS
(Cost $50,000) <F3> 51,063
REPURCHASE AGREEMENT: 5.5% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 3/31/95 at 6.15%, due 04/03/95
collateralized by $190,763 in United States
Treasury Bills due 4/15/95. Total proceeds at
maturity are $187,096. (Cost $187,000) <F3> 187,000
TOTAL INVESTMENTS (Cost $2,875,785) <F3> $3,400,021
Notes to Portfolio of Investments:
[FN]
<F1>
Non-income producing
<F2>
ADR American Depository Receipt
<F3>
Aggregate cost and net unrealized appreciation (depreciation) of
investments for federal income tax purposes is as follows:
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
Aggregate cost $27,062,730 $4,328,539 $2,875,785
Gross unrealized
appreciation $9,145,181 $594,576 $612,368
Gross unrealized
depreciation 1,751,870 181,202 88,132
Net unrealized appreciation $7,393,311 $413,374 $524,236
[/FN]
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
Statements of Assets and Liabilities
March 31, 1995
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
ASSETS
Investments, at value
(Notes 1 and 2)
(Cost $27,062,730,
$4,328,539, and
$2,875,785,
respectively)
Investment
securities $30,407,041 $4,393,913 $3,213,021
Repurchase agreement 4,049,000 348,000 187,000
Total investments 34,456,041 4,741,913 3,400,021
Cash 153 698 162
Dividends and
interest receivable 28,325 7,376 13,747
Other Assets 118 9 43
Total assets 34,484,637 4,749,996 3,413,973
LIABILITIES
Payables
Dividends 136,741 -- 1,432
Capital shares
redeemed 2,758,048 -- --
Other liabilities 132 1,400 32
Total liabilities 2,894,921 1,400 1,464
NET ASSETS (Note 5) $31,589,716 $4,748,596 $3,412,509
CAPITAL SHARES
OUTSTANDING 1,746,081 284,238 221,438
NET ASSET VALUE
PER SHARE $18.092 $16.706 $15.411
Statements of Operations
For the Year Ended March 31, 1995
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
INVESTMENT INCOME
(Note 1)
Interest income $329,647 $21,861 $13,960
Dividend income
(Net of foreign tax
of $2,717, $173, and
$1,509, respectively) 391,721 56,672 145,270
Total investment
income 721,368 78,533 159,230
EXPENSES (Notes 3 and 4)
Investment advisory
fee 264,829 34,429 26,151
Custodian fees 11,134 2,165 1,684
Professional fees 20,414 7,927 6,778
Salaries and related
expenses 92,183 17,994 13,955
Securities registration
and blue sky expenses 9,173 8,796 9,480
Telephone expense 6,817 1,330 1,031
Data processing and
office equipment
expenses 28,145 7,900 6,157
Office and
miscellaneous expenses 19,501 6,400 5,297
Depreciation and
amortization 2,632 516 399
Total expenses 454,828 87,457 70,932
NET INVESTMENT
INCOME (LOSS) 266,540 (8,924) 88,298
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain on
investments 2,872,581 445,885 65,516
Net unrealized
appreciation
(depreciation) of
investments (2,105,062) (216,078) 47,919
NET GAIN ON INVESTMENTS 767,519 229,807 113,435
TOTAL INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $1,034,059 $220,883 $201,733
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
Statements of Changes in Net Assets
For the Years Ended March 31
Special Growth Portfolio
1995 1994
INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS
Net investment income (loss) $266,540 $287,372
Net realized gain (loss) on
investments 2,872,581 3,869,537
Net unrealized appreciation
(depreciation) of investments (2,105,062) 335,691
Total increase (decrease) in net
assets resulting from operations 1,034,059 4,492,600
NET EQUALIZATION CREDIT (Note 1) -- --
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (266,540) (288,443)
From net capital gains (5,447,258) (1,727,428)
CAPITAL SHARE TRANSACTIONS
(Note 7) 1,337,943 (6,455,982)
TOTAL INCREASE (DECREASE)
IN NET ASSETS (3,341,796) (3,979,253)
NET ASSETS
Beginning of year 34,931,512 38,910,765
End of year $31,589,716 $34,931,512
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN NET
ASSETS AT THE END OF YEAR
(Note 5) -- $(1,071)
Select Growth Portfolio
1995 1994
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Net investment income (loss) $(8,924) $(14,233)
Net realized gain (loss) on
investments 445,885 (1,104)
Net unrealized appreciation
(depreciation) of investments (216,078) (81,966)
Total increase (decrease) in net
assets resulting from operations 220,883 (97,303)
NET EQUALIZATION CREDIT (Note 1) -- --
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income -- (2,323)
From net capital gains (455,760) (124,949)
CAPITAL SHARE TRANSACTIONS
(Note 7) 223,748 (757,876)
TOTAL INCREASE (DECREASE) IN NET
ASSETS (11,129) (982,451)
NET ASSETS
Beginning of year 4,759,725 5,742,176
End of year $4,748,596 $4,759,725
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN NET
ASSETS AT THE END OF YEAR
(Note 5) -- $(14,233)
Equity Income Portfolio
1995 1994
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Net investment income (loss) $88,298 $82,979
Net realized gain (loss) on
investments 65,516 90,766
Net unrealized appreciation
(depreciation) of investments 47,919 (222,194)
Total increase (decrease) in net
assets resulting from operations 201,733 (48,449)
NET EQUALIZATION CREDIT (Note 1) (427) (927)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (111,973) (73,010)
From net capital gains (170,493) (103,004)
CAPITAL SHARE TRANSACTIONS
(Note 7) (130,962) 535,331
TOTAL INCREASE (DECREASE) IN NET
ASSETS (212,122) 309,941
NET ASSETS
Beginning of year 3,624,631 3,314,690
End of year $3,412,509 $3,624,631
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN NET
ASSETS AT THE END OF YEAR
(Note 5) -- $24,867
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each year:
<TABLE>
Special Growth Portfolio
<CAPTION>
Year Year Year Year Year
ended ended ended ended ended
Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value
beginning
of year $21.110 19.970 19.099 18.047 17.634
Net investment
income (loss) $0.152 0.171 0.092 0.175 0.287
Net realized &
unrealized gains
(losses) on
securities $0.190 2.125 1.031 1.245 0.502
Total from
investment
operations $0.342 2.296 1.123 1.420 0.789
Distributions from
net investment
income $(0.152) (0.170) (0.121) (0.159) (0.376)
Distributions from
capital gains $(3.208) (0.986) (0.131) (0.209) --
Total
distributions $(3.360) (1.156) (0.252) (0.368) (0.376)
Net asset value
end of year $18.092 21.110 19.970 19.099 18.047
Total return 2.27% 11.57 5.90 7.92 4.76
Net assets
end of year
(in thousands) $31,590 34,931 38,911 58,867 51,465
Ratio of expenses
to average net
assets 1.30% 1.45 1.35 1.39 1.40
Ratio of net
investment
income (loss)
to average net
assets 0.76% 0.75 0.44 0.95 1.82
Portfolio
turnover 4% 7 13 24 6
</TABLE>
<TABLE>
Select Growth Portfolio
<CAPTION>
Year Year Year Year Year
ended ended ended ended ended
Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value
beginning
of year $17.706 18.486 19.670 18.884 17.105
Net investment
income (loss) $(0.032) (0.053) 0.137 0.268 0.400
Net realized &
unrealized gains
(losses) on
securities $0.741 (0.318) 1.410 0.736 2.031
Total from
investment
operations $0.709 (0.371) 1.547 1.004 2.431
Distributions from
net investment
income -- $(0.007)(0.175) (0.218) (0.498)
Distributions from
capital gains $(1.709) (0.402) (2.556) -- (0.154)
Total
distributions $(1.709) (0.409) (2.731) (0.218) (0.652)
Net asset value
end of year $16.706 17.706 18.486 19.670 18.884
Total return 4.55% (2.05) 8.45 5.28 14.65
Net assets
end of year
(in thousands) $4,749 4,760 5,742 5,483 3,917
Ratio of expenses
to average net
assets 1.90% 2.02 2.00 2.00 2.00
Ratio of net
investment
income (loss)
to average net
assets (0.19)% (0.27) 0.70 1.44 2.28
Portfolio
turnover 82% 48 125 60 12
</TABLE>
<TABLE>
Equity Income Portfolio
<CAPTION>
Year Year Year Year Year
ended ended ended ended ended
Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value
beginning
of year $15.809 16.814 15.117 14.805 14.661
Net investment
income (loss) $0.504 0.382 0.416 0.499 0.627
Net realized &
unrealized gains
(losses) on
securities $0.364 (0.543) 1.961 0.203 0.298
Total from
investment
operations $0.868 (0.161) 2.377 0.702 0.925
Distributions from
net investment
income $(0.504) (0.352) (0.449) (0.390) (0.781)
Distributions from
capital gains $(0.762) (0.492) (0.231) -- --
Total
distributions $(1.266) (0.844) (0.680) (0.390) (0.781)
Net asset value
end of year $15.411 15.809 16.814 15.117 14.805
Total return 6.04% (1.08) 16.11 4.74 6.58
Net assets
end of year
(in thousands) $3,413 3,625 3,315 2,838 2,709
Ratio of expenses
to average net
assets 2.07% 2.17 2.19 2.15 2.25
Ratio of net
investment
income to average
net assets 2.53% 2.27 2.58 3.47 4.28
Portfolio
turnover 29% 34 55 32 9
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
GIT Equity Trust
Notes to Financial Statements
March 31, 1995
1. Summary of Significant Accounting Policies. GIT Equity Trust
(the "Trust") is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 as an open-
end, diversified investment management company. The Trust offers
shares in four separate portfolios which invest in differing
securities (under policies described in the current prospectus).
The Special Growth Portfolio is invested primarily in smaller
companies that may offer rapid growth potential. The Select
Growth Portfolio is invested primarily in established companies
that may be undervalued or may offer good management and
significant growth potential. The Equity Income Portfolio is
invested primarily in relatively stable, high-yielding
securities. The Worldwide Growth Portfolio invests primarily in
foreign equity securities emphasizing companies that are likely
to benefit from the growth of the world's smaller and emerging
capital markets. The Worldwide Growth Portfolio issues separate
semi-annual and annual financial reports to shareholders.
Securities Valuation: Securities traded on a national securities
exchange are valued at their closing sale price, if available,
and if not available such securities are valued at the mean
between their bid and asked prices. Other securities, for which
current market quotations are readily available, are valued at
the mean between their bid and asked prices.
<PAGE>
Notes to Financial Statements (continued)
Securities for which current market quotations are not readily
available are valued at their fair value as determined in good
faith by the Trustees. Investment transactions are recorded on
the trade date. The cost of investments sold is determined on
the identified cost basis for financial statement and federal
income tax purposes. Repurchase agreements are valued at
amortized cost, which approximates market value.
Investment Income: Interest and other income (if any) is accrued
as earned. Dividend income is recorded on the ex-dividend date.
Dividends and Income Tax: Substantially all of the Trust's
accumulated net investment income, if any, determined as gross
investment income less accrued expenses, is declared as a regular
dividend and distributed to shareholders at least twice annually
at calendar and fiscal year ends. The Trust intends to declare
and pay regular Equity Income Portfolio dividends quarterly.
Capital gains distributions reflecting net realized gains of each
portfolio (if any) are declared and paid twice annually at
calendar and fiscal year end. In accordance with the provisions
of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies, all of the taxable income of each
portfolio is distributed to its shareholders, and therefore no
federal income tax provision is required.
Equalization: The Trust uses an accounting practice known as
equalization for the Equity Income Portfolio, by which a portion
of the proceeds from sales and costs of redemption of capital
shares, equivalent on a per share basis to the amount of
undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net
investment income. As a result, undistributed net investment
income per share is unaffected by sales or redemptions of capital
shares.
Share Subscriptions: Shares purchased by check or otherwise not
paid for in immediately available funds are accounted for as
share subscriptions receivable and shares reserved for
subscriptions.
2. Investments in Repurchase Agreements. When the Trust
purchases securities under agreements to resell, the securities
are held for safekeeping by the Trust's custodian bank as
collateral. Should the market value of the securities purchased
under such an agreement decrease below the principal amount to be
received at the termination of the agreement plus accrued
interest, the counterparty is required to place an equivalent
amount of additional securities in safekeeping with the Trust's
custodian bank. Repurchase agreements may be terminated within
seven days. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Trust, along with other
registered investment companies having Advisory and Services
Agreements with Bankers Finance Investment Management Corp.
("BFIMC"), transfers uninvested cash balances into a joint
trading account. The aggregate balance in this joint trading
account is invested in one or more consolidated repurchase
agreements whose underlying securities are U.S. Treasury or
federal agency obligations.
3. Investment Advisory Fees and Other Transactions with
Affiliates. The Investment Adviser to the Trust, BFIMC, earns an
advisory fee equal to 0.75% per annum of the average net assets
of each of the Special Growth, Select Growth and Equity Income
Portfolios; the fees accrue daily and are payable monthly. BFIMC
has retained Cramblit & Carney, Incorporated, investment counselors, as a
sub-adviser with respect to the Special Growth
Portfolio. For the year ended March 31, 1995, the sub-adviser
received fees of $131,052. In order to meet the securities
registration requirements of certain states, BFIMC has undertaken
to reimburse the Trust by the amount, if any, by which the total
expenses of the Trust (less certain excepted expenses) exceed the
applicable expense limitation in any state or other jurisdiction
in which the Trust is subject to regulation during the fiscal
year. The Trust believes the current applicable expense
limitation is 2.5% per annum of the average net assets of each
portfolio up to $30 million, 2% of any amount of such net
assets exceeding $30 million but not exceeding $100 million, and
1.5% per annum of such amount in excess of $100 million. BFIMC is
responsible for the fees and expenses of trustees who are
affiliated with BFIMC, the rent expense of the Trust's principal
executive office premises and certain promotional expenses. For
the year ended March 31, 1995, outside trustee fees were $4,000
for each portfolio. At March 31, 1995, certain officers,
trustees, companies
<PAGE>
Notes to Financial Statements (continued)
and individuals affiliated with the Trust have investments in the
Trust aggregating 1.5% of the Special Growth Portfolio shares
outstanding, 1.8% of the Select Growth Portfolio shares
outstanding and 0.2% of the Equity Income Portfolio shares
outstanding.
4. Other Expenses. With the exception of certain expenses of the
Trust payable by it directly, all operational support services
are provided to the Trust under a services agreement between the
Trust and BFIMC, pursuant to which such services are to be
provided for amounts not exceeding the cost to BFIMC of the
support provided. Common expenses incurred by the Trust are
allocated among the portfolios based on the ratio of net assets
of each portfolio to the combined net assets. For the year ended
March 31, 1995, operating expenses of $189,999 for the Special
Growth Portfolio, $53,028 for the Select Growth Portfolio, and
$44,781 for the Equity Income Portfolio have been reimbursed to
BFIMC under the Services Agreement. As of March 31, 1995,
expenses of $12,383 for the Special Growth Portfolio; $29,694 for
the Select Growth Portfolio; and $54,455 for the Equity Income
Portfolio have been incurred by BFIMC on behalf of the
portfolios, the billings of which has been deferred.
5. Net Assets. At March 31, 1995, net assets included the
following:
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
Net paid in capital on
shares of beneficial
interest $24,196,405 $4,346,200 $2,940,923
Accumulated net
realized losses -- (10,978) (52,650)
Net unrealized
appreciation of
investments 7,393,311 413,374 524,236
Total net assets $31,589,716 $4,748,596 $3,412,509
In accordance with a recently approved accounting pronouncement
(Statement of Position 93-2), the Special Growth and Select
Growth Portfolios reclassified $(1,071) and $(23,157),
respectively, from accumulated net investment losses to paid in
capital as a result of permanent book and tax basis differences.
These reclassifications had no impact on net asset value.
6. Investment Transactions. Purchases and sales of securities
other than short-term securities for the year ended March 31,
1995, were as follows:
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
Purchases $1,143,625 $3,403,695 $914,459
Sales 6,570,693 3,810,476 996,401
<PAGE>
Notes to Financial Statements (continued)
7. Capital Share Transactions. An unlimited number of capital
shares, without par value, are authorized. Transactions in
capital shares for the years ended March 31 were as follows:
Special Growth Portfolio
1995 1994
In Dollars
Shares Sold $164,683,514 $135,790,502
Shares issued in reinvestment
of dividends 5,232,976 1,862,936
Total Shares Issued 169,916,490 137,653,438
Shares Redeemed (168,578,547) (144,109,420)
Net increase (decrease) $1,337,943 $(6,455,982)
In Shares
Shares Sold 8,581,112 6,481,186
Shares issued in reinvestment
of dividends 284,944 88,784
Total Shares Issued 8,866,056 6,569,970
Shares Redeemed (8,774,708) (6,863,661)
Net increase (decrease) 91,348 (293,691)
Select Growth Portfolio
1995 1994
In Dollars
Shares Sold $1,165,448 $700,730
Shares issued in reinvestment
of dividends 443,606 125,407
Total Shares Issued 1,609,054 826,137
Shares Redeemed (1,385,306) (1,584,013)
Net increase (decrease) $223,748 $(757,876)
In Shares
Shares Sold 68,987 38,407
Shares issued in reinvestment
of dividends 28,074 6,945
Total Shares Issued 97,061 45,352
Shares Redeemed (81,565) (87,235)
Net increase (decrease) 15,496 (41,883)
Equity Income Portfolio
1995 1994
In Dollars
Shares Sold $297,518 $1,240,471
Shares issued in reinvestment
of dividends 269,709 169,508
Total Shares Issued 567,227 1,409,979
Shares Redeemed (698,189) (874,648)
Net increase (decrease) $(130,962) $535,331
In Shares
Shares Sold 19,179 74,683
Shares issued in reinvestment
of dividends 18,114 10,266
Total Shares Issued 37,293 84,949
Shares Redeemed (45,132) (52,807)
Net increase (decrease) (7,839) 32,142
GIT Equity Trust
Special Tax Information (Unaudited)
March 31, 1995
Corporate shareholders should note that the percentages of
ordinary dividend income resulting from the fiscal year ended
March 31, 1995, that qualify for the corporate dividends-received
deduction are as follows:
Special Growth Portfolio 84%
Equity Income Portfolio 100%
Pursuant to Section 852 of the Internal Revenue Code, the Special
Growth, Select Growth and Equity Income Portfolios designate
$5,236,079, $455,760 and $170,493, respectively, as capital gain
dividends for the fiscal year ended March 31, 1995.
<PAGE>
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<PAGE>
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<PAGE>
Telephone Numbers
Shareholder Service
Washington, DC area: 703/528-6500
Toll-free nationwide: 800/336-3063
24-Hour ACCESS
Toll-free nationwide: 800/448-4422
The GIT Family of Mutual Funds
GIT Equity Trust
Special Growth Portfolio
Select Growth Portfolio
Equity Income Portfolio
Worldwide Growth Portfolio
GIT Income Trust
Maximum Income Portfolio
Government Portfolio
GIT Tax-Free Trust
Arizona Portfolio
Maryland Portfolio
Missouri Portfolio
Virginia Portfolio
National Portfolio
Money Market Portfolio
Government Investors Trust
For more complete information on any GIT Investment Fund,
including charges and expenses, request a prospectus by
calling the numbers above. Read it carefully before you
invest or send money.
GIT
GIT INVESTMENT FUNDS
1655 Fort Myer Drive
Arlington Virginia 22209
