GIT Equity Trust
Special Growth Portfolio
Select Growth Portfolio
Equity Income Portfolio
Semi-Annual Report
September 30, 1995/Unaudited
GIT
GIT Investment Funds
<PAGE>
Letter to Shareholders
November 11, 1995
Dear Shareholder:
For the six-month period ended September 30, 1995, U.S.
equities achieved returns well in excess of their historical
averages. During this time frame the total return on the S&P
500 was 18.25%, and the Dow Jones Industrial Average
returned 16.61%. Rallies in U.S. equities were fueled by
several factors, including solid year-over-year earnings
gains for many companies, particularly in the technology and
financial sectors, economic reports that suggested slowing
inflation, and a sharp rally in the U.S. bond market on
falling interest rates. A combination of these trends has
made 1995 an exceptional time to be invested in U.S.
equities, in contrast to the below-average returns of 1994.
The total return of the Select Growth Portfolio during the
six-month period ended September 30, 1995 was 25.01%,
solidly outperforming both the S&P 500 and the Dow Jones
Industrial Average. The portfolio's returns were driven by
strong earnings momentum in the technology sector, as
companies involved in information management and
communications continued to see their markets expand. In
addition, the prices for many blue chip technology companies
recovered from historically low valuations at the beginning
of the year. The fund also benefited from a sharp rally in
financial stocks, as banking, consumer finance, and
brokerage stocks all recovered from extended price weakness
in 1994.
While recent returns for the Select Growth Portfolio have
been substantial, the portfolio appears to be reasonably
valued at current levels. The majority of Select Growth
Portfolio stocks have exhibited solid historical growth
trends in sales and earnings, and share prices do not appear
high relative to historical valuations. We would expect to
use periods of weakness in the market to accumulate shares
of companies with solid growth characteristics.
The more conservative Equity Income Portfolio had a total
return of 13.78% for the six-month period ended September
30, 1995. The fund's emphasis on dividend stocks, while
limiting exposure to high growth companies, has enabled the
fund to achieve its returns with relatively low volatility.
Worth noting was the portfolio's high degree of price
stability during the periods of market turbulence seen in
July and September.
The Special Growth Portfolio, which invests principally in
small companies, achieved a total return of 12.11%. An
emphasis on companies with low debt and high return on
equity has enabled the fund to maintain a high degree of
asset quality, which may provide a buffer against the
increasing level of volatility in the market.
In conclusion, we note that the market's upward advance that
began in January of 1995 has given way to a recent period of
high market volatility. We will, however, continue to use
fundamental valuations as our frame of reference, rather
than short term market psychology. Our emphasis on company
fundamentals and long-term potential has delivered solid
returns in recent months, and we believe that we are well-
positioned for the years to come.
We appreciate your confidence in GIT Investment Funds, and
encourage you to look at all 13 of our mutual fund
portfolios.
Sincerely,
(signature)
A. Bruce Cleveland
President
<PAGE>
Special Growth Portfolio
Portfolio of Investments - September 30, 1995
(Unaudited)
Number
of
Common Description Shares Value
COMMON STOCKS AND EQUIVALENTS:
88.3% of Net Assets
AIRCRAFT AND AEROSPACE: 2.8%
FlightSafety
International,
Inc. Provides simulator
training for operators
of aircraft and ships 20,000 $917,500
AUTO RELATED: 2.6%
Armor All Products
Corporation Markets automotive
cleaners and
protectants 50,000 862,500
BUILDING AND CONSTRUCTION: 5.8%
*Central Sprinkler
Corporation<F2>Manufactures fire
sprinklers for commercial,
industrial and residential
properties 33,000 1,006,500
Watts Industries,
Inc., Class A Manufactures valves for
water safety and control 36,000 895,500
COMMUNICATION: 3.2%
*Globalstar
Telecommunications
Ltd.<F2> Builds and operates a
worldwide digital
telecommunications
system 15,000 317,813
Hong Kong
Telecommunications
Ltd., ADR<F1> Provides telecommunication
services in Hong Kong 40,000 730,000
COMPUTER SERVICES: 11.0%
American List
Corporation Compiles computerized
lists of high school
and college students 61,000 1,746,125
*CUC International
Inc.<F2> Operates database programs
that provide marketing
services to members 32,000 1,116,000
*Data Research
Associates,
Inc.<F2> Provides libraries with
automation systems and
electronic networking
services 50,000 728,125
DRUGS AND HEALTH CARE: 11.8%
*Advanced Technology
Laboratories,
Inc.<F2> Produces ultrasonic
diagnostic equipment 38,500 693,000
*Haemonetics
Corporation<F2>Designs and manufactures
equipment for the collection,
processing and surgical
salvage of blood 40,000 920,000
*North American
Biologicals,
Inc.<F2> Provides plasma components
to the pharmaceutical and
diagnostic industries 8,000 67,000
*SpaceLabs
Medical,
Inc.<F2> Produces patient monitoring
devices 35,000 980,000
*Utah Medical
Products,
Inc.<F2> Manufactures disposable
medical products 75,000 1,190,625
ELECTRICAL AND ELECTRONICS: 2.6%
*IFR Systems,
Inc.<F2> Manufactures communications
test equipment 80,000 840,000
ENTERTAINMENT AND LEISURE TIME: 2.9%
Carnival Corporation,
Class A Operates cruise ships 40,000 960,000
ENVIRONMENTAL SERVICES: 1.7%
*Horsehead Resource
Development Company,
Inc.<F2> Processes hazardous
waste for useful by-products
and provides soil reclamation
services 100,000 539,065
EQUIPMENT RENTAL: 2.8%
McGrath
Rentcorp Leases temporary
modular offices 50,000 900,000
See Notes to Portfolio of Investments
<PAGE>
Special Growth Portfolio
Portfolio of Investments - September 30, 1995 (continued)
(Unaudited)
Number
of
Company Description Shares Value
HOUSEHOLD FURNISHINGS & APPAREL: 6.8%
Juno Lighting,
Incorporated Manufactures indoor
lighting products 55,000 $825,000
Newell Company Manufactures and markets
consumer hardware and
housewares 40,000 990,000
*Tandy Brands
Accessories,
Inc.<F2> Manufactures leather
goods and accessories 48,000 396,000
INSURANCE: 6.5%
Amwest Insurance
Group, Inc. Underwrites surety bonds 45,000 669,375
Frontier Insurance
Group, Inc. Underwrites general
liability, workers'
compensation and
property insurance 30,000 907,500
*20th Century
Industries<F2> Markets auto insurance
on the west coast 35,000 538,125
LEISURE: 1.1%
*Bell Sports
Corporation<F2>Manufactures and markets
bicycle helmets 15,000 165,000
*Paul-Son Gaming
Corporation<F2>Manufactures gaming tables
and related supplies 20,000 195,000
MANUFACTURING: 0.8%
*Koala
Corporation<F2>Manufactures and markets
child protection
products 32,000 264,000
OFFICE EQUIPMENT: 6.7%
Ennis Business
Forms, Inc. Produces business forms 60,000 832,500
*International
Imaging Materials,
Inc.<F2> Produces thermal transfer
ribbons for color
copiers 33,000 792,000
*Varitronics
Systems,
Inc.<F2> Manufactures print-on-tape
lettering systems 60,000 547,500
OIL RELATED: 6.1%
*Input/Output,
Inc.<F2> Designs and manufactures
3-dimensional seismic
data acquisition systems 30,000 1,151,250
WD-40 Company Manufactures and
distributes specialized
lubricants 20,000 850,000
PUBLISHING AND PRINTING: 2.6%
*Consolidated
Graphics,
Inc.<F2> Provides general commercial
printing services 40,000 845,000
REAL ESTATE: 2.4%
Real Estate
Investment
Trust of
California West coast real estate
investment trust 20,000 332,500
Western
Investment Real
Estate Trust West coast real estate
investment trust 40,000 455,000
RETAIL: 5.1%
*Leslie's
Poolmart<F2> Retails swimming pool
supplies and related
products 65,000 1,031,875
*Little
Switzerland,
Inc.<F2> Operates duty-free stores
in the Caribbean 75,000 290,625
*Pentech
International,
Inc.<F2> Designs and markets writing
and drawing instruments 100,000 340,625
TRANSPORTATION: 2.9%
*Offshore
Logistics,
Inc.<F2> Provides worldwide
transportation services
to offshore oil exploration
and production companies 70,000 958,125
TOTAL COMMON STOCKS AND EQUIVALENTS
(Cost $19,334,749)<F3> 28,786,753
REPURCHASE AGREEMENT: 11.7% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 9/29/95 at 6.25%, due 10/2/95
collateralized by $3,877,498 United States
Treasury Bills due 11/16/95. Total proceeds
at maturity are $3,802,980.
(Cost $3,801,000)<F3> 3,801,000
TOTAL INVESTMENTS (Cost $23,135,749)<F3> $32,587,753
See Notes to Portfolio of Investments.
<PAGE>
Select Growth Portfolio
Portfolio of Investments - September 30, 1995
(Unaudited)
Number
of
Shares Value
COMMON STOCKS: 91.7% of Net Assets
AUTOMOTIVE: 3.1%
Chrysler Corporation 1,000 $53,000
General Motors Corporation 1,000 46,875
Magna International, Inc. 2,000 90,250
BANKING AND FINANCIAL SERVICES: 18.4%
Chemical Banking Corporation 2,500 152,187
Dean Witter Discover and Company 2,500 140,625
Federal National Mortgage
Association 1,000 103,500
First USA, Inc. 3,000 162,750
Green Tree Financial Corporation 3,200 195,200
Merrill Lynch & Company, Inc. 1,500 93,750
Norwest Corporation 3,000 98,250
Travelers Group, Inc. 3,200 170,000
BEVERAGES - SOFT DRINKS: 1.7%
PepsiCo, Inc. 2,000 102,000
CAPITAL GOODS: 5.3%
Eaton Corporation 2,000 106,000
General Electric Company 2,000 127,500
Wabash National Corporation 2,500 88,438
CHEMICALS: 2.9%
Chemed Corporation 3,000 106,125
*Rexene Corporation<F2> 6,000 70,500
COMPUTERS - HARDWARE AND PERIPHERALS: 9.9%
*Cisco Systems, Inc.<F2> 2,000 138,125
*Compaq Computer Corporation<F2> 3,500 169,312
*Quantum Corporation<F2> 2,000 43,625
*Sun Microsystems, Inc.<F2> 3,900 245,944
COMPUTERS - SOFTWARE AND SERVICES: 5.5%
Reynolds & Reynolds Company 3,500 120,313
*Ross Systems, Inc.<F2> 10,000 69,375
*Sungard Data Systems, Inc.<F2> 5,000 145,000
CONSUMER PRODUCTS: 1.5%
Procter & Gamble Company 1,200 92,400
ELECTRONICS - GENERAL: 5.5%
*Marshall Industries<F2> 4,000 151,000
Pioneer Standard Electronics, Inc. 6,375 111,563
*Recoton Corporation<F2> 2,500 67,813
ELECTRONICS - SEMICONDUCTORS: 9.1%
*Applied Materials, Inc.<F2> 1,400 143,500
Intel Corporation 2,000 120,375
*Lam Research Corporation 2,000 119,250
Motorola, Inc. 2,200 168,025
FOREST PRODUCTS - PAPER: 2.2%
Louisiana-Pacific Corporation 2,000 $48,250
Stone Container Corporation 4,500 85,500
HOUSING AND CONSTRUCTION: 8.5%
*American Buildings Company 3,000 70,875
Clayton Homes, Inc. 6,250 148,437
Continental Homes Holding
Corporation 3,500 73,500
Oakwood Homes Corp. 4,200 148,050
Shelter Components Corporation 5,000 71,875
INSURANCE: 2.4%
American International Group, Inc. 750 63,750
PXRE Corporation 3,000 81,000
MEDICAL SUPPLIES AND SERVICES: 3.1%
Olsten Corporation 2,500 97,187
*Safeskin Corporation<F2> 5,000 88,750
METALS AND MINING: 1.7%
*Magma Copper Company<F2> 5,500 103,125
RAILROADS: 1.1%
Union Pacific Corporation 1,000 66,250
RESTAURANTS: 1.9%
McDonald's Corporation 3,000 114,750
RETAIL-DEPARTMENT STORES: 1.3%
*Consolidated Stores
Corporation<F2> 3,500 80,937
RETAIL-SPECIAL LINES: 3.6%
Callaway Golf Company 2,500 38,750
*General Nutrition Companies,
Inc.<F2> 4,000 181,000
TELECOMMUNICATIONS: 3.0%
AT&T Corporation 2,000 131,500
MCI Communications Corporation 1,900 49,519
TOTAL COMMON STOCKS (Cost $3,921,016)<F3> 5,555,575
REPURCHASE AGREEMENT: 8.3% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 9/29/95 at 6.25%, due 10/2/95
collateralized by $514,143 United States Treasury
Bills due 11/16/95. Total proceeds at maturity
are $504,263. (Cost $504,000)<F3> 504,000
TOTAL INVESTMENTS (Cost $4,425,016)<F3> $6,059,575
See Notes to Portfolio of Investments.
<PAGE>
Equity Income Portfolio
Portfolio of Investments - September 30, 1995
(Unaudited)
Number
of
Shares Value
COMMON STOCKS AND EQUIVALENTS: 92.7% of Net Assets
BANKING AND FINANCIAL SERVICES: 14.5%
Bank of New York Company, Inc. 2,000 $93,000
Crestar Financial Corporation 1,000 55,875
Federal Home Loan Mortgage
Corporation 1,500 103,688
H&R Block, Inc. 1,500 57,000
J.P. Morgan & Company, Inc. 1,800 139,275
NationsBank Corporation 2,000 134,500
CHEMICALS: 7.9%
Chemed Corporation 2,500 88,437
Monsanto Company 1,200 120,900
WD-40 Company 2,600 110,500
ELECTRONICS: 1.7%
Diebold, Inc. 1,500 69,562
HOUSEHOLD PRODUCTS: 3.0%
Clorox Company 1,700 121,337
INSURANCE: 4.7%
Cigna Corporation 700 72,887
St. Paul Companies, Inc. 2,000 116,750
LEASING: 3.0%
GATX Corporation 2,300 119,025
METALS - DIVERSIFIED: 2.3%
Phelps Dodge Corporation 1,500 93,938
MANUFACTURING: 2.8%
Minnesota Mining & Manufacturing
Company 2,000 113,000
NATURAL GAS: 5.2%
Tenneco, Inc. 2,000 92,500
Williams Companies, Inc. 3,046 118,794
OFFICE AND BUSINESS EQUIPMENT: 2.1%
Pitney-Bowes, Inc. 2,000 84,000
PETROLEUM: 6.2%
Amoco Corporation 2,000 128,250
Royal Dutch Petroleum Company 1,000 122,750
PHARMACEUTICALS: 4.0%
American Home Products Corporation 1,000 84,875
Pfizer, Inc. 1,400 74,725
PUBLISHING AND PRINTING: 1.4%
Dun & Bradstreet Corporation 1,000 57,875
REAL ESTATE: 4.0%
Post Properties, Inc. 1,500 46,500
Simon Property Group, Inc. 1,500 38,063
Sun Communities, Inc. 3,000 78,000
RETAIL - DEPARTMENT STORE: 2.2%
May Department Stores Company 2,000 $87,500
TELECOMMUNICATION: 13.0%
Ameritech Corporation 1,800 93,825
Bell Atlantic Corporation 1,000 61,375
Pacific Telesis Group 2,000 61,500
SBC Communications, Inc. 2,500 137,500
Sprint Corporation 2,000 70,000
Telecom Corporation of New Zealand
Limited, ADR<F1> 1,600 98,800
TRANSPORTATION: 3.6%
CSX Corporation 1,000 84,125
Norfolk Southern Corporation 800 59,800
UTILITIES - ELECTRIC: 4.6%
Baltimore Gas and Electric Company 4,600 119,025
Scana Corporation 2,800 67,200
UTILITIES - GAS: 6.5%
Brooklyn Union Gas Company 3,000 73,875
Northwest Natural Gas Company 3,500 107,844
Washington Gas Light Company 4,000 79,500
TOTAL COMMON STOCKS AND EQUIVALENTS
(Cost $2,826,851)<F3> 3,737,875
PREFERRED STOCKS: 1.3% of Net Assets
Chase Manhattan Corporation,
9.08% Series J 1,000 26,125
Sears, Roebuck and Company
Depository Shares, 8.88%
Series 1st 1,000 25,813
TOTAL PREFERRED STOCKS (Cost $50,000)<F3> 51,938
REPURCHASE AGREEMENT: 5.7% of Net Assets
With Donaldson, Lufkin & Jenrette Securities
Corporation issued 9/29/95 at 6.25%, due 10/2/95
collateralized by $234,629 United States
Treasury Bills due 11/16/95. Total proceeds
at maturity are $230,120. (Cost $230,000)<F3> 230,000
TOTAL INVESTMENTS (Cost $3,106,851)<F3> $4,019,813
Notes to the Portfolios of Investments:
[FN]
<F1>ADR American Depository Receipt
<F2>* Non-income producing
<F3>Aggregate cost for federal income tax purposes and net
unrealized appreciation of investments is as follows:
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
Aggregate cost $23,135,749 $4,425,016 $3,106,851
Gross unrealized
appreciation $11,169,427 $1,693,536 $ 956,706
Gross unrealized
depreciation 1,717,423 58,975 43,744
Net unrealized
appreciation $9,452,004 $1,634,559 $912,962
The Notes to Financial Statments are an integral part of
these statements.
<PAGE>
Statements of Assets and Liabilities
September 30, 1995
(Unaudited)
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
ASSETS
Investments, at cost $23,135,749 $4,425,016 $3,106,851
Investments, at value
(Notes 1 and 2)
Investment securities $28,786,753 $5,555,575 $3,789,813
Repurchase agreement 3,801,000 504,000 230,000
Total investments 32,587,753 6,059,575 4,019,813
Cash 320 813 787
Receivables
Share subscriptions -- 43,500 --
Dividends and interest 29,579 4,658 13,050
Other assets 75 9 36
Total assets 32,617,727 6,108,555 4,033,686
LIABILITIES
Payables
Dividends 6 -- 3,083
Capital shares redeemed 24,099 9,761 --
Shares reserved for
subscription -- 43,500 --
Other liabilities 131 24 24
Total liabilities 24,236 53,285 3,107
NET ASSETS (Note 5) $32,593,491 $6,055,270 $4,030,579
CAPITAL SHARES
OUTSTANDING 1,607,187 289,899 232,533
NET ASSET VALUE PER SHARE $20.280 $20.888 $17.333
Statements of Operations
For the Six Months Ended September 30, 1995
(Unaudited)
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
INVESTMENT INCOME (Note 1)
Interest income $128,078 $16,230 $8,898
Dividend income 201,502 25,842 71,174
Total investment income 329,580 42,072 80,072
EXPENSES (Notes 3 and 4)
Investment advisory fee 121,992 19,798 14,036
Custodian fees 5,921 1,063 802
Professional fees 9,932 3,712 3,246
Salaries and related
expenses 55,142 9,882 7,456
Securities registration
and blue sky expenses 8,749 4,762 3,927
Telephone expense 3,288 594 446
Data processing and office
equipment expenses 17,235 3,959 2,969
Office and miscellaneous
expenses 9,779 2,497 2,200
Depreciation and
amortization 1,772 312 237
Total expenses 233,810 46,579 35,319
NET INVESTMENT
INCOME (LOSS) 95,770 (4,507) 44,753
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss)
on investments 1,545,631 (33,381) 48,257
Net unrealized
appreciation of
investments 2,058,693 1,221,186 388,727
NET GAIN ON INVESTMENTS 3,604,324 1,187,805 436,984
TOTAL INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $3,700,094 $1,183,298 $481,737
The Notes to Financial Statements are an integral part of
these statements.
<PAGE>
Statement of Changes in Net Assets
Special Growth Portfolio
Six Months Ended
Sept. 30, 1995 Year Ended
(Unaudited) March 31, 1995
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income (loss) $ 95,770 $ 266,540
Net realized gain (loss)
on investments 1,545,631 2,872,581
Net unrealized appreciation
(depreciation)
of investments 2,058,693 (2,105,062)
Total increase in net
assets resulting from
operations 3,700,094 1,034,059
NET EQUALIZATION
CREDIT (Note 1) -- --
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment income -- (266,540)
From net capital gains -- (5,447,258)
CAPITAL SHARE
TRANSACTIONS (Note 7) (2,696,319) 1,337,943
TOTAL INCREASE
(DECREASE)
IN NET ASSETS 1,003,775 (3,341,796)
NET ASSETS
Beginning of Period 31,589,716 34,931,512
End of Period $32,593,491 $31,589,716
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) INCLUDED IN
NET ASSETS AT
THE END OF PERIOD
(Note 5) 95,770 --
Select Growth Portfolio
Six Months Ended
Sept. 30, 1995 Year Ended
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income (loss) $ (4,507) $ (8,924)
Net realized gain (loss)
on investments (33,381) 445,885
Net unrealized appreciation
(depreciation)
of investments 1,221,186 (216,078)
Total increase in net
assets resulting from
operations 1,183,298 220,883
NET EQUALIZATION
CREDIT (Note 1) -- --
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment income -- --
From net capital gains -- (455,760)
CAPITAL SHARE
TRANSACTIONS (Note 7) 123,376 223,748
TOTAL INCREASE
(DECREASE)
IN NET ASSETS 1,306,674 (11,129)
NET ASSETS
Beginning of Period 4,748,596 4,759,725
End of Period $6,055,270 $4,748,596
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) INCLUDED IN
NET ASSETS AT
THE END OF PERIOD
(Note 5) (4,507) --
Equity Income Portfolio
Six Months Ended
Sept. 30, 1995 Year Ended
(Unaudited) March 31, 1995
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS
Net investment
income (loss) $ 44,753 $ 88,298
Net realized gain (loss)
on investments 48,257 65,516
Net unrealized appreciation
(depreciation)
of investments 388,727 47,919
Total increase in net
assets resulting from
operations 481,737 201,733
NET EQUALIZATION
CREDIT (Note 1) -- (427)
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment income (44,753) (111,973)
From net capital gains -- (170,493)
CAPITAL SHARE
TRANSACTIONS (Note 7) 181,086 (130,962)
TOTAL INCREASE
(DECREASE)
IN NET ASSETS 618,070 (212,122)
NET ASSETS
Beginning of Period 3,412,509 3,624,631
End of Period $4,030,579 $3,412,509
UNDISTRIBUTED NET
INVESTMENT INCOME
(LOSS) INCLUDED IN
NET ASSETS AT
THE END OF PERIOD
(Note 5) -- --
The Notes to Financial Statements are an integral part of
these statements.
<PAGE>
Financial Highlights
Selected data for a share outstanding thoughout each year:
Year ended
Mar. 31 1991 1992 1993 1994 1995 1995<F1>
Special Growth Portfolio
Net asset value
beginning of
year $17.634 $18.047 $19.099 $19.970 $21.110 $18.092
Net investment
income $0.287 $0.175 $0.092 $0.171 $0.152 $0.057
Net realized &
unrealized
gains
(losses) on
securities $0.502 $1.245 $1.031 $2.125 $0.190 $2.131
Total from
investment
operations $0.789 $1.420 $1.123 $2.296 $0.342 $2.188
Distributions
from net
investment
income $(0.376) $(0.159)$(0.121)$(0.170)$(0.152) --
Distributions
from capital
gains -- $(0.209)$(0.131)$(0.986)$(3.208) --
Total
distribu-
tions $(0.376) $(0.368)$(0.252)$(1.156)($3.360) --
Net asset
value end
of year $18.047 $19.099 $19.970 $21.110 $18.092 $20.280
Total return 4.76% 7.92% 5.90% 11.57% 2.27% 24.17<F2>
Net assets end
of year
(thousands) $51,465 $58,867 $38,911 $34,931 $31,590 $32,593
Ratio of
expenses
to average
net assets 1.40% 1.39% 1.35% 1.45% 1.30% 1.43%<F2>
Ratio of net
investment
income to
average net
assets 1.82% 0.95% 0.44% 0.75% 0.76% 0.59%<F2>
Portfolio
turnover 6% 24% 13% 7% 4% 1%
Select Growth Portfolio
Net asset value
beginning of
year $17.105 $18.884 $19.670 $18.486 $17.706 $16.706
Net investment
income $0.400 $0.268 $0.137 $(0.053) $(0.032)$(0.016)
Net realized &
unrealized
gains
(losses) on
securities $2.031 $0.736 $1.410 $(0.318) $0.741 $4.198
Total from
investment
operations $2.431 $1.004 $1.547 $(0.371) $0.709 $4.182
Distributions
from net
investment
income $(0.498)$(0.218)$(0.175) $(0.007) -- --
Distributions
from capital
gains $(0.154) -- $(2.556) $(0.402) $(1.709) --
Total
distribu-
tions $(0.652)$(0.218) $(2.731) $(0.409) ($1.709) --
Net asset
value end
of year $18.884 $19.670 $18.486 $17.706 $16.706 $20.888
Total return 14.65% 5.28% 8.45% (2.05)% 4.55% 50.09<F2>
Net assets end
of year
(thousands) $3,917 $5,483 $5,742 $4,760 $4,749 $6,055
Ratio of
expenses
to average
net assets 2.00% 2.00% 2.00% 2.02% 1.90% 1.76%<F2>
Ratio of net
investment
income to
average net
assets 2.28% 1.44% 0.70% (0.27)% (0.19)% (0.17%)<F2>
Portfolio
turnover 12% 60% 125% 48% 82% 22%
Equity Income Portfolio
Net asset value
beginning of
year $14.661 $14.805 $15.117 $16.814 $15.809 $15.411
Net investment
income $0.627 $0.499 $0.416 $0.382 $0.504 $0.197
Net realized &
unrealized
gains
(losses) on
securities $0.298 $0.203 $1.961 $(0.543) $0.364 $1.922
Total from
investment
operations $0.925 $0.702 $2.377 $(0.161 ) $0.868 $2.119
Distributions
from net
investment
income $(0.781)$(0.390)$(0.449) $(0.352) $(0.504)$(0.197)
Distributions
from capital
gains -- -- $(0.231) $(0.492) $(0.762) --
Total
distribu-
tions $(0.781)$(0.390)$(0.680) $(0.844) ($1.266)$(0.197)
Net asset
value end
of year $14.805 $15.117 $16.814 $15.809 $15.411 $17.333
Total return 6.58% 4.74% 16.11 (1.08)% 6.04% 27.59<F2>
Net assets end
of year
(thousands) $2,709 $2,838 $3,315 $3,625 $3,413 $4,031
Ratio of
expenses
to average
net assets 2.25% 2.15% 2.19% 2.17% 2.07% 1.88%<F2>
Ratio of net
investment
income to
average net
assets 4.28% 3.47% 2.58% 2.27% 2.53% 2.39%<F2>
Portfolio
turnover 9% 32% 55% 34% 29% 2%
[FN]
<F1>Six month period ending September 30, 1995 (unaudited)
<F2>Annualized
The Notes to Financial Statements are an integral part of
these statements.
GIT Equity Trust
Notes to Financial Statements
September 30, 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.
<PAGE>
Notes to Financial Statements (continued)
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. 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 six months ended September 30, 1995, the sub-adviser
received fees of $61,361. 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
<PAGE>
Notes to Financial Statements (continued)
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
six months ended September 30, 1995, outside trustee fees
were $1,750 for each portfolio. At September 30, 1995,
certain officers, trustees, companies and individuals
affiliated with the Trust have investments in the Trust
aggregating 1.3% of the Special Growth Portfolio shares
outstanding, 1.1% 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 six months ended September 30,
1995, operating expenses of $111,818 for the Special Growth
Portfolio, $26,781 for the Select Growth Portfolio, and
$21,283 for the Equity Income Portfolio have been reimbursed
to BFIMC under the Services Agreement. As of September 30,
1995, expenses of $23,869 for the Select Growth Portfolio
and $48,868 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 $21,500,086 $4,469,576 $3,122,010
Undistributed net
investment income
(loss) 95,770 (4,507) --
Accumulated net realized
gains (losses) 1,545,631 (44,358) (4,393)
Net unrealized
appreciation of
investments 9,452,004 1,634,559 912,962
Total net assets $32,593,491 $6,055,270 $4,030,579
6. Investment Transactions. Purchases and sales of
securities other than short-term securities for the six
months ended September 30, 1995, were as follows:
Special Select Equity
Growth Growth Income
Portfolio Portfolio Portfolio
Purchases $ 310,150 $1,176,830 $217,580
Sales 2,517,548 1,202,973 77,772
<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 six months ended
September 30, 1995 and for the year ended March 31, 1995
were as follows:
Special Growth Portfolio
Period Ended
Sept. 30, 1995
(Unaudited) March 31, 1995
In Dollars
Shares sold $37,667,138 $164,683,514
Shares issued in
reinvestment
of dividends -- 5,232,976
Total shares issued 37,667,138 169,916,490
Shares redeemed (40,363,457) (168,578,547)
Net increase
(decrease) $(2,696,319) $1,337,943
In Shares
Shares sold 1,980,035 8,581,112
Shares issued in
reinvestment
of dividends -- 284,944
Total shares issued 1,980,035 8,866,056
Shares redeemed (2,118,929) (8,774,708)
Net increase
(decrease) (138,894) 91,348
Select Growth Portfolio
Period Ended
Sept. 30, 1995
(Unaudited) March 31, 1995
In Dollars
Shares sold $919,439 $1,165,448
Shares issued in
reinvestment
of dividends -- 443,606
Total shares issued 919,439 1,609,054
Shares redeemed (796,063) (1,385,306)
Net increase
(decrease) $123,376 $ 223,748
In Shares
Shares sold 49,721 68,987
Shares issued in
reinvestment
of dividends -- 28,074
Total shares issued 49,721 97,061
Shares redeemed (44,060) (81,565)
Net increase
(decrease) 5,661 15,496
Equity Income Portfolio
Period Ended
Sept. 30, 1995
(Unaudited) March 31, 1995
In Dollars
Shares sold $551,050 $ 297,518
Shares issued in
reinvestment
of dividends 40,144 269,709
Total shares issued 591,194 567,227
Shares redeemed (408,947) (698,189)
Net increase
(decrease) $182,247) $(130,962)
In Shares
Shares sold 33,772 19,179
Shares issued in
reinvestment
of dividends 2,386 18,114
Total shares issued 36,158 37,293
Shares redeemed (25,063) (45,132)
Net increase
(decrease) 11,095 (7,839)
<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. This prospectus does not constitute an
offering by the distributor in any jurisdiction in which such
offering may not be lawfully made.
GIT
GIT INVESTMENT FUNDS
1655 Fort Myer Drive
Arlington Virginia 22209
http://www.gitfunds.com
