GIT Income Trust
Maximum Income Portfolio
Government Income Portfolio
Annual Report
March 31, 1995/Audited
GIT
GIT INVESTMENT FUNDS
<PAGE>
Management's Discussion of Fund Performance
May 15, 1995
Dear Shareholder:
The "bearish" tone of the bond market discussed in our last
report has given way to a more positive outlook as participants
now anticipate decelerating growth and the possibility of a "soft
landing" for the U.S. economy. Slowing economic growth, stable
employment, and little change in inflation have led to
expectations that the Federal Reserve's monetary tightening may
be coming to an end.
Reflecting the bond market's favorable reaction to these trends,
the yield on 30-year Treasury bonds fell from 7.82% on September
30, 1994 to 7.43% on March 31, 1995. At the start of the fiscal
year on April 1, 1994, the yield on the 30-year bond had been
7.09%. As of this writing, the 30-year yield has fallen further
to 6.94%, as rising bond prices went on to recover a significant
portion of their 1994 losses.
However, yields increased during much of the fiscal year, hitting
their peak in late 1994 before the yield curve began to flatten
dramatically in December. Firm economic growth throughout 1994
led to expectations of higher inflation and further tightening by
the Federal Reserve. But in the first quarter of 1995, reported
data showed a slowing in auto and home sales. Inflation remained
contained at both the wholesale and retail level, and with signs
that the economy was slowing down bonds rallied as the market
concluded that the Federal Reserve was unlikely to raise rates
again soon.
The Government Portfolio had a strong first half as we maintained
a relatively short average maturity while interest rates rose.
We were too bearish in the second half, however, on expectations
of higher inflation, and for the fiscal year, we slightly
underperformed our peer group. The portfolio has since been
shifted from a "barbell" to a "ladder" structure, meaning that
our maturity mix is now more evenly distributed across the
spectrum from short- to long-term investments, rather than being
concentrated at the short and long ends. This change has
extended our average maturity, and has enabled us to capture some
of the improvement in prices for the intermediate maturities.
The current outlook for the bond market seems favorable, with low
inflation and moderating growth. While a weak dollar is of
concern for imported inflation, slow growth may dampen the rate
of price increases. Indeed, dollar support operations by foreign
central banks, particularly the Bank of Japan, have even
contributed to the demand for U.S. Treasury securities. This
demand has lowered yields, as U.S. dollars purchased in the open
market are reinvested in Treasury investments. However, longer
term securities appear to still offer value with attractive
"real" interest rates, in an environment of restrained inflation.
Furthermore, if the new Congress succeeds in eliminating the
federal deficit over a period of years, one of the major
influences holding real interest rates high will have been
eliminated.
We are pleased to report that our Maximum Income Portfolio
outperformed its peer group by over 200 basis points for the
fiscal year. Lipper Analytical Services ranked the Maximum
Income Portfolio 29th out of 99 funds in the High Current Yield
Fund category for the one-year period ending March 31, 1995.
<PAGE>
Our exposure to economically sensitive issues in the Maximum
Income portfolio enhanced our relative performance as many
companies in the steel, paper, and chemical areas reported
improving cash flows while the economy strengthened. Also
contributing to our good performance was our underweighting in
the gaming and emerging market sectors, which underperformed the
high yield market over the fiscal year.
The current environment for high yield investing remains
favorable from both a technical and fundamental viewpoint. On
the economic front, the Fed seems unlikely to slow the economy
further with additional tightening. Meanwhile, moderate growth
and inflation have contributed to declining longer term interest
rates. Cash flows into high yield mutual funds remain firm, with
over $2 billion in inflows since the start of the year as
measured by AMG data services. Issuance is at a reasonable pace
and with many lower-rated companies approaching investment grade
status, the available supply of high yield bonds may decrease.
With moderate economic growth and firm demand, high yield bonds
currently offer an attractive investment alternative.
We appreciate your confidence in GIT Investment Funds, and encourage you to
look at all 13 of our no-load offerings.
Sincerely,
(signature)
A. Bruce Cleveland
President
Comparison of Changes in the Value of a $10,000 Investment and the Shearson
Lehman Aggregate Bond Index
Depicted herein is a graphic presentation consisting of two charts comparing
the values of a $10,000 investment made to each of the portfolios against
the Shearson Lehman Aggregate Bond Index. 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 Maximum Income Portfolio: $21,468. Average Annual Total Returns:
1 year - 3.75 percent, 5 year - 9.14 percent and 10 year - 7.94 percent.
Value (as of March 31, 1995) of a $10,000 investment made on March 31, 1985
in the Government Portfolio: $23,522. Average Annual Total Returns:
1 year - 2.67 percent, 5 year - 7.50 percent and 10 year - 8.93 percent.
Corresponding value of the Shearson Lehman Aggregate Bond Index: $26,511
Past performance is not predictive of future performance.
<TABLE>
Average Annual Total Return
<CAPTION>
1 year 5 years 10 years
<S> <C> <C> <C>
Maximum Income Portfolio 3.75% 9.14% 7.94%
Government Portfolio 2.67% 7.50% 8.93%
</TABLE>
<PAGE>
Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees and Shareholders, the Maximum Income
Portfolio and the Government Portfolio, GIT Income Trust:
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of GIT
Income Trust (comprising, respectively, Maximum Income and
Government 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 Income 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.
Ernst & Young LLP
(signature)
Washington, DC
May 5, 1995
<PAGE>
<TABLE>
Maximum Income Portfolio
Portfolio of Investments - March 31, 1995
<CAPTION>
Credit Rating <F1> Principal
Moody's S&P<F2> Amount Value
<C> <C> <S> <C> <C>
CORPORATE DEBT SECURITIES:
86.6% of Net Assets
CABLE TELEVISION: 10.5%
B3 B Cablevision Systems Corporation,
Senior Subordinated Debentures,
9.875%, 2/15/13 $250,000 $238,750
Ba3 BB- Century Communications
Corporation, Senior Notes,
9.5%, 3/1/05 250,000 240,000
B1 B+ Viacom, Inc., Subordinated
Debentures, 8%, 7/7/06 250,000 226,250
CHEMICAL: 7.4%
B1 B NL Industries Inc., Senior
Secured Notes, 11.75%,
10/15/03 250,000 256,250
B1 B+ Uniroyal Chemicals Company
Inc., Senior Notes, 9%,
9/1/00 250,000 241,250
COMMUNICATIONS: 8.4%
B3 B- Chancellor Broadcasting Co.,
Senior Subordinated Notes,
12.5%, 10/1/04 250,000 250,000
Ba3 BB- Infinity Broadcasting
Corporation, Senior
Subordinated Notes, 10.375%,
3/15/02 60,000 62,100
B3 B- SFX Broadcasting, Inc., Senior
Subordinated Notes, 11.375%,
10/1/00 250,000 255,000
CONTAINERS: 3.8%
B2 B+ Owens-Illinois, Inc., Senior
Subordinated Notes, 10.5%,
6/15/02 250,000 252,500
FOREST & PAPER PRODUCTS: 14.9%
B2 B+ Container Corporation of America,
Guaranteed Senior Notes,
10.75%, 5/1/02 250,000 257,500
B1 B Riverwood International
Corporation, Senior
Subordinated Notes,
11.25%, 6/15/02 250,000 263,750
B1 B Stone Container Corporation,
Senior Notes, 9.875%, 2/1/01 250,000 242,500
B3 B- Wickes Lumber Company, Senior
Subordinated Notes, 11.625%,
12/15/03 250,000 237,500
GAMING: 9.3%
B2 B Aztar Corporation, Senior
Subordinated Notes, 11%,
10/1/02 400,000 391,000
B2 B+ Bally's Grand, Inc., First
Mortgage Notes, 10.375%,
12/15/03 250,000 234,375
HEALTHCARE: 3.8%
Ba3 B+ National Medical Enterprises,
Inc., Senior Subordinated
Notes, 10.125%, 3/1/05 250,000 256,563
HOMEBUILDING: 3.5%
B1 B Continental Homes Holding Corp.,
Senior Notes, 12%, 8/1/99 250,000 235,000
MANUFACTURING: 4.0%
Ba3 B+ American Standard Companies,
Inc., Senior Debentures,
11.375%, 5/15/04 250,000 271,250
RESTAURANTS: 3.4%
B3 B+ Carrols Corporation, Senior Notes,
11.5%, 8/15/03 250,000 230,000
RETAIL-GROCERY: 6.7%
Ba3 BB- Penn Traffic Company, Senior
Notes, 10.25%, 2/15/02 250,000 251,250
B3 B Super Markets General Holding
Co., Subordinated Notes,
11.625%, 6/15/02 200,000 198,000
STEEL: 7.2%
B1 B+ WCI Steel, Inc., Senior Notes,
10.5%, 3/1/02 250,000 241,250
B2 B Weirton Steel Corporation,
Senior Notes, 10.875%,
10/15/99 250,000 243,750
TEXTILES-APPAREL: 3.7%
Ba3 BB- Tultex Corporation, Senior
Notes, 10.625%, 3/15/05 250,000 250,000
TOTAL CORPORATE DEBT SECURITIES
(Cost $5,851,383) <F3> 5,825,788
REPURCHASE AGREEMENT:
11.0% of Net Assets
With Donaldson, Lufkin & Jenrette
Securities Corporation issued
3/31/95 at 6.15% due 4/3/95
collateralized by $751,831 in United
States Treasury Bills due 4/15/95.
Total proceeds at maturity are
$737,378. (Cost $737,000)<F3> 737,000
TOTAL INVESTMENTS
(Cost $6,588,383) <F3> $6,562,788
</TABLE>
See Notes to Portfolio of Investments.
<PAGE>
<TABLE>
Government Portfolio
Portfolio of Investments - March 31, 1995
<CAPTION>
Credit Rating <F1> Principal
Moody's S&P<F2> Amount Value
<C> <C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS:
92.5% of Net Assets
Aaa AA United States Treasury Bonds,
7.5%, 11/15/24 $1,000,000 $1,001,870
Aaa AAA United States Treasury Bonds,
7.625%, 2/15/25 1,000,000 1,021,560
Aaa AAA United States Treasury Notes,
4.25%, 12/31/95 1,000,000 984,690
Aaa AAA United States Treasury Notes,
7.125%, 2/29/00 1,000,000 1,001,410
Aaa AAA United States Treasury Notes,
7.75%, 2/15/01 1,000,000 1,029,690
Aaa AAA United States Treasury Notes,
7.5%, 2/15/05 2,000,000 2,040,620
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $7,047,237)<F3> 7,079,840
REPURCHASE AGREEMENT:
6.7% of Net Assets
With Donaldson, Lufkin & Jenrette
Securities Corporation issued
3/31/95 at 6.15%, due 4/3/95
collateralized by $522,303 in
United States Treasury Bills due
4/15/95. Proceeds at maturity are
$512,262. (Cost $512,000)<F3> 512,000
TOTAL INVESTMENTS (Cost $7,559,237)<F3> $7,591,840
Notes to Portfolio of Investments:
<FN>
<F1>
Unaudited
<F2>
Moody's Moody's Investors Service, Inc.
S&P Standard & Poor's Corporation
<F3>
Aggregate cost and net unrealized appreciation (depreciation) of investments for federal income tax purposes is as follows:
Maximum
Income Government
Portfolio Portfolio
Aggregate cost $6,588,383 $7,559,237
Gross unrealized
appreciation $60,320 $51,331
Gross unrealized
depreciation (85,915) (18,728)
Net unrealized
appreciation/
(depreciation) $(25,595) ($32,603
</FN>
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
<TABLE>
Statements of Assets and Liabilities
March 31, 1995
<CAPTION>
Maximum
Income Government
Portfolio Portfolio
<S> <C> <C>
ASSETS
Investments, at value (Notes 1 and 2)
(Cost $6,588,383 and $7,559,237,
respectively)
Investment securities $5,825,788 $7,079,840
Repurchase agreement 737,000 512,000
Total investments 6,562,788 7,591,840
Cash 400 43
Receivables
Interest 174,160 85,999
Share subscription (Note 1) 215 --
Total assets 6,737,563 7,677,882
LIABILITIES
Payables
Capital stock redeemed 1,571 22,402
Shares reserved for subscription
(Note 1) 215 --
Dividends 9,333 2,387
Other liabilities 57 104
Total liabilities 11,176 24,893
NET ASSETS (Note 5) $6,726,387 $7,652,989
CAPITAL SHARES OUTSTANDING 969,537 801,310
NET ASSET VALUE PER SHARE $6.938 $9.551
</TABLE>
<TABLE>
Statements of Operations
For the Year Ended March 31, 1995
<CAPTION>
Maximum
Income Government
Portfolio Portfolio
<S> <C> <C>
INVESTMENT INCOME (Note 1)
Interest income $715,636 $438,134
EXPENSES (Notes 3 and 4)
Investment advisory fee 44,235 48,356
Custodian 2,943 3,219
Professional fees 5,842 7,076
Salaries and related expenses 24,254 26,708
Securities registration and blue
sky expenses 9,109 9,102
Telephone expense 1,797 1,976
Data processing and office
equipment expenses 12,152 13,316
Office and miscellaneous expenses 6,905 7,468
Depreciation and amortization 695 767
Total expenses 107,932 117,988
NET INVESTMENT INCOME 607,704 320,146
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss on investments (740,266) (565,914)
Net unrealized appreciation
of investments 373,832 437,937
NET LOSS ON INVESTMENTS (366,434) (127,977)
TOTAL INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $241,270 $192,169
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
<TABLE>
Statements of Changes in Net Assets
For the Years Ended March 31
<CAPTION>
Maximum Income Government
Portfolio Portfolio
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS
Net investment
income $607,704 $623,864 $320,146 $339,266
Net realized gain
(loss) from
investments (740,266) 465,795 (565,914) 375,747
Net unrealized
appreciation
depreciation)
of investments 373,832 (671,323) 437,937 (497,921)
Total increase in
net assets
resulting from
operations 241,270 418,336 192,169 217,092
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment
income (607,704) (623,864) (320,146) (339,266)
From net capital
gains -- -- -- (712,303)
CAPITAL SHARE
TRANSACTIONS
(Note 7) (609,412) 578,826 (795,057) (323,809)
TOTAL INCREASE
(DECREASE) IN NET
ASSETS (975,846) 373,298 (923,034) (1,158,286)
NET ASSETS
Beginning of year 7,702,233 7,328,935 8,576,023 9,734,309
End of year $6,726,387 $7,702,233 $7,652,989 $8,576,023
</TABLE>
Financial Highlights
Selected data for a share outstanding throughout each year:
<TABLE>
Maximum 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 $7.285 7.455 7.255 6.775 7.181
Net investment
income $0.597 0.606 0.674 0.689 0.781
Net realized &
unrealized gains
(losses) on
securities $(0.347) (0.170) 0.200 0.480 (0.406)
Total from
investment
operations $0.250 0.436 0.874 1.169 0.375
Distributions from
net investment
income $(0.597) (0.606) (0.674) (0.689) (0.781)
Distributions from
capital gains -- -- -- -- --
Total
distributions $(0.597) (0.606) (0.674) (0.689) (0.781)
Net asset value
end of year $6.938 7.285 7.455 7.255 6.775
Total return 3.75% 5.89 12.69 18.08 5.91
Net assets
end of year
(in thousands) $6,726 7,702 7,329 6,456 5,405
Ratio of expenses
to average net
assets 1.52% 1.54 1.52 1.54 1.66
Ratio of net
investment
income to average
net assets 8.56% 8.02 9.26 9.95 11.57
Portfolio
turnover 243% 251 73 124 54
</TABLE>
<TABLE>
Government 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 $9.695 10.621 10.300 10.119 9.867
Net investment
income $0.391 0.363 0.501 0.654 0.710
Net realized &
unrealized gains
(losses) on
securities $(0.144) (0.151) 0.854 0.222 0.292
Total from
investment
operations $0.247 0.212 1.355 0.876 1.002
Distributions from
net investment
income $(0.391) (0.363) (0.501) (0.654) (0.710)
Distributions from
capital gains -- $(0.775)(0.533) (0.041) (0.040)
Total
distributions $(0.391) (1.138) (1.034) (0.695) (0.750)
Net asset value
end of year $9.551 9.695 10.621 10.300 10.119
Total return 2.67% 1.95 13.96 8.84 10.57
Net assets
end of year
(in thousands) $7.653 8,576 9,734 7,375 6,059
Ratio of expenses
to average net
assets 1.52% 1.54 1.52 1.53 1.65
Ratio of net
investment
income to average
net assets 4.12% 3.53 4.78 6.28 7.13
Portfolio
turnover 318% 287 357 123 116
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
GIT Income Trust
Notes to Financial Statements
March 31, 1995
1. Summary of Significant Accounting Policies. GIT Income 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
maintains two separate portfolios whose principal objectives are
to obtain high current income (under policies described in its
current prospectus). The Maximum Income Portfolio invests in
long-term debt securities which may include securities rated as
low as "Caa" or "CCC" by Moody's Investors Service, Inc. or
Standard & Poor's Corporation, respectively. The Government
Portfolio (prior to March 1, 1990, known as the A-Rated
Portfolio) invests in securities of the U. S. Government and its
agencies.
Securities Valuation: Securities having maturities of 60 days or
less are valued at amortized cost, which approximates market
value. Securities having longer maturities, for which market
quotations are readily available, are valued at the mean between
their bid and asked prices. Securities for which 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 income, net of amortization of
premium or discount, and other income (if any) are accrued as
earned.
Dividends and Income Tax: Net investment income, determined as
gross investment income less expenses, is declared as a regular
dividend each business day. Declared dividends are distributed
to shareholders or reinvested in additional shares as of the
close of business at the end of each month. 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. As of March 31, 1995, the Maximum
Income and Government Portfolios had available for federal income
tax purposes unused capital loss carryovers of $3,240,019 and
$566,489, respectively.
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 0.625% per annum of the average net assets
of each of the Trust's portfolios; the fees accrue daily and are
payable monthly. In order to meet the securities registration
requirements of certain states, the Adviser 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
<PAGE>
Notes to Financial Statements (continued)
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. The Adviser is responsible
for the fees and expenses of Trustees who are affiliated with the
Adviser, 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 $1,500 for each
Portfolio. At March 31, 1995, certain officers, Trustees,
companies and individuals affiliated with the Trust have
investments in the Trust aggregating 1.2% of the Maximum Income
Portfolio shares outstanding and 0.2% of the Government Portfolio
shares outstanding.
4. Other Expenses. With the exception of certain expenses of the
Trust payable by it directly, all support services are provided
to the Trust under a Services Agreement between the Trust and
BFIMC, pursuant to which such services are 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 $63,697 for the Maximum Income Portfolio
and $69,632 for the Government Portfolio have been reimbursed to
BFIMC under the Services Agreement. As of March 31, 1995,
expenses of $55,752 for the Maximum Income Portfolio and $69,998
for the Government Portfolio have been incurred by BFIMC on
behalf of the portfolios, the billings of which have been
deferred.
5. Net Assets. At March 31, 1995, net assets include the
following:
<TABLE>
<CAPTION>
Maximum Income Government
Portfolio Portfolio
<S> <C> <C>
Net paid in capital on
shares of beneficial
interest $9,992,001 $8,186,875
Accumulated net realized
losses (3,240,019) (566,489)
Net unrealized appreciation
(depreciation) of
investments (25,595) 32,603
Total net assets $6,726,387 $7,652,989
</TABLE>
In accordance with a recently approved accounting pronouncement
(Statement of Position 93-2), the Maximum Income Portfolio
reclassified $(5,846) from accumulated net realized losses to
paid in capital as a result of permanent book and tax basis
differences. This reclassification 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:
<TABLE>
<CAPTION>
Maximum Income Government
Portfolio Portfolio
<S> <C> <C>
Purchases $15,251,894 $21,443,945
Sales 17,342,000 21,774,336
</TABLE>
<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:
<TABLE>
<CAPTION>
Maximum Income Government
Portfolio Portfolio
1995 1994 1995 1994
<S> <C> <C> <C> <C>
In Dollars
Shares sold $3,563,512 $4,302,065 $1,891,049 $2,112,324
Shares issued in
reinvestment of
dividends 480,421 496,431 294,883 1,004,833
Total shares
issued 4,043,933 4,798,496 2,185,932 3,117,157
Shares redeemed (4,653,345) (4,219,670) (2,980,989) (3,440,966)
Net increase
(decrease) $(609,412) $578,826 $(795,057) $(323,809)
In Shares
Shares sold 510,956 567,543 200,394 204,384
Shared issued in
reinvestment of
dividends 69,036 65,944 31,146 98,878
Total shares
issued 579,992 633,487 231,540 303,262
Shares redeemed (667,780) (559,232) (314,806) (335,225)
Net increase
(decrease) (87,788) 74,255 (83,266) (31,963)
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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
