REPORT TO STOCKHOLDERS
TO THE STOCKHOLDERS:
The Annual Report of Old Dominion Investors Trust, Inc. covers the 12
month period of our year from September 1, 1999 through August 31, 2000.
There were no factors, strategies, or techniques that materially affected
the Fund over the past year, Management continued to purchase good quality blue
chip stocks listed on the New York Stock Exchange. All securities that are
purchased for the Fund must have paid continuous dividends for at least 10
years. We believe this gives the Fund additional stability.
We focus on buying and adding stocks of companies with dividends and good
prospects for improving earnings.
The Fund, through August 31, 2000, received $271,471 from expired call
options ($.62 per share). This income is distributed to stockholders in the
form of cash distributions. We will continue to sell options on portfolio
securities as market conditions warrant. Management believes this is a good
strategy to achieve above average income. Otherwise, high yields are just not
to be found in many stocks.
The Fund will continue to seek out attractive investments that sell at
reasonable prices in relation to earnings.
Sincerely yours,
Cabell B. Birdsong
President, Investors Security Co., Inc.
Investment Advisor and Manager
James F. Hope
President, Old Dominion Investors
Trust, Inc.
October 15, 2000
<PAGE>
Comparison of the Change in a $10,000 Investment in Old Dominion Investors'
Trust and the Standard & Poors 500 Index of August 31, 2000
(PERFORMANCE GRAPH APPEARS HERE. SEE THE TABLES BELOW FOR PLOT POINTS.)
<TABLE>
<CAPTION>
Value at August 31, 1990 1991 1992 1993 1994
<S> <C> <C> <C> <C> <C>
Old Dominion Investors' Trust $ 9,600 $11,624 $12,239 $13,491 $14,289
Standard & Poors 500 Index $10,000 $12,691 $13,698 $15,784 $16,647
<CAPTION>
Value at August 31, 1995 1996 1997 1998 1999 2000
<S> <C> <C> <C> <C> <C> <C>
Old Dominion Investors' Trust $16,874 $19,288 $24,581 $24,478 $29,831 $27,410
Standard & Poors 500 Index $20,219 $24,003 $33,756 $36,488 $51,019 $59,345
</TABLE>
Average Annual Returns for the periods ended August 31, 2000*
1 Year 5 Year 10 Year
------ ------ -------
-11.78% 9.29% 10.61%
* Average annual return for the Fund assumes the purchase of shares at the
maximum offering price and the deduction of all fees and expenses
Performance and data represent past performance. Investment return and
principal value of an investment in the Fund will fluctuate. Your shares, when
redeemed, may be worth more or less than their original cost.
2
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
August 31, 2000
<TABLE>
<CAPTION>
Shares Value
--------- COMMON STOCKS: 91.9% ------------
<S> <C> <C>
Building Products: 0.4%
2,000 Armstrong Holding, Inc. $ 31,875
----------
Chemicals: 8.4%
9,500 Dow Chemical Company 248,781
6,500 E.I. du Pont de Nemours & Company 291,688
4,000 PPG Industries, Inc. 162,000
----------
Total 702,469
----------
Communications: 8.5%
3,550 AT & T Corp. 111,825
3,900 Motorola, Inc. 140,644
3,100 SBC Communications Inc. 129,425
7,700 Verizon Communications 335,913
----------
Total 717,807
----------
Computers: 7.1%
1,000 Hewlett-Packard Co. 120,750
2,600 International Business Machines Corp. 343,200
2,000 Texas Instruments Inc. 133,875
----------
Total 597,825
----------
Consumer Goods and Services: 6.5%
6,700 Eastman Kodak Co. 417,075
800 Johnson & Johnson 73,550
600 Quaker Oats Co. 40,762
400 Tiffany & Co. 16,650
----------
Total 548,037
----------
Energy Products: 7.1%
4,492 Exxon Mobil Corp. 366,659
2,000 TXU Corp. 69,875
3,100 Texaco Inc. 159,650
----------
Total 596,184
----------
Entertainment: 0.8%
1,700 Carnival Corp. 33,894
400 Time Warner Inc. 34,200
----------
Total 68,094
----------
Financial Services: 17.6%
7,400 Bank of America Corp. 396,363
100 Bank of New York Company, Inc. 5,244
7,550 Chase Manhattan Corp. 421,856
1,000 Fannie Mae 53,750
6,000 First Union Corp. 173,625
10,000 FleetBoston Financial Corp. 426,875
----------
Total 1,477,713
----------
Industrial Manufacturing: 15.5%
4,800 Alcoa Inc. 159,600
4,000 Caterpillar Inc. 147,000
5,400 General Electric Co. 316,913
5,300 Minnesota Mining & Manufacturing Co. 492,900
4,000 Weyerhaeuser Co. 185,250
----------
Total 1,301,663
----------
</TABLE>
3
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
August 31, 2000
<TABLE>
<CAPTION>
Shares Value
-------- ------------
<S> <C> <C>
Information Services: 10.2%
2,000 Automatic Data Processing, Inc. $ 119,250
100 Electronic Data Systems Corp. 4,981
2,000 Gannett Co., Inc. 113,250
3,400 McGraw-Hill Companies, Inc. 210,587
6,000 Pitney Bowes Inc. 219,375
11,600 Xerox Corp. 186,325
----------
Total 853,768
----------
Insurance: 1.3%
150 American International Group, Inc. 13,369
1,000 CIGNA Corp. 97,250
----------
Total 110,619
----------
Pharmaceutical: 4.3%
500 Bristol-Myers Squibb Company 26,500
2,700 Merck & Co., Inc. 188,662
1,500 Pfizer Inc. 64,875
2,100 Schering-Plough Corp. 84,262
----------
Total 364,299
----------
Retail: 4.1%
4,300 Gap, Inc. 96,481
1,200 Home Depot, Inc. 57,675
3,000 J.C. Penney Company, Inc. 42,000
3,300 Wal-Mart Stores, Inc. 156,544
----------
Total 352,700
----------
Transportation: 0.1%
100 Delta Air Lines Inc. 4,950
----------
Total common stocks (Cost $8,945,932) 7,728,003
----------
</TABLE>
4
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
August 31, 2000
<TABLE>
<CAPTION>
Principal Value
----------- ---------------
<S> <C> <C>
REPURCHASE AGREEMENT: 8.1%
UMB Bank N.A., 6.09%, dated 7/6/00, due 9/19/00, repurchase price
$108,358 (collateralized by U.S. Treasury Note, 5.625%, due
$107,000 5/15/01, market value $111,212) $ 107,000
UMB Bank N.A., 6.14%, dated 8/11/00, due 9/8/00, repurchase price
$94,449 (collateralized by U.S. Treasury Note, 5.75%, due 6/30/01,
94,000 market value $96,368) 94,000
UMB Bank N.A., 6.18%, dated 7/21/00, due 9/18/00, repurchase price
$108,084 (collateralized by U.S. Treasury Bill, due 10/5/00,
107,000 market value $110,349) 107,000
UMB Bank N.A., 6.18%, dated 8/25/00, due 9/1/00, repurchase price
$300,361 (collateralized by U.S. Treasury Note, 6.6625%, due
300,000 7/31/01, market value $305,816) 300,000
UMB Bank N.A., 6.02%, dated 6/6/00, due 9/16/00, repurchase price
$55,929 (collateralized by FNMA Note, 5.625%, due 3/15/01, market
55,000 value $57,143) 55,000
UMB Bank N.A., 6.17%, dated 7/28/00, due 9/15/00, repurchase price
$100,840 (collateralized by U.S. Treasury Note, 5.50%, due
100,000 12/18/00, market value $105,777) 100,000
------------
Total repurchase agreements (Cost $763,000) 763,000
------------
Total Investments in Securities
(Cost $9,708,932)* (Notes 1A and 2) 101.0% 8,491,003
Liabilities in Excess of Cash and Other Assets-Net (1.0%) (80,507)
----- ------------
Total Net Assets 100.0% $ 8,410,496
===== ============
* Cost for federal income tax purposes is $9,708,932 and net
unrealized depreciation consists of:
Gross Unrealized Appreciation $ 408,865
Gross Unrealized Depreciation (1,626,794)
------------
Net Unrealized Depreciation $ (1,217,929)
============
</TABLE>
See notes to financial statements
5
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
SCHEDULE OF OPTION CONTRACTS WRITTEN
August 31, 2000
<TABLE>
<CAPTION>
Number of
Contracts Value
----------- ---------
<S> <C> <C>
COVERED CALL OPTIONS:
18 AT&T Corp., October $65 $ 112
24 Alcoa Inc, January $40 2,925
10 Armstrong Holdings, Inc., September $25 62
37 Bank of America Corp., November $70 1,156
5 Bristol-Myers Squibb Co., September $65 32
5 CIGNA Corp., October $105 1,094
6 Carnival Corp., October $25 112
15 Chase Manhattan Corp., December $60 4,875
28 Chase Manhattan Corp., December $70 3,150
36 Dow Chemical Company, September $46.6 675
27 E.I. Du Pont de Nemours & Company, January $75 337
33 Eastman Kodak Co., October $70 1,444
18 Exxon Mobil Corp., October $95 225
5 Fannie Mae, December $65 484
60 FleetBoston Financial Corp., Jan $50 7,125
7 Gannett Co., Inc., October $75 175
10 Gap, Inc., December $35 250
5 Gap, Inc., December $40 94
30 General Electric Co., January $63.375 8,250
5 Hewlett-Packard Co., October $130 2,562
5 Home Depot, Inc., November $60 375
13 International Business Machines Corp., October $125 15,925
4 Johnson & Johnson, January $115 387
17 McGraw-Hill Companies, Inc., January $65 8,287
13 Merck & Co., Inc., October $80 731
25 Minnesota Mining & Manufacturing Co., October $100 5,312
20 Motorola, Inc., January $45 3,750
30 J. C. Penney Company, Inc., November $20 562
7 Pfizer Inc., December $50 788
20 Pitney Bowes Inc., January $60 376
25 Pitney Bowes Inc., January $60 469
6 Quaker Oats Co., October $85 150
7 SBC Communications Inc., October $55 131
5 SBC Communications Inc., October $60 63
5 Schering-Plough Corp., January $55 344
5 Schering-Plough Corp., January $60 188
25 Texaco Inc., January $70 937
15 Texas Instruments Inc., October $80 2,250
4 Tiffany & Co., November $50 475
4 Time Warner Inc., December $100 1,100
15 Wal-Mart Stores, Inc., December $70 375
10 Weyerhauser Co., January $60 688
10 Weyerhauser Co., October $65 63
10 Xerox Corp., January $25 375
-------
Total (premiums received $114,555) 79,240
-------
</TABLE>
6
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
SCHEDULE OF OPTION CONTRACTS WRITTEN
August 31, 2000
<TABLE>
<CAPTION>
Number of
Contracts Value
----------- -----------
<S> <C> <C>
PUT OPTIONS:
10 AT&T Corp., October $30 $ 1,125
3 American International Group, November $80 356
8 Carnival Corp., October $25 4,050
5 Delta Air Lines, Inc., October $50 1,563
5 Delta Air Lines, Inc., October $55 3,156
7 E.I. Du Pont de Nemours & Co., October $45 1,225
5 Electronic Data Systems Corp., September $40 125
5 Fannie Mae, September $55 969
5 Fannie Mae, September $50 1,063
5 General Electric Co., September $50 31
5 Home Depot Inc., November $50 2,125
3 Johnson & Johnson, October $95 1,631
5 McGraw-Hill Co., September $60 500
6 Pfizer Inc., September $45 1,238
5 SBC Communications Inc., October $45 1,875
6 Tiffany & Co., November $32.5 375
4 Time Warner Inc., September $75 50
4 Time Warner Inc., December $85 2,650
5 Wal-Mart Stores, Inc., December $50 2,625
3 Verizon Communications, October $50 2,025
--------
Total (premiums received $32,683) 28,757
--------
Total (premiums received $147,238)(Notes 1A, 1D and 3) $107,997
========
</TABLE>
See notes to financial statements
7
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (identified cost $9,708,932) (Notes 1A and 2) $ 8,491,003
Cash 24,768
Receivable for:
Dividends and interest 34,356
Fund shares sold 9,268
Prepaid expenses 14,593
Other assets 6,532
------------
Total assets 8,580,520
------------
LIABILITIES
Payable for securities purchased 35,343
Accrued expenses 26,684
Options written, at value (premiums received $147,238) (Note 3) 107,997
------------
Total liabilities 170,024
------------
NET ASSETS
(Applicable to 433,465 shares of capital stock outstanding; 500,000 shares of $12.50 par
value authorized) $ 8,410,496
============
Computation of offering price:
Net asset value and redemption price per share ($8,410,496 divided by 433,465 shares) $ 19.40
============
Offering price per share (100/96 of net asset value)* $ 20.21
============
*On investments of $100,000 or more the offering price is reduced.
Net assets consist of:
Paid-in capital $ 9,571,996
Undistributed net realized gain on investments 17,188
Net unrealized depreciation of investments (1,178,688)
------------
$ 8,410,496
============
</TABLE>
See notes to financial statements
8
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF OPERATIONS
Year ended August 31, 2000
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 212,703
Interest 16,010
------------
Total income 228,713
------------
Expenses
Investment management fee (Note 4) 46,552
Professional fees 14,412
Insurance expense 16,101
Printing shareholder reports 12,578
Directors' fees 9,600
Registration fees 3,724
Transfer agent expenses 68,607
Distribution expenses 12,966
------------
Total expenses 184,540
------------
NET INVESTMENT INCOME 44,173
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on option contracts written 271,471
Net realized gain on investments 170,857
Net change in unrealized depreciation of investments and option
contracts written (1,356,452)
------------
NET LOSS ON INVESTMENTS (914,124)
------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (869,951)
============
</TABLE>
See notes to financial statements
9
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31,
<TABLE>
<CAPTION>
2000 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income $ 44,173 $ 150,002
Net realized gain on option contracts written 271,471 242,218
Net realized gain on investments 170,857 643,552
Net change in unrealized depreciation of investments and option contracts written (1,356,452) 881,088
------------ ------------
Net increase (decrease) in net assets resulting from operations (869,951) 1,916,860
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income ($0.23 and $0.47 per share, respectively) (105,072) (191,934)
Distributions from net realized gain on investments ($2.09 and $3.60 per share,
respectively) (935,356) (1,444,092)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from the change in the number of
outstanding shares(a) (348,525) 1,492,484
------------ ------------
Total increase (decrease) in net assets (2,258,904) 1,773,318
NET ASSETS
Beginning of the period 10,669,400 8,896,082
------------ ------------
End of the period
(including undistributed net investment income of $ -0- and $60,899, respectively) $ 8,410,496 $ 10,669,400
============ ============
</TABLE>
<TABLE>
<CAPTION>
(a) Transactions in capital shares were as follows:
2000 1999
------------------------------ ----------------------------
Shares Amount Shares Amount
------------ --------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold 21,491 $ 451,601 41,777 $1,003,626
Shares issued in reinvestment of distributions from net
investment income and realized gain on investments and
options contracts written 38,138 794,505 55,419 1,246,738
------ ------------ ------ ----------
59,629 1,246,106 97,196 2,250,364
Shares redeemed (79,001) (1,594,631) (31,756) (757,880)
------- ------------ ------- ----------
Net increase (decrease) (19,372) $ (348,525) 65,440 $1,492,484
======= ============ ======= ==========
</TABLE>
See notes to financial statements
10
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
FINANCIAL HIGHLIGHTS
Year ended August 31,
<TABLE>
<CAPTION>
For a share outstanding throughout each period 2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period $ 23.56 $ 22.96 $ 26.81 $ 23.09 $ 21.52
------- ------- ------- ------- -------
Income (loss) from investment operations --
Net investment income 0.10 0.34 0.40 0.47 0.53
Net realized and unrealized gain (loss) on investments (1.94) 4.33 (0.38) 5.52 2.46
------- ------- ------- ------- -------
Total from investment operations (1.84) 4.67 0.02 5.99 2.99
------- ------- ------- ------- -------
Less distributions --
Distributions from net investment income 0.23 0.47 0.22 0.62 0.29
Distributions from net realized gains on investments 2.09 3.60 3.65 1.65 1.13
------- ------- ------- ------- -------
Total distributions 2.32 4.07 3.87 2.27 1.42
------- ------- ------- ------- -------
Net asset value, end of period $ 19.40 $ 23.56 $ 22.96 $ 26.81 $ 23.09
======= ======= ======= ======= =======
Total Return* (8.11)% 21.86% (0.42)% 27.44% 23.09%
Ratios/Supplemental Data
Net assets, end of period (in thousands) $10,669 $10,669 $ 8,896 $ 9,478 $ 7,793
Ratio to average net assets --
Expenses 1.99% 1.07% 1.08% 1.16% 1.30%
Net investment income 0.48% 1.47% 1.48% 1.88% 2.35%
Portfolio turnover rate 50% 87% 86% 86% 119%
</TABLE>
* Calculated without deduction of sales load.
See notes to financial statements
11
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(1) SIGNIFICANT ACCOUNTING POLICIES
Old Dominion Investors' Trust, Inc. (the "Trust") is registered under the
Investment Company Act of 1940 (the "1940 Act") as a diversified, open-end
management investment company. The primary investment objective of the Trust is
to seek income with long-term growth of capital being a secondary objective.
There can be no assurance that the Trust's objective will be achieved. The
Trust's assets are invested in marketable securities whose prices fluctuate.
Therefore, the value of the outstanding shares of the Trust are not fixed, but
vary with the daily changes in market value of those securities held in the
Trust's portfolio.
The following is a summary of the significant accounting policies followed
by the Trust:
Security Valuation. Portfolio securities which are traded on an exchange
are valued at the last reported sale price on the date of valuation. If
there is no reported sale then the valuation is based upon the mean between
the bid and ask prices. Securities for which reliable quotations are not
readily available are valued at fair market value as determined in good
faith by the Trust's Board of Directors. Short-term investments are valued
at cost which when combined with accrued interest equals fair market value.
Federal Income Taxes. The Trust intends to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
Security Transactions and Dividends. As is common in the industry, security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Interest income is recorded on the accrual basis.
Option Accounting Principles. When the Trust sells an option, the premium
received is recorded as a liability. Each day the option contract liability
is valued in accordance with the procedures for security valuations
discussed above. When an offsetting option is purchased (closing
transaction) or the option contract expires, the Trust realizes a gain or
loss and the liability related to such option contract is eliminated. When
an option is exercised, the Trust realizes a gain or loss from the sale of
the underlying security and the proceeds of the sale are increased by the
premiums originally received.
Use of Estimates. In preparing financial statements in accordance with
generally accepted accounting principles, management is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements, and revenues and expenses during the
reporting period. Actual results could differ from those estimates.
(2) INVESTMENTS
During the year ended August 31, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term notes, was $4,434,400
and $5,239,625, respectively.
12
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
August 31, 2000
(3) OPTIONS WRITTEN
A summary of option contracts written by the Trust during the year is as
follows:
<TABLE>
<CAPTION>
Calls Puts
-------------------------- -------------------------
Number of Option Number of Option
Options Premiums Options Premiums
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Options outstanding at beginning of year 712 $ 79,352 55 $ 6,440
Options written 2,491 344,319 110 36,707
Stock splits 49 -- 4 --
Options closed (92) (15,705) -- --
Options exercised (218) (35,761) (10) (4,024)
Options expired (2,258) (257,650) (55) (6,440)
------ ---------- --- --------
Options outstanding at end of year 684 $ 114,555 104 $ 32,683
====== ========== === ========
</TABLE>
At August 31, 2000, portfolio securities valued at $3,921,981 were subject
to covered call options written by the Trust.
At August 31, 2000, the Fund had repurchase agreements with a market value
of $463,000 which were held in a segregated account at its custodian bank to
cover the Fund's commitments under open put option contracts written.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investors Security Company, Inc. ("Investors Security") provides the Trust
with investment management and advisory services pursuant to an investment
advisory agreement and contract. Investors Security furnished all investment
advice, office space and salaries of personnel needed by the Trust.
Additionally, Investors Security has agreed to act as the Trust's registrar and
transfer agent and to bear all related costs associated with the registration
and transfer of the Trust's shares. As compensation for its services, the
Manager is paid a monthly fee which is equal to an annual rate of .50% of the
Trust's average net assets.
The Trust has adopted a Plan pursuant to Rule 12B-1 under the 1940 Act
(the "Plan"), whereby it may pay up to .25% of average daily net assets to its
principal underwriter, Investors' Security Company, Inc. ("ISC"), for expenses
incurred in the distribution of the Trust's shares. Pursuant to this Plan, ISC
is entitled to reimbursement for payments to securities dealers providing
shareholder services. Distribution expenses incurred by ISC were $12,966 for
the year ended August 31, 2000.
Investors Security is a registered securities broker/dealer and serves as
the Trust's principal underwriter. During the year ended August 31, 2000,
Investors Security received $3 in underwriter's concessions and $4,363 in
commissions as a retail dealer in the Trust's shares. Investors Security also
received $65,437 in brokerage commissions on the execution of certain of the
Trust's portfolio transactions.
Certain officers and directors of the Trust are also officers and/or
directors of Investors Security.
13
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of
Old Dominion Investors' Trust, Inc.
Suffolk, Virginia
We have audited the accompanying statement of assets and liabilities of
Old Dominion Investors' Trust, Inc., including the portfolio of investments and
schedule of option contracts written, as of August 31, 2000, the related
statement of operations for the year then ended, the statement of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for each of the four 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. The
financial highlights of Old Dominion Investors' Trust, Inc. for the year ended
August 31, 1996 were audited by other auditors whose report dated September 26,
1996, expressed an unqualified opinion on the financial highlights.
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
August 31, 2000, by correspondence with the custodian and brokers. Where
brokers did not reply to our confirmation requests, we carried out other
appropriate auditing procedures. 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
Old Dominion Investors' Trust, Inc. as of August 31, 2000, the results of its
operations for the year then ended, and the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended in conformity with generally
accepted accounting principles.
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
September 20, 2000
14
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
110 BANK STREET
SUFFOLK, VIRGINIA 23434
PHONE 757-539-2396 OLD DOMINION INVESTORS TRUST, INC.
----------------------------------
A mutual fund since 1951
Custodian
UMB Bank
928 Grand Avenue
Kansas City, Missouri 64141
Counsel
Kaufman & Canoles
Nations Bank Center
P.O. Box 3037
Norfolk, VA 23574
Auditors
Briggs, Bunting & Dougherty, LLP
Two Logan Square,
Suite 2121
Philadelphia, Pennsylvania 19103-4901
Manager, Underwriter
Investors' Security Company, Inc.
110 Bank Street
Suffolk, Virginia 23434
Phone: (757) 539-2396
Transfer Agent
PFPC Global Fund Services ANNUAL REPORT
3200 Horizon Drive AUGUST 31, 2000
P.O. Box 61503
King of Prussia, PA 19406-0903
Phone: (610) 239-4500
