OLD
DOMINION
INVESTORS TRUST, INC.
- ---------------------
A mutual fund since 1951
SEMI-ANNUAL REPORT
FEBRUARY 29, 2000
(unaudited)
<PAGE>
REPORT TO STOCKHOLDERS
TO THE STOCKHOLDERS:
This semi-annual report of The Old Dominion Investors' Trust, Inc. covers
the first 6-month period of the fiscal year from September 1, 1999 through
February 29, 2000. As of February 29, 2000, net assets of the Trust were
$8,527,507 and the per share net asset value of the Trust was $18.76. During
this period, distributions were made in the amount of $1.62 per share.
In the last six months, the Trust had a realized gain on expired put and
call options of $159,294. This additional income from options is paid out to
stockholders in the form of cash distributions. The earning power of the
Trust's Portfolio of securities will be increased to the extent that options
written by the Trust expire unexercised.
The Trust is looking for investments that will provide dividend income to
the stockholders, and also offer capital gains potential as well. We believe
that economic trends currently in place will continue for some time and that we
will be poised to benefit from them.
Sincerely yours,
James F. Hope
President, Old Dominion Investors
Trust, Inc.
Cabell B. Birdsong
Portfolio Manager, Secretary &
Treasurer
April 1, 2000
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000
<TABLE>
<CAPTION>
SHARES VALUE
- -------- COMMON STOCKS: 97.2% ------------
<S> <C> <C>
ALUMINUM: 1.5%
1,900 Alcoa Inc. $ 130,150
----------
BUILDING PRODUCTS: 0.4%
2,000 Armstrong World Industries Inc. 38,000
----------
CHEMICALS: 6.4%
2,500 Dow Chemical Co. 271,250
5,500 DuPont E.I. DeNemours & Co. 277,750
----------
Total 549,000
----------
COMMUNICATIONS: 11.0%
3,550 AT&T Corp. 175,503
6,000 Bell Atlantic Corp 293,625
4,400 GTE Corp. 259,600
1,000 Motorola Inc. 170,500
1,000 SBC Communications 38,000
----------
Total 937,228
----------
COMPUTERS: 3.1%
2,600 International Business Machines 265,200
----------
CONSTRUCTION EQUIPMENT: 1.6%
4,000 Caterpillar Inc. 140,250
----------
CONSUMER GOODS AND SERVICES: 8.0%
5,100 American Home Products Corp. 221,850
1,500 Colgate-Palmolive Co. 78,281
6,700 Eastman Kodak Co. 383,994
----------
Total 684,125
----------
ENERGY PRODUCTS: 7.1%
3,000 Conoco Inc. Class A 57,563
1,000 Conoco Inc. Class B 19,687
3,792 Exxon Mobil Corp. 285,585
5,100 Texaco Inc. 241,931
----------
Total 604,766
----------
FINANCIAL SERVICES: 17.4%
1,000 American Express Co. 134,187
7,400 BankAmerica Corp 340,862
5,700 Chase Manhattan Corp. 453,862
1,000 Federal National Mortgage Association 53,000
6,000 First Union Corp. 177,000
12,000 Fleet Boston Financial Group Inc. 327,000
----------
Total 1,485,911
----------
FOOD: 0.8%
1,300 Quaker Oats Co. 70,119
----------
INDUSTRIAL MANUFACTURING: 11.7%
2,500 General Electric Co. 330,469
4,500 Minnesota Mining & Manufacturing 396,563
4,000 PPG Industries Inc. 197,500
1,500 Weyerhauser Co. 76,969
----------
Total 1,001,501
----------
</TABLE>
3
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
FEBRUARY 29, 2000
<TABLE>
<CAPTION>
SHARES VALUE
- -------- ------------
<S> <C> <C>
INSURANCE: 3.9%
4,500 CIGNA Corp. $ 332,156
----------
MEDIA: 0.8%
1,000 Gannett Inc 65,188
----------
OFFICE EQUIPMENT: 10.0%
600 Hewlett-Packard Co. 80,700
9,000 Pitney Bowes Inc. 445,500
200 Texas Instruments, Inc. 33,300
13,600 Xerox Corp. 294,950
----------
Total 854,450
----------
PUBLISHING: 2.9%
4,900 McGraw-Hill Companies, Inc. 249,287
----------
PHARMACEUTICALS: 8.9%
500 Bristol-Meyers Squibb Co. 28,406
6,000 Lilly Eli & Co. 356,625
5,500 Merck & Co., Inc. 338,594
1,000 Schering-Plough Corp. 34,875
----------
Total 758,500
----------
RETAIL: 1.5%
2,600 Wal-Mart Stores Inc. 126,588
----------
Total common stocks (Cost $9,962,493) 8,292,419
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $9,962,493)* (NOTES 1A AND 2) 97.2% 8,292,419
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES-NET 2.8% 235,088
---------
TOTAL NET ASSETS 100.0% $ 8,527,507
===========
* Cost for federal income tax purposes is $9,962,493
and net unrealized depreciation consists of:
Gross Unrealized Appreciation $ 205,279
Gross Unrealized Depreciation (1,875,353)
-----------
Net Unrealized Depreciation ($ 1,670,074)
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
SCHEDULE OF OPTION CONTRACTS WRITTEN
FEBRUARY 29, 2000
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS VALUE
- ----------- ----------
<S> <C> <C>
COVERED CALL OPTIONS:
7 Alcoa Inc., March $85 $ 88
5 American Express Co., April $160 953
25 American Home Products Corp., March $55 313
18 AT&T Corp., April $60 1,688
30 Bell Atlantic Corp., April $70 375
5 Bristol-Meyers Squibb Co., April $70 234
20 Caterpillar Inc., August $50 1,438
26 Chase Manhattan Corp., April $90 5,038
22 CIGNA Corp., March $85 413
8 Colgate-Palmolive Co., May $70 100
13 Dow Chemical Co., April $120 163
27 DuPont E.I. DeNemours & Co., April $70 338
15 Eastman Kodak Co., April $70 187
15 Eastman Kodak Co., April $75 187
30 Eli Lilly & Co., April $75 1,125
20 Exxon Mobil Corp., March $90 250
5 Federal National Mortgage Association, March $70 62
30 First Union Corp, July $45 844
45 Fleet Boston Financial Corp., April $40 562
15 Fleet Boston Financial Corp., April $45 375
5 Gannett Inc., April $80 94
5 General Electric Co,, March $145 375
7 General Electric Co., April $140 3,325
22 GTE Corp, March $80 275
3 Hewlett-Packard Co., April $140 2,400
13 International Business Machines, March $130 244
25 McGraw-Hill Companies, Inc., May $65 781
27 Merck & Co., Inc., March $85 337
22 Minnesota Mining & Manufacturing, March $105 275
5 Motorola Inc., March $175 3,062
20 PPG Industries Inc., August $65 1,625
20 Pitney Bowes Inc., April $60 1,000
20 Pitney Bowes Inc., April $65 375
7 Quaker Oats Co., April $65 131
5 SBC Communications, March $45 62
10 Schering-Plough Corp., March $50 125
25 Texaco Inc., April $65 469
2 Texas Instruments Inc., March $145 4,925
13 Walmart Stores Inc., March $65 162
5 Weyerhauser Co., July $75 266
10 Xerox Corp., April $35 62
60 Xerox Corp., July $30 4,687
-------
Total (premiums received $67,841)(Notes 1A, 1D and 3) $39,790
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (identified cost $9,962,493) (Notes 1A and 2) $ 8,292,419
Cash 236,811
Receivable for:
Dividends and interest 26,541
Options sold 15,920
Capital stock sold 145
Prepaid expenses and other 37,491
------------
Total assets 8,609,327
------------
LIABILITIES
Option contracts written, at value (premiums received $67,841) (Note 3) 39,790
Payable for:
Securities purchased 35,426
Options purchased 1,022
Capital stock redeemed 5,582
------------
Total liabilities 81,820
------------
NET ASSETS
(Applicable to 454,446 shares of capital stock outstanding; 500,000 shares of $12.50 par
value authorized) $ 8,527,507
============
Computation of offering price:
Net asset value and redemption price per share ($8,527,507/454,446 shares) $ 18.76
============
Offering price per share (100/96 of net asset value)* $ 19.54
============
* On investments of $100,000 or more the offering price is reduced.
Net assets consist of:
Paid-in capital $ 9,975,089
Undistributed net investment income 9,437
Undistributed net realized gain on investments 185,004
Net unrealized depreciation of investments (1,642,023)
------------
$ 8,527,507
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 103,924
Interest 8,639
Other 64
-----------
Total income 112,627
-----------
Expenses
Investment management fee (Note 4) 24,684
Professional fees 6,299
Transfer Agent fee 15,950
Directors' fees 4,524
Insurance expense 7,820
Printing shareholder reports 3,249
Distribution expenses 5,779
Registration & filing fees 2,484
Other fees 102
-----------
Total expenses 70,891
-----------
NET INVESTMENT INCOME 41,736
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND OPTIONS WRITTEN
Net realized gain on option contracts written 159,294
Net realized gain on investments 160,763
Net change in unrealized depreciation of investments and option
contracts written (1,819,787)
-----------
NET LOSS ON INVESTMENTS (1,499,730)
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS ($ 1,457,994)
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
2000 1999
-------------- ---------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS
Net investment income $ 41,736 $ 150,002
Net realized gain on option contracts written 159,294 242,218
Net realized gain on investments 160,763 643,552
Net change in unrealized depreciation of investments and
option contracts written (1,819,787) 881,088
------------ ------------
Net increase (decrease) in net assets resulting from operations (1,457,994) 1,916,860
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income ($0.20 and $0.47 per share,
respectively) (93,198) (191,934)
Distributions from realized gain on investments ($1.42 and $3.60 per share,
respectively) (645,269) (1,444,092)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from the change in the number of
outstanding shares(a) 54,568 1,492,484
------------ ------------
Total increase (decrease) in net assets (2,141,893) 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 $9,437 and $60,899
respectively) $ 8,527,507 $ 10,669,400
============ ============
</TABLE>
(a) Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold 11,062 $ 242,558 41,777 $1,003,626
Shares issued in reinvestment of distributions from net
investment income and realized gain on investments and
options contracts written 26,179 562,811 55,419 1,246,738
------ ---------- ------ ----------
37,241 805,369 97,196 2,250,364
Shares redeemed (35,632) (750,801) (31,756) (757,880)
------- ---------- ------- ----------
Net increase 1,609 $ 54,568 65,440 $1,492,484
======= ========== ======= ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED AUGUST 31,
FEBRUARY 29, ------------------------------------------------------------
2000 1999 1998 1997 1996 1995
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ------------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <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 $ 19.64
-------- ------- ------- ------- ------- -------
Income from investment operations --
Net investment income 0.09 0.34 0.40 0.47 0.53 0.68
Net realized and unrealized gain (loss) on
investments (3.27) 4.33 (0.38) 5.52 2.46 2.67
-------- ------- ------- ------- ------- -------
Total from investment operations (3.18) 4.67 0.02 5.99 2.99 3.35
-------- ------- ------- ------- ------- -------
Less distributions --
Distributions from net investment income 0.20 0.47 0.22 0.62 0.29 0.78
Distributions from realized gains on investments 1.42 3.60 3.65 1.65 1.13 0.44
Distributions in excess of realized gains on
investments -- -- -- -- -- 0.25
-------- ------- ------- -------- -------- -------
Total distributions 1.62 4.07 3.87 2.27 1.42 1.47
-------- ------- ------- -------- -------- -------
Net asset value, end of period $ 18.76 $ 23.56 $ 22.96 $ 26.81 $ 23.09 $ 21.52
======== ======= ======= ======== ======== =======
TOTAL RETURN* (14.27)% 21.86% (0.42)% 27.44% 23.09% 18.05%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 8,528 $10,669 $ 8,896 $ 9,478 $ 7,793 $ 7,277
Ratio to average net assets --
Expenses 1.44% 1.07% 1.08% 1.16% 1.30% 1.39%
Net investment income 0.85% 1.47% 1.48% 1.88% 2.35% 3.42%
Portfolio turnover rate 25% 87% 86% 86% 119% 64%
</TABLE>
* Calculated without deduction of sales load.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2000 (UNAUDITED)
(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 six months ended February 28, 2000, the cost of purchases and
the proceeds from sales of securities, excluding short-term notes, was
$11,453,028 and $11,903,598, respectively.
10
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2000 (UNAUDITED)
(3) OPTIONS WRITTEN
A summary of option contracts written by the Trust during the six months
ended February 29, 2000 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 period 712 $ 79,352 55 $ 6,440
Options written 1,401 165,590 -- --
Options closed (55) (3,571) -- --
Options expired (1,200) (151,434) (55) (6,440)
Options exercised (146) (22,096) -- --
------ ---------- --- --------
Options outstanding at end of period 712 $ 67,841 -- $ --
====== ========== === ========
</TABLE>
As of February 28, 2000, portfolio securities valued at $3,597,794 were
subject to covered call options written by the Trust.
(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 $5,779 during
the six months ended February 28, 2000.
Investors Security is a registered securities broker/dealer and serves as
the Trust's principal underwriter. During the six months ended February 28,
2000, Investors Security received $16.29 in underwriter's concessions and
$5,253.05 in commissions as a retail dealer in the Trust's shares. Investors
Security also received $32,608.82 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.
11
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
110 BANK STREET
SUFFOLK, VIRGINIA 23434
PHONE 757-539-2396
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, INC.
3200 Horizon Drive
P.O. Box 61503
King of Prussia, PA 19406-0903
Phone: (610) 239-4500
