AMERICAN PENSION INVESTORS TRUST
YORKTOWN CLASSIC VALUE TRUST
SUPPLEMENT TO PROSPECTUS
DATED OCTOBER 1, 1997
The following supplements the discussion under the "Purchase of Fund Shares
- -Distribution Arrangements" on page 9 of the Prospectus:
Yorktown Distributors, Inc., the Fund's distributor, pays broker-dealers a
commission equal to 2% of the purchase price of Fund shares sold by them. No
commission, however, is paid to broker-dealers on purchases by accounts that
are subject to a waiver from the contingent deferred sales charge, described
below, nor is a commission paid on exchanges or certain reinvestments in Fund
shares.
The following supplements the discussion under "Contingent Deferred Sales
Charges" on page 12 of the Prospectus:
The contingent deferred sales charge will be waived for investors who acquire
shares of the Fund through an investment program that is not sponsored by
Distributors or its affiliates and that charges a fee for program services,
provided that the program sponsor has entered into a written agreement with
Distributors permitting the sale of shares at net asset value to the program.
Dated: October 1, 1997
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
P. O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(804) 846-1361
(800) 544-6060
API Trust ("Trust") is an open-end, management investment company that
currently consists of seven separate series. This Prospectus relates only to
shares of the Yorktown Classic Value Trust ("Fund"), a non-diversified series of
the Trust. Shares of the Fund are offered through Yorktown Distributors, Inc.
The Fund's minimum initial investment is $500; subsequent investments must be at
least $100.
The primary investment objective of the Fund is growth of capital; income
is a secondary objective. The Fund seeks to achieve these objectives by
investing primarily in equity securities that Yorktown Management & Research
Company, Inc., the Fund's investment adviser (the "Adviser"), believes are
undervalued in relation to the quality of the securities and the long-term
earning power of their issuers, regardless of short-term indicators. In
following this strategy, the Fund may invest in the securities of a fewer number
of issuers and, as a result, be subject to greater risks than many other
investment companies. The Fund is also permitted to borrow money in an amount up
to one-third of the value of its net assets for investment purposes. Such
borrowing constitutes leverage, a speculative technique that increases
investment risk. No assurance can be given that the Fund will achieve its
investment objectives.
This Prospectus sets forth concisely the information about the Trust and
the Fund that a prospective investor should know before investing. It should be
read and retained for future reference. A Statement of Additional Information,
dated October 1, 1997, has been filed with the Securities and Exchange
Commission and, as amended from time to time, is incorporated by reference
herein. It is available, at no charge, by contacting the Trust at the address or
telephone numbers provided above.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR
GUARANTEED BY, ANY BANK, NOR ARE THEY FEDERALLY INSURED OR OTHERWISE PROTECTED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY
OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE
COMMISSION OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
This Prospectus is dated October 1, 1997.
<PAGE>
TABLE OF CONTENTS
<TABLE>
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TOPIC PAGE
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PROSPECTUS SUMMARY.................................................................................... 3
INVESTMENT POLICIES................................................................................... 3
INITIAL/SUBSEQUENT INVESTMENTS AND REDEMPTIONS........................................................ 3
DIVIDENDS/OTHER DISTRIBUTIONS......................................................................... 3
RISK FACTORS.......................................................................................... 3
TABLE OF FUND EXPENSES................................................................................ 4
FINANCIAL HIGHLIGHTS.................................................................................. 5
INVESTMENT OBJECTIVES AND POLICIES.................................................................... 6
RISK FACTORS AND OTHER INVESTMENT PRACTICES........................................................... 6
Non-Diversified Status.............................................................................. 7
Leverage............................................................................................ 7
Hedging Strategies.................................................................................. 7
Foreign Securities.................................................................................. 8
Foreign Currency Transactions....................................................................... 8
Portfolio Turnover.................................................................................. 8
Temporary Investments and Other Policies............................................................ 9
MANAGEMENT OF THE FUND................................................................................ 9
PURCHASE OF FUND SHARES............................................................................... 9
Distribution Arrangements........................................................................... 9
How Shares May Be Purchased......................................................................... 10
Systematic Investment Plan.......................................................................... 10
Determining Net Asset Value......................................................................... 11
REDEMPTION OF FUND SHARES............................................................................. 11
How Shares May Be Redeemed.......................................................................... 11
Contingent Deferred Sales Charge.................................................................... 12
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES.............................................................. 12
Dividends and Other Distributions................................................................... 12
Taxation of the Fund................................................................................ 13
Taxation of Shareholders............................................................................ 13
Qualified Retirement Plans.......................................................................... 14
PERFORMANCE INFORMATION............................................................................... 14
FUND SHARES........................................................................................... 14
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT..................................................... 15
GENERAL INFORMATION................................................................................... 15
APPENDIX.............................................................................................. 16
</TABLE>
<PAGE>
PROSPECTUS SUMMARY
The following summary is qualified in its entirety by more detailed
information in the body of this Prospectus.
INVESTMENT POLICIES
The Fund seeks to achieve its objectives by investing primarily in equity
securities which the Adviser believes are undervalued in relation to the quality
of the securities and the long-term earning power of their issuers, regardless
of short-term indicators. The Fund invests primarily in the common stock of
companies listed on a national securities exchange or whose securities are
traded in the over-the-counter market. See "Investment Objectives and Policies".
INITIAL/SUBSEQUENT INVESTMENTS AND REDEMPTIONS
Shares of beneficial interest in the Fund may be purchased at the net asset
value per share next computed after receipt and acceptance of the order by Fund
Services, Inc., the Fund's transfer agent. The minimum initial investment is
$500; subsequent investments must be at least $100. See "How Shares May Be
Purchased". Shares may also be redeemed through Fund Services, Inc. Redemptions
made within five years of purchase generally will be subject to a contingent
deferred sales charge. See "How Shares May Be Redeemed".
DIVIDENDS/OTHER DISTRIBUTIONS
Dividends and other distributions are paid annually from the Fund's net
investment income and net capital gain. See "Dividends, Other Distributions and
Taxes".
RISK FACTORS
There can be no assurance that the Fund will achieve its investment
objectives. The Fund may invest in the securities of a fewer number of issuers
and, as a result, be subject to greater risks than many other investment
companies. The Fund may invest in foreign securities, which are subject to risks
relating to adverse political and economic developments abroad, fluctuations in
currency exchange rates and differing characteristics of foreign economies and
markets. Prior to investment an investor should consider the various types of
investments the Fund can make and the risks related to such investments. The
Fund may also engage in leveraging, thereby increasing its sensitivity to
changes in the value of its portfolio holdings. See "Investment Objectives and
Policies" and "Risk Factors and Other Investment Practices".
3
<PAGE>
TABLE OF FUND EXPENSES
The following tables are intended to assist investors in understanding the
expenses associated with investing in the Fund.
<TABLE>
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SHAREHOLDER TRANSACTION EXPENSES
Sales Load Imposed on Purchases................................................................... None
Sales Load Imposed on Reinvested Dividends........................................................ None
Maximum Contingent Deferred Sales Charge (as a percentage of net asset value)(1).................. 2%
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)(2)
Management Fees (after waivers)(3)................................................................. 0.75%
12b-1 Fees......................................................................................... 0.90%
Other Expenses..................................................................................... 1.00%
------
Total Fund Operating Expenses (after waivers)(3)................................................... 2.65%
</TABLE>
(1) The maximum 2% contingent deferred sales charge applies to redemptions
made within the first five years of purchase. No charge is imposed on
redemptions of shares held five years or longer. See "Redemption of Fund
Shares".
(2) "Annual Fund Operating Expenses" are based on operating expenses
incurred by the Fund for the fiscal year ended May 31, 1997. Long-term
shareholders may pay more in 12b-1 fees over time as a percentage of their
initial investment than the amount of the maximum front-end sales charge
permitted under the rules of the National Association of Securities Dealers,
Inc. ("NASD").
(3) The Adviser waived a portion of its advisory fees during the fiscal
year ended May 31, 1997. Without such waivers, Management Fees and Total Fund
Operating Expenses would have been 0.90% and 2.80, respectively.
EXAMPLE -- A shareholder would pay the following expenses on a $1,000 investment
over various time periods assuming a 5% annual rate of return.
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C>
Assuming a complete redemption at end of period(1) $ 47 $103 $ 142 $ 301
Assuming no redemption $ 27 $ 83 $ 142 $ 301
</TABLE>
(1) Assumes deduction at time of redemption of the maximum
applicable contingent deferred sales charge.
The Example assumes that all dividends and other distributions are
reinvested and that the percentage amounts listed under Annual Fund Operating
Expenses remain the same in the years shown. The 5% annual return assumed in the
Example is required by regulations of the Securities and Exchange Commission
("SEC") and is not a predication of, and does not represent, the projected or
actual performance of Fund shares. THE EXAMPLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES OF THE FUND MAY BE
GREATER OR LESS THAN THOSE SHOWN.
4
<PAGE>
FINANCIAL HIGHLIGHTS
The table below provides financial highlights for one share of the Fund for
the periods shown. A table follows that provides condensed information
concerning debt outstanding with respect to the Fund for the periods shown. This
information is supplemented by the financial statements and accompanying notes
appearing in the Statement of Additional Information. The financial statements
and notes have been audited by Coopers & Lybrand L.L.P., independent certified
public accountants, whose report thereon is also included in the Statement of
Additional Information. The financial highlights appearing below were derived
from financial statements audited by Coopers & Lybrand L.L.P.
<TABLE>
<CAPTION>
FOR THE YEAR/PERIOD
ENDED MAY 31,
------------------------------------------------
1997 1996 1995 1994 1993(1)
------- ------ ------ ------- ------
<S> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR/PERIOD:
Net asset value, beginning of year/period $ 12.00 $12.98 $10.12 $ 10.34 $10.00
------- ------ ------ ------- ------
Income from investment operations:
Net investment income (0.25) (0.28) (0.28) 0.06 0.02
Net realized and unrealized gain (loss) on investments 2.69 0.93 3.33 (0.27) 0.32
------- ------ ------ ------- ------
Total income (loss) from investment operations 2.44 0.65 3.05 (0.21) 0.34
------- ------ ------ ------- ------
Distributions:
From net investment income (0.07) (0.01)
From net realized gain on security transactions (0.21) (1.63) (0.12)
------- ------ ------ -------
Total distributions (0.21) (1.63) (0.19) (0.01)
------- ------ ------ -------
Net asset value, end of year/period $ 14.23 $12.00 $12.98 $ 10.12 $10.34
------- ------ ------ ------- ------
------- ------ ------ ------- ------
Total return(3) 20.59% 6.36% 30.70% (2.04)% 5.88%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year/period (000's omitted) $13,060 $9,072 $6,490 $ 5,323 $3,353
Ratio of operating expenses to average net assets(4) 2.65% 2.68% 2.39% 1.99% 1.80%(2)
Ratio of total expenses to average net assets(5) 5.20% 6.22% 5.79% 4.49% 3.32%(2)
Ratio of net investment income (loss) to average net
assets (2.50)% (2.67)% (2.60)% 0.76% 0.42%(2)
Portfolio turnover rate 115% 145% 220% 170% 25%(2)
Average Commission rate paid 0.1650 N/A N/A N/A N/A
</TABLE>
- ---------------
(1) Commencement of operations was November 2, 1992.
(2) Annualized.
(3) Does not reflect contingent deferred sales charge.
(4) Without fees waived by the investment adviser and distributor, the
annualized ratio of operating expenses to average net assets would have been
2.80%, 2.87%, 2.95%, 2.69% and 2.76%, respectively.
(5) Without fees waived/reimbursed by the investment adviser and distributor,
the annualized ratio of total expenses to average net assets would have been
5.35%, 6.41%, 6.34%, 5.19% and 4.29%, respectively.
5
<PAGE>
DEBT OUTSTANDING
<TABLE>
<CAPTION>
AVERAGE DAILY AVERAGE DAILY
AMOUNT OF AMOUNT OF DEBT NO. OF SHARES AVERAGE AMOUNT
DEBT OUTSTANDING OUTSTANDING OUTSTANDING OF DEBT PER SHARE
FISCAL YEAR ENDED AT END OF PERIOD DURING THE PERIOD DURING THE PERIOD DURING THE PERIOD
- ----------------- ---------------- ----------------- ----------------- -----------------
<S> <C>
May 31, 1997 $5,017,490 $ 3,371,414 786,862 $4.28
May 31, 1996 4,497,303 3,370,113 619,171 5.44
May 31, 1995 2,638,565 2,346,536 499,195 4.70
May 31, 1994 2,357,355 2,001,443 442,797 4.52
May 31, 1993 897,354 550,057 203,424 2.70
</TABLE>
INVESTMENT OBJECTIVES AND POLICIES
The primary investment objective of the Fund is growth of capital; income
is a secondary objective. The Fund seeks to achieve its objectives by investing
primarily in equity securities which the Adviser believes are undervalued in
relation to the quality of the securities and the long-term earning power of
their issuers, regardless of short-term indicators.
The Adviser believes that investing in temporarily depressed securities of
sound, well-managed companies provides a greater potential for overall
investment return than investing in securities selling at prices that reflect
anticipated favorable developments. Securities may be undervalued because of
many factors, including general market decline, earnings decline, poor economic
conditions, tax losses or actual or anticipated unfavorable developments
affecting the issuer. Any or all of these factors may provide buying
opportunities at prices that compare favorably to historical or current
price-earnings ratios, book value, return on equity, or the prospects for the
companies in question.
The Fund invests primarily in the common stock of companies listed on a
national securities exchange or whose securities are traded in the
over-the-counter market. The Fund may also invest in preferred stock,
convertible preferred stock, convertible debentures, rights, warrants and
certain other instruments. See the Appendix for more information on convertible
securities, rights and warrants.
The Fund's primary investment objective is fundamental and may not be
changed without the affirmative vote of a majority of the Fund's outstanding
voting securities as defined in the Investment Company Act of 1940 ("1940 Act").
As described in the Statement of Additional Information, certain investment
limitations also may not be changed without shareholder approval. Unless
otherwise indicated, the Fund's secondary investment objective and all other
investment policies may be changed by the Trust's Board of Trustees without
shareholder approval.
All investments involve risks, and there can be no assurance that the Fund
will achieve its investment objectives. The Fund's net asset value per share
will fluctuate based upon changes in the value of its portfolio securities.
RISK FACTORS AND OTHER INVESTMENT PRACTICES
This section contains general information about certain securities the Fund
may invest in, the investment techniques the Fund may employ and the risks
relating to these practices.
6
<PAGE>
NON-DIVERSIFIED STATUS
The Fund is "non-diversified," as that term is defined in the 1940 Act, but
intends to qualify as a "regulated investment company" for federal income tax
purposes. This means, in general, that more than 5% of the Fund's total assets
may be invested in securities of one issuer, but only if, at the close of each
quarter of the Fund's taxable year, the aggregate amount of such holdings does
not exceed 50% of the value of its total assets and no more than 25% of the
value of its total assets is invested in the securities of a single issuer. To
the extent that the Fund's portfolio at times will consist of the securities of
a smaller number of issuers than if it were "diversified" (as defined in the
1940 Act), the Fund will at such times be subject to greater risk with respect
to its portfolio securities than an investment company that invests in a broader
range and number of securities, in that changes in the financial condition or
market assessment of a single issuer may cause greater fluctuation in the Fund's
total return and the price of the Fund's shares.
LEVERAGE
The Fund may engage in leveraging by borrowing up to one-third of the value
of its net assets for investment purposes. The 1940 Act requires the maintenance
of continuous asset coverage (that is, total assets including borrowings, less
liabilities exclusive of borrowings) of 300% of the amount borrowed. If the 300%
asset coverage should decline as a result of market fluctuations or other
reasons, the Fund may be required to sell some of its portfolio holdings within
three days to reduce the debt and restore the 300% asset coverage, even though
it may be disadvantageous from an investment standpoint to sell securities at
that time. Leveraging by the Fund may exaggerate the effect on net asset value
of any increase or decrease in the market value of the Fund's portfolio. Money
borrowed for leveraging will be subject to interest and related costs which may
or may not be recovered by appreciation of the securities purchased. The Fund
may also be required to maintain minimum average balances in connection with
such borrowing or to pay a commitment or other fee to maintain a line of credit;
either of these requirements would increase the cost of borrowing over the
stated interest rate. There can be no certainty that the Fund will be able to
borrow money when the Adviser seeks to do so or that it will be able to do so on
advantageous terms.
HEDGING STRATEGIES
The Fund may hedge its portfolio investments through the use of options,
futures contracts and options on futures contracts. The Fund may also hedge
currency risks associated with investments in foreign securities and in
particular may hedge its portfolio through the use of forward foreign currency
contracts. The objective of a hedging strategy is to protect a profit or offset
a loss in a portfolio security from future price erosion or to assure a definite
price for a security, stock index, futures contract, or currency. The Fund's
ability to use options, futures and forward foreign currency contracts may be
limited by market conditions, regulatory limits and tax considerations.
There are transactional costs connected with using hedging strategies. In
addition, the use of hedging strategies involves certain special risks,
including (1) imperfect correlation between the hedging instruments and the
securities or market sectors being hedged; (2) the possible lack of a liquid
secondary market for closing out a particular instrument; (3) the need for
additional skills and techniques beyond normal portfolio management; (4) the
possibility of losses resulting from market movements not anticipated by the
Adviser; and (5) possible impediments to effective portfolio management because
of the percentage of the Fund's assets segregated to cover its obligations.
7
<PAGE>
The Statement of Additional Information contains a more complete
description of the characteristics, risks and possible benefits of hedging
transactions. New financial products and risk management techniques continue to
be developed. The Fund may use these investments and techniques consistent with
its investment objectives and regulatory and tax considerations.
FOREIGN SECURITIES
The Fund may invest in foreign securities including common stocks,
preferred stock and common stock equivalents issued by foreign companies. The
Fund may also invest in American Depository Receipts, European Depository
Receipts and other securities convertible into securities of corporations based
in foreign countries. These securities provide a means for investing indirectly
in foreign equity or debt securities. See the Statement of Additional
Information for more information.
Investments in foreign securities involve risks relating to adverse
political and economic developments abroad as well as those that may result from
the differences between the regulation to which U.S. issuers are subject and
that applicable to foreign issuers. These risks may include adverse movements in
the market value of portfolio securities on days when the Fund's net asset value
is not determined, expropriation, withholding taxes on interest, confiscatory
taxation, limitations on the use or transfer of the Fund's assets and political
or social instability or diplomatic developments. These risks often are
heightened to the extent the Fund invests in issuers located in emerging markets
or a limited number of countries. Moreover, individual foreign economies may
differ favorably or unfavorably from the U.S. economy in such respects as growth
of gross national products, rate of inflation, capital reinvestment, resource
self-sufficiency and balance of payments position. Securities of many foreign
companies may be less liquid and their prices more volatile than securities
issued by comparable U.S. companies.
Additionally, because foreign securities ordinarily are denominated in
currencies other than the U.S. dollar, changes in foreign currency exchange
rates will affect the Fund's net asset value, the value of interest earned,
gains and losses realized on the sale of securities and net investment income
and capital gain, if any, to be distributed to shareholders by the Fund. If the
value of a foreign currency rises against the U.S. dollar, the value of the
Fund's assets denominated in that currency will increase; correspondingly, if
the value of a foreign currency declines against the U.S. dollar, the value of
the Fund's assets denominated in that currency will decrease. The exchange rates
between the U.S. dollar and other currencies are determined by supply and demand
in the currency exchange markets, international balances of payments,
governmental intervention, speculation and other economic and political
conditions. The costs attributable to foreign investing that the Fund must bear
frequently are higher than those attributable to domestic investing. For
example, the costs of maintaining custody of foreign securities exceed custodian
costs related to domestic securities.
FOREIGN CURRENCY TRANSACTIONS
When the Fund purchases or sells a security denominated in a foreign
currency, it may be required to settle the purchase transaction in the relevant
foreign currency or to receive the proceeds of the sale in the relevant foreign
currency. In either event, the Fund will be obligated to acquire or dispose of
the foreign currency by selling or buying an equivalent amount of U.S. dollars.
To effect the conversion of the amount of foreign currency involved in the
purchase or sale of a foreign security, the Fund may purchase or sell such
foreign currency on a "spot" (I.E. cash) basis.
PORTFOLIO TURNOVER
The Fund's portfolio turnover rate may vary from year to year and is not a
limiting factor when the Adviser considers portfolio changes appropriate. For
the fiscal years ended May 31, 1997 and 1996, the
8
<PAGE>
Fund's portfolio turnover rates were 115% and 145%, respectively. A high
portfolio turnover rate (100% or more) involves correspondingly greater
transaction costs, which will be borne directly by the Fund, and increases the
potential for short-term capital gains and taxes.
TEMPORARY INVESTMENTS AND OTHER POLICIES
Pending investment, for liquidity or when the Adviser believes market
conditions warrant a defensive position, the Fund temporarily may commit all or
any portion of its assets to cash or money market instruments, including
repurchase agreements. The Fund may invest up to 15% of its net assets in
illiquid securities and up to 10% of its total assets in securities of other
investment companies.
MANAGEMENT OF THE FUND
The Trust's Board of Trustees has overall responsibility for the operation
of the Trust. Pursuant to that responsibility, the Board has selected the
Adviser to act as investment adviser and administrator for the Fund. Services
provided by the Adviser include the provision of a continuous investment program
for the Fund and supervision of all matters relating to the operation of the
Fund. Among other things, the Adviser is responsible for making investment
decisions and placing orders to buy, sell or hold particular securities,
furnishing corporate officers and clerical staff and providing office space,
office equipment and office services. In allocating portfolio transactions, the
Adviser may take into account the receipt of research, analysis and advice and
similar services and the sale of Fund shares and may utilize Yorktown
Distributors, Inc., an affiliate of the Adviser. For its services, the Adviser
receives a monthly fee, calculated daily, payable at an annual rate of 0.90% of
the average daily net assets of the Fund. The investment advisory fee paid by
the Fund is higher than that paid by most investment companies.
The Adviser has acted as the investment adviser to the Fund since it
commenced operations on November 2, 1992. The Adviser, whose address is 2303
Yorktown Avenue, Lynchburg, Virginia 24501, was incorporated under the laws of
the State of Maryland in 1984, and is controlled by David D. Basten. In
addition, Mr. Basten currently serves as the Fund's portfolio manager and has
served in that capacity since commencement of the Fund's operations. He is also
the portfolio manager of the Trust's other series.
PURCHASE OF FUND SHARES
DISTRIBUTION ARRANGEMENTS
Yorktown Distributors, Inc. ("Distributors"), whose address is 2303
Yorktown Avenue, Lynchburg, Virginia 24501, is the distributor of shares of the
Fund. Distributors is an affiliate of the Adviser and is controlled by David D.
Basten.
Under a plan of distribution ("Plan") adopted by the Trust's Board of
Trustees pursuant to Rule 12b-1 under the 1940 Act, the Fund pays Distributors,
as compensation for Distributors' distribution activities with respect to the
Fund, a monthly fee at the annual rate of 0.65% of the average daily net assets
of the Fund. In addition, the Fund pays Distributors, as compensation for
Distributors' service activities with respect to the Fund and its shareholders,
a monthly fee at the annual rate of 0.25% of the average daily net assets of the
Fund.
As distributor of Fund shares, Distributors may spend such amounts as it
deems appropriate on any activities or expenses primarily intended to result in
the sale of the Fund's shares or the servicing and maintenance of shareholder
accounts, including compensation to employees of Distributors; compensation to
and expenses, including overhead and telephone and other communication expenses,
of Distributors and selected dealers who engage in or support the distribution
of shares or who service shareholder
9
<PAGE>
accounts; the costs of printing and distributing prospectuses, statements of
additional information, and reports for other than existing shareholders; the
costs of preparing, printing and distributing sales literature and advertising
materials; and internal costs incurred by Distributors and allocated by
Distributors to its efforts to distribute shares of the Fund such as office
rent, employee salaries, employee bonuses and other overhead expenses.
Distributors may also pay certain banks, fiduciaries, custodians for public
funds, investment advisers and broker-dealers a fee for administrative services
in connection with the distribution of Fund shares. Such fees would be based on
the average net asset value represented by shares of the administrators'
customers invested in the Fund. This fee is in addition to any commissions these
entities may receive from Distributors out of the fees it receives pursuant to
the Plan, and, if paid, will be reimbursed by the Adviser and not the Fund.
During the period it is in effect, the Plan obligates the Fund to pay fees
to Distributors as compensation for its distribution and service activities, not
as reimbursement for specific expenses incurred. Thus, even if Distributors'
expenses exceed its fees, the Fund will not be obligated to pay more than those
fees and, if Distributors' expenses are less than such fees, it will retain the
full fee and realize a profit.
HOW SHARES MAY BE PURCHASED
Application forms for the purchase of Fund shares can be obtained from
Distributors or from a broker-dealer which has entered into an agreement with
Distributors. The Fund's minimum initial investment is $500, and the minimum for
additional investments is $100. An exception to these minimums is granted for
payments made pursuant to special plans or if approved by Distributors. All
orders will be executed at the net asset value per share next computed after
receipt and acceptance by Fund Services, Inc., the Fund's transfer agent, of a
completed and signed purchase application together with a check to cover the
purchase.
The Fund does not impose a front-end sales load when Fund shares are
purchased; however, a broker-dealer may charge a fee for selling Fund shares. In
addition, Fund shares are subject to a contingent deferred sales charge payable
upon certain redemptions. The Trust and Distributors reserve the right to reject
any purchase order.
When Fund shares are initially purchased, an account is automatically
established for the shareholder. Any shares subsequently purchased or received
as a distribution are credited directly to the shareholder account. No share
certificates are issued unless specifically requested in writing to the Trust.
Certificates are issued in full shares only. In addition, no certificates are
issued for shares purchased by check until 15 business days have elapsed, unless
the Trust is reasonably assured that payment for the shares has been collected.
There is no charge for certificate issuance.
SYSTEMATIC INVESTMENT PLAN
Shareholders may purchase Fund shares through a Systematic Investment Plan.
Under the Plan, Fund Services, Inc., at regular intervals, will automatically
debit a shareholder's bank checking account monthly or quarterly in an amount of
$100 or more (subject to the $500 minimum initial investment), as specified by
the shareholder. The purchase of Fund shares will be effected at their offering
price at the close of normal trading on the New York Stock Exchange, Inc.
("NYSE") on or about the 15th day of the month. To obtain an application for the
Systematic Investment Plan, write to Distributors at the address shown on the
back cover of this Prospectus.
10
<PAGE>
DETERMINING NET ASSET VALUE
The net asset value of the Fund's shares is determined as of the close of
normal trading (currently 4:00 p.m., eastern time) on the NYSE each day that the
NYSE is open for business. The net asset value per share is computed by dividing
the value of the Fund's securities plus any cash and other assets (including
dividends accrued but not yet collected) minus all liabilities (including
accrued expenses) by the total number of Fund shares outstanding.
Fund assets are valued at current market value or, where unavailable, at
fair value as determined in good faith by or under the direction of the Board of
Trustees. All investments denominated in foreign currency are valued daily in
U.S. dollars on the basis of the then-prevailing exchange rate.
REDEMPTION OF FUND SHARES
HOW SHARES MAY BE REDEEMED
Fund shares may be redeemed by mailing redemption requests to the Fund's
transfer agent, Fund Services, Inc. at P.O. Box 26305, Richmond, Virginia 23260.
Upon receipt at the offices of Fund Services, Inc. of a redemption request in
"good order", the shares will be redeemed at the net asset value per share
computed at the close of normal trading on the NYSE on that day (subject to the
applicable contingent deferred sales charge described below).
A redemption request is considered in "good order" only if:
1. The dollar amount or number of shares to be redeemed is indicated.
2. The written request is signed by the registered owner and by any
co-owner of the account in exactly the same name or names used in
establishing the account.
3. Where share certificates have been issued, the written request must be
accompanied by such certificates for shares to be redeemed, properly
endorsed in form for transfer, and either the share certificates or
separate instructions of assignment (stock powers) are signed by each
registered owner and co-owner exactly as the shares are registered.
4. The signatures on any share certificates (or on accompanying stock
powers) are guaranteed by a member of the Securities Transfer Agents
Medallion Program ("STAMP"), the Stock Exchanges Medallion Program
("SEMP") or the New York Stock Exchange, Inc.'s Medallion Signature
Program ("MSP"). Signature guarantees from a notary public are not
acceptable.
Redemption requests received after the close of normal trading on the NYSE will
be executed at the net asset value per share next computed. The signature(s) on
all redemption requests of $10,000 or more must be guaranteed as described in
item 4 above.
Redemption proceeds will be forwarded by check within five days of the
receipt of a redemption request. If the shares to be redeemed were paid for by
check, then to allow clearance the redemption proceeds may be delayed for up to
15 days after the purchase date. The redemption proceeds may be more or less
than the original cost.
Other supporting legal documents may be required from corporations or other
organizations, fiduciaries or persons other than the stockholder of record
making the request for redemption. If there is a question concerning the
redemption of Fund shares, contact Distributors, your broker or Fund Services,
Inc.
Because of the high cost of maintaining small accounts, the Trust reserves
the right to redeem shareholder accounts of less than $100 net asset value
resulting from redemptions or exchanges. If the Trust
11
<PAGE>
elects to redeem such shares, it will notify the shareholder of its intention to
do so and provide the shareholder with the opportunity to increase the amount
invested to $100 or more within 30 days of notice.
CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge generally is imposed on redemptions of
all shares (including any shares received as a purchase bonus ("Bonus Shares"))
that were purchased within five years of the redemption date. The contingent
deferred sales charge is 2% of the lesser of (1) the net asset value of the
shares redeemed or (2) the cost of such shares. No contingent deferred sales
charge is imposed on amounts derived from (a) increases in the value of shares
redeemed above the original purchases price of such shares due to increases in
the net asset value per share of the Fund, (b) reinvestment of dividends or
capital gain distributions, or (c) shares redeemed five years or more after
their purchase. For purposes of the foregoing, in the event the redemption
involves any Bonus Shares, the cost of each share or original purchase price
shall be determined by allocating the price paid among the shares paid for by
the investor and the Bonus Shares.
The contingent deferred sales charge will be determined as follows:
2% of amounts redeemed in the first five years after the date of
purchase
0% of amounts redeemed thereafter
In determining whether a contingent deferred sales charge is payable and,
if so, the percentage charge applicable, it is assumed that shares held the
longest are the first to be redeemed.
With respect to purchases of Fund shares made prior to March 20, 1996, the
contingent deferred sales charge will not be imposed on redemptions by officers,
directors, full-time employees, and sales representatives of Yorktown Management
& Research Company, Inc. or Yorktown Distributors, Inc., to the extent permitted
by law, regulations, and/or interpretations. Fund shares also may be purchased
by certain employee benefit plans ("eligible benefit plans") without the
imposition of a contingent deferred sales charge. To be an eligible benefit
plan, there must be at least 100 initial participants with accounts investing or
invested in shares of the Fund. The initial purchase by the eligible benefit
plan by or for the benefit of the initial participants of the plan must
aggregate not less than $25,000 and subsequent purchases must be at least $100
per account and must aggregate at least $10,000. Purchases by the eligible
benefit plan must be made pursuant to a single order and may not be made more
often than monthly. A separate account will be established for each participant
in the plan. The requirements for initiating or continuing purchases pursuant to
an eligible benefit plan may be modified and the offering to such plans may be
terminated at any time without prior notice.
For federal income tax purposes, the amount of the contingent deferred
sales charge will reduce the gain or increase the loss, as the case may be, on
the amount realized on redemption. The amount of any contingent deferred sales
charge will be paid to Distributors.
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES
DIVIDENDS AND OTHER DISTRIBUTIONS
Dividends from the Fund's net investment income, if any, are distributed at
least annually. Any net capital gain (the excess of net long-term capital gain
over net short-term capital loss) realized from the sale of portfolio securities
and net realized gains from foreign currency transactions also are distributed
at least annually. Unless the Trust receives instructions to the contrary from a
shareholder before the record date, it will be assumed that the shareholder
wishes to receive both dividends and capital gain distributions in
12
<PAGE>
additional Fund shares. Instructions continue in effect until the Trust is
notified in writing that a change is desired. All reinvested dividends and
capital gain distributions are reinvested in additional shares of the Fund on
the payment date at their net asset value on that day. Account statements are
mailed to shareholders evidencing each reinvestment. If the Trust has received
instructions that a shareholder wishes to receive dividends and capital gain
distributions in cash, and the U.S. Postal Service cannot deliver a check
representing the payment thereof, or if any such check remains uncashed for six
months, the check(s) will be reinvested in Fund shares at the then current net
asset value per share of the Fund and the shareholder's election will be changed
so that future distributions will be received in additional Fund shares.
TAXATION OF THE FUND
The Fund is treated as a separate corporation for federal income tax
purposes and intends to continue to qualify for treatment as a regulated
investment company ("RIC")under the Internal Revenue Code of 1986, as amended
("Code"), so that it will be relieved of federal income tax on that part of its
investment company taxable income (consisting generally of net investment income
and net short-term capital gain) and net capital gain that is distributed to its
shareholders. To the extent, however, that the Fund does not distribute to its
shareholders by the end of any calendar year substantially all of its ordinary
income for that year and substantially all of its capital gain net income for
the one-year period ending on October 31 of that year, plus certain other
amounts, a 4% excise tax will be imposed on the Fund.
TAXATION OF SHAREHOLDERS
Dividends from the Fund's investment company taxable income are taxable to
its shareholders, other than tax-exempt entities (including individual
retirement accounts and qualified retirement plans), as ordinary income, whether
received in cash or reinvested in additional Fund shares, to the extent of the
Fund's earnings and profits. Distributions of the Fund's net capital gain, when
designated as such, are taxable to those shareholders as long-term capital
gains, whether received in cash or reinvested in additional Fund shares and
regardless of the length of time the shares have been held. Under the Taxpayer
Relief Act of 1997 ("Act"), different maximum tax rates apply to net capital
gain depending on the taxpayer's holding period and marginal rate of federal
income tax -- generally, 28% for gain on capital assets held for more than one
year but not more than 18 months and 20% (10% for taxpayers in the 15% marginal
tax bracket) on capital assets held for more than 18 months. The Act, however,
does not address the application of these rules to distributions by RICs,
including whether a RIC's holding period can be "passed through" to its
shareholders. Instead, the Act authorizes the issuance of regulations to do so.
Accordingly, shareholders should consult their tax advisers as to the effect of
the Act on distributions by the Fund to them of net capital gain.
The Fund advises its shareholders of the tax status of distributions
following the end of each calendar year. The Fund is required to withhold 31% of
all dividends, capital gain distributions and redemption proceeds payable to any
individuals and certain other noncorporate shareholders who do not provide the
Fund with a correct taxpayer identification number. Withholding at that rate
also is required with respect to shareholders who otherwise are subject to
backup withholding.
A redemption of Fund shares will result in taxable gain or loss to the
redeeming shareholder, depending upon whether the redemption proceeds are more
or less than the shareholder's adjusted basis for the redeemed shares. Capital
gain on the redemption of Fund shares held for more than one year will be long-
term capital gain, in which event it will be subject to federal income tax at
the rates indicated above. If a shareholder purchases Fund shares within thirty
days after redeeming other Fund shares at a loss, all or part of that loss will
not be deductible and instead will increase the basis of the newly purchased
shares.
13
<PAGE>
The foregoing is only a summary of some of the important federal tax
considerations generally affecting the Fund and its shareholders; see the
Statement of Additional Information for a further discussion. Because other
federal, state or local tax considerations may apply, investors are urged to
consult their tax advisers.
QUALIFIED RETIREMENT PLANS
An investment in shares of the Fund may be appropriate for individual
retirement accounts (including "education individual retirement accounts" and
"Roth IRAs," both available to certain taxpayers beginning in 1998), tax
deferred annuity plans under section 403(b) of the Code, self-employed
individual retirement plans (commonly referred to as "Keogh plans"), simplified
employee pension plans and other corporate retirement plans (including section
401(k) plans). Capital gain distributions and dividends received on Fund shares
held by any of these accounts or plans are automatically reinvested in
additional Fund shares, and taxation thereof is deferred until distributed by
the account or plan. Investors who are considering establishing such an account
or plan may wish to consult their attorneys or tax advisers with respect to
individual tax questions. The option of investing in these accounts or plans
through regular payroll deductions may be arranged with Distributors and the
employer.
PERFORMANCE INFORMATION
From time to time, quotations of the Fund's average annual total return
("Standardized Return") may be included in advertisements, sales literature or
shareholder reports. Standardized Return will show percentage rates reflecting
the average annual change in the value of an assumed initial investment of
$1,000, assuming the investment has been held for periods of one year, five
years and ten years as of a stated ending date. If a five and/or ten-year period
has not yet elapsed, data will be provided as of the end of a period
corresponding to the life of the Fund. Standardized Return reflects deduction of
the applicable contingent deferred sales charge imposed on a redemption of
shares held for the period and assumes that all dividends and capital gain
distributions were reinvested in shares of the Fund.
In addition, the Fund may include in advertisements, sales literature or
shareholder reports other total return performance data ("Non-Standardized
Return"). Non-Standardized Return shows a percentage rate of return encompassing
all elements of return (i.e., income and capital appreciation or depreciation);
and it assumes reinvestment of all dividends and capital gain distributions.
Non-Standardized Return may be quoted for the same or different periods as those
for which Standardized Return is quoted. Non-Standardized Return may consist of
cumulative total returns, average annual total returns, year-by-year rates or
any combination thereof. Cumulative total return represents the cumulative
change in value of an investment in the Fund for various periods. Average annual
total return refers to the annual compound rate of return of an investment in
the Fund. Non-Standardized Return does not reflect contingent deferred sales
charges and would be lower if such charges were included.
The total return of the Fund is increased to the extent that the Adviser
waives all or a portion of its advisory fee, or reimbursed all or a portion of
the Fund's expenses. Total return figures are based on historical performance of
the Fund, show the performance of a hypothetical investment and are not intended
to indicate future performance. Additional information about the Fund's
performance is contained in the Statement of Additional Information and the
Fund's annual report to shareholders, each of which may be obtained without
charge by contacting the Trust at the address or telephone numbers on the cover
of this Prospectus.
14
<PAGE>
FUND SHARES
The Trust was organized as a Massachusetts business trust in January 1985
under the name American Pension Investors Trust and is registered with the SEC
under the 1940 Act as an open-end management investment company. The Trust
currently consists of seven separate series: the Growth Fund, the T-1 Treasury
Trust, the Capital Income Fund, the Yorktown Classic Value Trust, the Yorktown
Value Income Trust, the Treasuries Trust and the Multiple Index Trust. The Board
of Trustees may elect to add additional series in the future, although it has no
present plan to do so. This Prospectus relates only to shares of the Yorktown
Classic Value Trust.
The Trust is authorized to issue an unlimited number of shares of
beneficial interest without par value of separate series. Shares of beneficial
interest of the Fund, when issued, are fully paid, nonassessable, fully
transferable, redeemable at the option of the shareholder and have equal
dividend and liquidation rights and noncumulative voting rights. The shares of
each series of the Trust will be voted separately except when an aggregate vote
of all series is required by the 1940 Act.
The Trust does not hold annual meetings of shareholders. There will
normally be no meetings of shareholders for the purpose of electing trustees
unless and until such time as less than a majority of the Trustees holding
office have been elected by shareholders, at which time the Trustees then in
office will call a shareholders' meeting for the election of Trustees. Under the
1940 Act, shareholders of record of no less than two-thirds of the outstanding
shares of the Trust may remove a Trustee by vote cast in person or by proxy at a
meeting called for that purpose. The Trustees are required to call a meeting of
shareholders for the purpose of voting upon the question of removal of any
Trustee when requested in writing to do so by the shareholders of record of not
less than 10% of the Trust's outstanding shares.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT
Custodial Trust Company, 101 Carnegie Center, Princeton, New Jersey
08540-6231 is the Fund's custodian. Fund Services, Inc., 1500 Forest Avenue,
Suite 111, Richmond, Virginia 23229, is the Fund's transfer and dividend
disbursing agent.
GENERAL INFORMATION
Fund shareholders are kept informed through semi-annual and annual reports.
Any inquiries should be directed in writing to the Trust at P.O. Box 2529, 2303
Yorktown Avenue, Lynchburg, Virginia 24501. Shareholders may direct general
telephone inquiries to the Trust at the numbers listed on the back cover of this
Prospectus. Telephone inquiries regarding shareholder account information should
be directed to the Fund's transfer agent at the number listed on the back cover
of this Prospectus.
15
<PAGE>
APPENDIX
DESCRIPTION OF SECURITIES
WARRANTS
Warrants are instruments that provide the owner with the right to purchase
a specified security, usually an equity security such as common stock, at a
specified price (usually representing a premium over the applicable market value
of the underlying equity security at the time of the warrant's issuance) and
usually during a specified period of time. Moreover, they are usually issued by
the issuer of the security to which they relate. While warrants may be traded,
there is often no secondary market for them. The Fund invests in publicly traded
warrants only. To the extent that the market value of the security that may be
purchased upon exercise of the warrant rises above the exercise price, the value
of the warrant will tend to rise. To the extent that the exercise price equals
or exceeds the market value of such security, the warrants will have little or
no market value. If warrants remain unexercised at the end of the specified
exercise period, they lapse and the Fund's investment in them will be lost. The
Fund may not invest more that 5% of its net assets in warrants.
CONVERTIBLE SECURITIES
The Fund may invest in a convertible security which is a bond, debenture,
note, preferred stock or other security that may be converted into or exchanged
for a prescribed amount of common stock of the same or a different issuer within
a particular period of time at a specified price or formula. A convertible
security entitles the holder to receive interest paid or accrued on debt or the
dividends paid on preferred stock until the convertible security matures or is
redeemed, converted or exchanged. Before conversion, convertible securities have
characteristics similar to nonconvertible debt securities in that they
ordinarily provide a stable stream of income with generally higher yields than
those of common stocks of the same or similar issuers. Convertible securities
rank senior to common stock in a corporation's capital structure but are usually
subordinated to comparable nonconvertible securities. While no securities
investment is without some risk, investments in convertible securities generally
entail less risk than the issuer's common stock, although the extent to which
such risk is reduced depends in large measure upon the degree to which the
convertible security sells above its value as a fixed income security.
Convertible securities have unique investment characteristics in that they
generally (1) have higher yields than common stocks, but lower yields than
comparable nonconvertible securities, (2) are less subject to fluctuation in
value than the underlying stock since they have fixed income characteristics and
(3) provide the potential for capital appreciation if the market price of the
underlying common stock increases.
The value of a convertible security is a function of its "investment value"
(determined by its yield comparison with the yields of other securities of
comparable maturity and quality that do not have a conversion privilege) and its
"conversion value" (the security's worth, at market value, if converted into the
underlying common stock). The investment value of a convertible security is
influenced by changes in interest rates, with investment value declining as
interest rates increase and increasing as interest rates decline. The credit
standing of the issuer and other factors also may have an effect on the
convertible security's investment value. The conversion value of a convertible
security is determined by the market price of the underlying common stock. If
the conversion value is low relative to the investment value, the price of the
conversion value decreases as the convertible security approaches maturity. To
the extent the market price of the underlying common stock approaches or exceeds
the conversion price, the price of the convertible security will be increasingly
influenced by its conversion value. In addition, a convertible security
generally will sell at a premium over its conversion value determined by the
extent to which
16
<PAGE>
investors place value on the right to acquire the underlying common stock while
holding a fixed income security.
A convertible security may be subject to redemption at the option of the
issuer at a price established in the convertible security's governing
instrument. If a convertible security held by the fund is called for redemption,
the fund will be required to permit the issuer to redeem the security, convert
it into the underlying common stock or sell it to a third party.
17
<PAGE>
YORKTOWN CLASSIC VALUE TRUST ACCOUNT APPLICATION
Please Make Checks Payable to and Addressed to: API TRUST
P.O. Box 26305, Richmond, Virginia 23260
For Questions Please Call: (800) 544-6060
Amount: $ Confirm #:
------------------------- -------------------------------
Minimum Initial Investment $500, Subsequent $100
ACCOUNT REGISTRATION
<TABLE>
<S> <C>
TYPE OF ACCOUNT CHECK ONE: [ ] [ ] JOINT [ ] GIFTS/TRANSFERS TO A [ ] TRUST [ ] BUSINESS
INDIVIDUAL TENANTS MINOR COMPLETE D COMPLETE E
COMPLETE A ONLY ONLY ONLY
COMPLETE A & B COMPLETE C ONLY
</TABLE>
A
<TABLE>
<S> <C>
- --------------------------------------------------- --- --- --- - --- --- - --- --- --- ---------------
First Name, Middle Initial, Last Name Social Security Number (Required) Date of Birth
B
- --------------------------------------------------- --- --- --- - --- --- - --- --- --- ---------------
First Name, Middle Initial, Last Name Social Security Number (Required) Date of Birth
</TABLE>
Joint account holders will be considered "joint tenants with rights of
survivorship" unless otherwise specified. Joint account holders may elect to
register their account as an "either/or" account. Such an election permits
shares to be redeemed and certain instructions to be honored upon the request of
any one of the account holders. By electing "either/or" status, checks or some
written requests with only one signature, from one tenant will be honored. If
"either/or" is elected, the joint account holders agree that the Fund, its
transfer agent and principal underwriter shall not be held liable for any loss
sustained as a result of complying with these instructions.
[ ] "Either/or" election [ ] All signatures required
C
<TABLE>
<S> <C>
- --------------------------------------------------- -------------------------
Custodian's Name (only one permitted) As Custodian For Minor's Name (only one permitted)
under the Uniform Gifts/Transfers to Minors Act.
----- ------------------------------------------ -----------------------
State Minor's Social Security Number (Required) Minor's Date of Birth
D
- --------------------------------------------------- ---------------------------------------------------
Name of Trustee Name of Trust
- --------------------------------------------------- ------------------------- -----------------------------
Name of Second Trustee (if any) Date of Trust (Required) Taxpayer Identification Number
(Required)
E
[ ] Corporation [ ] Partnership [ ] Other
- --------------------------------------------------- ---------------
Name of Business Specify
- --------------------------------------------------- ---------------------------------------------------
Taxpayer Identification Number Person to Contact Concerning Account
- --------------------------------------------------------------------------------
MAILING ADDRESS
- --------------------------------------------- --------------- --------------- ---------------
Street Address and Apartment Number or Box Number City State Zip Code
I am a: [ ] U.S. Citizen [ ] Resident Alien
------------------------------ ---------------------------
(Area Code) Day Phone (Area Code) Evening Phone
[ ] Non-Resident Alien
----------------------------
Please Specify Country
</TABLE>
(ADDITIONAL INFORMATION REQUIRED ON REVERSE)
<PAGE>
CORPORATE AND TRUST CERTIFICATION
I hereby certify: (i) that I am the duly qualified Secretary of , a
corporation duly organized and existing under the laws of , or (ii) that
is/are the currently acting trustee(s) of , and that all actions by
shareholders, directors, trustees and other bodies necessary to execute this
Application and establish an account with API Trust have been taken; and
further, that any one of the following officers or trustees, unless a greater
number is specified, is, and until further notice to API Trust, will be duly
authorized and empowered to purchase, sell, assign, transfer, and withdraw
securities and funds from the account established hereby.
Dated this day of , 19
----- ------------ -----
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature of Secretary or Trust Officer
If more than one signature is required on the account, please specify the number
of signatures required and identify the individuals below:
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature
</TABLE>
LIMITED AUTHORIZATION
I hereby authorize API Trust, its transfer agent and its principal underwriter
to transmit information (such as statements) and to honor redemption
instructions from the party designated below concerning my account:
Broker/Dealer [ ] Investment Adviser [ ]
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Firm Name Firm Address
( )
- ---------------------------------------------------- ----------------------------------------------------
Main Office Phone Number Client Securities Firm Account No.
- ---------------------------------------------------- ----------------------------------------------------
Registered Representative Name
</TABLE>
DISTRIBUTION OPTIONS
If no box below is checked, all distributions (dividends and capital gains) will
be reinvested in additional shares.
[ ] I would like all dividends and capital gains (if any) reinvested in my
account.
[ ] I would like all dividends and capital gains (if any) paid to me in cash.
[ ] I would like all dividends (if any) paid to me in cash and all capital gains
(if any) reinvested in my account.
AUTOMATIC INVESTMENT PLAN
Purchases through the Automatic Investment Plan are effected on the 15th day of
the month (or the following business day). Check one:
[ ] Monthly Investment [ ] Quarterly Investment
(March, June, September, December)
Amount of Systematic Investment $___________________ ($100 Minimum)
PLEASE ATTACH A VOIDED CHECK TO THIS APPLICATION.
SIGNATURES
I acknowledge receipt of a current prospectus of Yorktown Classic Value Trust
and agree to be bound by its terms and the terms set forth herein. As required
by law and under penalties of perjury, I certify that (1) the Social Security or
other taxpayer identification number (TIN) provided on this application is my
correct TIN, and (2) currently I am not under IRS notification that I am subject
to backup withholding. (Please strike out clause (2) if you are currently under
notification.)
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Applicant Date Joint Applicant Date
- ---------------------------------------------------- ----------------------------------------------------
Other Authorized Signature Date Other Authorized Signature Date
</TABLE>
<PAGE>
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISER
Yorktown Management & Research
Company, Inc.
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
DISTRIBUTOR
Yorktown Distributors, Inc.
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
TRANSFER AND DIVIDEND
DISBURSING AGENT
Fund Services, Inc.
P.O. Box 26305
Richmond, Virginia 23260
(800) 628-4077
CUSTODIAN
Custodial Trust Company
101 Carnegie Center
Princeton, New Jersey 08540-6231
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
250 West Pratt Street
Baltimore, Maryland 21201
No person has been authorized to give any information or to make any
representations not contained in this Prospectus in connection with the offering
made by this Prospectus and, if given or made, such information and
representations must not be relied upon as having been authorized by the Trust
or its distributor. This Prospectus does not constitute an offering by the Trust
or its distributor in any jurisdiction to any person to whom such offering may
not lawfully be made.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
PROSPECTUS
[YORKTOWN CLASSIC LOGO]
CLASSIC VALUES
THIS PROSPECTUS IS DATED OCTOBER 1, 1997
