YORKTOWN CLASSIC VALUE TRUST
SEMI-ANNUAL REPORT
[YORKTOWN Classic Values logo]
1996
<PAGE>
[YORKTOWN Classic Values logo]
Dear Shareholders,
Over the past twelve months, investors have experienced solid market growth with
all major investment markets rising to new records. Though there has been much
divergence of opinion over the direction of the economy and whether the markets
were fairly priced, our performance provided a sound foundation for superior
growth of your assets.
Stock prices received support from investors who saw signs that the economy was
sound and that corporate profitability was on a stable course. Despite the
Chairman of the Federal Reserve, Alan Greenspan's clouded appraisal of
short-term economic events, the markets applauded the period's low unemployment
figures, moderate commodity price increases and stable corporate growth with a
continuation of the bull market that began October 11, 1990.
As seasoned long-term investors, we observe short-term market conditions but we
don't react to them. We steadfastly maintained our course of accumulating
undervalued assets for long-term appreciation and growth.
In the first quarter of 1996, many political and economic forecasters concluded
that the economy was over-heated and due for a recession. Many industry groups
were forced into negative selling pressure during the first, second and third
quarters of this year, producing significant bargains for the Fund. As we are
long-term investors, these opportunities are rare and we had to overlook the
short-term negative aspects of these acquisitions. I am pleased to inform our
shareholders that the Fund has had a dramatic recovery in performance in the
fourth quarter of this year, and I think you will see many of the benefits of
the recent acquisitions continue for several years. Of course, past performance
is no guarantee of future results.
All of our positions are characterized by industry leadership and blue chip
quality. Listed below are our top five positions as of November 30, 1996:
PHELPS DODGE CORP
FMC CORP
CSX CORP
XEROX CORP
MORGAN STANLEY GROUP, INC
We believe investing is the most exciting business in the world because it
doesn't limit you to one fund, one market or one industry. We have great faith
in free markets in this country and in others, the fundamental soundness of our
global economy, and in the people who have started businesses from all over the
globe to make their fortunes. This is what makes great companies and great
investment opportunities.
Sincerely,
/s/ David D. Basten
- -------------------
David D. Basten
President
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
SCHEDULE OF INVESTMENTS
November 30, 1996
(Unaudited)
Shares Value
------- --------
COMMON STOCKS--100.00%
Aircraft & aerospace--1.35%
Boeing Company 1,700 $ 168,938
---------
Automobiles and trucks-- 4.06%
Chrysler Corp. 5,500 192,250
Ford Motor Co. 9,500 311,125
---------
506,375
---------
Banks--5.97%
J. P. Morgan & Co., Inc. 3,500 330,312
NationsBank Corp. 4,000 414,500
---------
744,812
---------
Building materials & equipment--2.82%
Owens Corning 8,200 351,575
---------
Candy & gum--1.56%
Hershey Foods Corp. 3,900 194,513
---------
Chemicals--15.66%
Air Products & Chemicals, Inc. 4,800 333,600
FMC Corp. 14,400 1,112,400
PPG Industries, Inc. 8,300 508,375
---------
1,954,375
---------
Computers--1.91%
International Business Machines, Inc. 1,500 239,062
---------
Copper--11.64%
Phelps Dodge 20,000 1,452,500
---------
Cosmetics & toiletries--1.46%
International Flavors & Fragrances, Inc. 4,000 182,000
---------
Drugs--3.24%
Bristol Myers Squibb Co. 1,800 204,750
Merck & Co., Inc. 2,400 199,200
---------
403,950
---------
Electrical equipment--3.17%
General Electric Co. 3,800 395,200
---------
Finance--9.31%
American Express Co. 6,800 355,300
Federal National Mortgage Association 9,400 387,750
KeyCorp 8,000 419,000
---------
1,162,050
---------
Food processing--1.20%
Kellogg Co. 2,200 149,325
---------
Hospitals & nursing homes--2.27%
Humana, Inc. 15,000 283,125
---------
Insurance--3.00%
Chubb Corp. 6,900 374,325
---------
Machinery & equipment--4.43%
Dover Corp. 7,000 373,625
Parker Hannifin Corp. 4,400 178,750
---------
552,375
---------
Office equipment & supplies--5.43%
Xerox Corp. 13,800 677,925
---------
Oil--3.54%
Amoco Corp. 5,700 442,463
---------
Paper--1.85%
Stone Container Corp. 15,000 230,625
---------
Railroads--6.29%
CSX Corp. 16,800 785,400
---------
Retail-department store--2.54%
May Department Stores Co. 6,500 316,875
---------
Securities brokerage-4.34%
Morgan Stanley Group, Inc. 9,000 541,125
---------
YORKTOWN CLASSIC VALUE TRUST
SCHEDULE OF INVESTMENTS
November 30, 1996
(Unaudited)
<PAGE>
Soaps & cleaners--1.49%
Procter & Gamble Co. 1,717 186,724
---------
Telecommunications--1.47%
GTE Corp. 4,100 183,987
---------
Total investments (cost $10,677,346) $12,479,624
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1996
(Unaudited)
Assets:
Investments at value (identified cost of $10,677,346) $12,479,624
Cash 15,008
Other assets 42,303
-----------
Total assets 12,536,935
-----------
Liabilities:
Accrued distribution fees 6,878
Accrued advisory fees 5,732
Securities purchased under loan agreement 2,742,476
Accrued interest expense 15,047
Other liabilities 840
-----------
Total liabilities 2,770,973
-----------
Net assets $ 9,765,962
===========
Shares of beneficial interest outstanding
(unlimited number of no par value shares authorized) 778,381
===========
Net asset value, offering and redemption price
per share outstanding $ 12.55
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF OPERATIONS
for the six months ended November 30, 1996
(Unaudited)
Investment income:
Dividends $ 117,249
Interest 566
---------
Total income 117,815
---------
Expenses:
Investment advisory fees 38,516
Distribution fees 38,516
Transfer agent fees 16,648
Custodial fees 3,641
Professional fees 10,404
Registration fees 7,907
Trustee fees 484
Insurance 2,589
Miscellaneous 2,527
---------
121,232
Less expenses waived by investment advisor (6,419)
---------
Total operating expenses 114,813
Interest expense 113,076
---------
Total expenses 227,889
---------
Net investment loss (110,074)
---------
Realized and unrealized gain(loss) on investments:
Net realized loss from security transactions (495,555)
Increase in unrealized appreciation on investments 1,071,560
---------
Net realized and unrealized gain on investments 576,005
---------
Net increase in net assets resulting from operations $ 465,931
=========
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF CASH FLOWS
for the six months ended November 30, 1996
(Unaudited)
<TABLE>
<S> <C>
Net Increase (Decrease) in Cash:
Cash flows from operating activities:
Dividends and interest received $ 147,736
Operating expenses paid (122,274)
----------
Net cash provided by operating activities $ 25,462
----------
Cash flows from investing activities:
Purchase of portfolio securities (8,603,033)
Proceeds from disposition of portfolio securities 10,169,415
Interest paid (127,391)
----------
Net cash provided by investing activities 1,438,991
----------
Net cash provided by operating and
investing activities 1,464,453
----------
Cash flows from financing activities:
Borrowings under loan agreement 2,919,906
Repayments under loan agreement (4,674,733)
Receipts for shareholder purchases 661,156
Payments for shareholder redemptions and distributions (380,297)
----------
Net cash used in financing activities (1,473,968)
----------
Net decrease in cash (9,515)
Cash at beginning of period 24,523
----------
Cash at end of period $ 15,008
==========
Reconciliation of Net Increase in Net Assets from Operations to
Net Cash Provided by Operating and Investing Activities:
Increase in net assets from operations $ 465,931
Decrease in investments-net 1,514,781
Decrease in receivable for securities sold 51,602
Decrease in other assets 25,546
Decrease in accrued expenses and other liabilities (17,402)
Net realized loss 495,555
Net unrealized appreciation (1,071,560)
----------
Total adjustments 998,522
----------
Net cash provided by operating
and investing activities $1,464,453
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, For the
1996 Year Ended
(Unaudited) May 31, 1996
----------- -----------
<S> <C>
Operations:
Net investment loss $ (110,074) $ (208,244)
Net realized gain (loss) from security transactions (495,555) 873,225
Net change in unrealized appreciation on investments 1,071,560 (198,523)
--------- ----------
Increase in net assets resulting from operations 465,931 466,458
--------- ----------
Distributions from:
Net realized gain on security transactions (958,586)
----------
Decrease in net assets resulting from distributions (958,586)
----------
Capital share transactions:
Proceeds from sale of 56,332 and 206,173 shares 608,539 2,587,575
Value of 85,786 shares issued upon reinvestment of dividends 929,057
Cost of 34,188 and 35,821 shares redeemed (380,297) (443,201)
--------- ----------
Increase in net assets resulting from capital share transactions 228,242 3,073,431
--------- ----------
Total increase in net assets 694,173 2,581,303
Net assets:
Beginning of year/period 9,071,789 6,490,486
--------- ----------
End of year/period $ 9,765,962 $ 9,071,789
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30,
1996 For the Years Ended May 31
(Unaudited) 1996 1995 1994 1993 (5)
----------- ------- ------- ------ ---------
<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 (loss) (0.14) (0.28) (0.28) 0.06 0.02
Net realized and unrealized gain (loss)
on investments 0.69 0.93 3.33 (0.27) 0.32
-------- ------- ------- ------- -------
Total income (loss) from investment operations 0.55 0.65 3.05 (0.21) 0.34
-------- ------- ------- ------- -------
Distributions:
From net investment income (0.07) (0.01)
From net realized gain on security transactions (1.63) (0.12)
------- ------ -------
Total distributions (1.63) (0.19) (0.01)
------- ------ -------
Net asset value, end of year/period $ 12.55 $ 12.00 $ 12.98 $ 10.12 $ 10.34
======== ======= ======= ======= =======
Total return(2) 4.58% 6.36% 30.70% (2.04)% 5.88%(1)
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 9,766 $ 9,072 $ 6,490 $ 5,323 $ 3,353
Ratio of operating expenses to average net assets(3) 2.66%(1) 2.68% 2.39% 1.99% 1.80%(1)
Ratio of total expenses to average net assets(4) 5.28%(1) 6.22% 5.79% 4.49% 3.32%(1)
Ratio of net investment income (loss) to
average net assets (2.55)%(1) (2.67)% (2.60)% 0.76% 0.42%(1)
Portfolio turnover rate 145%(1) 145% 220% 170% 25%(1)
</TABLE>
(1) Annualized.
(2) Does not reflect contingent deferred sales charge.
(3) Without fees waived by the investment advisor and distributor, the
annualized ratio of operating expenses to average net assets would have been
2.81%, 2.87%, 2.95%, 2.69% and 2.76%, respectively.
(4) Without fees waived by the investment advisor and distributor, the
annualized ratio to total expenses to average net assets would have been
5.43%, 6.41%, 6.34%, 5.19% and 4.29%, respectively.
(5) Commencement of operations was November 2, 1992.
The accompanying notes are an integral part of the financial statements.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1996 is unaudited)
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. It is composed of five separate portfolios. The
accompanying financial statements include only the Yorktown Classic Value
Trust (the "Fund").
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 which the Fund's investment advisor
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.
2. Significant Accounting Policies:
a. Portfolio Valuation
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.
b. Security Transactions and Investment Income
Security transactions are accounted for on the trade date. Realized gains
and losses from security transactions are reported on an identified-cost
basis for both financial statement and federal income tax purposes.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income and expenses are recorded on an
accrual basis.
c. Federal Income Taxes
The Trust's policy is for the Fund to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment
companies and to distribute all of its investment company taxable income
to its shareholders. Therefore, no federal income tax provision is
required.
As of November 30, 1996, the aggregate cost of investments for federal
income tax purposes, the net unrealized appreciation on a federal income
tax basis, and the gross unrealized appreciation and depreciation with
respect to each security where there is an excess of value over tax cost
or tax cost over value were $10,735,875, $1,743,749, $1,846,812 and
$103,063, respectively.
d. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
e. Borrowings
The Fund is permitted to borrow up to one-third of the value of its net
assets for investment purposes. Such borrowing is referred to as
leveraging. As of November 30, 1996, the balance due for securities
purchased through leveraging was $2,742,476. The average daily balance
during the six months ended November 30, 1996 was $3,174,301 or $4.09 per
share, based on average shares outstanding of 776,105. The maximum
amount of borrowings outstanding at any month-end during the year was
$4,269,771. The Fund's investment securities are pledged as collateral
under the borrowing arrangement.
Interest is charged at a rate of 1.50% plus the federal funds rate (7.50%
as of November 30, 1996). Such interest amounted to $113,076 for the six
months ended November 30, 1996.
3. Investment Advisory Agreement:
Yorktown Management & Research Company, Inc. (the "Advisor"), whose
principal stockholder is also a trustee of the Trust, serves as the Fund's
investment advisor and manager. For its services, the Advisor receives a
fee, calculated daily and payable monthly, at an annual rate of .90% of the
average daily net assets of the Fund.
If the aggregate expenses of the Fund in any fiscal year exceed the highest
expense limitation established pursuant to the statutes or regulations of
any jurisdiction in which the shares of the Fund are qualified or registered
for offer and sale, the Advisor has agreed to waive such portion of its
advisory fee as may be necessary to provide for such expenses. For purposes
of this limitation, aggregate Fund expenses exclude interest, taxes,
brokerage fees on portfolio transactions, distribution fees and expenses,
and extraordinary expenses.
4. Distribution Plan and Fees:
Yorktown Distributors, Inc. (the "Distributor") distributes shares of the
Fund pursuant to a Rule 12b-1 distribution plan adopted by the Trust. The
plan provides that the Distributor shall receive an annual fee of .90% of
the Fund's average daily net assets, which is comprised of .65% of
distribution fees and .25% of service fees. The principal stockholder of
the Distributor is also a trustee of the Trust.
A 2% contingent deferred sales charge is generally imposed on redemptions
made within five years of the date that Fund shares are purchased.
5. Investment Activity:
For the six months ended November 30, 1996, there were no purchases or sales
of U.S. government obligations. Purchases and sales of securities other
than short-term obligations and U.S. government obligations amounted to
$8,603,033 and $10,117,813, respectively.
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
6. Composition of Net Assets:
At November 30, 1996, net assets consisted of:
Paid-in capital $ 8,446,472
Accumulated net investment loss (110,074)
Accumulated net realized loss from security transactions (372,714)
Unrealized appreciation on investments 1,802,278
----------
Net assets applicable to outstanding shares of
beneficial interest $ 9,765,962
===========
<PAGE>
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISOR
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.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
This report is submitted for the general information
of the shareholders of the Trust. The report is not
authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an
effective Prospectus.
<PAGE>
T-1 TREASURY TRUST
SEMI-ANNUAL REPORT
[T-1 Treasury Trust Logo]
1996
<PAGE>
[T-1 Treasury Trust logo]
Dear Shareholders,
The T-1 Treasury Trust's current portfolio makeup of U.S. Treasury Securities
with maturities of one year or less has limited its interest rate risk duing the
period ended November 30, 1996. As of November 30, 1996, the maturities of the
Fund's portfolio holdings range from 3 to 11 months.
While many bond funds experienced significant volatility and in certain cases
losses, we are pleased to report positive returns. The API T-1 Treasury Trust
was up 3.69% for the twelve month period ended November 30, 1996. During that
period, the T-1 Treasury Trust paid ordinary income distributions quarterly.
As always, we appreciate your support and welcome your comments.
Sincerely,
/s/ David D. Basten
- -------------------
David D. Basten
President
<PAGE>
There is NO opinion in the Semi-Annual Report, but leave this page set-up for
the annual report.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
SCHEDULE OF INVESTMENTS
November 30, 1996
(Unaudited)
Principal Value
--------- -----
U.S. GOVERNMENT OBLIGATIONS--100.00%
United States Treasury Bills--100.00%
Due 2/6/97 $ 3,175,000 $ 3,032,807
Due 10/16/97 3,487,000 3,455,035
------------
Total investments (cost $6,486,949) $ 6,487,842
============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1996
(Unaudited)
Assets:
Investments at value (identified cost of $6,486,949) $ 6,487,842
Cash 138,675
Other assets 7,361
------------
Total assets 6,633,878
------------
Liabilities:
Accrued distribution fees 1,371
Accrued advisory fees 549
Other liabilities 13,226
------------
Total liabilities 15,146
------------
Net assets $ 6,618,732
============
Shares of beneficial interest outstanding (unlimited number of
no par value shares authorized) 1,404,680
============
Net asset value, offering and redemption price per share
outstanding $ 4.71
============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
STATEMENT OF OPERATIONS
for the six months ended November 30, 1996
(Unaudited)
Investment income:
Interest $ 168,804
----------
Expenses:
Investment advisory fees 20,176
Distribution fees 16,814
Transfer agent fees 9,215
Custodial fees 1,144
Professional fees 9,502
Registration fees 8,814
Trustee fees 484
Insurance 1,928
Shareholder reports 1,776
Miscellaneous 591
----------
70,444
Less expenses waived by investment advisor and distributor (25,220)
----------
Total expenses 45,224
----------
Net investment income 123,580
----------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions (3,241)
Increase in unrealized appreciation on investments 25,935
----------
Net realized and unrealized gain on investments 22,694
----------
Net increase in net assets resulting from operations $ 146,274
==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, For the
1996 Year Ended
(Unaudited) May 31, 1996
----------- ------------
<S> <C>
Operations:
Net investment income $ 123,580 $ 169,692
Net realized gain (loss) from security transactions (3,241) 29,148
Net change in unrealized appreciation on investments 25,935 (50,747)
---------- -----------
Increase in net assets resulting from operations 146,274 148,093
---------- -----------
Distributions from:
Net investment income (113,226) (185,165)
---------- ----------
Decrease in net assets resulting from distributions (113,226) (185,165)
---------- ----------
Capital share transactions:
Proceeds from sale of 167,824 and 1,146,107 shares 786,933 5,394,968
Value of 23,756 and 38,568 shares issued upon reinvestment of
dividends 110,942 180,577
Cost of 205,724 and 621,900 shares redeemed (963,883) (2,936,280)
---------- ----------
Increase (decrease) in net assets resulting from capital
share transactions (66,008) 2,639,265
---------- ----------
Total increase (decrease) in net assets (32,960) 2,602,193
Net assets:
Beginning of year/period 6,651,692 4,049,499
---------- ----------
End of year/period (including undistributed net investment
income of $51,579 and $41,225, respectively) $6,618,732 $6,651,692
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, For the Years Ended May 31,
1996 ------------------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
----------- ---- ---- ---- ---- ----
<S> <C>
For a share outstanding throughout each year/period:
Net asset value, beginning of year/period $ 4.69 $ 4.73 $ 4.75 $ 5.15 $ 5.16 $ 5.03
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.09 0.17 0.23 0.19 0.18 0.17
Net realized and unrealized gain (loss) on
investments 0.01 (0.35) 0.03 0.17
---------- ---------- ---------- ---------- ---------- ----------
Total income (loss) from investment operations 0.10 0.17 0.23 (0.16) 0.21 0.34
---------- ---------- ---------- ---------- ---------- ----------
Distributions:
From net investment income (0.08) (0.21) (0.25) (0.14) (0.22) (0.13)
From net realized gain on security transactions (0.10) (0.08)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (0.08) (0.21) (0.25) (0.24) (0.22) (0.21)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of year/period $ 4.71 $ 4.69 $ 4.73 $ 4.75 $ 5.15 $ 5.16
========== ========== ========== ========== ========== ==========
Total return* 2.15% 3.67% 4.99% (3.48)% 4.18% 6.78%
Ratios/Supplemental Data:
Net assets, end of year/period (000's
omitted) $ 6,619 $ 6,652 $ 4,049 $ 4,234 $ 7,295 $ 5,614
Ratio of expenses to average net assets(2) 1.35%(1) 1.49% 1.76% 1.57% 1.44% 2.08%
Ratio of net investment income to average
net assets 3.70%(1) 3.77% 4.19% 3.71% 4.72% 5.01%
Portfolio turnover rate 95%(1) 278% 292% 127% 308% 391%
</TABLE>
- -----------------
(1) Annualized
(2) Without fees waived/reimbursed by the investment advisor and distributor,
the ratio of expenses to average net assets would have been 2.11%, 2.46%,
2.56%, 2.16%, 2.04% and 2.70%, respectively.
* Total return for period less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1996 is unaudited)
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company. It is composed of five separate
portfolios. The accompanying financial statements include only the T-1
Treasury Trust (the "Fund").
The Fund's investment objective is to seek current income while limiting
credit risk. The Fund seeks to achieve its objective by investing under
normal conditions in U.S. Treasury securities (bills, notes and bonds)
and other direct obligations of the U.S. Treasury that are guaranteed as
to payment of principal and interest by the full faith and credit of U.S.
government. The Fund limits its investments to securities with remaining
maturities of one year or less.
2. Significant Accounting Policies:
a. Portfolio Valuation
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.
b. Security Transactions and Investment Income
Security transactions are accounted for on the trade date. Realized gains
and losses from security transactions are reported on an identified-cost
basis for both financial statement and federal income tax purposes.
Distributions to shareholders are recorded on the ex-dividend date.
Interest income and expenses are recorded on an accrual basis.
c. Federal Income Taxes
The Trust's policy is for the Fund to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment
companies and to distribute all of its investment company taxable income
to its shareholders. Therefore, no federal income tax provision is
required.
The Fund has available at November 30, 1996 a net capital loss
carryforward of approximately $439,000 expiring from 2001 through 2004.
As of November 30, 1996, the aggregate cost of investments for federal
income tax purposes, the net unrealized appreciation on a federal income
tax basis, and the gross unrealized appreciation and depreciation with
respect to each security where there is an excess of value over tax cost
or tax cost over value were $6,486,949, $893, $2,975 and $2,082,
respectively.
d. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
T-1 TREASURY TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
3. Investment Advisory Agreement:
Yorktown Management & Research Company, Inc. (the "Advisor"), whose
principal stockholder is also a trustee of the Trust, serves as the Fund's
investment advisor and manager. For its services, the Advisor receives a
fee, calculated daily and payable monthly, at an annual rate of .6% of the
average daily net assets of the Fund.
If the aggregate expenses of the Fund in any fiscal year exceed the
highest expense limitation established pursuant to the statutes or
regulations of any jurisdiction in which the shares of the Fund are
qualified or registered for offer and sale, the Advisor has agreed to
waive such portion of its advisory fee as may be necessary to provide for
such expenses. For purposes of this limitation, aggregate Fund expenses
exclude interest, taxes, brokerage fees on portfolio transactions,
distribution fees and expenses, and extraordinary expenses. For the six
months ended November 30, 1996, the Advisor waived $16,813 of its fees.
The Fund has agreed to reimburse the Advisor in subsequent years for fees
waived in prior years, provided that such reimbursement does not result in
increasing the Fund's aggregate expenses above the aforementioned limit or
the expense limit in effect at the time of the waiver, as applicable. The
Advisor, however, does not intend to seek reimbursement of fees previously
waived.
4. Distribution Plan and Fees:
Yorktown Distributors, Inc. (the "Distributor") distributes shares of the
Fund pursuant to a Rule 12b-1 distribution plan adopted by the Trust. The
plan provides that the Distributor shall receive an annual fee of .5% of
the Fund's average daily net assets; however, effective November 23, 1994,
the Distributor has undertaken to limit such fee to .25% of the Fund's
average daily net assets. For the six months ended November 30, 1996, the
Distributor waived $8,407 of its fees. The principal stockholder of the
Distributor is also a trustee of the Trust.
5. Investment Activity:
For the six months ended November 30, 1996, purchases and sales of U.S.
government obligations amounted to $3,115,503, and $3,293,564,
respectively. There were no purchases and sales of securities other than
U.S. government obligations.
6. Composition of Net Assets:
At November 30, 1996, net assets consisted of:
Paid-in capital $ 7,008,459
Accumulated net investment income 51,579
Accumulated net realized loss from security transactions (442,199)
Unrealized depreciation on investments 893
------------
Net assets applicable to outstanding shares of
beneficial interest $ 6,618,732
============
<PAGE>
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISOR
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
Piedmont Trust Bank
P.O. Box 4751
Martinsville, Virginia 24115
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
This report is submitted for the general information
of the shareholders of the Trust. The report is not
authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an
effective Prospectus.
<PAGE>
CAPITAL INCOME FUND
SEMI-ANNUAL REPORT
[API TRUST logo]
1996
<PAGE>
[API logo]
Dear Shareholders,
Over the past twelve months, investors have experienced solid market growth with
all major investment markets rising to new records. Though there has been much
divergence of opinion over the direction of the world's economies and whether
the markets were fairly priced, our performance, through diversification,
provided a sound foundation for superior growth of your assets.
Stock prices received support from investors who saw signs that the economy was
sound and that corporate profitability was on a stable course. Despite the
Chairman of the Federal Reserve, Alan Greenspan's clouded appraisal of
short-term economic events, the markets applauded the period's low unemployment
figures, moderate commodity price increases and stable corporate growth with a
continuation of the bull market that began October 11, 1990.
OUR PERFORMANCE
For the twelve month period ended November 30, 1996, the API Trust Capital
Income Fund returned 19.60%. Our investments in global income funds and growth
and income funds did very well over this period. Of course, past performance is
no guarantee of future results.
We believe investing is the most exciting business in the world because it
doesn't limit you to one fund, one market or one industry. We have great faith
in free markets in this country and in others, the fundamental soundness of our
global economy, and in the people who have started businesses from all over the
globe to make their fortunes. This is what makes great companies and great
investment opportunities.
Sincerely,
/s/ David D. Basten
- -------------------
David D. Basten
President
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C>
CLOSED-END FUNDS-- 11.32%
John Hancock Bank & Thrift Opportunity Fund 8,200 $242,925
Pilgrim Regional Bank Shares, Inc. 15,000 249,375
Salomon Brothers Fund, Inc. 3,600 60,300
Tri Continental Corp. 2,100 56,175
-------
Total closed-end funds (cost $521,345) 608,775
-------
MUTUAL FUNDS--88.68%
Capital Appreciation Funds--2.43%
MFS Series Trust VII Value Fund Class A 9,800 130,837
-------
Equity Income Funds--11.42%
Putnam Equity Income Fund New Class A 22,124 294,027
T. Rowe Price Equity Income Fund 13,572 319,767
-------
613,794
-------
Fixed Income Funds--2.88%
Vanguard Bond Index Fund, Inc. 15,495 154,649
-------
Global Funds--2.28%
SoGen International Fund, Inc. 4,409 122,836
-------
Growth Funds--6.11%
Berger One Hundred Fund, Inc. 8,446 176,454
Vanguard Index Trust Total Stock Market Portfolio 8,352 151,931
-------
328,385
-------
Growth and Income Funds-- 29.78%
Evergreen Growth & Income Fund 6,471 147,037
Mutual Series Fund, Inc. Beacon Fund 2,946 122,675
Neuberger & Berman Equity Funds Guardian 8,016 218,825
Vanguard Index Trust Value Portfolio 16,139 287,444
Vanguard/Windsor Fund, Inc. Vanguard/Windsor II Portfolio 2,952 75,889
Vista Mutual Fund Group Growth & Income Fund 8,783 366,617
Warburg Pincus Growth & Income Fund 3,639 57,169
World Funds, Inc. Vontobel U.S. Value Fund 20,171 325,164
-------
1,600,820
---------
</TABLE>
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS, Continued
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C>
S&P 500 Index Objective Funds--2.97%
Vanguard Index Trust 500 Portfolio 2,234 $ 159,487
----------
World Income Funds--30.81%
AIM International Funds, Inc. Global Income Fund 9,560 105,736
Alliance Global Dollar Government Income Trust, Inc. Class A 91,707 1,020,709
Alliance North American Government Income Trust, Inc. Class A 19,424 155,590
Phoenix Multi-Portfolio Fund Emerging Markets Bond Portfolio Class A 10,252 151,640
T. Rowe Price International Bond Fund 8,197 87,383
Van Kampen American Capital World Portfolio Series Global
Government Class A 16,504 135,495
---------
1,656,553
---------
Total mutual funds (cost $3,875,022) 4,767,361
---------
Total investments (cost $4,396,367) $5,376,136
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1996
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $4,396,367) $ 5,376,136
Cash 42,726
Receivables for fund shares sold 268,571
Other assets 44,211
---------
Total assets 5,731,644
---------
Liabilities:
Accrued distribution fees 2,186
Other liabilities 323
---------
Total liabilities 2,509
---------
Net assets $5,729,135
==========
Shares of beneficial interest outstanding (unlimited number of no par
value shares authorized) 290,068
=========
Net asset value, offering and redemption price per share
outstanding $ 19.75
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF OPERATIONS
for the six months ended November 30, 1996
(Unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends $87,952
Interest 5,162
------
Total income 93,114
------
Expenses:
Investment advisory fees 14,822
Distribution fees 12,352
Transfer agent fees 9,326
Custodial fees 1,134
Professional fees 8,679
Registration fees 8,212
Trustee fees 484
Insurance 1,511
Shareholder reports 1,708
Miscellaneous 796
-------
59,024
Less expenses waived by investment advisor (14,822)
-------
Total expenses 44,202
-------
Net investment income 48,912
Realized and unrealized gain on investments:
Net realized gain from security transactions 52,767
Capital gain distributions from mutual funds 14,510
Increase in unrealized appreciation on investments 492,541
-------
Net realized and unrealized gain on investments 559,818
-------
Net increase in net assets resulting from operations $608,730
=======
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, For the
1996 Year Ended
(Unaudited) May 31, 1996
----------- ------------
<S> <C>
Operations:
Net investment income $48,912 $ 50,462
Net realized gain from security transactions 52,767 280,411
Capital gain distributions from mutual funds 14,510 86,437
Net change in unrealized appreciation on investments 492,541 129,912
-------- --------
Increase in net assets resulting from operations 608,730 547,222
-------- --------
Distributions from:
Net investment income (34,821)
Net realized gain on security transactions (412,741)
--------
Decrease in net assets resulting from distributions (447,562)
--------
Capital share transactions:
Proceeds from sale of 66,100 and 90,494 shares 1,202,514 1,590,547
Value of 26,026 shares issued upon reinvestment of dividends 435,424
Cost of 27,357 and 41,370 shares redeemed (499,043) (740,077)
---------- ----------
Increase in net assets resulting from capital
share transactions 703,471 1,285,894
---------- ----------
Total increase in net assets 1,312,201 1,385,554
Net assets:
Beginning of year/period 4,416,934 3,031,380
---------- ----------
End of year/period (including undistributed net investment
income of $91,918 and $43,006, respectively) 5,729,135 $ 4,416,934
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30,
1996 For the Years Ended May 31,
(Unaudited) 1996 1995 1994 1993 1992
----------- --------- -------- -------- ------- --------
<S> <C>
For a share outstanding throughout each year/period:
Net asset value, beginning of year/period $ 17.57 $ 17.21 $ 16.34 $ 16.06 $ 14.69 $ 13.66
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) 0.15 0.34 0.35 (0.01) (0.06) (0.13)
Net realized and unrealized gain on investments 2.03 2.57 1.64 0.78 1.43 1.16
-------- -------- -------- -------- -------- --------
Total income from investment operations 2.18 2.91 1.99 0.77 1.37 1.03
-------- -------- -------- -------- -------- --------
Distributions:
From net investment income (0.28) (0.36)
From net realized gain on security transactions (2.27) (0.76) (0.49)
-------- -------- --------
Total distributions (2.55) (1.12) (0.49)
-------- -------- --------
Net asset value, end of year/period $ 19.75 $ 17.57 $ 17.21 $ 16.34 $ 16.06 $ 14.69
======== ======== ======== ======== ======== ========
Total return* 12.41% 17.65% 13.08% 4.79% 9.33% 7.51%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 5,729 $ 4,417 $ 3,031 $ 2,964 $ 2,603 $ 1,828
Ratio of expenses to average net assets(2) 1.79%(1) 2.22% 2.05% 2.12% 2.77% 3.47%
Ratio of net investment income (loss) to average net assets 1.98%(1) 1.43% 0.75% (0.06)% (0.82)% (0.98)%
Portfolio turnover rate 59%(1) 40% 65% 17% 29% 55%
</TABLE>
- -------------------
(1) Annualized
(2) Without fees waived by the investment advisor, the ratio of
expenses to average net assets would have been 2.38%, 2.82%,
2.65%, 2.72%, 3.37% and 4.07%, respectively.
* Total return for periods of less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1996 is unaudited)
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. It is composed of five separate portfolios.
The accompanying financial statements include only the Capital Income Fund
(the "Fund").
The Fund's primary investment objective is to seek to achieve high current
income. The Fund's secondary objective is growth of capital and income. The
Fund seeks to achieve its objectives by investing in mutual funds, at least
65% of which seek to achieve an objective of high current income by
investing in income-producing equity securities, long or short-term bonds
and other fixed-income securities (such as U.S. government securities,
commercial paper and preferred stock).
2. Significant Accounting Policies:
a. Portfolio Valuation
The investments of the Fund consist primarily of mutual funds that are
valued daily at their respective net asset values in accordance with the
1940 Act.
b. Security Transactions and Investment Income
Security transactions are accounted for on the trade date. Realized gains
and losses from security transactions are reported on an identified-cost
basis for both financial statement and federal income tax purposes.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income and expenses are recorded on an
accrual basis.
c. Federal Income Taxes
The Trust's policy is for the Fund to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment
companies and to distribute all of its investment company taxable income
to its shareholders. Therefore, no federal income tax provision is
required.
As of November 30, 1996, the aggregate cost of investments for federal
income tax purposes and the unrealized appreciation on a federal income
tax basis with respect to each security where there is an excess of value
over tax cost were $4,396,367 and $979,769, respectively.
d. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
3. Investment Advisory Agreement:
Yorktown Management & Research Company, Inc. (the "Advisor"), whose
principal stockholder is also a trustee of the Trust, serves as the Fund's
investment advisor and manager. For its services, the Advisor receives a
fee, calculated daily and payable monthly, at an annual rate of .6% of the
average daily net assets of the Fund. The Advisor reduces its advisory fees
(not below zero) to the extent that the Distributor (see Note 4) retains any
dealer reallowances resulting from the Fund's purchase of shares of
underlying funds that are sold with a sales load.
In addition to the advisory fee reduction noted above, to the extent that
the aggregate expenses of the Fund in any fiscal year exceed the highest
expense limitation established pursuant to the statutes or regulations of
any jurisdiction in which the shares of the Fund are qualified or registered
for offer and sale, the Advisor has agreed to waive such portion of its
remaining advisory fee as may be necessary to provide for such expenses. For
purposes of this limitation, aggregate Fund expenses exclude interest,
taxes, brokerage fees on portfolio transactions, distribution fees and
expenses, and extraordinary expenses. The Fund has agreed to reimburse the
Advisor in subsequent years for fees waived in prior years, provided that
such reimbursement does not result in increasing the Fund's aggregate
expenses above the aforementioned limit or the expense limit in effect at
the time of the waiver, as applicable. The Advisor, however, does not
intend to seek reimbursement of fees previously waived.
4. Distribution Plan and Fees:
Yorktown Distributors, Inc. (the "Distributor") distributes shares of the
Fund pursuant to a Rule 12b-1 distribution plan adopted by the Trust. The
plan provides that the Distributor shall receive an annual fee of .5% of the
Fund's average daily net assets.
In addition, to the extent possible, the Distributor is generally designated
as the dealer entitled to receive the dealer reallowance portion of the
sales charge on purchases of underlying load fund shares by the Fund. During
the six months ended November 30, 1996, the Distributor received $12,108
from brokerage commissions earned on its execution of purchases of portfolio
investments for the Fund. The principal stockholder of the Distributor is
also a trustee of the Trust.
5. Investment Activity:
For the six months ended November 30, 1996, there were no purchases or sales
of U.S. government obligations. Purchases and sales of securities other
than short-term obligations and U.S. government obligations amounted to
$1,971,041 and $1,392,710, respectively.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
6. Composition of Net Assets:
At November 30, 1996, net assets consisted of:
Paid-in capital $ 4,516,888
Accumulated net investment income 91,918
Accumulated net realized gain from security transactions 140,560
Unrealized appreciation on investments 979,769
-----------
Net assets applicable to outstanding shares of
beneficial interest $ 5,729,135
===========
<PAGE>
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISOR
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
Piedmont Trust Bank
P.O. Box 4751
Martinsville, Virginia 24115
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
This report is submitted for the general information
of the shareholders of the Trust. The report is not
authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an
effective Prospectus.
<PAGE>
GROWTH FUND
SEMI-ANNUAL REPORT
[API TRUST logo]
1996
<PAGE>
[API TRUST logo]
Dear Shareholders,
Over the past twelve months, investors have experienced solid market growth with
all major investment markets rising to new records. Though there has been much
divergence of opinion over the direction of the economy and whether the markets
were fairly priced, our performance through diversification provided a sound
foundation for superior growth of your assets.
Stock prices received support from investors who saw signs that the economy was
sound and that corporate profitability was on a stable course. Despite the
Chairman of the Federal Reserve, Alan Greenspan's clouded appraisal of
short-term economic events, the markets applauded the period's low unemployment
figures, moderate commodity price increases and stable corporate growth with a
continuation of the bull market that began October 11, 1990.
OUR PERFORMANCE
For the twelve month period ended November 30, 1996, the API Trust Growth Fund
returned 14.12%. We did well with our investments in domestic capital
appreciation funds and small company growth funds. The API Trust Growth Fund was
recognized in a December 1996 FORTUNE article entitled "Best Mutual Funds." Of
course, past performance is no guarantee of future results.
We believe investing is the most exciting business in the world because it
doesn't limit you to one fund, one market or one industry. We have great faith
in free markets in this country and in others, the fundamental soundness of our
global economy, and in the people who have started businesses from all over the
globe to make their fortunes. This is what makes great companies and great
investment opportunities.
Sincerely,
/s/ David D. Basten
- -------------------
David D. Basten
President
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1996
(UNAUDITED)
SHARES VALUE
------ -----
MUTUAL FUNDS--100.00%
CAPITAL APPRECIATION FUNDS--
6.94%
Delaware Group Trend Fund,
Inc. 12,791 $ 203,002
Evergreen Trust Aggressive
Growth Fund Class A 51,403 1,087,185
MFS Series Trust VII Value
Fund Class A 39,904 532,721
Oppenheimer Quest Value
Fund, Inc. Class A 43,069 776,966
PBHG Growth Fund, Inc. 26,059 702,020
Putnam Voyager Fund, Inc. 81,757 1,459,364
-------------
4,761,258
-------------
EMERGING MARKETS FUNDS--
4.33%
Pioneer Emerging Markets
Fund Class A 50,143 698,997
Seven Seas Series Fund
Emerging Markets Fund 100,139 1,091,518
Templeton Developing Markets
Trust 76,161 1,181,264
-------------
2,971,779
-------------
EQUITY INCOME FUNDS--1.62%
Federated Equity Income Fund
Class A 70,028 1,108,543
-------------
EUROPEAN REGION FUNDS--
4.25%
Alliance New Europe Fund, Inc.
Class A 34,483 598,985
GAM Funds, Inc. Europe Fund 34,662 407,972
Pioneer Europe Fund Class A 12,925 315,381
Putnam Europe Growth Fund
Class A 40,486 709,312
Vanguard International Equity
Index Fund, Inc. European
Portfolio 52,891 881,169
-------------
2,912,819
-------------
FINANCIAL SERVICES
FUNDS--2.43%
John Hancock Freedom
Regional Bank Fund
Class A 45,511 $ 1,666,630
-------------
GLOBAL FUNDS--3.84%
Fortis Worldwide Portfolios, Inc.
Global Growth Portfolio 47,147 1,043,847
IDEX II Series Fund Global
Portfolio Class A 25,329 563,830
MFS Series Trust VI World
Equity Fund Class A 44,303 875,878
Templeton Growth Fund, Inc. 7,620 147,754
-------------
2,631,309
-------------
GLOBAL SMALL COMPANY
FUNDS--8.32%
AIM International Funds, Inc.
Global Aggressive Growth
Fund Class A 84,392 1,368,853
Oppenheimer Global Emerging
Growth Fund Class A 14,299 297,712
Seligman Henderson Global
Smaller Companies Fund
Class A 132,191 1,939,256
Smallcap World Fund, Inc. 75,714 2,102,585
-------------
5,708,406
-------------
GOLD ORIENTED FUNDS--0.84%
Midas Fund, Inc. 110,701 580,074
-------------
GROWTH FUNDS--15.94%
Bear Sterns Funds S&P Stars
Portfolio Class A 46,511 879,535
Davis New York Venture Fund
Class A 32,930 611,847
Dreyfus/Laurel Funds Trust
Core Value Fund 20,564 735,165
FPA Capital Fund, Inc. 10,367 350,743
Guardian Park Avenue Fund,
Inc. 18,634 779,312
IDEX II Series Fund Growth
Portfolio Class A 45,259 1,048,660
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS, CONTINUED
NOVEMBER 30, 1996
(UNAUDITED)
SHARES VALUE
------ -----
Longleaf Partners Fund 40,694 $ 1,054,389
Nicholas-Applegate Growth
Equity Fund, Inc. Class A 58,014 923,584
Oppenheimer Growth Fund
Class A 19,915 759,567
Putnam New Opportunities Fund 57,062 2,420,555
Putnam Vista Fund, Inc. 121,951 1,371,951
-------------
10,935,308
--------------
GROWTH AND INCOME FUNDS--
9.50%
American Funds Fundamental
Investors 14,849 368,116
ASM Fund, Inc. 17,789 271,817
Evergreen Growth & Income
Fund 40,567 921,704
Munder Funds, Inc. Value Fund
Class A 25,146 331,182
Seven Seas Series Fund Matrix
Equity Portfolio 119,887 1,835,473
Vanguard Index Trust Value
Portfolio 21,347 380,190
Vanguard Quantitative Portfolios,
Inc. 37,362 918,374
Van Kampen American Capital
Growth and Income Fund 33,634 564,726
Vista Mutual Fund Group Growth
and Income Fund 22,238 928,243
-------------
6,519,825
-------------
INTERNATIONAL FUNDS--7.12%
Alliance Worldwide Privatization
Fund, Inc. Class A 58,284 733,805
GAM Funds, Inc. International
Fund 32,817 762,682
Ivy International Fund Class A 16,880 608,204
Munder International Equity Fund
Class A 9,090 143,091
Seligman Henderson
International Fund Class A 45,422 769,911
Templeton Foreign Fund, Inc. 64,854 661,511
Twentieth Century World
Investors, Inc. International
Equity 38,119 $ 332,783
Vanguard World Fund International
Growth Portfolio 33,467 575,301
World Funds, Inc. Vontobel
Europacific Fund 14,983 295,771
-------------
4,883,059
-------------
JAPANESE FUNDS--1.48%
GAM Funds, Inc. Japan Fund 99,009 1,011,881
-------------
MID-CAP FUNDS--2.74%
AIM Equity Funds, Inc.
Constellation Fund 13,785 368,748
PBHG Funds, Inc. Mid-Cap
Growth Fund 28,449 390,896
Twentieth Century Investors, Inc.
Ultra Investors 7,148 225,232
Vanguard Index Trust Extended
Market Portfolio 12,991 361,153
Van Kampen American Capital
Emerging Growth Fund
Class A 14,481 533,361
-------------
1,879,390
-------------
PACIFIC REGION FUNDS--10.58%
Colonial Trust VII Newport Tiger
Fund Class A 189,960 2,627,158
Nomura Pacifc Basin Fund, Inc. 34,995 564,115
Templeton International Trust
Pacific Growth Fund 70,727 1,084,945
Van Eck Asia Dynasty Fund
Class A 44,226 587,323
Vanguard International Equity
Index Fund, Inc. Pacific
Portfolio 213,838 2,390,703
-------------
7,254,244
-------------
S&P 500 INDEX OBJECTIVE
FUNDS--5.95%
Federated Index Trust Max-Cap
Fund 31,887 530,931
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS, CONTINUED
NOVEMBER 30, 1996
(UNAUDITED)
SHARES VALUE
------ -----
S&P 500 INDEX OBJECTIVE
FUNDS--5.95%
Federated Index Trust Max-Cap
Fund 31,887 530,931
Fidelity Commonwealth Trust
Market Index Trust 16,647 $ 915,756
Seven Seas Series Fund S&P
500 Index 74,226 1,187,626
T. Rowe Price Index Trust, Inc.
Equity Index Fund 50,428 1,062,027
Vanguard Index Trust 500
Portfolio 5,412 368,357
-------------
4,082,697
-------------
SCIENCE & TECHNOLOGY
FUNDS--4.13%
Alliance Technology Fund 30,741 1,572,419
John Hancock Technology
Series, Inc. Global
Technology Fund 14,727 418,999
Seligman Communications &
Information Fund, Inc. 34,850 838,157
-------------
2,829,575
-------------
SMALL COMPANY GROWTH
FUNDS--9.24%
Federated Index Trust Mini-Cap
Fund 34,794 $ 521,225
Fortis Advantage Capital
Appreciation Portfolio 12,431 428,775
Kaufmann Fund, Inc. 471,745 2,745,557
PBHG Emerging Growth Fund,
Inc. 44,177 1,099,573
Putnam OTC Emerging Growth
Fund 78,380 1,263,488
Robertson Stephens Investment
Trust Value Plus Growth
Fund 10,625 278,580
-------------
6,337,198
-------------
WORLD INCOME FUNDS--0.75%
Bear Stearns Investment Trust
Emerging Markets Debt
Portfolio Class A 45,620 516,879
-------------
TOTAL INVESTMENTS
(cost $58,925,898) $ 68,590,874
=============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
(UNAUDITED)
ASSETS:
Investments at value (identified cost of $58,925,898) $ 68,590,874
Cash 216,659
Dividends receivable 130,218
Receivable for securities sold 166,338
Other assets 92,495
-------------
Total assets 69,196,584
-------------
LIABILITIES:
Accrued distribution fees 55,931
Accrued advisory fees 28,530
Other liabilities 62,634
-------------
Total liabilities 147,095
-------------
NET ASSETS $ 69,049,489
=============
SHARES OF BENEFICIAL INTEREST OUTSTANDING (unlimited number
of no par value shares authorized) 4,769,659
=============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
OUTSTANDING $ 14.48
=============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF OPERATIONS
for the six months ended November 30, 1996
(Unaudited)
INVESTMENT INCOME:
Dividends $ 142,009
Interest 22,344
-------------
Total income 164,353
-------------
EXPENSES:
Investment advisory fees 329,620
Distribution fees 329,620
Transfer agent fees 99,483
Custodial fees 11,798
Professional fees 30,296
Registration fees 10,149
Trustee fees 2,407
Insurance 15,420
Shareholder reports 4,443
Miscellaneous 3,743
-------------
836,979
Less expenses waived by investment advisor (112,956)
--------------
Total expenses 724,023
--------------
Net investment loss (559,670)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from security transactions 3,734,515
Capital gain distributions from mutual funds 655,488
Decrease in unrealized appreciation on investments (1,599,672)
--------------
Net realized and unrealized gain on investments 2,790,331
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 2,230,661
==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the
Six Months
Ended For the
Nov. 30, 1996 Year Ended
(Unaudited) May 31, 1996
------------- ------------
OPERATIONS:
Net investment loss $ (559,670) $ (702,010)
Net realized gain from security transactions 3,734,515 5,996,423
Capital gain distributions from mutual funds 655,488 2,020,687
Net change in unrealized appreciation
on investments (1,599,672) 5,067,081
------------- ------------
Increase in net assets resulting from
operations 2,230,661 12,382,181
------------- ------------
DISTRIBUTIONS FROM:
Net realized gain on security transactions (4,753,440)
------------
Decrease in net assets resulting from
distributions (4,753,440)
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of 447,115 and 955,339
shares 6,117,462 12,775,805
Value of 363,541 shares issued upon
reinvestment of dividends 4,652,114
Cost of 554,943 and 1,268,110 shares redeemed (7,605,129) (16,967,233)
------------- -------------
Increase in net assets resulting from
capital share transactions (1,487,667) 460,686
------------- -------------
Total increase in net assets 742,994 8,089,427
NET ASSETS:
Beginning of year/period 68,306,495 60,217,068
------------- -------------
End of year/period $ 69,049,489 $ 68,306,495
============= =============
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, For the Years Ended May 31,
1996 -----------------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
----------- ---- ---- ---- ---- ----
<S> <C>
FOR A SHARE OUTSTANDING THROUGHOUT
EACH YEAR/PERIOD:
Net asset value, beginning of year/period $ 14.00 $ 12.48 $ 12.32 $ 11.86 $ 10.84 $ 11.19
---------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment loss (0.12) (0.14) (0.10) (0.21) (0.18) (0.11)
Net realized and unrealized gain on
investments 0.60 2.67 1.37 1.25 1.57 0.71
---------- --------- --------- --------- --------- ---------
Total income from investment
operations 0.48 2.53 1.27 1.04 1.39 0.60
---------- --------- --------- --------- --------- ---------
Distributions:
From net realized gain on security
transactions (1.01) (1.11) (0.58) (0.37) (0.95)
---------- --------- --------- ------- ---------
Total distributions (1.01) (1.11) (0.58) (0.37) (0.95)
--------- -------- -------- ------- ---------
NET ASSET VALUE, END OF
YEAR/PERIOD $ 14.48 $ 14.00 $ 12.48 $ 12.32 $ 11.86 $ 10.84
========== ========= ======== ======== ======= =========
Total return* 3.43% 21.03% 11.28% 8.60% 13.03% 4.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year/period (000's
omitted) $ 69,049 $ 68,306 $ 55,191 $ 46,958 $44,364 $ 40,302
Ratio of expenses to average net
assets(2) 2.19% (1) 2.24% 2.06% 2.24% 2.05% 1.97%
Ratio of net investment income (loss)
to average net assets (1.70)%(1) (1.08)% (1.50)% (1.75)% (1.56)% (1.24)%
Portfolio turnover rate 87% (1) 63% 91% 90% 157% 99%
</TABLE>
- -----------------
(1) Annualized
(2) Without fees recouped or waived by the investment advisor, the ratio of
expenses to average net assets would have been 2.54%, 2.57%, 2.60%, 2.56%,
2.52% and 2.50%, respectively.
* Total return for periods less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
(INFORMATION AS OF AND FOR THE SIX MONTHS ENDED
NOVEMBER 30, 1996 IS UNAUDITED)
1. ORGANIZATION:
American Pension Investors Trust (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company. It is composed of five separate
portfolios. The accompanying financial statements include only the
Growth Fund (the "Fund").
The Fund's investment objective is growth of capital. The Fund seeks to
achieve its objective by investing primarily in mutual funds that
invest primarily in common stock or securities convertible into or
exchangeable for common stock (such as convertible preferred stock,
convertible debentures or warrants) and that seek long-term capital
growth or appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES:
a. PORTFOLIO VALUATION
The investments of the Fund consist primarily of mutual funds that
are valued daily at their respective net asset values in
accordance with the 1940 Act.
b. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date.
Realized gains and losses from security transactions are reported
on an identified-cost basis for both financial statement and
federal income tax purposes. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income
and expenses are recorded on an accrual basis.
c. FEDERAL INCOME TAXES
The Trust's policy is for the Fund to comply with the requirements
of the Internal Revenue Code that are applicable to regulated
investment companies and to distribute all of its investment
company taxable income to its shareholders. Therefore, no federal
income tax provision is required.
As of November 30, 1996, the aggregate cost of investments for
federal income tax purposes, the net unrealized appreciation on a
federal income tax basis, and the gross unrealized appreciation
and depreciation with respect to each security where there is an
excess of value over tax cost or tax cost over value were
$58,925,898, $9,664,976, $9,812,242 and $147,266, respectively.
d. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. INVESTMENT ADVISORY AGREEMENT:
Yorktown Management & Research Company, Inc. (the "Advisor"), whose
principal stockholder is also a trustee of the Trust, serves as the
Fund's investment advisor and manager. For its services, the Advisor
receives a fee, calculated daily and payable monthly, at an annual rate
of 1% of the first $100 million of the average daily net assets of the
Fund and .75% of the average daily net assets exceeding $100 million.
The Advisor reduces its advisory fees (not below zero) to the extent
that the Distributor (see Note 4) retains any dealer reallowances
resulting from the Fund's purchase of shares of underlying funds that
are sold with a sales load.
In addition to the advisory fee reduction noted above, to the extent
that the aggregate expenses of the Fund in any fiscal year exceed the
highest expense limitation established pursuant to the statutes or
regulations of any jurisdiction in which the shares of the Fund are
qualified or registered for offer and sale, the Advisor has agreed to
waive such portion of its remaining advisory fee as may be necessary to
provide for such expenses. For purposes of this limitation, aggregate
Fund expenses exclude interest, taxes, brokerage fees on portfolio
transactions, distribution fees and expenses, and extraordinary
expenses. The Fund has agreed to reimburse the Advisor in subsequent
years for fees waived in prior years, provided that such reimbursement
does not result in increasing the Fund's aggregate expenses above the
aforementioned limit or the expense limit in effect at the time of the
waiver, as applicable. The Advisor, however, does not intend to seek
reimbursement of fees previously waived.
4. DISTRIBUTION PLAN AND FEES:
Yorktown Distributors, Inc. (the "Distributor") distributes shares of
the Fund pursuant to a Rule 12b-1 distribution plan adopted by the
Trust. The plan provides that the Distributor shall receive annual fees
of 1% of the Fund's average daily net assets.
In addition, to the extent possible, the Distributor is generally
designated as the dealer entitled to receive the dealer reallowance
portion of the sales charge on purchases of underlying load fund shares
by the Fund. During the six months ended November 30, 1996, the
Distributor received $112,952 from brokerage commissions earned on its
execution of purchases of portfolio investments for the Fund. The
principal stockholder of the Distributor is also a trustee of the
Trust.
5. INVESTMENT ACTIVITY:
For the six months ended November 30, 1996, there were no purchases
or sales of U.S. government obligations. Purchases and sales of
securities other than short-term obligations and U.S. government
obligations amounted to $28,253,747 and $28,908,541, respectively.
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
6. COMPOSITION OF NET ASSETS:
At November 30, 1996, net assets consisted of:
Paid-in capital $ 50,338,438
Accumulated net investment loss (559,670)
Accumulated net realized gain from security transactions 9,605,745
Unrealized appreciation on investments 9,664,976
--------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST 69,049,489
==============
<PAGE>
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISOR
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
Piedmont Trust Bank
P.O. Box 4751
Martinsville, Virginia 24115
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
This report is submitted for the general information
of the shareholders of the Trust. The report is not
authorized for distribution to prospective investors
in the Trust unless preceded or accompanied by an
effective Prospectus.
