[API TRUST LOGO]
November 30, 1998
Semi-Annual Report
GROWTH FUND
CAPITAL INCOME FUND
MULTIPLE INDEX TRUST
YORKTOWN CLASSIC VALUE TRUST
TREASURIES TRUST
[API TRUST LOGO]
CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders 1
Growth Fund
Investments 3
Financial Statements 6
Capital Income Fund
Investments 13
Financial Statements 15
Multiple Index Trust
Investments 22
Financial Statements 24
Yorktown Classic Value Trust
Investments 30
Financial Statements 32
Treasuries Trust
Investments 40
Financial Statements 42
</TABLE>
<PAGE>
[API TRUST LOGO]
Dear Fellow Shareholders,
The six month period ended November 30, 1998 was a period of sharp contrast.
Many market averages set records in the first months of the period then tumbled
dramatically in the late summer in some of the worst selling since the fall of
1990. The mood swings in market psychology seemed especially pronounced when
the devastation of the meltdown in the Russian economy seemed to be spreading
like a dreaded epidemic throughout all emerging markets. A flight to safety and
liquidity made US Treasuries the most popular investment during this period of
pessimism.
As the following chart indicates, equity fund holders that weathered the storm
were rewarded handsomely in October and November, as most markets rebounded.
Net Asset Value Per Share
<TABLE>
<CAPTION>
9/30/98 11/30/98 Change
----------- ---------- ------------
<S> <C> <C> <C>
Growth Fund $ 12.18 $ 13.92 +14.29%
Capital Income Fund 19.88 22.42 +12.78%
Yorktown Classic Value Trust 10.95 14.67 +33.97%
Multiple Index Trust 10.07 11.48 +14.00%
</TABLE>
In the last quarter of 1998, the heady atmosphere of technology and internet
issues outperformed and lead all sectors in our domestic markets. Financials
and consumer products companies languished but seem to be improving as the
economy continues to grow and Federal Reserve Chairman Greenspan's aggressive
lowering of short term interest rates seems to have avoided a slow down in our
domestic economy.
All in all, 1998 will be remembered as a buying opportunity! Prices fell on
average 20+% in August and September with some stocks falling to five year lows
overnight. Your funds locked in some of the best opportunities we have seen
since 1990. I believe strong recovery performance from the lows in the third
quarter will continue into 1999 and beyond.
Please note the Efficient Frontier graph for each fund that shows the relative
risk and return of each portfolio. By investing in other mutual funds, the
Growth Fund, Capital Income Fund and Multiple Index Trust are among the most
diversified of all US mutual funds. The investments cover multiple categories
with varying degrees of risk and return, which is known as the Efficient
Frontier. By combining assets in this manner you can lower risk while enhancing
return.
1
<PAGE>
As always, it is impossible to predict near term market performance. However,
we believe that any renewed periods of severe market pessimism would provide us
with attractive long term investment opportunities, as was the case in August
and September.
It is important to keep a level head in emotional times. This past summer some
investors chose to reduce their commitment to equities based on short term
events. For long term investors, we believe the current stock market
environment underscores the need for diversification and the assessment of
risk. The opportunities are greatest where the blood has been the reddest. The
free market economies of the world will survive and strengthen into the next
century. Lead by strong positions in the United States and Europe, our
portfolios are well positioned for the New Year.
I am pleased to report that the Growth Fund, Capital Income Fund, Treasuries
Trust and Yorktown Classic Value Trust have all been mentioned favorably in
various publications during the reporting period. We thank you for your
confidence and long term support.
Sincerely,
/s/ David D. Basten
David D. Basten
President
2
<PAGE>
API GROWTH FUND
COMPARING DISTRIBUTION OF MARKETS IN THE FUND
AND POSITION OF MARKETS ON THE EFFICIENT FRONTIER*
DISTRIBUTION OF MARKETS*
SCIENCE & TECHNOLOGY FUNDS 6.2%
S&P INDEX OBECT. FUNDS 17.6%
PACIFIC REGION FUNDS 0.8%
MID CAP FUNDS 2.9%
INTERNATIONAL FUNDS 5.3%
8.7% SMALL CAP FUNDS
3.1% CAPITAL APPRECIATION FUNDS
6.5% EMERGING MARKET FUNDS
1.0% EQUITY INCOME FUNDS
1.9% EUROPEAN REGION FUNDS
4.0% FINANCIAL SERVICES FUNDS
1.4% GLOBAL FUNDS
26.1% GROWTH FUNDS
CONSERVATIVE MODERATE GROWTH AGGRESSIVE
H o HI-Yield Bonds
I o REITs
G o Long-Term Muni Bonds
H o International Bonds
E o Inter-Term Muni Bonds
R
R o Corporate Bonds
E o Long-term Govt. Bonds
T o Mort. Backed Bonds
U o Short Term Muni. Bonds
R o Inter-term Govt. Bonds
N o Fixed Annuities
o T Notes/Cds
L o Cash & Equivalents
O
W x Emerging Equities
E x Small Growth Stocks
R x Small Value Stocks
x International Stocks
x Mid-Cap Stocks
x Large Growth Stocks
x Large Value Stocks
x Balanced Funds
POSITION OF MARKETS ON THE
EFFICIENT FRONTIER
TIME PERIOD: 1980-1996
x INDICATES MARKETS INCLUDED IN THE API GROWTH FUND*
LOWER RISK HIGHER
* Allocation of the fund is as of Nov. 30 and will change based on
market conditions
3
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------------------ -----------------
<S> <C> <C>
MUTUAL FUNDS -- 100.00%
Capital Appreciation Funds -- 3.09%
Delaware Group Value Fund, Inc. 46,437 $1,183,217
Oppenheimer Quest Value Fund,
Inc. Class A 43,069 956,133
----------
2,139,350
----------
Emerging Markets Funds -- 6.53%
Eaton Vance Special Investment
Trust Emerging Markets Fund 28,368 228,085
Goldman Sachs Emerging Markets
Fund Class A 63,199 472,733
Ivy Developing Nations Fund 76,419 470,743
MFS Emerging Growth Fund
Class A 11,261 457,770
Putnam Emerging Growth Fund 214,155 1,507,653
Templeton Developing Markets
Trust 129,471 1,386,637
----------
4,523,621
----------
Equity Income Funds -- 1.04%
Pioneer Growth Trust Equity Income
Fund Class A 24,673 718,752
----------
European Region Funds -- 1.90%
Vanguard International Equity Index
Fund, Inc. European Portfolio 52,891 1,313,290
----------
Financial Services Funds -- 4.00%
John Hancock Freedom Regional
Bank Fund Class A 54,205 2,771,007
----------
Global Funds -- 1.43%
Phoenix Worldwide Opportunities
Fund 82,045 991,107
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------------------ -----------------
<S> <C> <C>
Growth Funds -- 26.08%
Bear Stearns Large Cap Value Fund
Class A 16,234 $ 337,994
Davis New York Venture Fund
Class A 190,575 4,674,806
Enterprise Group Fund, Inc. Growth
Portfolio 47,094 963,547
Guardian Park Avenue Fund, Inc. 24,099 1,217,498
Hilliard Lyons Growth Fund, Inc. 33,245 1,129,027
Ivy Growth Fund, Inc. 125,954 2,424,632
Kemper Growth Fund 39,321 544,607
Legg Mason Value Trust - Navigator
Class 22,578 1,258,975
Longleaf Partners Fund 40,694 968,524
New Economy Fund 46,560 1,101,150
Putnam Vista Fund, Inc. 71,855 898,911
Sentinel Growth Fund, Inc. 69,677 1,020,768
Vanguard Index Trust Total Stock
Market Portfolio 58,783 1,527,189
----------
18,067,628
----------
Growth and Income
Funds -- 14.44%
AIM Equity Funds, Inc. Blue Chip
Fund 27,941 1,074,342
ASM Index 30 Fund 30,089 608,404
Colonial Trust VI U. S. Fund for
Growth 39,910 789,422
Fidelity Adviser Growth & Income
Fund 47,534 716,347
Principal Preservation Dividend
Achievers Portfolio 10,752 310,320
Principal Preservation S&P 100 Plus
Portfolio 63,811 2,168,316
Pioneer Fund, Inc. 51,071 2,159,309
SSGA Matrix Equity Fund 36,614 577,779
Vanguard Index Trust Value
Portfolio 21,346 480,307
Vanguard Growth and Income Fund 37,362 1,119,385
----------
10,003,931
----------
</TABLE>
4
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS, Continued
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
----------- -------------
<S> <C> <C>
International Funds -- 5.31%
Alliance Worldwide Privatization
Fund, Inc. Class A 77,280 $ 923,505
Goldman Sachs Core International
Equity Class A 82,051 792,615
Kemper International Fund 55,031 695,594
Oppenheimer International Growth
Fund 20,722 313,115
Pioneer International Growth Fund
Class A 55,549 952,125
-----------
3,676,954
-----------
Mid-Cap Funds -- 2.88%
Vanguard Index Trust Extended
Market Portfolio 65,627 1,993,118
-----------
Pacific Region Funds -- 0.79%
Goldman Sachs Asia Growth Fund
Class A 67,191 547,608
-----------
S&P 500 Index Objective
Funds -- 17.63%
BT S&P 500 Fund 2,051 308,403
Federated Index Trust Max-Cap
Fund 107,747 2,592,412
SSGA S&P 500 Index Fund 164,646 3,474,051
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------- -------------
<S> <C> <C>
T. Rowe Price Index Trust, Inc.
Equity Index Fund 50,428 $ 1,600,090
Vanguard Index Trust 500 Portfolio 39,027 4,234,064
-----------
12,209,020
-----------
Science & Technology
Funds -- 6.20%
Alliance Technology Fund 43,758 3,001,855
Principal Preservation Technology
100 Index Portfolio 77,339 1,298,537
-----------
4,300,392
-----------
Small-Cap Funds -- 8.68%
Kemper Small Cap Equity Fund
Class A 88,203 510,699
Munder Small Company Growth
Fund 54,422 965,991
Seligman Frontier Fund 118,289 1,600,453
SmallCap World Fund, Inc. 57,101 1,408,133
SSGA Small Cap Fund 84,235 1,524,669
-----------
6,009,945
-----------
Total Investments
(cost $55,947,663) $69,265,723
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $55,947,663) $ 69,265,723
Cash 3,865,914
Other assets 54,278
-------------
Total assets 73,185,915
-------------
Liabilities:
Accrued distribution fees 59,289
Accrued advisory fees 56,717
Other liabilities 142,580
-------------
Total liabilities 258,586
-------------
Net Assets $ 72,927,329
=============
Shares of beneficial interest outstanding (unlimited number of no par value shares
authorized) 5,238,526
=============
Net asset value, offering and redemption price per share outstanding $ 13.92
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF OPERATIONS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment Income:
Dividends $ 205,852
Interest 27,788
------------
Total income 233,640
------------
Expenses:
Investment advisory fees 359,632
Distribution fees 359,632
Transfer agent fees 119,197
Custodial fees 11,709
Professional fees 22,595
Registration fees 8,330
Trustee fees 6,788
Insurance 15,165
Shareholder reports 11,413
Miscellaneous 3,311
------------
917,772
Less expenses waived by investment advisor (95,060)
------------
Total expenses 822,712
------------
Net investment loss (589,072)
------------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions (2,325,086)
Capital gain distributions from mutual funds 1,486,213
Change in unrealized appreciation on investments 142,681
------------
Net realized and unrealized loss on investments (696,192)
------------
Net decrease in net assets resulting from operations $ (1,285,264)
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
Nov. 30, 1998 Year Ended
(Unaudited) May 31, 1998
--------------- ---------------
<S> <C> <C>
Operations:
Net investment loss $ (589,072) $ (456,909)
Net realized gain (loss) from security transactions (2,325,086) 5,004,312
Capital gain distributions from mutual funds 1,486,213 3,909,171
Net change in unrealized appreciation on investments 142,681 3,926,788
------------ -------------
Increase (decrease) in net assets resulting from operations (1,285,264) 12,383,362
------------ -------------
Distributions:
From net realized gain on security transactions (7,875,892)
-------------
Decrease in net assets resulting from distributions (7,875,892)
-------------
Capital share transactions:
Proceeds from sale of 328,539 and 555,387 shares 4,361,429 7,758,789
Value of 594,591 shares issued upon reinvestment of dividends 7,615,929
Cost of 550,755 and 810,738 shares redeemed (7,321,986) (11,426,062)
------------ -------------
Increase (decrease) in net assets resulting from capital share
transactions (2,960,557) 3,948,656
------------ -------------
Total increase (decrease) in net assets (4,245,821) 8,456,126
Net assets:
Beginning of year/period 77,173,150 68,717,024
------------ -------------
End of year/period $ 72,927,329 $ 77,173,150
============ =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, 1998
(Unaudited)
------------------
<S> <C>
For a share outstanding throughout each
year/period:
Net asset value, beginning of year/period $ 14.13
----------
Income from investment operations:
Net investment loss (.11)
Net realized and unrealized gain (loss) on
investments (.10)
----------
Total income (loss) from investment
operations (.21)
----------
Distributions:
From net realized gain on security transactions
Total distributions
Net asset value, end of year/period $ 13.92
==========
Total return* (1.49)%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 72,927
Ratio of expenses to average net assets(2) 2.30%(1)
Ratio of net investment income (loss) to average
net assets (1.64)%(1)
Portfolio turnover rate 113%(1)
<CAPTION>
For the Years Ended May 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
For a share outstanding throughout each
year/period:
Net asset value, beginning of year/period $ 13.42 $ 14.00 $ 12.48 $ 12.32 $ 11.86
-------- -------- -------- -------- --------
Income from investment operations:
Net investment loss (0.08) (0.17) (0.14) (0.10) (0.21)
Net realized and unrealized gain (loss) on
investments 2.36 1.25 2.67 1.37 1.25
-------- -------- -------- -------- --------
Total income (loss) from investment
operations 2.28 1.08 2.53 1.27 1.04
-------- -------- -------- -------- --------
Distributions:
From net realized gain on security transactions (1.57) (1.66) (1.01) (1.11) (0.58)
-------- -------- -------- -------- --------
Total distributions (1.57) (1.66) (1.01) (1.11) (0.58)
-------- -------- -------- -------- --------
Net asset value, end of year/period $ 14.13 $ 13.42 $ 14.00 $ 12.48 $ 12.32
======== ======== ======== ======== ========
Total return* 18.39% 8.32% 21.03% 11.28% 8.60%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 77,173 $ 68,717 $ 68,306 $ 55,191 $ 46,958
Ratio of expenses to average net assets(2) 2.18% 2.18% 2.24% 2.06% 2.24%
Ratio of net investment income (loss) to average
net assets (0.62)% (1.31)% (1.08)% (1.50)% (1.75)%
Portfolio turnover rate 57% 84% 63% 91% 90%
</TABLE>
- -----------
(1) Annualized
(2) Without fees waived by the investment advisor, the ratio of expenses to
average net assets would have been 2.56%, 2.54%, 2.55%, 2.57%, 2.60% and
2.56%, respectively.
* Total returns for periods less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1998 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 six 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 Funds 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, 1998, 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 $55,947,663, $13,318,060, $13,351,074 and
$33,014, respectively.
d. Use of Estimates
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
10
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
e. Cash and Cash Equivalents
Cash and cash equivalents include amounts invested in overnight money
market accounts, which are readily convertible to known amounts of cash.
These amounts are invested in one financial institution.
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 1.00% 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) receives any dealer reallowances or 12b-1 fees resulting from the
Fund's purchase of shares of underlying funds. During the six months ended
November 30, 1998, the Advisor waived $95,060 of its fees.
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 1.00% 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, 1998, the Distributor
received $95,060 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, 1998, 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 $39,767,622 and $45,344,196, respectively.
11
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, Continued
6. Compostion of Net Assets:
At November 30, 1998, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 55,596,928
Accumulated net investment loss (589,072)
Accumulated net realized gain from security transactions 4,601,413
Unrealized appreciation on investments 13,318,060
------------
Net assets applicable to outstanding shares of beneficial interest $ 72,927,329
============
</TABLE>
12
<PAGE>
API CAPITAL INCOME FUND
COMPARING DISTRIBUTION OF MARKETS IN THE FUND
AND POSITION OF MARKETS ON THE EFFICIENT FRONTIER*
DISTRIBUTION OF MARKETS*
S&P 500 INDEX OBJECT. FUNDS 20.9%
INTERNATIONAL FUNDS 7.0%
GROWTH AND INCOME FUNDS 32.6%
11.2% EQUITY INCOME FUNDS
2.8% EUROPEAN REGION FUNDS
13.3% FINANCIAL SERVICES FUNDS
1.0% GLOBAL FUNDS
11.2% GROWTH FUNDS
CONSERVATIVE MODERATE GROWTH AGGRESSIVE
H o Small Growth Stocks
I o Small Value Stocks
G o Emerging Equities
H o Mid-Cap Stocks
E o HI-Yield Bonds
R
R o REITs
E o Long-term Muni Bonds
T o Balanced Funds
U o Short Term Muni. Bonds
R o Inter-term Muni. Bonds
N o Fixed Annuities
x T Notes/Cds
L x Cash & Equivalents
O
W x Inter-term Govt. Bonds
E x Mort. Backed Bonds
R x Long-term Govt. Bonds
x Corporate Bonds
x International Bonds
x Large Growth Stock
x Large Value Stocks
x International Stocks
POSITION OF MARKETS ON THE
EFFICIENT FRONTIER
TIME PERIOD: 1980-1996
x INDICATES MARKETS INCLUDED IN THE API GROWTH FUND*
LOWER RISK HIGHER
* Allocation of the fund is as of Nov. 30 and will change based on
market conditions
13
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
----------- --------------
<S> <C> <C>
MUTUAL FUNDS -- 100.00%
Equity Income Funds -- 11.20%
Kemper-Dreman High Return Fund
Class A 13,899 $ 495,724
Putnam Equity Income Fund New
Class A 22,123 374,779
T. Rowe Price Equity Income Fund 13,572 375,685
-----------
1,246,188
-----------
European Region Funds -- 2.83%
Alliance New Europe Fund, Inc.
Class A 15,494 314,548
-----------
Financial Services Funds -- 13.29%
Davis Financial Fund Class A 27,635 778,760
Franklin Mutual Financial Services 9,786 124,293
Pilgrim American Bank and Thrift 23,000 575,230
-----------
1,478,283
-----------
Global Funds -- 0.97%
Pioneer World Equity Fund Class A 6,164 107,939
-----------
Growth Funds -- 11.23%
Bear Stearns Insider Select Fund
Class A 23,5260 389,831
MFS Large Cap Growth Fund
Class A 46,143 797,825
Vanguard Index Trust Total Stock
Market Portfolio 2,378 61,799
-----------
1,249,455
-----------
Shares Value
------- -----------
Growth and Income Funds -- 32.59%
American Century Income and
Growth Fund 13,060 $ 374,450
ASM Index 30 Fund 13,774 278,512
Fidelity Advisers Growth & Income
Fund 10,916 163,531
Neuberger & Berman Equity Funds
Guardian Fund 8,015 203,355
Principal Preservation Portfolios
S&P 100 Plus Portfolio 64,451 2,190,078
Vanguard Index Trust Value
Portfolio 14,289 321,516
Vanguard/Windsor Fund, Inc.
Vanguard/ Windsor II Portfolio 2,951 95,164
-----------
3,626,606
-----------
International Funds -- 6.99%
Alliance Worldwide Privatization
Fund, Inc. Class A 11,277 134,765
Principal International Fund 33,628 319,471
Putnam International Growth &
Income Fund 28,382 324,125
-----------
778,361
-----------
S&P 500 Index Objective
Funds -- 20.90%
Federated Index Trust Max-Cap
Fund 19,345 465,458
Vanguard Index Trust 500 Portfolio 17,145 1,860,076
-----------
2,325,534
-----------
Total investments
(cost $9,057,432) $11,126,914
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $9,057,432) $ 11,126,914
Cash 1,344,863
Other assets 63,225
-------------
Total assets 12,535,002
-------------
Liabilities:
Accrued distribution fees 5,002
Other liabilities 20,993
-------------
Total liabilities 25,995
-------------
Net assets $ 12,509,007
=============
Shares of beneficial interest outstanding (unlimited number of no par value shares 558,029
=============
authorized)
Net asset value, offering and redemption price per share outstanding $ 22.42
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF OPERATIONS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends $ 79,232
Interest 6,664
----------
Total income 85,896
----------
Expenses:
Investment advisory fees 34,382
Distribution fees 28,652
Transfer agent fees 21,684
Custodial fees 2,199
Professional fees 8,969
Registration fees 8,843
Trustee fees 1,095
Insurance 2,426
Shareholder reports 3,295
Miscellaneous 978
----------
112,523
Less expenses waived by investment advisor (34,382)
----------
Total expenses 78,141
----------
Net investment income 7,755
----------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions (404,007)
Capital gain distributions from mutual funds 85,115
Change in unrealized appreciation on investments 85,026
----------
Net realized and unrealized loss on investments (233,866)
----------
Net decrease in net assets resulting from operations $ (226,111)
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
Nov. 30, 1998 Year Ended
(Unaudited) May 31, 1998
--------------- ---------------
<S> <C> <C>
Operations:
Net investment income (loss) $ 7,755 $ 77,700
Net realized gain (loss) from security transactions (404,007) 531,899
Capital gain distributions from mutual funds 85,115 650,304
Net change in unrealized appreciation on investments 85,026 867,042
------------ ------------
Increase (decrease) in net assets resulting from operations (226,111) 2,126,945
------------ ------------
Distributions:
From net investment income (137,628)
From net realized gain on security transactions (619,051)
------------
Decrease in net assets resulting from distributions (756,679)
------------
Capital share transactions:
Proceeds from sale of 122,228 and 123,986 shares 2,684,065 2,750,079
Value of 34,684 shares issued upon reinvestment of dividends 715,156
Cost of 69,005 and 60,388 shares redeemed (1,541,003) (1,341,259)
------------ ------------
Increase in net assets resulting from capital share transactions 1,143,062 2,123,976
------------ ------------
Total increase in net assets 916,951 3,494,242
Net assets:
Beginning of year/period 11,592,056 8,097,814
------------ ------------
End of year/period $ 12,509,007 $ 11,592,056
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, 1998
(Unaudited)
----------------
<S> <C>
For a share outstanding throughout each year/period:
Net asset value, beginning of year/period $ 22.96
---------
Income from investment operations:
Net investment income (loss) 0.01
Net realized and unrealized gain (loss) on
investments (0.55)
---------
Total income (loss) from investment
operations (0.54)
---------
Distributions:
From net investment income
From net realized gain on security transactions
Total distributions
Net asset value, end of year/period $ 22.42
=========
Total return* (2.35)%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 12,509
Ratio of expenses to average net assets(2) 1.37%(1)
Ratio of net investment income (loss) to average net
assets 0.14%(1)
Portfolio turnover rate 98%(1)
<CAPTION>
For the Years Ended May 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
For a share outstanding throughout each year/period:
Net asset value, beginning of year/period $ 19.92 $ 17.57 $ 17.21 $ 16.34 $ 16.06
-------- -------- -------- -------- ---------
Income from investment operations:
Net investment income (loss) 0.16 0.32 0.34 0.35 ( 0.01)
Net realized and unrealized gain (loss) on
investments 4.64 3.49 2.57 1.64 0.78
-------- -------- -------- -------- ---------
Total income (loss) from investment
operations 4.80 3.81 2.91 1.99 0.77
-------- -------- -------- -------- ---------
Distributions:
From net investment income (0.30) (0.48) (0.28) (0.36)
From net realized gain on security transactions (1.46) (0.98) (2.27) (0.76) (0.49)
-------- --------- --------- --------- ---------
Total distributions (1.76) (1.46) (2.55) (1.12) (0.49)
-------- --------- --------- --------- ---------
Net asset value, end of year/period $ 22.96 $ 19.92 $ 17.57 $ 17.21 $ 16.34
======== ========= ========= ========= =========
Total return* 25.30% 22.43% 17.65% 13.08% 4.79%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 11,592 $ 8,098 $ 4,417 $ 3,031 $ 2,964
Ratio of expenses to average net assets(2) 1.47% 1.77% 2.22% 2.05% 2.12%
Ratio of net investment income (loss) to average net
assets 0.80% 1.84% 1.43% 0.75% (0.06)%
Portfolio turnover rate 33% 67% 40% 65% 17%
</TABLE>
- -----------
(1) Annualized
(2) Without fees waived by the investment advisor, the ratio of expenses to
average net assets would have been 1.97%, 2.07%, 2.38%, 2.82%, 2.65% and
2.72%, respectively.
* Total returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1998 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 six 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, 1998, 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 $9,057,432, $2,069,482, $2,084,627 and
$15,145, respectively.
d. Use of Estimates
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
19
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
e. Cash and Cash Equivalents
Cash and cash equivalents include amounts invested in overnight money
market accounts, which are readily convertible to known amounts of cash.
These amounts are invested in one financial institution.
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 .60% 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) receives
any dealer reallowances or 12b-1 fees resulting from the Fund's purchase of
shares of underlying funds. During the six months ended November 30, 1998,
the Advisor waived all of its fees in the amount of $34,382.
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 .50% 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, 1998, the Distributor
received $24,354 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, 1998, 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 $5,383,328 and $5,394,836, respectively.
20
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
6. Composition of Net Assets:
At November 30, 1998, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 10,007,278
Accumulated net investment income 7,755
Accumulated net realized gain from security transactions 424,492
Unrealized appreciation on investments 2,069,482
------------
Net assets applicable to outstanding shares of beneficial interest $ 12,509,007
============
</TABLE>
21
<PAGE>
API MULTIPLE INDEX TRUST
COMPARING DISTRIBUTION OF MARKETS IN THE FUND
AND POSITION OF MARKETS ON THE EFFICIENT FRONTIER*
DISTRIBUTION OF MARKETS*
S&P 500 INDEX OBJECT. FUNDS 48.5%
SCIENCE & TECHNOLOGY FUNDS 8.1%
PACIFIC REGION FUNDS 4.1%
10.0% CAPITAL APPRECIATION FUNDS
2.7% EMERGING MARKET FUNDS
1.3% EUROPEAN REGION FUNDS
11.1% GROWTH FUNDS
2.1% GROWTH AND INCOME FUNDS
5.9% INTERNATIONALAAA FUNDS
1.2% MID CAP FUNDS
5.0% SMALL COMPANY GROWTH FUNDS
CONSERVATIVE MODERATE GROWTH AGGRESSIVE
H o HI-Yield Bonds
I o REITs
G o Long-Term Muni Bonds
H o International Bonds
E o Inter-Term Muni Bonds
R
R o Corporate Bonds
E o Long-term Govt. Bonds
T o Mort. Backed Bonds
U o Short Term Muni. Bonds
R o Inter-term Govt. Bonds
N o Fixed Annuities
o T Notes/Cds
L o Cash & Equivalents
O
W x Balanced Funds
E x Large Value Stocks
R x Large Growth Stocks
x Mid-Cap Stocks
x International Stocks
x Small Value Stocks
x Small Growth Stocks
x Emerging Equities
POSITION OF MARKETS ON THE
EFFICIENT FRONTIER
TIME PERIOD: 1980-1996
x INDICATES MARKETS INCLUDED IN THE API MULTIPLE INDEX TRUST*
LOWER RISK HIGHER
* Allocation is as of Nov. 30 and will change based on
market conditions
22
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
SCHEDULE OF INVESTMENTS
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
-------- -------------
<S> <C> <C>
MUTUAL FUNDS -- 100.00%
Capital Appreciation Funds -- 10.02%
Rydex Series Trust OTC Fund 8,971 $ 316,594
----------
Emerging Markets Funds -- 2.72%
Vanguard International Equity Index Fund, Inc. Emerging Markets Portfolio 10,191 85,918
----------
European Region Funds -- 1.31%
Invesco Specialty Funds, Inc. European Small Company Fund 3,184 41,274
----------
Growth Funds -- 11.09%
Vanguard Index Trust Total Stock Market Portfolio 13,484 350,322
----------
Growth and Income Funds -- 2.11%
ASM Index 30 Fund 3,296 66,659
----------
International Funds -- 5.89%
BT EAFE Equity Index Fund 9,077 104,850
Vanguard Total International Index Fund 7,337 81,082
----------
185,932
----------
Mid-Cap Funds -- 1.16%
Federated Index Trust Mid-Cap Fund 2,367 36,715
----------
Pacific Region Funds -- 4.05%
Vanguard International Equity Index Fund, Inc. Pacific Portfolio 16,613 127,925
----------
S&P 500 Index Objective Funds -- 48.54%
Federated Index Trust Max-Cap Fund 6,391 153,780
SSGA S&P 500 Index Fund 23,934 505,010
T. Rowe Price Equity Index Fund 8,629 273,803
Vanguard Index Trust 500 Portfolio 5,535 600,497
----------
1,533,090
----------
Science & Technology Funds -- 8.13%
Principal Preservation Tech 100 Index Portfolio 15,294 256,797
----------
Small Company Growth Funds -- 4.98%
Vanguard Index Trust Small Cap Value Fund 18,679 157,466
----------
Total Investments (cost $2,891,401) $3,158,692
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $2,891,140) $ 3,158,692
Cash 147,592
Other assets 34,995
------------
Total assets 3,341,279
------------
Liabilities:
Other liabilities 3,969
------------
Total liabilities 3,969
------------
Net assets $ 3,337,310
============
Shares of beneficial interest outstanding (unlimited number of no par value shares 290,723
============
authorized)
Net asset value, offering and redemption price per share outstanding $ 11.48
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENT OF OPERATIONS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment income:
Dividends $ 12,929
Interest 3,274
---------
Total income 16,203
---------
Expenses:
Investment advisory fees 11,889
Transfer agent fees 8,045
Custodial fees 1,182
Professional fees 4,113
Registration fees 3,753
Trustee fees 1,028
Insurance 534
Shareholder reports 1,350
Organizational expenses 4,077
Miscellaneous 623
---------
36,594
Less expenses waived/reimbursed by investment advisor (15,201)
---------
Total expenses 21,393
---------
Net investment loss (5,190)
---------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions (37,727)
Capital gain distributions from mutual funds 77,570
Change in unrealized appreciation on investments 115,994
---------
Net realized and unrealized gain on investments 155,837
---------
Net increase in net assets resulting from operations $ 150,647
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
For the Period From
Six Months July 2, 1997
Ended (commencement
Nov. 30, 1998 of operations)
(Unaudited) to May 31, 1998
-------------------- ----------------
<S> <C> <C>
Operations:
Net investment income (loss) $ (5,190) $ 6,626
Net realized loss from security transactions (37,727) (29)
Capital gain distributions from mutual funds 77,570 88,452
Net change in unrealized appreciation on investments 115,l994 151,297
------------- -----------
Increase in net assets resulting from operations 150,647 246,346
------------- -----------
Distributions:
From net investment income (6,626)
From net realized gain on security transactions (22,680)
-----------
Decrease in net assets resulting from distributions (29,306)
-----------
Capital share transactions:
Proceeds from sale of 91,898 and 296,136 shares 1,005,682 3,054,036
Value of 2,752 shares issued upon reinvestment of dividends 27,626
Cost of 80,062 and 20,001 shares redeemed (899,200) (218,521)
------------- -----------
Increase in net assets resulting from capital share transactions 106,482 2,863,141
------------- -----------
Total increase in net assets 257,129 3,080,181
Net assets:
Beginning of period 3,080,181 -0-
------------- -----------
End of period $3,337,310 $ 3,080,181
============= ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
Nov. 30, 1998 Period Ended
(Unaudited) May 31, 1998(3)
--------------- ----------------
<S> <C> <C>
For a share outstanding throughout the period:
Net asset value, beginning of period $ 11.04 $ 10.00
------- --------
Income from investment operations:
Net investment income (loss) (0.02) 0.03
Net realized and unrealized gain on investments .46 1.16
-------- --------
Total income from investment operations .44 1.19
-------- --------
Distributions:
From net investment income (0.03)
From net realized gain on security transactions (0.12)
--------
Total distributions (0.15)
--------
Net asset value, end of period $ 11.48 $ 11.04
======== ========
Total return* 3.99% 11.99%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) $ 3,337 $ 3,080
Ratio of expenses to average net assets(2) 1.25%(1) 0.71%
Ratio of net investment income (loss) to average net assets ( 0.31)(1) 0.36%
Portfolio turnover rate 82%(1) 49%
</TABLE>
- -----------
(1) Annualized
(2) Without fees waived/reimbursed by the investment advisor, the ratio of
expenses to average net assets would have been 2.16% and 2.75%,
respectively.
(3) Commencement of operations was July 2, 1997.
* Total returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1998 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 six separate portfolios.
The accompanying financial statements include only the Multiple Index Trust
(the "Fund").
The Fund's investment objective is to maximize total return from capital
growth and income. The Fund seeks to achieve its ojbective by investing at
least 65% of its total assets in shares of other open-end investment
companies whose portfolios mirror those of one index or another of market
securities.
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. Organizaiton Expenses
Costs incurred by the Fund in connection with its organization and initial
registration are included in other assets and are being amortized evenly
over two years. At November 30, 1998, such unamortized costs amounted to
$4,056.
d. 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, 1998, 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 $2,891,401, $267,291, $314,991 and $47,700,
respectively.
28
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
e. Cash and Cash Equivalents
Cash and cash equivalents include amounts invested in overnight money
market accounts, which are readily convertible to known amounts of cash.
These amounts are invested in one financial institution.
f. Use of Estimates
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.
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 .70% of the
average daily net assets of the Fund. For the period ended November 30,
1998, the Advisor waived all of its advisory fees in the amount of $11,889.
In addition, the Advisor reimbursed $3,312 of the Fund's operating
expenses.
4. Investment Activity:
For the period ended November 30, 1998, 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
$1,462,665 and $1,320,261, respectively.
5. Composition of Net Assets:
At November 30, 1998, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 2,969,623
Accumulated net investment loss (5,190)
Accumulated net realized gain from security transactions 105,586
Unrealized appreciation on investments 267,291
-----------
Net assets applicable to outstanding shares of beneficial interest $ 3,337,310
===========
</TABLE>
29
<PAGE>
API YORKTOWN CLASSIC VALUE TRUST
COMPARING DISTRIBUTION OF MARKETS IN THE FUND
AND POSITION OF MARKETS ON THE EFFICIENT FRONTIER*
DISTRIBUTION OF MARKETS*
AGRICULTURAL EQUIPMENT 3.6%
TELECOMMUNICATIONS 4.7%
TEXTILES 4.4%
SECURITIES BROKERAGE 20.1%
RETAIL/DISCOUNT & VARIETY 3.0%
RAILROADS 1.0%
PUBLISHING 0.9%
OIL 1.0%
OFFICE EQUIPMENT & SUPPLIES 6.1%
MACHINERY & EQUIPMENT 5.2%
6.3% INSURANCE
9.6% FINANCE
12.7% ELECTRICAL EQUIPMENT
6.0% DRUGS
7.2% COMPUTERS-MAJOR
4.8% CHEMICALS
0.5% CANDY & GUM
2.9% BANKS
CONSERVATIVE MODERATE GROWTH AGGRESSIVE
H o HI-Yield Bonds
I o REITs
G o Long-Term Muni Bonds
H o International Bonds
E o Inter-Term Muni Bonds
R
R o Corporate Bonds
E o Long-term Govt. Bonds
T o Mort. Backed Bonds
U o Short Term Muni. Bonds
R o Inter-term Govt. Bonds
N o Fixed Annuities
o T Notes/Cds
L o Cash & Equivalents
O
W o Balanced Funds
E o Inter-Term Muni Bonds
R o Large Growth Stocks
o Mid-Cap Stocks
o International Stocks
o Small Growth Stocks
o Emerging Equities
x Small Value Stocks
x Large Value Stocks
POSITION OF MARKETS ON THE
EFFICIENT FRONTIER
TIME PERIOD: 1980-1996
x INDICATES MARKETS INCLUDED IN THE YORKTOWN CLASSIC VALUE TRUST*
LOWER RISK HIGHER
* Allocation of the fund is as of Nov. 30 and will change based on
market conditions
30
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
SCHEDULE OF INVESTMENTS
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
----------- -------------
<S> <C> <C>
COMMON STOCKS -- 100.00%
Agricultural Equipment -- 3.57%
Deere & Co. 19,500 $ 681,281
-----------
Banks -- 2.93%
Bankers Trust New York Corp. 3,500 304,500
Chase Manhatten Corp. 4,000 253,750
-----------
558,250
-----------
Candy & Gum -- 0.49%
Hershey Foods Corp. 1,400 94,150
-----------
Chemicals -- 4.84%
PPG Industries, Inc. 15,100 923,931
-----------
Computers -- 7.19%
Dell Computer Corp. 9,000 547,313
International Business Machines,
Inc. 5,000 825,000
-----------
1,372,313
-----------
Drugs -- 5.99%
Bristol Myers Squibb Co. 3,000 367,688
Merck & Co., Inc. 5,000 774,375
-----------
1,142,063
-----------
Electrical Equipment -- 12.73%
General Electric Co. 9,500 859,750
Hewlett Packard Co. 25,000 1,568,750
-----------
2,428,500
-----------
Finance -- 9.58%
American Express Co. 3,900 390,244
Fannie Mae 16,000 1,164,000
First Data Corp. 10,300 274,881
-----------
1,829,125
-----------
Insurance -- 6.31%
Citi Group 24,000 1,204,500
-----------
Machinery and
Equipment -- 5.22%
Dover Corp. 6,000 213,750
Parker Hannifin Corp. 22,500 781,875
-----------
995,625
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------- -------------
<S> <C> <C>
Office Equipment and
Supplies -- 6.08%
Xerox Corp. 10,800 $ 1,161,000
-----------
Oil -- 1.02%
Exxon Corp. 2,600 195,162
-----------
Publishing -- 0.94%
McGraw-Hill Companies, Inc. 2,000 179,000
-----------
Railroads -- 1.02%
CSX Corp. 2,500 104,219
Norfolk Southern Corp. 3,000 91,125
-----------
195,344
-----------
Retail - Discount &
Variety -- 2.96%
WalMart Stores, Inc. 7,500 564,844
-----------
Securities Brokerage -- 20.09%
Bear Stearns Cos., Inc. 10,000 420,000
Donaldson, Lufkin & Jenrette, Inc. 9,300 373,744
Legg Mason, Inc. 5,000 149,062
Lehman Brothers Holdings, Inc. 18,000 898,875
Merrill Lynch & Co., Inc. 10,000 750,000
Morgan Stanley, Dean Witter,
Discover & Co. 12,500 871,875
Raymond James Financial, Inc. 15,000 371,250
-----------
3,834,806
-----------
Telecommunications -- 4.64%
Ameritech Corp. 10,000 541,250
Lucent Technologies 4,000 344,250
-----------
885,500
-----------
Textiles -- 4.40%
Paxar Corp. 80,000 840,000
-----------
Total Investments
(cost $15,855,245) $19,085,394
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $15,855,245) $ 19,085,394
Cash 3,027
Receivable for securities sold 294,440
Other assets 71,055
------------
Total assets 19,453,916
------------
Liabilities:
Accrued distribution fees 10,077
Accrued advisory fees 8,398
Securities purchased 441,919
Securities purchased under loan agreement 4,684,378
Accrued interest expense 28,832
Other liabilities 24,995
------------
Total liabilities 5,198,599
------------
Net Assets $ 14,255,317
============
Shares of beneficial interest outstanding (unlimited number of no par value shares 971,531
============
authorized)
Net asset value, offering and redemption price per share outstanding $ 14.67
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF OPERATIONS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment Income:
Dividends $ 138,004
Interest 884
----------
Total income 138,888
----------
Expenses:
Investment advisory fees 57,197
Distribution fees 57,197
Transfer agent fees 28,742
Custodial fees 5,417
Professional fees 10,872
Registration fees 9,392
Trustee fees 1,095
Insurance 3,440
Shareholder reports 3,189
Miscellaneous 1,168
----------
177,709
Less expenses waived by investment advisor (9,533)
----------
Total operating expenses 168,176
Interest expense 179,909
----------
Total expenses 348,085
----------
Net investment loss (209,197)
----------
Realized and unrealized gain (loss) on investments:
Net realized loss from security transactions (377,048)
Change in unrealized appreciation on investments 468,840
----------
Net realized and unrealized gain on investments 91,792
----------
Net decrease in net assets resulting from operations $ (117,405)
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF CASH FLOWS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C> <C>
Net increase (decrease) in cash:
Cash flows from operating activities:
Dividends and interest received $ 158,762
Operating expenses paid (163,952)
------------
Net cash used in operating activities $ (5,190)
-------------
Cash flows from investing activities:
Purchase of portfolio securities (22,828,800)
Proceeds from disposition of portfolio securities 20,835,878
Interest paid (172,668)
-------------
Net cash used in investing activities (2,165,590)
-------------
Net cash used in operating and investing activities (2,170,780)
Cash flows from financing activities:
Borrowings under loan agreement 6,712,609
Repayments under loan agreement (5,256,782)
Receipts for shareholder purchases and reinvested distributions 1,218,595
Payments for shareholder redemptions and distributions (547,501)
------------
Net cash provided by financing activities (2,126,921)
-------------
Net decrease in cash (43,859)
Cash at beginning of year 46,886
-------------
Cash at the end of year $ 3,027
=============
Reconciliation of net decrease in net assets from operations to net cash used in
operating and investing activities:
Decrease in net assets from operations $ (117,405)
Increase in investments-net $ (2,140,401)
Increase in receivable for securities sold (294,440)
Increase in liability for securities purchased 441,919
Decrease in other assets 15,853
Increase in accrued expenses and other liabilities 15,486
Net realized loss 377,048
Net unrealized appreciation (468,840)
------------
Total adjustments (2,053,375)
-------------
Net cash used in operating and investing activities $ (2,170,780)
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
Nov. 30, 1998 Year Ended
(Unaudited) May 31, 1998
--------------- ---------------
<S> <C> <C>
Operations:
Net investment loss $ (209,197) $ (428,109)
Net realized gain (loss) from security transactions (377,048) 2,342,121
Net change in unrealized appreciation on investments 468,840 (262,014)
------------ ------------
Increase (decrease) in net assets resulting from operations (117,405) 1,651,998
------------ ------------
Distributions:
From net realized gains on security transactions (977,103)
------------
Decrease in net assets resulting from distributions (977,103)
------------
Capital share transactions:
Proceeds from sale of 95,070 and 174,926 shares 1,252,104 2,573,311
Value of 71,927 shares issued upon reinvestment of dividends 958,024
Cost of 40,261 and 247,792 shares redeemed (542,951) (3,602,549)
------------ ------------
Increase in net assets resulting from capital share transactions 709,153 (71,214)
------------ ------------
Total increase in net assets 591,748 603,681
Net assets:
Beginning of year/period 13,663,569 13,059,888
------------ ------------
End of year/period $ 14,255,317 $ 13,663,569
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended
Nov. 30, 1998
(Unaudited)
------------------
<S> <C>
For a share outstanding throughout each
year/period:
Net asset value, beginning of year/period $ 14.90
---------
Income from investment operations:
Net investment income (loss) (0.22)
Net realized and unrealized gain (loss) on
investments (0.01)
----------
Total income (loss) from investment
operations (0.23)
----------
Distributions:
From net investment income
From net realized gain on security transactions
Total distributions
Net asset value, end of year/period $ 14.67
==========
Total return(2) (1.54)%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 14,255
Ratio of operating expenses to average net assets(3) 2.65% (1)
Ratio of total expenses to average net assets(4) 5.48% (1)
Ratio of net investment income (loss) to average
net assets (3.29)%(1)
Portfolio turnover rate 239% (1)
<CAPTION>
For the Year Ended May 31,
----------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
For a share outstanding throughout each
year/period:
Net asset value, beginning of year/period $ 14.23 $ 12.00 $ 12.98 $ 10.12 $ 10.34
-------- -------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) (0.47) (0.25) (0.28) (0.28) 0.06
Net realized and unrealized gain (loss) on
investments 2.19 2.69 0.93 3.33 (0.27)
-------- -------- --------- --------- ---------
Total income (loss) from investment
operations 1.72 2.44 0.65 3.05 (0.21)
-------- -------- --------- --------- ---------
Distributions:
From net investment income (0.07) (0.01)
From net realized gain on security transactions (1.05) (0.21) (1.63) (0.12)
-------- -------- --------- ---------
Total distributions (1.05) (0.21) (1.63) (0.19) (0.01)
-------- -------- --------- --------- ---------
Net asset value, end of year/period $ 14.90 $ 14.23 $ 12.00 $ 12.98 $ 10.12
======== ======== ========= ========= =========
Total return(2) 13.02% 20.59% 6.36% 30.70% (2.04)%
Ratios/Supplemental Data:
Net assets, end of year/period (000's omitted) $ 13,664 $ 13,060 $ 9,072 $ 6,490 $ 5,323
Ratio of operating expenses to average net assets(3) 2.54% 2.65% 2.68% 2.39% 1.99%
Ratio of total expenses to average net assets(4) 5.52% 5.20% 6.22% 5.79% 4.49%
Ratio of net investment income (loss) to average
net assets (3.08)% (2.50)% (2.67)% (2.60)% 0.76%
Portfolio turnover rate 145% 115% 145% 220% 170%
</TABLE>
- -----------
(1) Annualized.
(2) Does not reflect contingent deferred sales charge. Total returns for
periods of less than one year are not annualized.
(3) Without fees waived by the investment advisor and distributor, the
annualized ratio of operating expenses to average net assets would have
been 2.80%, 2.69%, 2.80%, 2.87%, 2.95% and 2.69%, respectively.
(4) Without fees waived by the investment advisor and distributor, the
annualized ratio of total expenses to average net assets would have been
5.63%, 5.67%, 5.35%, 6.41%, 6.34% and 5.19%, respectively
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1998 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 six 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, 1998, 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 $15,885,388, $3,200,006, $3,364,614 and
$164,608, respectively.
d. Use of Estimates
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
37
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
e. Cash and Cash Equivalents
Cash and cash equivalents include amounts invested in overnight money
market accounts, which are readily convertible to known amounts of cash.
These amounts are invested in one financial institution.
f. 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, 1998, the balance due for securities
purchased through leveraging was $4,684,378. The average daily balance
during the year ended November 30, 1998 was $5,128,976 or $5.43 per share,
based on average shares outstanding of 944,084. The maximum amount of
borrowings outstanding at any month-end during the year was $6,123,065.
The Fund's investment securities are pledged as collateral under the
borrowing arrangement.
Interest is charged at a rate of 1.50% plus the brokers loan call rate
(6.875% as of November 30, 1998). Such interest amounted to $179,909 for
the six months ended November 30, 1998.
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.
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.
38
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
5. Investment Activity:
For the year ended November 30, 1998, 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
$23,270,719 and $21,130,318, respectively.
6. Composition of Net Assets:
At November 30, 1998, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 10,504,028
Accumulated net investment loss (209,197)
Accumulated net realized gain from security transactions 730,337
Unrealized appreciation on investments 3,230,149
------------
Net assets applicable to outstanding shares of beneficial interest $ 14,255,317
============
</TABLE>
39
<PAGE>
API TREASURIES TRUST
COMPARING DISTRIBUTION OF MARKETS IN THE FUND
AND POSITION OF MARKETS ON THE EFFICIENT FRONTIER*
DISTRIBUTION OF MARKETS*
USTS 5/07 3.2%
USTS 5/05 9.1%
USTS 5/08 34.6%
53.1 USTS 8/05
CONSERVATIVE MODERATE GROWTH AGGRESSIVE
H o HI-Yield Bonds
I o REITs
G o Long-Term Muni Bonds
H o International Bonds
E o Inter-Term Muni Bonds
R
R o Corporate Bonds
E o Long-term Govt. Bonds
T o Mort. Backed Bonds
U o Short Term Muni. Bonds
R
N o Fixed Annuities
o T Notes/Cds
L o Cash & Equivalents
O
W o Balanced Funds
E
R o Large Growth Stocks
o Mid-Cap Stocks
o International Stocks
o Small Growth Stocks
o Emerging Equities
o Small Value Stocks
o Large Value Stocks
x Inter-term Govt. Bonds
POSITION OF MARKETS ON THE
EFFICIENT FRONTIER
TIME PERIOD: 1980-1996
x INDICATES MARKETS INCLUDED IN THE TREASURIES TRUST*
LOWER RISK HIGHER
* Allocation of the fund is as of Nov. 30 and will change based on
market conditions
40
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
SCHEDULE OF INVESTMENTS
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Principal Value
------------- -------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS -- 100.00%
United States Treasury Stripped Interest Payment
Due 5/15/2005 $ 508,000 $ 373,295
Due 8/15/2005 2,997,000 2,177,516
Due 5/15/2007 198,000 131,489
Due 5/15/2008 2,257,000 1,416,195
---------- ----------
Total investments (cost $3,856,727) $5,960,000 $4,098,495
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $3,856,728) $ 4,098,496
Cash 151,353
Other assets 97,882
------------
Total assets 4,347,731
------------
Liabilities:
Other liabilities 5,069
------------
Total liabilities 5,069
------------
Net assets $ 4,342,662
============
Shares of beneficial interest outstanding (unlimited number of no par value shares 383,065
============
authorized)
Net asset value, offering and redemption price per share outstanding $ 11.34
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENT OF OPERATIONS
for the six months ended November 30, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment income:
Interest $ 136,264
---------
Expenses:
Investment advisory fees 8,059
Transfer agent fees 9,432
Custodial fees 820
Professional fees 4,262
Registration fees 5,556
Trustee fees 1,028
Insurance 485
Shareholder reports 1,361
Organizational expenses 4,077
Miscellaneous 595
---------
35,675
Less expenses waived/reimbursed by investment advisor (18,594)
---------
Total expenses 17,081
---------
Net investment income 119,183
---------
Realized and unrealized gain on investments:
Net realized gain from security transactions 8,244
Change in unrealized appreciation on investments 196,472
---------
Net realized and unrealized gain on investments 204,716
---------
Net increase in net assets resulting from operations $ 323,899
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
For the Period From
Six Months July 2, 1997
Ended (commencement
Nov. 30, 1998 of operations)
(Unaudited) to May 31, 1998
--------------- ----------------
<S> <C> <C>
Operations:
Net investment income $ 119,183 $ 96,794
Net realized gain from security transactions 8,244 1,074
Net change in unrealized appreciation on investments 196,472 45,296
Increase in net assets resulting from operations 323,899 143,164
---------- -----------
Distributions from:
Net investment income (71,042) (45,459)
---------- -----------
Decrease in net assets resulting from distributions (71,042) (45,459)
---------- -----------
Capital share transactions:
Proceeds from sale of 65,585 and 396,805 shares 731,000 4,112,679
Value of 6,292 and 4,334 shares issued upon reinvestment of dividends 69,147 44,776
Cost of 50,287 and 39,664 shares redeemed (554,176) (411,326)
---------- -----------
Increase in net assets resulting from capital share transactions 245,971 3,746,129
---------- -----------
Total increase in net assets 498,828 3,843,834
Net assets:
Beginning of period 3,843,834 -0-
---------- -----------
End of period $4,342,662 $ 3,843,834
========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
Six Months
Ended For the
Nov. 30, 1998 Period Ended
(unaudited) May 31, 1998(3)
--------------- ----------------
<S> <C> <C>
For a share outstanding throughout the period:
Net asset value, beginning of period $ 10.63 $ 10.00
------- --------
Income from investment operations:
Net investment income 0.32 0.43
Net realized and unrealized gain on investments 0.59 0.49
------- --------
Total income from investment operations 0.91 0.92
------- --------
Distributions:
From net investment income (0.20) (0.29)
-------- ---------
Total distributions (0.20) (0.29)
-------- ---------
Net asset value, end of period $ 11.34 $ 10.63
======== =========
Total return* 8.63% 9.33%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) $ 4,343 $ 3,844
Ratio of expenses to average net assets(2) 0.85%(1) 0.84%
Ratio of net investment income to average net assets 5.93%(1) 5.85%
Portfolio turnover rate 6%(1) 3%
</TABLE>
- -----------
(1) Annualized.
(2) Without fees waived/reimbursed by the investment advisor, the ratio of
expenses to average net assets would have been 1.78% and 2.99%,
respectively.
(3) Commencement of operations was July 2, 1997.
* Total returns for periods of less than one year are not annualized.
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
NOTES TO FINANCIAL STATEMENTS
(Information as of and for the six months ended
November 30, 1998 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 six separate portfolios.
The accompanying financial statements include only the Treasuries 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 in
obligations of the U.S. Treasury that are guaranteed as to principal and
interest by the full faith and credit of U.S. government.
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. Organization Expenses
Costs incurred by the Fund in connection with its organization and initial
registration are included in other assets and are being amortized evenly
over two years. At November 30, 1998 such unamortized costs amounted to
$4,056
d. 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, 1998, the aggregate cost of investments for federal
income tax purposes and the unrealized appreciation with respect to each
security where there is an excess of value over tax cost were $3,856,728
and $241,768, respectively.
46
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
e. Cash and Cash Equivalents
Cash and cash equivalents include amounts invested in overnight money
market accounts, which are readily convertible to known amounts of cash.
These amounts are invested in one financial institution.
f. Use of Estimates
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.
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 .40% of the
average daily net assets of the Fund. For the period ended November 30,
1998, the Advisor waived all of its fees in the amount of $8,059. In
addition, the Advisor reimbursed $10,535 of the Fund's operating expenses.
4. Investment Activity:
For the year ended November 30, 1998, purchases and sales of U.S.
government obligations amounted to $149,717 and $125,179, respectively.
There were no purchases and sales of securities other than short-term
obligations and U.S. government obligations.
5. Composition of Net Assets:
At November 30, 1998, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 3,992,100
Accumulated net investment income 99,476
Accumulated net realized gain from security transactions 9,318
Unrealized appreciation on investments 241,768
-----------
Net assets applicable to outstanding shares of beneficial interest $ 4,342,662
===========
</TABLE>
47
<PAGE>
(This Page Intentionally Left Blank)
<PAGE>
SHAREHOLDERS SERVICES
API Trust
P.O. Box 8595
Boston, Massachusetts 02266-8595
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INDEPEPENDENT AUDITORS
PriceWaterHouseCoopers, LLP
250 West Pratt Street
Baltimore, Maryland 21201
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
www.apitrust.co
