<PAGE>
[LOGO OF API TRUST]
--------------------------------------------------------------------------------
Growth Fund
Capital Income Fund
Multiple Index Trust
Yorktown Classic Value Trust
Treasuries Trust
ANNUAL REPORT DATED MAY 31, 2000
<PAGE>
[LOGO OF API TRUST]
CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders 1
Growth Fund
Performance 4
Schedule of Investments 5
Financial Statements 8
Capital Income Fund
Performance 15
Schedule of Investments 16
Financial Statements 17
Multiple Index Trust
Performance 24
Schedule of Investments 25
Financial Statements 26
Yorktown Classic Value Trust
Performance 32
Schedule of Investments 33
Financial Statements 34
Treasuries Trust
Performance 41
Schedule of Investments 42
Financial Statements 43
Report of Independent Accountants 49
</TABLE>
<PAGE>
[LOGO OF API TRUST]
Dear Fellow Shareholders:
Speak softly and carry a big stick. (Teddy Roosevelt). Quietly, the API Trust
has created the big stick. The battle rages and the weak will fail. Under-di-
versified portfolios tend to rise and fall with the heat of the moment. They
may win the battle, but lose the war; they may intimidate some investors to
join after the success has been realized, only to meet defeat when markets
consolidate under the close scrutiny of audited earnings reports. The example
of the Internet craze is a case in point. Our strategy of controlling risk
through diversification and investing in other mutual funds is reflected in
our performance results. Information concerning the performance of our portfo-
lios is included within this report.
STRATEGIES AFFECTING FISCAL YEAR 2000 RESULTS: Growth Fund, Capital Income
Fund, Multiple Index Trust and Yorktown Classic Value Trust.
We believe in owning the best investment opportunities in each and every sec-
tor and sub-sector of the financial markets. As you read through the invest-
ments in each of the portfolios, you will find investments in literally every
market and every major stock exchange worldwide. With few exceptions for il-
liquid securities and markets that are not fully free markets, such as Russia,
you own more of what is good in this world's market than any other fund. We
strongly believe more is better. We have found that portfolios that hold fewer
securities than the actual benchmark to which they are compared tend to be
more volatile, and fail over the long-term to achieve superior performance.
Our strategy is simple, buy the best . . . whether it's individual securities,
indexed securities or specialized funds.
STRATEGIES AFFECTING FISCAL YEAR 2000 RESULTS: Treasuries Trust
From its inception on July 2, 1997, the Treasuries Trust has produced an
annualized rate of return of 5.34%. These have been very turbulent times
within the fixed income marketplace. As the Federal Reserve Board has made nu-
merous increases in short-term interest rates (6 increases through May, 2000),
it has become necessary to position the Treasuries Trust in both a defensive
posture for the short-term until the economy slows, and an offensive posture
for long-term capital appreciation for the year 2001. We believe we have taken
advantage of
1
<PAGE>
the negative impact of short-term rate increases to the fullest extent, and
believe that right now may be one of the best opportunities for investors in
fixed-income securities to lock in significant potential for capital gains.
The Federal Reserve has flashed the yellow caution light for slowing down the
economy for the remainder of the year 2000. We see the benefits of a low in-
flationary, moderate growth economy as being the best case scenario for Trea-
suries Trust investors.
As we look back over the last 12 months, the continued prosperity of the
United States and Western Europe has created significant investment opportuni-
ties. As Old World economies meet New World opportunities, economic activity
has risen to levels not seen in mature, developed countries. Performance of
the major U.S. Equity Markets remained strong through March 31, 2000, driven
by rising productivity and corporate earnings. However, inflation fears
prompted the Federal Reserve Board to continue its more restrictive monetary
policy. The Fed followed up its interest rate increases of June 30 and August
24, 1999 with four additional rate increases between November, 1999 and May,
2000. As of this writing, the federal funds rate -- the rate banks charge each
other on overnight loans -- is 6.5%, the highest it has been in five years.
While these rate increases were not enough to completely dampen investors' en-
thusiasm, they introduced a new note of caution--at least for the "old econo-
my" stocks of the Dow Jones Industrial Average. At first, the NASDAQ Composite
(the index that includes many younger technology and small capitalization com-
panies) seemed unfazed by the interest rate increases. In fact, soaring prices
and demand for technology stocks kept prices high and were largely responsible
for the overall market's impressive gains through December, 1999. During April
and May, 2000 Fed policy has resulted in sharp declines in both the NASDAQ
Composite and the S&P 500, as well as overseas markets. We believe this re-
sults in a healthy reality check for both long-term growth and inflation pre-
vention.
FORECAST OF ECONOMIC GROWTH AND INFLATION
The release of economic data over the past six months has prompted The Federal
Reserve to hold fast with its consistent tightening of monetary policy. Real
GDP is expected to grow 4.5%+ this calendar year. That compares with growth of
4.2% last year and 4.3% in 1998. It would also mark the largest year after
year rising of real GDP since 1984. These consistent increases in GDP have re-
enforced the Fed's concerns that tight labor markets may ultimately lead to
acceleration in labor costs beyond the rate of growth in productivity.
Our forecast for the remainder of the year 2000 continues to show that there
will be a real effect to the Federal Reserve's consistent increasing of short-
term interest rates to slow economic growth within the United States. We be-
lieve the GDP will slow to approximately
2
<PAGE>
3% by the fourth quarter and continue throughout the year 2001. Slower con-
sumer spending is expected to be the primary catalyst for moderating growth.
Total housing starts and auto sales should slow to sustainable levels that are
beneath Federal Reserve concerns for triggering inflation over this cool-down
period.
As far as the Global Markets are concerned, real GDP growth has risen for Eu-
rope and most of the Pacific Far East. With the exception of Japan, the con-
sensus forecast for short-term interest rates in the major industrial econo-
mies continues to rise, with central banks in most nations now in full tight-
ening mode. The consensus has been consistently wrong about the value of the
Euro versus the U.S. dollar for more than a year. Nonetheless, most analysts
continue to predict the Euro will rise sharply in value against the U.S dollar
before year-end.
We believe that nowhere in the world of finance and investment strategy is
there a greater enemy than under-diversification. With the explosion of infor-
mation in the new economy age, investors are constantly bombarded with sensa-
tionalism, which attracts assets but holds great risk as certain sectors of
the markets move in and out of the leader list. Successful investing requires
an open mind, close scrutiny and patience.
GOING FORWARD
We believe this period of extraordinary returns in the U.S. and European fi-
nancial markets should be viewed as an outgrowth of the actual success of the
underlying companies within these markets. We do not believe these markets are
overpriced. In fact, we believe there is significant opportunity for investors
who have at least a two to five year time horizon. Many world stock markets
have underperformed the 12-14% annualized rates of return that today's envi-
ronment makes it reasonable to expect. As a result, we see significant oppor-
tunities as we enter the second half of 2000.
PricewaterhouseCoopers LLP, independent accountants for the API Trust mutual
funds, have completed their annual examination, and audited financial state-
ments for the fiscal year ended May 31, 2000 accompany this report.
Thank you for your continued confidence. We look forward to the future with
your support.
Best Regards,
/s/ David D. Basten
David D. Basten
President
3
<PAGE>
[GROWTH FUND GRAPH]
Comparison of change in value of $10,000 in the Growth Fund,
MSCI World Index and the Consumer Price Index, year ended May 31.
1990 1991 1992 1993 1994 1995
Growth Fund $10,000 $11,356 $11,915 $13,467 $14,626 $16,275
Consumer Price Index 10,000 10,495 10,813 11,161 11,416 11,780
MSCI World Index 10,000 10,126 10,304 11,793 12,990 14,411
1996 1997 1998 1999 2000
Growth Fund $19,698 $21,336 $25,348 $27,395 $34,017
Consumer Price Index 12,121 12,392 12,601 12,864 13,253
MSCI World Index 17,057 20,054 24,158 27,428 31,254
AVERAGE ANNUAL
TOTAL RETURN
1 Year 5 Year 10 Year
22.67% 15.89% 13.02%
Past performance is not predictive of future performance
4
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
MUTUAL FUNDS -- 64.49%
Large Cap Growth Funds -- 1.73%
Legg Mason Value Trust 15,497 $1,159,354
Rydex Series Trust OTC Fund 14,179 347,253
----------
1,506,607
----------
Large Cap Core Funds -- 0.61%
Enterprise Growth Fund 23,894 534,528
----------
Large Cap Value Funds -- 4.80%
Davis New York Venture Fund 87,779 2,722,027
Pioneer Fund Inc. 29,946 1,463,483
----------
4,185,510
----------
Multi Cap Growth
Funds -- 1.91%
MFS Emerging Growth Fund 16,671 1,049,128
Phoenix Seneca Strategic Theme Fund 30,122 616,001
----------
1,665,129
----------
Multi Cap Core Funds -- 2.12%
Vanguard Index Total Stock Market Fund 58,783 1,849,909
----------
Mid Cap Growth Funds -- 3.11%
AIM Equity Aggressive Growth Fund 22,614 1,526,006
IDEX Capital Appreciation Fund 36,411 1,184,106
----------
2,710,112
----------
Mid Cap Core Funds -- 4.96%
AIM Mid Cap Equity Fund 28,928 766,595
Sentinel Mid Cap Growth Fund, Inc. 69,790 1,436,996
Vanguard Index Extended Market Fund 65,627 2,122,405
----------
4,325,996
----------
Mid Cap Value Funds -- 0.36%
Boston Partners Mid Cap Value Fund 28,544 315,414
----------
Small Cap Growth Funds -- 3.30%
Kemper Small Cap Equity Fund 88,203 591,846
Phoenix Small Cap Fund 55,960 1,397,345
Transamerica Small Company Fund 25,342 892,042
----------
2,881,233
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Small Cap Core Funds -- 1.17%
Guardian Park Avenue Small Cap Fund 60,610 $ 1,019,463
-----------
Emerging Markets Funds -- 3.70%
Goldman Sachs Emerging Markets Fund 63,199 666,123
Deutsche Emerging Markets Equity Fund 41,993 318,729
Putnam Emerging Markets Fund 214,155 2,244,347
-----------
3,229,199
-----------
Small Cap Value Funds -- 1.24%
Goldman Sachs Small Cap Value Fund 51,882 1,078,124
-----------
Equity Income Funds -- 0.38%
Kemper-Dreman High Return Fund 11,824 328,853
-----------
European Region Funds -- 3.36%
Flag Investors European Mid-Cap Fund 33,288 697,071
Kemper New Europe Fund 46,220 783,903
Vanguard International Equity Index Fund 52,891 1,449,749
-----------
2,930,723
-----------
Global Funds -- 0.32%
Janus Worldwide Fund 3,741 276,805
-----------
Global Small Cap Funds -- 2.47%
American SmallCap World Fund 57,101 2,151,601
-----------
International Funds -- 14.55%
Deutsche EAFE Equity Index Fund 621,149 8,323,402
Dresdner RCM International Growth Equity Fund 22,714 419,988
Deutsche International Select Equity Fund 32,807 794,608
Neuberger International Fund 20,294 416,438
Pioneer International Growth Fund 55,549 1,195,433
Putnam International Growth Fund 54,760 1,533,833
-----------
12,683,702
-----------
Latin American Fund -- 1.36%
T. Rowe Price Latin America Fund 124,223 1,190,062
-----------
</TABLE>
5
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS, Continued
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Pacific Region Funds -- 0.62%
Flag Investors Top Asia Fund 26,301 $ 542,346
-----------
Pacific Ex Japan Funds -- 0.86%
Goldman Sachs Growth Fund 67,191 751,869
-----------
S&P 500 Funds -- 9.52%
Deutsche Equity 500 Index Fund 2,105 373,043
Federated Index Trust Max-Cap Fund 71,257 2,065,764
T. Rowe Price Index Equity Index Fund 22,155 848,565
SSGA S&P 500 Index Fund 72,210 1,785,031
Vanguard Index 500 Portfolio 24,584 3,225,484
-----------
8,297,887
-----------
Science & Technology
Funds -- 2.04%
John Hancock Global Technology Fund 23,174 1,779,143
-----------
Total Mutual Funds
(cost $40,709,870) 56,234,215
-----------
COMMON STOCKS -- 15.60%
Banks -- 1.34%
Associated Banc Corp. 3,700 94,176
Pacific Century Financial 6,600 148,500
Compass Bancshares 5,800 117,450
Fleet Boston Corp. 3,600 136,125
First Union Corp. 3,300 116,119
National Australia Bank 1,500 111,563
National City Corp. 5,200 104,000
Regions Financial Corp. 4,800 108,600
Summit Bancorp 4,000 114,750
Wachovia Corp. 1,700 117,512
-----------
1,168,795
-----------
Beverage Industry -- 0.26%
Coca Cola Co. 4,200 224,175
-----------
Chemical Industry -- 0.22%
Dow Chemical Co. 1,800 192,713
-----------
Computer &
Peripherals -- 0.80%
EMC Corp. 6,000 697,875
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Computer Software &
Services -- 3.34%
Adobe Systems 2,200 $ 247,638
Electronics for Imaging Inc. 1,700 62,581
Oracle Corp. 31,000 2,228,125
Siebel Systems 3,200 374,400
----------
2,912,744
----------
Diversified Companies -- 1.36%
Citi Group 19,000 1,181,563
----------
Drug Industry -- 0.58%
Bristol Myers Squibb Co. 1,400 77,087
Merck & Co. Inc. 2,900 216,413
Pfizer Inc. 4,800 213,900
----------
507,400
----------
Drugstore Industry -- 0.50%
CVS Corp. 10,000 435,000
----------
Electrical Equipment -- 0.24%
Emerson Electric Co. 3,500 206,500
----------
Entertainment -- 0.42%
Disney (Walt) Co. 8,600 362,813
----------
Food Processing
Industry -- 0.49%
Campbell Soup Co. 7,000 217,000
General Mills Co. 5,300 210,343
----------
427,343
----------
Foreign
Telecommunications -- 0.75%
Nortel Networks 12,000 651,750
----------
Medical Supplies
Industry -- 1.72%
Johnson & Johnson 16,786 1,502,347
----------
Petroleum Industry -- 0.23%
Ashland Inc. 5,800 202,638
----------
Railroads -- 0.22%
Kansas City Southern Industries, Inc. 2,800 188,300
----------
Retail -- 1.09%
TJX Corp. 17,500 378,437
Wal Mart Stores Inc. 10,000 576,250
----------
954,687
----------
</TABLE>
6
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
SCHEDULE OF INVESTMENTS, Continued
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Securities Brokerage -- 0.48%
Merrill Lynch & Co. Inc. 4,200 $ 414,225
-----------
Semiconductor -- 1.56%
Advance Micro Devices 6,000 488,625
Atmel Corp. 6,600 252,038
Intel Corp. 5,000 623,437
-----------
1,364,100
-----------
Total Common Stocks
(cost $10,137,506) 13,594,968
-----------
EXCHANGE TRADED INDEX SHARES -- 19.91%
Diamonds Trust Series 30,000 3,158,439
i Shares MSCI Canada Index Fund 7,000 127,312
i Shares MSCI Germany Index
Fund 5,000 123,750
i Shares MSCI Hong Kong Index
Fund 11,000 127,875
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
i Shares MSCI Japan Index Fund 8,500 $ 122,187
i Shares MSCI Belgium Index Fund 9,500 124,688
i Shares MSCI Switzerland Index
Fund 7,500 118,125
i Shares MSCI Austria Index Fund 15,500 123,031
i Shares MSCI United Kingdom
Index Fund 6,500 123,094
i Shares MSCI Mexico Index Fund 8,000 120,500
SPDR -- Nasdaq 100 Index 31,000 2,573,483
SPDR -- S&P 500 Index 43,000 6,127,500
SPDR -- Financial Sector Index 71,000 1,778,330
SPDR -- Technology Sector Index 53,000 2,616,875
-----------
Total Exchange Traded Index Shares
(cost $16,655,934) 17,365,189
-----------
</TABLE>
<TABLE>
<S> <C> <C>
Total
Investments
(cost
$67,503,310)$87,194,372
===========
</TABLE>
7
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $67,503,310) $87,194,372
Cash 2,581,710
Other assets 63,194
-----------
Total assets 89,839,276
-----------
Liabilities:
Accrued distribution fees 68,231
Accrued advisory fees 70,147
Payable for shareholder redemptions 31,380
Payable for securities purchased 1,111,724
Other liabilities 98,635
-----------
Total liabilities 1,380,117
-----------
Net Assets $88,459,159
===========
Shares of beneficial interest outstanding (unlimited number of no
par value shares authorized) 5,688,913
===========
Net asset value and offering price per share outstanding $ 15.55
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENT OF OPERATIONS
for the year ended May 31, 2000
<TABLE>
<S> <C>
Investment Income:
Dividends $ 439,458
Interest 63,331
-----------
Total income 502,789
-----------
Expenses:
Investment advisory fees 810,368
Distribution fees 810,793
Transfer agent fees 229,389
Custodial fees 24,545
Professional fees 105,389
Registration fees 20,970
Trustee fees 18,326
Insurance 33,608
Shareholder reports 17,905
Miscellaneous 7,688
-----------
2,078,981
Less expenses waived by investment advisor and distributor (125,996)
-----------
Total expenses 1,952,985
-----------
Net investment loss (1,450,196)
-----------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions 7,983,395
Capital gain distributions from mutual funds 2,134,251
Change in unrealized appreciation on investments 7,054,155
-----------
Net realized and unrealized gain on investments 17,171,801
-----------
Net increase in net assets resulting from operations $15,721,605
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended May 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Operations:
Net investment loss $ (1,450,196) $ (1,080,271)
Net realized gain from security transactions 7,983,395 3,675,641
Capital gain distributions from mutual funds 2,134,251 3,666,807
Net change in unrealized appreciation on
investments 7,054,155 (538,472)
------------ ------------
Increase in net assets resulting from operations 15,721,605 5,723,705
------------ ------------
Distributions:
From net realized gain on security transactions (8,434,195) (5,447,088)
------------ ------------
Decrease in net assets resulting from
distributions (8,434,195) (5,447,088)
------------ ------------
Capital share transactions:
Proceeds from sale of 1,081,060 and 649,068 shares 17,435,364 8,869,932
Value of 625,631 and 406,482 shares issued upon
reinvestment of dividends 8,289,551 5,316,787
Cost of 1,075,090 and 1,458,980 shares redeemed (16,317,311) (19,872,341)
------------ ------------
Increase (decrease) in net assets resulting from
capital share transactions 9,407,604 (5,685,622)
------------ ------------
Total increase (decrease) in net assets 16,695,014 (5,409,005)
Net assets:
Beginning of year 71,764,145 77,173,150
------------ ------------
End of year $ 88,459,159 $ 71,764,145
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
FINANCIAL HIGHLIGHTS
for the five years ended May 31, 2000
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout each year:
Net asset value, beginning
of year $ 14.19 $ 14.13 $ 13.42 $ 14.00 $ 12.48
------- ------- ------- ------- -------
Income from investment
operations:
Net investment loss (.25) (.21) (0.08) (0.17) (0.14)
Net realized and unrealized
gain on investments 3.35 1.32 2.36 1.25 2.67
------- ------- ------- ------- -------
Total income from
investment operations 3.10 1.11 2.28 1.08 2.53
------- ------- ------- ------- -------
Distributions:
From net realized gain on
security transactions (1.74) (1.05) (1.57) (1.66) (1.01)
------- ------- ------- ------- -------
Total distributions (1.74) (1.05) (1.57) (1.66) (1.01)
------- ------- ------- ------- -------
Net asset value, end of
year $ 15.55 $ 14.19 $ 14.13 $ 13.42 $ 14.00
======= ======= ======= ======= =======
Total return(/1/) 24.17% 8.46% 18.39% 8.32% 21.03%
Ratios/Supplemental Data:
Net assets, end of year
(000's omitted) $88,459 $71,764 $77,173 $68,717 $68,306
Ratio of expenses to
average net assets(/2/) 2.42% 2.32% 2.18% 2.18% 2.24%
Ratio of net investment
income (loss) to average
net assets (1.79)% (1.49)% (0.62)% (1.31)% (1.08)%
Portfolio turnover rate 61% 86% 57% 84% 63%
</TABLE>
-----------
(/1/) Does not reflect contingent deferred sales charge.
(/2/) Without fees waived by the investment advisor and distributor, the ratio
of expenses to average net assets would have been 2.57%, 2.58%, 2.54%,
2.55% and 2.57%, respectively.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a Massachu-
setts 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 comprised of six separate portfolios. The accom-
panying 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 ("underlying
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 closing net asset values in accordance
with the 1940 Act. Equity securities listed or regularly traded on a se-
curities exchange are valued at the last quoted sales price on the ex-
change where they are principally traded.
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. Divi-
dend income and distributions to shareholders are recorded on the ex-div-
idend date. Interest income and expenses are recorded on an accrual ba-
sis.
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 substantially all of its investment company
taxable income to its shareholders. Therefore, no federal income tax pro-
vision is required.
As of May 31, 2000, the aggregate cost of investments for federal income
tax purposes, the net unrealized appreciation on a federal income tax ba-
sis, and the gross unrealized appreciation and depreciation with respect
to securities where there is an excess of value over tax cost or tax cost
over value were $67,548,798, $19,645,574, $19,976,987 and $331,413, re-
spectively.
d. Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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
12
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those esti-
mates.
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 princi-
pal stockholder is also a trustee of the Trust, serves as the Fund's in-
vestment 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 year ended May
31, 2000, the Advisor waived $111,895 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. The Distributor waives a portion of
its fees pursuant to certain rules of the National Association of Securi-
ties Dealers, Inc. ("NASD"). Under these rules, 12b-1 fees received by Dis-
tributors are combined with those charged by the underlying funds in deter-
mining the maximum percentage limits currently permitted by the NASD. Dur-
ing the year ended May 31, 2000, the Distributor waived $14,101 of its
fees.
In addition, to the extent possible, the Distributor is generally desig-
nated 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 year ended May 31, 2000, the Distributor received $111,895 from
brokerage commissions earned on its execution of purchases of portfolio in-
vestments for the Fund. The principal stockholder of the Distributor is
also a trustee of the Trust.
A 1.50% contingent deferred sales charge is generally imposed on redemp-
tions made within five years of the date that Fund shares are purchased.
13
<PAGE>
AMERICAN PENSION INVESTORS TRUST
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, Continued
5. Investment Activity:
For the year ended May 31, 2000, 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 $51,243,939
and $48,171,623, respectively.
6. Composition of Net Assets:
At May 31, 2000, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $60,874,942
Accumulated net realized gain from security transactions 7,893,155
Unrealized appreciation on investments 19,691,062
-----------
Net assets applicable to outstanding shares of beneficial
interest $88,459,159
===========
</TABLE>
In order for the Fund's capital accounts and distributions to reflect the
tax character of certain transactions $711,113 of net operating losses was
reclassified to paid-in capital, and $739,084 of short-term capital gains
was reclassified to undistributed net investment income during the year
ended May 31, 2000. The results of operations and net assets were not af-
fected by the reclassification.
14
<PAGE>
[CAPITAL INCOME FUND GRAPH]
Comparison of change in value of $10,000 in the Capital Income Fund,
MSCI World Index and the Consumer Price Index, year ended May 31.
1990 1991 1992 1993 1994 1995
Capital Income Fund $10,000 $10,963 $11,747 $12,886 $13,503 $15,269
MSCI World Index 10,000 10,126 10,304 11,793 12,990 14,411
Consumer Price Index 10,000 10,495 10,813 11,161 11,416 11,780
1996 1997 1998 1999 2000
Capital Income Fund $17,965 $21,994 $27,655 $29,369 $32,145
MSCI World Index 17,057 20,054 24,158 27,428 31,254
Consumer Price Index 12,121 12,392 12,601 12,864 13,253
AVERAGE ANNUAL
TOTAL RETURN
1 Year 5 Year 10 Year
7.99% 16.06% 12.39%
Past performance is not predictive of future performance
15
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
SCHEDULE OF INVESTMENTS
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
MUTUAL FUNDS -- 75.32%
Large Cap Core Funds -- 27.47%
Kemper Blue Chip Fund 52,026 $1,098,790
Principal Preservation S&P 100 Plus Portfolio 41,910 1,840,312
----------
2,939,102
----------
Large Cap Value Funds -- 9.33%
Fidelity Advisor Growth & Income Fund 53,599 998,023
----------
Multi Cap Core Funds -- 0.70%
Vanguard Index Trust Total Stock Market Portfolio 2,378 74,858
----------
Mid Cap Core Funds -- 6.07%
T. Rowe Price Extended Equity Market Index Fund 51,652 649,277
----------
Equity Income Funds -- 3.11%
T. Rowe Price Equity Income Fund 13,572 333,068
----------
European Region Funds -- 8.86%
Goldman Sachs European Equity Fund 24,271 336,651
Kemper New Europe Fund 36,057 611,538
----------
948,189
----------
Latin American Funds -- 6.12%
Van Kampen American Capital Latin American Fund 51,449 654,958
----------
S&P 500 Funds -- 8.26%
Federated Index Trust Max-Cap Fund 15,397 446,383
Vanguard Index Trust 500 Portfolio 3,336 437,694
----------
884,077
----------
World Income Funds -- 5.40%
Bear Stearns Emerging Markets Debt Portfolio 58,276 577,525
----------
Total Mutual Funds
(cost $6,820,711) 8,059,077
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS -- 5.56%
Automobiles & Trucks -- 1.71%
General Motors Corp. 2,600 $ 183,625
-----------
Banks -- 3.85%
First Union Corp. 4,000 140,750
Keycorp 6,000 126,000
Bank One Corp. 4,400 145,475
-----------
412,225
-----------
Total Common Stocks
(cost $557,365) 595,850
-----------
U.S. TREASURY NOTES -- 8.03%
U.S. Treasury Note 5.625% due 5/15/2008 (cost $856,606) 859,184
-----------
EXCHANGE TRADED
INDEX SHARES -- 11.09%
i Shares MSCI Belgium Index Fund 18,000 236,250
i Shares MSCI Switzerland Index Fund 15,000 236,250
i Shares MSCI Austria Index Fund 32,000 254,000
i Shares MSCI United Kingdom Index Fund 13,000 246,188
SPDR -- S&P 500 Index 1,500 213,750
-----------
Total Exchange Traded Index Shares
(cost $1,143,418) 1,186,438
-----------
Total Investments
(cost $9,378,100) $10,700,549
===========
</TABLE>
16
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $9,378,100) $10,700,549
Cash 342,406
Receivable for shareholder purchases 50,000
Other assets 12,820
-----------
Total assets 11,105,775
-----------
Liabilities:
Accrued distribution fees 3,629
Accrued advisory fees 5,554
Other liabilities 22,147
-----------
Total liabilities 31,330
-----------
Net assets $11,074,445
===========
Shares of beneficial interest outstanding (unlimited number of no
par value shares authorized) 485,023
===========
Net asset value and offering price per share outstanding $ 22.83
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENT OF OPERATIONS
for the year ended May 31, 2000
<TABLE>
<S> <C>
Investment income:
Dividends $ 236,270
Interest 62,659
----------
Total income 298,929
----------
Expenses:
Investment advisory fees 80,171
Distribution fees 66,809
Transfer agent fees 43,527
Custodial fees 5,004
Professional fees 16,777
Registration fees 15,067
Trustee fees 3,174
Insurance 6,175
Shareholder reports 5,464
Miscellaneous 2,554
----------
244,722
Less expenses waived by investment advisor and distributor (54,398)
----------
Total expenses 190,324
----------
Net investment income 108,605
----------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions 1,370,151
Capital gain distributions from mutual funds 461,475
Change in unrealized appreciation on investments (474,118)
----------
Net realized and unrealized gain on investments 1,357,508
----------
Net increase in net assets resulting from operations $1,466,113
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended May 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Operations:
Net investment income $ 108,605 $ 10,517
Net realized gain from security transactions 1,370,151 560,298
Capital gain distributions from mutual funds 461,475 525,948
Net change in unrealized appreciation on investments (474,118) (187,889)
----------- -----------
Increase in net assets resulting from operations 1,466,113 908,874
----------- -----------
Distributions:
From net investment income (295,335)
From net realized gain on security transactions (1,046,090) (744,723)
----------- -----------
Decrease in net assets resulting from distributions (1,341,425) (744,723)
----------- -----------
Capital share transactions:
Proceeds from sale of 175,298 and 194,245 shares 4,098,482 4,300,974
Value of 56,629 and 33,166 shares issued upon
reinvestment of dividends 1,240,231 706,114
Cost of 347,160 and 131,961 shares redeemed (8,212,124) (2,940,127)
----------- -----------
Increase (decrease) in net assets resulting from
capital share transactions (2,873,411) 2,066,961
----------- -----------
Total increase (decrease) in net assets (2,748,723) 2,231,112
Net assets:
Beginning of year 13,823,168 11,592,056
----------- -----------
End of year $11,074,445 $13,823,168
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS
for the five years ended May 31, 2000
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout each year:
Net asset value, beginning of
year $ 23.03 $ 22.96 $ 19.92 $17.57 $17.21
------- ------- ------- ------ ------
Income from investment
operations:
Net investment income .15 .02 0.16 0.32 0.34
Net realized and unrealized gain
on investments 1.90 1.38 4.64 3.49 2.57
------- ------- ------- ------ ------
Total income from investment
operations 2.05 1.40 4.80 3.81 2.91
------- ------- ------- ------ ------
Distributions:
From net investment income (.50) (0.30) (0.48) (0.28)
From net realized gain on
security transactions (1.75) (1.33) (1.46) (0.98) (2.27)
------- ------- ------- ------ ------
Total distributions (2.25) (1.33) (1.76) (1.46) (2.55)
------- ------- ------- ------ ------
Net asset value, end of year $ 22.83 $ 23.03 $ 22.96 $19.92 $17.57
======= ======= ======= ====== ======
Total return(/1/) 9.49% 6.57% 25.30% 22.43% 17.65%
Ratios/Supplemental Data:
Net assets, end of year (000's
omitted) $11,074 $13,823 $11,592 $8,098 $4,417
Ratio of expenses to average net
assets(/2/) 1.43% 1.34% 1.47% 1.77% 2.22%
Ratio of net investment income
(loss) to average net assets 0.82% 0.09% 0.80% 1.84% 1.43%
Portfolio turnover rate 53% 79% 33% 67% 40%
</TABLE>
-----------
(/1/) Does not reflect contingent deferred sales charge.
(/2/) Without fees waived by the investment advisor, the ratio of expenses to
average net assets would have been 1.84%, 1.94%, 2.07%, 2.38% and 2.82%,
respectively.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a Massachu-
setts 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 comprised of six separate portfolios. The accom-
panying 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 primarily in mutual funds
("underlying 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 closing net asset values in accordance
with the 1940 Act. Equity securities listed or regularly traded on a se-
curities exchange are valued at the last quoted sales price on the ex-
change where they are principally traded.
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. Divi-
dend income and distributions to shareholders are recorded on the ex-div-
idend date. Interest income and expenses are recorded on an accrual ba-
sis.
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 compa-
nies and to distribute substantially all of its investment company tax-
able income to its shareholders. Therefore, no federal income tax provi-
sion is required.
As of May 31, 2000, the aggregate cost of investments for federal income
tax purposes, the net unrealized appreciation on a federal income tax ba-
sis, and the gross unrealized appreciation and depreciation with respect
to securities where there is an excess of value over tax cost or tax cost
over value were $9,392,320, $1,308,229, $1,427,895 and $119,666, respec-
tively.
d. Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that affect the reported
21
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
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 re-
sults 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 princi-
pal stockholder is also a trustee of the Trust, serves as the Fund's in-
vestment advisor and manager. For its services, the Advisor receives a fee,
calculated daily and payable monthly, at an annual rate of .60% of the av-
erage 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 year ended May 31, 2000, the Advisor
waived $52,413 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 an annual fee of .50% of
the Fund's average daily net assets. The Distributor waives a portion of
its fees pursuant to certain rules of the National Association of Securi-
ties Dealers, Inc. ("NASD"). Under these rules, 12b-1 fees received by Dis-
tributors are combined with those charged by the underlying funds in deter-
mining the maximum percentage limits currently permitted by the NASD. Dur-
ing the year ended May 31, 2000, the Distributor waived $1,985 of its fees.
In addition, to the extent possible, the Distributor is generally desig-
nated 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 year ended May 31, 2000, the Distributor received $34,498 from
brokerage commissions earned on its execution of purchases of portfolio in-
vestments for the Fund. The principal stockholder of the Distributor is
also a trustee of the Trust.
A 1.50% contingent deferred sales charge in generally imposed on redemp-
tions made within five years of the date that Fund shares are purchased.
22
<PAGE>
AMERICAN PENSION INVESTORS TRUST
CAPITAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS, Continued
5. Investment Activity:
For the year ended May 31, 2000, 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 $6,837,013 and
$10,337,126, respectively.
6. Composition of Net Assets:
At May 31, 2000, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 8,057,766
Accumulated net investment income 40,712
Accumulated net realized gain from security transactions 1,653,518
Unrealized appreciation on investments 1,322,449
-----------
Net assets applicable to outstanding shares of beneficial
interest $11,074,445
===========
</TABLE>
In order for the Fund's capital accounts and distributions to reflect the
tax character of certain transactions, $127,306 of short-term capital gains
was reclassified to undistributed net investment income during the year
ended May 31, 2000. The results of operations and net assets were not af-
fected by the reclassification.
23
<PAGE>
[MULTIPLE INDEX TRUST GRAPH]
Comparison of change in value of $10,000 in the Multiple Index Trust,
MSCI World Index and the Consumer Price Index, for the period
July 2, 1997 (Commencement of Operations) to May 31, 2000.
7/2/97 5/31/98 5/31/99 5/31/2000
Multiple Index Trust $10,000 $11,199 $13,159 $15,569
Consumer Price Index 10,000 11,472 13,026 14,842
MSCI World Index 10,000 10,156 10,368 10,682
AVERAGE ANNUAL
TOTAL RETURN
Since
1 Year Inception
17.96% 16.38%
Past performance is not predictive of future performance
24
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
SCHEDULE OF INVESTMENTS
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
MUTUAL FUNDS -- 67.93%
Large Cap Growth Funds -- 6.04%
Rydex Series Trust OTC Fund 26,913 $ 659,114
-----------
Large Cap Core Funds -- 7.64%
Principal Preservation S&P 100 Plus Portfolio 18,990 833,871
-----------
Multi Cap Core Funds -- 3.89%
Vanguard Index Total Stock Market Portfolio 13,484 424,351
-----------
Mid Cap Core Funds -- 3.17%
T. Rowe Price Extended Equity Market Index Fund 27,510 345,805
-----------
Mid Cap Value Funds -- 0.40%
Federated Index Trust Mid-Cap Fund 2,367 43,722
-----------
Emerging Markets Fund -- 1.00%
Vanguard International Index Emerging Markets Portfolio 10,191 108,849
-----------
Small Cap Value Funds -- 1.43%
Vanguard Index Small Cap Value 18,679 156,719
-----------
International Funds -- 9.18%
Deutsche EAFE Equity Index Fund 67,628 906,217
Vanguard Total International Index Fund 7,337 96,198
-----------
1,002,415
-----------
Pacific Region Funds -- 1.63%
Vanguard International Index Pacific Portfolio 16,613 177,433
-----------
S&P Index Objective Funds -- 20.94%
Federated Index Trust Max-Cap Fund 14,256 413,288
T. Rowe Price Equity Index Fund 14,478 554,509
SSGA S&P 500 Index Fund 23,934 591,652
Vanguard Index Trust 500 Portfolio 5,535 726,197
-----------
2,285,646
-----------
Science & Technology Funds -- 12.61%
Principal Preservation Tech 100 Index Portfolio 36,483 1,375,777
-----------
Total Mutual Funds (cost $5,641,401) 7,413,702
-----------
EXCHANGE TRADED INDEX SHARES -- 32.07%
Diamonds Trust Series 16,300 1,716,085
i Shares Japan Index Fund 12,000 172,500
SPDR -- S&P Mid Cap 400 Index 6,000 525,375
SPDR -- Nasdaq 100 Index 4,500 373,570
SPDR -- S&P 500 Index 5,000 712,500
-----------
Total Exchange Traded Index Shares (cost $3,331,471) 3,500,030
-----------
Total Investments (cost $8,972,872) $10,913,732
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $8,972,872) $10,913,732
Cash 461,931
Receivable for shareholder purchases 37,232
Other assets 5,855
-----------
Total assets 11,418,750
-----------
Liabilities:
Other liabilities 14,595
-----------
Total liabilities 14,595
-----------
Net assets $11,404,155
===========
Shares of beneficial interest outstanding (unlimited number of no
par value shares authorized) 762,333
===========
Net asset value and offering price per share outstanding $ 14.96
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENT OF OPERATIONS
for the year ended May 31, 2000
<TABLE>
<S> <C>
Investment income:
Dividends $ 74,506
Interest 25,064
----------
Total income 99,570
----------
Expenses:
Investment advisory fees 61,328
Transfer agent fees 28,706
Custodial fees 5,122
Professional fees 12,544
Registration fees 14,732
Trustee fees 1,405
Insurance 2,686
Shareholder reports 3,442
Miscellaneous 2,138
----------
132,103
Less expenses waived by investment advisor (22,392)
----------
Total expenses 109,711
----------
Net investment loss (10,141)
----------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions 7,942
Capital gain distributions from mutual funds 119,285
Change in unrealized appreciation on investments 1,163,488
----------
Net realized and unrealized gain on investments 1,290,715
----------
Net increase in net assets resulting from operations $1,280,574
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended May 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Operations:
Net investment loss $ (10,141) $ (3,503)
Net realized gain (loss) from security transactions 7,942 (52,747)
Capital gain distributions from mutual funds 119,285 113,199
Net change in unrealized appreciation on
investments 1,163,488 626,075
----------- -----------
Increase in net assets resulting from operations 1,280,574 683,024
----------- -----------
Distributions:
From net investment income (14,574)
From net realized gain on security transactions (120,540) (77,414)
----------- -----------
Decrease in net assets resulting from
distributions (135,114) (77,414)
----------- -----------
Capital share transactions:
Proceeds from sale of 441,480 and 298,823 shares 6,476,107 3,530,158
Value of 8,055 and 6,537 shares issued upon
reinvestment of dividends 125,703 75,303
Cost of 129,254 and 142,195 shares redeemed (1,955,431) (1,678,936)
----------- -----------
Increase in net assets resulting from capital
share transactions 4,646,379 1,926,525
----------- -----------
Total increase in net assets 5,791,839 2,532,135
Net assets:
Beginning of year 5,612,316 3,080,181
----------- -----------
End of year $11,404,155 $ 5,612,316
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
FINANCIAL HIGHLIGHTS
for the years ended May 31, 2000 and 1999 and
the period ended May 31, 1998(/1/)
<TABLE>
<CAPTION>
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
For a share outstanding throughout the period:
Net asset value, beginning of year/period $ 12.70 $11.04 $10.00
------- ------ ------
Income from investment operations:
Net investment income (loss) (0.01) (0.01) 0.03
Net realized and unrealized gain on investments 2.49 1.91 1.16
------- ------ ------
Total income from investment operations 2.48 1.90 1.19
------- ------ ------
Distribution:
From net investment income (0.12) (0.03)
From net realized gain on security transactions (0.10) (0.24) (0.12)
------- ------ ------
Total distributions (0.22) (0.24) (0.15)
------- ------ ------
Net asset value, end of year/period $ 14.96 $12.70 $11.04
======= ====== ======
Total return(/2/) 19.46% 17.49% 11.99%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) $11,404 $5,612 $3,080
Ratio of expenses to average net assets(/3/) 1.24% 1.23% 0.71%
Ratio of net investment income (loss) to average
net assets (0.11)% (0.09)% 0.36%
Portfolio turnover rate 17% 35% 49%
</TABLE>
-----------
(/1/) Commencement of operations was July 2, 1997.
(/2/) Does not reflect contingent deferred sales charge.
(/3/) Without fees waived/reimbursed by the investment advisor, the ratio of
expenses to average net assets would have been 1.50%, 2.16% and 2.75%,
respectively.
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a Massachu-
setts 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 comprised of six separate portfolios. The accom-
panying 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 compa-
nies whose portfolios mirror those of one index or another of market secu-
rities. A 1.50% contingent deferred sales charge is generally imposed on
redemptions made within five years of the date that fund shares are pur-
chased.
2. Significant Accounting Policies:
a. Portfolio Valuation
The investments of the Fund consist primarily of mutual funds that are
valued daily at their respective closing net asset values in accordance
with the 1940 Act. Equity securities listed or regularly traded on a se-
curities exchange are valued at the last quoted sales price on the ex-
change where they are principally traded.
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. Divi-
dend income and distributions to shareholders are recorded on the ex-div-
idend date. Interest income and expenses are recorded on an accrual ba-
sis.
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 compa-
nies and to distribute substantially all of its investment company tax-
able income to its shareholders. Therefore, no federal income tax provi-
sion is required.
As of May 31, 2000, the aggregate cost of investments for federal income
tax purposes, the net unrealized appreciation on a federal income tax ba-
sis, and the gross unrealized appreciation and depreciation with respect
to securities where there is an excess of value over tax cost or tax cost
over value were $8,972,872, $1,940,860, $2,082,349 and $141,489, respec-
tively.
d.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.
30
<PAGE>
AMERICAN PENSION INVESTORS TRUST
MULTIPLE INDEX TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
e. Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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 princi-
pal stockholder is also a trustee of the Trust, serves as the Fund's in-
vestment advisor and manager. For its services, the Advisor receives a fee,
calculated daily and payable monthly, at an annual rate of .70% of the av-
erage daily net assets of the Fund. For the year ended May 31, 2000, the
Advisor waived $22,392 of its advisory fees.
4. Investment Activity:
For the period ended May 31, 2000, 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 $6,264,079 and
$1,450,542, respectively.
5. Composition of Net Assets:
At May 31, 2000, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 9,436,045
Accumulated net realized gain from security transactions 27,250
Unrealized appreciation on investments 1,940,860
-----------
Net assets applicable to outstanding shares of beneficial
interest $11,404,155
===========
</TABLE>
In order for the Fund's capital accounts and distributions to reflect the
tax character of certain transactions, $10,141 of net operating losses was
reclassified to offset short-term capital gains during the year ended May
31, 2000. The results of operations and net assets were not affected by the
reclassification.
31
<PAGE>
[YORKTOWN CLASSIC VALUE TRUST GRAPH]
Comparison of change in value of $10,000 in the Yorktown Classic Value Trust,
the S&P 500 and the Consumer Price Index, for the period
November 2, 1992 (Commencement of Operations) to May 31.
1992 1993 1994 1995 1996
Yorktown Classic Value Trust $10,000 $10,340 $10,129 $13,239 $14,082
Consumer Price Index 10,000 10,155 10,387 10,718 11,020
Standard & Poor's 500 10,000 10,583 11,034 13,259 17,032
1997 1998 1999 2000
Yorktown Classic Value Trust $16,982 $19,424 $22,624 $24,789
Consumer Price Index 11,275 11,465 11,789 12,146
Standard & Poor's 500 22,038 28,783 34,608 38,231
AVERAGE ANNUAL
TOTAL RETURN
Since
1 Year 5 Year Inception
8.11% 13.37% 12.71%
Past performance is not predictive of future performance
32
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
SCHEDULE OF INVESTMENTS
May 31, 2000
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Autos & Trucks -- 1.35%
Ford Motor Co. 5,000 $ 242,813
----------
Banks -- 12.65%
Firstar Corp. 32,000 818,000
J.P. Morgan & Co. Inc. 1,800 231,750
National City Corp. 39,000 780,000
Wachovia Corp. 6,500 449,312
----------
2,279,062
----------
Chemicals -- 3.07%
Cytec Industries Inc. 15,000 406,875
du Pont (E.I.) de Nemours & Co. 3,000 147,000
----------
553,875
----------
Computer Software &
Services -- 3.20%
First Data Corp. 10,300 577,444
----------
Diversified Companies -- 19.66%
Citi Group 36,000 2,238,750
Service Corp. International 30,000 93,750
Tyco International Limited 18,000 847,125
United Technologies Corp. 6,000 362,625
----------
3,542,250
----------
Drugs -- 4.75%
Bristol Myers Squibb Co. 2,000 110,125
Merck & Co. Inc. 10,000 746,250
----------
856,375
----------
Electronics -- 1.33%
Paxar Corp. 23,800 239,488
----------
Financial Services -- 13.64%
American Express Co. 27,000 1,452,938
Phoenix Investment Partners 120,000 1,005,000
----------
2,457,938
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Insurance -- 4.90%
American General Corp. 4,300 $ 275,469
Allstate Corp. 11,000 291,500
Aon Corp. 9,000 316,125
-----------
883,094
-----------
Office Supplies &
Equipment -- 0.75%
Xerox Corp. 5,000 135,625
-----------
Paper & Forest
Products -- 0.97%
International Paper Co. 5,000 174,062
-----------
Retail -- 5.27%
Radioshack Corp. 2,000 85,250
Wal Mart Stores Inc. 15,000 864,375
-----------
949,625
-----------
S&P Depositary
Receipts -- 7.89%
SPDR -- S&P 500 Index 7,600 1,083,000
SPDR -- Financial Sector Index 13,500 338,133
-----------
1,421,133
-----------
Securities Brokerage -- 15.07%
Lehman Brothers Holdings Inc. 13,800 1,065,187
Morgan Stanley, Dean Witter, Discover & Co. 16,400 1,179,775
Raymond James Financial Inc. 24,000 471,000
-----------
2,715,962
-----------
Telecommunications
Equipment -- 3.50%
Lucent Technologies 11,000 631,126
-----------
Thrift -- 2.00%
Fannie Mae 6,000 360,750
-----------
Total Investments
(cost $13,466,195) $18,020,622
===========
</TABLE>
The accompanying notes are an integral part of the financial statments.
33
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $13,466,195) $18,020,622
Cash 504
Receivable for shareholder purchases 30,000
Other assets 30,088
-----------
Total assets 18,081,214
-----------
Liabilities:
Accrued distribution fees 10,704
Accrued advisory fees 8,920
Borrowings for purchase of securities 4,165,000
Accrued interest expense 23,682
Other liabilities 15,785
-----------
Total liabilities 4,224,091
-----------
Net assets $13,857,123
===========
Shares of beneficial interest outstanding (unlimited number of no
par value shares authorized) 869,602
===========
Net asset value and offering price per share outstanding $ 15.94
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF OPERATIONS
for the year ended May 31, 2000
<TABLE>
<S> <C>
Investment Income:
Dividends $ 268,311
Interest 2,640
----------
Total income 270,951
----------
Expenses:
Investment advisory fees 146,489
Distribution fees 146,489
Transfer agent fees 38,930
Custodial fees 10,386
Professional fees 19,578
Registration fees 12,802
Trustee fees 3,031
Insurance 7,293
Shareholder reports 5,359
Miscellaneous 2,899
----------
393,256
Less expenses waived by investment advisor (24,415)
----------
Total operating expenses 368,841
Interest expense 280,365
----------
Total expenses 649,206
----------
Net investment loss (378,255)
----------
Realized and unrealized gain (loss) on investments:
Net realized gain from security transactions 1,031,851
Change in unrealized appreciation on investments 298,673
----------
Net realized and unrealized gain on investments 1,330,524
----------
Net increase in net assets resulting from operations $ 952,269
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENT OF CASH FLOWS
for the year ended May 31, 2000
<TABLE>
<S> <C> <C>
Cash provided (used) by financing activities:
Sales of capital shares $ 29,345,021
Repurchase of capital shares (31,946,998)
------------
Cash used in capital share transactions (2,601,977)
Cash used in borrowing, net of borrowings repaid of
$45,553,500 (2,149,000)
Dividends and distributions paid in cash (53,143)
------------
$(4,804,120)
Cash provided (used) by operations:
Purchases of portfolio securities $(22,992,740)
Proceeds from sales of portfolio securities 28,177,392
------------
5,184,652
------------
Net investment loss (378,255)
Net change in receivables/payables related to
operations (2,447)
------------
(380,702)
------------
4,803,950
-----------
Net decrease in cash (170)
Cash, beginning of year 674
-----------
Cash, end of year $ 504
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended May 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Operations:
Net investment loss $ (378,255) $ (401,292)
Net realized gain from security transactions 1,031,851 1,825,485
Net change in unrealized appreciation on
investments 298,673 1,494,445
------------ -----------
Increase in net assets resulting from operations 952,269 2,918,638
------------ -----------
Distributions:
From net realized gains on security transactions (1,695,717) (1,138,299)
------------ -----------
Decrease in net assets resulting from
distributions (1,695,717) (1,138,299)
------------ -----------
Capital share transactions:
Proceeds from sale of 1,872,518 and 371,908 shares 29,318,121 5,470,120
Value of 115,017 and 85,247 shares issued upon
reinvestment of dividends 1,642,574 1,115,888
Cost of 2,086,490 and 405,320 shares redeemed (31,946,998) (6,443,042)
------------ -----------
Increase (decrease) in net assets resulting from
capital share transactions (986,303) 142,966
------------ -----------
Total increase (decrease) in net assets (1,729,751) 1,923,305
Net assets:
Beginning of year 15,586,874 13,663,569
------------ -----------
End of year $ 13,857,123 $15,586,874
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
FINANCIAL HIGHLIGHTS
for the five years ended May 31, 2000
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout each year:
Net asset value, beginning
of year $ 16.09 $ 14.90 $ 14.23 $ 12.00 $12.98
------- ------- ------- ------- ------
Income from investment
operations:
Net investment loss (0.43) (0.41) (0.47) (0.25) (0.28)
Net realized and unrealized
gain on investments 1.78 2.79 2.19 2.69 0.93
------- ------- ------- ------- ------
Total income from
investment operations 1.35 2.38 1.72 2.44 0.65
------- ------- ------- ------- ------
Distributions:
From net realized gain on
security transactions (1.50) (1.19) (1.05) (0.21) (1.63)
------- ------- ------- ------- ------
Total distributions (1.50) (1.19) (1.05) (0.21) (1.63)
------- ------- ------- ------- ------
Net asset value, end of
year $ 15.94 $ 16.09 $ 14.90 $ 14.23 $12.00
======= ======= ======= ======= ======
Total return(/1/) 9.61% 17.80% 13.02% 20.59% 6.36%
Ratios/Supplemental Data:
Net assets, end of year
(000's omitted) $13,857 $15,587 $13,664 $13,060 $9,072
Ratio of operating expenses
to average net assets(/2/) 2.27% 2.44% 2.54% 2.65% 2.68%
Ratio of total expenses to
average net assets(/3/) 4.00% 4.77% 5.52% 5.20% 6.22%
Ratio of net investment
loss to average net assets (2.33)% (2.82)% (3.08)% (2.50)% (2.67)%
Portfolio turnover rate 113% 187% 145% 115% 145%
</TABLE>
-----------
(/1/) Does not reflect contingent deferred sales charge.
(/2/) Without fees waived by the investment advisor and distributor, the
annualized ratio of operating expenses to average net assets would have
been 2.42%, 2.60%, 2.69%, 2.80% and 2.87%, respectively.
(/3/) Without fees waived by the investment advisor and distributor, the
annualized ratio of total expenses to average net assets would have been
4.15%, 4.92%, 5.67%, 5.35% and 6.41%, respectively.
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a Massachu-
setts 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 comprised of six separate portfolios. The accompanying fi-
nancial 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 in-
vesting 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 in-
dicators.
2. Significant Accounting Policies:
a. Portfolio Valuation
Equity securities listed or regularly traded on a securities exchange are
valued at the last quoted sales price on the exchange where they are
principally traded. Securities for which market quotations are not read-
ily available are valued 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. Divi-
dend income and distributions to shareholders are recorded on the ex-div-
idend date. Interest income and expenses are recorded on an accrual ba-
sis.
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 compa-
nies and to distribute substantially all of its investment company tax-
able income to its shareholders. Therefore, no federal income tax provi-
sion is required.
As of May 31, 2000, the aggregate cost of investments for federal income
tax purposes, the net unrealized appreciation on a federal income tax ba-
sis, and the gross unrealized appreciation and depreciation with respect
to securities where there is an excess of value over tax cost or tax cost
over value were $13,565,933, $4,454,689, $5,176,759 and $722,070, respec-
tively.
d. Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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.
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.
39
<PAGE>
YORKTOWN CLASSIC VALUE TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
f. Borrowings
The Fund is permitted to borrow up to one-third of the value of its net
assets, before such borrowings, for investment purposes. Such borrowing
is referred to as leveraging. As of May 31, 2000, the balance due for se-
curities purchased through leveraging was $4,165,000. The average daily
balance during the year ended May 31, 2000 was $3,972,616 or $3.75 per
share, based on average shares outstanding of 1,059,458. The maximum
amount of borrowings outstanding at any month-end during the year was
$4,987,000. The Fund's investment securities are pledged as collateral
under the borrowing arrangement.
Interest is charged at a rate of 1.50% plus the Fed Funds rate (8.3125%
as of May 31, 2000). Interest expense amounted to $280,365 for the year
ended May 31, 2000.
3. Investment Advisory Agreement:
Yorktown Management & Research Company, Inc. (the "Advisor"), whose princi-
pal stockholder is also a trustee of the Trust, serves as the Fund's in-
vestment advisor and manager. For its services, the Advisor receives a fee,
calculated daily and payable monthly, at an annual rate of .90% of the av-
erage daily net assets of the Fund. For the year ended May 31, 2000, the
Advisor waived $24,415 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 an annual fee of .90% of
the Fund's average daily net assets, which is comprised of .65% of distri-
bution fees and .25% of service fees. The principal stockholder of the Dis-
tributor is also a trustee of the Trust.
A 1.50% contingent deferred sales charge is generally imposed on redemp-
tions made within five years of the date that Fund shares are purchased.
5. Investment Activity:
For the year ended May 31, 2000, 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 $22,992,740
and $28,177,392, respectively.
6.Composition of Net Assets:
At May 31, 2000, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 8,951,538
Accumulated net realized gain from security transactions 351,158
Unrealized appreciation on investments 4,554,427
-----------
Net assets applicable to outstanding shares of beneficial
interest $13,857,123
===========
</TABLE>
In order for the Fund's capital accounts and distributions to reflect the
tax character of certain transactions, $378,255 of net operating losses was
reclassified to offset short-term capital gains during the year ended May
31, 2000. The results of operations and net assets were not affected by the
reclassification.
40
<PAGE>
[TREASURIES TRUST GRAPH]
Comparison of change in value of $10,000 in the Treasuries Trust,
Lehman Brothers Intermediate Government Bond Index and
the Consumer Price Index,
for the period July 2, 1997 (Commencement of Operations) to May 31, 2000.
7/2/97 5/31/98 5/31/99 5/31/2000
Treasuries Trust $10,000 $10,933 $11,492 $11,491
Consumer Price Index 10,000 10,156 10,368 10,682
Lehman Brothers Intermediate
Government Bond Index 10,000 10,760 11,302 11,641
AVERAGE ANNUAL
TOTAL RETURN
Since
1 Year Inception
-0.20% 4.88%
Past performance is not predictive of future performance
41
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
SCHEDULE OF INVESTMENTS
May 31, 2000
<TABLE>
<CAPTION>
Principal Value
--------- -----
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS -- 100.00%
United States Treasury Stripped Interest Payment
Due 5/15/2008 $4,543,000 $2,727,172
Due 5/15/2009 1,600,000 900,794
----------
Total investments (cost $3,653,089) $3,627,966
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost of $3,653,089) $3,627,966
Cash 264,769
Other assets 2,767
----------
Total assets 3,895,502
----------
Liabilities:
Other liabilities 8,645
----------
Total liabilities 8,645
----------
Net assets $3,886,857
==========
Shares of beneficial interest outstanding (unlimited number of no
par value shares authorized) 387,981
==========
Net asset value and offering price per share outstanding $ 10.02
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENT OF OPERATIONS
for the year ended May 31, 2000
<TABLE>
<S> <C>
Investment income:
Interest $367,204
--------
Expenses:
Investment advisory fees 19,299
Transfer agent fees 20,778
Custodial fees 2,983
Professional fees 6,325
Registration fees 15,193
Trustee fees 1,167
Insurance 2,444
Shareholder reports 2,720
Miscellaneous 1,858
--------
72,767
Less expenses waived/reimbursed by investment advisor (35,668)
--------
Total expenses 37,099
--------
Net investment income 330,105
--------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) from security transactions (461,898)
Change in unrealized appreciation on investments 166,713
--------
Net realized and unrealized gain (loss) on investments (295,185)
--------
Net increase in net assets resulting from operations $ 34,920
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended May 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
---- ----
<S> <C> <C>
Operations:
Net investment income $ 330,105 $ 254,041
Net realized gain (loss) from security transactions (461,898) 68,071
Net change in unrealized appreciation on investments 166,713 (237,132)
----------- -----------
Increase in net assets resulting from operations 34,920 84,980
----------- -----------
Distributions:
From net investment income (247,811) (243,264)
From net realized gain on security transactions (59,946) (9,594)
----------- -----------
Decrease in net assets resulting from distributions (307,757) (252,858)
----------- -----------
Capital share transactions:
Proceeds from sale of 201,822 and 704,807 shares 2,061,420 7,650,095
Value of 28,745 and 22,422 shares issued upon
reinvestment of dividends 286,353 246,663
Cost of 555,096 and 376,194 shares redeemed (5,692,195) (4,068,598)
----------- -----------
Increase (decrease) in net assets resulting from
capital share transactions (3,344,422) 3,828,160
----------- -----------
Total increase (decrease) in net assets (3,617,259) 3,660,282
Net assets:
Beginning of year 7,504,116 3,843,834
----------- -----------
End of year $ 3,886,857 $ 7,504,116
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
FINANCIAL HIGHLIGHTS
for the years ended May 31, 2000 and 1999
the period ended May 31, 1998(/1/)
<TABLE>
<CAPTION>
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
For a share outstanding throughout the year/period:
Net asset value, beginning of year/period $10.53 $10.63 $10.00
------ ------ ------
Income from investment operations:
Net investment income 0.80 0.58 0.43
Net realized and unrealized gain (loss) on
investments (0.68) (0.02) 0.49
------ ------ ------
Total income from investment operations 0.12 0.56 0.92
------ ------ ------
Distributions:
From net investment income (0.51) (0.64) (0.29)
From net realized gain on security transactions (0.12) (0.02)
------ ------ ------
Total distributions (0.63) (0.66) (0.29)
------ ------ ------
Net asset value, end of period $10.02 $10.53 $10.63
====== ====== ======
Total return(/2/) 1.30% 5.11% 9.33%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) $3,887 $7,504 $3,844
Ratio of expenses to average net assets(/3/) 0.76% 0.87% 0.84%
Ratio of net investment income to average net assets 6.72% 5.49% 5.85%
Portfolio turnover rate 126% 231% 3%
</TABLE>
-----------
(/1/)Commencement of operations was July 2, 1997.
(/2/)Does not reflect contingent deferred sales charge.
(/3/)Without fees waived/reimbursed by the investment advisor, the ratio of
expenses to average net assets would have been 1.48%, 1.79% and 2.99%,
respectively.
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization:
American Pension Investors Trust (the "Trust") is organized as a Massachu-
setts 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 comprised of six separate portfolios. The accom-
panying 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 obli-
gations of the U.S. Treasury that are guaranteed as to principal and inter-
est by the full faith and credit of U.S. government. A 1.50% contingent de-
ferred sales charge is generally imposed on redemptions made within five
years of the date that fund shares are purchased.
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. U.S. Treasury securities are valued at the mean be-
tween the bid and asked prices.
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. Dis-
tributions 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 compa-
nies and to distribute substantially all of its investment company tax-
able income to its shareholders. Therefore, no federal income tax provi-
sion is required.
As of May 31, 2000, the aggregate cost of investments for federal income
tax purposes and the unrealized depreciation on a federal income tax ba-
sis, where there is an excess of tax cost over value were $3,653,089 and
$25,123, respectively.
The Fund had a net realized capital loss carryforward for federal income
tax purposes of $403,535 at May 31, 2000 which may be utilized to offset
future capital gains until expiration in May 2008.
d. 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.
47
<PAGE>
AMERICAN PENSION INVESTORS TRUST
TREASURIES TRUST
NOTES TO FINANCIAL STATEMENTS, Continued
2. Significant Accounting Policies, continued:
e. Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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 princi-
pal stockholder is also a trustee of the Trust, serves as the Fund's in-
vestment advisor and manager. For its services, the Advisor receives a fee,
calculated daily and payable monthly, at an annual rate of .40% of the av-
erage daily net assets of the Fund. For the year ended May 31, 2000, the
Advisor waived all of its fees in the amount of $19,299. In addition, the
Advisor reimbursed $16,369 of the Fund's operating expenses.
4. Investment Activity:
For the year ended May 31, 2000, purchases and sales of U.S. government ob-
ligations amounted to $5,756,459 and $9,460,070, 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 May 31, 2000, net assets consisted of:
<TABLE>
<S> <C>
Paid-in capital $ 4,229,867
Accumulated net investment income 144,011
Accumulated net realized loss from security transactions (461,898)
Unrealized depreciation on investments (25,123)
-----------
Net assets applicable to outstanding shares of beneficial
interest $3, 886,857
===========
</TABLE>
48
<PAGE>
[PRICEWATERHOUSECOOPERS LOGO]
Report of Independent Accountants
To the Board of Trustees American Pension Investors Trust and Shareholders of
Growth Fund, Capital Income Fund, Multiple Index Trust, Yorktown Clasic Value
Trust, and Treasuries Trust:
In our opinion, the accompanying statements of assets and liabilities, includ-
ing the schedules of investments, and the related statements of operations, of
cash flows and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of American Pension
Investors Trust (comprised of the Growth Fund, Capital Income Fund, Multiple
Index Trust, Yorktown Classic Value Trust, and Treasuries Trust, collectively
referred to as the "Funds"), at May 31, 2000, the results of each of their op-
erations, the cash flows for Yorktown Classic Value Trust, the changes in each
of their net assets and the financial highlights for each of the fiscal peri-
ods presented, in conformity with accounting principles generally accepted in
the United States. These financial statements and financial highlights (here-
after referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these finan-
cial statements based on our audits. We conducted our audits of these finan-
cial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of mate-
rial misstatement. An audit includes examining, on a test basis, evidence sup-
porting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluation the overall financial statements presentation. We believe that our
audits, which included confirmation of securities at May 31, 2000 by corre-
spondence with custodians and brokers, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
June 16, 2000
49
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SHAREHOLDER SERVICES
API Trust
P.O. Box 8595
Boston, Massachusetts 02266-8595
(888) 933-8274
For Overnight Deliveries:
API Trust
66 Brooks Drive
Braintree, Massachusetts 02184
EXECUTIVE OFFICES
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INDEPENDENT ACCOUNTANTS
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.com
