<PAGE>
The OMNI Investment Fund SEMI-ANNUAL REPORT 1996
- --------------------------------------------------------------------------------
The Omni Investment Fund's ("the Fund") performance for the first half of
1996 was +8.0%. The table below describes the Fund's average annual return for
one year, five years, ten years, and since inception. The graph below depicts
the Fund's performance versus the Russell 2000 Index, a broad market index of
small to mid-sized companies with no undue weighting to a particular industry
sector. Past performance is not predictive of future performance.
The Omni Investment Fund
Average Annual Total Return
for periods ended June 30, 1996
<TABLE>
<S> <C> <C> <C>
1 Year 5 Years 10 Years Since 2/14/85*
19.1% 16.4% 11.9% 14.8%
</TABLE>
*The Fund's inception date
[GRAPH APPEARS HERE]
<TABLE>
Omni Russell
--------------------------------
<S> <C> <C>
2/14/85 $10,000 $10,000
12/31/85 $12,703 $11,153
12/31/86 $14,738 $11,786
12/31/87 $15,985 $10,753
12/31/88 $19,196 $13,429
12/31/89 $24,272 $15,610
12/31/90 $18,946 $12,565
12/31/91 $23,685 $18,351
12/31/92 $28,325 $21,729
12/31/93 $32,926 $25,838
12/31/94 $35,144 $25,368
12/31/95 $44,307 $32,582
6/30/96 $47,856 $35,958
</TABLE>
The Fund's performance showed relative improvement when compared against the
popular averages. This was largely the result of the market broadening out and,
more importantly, the avoidance of companies with high price to earnings ratios
that had become grossly overpriced relative to their earnings potential.
<PAGE>
We are concerned with the general level of the market which leaves little
room for error vis-a-vis projected corporate earnings. The majority of market
analysts believe that the general market is only slightly undervalued if
corporate earnings are up 10% in both 1996 and 1997, and interest rates remain
roughly unchanged--an environment which may be overly optimistic. We also
continue to be concerned with the speculative excesses in certain market
sectors.
The lack of significant upside potential, coupled with no meaningful market
correction in over five years, has led us to maintain an approximate 20% cash
reserve. Relatively strong areas in the second quarter were our energy
holdings which benefited from higher natural gas prices, and selected consumer
and technology stocks that had been oversold in late 1995 and early 1996. We
continued to gradually reduce our financial holdings but we still have a high
degree of confidence in the consolidation of the bank and thrift industry.
Respectfully,
/s/ Bob Perkins
Bob Perkins
President
2
<PAGE>
THE OMNI INVESTMENT FUND . PORTFOLIO OF INVESTMENTS . June 30, 1996
<TABLE>
<CAPTION>
Number
of Shares Value
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS:
- --------------------------------------------------------------------------------
BANKS--5.6%
- --------------------------------------------------------------------------------
First Commerce Corp. cum. pfd...................... 6,500 $ 264,875
First Commerce Corp................................ 20,000 707,500
Walden Bancorp Inc................................. 39,500 808,526
-----------
TOTAL BANKS........................................ 1,780,901
CAPITAL GOODS--18.0%
- --------------------------------------------------------------------------------
Anangel American Shipping Holdings................. 72,000 702,000
(a) Bucyrus International Inc.......................... 30,000 307,500
(a) ILC Technology Inc................................. 54,600 634,725
Intel Corp......................................... 5,200 381,878
(a) Kaneb Services Inc................................. 270,000 877,500
M.C. Shipping Inc.................................. 60,500 226,875
Simpson Industries Inc............................. 90,300 835,275
(a) Telcom Semiconductor Inc........................... 65,400 335,175
(a) Tencor Instruments................................. 30,200 570,025
Walbro Corp........................................ 42,000 850,500
-----------
TOTAL CAPITAL GOODS................................ 5,721,453
COMMUNICATIONS--6.6%
- --------------------------------------------------------------------------------
(a) Centennial Cellular Corp........................... 38,600 651,375
(a) International Cabletel Inc......................... 24,600 725,700
(a) Jones Intercable Inc............................... 50,000 718,750
-----------
TOTAL COMMUNICATIONS............................... 2,095,825
CONSUMER GOODS AND SERVICES--11.4%
- --------------------------------------------------------------------------------
(a) Buttrey Food & Drug Stores Inc..................... 53,700 426,271
(a) Congoleum Corp..................................... 50,100 576,150
(a) Department 56 Inc.................................. 31,400 710,425
(a) Designs Inc........................................ 100,000 600,000
(a) Lechters Inc....................................... 70,000 455,000
Lillian Vernon Corp................................ 39,300 501,075
Sealright Company Inc.............................. 33,100 359,962
-----------
Total consumer goods and services.................. 3,628,883
CLOSED END FUNDS--5.5%
- --------------------------------------------------------------------------------
H&Q Healthcare Fund................................ 18,500 400,063
Latin American Discovery Fund...................... 49,400 623,675
Templeton Dragon Fund Inc.......................... 55,000 728,750
-----------
TOTAL CLOSED END FUNDS............................. 1,752,488
INSURANCE--4.9%
- --------------------------------------------------------------------------------
American Re Corp................................... 10,000 448,750
Old Republic Int'l Corp............................ 52,200 1,122,300
-----------
TOTAL INSURANCE.................................... 1,571,050
NATURAL RESOURCES--8.0%
- --------------------------------------------------------------------------------
(a) Chieftain Int'l Inc................................ 23,400 473,850
Pogo Producing Co.................................. 18,000 686,250
(a) Seagull Energy Corp................................ 22,000 550,000
Snyder Oil Corp.................................... 45,000 455,625
Southwest Gas Corp................................. 23,000 368,000
-----------
Total natural resources............................ 2,533,725
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares,
Principal
Amount or
Contracts Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
REAL ESTATE--3.8%
- -------------------------------------------------------------------------------
IRT Property Co................................. 72,000 $ 684,000
Town & Country Trust............................ 41,500 544,687
-----------
TOTAL REAL ESTATE............................... 1,228,687
THRIFTS--15.3%
- -------------------------------------------------------------------------------
American Bank of Connecticut.................... 22,000 541,750
(a) California Federal Savings Bank................. 64,400 1,175,300
(a) California Federal Savings--goodwill............ 5,600 49,000
Commercial Federal Corp......................... 27,200 1,040,400
First Financial Corp............................ 36,225 815,062
(a) Mechanics Savings Bank.......................... 26,400 303,600
Medford Savings Bank............................ 41,000 943,000
-----------
TOTAL THRIFTS................................... 4,868,112
-----------
TOTAL COMMON STOCKS--79.1%
(cost: $20,627,961)............................ 25,181,124
SHORT-TERM TREASURY SECURITIES:
- -------------------------------------------------------------------------------
U.S. Treasury Bills
5.06% Due 08/01/96............................. $ 400,000 398,200
U.S. Treasury Bills
5.06% Due 08/08/96............................. 1,300,000 1,292,876
U.S. Treasury Bills
5.06% Due 08/15/96............................. 100,000 99,353
U.S. Treasury Bills
5.15% Due 08/22/96............................. 1,000,000 992,420
U.S. Treasury Bills
5.12% Due 08/29/96............................. 1,800,000 1,784,628
U.S. Treasury Bills
5.19% Due 09/12/96............................. 2,100,000 2,077,614
U.S. Treasury Bills
5.19% Due 09/19/96............................. 100,000 98,833
U.S. Treasury Bills
5.15% Due 09/26/96............................. 100,000 98,740
-----------
TOTAL SHORT-TERM TREASURY SECURITIES--21.5%
(cost: $6,820,909).............................. 6,842,664
-----------
TOTAL INVESTMENTS--100.6%
(cost: $27,448,870)............................. 32,023,788
Covered call options written--(0.2%)
Intel Corp. $67.50 expiring 1/17/97 (premium
received: $43,215)............................. 52 (59,800)
Liabilities less other assets--(0.4%)........... (122,212)
-----------
Net assets--100%................................ $31,841,776
===========
</TABLE>
Notes to Portfolio of Investments:
(a) Non-income producing security.
(b) Based on the cost of investments of $27,448,870 and premium received of
options written of $43,215 for Federal income tax purposes at June 30,
1996, the aggregate gross unrealized appreciation was $5,126,204, the
aggregate gross unrealized depreciation was $567,871 and the net
unrealized appreciation of investments was $4,558,333.
See accompanying Notes to Financial Statements.
3
<PAGE>
THE OMNI INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
ASSETS
<TABLE>
<S> <C>
Investments, at value (Cost: $27,448,870).......................... $32,023,788
Cash............................................................... 29,007
Receivables for investments sold................................... 193,416
Receivable for capital shares sold................................. 4,250
Dividends receivable............................................... 40,485
Interest receivable................................................ 185
-----------
Total assets................................................... 32,291,131
LIABILITIES
Options written, at value (Premium received: $43,215) 59,800
Payable for investments purchased.................................. 344,473
Accrued expenses................................................... 18,485
Advisory fees payable.............................................. 26,462
Dividends payable.................................................. 135
-----------
Total liabilities.............................................. 449,355
-----------
Net assets applicable to 2,023,312 shares outstanding, equivalent
to $15.74 per share............................................... $31,841,776
===========
Net assets consist of:
Shares of beneficial interest, $.01 par value.................... $ 20,233
Additional paid-in capital....................................... 25,126,260
Undistributed net realized gains................................. 2,024,779
Unrealized appreciation of investments and options written....... 4,558,333
Undistributed net investment income.............................. 112,171
-----------
Net assets applicable to shares outstanding........................ $31,841,776
===========
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
THE OMNI INVESTMENT FUND
<TABLE>
<CAPTION>
Six months ended
June 30,
1996
STATEMENT OF OPERATIONS ----------------
<S> <C>
Investment income:
Dividends.................................................... $ 262,574
Interest..................................................... 98,985
-----------
Total investment income.................................... 361,559
Expenses:
Investment advisory fees..................................... 158,388
Custodian fees............................................... 5,872
Regulatory fees.............................................. 15,093
Legal fees................................................... 14,383
Auditing fees................................................ 12,000
Other expenses............................................... 43,652
-----------
Total expenses............................................. 249,388
-----------
Net investment income.......................................... 112,171
Net realized and unrealized gain on investments:
Net realized gain on sales of investments.................... 1,952,991
Net realized gain on covered call options written............ 36,776
Change in net unrealized appreciation of investments......... 298,652
-----------
Net gain on investments.................................... 2,288,419
-----------
Net increase in net assets resulting from operations........... $ 2,400,590
===========
</TABLE>
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
1996 1995
STATEMENT OF CHANGES IN NET ASSETS ---------------- ------------
<S> <C> <C>
Operations:
Net investment income ......................... $ 112,171 $ 175,346
Net realized gain on investments............... 1,989,767 2,781,540
Change in net unrealized appreciation of
investments................................... 298,652 3,049,072
----------- -----------
Net increase in net assets resulting from
operations...................................... 2,400,590 6,005,958
Dividends to shareholders from:
Net investment income.......................... -- (175,346)
Capital gains.................................. -- (2,804,377)
Net increase (decrease) from capital share
transactions.................................... (2,391,338) 10,536,459
----------- -----------
Total increase in net assets..................... 9,252 13,562,694
Net assets:
Beginning of period............................ 31,832,524 18,269,830
----------- -----------
End of period.................................. $31,841,776 $31,832,524
=========== ===========
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
THE OMNI INVESTMENT FUND . NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Omni Investment Fund (the "Fund") is registered under the Investment
Company Act of 1940 as a nondiversified, open-end management investment
company. The investment objective of the Fund is to seek capital appreciation
by investing primarily in the common stocks of companies that the Fund's
investment adviser believes are experiencing, or have the potential to
experience, growth in revenues, earnings or assets or companies that are
undervalued relative to their assets.
Security valuation--
Investments are stated at value. Investments in securities traded on a
national securities exchange or reported on the NASDAQ System for which last
sale information is regularly reported are valued at the last reported sales
prices on their primary exchange or the NASDAQ System that day. Unlisted
securities and securities traded on the NASDAQ System for which last sales
prices are not regularly reported but for which over-the-counter market
quotations are readily available are valued at the mean of the last quoted bid
price and the last quoted asked price at the time of valuation, or if no quoted
bid or asked price is reported, on the basis of the mean of bid and asked
prices obtained from a dealer who maintains an active market in that security.
Unlisted debt securities or debt securities having an inactive market are
valued based upon the mean of bid and offered prices obtained from dealers
maintaining an active market in the security. Securities not having readily
available market quotations are valued at fair value determined in good faith
by the Board of Trustees. Other short-term debt securities with a remaining
maturity of more than 60 days are valued at the mean of the bid and offered
price obtained from a dealer which maintains an active market in that security;
and other short-term debt securities (having a remaining maturity of 60 days or
less) are valued at cost, adjusted for amortization of premiums and accretion
of discounts, which approximates value.
Federal income taxes--
The Fund's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and, in the manner
provided therein, to distribute all of its taxable income to its shareholders.
Such provisions are being complied with and therefore no federal income tax
provision is required.
Distributions to shareholders--
Distributions to shareholders are recorded by the Fund on the ex-dividend
date. Distributions of net investment income and capital gains are determined
in accordance with income tax regulations.
Fund share valuation--
Fund shares are sold and redeemed on a continuous basis at net asset value. On
each day the New York Stock Exchange is open for trading, the net asset value
per share is determined as of 3:00 p.m. (Chicago time) by dividing the total
value of the Fund's investments and other assets, less liabilities, by the
number of Fund shares outstanding.
Other--
The Fund records security transactions on the trade date. Dividend income is
recognized on the ex-dividend date and interest income is recognized on an
accrual basis. Discounts on fixed income securities are amortized over the life
of the respective securities. Realized gains and losses from investment
transactions are reported on an identified cost basis.
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 amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
2. INVESTMENTS
Purchases and proceeds from sales of investments (excluding short-term
obligations) for the six months ended June 30, 1996 were $7,922,832 and
$13,153,620, respectively.
3. CAPITAL SHARE TRANSACTIONS
The following table summarizes the activity in capital shares of the Fund:
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, 1996 December 31, 1995
--------------------- -------------------
Shares Amount Shares Amount
-------- ----------- ------- -----------
<S> <C> <C> <C> <C>
Shares sold......................... 126,694 $ 1,922,683 677,474 $ 9,507,691
Shares issued in reinvestment of
dividends from net investment
income and net realized gains...... 192,870 2,798,929
-------- ----------- ------- -----------
870,344 12,306,620
Less shares redeemed................ 287,840 4,314,021 118,518 1,770,161
-------- ----------- ------- -----------
Net increase (decrease) in shares
outstanding........................ (161,146) $(2,391,338) 751,826 $10,536,459
======== =========== ======= ===========
</TABLE>
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund pays advisory fees for investment management and advisory services
under a management agreement with Perkins, Wolf, McDonnell & Co. (PWM) that
provides for fees at an annual rate of 1% of average daily net assets, payable
monthly. During the six months ended June 30, 1996 the Fund incurred advisory
fees of $158,388. Portfolio transactions for the Fund have been executed
through PWM, consistent with the Fund's policy of obtaining the best price and
execution. PWM also acts as custodian for the Fund's investments. For the six
months ended June 30, 1996, PWM received commissions of $156,534 from purchases
and sales of the Fund's portfolio investments and received custodian fees of
$5,872. During the six months ended June 30, 1996, the Fund paid fees to its
unaffiliated trustees of $1,200.
5. COVERED CALL OPTIONS WRITTEN
The Fund may write call options on investments held in its portfolio.
Transactions in options written for the period ended June 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Number of Premiums
Contracts Received
--------- --------
<S> <C> <C>
Options outstanding at beginning of period.................. 0 $ 0
Options written............................................. 174 89,233
Options closed.............................................. (122) (46,018)
---- --------
Options outstanding at end of period........................ 52 $ 43,215
==== ========
</TABLE>
6
<PAGE>
THE OMNI INVESTMENT FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six mos. Eleven mos.
ended Year ended December 31, ended
June 30, ------------------------------------------------------------- Dec. 31,
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987(a)
-------- ------ ------ ------ ------ ------ ------ ------ ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per share operating
performance (b):
NET ASSET VALUE AT
BEGINNING OF PERIOD.... $ 14.57 12.75 13.99 13.39 11.39 9.23 12.19 11.21 10.06 11.33
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss)................ 0.06 0.09 (0.01) 0.03 0.09 0.14 0.28 0.23 0.24 0.21
Net realized and
unrealized gain (loss)
on investments........ 1.11 3.23 0.91 2.14 2.14 2.16 (2.95) 2.71 1.77 (0.29)
------- ------ ------ ------ ------ ------ ------ ------ ----- -----
Total from investment
operations............ 1.17 3.32 0.90 2.17 2.23 2.30 (2.67) 2.94 2.01 (0.08)
DIVIDENDS:
Dividends from net
investment income..... -- (0.09) -- (0.03) (0.10) (0.14) (0.29) (0.22) (0.24) (0.20)
Dividends from net
realized gain on
investments........... -- (1.41) (2.14) (1.54) (0.13) -- -- (1.74) (0.62) (0.99)
------- ------ ------ ------ ------ ------ ------ ------ ----- -----
Total dividends........ -- (1.50) (2.14) (1.57) (0.23) (0.14) (0.29) (1.96) (0.86) (1.19)
------- ------ ------ ------ ------ ------ ------ ------ ----- -----
NET ASSET VALUE AT END
OF PERIOD.............. $ 15.74 14.57 12.75 13.99 13.39 11.39 9.23 12.19 11.21 10.06
======= ====== ====== ====== ====== ====== ====== ====== ===== =====
TOTAL RETURN (%): 8.03(d) 26.07 6.74 16.25 19.59 25.01 (21.94) 26.44 20.09 (0.68)
------- ------ ------ ------ ------ ------ ------ ------ ----- -----
Ratios to average net
assets (%)(c):
Expenses............... 1.56 1.64 1.43 1.31 1.41 1.52 1.84 1.78 1.44 1.69
Net investment income
(loss)................ 0.70 0.64 (0.04) 0.18 0.73 1.24 2.34 1.85 2.33 1.87
Portfolio turnover rate
(%)(c)................. 58 90 125 108 105 130 146 118 103 189
Average commission rate
paid per share......... $0.0984 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net assets at end
of period (in
thousands)............. $31,842 31,833 18,270 16,309 14,007 11,940 9,839 13,576 9,976 6,748
</TABLE>
- -------
Note:
(a) Effective October 20, 1987 the Fund became publicly registered under
the Investment Company Act of 1940. Prior thereto, its shares were not
publicly offered.
(b) Prior to December 31, 1994, the per share amounts have been adjusted
for a 10 for 1 share split which occurred September 30, 1994.
(c) Annualized.
(d) Not Annualized.
N/A Not applicable.
7
<PAGE>
NAMES AND ADDRESSES
TRUSTEES AND OFFICERS OF THE FUND
ROBERT H. PERKINS, PRESIDENT AND TRUSTEE
GREGORY E. WOLF, TREASURER AND TRUSTEE
BURT W. ENGLEBERG, TRUSTEE
JOHN R. HALL, TRUSTEE
KEITH L. COOK, TRUSTEE
N. TED HANS, SECRETARY
INVESTMENT ADVISER
PERKINS, WOLF, MCDONNELL & COMPANY
53 WEST JACKSON BOULEVARD
SUITE 818
CHICAGO, ILLINOIS 60604
CUSTODIAN OF PORTFOLIO SECURITIES
PERKINS, WOLF, MCDONNELL & COMPANY
53 WEST JACKSON BOULEVARD
SUITE 818
CHICAGO, ILLINOIS 60604
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
SEARS TOWER
233 SOUTH WACKER DRIVE
CHICAGO, ILLINOIS 60606
LEGAL COUNSEL
BLACKWELL SANDERS MATHENY
WEARY & LOMBARDI
1100 TWO PERSHING SQUARE
2300 MAIN STREET
KANSAS CITY, MISSOURI 64108
TRANSFER AGENT
DST SYSTEMS, INC.
1055 BROADWAY
KANSAS CITY, MISSOURI 64105
LOGO
Semi-Annual
Report
June 30, 1996
