<PAGE>
The OMNI Investment Fund ANNUAL REPORT 1995
- --------------------------------------------------------------------------------
The Omni Investment Fund's (the "Fund") performance in 1995 was 26.1%. The
table below describes the Fund's average annual return for one year, five
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 December 31, 1995
<TABLE>
<S> <C> <C>
One Year 5 Years Since 2/14/85*
26.1% 18.5% 14.7%
</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
</TABLE>
The Fund's performance was largely impacted by the fact that large
capitalization stocks and, more specifically, technology equities were the
market leaders. Technology equities usually carry high price earnings ratios
that do not lead to sufficient risk/reward protection. Consequently, the Fund's
exposure to this group was quite small.
<PAGE>
Analysis of the Fund's performance in 1995 leads us to the following
conclusions. As in 1994, the area of particular strength was among small
financial institutions that continued to benefit from favorable interest rate
spreads and industry consolidation. In the last two years, eight of the Fund's
holdings announced merger agreements which is indicative of the advantage of
the value investment concept. The Fund continued to avoid any large declines
in specific stocks. This is one of the benefits of value investing; minimizing
the downside risk.
The stock market has enjoyed an almost unprecedented growth in the last five
years without a meaningful correction. Basically, this has resulted from
corporate earnings exceeding expectations and declining long-term interest
rates--an almost ideal environment. With profit margins and returns on
investment near all-time highs, and with growing evidence of increasing
commodity price pressures, the very favorable scenario for stocks in general
has diminished. The fact that the economy is largely driven by consumer
spending and that the consumer has been retrenching will also exert downward
pressure. As the market has a tendency to over-react to both positives and
negatives, the Fund intends to take advantage of the over-reaction of the
market to short-term negatives. We would much prefer to commit our dollars to
situations that have suffered large price declines due to temporary problems
rather than pay excessive prices for companies where all the good news is out.
Given the factors described above, we expect to continue to expand our
exposure in the consumer area. The group lagged the market throughout 1995 as
consumers cleaned up their balance sheets. The slowdown in demand was
exacerbated by the over capacity of retail space. Consequently, the retail
group is now in the midst of forced cutbacks. When the consumers resume a more
normal spending pattern, the surviving merchants should greatly benefit
leading to superior investment results. Specifically, we will continue to buy
stocks that have declined 50% to 70%, that exhibit strong "survival"
fundamentals, and that have large upside potential with minimum downside risk
from current price levels.
Respectfully,
/s/ Bob Perkins
Bob Perkins
President
2
<PAGE>
THE OMNI INVESTMENT FUND . PORTFOLIO OF INVESTMENTS . December 31, 1995
<TABLE>
<CAPTION>
Number
of Shares Value
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS:
- --------------------------------------------------------------------------------
BANKS--8.8%
- --------------------------------------------------------------------------------
(a) Benson Financial Corp.............................. 34,000 $ 637,500
Dime Financial Corp................................ 38,000 513,000
First Commerce Corp. cum. pfd...................... 6,500 242,938
First Commerce Corp................................ 20,000 640,000
Walden Bancorp Inc................................. 39,500 750,500
-----------
TOTAL BANKS........................................ 2,783,938
CAPITAL GOODS--12.8%
- --------------------------------------------------------------------------------
Fleetwood Enterprises Inc.......................... 29,000 746,750
(a) ILC Technology Inc................................. 52,000 481,000
(a) Intel Corp. warrants exp. 3/14/98.................. 22,000 588,500
(a) Kaneb Services Inc................................. 250,000 562,500
(a) M.C. Shipping Inc.................................. 44,000 148,500
Masland Corp....................................... 11,000 154,000
Simpson Industries Inc............................. 70,000 630,000
Walbro Corp........................................ 42,000 756,000
-----------
TOTAL CAPITAL GOODS................................ 4,067,250
COMMUNICATIONS--8.7%
- --------------------------------------------------------------------------------
Allen Group Inc.................................... 20,200 451,975
(a) Applied Digital Access Inc......................... 49,000 575,750
(a) Centennial Cellular Corp........................... 32,000 548,000
(a) International Cabletel Inc......................... 23,600 578,200
(a) Jones Intercable Inc............................... 50,000 625,000
-----------
TOTAL COMMUNICATIONS............................... 2,778,925
CONSUMER GOODS AND SERVICES--12.4%
- --------------------------------------------------------------------------------
(a) Best Buy Inc....................................... 30,000 487,500
(a) Buttrey Food & Drug Stores Inc..................... 78,700 541,062
(a) Congoleum Corp..................................... 89,000 956,750
(a) Designs Inc........................................ 85,000 595,000
(a) Perrigo Co......................................... 30,400 361,000
Rival Co........................................... 30,000 663,750
(a) Steck-Vaughn Publishing Corp....................... 47,600 351,050
-----------
TOTAL CONSUMER GOODS AND SERVICES.................. 3,956,112
FINANCE--2.3%
- --------------------------------------------------------------------------------
Templeton Dragon Fund Inc.......................... 55,000 735,625
-----------
TOTAL FINANCE...................................... 735,625
HEALTH CARE--1.6%
- --------------------------------------------------------------------------------
(a) H & Q Healthcare Fund.............................. 25,500 519,563
-----------
TOTAL HEALTH CARE.................................. 519,563
INSURANCE--6.7%
- --------------------------------------------------------------------------------
Allied Group Inc................................... 13,500 486,000
(a) American Re Corp................................... 10,000 408,750
Old Republic Int'l Corp............................ 34,800 1,235,400
-----------
TOTAL INSURANCE.................................... 2,130,150
NATURAL RESOURCES--7.4%
- --------------------------------------------------------------------------------
Cabot Oil & Gas Co................................. 40,000 585,000
(a) Chieftain Int'l Inc................................ 23,400 415,350
Pogo Producing Co.................................. 18,000 508,500
(a) Seagull Energy Corp................................ 16,000 356,000
Snyder Oil Corp.................................... 39,000 472,875
-----------
TOTAL NATURAL RESOURCES............................ 2,337,725
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or
Principal
Amount Value
- --------------------------------------------------------------------------------
<C> <S> <C> <C>
REAL ESTATE--4.4%
- --------------------------------------------------------------------------------
Eastgroup Properties SBI......................... 11,940 $ 255,217
IRT Property Co.................................. 72,000 666,000
Town & Country Trust............................. 36,500 474,500
-----------
TOTAL REAL ESTATE................................ 1,395,717
THRIFTS--20.4%
- --------------------------------------------------------------------------------
AMFED Financial Inc.............................. 17,500 595,000
American Bank of Connecticut..................... 20,000 545,000
Andover Bancorp Inc.............................. 16,000 338,000
(a) California Federal Savings Bank.................. 64,400 1,014,300
(a) California Federal Savings--goodwill............. 5,600 27,653
(a) Commercial Federal Corp.......................... 25,200 951,300
First Financial Corp............................. 34,225 787,175
Interwest Bancorp Inc............................ 31,000 631,625
Medford Savings Bank............................. 41,000 881,500
Mid Continent Bancshares Inc..................... 39,500 730,750
-----------
TOTAL THRIFTS.................................... 6,502,303
-----------
TOTAL COMMON STOCKS--85.5%
(cost: $22,958,448)............................. 27,207,308
CORPORATE BONDS:
- --------------------------------------------------------------------------------
Chock Full O' Nuts
7% Due 4/1/12................................... $ 184,000 158,240
-----------
TOTAL CORPORATE BONDS--0.5%
(cost: $174,760)................................ 158,240
SHORT-TERM TREASURY SECURITIES:
- --------------------------------------------------------------------------------
U.S. Treasury Bills
5.01% Due 02/01/96.............................. $1,000,000 995,720
U.S. Treasury Bills
5.14% Due 02/08/96.............................. 900,000 895,194
U.S. Treasury Bills
5.06% Due 02/15/96.............................. 500,000 496,900
U.S. Treasury Bills
5.13% Due 02/22/96.............................. 1,200,000 1,191,312
U.S. Treasury Bills
5.09% Due 02/29/96.............................. 1,000,000 991,890
U.S. Treasury Bills
5.28% Due 03/21/96.............................. 200,000 197,736
-----------
TOTAL SHORT-TERM TREASURY SECURITIES--15.0%
(cost: $4,741,411).............................. 4,768,752
-----------
TOTAL INVESTMENTS--101%
(cost: $27,874,619)............................. 32,134,300
Liabilities less other assets--(1.0%)............ (301,776)
-----------
Net assets--100%................................. $31,832,524
===========
</TABLE>
Notes to Portfolio of Investments:
(a) Non-income producing security.
(b) Based on the cost of investments of $27,874,619 for Federal income tax
purposes at December 31, 1995, the aggregate gross unrealized appreciation
was $4,974,183, the aggregate gross unrealized depreciation was $714,502
and the net unrealized appreciation of investments was $4,259,681.
See accompanying Notes to Financial Statements.
3
<PAGE>
THE OMNI INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
ASSETS
<TABLE>
<S> <C>
Investments, at value (Cost: $27,874,619).......................... $32,134,300
Cash............................................................... 60,242
Receivables for investments sold................................... 157,629
Due from adviser................................................... 1,396
Dividends receivable............................................... 56,233
Interest receivable................................................ 3,455
-----------
Total assets................................................... 32,413,255
LIABILITIES
Payable for investments purchased.................................. 534,633
Payable for capital shares redeemed................................ 10,602
Accrued expenses................................................... 7,000
Advisory fees payable.............................................. 26,964
Dividends payable.................................................. 1,532
-----------
Total liabilities.............................................. 580,731
-----------
Net assets applicable to 2,184,458 shares outstanding, equivalent
to $14.57 per share............................................... $31,832,524
===========
Net assets consist of:
Shares of beneficial interest, $.01 par value.................... $ 21,845
Additional paid-in capital....................................... 27,515,986
Undistributed net realized gains on sales of investments......... 35,012
Net unrealized appreciation of investments....................... 4,259,681
-----------
Net assets applicable to shares outstanding........................ $31,832,524
===========
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
THE OMNI INVESTMENT FUND
<TABLE>
<CAPTION>
Year ended
December 31,
1995
STATEMENT OF OPERATIONS ------------
<S> <C>
Investment income:
Dividends........................................................ $ 449,089
Interest......................................................... 172,139
-----------
Total investment income........................................ 621,228
Expenses:
Investment advisory fees......................................... 275,236
Custodian fees................................................... 12,610
Regulatory fees.................................................. 34,736
Legal fees....................................................... 48,213
Auditing fees.................................................... 17,500
Other expenses................................................... 57,587
-----------
Total expenses................................................. 445,882
-----------
Net investment income.............................................. 175,346
Net realized and unrealized gain on investments:
Net realized gain on sales of investments........................ 2,781,540
Change in net unrealized appreciation of investments............. 3,049,072
-----------
Net gain on investments........................................ 5,830,612
-----------
Net increase in net assets resulting from operations............... $ 6,005,958
===========
</TABLE>
<TABLE>
<CAPTION>
Year ended Year ended
December 31, December 31,
1995 1994
STATEMENT OF CHANGES IN NET ASSETS ------------ ------------
<S> <C> <C>
Operations:
Net investment income (loss)....................... $ 175,346 $ (6,426)
Net realized gain on investments................... 2,781,540 2,656,725
Change in net unrealized appreciation of
investments....................................... 3,049,072 (1,642,402)
----------- -----------
Net increase in net assets resulting from operations. 6,005,958 1,007,897
Dividends to shareholders from:
Net investment income.............................. (175,346) --
Net realized gains................................. (2,804,377) (2,605,660)
Net increase from capital share transactions......... 10,536,459 3,558,114
----------- -----------
Net increase in net assets........................... 13,562,694 1,960,351
Net assets:
Beginning of year.................................. 18,269,830 16,309,479
----------- -----------
End of year........................................ $31,832,524 $18,269,830
=========== ===========
</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.
2. INVESTMENTS
Purchases and proceeds from sales of investments (excluding short-term
obligations) for the year ended December 31, 1995 were $24,318,543 and
$20,880,261, respectively.
3. CAPITAL SHARE TRANSACTIONS
On September 30, 1994, the Fund's shares were split 10 shares for 1 share. In
the following table, the December 31, 1994 amounts reflect the activity in
capital shares of the Fund after adjustment for the split:
<TABLE>
<CAPTION>
Year ended Year ended
December 31, 1995 December 31, 1994
------------------- ------------------
Shares Amount Shares Amount
------- ----------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold............................. 677,474 $ 9,507,691 161,231 $2,430,821
Shares issued in reinvestment of
dividends from net investment
income and net realized gains.......... 192,870 2,798,929 204,537 2,563,666
------- ----------- ------- ----------
870,344 12,306,620 365,768 4,994,487
Less shares redeemed.................... 118,518 1,770,161 99,096 1,436,373
------- ----------- ------- ----------
Net increase in shares outstanding...... 751,826 $10,536,459 266,672 $3,558,114
======= =========== ======= ==========
</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 year ended December 31, 1995 the Fund incurred advisory
fees of $275,236. 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 year
ended December 31, 1995, PWM received commissions of $342,121 from purchases
and sales of the Fund's portfolio investments and received custodian fees of
$12,610. During the year ended December 31, 1995, the Fund paid fees to its
unaffiliated trustees of $3,600.
6
<PAGE>
THE OMNI INVESTMENT FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year ended December 31, Eleven mos.
------------------------------------------------------------- ended Dec. 31,
1995 1994 1993 1992 1991 1990 1989 1988 1987(a)
------ ------ ------ ------ ------ ------ ------ ----- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Per share operating
peformance(b):
NET ASSET VALUE AT
BEGINNING OF PERIOD.... $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)................ 0.09 (0.01) 0.03 0.09 0.14 0.28 0.23 0.24 0.21
Net realized and
urealized gain (loss)
on investments........ 3.23 0.91 2.14 2.14 2.16 (2.95) 2.71 1.77 (0.29)
------ ------ ------ ------ ------ ------ ------ ----- -----
Total from investment
operations............ 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.............. $14.57 12.75 13.99 13.39 11.39 9.23 12.19 11.21 10.06
====== ====== ====== ====== ====== ====== ====== ===== =====
TOTAL RETURN (%): 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............... 1.64 1.43 1.31 1.41 1.52 1.84 1.78 1.44 1.69
Net investment income
(loss)................ 0.64 (0.04) 0.18 0.73 1.24 2.34 1.85 2.33 1.87
Portfolio turnover rate
(%)(c)................. 90 125 108 105 130 146 118 103 189
Net assets at end of
period
(in thousands)......... 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) All per share amounts prior to December 31, 1994 have been adjusted for
a 10 for 1 share split which occurred September 30, 1994.
(c) Annualized.
7
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Trustees and Shareholders
The Omni Investment Fund
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of The Omni Investment Fund as of
December 31, 1995, and the related statements of operations for the year then
ended and changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the fiscal periods since 1989.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
financial highlights for the periods ended December 31, 1988 and 1987 were
audited by other auditors whose report dated February 23, 1989, expressed an
unqualified opinion.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of December 31, 1995, by correspondence with the central depositories
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
The Omni Investment Fund at December 31, 1995, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended and the financial highlights for each of the
fiscal periods since 1989, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
February 16, 1996
8
<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
LOGO
Annual
Report
December 31, 1995
