FAM Value Fund
Semi-Annual Report
June 30, 1996
a 100% No-Load Fund
Dear Shareholder: July 1996
The first six months of 1996 have started in a fashion
reminiscent of last year's experience; your fund is ahead
7.0%. While this return far outstrips inflation and
provides a decent return in the short term, we are also
aware that the S&P 500 has advanced 10.1% and the Russell
2000 is up 9.7%. For the last 18 months, small cap value
investors have taken a back seat to larger cap investments.
For your review, I have included a performance chart of FAM
Value Fund since inception.Longer term, the FAM Value Fund
has a trailing 12-month return of 17.8% and a five-year
compounded annual rate of return of 13.5%.
Over the past year, expectations of investors have risen to
levels that we believe are not sustainable. Compounded
returns of 18-20% may be achieved in the short term, but
over five- to ten-year cycles it is unrealistic to expect
that trend to be sustained. The reason lies in simple
economics. Corporate profits, on average, have grown at 8-9%
over the last 35 years. Given the slowdown of the economy
and the current inflation and interest rates, no one expects
rapid growth above this norm. Compounded investment returns
of 18-20% suggest that corporate profits will increase at a
much more rapid rate than 8-9%. On the other hand, over the
last 70 years, stock prices have grown on average at only a
9-10% rate. It is no coincidence that this rate approximates
the same rate of growth as corporate earnings.
Realistically, expected returns should be much lower.
Keeping this in mind, we continue with our goal of finding
investments that can double in value over five to six years.
This clearly aligns with a lower expectation of a 12-15%
compounded annual rate of return.
<PAGE>
Our niche has been to focus on understandable businesses. In
this regard, you will not find us venturing into high tech
areas where changing conditions are the norm. Change works
against being able to predict what may happen in the future.
We prefer to stick with simpler businesses that allow for a
higher degree of predictability. As Warren Buffett has said,
"Why bet on difficult things when success can be achieved by
concentrating on simple things?" As a case in point, FAM
Value was helped in the first six months by MailBoxes Etc.,
Kaydon Corporation, Allied Group, First Colony and Hannaford
Brothers _ a pack and ship business, a bearing manufacturer,
two insurance companies, and a supermarket chain. All
represent very understandable businesses. These businesses
are highly profitable and are managed in every case by
extremely capable people whom we admire. Yet none of them
sell at outrageously high prices. In the case of Allied
Group and First Colony, they can still be purchased at a
reasonable P/E of 10x annual earnings, which compares
favorably to the current market average P/E of 19x annual
earnings. These stocks have risen in price based on their
economic merit, not on the inflated expectations of
speculators in the marketplace.
Consistent application of our value investment philosophy
has proven to be successful over long time periods. In this
regard, we believe investing is more like running in a
marathon than in a 100 yard dash! While it might be
exhilarating to ride on the jet trail of the latest IPO
blast-off, we assure you we will not invest your capital
based on a "wing and a prayer" notion about the future.We
are pleased and thankful that you have put your faith in us.
We promise you that we will continue our rigorous value
approach to investing.
Sincerely,
Thomas O. Putnam
President
<PAGE>
Statement of Investments
June 30, 1996 (Unaudited)
COMMON STOCKS (100%) Shares Value
AUTOMOTIVE (0.63%)
Spartan Motors, Inc. 213,950 $ 1,604,625
BANKING (12.27%)
* Centennial Bancorp 103,653 1,451,142
Centura Banks, Inc. 146,250 5,374,687
First Bank System 20,924 1,213,592
First Empire Corporation 17,300 4,169,300
ONBANCorp 230,000 7,532,500
One Valley Bancorp 93,500 3,225,750
* Plumas Bank 57,024 684,288
SouthTrust Corporation 142,000 3,993,750
* Transworld Bancorp 69,615 1,009,417
TrustCo Bank Corp. NY 122,797 2,363,842
31,018,268
CHEMICAL (0.94%)
WD-40 Company 50,400 2,368,800
COMPUTER SOFTWARE & SERVICES (0.47%)
Cognex Corporation 74,100 1,194,863
CONSUMER PRODUCTS (3.70%)
Jostens, Inc. 238,300 4,706,425
* Safety 1st, Inc. 65,400 547,725
Stanhome 155,000 4,107,500
9,361,650
CONSUMER SERVICES (0.62%)
* Franklin Quest 75,800 1,572,850
DIVERSIFIED MANUFACTURING (6.74%)
CLARCOR, Inc. 182,500 4,516,875
!* ESSEF Corporation 277,250 4,782,562
Raven Industries 145,450 2,945,363
!* Versa Technologies, Inc. 355,758 4,802,732
17,047,532
<PAGE>
ELECTRICAL/ELECTRONICS (3.61%)
* C-Cor Electronics 353,200 $ 6,357,600
* IFR Systems 169,000 2,070,250
Sage Laboratories, Inc. 45,500 693,875
9,121,725
FINANCIAL SERVICES (11.65%)
!* Allied Capital Advisors 500,000 3,687,500
American Express 219,500 9,795,188
Fund American 111,975 9,069,975
Salomon, Inc. 157,000 6,908,000
29,460,663
GROCERY STORES (2.97%)
Hannaford Brothers 229,900 7,500,487
HEALTH CARE (15.15%)
CR Bard, Inc. 300,000 10,200,000
!* CONMED Corporation 748,862 19,938,451
* Copley Pharmaceuticals, Inc. 149,100 1,975,575
!* Hycor Biomedical 800,000 3,600,000
* Minntech Corporation 139,000 1,511,625
!* Scherer Healthcare 287,025 1,076,344
38,301,995
INSURANCE (22.22%)
! Allied Life 241,800 4,836,000
Allied Group, Inc. 210,350 9,150,225
Donegal Group, Inc. 116,000 2,001,000
First Colony Corporation 270,300 8,379,300
! Intercargo Corporation 588,800 5,078,400
!* Midland Financial Group,Inc. 317,200 3,608,150
Poe & Brown, Inc. 52,700 1,304,325
Protective Life Corporation 167,200 5,872,900
Reliastar Financial 233,100 10,052,438
UNUM Corporation. 73,380 4,567,905
Vesta Insurance Group 40,000 1,335,000
56,185,643
<PAGE>
MACHINERY & EQUIPMENT (10.26%)
IDEX Corporation 104,400 $ 3,967,200
Kaydon Corporation 297,500 12,792,500
! Modern Controls, Inc. 277,812 2,882,300
Regal-Beloit 53,300 1,052,675
Tennant Corporation 201,400 5,236,400
25,931,075
MAIL ORDER & CATALOG (0.68%)
Blair Corporation 72,600 1,715,175
POSTAGE & BUSINESS SERVICE (5.43%)
!* Mailboxes Etc. 600,000 13,725,000
PRINTING (2.66%)
* CSS Industries, Inc. 241,500 5,675,250
Deluxe Corporation 29,600 1,050,800
6,726,050
TOTAL INVESTMENTS (Cost $195,855,629) $252,836,401
* Non-income producing
! See Note 5
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30 (Unaudited)
ASSETS
Investment in securities at market value
(Cost $195,855,628) $252,836,401
Cash at interest 14,512,273
Dividends and interest receivable 372,765
Total Assets 267,721,439
LIABILITIES
Payable for investment securities
purchased 899,973
Accrued management fees 221,223
Accrued expenses 126,369
Total Liabilities 1,247,565
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of
beneficial interest $197,006,763
Undistributed net investment income 829,953
Accumulated net realized gains 11,656,385
Net unrealized appreciation 56,980,773
Net Assets $ 266,473,874
Net asset value per share;
10,133,620 shares of
beneficial interest outstanding (Note 3) $ 26.30
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1996 (Unaudited)
INVESTMENT INCOME
Income:
Dividends $2,159,126
Interest 373,878
Total Income 2,533,004
Expenses:
Investment advisory fee (Note 2) 1,319,393
Administrative fee (Note 2) 32,985
Custodian fee 18,706
Registration fees 14,167
Shareholder servicing and related
expenses 185,720
Professional fees 23,825
Printing and mailing 58,490
Trustees 5,432
Other 45,058
Total Expenses 1,703,776
Net Investment Income 829,228
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 11,656,353
Unrealized appreciation of investments
for the period 5,303,222
Net Gain on Investments 16,959,575
Net Increase in Net Assets
from Operations: $17,788,803
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended June 30, 1996 (Unaudited) and Year Ended
December 31, 1995
Six Months Year Ended
Ended June 30, December 31,
1996 1995
Change in Net Assets from Operations:
Net investment income 829,228 $2,208,847
Net realized gain on investments 11,656,353 4,211,001
Unrealized appreciation for the period 5,303,222 37,399,564
Net Increase in Net Assets From Operations 17,788,803 43,819,412
Distributions to Shareholders from:
Net investment income _ (2,209,176)
Net realized gain on investments _ (4,210,980)
Capital Share Transactions (Note 3) (18,472,865) 19,179,600
Total (Decrease) Increase in Net Assets (684,062) 56,578,856
Net Assets:
Beginning of period 267,157,936 210,579,080
End of period 266,473,874 267,157,936
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1. Summary of Accounting Policies
FAM Value Fund (the "Fund") is a series of Fenimore Asset
Management Trust, a no-load, diversified, open-end
management investment company registered under the
Investment Company Act of 1940. The investment objective of
the Fund is to seek a high long term total return consisting
of appreciation and dividend income from investments in
equity related securities. The following is a summary of
significant accounting policies followed in the preparation
of its financial statements.
a) Valuation of Securities _ Securities traded on a national
securities exchange or admitted to trading on NASDAQ are
valued at the last reported sales price. Common stocks for
which no sale was reported, and over-the-counter securities,
are valued at the last reported bid price. Short term
securities are carried at amortized cost, which approximates
market value.
b) Federal Income Taxes _ It is the Fund's policy to comply
with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders.
Therefore, no provision for federal income tax is required.
c) Use of Estimates _ The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results
could differ from those estimates.
d) Other _ Securities transactions are recorded on the trade
date basis. Interest income is accrued as earned and
dividend income is recorded on the ex-dividend date.
Dividends and distributions to shareholders, which are
determined in accordance with income tax regulations, are
recorded on the ex-dividend date.
Note 2. Investment Advisory Fees and Other Transactions
with Affiliates
Under the Investment Advisory Contract, the Fund pays an
investment advisory fee to Fenimore Asset Management, Inc.
(the "Advisor") equal, on an annual basis, to 1% of the
Fund's average daily net assets. Certain officers and
trustees of the Fund are also officers and directors of the
Advisor. The Advisor is required to reimburse the Fund for
its expenses to the extent that such expenses, including the
advisory fee, for any fiscal year exceed 2% of the average
daily net assets. No such reimbursement was required for the
six months ended June 30, 1996. FAM Shareholder Services,
Inc. (FSS), a company under common control with the Advisor,
serves as a shareholder servicing agent for which it
received a monthly fee of $1.75 per shareholder account.
Additionally, FSS serves as the fund administrative agent
for which it received a fee equal, on an annual basis, to
.025% of the Fund's average daily net assets. For the six
months ended June 30, 1996, administrative fees amounted to
$32,985.
<PAGE>
Note 3. Shares of Beneficial Interest
At June 30, 1996, an unlimited number of $.001 par value
shares of beneficial interest were authorized. Transactions
were as follows:
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
Shares Amount Shares Amount
Shares sold 621,813 $15,708,377 2,306,111 $51,452,609
Shares issued on rein-
vestment of dividends --- --- 251,458 6,135,577
Shares redeemed (1,356,274) (34,181,242) (1,696,462) (38,408,586)
Net (decrease)
increase (734,461) $(18,472,865) 861,107 $19,179,600
Note 4. Investment Transactions
During the period ended June 30, 1996, purchases and sales
of investment securities, other than short term obligations,
were $18,601,025 and $30,778,534. The cost of securities for
federal income tax purposes is the same as shown in the
investment portfolio. Realized gains and losses are reported
on an identified cost basis.
The aggregate gross unrealized appreciation of portfolio
securities, based on cost for federal income tax purposes,
was as follows:
Unrealized appreciation $75,068,037
Unrealized (depreciation) (18,087,264)
Net unrealized appreciation $56,980,773
Note 5. Holdings of 5% Voting Securities of Portfolio Companies
Investments in portfolio companies, 5% or more of whose
outstanding voting securities are held by the Fund, are
defined in the Investment Company Act of 1940 as affiliated
companies. Investments in affiliated companies as of June
30, 1996, amounted to $68,017,441. For the period ended June
30, 1996, dividend income of $180,911 was received from
affiliated companies, as well as net realized gains of
$4,673,020 from the sale of such securities.
<PAGE>
Note 6. Selected Financial Information
Per share information
(For a share
outstanding
throughout Six Months Ended ---------- Years Ended December 31,----------
the year) June 30, 1996 1995 1994 1993 1992 1991
Net asset value,
beginning of year $24.58 $21.04 $20.40 $20.50 $16.87 $12.06
Income from investment
operations:
Net investment income 0.08 0.21 0.12 0.09 0.10 0.08
Net realized and
unrealized gain (loss)
on investments 1.64 3.94 1.27 (0.05) 4.11 5.63
Total from investment
operations 1.72 4.15 1.39 0.04 4.21 5.71
Less distributions:
Dividends from net
investment income - (0.21) (0.12) (0.09) (0.10) (0.08)
Distributions from
net realized gains - (0.40) (0.63) (0.05) (0.48) (0.82)
Total distributions - (0.61) (0.75) (0.14) (0.58) (0.90)
Change in net asset
value for the year 1.72 3.54 0.64 (0.10) 3.63 4.81
Net asset value,
end of year $26.30 $24.58 $21.04 $20.40 $20.50 $16.87
Total Return 14.11%* 19.71% 6.82% 0.21% 25.08% 47.63%
Ratios/supplemental data
Net assets,
end of year (000) $266,474 267,158 210,579 220,138 44,694 13,943
Ratios to average
net assets of:
Expenses 1.29%* 1.25% 1.39% 1.39% 1.50% 1.49%
Net investment
income 3.22%* 0.92% 0.58% 0.57% 0.81% 0.66%
Portfolio turnover
rate 7.43% 9.67% 2.15% 4.83% 9.84% 13.56%
Average commission
rate paid (per share) $0.0622
* Annualized
<PAGE>
Investment Advisor
Fenimore Asset Management, Inc.
Cobleskill, NYCustodian
Custodian
Chase Manhattan Bank, N.A.New York, NY
Accounting Firm
McGladrey & Pullen, LLP
New York, NY
Trustees
Roger A. Hannay
John W. Krueger, CLU
Thomas O. Putnam
Diane C. Van Buren
Bernard H. Zais, CLU
Legal Counsel
Dechert Price & Rhoads
Washington, DC
Shareholder Servicing Agent
FAM Shareholder Services, Inc.
Cobleskill, NY
<PAGE>
FAM
Equity-Income Fund
Semi-Annual Report
June 30, 1996
A 100% No-Load Fund
Dear Shareholder: July 1996
I would like to take this opportunity to welcome you as a
new shareholder in the FAM Equity-Income Fund. FAM Equity-
Income had its birth on April 1, 1996. While three months is
far too short a period of time to judge any fund, we are
quite pleased with Equity-Income's beginnings.
For the record, your fund was up 2.2% for the period ending
June 30, 1996. This was achieved with less than one half of
the fund's assets being invested for the full quarter. As of
the end of the quarter, your fund had 14 investments. Our
35% cash position is much larger than we anticipate for year-
end.
We have often been asked what sets FAM Equity-Income apart
from its sister fund, FAM Value. First and foremost, Equity-
Income will invest mostly in dividend paying companies. To
date, all of the companies owned by Equity-Income pay a
dividend. The dividends and interest earned by Equity-Income
will be distributed quarterly rather than yearly, as is done
with the FAM Value Fund. One goal of the Equity-Income Fund
is to attain a consistently growing dividend and interest
income stream that can be relied upon by the shareholders of
this fund.
Fundamentally, our analysis of companies that are
appropriate for your fund is worth reiterating. In the first
place, we are looking for niche businesses that are easily
understandable. As Warren Buffett has said, "Why bet on
difficult things when success can be achieved by
concentrating on simple things." Secondly, we want to own
businesses that are highly profitable and are able to fuel
their growth out of internal cash. Debt is not the most
desirable partner of a good business. Thirdly, we seek
companies with an able management team. It is much easier to
sleep at night if your business partner can be trusted and
respected. Lastly, in a very risky stock market environment,
we will only pay a reasonable price for a stock. The success
of your fund depends, to a large extent, on our ability to
predict the future success of businesses owned by the fund.
Since our crystal ball is limited, we cautiously pay for
stocks at a fraction of what we feel they may be worth.
All current holdings of the Equity-Income Fund, we feel,
meet the above criteria and pay an adequate dividend.
Although there is some overlap, we feel FAM Equity-Income
truly has its own identity. We feel its structure provides
you with a reasonable expectation of total return (capital
appreciation plus income) over the next five to six years.
Thank you for your initial vote of confidence. Paul Hogan
and I promise to continue working diligently to merit your
future confidence.
Sincerely,
Thomas O. Putnam
President
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (Unaudited)
ASSETS
Investment in securities at market value
(Cost $1,283,295) $1,309,976
Cash at interest 57,807
Dividends and interest receivable 6,259
Deferred registration fees 12,846
Deferred organization costs 14,094
Total Assets 1,400,982
LIABILITIES
Payable to investment advisor 23,140
Accrued advisory fees 1,013
Accrued expenses 4,338
Total Liabilities 28,491
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of
beneficial interest $1,345,779
Undistributed net investment income 31
Net unrealized appreciation 26,681
Net Assets $1,372,491
Net asset value per share;
135,093 shares of beneficial
interest outstanding (Note 3) $ 10.16
<PAGE>
STATEMENT OF INVESTMENTS
June 30, 1996 (Unaudited)
Shares Value
COMMON STOCKS (67.71%)
BANKING (8.11%)
SouthTrust Corp. 2,000 $ 56,250
TrustCo Bank Corp. NY 2,600 50,050
106,300
CHEMICAL (4.67%)
WD-40 Company 1,300 61,100
CONSUMER PRODUCTS (4.07%)
Jostens Inc. 2,700 53,325
DIVERSIFIED MANUFACTURING (14.70%)
CLARCOR, Inc. 3,300 81,675
Gorman-Rupp 4,400 58,300
Raven Industries 2,600 52,650
192,625
HEALTH CARE (14.75%)
ADAC Labs. 3,000 68,250
Atrion Corporation 2,500 63,750
Landauer Inc. 2,900 61,262
193,262
INSURANCE (10.56%)
Poe & Brown, Inc. 2,800 69,300
ReliaStar Financial 1,600 69,000
138,300
<PAGE>
REAL ESTATE INVESTMENT TRUSTS (6.13%)
New Plan Realty 3,800 $ 80,275
REGULATED INVESTMENT COMPANIES (4.72%)
Allied Capital Corp. 4,500 61,875
Total Common Stocks
(cost $860,381) 887,062
SHORT TERM OBLIGATIONS (32.29%)
U.S. Treasury Bills, 4.0% to 4.4%
with maturities to 8/22/96
(cost $422,914) 425,000 422,914
Total Investments
(Cost $1,283,295) $1,309,976
<PAGE>
STATEMENT OF OPPERATIONS
April 1, 1996 (inception) to June 30, 199 (Unaudited)
INVESTMENT INCOME
Income:
Dividends $ 5,219
Interest 5,532
Total income 10,751
Expenses:
Investment advisory fee (Note 2) 2,136
Administrative fee (Note 2) 53
Custodian fee 1,167
Organization costs 742
Shareholder servicing
and related expenses 324
Registration fees 4,782
Professional fees 2,000
Trustees 1,323
Printing 824
Total expenses 13,351
Less: Investment advisory fee
and other expenses waived
orassumed by advisor(Note 2) (10,147)
Net expenses 3,204
Net investment income 7,547
Realized and Unrealized Gain on Investments:
Unrealized appreciation of
investments for the period 26,681
Net Increase in Net Assets from Operations: $ 34,228
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
April 1, 1996
(inception) to
June 30, 1996
Change in Net Assets from Operations:
Net investment income $ 7,547
Unrealized appreciation for the period 26,681
Net Increase in Net Assets From Operations 34,228
Distributions to Shareholders from:
Net investment income (7,516)
Capital Share Transactions (Note 3) 1,345,779
Total Increase in Net Assets 1,372,491
Net Assets:
Beginning of period 0
End of period $1,372,491
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Summary of Accounting Policies
FAM Equity-Income Fund (the "Fund"), which began operations
on April 1, 1996, is a series of Fenimore Asset Management
Trust, a no-load, diversified, open-end management
investment company registered under the Investment Company
Act of 1940. The investment objective of the Fund is to seek
a high long term total return consisting of appreciation and
dividend income from investments in equity related
securities. The following is a summary of significant
accounting policies followed in the preparation of its
financial statements.
a) Valuation of Securities
Securities traded on a national securities exchange or
admitted to trading on NASDAQ are valued at the last
reported sales price. Common stocks for which no sale was
reported, and over-the-counter securities, are valued at the
last reported bid price. Short term securities are carried
at amortized costs, which approximates market value.
b) Federal Income Taxes
It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its
shareholders. Therefore, no provision for federal income tax
is required.
c) Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases
and decreases in net assets from operations during the
reporting period. Actual results could differ from those
estimates.
d) Other
Securities transactions are recorded on the trade date
basis. Interest income is accrued as earned and dividend
income is recorded on the ex-dividend date. Dividends and
distributions to shareholders, which are determined in
accordance with income tax regulations, are recorded on the
ex-dividend date.
e) Deferred Organization Option
Organization costs of $14,836 were deferred and are being
amortized on a straight line basis over a period of 60
months, commencing with the Fund's date of inception.
f) Deferred Registration Fees
Registration fees of $17,128 were deferred and are being
amortized on a straight line basis over a period of 12
months, commencing with the Fund's date of inception.
2. Investment Advisory Fees and Other Transactions with Affiliates
Under the Investment Advisory Contract, the Fund pays an
investment advisory fee to Fenimore Asset Management, Inc.
(the "Advisor") equal, on an annual basis, to 1% of the
Fund's average daily net assets. The Advisor is required to
reimburse the Fund for its expenses to the extent that such
expenses, including the advisory fee, for any fiscal year
exceeds 1.5% of the average daily net assets. During the
period ended June 30, 1996, the Advisor waived its
investment advisory fee and assumed other operating expenses
aggregating $10,147.
<PAGE>
FAM Shareholder Services Inc. ("FSS"), a company under
common control with the Advisor, serves as a shareholder
servicing agent for which it received a monthly fee of $1.75
per shareholder account. Additionally, FSS serves as the
fund administrative agent for which it received a fee equal,
on an annual basis, to .025% of the Fund's average daily net
assets. For the period ended June 30, 1996, administrative
fees amounted to $53.
Certain officers and trustees of the Fund are also officers
and directors of the Advisor.
3. Shares of Beneficial Interest
At June 30, 1996, an unlimited number of $.001 par value
shares of beneficial interest were authorized. Transactions
were as follows:
April 1, 1996 (inception) to
June 30, 1996
Shares Amount
Shares sold 135,389 $1,348,753
Shares issued on
reinvestment of
dividends 677 6,842
Shares redeemed (973) (9,816)
Net increase 135,093 $1,345,779
4. Investment TransactionsDuring the period April 1, 1996
(inception) to June 30, 1996, purchases and sales of
investment securities, other than short term obligations,
were $860,381 and $0. The cost of securities for federal
income tax purposes is the same as shown in the investment
portfolio.
The aggregate gross unrealized appreciation of portfolio
securities, based on cost for federal income tax purposes,
was as follows:
Unrealized appreciation $40,236
Unrealized (depreciation) (13,555)
Net unrealized appreciation $26,681
<PAGE>
5. Selected Financial Information
Per share information April 1, 1996
(For a share outstanding (inception) to
throughout the period) June 30, 1996
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income 0.06
Net realized and unrealized gain
(loss) on investments 0.16
Total from investment operations 0.22
Less distributions:
Dividends from net investment income 0.06
Change in net asset value for the period 0.16
Net asset value, end of period $10.16
Total Return 6.42%*
Ratios/supplemental data
Net assets,end of period (000) $1,372
Ratios to average net assets of:
Expenses, total 5.51%*
Expenses, net of deferred reimbursement 1.50%*
Net investment income 3.44%*
Portfolio turnover rate 150%
Average commission rate paid (per share) $0.0469*
*Annualized
<PAGE>
Investment Advisor
Fenimore Asset Management, Inc.
Cobleskill, NY
Custodian
Chase Manhattan Bank, N.A.
New York, NY
Accounting Firm
McGladrey & Pullen, LLP
New York, NY
Trustees
Roger A. Hannay
John W. Krueger, CLU
Thomas O. Putnam
Diane C. Van Buren
Bernard H. Zais, CLU
Legal Counsel
Dechert Price & Rhoads
Washington, DC
Shareholder Servicing Agent
FAM Shareholder Services, Inc.Cobleskill, NY
