Academy Value Fund
Semi-Annual Report
February 29, 1996
<PAGE>
April 1, 1996
Dear Shareholder:
The first six months of our fiscal 1996 was a challenging time, as it was for
all value investors. Worries about a slowing economy, corporate profits and
interest rates caused a decline in many undervalued market sectors. During this
period, your Fund considered the uncertainty to be a buying opportunity and
added new securities while increasing the positions in several existing
holdings. This move has recently been rewarded as economic fears have eased, and
we believe the true worth of many undervalued companies is beginning to be
realized. At February 29, 1996, the Academy Value Fund's NAV stood at $10.46.
Throughout the month of March, the Fund's NAV continued to advance and currently
rests at $11.02.
The Academy Value Fund continues to place a priority on safety of principal. We
believe the portfolio is well positioned to take advantage of future
opportunities and are committed to maximizing value for our shareholders.
Sincerely,
Academy Capital Management
<PAGE>
Academy Value Fund
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS at February 29, 1996 (Unaudited)
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Shares COMMON STOCKS: 87.9% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense: 1.5%
<S> <C> <C>
3,150 AAR Corporation......................................................... $ 61,819
--------
Chemicals: 1.3%
1,000 Sigma-Aldrich Corporation............................................... 57,250
------
Computers & Information: 3.4%
5,200 Cray Research........................................................... 147,550
-------
Conglomerate: 2.7%
7,800 Hanson Trust - PLC...................................................... 115,050
-------
Consumer Services: 13.9%
8,000 CPI Corporation......................................................... 122,000
4,550 Deluxe Corporation...................................................... 146,169
8,100 Ennis Business Forms.................................................... 91,125
6,300 Franklin Quest Company.................................................. 126,000
9,500 Sealright Company, Inc.................................................. 104,500
-------
589,794
-------
Cosmetic & Personal Care Products: 1.7%
1,854 Block Drugs, Class A.................................................... 70,452
------
Financial Services: 1.8%
4,100 Union Corporation....................................................... 75,337
------
Food: 1.7%
6,100 Michael Foods, Inc...................................................... 72,438
------
Healthcare Providers: 5.4%
10,900 Community Psychology Centers............................................ 100,825
18,000 Novacare, Inc........................................................... 128,250
-------
229,075
-------
Industrial Products: 2.9%
6,550 Watts Industries, Inc., Class A......................................... 123,631
-------
<PAGE>
Academy Value Fund
PORTFOLIO OF INVESTMENTS at February 29, 1996 (Unaudited), Continued
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Shares Market Value
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Insurance: 7.2%
9,900 Amvestors Financial Corporation......................................... $ 110,137
3,350 First Colony Corporation................................................ 82,912
4,100 Security - Connecticut Corporation...................................... 112,238
-------
305,287
-------
Medical Supplies: 4.9%
6,450 Acuson Corporation...................................................... 95,944
9,900 Sullivan Dental Products, Inc........................................... 111,375
-------
207,319
-------
Pharmaceuticals: 2.4%
19,100 Huntingdon International - PLC, ADR..................................... 100,275
-------
Retailers - Broadline: 14.7%
24,300 Bon-Ton Stores, Inc..................................................... 145,800
3,550 Dillard Department Stores, Class A...................................... 110,937
4,700 Family Dollar Stores.................................................... 64,625
30,800 Kmart Corporation....................................................... 215,600
7,350 Shopko Stores, Inc...................................................... 87,281
------
624,243
-------
Retailers - Drug Based: 1.6%
8,800 Fay's, Inc.............................................................. 67,100
------
Retailers - Specialty: 6.8%
6,650 Gibson Greeting, Inc.................................................... 95,594
16,400 Hi-Lo Automotive, Inc................................................... 90,200
10,400 Wolohan Lumber Company.................................................. 104,000
-------
289,794
-------
Semiconductors & Related: 2.0%
27,800 Micronics Computers, Inc................................................ 85,138
------
Shoes: 1.6%
7,800 K-Swiss, Inc., Class A.................................................. 69,225
------
Telephone Systems: 2.8%
3,900 Telefons De Mexico SA, ADR.............................................. 118,950
-------
<PAGE>
Academy Value Fund
PORTFOLIO OF INVESTMENTS at February 29, 1996 (Unaudited), Continued
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Shares Market Value
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Utilities: 1.5%
5,400 Destec Energy, Inc...................................................... $ 62,775
--------
Waste Management: 6.1%
8,800 Groundwater Technology, Inc............................................. 114,400
11,200 Gundle/SLT Environmental, Inc........................................... 63,000
8,200 Laidlaw Inc., Class B................................................... 79,950
------
257,350
-------
Total Common Stocks (cost $3,780,121)................................... 3,729,852
---------
Principal Amount REPURCHASE AGREEMENTS: 11.8%
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$499,367 Provident Bank Repurchase Agreement, 4.85%, dated 2/29/96,
due 3/1/96, collateralized by $505,000 U.S. Treasury Bill,
due 3/7/96 (total value of collateral is $504,900) (proceeds
$499,433) (cost $499,367)............................................... 499,367
-------
Total Investments in Securities (cost $4,279,488+): 99.7% .............. 4,229,219
Other Assets Less Liabilities: 0.3%..................................... 12,063
------
Total Net Assets: 100.0% ............................................... $4,241,282
==========
<FN>
+ Cost for federal income tax purpose is the same.
</FN>
</TABLE>
<TABLE>
Net unrealized depreciation consists of:
<S> <C>
Gross unrealized appreciation........................................... $ 258,691
Gross unrealized depreciation........................................... (308,960)
--------
Net unrealized depreciation................................... $ (50,269)
=========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Academy Value Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at February 29, 1996 (Unaudited)
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ASSETS
<S> <C>
Investments in securities, at value (identified cost $4,279,488) (Note 2-A) ........... $4,229,219
Dividends and interest receivable ..................................................... 4,773
Prepaid expenses....................................................................... 10,204
------
Total assets .............................................................. 4,244,196
---------
LIABILITIES
Accrued expenses ...................................................................... 2,914
-----
Total liabilities.......................................................... 2,914
-----
NET ASSETS $4,241,282
==========
Net asset value, offering price and redemption price per share
($4,241,282/405,326 shares outstanding;
unlimited number of shares authorized without par value) ........................ $10.46
======
SOURCE OF NET ASSETS
Paid-in capital ....................................................................... $4,364,849
Undistributed net investment income.................................................... 392
Accumulated net realized loss on investment transactions............................... (73,690)
Net unrealized depreciation of investments............................................. (50,269)
-------
Net assets ...................................................................... $4,241,282
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Academy Value Fund
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Period Ended February 29, 1996 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
<S> <C>
Interest......................................................................... $ 15,859
Dividends........................................................................ 26,582
------
Total income............................................................... 42,441
------
Expenses:
Advisory fees (Note 3)........................................................... 9,278
Administrative fee (Note 3)...................................................... 14,959
Custodian and accounting fees.................................................... 8,635
Transfer agent fees.............................................................. 3,241
Auditing fees.................................................................... 5,984
Legal fees....................................................................... 611
Reports to shareholders.......................................................... 1,038
Trustees fees.................................................................... 1,351
12b-1 fees....................................................................... 4,884
Miscellaneous.................................................................... 1,661
-----
Total expenses............................................................. 51,642
Less: expense reimbursements (Note 3)...................................... (12,666)
-------
Net expenses............................................................... 38,976
------
Net investment income ............................................... 3,465
-----
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on securities transactions..................................... (57,064)
Net unrealized depreciation of investments....................................... (273,471)
--------
Net realized and unrealized loss on investments............................ (330,535)
--------
Net Decrease in Net Assets Resulting from Operations ................ $ (327,070)
==========
<FN>
*Commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Academy Value Fund
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
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Six Months December 9,
Ended 1994* to
February 29, August 31,
1996 1995
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INCREASE IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment income............................................................. $ 3,465 $ 8,328
Net realized (loss) gain on securities transactions............................... (57,064) 32,121
Net change in unrealized appreciation of investments.............................. (273,471) 223,202
-------- -------
Net (decrease) increase in net assets resulting from operations ............ (327,070) 263,651
-------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ($0.029 per share).......................................... (11,401) -0-
Net realized gain from securities transactions ($0.124 per share)................. (48,747) -0-
------- -
Total dividends and distributions to shareholders .......................... (60,148) -0-
------- -
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in outstanding shares (a)...... 1,396,072 2,968,777
--------- ---------
Total increase in net assets ............................................... 1,008,854 3,232,428
NET ASSETS
Beginning of period............................................................... 3,232,428 -0-
--------- -
End of period (including undistributed net investment income of $392 and
$8,328, respectively)....................................................... $4,241,282 $3,232,428
========== ==========
<FN>
(a) A summary of capital shares transactions is as follows:
Six Months December 9, 1994*
Ended to
February 29, 1996 August 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Value Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold.................................... 141,949 $1,558,794 298,356 $3,190,381
Dividends issued in reinvestment
of distribution.......................... 5,756 60,147 -0- -0-
Shares redeemed................................ (21,155) (222,869) (19,580) (221,604)
------- -------- ------- --------
Net increase................................... 126,550 $1,396,072 278,776 $2,968,777
======= ========== ======= ==========
*Commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Academy Value Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
for a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months December 9, 1994*
ended through
February 29, 1996 August 31,1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period.................................... $11.60 $10.00
Income from Investment Operations:
Net investment income............................................. -0- .03
Net realized and unrealized (loss) gain on investments............ (.99) 1.57
---- ----
Total from investment operations........................................ (.99) 1.60
---- ----
Less Distributions:
Dividends from net investment income.............................. (.03) -0-
Distributions from net capital gains.............................. (.12) -0-
---- -
Total Distributions..................................................... (.15) -0-
---- -
Net Asset Value, End of Period.......................................... $10.46 $11.60
====== ======
Total Return............................................................ (16.33%)+ 22.68%+
Ratios/Supplemental Data:
Net assets, end of period (millions).................................... $ 4.2 $ 3.2
Ratio of expenses to average net assets:
Before expense reimbursement...................................... 2.65%+ 5.20%+
After expense reimbursement....................................... 2.00%+ 2.00%+
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement...................................... (0.47%)+ (2.62)%+
After expense reimbursement....................................... 0.18%+ 0.64%+
Portfolio turnover rate................................................. 12.63% 13.26%
<FN>
*Commencement of operations.
+Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Academy Value Fund
NOTES TO FINANCIAL STATEMENTS at February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Academy Value Fund (the "Fund") is a series of shares of beneficial
interest of Professionally Managed Portfolios, which is registered under the
Investment Company Act of 1940 as a diversified, open-end management company.
The Fund began operations on December 9, 1994.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation: The Fund's investments are carried at market
value. Securities listed on an exchange or quoted on a national
market system are valued at the last sale price. Other securities
are valued at the last quoted bid price. Securities for which market
quotations are not readily available, if any, are valued at an
independent pricing service or determined following procedures
approved by the Board of Trustees. Short-term investments are valued
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 substantially al
of its taxable income to its shareholders. Therefore,
no federal income tax provision is required.
C. Securities Transactions, Dividends and Distributions: As is
common in the industry, security transactions are accounted
for on the trade date. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
NOTE 3 - COMMITMENTS AND RELATED PARTY TRANSACTIONS
For the period ended February 29, 1996, Academy Capital Management (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space and certain administrative services, and provides most of the
personnel needed by the Fund. As compensation for its services, the Advisor was
entitled to a monthly fee at the annual rate of 1.00% based upon the average
daily net assets of the Fund.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund to the extent necessary to limit
the Fund's aggregate annual operating expenses to 2.00% of total net assets. As
a result, the Advisor waived its fee and reimbursed the Fund for expenses in
excess of the limit in the amount of $3,388.
Southhampton Investment Management Company (the "Manager") acts as the
Fund's Manager under an Investment Management Agreement. The Manager prepares
various federal and state regulatory filings, reports and returns for the Fund;
prepares reports and materials to be supplied to the trustees; monitors the
activities of the Fund's custodian, transfer agent and accountants; coordinates
the preparation and payment of Fund expenses and reviews the Fund's expense
accruals. For its services, the Manager receives an annual fee equal to the
greater of 0.25% of the Fund's average daily net assets or $30,000.
<PAGE>
Academy Value Fund
NOTES TO FINANCIAL STATEMENTS at February 29, 1996 (Unaudited), Continued
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Manager.
Certain officers and Trustees of the Fund are also officers and/or
directors of the Manager and the Distributor.
NOTE 4 - PURCHASES AND SALES OF SECURITES
For the period ended February 29, 1996, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$2,072,934 and $415,259, respectively.
<PAGE>
Advisor
Academy Capital Management
500 North Valley Mills Drive
Suite 208
Waco, Texas 76710
(817) 751-0555
Distributor
First Fund Distributors, Inc.
4455 East Camelback Road
Suite 261E
Phoenix, Arizona 85018
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
Transfer Agent
American Data Services
24 West Carver Street
2nd Floor
Huntington, New York 11743
Auditors
Ernst & Young, LLP
515 South Flower Street
Los Angeles, California 90071
Legal Counsel
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, California 94104
This report is intended for shareholders of
Academy Value Fund and may not be
used as sales literature unless preceded
or accompanied by a current prospectus.
