================================================================================
THE NORTH CAROLINA
TAX FREE BOND FUND
[LOGO]
A No-Load Mutual Fund
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
February 28, 1999
(Unaudited)
- --------------------------------------------------------------------------------
[LOGO] BOYS, ARNOLD
& COMPANY, INC,
INVESTMENT ADVISOR
Post Office Drawer 5255
1272 Hendersonville Road
Asheville, North Carolina 28813-5255
1.800.286.8038
FUND ADMINISTRATOR
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.841.0987
================================================================================
<PAGE>
April 12, 1999
Dear Shareholder:
We are pleased to enclose your copy of the Semi-Annual Report for The North
Carolina Tax Free Bond Fund for the period ended February 28, 1999.
Over the last six months your Fund performed well despite an up-tick in interest
rates at the end of the period. In fact, municipal bonds experienced positive
returns in each month until February. At that time, concern regarding above
average economic growth caused interest rates to rise in anticipation of action
by the Federal Reserve. Adding to the stability of municipal bond prices for the
period was the continued meager supply of new North Carolina bond issues that,
although improved, remained historically low.
For the six months ended February 28, 1999, the Fund had a total return of
+1.97% (which includes both income and price change) after all expenses. The
Fund's total return compared favorably with the average total return of +1.77%
for the 40 North Carolina Municipal Debt Funds ranked by Lipper Analytical
Services, Inc. for the same period. The net asset value of the Fund on February
28, 1999 was $11.01 and the tax-free dividend income paid during the period was
$0.22 per share.
The Fund remains invested in a well-diversified portfolio of high quality North
Carolina municipal bonds with a current average maturity of about fourteen
years. The portfolio's overall credit quality is AA+ as measured by Standard and
Poor's Corporation quality ratings.
Although interest rates have spiked up recently, we expect interest rates to
move in a downward trend over the balance of the year. This is based on our
outlook for a healthy but moderating economy with little inflationary pressures.
We continue to believe that inflation expectations manifested in bond yields
remain too high and do not fully reflect the current low inflationary
environment. Interest rates should continue to benefit from slowing economic
activity in the U.S., a weakening in Europe's economy and economic contraction
in Latin America. This combination should restrain exports and increase global
competition. Coupled with the reduced borrowing demands of the Federal
Government, this should allow interest rates to soften. Concerns over labor
tightness thus far appear to be offset by increases in productivity. Although
the resurgence of Asian economies appears to be underway, we do not expect this
to overcome the softness we see elsewhere.
On a tax equivalent basis municipal bonds offer quite attractive returns
relative to taxable bonds. In addition, bonds offer relative stability at a time
when the stock markets appear overvalued by historical measures. We encourage
investors to maintain a long-term outlook toward their investment in the Fund
and to consider a plan of regular investment through dollar-cost averaging.
If you have questions about your specific account with the Fund, contact
Shareholder Services at 800-841-0987. If you would like information on the Fund,
including the current prospectus, please call us at 800-286-8038. Also, you can
find the Fund's daily NAV quotation on market data terminals by using the Fund's
ticker symbol which is: NCTFX.
We appreciate your continued trust and support and welcome your questions and
comments.
Sincerely,
/s/ John B. Kuhns /s/ Jon L. Vannice
John B. Kuhns Jon L. Vannice
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1999
(Unaudited)
ASSETS:
Investment securities, at value
(amortized cost $13,264,760)(note 1) $13,819,280
Interest receivable 211,547
Receivable for capital shares sold 500
Receivable from Advisor (note 3) 2,177
Other assets 5,050
-----------
TOTAL ASSETS 14,038,554
-----------
LIABILITIES:
Dividends payable 2,910
Payable for capital shares redeemed 50,000
Payable to affiliates (note 3) 4,700
Other accrued expenses and liabilities 7,122
-----------
TOTAL LIABILITIES 64,732
-----------
NET ASSETS $13,973,822
===========
NET ASSETS CONSIST OF:
Paid-in capital $13,410,762
Accumulated net realized gains from security transactions 8,540
Net unrealized appreciation on investments 554,520
-----------
NET ASSETS $13,973,822
-----------
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) 1,269,051
===========
Net asset value, offering price and
redemption price per share (note 1) $ 11.01
===========
See accompanying notes to financial statements.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
STATEMENT OF OPERATIONS
For the Six Months Ended February 28, 1999
(Unaudited)
INVESTMENT INCOME:
Interest $ 316,506
---------
EXPENSES:
Investment advisory fees (note 3) 22,786
Accounting services fees (note 3) 12,000
Administration fees (note 3) 9,797
Transfer agent fees (note 3) 6,000
Professional fees 5,450
Postage and supplies 3,918
Trustees' fees and expenses 3,365
Custodian fees 3,348
Insurance expense 3,239
Pricing expenses 2,997
Reports to shareholders 2,668
Registration fees 1,151
---------
TOTAL EXPENSES 76,719
Investment advisory fees waived (note 3) (21,381)
---------
NET EXPENSES 55,338
---------
NET INVESTMENT INCOME 261,168
---------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gains from security transactions 8,537
Net decrease in unrealized appreciation on investments (16,464)
---------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS (7,927)
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 253,241
=========
See accompanying notes to financial statements.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended February 28, 1999 and August 31, 1998
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, YEAR ENDED
1999 AUGUST 31,
(UNAUDITED) 1998
------------ ------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 261,168 $ 453,271
Net realized gains from security transactions 8,537 176,632
Net increase (decrease) in unrealized appreciation on investments (16,464) 324,337
------------ ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 253,241 954,240
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (261,168) (453,271)
From net realized gains from security transactions (115,531) --
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (376,699) (453,271)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 2,255,690 3,362,112
Net asset value of shares issued in
reinvestment of distributions to shareholders 347,529 365,561
Payment for shares redeemed (942,247) (1,746,629)
------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 1,660,972 1,981,044
------------ ------------
TOTAL INCREASE IN NET ASSETS 1,537,514 2,482,013
NET ASSETS:
Beginning of period 12,436,308 9,954,295
------------ ------------
End of period $ 13,973,822 $ 12,436,308
============ ============
CAPITAL SHARE ACTIVITY:
Shares sold 203,085 309,619
Shares issued in reinvestment of distributions to shareholders 31,325 33,523
Shares redeemed (84,687) (160,158)
------------ ------------
Net increase in shares outstanding 149,723 182,984
Shares outstanding, beginning of period 1,119,328 936,344
------------ ------------
Shares outstanding, end of period 1,269,051 1,119,328
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share
Outstanding Throughout Each Period
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 28, YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
1999 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 11.11 $ 10.63 $ 10.32 $ 10.36 $ 10.02 $ 10.40
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.45 0.47 0.48 0.45 0.42
Net realized and unrealized gains
(losses) on investments 0.00 0.48 0.31 (0.04) 0.34 (0.38)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 0.22 0.93 0.78 0.44 0.79 0.04
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.22) (0.45) (0.47) (0.48) (0.45) (0.42)
From net realized gains from
security transactions (0.10) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.32) (0.45) (0.47) (0.48) (0.45) (0.42)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD $ 11.01 $ 11.11 $ 10.63 $ 10.32 $ 10.36 $ 10.02
=========== =========== =========== =========== =========== ===========
TOTAL RETURN 1.97% 8.92% 7.71% 4.33% 8.16% 0.38%
=========== =========== =========== =========== =========== ===========
NET ASSETS AT END OF PERIOD $13,973,822 $12,436,308 $ 9,954,295 $ 6,400,507 $ 4,183,149 $ 3,929,053
=========== =========== =========== =========== =========== ===========
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements
and waived fees 1.18%(a) 1.42% 1.68% 2.24% 2.76% 3.26%
After expense reimbursements
and waived fees (note 3) 0.85%(a) 0.83% 0.85% 0.85% 0.85% 0.84%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS 4.01%(a) 4.15% 4.49% 4.60% 4.56% 4.09%
PORTFOLIO TURNOVER RATE 8%(a) 36% 20% 10% 83% 23%
</TABLE>
(a) Annualized.
See accompanying notes to financial statements.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
--------- ------- -------- ------------
MUNICIPAL OBLIGATIONS - 97.8%
<S> <C> <C> <C> <C>
Appalachian State University, North Carolina
Utility System Revenue $ 150,000 5.90% 05-15-08 $ 167,166
Asheville, North Carolina
Water System Revenue 150,000 5.50% 08-01-11 162,728
Buncombe County, North Carolina
Solid Waste System Special Obligation Revenue 200,000 5.60% 03-01-11 216,538
Buncombe County, North Carolina
Certificate of Participation 500,000 5.00% 12-01-12 512,945
Cabarrus County, North Carolina
General Obligation 250,000 5.40% 02-01-17 262,610
Charlotte, North Carolina
Law Enforcement Facilities Project Series A
Certificate of Participation 100,000 6.10% 12-01-15 110,282
Charlotte, North Carolina
Public Improvements 400,000 5.30% 04-01-08 430,108
Charlotte, North Carolina
Water & Sewer General Obligation 400,000 5.60% 05-01-20 445,332
Concord, North Carolina
Utility System Revenue 500,000 5.00% 12-01-17 502,615
Cumberland County, North Carolina
General Obligation 400,000 4.90% 03-01-12 414,272
Currituck County, North Carolina
General Obligation 300,000 5.40% 04-01-14 316,443
Duke University Hospital
Community Hospital Revenue 500,000 5.25% 06-01-17 505,675
Durham, North Carolina
General Obligation Revenue 200,000 5.80% 02-01-12 220,432
Fayetteville, North Carolina
Public Works Revenue 500,000 5.10% 03-01-15 511,490
Forsyth County, North Carolina
General Obligation 300,000 4.75% 02-01-13 304,581
Gaston County, North Carolina
General Obligation 500,000 5.00% 03-01-17 505,935
Gastonia, North Carolina
Police Station Project Certificate of Participation 100,000 5.70% 08-01-15 107,107
Gastonia, North Carolina
Street Improvements General Obligation 200,000 5.50% 05-01-13 215,898
Gastonia, North Carolina
Street Improvements General Obligation 400,000 5.50% 05-01-16 425,280
</TABLE>
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
--------- ------- -------- ------------
MUNICIPAL OBLIGATIONS - 97.8% (Continued)
<S> <C> <C> <C> <C>
Greensboro, North Carolina
General Obligation Unlimited $ 500,000 5.00% 03-01-12 $ 520,960
Johnston County, North Carolina
General Obligation 500,000 5.00% 05-01-18 502,420
Lincolnton, North Carolina
Enterprise System Revenue 200,000 5.38% 05-01-16 209,122
Mecklenburg County, North Carolina
Public Improvement General Obligation 200,000 5.50% 04-01-11 215,910
Morganton, North Carolina
Water & Sewer General Obligation Revenue 100,000 5.70% 06-01-14 107,708
Morganton, North Carolina
Water & Sewer General Obligation Revenue 500,000 5.70% 06-01-13 540,765
North Carolina Central University
Housing System Revenue 200,000 5.80% 11-01-17 216,508
North Carolina Housing Finance Agency
Multifamily Series A Revenue 100,000 5.80% 07-01-13 105,467
North Carolina Housing Finance Agency
Home Ownership Series 2-B Revenue 500,000 5.10% 07-01-17 499,375
North Carolina Municipal Power Agency -
Number 1 - Catawba Electric Revenue 100,000 6.00% 01-01-09 113,267
North Carolina Municipal Power Agency -
Number 1 - Catawba Electric Revenue 100,000 5.75% 01-01-15 105,666
North Carolina State
Clean Water Series A General Obligation 100,000 5.80% 06-01-16 109,135
North Carolina State
General Obligation 500,000 5.10% 06-01-10 534,240
North Carolina State
Series A General Obligation 300,000 5.10% 03-01-07 321,372
North Carolina State University
Centennial Campus B Revenue 500,000 5.13% 12-15-16 509,790
Pitt County, North Carolina
Memorial Hospital Revenue 100,000 5.50% 12-01-15 106,644
Pitt County, North Carolina
Memorial Hospital Revenue 500,000 5.25% 12-01-12 522,295
Raleigh, North Carolina
General Obligation 500,000 5.25% 06-01-13 529,580
Union County, North Carolina
Series B General Obligation 100,000 5.30% 05-01-15 104,884
University of North Carolina
General Obligation Revenue 500,000 5.40% 05-15-09 524,135
</TABLE>
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL INTEREST MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
--------- ------- -------- ------------
MUNICIPAL OBLIGATIONS - 97.8% (Continued)
<S> <C> <C> <C> <C>
Wake Forest University
Finance Agency Revenue $ 300,000 5.00% 11-01-17 $ 301,458
Winston-Salem, North Carolina
General Obligation 100,000 5.50% 06-01-12 107,538
Winston-Salem, North Carolina
Water & Sewer System Revenue 500,000 4.80% 06-01-10 515,970
------------
TOTAL MUNICIPAL OBLIGATIONS (AMORTIZED COST $13,107,126) $ 13,661,646
CASH EQUIVALENTS - 1.1%
Federated North Carolina Municipal Money Market Portfolio $ 157,634 $ 157,634
------------
(AMORTIZED COST $157,634)
TOTAL VALUE OF INVESTMENT SECURITIES (AMORTIZED COST $13,264,760 (A)) - 98.9% $ 13,819,280
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.1% 154,542
------------
NET ASSETS - 100.0% $ 13,973,822
============
</TABLE>
(a) As of February 28, 1999, the cost of investment securities for federal
income tax purposes was the same as that shown for financial statement
purposes. Net unrealized appreciation of $554,520 was comprised of gross
unrealized appreciation and depreciation of $564,962 and $10,442,
respectively.
See accompanying notes to financial statements.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
NOTES TO FINANCIAL STATEMENTS
February 28, 1999
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The North Carolina Tax Free Bond Fund (the Fund) is a non-diversified, open-end
series of the Albemarle Investment Trust (the Trust), a management investment
company registered under the Investment Company Act of 1940 (the 1940 Act). The
Trust was organized in 1992 as a Massachusetts business trust. The Fund began
operations on January 13, 1993.
The investment objective of the Fund is to provide current income exempt from
federal income taxes and from the personal income taxes of North Carolina, to
preserve capital, and to protect the value of the portfolio against the effects
of inflation. The Fund invests in debt instruments of municipal issuers within
the state of North Carolina. The issuers' abilities to meet their obligations
may be affected by economic developments in the state of North Carolina.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued as of the
close of business of the regular session of trading of the New York Stock
Exchange (currently 4:00 p.m., Eastern Time). Municipal obligations are valued
by an independent pricing service which generally utilizes a computerized matrix
system with consideration given to security quality, maturity, coupon, call
features and the latest trading developments. On limited occasions, if the
valuation provided by the pricing service ignores certain market conditions
affecting the value of a security or the pricing service cannot provide a
valuation, the security is valued at fair value as determined in good faith in
accordance with consistently applied procedures established by and under the
general supervision of the Board of Trustees.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price per share and the redemption
price per share are equal to the net asset value per share.
Investment income -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations.
Distributions to shareholders -- Dividends arising from net investment income
are declared daily and paid on the last business day of each month. Net realized
short-term capital gains, if any, may be distributed throughout the year and net
realized long-term capital gains, if any, are distributed at least once each
year. Income distributions and capital gain distributions are determined in
accordance with income tax regulations.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis. The Fund may
purchase securities on a when issued or delayed delivery basis. These
transactions involve a commitment by the Fund to purchase securities for a
predetermined price or yield with payment and delivery taking place more than
three days in the future, or after a period longer than the customary settlement
period for that type of security. No interest will be earned by the Fund on such
purchases until the securities are delivered; however, the market value may
change prior to delivery.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
NOTES TO FINANCIAL STATEMENTS
February 28, 1999
(Unaudited)
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 at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In addition, the Fund intends to satisfy conditions which enable it to designate
the interest income generated by its investment in municipal securities, which
is exempt from federal income tax when received by the Fund, as exempt-interest
dividends upon distribution to shareholders. For the six months ended February
28, 1999, the Fund has designated its distributions paid to shareholders from
net investment income of $261,168 or $0.22 per share as exempt-interest
dividends for federal income tax purposes.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
2. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales and maturities of investment
securities, other than short-term investments, amounted to $1,932,072 and
$527,773, respectively, for the six months ended February 28, 1999.
3. TRANSACTIONS WITH AFFILIATES
Certain officers of the Trust are also officers of Boys, Arnold & Company, Inc.
(the Advisor), or of Countrywide Fund Services, Inc. (CFS), the administrative
services agent, shareholder servicing and transfer agent and accounting services
agent for the Fund.
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by the Advisor under the terms of an
Investment Advisory Agreement. Under the Investment Advisory Agreement, the Fund
pays the Advisor an investment advisory fee, which is computed and accrued daily
and paid monthly, at an annual rate of 0.35% of the Fund's average daily net
assets. The Advisor currently intends to voluntarily waive its investment
advisory fees and/or reimburse expenses of the Fund to the extent necessary to
limit the total operating expenses of the Fund to 0.85% of its average daily net
assets. For the six months ended February 28, 1999, the Advisor waived $21,381
of its investment advisory fees.
<PAGE>
THE NORTH CAROLINA TAX FREE BOND FUND
NOTES TO FINANCIAL STATEMENTS
February 28, 1999
(Unaudited)
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement with the Trust, CFS supplies
non-investment related administrative and compliance services for the Fund. CFS
supervises the preparation of tax returns, reports to shareholders, reports to
and filings with the Securities and Exchange Commission and state securities
commissions, and materials for meetings of the Board of Trustees. For these
services, CFS receives a monthly fee at an annual rate of 0.15% on the Fund's
average daily net assets up to $50 million; 0.125% on the next $50 million of
such net assets; and 0.10% on such net assets in excess of $100 million, subject
to a $1,000 minimum monthly fee.
TRANSFER AGENT AGREEMENT
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement with the Trust, CFS maintains the records of each shareholder's
account, answers shareholders' inquiries concerning their accounts, processes
purchases and redemptions of the Fund's shares, acts as dividend and
distribution disbursing agent and performs other shareholder service functions.
For these services, CFS receives a monthly fee based on the number of
shareholder accounts in the Fund, subject to a $1,000 minimum monthly fee. In
addition, the Fund pays out-of-pocket expenses including, but not limited to,
postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement with the Trust, CFS
calculates the daily net asset value per share and maintains the financial books
and records of the Fund. For these services, CFS receives a monthly fee, based
on current asset levels, of $2,000 per month from the Fund. In addition, the
Fund pays certain out-of-pocket expenses incurred by CFS in obtaining valuations
of the Fund's portfolio securities.
SHAREHOLDER SERVICING FEES
The Trust has adopted a Shareholder Servicing Plan (the Plan) pursuant to which
the Fund may incur certain expenses for the compensation of persons providing
ongoing services and/or maintenance of the Fund's shareholder accounts, not
otherwise required to be provided by CFS. The basis for amounts paid under the
Plan must be approved by the Board of Trustees and may not exceed 0.25% of the
Fund's average daily net assets. For the six months ended February 28, 1999, the
Fund incurred no shareholder servicing expenses under the Plan.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000812073
<NAME> ALBEMARLE INVESTMENT TRUST - NC TAX-FREE BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 13,264,760
<INVESTMENTS-AT-VALUE> 13,819,280
<RECEIVABLES> 214,224
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5,050
<TOTAL-ASSETS> 14,038,554
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 64,732
<TOTAL-LIABILITIES> 64,732
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,410,762
<SHARES-COMMON-STOCK> 1,269,051
<SHARES-COMMON-PRIOR> 1,119,328
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,540
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 554,520
<NET-ASSETS> 13,973,822
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 316,506
<OTHER-INCOME> 0
<EXPENSES-NET> 55,338
<NET-INVESTMENT-INCOME> 261,168
<REALIZED-GAINS-CURRENT> 8,537
<APPREC-INCREASE-CURRENT> (16,464)
<NET-CHANGE-FROM-OPS> 253,241
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 261,168
<DISTRIBUTIONS-OF-GAINS> 115,531
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 203,085
<NUMBER-OF-SHARES-REDEEMED> 84,687
<SHARES-REINVESTED> 31,325
<NET-CHANGE-IN-ASSETS> 1,537,514
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 115,534
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22,786
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 76,719
<AVERAGE-NET-ASSETS> 13,137,034
<PER-SHARE-NAV-BEGIN> 11.11
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> .00
<PER-SHARE-DIVIDEND> .22
<PER-SHARE-DISTRIBUTIONS> .10
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.01
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
