<PAGE> 1
CONTENTS
2 STATEMENT OF INVESTMENTS
GROWTH FUND
- --------------------------------------------------------------------------------
4 STATEMENT OF INVESTMENTS
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
6 STATEMENT OF INVESTMENTS
GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
7 STATEMENT OF INVESTMENTS
CASH RESERVE FUND
- --------------------------------------------------------------------------------
8 STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
10 STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
11 STATEMENTS OF CHANGES IN NET ASSETS
GROWTH FUND
MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
12 STATEMENTS OF CHANGES IN NET ASSETS
GOVERNMENT BOND FUND
CASH RESERVE FUND
- --------------------------------------------------------------------------------
13 FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
15 NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS TOLL-FREE TELEPHONE ASSISTANCE
D. RICHARD MCFERSON JAMES F. LAIRD, JR. 1-800-848-0920
Chairman Treasurer
Columbus, Ohio RAE I. MERCER TRANSFER AGENT
JOHN C. BRYANT Secretary NATIONWIDE INVESTORS SERVICES, INC.
Wilmington, Ohio CRAIG A. CARVER BOX 1492
ROBERT M. DUNCAN Assistant Treasurer ONE NATIONWIDE PLAZA
Columbus, Ohio WILLIAM G. GOSLEE COLUMBUS, OHIO 43216
THOMAS J. KERR, IV Assistant Treasurer
Evanston, Illinois PETER NECKERMANN CUSTODIAN
Assistant Treasurer THE FIFTH THIRD BANK
HARRY A. SCHERMER 38 FOUNTAIN SQUARE PLAZA
Assistant Treasurer CINCINNATI, OHIO 45263
LEGAL COUNSEL
DRUEN, RATH & DIETRICH
ONE NATIONWIDE PLAZA
COLUMBUS, OHIO 43216
AUDITORS
KPMG PEAT MARWICK LLP
TWO NATIONWIDE PLAZA
COLUMBUS, OHIO 43215
NATIONAL DISTRIBUTOR AND
INVESTMENT ADVISOR
NATIONWIDE FINANCIAL SERVICES, INC.
ONE NATIONWIDE PLAZA
COLUMBUS, OHIO 43216
This report is for the information of shareholders of the Financial Horizons
Investment Trust's Mutual Funds. It may be used as sales literature only when
preceded or accompanied by a current prospectus which gives further details
about the Funds.
Financial Horizons and its logo are service marks of Nationwide(R) Life
Insurance Company.
1
<PAGE> 2
GROWTH FUND
For the six month period ended April 30, 1996, the Financial Horizons Growth
Fund had a return of 14.26%, compared with 13.21% for the S&P 500 over the same
period. For the twelve month period ended April 30, 1996, the Fund returned
28.07% compared to 30.30% for the S&P 500.
Performance over the past six months has been favorably influenced by
substantial appreciation in many of the small-cap holdings. For instance, TRO
Learning, a computer based training company, appreciated over 100%. Other
small-cap holdings with large gains were in a variety of industries including
financial services, medical products and computer services and software.
Overall, companies either in or serving the healthcare services field as well as
members of the computer services and software industry and the financial
industry had the best performance.
The Fund's strategy is to invest in companies with clearly defined and visible
business opportunities, at valuation levels that allow for future improvement.
We will continue to take advantage of its ability to invest in smaller-cap
stocks while also holding positions in larger companies with superior growth
prospects.
The small asset base of the Fund allows it to invest in a meaningful way in
small-cap stocks without sacrificing liquidity. Dividend income as a percentage
of assets is lower than that of the S&P 500 since smaller-cap stocks contribute
mainly through capital appreciation.
Laura Klebe, Portfolio Manager
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS (89.6%) Shares Value
- --------------------- ------ -----
<S> <C> <C>
AIRLINES (1.0%)
Skywest, Inc. 6,000 $ 89,250
----------
BUSINESS SERVICE (7.1%)
American Business Information* 9,000 175,500
Healthcare Services Group, Inc.* 6,000 59,250
Olsten Corp. (The) 6,600 200,475
TRO Learning, Inc.* 10,000 170,000
----------
605,225
----------
CHEMICALS (1.9%)
Loctite Corp. 1,000 50,500
Sigma-Aldrich Corporation 2,000 108,000
----------
158,500
----------
COMPUTER EQUIPMENT (1.0%)
American Power Conversion Corp.* 7,000 87,500
----------
COMPUTER SERVICES AND SOFTWARE (3.9%)
CFI Proservices, Inc.* 5,000 132,500
SPSS, Inc.* 10,000 197,500
----------
330,000
----------
CONSUMER PRODUCTS (3.2%)
National Picture & Frame Co.* 16,000 156,000
Newell Co. 4,000 114,000
----------
270,000
----------
CONTRACT MANUFACTURING (2.2%)
DII Group, Inc.* 5,500 191,125
----------
DENTAL (1.0%)
Dentsply International, Inc. 2,000 83,500
----------
DISTRIBUTION (1.5%)
Bergen Brunswig Corp., Class A 4,725 128,756
----------
DRUGS (4.3%)
Allergan, Inc. 4,000 141,500
Schering-Plough Corporation 4,000 229,500
----------
371,000
----------
ELECTRONICS (6.6%)
Intel Corp. 4,000 271,000
Motorola, Inc. 2,000 122,500
Woodhead Industries, Inc. 11,100 172,050
----------
565,550
----------
ENGINEERING & CONSTRUCTION (1.5%)
Fluor Corporation 2,000 132,250
----------
FINANCIAL SERVICES (13.3%)
Bear Stearns Companies, Inc. 3,472 87,234
Capital One Financial Corp. 2,500 73,750
First USA, Inc. 1,600 90,000
Gainsco, Inc. 18,231 211,935
Merrill Lynch & Co., Inc. 5,000 301,875
Morgan Stanley Group, Inc. 2,000 100,500
Silicon Valley Bancshares* 8,400 195,300
Standard Financial, Inc.* 5,000 74,375
----------
1,134,969
----------
FOOD & BEVERAGES (0.9%)
Grand Metropolitan Plc ADR 1,500 39,938
Grand Metropolitan Plc 5,800 38,034
----------
77,972
----------
FOOD-GRAIN & AGRICULTURE (3.0%)
Archer Daniels Midland Co. 13,387 252,680
----------
HEALTHCARE SERVICES (5.0%)
Apria Healthcare Group* 3,200 108,800
Columbia/HCA Healthcare Corp. 4,000 212,500
United American Healthcare Corp.* 7,500 105,937
----------
427,237
----------
MACHINERY & CAPITAL GOODS (4.2%)
Duriron Company, Inc. 3,000 78,750
Emerson Electric Company 1,000 83,625
Kaman Corporation 4,100 46,125
Zebra Technologies Corporation* 6,000 150,000
----------
358,500
----------
MEDICAL PRODUCTS (1.8%)
Biomet, Inc.* 5,000 73,750
Instent, Inc.* 4,000 80,000
----------
153,750
----------
OIL & GAS (2.7%)
Amoco Corporation 1,300 94,900
Royal Dutch Petroleum Company 500 71,625
Texaco, Inc. 800 68,400
----------
234,925
----------
POLLUTION CONTROL (1.0%)
WMX Technologies, Inc. 2,500 86,875
----------
PRINTING & PUBLISHING (5.5%)
International Imaging Materials, Inc.* 6,400 121,600
Merrill Corporation 6,000 132,000
New England Business Service, Inc. 6,000 112,500
Reader's Digest Assoc. Inc., Class B 2,800 103,950
----------
470,050
----------
RESTAURANTS (2.9%)
Bob Evans Farms, Inc. 5,000 78,750
Wendy's International, Inc. 8,800 168,300
----------
247,050
----------
RETAIL (5.9%)
CUC International, Inc.* 6,666 $ 219,145
Franklin Quest Co.* 3,000 81,000
Smart & Final, Inc. 5,000 113,750
Tractor Supply Co.* 4,000 92,000
----------
505,895
----------
TELECOMMUNICATIONS (7.3%)
360 Communications Co.* 1,333 31,326
AT & T Corporation 2,200 134,750
MCI Communications Corporation 9,800 288,487
Sprint Corporation 4,000 168,500
----------
623,063
----------
TIRE & RUBBER (0.9%)
Cooper Tire & Rubber Company 3,000 73,500
----------
Total common stocks 7,659,122
----------
(cost $5,226,866)
U.S. GOVERNMENT OBLIGATIONS (8.1%)
U.S. Treasury Bills Principal
4.73% through 4.83%, due 07/11/96
through 01/09/97
(cost $691,106) $705,000 691,106
----------
REPURCHASE AGREEMENT (1.1%)
Merrill Lynch & Co., Inc.,
5.09% due 05/06/96, Collateralized
by 62,779 FHLMC #309543, 10.50%
due 12/01/18 and 105,870 GNMA
#343901, 8.00% due 05/15/23,
value $92,875
(cost $91,000) 91,000 91,000
----------
Total investments
(cost $6,008,972) $8,441,228
----------
</TABLE>
*Denotes a non-income producing security.
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percent of net assets.
See accompanying notes to financial statements.
3
<PAGE> 3
4
MUNICIPAL BOND FUND
The Financial Horizons Municipal Bond Fund's total return was (.09%) for the
six-month period ended April 30, 1996, as compared to 1.11% for its benchmark
index, Lehman Brothers Municipal Bond Index (Index). For the twelve-month period
ended April 30, 1996, the Fund's total return was 4.82% compared to 7.95% for
the Index.
Municipals experienced both sides of an active market over the previous six
months--a continuing rally that saw yields on the Bond Buyer 11 Index (a
municipal general market barometer) fall to 5.23% by mid-February, only to see
the rally reverse course as an ailing economy began to show signs of awakening.
As the economic data began to have more positive tones (highlighted by February
revised non-farm payrolls rising an incredible 631,000), bonds retreated quickly
as inflation fears reignited. Yields rose to levels almost identical to where
they were a year earlier, erasing much of the gains on one of the biggest
rallies in the history of the municipal market. The Bond Buyer 11 ended the
six-month period at 5.82%, after its yield peaked at 5.94% in early April
(rising yields equate to declining bond prices). Despite the weakening market
conditions, long-term municipals outperformed Treasury Bonds over the period, as
relative price spreads narrowed.
The Fund has shifted course into a more aggressive posture over the recent
period. This repositioning was caused by two factors: price declines in existing
holdings and swapping some higher coupon, premium bonds for lower coupon,
discount bonds for performance purposes. In addition, the declining market has
caused more bonds to price to maturity, lengthening the portfolio's duration
about two years. These changes will allow the Fund to fully capitalize on any
decline in rates, which many economists still expect for the latter half of
1996.
From November 1995 through February 1996, the Fund performed similar to the
general market. Only in the last two months has its performance lagged. This was
due to downward pressure on our performance-based bonds as the market
overreacted to the positive economic news. Many market participants are
confident that inflation is under control and that the bond market could rebound
in the coming months, as it becomes clear that the Federal Reserve will not move
into a restrictive monetary policy. In addition, municipals could continue to
outperform treasuries as the prospects for major tax reform, and its potential
effects on the tax-advantaged status enjoyed by municipal securities, are
moderated.
J. Randall Baney, MBA, Portfolio Manager
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
LONG-TERM MUNICIPAL SECURITIES - (97.9%)
Principal Value
--------- -----
<S> <C> <C>
ALABAMA (4.6%)
Birmingham, Alabama General
Obligation Refunding Bonds,
Series 1992-B,
6.25%, 2016 $1,000,000 $ 1,027,500
-----------
FLORIDA (4.2%)
Orlando, Florida Utilities Commission Water and
Electric Subordinated Revenue
Refunding Bonds, Series 1993-A,
5.25%, 2014 1,000,000 933,750
-----------
ILLINOIS (4.1%)
Illinois Regional Transportation Authority
General Obligation Refunding Bonds,
Series 1996, 5.40%, 2015 1,000,000 921,250
-----------
MASSACHUSETTS (8.9%)
Massachusetts State Housing Finance
Agency Residential Development
Revenue FNMA, Series 8-D,
6.80%, 2012 1,000,000 1,060,000
Massachusetts State General Obligation
Bonds Consolidated Loan of 1992,
Series-B, 6.50%, 2013 1,000,000 945,000
-----------
2,005,000
-----------
NEVADA (4.2%)
Nevada State General Obligation, Nevada
Municipal Bond Bank Project,
Numbers 49 & 50, 5.50%, 2016 1,000,000 941,250
-----------
NEW JERSEY (5.7%)
New Jersey Turnpike Authority Turnpike
Revenue Bonds, Series 1991-C,
6.50%, 2016 1,225,000 1,277,063
-----------
NEW YORK (4.5%)
New York Local Government Assistance
Corporation, Series 1993-E,
Refunding Bonds,
6.00%, 2014 1,000,000 1,022,500
-----------
NORTH CAROLINA (14.1%)
Charlotte-Mecklenburg Hospital Authority,
North Carolina Health Care System Revenue
Bonds, Series 1992,
6.25%, 2020 1,000,000 1,011,250
North Carolina Eastern Municipal Power
Agency Power System Revenue Refunding
Bonds, Series 1993-B,
6.25%, 2012 1,250,000 1,232,812
North Carolina Medical Care Commission
Hospital Revenue Refunding, Presbyterian
Health Services Project,
5.50%, 2020 1,000,000 931,250
-----------
3,175,312
-----------
PENNSYLVANIA (4.2%)
Pennsylvania State Turnpike Commission,
Turnpike Revenue Bonds, Series 1992-0,
5.50%, 2017 1,000,000 943,750
-----------
SOUTH CAROLINA (4.5%)
South Carolina State Housing Finance &
Development Authority Homeownership
Mortgage Purchase Bonds,
1994 Series-A, 6.375%, 2016 1,000,000 1,002,500
-----------
TENNESSEE (4.7%)
Nashville & Davidson County, Tennessee
General Obligation Multi-Purpose
Improvement Bonds,
Series 1994,
6.125%, 2014 $1,030,000 $ 1,051,888
-----------
TEXAS (12.6%)
Carrollton-Farmers Branch Independent
School District, Texas General Obliga-
tion School Building Unlimited Tax
Bonds, Series 1995, 5.00%, 2016 1,000,000 890,000
Grand Prairie Independent School District,
Texas General Obligation Unlimited Tax
School Building and Refunding
Bonds, Series 1996, 5.20%, 2017 1,000,000 913,750
Harris County, Texas Tax and Revenue
Certificates of Obligation, Series 1994,
6.10%, 2013 1,000,000 1,033,750
-----------
2,837,500
-----------
UTAH (4.4%)
Utah Housing Finance Agency, Multi-
Family Housing Revenue Refunding Bonds,
(Cottonwood Apartments Project),
Issue 1995, 6.30%, 2015 1,000,000 998,750
-----------
VIRGINIA (13.2%)
Richmond, Virginia General Obligation
Public Improvement Refunding Bonds,
Series 1991-B,
6.25%, 2018 1,000,000 1,016,250
Virginia Housing Development Authority
Commonwealth Mortgage Bonds, Series
1992-C, Subseries C-7,
6.30%, 2015 900,000 907,875
Virginia Housing Development Authority
Multi-Family Housing Bonds,
Series 1991-F, 7.10%, 2013 140,000 147,350
Virginia Public School Authority General
Obligation School Financing Bonds
(1991 Resolution),
Series 1995-C,
5.00%, 2016 1,000,000 902,500
-----------
2,973,975
-----------
WASHINGTON (4.0%)
Seattle, Washington Limited Tax General
Obligation Bonds, 1995,
5.125%, 2015 1,000,000 908,750
-----------
Total long-term municipal securities
(cost $22,424,866) $22,020,738
-----------
</TABLE>
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
5
<PAGE> 4
6
GOVERNMENT BOND FUND
Total return for the Financial Horizons Government Bond Fund for the past six
months ending April 30, 1996, was (.70%) compared to a total return of (.21%)
for its benchmark index--Merrill Lynch Government Master Index (Index). For
twelve months ended April 30, 1996, the Fund's total return was 8.34% compared
to 8.42% for the Index.
During the past six months long-term and intermediate-term interest rates have
increased by approximately 60 basis points. The yield curve steepened as
short-term rates were unchanged to lower. The price of the Government Bond Fund
moved lower reflecting the move in the broad bond market.
Inflation and expectations for future inflation always drive the bond market in
the long run, with the value of fixed coupons being eroded by higher levels of
inflation. Currently, higher interest rates are generally being blamed on fears
of a stronger economy and thus higher inflation rates in the future. Actual
reported numbers however have continued to show stable or even declining
inflation rates in recent months.
Lower bond prices with the recent move to higher interest rates and a stable
inflation environment creates additional value in the fixed-income markets. We
have used this opportunity to increase market exposure slightly, allowing
shareholders to benefit from future decreases in interest rates. The Government
Bond Fund continues to be invested in sectors of the government agency and
mortgage-backed markets perceived to be undervalued. Approximately one-third of
portfolio assets are invested in the collateralized mortgage obligation (CMO)
market. The yield on these conservatively-structured investments continues to
make them attractive portfolio holdings.
Wayne T. Frisbee, CFA, Portfolio Manager
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
MORTGAGE BACKED SECURITIES (36.6%)
Principal Value
--------- -----
<S> <C> <C>
FHLMC (REMIC) Series 1313-G, 7.25%, 2007 $ 2,000,000 1,984,538
FHLMC (REMIC) Series 1344-D, 6.00%, 2007 3,000,000 2,696,457
FHLMC (REMIC) Series 31-E, 7.55%, 2020 1,289,219 1,260,120
FHLMC (REMIC) Series 190-D, 9.20%, 2021 800,082 830,412
FHLMC (REMIC) Series 1143-Z, 7.50%, 2021 2,736,938 2,568,888
FNMA (REMIC) Series 1989-86, 8.75%, 2019 488,738 506,039
FNMA (REMIC) Series 1990-16D, 9.00%, 2020 4,000,000 4,155,756
FNMA (REMIC) Series 1990-7B, 8.50%, 2020 1,974,804 2,036,021
FNMA (REMIC) Series 1991-68E, 8.35%, 2003 988,090 998,543
FNMA (REMIC) Series 1991-73A, 8.00%, 2021 1,037,799 1,056,956
FNMA (REMIC) Series 1992-126VB, 8.00%, 2002 4,000,000 4,125,156
FNMA (REMIC) Series 1993-203PJ, 6.50%, 2023 1,000,000 953,579
------------
Total mortgage backed securities
(cost $22,883,276) 23,172,465
------------
U.S. GOVERNMENT AND AGENCY LONG-TERM
OBLIGATIONS (61.6%)
Federal Home Loan Bank, 6.36%, 2001 7,000,000 6,924,568
Federal Home Loan Mortgage Corp., 7.45%, 2004 3,000,000 2,990,160
Federal Home Loan Mortgage Corp., 7.98%, 2004 5,890,000 5,956,421
Federal National Mortgage Association, 8.25%, 2004 4,030,000 4,129,126
Federal National Mortgage Association, 8.55%, 2004 4,000,000 4,075,716
Federal National Mortgage Association Medium Term
7.05%, 2000 1,520,000 1,506,410
Resolution Funding STRIPS, 0.0%, 2006 $15,000,000 7,551,585
Resolution Funding STRIPS, 0.0%, 2008 3,000,000 1,296,207
Resolution Funding STRIPS, 0.0%, 2013 10,000,000 2,856,390
Resolution Funding STRIPS, 0.0%, 2020 10,000,000 1,690,490
------------
Total U.S. government and
agency long-term obligations
(cost $39,028,275) 38,977,073
------------
REPURCHASE AGREEMENT (1.9%)
Prudential Securities
5.25% due 05/01/95, Collateralized by
$1,220,000 U.S. Treasury Bond, 6.00%
due 08/31/97
market value - $1,233,738
(cost $1,208,000) 1,208,000
------------
Total investments
(cost $63,119,551) $63,357,538
------------
</TABLE>
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
<PAGE> 5
CASH RESERVE FUND
On April 30, 1996, the 30-day current yield was 4.70% for the Financial Horizons
Cash Reserve Fund. For the twelve month period, the total return of the Fund was
5.29% compared to 5.25% for the IBC (Donohues) Money Fund Average of Taxable
First Tier Funds (Average) and 2.90% for the Consumer Price Index (CPI). For the
six months ended April 30, 1996, the total return of the Fund was 2.48% compared
to 2.48% for the Average and 1.69% for the CPI. Short-term interest rates rose
during the first half of 1995. The Federal Reserve increased rates due to both
an expanding economy and concern about inflation. By early July, both expansion
and inflation concerns had diminished. As a result, the Federal Reserve lowered
the Fed Funds rate in July 1995 to 5.75% and again lowered rates in December
1995 and January 1996 to 5.50% and 5.25%, respectively. Additional easing may
occur if indicators point to a slowing economy with low inflation. The Fund
continues to invest in only the highest rated money market securities. An
internal credit review is completed on every company the Fund invests in.
Karen G. Mader, MA , Portfolio Manager
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
April 30, 1996 (Unaudited)
CANADIAN GOVERNMENT OBLIGATIONS (6.0%)
Principal Value
--------- -----
<S> <C> <C>
British Columbia (Province of)
5.05%, due 07/10/96 $150,000 148,527
Canadian Wheat Board
5.28%, due 06/19/96 100,000 99,281
----------
Total Canadian government obligations
(cost $247,808) 247,808
----------
COMMERCIAL PAPER (90.2%)
AUTO/FINANCE (3.8%)
Ford Motor Credit Co.
5.28%, due 07/26/96 160,000 157,982
----------
BANKS (3.7%)
CoreStates Capital Corp.
5.29%, due 05/30/96 152,000 151,352
----------
BROKER/DEALERS (18.2%)
Bear Stearns Companies, Inc.
5.10%, due 05/24/96 152,000 151,505
Dean Witter Discover & Co.
5.32%, due 05/21/96 120,000 119,645
Merrill Lynch & Co., Inc.
5.27%, due 07/02/96 160,000 158,548
Morgan Stanley Group
5.16%, due 05/13/96 160,000 159,725
Smith Barney, Inc.
5.32%, due 05/10/96 160,000 159,787
----------
749,210
----------
CAPTIVE BORROWING CONDUIT (2.9%)
Prudential Funding, Inc.
5.28%, due 05/31/96 118,000 117,481
----------
CHEMICALS (11.7%)
Great Lakes Chemical Co.
5.32%, due 05/02/96 160,000 159,976
Monsanto Co.
5.23%, due 05/16/96 165,000 164,640
PPG Industries, Inc.
5.32%, due 05/29/96 160,000 159,338
----------
483,954
----------
CONSUMER SALES FINANCE (10.0%)
American Express Credit Corp.
5.27%, due 07/18/96 136,000 134,447
Avco Financial Services, Inc.
5.28%, due 06/07/96 150,000 149,186
Norwest Financial, Inc.
5.26%, due 07/26/96 130,000 128,367
----------
412,000
----------
DIVERSIFIED FINANCE (7.8%)
GE Capital Corp.
5.07%, due 05/20/96 $162,000 161,566
Transamerica Finance Group, Inc.
5.33%, due 05/10/96 160,000 159,787
----------
321,353
----------
ENTERTAINMENT (2.9%)
Walt Disney Company
5.28%, due 06/18/96 122,000 121,141
----------
FINANCIAL SERVICE/UTILITY (3.6%)
National Rural Utilities Cooperative
5.28%, due 05/24/96 150,000 149,494
----------
HEAVY EQUIPMENT/FINANCE (3.4%)
Caterpillar Financial Services Corp.
5.37%, due 05/08/96 142,000 141,852
----------
INSURANCE (3.6%)
MetLife Funding, Inc.
5.30%, due 06/07/96 150,000 149,183
----------
LEASE FINANCING (3.6%)
PHH Corp.
5.30%, due 05/17/96 148,000 147,651
----------
MISCELLANEOUS MANUFACTURING (3.8%)
Illinois Tool Works, Inc.
5.31%, due 06/27/96 160,000 158,655
----------
OFFICE EQUIPMENT & SUPPLY (3.7%)
Pitney Bowes Credit Corp.
5.26%, due 05/24/96 152,000 151,489
----------
PACKAGING & CONTAINER (3.9%)
Bemis Co., Inc.
5.33%, due 05/08/96 160,000 159,834
----------
PRINTING & PUBLISHING (3.6%)
McGraw-Hill, Inc.
5.22%, due 07/16/96 150,000 148,347
----------
Total commercial paper
(cost $3,720,978) 3,720,978
----------
U.S. GOVERNMENT & AGENCY OBLIGATIONS (4.1%)
U.S. Treasury Bills
4.88%, due 08/22/96 60,000 59,081
Federal National Mortgage Association
5.19%, due 06/26/96 110,000 109,112
----------
Total U.S. government and agency
obligations (cost $168,193) 168,193
----------
Total investments
(cost $4,136,979) $4,136,979
----------
</TABLE>
Cost also represents cost for federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
7
<PAGE> 6
8
FINANCIAL HORIZONS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
MUNICIPAL GOVERNMENT CASH
GROWTH BOND BOND RESERVE
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $6,008,972, $22,424,866,
$63,119,551, and, $4,136,979
respectively) $8,441,228 22,020,738 63,357,538 4,136,979
Cash 36,587 319,674 - 7,135
Accrued interest and dividends
receivable 2,988 393,340 448,160 -
Receivable for Fund shares sold 966 200 - 18,063
Receivable for investment securities sold 125,000 - 1,233,702 -
--------------------------------------------------------
Total Assets 8,606,769 22,733,952 65,039,400 4,162,177
--------------------------------------------------------
LIABILITIES
Payable for investment securities purchased 38,000 - 1,208,000 -
Net payable for Fund shares redeemed 12,158 162,221 316,730 36,064
Accrued management fees 4,389 12,238 34,127 1,355
Accrued transfer agent fees 956 1,410 - 59
Payable for dividends accrued - 34,860 159,206 1,300
Other accrued expenses 6,064 34,121 25,216 (160)
--------------------------------------------------------
Total Liabilities 61,567 244,850 1,743,279 38,618
--------------------------------------------------------
NET ASSETS $8,545,202 22,489,102 63,296,121 4,123,559
--------------------------------------------------------
</TABLE>
<PAGE> 7
FINANCIAL HORIZONS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES (continued)
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
MUNICIPAL GOVERNMENT CASH
GROWTH BOND BOND RESERVE
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net assets represented by:
Capital Shares, $1 par value
outstanding $ 458,723 2,140,366 5,936,695 4,123,686
Capital paid in excess of par value 5,331,182 21,664,286 58,812,597 -
Net unrealized appreciation (depreciation) 2,432,256 (404,128) 237,987 -
Accumulated undistributed net
realized gain (loss) 331,102 (905,379) (1,691,639) (6)
Accumulated undistributed net
investment income - - 481 -
Distributions in excess of net
investment income (8,061) (6,043) - (121)
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $8,545,202 22,489,102 63,296,121 4,123,559
- ----------------------------------------------------------------------------------------------------------
Shares outstanding (unlimited
number of shares authorized) 458,723 2,140,366 5,936,695 4,123,686
- ----------------------------------------------------------------------------------------------------------
Net assets per share $ 18.63 10.51 10.66 1.00
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 8
10
FINANCIAL HORIZONS INVESTMENT TRUST
STATEMENTS OF OPERATIONS
Six months ended April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
MUNICIPAL GOVERNMENT CASH
GROWTH BOND BOND RESERVE
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 38,928 - - -
Interest 16,609 733,506 2,279,852 114,896
Other income - - 65,854 -
--------------------------------------------------------------
Total income 55,537 733,506 2,345,706 114,896
--------------------------------------------------------------
Expenses :
Distribution fees 29,670 92,714 251,651 -
Investment management fees 25,714 80,353 218,363 8,233
Transfer agent fees 5,906 7,662 22,648 484
Professional services 1,258 4,242 11,411 688
Registration fees 917 1,555 3,031 540
Shareholders' reports 1,393 2,455 8,738 186
Custodian fees 1,228 9,043 7,495 2,741
Trustees' fees and expenses 537 1,822 4,912 294
Other 217 217 859 1,897 158
--------------------------------------------------------------
Total expenses before waived expenses 66,840 200,705 530,146 13,324
--------------------------------------------------------------
Total waived expenses (9,890) (30,911) (251,651) -
--------------------------------------------------------------
Net expenses 56,950 169,794 278,495 13,324
--------------------------------------------------------------
Net investment income (loss) (1,413) 563,712 2,067,211 101,572
--------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 329,667 295,096 356,801 (3)
Net change in unrealized appreciation
(depreciation) of investments 739,081 (838,633) (2,805,318) -
--------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1,068,748 (543,537) (2,448,517) (3)
--------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 1,067,335 20,175 (381,306) 101,569
--------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 9
FINANCIAL HORIZONS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH FUND MUNICIPAL BOND FUND
Six months ended Year ended Six months ended Year ended
April 30, October 31, April 30, October 31,
1996 1995 1996 1995
(Unaudited) (Unaudited)
- ------------------------------------------------------------------------------------ ------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss) $ (1,413) (3,646) 563,712 1,267,905
Net realized gain (loss) on investments 329,667 821,167 295,096 (809,772)
Net change in unrealized appreciation
(depreciation) of investments 739,081 607,704 (838,633) 3,105,091
----------------------------- -----------------------------
Net increase in net assets
resulting from operations 1,067,335 1,425,225 20,175 3,563,224
----------------------------- -----------------------------
Dividends to shareholders from:
Net investment income - - (563,712) (1,266,974)
In excess of net investment income - (5,505) (291) -
Net realized gain on investments (819,732) (65,310) - -
----------------------------- -----------------------------
Decrease in net assets from
dividends to shareholders (819,732) (70,815) (564,003) (1,266,974)
----------------------------- -----------------------------
Capital share transactions:
Net proceeds from sale of shares 287,449 520,132 65,586 437,772
Reinvestment of dividends and distributions 806,112 69,603 334,626 827,461
Cost of shares redeemed (389,623) (1,137,884) (3,173,198) (4,168,004)
Increase (decrease) in net assets derived ----------------------------- -----------------------------
from capital share transactions 703,938 (548,149) (2,772,986) (2,902,771)
----------------------------- -----------------------------
NET INCREASE (DECREASE) IN NET ASSETS 951,541 806,261 (3,316,814) (606,521)
NET ASSETS - BEGINNING OF PERIOD 7,593,661 6,787,400 25,805,916 26,412,437
----------------------------- -----------------------------
NET ASSETS - END OF PERIOD $8,545,202 7,593,661 22,489,102 25,805,916
----------------------------- -----------------------------
Undistributed net realized gain (loss) on
investments included in net assets
at end of period $ 331,102 821,167 (905,379) (1,200,475)
----------------------------- -----------------------------
Undistributed (distributions in excess of)
net investment income included in
net assets at end of period $ (8,061) (6,648) (6,043) (5,752)
----------------------------- -----------------------------
SHARE ACTIVITY
Shares sold 16,036 32,495 6,131 42,427
Reinvestment of dividends and distributions 46,328 4,761 30,923 80,208
Shares redeemed (21,539) (68,472) (294,656) (403,632)
----------------------------- -----------------------------
Net increase (decrease) in number of shares 40,825 (31,216) (257,602) (280,997)
----------------------------- -----------------------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 10
12
FINANCIAL HORIZONS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GOVERNMENT BOND FUND CASH RESERVE FUND
Six months ended Year ended Six months ended Year ended
April 30, October 31, April 30, October 31,
1996 1995 1996 1995
(Unaudited) (Unaudited)
- ---------------------------------------------------------------------------------- ---------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 2,067,211 4,424,602 101,572 218,960
Net realized gain (loss) on investments 356,801 500,983 (3) (3)
Net change in unrealized appreciation
(depreciation) of investments (2,805,318) 5,712,175 - -
------------------------------ ---------------------------
Net increase (decrease) in net assets
resulting from operations (381,306) 10,637,760 101,569 218,957
------------------------------ ---------------------------
Dividends to shareholders from:
Net investment income (2,066,730) (4,454,858) (101,572) (218,917)
In excess of net investment income - - (121) -
Net realized gain from investments - (14,227) - (35)
------------------------------ ---------------------------
Decrease in net assets from
dividends to shareholders (2,066,730) (4,469,085) (101,693) (218,952)
------------------------------ ---------------------------
Capital share transactions:
Net proceeds from sale of shares 382,867 1,055,320 12,000 890,988
Reinvestment of dividends and distributions 1,074,657 2,526,566 93,157 213,199
Cost of shares redeemed (4,903,240) (10,778,823) (131,706) (903,863)
------------------------------ ---------------------------
Increase (decrease) in net assets derived
from capital share transactions (3,445,716) (7,196,937) (26,549) 200,324
------------------------------ ---------------------------
NET INCREASE (DECREASE) IN NET ASSETS (5,893,752) (1,028,262) (26,673) 200,329
NET ASSETS - BEGINNING OF PERIOD 69,189,873 70,218,135 4,150,232 3,949,903
------------------------------ ---------------------------
NET ASSETS - END OF PERIOD $ 63,296,121 69,189,873 4,123,559 4,150,232
------------------------------ ---------------------------
Undistributed net realized loss on
investments included in net assets
at end of period $ (1,691,639) (2,048,440) (6) (3)
------------------------------ ---------------------------
Undistributed (distributions in excess of) net
investment income included in net assets
at end of period $ 481 - (121) -
------------------------------ ---------------------------
SHARE ACTIVITY
Shares sold 34,359 100,153 12,000 890,988
Reinvestment of dividends and distributions 97,404 239,877 93,157 213,199
Shares redeemed (443,947) (1,029,256) (131,706) (903,863)
------------------------------ ---------------------------
Net increase (decrease) in number of shares (312,184) (689,226) (26,549) 200,324
------------------------------ ---------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 11
FINANCIAL HORIZONS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
Six months
ended GROWTH FUND
April 30, Years ended October 31,
1996 1995 1994 1993 1992 1991
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-
BEGINNING OF PERIOD $ 18.17 15.11 14.17 12.46 11.99 8.65
Net investment income (loss) .01 (.01) .03 .08 .22 .17
Net realized gain (loss) and
unrealized appreciation
(depreciation) 2.44 3.23 .95 1.73 .43 3.72
---------------------------------------------------------------------
Total from Investment
Operations 2.45 3.22 .98 1.81 .65 3.89
---------------------------------------------------------------------
Dividends from net
investment income - - (.04) (.10) (.18) (.30)
Distributions in excess of net
investment income - (.01) - - - -
Distributions from net
realized gain from
investment transactions (1.99) (.15) - - - (.25)
---------------------------------------------------------------------
Total Distributions (1.99) (.16) (.04) (.10) (.18) (.55)
---------------------------------------------------------------------
Net increase (decrease) in
net asset value .46 3.06 .94 1.71 .47 3.34
---------------------------------------------------------------------
NET ASSET VALUE-
END OF PERIOD $ 18.63 18.17 15.11 14.17 12.46 11.99
---------------------------------------------------------------------
Total Return 14.26% 21.57% 6.92% 14.59% 5.42% 46.67%
Net Assets, End of Period (000) $ 8,545 7,594 6,787 5,165 3,095 1,175
Ratio of expense to
average net assets* 1.44% 1.47% 1.59% 1.44% 1.27% 1.20%
Ratio of net investment income
(loss) to average net assets * (.04%) (.05%) .21% .63% 1.45% 2.01%
Ratio of expense to
average net assets ** 1.69% 1.72% 1.90% 2.03% 2.02% 1.95%
Ratio of net investment income
(loss) to average net assets ** (.29%) (.30%) (.82%) .05% .70% 1.26%
Portfolio turnover 7.66% 29.19% 14.14% 12.98% 12.14% 5.68%
Average Commission rate paid 5.8429(cent) - - - - -
</TABLE>
<TABLE>
<CAPTION>
Six months
ended MUNICIPAL BOND FUND
April 30, Years ended October 31,
1996 1995 1994 1993 1992 1991
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-
BEGINNING OF PERIOD 10.76 9.86 11.75 10.64 10.61 10.00
Net investment income (loss) .25 .50 .49 .56 .61 .65
Net realized gain (loss) and
unrealized appreciation
(depreciation) (.25) .90 (1.62) 1.22 .07 .61
---------------------------------------------------------------------
Total from Investment
Operations - 1.40 (1.13) 1.78 .68 1.26
---------------------------------------------------------------------
Dividends from net
investment income (.25) (.50) (.49) (.56) (.61) (.65)
Distributions in excess of net
investment income - - - - - -
Distributions from net
realized gain from
investment transactions - - (.27) (.11) (.04) -
---------------------------------------------------------------------
Total Distributions (.25) (.50) (.76) (.67) (.65) (.65)
---------------------------------------------------------------------
Net increase (decrease) in
net asset value (.25) .90 (1.89) 1.11 .03 .61
---------------------------------------------------------------------
NET ASSET VALUE-
END OF PERIOD 10.51 10.76 9.86 11.75 10.64 10.61
---------------------------------------------------------------------
Total Return (.09%) 14.50% (10.11%) 17.18% 6.56% 13.01%
Net Assets, End of Period (000) 22,489 25,806 26,412 25,828 14,641 5,632
Ratio of expense to
average net assets* 1.37% 1.35% 1.27% 1.01% .65% .30%
Ratio of net investment income
(loss) to average net assets * 4.56% 4.82% 4.58% 4.81% 5.65% 6.28%
Ratio of expense to
average net assets ** 1.62% 1.60% 1.57% 1.61% 1.62% 1.69%
Ratio of net investment income
(loss) to average net assets ** 4.31% 4.57% 4.28% 4.11% 4.68% 4.85%
Portfolio turnover 23.53% 60.79% 69.67% 46.95% 57.98% 45.12%
Average Commission rate paid - - - - - -
</TABLE>
See accompanying notes to financial statements.
*Ratios are annualized for periods of less than one year. Total return is not
annualized.
**Ratios calculated as if no expenses were waived.
13
<PAGE> 12
14
FINANCIAL HORIZONS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
Six months
ended GOVERNMENT BOND FUND
April 30, Years ended October 31,
1996 1995 1994 1993 1992 1991
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-
BEGINNING OF PERIOD $ 11.07 10.12 11.31 11.00 10.81 10.13
Net investment income .34 .68 .58 .63 .89 .90
Net realized gain (loss) and
unrealized appreciation
(depreciation) (.41) .95 (1.10) .50 .25 .68
--------------------------------------------------------------------
Total from Investment
Operations (.07) 1.63 (.52) 1.13 1.14 1.58
--------------------------------------------------------------------
Dividends from net
investment income (.34) (.68) (.58) (.66) (.89) (.89)
Distributions from net
realized gain from
investment transactions - - (.09) (.16) (.06) (.01)
--------------------------------------------------------------------
Total Distributions (.34) (.68) (.67) (.82) (.95) (.90)
--------------------------------------------------------------------
Net increase (decrease) in
net asset value (.41) .95 (1.19) .31 .19 .68
--------------------------------------------------------------------
NET ASSET VALUE-
END OF PERIOD $ 10.66 11.07 10.12 11.31 11.00 10.81
--------------------------------------------------------------------
Total Return (.70%) 16.68% (4.75%) 10.76% 10.93% 16.25%
Net Assets, End of Period (000) $63,296 69,190 70,218 84,602 64,249 25,873
Ratio of expense to
average net assets* .83% .89% 1.28% 1.00% .65% -
Ratio of net investment income
to average net assets* 6.16% 6.42% 5.42% 5.55% 8.18% 8.22%
Ratio of expense to
average net assets** 1.58% 1.58% 1.58% 1.61% 1.66% 1.73%
Ratio of net investment income
to average net assets** 5.41% 5.73% 5.12% 4.93% 7.17% 6.49%
Portfolio turnover 17.98% 140.55% 174.40% 143.63% 87.67% 95.32%
</TABLE>
<TABLE>
<CAPTION>
Six months CASH RESERVE FUND
ended Years ended October 31,
April 30,
1996 1995 1994 1993 1992 1991
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE-
BEGINNING OF PERIOD 1.00 1.00 1.00 1.00 1.00 1.00
Net investment income .02 .05 .03 .02 .03 .05
Net realized gain (loss) and
unrealized appreciation
(depreciation) - - - - - -
--------------------------------------------------------------------
Total from Investment
Operations .02 .05 .03 .02 .03 .05
--------------------------------------------------------------------
Dividends from net
investment income (.02) (.05) (.03) (.02) (.03) (.05)
Distributions from net
realized gain from
investment transactions - - - - - -
--------------------------------------------------------------------
Total Distributions (.02) (.05) (.03) (.02) (.03) (.05)
--------------------------------------------------------------------
Net increase (decrease) in
net asset value - - - - - -
--------------------------------------------------------------------
NET ASSET VALUE-
END OF PERIOD 1.00 1.00 1.00 1.00 1.00 1.00
--------------------------------------------------------------------
Total Return 2.48% 5.41% 3.08% 2.05% 3.07% 5.27%
Net Assets, End of Period (000) 4,124 4,150 3,950 2,788 2,538 2,416
Ratio of expense to
average net assets* .65% .65% .84% 1.17% 1.06% 1.06%
Ratio of net investment income
to average net assets* 4.93% 5.29% 3.14% 2.04% 3.02% 5.10%
Ratio of expense to
average net assets** .65% .65% 1.06% 2.20% 1.82% 1.81%
Ratio of net investment income
to average net assets** 4.93% 5.29% 2.92% .79% 2.28% 4.34%
Portfolio turnover - - - - - -
</TABLE>
See accompanying notes to financial statements.
*Ratios are annualized for periods of less than one year. Total return is not
annualized.
**Ratios calculated as if no expenses were waived.
<PAGE> 13
FINANCIAL HORIZONS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Horizons Investment Trust (Trust), is a diversified, open-end
investment company organized under the laws of Massachusetts by a
Declaration of Trust dated May 9, 1988. The Trust offers shares in four
separate mutual funds which are registered under the Investment Company Act
of 1940, as amended.
(a) Security Valuation
(1) Growth Fund, Municipal Bond Fund and Government Bond Fund:
Securities traded on a national securities exchange are valued at
closing prices. Listed securities for which no sale was reported on
the valuation date are valued at quoted bid prices. Short-term notes
and bank certificates of deposit are valued at amortized cost, which
approximates market.
(2) Cash Reserve Fund: Securities are valued at amortized cost, which
approximates market value, in accordance with Rule 2a-7 of the
Investment Company Act of 1940, as amended.
(b) Security Transactions and Investment Income
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date; interest income, including the prorata
amortization of premium and discount where applicable, is recorded on an
accrual basis.
(c) Federal Income Taxes
The Trust's policy is to comply with the requirements of the Internal
Revenue Code that are applicable to regulated investment companies and
to distribute all its taxable income to shareholders.
As of October 31, 1995, the Municipal and Government Bond Funds had net
capital loss carry forwards of $1,200,475, and $2,048,440, respectively,
available to offset future capital gains, which will expire in 7 to 8
years.
(d) Dividends to Shareholders
(1) Growth Fund:
Dividends are recorded on the ex-dividend date.
(2) Municipal Bond Fund, Government Bond Fund, and Cash Reserve Fund:
Dividends are declared daily and paid monthly from net investment
income.
Distributable net realized capital gains are declared and distributed at
least annually for all funds. Dividends and distributions to shareholders
are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are considered either permanent or temporary in nature. In
accordance with AICPA Statement of Position 93-2, permanent differences are
reclassified within the capital accounts based on their nature for federal
income tax purposes; temporary differences do not require reclassification.
Dividends and distributions that exceed net investment income and net
realized gains for financial reporting purposes but not for tax purposes are
reported as dividends in excess of net investment income and net realized
gains. To the extent distributions exceed current and accumulated earnings
and profits, they are reported as distributions of paid-in capital.
(e) Expenses
Direct expenses of a fund are allocated to that fund. General expenses
of the Trust are allocated to the funds based upon each fund's relative
average net assets.
2. TRANSACTIONS WITH AFFILIATES
As investment manager for the funds, Nationwide Financial Services, Inc.
(NFS), an affiliated company, earns an annual fee of .65% based on the
average daily net assets of the Growth Fund, Municipal Bond Fund and
Government Bond Fund and .40% of the average daily net assets of the Cash
Reserve Fund. Total annual expenses of each fund will not exceed the limits
prescribed by any state in which the fund's shares are offered for sale.
Such limitation did not affect management fees charged during the periods
covered by the financial statements.
NFS also receives fees for distribution pursuant to a Rule 12b-1
Distribution Plan approved by the Board of Trustees. These fees are based on
average daily net assets of the funds at an annual rate of .75%. During the
six-months ended April 30, 1996, NFS waived distribution fees for the
Growth, Municipal Bond, and Government Bond Funds of $9,890, $30,911, and
$251,651 respectively, representing $.022, $.013, and $.041 per average
share outstanding.
NFS also receives fees as principal underwriter from contingent deferred
sales charges (CDSC) ranging from 5% to 1%, imposed on redemptions which
cause the current value of an account to fall below the total purchase
payments made during the past six years. During the six-months ended April
30, 1996, NFS received fees of $7,818, $63,512, $34,238, and $473 on the
Growth, Municipal Bond, Government Bond, and Cash Reserve Funds,
respectively. Additionally, the Government Bond Fund retained fees (CDSC) of
$65,854 pursuant to NASD guidelines which limit sales charges payable to
underwriters. These fees are reported as "other income."
A subsidiary of NFS (Nationwide Investors Services, Inc.) acts as transfer
and dividend disbursing agent for the funds.
3. BANK LOANS
The Trust has an unsecured bank line of credit of $6,000,000. Borrowings
under this arrangement bear interest at the Federal Funds rate plus .50%. No
compensating balances are required.
4. INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding U.S. Government and
short-term securities) and purchases and sales of U.S. Government
Obligations for the six-months ended April 30, 1996 are summarized as
follows:
<TABLE>
<CAPTION>
U.S. GOVT.
SECURITIES OBLIGATIONS
PURCHASES SALES PURCHASES SALES
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth Fund $ 560,100 958,030 1,159,289 1,032,656
Municipal Bond Fund 5,838,890 8,910,306 - -
Government Bond Fund - - 11,600,483 14,581,050
Cash Reserve Fund - - 298,945 -
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis.
Included in net unrealized appreciation (depreciation) at April 30, 1996 are the
following components:
<TABLE>
<CAPTION>
NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES APPRECIATION
(DEPRECIATION)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth Fund $2,524,442 (92,186) 2,432,256
Municipal Bond Fund 186,170 (590,298) (404,128)
Government Bond Fund 1,032,578 (794,591) 237,987
</TABLE>
15
<PAGE> 14
F I N A N C I A L
H O R I Z O N S
I N V E S T M E N T T R U S T
Growth Fund
Municipal Bond Fund
Government Bond Fund
Cash Reserve Fund
1996
SEMI-ANNUAL
REPORT
April 30, 1996
FINANCIAL HORIZONS INVESTMENT TRUST BULK RATE
P.O. BOX 1492 U. S. POSTAGE
ONE NATIONWIDE PLAZA PAID
COLUMBUS OH 43216-1492 COLUMBUS, OHIO
PERMIT NO. 492
April 30, 1996
Semi-Annual Report
