<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
- ---------------------------------
- ---------------------------------
INVESTMENT ADVISER
Flippin, Bruce & Porter, Inc.
800 Main Street, Suite 202
P.O. Box 6138
Lynchburg, Virginia 24505
800-FBP-9375
TRANSFER AGENT AND
SHAREHOLDER SERVICING AGENT
MGF Service Corp.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
800-443-4249
OFFICERS
John M. Flippin, President
John T. Bruce, Vice President
and Portfolio Manager
R. Gregory Porter, III, Vice President
TRUSTEES
Jack E. Brinson
Austin Brockenbrough, III
John T. Bruce
Charles M. Caravati
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
Fred T. Tattersall
Samuel B. Witt, III
THE
FLIPPIN, BRUCE & PORTER
FUNDS
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
------------------------
------------------------
FBP CONTRARIAN EQUITY FUND
FBP CONTRARIAN BALANCED FUND
------------------------------
------------------------------
<PAGE>
LETTER TO SHAREHOLDERS
We are pleased to report on the progress of your Fund and its
investments during the semi-annual period from April 1 to September 30, 1995.
Stocks and bonds produced very favorable results over this time period,
continuing 1995's excellent first quarter start.
REVIEW AND OUTLOOK
The S&P 500 was up 29.8% for the first nine months of 1995, its third
best performance for that period in the last fifty years. In fact, during
that span there have only been four other years in which that index rose 25%
or more over the first nine months -- 1954, 1958, 1987 and 1989.
The economy continues to grow at a moderate pace that we expect will
carry well into next year. Moderate economic growth and low inflation are the
main reasons for the exceptional returns from the bond and stock markets. We
expect little change in the current level of interest rates. However, in the
event a very positive budget reduction bill is signed into law, interest
rates may move somewhat lower than our forecast, as the Federal Reserve would
most likely lower short-term rates.
The market advance has been led by the consumer staple, technology and
finance sectors of the market, which the Funds have participated in strongly.
Toward the end of this past quarter, we began to reduce the overweighting in
the finance sector as these companies are no longer as undervalued. With the
economy exhibiting slow to moderate growth, companies whose earnings are
economically sensitive may continue their relative underperformance.
Going forward, we expect positive returns, although somewhat lower than
we have enjoyed these first three quarters. Cash balances in both Funds have
been rising, positioning the Funds to take advantage of any market
opportunities that become available.
INVESTMENT RETURNS
The following table displays the total return (capital change plus
income) for the six months and one year ended September 30, 1995:
Six Twelve
Months Months
------ ------
FBP Contrarian Equity Fund 18.7% 24.7%
FBP Contrarian Balanced Fund 14.6% 20.7%
COMPARATIVE CHARTS
Performance for each Fund is compared on the next page to the most
appropriate broad-based index, the S&P 500, an unmanaged index of 500 large
common stocks. Over time, this index has outpaced the FBP Contrarian Balanced
Fund, which maintains at least 25% bonds. Balanced funds have the growth
potential to outpace inflation, but they will typically be outperformed by a
100% stock index over the long term because of the bond portion of their
portfolios. However, the advantage of the bond portion is that it can make
the return and principal of a balanced fund more stable than a portfolio
completely invested in stocks. Results are also compared to the Consumer
Price Index, a measure of inflation.
The Funds each declared and paid a dividend on October 31 for capital
gains realized over the past year. Many funds wait until yearend to make this
distribution, but by proceeding now, our Funds become more attractive for new
and existing shareholders who may want to invest.
Thank you for your continued confidence and investment in The Flippin,
Bruce & Porter Funds.
John M. Flippin
President
John T. Bruce
Vice President - Portfolio Manager
1
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
- ----------------------------------------------------------------
SHARES COMMON STOCKS - 80.6% VALUE
- ----------------------------------------------------------------
<S> <C> <C>
BUSINESS INFORMATION SERVICES - 2.7%
3,000 Dun & Bradstreet Corporation. . . . . . . . . $173,625
--------
CHEMICALS - 2.4%
1,400 Dow Chemical Company. . . . . . . . . . . . . 104,300
4,700 Ethyl Corporation . . . . . . . . . . . . . . 52,287
--------
156,587
--------
COMMERCIAL BANKING - 10.9%
1,800 Chemical Banking Corporation. . . . . . . . . 109,575
2,700 Citicorp. . . . . . . . . . . . . . . . . . . 191,025
900 First Chicago Corporation . . . . . . . . . . 61,763
3,200 NationsBank Corporation . . . . . . . . . . . 215,200
6,100 Premier Bancorp, Inc.(b). . . . . . . . . . . 135,725
--------
713,288
--------
COMMUNICATIONS - 4.4%
5,900 GTE Corporation . . . . . . . . . . . . . . . 231,575
1,000 Harris Corporation. . . . . . . . . . . . . . 54,875
--------
286,450
--------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 5.9%
2,800 International Business Machines(c). . . . . . 264,250
9,700 Tandem Computers, Inc.(b) . . . . . . . . . . 118,825
--------
383,075
--------
CONSUMER GOODS & SERVICES - 3.5%
2,700 Philip Morris Companies, Inc. . . . . . . . . 225,450
--------
DATA PROCESSING - 1.3%
900 First Financial Management Corporation. . . . 87,863
--------
DRUGS/MEDICAL EQUIPMENT - 11.0%
4,200 Allergan, Inc . . . . . . . . . . . . . . . . 140,175
1,600 Bristol-Myers Squibb Company. . . . . . . . . 116,600
4,000 Health Images, Inc. . . . . . . . . . . . . . 28,500
1,700 Johnson & Johnson . . . . . . . . . . . . . . 126,012
3,000 Merck & Company, Inc. . . . . . . . . . . . . 168,000
3,200 Upjohn Company. . . . . . . . . . . . . . . . 142,800
--------
722,087
--------
DURABLE GOODS - 7.7%
5,000 Digital Equipment Corporation (b)(c). . . . . 228,125
1,200 General Electric Company. . . . . . . . . . . 76,500
1,500 Genuine Parts Company . . . . . . . . . . . . 60,188
4,800 WMX Technologies, Inc . . . . . . . . . . . . 136,800
--------
501,613
--------
</TABLE>
2
<PAGE>
FBP CONTRARIAN EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
- ----------------------------------------------------------------
SHARES COMMON STOCKS - 80.6% VALUE
- ----------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - 1.3%
1,000 Hewlett Packard Company(c). . . . . . . . . $ 83,375
----------
FINANCE - 2.5%
3,000 Student Loan Marketing Association. . . . . 162,000
----------
INSURANCE - 3.8%
1,200 Aetna Life & Casualty Company . . . . . . . 88,050
6,000 First Colony Corporation. . . . . . . . . . 162,000
----------
250,050
----------
MANAGEMENT SERVICES - 1.9%
2,800 PHH Corporation . . . . . . . . . . . . . . 126,000
----------
OIL & OIL DRILLING - 6.0%
2,100 Equitable Resources, Inc. . . . . . . . . . 61,950
8,500 Oryx Energy Company(b). . . . . . . . . . . 110,500
2,300 Pennzoil Company. . . . . . . . . . . . . . 100,913
1,800 Schlumberger Limited. . . . . . . . . . . . 117,450
----------
390,813
----------
PAPER & FOREST PRODUCTS - 1.5%
2,100 Weyerhaeuser Company. . . . . . . . . . . . 95,812
----------
PHOTOGRAPHICAL PRODUCTS - 2.3%
2,500 Eastman Kodak Company . . . . . . . . . . . 148,125
----------
PRINTING - 1.4%
1,900 Deluxe Corporation. . . . . . . . . . . . . 62,937
2,000 Gibson Greetings, Inc . . . . . . . . . . . 28,500
----------
91,437
----------
RETAIL STORES - 4.2%
4,000 Circuit City Stores, Inc. . . . . . . . . . 126,500
10,000 K-Mart Corporation. . . . . . . . . . . . . 145,000
----------
271,500
----------
TOBACCO - .6%
2,800 Dimon, Inc. . . . . . . . . . . . . . . . . 42,000
----------
TRANSPORTATION - 4.0%
4,800 Alexander & Baldwin, Inc. . . . . . . . . . 115,200
1,800 Federal Express Corporation(b)(c) . . . . . 149,400
----------
264,600
----------
TRAVEL & INVESTMENT SERVICES - 1.3%
2,000 American Express Company. . . . . . . . . . 88,750
----------
TOTAL COMMON STOCKS (COST $3,969,308). . . $5,264,500
----------
</TABLE>
3
<PAGE>
FBP CONTRARIAN EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
- ----------------------------------------------------------------
FACE
AMOUNT REPURCHASE AGREEMENTS(a) - 19.7% VALUE
- ----------------------------------------------------------------
<S> <C> <C>
$1,288,562 Daiwa Securities, 6.45%, dated 09/29/95,
due 10/02/95, repurchase proceeds
$1,289,255 (Cost $1,288,562). . . . . . $ 1,288,562
-----------
TOTAL INVESTMENTS AND REPURCHASE
AGREEMENTS AT VALUE - 100.3%. . . . . . $ 6,553,062
LIABILITIES IN EXCESS OF OTHER
ASSETS - (.3)%. . . . . . . . . . . . . (20,116)
-----------
NET ASSETS - 100.0%. . . . . . . . . . . $ 6,532,946
-----------
-----------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by
$16,376,000 U.S. Treasury Bond, 11.25%, due 02/15/15. The
aggregate market value of the collateral at September 30,
1995 was $24,653,775. The Fund's pro-rata interest in the
collateral at September 30, 1995 was $1,320,029.
(b) Non-income producing security.
(c) Security covers a call option.
See accompanying notes to the financial statements.
FBP CONTRARIAN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
- ----------------------------------------------------------------
MARKET
VALUE OF PREMIUMS
SHARES COVERED CALL OPTIONS OPTION RECEIVED
- ----------------------------------------------------------------
<S> <C> <C> <C>
Digital Equipment Corporation,
600 01/20/96 at $50 $ 1,800 $ 2,735
Federal Express Corporation,
800 01/20/96 at $80 5,400 3,498
Hewlett Packard Company,
1,000 11/18/95 at $75 9,875 4,335
International Business Machines,
300 01/20/96 at $120 188 1,647
-------- --------
$17,263 $ 12,215
-------- --------
-------- --------
</TABLE>
See accompanying notes to the financial statements.
4
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SHARES COMMON STOCKS - 55.0% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS INFORMATION SERVICES - 1.7%
9,000 Dun & Bradstreet Corporation. . . . . . . . . . . . . .$ 520,875
----------
CHEMICALS - 2.1%
6,000 Dow Chemical Company. . . . . . . . . . . . . . . . . . 447,000
20,000 Ethyl Corporation . . . . . . . . . . . . . . . . . . . 222,500
----------
669,500
----------
COMMERCIAL BANKING - 7.6%
8,000 Chemical Banking Corporation. . . . . . . . . . . . . . 487,000
8,000 Citicorp. . . . . . . . . . . . . . . . . . . . . . . . 566,000
4,000 First Chicago Corporation . . . . . . . . . . . . . . . 274,500
9,400 NationsBank Corporation . . . . . . . . . . . . . . . . 632,150
20,000 Premier Bancorp, Inc.(b). . . . . . . . . . . . . . . . 445,000
----------
2,404,650
----------
COMMUNICATIONS - 3.0%
15,000 GTE Corporation . . . . . . . . . . . . . . . . . . . . 588,750
6,700 Harris Corporation. . . . . . . . . . . . . . . . . . . 367,663
----------
956,413
----------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 4.2%
10,000 International Business Machines(c). . . . . . . . . . . 943,750
31,000 Tandem Computers, Inc.(b) . . . . . . . . . . . . . . . 379,750
----------
1,323,500
----------
CONSUMER GOODS & SERVICES - 3.0%
11,200 Philip Morris Companies, Inc. . . . . . . . . . . . . . 935,200
----------
DATA PROCESSING - .7%
2,200 First Financial Management Corporation. . . . . . . . . 214,775
----------
DRUGS/MEDICAL EQUIPMENT - 7.6%
13,000 Allergan, Inc.. . . . . . . . . . . . . . . . . . . . . 433,875
7,000 Bristol-Myers Squibb Company. . . . . . . . . . . . . . 510,125
8,800 Health Images, Inc. . . . . . . . . . . . . . . . . . . 62,700
7,500 Johnson & Johnson . . . . . . . . . . . . . . . . . . . 555,937
5,000 Merck & Company, Inc. . . . . . . . . . . . . . . . . . 280,000
12,000 Upjohn Company. . . . . . . . . . . . . . . . . . . . . 535,500
----------
2,378,137
----------
DURABLE GOODS - 5.5%
16,000 Digital Equipment Corporation(b)(c) . . . . . . . . . . 730,000
5,600 General Electric Company. . . . . . . . . . . . . . . . 357,000
4,300 Genuine Parts Company . . . . . . . . . . . . . . . . . 172,537
16,000 WMX Technologies, Inc.. . . . . . . . . . . . . . . . . 456,000
----------
1,715,537
----------
</TABLE>
5
<PAGE>
FBP CONTRARIAN BALANCED FUND (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SHARES COMMON STOCKS - 55.0% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS - .5%
2,000 Hewlett Packard Company(c). . . . . . . . . . . . . . .$ 166,750
-----------
FINANCE - 1.7%
10,000 Student Loan Marketing Association. . . . . . . . . . . 540,000
-----------
INSURANCE - 3.9%
5,300 Aetna Life & Casualty Company . . . . . . . . . . . . . 388,888
4,275 American International Group. . . . . . . . . . . . . . 363,375
18,000 First Colony Corporation. . . . . . . . . . . . . . . . 486,000
-----------
1,238,263
-----------
MANAGEMENT SERVICES - 1.3%
9,000 PHH Corporation . . . . . . . . . . . . . . . . . . . . 405,000
-----------
OIL & OIL DRILLING - 3.8%
6,800 Equitable Resources, Inc. . . . . . . . . . . . . . . . 200,600
25,000 Oryx Energy Company(b). . . . . . . . . . . . . . . . . 325,000
7,800 Pennzoil Company. . . . . . . . . . . . . . . . . . . . 342,225
5,000 Schlumberger Limited. . . . . . . . . . . . . . . . . . 326,250
-----------
1,194,075
-----------
PAPER & FOREST PRODUCTS - 1.0%
7,000 Weyerhaeuser Company. . . . . . . . . . . . . . . . . . 319,375
-----------
Photographical Products - 1.3%
6,800 Eastman Kodak Company . . . . . . . . . . . . . . . . . 402,900
-----------
PRINTING - .5%
10,000 Gibson Greetings, Inc.. . . . . . . . . . . . . . . . . 142,500
-----------
RETAIL STORES - 2.9%
13,200 Circuit City Stores, Inc. . . . . . . . . . . . . . . . 417,450
33,000 K-Mart Corporation. . . . . . . . . . . . . . . . . . . 478,500
-----------
895,950
-----------
TOBACCO - .2%
4,600 Dimon, Inc. . . . . . . . . . . . . . . . . . . . . . . 69,000
-----------
TRANSPORTATION - 1.4%
8,600 Alexander & Baldwin, Inc. . . . . . . . . . . . . . . . 206,400
2,900 Federal Express Corporation(b) (c). . . . . . . . . . . 240,700
-----------
447,100
-----------
TRAVEL & INVESTMENT SERVICES - 1.1%
8,000 American Express Company. . . . . . . . . . . . . . . . 355,000
-----------
TOTAL COMMON STOCKS (COST $11,624,575). . . . . . . . .$17,294,500
-----------
</TABLE>
6
<PAGE>
FBP CONTRARIAN BALANCED FUND (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PAR VALUE U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 16.9% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES - 15.2%
$ 500,000 4.25%, due 11/30/95 . . . . . . . . . . . . . . $ 499,063
500,000 6.00%, due 06/30/96 . . . . . . . . . . . . . . 501,093
500,000 5.625%, due 06/30/97. . . . . . . . . . . . . . 498,281
200,000 5.50%, due 09/30/97 . . . . . . . . . . . . . . 198,750
500,000 5.375%, due 05/31/98. . . . . . . . . . . . . . 493,593
500,000 5.875%, due 08/15/98. . . . . . . . . . . . . . 499,688
500,000 6.75%, due 06/30/99 . . . . . . . . . . . . . . 512,500
500,000 7.75%, due 01/31/00 . . . . . . . . . . . . . . 532,343
500,000 6.25%, due 02/15/03 . . . . . . . . . . . . . . 502,656
500,000 7.25%, due 05/15/04 . . . . . . . . . . . . . . 533,907
----------
4,771,874
----------
FEDERAL FARM CREDIT BANK - .6%
200,000 5.84%, due 12/23/96 . . . . . . . . . . . . . . 199,850
----------
FEDERAL HOME LOAN BANK - .6%
200,000 6.16%, due 01/02/97 . . . . . . . . . . . . . . 200,619
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - .5%
150,000 8.125%, due 09/30/96. . . . . . . . . . . . . . 153,003
----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(COST $5,238,196) . . . . . . . . . . . . . . . . .$5,325,346
----------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PAR VALUE CORPORATE BONDS - 9.2% VALUE
- -------------------------------------------------------------------------------
FINANCE - 2.1%
Penn Central Corporation,
$ 200,000 10.625%, due 04/15/00 . . . . . . . . . . . . . $ 207,968
Signet Banking Corporation,
150,000 9.625%, due 06/01/99. . . . . . . . . . . . . . 163,851
United Dominion Realty,
300,000 7.25%, due 04/01/99 . . . . . . . . . . . . . . 299,232
----------
671,051
----------
INDUSTRIAL - 4.4%
Baxter International, Inc.,
75,000 9.25%, due 12/15/99 . . . . . . . . . . . . . . 82,525
Boise Cascade Corporation,
175,000 10.125%, due 12/15/97 . . . . . . . . . . . . . 187,257
Comdisco, Inc.,
150,000 9.75%, due 01/15/97 . . . . . . . . . . . . . . 156,252
Dayton Hudson Corporation,
195,000 9.875%, due 06/01/17. . . . . . . . . . . . . . 206,848
Delta Air Equipment Trust,
146,000 9.43%, due 11/17/96 . . . . . . . . . . . . . . 149,814
Georgia Pacific Corporation,
300,000 9.75%, due 01/15/18 . . . . . . . . . . . . . . 312,788
Hilton Hotels,
300,000 7.70%, due 07/15/02 . . . . . . . . . . . . . . 304,945
----------
1,400,429
----------
</TABLE>
7
<PAGE>
FBP CONTRARIAN BALANCED FUND (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
PAR VALUE CORPORATE BONDS - 9.2% VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES - 2.7%
Niagara Mohawk Power,
400,000 9.50%, due 03/01/21 . . . . . . . . . . . . . . . . . . . . . $ 430,605
Rochester Telephone,
200,000 9.00%, due 01/01/20 . . . . . . . . . . . . . . . . . . . . . 211,656
Texas Eastern Transmission,
185,000 10.00%, due 10/01/11. . . . . . . . . . . . . . . . . . . . . 195,483
-----------
837,744
-----------
TOTAL CORPORATE BONDS (COST $2,786,047). . . . . . . . . . . . . . $ 2,909,224
-----------
TOTAL INVESTMENTS AT VALUE (COST $19,648,818) -81.1% . . . . . . . $25,529,070
-----------
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
FACE
AMOUNT REPURCHASE AGREEMENTS(a) - 21.7% VALUE
- ----------------------------------------------------------------------------------------------
$6,816,730 Daiwa Securities, 6.45%, dated 09/29/95, duev 10/02/95,
repurchase proceeds $6,820,394 (Cost $6,816,730) . . . . . . . $ 6,816,730
-----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE - 102.8% . . . $32,345,800
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS - (2.8)%. . . . . . . . . . . (882,867)
-----------
NET ASSETS - 100.0% . . . . . . . . . . . . . . . . . . . . . . . . $31,462,933
-----------
-----------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/15. The aggregate market value of the
collateral at September 30,1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $6,983,193.
(b) Non-income producing security.
(c) Security covers a call option.
See accompanying notes to the financial statements.
8
<PAGE>
FBP CONTRARIAN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MARKET
VALUE OF PREMIUMS
SHARES COVERED CALL OPTIONS OPTION RECEIVED
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Digital Equipment Corporation,
2,000 01/20/96 at $40 . . . . . . . . . . . . $ 15,500 $ 6,170
1,500 01/20/96 at $50 . . . . . . . . . . . . 4,500 5,920
Federal Express Corporation,
700 01/20/96 at $75 . . . . . . . . . . . . 7,525 2,235
1,000 01/20/96 at $80 . . . . . . . . . . . . 6,750 4,382
Hewlett Packard Company,
2,000 11/18/95 at $75 . . . . . . . . . . . . 19,750 8,669
International Business Machines,
1,000 10/21/95 at $100. . . . . . . . . . . . 750 4,960
1,000 01/20/96 at $120. . . . . . . . . . . . 625 5,585
--------- ---------
$ 55,400 $ 37,921
--------- ---------
--------- ---------
</TABLE>
See accompanying notes to the financial statements.
9
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost . . . . . . . . . . . . . . . . . . . . . . . . $ 3,969,308 $ 19,648,818
------------ -------------
------------ -------------
At value (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,264,500 $ 25,529,070
Investments in repurchase agreements (Note 1) . . . . . . . . . . . . 1,288,562 6,816,730
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . 5,659 188,102
Dividends receivable. . . . . . . . . . . . . . . . . . . . . . . . . 12,950 42,996
Receivable for capital shares sold. . . . . . . . . . . . . . . . . . 1,300 2,928
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 1,220
------------ -------------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . 6,573,191 32,581,046
------------ -------------
LIABILITIES
Payable for securities purchased. . . . . . . . . . . . . . . . . . . -- 1,009,831
Payable for capital shares redeemed . . . . . . . . . . . . . . . . . 1,500 8,768
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . 8,875 14,344
Accrued advisory fees (Note 3). . . . . . . . . . . . . . . . . . . . 5,256 19,038
Accrued administration fees (Note 3). . . . . . . . . . . . . . . . . 2,000 4,800
Other accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . 5,351 5,932
Covered call options, at value
(premiums received $12,215 and $37,921, respectively)(Note 5) . . . 17,263 55,400
------------ -------------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . 40,245 1,118,113
------------ -------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,532,946 $ 31,462,933
------------ -------------
------------ -------------
Net assets consist of:
Capital shares . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,196,978 $ 24,747,040
Undistributed net investment income. . . . . . . . . . . . . . . . . 1,419 4,443
Accumulated net realized gains from security transactions. . . . . . 44,405 848,677
Net unrealized appreciation on investments . . . . . . . . . . . . . 1,290,144 5,862,773
------------ -------------
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,532,946 $ 31,462,933
------------ -------------
------------ -------------
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value). . . . . . . . . . . . . . . . . . . . . . 496,082 2,177,310
------------ -------------
------------ -------------
Net asset value, offering price and redemption price per share (Note 1) $ 13.17 $ 14.45
------------ -------------
------------ -------------
</TABLE>
See accompanying notes to the financial statements.
10
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- ----------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest. . . . . . . . . . . . . . . . . . . . $ 34,447 $ 402,529
Dividends . . . . . . . . . . . . . . . . . . . 62,675 220,476
-------- ----------
TOTAL INVESTMENT INCOME. . . . . . . . . . . . 97,122 623,005
-------- ----------
EXPENSES
Investment advisory fees (Note 3) . . . . . . . 21,674 108,010
Administrative fees (Note 3). . . . . . . . . . 12,000 28,294
Custodian fees. . . . . . . . . . . . . . . . . 5,004 12,940
Professional fees . . . . . . . . . . . . . . . 4,088 6,598
Trustees' fees and expenses . . . . . . . . . . 3,702 3,702
Printing of shareholder reports . . . . . . . . 1,618 3,476
Registration fees . . . . . . . . . . . . . . . 1,687 2,638
Postage and supplies. . . . . . . . . . . . . . 1,746 296
Pricing costs . . . . . . . . . . . . . . . . . 513 1,981
Other expenses. . . . . . . . . . . . . . . . . 511 1,085
------- ----------
TOTAL EXPENSES . . . . . . . . . . . . . . . . 52,543 169,020
Fees waived by the Adviser (Note 3) . . . . . . (16,419) --
------- ----------
NET EXPENSES . . . . . . . . . . . . . . . . . 36,124 169,020
------- ----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . 60,998 453,985
------- ----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 44,811 685,317
Net change in unrealized appreciation/
depreciation on investments . . . . . . . . . 873,505 2,749,707
-------- ----------
NET REALIZED AND UNREALIZED GAINS ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . 918,316 3,435,024
-------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS . . . $979,314 $3,889,009
-------- ----------
-------- ----------
</TABLE>
See accompanying notes to the financial statements.
11
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
PERIODS ENDED SEPTEMBER 30, 1995 AND MARCH 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1995 MARCH 31, 1995 MARCH 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income. . . . . . . . . . . $ 60,998 $ 88,556 $ 453,985 $ 731,725
Net realized gains on:
Option contracts written. . . . . . . . . -- 2,015 -- 25,009
Security transactions . . . . . . . . . . 44,811 4,052 685,317 355,025
Net change in unrealized appreciation/
depreciation on investments . . . . . . . 73,505 447,385 2,749,707 1,297,628
---------- ---------- ---------- -----------
Net increase in net assets from operations. 979,314 542,008 3,889,009 2,409,387
---------- ---------- ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income . . . . . . . . (61,034) (94,782) (456,378) (743,557)
From net realized gains. . . . . . . . . . -- (23,427) -- (473,702)
---------- ---------- ---------- -----------
Decrease in net assets from
distributions to shareholders. . . . . . . (61,034) (118,209) (456,378) (1,217,259)
---------- ---------- ---------- -----------
FROM CAPITAL SHARE TRANSACTIONS(a)
Proceeds from shares sold. . . . . . . . . 827,374 2,323,648 2,702,485 4,099,675
Net asset value of shares issued in
reinvestment of distributions to
shareholders . . . . . . . . . . . . . . 41,690 65,930 428,533 1,156,950
Payments for shares redeemed . . . . . . . (577,378) (625,056) (1,076,402) (2,441,929)
---------- ---------- ---------- -----------
Net increase in net assets from
capital share transactions . . . . . . . . 291,686 1,764,522 2,054,616 2,814,696
---------- ---------- ----------- -----------
TOTAL INCREASE IN NET ASSETS. . . . . . . . 1,209,966 2,188,321 5,487,247 4,006,824
NET ASSETS
Beginning of period. . . . . . . . . . . 5,322,980 3,134,659 25,975,686 21,968,862
---------- ---------- ----------- -----------
End of period - (including
undistributed net investment
income of $1,419, $1,455,
$4,443 and $6,836, respectively). . . $6,532,946 $5,322,980 $31,462,933 $25,975,686
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
(a)Summary of capital share activity
follows:
Shares sold. . . . . . . . . . . . . . . 66,117 219,734 195,381 330,320
Shares issued in reinvestment of
distributions to shareholders . . . . 3,293 6,159 30,455 93,803
Shares redeemed. . . . . . . . . . . . . (47,991) (59,971) (78,218) (195,945)
---------- ---------- ----------- -----------
Net increase in shares outstanding . . . 21,419 165,922 147,618 228,178
Shares outstanding, beginning of
period. . . . . . . . . . . . . . . . 474,663 308,741 2,029,692 1,801,514
---------- ---------- ----------- -----------
Shares outstanding, end of period. . . . 496,082 474,663 2,177,310 2,029,692
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
</TABLE>
See accompanying notes to the financial statements.
12
<PAGE>
FBP CONTRARIAN EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR JULY 30,
SEPTEMBER 30, ENDED 1993(a) TO
1995 MARCH 31, MARCH 31,
(UNAUDITED) 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . $ 11.21 $ 10.15 $ 10.00
---------- ----------- -----------
Income from investment operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.13 0.21 0.12
Net realized and unrealized gains on investments. . . . . . . . . . . . . . 1.96 1.14 0.19
---------- ----------- -----------
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . 2.09 1.35 0.31
---------- ----------- -----------
Less distributions:
Dividends from net investment income. . . . . . . . . . . . . . . . . . . . (0.13) (0.23) (0.10)
Distributions from net realized gains . . . . . . . . . . . . . . . . . . . -- (0.06) (0.06)
---------- ----------- -----------
Total distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.13) (0.29) (0.16)
---------- ----------- -----------
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . $ 13.17 $ 11.21 $ 10.15
---------- ----------- -----------
---------- ----------- -----------
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.70% 13.52% 4.59%(c)
---------- ----------- -----------
---------- ----------- -----------
Net assets at end of period (000's). . . . . . . . . . . . . . . . . . . . . $ 6,533 $ 5,323 $ 3,135
---------- ----------- -----------
---------- ----------- -----------
Ratio of expenses to average net assets(b) . . . . . . . . . . . . . . . . . 1.25%(c) 1.25% 1.25%(c)
Ratio of net investment income to average net assets . . . . . . . . . . . . 2.11%(c) 2.15% 1.98%(c)
Portfolio turnover rate. . . . . . . . . . . . . . . . . . . . . . . . . . . 10%(c) 9% 7%
</TABLE>
(a)Commencement of operations.
(b)The ratios of expenses to average net assets are net of investment advisory
fees waived and/or expenses reimbursed by the Adviser of .57%(c), 1.02% and
1.85% for the periods ended September 30, 1995, March 31, 1995 and March 31,
1994, respectively (Note 3).
(c)Annualized.
See accompanying notes to the financial statements.
13
<PAGE>
FBP CONTRARIAN BALANCED FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1995 -----------------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period . . . . $ 12.80 $ 12.19 $ 12.10 $ 11.10 $ 9.90 $ 9.75
--------- --------- --------- --------- -------- --------
Income from investment operations:
Net investment income . . . . . . . . . . . . 0.22 0.38 0.33 0.34 0.36 0.45
Net realized and unrealized gains
on investments . . . . . . . . . . . . . . . 1.65 0.87 0.15 1.06 1.17 0.18
--------- --------- --------- --------- -------- --------
Total from investment operations . . . . . . . 1.87 1.25 0.48 1.40 1.53 0.63
--------- --------- --------- --------- -------- --------
Less distributions:
Dividends from net investment income. . . . . (0.22) (0.39) (0.32) (0.35) (0.33) (0.48)
Distributions from net realized gains . . . . -- (0.25) (0.07) (0.05) -- --
--------- --------- --------- --------- -------- --------
Total distributions. . . . . . . . . . . . . . (0.22) (0.64) (0.39) (0.40) (0.33) (0.48)
--------- --------- --------- --------- -------- --------
Net asset value at end of period . . . . . . . $ 14.45 $ 12.80 $ 12.19 $ 12.10 $ 11.10 $ 9.90
--------- --------- --------- --------- -------- --------
--------- --------- --------- --------- -------- --------
Total return . . . . . . . . . . . . . . . . . 14.62% 10.54% 3.88% 12.76% 15.71% 6.98%
--------- --------- --------- --------- -------- --------
--------- --------- --------- --------- -------- --------
Net assets at end of period (000's). . . . . . $ 31,463 $ 25,976 $ 21,969 $ 16,435 $ 9,572 $ 5,285
--------- --------- --------- --------- -------- --------
--------- --------- --------- --------- -------- --------
Ratio of expenses to average net assets(a) . . 1.17%(b) 1.17% 1.25% 1.31% 1.35% 1.40%
Ratio of net investment income
to average net assets . . . . . . . . . . . . 3.15%(b) 3.10% 2.64% 3.09% 3.61% 5.07%
Portfolio turnover rate. . . . . . . . . . . . 20%(b) 14% 28% 27% 14% 13%
</TABLE>
(a)The ratios of expenses to average net assets are net of expenses reimbursed
through a directed brokerage arrangement or are net of investment advisory
fees waived and/or expenses reimbursed by the Adviser of .03%, .11%, .12%,
.31% and .55% for the years ended March 31, 1995, 1994, 1993, 1992 and 1991
(Notes 3 and 4).
(b)Annualized.
See accompanying notes to the financial statements.
14
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The FBP Contrarian Equity Fund and the FBP Contrarian Balanced Fund (the
Funds) are each a no-load, diversified, open-end series of the Williamsburg
Investment Trust (the Trust), a registered management investment company
under the Investment Company Act of 1940, as amended. The Trust was organized
as a Massachusetts business trust on July 18, 1988.
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- The Funds' portfolio securities are valued as of the
close of business of the regular session of the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Securities which are traded
over-the-counter are valued at the last sales price, if available,
otherwise, at the last quoted bid price. Securities traded on a national
stock exchange are valued based upon the closing price on the principal
exchange where the security is traded. It is expected that fixed income
securities of the FBP Contrarian Balanced Fund will ordinarily be traded on
the over-the-counter market, and common stocks of each Fund will
ordinarily be traded on a national securities exchange, but may also be
traded on the over-the-counter market. When market quotations are not
readily available, fixed income securities may be valued on the basis of
prices provided by an independent pricing service.
Repurchase agreements -- The Funds generally enter into joint repurchase
agreements with other funds within the Trust. The joint repurchase
agreement, which is collateralized by U.S. Government obligations, is
valued at cost which, together with accrued interest, approximates market.
At the time the Funds enter into the joint repurchase agreement, the
Funds take possession of the underlying securities and the seller agrees
that the value of the underlying securities, including accrued
interest, will at all times be equal to or exceed the face amount of
the repurchase agreement. In addition, each Fund actively monitors and
seeks additional collateral, as needed.
Share valuation -- The net asset value per share of each Fund is calculated
daily by dividing the total value of each Fund's assets, less
liabilities, by the number of shares outstanding. The offering price and
redemption price per share of each Fund is equal to the net asset
value per share.
Investment income and distributions to shareholders -- Interest income
is accrued as earned. Discounts and premiums on securities purchased
are amortized in accordance with income tax regulations. Dividend income is
recorded on the ex-dividend date. Dividends arising from net investment
income are declared and paid quarterly to shareholders of each Fund. 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,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
Options transactions -- The Funds may write covered call options for
which premiums are received and are recorded as liabilities, and are
subsequently valued daily at the closing prices on their primary
exchanges. Premiums received from writing options which expire are
treated as realized gains. Premiums received from writing options
which are exercised increase the proceeds used to calculate the realized
gain or loss on the sale of the security. If a closing purchase transaction
is used to terminate the Funds' obligation on a call, a gain or loss will
be realized, depending upon whether the price of the closing purchase
transaction is more or less than the premium previously received on the
call written.
Federal income tax -- It is each 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.
15
<PAGE>
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each 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.
The following information is based upon the federal income tax cost of
portfolio investments of each Fund as of September 30, 1995:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
- ----------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized appreciation.......... $1,380,200 $6,239,901
Gross unrealized depreciation.......... (90,056) (377,128)
---------- ----------
Net unrealized appreciation............ $1,290,144 $5,862,773
---------- ----------
---------- ----------
- ----------------------------------------------------------------------------------
</TABLE>
The tax basis of investments for each Fund is equal to the acquisition
cost as shown on the Statements of Assets and Liabilities.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds
from sales and maturities of investment securities, other than
short-term investments, amounted to $656,467 and $220,069, respectively,
for the FBP Contrarian Equity Fund and $2,357,703 and $2,844,065,
respectively, for the FBP Contrarian Balanced Fund.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Funds' investments are managed by Flippin, Bruce & Porter, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under
the Investment Advisory Agreement, each Fund pays the Adviser a
fee, which is computed and accrued daily and paid monthly at an annual
rate of .75% on its average daily net assets up to $250 million; .65%
on the next $250 million of such net assets; and .50% on such net assets in
excess of $500 million.
States in which shares of the Funds are offered may impose an expense
limitation based upon net assets. The Adviser has agreed to reimburse each
Fund for expenses which exceed the most restrictive applicable expense
limitation of any state. The Adviser currently intends to limit the
total operating expenses of each Fund to 1.25% of average net assets.
In accordance with the above, the Adviser waived $16,419 of its
investment advisory fees for the FBP Contrarian Equity Fund for the
six months ended September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the
Trust and MGF Service Corp. (MGF), MGF provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, MGF receives a monthly fee
from each Fund at an annual rate of .20% on its average daily net assets up
to $25 million; .175% on the next $25 million of such net assets; and .15%
on such net assets in excess of $50 million, subject to a $2,000 minimum
monthly fee. In addition, each Fund pays out-of-pocket expenses
including, but not limited to, pricing fees and postage and supplies.
Certain officers of the Trust are also officers of MGF.
16
<PAGE>
4. DIRECTED BROKERAGE ARRANGEMENT
In an effort to reduce the total operating expenses of the
FBP Contrarian Balanced Fund, a portion of the Fund's
custodian fees for periods ended March 31, 1995 and prior
were paid through an arrangement with a third-party broker-
dealer who is compensated through commission trades.
Payment of the fees by the broker-dealer was based on a
percentage of commissions earned.
5. COVERED CALL OPTIONS
A summary of covered call option contracts during the six
months ended September 30, 1995 is as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
---------------------------------------
NUMBER OF OPTION NUMBER OF OPTION
OPTIONS PREMIUMS OPTIONS PREMIUMS
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at beginning of period ..... -- $ -- 20 $ 6,170
Options written................................. 27 12,215 82 34,336
Options exercised............................... -- -- (10) (2,585)
---- ------- --- -------
Options outstanding at end of period............ 27 $12,215 92 $37,921
---- ------- --- -------
---- ------- --- -------
- ----------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
APPENDIX
A representation of the graphic material contained in the
Flippin, Bruce and Porter Funds September 30, 1995 Semi-
Annual Report is set forth below.
1. Comparison of Change in Value of $10,000 Investment in
the FBP Contrarian Equity Fund and the Standard & Poor's
500 Index and Consumer Price Index.
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 INDEX: CONSUMER PRICE INDEX: FBP CONTRARIAN EQUITY FUND:
QTRLY QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE DATE RETURN BALANCE
---- ------ ------- ---- ------ ------- ---- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
07/31/93 10,000 07/31/93 10,000 07/31/93 10,000
09/30/93 2.99% 10,299 09/30/93 0.40% 10,040 09/30/93 3.05% 10,305
12/31/93 2.32% 10,538 12/31/93 0.70% 10,110 12/31/93 1.99% 10,510
03/31/94 -3.79% 10,139 03/31/94 0.50% 10,161 03/31/94 -1.92% 10,308
06/30/94 0.42% 10,181 06/30/94 0.60% 10,222 06/30/94 0.69% 10,379
09/30/94 4.88% 10,678 09/30/94 0.90% 10,314 09/30/94 7.34% 11,141
12/31/94 -0.02% 10,676 12/31/94 0.60% 10,376 12/31/94 -1.30% 10,996
03/31/95 9.74% 11,716 03/31/95 0.80% 10,460 03/31/95 6.42% 11,702
06/30/95 9.55% 12,834 06/30/95 0.90% 10,554 06/30/95 9.37% 12,798
09/30/95 7.95% 13,854 09/30/95 0.40% 10,596 09/30/95 8.53% 13,890
</TABLE>
Past performance is not predictive of future performance.
FBP Contrarian Equity Fund - Average Annual Total Returns
<TABLE>
<CAPTION>
<S> <C>
1 Year 24.67%
Since Inception* 16.37%
</TABLE>
*Initial public offering of shares was July 30, 1993.
18
<PAGE>
2. Comparison of Change in Value of $10,000 Investment in
the FBP Contrarian Balanced Fund and the Standard &
Poor's 500 Index and Consumer Price Index.
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 INDEX: CONSUMER PRICE INDEX: FBP CONTRARIAN BALANCED FUND:
QTRLY QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE DATE RETURN BALANCE
---- ------ ------- ---- ------ ------- ---- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
07/03/89 10,000 07/03/89 10,000 07/03/89 10,000
09/30/89 10.71% 11,071 09/30/89 0.75% 10,075 09/30/89 -1.08% 9,892
12/31/89 2.06% 11,299 12/31/89 1.00% 10,151 12/31/89 0.05% 9,897
03/31/90 -3.00% 10,960 03/31/90 2.01% 10,355 03/31/90 -0.30% 9,867
06/30/90 6.28% 11,648 06/30/90 0.90% 10,448 06/30/90 1.95% 10,059
09/30/90 -13.75% 10,047 09/30/90 1.71% 10,627 09/30/90 -13.02% 8,749
12/31/90 8.97% 10,948 12/31/90 1.71% 10,808 12/31/90 4.22% 9,118
03/31/91 14.53% 12,539 03/31/91 0.90% 10,906 03/31/91 15.76% 10,555
06/30/91 -0.23% 12,510 06/30/91 0.40% 10,950 06/30/91 1.21% 10,683
09/30/91 5.35% 13,179 09/30/91 0.60% 11,015 09/30/91 4.18% 11,130
12/31/91 8.38% 14,284 12/31/91 0.90% 11,115 12/31/91 4.29% 11,607
03/31/92 -2.53% 13,922 03/31/92 0.70% 11,193 03/31/92 5.23% 12,214
06/30/92 1.90% 14,187 06/30/92 0.80% 11,283 06/30/92 1.80% 12,434
09/30/92 3.15% 14,634 09/30/92 0.70% 11,362 09/30/92 0.89% 12,545
12/31/92 5.03% 15,370 12/31/92 0.80% 11,453 12/31/92 5.82% 13,275
03/31/93 4.36% 16,040 03/31/93 0.90% 11,556 03/31/93 3.74% 13,772
06/30/93 0.48% 16,117 06/30/93 0.60% 11,626 06/30/93 0.75% 13,875
09/30/93 2.58% 16,533 09/30/93 0.40% 11,672 09/30/93 4.13% 14,448
12/31/93 2.32% 16,916 12/31/93 0.70% 11,754 12/31/93 1.04% 14,598
03/31/94 -3.79% 16,275 03/31/94 0.50% 11,813 03/31/94 -2.00% 14,306
06/30/94 0.42% 16,343 06/30/94 0.60% 11,884 06/30/94 0.13% 14,324
09/30/94 4.88% 17,141 09/30/94 0.90% 11,991 09/30/94 4.82% 15,015
12/31/94 -0.02% 17,138 12/31/94 0.60% 12,063 12/31/94 -0.97% 14,870
03/31/95 9.74% 18,807 03/31/95 0.80% 12,159 03/31/95 6.35% 15,814
06/30/95 9.55% 20,603 06/30/95 0.90% 12,269 06/30/95 7.70% 17,031
09/30/95 7.95% 22,241 09/30/95 0.40% 12,318 09/30/95 6.43% 18,126
</TABLE>
Past performance is not predictive of future performance.
FBP Contrarian Balanced Fund - Average Annual Total Returns
<TABLE>
<CAPTION>
<S> <C>
1 Year 20.72%
5 Years 15.68%
Since Inception* 10.00%
</TABLE>
*Initial public offering of shares was July 3, 1989.
19
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
------------------------------
NO LOAD MUTUAL FUNDS
INVESTMENT ADVISER
T. Leavell & Associates, Inc.
150 Government Street
Post Office Box 1307
Mobile, AL 36633
ADMINISTRATOR
MGF Service Corp.
312 Walnut Street
P.O. Box 5354
Cincinnati, OH 45201-5354
1-800-443-4249
CUSTODIAN
Wachovia Bank of North Carolina N.A.
301 N. Main Street
Winston-Salem, NC 27102
LEGAL COUNSEL
Sullivan & Worcester
1025 Connecticut Avenue, N.W.
Suite 1000
Washington, D.C. 20036
BOARD OF TRUSTEES
Richard Mitchell, President
Jack E. Brinson
Austin Brockenbrough, III
John T. Bruce
Charles M. Caravati, Jr. M.D.
J. Finley Lee, Jr.
Richard L. Morrill
Harris V. Morrissette
Fred T. Tattersall
Samuel B. Witt, III
PORTFOLIO MANAGERS
Thomas W. Leavell,
The Government Street Funds
Timothy S. Healey,
The Alabama Tax Free Bond Fund
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
-----------------------------
NO LOAD MUTUAL FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1995
(UNAUDITED)
INVESTMENT ADVISER
T. LEAVELL & ASSOCIATES, INC.
FOUNDED 1979
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
GOVERNMENT GOVERNMENT ALABAMA
STREET STREET TAX FREE
EQUITY BOND BOND
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost . . . . . . . . . . . . . . . . . . $27,767,999 $27,944,061 $13,687,934
----------- ----------- -----------
----------- ----------- -----------
At value (Note 1) . . . . . . . . . . . . . . . . . . . $34,518,358 $27,960,914 $13,973,000
Investments in repurchase agreements (Note 1). . . . . . 3,466,681 137,332 --
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- 1,007
Receivable for capital shares sold . . . . . . . . . . . 16,020 67,240 6,363
Interest receivable. . . . . . . . . . . . . . . . . . . 19,148 564,970 186,296
Dividends receivable . . . . . . . . . . . . . . . . . . 50,976 -- --
Other assets . . . . . . . . . . . . . . . . . . . . . . 5,103 5,103 5,113
----------- ----------- -----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . 38,076,286 28,735,559 14,171,779
----------- ----------- -----------
LIABILITIES
Payable for securities purchased . . . . . . . . . . . . -- -- 108,017
Payable for capital shares redeemed. . . . . . . . . . . 500 27,448 --
Dividends payable. . . . . . . . . . . . . . . . . . . . 6,287 18,871 14,200
Accrued advisory fees (Note 3) . . . . . . . . . . . . . 18,530 11,752 3,659
Accrued administration fees (Note 3) . . . . . . . . . . 5,700 2,000 2,000
Other accrued expenses . . . . . . . . . . . . . . . . . 6,407 12,807 3,800
----------- ----------- -----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . 37,424 72,878 131,676
----------- ----------- -----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $38,038,862 $28,662,681 $14,040,103
----------- ----------- -----------
----------- ----------- -----------
Net assets consist of:
Capital shares . . . . . . . . . . . . . . . . . . . . . $30,787,024 $28,806,453 $13,958,806
Accumulated net realized gains (losses)
from security transactions. . . . . . . . . . . . . . . 500,767 (163,849) (203,769)
Undistributed net investment income. . . . . . . . . . . 712 3,224 --
Net unrealized appreciation on investments . . . . . . . 6,750,359 16,853 285,066
----------- ----------- -----------
Net assets . . . . . . . . . . . . . . . . . . . . . . . $38,038,862 $28,662,681 $14,040,103
----------- ----------- -----------
----------- ----------- -----------
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value). . . . . . . 1,414,015 1,363,819 1,371,942
----------- ----------- -----------
----------- ----------- -----------
Net asset value, offering price and
redemption price per share (Note 1) . . . . . . . . . . $ 26.90 $ 21.02 $ 10.23
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See accompanying notes to the financial statements.
1
<PAGE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
GOVERNMENT GOVERNMENT ALABAMA
STREET STREET TAX FREE
EQUITY BOND BOND
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest. . . . . . . . . . . . . . . . . . . . . . . $ 108,387 $ 1,035,359 $ 334,548
Dividends . . . . . . . . . . . . . . . . . . . . . . 365,129 -- --
------------ ------------ ------------
TOTAL INVESTMENT INCOME. . . . . . . . . . . . . . . 473,516 1,035,359 334,548
------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 3) . . . . . . . . . . 104,206 72,110 23,854
Administrative fees (Note 3). . . . . . . . . . . . . 33,418 12,000 12,000
Custodian fees. . . . . . . . . . . . . . . . . . . . 10,180 4,678 2,943
Professional fees . . . . . . . . . . . . . . . . . . 6,086 6,086 4,040
Pricing costs . . . . . . . . . . . . . . . . . . . . 732 5,911 7,092
Trustees' fees and expenses . . . . . . . . . . . . . 3,702 3,702 3,702
Registration fees . . . . . . . . . . . . . . . . . . 1,631 2,609 4,197
Printing of shareholder reports . . . . . . . . . . . 3,177 2,411 2,657
Postage and supplies. . . . . . . . . . . . . . . . . 1,499 2,814 2,125
Other expenses. . . . . . . . . . . . . . . . . . . . 1,278 5,226 497
------------ ------------ ------------
TOTAL EXPENSES . . . . . . . . . . . . . . . . . . . 165,909 117,547 63,107
Fees waived by the Adviser (Note 3) . . . . . . . . . -- -- 11,991
------------ ------------ ------------
NET EXPENSES . . . . . . . . . . . . . . . . . . . . 165,909 117,547 51,116
------------ ------------ ------------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . 307,607 917,812 283,432
------------ ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Net realized gains (losses)
from security transactions . . . . . . . . . . . . . 520,821 ( 11,658) ( 706)
Net change in unrealized appreciation/depreciation
on investments . . . . . . . . . . . . . . . . . . . 3,608,135 965,844 364,015
------------ ------------ ------------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS. . . . . . . . . . . . . . . . . . . . 4,128,956 954,186 363,309
------------ ------------ ------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $ 4,436,563 $ 1,871,998 $ 646,741
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See accompanying notes to the financial statements.
2
<PAGE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
PERIODS ENDED SEPTEMBER 30, 1995 AND MARCH 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT STREET GOVERNMENT STREET ALABAMA TAX FREE
EQUITY FUND BOND FUND BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED SEPT. 30, ENDED
1995 MARCH 31, 1995 MARCH 31, 1995 MARCH 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income . . . . . . . . . . . . . $ 307,607 $ 498,932 $ 917,812 $ 1,737,888 $ 283,432 $ 536,999
Net realized gains (losses)
from security transactions . . . . . . . . . . 520,821 102,880 (11,658) (127,816) (706) (200,904)
Net change in unrealized appreciation/
depreciation on investments . . . . . . . . . . 3,608,135 1,485,037 965,844 (519,326) 364,015 227,734
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets from operations . . . 4,436,563 2,086,849 1,871,998 1,090,746 646,741 563,829
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income. . . . . . . . . . . (308,521) (505,540) (917,053) (1,747,740) (283,432) (536,999)
----------- ----------- ----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS(a):
Proceeds from shares sold . . . . . . . . . . . 4,091,946 5,282,887 1,225,137 7,150,809 1,076,635 5,439,330
Net asset value of shares issued in
reinvestment of distributions
to shareholders. . . . . . . . . . . . . . . . 294,614 483,554 802,525 1,523,068 198,132 234,034
Payments for shares redeemed. . . . . . . . . . (1,949,128) (2,975,563) (2,099,872) (2,869,621) (414,190) (2,600,426)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets from
capital share transactions. . . . . . . . . . . 2,437,432 2,790,878 (72,210) 5,804,256 860,577 3,072,938
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . 6,565,474 4,372,187 882,735 5,147,262 1,223,886 3,099,768
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . 31,473,388 27,101,201 27,779,946 22,632,684 12,816,217 9,716,449
----------- ----------- ----------- ----------- ----------- -----------
End of period . . . . . . . . . . . . . . . . . $38,038,862 $31,473,388 $28,662,681 $27,779,946 $14,040,103 $12,816,217
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
UNDISTRIBUTED NET
INVESTMENT INCOME . . . . . . . . . . . . . . . $ 712 $ 1,626 $ 3,224 $ 2,465 $ -- $ --
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
(a) Summary of capital share activity follows:
Shares sold . . . . . . . . . . . . . . . . 160,146 233,786 58,539 347,246 106,318 552,156
Shares issued in reinvestment of
distributions to shareholders. . . . . . . 11,289 21,279 38,380 75,121 19,505 23,807
Shares redeemed . . . . . . . . . . . . . . (75,982) (130,780) (99,852) (140,040) (40,733) (264,286)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in shares
outstanding. . . . . . . . . . . . . . . . 95,453 124,285 (2,933) 282,327 85,090 311,677
Shares outstanding, beginning of period . . 1,318,562 1,194,277 1,366,752 1,084,425 1,286,852 975,175
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding, end of period . . . . . 1,414,015 1,318,562 1,363,819 1,366,752 1,371,942 1,286,852
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to the financial statements.
3
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED JUNE 3,
SEPT. 30, YEARS ENDED MARCH 31, 1991(a) TO
1995 ----------------------------------- MARCH 31,
(UNAUDITED) 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period . . . . . . $ 23.87 $ 22.69 $ 23.06 $ 21.37 $ 20.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income . . . . . . . . . . . . . . 0.23 0.38 0.30 0.34 0.28
Net realized and unrealized
gains (losses) on investments. . . . . . . . . . 3.03 1.19 (0.37) 1.71 1.35
-------- -------- -------- -------- --------
Total from investment operations . . . . . . . . . 3.26 1.57 (0.07) 2.05 1.63
-------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income. . . . . . . (0.23) (0.39) (0.30) (0.36) (0.26)
-------- -------- -------- -------- --------
Net asset value at end of period . . . . . . . . . $ 26.90 $ 23.87 $ 22.69 $ 23.06 $ 21.37
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return . . . . . . . . . . . . . . . . . . . 27.26%(c) 7.02% (0.31%) 9.66% 9.99%(c)
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Net assets at end of period (000's). . . . . . . . $ 38,039 $ 31,473 $ 27,101 $ 21,735 $ 14,971
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratio of expenses to average net assets (b). . . . 0.95%(c) 0.91% 1.00% 1.00% 1.00%(c)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . 1.77%(c) 1.71% 1.33% 1.55% 1.88%(c)
Portfolio turnover rate. . . . . . . . . . . . . . 42%(c) 55% 63% 59% 20%
</TABLE>
(a) Commencement of operations.
(b) Absent expenses reimbursed through a directed brokerage arrangement,
the ratios of expenses to average net assets would have been 1.00%,
1.16%, 1.20% and 1.18% for the periods ended March 31, 1995,
1994, 1993 and 1992, respectively. (Note 4).
(c) Annualized.
See accompanying notes to the financial statements.
4
<PAGE>
THE GOVERNMENT STREET BOND FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED JUNE 3,
SEPT. 30, YEARS ENDED MARCH 31, 1991(a) TO
1995 -------------------------------------- MARCH 31,
(UNAUDITED) 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period . . . . . . $ 20.33 $ 20.87 $ 21.77 $ 20.67 $20.00
------- ------- ------- -------- ------
Income from investment operations:
Net investment income . . . . . . . . . . . . . . 0.67 1.35 1.32 1.34 0.95
Net realized and unrealized
gains (losses) on investments. . . . . . . . . . 0.69 ( 0.53) (0.90) 1.10 0.67
------- ------- ------- -------- ------
Total from investment operations . . . . . . . . . 1.36 0.82 0.42 2.44 1.62
------- ------- ------- -------- ------
Less distributions:
Dividends from net investment income. . . . . . . (0.67) (1.36) (1.32) ( 1.33) (0.95)
Distributions from net realized gains . . . . . . -- -- -- (0.01) --
------- ------- ------- -------- ------
Total distributions. . . . . . . . . . . . . . . . (0.67) (1.36) (1.32) ( 1.34) (0.95)
------- ------- ------- -------- ------
Net asset value at end of period . . . . . . . . . $ 21.02 $ 20.33 $ 20.87 $ 21.77 $20.67
------- ------- ------- -------- ------
------- ------- ------- -------- ------
Total return . . . . . . . . . . . . . . . . . . . 13.47%(c) 4.12% 1.85% 12.14% 9.95%(c)
------- ------- ------- -------- ------
------- ------- ------- -------- ------
Net assets at end of period (000's). . . . . . . . $28,663 $27,780 $22,633 $15,955 $6,506
------- ------- ------- -------- ------
------- ------- ------- -------- ------
Ratio of expenses to average net assets(b) . . . . 0.81%(c) 0.85% 0.86% 0.88% 0.93%(c)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . 6.36%(c) 6.68% 6.15% 6.44% 7.02%(c)
Portfolio turnover rate. . . . . . . . . . . . . . 8%(c) 11% 10% 17% 15%
</TABLE>
(a) Commencement of operations.
(b) Absent investment advisory fees waived by the Adviser, the ratios of
expenses to average net assets would have been 1.03%, 1.09% and 1.30%
for the periods ended March 31, 1994, 1993 and 1992, respectively. (Note
4).
(c) Annualized.
See accompanying notes to the financial statements.
5
<PAGE>
THE ALABAMA TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR SEVEN MONTHS JANUARY 15,
SEPT. 30, ENDED ENDED 1993(b) TO
1995 MARCH 31, MARCH 31, AUGUST 31,
(UNAUDITED) 1995 1994(a) 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period . . . . . . . . $ 9.96 $ 9.96 $10.30 $10.00
------- ------- ------ -----
Income from investment operations:
Net investment income . . . . . . . . . . . . . . . . 0.21 0.45 0.26 0.23
Net realized and unrealized
gains (losses) on investments. . . . . . . . . . . . 0.27 -- (0.34) 0.30
------- ------- ------ ------
Total from investment operations . . . . . . . . . . . 0.48 0.45 (0.08) 0.53
------- ------- ------ ------
Less distributions:
Dividends from net investment income. . . . . . . . . (0.21) (0.45) (0.26) (0.23)
------- ------- ------ ------
Net asset value at end of period . . . . . . . . . . . $ 10.23 $ 9.96 $ 9.96 $10.30
------- ------- ------ ------
------- ------- ------ ------
Total return . . . . . . . . . . . . . . . . . . . . . 9.71%(d) 4.66% (1.50%)(d) 8.79%(d)
------- ------- ------ ------
------- ------- ------ ------
Net assets at end of period (000's). . . . . . . . . . $14,040 $12,816 $9,716 $3,429
------- ------- ------ ------
------- ------- ------ ------
Ratio of expenses to average net assets(c) . . . . . . 0.75% (d) 0.75% 0.75% (d) 0.75% (d)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 4.16% (d) 4.56% 4.46% (d) 4.01% (d)
Portfolio turnover rate. . . . . . . . . . . . . . . . 4% (d) 36% 3% 2%
</TABLE>
(a) Effective April 1, 1994, the Fund was reorganized and changed its fiscal
year end to March 31. (Note 5).
(b) Commencement of operations.
(c) Absent investment advisory fees waived and/or expenses reimbursed by
the Adviser, the ratios of expenses to average net assets would have been
0.93%(d), 1.05%, 1.76%(d) and 2.75%(d) for the periods ended September
30, 1995, March 31, 1995, March 31, 1994 and August 31, 1993,
respectively. (Note 3).
(d) Annualized.
See accompanying notes to the financial statements.
6
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SHARES COMMON STOCKS - 90.8% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS AND DRUGS - 19.4%
13,000 Becton Dickinson & Company. . . . . . . . . . . . . . $ 817,375
12,000 Biomet, Inc.(a) . . . . . . . . . . . . . . . . . . . 207,000
15,375 Cardinal Health, Inc. . . . . . . . . . . . . . . . . 851,391
14,000 duPont (E.I.) de Nemours & Company. . . . . . . . . . 962,500
10,000 First Mississippi Corporation . . . . . . . . . . . . 398,750
6,000 Goodrich (B.F.) Company . . . . . . . . . . . . . . . 395,250
6,000 Johnson & Johnson . . . . . . . . . . . . . . . . . . 444,750
14,000 PPG Industries, Inc. . . . . . . . . . . . . . . . . 651,000
7,600 Schering-Plough . . . . . . . . . . . . . . . . . . . 391,400
24,000 Schulman (A.), Inc. . . . . . . . . . . . . . . . . . 600,000
13,500 Sigma-Aldrich . . . . . . . . . . . . . . . . . . . . 654,750
12,000 Union Carbide Corporation . . . . . . . . . . . . . . 477,000
15,000 U. S. HealthCare, Inc.. . . . . . . . . . . . . . . . 530,625
----------
7,381,791
----------
CONSTRUCTION - 4.6%
6,000 Blount, Inc. - Class A. . . . . . . . . . . . . . . . 285,750
11,000 Caterpiller, Inc. . . . . . . . . . . . . . . . . . . 625,625
13,000 Clayton Homes, Inc. . . . . . . . . . . . . . . . . . 308,750
13,800 Valspar Corporation . . . . . . . . . . . . . . . . . 527,850
----------
1,747,975
----------
CONSUMER PRODUCTS - 11.7%
19,650 Archer-Daniels-Midland Company. . . . . . . . . . . . 302,119
13,000 Belo (A.H.) Corporation - Class A . . . . . . . . . . 446,875
18,000 Gillette Company. . . . . . . . . . . . . . . . . . . 857,250
11,100 Kimberly-Clark Corporation. . . . . . . . . . . . . . 745,087
11,000 Motorola, Inc.. . . . . . . . . . . . . . . . . . . . 840,125
13,300 Polygram NV . . . . . . . . . . . . . . . . . . . . . 867,825
5,000 Procter & Gamble Company. . . . . . . . . . . . . . . 385,000
----------
4,444,281
----------
DURABLE GOODS - 15.0%
12,000 AMP, Inc. . . . . . . . . . . . . . . . . . . . . . . 462,000
8,250 Cabletron Systems, Inc.(a). . . . . . . . . . . . . . 543,469
13,400 Cisco Systems, Inc.(a). . . . . . . . . . . . . . . . 924,600
4,100 International Business Machines Corporation . . . . . 386,937
11,400 Loral Corporation . . . . . . . . . . . . . . . . . . 649,800
10,000 McDonnell Douglas Corporation . . . . . . . . . . . . 827,500
6,000 Philips Electronics N.V.(a). . . . . . . . . . . . . 292,500
4,000 Raytheon Company. . . . . . . . . . . . . . . . . . . 340,000
17,000 Shared Medical Systems, Inc.. . . . . . . . . . . . . 705,500
13,000 Stewart & Stevenson Services, Inc.. . . . . . . . . . 419,250
2,000 Texas Instruments, Inc. . . . . . . . . . . . . . . . 159,750
----------
5,711,306
----------
FINANCIAL - 5.0%
9,500 AFLAC, Inc. . . . . . . . . . . . . . . . . . . . . . 394,250
8,000 American Express Company. . . . . . . . . . . . . . . 355,000
2,500 General Re Corporation. . . . . . . . . . . . . . . . 377,500
14,500 Star Banc Corporation . . . . . . . . . . . . . . . . 775,750
----------
1,902,500
----------
FOOD/BEVERAGES - 1.7%
18,000 Coca-Cola Enterprises . . . . . . . . . . . . . . . . 443,250
15,000 Hudson Foods, Inc. - Class A. . . . . . . . . . . . . 208,125
----------
651,375
----------
</TABLE>
7
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
SHARES COMMON STOCKS - 90.8% VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
METALS AND MINING - 5.4%
7,500 Aluminum Company of America. . . . . . . . . . . .$ 396,562
14,200 Broken Hill Proprietary Company, LTD . . . . . . . 777,450
13,600 Freeport McMoran, Inc(a) . . . . . . . . . . . . . 76,500
497 Freeport McMoran Copper & Gold, Inc. . . . . . . . 12,736
9,543 Freeport McMoran Copper & Gold, Inc. - Class B(a). 244,539
21,100 Placer Dome, Inc.. . . . . . . . . . . . . . . . . 553,875
----------
2,061,662
----------
OIL/ENERGY - 11.1%
12,500 Amoco Corporation. . . . . . . . . . . . . . . . . 801,563
6,000 Atlantic Richfield Company . . . . . . . . . . . . 644,250
13,000 Chevron Corporation . . . . . . . . . . . . . . . 632,125
7,325 Exxon Corporation. . . . . . . . . . . . . . . . . 529,231
6,000 Kerr McGee Corporation . . . . . . . . . . . . . . 333,000
9,500 Shell Transport & Trading PLC. . . . . . . . . . . 680,438
19,000 Sonat, Inc.. . . . . . . . . . . . . . . . . . . . 608,000
----------
4,228,607
----------
RETAIL - 2.7%
2,040 Bruno's, Inc(a). . . . . . . . . . . . . . . . . . 23,207
3,000 Nike, Inc. - Class B . . . . . . . . . . . . . . . 333,375
10,000 Wal-Mart Stores, Inc.. . . . . . . . . . . . . . . 248,750
15,000 Walgreen Company . . . . . . . . . . . . . . . . . 420,000
----------
1,025,332
----------
SERVICES - COMPUTER PROCESSING - 1.2%
7,000 AutoDesk, Inc. . . . . . . . . . . . . . . . . . . 306,250
2,000 Automatic Data Processing, Inc.. . . . . . . . . . 136,250
----------
442,500
----------
TRANSPORTATION - 2.0%
7,000 Federal Express Corporation(b) . . . . . . . . . . 581,000
10,000 JB Hunt Transport Services, Inc. . . . . . . . . . 151,250
----------
732,250
----------
UTILITIES - 11.0%
10,000 Ameritech Corporation. . . . . . . . . . . . . . . 521,250
11,000 AT&T Company . . . . . . . . . . . . . . . . . . . 723,250
12,800 Consolidated Edison Company of New York, Inc.. . . 388,800
19,400 DPL, Inc.. . . . . . . . . . . . . . . . . . . . . 448,625
14,890 Duke Power Company . . . . . . . . . . . . . . . . 645,854
8,000 Hong Kong Telecommunications, LTD. . . . . . . . . 146,000
20,000 Nicor, Inc.. . . . . . . . . . . . . . . . . . . . 545,000
14,000 SBC Communications, Inc. . . . . . . . . . . . . . 770,000
----------
4,188,779
----------
TOTAL COMMON STOCKS (Cost $27,767,999). . . . . . .$34,518,358
----------
</TABLE>
8
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
FACE
AMOUNT REPURCHASE AGREEMENTS(b) - 9.1% VALUE
- ------------------------------------------------------------------------------
<S> <C> <C>
Daiwa Securities,
$3,466,681 6.45%, dated 09/29/1995, due 10/02/1995,
repurchase proceeds $3,468,544 (Cost $3,466,681). . $ 3,466,681
-----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS
AT VALUE 99.9%. . . . . . . . . . . . . . . . . . . $37,985,039
OTHER ASSETS IN EXCESS OF LIABILITIES - .1% . . . . . 53,823
-----------
NET ASSETS - 100.0% . . . . . . . . . . . . . . . . . $38,038,862
-----------
-----------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015. The aggregate market value of the
collateral at September 30, 1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $3,551,336.
(b) Non-income producing security.
See accompanying notes to the financial statements.
9
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
- ------------------------------------------------------------------
PAR VALUE U.S. TREASURY AND AGENCY OBLIGATIONS - 43.4% VALUE
- ------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES - 23.0%
$ 60,000 8.50%, due 11/15/1995. . . . . . . . . . $ 60,225
55,000 7.50%, due 01/31/1996. . . . . . . . . . 55,344
10,000 7.875%, due 02/15/1996 . . . . . . . . . 10,081
550,000 7.75%, due 03/31/1996. . . . . . . . . . 555,500
390,000 7.625%, due 05/31/1996 . . . . . . . . . 394,753
500,000 7.00%, due 09/30/1996. . . . . . . . . . 506,250
325,000 8.00%, due 10/15/1996. . . . . . . . . . 332,312
50,000 6.125%, due 12/31/1996 . . . . . . . . . 50,234
50,000 8.00%, due 01/15/1997. . . . . . . . . . 51,359
150,000 6.25%, due 01/31/1997. . . . . . . . . . 150,891
800,000 6.875%, due 03/31/1997 . . . . . . . . . 812,250
975,000 6.75%, due 05/31/1997. . . . . . . . . . 989,016
40,000 8.50%, due 07/15/1997. . . . . . . . . . 41,762
65,000 8.75%, due 10/15/1997. . . . . . . . . . 68,534
10,000 7.875%, due 01/15/1998 . . . . . . . . . 10,422
70,000 7.875%, due 04/15/1998 . . . . . . . . . 73,216
50,000 8.25%, due 07/15/1998. . . . . . . . . . 52,953
855,000 7.125%, due 10/15/1998 . . . . . . . . . 883,589
225,000 7.00%, due 04/15/1999. . . . . . . . . . 232,312
150,000 6.375%, due 07/15/1999 . . . . . . . . . 151,969
100,000 8.00%, due 08/15/1999. . . . . . . . . . 106,875
200,000 6.00%, due 10/15/1999. . . . . . . . . . 200,125
250,000 7.50%, due 10/31/1999. . . . . . . . . . 263,281
50,000 7.875%, due 11/15/1999 . . . . . . . . . 53,375
100,000 8.50%, due 02/15/2000. . . . . . . . . . 109,500
20,000 8.75%, due 08/15/2000. . . . . . . . . . 22,262
50,000 8.50%, due 11/15/2000. . . . . . . . . . 55,313
140,000 8.00%, due 05/15/2001. . . . . . . . . . 152,687
125,000 7.875%, due 08/15/2001 . . . . . . . . . 136,133
---------
6,582,523
---------
U.S. TREASURY STRIPS - 2.1%
Coupon Treasury Investment Growth Security,
11,000 due 05/15/1996. . . . . . . . . . . . . 10,627
37,188 due 11/15/1996. . . . . . . . . . . . . 34,856
13,140 due 02/15/1997. . . . . . . . . . . . . 12,145
11,000 due 08/15/1998. . . . . . . . . . . . . 9,289
---------
66,917
---------
Government Trust Certificate,
16,000 due 05/15/1996. . . . . . . . . . . . . 15,451
---------
Treasury Investment Growth Receipts,
17,000 due 11/15/1996. . . . . . . . . . . . . 15,939
---------
U.S. Treasury Security Stripped Coupon Payment,
114,000 due 11/15/1998. . . . . . . . . . . . . 94,915
124,000 due 11/15/1999. . . . . . . . . . . . . 97,159
135,000 due 11/15/2000. . . . . . . . . . . . . 99,548
147,000 due 11/15/2001. . . . . . . . . . . . . 101,649
161,000 due 11/15/2002. . . . . . . . . . . . . 104,457
---------
497,728
---------
Total U.S. Treasury Strips. . . . . . . . 596,035
---------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PAR VALUE U.S. TREASURY AND AGENCY OBLIGATIONS - 43.4% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL HOME LOAN BANK BONDS - 2.2%
$100,000 7.75%, due 04/25/1996................................ $ 101,044
500,000 7.57%, due 08/19/2004................................ 535,267
-----------
636,311
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION BONDS - 8.6%
50,000 7.60%, due 01/10/1997................................ 51,008
750,000 7.85%, due 09/10/1998................................ 782,942
100,000 8.45%, due 07/12/1999................................ 107,252
200,000 5.98%, due 03/22/2000................................ 194,726
50,000 8.625%, due 04/10/2001............................... 50,502
250,000 8.70%, due 06/11/2001................................ 253,570
600,000 7.20%, due 01/10/2002................................ 601,777
175,000 7.90%, due 04/10/2002................................ 179,025
250,000 7.00%, due 08/12/2002................................ 251,048
-----------
2,471,850
-----------
PRIVATE EXPORT FUNDING BONDS - 2.0%
75,000 9.00%, due 01/31/1996................................ 75,824
470,000 7.90%, due 03/31/2000................................ 499,998
-----------
575,822
-----------
TENNESSEE VALLEY AUTHORITY BONDS - 5.5%
799,000 7.45%, due 10/15/2001................................ 818,381
745,000 6.875%, due 01/15/2002............................... 748,844
-----------
1,567,225
-----------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS
(Cost $12,515,059)................................... $12,429,766
-----------
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PAR VALUE MORTGAGE-BACKED SECURITIES - 1.7% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - .3%
$100,000 Series #G92-40, class G, 7.00%, due 07/25/2002....... $ 100,130
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .6%
43,372 Pool #15032, 7.50%, due 02/15/2007................... 43,765
31,107 Pool #176413, 7.50%, due 09/15/2016.................. 31,389
64,127 Pool #170784, 8.00%, due 12/15/2016.................. 65,931
39,128 Pool #181540, 8.00%, due 02/15/2017.................. 40,229
-----------
181,314
-----------
OTHER MORTGAGE-BACKED SECURITIES - .8%
Collateralized Mortgage Securities Corporation,
17,379 Series 1991-7F, 8.00%, due 09/20/2019.............. 17,347
200,000 Series 1991-8PF, 7.30%, due 08/20/2020............. 202,078
-----------
219,425
-----------
TOTAL MORTGAGE-BACKED SECURITIES (COST $501,814)....... $ 500,869
-----------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PAR VALUE CORPORATE BONDS - 52.4% VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - 28.3%
American Express Company,
$ 350,000 8.50%, due 08/15/2001............................. $ 383,673
-----------
American Express Credit,
250,000 7.75%, due 03/01/1997............................ 255,354
-----------
AmSouth Bancorp,
425,000 9.375%, due 05/01/1999............................ 460,785
300,000 7.75%, due 05/15/2004............................. 313,391
-----------
774,176
-----------
Associates Corporation, N.A.,
50,000 9.00%, due 12/15/1995............................. 50,296
255,000 6.625%, due 11/15/1997............................ 257,207
300,000 8.80%, due 08/01/1998............................. 319,405
-----------
626,908
-----------
BankAmerica Corporation,
496,000 8.375%, due 03/15/2002............................ 537,736
-----------
Bear Stearns Company,
170,000 9.375%, due 06/01/2001............................ 190,558
-----------
Chevron Capital Corporation,
500,000 7.45%, due 08/15/2004............................. 518,931
-----------
Ford Motor Credit Corporation,
500,000 7.875%, due 01/15/1997............................ 509,496
-----------
General Electric Capital Corporation,
50,000 7.875%, due 05/01/1996............................ 50,573
110,000 8.75%, due 11/26/1996............................. 113,207
100,000 7.24%, due 01/15/2002............................. 103,882
150,000 7.50%, due 03/15/2002............................. 157,725
-----------
425,387
-----------
Merrill Lynch & Company, Inc.,
745,000 7.375%, due 08/17/2002............................ 767,320
-----------
Regions Financial,
250,000 7.80%, due 12/01/2002............................. 261,739
-----------
Salomon, Inc.,
400,000 7.25%, due 01/15/2000............................. 398,785
480,000 7.50%, due 02/01/2003............................. 472,894
-----------
871,679
-----------
Transamerica Financial Corporation,
785,000 7.50%, due 03/15/2004............................. 817,680
-----------
Wachovia Corporation,
1,135,000 7.00%, due 12/15/1999............................. 1,161,423
-----------
TOTAL FINANCE CORPORATE BONDS......................... 8,102,060
-----------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Par Value CORPORATE BONDS - 52.4% Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL - 20.7%
Baxter Travenol Labs, Inc.,
50,000 9.25%, due 09/15/1996.............................. 51,446
----------
BP America Inc.,
265,000 8.50%, due 04/15/2001.............................. 290,426
----------
Coca-Cola Company,
401,000 7.875%, due 09/15/1998............................. 418,634
----------
duPont (E.I.) de Nemours & Company,
270,000 8.45%, due 10/15/1996.............................. 276,714
150,000 9.15%, due 04/15/2000.............................. 165,990
200,000 6.75%, due 10/15/2002.............................. 202,470
----------
645,174
----------
Exxon Capital Corporation,
100,000 7.875%, due 04/15/1996............................ 101,030
----------
Hanson Overseas,
1,100,000 7.375%, due 01/15/2003............................ 1,140,788
----------
International Business Machines Corporation,
700,000 7.25%, due 11/01/2002............................. 726,171
----------
International Paper Company,
30,000 9.625%, due 10/15/1995............................. 30,033
----------
Kimberly-Clark Corporation,
240,000 8.625%, due 05/01/2001............................. 264,662
----------
Limited, Inc.,
150,000 8.875%, due 08/15/1999............................. 161,038
----------
Merck & Company, Inc.,
205,000 7.75%, due 05/01/1996.............................. 207,180
----------
Mobil Corporation,
100,000 8.375%, due 02/12/2001............................. 108,910
----------
Philip Morris Companies, Inc.,
150,000 8.75%, due 06/15/1997.............................. 156,009
305,000 7.375%, due 02/15/1999............................. 311,723
175,000 7.75%, due 05/01/1999.............................. 181,702
----------
649,434
----------
Procter & Gamble Company,
150,000 8.70%, due 08/01/2001.............................. 166,281
----------
Wal-Mart Stores, Inc.,
160,000 8.00%, due 05/01/1996.............................. 161,898
170,000 9.10%, due 07/15/2000.............................. 188,933
100,000 8.625%, due 04/01/2001............................. 109,778
500,000 7.50%, due 05/15/2004.............................. 526,959
----------
987,568
----------
TOTAL INDUSTRIAL CORPORATE BONDS....................... 5,948,775
----------
</TABLE>
13
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
PAR VALUE CORPORATE BONDS - 52.4% VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Utility - 3.4%
Appalachian Power Company,
25,000 7.50%, due 12/01/1998. . . . . . . . . . . . . . . . . 25,253
-----------
Consolidated Edison,
785,000 7.60%, due 01/15/2000. . . . . . . . . . . . . . . . . 815,788
-----------
Florida Power & Light Company,
50,000 9.625%, due 11/01/2000 . . . . . . . . . . . . . . . . 51,463
-----------
Pennsylvania Power & Light Company,
86,000 8.125%, due 06/01/1999 . . . . . . . . . . . . . . . . 86,940
-----------
Total Utility Corporate Bonds. . . . . . . . . . . . . . 979,444
-----------
Total Corporate Bonds (Cost $14,927,188) . . . . . . . . $15,030,279
-----------
Total Investments at Value (Cost $27,944,061) - 97.5%. . $27,960,914
-----------
<CAPTION>
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
FACE
AMOUNT REPURCHASE AGREEMENTS(a) - .5% VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Daiwa Securities,
$137,332 6.45%, dated 09/29/1995, due 10/02/1995,
repurchase proceeds $137,406 (Cost $137,332) . . . . . $ 137,332
-----------
Total Investments and Repurchase Agreements at Value - 98 $28,098,246
Other Assets in Excess of Liabilities - 2.0% . . . . . . 564,435
-----------
Net Assets - 100.0%. . . . . . . . . . . . . . . . . . . $28,662,681
-----------
-----------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015. The aggregate market value of the
collateral at September 30, 1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $140,685.
See accompanying notes to the financial statements.
14
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
PRINCIPAL ALABAMA FIXED RATE REVENUE AND GENERAL
AMOUNT OBLIGATION (GO) BONDS - 96.9% VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Alabama Housing Finance Auth. Rev.,
$ 5,000 10.00%, due 12/01/1996 . . . . . . . . . . . . . . . . . . . . $ 5,128
25,000 6.00%, due 10/01/1997. . . . . . . . . . . . . . . . . . . . . 25,495
245,000 4.90%, due 10/01/1998. . . . . . . . . . . . . . . . . . . . . 249,236
25,000 6.45%, due 04/01/2001. . . . . . . . . . . . . . . . . . . . . 26,102
--------
305,961
--------
Alabama Mental Health Finance Auth. Special Tax,
300,000 5.00%, due 05/01/2006. . . . . . . . . . . . . . . . . . . . . 296,589
--------
Alabama State GO,
100,000 5.90%, due 03/01/1999. . . . . . . . . . . . . . . . . . . . . 105,037
100,000 5.70%, due 12/01/2002. . . . . . . . . . . . . . . . . . . . . 106,600
--------
211,637
--------
Alabama State Corrections Institutions Rev.,
100,000 4.20%, due 04/01/1998. . . . . . . . . . . . . . . . . . . . . 100,070
--------
Alabama State Industrial Access Road & Bridge Corp. GO,
100,000 4.00%, due 06/01/1998. . . . . . . . . . . . . . . . . . . . . 98,822
85,000 5.25%, due 06/01/2003. . . . . . . . . . . . . . . . . . . . . 86,334
--------
185,156
--------
Alabama State Mun. Elec. Auth. Power Supply Rev.,
150,000 5.625%, due 09/01/2000 . . . . . . . . . . . . . . . . . . . . 157,639
300,000 5.75%, due 09/01/2001. . . . . . . . . . . . . . . . . . . . . 318,492
400,000 6.50%, due 09/01/2005, prerefunded 09/01/2001. . . . . . . . . 444,900
--------
921,031
--------
Alabama State Public School & College Auth. Rev.,
100,000 4.40%, due 12/01/2000. . . . . . . . . . . . . . . . . . . . . 99,720
50,000 5.00%, due 12/01/2005. . . . . . . . . . . . . . . . . . . . . 50,313
--------
150,033
--------
Alabama Water Pollution Control Rev.,
150,000 4.60%, due 02/15/1997. . . . . . . . . . . . . . . . . . . . . 150,847
160,000 3.75%, due 08/15/1997. . . . . . . . . . . . . . . . . . . . . 158,677
25,000 7.00%, due 08/15/2001. . . . . . . . . . . . . . . . . . . . . 26,978
200,000 6.25%, due 08/15/2004. . . . . . . . . . . . . . . . . . . . . 219,234
--------
555,736
--------
Anniston, AL, GO,
250,000 5.50%, due 01/01/2004. . . . . . . . . . . . . . . . . . . . . 256,817
--------
Anniston, AL, Regional Medical Center Board Hospital Rev.,
40,000 7.375%, due 07/01/2006, ETM. . . . . . . . . . . . . . . . . . 44,074
--------
Auburn University, Alabama Rev.,
25,000 6.10%, due 06/01/1999. . . . . . . . . . . . . . . . . . . . . 26,329
50,000 4.90%, due 06/01/2001. . . . . . . . . . . . . . . . . . . . . 50,962
150,000 5.20%, due 06/01/2004. . . . . . . . . . . . . . . . . . . . . 153,137
300,000 5.25%, due 04/01/2005. . . . . . . . . . . . . . . . . . . . . 305,613
--------
536,041
--------
Baldwin Co., AL, GO,
200,000 5.85%, due 08/01/2003. . . . . . . . . . . . . . . . . . . . . 214,920
--------
Baldwin Co., AL, Board of Education Rev.,
50,000 5.40%, due 12/01/1998. . . . . . . . . . . . . . . . . . . . . 51,313
300,000 5.90%, due 12/01/2001. . . . . . . . . . . . . . . . . . . . . 313,380
--------
364,693
--------
</TABLE>
15
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
PRINCIPAL ALABAMA FIXED RATE REVENUE AND GENERAL
AMOUNT OBLIGATION (GO) BONDS - 96.9% VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Birmingham, AL, GO,
$100,000 5.80%, due 04/01/2002 . . . . . . . . . . . . . . . . . . . . $106,333
200,000 5.90%, due 04/01/2003 . . . . . . . . . . . . . . . . . . . . 214,246
--------
320,579
--------
Birmingham, AL, Special Facilities Rev.,
100,000 4.45%, due 06/01/1999 . . . . . . . . . . . . . . . . . . . . 100,195
100,000 4.75%, due 06/01/2001 . . . . . . . . . . . . . . . . . . . . 100,610
--------
200,805
--------
Birmingham, AL, Industrial Water Board Rev.,
100,000 5.00%, due 03/01/2001 . . . . . . . . . . . . . . . . . . . . 101,082
100,000 6.00%, due 07/01/2007 . . . . . . . . . . . . . . . . . . . . 106,779
--------
207,861
--------
Birmingham, AL, Medical Clinic Board Rev.,
60,000 7.30%, due 07/01/2005, ETM. . . . . . . . . . . . . . . . . . 67,005
--------
Birmingham, AL, Waterworks & Sewer Board Rev.,
100,000 4.40%, due 01/01/2001 . . . . . . . . . . . . . . . . . . . . 98,884
50,000 5.90%, due 01/01/2003 . . . . . . . . . . . . . . . . . . . . 53,332
50,000 4.60%, due 01/01/2004 . . . . . . . . . . . . . . . . . . . . 48,690
300,000 6.15%, due 01/01/2006 . . . . . . . . . . . . . . . . . . . . 320,457
--------
521,363
--------
DCH Health Care Auth. of Alabama Rev.,
55,000 5.00%, due 06/01/2004 . . . . . . . . . . . . . . . . . . . . 54,996
--------
Hoover, AL, Board of Education GO,
100,000 4.10%, due 02/15/1997 . . . . . . . . . . . . . . . . . . . . 100,061
400,000 6.00%, due 02/15/2006 . . . . . . . . . . . . . . . . . . . . 427,872
--------
527,933
--------
Hoover, AL, Board of Education Special Tax,
200,000 6.625%, due 02/01/2010, prerefunded 02/01/2001. . . . . . . . 222,604
--------
Houston Co., AL, GO,
100,000 4.20%, due 10/01/1998 . . . . . . . . . . . . . . . . . . . . 99,692
250,000 5.00%, due 07/01/2002 . . . . . . . . . . . . . . . . . . . . 253,557
--------
353,249
--------
Huntsville, AL, GO,
40,000 4.50%, due 12/01/1996 . . . . . . . . . . . . . . . . . . . . 40,311
115,000 5.15%, due 08/01/2000 . . . . . . . . . . . . . . . . . . . . 118,211
100,000 5.20%, due 11/01/2000 . . . . . . . . . . . . . . . . . . . . 103,147
100,000 5.30%, due 08/01/2001 . . . . . . . . . . . . . . . . . . . . 103,593
500,000 5.50%, due 11/01/2002 . . . . . . . . . . . . . . . . . . . . 524,465
100,000 5.90%, due 11/01/2005 . . . . . . . . . . . . . . . . . . . . 106,729
--------
996,456
--------
Huntsville, AL, Electric Systems Rev.,
150,000 6.10%, due 12/01/2000 . . . . . . . . . . . . . . . . . . . . 160,026
150,000 5.00%, due 12/01/2003 . . . . . . . . . . . . . . . . . . . . 150,987
--------
311,013
--------
Huntsville, AL, Water Systems Rev.,
150,000 5.25%, due 05/01/2005 . . . . . . . . . . . . . . . . . . . . 151,539
--------
Jefferson Co., AL, GO,
100,000 5.55%, due 04/01/2002 . . . . . . . . . . . . . . . . . . . . 104,147
50,000 4.75%, due 04/01/2002 . . . . . . . . . . . . . . . . . . . . 49,751
100,000 5.00%, due 04/01/2004 . . . . . . . . . . . . . . . . . . . . 99,998
--------
253,896
--------
</TABLE>
16
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
PRINCIPAL ALABAMA FIXED RATE REVENUE AND GENERAL
AMOUNT OBLIGATION (GO) BONDS - 96.9% VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Jefferson Co., AL, Sewer Rev.,
$140,000 5.15%, due 09/01/2002. . . . . . . . . . . . . . . . . . . . . $144,515
50,000 5.50%, due 09/01/2003. . . . . . . . . . . . . . . . . . . . . 52,215
300,000 5.75%, due 09/01/2005. . . . . . . . . . . . . . . . . . . . . 315,576
--------
512,306
--------
Lee Co., AL, GO,
300,000 5.50%, due 02/01/2007. . . . . . . . . . . . . . . . . . . . . 306,066
--------
Madison, AL, Board of Education School Warrants,
100,000 5.00%, due 02/01/1999. . . . . . . . . . . . . . . . . . . . . 102,149
--------
Madison, AL, Warrants,
325,000 5.55%, due 04/01/2007. . . . . . . . . . . . . . . . . . . . . 333,057
--------
Madison Co., AL, Board of Education Cap. Outlay Tax Antic.
175,000 Warrants, 5.20%, due 09/01/2004. . . . . . . . . . . . . . . . 180,278
--------
Mobile, AL, GO,
200,000 5.00%, due 08/15/1998. . . . . . . . . . . . . . . . . . . . . 204,338
150,000 5.20%, due 02/15/1999. . . . . . . . . . . . . . . . . . . . . 154,194
200,000 5.40%, due 08/15/2000. . . . . . . . . . . . . . . . . . . . . 208,502
25,000 6.25%, due 08/01/2001. . . . . . . . . . . . . . . . . . . . . 27,156
25,000 6.30%, due 08/01/2001. . . . . . . . . . . . . . . . . . . . . 27,219
--------
621,409
--------
Mobile, AL, Water & Sewer Commrs. Rev.,
55,000 6.30%, due 01/01/2003. . . . . . . . . . . . . . . . . . . . . 59,614
--------
Mobile, AL, Water & Sewer Rev.,
25,000 7.00%, due 01/01/1996. . . . . . . . . . . . . . . . . . . . . 25,199
200,000 7.00%, due 01/01/2000. . . . . . . . . . . . . . . . . . . . . 205,540
--------
230,739
--------
Mobile Co., AL, GO,
100,000 4.80%, due 02/01/2002. . . . . . . . . . . . . . . . . . . . . 100,373
50,000 6.10%, due 02/01/2002, prerefunded 02/01/2000. . . . . . . . . 53,901
160,000 6.70%, due 02/01/2011, prerefunded 02/01/2000. . . . . . . . . 176,491
--------
330,765
--------
Mobile Co., AL, Gas Tax Antic. Warrants Rev.,
100,000 3.80%, due 02/01/1998. . . . . . . . . . . . . . . . . . . . . 99,069
100,000 4.50%, due 02/01/2003. . . . . . . . . . . . . . . . . . . . . 97,013
--------
196,082
--------
Montgomery, AL, GO,
200,000 4.25%, due 05/01/1999, ETM . . . . . . . . . . . . . . . . . . 198,678
200,000 4.70%, due 05/01/2002. . . . . . . . . . . . . . . . . . . . . 198,872
--------
397,550
--------
Montgomery, AL, Waterworks & Sanitation Rev.,
200,000 5.85%, due 03/01/2023. . . . . . . . . . . . . . . . . . . . . 211,694
--------
Montgomery Co., AL, GO,
100,000 5.20%, due 11/01/2006. . . . . . . . . . . . . . . . . . . . . 99,994
--------
Opelika, AL, GO,
100,000 4.60%, due 03/01/2003. . . . . . . . . . . . . . . . . . . . . 99,067
100,000 5.30%, due 07/01/2003. . . . . . . . . . . . . . . . . . . . . 103,919
--------
202,986
--------
</TABLE>
17
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
PRINCIPAL ALABAMA FIXED RATE REVENUE AND GENERAL
AMOUNT OBLIGATION (GO) BONDS - 96.9% VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Ozark, AL, Industrial Development Board Rev.,
$ 50,000 7.00%, due 06/01/1996. . . . . . . . . . . . . . . . . . . . . . . . $ 50,647
-----------
Shelby Co., AL, GO,
205,000 5.20%, due 08/01/2000. . . . . . . . . . . . . . . . . . . . . . . . 210,043
50,000 5.35%, due 08/01/2001. . . . . . . . . . . . . . . . . . . . . . . . 51,871
-----------
261,914
-----------
Shelby Co., AL, Hospital Board Rev.,
35,000 6.60%, due 02/01/2001, ETM . . . . . . . . . . . . . . . . . . . . . 38,226
25,000 6.60%, due 02/01/2002. . . . . . . . . . . . . . . . . . . . . . . . 27,561
40,000 6.60%, due 02/01/2003. . . . . . . . . . . . . . . . . . . . . . . . 44,432
-----------
110,219
-----------
Shelby Co., AL, Board of Education Cap. Outlay Special Tax Warrants,
100,000 4.80%, due 02/01/1998. . . . . . . . . . . . . . . . . . . . . . . . 100,895
-----------
Tuscaloosa, AL, Board of Education GO,
100,000 5.10%, due 02/01/2004. . . . . . . . . . . . . . . . . . . . . . . . 101,348
-----------
Tuscaloosa, AL, Board of Education Special Tax Warrants,
75,000 5.70%, due 02/15/2005. . . . . . . . . . . . . . . . . . . . . . . . 78,885
-----------
University of Alabama General Fee Series A Rev.,
250,000 4.15%, due 10/01/1999. . . . . . . . . . . . . . . . . . . . . . . . 247,635
50,000 5.00%, due 11/01/2000. . . . . . . . . . . . . . . . . . . . . . . . 51,033
100,000 4.60%, due 10/01/2001. . . . . . . . . . . . . . . . . . . . . . . . 99,843
200,000 5.10%, due 10/01/2002. . . . . . . . . . . . . . . . . . . . . . . . 204,368
-----------
602,879
-----------
Vestavia Hills, AL, Board of Education Cap. Outlay Rev.,
55,000 5.25%, due 02/01/2004. . . . . . . . . . . . . . . . . . . . . . . . 56,301
-----------
Vestavia Hills, AL, Warrants,
125,000 4.90%, due 04/01/2005. . . . . . . . . . . . . . . . . . . . . . . . 122,856
-----------
TOTAL ALABAMA (COST $13,317,624) . . . . . . . . . . . . . . . . . . . $13,602,690
<CAPTION> -----------
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT MONEY MARKETS - 2.6% VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 370,310 Biltmore Tax-Free Money Fund (Cost $370,310) . . . . . . . . . . . . . $ 370,310
-----------
TOTAL INVESTMENTS AT VALUE (COST $13,687,934) - 99.5%. . . . . . . . . $13,973,000
OTHER ASSETS IN EXCESS OF LIABILITIES - .5%. . . . . . . . . . . . . . 67,103
-----------
NET ASSETS - 100.0%. . . . . . . . . . . . . . . . . . . . . . . . . . $14,040,103
-----------
-----------
</TABLE>
ETM -Escrowed to maturity.
See accompanying notes to the financial statements.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Government Street Equity Fund, The Government Street Bond Fund, and
The Alabama Tax Free Bond Fund (the Funds) are each a no-load, open-end
series of The Williamsburg Investment Trust (the Trust). The Trust,
a registered management investment company under the Investment Company
Act of 1940, as amended, was organized as a Massachusetts business trust
on July 18, 1988.
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- The Funds' portfolio securities are valued as of
the close of business of the regular session of the New York Stock
Exchange (currently 4:00 p.m., Eastern time). Securities which are
traded over-the-counter are valued at the last sales price, if available,
otherwise, at the last quoted bid price. Securities traded on a national
stock exchange are valued based upon the closing price on the principal
exchange where the security is traded. It is expected that fixed income
securities will ordinarily be traded on the over-the-counter market, and
common stocks will ordinarily be traded on a national securities exchange,
but may also be traded on the over-the-counter market. When market
quotations are not readily available, fixed income securities may be
valued on the basis of prices provided by an independent pricing service.
Repurchase agreements -- The Funds generally enter into joint
repurchase agreements with other funds within the Trust. The joint
repurchase agreement, which is collateralized by U.S. Government
obligations, is valued at cost which, together with accrued interest,
approximates market. At the time the Funds enter into the joint
repurchase agreement, the Funds take possession of the underlying
securities and the seller agrees that the value of the underlying
securities, including accrued interest, will at all times be equal to or
exceed the face amount of the repurchase agreement. In addition, each Fund
actively monitors and seeks additional collateral, as needed.
Share valuation -- The net asset value per share of each Fund is calculated
daily by dividing the total value of each Fund's assets, less liabilities,
by the number of shares outstanding. The offering price and redemption
price per share of each Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are
amortized in accordance with income tax regulations. Dividend income is
recorded on the ex-dividend date. Dividends arising from net investment
income are declared and paid quarterly to shareholders of The Government
Street Equity Fund; declared and paid monthly to shareholders of The
Government Street Bond Fund; and declared daily and paid monthly to
shareholders of The Alabama Tax Free Bond Fund. 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,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
Federal income tax -- It is each 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 order to avoid imposition of the excise tax applicable to
regulated investment companies, it is also each 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.
19
<PAGE>
The following information is based upon the federal income tax cost of portfolio
investments of each Fund as of September 30, 1995:
<TABLE>
<CAPTION>
GOVERNMENT GOVERNMENT ALABAMA
STREET STREET TAX FREE
EQUITY FUND BOND FUND BOND FUND
----------- --------- ---------
<S> <C> <C> <C>
Gross unrealized appreciation.... $7,075,557 $ 539,702 $335,555
Gross unrealized depreciation.... (325,198) (522,849) (50,489)
----------- --------- ---------
Net unrealized appreciation...... $6,750,359 $ 16,853 $285,066
----------- --------- ---------
----------- --------- ---------
</TABLE>
The tax basis of investments for each Fund is equal to the acquisition cost
as shown on the Statements of Assets and Liabilities.
As of March 31, 1995, The Government Street Equity Fund, The Government
Street Bond Fund, and The Alabama Tax Free Bond Fund had capital loss
carryforwards for federal income tax purposes of $20,054, $71,604, and
$4,017, respectively, which expire through the year 2003. In addition, The
Government Street Bond Fund and The Alabama Tax Free Bond Fund realized
net capital losses of $80,587 and $199,046, respectively, during the
period from November 1, 1994 through March 31, 1995, which are treated for
federal income tax purposes as arising in the tax year ending March 31,
1996. These capital loss carryforwards and "post-October" losses may be
utilized in future years to offset net realized capital gains prior to
distributing such gains to shareholders.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds
from sales and maturities of investment securities, other than
short-term investments, amounted to $8,741,092 and $6,577,841,
respectively, for The Government Street Equity Fund, $1,270,488 and
$1,106,567, respectively, for The Government Street Bond Fund, and
$1,047,848 and $287,313, respectively, for The Alabama Tax Free Bond Fund.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Funds' investments are managed by T. Leavell & Associates, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement.
Under the Investment Advisory Agreement, The Government Street Equity
Fund pays the Adviser a fee, which is computed and accrued daily and paid
monthly at an annual rate of .60% on its average daily net assets up to $100
million and .50% on such assets in excess of $100 million. The Government
Street Bond Fund pays the Adviser a fee at an annual rate of .50% on its
average net assets up to $100 million and .40% on such net assets in excess
of $100 million. The Alabama Tax Free Bond Fund pays the Adviser a fee at
an annual rate of .35% on its average net assets up to $100 million and
.25% on such net assets in excess of $100 million.
States in which shares of the Funds are offered may impose an expense
limitation based upon net assets. The Adviser has agreed to reimburse
each Fund for expenses which exceed the most restrictive applicable expense
limitation of any state. For the six months ended September 30, 1995, no
such reimbursement was required. However, in order to reduce the operating
expenses of The Alabama Tax Free Bond Fund, the Adviser voluntarily
waived $11,991 of its investment advisory fees during the period.
Certain trustees and officers of the Trust are also officers of the Adviser.
20
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust
and MGF Service Corp. (MGF), MGF provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, MGF receives a monthly fee
from The Government Street Equity Fund at an annual rate of .20% on its
average daily net assets up to $25 million; .175% on the next $25 million
of such assets; and .15% on such net assets in excess of $50 million. From
The Government Street Bond Fund, MGF receives a monthly fee of .075% on its
average net assets up to $200 million and .05% on such assets in excess of
$200 million. From The Alabama Tax Free Bond Fund, MGF receives a monthly
fee of .15% on its average net assets up to $200 million and .10% on such
assets in excess of $200 million. The fee for each Fund is subject to a
$2,000 monthly minimum. In addition, each Fund pays out-of-pocket expenses
including, but not limited to, pricing costs and postage and supplies.
Certain officers of the Trust are also officers of MGF.
4. DIRECTED BROKERAGE ARRANGEMENT
In an effort to reduce the total operating expenses of The Government
Street Equity Fund, a portion of the Fund's administrative and custodian
fees for periods ended March 31, 1995 and prior were paid through an
arrangement with a third-party broker-dealer who is compensated through
commission trades. Payment of the fees by the broker-dealer was based
on a percentage of commissions earned.
5. REORGANIZATION OF THE ALABAMA TAX FREE BOND FUND
The Alabama Tax Free Bond Fund was originally organized as a series of
the Albemarle Investment Trust, a Massachusetts business trust. Effective
April 1, 1994, the Fund was reorganized through a tax-free exchange of all
the assets and liabilities of the fund for shares of a new fund with
the same name and investment objective. Due to the reorganization, the
Fund changed its fiscal year end from August 31 to March 31.
21
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
THE JAMESTOWN EQUITY FUND
No Load Mutual Fund
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
LOWE, BROCKENBROUGH & TATTERSALL, INC. MGF SERVICE CORP.
6620 West Broad Street 312 Walnut Street
Suite 300 P.O. Box 5354
Richmond, Virginia 23230 Cincinnati, Ohio
1.804.288.0404 1.800.443.4249
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 9,200,151
-------------
-------------
At value (Note 1) $ 11,095,750
Investments in repurchase agreements (Note 1) 941,112
Receivable for securities sold 26,667
Receivable for capital shares sold 3,209
Dividends receivable 12,148
Interest receivable 5,789
Other assets 3,505
-------------
TOTAL ASSETS 12,088,180
-------------
LIABILITIES
Payable for securities purchased 57,820
Dividends payable 3,357
Accrued advisory fees (Note 3) 6,334
Accrued administration fees (Note 3) 2,000
Other accrued expenses 6,222
-------------
TOTAL LIABILITIES 75,733
-------------
NET ASSETS $ 12,012,447
-------------
-------------
Net assets consist of:
Capital shares $ 9,914,133
Accumulated net realized gains from security transactions 199,757
Undistributed net investment income 2,958
Net unrealized appreciation on investments 1,895,599
-------------
Net assets $ 12,012,447
-------------
-------------
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 923,942
-------------
-------------
Net asset value, offering price and redemption price per share (Note 1) $ 13.00
-------------
-------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 96,397
Interest 31,515
----------
TOTAL INVESTMENT INCOME 127,912
----------
EXPENSES
Investment advisory fees (Note 3) 32,876
Administrative fees (Note 3) 12,000
Custodian fees 5,026
Professional fees 4,040
Trustees' fees and expenses 3,708
Registration fees 1,987
Printing of shareholder reports 1,033
Other expenses 6,795
----------
TOTAL EXPENSES 67,465
Expenses reimbursed through a directed brokerage arrangement (Note 4) (7,839)
----------
NET EXPENSES 59,626
----------
NET INVESTMENT INCOME 68,286
----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 209,214
Net change in unrealized appreciation/depreciation on investments 1,213,233
----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 1,422,447
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,490,733
----------
----------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
Periods Ended September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
SEPT. 30, ENDED
1995 MARCH 31,
(UNAUDITED) 1995
----------- ---------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 68,286 $ 52,250
Net realized gains from security transactions 209,214 23,087
Net change in unrealized appreciation/depreciation
on investments 1,213,233 641,075
----------- ---------
Net increase in net assets from operations 1,490,733 716,412
----------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (66,070) (56,136)
From net realized gains from security transactions -- (13,937)
----------- ---------
Decrease in net assets from distributions to shareholders (66,070) (70,073)
----------- ---------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 2,521,998 5,324,788
Net asset value of shares issued in reinvestment
of distributions to shareholders 59,638 61,777
Payments for shares redeemed (105,026) (733,223)
----------- ---------
Net increase in net assets from capital share transactions 2,476,610 4,653,342
----------- ---------
TOTAL INCREASE IN NET ASSETS 3,901,273 5,299,681
NET ASSETS:
Beginning of period 8,111,174 2,811,493
----------- ---------
End of period - (including undistributed net investment
income of $2,958 and $742, respectively) $ 12,012,447 $ 8,111,174
----------- ---------
----------- ---------
(a) Summary of capital share activity follows:
Shares sold 209,190 504,565
Shares issued in reinvestment of distributions to shareholders 4,717 5,806
Shares redeemed (8,365) (67,864)
----------- ---------
Net increase in shares outstanding 205,542 442,507
Shares outstanding, beginning of period 718,400 275,893
----------- ---------
Shares outstanding, end of period 923,942 718,400
----------- ---------
----------- ---------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a
Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR PERIOD
SEPT. 30, ENDED ENDED ENDED
1995 MARCH 31, MARCH 31, MARCH 31,
(UNAUDITED) 1995 1994 1993 (a)
----------- --------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value at beginning of period $11.29 $10.19 $10.18 $10.00
Income from investment operations:
Net investment income 0.08 0.10 0.08 0.04
Net realized and unrealized gains (losses)
on investments 1.71 1.15 (0.01) 0.18
-------- -------- -------- --------
Total from investment operations 1.79 1.25 0.07 0.22
-------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.08) (0.12) (0.06) (0.04)
Distributions from net realized gains -- (0.03) -- --
-------- -------- -------- --------
Total distributions (0.08) (0.15) (0.06) (0.04)
-------- -------- -------- --------
Net asset value at end of period $13.00 $11.29 $10.19 $10.18
-------- -------- -------- --------
-------- -------- -------- --------
Total return 15.83%(c) 12.33% 0.67% 6.81%(c)
-------- -------- -------- --------
-------- -------- -------- --------
Net assets at end of period (000's) $12,012 $8,111 $2,811 $1,953
-------- -------- -------- --------
-------- -------- -------- --------
Ratio of expenses to average net assets (b) 1.33%(d) 1.44% 1.50% 1.50%(c)
Ratio of net investment income to average net assets 1.35%(d) 1.18% 0.82% 1.13%(c)
Portfolio turnover rate 52%(d) 48% 92% 54%
</TABLE>
(a) Represents the period from the commencement of operations (December 1,
1992) through March 31, 1993.
(b) For the period ended September 30, 1995, the ratio of expenses to average
net assets was determined based on gross expenses prior to expense
reimbursements through a directed brokerage arrangement (Note 4). Absent
investment advisory fees waived and/or expenses reimbursed by the Adviser,
the ratios of expenses to average net assets would have been 1.99%, 3.16%
and 3.19% (c) for the periods ended March 31, 1995, 1994 and 1993,
respectively.
(c) The total return as of September 30, 1995 is not annualized.
(d) Annualized.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
COMMON STOCKS - 92.4%
AEROSPACE - 3.2%
4,500 Raytheon Company $ 382,500
----------
BUILDING AND CONSTRUCTION - 2.4%
8,200 Foster Wheeler Corporation 290,075
----------
CHEMICALS - 4.9%
6,300 Air Products & Chemicals 328,388
3,800 E.I. duPont de Nemours & Company 261,250
----------
589,638
----------
COMMERCIAL BANKING - 5.5%
4,100 Crestar Financial Corporation 229,087
3,800 First Union Corporation 193,800
3,600 NationsBank Corporation 242,100
----------
664,987
----------
COMMUNICATIONS - 10.3%
6,000 AT&T Company 394,500
2,500 Capital Cities/ABC, Inc. 294,063
5,700 Equifax, Inc. 238,687
5,700 SBC Communications, Inc. 313,500
----------
1,240,750
----------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 4.7%
4,500 Computer Sciences Corporation (b) 289,688
4,600 Intel Corporation 276,575
----------
566,263
----------
CONSUMER PRODUCTS - 16.5%
3,800 Avon Products, Inc. 272,650
7,000 General Electric Company 446,250
2,000 Hershey Foods Corporation 128,750
3,600 Motorola, Inc. 274,950
4,500 Procter & Gamble Company 346,500
9,500 Sysco Corporation 258,875
12,000 Whitman Corporation 247,500
----------
1,975,475
----------
</TABLE>
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
COMMON STOCKS - CONTINUED
DRUGS/MEDICAL EQUIPMENT - 7.6%
6,500 Abbott Laboratories $ 277,062
5,500 Merck and Company, Inc. 308,000
6,300 Schering-Plough 324,450
----------
909,512
----------
DURABLE GOODS - 2.6%
6,100 Avnet, Inc. 314,912
----------
ELECTRONICS - 1.5%
2,200 Hewlett-Packard Company 183,425
----------
FAST FOOD RESTAURANTS - 2.2%
7,000 McDonald's Corporation 267,750
----------
FIRE SYSTEMS - 3.6%
6,800 Tyco International Ltd. 428,400
----------
HEALTH CARE CENTERS - 6.8%
9,300 Columbia/HCA Healthcare Corporation 452,213
10,900 Manor Care, Inc. 370,600
----------
822,813
----------
INSURANCE - 3.1%
4,350 American International Group 369,750
----------
OIL AND GAS DRILLING - 8.1%
5,400 Amoco Corporation 346,275
4,900 Exxon Corporation 354,025
4,200 Texaco, Inc. 271,425
----------
971,725
----------
REAL ESTATE - 2.2%
18,500 United Dominion Realty Trust 263,625
----------
RETAIL STORES - 4.4%
9,000 Circuit City Stores, Inc. 284,625
5,500 May Department Stores Company 240,625
----------
525,250
----------
</TABLE>
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
COMMON STOCKS - CONTINUED
TRANSPORTATION SERVICES/EQUIPMENT - 2.8%
9,200 Echlin, Inc. $ 328,900
----------
TOTAL COMMON STOCKS (COST $9,200,151) $ 11,095,750
----------
<CAPTION>
FACE
VALUE VALUE
------ ---------
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 7.8%
Daiwa Securities,
$ 941,112 6.45%, dated 09/30/1995 , due 10/02/1995,
repurchase proceeds $941,618 (Cost $941,112) $ 941,112
----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS
AT VALUE - 100.2% $ 12,036,862
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2)% (24,415)
----------
NET ASSETS - 100.0% $ 12,012,447
----------
----------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015. The aggregate market value of the
collateral at September 30, 1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $964,093.
(b) Non-income producing security.
See accompanying notes to the finacial statements.
<PAGE>
THE JAMESTOWN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Equity Fund (the Fund) is a series of shares of the Williamsburg
Investment Trust (the Trust). The Trust, registered as an open-end management
investment company under the Investment Company Act of 1940, as amended, was
organized as a Massachusetts business trust on July 18, 1988. The Fund began
operations on December 1, 1992.
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 the New York Stock Exchange (cur-
rently 4:00 p.m., Eastern time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national stock exchange are valued based upon
the closing price on the principal exchange where the security is traded.
Repurchase agreements -- The Fund generally enters into joint repurchase
agreements with other funds within the Trust. The joint repurchase agreement,
which is collateralized by U.S. Government obligations, is valued at cost which,
together with accrued interest, approximates market. At the time the Fund
enters into the joint repurchase agreement, the seller agrees that the value of
the underlying securities, including accrued interest, will at all times be
equal to or exceed the face amount of the repurchase agreement. In addition,
the Fund actively monitors and seeks additional collateral, as needed.
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 and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income are declared and paid quarterly to
shareholders of the Fund. 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,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
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 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.
<PAGE>
THE JAMESTOWN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
The following information is based upon the federal income tax cost of portfolio
investments of the Fund as of September 30, 1995:
<TABLE>
<S> . . . . . . . . . . . . . . . . . . . . . . . <C>
Gross unrealized appreciation . . . . . . . . . . $ 1,922,799
Gross unrealized depreciation . . . . . . . . . . (27,200)
-----------
Net unrealized appreciation . . . . . . . . . . . $ 1,895,599
-----------
-----------
</TABLE>
The tax basis of investments for the Fund is equal to the acquisition cost as
shown on the Statement of Assets and Liabilities.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds from
sales and maturities of investment securities, other than short-term invest-
ments, amounted to $4,233,548 and $2,374,507, respectively, for the Fund.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Lowe, Brockenbrough & Tattersall, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Fund pays the Adviser a fee, which is
computed and accrued daily and paid monthly at an annual rate of .65% on its
average daily net assets up to $500 million and .50% on such net assets in
excess of $500 million.
States in which shares of the Fund are offered may impose an expense limitation
based upon net assets. The Adviser has agreed to reimburse the Fund for
expenses which exceed the most restrictive applicable expense limitation of any
state. No reimbursement was required from the Adviser for the six months ended
September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
MGF Service Corp. (MGF), MGF provides administrative, pricing, accounting,
dividend disbursing, shareholder servicing and transfer agent services for the
Fund. For these services, MGF receives a monthly fee from the Fund at an annual
rate of .20% on its average daily net assets up to $25 million; .175% on the
next $25 million of such net assets; and .15% on such net assets in excess of
$50 million, subject to a $2,000 minimum monthly fee. In addition, the Fund
pays out-of-pocket expenses including, but not limited to, pricing fees and
postage and supplies.
Certain officers of the Trust are also officers of MGF.
<PAGE>
THE JAMESTOWN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
4. DIRECTED BROKERAGE ARRANGEMENT
In order to reduce the total operating expenses of the Fund, the Fund's
custodian fees and a portion of other operating expenses have been paid through
an arrangement with a third-party broker-dealer who is compensated through
commission trades. Payment of expenses by the broker-dealer is based on a
percentage of commissions earned. Expenses reimbursed through the directed
brokerage arrangement totaled $7,839 for the six months ended September 30,
1995.
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
THE JAMESTOWN BOND FUND
No Load Mutual Fund
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
LOWE, BROCKENBROUGH & TATTERSALL, INC. MGF SERVICE CORP.
6620 West Broad Street 312 Walnut Street
Suite 300 P.O. Box 5354
Richmond, Virginia 23230 Cincinnati, Ohio 45202-5354
1.804.288.0404 1.800.443.4249
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
THE JAMESTOWN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 72,611,579
--------------
--------------
At value (Note 1) $ 75,521,632
Investments in repurchase agreements (Note 1) 8,491,755
Receivable for securities sold 1,678,419
Receivable for capital shares sold 740
Interest receivable 637,684
Dividends receivable 28,517
Other assets 8,968
--------------
TOTAL ASSETS 86,367,715
--------------
LIABILITIES
Payable for securities purchased 7,057,061
Payable for capital shares redeemed 9,000
Dividends payable 241,655
Accrued advisory fees (Note 3) 24,304
Accrued administration fees (Note 3) 4,800
--------------
TOTAL LIABILITIES 7,336,820
--------------
NET ASSETS $ 79,030,895
--------------
--------------
Net assets consist of:
Capital shares $ 79,397,643
Accumulated net realized losses from security transactions (3,277,642)
Undistributed net investment income 841
Net unrealized appreciation on investments 2,910,053
--------------
Net assets $ 79,030,895
--------------
--------------
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 7,549,613
--------------
--------------
Net asset value, offering price and redemption price per share (Note 1) $ 10.47
--------------
--------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BOND FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 2,531,237
Dividends 147,938
--------------
TOTAL INVESTMENT INCOME 2,679,175
--------------
EXPENSES
Investment advisory fees (Note 3) 141,911
Administrative fees (Note 3) 28,189
Custodian fees 16,550
Professional fees 8,316
Trustees' fees and expenses 3,702
Registration fees 3,126
Pricing costs 2,850
Other expenses 4,058
--------------
TOTAL EXPENSES 208,702
Expenses reimbursed through a directed brokerage arrangement (Note 4) (8,134)
--------------
NET EXPENSES 200,568
--------------
NET INVESTMENT INCOME 2,478,607
--------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 1,456,460
Net change in unrealized appreciation/depreciation of investments 2,065,068
--------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 3,521,528
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,000,135
--------------
--------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Periods Ended September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION> SIX MONTHS
ENDED YEAR
SEPT. 30, ENDED
1995 MARCH 31,
(UNAUDITED) 1995
------------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 2,478,607 $ 4,070,955
Net realized gains (losses) from security transactions 1,456,460 (3,791,347)
Net change in unrealized appreciation/depreciation
on investments 2,065,068 2,701,756
------------ -----------
Net increase in net assets from operations 6,000,135 2,981,364
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,502,288) (4,060,588)
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 5,335,625 10,057,911
Net asset value of shares issued in reinvestment
of distributions to shareholders 2,032,787 3,496,446
Payments for shares redeemed (3,864,067) (4,475,836)
------------ -----------
Net increase in net assets from capital share transactions 3,504,345 9,078,521
------------ -----------
TOTAL INCREASE IN NET ASSETS 7,002,192 7,999,297
NET ASSETS:
Beginning of period 72,028,703 64,029,406
------------ -----------
End of period - (including undistributed net investment
income of $841 and $24,522, respectively) $ 79,030,895 $ 72,028,703
------------ -----------
------------ -----------
(a)Summary of capital share activity follows:
Shares sold 510,188 1,014,124
Shares issued in reinvestment of distributions to shareholders 194,867 355,655
Shares redeemed (380,848) (454,880)
------------ -----------
Net increase in shares outstanding 324,207 914,899
Shares outstanding, beginning of period 7,225,406 6,310,507
------------ -----------
Shares outstanding, end of period 7,549,613 7,225,406
------------ -----------
------------ -----------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding
Throughout Each Period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31, PERIOD
SEPT. 30, ------------------------------------------------ ENDED
1995 MARCH 31,
(UNAUDITED) 1995 1994 1993 1992 1991 (a)
----------- --------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $9.97 $10.15 $10.82 $10.42 $9.97 $10.00
----------- --------- -------- -------- --------- --------
Income from investment operations:
Net investment income 0.34 0.62 0.55 0.64 0.54 0.20
Net realized and unrealized gains
(losses) on investments 0.50 (0.18) (0.30) 0.55 0.48 (0.03)
----------- --------- -------- -------- --------- --------
Total from investment operations 0.84 0.44 0.25 1.19 1.02 0.17
----------- --------- -------- -------- --------- --------
Less distributions:
Dividends from net investment income (0.34) (0.62) (0.55) (0.64) (0.54) (0.20)
Distributions from net realized gains -- -- (0.19) (0.15) (0.03) --
Distributions in excess of net
realized gains -- -- (0.18) -- -- --
----------- --------- -------- -------- --------- --------
Total distributions (0.34) (0.62) (0.92) (0.79) (0.57) (0.20)
----------- --------- -------- -------- --------- --------
Net asset value at end of period $10.47 $9.97 $10.15 $10.82 $10.42 $9.97
----------- --------- -------- -------- --------- --------
----------- --------- -------- -------- --------- --------
Total return 16.89%(c) 4.56% 2.12% 11.69% 10.33% 5.70%(c)
----------- --------- -------- -------- --------- --------
----------- --------- -------- -------- --------- --------
Net assets at end of period (000's) $79,031 $72,029 $64,029 $55,718 $29,727 $794
----------- --------- -------- -------- --------- --------
----------- --------- -------- -------- --------- --------
Ratio of expenses to average net assets (b) 0.55%(c) 0.53% 0.60% 0.59% 0.60% 0.90%(c)
Ratio of net investment income to average
net assets 6.55%(c) 6.28% 5.03% 6.09% 6.67% 7.07%(c)
Portfolio turnover rate 253%(c) 381% 381% 454% 484% 54%
</TABLE>
(a) Represents the period from the commencement of operations (December 13,
1990) through March 31, 1991.
(b) For the period ended September 30, 1995, the ratio of expenses to average
net assets was determined based on gross expenses prior to expense
reimbursements through a directed brokerage arrangement. For periods
prior to September 30, 1995, the ratio was determined based on net expenses
after expense reimbursements through the directed brokerage arrangement.
Absent such expense reimbursements, the ratio of expenses to average net
assets would have been 0.57% for the period ended March 31, 1995,
respectively (Note 4). Absent investment advisory fees waived by the
Adviser, the ratios of expenses to average net assets would have been
0.80% and 3.08%(c) for the periods ended March 31, 1992 and 1991,
respectively.
(c) Annualized.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- ------
<S> <C> <C>
U.S. TREASURY AND AGENCY OBLIGATIONS - 14.4%
U.S. TREASURY BONDS - 14.0%
$ 9,045,000 8.50%, due 02/15/2020 $ 11,025,041
----------------
U.S. TREASURY NOTES - .4%
330,000 6.75%, due 05/31/1997 334,537
----------------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS
(COST $9,859,766) $ 11,359,578
----------------
MORTGAGE-BACKED SECURITIES - 40.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 15.2%
$ 1,185,000 Series #1615-D, 5.05%, due 01/15/2004 $ 1,147,590
675,000 Series #1780-B, class C, 6.00%, due 12/15/2008 631,334
675,000 Series #32-C, 9.50%, due 03/15/2020 734,063
600,000 Series #188-H, 7.00%, due 09/15/2021 594,186
1,856,543 Pool #C00248, 6.50%, due 07/01/2023 1,792,102
1,605,970 Pool #C00290, 6.50%, due 01/01/2024 1,550,226
1,263,876 Pool #C80091, 6.50%, due 01/01/2024 1,220,007
979,861 Pool #G00344, 6.50%, due 09/01/2024 945,850
1,450,013 Pool #C80313, 8.00%, due 05/01/2025 1,484,103
1,830,660 Pool #G00363, 8.00%, due 06/01/2025 1,883,621
----------------
11,983,082
----------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.2%
696,214 Pool #180106, 6.00%, due 12/01/1999 682,109
2,764 Series #92-61F, , floating rate, due 05/25/2001 2,765
950,000 Series #92-22HC, 7.00%, due 03/25/2007 953,562
1,025,000 Series #89-76E, 9.00%, due 11/25/2019 1,115,323
825,000 Series #89-82G, 8.40%, due 11/25/2019 842,267
675,000 Series #90-143J, 8.75%, due 12/25/2020 699,469
1,350,000 Series #91-10J, 7.95%, due 02/25/2021 1,340,712
900,000 Series #91-137H, 7.00%, due 10/25/2021 891,000
----------------
6,527,207
----------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 13.3%
2,100,000 TBA, 5.50%, adjustable rate, due 10/15/2010 2,077,688
248,122 Pool #170523, 9.00%, due 09/15/2016 264,319
545,898 Pool #172908, 9.00%, due 09/15/2016 580,241
884,270 Pool #212183, 8.50%, due 06/15/2017 930,986
2,590,973 Pool #355806, 7.00%, due 07/15/2023 2,563,482
1,405,809 Pool #352056, 6.50%, due 10/15/2023 1,357,281
880,781 Pool #354733, 6.50%, due 01/15/2024 850,377
890,770 Pool #376177, 8.50%, due 07/15/2024 928,788
896,118 Pool #369460, 8.50%, due 10/15/2024 934,364
----------------
10,487,526
----------------
</TABLE>
<PAGE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- ------
<S> <C> <C>
OTHER MORTGAGE-BACKED SECURITIES - 4.2%
Bear Stearns Secured Investors Trust #87-2-D,
$ 629,677 9.95%, due 10/20/2018 $ 666,274
Lehman Brothers Mortgage Trust #91-2-A1,
1,272,575 8.00%, due 03/20/1999 1,298,156
Resolution Trust Corp. #95-1A-A-2D,
975,000 7.50%, due 10/25/2028 973,477
Vendee Mortgage Trust #95-3-1-J,
350,000 7.25%, due 10/15/2008 354,046
----------------
3,291,953
----------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $31,926,399) $ 32,289,768
----------------
ASSET-BACKED SECURITIES - 6.0%
Contimortgage Home Equity Loan Trust #94-4-A2,
$ 895,000 7.96%, due 09/15/2009 $ 908,559
CIT RV Trust #95-B, class A,
713,003 6.50%, due 04/15/2011 715,448
Green Tree Financial Corporation Trust #94-5-A5,
2,275,000 8.30%, due 11/15/2019 2,404,379
MDC Asset Investors Trust VII-6,
685,414 9.00%, due 12/20/2018 710,041
----------------
TOTAL ASSET-BACKED SECURITIES (COST $4,506,947) $ 4,738,427
----------------
CORPORATE BONDS - 24.2%
Associates Corporation,
$ 700,000 5.75%, due 10/15/2003 $ 658,644
Baltimore Gas & Electric Corporation,
1,000,000 8.90%, due 07/01/1998 1,065,610
Beneficial Corporation Medium Term Notes,
1,300,000 8.27%, due 11/30/1998 1,365,312
Capital One Bank Corporation,
1,400,000 6.66%, due 08/17/1998 1,402,100
Ford Motor Credit Corporation,
1,150,000 5.625%, due 01/15/1999 1,120,445
General Motors Acceptance Corporation Medium Term Notes,
2,225,000 6.375%, due 09/01/1998 2,222,486
Golden West Financial Corporation,
450,000 8.625%, due 08/30/1998 474,534
International Lease Finance Medium Term Notes,
1,715,000 6.42%, due 09/11/2000 1,690,853
Key Corporation Medium Term Notes,
1,100,000 5.52%, due 03/25/1997 1,088,186
</TABLE>
<PAGE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS - CONTINUED
Meridian Bancorp,
750,000 6.625%, due 06/15/2000 $ 748,508
National City,
1,010,000 7.20%, due 05/15/2005 1,030,715
Paccar Financial Corporation Medium Term Notes,
785,000 8.09%, due 11/14/1997 813,087
Public Service Electric and Gas Corporation,
1,500,000 7.125%, due 11/01/1997 1,520,385
Sears Roebuck & Company,
1,700,000 6.43%, due 08/31/1998 1,698,878
TCI Communications,
1,400,000 6.82%, floating rate, due 09/15/2010 1,402,506
Virginia Electric & Power Corporation,
825,000 7.25%, due 03/01/1997 838,373
----------------
TOTAL CORPORATE BONDS (COST $18,840,822) $ 19,140,622
----------------
<CAPTION>
SHARES
------
<S> <C> <C>
CLOSED-END MUTUAL FUNDS - 10.1%
40,000 Blackrock 2001 Term Trust, Inc. $ 305,000
1,500 Blackrock Broad Investment Grade 2009 Term Trust 16,500
65,000 Blackrock Investment Quality Term Trust, Inc. 511,875
25,000 Blackrock Strategic Term Trust, Inc. 190,625
3,600 Excelsior Income Shares, Inc. 57,150
3,500 First Commonwealth Fund, Inc. 39,375
222,800 Global Government Plus Fund, Inc. 1,587,450
315,000 Global Total Return Fund 2,480,625
95,700 Hyperion 2002 Term Trust 705,787
51,300 Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. 391,163
35,000 Hyperion Term Trust 1999 245,000
28,000 Kemper Intermediate Government Trust 203,000
14,500 MFS Government Markets Income Trust 92,437
23,000 MFS Intermediate Income Trust 152,375
29,500 Putnam Intermediate Government Trust 228,625
48,500 TCW/DW Term Trust 2000 363,750
27,000 TCW/DW Term Trust 2003 202,500
32,000 Templeton Global Income Fund, Inc. 220,000
----------------
TOTAL CLOSED-END FUNDS (COST $7,477,645) $ 7,993,237
----------------
TOTAL INVESTMENTS AT VALUE (COST $72,611,579) - 95.6% $ 75,521,632
----------------
</TABLE>
<PAGE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
------- ------
<S> <C> <C>
REPURCHASE AGREEMENT (a) - 10.7%
Daiwa Securities,
$ 8,491,755 6.45%, dated 09/29/1995, due 10/02/1995,
repurchase proceeds $8,496,319 (Cost $8,491,755) $ 8,491,755
----------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS
AT VALUE - 106.3% $ 84,013,387
LIABILITIES IN EXCESS OF OTHER ASSETS - (6.3)% (4,982,492)
----------------
NET ASSETS - 100.0% $ 79,030,895
----------------
----------------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015. The aggregate market value of the
collateral at September 30, 1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $8,699,121.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Bond Fund (the Fund) is a series of shares of the Williamsburg
Investment Trust (the Trust). The Trust, registered as an open-end management
investment company under the Investment Company Act of 1940, as amended, was
organized as a Massachusetts business trust on July 18, 1988. The Fund began
operations on December 13, 1990.
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 the New York Stock Exchange (cur-
rently 4:00 p.m., Eastern time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national exchange are valued based upon the
closing price on the principal exchange where the security is traded. It is
expected that fixed income securities of the Fund will ordinarily be traded on
the over-the-counter market. When market quotations are not readily available,
securities may be valued on the basis of prices provided by an independent
pricing service. If a pricing service cannot provide a valuation, securities
will be valued in good faith at fair market value using methods consistent with
those determined by the Board of Trustees.
Repurchase agreements -- The Fund generally enters into joint repurchase
agreements with other funds within the Trust. The joint repurchase agreement,
which is collateralized by U.S. Government obligations, is valued at cost which,
together with accrued interest, approximates market. At the time the Fund
enters into the joint repurchase agreement, the seller agrees that the value of
the underlying securities, including accrued interest, will at all times be
equal to or exceed the face amount of the repurchase agreement. In addition,
the Fund actively monitors and seeks additional collateral, as needed.
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 and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Dividend income is
recorded on the ex-dividend date. Interest income is accrued as earned.
Discounts and premiums on securities purchased are amortized in accordance with
tax regulations. Dividends arising from net investment income are declared and
paid quarterly to shareholders of the Fund. 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, which may differ from generally accepted accounting
principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
<PAGE>
THE JAMESTOWN BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
Securities traded on a "to-be-announced" basis -- The Fund occasionally trades
securities on a "to-be-announced" (TBA) basis. In a TBA transaction, the Fund
has committed to purchase securities for which all specific information is not
yet known at the time of the trade, particularly the face amount in mortgage-
backed securities transactions. Securities purchased on a TBA basis are not
settled until they are delivered to the Fund, normally 15 to 45 days later.
These transactions are subject to market fluctuations and their current value is
determined in the same manner as for other portfolio securities.
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 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.
The following information is based upon the federal income tax cost of portfolio
investments of the Fund as of September 30, 1995:
<TABLE>
<S> <C>
Gross unrealized appreciation . . . . . . . . . . $ 2,315,826
Gross unrealized depreciation . . . . . . . . . . (112,384)
-----------
Net unrealized appreciation . . . . . . . . . . . $ 2,203,442
-----------
-----------
</TABLE>
As of September 30, 1995, the tax cost basis of investments of the Fund was
$73,318,190. As of March 31, 1995, the Fund had capital loss carryforwards for
federal income tax purposes of $3,682,998 which expire on March 31, 2003. In
addition, the Fund had net realized capital losses of $344,493 during the period
from November 1, 1994 through March 31, 1995 which are treated for federal
income tax purposes as arising during the Fund's tax year ending March 31, 1996.
These capital loss carryforwards and "post-October" losses may be utilized in
future years to offset net realized capital gains prior to distributing such
gains to shareholders.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds from
sales and maturities of investment securities, other than short-term invest-
ments, amounted to $91,793,342 and $88,689,252, respectively.
<PAGE>
THE JAMESTOWN BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Lowe, Brockenbrough & Tattersall, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Fund pays the Adviser a fee, which is
computed and accrued daily and paid monthly at an annual rate of .375% on its
average daily net assets.
States in which shares of the Fund are offered may impose an expense limitation
based upon net assets. The Adviser has agreed to reimburse the Fund for
expenses which exceed the most restrictive applicable expense limitation of any
state. No waiver or reimbursement was required from the Adviser for the six
months ended September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
MGF Service Corp. (MGF), MGF provides administrative, pricing, accounting,
dividend disbursing, shareholder servicing and transfer agent services for the
Fund. For these services, MGF receives a monthly fee from the Fund at an annual
rate of .075% on its average daily net assets up to $200 million and .05% on
such net assets in excess of $200 million, subject to a $2,000 minimum monthly
fee. In addition, the Fund pays out-of-pocket expenses including, but not
limited to, pricing fees and postage and supplies.
Certain officers of the Trust are also officers of MGF.
4. DIRECTED BROKERAGE ARRANGEMENT
In order to reduce the total operating expenses of the Fund, a portion of the
Fund's custodian fees have been paid through an arrangement with a third-party
broker-dealer who is compensated through security trades. Expenses reimbursed
through the directed brokerage arrangement totaled $8,134 for the six months
ended September 30, 1995.
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
THE JAMESTOWN BALANCED FUND
No Load Mutual Fund
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
LOWE, BROCKENBROUGH & TATTERSALL, INC. MGF SERVICE CORP.
6620 West Broad Street 312 Walnut Street
Suite 300 P.O. Box 5354
Richmond, Virginia 23230 Cincinnati, Ohio
1.804.288.0404 1.800.443.4249
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
THE JAMESTOWN BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 44,837,647
------------
------------
At value (Note 1) $ 54,909,260
Investments in repurchase agreements (Note 1) 1,215,652
Receivable for securities sold 958,145
Receivable for capital shares sold 761
Interest receivable 181,217
Dividends receivable 41,750
Other assets 1,367
------------
TOTAL ASSETS 57,308,152
------------
LIABILITIES
Payable for securities purchased 507,903
Payable for capital shares redeemed 19,960
Dividends payable 20,270
Accrued advisory fees (Note 3) 29,978
Accrued administration fees (Note 3) 8,650
Other accrued expenses 21,837
------------
TOTAL LIABILITIES 608,598
------------
NET ASSETS $ 56,699,554
------------
------------
Net assets consist of:
Capital shares $ 45,179,072
Accumulated net realized gains from security transactions 1,441,719
Undistributed net investment income 7,150
Net unrealized appreciation on investments 10,071,613
------------
Net assets $ 56,699,554
------------
------------
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 3,965,807
------------
------------
Net asset value, offering price and redemption price per share (Note 1) $ 14.30
------------
------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BALANCED FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 583,947
Dividends 393,343
------------
TOTAL INVESTMENT INCOME 977,290
------------
EXPENSES
Investment advisory fees (Note 3) 179,859
Administrative fees (Note 3) 50,958
Custodian fees 11,457
Professional fees 7,288
Trustees' fees and expenses 3,727
Postage and supplies 2,284
Pricing costs 2,260
Printing of shareholder reports 1,686
Other expenses 12,950
------------
TOTAL EXPENSES 272,469
Expenses reimbursed through a directed brokerage arrangement (Note 4) (13,804)
------------
NET EXPENSES 258,665
------------
NET INVESTMENT INCOME 718,625
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 1,447,795
Net change in unrealized appreciation/depreciation on investments 4,781,753
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 6,229,548
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,948,173
------------
------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
Periods Ended September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
SEPT. 30, ENDED
1995 MARCH 31,
(UNAUDITED) 1995
-------------- -------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 718,625 $ 1,322,753
Net realized gains from security transactions 1,447,795 388,803
Net change in unrealized appreciation/depreciation
on investments 4,781,753 3,296,638
------------ -----------
Net increase in net assets from operations 6,948,173 5,008,194
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (727,616) (1,312,434)
From net realized gains from security transactions --- (1,138,083)
------------ -----------
Decrease in net assets from distributions to shareholders (727,616) (2,450,517)
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 2,505,497 8,248,839
Net asset value of shares issued in reinvestment
of distributions to shareholders 684,159 2,325,314
Payments for shares redeemed (4,772,761) (7,997,241)
------------ -----------
Net increase (decrease) in net assets from capital share transactions (1,583,105) 2,576,912
------------ -----------
TOTAL INCREASE IN NET ASSETS 4,637,452 5,134,589
NET ASSETS:
Beginning of period 52,062,102 46,927,513
------------ -----------
End of period - (including undistributed net investment
income of $7,150 and $16,141, respectively) $ 56,699,554 $ 52,062,102
------------ -----------
------------ -----------
(a)Summary of capital share activity follows:
Shares sold 185,169 674,378
Shares issued in reinvestment of distributions to shareholders 49,026 193,284
Shares redeemed (349,336) (649,875)
------------ -----------
Net increase (decrease) in shares outstanding (115,141) 217,787
Shares outstanding, beginning of period 4,080,948 3,863,161
------------ -----------
Shares outstanding, end of period 3,965,807 4,080,948
------------ -----------
------------ -----------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BALANCED FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31,
SEPT. 30, ----------------------------------------------------------------
1995
(UNAUDITED) 1995 1994 1993 1992 1991
------------ ---------- ----------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $12.76 $12.15 $12.49 $11.52 $10.88 $10.27
------------ ---------- ----------- ---------- --------- ---------
Income from investment operations:
Net investment income 0.18 0.33 0.30 0.31 0.32 0.38
Net realized and unrealized gains (losses)
on investments 1.54 0.90 (0.18) 1.11 0.67 0.63
------------ --------- ----------- ---------- --------- ----------
Total from investment operations 1.72 1.23 0.12 1.42 0.99 1.01
------------ --------- ----------- ---------- --------- ----------
Less distributions:
Dividends from net investment income (0.18) (0.33) (0.30) (0.31) (0.31) (0.39)
Distributions from net realized gains --- (0.29) (0.16) (0.14) (0.04) (0.01)
------------ -------- ----------- ---------- --------- ----------
Total distributions (0.18) (0.62) (0.46) (0.45) (0.35) (0.40)
------------ -------- ----------- ---------- --------- ----------
Net asset value at end of period $14.30 $12.76 $12.15 $12.49 $11.52 $10.88
------------ -------- ----------- ---------- --------- ----------
------------ -------- ----------- ---------- --------- ----------
Total return 13.52%(b) 10.54% 0.94% 12.50% 9.16% 9.99%
------------ -------- ----------- ---------- --------- ----------
------------ -------- ----------- ---------- --------- ----------
Net assets at end of period (000's) $56,700 $52,062 $46,928 $40,512 $23,786 $13,180
------------ -------- ----------- ---------- --------- ----------
------------ -------- ----------- ---------- --------- ----------
Ratio of expenses to average net assets (a) 0.98% (c) 0.96% 0.98% 0.99% 1.19% 1.47%
Ratio of net investment income to average net assets 2.60% (c) 2.72% 2.47% 2.59% 3.00% 5.52%
Portfolio turnover rate 67% (c) 95% 123% 134% 153% 110%
</TABLE>
(a) For the period ended September 30, 1995, the ratio of expenses to average
net assets was determined based on gross expenses prior to expense
reimbursements through a directed brokerage arrangement. For periods prior
to September 30, 1995, the ratio was determined based on net expenses after
expense reimbursements through the directed brokerage arrangement. Absent
such expense reimbursements, the ratios of expenses to average net assets
would have been 0.99%, 1.01% and 1.07% for the years ended March 31, 1995,
1994 and 1993, respectively. (Note 4).
(b) The total return calculated as of September 30, 1995 is not annualized.
(c) Annualized.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 69.8%
AEROSPACE - 2.4%
16,000 Raytheon Company $ 1,360,000
-------------
BUILDING AND CONSTRUCTION - 2.1%
33,000 Foster Wheeler Corporation 1,167,375
-------------
CHEMICALS - 3.6%
23,000 Air Products & Chemicals 1,198,875
12,000 E.I. duPont de Nemours & Company 825,000
-------------
2,023,875
-------------
COMMERCIAL BANKING - 3.7%
10,000 Crestar Financial Corporation 558,750
14,700 First Union Corporation 749,700
12,000 NationsBank Corporation 807,000
-------------
2,115,450
-------------
COMMUNICATIONS - 8.6%
23,000 AT&T Company 1,512,250
8,600 Capital Cities/ABC, Inc. 1,011,575
24,000 Equifax, Inc. 1,005,000
24,000 SBC Communications, Inc. 1,320,000
-------------
4,848,825
-------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 3.9%
20,000 Computer Sciences Corporation (b) 1,287,500
15,800 Intel Corporation 949,975
-------------
2,237,475
-------------
CONSUMER PRODUCTS - 12.9%
15,000 Avon Products, Inc. 1,076,250
24,000 General Electric Company 1,530,000
9,900 Hershey Foods Corporation 637,312
15,000 Motorola, Inc. 1,145,625
15,000 Procter & Gamble Company 1,155,000
40,000 Sysco Corporation 1,090,000
34,000 Whitman Corporation 701,250
-------------
7,335,437
-------------
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
DRUGS/MEDICAL EQUIPMENT - 4.7%
20,000 Abbott Laboratories $ 852,500
16,000 Merck and Company, Inc. 896,000
18,000 Schering-Plough 927,000
-------------
2,675,500
-------------
DURABLE GOODS - 2.2%
24,000 Avnet, Inc. 1,239,000
-------------
ELECTRONICS - 1.1%
7,500 Hewlett-Packard Company 625,313
-------------
FAST FOOD RESTAURANTS - 1.4%
21,000 McDonald's Corporation 803,250
-------------
FIRE SYSTEMS - 2.5%
22,000 Tyco International Ltd. 1,386,000
-------------
HEALTH CARE CENTERS - 5.4%
32,000 Columbia/HCA Healthcare Corporation 1,556,000
45,000 Manor Care, Inc. 1,530,000
-------------
3,086,000
-------------
INSURANCE - 2.3%
15,000 American International Group 1,275,000
-------------
OIL AND GAS DRILLING - 6.1%
18,000 Amoco Corporation 1,154,250
17,000 Exxon Corporation 1,228,250
17,000 Texaco, Inc. 1,098,625
-------------
3,481,125
-------------
REAL ESTATE - 1.8%
72,000 United Dominion Realty Trust 1,026,000
-------------
RETAIL STORES - 3.7%
34,000 Circuit City Stores, Inc. 1,075,250
23,000 May Department Stores Company 1,006,250
-------------
2,081,500
-------------
TRANSPORTATION SERVICES/EQUIPMENT - 1.4%
22,000 Echlin, Inc. 786,500
-------------
TOTAL COMMON STOCKS (COST $29,962,883) $ 39,553,625
-------------
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- -----
<S> <C> <C>
U.S. TREASURY NOTES - 9.5%
$ 1,360,000 6.75%, due 05/31/1997 $ 1,378,700
175,000 5.875%, due 03/31/1999 174,535
3,015,000 6.25%, due 02/15/2003 3,031,944
725,000 7.25%, due 05/15/2004 774,503
-------------
TOTAL U.S. TREASURY NOTES (COST $5,041,523) $ 5,359,682
-------------
MORTGAGE-BACKED SECURITIES - 8.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.6%
$ 300,000 Series #1139-D, 8.00%, due 09/15/1996 $ 303,000
460,401 Pool #G50153, 4.50%, due 05/01/1999 432,921
400,000 Pool #1780-B, 6.00%, due 12/15/2008 374,124
373,317 Series #204-B, 5.75%, due 06/15/2022 369,931
561,154 Series #D54864-G, 6.50%, due 06/01/2024 541,677
-------------
2,021,653
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.5%
550,000 Series #93-135, 5.00%, due 01/25/2001 541,750
11,055 Series #92-61F, 6.53%, floating rate, due 05/25/2001 11,058
350,000 Series #92-44K, 7.25%, due 04/25/2007 357,438
334,901 Series #70, 8.50%, due 01/01/2012 350,253
170,623 Series #88-29B, 9.50%, due 12/25/2018 178,833
-------------
1,439,332
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .8%
136,286 Pool #220644, 8.50%, due 07/15/2017 143,487
294,042 Pool #400355, 8.50%, due 09/15/2024 306,591
-------------
450,078
-------------
OTHER MORTGAGE-BACKED SECURITIES - 1.2%
Bear Stearns Secured Investors Trust #87-2-D,
120,517 9.95%, due 10/20/2018 128,579
Lehman Brothers Mortgage Trust #91-2-A1,
255,809 8.00%, due 03/20/1999 261,725
Resolution Trust Corporation #95-1-A2B,
300,000 7.50%, due 10/25/2028 301,688
-------------
691,992
-------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $4,527,904) $ 4,603,055
-------------
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- -----
<S> <C> <C>
ASSET-BACKED SECURITIES - .9%
The Money Store Home Equity Trust #94-A, A4,
$ 575,000 6.275%, due 12/15/2022 $ 538,700
-------------
TOTAL ASSET-BACKED SECURITIES (COST $493,242) $ 538,700
-------------
CORPORATE BONDS - 8.6%
Bear Stearns Co.,
$ 375,000 7.625%, due 09/15/1999 $ 387,476
Beneficial Corporation Medium Term Notes,
275,000 8.05%, due 11/16/1998 287,020
Commercial Credit Corporation,
275,000 10.00%, due 05/01/1999 305,775
Commonwealth Edison,
350,000 7.00%, due 02/01/1997 352,160
Dayton Hudson Co.,
250,000 7.50%, due 03/01/1999 258,280
Fleet Mortgage Group Medium Term Notes,
400,000 7.25%, due 01/15/1998 406,476
Ford Motor Credit Medium Term Notes,
225,000 7.55%, due 07/19/1999 233,260
Ford Motor Credit,
200,000 8.00%, due 12/01/1997 206,568
GMAC Medium Term Notes,
525,000 6.375%, due 09/01/1998 524,407
International Lease Finance Corporation,
425,000 6.42%, due 09/11/2000 419,016
Meridian Bancorp, Inc.,
175,000 6.00%, floating rate, due 12/01/1996 174,389
310,000 6.625%, due 06/15/2000 309,383
National City Corporation,
175,000 6.063%, floating rate, due 01/31/1997 175,219
Northern Trust Corporation,
100,000 9.00%, due 05/15/1998 106,425
Sears Roebuck & Co. Medium Term Notes,
275,000 6.43%, due 08/31/1998 274,819
World Savings and Loan Association,
425,000 7.625%, due 02/18/1997 433,525
-------------
TOTAL CORPORATE BONDS (COST $4,812,095) $ 4,854,198
-------------
TOTAL INVESTMENTS AT VALUE (COST $44,837,647) - 96.9% $ 54,909,260
-------------
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
FACE
VALUE VALUE
----- -----
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 2.1%
Daiwa Securities,
$ 1,215,652 6.45%, dated 09/29/1995, due 10/02/1995,
repurchase proceeds $1,216,305 (Cost $1,215,652) $ 1,215,652
-------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS
AT VALUE - 99.0% $ 56,124,912
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.0% 574,642
-------------
NET ASSETS - 100.0% $ 56,699,554
-------------
-------------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015.
The aggregate market value of the collateral at September 30, 1995 was
$24,653,775. The Fund's pro-rata interest
in the collateral at September 30, 1995 was $1,245,338.
(b) Non-income producing security.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Balanced Fund (the Fund) is a series of shares of the Williamsburg
Investment Trust (the Trust). The Trust, registered as an open-end management
investment company under the Investment Company Act of 1940, as amended, was
organized as a Massachusetts business trust on July 18, 1988. The Fund began
operations on July 3, 1989.
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 the New York Stock Exchange (cur-
rently 4:00 p.m., Eastern time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national stock exchange are valued based upon
the closing price on the principal exchange where the security is traded. It is
expected that fixed income securities of the Fund will ordinarily be traded on
the over-the-counter market, and common stocks of the Fund will ordinarily be
traded on a national securities exchange, but may also be traded on the over-
the-counter market. When market quotations are not readily available, fixed
income securities may be valued on the basis of prices provided by an indepen-
dent pricing service. If a pricing service cannot provide a valuation, securi-
ties will be valued in good faith at fair market value using methods consistent
with those determined by the Board of Trustees.
Repurchase agreements -- The Fund generally enters into joint repurchase
agreements with other funds within the Trust. The joint repurchase agreement,
which is collateralized by U.S. Government obligations, is valued at cost which,
together with accrued interest, approximates market. At the time the Fund
enters into the joint repurchase agreement, the seller agrees that the value of
the underlying securities, including accrued interest, will at all times be
equal to or exceed the face amount of the repurchase agreement. In addition,
the Fund actively monitors and seeks additional collateral, as needed.
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 and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with tax regulations. Dividend income is recorded on the ex-
dividend date. Dividends arising from net investment income are declared and
paid quarterly to shareholders of the Fund. 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, which may differ from generally accepted accounting
principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
Securities traded on a "to-be-announced" basis -- The Fund occasionally trades
securities on a "to-be-announced" (TBA) basis. In a TBA transaction, the Fund
has committed to purchase securities for which all specific information is not
yet known at the time of the trade, particularly the face amount in mortgage-
backed securities transactions. Securities purchased on a TBA basis are not
settled until they are delivered to the Fund, normally 15 to 45 days later.
These transactions are subject to market fluctuations and their current value is
determined in the same manner as for other portfolio securities.
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 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.
The following information is based upon the federal income tax cost of portfolio
investments of the Fund as of September 30, 1995:
<TABLE>
<S> <C>
Gross unrealized appreciation . . . . . . . . . . $10,043,363
Gross unrealized depreciation . . . . . . . . . . (84,702)
-----------
Net unrealized appreciation . . . . . . . . . . . $ 9,958,661
-----------
-----------
</TABLE>
As of September 30, 1995, the tax cost basis of investments for the Fund was
$44,950,599.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds from
sales and maturities of investment securities, other than short-term invest-
ments, amounted to $17,418,612 and $18,583,891, respectively.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Lowe, Brockenbrough & Tattersall, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Fund pays the Adviser a fee, which is
computed and accrued daily and paid monthly at an annual rate of .65% on its
average daily net assets up to $250 million; .60% on the next $250 million of
such net assets; and .55% on such net assets in excess of $500 million.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
States in which shares of the Fund are offered may impose an expense limitation
based upon net assets. The Adviser has agreed to reimburse the Fund for
expenses which exceed the most restrictive applicable expense limitation of any
state. No waiver or reimbursement was required from the Adviser for the six
months ended September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
MGF Service Corp. (MGF), MGF provides administrative, pricing, accounting,
dividend disbursing, shareholder servicing and transfer agent services for the
Fund. For these services, MGF receives a monthly fee from the Fund at an annual
rate of .20% on its average daily net assets up to $25 million; .175% on the
next $25 million of such net assets; and .15% on such net assets in excess of
$50 million, subject to a $2,000 minimum monthly fee. In addition, the Fund
pays out-of-pocket expenses including, but not limited to, pricing fees and
postage and supplies.
Certain officers of the Trust are also officers of MGF.
4. DIRECTED BROKERAGE ARRANGEMENT
In order to reduce the total operating expenses of the Fund, the Fund's
custodian fees and a portion of other operating expenses have been paid through
an arrangement with a third-party broker-dealer who is compensated through
commission trades. Payment of expenses by the broker-dealer is based on a
percentage of commissions earned. Expenses reimbursed through the directed
brokerage arrangement totaled $13,804 for the six months ended September 30,
1995.
<PAGE>
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
THE JAMESTOWN SHORT TERM BOND FUND
No Load Mutual Fund
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
LOWE, BROCKENBROUGH & TATTERSALL, INC MGF SERVICE CORP.
6620 West Broad Street 312 Walnut Street
Suite 300 P.O. Box 5354
Richmond, Virginia 23230 Cincinnati, Ohio
1.804.288.0404 1.800.443.4249
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 13,307,544
-------------
-------------
At value (Note 1) $ 13,361,586
Investments in repurchase agreements (Note 1) 1,708,264
Receivable for securities sold 16,240
Receivable for capital shares sold 554
Interest receivable 186,002
Other assets 5,295
-------------
TOTAL ASSETS 15,277,941
-------------
LIABILITIES
Payable for securities purchased 1,302,720
Dividends payable 73,825
Accrued administration fees (Note 3) 2,000
Other accrued expenses 5,866
-------------
TOTAL LIABILITIES 1,384,411
-------------
NET ASSETS $ 13,893,530
-------------
-------------
Net assets consist of:
Capital shares $ 14,401,569
Accumulated net realized losses from security
transactions (568,546)
Undistributed net investment income 6,465
Net unrealized appreciation on investments 54,042
-------------
Net assets $ 13,893,530
-------------
-------------
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) 1,425,435
-------------
-------------
Net asset value, offering price and redemption price
per share (Note 1) $ 9.75
-------------
-------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 458,872
----------
EXPENSES
Investment advisory fees (Note 3) 25,458
Administrative fees (Note 3) 12,000
Professional fees 5,814
Custodian fees 3,976
Trustees' fees and expenses 3,701
Pricing costs 1,810
Other expenses 6,644
----------
TOTAL EXPENSES 59,403
Fees waived by the Adviser (Note 3) (25,458)
----------
NET EXPENSES 33,945
----------
NET INVESTMENT INCOME 424,927
----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 68,084
Net change in unrealized appreciation/depreciation
on investments 91,097
----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 159,181
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 584,108
----------
----------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Periods Ended September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
SEPT. 30, ENDED
1995 MARCH 31,
(UNAUDITED) 1995
--------------- --------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 424,927 $ 852,780
Net realized gains (losses) from security
transactions 68,084 (384,848)
Net change in unrealized appreciation/
depreciation on investments 91,097 136,445
--------------- --------------
Net increase in net assets from operations 584,108 604,377
--------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (425,391) (852,243)
From net realized gains from security
transactions -- (4,059)
--------------- --------------
Decrease in net assets from distributions
to shareholders (425,391) (856,302)
--------------- --------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 1,577,374 1,529,815
Net asset value of shares issued in
reinvestment of distributions to
shareholders 271,938 565,090
Payments for shares redeemed (2,236,940) (6,435,813)
--------------- --------------
Net decrease in net assets from capital
share transactions (387,628) (4,340,908)
--------------- --------------
TOTAL DECREASE IN NET ASSETS (228,911) (4,592,833)
NET ASSETS:
Beginning of period 14,122,441 18,715,274
--------------- --------------
End of period - (including undistributed
net investment income of $6,465 and
$6,929, respectively) $ 13,893,530 $ 14,122,441
--------------- --------------
--------------- --------------
(a)Summary of capital share activity follows:
Shares sold 160,912 157,550
Shares issued in reinvestment of distributions
to shareholders 27,863 58,839
Shares redeemed (228,183) (657,850)
--------------- --------------
Net decrease in shares outstanding (39,408) (441,461)
Shares outstanding, beginning of period 1,464,843 1,906,304
--------------- --------------
Shares outstanding, end of period 1,425,435 1,464,843
--------------- --------------
--------------- --------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share
Outstanding Throughout Each Period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED MARCH 31, PERIOD
SEPT. 30, ------------------------------------- ENDED
1995 MARCH 31,
(UNAUDITED) 1995 1994 1993 1992 (a)
----------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $9.64 $9.82 $10.07 $9.93 $10.00
----------- --------- --------- --------- ---------
Income from investment operations:
Net investment income 0.31 0.60 0.51 0.50 0.09
Net realized and unrealized gains (losses)
on investments 0.11 (0.17) (0.23) 0.13 (0.07)
----------- --------- --------- --------- ---------
Total from investment operations 0.42 0.43 0.28 0.63 0.02
----------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income (0.31) (0.61) (0.51) (0.49) (0.09)
----------- --------- --------- --------- ---------
Distributions from net realized gains -- -- (0.02) -- --
----------- --------- --------- --------- ---------
Total distributions (0.31) (0.61) (0.53) (0.49) (0.09)
----------- --------- --------- --------- ---------
Net asset value at end of period $9.75 $9.64 $9.82 $10.07 $9.93
----------- --------- --------- --------- ---------
----------- --------- --------- --------- ---------
Total return 8.73%(c) 4.53% 2.76% 6.40% 0.99%(c)
----------- --------- --------- --------- ---------
----------- --------- --------- --------- ---------
Net assets at end of period (000's) $13,894 $14,122 $18,715 $15,580 $5,320
----------- --------- --------- --------- ---------
----------- --------- --------- --------- ---------
Ratio of expenses to average net assets (b) 0.50%(c) 0.50% 0.50% 0.50% 0.50%(c)
Ratio of net investment income to average net assets 6.26%(c) 6.04% 5.22% 5.24% 4.86%(c)
Portfolio turnover rate 155%(c) 144% 324% 289% 97%
</TABLE>
(a) Represents the period from the commencement of operations (January 21,
1992) through March 31, 1992.
(b) Absent investment advisory fees waived by the Adviser, the ratios of
expenses to average net assets would have been 0.88% (c) for the six months
ended September 30, 1995 and 0.85%, 0.81%, 0.82% and 0.81% (c) for the
periods ended March 31, 1995, 1994, 1993 and 1992, respectively. (Note 3).
(c) Annualized.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- ------
<S> <C> <C>
U.S. TREASURY AND AGENCY OBLIGATIONS - 27.1%
U.S. TREASURY NOTES - 24.5%
$ 1,385,000 6.75%, due 05/31/1997 $ 1,404,044
1,075,000 5.125%, due 04/30/1998 1,055,349
950,000 5.875%, due 03/31/1999 947,473
-------------
3,406,866
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.6%
350,000 Medium term note, 6.47%, due 07/07/1997 352,733
-------------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS (COST $3,681,155) $ 3,759,599
-------------
MORTGAGE-BACKED SECURITIES - 31.7%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.1%
$ 19,449 Pool #216951, 8.00%, due 06/01/2002 $ 19,895
272,908 Series #204-B, 5.75%, due 06/15/2022 270,432
-------------
290,327
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 16.6%
525,000 Series #91-131E, 7.709%, due 10/25/1998 533,363
467,945 Series #93-135PB, 5.00%, due 01/25/2001 460,926
519,736 Pool #124029, 8.00%, due 12/01/2002 534,419
166,647 Pool #100061, 12.50%, due 06/15/2015 190,785
533,365 Pool #303346, 11.50%, due 02/01/2020 596,334
-------------
2,315,827
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 5.0%
700,000 TBA, 5.50%, adjustable rate, due 10/15/2010 692,562
-------------
OTHER MORTGAGE-BACKED SECURITIES - 8.0%
Bear Stearns Secured Investors Trust #87-2D,
110,470 9.95%, due 10/20/2018 116,890
General Electric Capital Mortgage Services, Inc. Trust #93-4A,
516,933 A1, 6.57%, floating rate, due 03/25/2023 517,414
Lehman Brothers Mortgage Trust #91-2-A1,
191,857 8.00%, due 03/20/1999 196,294
Resolution Trust Corporation #95-1-A2B,
275,000 7.50%, due 10/25/2028 276,547
-------------
1,107,145
-------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $4,420,181) $ 4,405,861
-------------
</TABLE>
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PAR VALUE VALUE
--------- ------
<S> <C> <C>
ASSET-BACKED SECURITIES - 2.1%
Chemical Financial Acceptance Corporation Grantor Trust #90-A,
$ 287,020 9.40%, due 03/15/1997 $ 290,249
-------------
TOTAL ASSET-BACKED SECURITIES (COST $290,832) $ 290,249
-------------
CORPORATE BONDS - 35.3%
Bear Stearns Company,
$ 205,000 7.625%, due 09/15/1999 $ 211,820
Beneficial Corporation,
400,000 8.27%, due 11/30/1998 420,096
Deere & Company,
250,000 8.25%, due 06/01/1996 253,393
Fleet Mortgage Group,
450,000 7.25%, due 01/15/1998 457,286
Ford Motor Credit Corporation,
350,000 7.50%, due 02/14/1997 356,415
40,000 8.00%, due 12/01/1997 41,314
Golden West Financial,
350,000 8.625%, due 08/30/1998 369,082
Key Corporation,
400,000 8.10%, due 12/20/1996 409,000
Mellon Financial,
375,000 6.50%, due 12/01/1997 376,556
National City Corporation,
275,000 8.375%, due 03/15/1996 277,456
325,000 6.063%, floating rate, due 01/31/1997 325,406
Norwest Financial,
275,000 6.25%, due 02/15/1997 274,964
J.C. Penny & Company,
300,000 10.00%, due 10/15/1997 321,366
Ryder System, Inc.,
500,000 8.38%, due 12/08/1999 532,265
Virginia Electric & Power Company,
275,000 7.25%, due 03/01/1997 279,458
-------------
TOTAL CORPORATE BONDS (COST $4,915,376) $ 4,905,877
-------------
TOTAL INVESTMENTS AT VALUE (COST $13,307,544) - 96.2% $ 13,361,586
-------------
</TABLE>
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
FACE
VALUE VALUE
------ ------
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 12.3%
Daiwa Securities,
$ 1,708,264 6.45%, dated 09/29/1995, due 10/02/1995,
repurchase proceeds $1,709,182 (Cost $1,708,264) $ 1,708,264
-------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS
AT VALUE - 108.5% $ 15,069,850
LIABILITES IN EXCESS OF OTHER ASSETS - (8.5)% (1,176,320)
-------------
NET ASSETS - 100.0% $ 13,893,530
-------------
-------------
</TABLE>
(a) Joint repurchase agreement is fully collateralized by $16,376,000 U.S.
Treasury Bond, 11.25%, due 02/15/2015. The aggregate market value of
the collateral at September 30, 1995 was $24,653,775. The Fund's pro-rata
interest in the collateral at September 30, 1995 was $1,749,980.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Short Term Bond Fund (the Fund) is a series of shares of the
Williamsburg Investment Trust (the Trust). The Trust, registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended, was organized as a Massachusetts business trust on July 18, 1988. The
Fund began operations on January 21, 1992.
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 the New York Stock Exchange (cur-
rently 4:00 p.m., Eastern time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. Securities traded on a national exchange are valued based upon the
closing price on the principal exchange where the security is traded. It is
expected that securities of the Fund will ordinarily be traded on the over-the-
counter market. When market quotations are not readily available, securities
may be valued on the basis of prices provided by an independent pricing service.
If a pricing service cannot provide a valuation, securities will be valued in
good faith at fair market value using methods consistent with those determined
by the Board of Trustees.
Repurchase agreements -- The Fund generally enters into joint repurchase
agreements with other funds within the Trust. The joint repurchase agreement,
which is collateralized by U.S. Government obligations, is valued at cost which,
together with accrued interest, approximates market. At the time the Fund
enters into the joint repurchase agreement, the seller agrees that the value of
the underlying securities, including accrued interest, will at all times be
equal to or exceed the face amount of the repurchase agreement. In addition,
the Fund actively monitors and seeks additional collateral, as needed.
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 and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with tax regulations. Dividends arising from net investment
income are declared and paid quarterly to shareholders of the Fund. 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, which may differ from
generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
Securities traded on a "to-be-announced" basis -- The Fund occasionally trades
securities on a "to-be-announced" (TBA) basis. In a TBA transaction, the Fund
has committed to purchase securities for which all specific information is not
yet known at the time of the trade, particularly the face amount in mortgage-
backed securities transactions. Securities purchased on a TBA basis are not
settled until they are delivered to the Fund, normally 15 to 45 days later.
These transactions are subject to market fluctuations and their current value is
determined in the same manner as for other portfolio securities.
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 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.
The following information is based upon the federal income tax cost of portfolio
investments of the Fund as of September 30, 1995:
<TABLE>
<S> <C>
Gross unrealized appreciation . . . . . . . . . . $ 134,551
Gross unrealized depreciation . . . . . . . . . . (230,557)
-----------
Net unrealized depreciation . . . . . . . . . . . $ (96,006)
-----------
-----------
</TABLE>
As of September 30, 1995, the tax cost basis of investments of the Fund was
$13,457,592. As of March 31, 1995, the Fund had capital loss carryforwards for
federal income tax purposes of $439,179 which expire on March 31, 2003. In
addition, the Fund had net realized capital losses of $47,403 during the period
from November 1, 1994 through March 31, 1995 which are treated for federal
income tax purposes as arising during the Fund's tax year ending March 31, 1996.
These capital loss carryforwards and "post-October" losses may be utilized in
future years to offset net realized capital gains prior to distributing such
gains to shareholders.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds from
sales and maturities of investment securities, other than short-term invest-
ments, amounted to $9,782,602 and $9,947,990, respectively.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Lowe, Brockenbrough & Tattersall, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Fund pays the Adviser a fee, which is
computed and accrued daily and paid monthly at an annual rate of .375% on its
average daily net assets.
The Adviser currently intends to limit the total operating expenses of the Fund
to .50% of average net assets; accordingly, the Adviser waived its entire
investment advisory fee of $25,458 for the six months ended September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
MGF Service Corp. (MGF), MGF provides administrative, pricing, accounting,
dividend disbursing, shareholder servicing and transfer agent services for the
Fund. For these services, MGF receives a monthly fee from the Fund at an annual
rate of .075% on its average daily net assets up to $200 million and .05% on
such net assets in excess of $200 million, subject to a $2,000 minimum monthly
fee. In addition, the Fund pays out-of-pocket expenses including, but not
limited to, pricing fees and postage and supplies.
Certain officers of the Trust are also officers of MGF.
<PAGE>
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
No Load Mutual Fund
SEMI-ANNUAL REPORT
September 30, 1995
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
LOWE, BROCKENBROUGH & TATTERSALL, INC. MGF SERVICE CORP.
6620 West Broad Street 312 Walnut Street
Suite 300 P.O. Box 5354
Richmond, Virginia 23230 Cincinnati, Ohio
1.804.288.0404 1.800.443.4249
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 7,764,331
-------------
-------------
At value (Note 1) $ 7,999,219
Cash 1,511
Interest receivable 117,616
Other assets 4,480
-------------
TOTAL ASSETS 8,122,826
-------------
LIABILITIES
Dividends payable 10,426
Payable for capital shares redeemed 419
Accrued advisory fees (Note 3) 1,064
Accrued administration fees (Note 3) 2,000
Other accrued expenses 5,546
-------------
TOTAL LIABILITIES 19,455
-------------
NET ASSETS $ 8,103,371
-------------
-------------
Net assets consist of:
Capital shares $ 7,949,777
Accumulated net realized losses from security
transactions (81,294)
Net unrealized appreciation on investments 234,888
-------------
Net assets $ 8,103,371
-------------
-------------
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) 821,843
-------------
-------------
Net asset value, offering price and redemption price
per share (Note 1) $ 9.86
-------------
-------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 211,921
---------
EXPENSES
Investment advisory fees (Note 3) 15,796
Administrative fees (Note 3) 12,000
Professional fees 4,040
Trustees' fees and expenses 3,702
Custodian fees 2,273
Pricing costs 2,237
Registration fees 1,714
Printing of shareholder reports 1,586
Other expenses 1,001
---------
TOTAL EXPENSES 44,349
Fees waived by the Adviser (Note 3) (14,732)
---------
NET EXPENSES 29,617
---------
NET INVESTMENT INCOME 182,304
---------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 37,167
Net change in unrealized appreciation/
depreciation on investments 107,530
---------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 144,697
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 327,001
---------
---------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF CHANGES IN NET ASSETS
Periods Ended September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
SEPT. 30, ENDED
1995 MARCH 31,
(UNAUDITED) 1995
----------- -----------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 182,304 $ 215,801
Net realized gains (losses) from security transactions 37,167 (117,113)
Net change in unrealized appreciation/depreciation
on investments 107,530 225,911
----------- -----------
Net increase in net assets from operations 327,001 324,599
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (182,304) (215,801)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 515,653 6,137,385
Net asset value of shares issued in reinvestment
of distributions to shareholders 123,115 144,189
Payments for shares redeemed (391,641) (734,913)
----------- -----------
Net increase in net assets from capital share transactions 247,127 5,546,661
----------- -----------
TOTAL INCREASE IN NET ASSETS 391,824 5,655,459
NET ASSETS:
Beginning of period 7,711,547 2,056,088
----------- -----------
End of period $ 8,103,371 $ 7,711,547
----------- -----------
----------- -----------
(a)Summary of capital share activity follows:
Shares sold 52,710 645,556
Shares issued in reinvestment of distributions to shareholders 12,553 15,122
Shares redeemed (40,005) (78,015)
----------- -----------
Net increase in shares outstanding 25,258 582,663
Shares outstanding, beginning of period 796,585 213,922
----------- -----------
Shares outstanding, end of period 821,843 796,585
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share
Outstanding Throughout Each Period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR PERIOD
SEPT. 30, ENDED ENDED
1995 MARCH 31, MARCH 31,
(UNAUDITED) 1995 1994 (a)
--------- -------- ---------
<S> <C> <C> <C>
Net asset value at beginning of period $9.68 $9.61 $10.00
--------- -------- --------
Income from investment operations:
Net investment income 0.23 0.44 0.23
Net realized and unrealized gains (losses) on investments 0.18 0.07 (0.39)
--------- -------- --------
Total from investment operations 0.41 0.51 (0.16)
--------- -------- --------
Less distributions:
Dividends from net investment income (0.23) (0.44) (0.23)
--------- -------- --------
Net asset value at end of period $9.86 $9.68 $9.61
--------- -------- --------
--------- -------- --------
Total return 8.46%(c) 5.47% (2.96)% (c)
--------- -------- --------
--------- -------- --------
Net assets at end of period (000's) $8,103 $7,712 $2,056
--------- -------- --------
--------- -------- --------
Ratio of expenses to average net assets (b) 0.75%(c) 0.75% 0.75%(c)
Ratio of net investment income to average net assets 4.62%(c) 4.64% 4.07%(c)
Portfolio turnover rate 20%(c) 97% 33%
</TABLE>
(a) Represents the period from the commencement of operations (September 1,
1993) through March 31, 1994.
(b) Absent investment advisory fees waived and/or expenses reimbursed by the
Adviser, the ratios of expenses to average net assets would have been
1.12%(c), 1.62% and 4.83%(c) for the periods ended September 30, 1995,
March 31, 1995 and March 31, 1994, respectively. (Note 3).
(c) Annualized.
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ ------
<S> <C> <C>
FIXED RATE REVENUE AND GENERAL
OBLIGATION (GO) BONDS - 94.0%
VIRGINIA - 89.4%
Arlington Co., Virginia, GO,
$ 300,000 5.60%, due 08/01/2006 $ 317,214
-------------
Cheasapeake, Virginia, GO,
100,000 5.70%, due 05/01/2007 104,813
-------------
Chesterfield Co., Virginia, GO,
100,000 5.80%, due 07/15/2001 107,031
100,000 5.90%, due 07/15/2002 108,108
-------------
215,139
-------------
Fairfax Co., Virginia, GO,
350,000 5.60%, due 05/01/2003 364,998
-------------
Fairfax Co., Virginia, Park Authority, Revenue,
300,000 6.25%, due 07/15/2005 315,441
-------------
Hanover Co., Virginia, Industrial Dev. Authority, Revenue,
225,000 6.25%, due 10/01/2011 233,595
-------------
Norfolk, Virginia, GO,
250,000 5.40%, due 02/01/2002 260,520
-------------
Norfolk, Virginia, Redevelopment & Housing Authority, Revenue,
100,000 6.10%, due 12/01/2004 106,641
-------------
Newport News, Virginia, GO,
150,000 6.20%, due 12/01/2001 160,362
-------------
Pittsylvania Co., Virginia, GO,
300,000 5.65%, due 07/01/2006 310,482
-------------
Portsmouth, Virginia, GO,
200,000 5.90%, due 11/01/2001 213,768
-------------
Prince William Co., Virginia, Park Authority, Revenue,
250,000 6.10%, due 10/15/2004 267,457
-------------
Prince William Co., Virginia, Service Auth. Water & Sewer, Revenue,
150,000 6.40%, due 07/01/2004 163,421
-------------
</TABLE>
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ ------
<S> <C> <C>
VIRGINIA - CONTINUED
Richmond, Virginia, GO,
$ 350,000 6.25%, due 01/15/2018 $ 352,807
-------------
Richmond, Virginia, Metropolitan Authority, Revenue,
250,000 6.00%, due 07/15/2004 269,305
-------------
Richmond, Virginia, Public Utility, Revenue,
150,000 7.10%, due 01/15/2000 161,070
-------------
Riverside, Virginia, Regulatory Jail Authority, Revenue,
300,000 5.30%, due 07/01/2002 310,113
-------------
Roanoke, Virginia, GO,
300,000 6.40%, due 08/01/2012 315,912
-------------
Southeastern Public Service Authority, Revenue,
200,000 6.60%, due 07/01/1998 211,760
-------------
Virginia Beach, Virginia, GO,
150,000 6.60%, due 08/01/2001, prerefunded at 102 167,577
325,000 6.20%, due 09/01/2013 337,519
-------------
505,096
-------------
Virginia State, GO,
250,000 6.75%, due 07/01/1996, prerefunded at 102 260,223
300,000 5.90%, due 06/01/2005 319,683
-------------
579,906
-------------
Virginia State Housing Dev. Authority, Revenue,
150,000 5.60%, due 01/01/2002 153,396
150,000 6.60%, due 11/01/2012 155,034
-------------
308,430
-------------
Virginia State Public Building Authority, Revenue,
250,000 5.30%, due 08/01/1998 257,405
-------------
Virginia State Transportation Board, Revenue,
350,000 6.25%, due 05/15/2012 366,558
-------------
Winchester, Virginia, Industrial Dev. Authority, Revenue
280,000 7.25%, due 01/01/2000, prerefunded at 102 314,356
-------------
York Co., Virginia, GO,
250,000 6.625%, due 03/01/2012 261,607
-------------
TOTAL VIRGINIA 7,248,176
-------------
</TABLE>
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ ------
<S> <C> <C>
PUERTO RICO - 4.6%
Puerto Rico Commonwealth, GO,
$ 100,000 5.80%, due 07/01/2003 $ 105,608
-------------
Puerto Rico Commonwealth, Highway and Transp. Authority, Revenue,
150,000 6.375%, due 07/01/2007 157,941
-------------
Puerto Rico Commonwealth Electric Power Authority, Revenue,
100,000 6.00%, due 07/01/1999 105,192
-------------
TOTAL PUERTO RICO 368,741
-------------
TOTAL FIXED RATE REVENUE AND GENERAL OBLIGATION BONDS
(COST $7,382,029) $ 7,616,917
-------------
MONEY MARKETS - 4.7%
$ 382,302 Biltmore Tax-Free Money Fund (Cost $382,302) $ 382,302
-------------
TOTAL INVESTMENTS AT VALUE (COST $7,764,331) - 98.7% $ 7,999,219
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.3% 104,152
-------------
NET ASSETS - 100.0% $ 8,103,371
-------------
-------------
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Tax Exempt Virginia Fund (the Fund) is a series of shares of the
Williamsburg Investment Trust (the Trust). The Trust, registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended, was organized as a Massachusetts business trust on July 18, 1988. The
Fund began operations on September 1, 1993.
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 the New York Stock Exchange (cur-
rently 4:00 p.m., Eastern time). Securities which are traded over-the-counter
are valued at the last sales price, if available, otherwise, at the last quoted
bid price. The Fund's securities will ordinarily be traded on the over-the-
counter market. When market quotations are not readily available, securities
may be valued on the basis of prices provided by an independent pricing service.
If a pricing service cannot provide a valuation, securities will be valued in
good faith at fair market value using methods consistent with those determined
by 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 and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with tax regulations. Dividends arising from net investment
income are declared daily and paid on the last business day of each month to
shareholders of the Fund. 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,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
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 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.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
The following information is based upon the federal income tax cost of portfolio
investments of the Fund as of September 30, 1995:
<TABLE>
<S> <C>
Gross unrealized appreciation . . . . . . . . . . $ 245,189
Gross unrealized depreciation . . . . . . . . . . (10,301)
-----------
Net unrealized appreciation . . . . . . . . . . . $ 234,888
-----------
-----------
</TABLE>
The tax basis of investments of the Fund is equal to the acquisition cost as
shown on the Statement of Assets and Liabilities. As of March 31, 1995, the
Fund had capital loss carryforwards for federal income tax purposes of $93,620
which expire on March 31, 2003. In addition, the Fund had net realized capital
losses of $24,841 during the period from November 1, 1994 through March 31, 1995
which are treated for federal income tax purposes as arising during the Fund's
tax year ending March 31, 1996. These capital loss carryforwards and "post-
October" losses may be utilized in future years to offset net realized capital
gains prior to distributing such gains to shareholders.
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1995, purchases and proceeds from
sales and maturities of investment securities, other than short-term invest-
ments, amounted to $1,045,458 and $731,442, respectively.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Lowe, Brockenbrough & Tattersall, Inc.
(the Adviser) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Fund pays the Adviser a fee, which is
computed and accrued daily and paid monthly at an annual rate of .40% on its
average daily net assets up to $250 million; .35% on the next $250 million of
such net assets; and .30% on such net assets in excess of $500 million.
The Adviser currently intends to limit the total operating expenses of the Fund
to .75% of average net assets; accordingly, the Adviser waived $14,732 of its
investment advisory fee for the six months ended September 30, 1995.
Certain trustees and officers of the Trust are also officers of the Adviser.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1995 (Unaudited)
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
MGF Service Corp. (MGF), MGF provides administrative, pricing, accounting,
dividend disbursing, shareholder servicing and transfer agent services for the
Fund. For these services, MGF receives a monthly fee from the Fund at an annual
rate of .15% on its average daily net assets up to $200 million and .10% on such
net assets in excess of $200 million, subject to a $2,000 minimum monthly fee.
In addition, the Fund pays out-of-pocket expenses including, but not limited to,
pricing fees and postage and supplies.
Certain officers of the Trust are also officers of MGF.
