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
<PAGE>
Annual Report
March 31, 1996
FBP CONTRARIAN EQUITY FUND
FBP CONTRARIAN BALANCED FUND
<PAGE>
LETTER TO SHAREHOLDERS MAY 15, 1996
===============================================================================
We are pleased to report on the progress of your Fund and its investments
for the fiscal year ending March 31,1996. The following table displays the
total return (capital change plus income) of the Funds for the past six months
and one year.
Six Twelve
MONTHS MONTHS
FBP Contrarian Equity Fund 9.1% 29.5%
FBP Contrarian Balanced Fund 7.2% 22.9%
REVIEW AND OUTLOOK
The first calendar quarter of 1996 gave investors mixed results from the
financial markets. Stocks continued last year's strong gains with the S&P 500
Index increasing 5.4%. However, bond returns were a negative 2.3%, as
long-term Treasury bond rates increased from 5.95% to 6.67%. This rise in
interest rates has continued throughout April and early May and is approaching
levels which could negatively affect stocks.
Expectations at year end were for a continued weak economy with low
inflation and additional Federal Reserve easing. The weak bond market during
the first quarter was a reflection of the market being wrong on all three
points. Our economy improved from last quarter's slow pace as housing and auto
sales rebounded and unemployment continued to drop. Combined with rising
agricultural and energy prices, inflation concerns resurfaced. And finally,
the Federal Reserve resisted lowering short-term interest rates without
renewed evidence of a weakening economy.
The surge in stock prices was fueled by the record inflow into mutual funds
from December through March, coupled with an economic pickup. The volatility
of stocks has increased, reflecting weakness in the bond market. Leadership
has been centered in previous laggards such as economically sensitive issues
and conglomerates. Financial issues continued their outperformance and retail
stocks, which we added to the Funds during November and December, displayed
surprising strength.
Over the balance of the year, the economy should continue to grow at a
sluggish 2% rate, with low inflation and lower interest rates by year end.
With the increase in interest rates over the past five months, we believe the
majority of the risk of higher rates is behind us. We therefore will begin to
lengthen our maturities in the Balanced Fund to take advantage of the higher
yields available. The Equity Fund's cash position has risen to 25% recently
due to new additions by shareholders. Any weakness which develops in the stock
market will be used as an opportunity to make additional investments.
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. For the six months and one year ended March 31, 1996, the total
return of the S&P 500 Index was 11.71% and 32.10%, respectively. 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.
Thank you for your continued confidence and investment in The Flippin,
Bruce & Porter Funds.
/s/John M. Flippin
John M. Flippin
President
/s/John T. Bruce, CFA
John T. Bruce, CFA
Vice President
Portfolio Manager
<PAGE>
A representation of the graphic material contained in the Flippin, Bruce
and Porter Funds Annual Report is set forth below.
1. Comparison of the Change in Value of a $10,000 Investment in the FBP
Contrarian Equity Fund and the Standard & Poor's 500 Index and Consumer Price
Index
STANDARD & POOR'S 500 INDEX: FBP CONTRARIAN EQUITY FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
07/31/93 10,000 07/31/93 10,000
09/30/93 2.99% 10,299 09/30/93 3.05% 10,305
12/31/93 2.32% 10,538 12/31/93 1.99% 10,510
03/31/94 -3.79% 10,139 03/31/94 -1.92% 10,308
06/30/94 0.42% 10,181 06/30/94 0.69% 10,379
09/30/94 4.88% 10,678 09/30/94 7.34% 11,141
12/31/94 -0.02% 10,676 12/31/94 -1.30% 10,996
03/31/95 9.74% 11,716 03/31/95 6.42% 11,702
06/30/95 9.55% 12,834 06/30/95 9.37% 12,798
09/30/95 7.95% 13,854 09/30/95 8.5% 13,890
12/31/95 6.02% 14,688 12/31/95 3.24% 14,340
03/31/96 5.37% 15,477 03/31/96 5.71% 15,158
<PAGE>
CONSUMER PRICE INDEX:
QTRLY
DATE RETURN BALANCE
07/31/93 10,000
09/30/93 0.40% 10,040
12/31/93 0.70% 10,110
03/31/94 0.50% 10,161
06/30/94 0.60% 10,222
09/30/94 0.90% 10,314
12/31/94 0.60% 10,376
03/31/95 0.80% 10,460
06/30/95 0.90% 10,554
09/30/95 0.40% 10,596
12/31/95 0.50% 10,649
03/31/96 0.80% 10,735
Past performance is not predictive of future performance.
The FBP Contrarian Equity Fund - Average Annual Total Returns
1 Year ........................29.54%
Since Inception*...............16.84%
*Initial public offering of shares was July 30, 1993.
2. Comparison of the Change in Value of a $10,000 Investment in the FBP
Contrarian Balanced Fund and the Standard & Poor's 500 Index and Consumer
Price Index
STANDARD & POOR'S 500 INDEX: FBP CONTRARIAN BALANCED FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
07/03/89 10,000 07/03/89 10,000
09/30/89 10.71% 11,071 09/30/89 -1.08% 9,892
12/31/89 2.06% 11,299 12/31/89 0.05% 9,897
03/31/90 -3.00% 10,960 03/31/90 -0.30% 9,867
06/30/90 6.28% 11,648 06/30/90 1.95% 10,059
09/30/90 -13.75% 10,047 09/30/90 -13.02% 8,749
12/31/90 8.97% 10,948 12/31/90 4.22% 9,118
03/31/91 14.53% 12,539 03/31/91 15.76% 10,555
06/30/91 -0.23% 12,510 06/30/91 1.21% 10,683
09/30/91 5.35% 13,179 09/30/91 4.18% 11,130
12/31/91 8.38% 14,284 12/31/91 4.29% 11,607
03/31/92 -2.53% 13,922 03/31/92 5.23% 12,214
06/30/92 1.90% 14,187 06/30/92 1.80% 12,434
09/30/92 3.15% 14,634 09/30/92 0.89% 12,545
12/31/92 5.03% 15,370 12/31/92 5.82% 13,275
03/31/93 4.36% 16,040 03/31/93 3.74% 13,772
06/30/93 0.48% 16,117 06/30/93 0.75% 13,875
09/30/93 2.58% 16,533 09/30/93 4.13% 14,448
12/31/93 2.32% 16,916 12/31/93 1.04% 14,598
03/31/94 -3.79% 16,275 03/31/94 -2.00% 14,306
06/30/94 0.42% 16,343 06/30/94 0.13% 14,324
09/30/94 4.88% 17,141 09/30/94 4.82% 15,015
12/31/94 -0.02% 17,138 12/31/94 -0.97% 14,870
03/31/95 9.74% 18,807 03/31/95 6.35% 15,814
06/30/95 9.55% 20,602 06/30/95 7.70% 17,031
09/30/95 7.95% 22,240 09/30/95 6.43% 18,126
12/31/95 6.02% 23,579 12/31/95 3.10% 18,689
03/31/96 5.37% 24,844 03/31/96 3.96% 19,429
<PAGE>
CONSUMER PRICE INDEX:
QTRLY
DATE RETURN BALANCE
07/03/89 10,000
09/30/89 0.75% 10,075
12/31/89 1.00% 10,151
03/31/90 2.01% 10,355
06/30/90 0.90% 10,448
09/30/90 1.71% 10,627
12/31/90 1.71% 10,808
03/31/91 0.90% 10,906
06/30/91 0.40% 10,950
09/30/91 0.60% 11,015
12/31/91 0.90% 11,115
03/31/92 0.70% 11,193
06/30/92 0.80% 11,283
09/30/92 0.70% 11,362
12/31/92 0.80% 11,453
03/31/93 0.90% 11,556
06/30/93 0.60% 11,626
09/30/93 0.40% 11,672
12/31/93 0.70% 11,754
03/31/94 0.50% 11,813
06/30/94 0.60% 11,884
09/30/94 0.90% 11,991
12/31/94 0.60% 12,063
03/31/95 0.80% 12,159
06/30/95 0.90% 12,269
09/30/95 0.40% 12,318
12/31/95 0.50% 12,380
03/31/96 0.80% 12,479
Past performance is not predictive of future performance.
The FBP Contrarian Balanced Fund - Average Annual Total Returns
1 Year ........................22.86%
5 Years........................12.98%
Since Inception*...............10.35%
*Initial public offering of shares was July 3, 1989.
<PAGE>
<TABLE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996
===================================================================================================================
<CAPTION>
SHARES COMMON STOCKS - 79.9% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS INFORMATION SERVICES - 2.3%
3,500 Dun & Bradstreet Corporation................................................. $ 212,188
--------------
CHEMICALS - 2.2%
1,400 Dow Chemical Company......................................................... 121,625
8,000 Ethyl Corporation............................................................ 77,000
--------------
......................................................................... 198,625
--------------
COMMERCIAL BANKING - 9.8%
5,344 Banc One Corporation......................................................... 190,380
2,300 Chemical Banking Corporation................................................. 162,150
2,700 Citicorp..................................................................... 216,000
1,629 First Chicago NBD Corporation................................................ 67,603
3,200 NationsBank Corporation...................................................... 256,400
--------------
......................................................................... 892,533
--------------
COMMUNICATIONS - 4.7%
5,900 GTE Corporation.............................................................. 258,862
2,700 Harris Corporation........................................................... 167,063
--------------
......................................................................... 425,925
--------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 6.0%
4,000 International Business Machines(c) .......................................... 444,500
11,300 Tandem Computers, Inc.(b) ................................................... 100,287
--------------
......................................................................... 544,787
--------------
CONSUMER GOODS & SERVICES - 3.9%
3,100 Dean Foods Company........................................................... 77,500
3,200 Philip Morris Companies, Inc................................................. 280,800
--------------
......................................................................... 358,300
--------------
DRUGS/MEDICAL EQUIPMENT - 10.1%
4,200 Allergan, Inc................................................................ 154,875
2,700 Bristol-Myers Squibb Company................................................. 231,187
1,700 Johnson & Johnson (c) ....................................................... 156,825
3,000 Merck & Company, Inc......................................................... 186,750
4,640 Pharmacia & Upjohn, Inc...................................................... 185,020
--------------
......................................................................... 914,657
--------------
DURABLE GOODS - 6.9%
5,200 Digital Equipment Corporation(b) (c) ........................................ 286,650
1,200 General Electric Company..................................................... 93,450
1,500 Genuine Parts Company........................................................ 67,500
5,600 WMX Technologies, Inc........................................................ 177,800
--------------
......................................................................... 625,400
--------------
FINANCE - 2.5%
3,000 Student Loan Marketing Association........................................... 229,500
--------------
<PAGE>
<CAPTION>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
===================================================================================================================
SHARES COMMON STOCKS - 79.9% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE - 4.7%
1,200 Aetna Life & Casualty Company................................................ $ 90,600
8,000 First Colony Corporation..................................................... 191,000
1,600 Marsh & McLennan Companies, Inc.............................................. 148,600
--------------
......................................................................... 430,200
--------------
MANAGEMENT SERVICES - 1.7%
2,800 PHH Corporation.............................................................. 155,750
--------------
OIL & OIL DRILLING - 6.0%
3,000 Equitable Resources, Inc..................................................... 87,750
12,500 Oryx Energy Company(b) ...................................................... 173,438
3,500 Pennzoil Company............................................................. 139,125
1,800 Schlumberger Limited (c) .................................................... 142,425
--------------
......................................................................... 542,738
--------------
PAPER & FOREST PRODUCTS - 1.5%
3,000 Weyerhaeuser Company......................................................... 138,375
--------------
PHOTOGRAPHICAL PRODUCTS - 2.0%
2,500 Eastman Kodak Company........................................................ 177,500
--------------
PRINTING - 1.9%
5,000 R. R. Donnelley & Sons Company............................................... 172,500
--------------
RETAIL STORES - 9.4%
6,100 Circuit City Stores, Inc..................................................... 182,237
5,200 Cracker Barrel Old Country Store, Inc........................................ 120,900
23,000 K-Mart Corporation(b) ....................................................... 215,625
6,000 Toys R Us, Inc.(b) .......................................................... 162,000
7,800 Wal-Mart Stores, Inc......................................................... 180,375
--------------
......................................................................... 861,137
--------------
TRANSPORTATION - 3.2%
4,800 Alexander & Baldwin, Inc..................................................... 115,200
2,500 Federal Express Corporation(b) ............................................. 174,688
--------------
......................................................................... 289,888
--------------
TRAVEL & INVESTMENT SERVICES - 1.1%
2,000 American Express Company..................................................... 98,750
--------------
TOTAL COMMON STOCKS (COST $5,530,374) ...................................... $ 7,268,753
--------------
<PAGE>
<CAPTION>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
===================================================================================================================
FACE
AMOUNT REPURCHASE AGREEMENTS(A) - 23.8% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,161,251 Lehman Brothers, 5.38%, dated 03/29/96, due 04/01/96,
repurchase proceeds $2,162,220 (Cost $2,161,251)......................... $ 2,161,251
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE - 103.7% ............... $ 9,430,004
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.7)% .............................. ( 340,090 )
--------------
NET ASSETS - 100.0% ......................................................... $ 9,089,914
==============
<FN>
(a)Joint repurchase agreement is fully collateralized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/96. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest
in the collateral at March 31, 1996 was $2,213,548.
(b)Non-income producing security.
(c)Security covers a call option.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
===================================================================================================================
FBP CONTRARIAN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
MARCH 31, 1996
===================================================================================================================
<CAPTION>
MARKET
VALUE OF PREMIUMS
SHARES COVERED CALL OPTIONS OPTION RECEIVED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Digital Equipment Corporation,
500 07/20/96 at $80........................................... $ 313 $ 2,710
400 01/18/97 at $70........................................... 1,750 3,371
International Business Machines,
500 07/20/96 at $130.......................................... 1,188 3,710
Johnson & Johnson,
300 04/20/96 at $90........................................... 1,162 1,573
Schlumberger Limited,
400 08/17/96 at $80........................................... 1,700 1,860
-------------- -------------
.......................................................... $ 6,113 $ 13,224
============== =============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996
===================================================================================================================
<CAPTION>
SHARES COMMON STOCKS - 60.4% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BUSINESS INFORMATION SERVICES - 1.5%
9,000 Dun & Bradstreet Corporation................................................. $ 545,625
--------------
CHEMICALS - 2.0%
6,000 Dow Chemical Company......................................................... 521,250
20,000 Ethyl Corporation............................................................ 192,500
--------------
......................................................................... 713,750
--------------
COMMERCIAL BANKING - 7.4%
13,590 Banc One Corporation......................................................... 484,144
7,500 Chemical Banking Corporation................................................. 528,750
8,000 Citicorp..................................................................... 640,000
5,430 First Chicago NBD Corporation................................................ 225,345
9,400 NationsBank Corporation...................................................... 753,175
--------------
......................................................................... 2,631,414
--------------
COMMUNICATIONS - 3.3%
15,000 GTE Corporation.............................................................. 658,125
8,500 Harris Corporation........................................................... 525,937
--------------
......................................................................... 1,184,062
--------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES - 4.0%
10,000 International Business Machines(c) .......................................... 1,111,250
37,000 Tandem Computers, Inc.(b) ................................................... 328,375
--------------
......................................................................... 1,439,625
--------------
CONSUMER GOODS & SERVICES - 3.4%
9,000 Dean Foods Company........................................................... 225,000
11,200 Philip Morris Companies, Inc................................................. 982,800
--------------
......................................................................... 1,207,800
--------------
DRUGS/MEDICAL EQUIPMENT - 7.8%
13,000 Allergan, Inc................................................................ 479,375
7,000 Bristol-Myers Squibb Company................................................. 599,375
7,500 Johnson & Johnson(c) ........................................................ 691,875
5,000 Merck & Company, Inc......................................................... 311,250
17,400 Pharmacia & Upjohn, Inc...................................................... 693,825
--------------
......................................................................... 2,775,700
--------------
DURABLE GOODS - 5.2%
13,200 Digital Equipment Corporation(b)(c) ......................................... 727,650
5,600 General Electric Company..................................................... 436,100
4,300 Genuine Parts Company........................................................ 193,500
16,000 WMX Technologies, Inc........................................................ 508,000
--------------
......................................................................... 1,865,250
--------------
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
===================================================================================================================
SHARES COMMON STOCKS - 60.4% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - 2.1%
10,000 Student Loan Marketing Association........................................... $ 765,000
--------------
INSURANCE - 4.8%
5,300 Aetna Life & Casualty Company................................................ 400,150
4,275 American International Group................................................. 400,247
18,000 First Colony Corporation..................................................... 429,750
5,000 Marsh & McLennan Companies, Inc.............................................. 464,375
--------------
......................................................................... 1,694,522
--------------
MANAGEMENT SERVICES - 1.4%
9,000 PHH Corporation.............................................................. 500,625
--------------
OIL & OIL DRILLING - 3.7%
6,800 Equitable Resources, Inc..................................................... 198,900
25,000 Oryx Energy Company(b) ...................................................... 346,875
9,600 Pennzoil Company............................................................. 381,600
5,000 Schlumberger Limited(c) ..................................................... 395,625
--------------
......................................................................... 1,323,000
--------------
PAPER & FOREST PRODUCTS - 1.3%
10,000 Weyerhaeuser Company......................................................... 461,250
--------------
PHOTOGRAPHICAL PRODUCTS - 1.4%
6,800 Eastman Kodak Company(c) .................................................... 482,800
--------------
PRINTING - 1.3%
13,000 R. R. Donnelley & Sons Company............................................... 448,500
--------------
RETAIL STORES - 6.9%
15,600 Circuit City Stores, Inc..................................................... 466,050
16,000 Cracker Barrel Old Country Store, Inc........................................ 372,000
68,000 K-Mart Corporation(b) ....................................................... 637,500
19,000 Toys R Us, Inc.(b) .......................................................... 513,000
20,000 Wal-Mart Stores, Inc......................................................... 462,500
--------------
......................................................................... 2,451,050
--------------
TRANSPORTATION - 1.8%
8,600 Alexander & Baldwin, Inc..................................................... 206,400
6,500 Federal Express Corporation(b) .............................................. 454,188
--------------
......................................................................... 660,588
--------------
TRAVEL & INVESTMENT SERVICES - 1.1%
8,000 American Express Company..................................................... 395,000
--------------
TOTAL COMMON STOCKS (COST $14,428,951) ................................. $ 21,545,561
--------------
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
===================================================================================================================
PAR VALUE U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 20.7% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES - 16.1%
$ 500,000 6.00%, due 06/30/96...................................................... $ 500,781
500,000 6.25%, due 01/31/97...................................................... 503,438
500,000 5.625%, due 06/30/97..................................................... 500,156
200,000 5.50%, due 09/30/97...................................................... 199,437
500,000 5.375%, due 05/31/98..................................................... 495,313
500,000 5.875%, due 08/15/98..................................................... 500,156
500,000 5.50%, due 02/28/99...................................................... 494,218
500,000 6.75%, due 06/30/99...................................................... 511,093
500,000 7.75%, due 01/31/00...................................................... 528,125
500,000 5.625%, due 02/28/01..................................................... 490,000
500,000 6.25%, due 02/15/03...................................................... 498,281
500,000 7.25%, due 05/15/04...................................................... 526,563
--------------
......................................................................... 5,747,561
--------------
FEDERAL FARM CREDIT BANK - .6%
200,000 5.84%, due 12/23/96...................................................... 200,601
--------------
FEDERAL HOME LOAN BANK - .6%
200,000 6.16%, due 01/02/97...................................................... 200,946
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - .4%
150,000 8.125%, due 09/30/96..................................................... 152,028
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.0%
1,000,000 9.05%, due 05/10/21...................................................... 1,060,869
--------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS (COST $7,308,126) .............. $ 7,362,005
--------------
<PAGE>
<CAPTION>
===================================================================================================================
PAR VALUE CORPORATE BONDS - 8.4% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - 1.3%
Signet Banking Corporation,
$ 150,000 9.625%, due 06/01/99..................................................... $ 162,333
United Dominion Realty,
300,000 7.25%, due 04/01/99...................................................... 299,985
--------------
......................................................................... 462,318
--------------
INDUSTRIAL - 4.3%
Baxter International, Inc.,
75,000 9.25%, due 12/15/99...................................................... 81,458
Boise Cascade Corporation,
175,000 10.125%, due 12/15/97.................................................... 185,230
Comdisco, Inc.,
150,000 9.75%, due 01/15/97...................................................... 154,458
Dayton Hudson Corporation,
125,000 9.25%, due 11/15/16...................................................... 131,353
195,000 9.875%, due 06/01/17..................................................... 206,881
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
===================================================================================================================
PAR VALUE CORPORATE BONDS - 8.4% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Delta Air Equipment Trust,
$ 146,000 9.43%, due 11/17/96...................................................... $ 148,553
Georgia Pacific Corporation,
300,000 9.75%, due 01/15/18...................................................... 314,435
Hilton Hotels,
300,000 7.70%, due 07/15/02...................................................... 302,222
--------------
......................................................................... 1,524,590
--------------
UTILITIES - 2.8%
Commonwealth Edison Company,
300,000 9.50%, due 05/01/16...................................................... 314,473
Niagara Mohawk Power,
500,000 9.50%, due 03/01/21...................................................... 479,782
Texas Eastern Transmission,
185,000 10.00%, due 10/01/11..................................................... 195,779
--------------
......................................................................... 990,034
--------------
TOTAL CORPORATE BONDS (COST $2,918,906) .................................... $ 2,976,942
--------------
TOTAL INVESTMENTS AT VALUE (COST $24,655,983) - 89.5% ...................... $ 31,884,508
--------------
<PAGE>
<CAPTION>
===================================================================================================================
FACE
AMOUNT REPURCHASE AGREEMENTS(A) - 10.0% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 3,576,231 Lehman Brothers, 5.38%, dated 03/29/96, due 04/01/96,
repurchase proceeds $3,577,834 (Cost $3,576,231)......................... $ 3,576,231
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE - 99.5% ................ $ 35,460,739
OTHER ASSETS IN EXCESS OF LIABILITIES - .5% ................................. 179,992
--------------
NET ASSETS - 100.0% ......................................................... $35,640,731
==============
<FN>
(a)Joint repurchase agreement is fully collateralized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/96. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest
in the collateral at March 31, 1996 was $3,662,768.
(b)Non-income producing security.
(c)Security covers a call option.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
MARCH 31, 1996
===================================================================================================================
<CAPTION>
MARKET
VALUE OF PREMIUMS
SHARES COVERED CALL OPTIONS OPTION RECEIVED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Digital Equipment Corporation,
2,000 07/20/96 at $80........................................... $ 1,250 $ 10,920
1,000 01/18/97 at $70........................................... 4,375 8,488
Eastman Kodak Company,
1,000 04/20/96 at $70........................................... 3,125 4,085
International Business Machines,
1,500 07/20/96 at $130.......................................... 3,563 11,189
Johnson & Johnson,
1,000 04/20/96 at $90........................................... 3,875 5,335
1,500 07/20/96 at $100.......................................... 3,375 7,815
Schlumberger Limited,
1,000 05/18/96 at $75........................................... 5,750 3,585
1,000 08/17/96 at $80........................................... 4,250 4,710
-------------- -------------
.......................................................... $ 29,563 $ 56,127
============== =============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996
===================================================================================================================
<CAPTION>
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................................. $ 5,530,374 $ 24,655,983
=============== ===============
At value (Note 1).................................................... $ 7,268,753 $ 31,884,508
Investments in repurchase agreements (Note 1).......................... 2,161,251 3,576,231
Interest receivable.................................................... 9,634 222,505
Dividends receivable................................................... 13,760 43,504
Receivable for capital shares sold..................................... 16,715 3,242
Other assets........................................................... -- 2,946
--------------- ---------------
TOTAL ASSETS......................................................... 9,470,113 35,732,936
--------------- ---------------
LIABILITIES
Payable for securities purchased....................................... 350,080 --
Payable for capital shares redeemed.................................... 1,500 3,968
Dividends payable...................................................... 7,204 15,437
Accrued advisory fees (Note 3)......................................... 4,210 22,910
Accrued administration fees (Note 3)................................... 2,000 5,800
Other accrued expenses................................................. 9,092 14,527
Covered call options, at value (Note 4)
(premiums received $13,224 and $56,127, respectively) ............... 6,113 29,563
--------------- ---------------
TOTAL LIABILITIES.................................................... 380,199 92,205
--------------- ---------------
NET ASSETS ............................................................... $ 9,089,914 $ 35,640,731
=============== ===============
Net assets consist of:
Capital shares......................................................... $ 7,197,699 $ 27,910,179
Undistributed net investment income.................................... 1,883 7,184
Accumulated net realized gains from security transactions.............. 144,842 468,279
Net unrealized appreciation on investments............................. 1,745,490 7,255,089
--------------- ---------------
Net assets................................................................ $ 9,089,914 $ 35,640,731
=============== ===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value).............................................. 639,722 2,397,993
=============== ===============
Net asset value, offering price and redemption price per share (Note 1)... $ 14.21 $ 14.86
=============== ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED MARCH 31, 1996
===================================================================================================================
<CAPTION>
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................... $ 73,785 $ 878,978
Dividends.............................................................. 133,911 450,838
--------------- ---------------
TOTAL INVESTMENT INCOME.............................................. 207,696 1,329,816
--------------- ---------------
EXPENSES
Investment advisory fees (Note 3)...................................... 49,665 237,270
Administrative fees (Note 3)........................................... 24,000 61,819
Custodian fees......................................................... 10,313 29,340
Professional fees...................................................... 7,761 12,801
Trustees' fees and expenses............................................ 5,573 5,573
Registration fees...................................................... 4,477 5,933
Postage and supplies................................................... 3,572 5,793
Printing of shareholder reports........................................ 2,701 4,842
Pricing costs.......................................................... 1,163 4,152
Other expenses......................................................... 1,399 3,142
--------------- ---------------
TOTAL EXPENSES....................................................... 110,624 370,665
Fees waived by the Adviser (Note 3).................................... ( 27,849 ) --
--------------- ---------------
NET EXPENSES......................................................... 82,775 370,665
--------------- ---------------
NET INVESTMENT INCOME .................................................... 124,921 959,151
--------------- ---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions.......................... 162,612 1,151,459
Net realized gains on option contracts written......................... 5,145 17,162
Net change in unrealized appreciation/depreciation on investments...... 1,328,851 4,142,023
--------------- ---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ......................... 1,496,608 5,310,644
--------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............................... $ 1,621,529 $ 6,269,795
=============== ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MARCH 31, 1996 AND 1995
===================================================================================================================
<CAPTION>
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income....................... $ 124,921 $ 88,556 $ 959,151 $ 731,725
Net realized gains on:
Security transactions..................... 162,612 4,052 1,151,459 355,025
Option contracts written.................. 5,145 2,015 17,162 25,009
Net change in unrealized appreciation/
depreciation on investments............... 1,328,851 447,385 4,142,023 1,297,628
------------ ------------- ------------- ------------
Net increase in net assets from operations..... 1,621,529 542,008 6,269,795 2,409,387
------------ ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.................. ( 124,493) ( 94,782) ( 958,803) ( 743,557)
From net realized gains..................... ( 22,509) ( 23,427) ( 863,702) ( 473,702)
------------ ------------- ------------- ------------
Decrease in net assets from
distributions to shareholders............... ( 147,002) ( 118,209) ( 1,822,505) ( 1,217,259)
------------ ------------- ------------- ------------
FROM CAPITAL SHARE TRANSACTIONS(A)
Proceeds from shares sold................... 3,064,694 2,323,648 6,203,415 4,099,675
Net asset value of shares issued in reinvestment
of distributions to shareholders.......... 105,309 65,930 1,739,955 1,156,950
Payments for shares redeemed................ ( 877,596) ( 625,056) ( 2,725,615) ( 2,441,929)
------------ ------------- ------------- ------------
Net increase in net assets from
capital share transactions.................. 2,292,407 1,764,522 5,217,755 2,814,696
------------ ------------- ------------- ------------
TOTAL INCREASE IN NET ASSETS .................. 3,766,934 2,188,321 9,665,045 4,006,824
NET ASSETS
Beginning of year........................... 5,322,980 3,134,659 25,975,686 21,968,862
------------ ------------- ------------- ------------
End of year - (including undistributed net
investment income of $1,883, $1,455,
$7,184 and $6,836, respectively).......... $ 9,089,914 $ 5,322,980 $ 35,640,731 $25,975,686
============ ============= ============= ============
(a) Summary of capital share activity:
Shares sold................................. 227,338 219,734 437,108 330,320
Shares issued in reinvestment of distributions
to shareholders........................... 7,962 6,159 122,643 93,803
Shares redeemed............................. ( 70,241) ( 59,971) ( 191,450) ( 195,945)
------------ ------------- ------------- ------------
Net increase in shares outstanding.......... 165,059 165,922 368,301 228,178
Shares outstanding, beginning of year....... 474,663 308,741 2,029,692 1,801,514
------------ ------------- ------------- ------------
Shares outstanding, end of year............. 639,722 474,663 2,397,993 2,029,692
============ ============= ============= ============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN EQUITY FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================
<CAPTION>
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
YEAR YEAR JULY 30,
ENDED ENDED 1993(A) TO
MARCH 31, MARCH 31, MARCH 31,
1996 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.................................. 0.24 0.21 0.12
Net realized and unrealized gains on investments....... 3.05 1.14 0.19
--------------- --------------- ---------------
Total from investment operations.......................... 3.29 1.35 0.31
--------------- --------------- ---------------
Less distributions:
Dividends from net investment income................... ( 0.24 ) ( 0.23 ) ( 0.10 )
Distributions from net realized gains.................. ( 0.05 ) ( 0.06 ) ( 0.06 )
--------------- --------------- ---------------
Total distributions....................................... ( 0.29 ) ( 0.29 ) ( 0.16 )
--------------- --------------- ---------------
Net asset value at end of period.......................... $ 14.21 $ 11.21 $ 10.15
=============== =============== ===============
Total return.............................................. 29.54% 13.52% 4.59% (c)
=============== =============== ===============
Net assets at end of period (000's)....................... $ 9,090 $ 5,323 $ 3,135
=============== =============== ===============
Ratio of expenses to average net assets(b) ............... 1.25% 1.25% 1.25% (c)
Ratio of net investment income to average net assets...... 1.89% 2.15% 1.98% (c)
Portfolio turnover rate................................... 12% 9% 7%
<FN>
(a)Commencement of operations.
(b)Absent fee waivers and/or expense reimbursements by the Adviser, the ratios
of expenses to average net assets would have been 1.67%, 2.27% and 3.10%(c)
for the periods ended March 31, 1996, 1995 and 1994, respectively (Note 3).
(c)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN BALANCED FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================
<CAPTION>
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
===================================================================================================================
YEARS ENDED MARCH 31,
1996 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year...... $ 12.80 $ 12.19 $ 12.10 $ 11.10 $ 9.90
----------- ----------- ---------- ---------- -----------
Income from investment operations:
Net investment income.................. 0.43 0.38 0.33 0.34 0.36
Net realized and unrealized gains
on investments....................... 2.44 0.87 0.15 1.06 1.17
----------- ----------- ---------- ---------- -----------
Total from investment operations.......... 2.87 1.25 0.48 1.40 1.53
----------- ----------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income... ( 0.43) ( 0.39 ) ( 0.32) ( 0.35) ( 0.33 )
Distributions from net realized gains.. ( 0.38) ( 0.25 ) ( 0.07) ( 0.05) --
----------- ----------- ---------- ---------- -----------
Total distributions....................... ( 0.81) ( 0.64 ) ( 0.39) ( 0.40) ( 0.33 )
----------- ----------- ---------- ---------- -----------
Net asset value at end of year............ $ 14.86 $ 12.80 $ 12.19 $ 12.10 $ 11.10
=========== =========== ========== ========== ===========
Total return.............................. 22.86% 10.54% 3.88% 12.76% 15.71%
=========== =========== ========== ========== ===========
Net assets at end of year (000's)......... $ 35,641 $ 25,976 $ 21,969 $ 16,435 $ 9,572
=========== =========== ========== ========== ===========
Ratio of expenses to average net assets... 1.17% 1.17% (a) 1.25%(b) 1.31%(b) 1.35% (b)
Ratio of net investment income
to average net assets.................. 3.04% 3.10% 2.64% 3.09% 3.61%
Portfolio turnover rate................... 17% 14% 28% 27% 14%
<FN>
(a)In an effort to reduce the total operating expenses of the Fund, a portion
of the Fund's custodian fees for the year ended March 31, 1995 was paid
through an arrangement with a third-party broker-dealer who was compensated
through commission trades. Payment of the fees was based on a percentage of
commissions earned. Absent expenses reimbursed through the directed
brokerage arrangement, the ratio of expenses to average net assets would
have been 1.20% for the year ended March 31, 1995.
(b)Absent fee waivers and/or expense reimbursements by the Adviser, the ratios
of expenses to average net assets would have been 1.36%, 1.43% and 1.66% for
the years ended March 31, 1994, 1993 and 1992, respectively (Note 3).
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The FBP Contrarian Equity Fund and the FBP Contrarian Balanced Fund (the
Funds) are 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 FBP Contrarian Equity Fund seeks long term growth of capital through
investment in a diversified portfolio comprised primarily of equity
securities, with current income as a secondary objective.
The FBP Contrarian Balanced Fund seeks long term capital appreciation and
current income through investment in a balanced portfolio of equity and fixed
income securities assuming a moderate level of investment risk.
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 value. 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 -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
Distributions to shareholders -- 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.
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.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
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.
<PAGE>
<TABLE>
The following information is based upon the federal income tax cost of
portfolio investments of each Fund as of March 31, 1996:
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized appreciation............................................. $ 1,904,816 $ 7,879,964
Gross unrealized depreciation............................................. ( 159,326 ) ( 624,875 )
--------------- ---------------
Net unrealized appreciation............................................... $ 1,745,490 $ 7,255,089
=============== ===============
- -------------------------------------------------------------------------------------------------------------------
</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 year ended March 31, 1996, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments,
amounted to $2,533,234 and $646,502, respectively, for the FBP Contrarian
Equity Fund and $8,984,247 and $4,408,828, 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 the FBP Contrarian Equity Fund to 1.25% of average daily
net assets. Accordingly, the Adviser voluntarily waived $27,849 of its
investment advisory fees for the FBP Contrarian Equity Fund for the year ended
March 31, 1996.
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
costs and postage and supplies.
Certain officers of the Trust are also officers of MGF.
<PAGE>
<TABLE>
4. COVERED CALL OPTIONS
A summary of covered call option contracts during the year ended March 31,
1996 is as follows:
- -------------------------------------------------------------------------------------------------------------------
<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 year....... -- $ -- 20 $ 6,170
Options written................................ 48 25,439 182 90,463
Options expired................................ ( 11) ( 5,145) ( 37) ( 17,162)
Options exercised.............................. ( 16) ( 7,070) ( 65) ( 23,344)
---------- ---------- ------------ ----------
Options outstanding at end of year............. 21 $ 13,224 100 $ 56,127
========== ========== ============ ==========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
===============================================================================
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statements of assets and liabilities
of the FBP Contrarian Equity Fund and the FBP Contrarian Balanced Fund, (each
a series of The Williamsburg Investment Trust), including the portfolios of
investments, as of March 31, 1996, and the related statements of operations
for the year then ended, and the statements of changes in net assets for each
of the two years in the period then ended, and the financial highlights for
the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the FBP Contrarian Equity Fund and the FBP Contrarian Balanced
Fund as of March 31, 1996, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended, and their financial highlights for the periods referred to above,
in conformity with generally accepted accounting principles.
Tait, Weller & Baker
<PAGE>
Philadelphia, Pennsylvania
April 26, 1996
<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
Legal Counsel
Sullivan & Worcester LLP
One Post Office Square
Boston, MA 02109
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,
<PAGE>
The Alabama Tax Free Bond Fund
The Government Street Funds
The Alabama Tax Free Bond Fund
No Load Mutual Funds
Annual Report
March 31, 1996
Investment Adviser
T. Leavell & Associates, Inc.
Founded 1979
<PAGE>
LETTER FROM THE PRESIDENT
===============================================================================
May 10, 1996
Dear Fellow Shareholders:
We are pleased to enclose for your review the audited annual report
of the condition of The Government Street Funds and of The Alabama Tax Free
Bond Fund and summaries of the Funds' portfolio assets as of March 31, 1996.
THE GOVERNMENT STREET EQUITY FUND
Steadily declining interest rates, improving corporate profitability,
and a huge flow of money into stock mutual funds all contributed to the stock
market surge that occurred during 1995 and the early part of 1996. For its
fiscal year ending March 31, 1996, The Government Street Equity Fund achieved
a total return of 25.96%. The net assets of the Fund were $41,420,823; net
asset value was $29.41. The total return of the S&P 500 Index was 32.10% for
the same twelve month period.
Continued growth in the value of common stocks will depend largely on
the growth of corporate earnings and on a low rate of inflation. A recent
increase in certain economic indicators has caused an upturn in interest
rates. Generally, rising interest rates have a negative impact on the stock
market. If growth in the economy proves to be moderate, however, the recent
rise in interest rates may prove to be only a temporary condition. In
addition, if there is a rebound in corporate earnings that is in step with the
economy, common stocks should continue their upward climb.
Forecasting interest rates and the direction of the United States
economy, however, is always a risky undertaking; it is even more so during a
Presidential election year. We make no effort to do so here. Investors in The
Government Street Equity Fund, with its broad diversification of quality
common stocks, will continue to participate in a growing stock market, yet
they also are well positioned defensively if the market experiences a
correction. On March 31, 1996, the Fund's portfolio consisted of 72 individual
equity issues divided almost equally between growth and value stocks. No
single investment in the portfolio exceeded 3% of the total value of the Fund.
THE GOVERNMENT STREET BOND FUND
In the face of a weakening economy last year, the Federal Reserve
Board eased credit by reducing the Federal Funds rate in July and again in
December. As a result, interest rates declined substantially throughout 1995.
Bond prices rose as yields fell across the range of maturities. In early 1996,
as data indicated that the economy was strengthening, bond prices, after
having peaked in January, declined slightly throughout the first quarter.
The Government Street Bond Fund achieved a total return of 9.43% for
its fiscal year ending March 31, 1996. This return compares favorably with the
Lehman Government/Corporate Intermediate Bond Index and with 3-month Treasury
bills which experienced returns of 9.56% and 5.75% for the same period,
respectively.
In keeping with the Fund's stated objective of maintaining an
intermediate term portfolio, on March 31, 1996, the Fund had a weighted
average maturity of 4.6 years. The portfolio consisted of 96 individual issues
with no single investment exceeding 3.9% of the total value of the Fund. U.S.
Treasury obligations and securities issued or guaranteed by agencies of the
U.S. Government represented approximately 40.3% of the Fund's total net
assets. High quality corporate bonds comprised 54.3% of the portfolio. The net
assets of the Fund were $28,717,758; net asset value was $20.87.
THE ALABAMA TAX FREE BOND FUND
The Alabama Tax Free Bond Fund also profited from the interest rate
environment that existed during 1995 and achieved a total investment return of
7.02% for the year ending March 31, 1996. This was in line with the 6.49%
return of the Lehman 3-Year Municipal Bond Index and with the 8.44% return of
the Lehman 7-Year General Obligation Municipal Bond Index achieved over the
same period.
The net assets of the Fund on March 31, 1996 were $15,480,479; net
asset value was $10.23. The weighted average maturity of the Fund's portfolio
was 6.3 years. All bonds were rated A or better by Standard & Poor's or
Moody's Investors Service (52% were rated AAA).
For the year ending March 31, 1996, the ratio of net investment
income to average net assets was 4.11%; to an Alabama investor in the maximum
combined federal and state income tax brackets (42.62%), the taxable
equivalent of this ratio was 7.16%.
The Alabama Tax Free Bond Fund has an intermediate average maturity;
bonds rated A or better; no 12b-1 fees; and no sales charges. With these
characteristics, we expect the Fund to continue to provide an attractive
investment option and reward those investors seeking current income exempt
from federal and Alabama income taxes.
Thank you for your continued confidence in The Government Street
Funds and in The Alabama Tax Free Bond Fund. Please call us if we can be of
further service to you.
Very truly yours,
/s/Thomas W. Leavell
Thomas W. Leavell
President
T. Leavell & Associates, Inc.
/s/Richard Mitchell
Richard Mitchell
President
The Government Street Funds
The Alabama Tax Free Bond Fund
<PAGE>
A representation of the graphic material contained in the Government
Street Funds and The Alabama Tax Free Bond Fund Annual Report is set forth
below.
1. Comparison of the Change in Value of a $10,000 Investment in The
Government Street Equity Fund, the Standard & Poor's 500 Index and the
Consumer Price Index
STANDARD & POOR'S 500 INDEX: GOVERNMENT STREET EQUITY FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
06/18/91 10,000 06/18/91 10,000
06/30/91 -1.87% 9,813 06/30/91 -2.05% 9,795
09/30/91 5.35% 10,338 09/30/91 5.12% 10,297
12/31/91 8.38% 11,204 12/31/91 8.26% 11,147
03/31/92 -2.53% 10,921 03/31/92 -2.96% 10,817
06/30/92 1.90% 11,128 06/30/92 0.05% 10,822
09/30/92 3.15% 11,479 09/30/92 3.62% 11,214
12/31/92 5.03% 12,056 12/31/92 5.42% 11,821
03/31/93 4.36% 12,582 03/31/93 0.35% 11,862
06/30/93 0.48% 12,642 06/30/93 -1.52% 11,682
09/30/93 2.58% 12,968 09/30/93 2.48% 11,971
12/31/93 2.32% 13,269 12/31/93 1.86% 12,194
03/31/94 -3.79% 12,766 03/31/94 -3.03% 11,825
06/30/94 0.42% 12,820 06/30/94 -3.00% 11,471
09/30/94 4.88% 13,446 09/30/94 5.37% 12,086
12/31/94 -0.02% 13,443 12/31/94 -1.91% 11,855
03/31/95 9.74% 14,752 03/31/95 6.75% 12,655
06/30/95 9.55% 16,161 06/30/95 7.18% 13,564
09/30/95 7.95% 17,445 09/30/95 6.05% 14,385
12/31/95 6.02% 18,495 12/31/95 5.01% 15,106
03/31/96 5.37% 19,488 03/31/96 5.53% 15,941
CONSUMER PRICE INDEX:
QTRLY
DATE RETURN BALANCE
06/18/91 10,000
06/30/91 0.30% 10,030
09/30/91 0.60% 10,090
12/31/91 0.90% 10,181
03/31/92 0.70% 10,253
06/30/92 0.80% 10,335
09/30/92 0.70% 10,407
12/31/92 0.80% 10,491
03/31/93 0.90% 10,586
06/30/93 0.60% 10,649
09/30/93 0.40% 10,692
12/31/93 0.70% 10,767
03/31/94 0.50% 10,821
06/30/94 0.60% 10,886
09/30/94 0.90% 10,984
12/31/94 0.60% 11,050
03/31/95 0.80% 11,138
06/30/95 0.90% 11,239
09/30/95 0.40% 11,284
12/31/95 0.50% 11,340
03/31/96 0.80% 11,431
Past performance is not predictive of future performance.
The Government Street Equity Fund - Average Annual Total Returns
1 Year ........................25.96%
Since Inception*...............10.23%
*Initial public offering of shares was June 3, 1991.
<PAGE>
2. Comparison of the Change in Value of a $10,000 Investment in The
Government Street Bond Fund, the Lehman Government/Corporate Intermediate Bond
Index and the 90-Day Treasury Bill Index
LEHMAN INTERMEDIATE GOVERNMENT/ GOVERNMENT STREET BOND FUND:
CORPORATE BOND INDEX:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
06/07/91 10,000 06/07/91 10,000
06/30/91 0.07% 10,007 06/30/91 0.45% 10,045
09/30/91 4.81% 10,488 09/30/91 3.97% 10,444
12/31/91 4.80% 10,992 12/31/91 4.67% 10,931
03/31/92 -0.91% 10,892 03/31/92 -1.08% 10,813
06/30/92 3.96% 11,323 06/30/92 3.75% 11,218
09/30/92 4.41% 11,822 09/30/92 4.36% 11,706
12/31/92 -0.36% 11,780 12/31/92 -0.68% 11,627
03/31/93 3.98% 12,249 03/31/93 4.28% 12,125
06/30/93 2.16% 12,513 06/30/93 1.99% 12,366
09/30/93 2.26% 12,796 09/30/93 2.48% 12,673
12/31/93 0.17% 12,818 12/31/93 -0.18% 12,650
03/31/94 -2.03% 12,558 03/31/94 -2.38% 12,350
06/30/94 -0.60% 12,482 06/30/94 -0.72% 12,261
09/30/94 0.82% 12,585 09/30/94 0.70% 12,347
12/31/94 -0.11% 12,571 12/31/94 -0.30% 12,310
03/31/95 4.39% 13,123 03/31/95 4.46% 12,859
06/30/95 5.00% 13,778 06/30/95 5.24% 13,533
09/30/95 1.66% 14,006 09/30/95 1.44% 13,727
12/31/95 3.52% 14,499 12/31/95 3.54% 14,213
03/31/96 -0.83% 14,378 03/31/96 -0.99% 14,072
90 DAY TREASURY BILL INDEX:
QTRLY
DATE RETURN BALANCE
06/07/91 10,000
06/30/91 0.39% 10,039
09/30/91 1.53% 10,193
12/31/91 1.47% 10,342
03/31/92 0.99% 10,445
06/30/92 1.10% 10,559
09/30/92 1.01% 10,666
12/31/92 0.77% 10,748
03/31/93 0.78% 10,832
06/30/93 0.77% 10,916
09/30/93 0.82% 11,005
12/31/93 0.78% 11,091
03/31/94 0.77% 11,176
06/30/94 0.96% 11,283
09/30/94 1.08% 11,405
12/31/94 1.33% 11,556
03/31/95 1.50% 11,729
06/30/95 1.50% 11,905
09/30/95 1.42% 12,075
12/31/95 1.47% 12,253
03/31/96 1.23% 12,404
Past performance is not predictive of future performance.
The Government Street Bond Fund - Average Annual Total Returns
1 Year ........................ 9.43%
Since Inception*............... 7.35%
*Initial public offering of shares was June 3, 1991.
<PAGE>
3. Comparison of the Change in Value of a $10,000 Investment in The
Alabama Tax Free Bond Fund, the Lehman 7-Year G.O. Municipal Bond Index and
the Lehman 3-Year Municipal Bond Index
LEHMAN 3 YEAR MUNICIPAL BOND INDEX: ALABAMA TAX FREE BOND FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
01/15/93 10,000 01/15/93 10,000
03/31/93 1.68% 10,168 03/31/93 0.96% 10,096
06/30/93 1.50% 10,321 06/30/93 2.81% 10,380
09/30/93 1.42% 10,467 09/30/93 2.79% 10,670
12/31/93 1.14% 10,586 12/31/93 1.05% 10,781
03/31/94 -1.34% 10,445 03/31/94 -3.17% 10,440
06/30/94 1.09% 10,558 06/30/94 0.63% 10,506
09/30/94 0.93% 10,657 09/30/94 0.54% 10,562
12/31/94 0.01% 10,658 12/31/94 -1.17% 10,439
03/31/95 2.81% 10,957 03/31/95 4.67% 10,927
06/30/95 2.12% 11,189 06/30/95 2.68% 11,219
09/30/95 2.14% 11,428 09/30/95 2.14% 11,459
12/31/95 1.54% 11,603 12/31/95 2.41% 11,735
03/31/96 0.56% 11,668 03/31/96 -0.36% 11,693
LEHMAN 7 YEAR G.O.MUNICIPAL BOND INDEX:
QTRLY
DATE RETURN BALANCE
01/15/93 10,000
03/31/93 2.55% 10,255
06/30/93 2.85% 10,547
09/30/93 2.93% 10,856
12/31/93 1.36% 11,004
03/31/94 -4.33% 10,527
06/30/94 1.38% 10,673
09/30/94 0.77% 10,755
12/31/94 -1.00% 10,647
03/31/95 5.42% 11,224
06/30/95 2.69% 11,526
09/30/95 3.29% 11,905
12/31/95 2.46% 12,198
03/31/96 -0.21% 12,172
Past performance is not predictive of future performance.
The Alabama Tax Free Bond Fund - Average Annual Total Returns
1 Year ........................ 7.02%
Since Inception*............... 4.99%
*Initial public offering of shares was January 15, 1993.
<PAGE>
<TABLE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1996
===================================================================================================================
<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................................... $ 29,396,048 $ 27,511,056 $ 15,041,049
=============== =============== ===============
At value (Note 1)..................................... $ 39,334,152 $ 27,353,249 $ 15,302,263
Investments in repurchase agreements (Note 1)............ 2,061,262 403,448 --
Cash .................................................... -- -- 1,492
Receivable for securities sold........................... -- 550,000 --
Receivable for capital shares sold....................... 2,370 100 1,360
Interest receivable...................................... 9,034 576,142 199,815
Dividends receivable..................................... 51,967 -- --
Other assets............................................. 2,841 2,414 965
--------------- --------------- ---------------
TOTAL ASSETS.......................................... 41,461,626 28,885,353 15,505,895
--------------- --------------- ---------------
LIABILITIES
Payable for securities purchased......................... -- 99,690 --
Payable for capital shares redeemed...................... 800 25,448 --
Dividends payable........................................ 6,361 22,052 14,916
Accrued advisory fees (Note 3)........................... 20,821 12,136 4,500
Accrued administration fees (Note 3)..................... 6,500 2,000 2,000
Other accrued expenses and liabilities................... 6,321 6,269 4,000
--------------- --------------- ---------------
TOTAL LIABILITIES..................................... 40,803 167,595 25,416
--------------- --------------- ---------------
NET ASSETS .............................................. $ 41,420,823 $ 28,717,758 $ 15,480,479
=============== =============== ===============
Net assets consist of:
Capital shares........................................... $ 30,687,750 $ 29,068,907 $ 15,425,435
Accumulated net realized gains (losses)
from security transactions............................ 792,841 ( 196,181 ) ( 206,170 )
Undistributed net investment income...................... 2,128 2,839 --
Net unrealized appreciation (depreciation)
on investments........................................ 9,938,104 ( 157,807 ) 261,214
--------------- --------------- ---------------
Net assets............................................... $ 41,420,823 $ 28,717,758 $ 15,480,479
=============== =============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)............ 1,408,431 1,376,329 1,513,539
=============== =============== ===============
Net asset value, offering price and
redemption price per share (Note 1)................... $ 29.41 $ 20.87 $ 10.23
=============== =============== ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF OPERATIONS
Year Ended March 31, 1996
===================================================================================================================
<CAPTION>
Government Government Alabama
Street Street Tax Free
Equity Bond Bond
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest.............................................. $ 177,220 $ 2,048,899 $ 690,087
Dividends............................................. 722,968 -- --
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME............................. 900,188 2,048,899 690,087
--------------- --------------- ---------------
EXPENSES
Investment advisory fees (Note 3)..................... 221,551 143,643 49,770
Administrative fees (Note 3).......................... 71,060 24,000 24,000
Custodian fees........................................ 19,163 8,345 5,790
Professional fees..................................... 11,251 11,251 8,251
Pricing costs......................................... 1,626 11,854 13,801
Trustees' fees and expenses........................... 5,573 5,573 5,573
Registration fees..................................... 3,850 4,804 5,882
Postage and supplies.................................. 5,329 4,716 3,731
Printing of shareholder reports....................... 4,869 3,612 3,718
Other expenses........................................ 2,433 910 1,468
--------------- --------------- ---------------
TOTAL EXPENSES...................................... 346,705 218,708 121,984
Fees waived by the Adviser (Note 3)................... -- -- 15,334
--------------- --------------- ---------------
NET EXPENSES........................................ 346,705 218,708 106,650
--------------- --------------- ---------------
NET INVESTMENT INCOME ................................... 553,483 1,830,191 583,437
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Net realized gains (losses)
from security transactions.......................... 1,093,838 ( 43,990 ) ( 3,107 )
Net change in unrealized appreciation/depreciation
on investments...................................... 6,795,880 791,184 340,163
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS ....................................... 7,889,718 747,194 337,056
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS ...................................... $ 8,443,201 $ 2,577,385 $ 920,493
=============== =============== ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
===================================================================================================================
<CAPTION>
Government Street Government Street Alabama Tax Free
Equity Fund Bond Fund Bond Fund
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
1996 1995 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income............. $ 553,483 $ 498,932 $1,830,191 $1,737,888 $ 583,437 $536,999
Net realized gains (losses)
from security transactions...... 1,093,838 102,880 (43,990) (127,816) (3,107) (200,904)
Net change in unrealized appreciation/
depreciation on investments...... 6,795,880 1,485,037 791,184 (519,326) 340,163 227,734
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
from operations 8,443,201 2,086,849 2,577,385 1,090,746 920,493 563,829
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income........ (552,981) (505,540) (1,829,817) (1,747,740) (583,437) (536,999)
From net realized gains........... (280,943) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders.................. (833,924) (505,540) (1,829,817) (1,747,740) ( 583,437) (536,999)
----------- ----------- ----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS(A):
Proceeds from shares sold......... 7,310,859 5,282,887 2,484,795 7,150,809 2,543,833 5,439,330
Net asset value of shares issued in
reinvestment of distributions
to shareholders.................. 798,493 483,554 1,597,448 1,523,068 410,869 234,034
Payments for shares redeemed...... (5,771,194) (2,975,563) (3,891,999) (2,869,621) (627,496) (2,600,426)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets from
capital share transactions........ 2,338,158 2,790,878 190,244 5,804,256 2,327,206 3,072,938
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS ....... 9,947,435 4,372,187 937,812 5,147,262 2,664,262 3,099,768
NET ASSETS:
Beginning of year................. 31,473,388 27,101,201 27,779,946 22,632,684 12,816,217 9,716,449
----------- ----------- ----------- ----------- ----------- -----------
End of year....................... $41,420,823 $31,473,388 $28,717,758 $27,779,946 $15,480,479 $12,816,217
=========== =========== =========== =========== =========== ===========
UNDISTRIBUTED NET
INVESTMENT INCOME ................ $ 2,128 $ 1,626 $ 2,839 $ 2,465 $ -- $ --
=========== =========== =========== =========== =========== ===========
(a) Summary of capital share activity:
Shares sold...................... 273,855 233,786 117,710 347,246 247,956 552,156
Shares issued in reinvestment of
distributions to shareholders 29,243 21,279 75,860 75,121 40,072 23,807
Shares redeemed.................. (213,229) (130,780) (183,993) (140,040) (61,341) (264,286)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in shares outstanding 89,869 124,285 9,577 282,327 226,687 311,677
Shares outstanding, beginning
of year 1,318,562 1,194,277 1,366,752 1,084,425 1,286,852 975,175
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding, end of year.. 1,408,431 1,318,562 1,376,329 1,366,752 1,513,539 1,286,852
=========== =========== =========== =========== =========== ===========
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET EQUITY FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
===================================================================================================================
<CAPTION>
JUNE 3,
YEARS ENDED MARCH 31, 1991(A) TO
MARCH 31,
1996 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.................. 0.40 0.38 0.30 0.34 0.28
Net realized and unrealized
gains (losses) on investments........ 5.75 1.19 ( 0.37) 1.71 1.35
----------- ----------- ---------- ---------- -----------
Total from investment operations.......... 6.15 1.57 ( 0.07) 2.05 1.63
----------- ----------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income... ( 0.40) ( 0.39) ( 0.30) ( 0.36) ( 0.26)
Distributions from net realized gains.. ( 0.21) -- -- -- --
----------- ----------- ---------- ---------- -----------
Total distributions....................... ( 0.61) ( 0.39 ) ( 0.30) ( 0.36) ( 0.26)
----------- ----------- ---------- ---------- -----------
Net asset value at end of period.......... $ 29.41 $ 23.87 $ 22.69 $ 23.06 $ 21.37
=========== =========== ========== ========== ===========
Total return.............................. 25.96% 7.02% ( 0.31%) 9.66% 9.99% (c)
=========== =========== ========== ========== ===========
Net assets at end of period (000's)....... $ 41,421 $ 31,473 $ 27,101 $ 21,735 $ 14,971
=========== =========== ========== ========== ===========
Ratio of expenses to average net assets (b) 0.94% 0.91% 1.00% 1.00% 1.00% (c)
Ratio of net investment income
to average net assets.................. 1.50% 1.71% 1.33% 1.55% 1.88% (c)
Portfolio turnover rate................... 31% 55% 63% 59% 20%
<FN>
(a)Commencement of operations.
(b)In an effort to reduce the total operating expenses of the Fund, a portion
of the Fund's administrative and custodian fees for periods ended prior to
March 31, 1996 were paid through an arrangement with a third-party
broker-dealer who was compensated through commission trades. Payment of the
fees was based on a percentage of commissions earned. Absent expenses
reimbursed through the directed brokerage arrangement, the ratios of
expenses to average net assets would have been 1.00%, 1.16%, 1.20% and
1.18%(c) for the periods ended March 31, 1995, 1994, 1993 and 1992,
respectively.
(c)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET BOND FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
===================================================================================================================
<CAPTION>
JUNE 3,
YEARS ENDED MARCH 31, 1991(A) TO
MARCH 31,
1996 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.................. 1.35 1.35 1.32 1.34 0.95
Net realized and unrealized
gains (losses) on investments........ 0.54 ( 0.53 ) ( 0.90) 1.10 0.67
----------- ----------- ---------- ---------- -----------
Total from investment operations.......... 1.89 0.82 0.42 2.44 1.62
----------- ----------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income... ( 1.35) ( 1.36) ( 1.32) ( 1.33) ( 0.95)
Distributions from net realized gains.. -- -- -- ( 0.01) --
----------- ----------- ---------- ---------- -----------
Total distributions....................... ( 1.35) ( 1.36) ( 1.32) ( 1.34) ( 0.95)
----------- ----------- ---------- ---------- -----------
Net asset value at end of period.......... $ 20.87 $ 20.33 $ 20.87 $ 21.77 $ 20.67
=========== =========== ========== ========== ===========
Total return.............................. 9.43% 4.12% 1.85% 12.14% 9.95% (c)
=========== =========== ========== ========== ===========
Net assets at end of period (000's)....... $ 28,718 $ 27,780 $ 22,633 $ 15,955 $ 6,506
=========== =========== ========== ========== ===========
Ratio of expenses to average net assets(b) 0.76% 0.85% 0.86% 0.88% 0.93% (c)
Ratio of net investment income
to average net assets.................. 6.38% 6.68% 6.15% 6.44% 7.02% (c)
Portfolio turnover rate................... 10% 11% 10% 17% 15%
<FN>
(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%(c) for
the periods ended March 31, 1994, 1993 and 1992, respectively (Note 3).
(c)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE ALABAMA TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
===================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
===================================================================================================================
<CAPTION>
Seven Months January 15,
Years Ended March 31, Ended 1993(b) to
March 31, August 31,
1996 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........................ 0.42 0.45 0.26 0.23
Net realized and unrealized
gains (losses) on investments.............. 0.27 -- ( 0.34) 0.30
------------- ------------- ------------- ------------
Total from investment operations................ 0.69 0.45 ( 0.08) 0.53
------------- ------------- ------------- ------------
Less distributions:
Dividends from net investment income......... ( 0.42) ( 0.45) ( 0.26) ( 0.23)
------------- ------------- ------------- ------------
Net asset value at end of period................ $ 10.23 $ 9.96 $ 9.96 $ 10.30
============= ============= ============= ============
Total return.................................... 7.02% 4.66% (1.50%)(d) 8.79%(d)
============= ============= ============= ============
Net assets at end of period (000's)............. $ 15,480 $ 12,816 $ 9,716 $ 3,429
============= ============= ============= ============
Ratio of expenses to average net assets(c) ..... 0.75% 0.75% 0.75%(d) 0.75%(d)
Ratio of net investment income
to average net assets........................ 4.11% 4.56% 4.46%(d) 4.01%(d)
Portfolio turnover rate......................... 4% 36% 3% 2%
<FN>
(a)Effective April 1, 1994, the Fund was reorganized and changed its fiscal
year end from August 31 to March 31.
(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 0.86%,
1.05%, 1.76%(d) and 2.75%(d) for the periods ended March 31, 1996, March 31,
1995, March 31, 1994 and August 31, 1993, respectively (Note 3).
(d)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
===================================================================================================================
<CAPTION>
Shares COMMON STOCKS - 94.9% Value
- -------------------------------------------------------------------------------------------------------------------
CHEMICALS AND DRUGS - 19.9%
<S> <C> <C>
2,000 Abbott Laboratories........................................................ $ 81,500
10,000 Becton Dickinson & Company................................................. 818,750
12,000 Biomet, Inc.(a) ........................................................... 168,000
14,375 Cardinal Health, Inc....................................................... 923,594
14,000 duPont (E.I.) de Nemours & Company......................................... 1,162,000
14,000 First Mississippi Corporation.............................................. 334,250
9,000 Goodrich (B.F.) Company.................................................... 715,500
7,000 Johnson & Johnson.......................................................... 645,750
5,500 Lilly (Eli) & Company...................................................... 357,500
5,000 PPG Industries, Inc....................................................... 244,375
10,000 Schering-Plough Corporation................................................ 581,250
18,000 Schulman (A.), Inc......................................................... 380,250
12,000 Sigma-Aldrich.............................................................. 687,000
12,000 Union Carbide Corporation.................................................. 595,500
12,000 U. S. HealthCare, Inc...................................................... 550,500
--------------
......................................................................... 8,245,719
--------------
CONSTRUCTION - 5.1%
12,750 Blount, Inc. - Class A..................................................... 392,062
12,000 Caterpiller, Inc........................................................... 816,000
16,250 Clayton Homes, Inc......................................................... 339,219
12,800 Valspar Corporation........................................................ 580,800
--------------
......................................................................... 2,128,081
--------------
CONSUMER PRODUCTS - 10.9%
19,650 Archer-Daniels-Midland Company............................................. 361,069
13,000 Belo (A.H.) Corporation - Class A.......................................... 442,000
16,000 Gillette Company........................................................... 828,000
10,000 Kimberly-Clark Corporation................................................. 745,000
12,000 Motorola, Inc.............................................................. 636,000
13,300 Polygram NV................................................................ 801,325
8,500 Procter & Gamble Company................................................... 720,375
--------------
......................................................................... 4,533,769
--------------
DURABLE GOODS - 17.8%
12,000 AMP, Inc................................................................... 496,500
11,250 Cabletron Systems, Inc.(a) ................................................ 745,313
26,800 Cisco Systems, Inc.(a) .................................................... 1,242,850
7,000 Cummins Engine Company, Inc. .............................................. 282,625
6,500 General Electric Company .................................................. 506,188
4,600 International Business Machines Corporation................................ 511,175
21,800 Loral Corporation.......................................................... 1,068,200
9,000 McDonnell Douglas Corporation.............................................. 824,625
11,000 Philips Electronics N.V.(a) ............................................... 400,125
11,000 Raytheon Company........................................................... 563,750
7,000 Shared Medical Systems, Inc................................................ 421,750
11,000 Stewart & Stevenson Services, Inc.......................................... 309,375
--------------
......................................................................... 7,372,476
--------------
FINANCIAL - 7.4%
14,250 AFLAC, Inc................................................................. 445,312
9,000 American Express Company................................................... 444,375
3,500 General Re Corporation..................................................... 510,125
8,500 Mellon Bank Corporation.................................................... 468,563
14,500 Star Banc Corporation...................................................... 935,250
4,000 Travelers Group, Inc....................................................... 264,000
--------------
......................................................................... 3,067,625
--------------
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
<CAPTION>
Shares COMMON STOCKS - 94.9% Value
===================================================================================================================
FOOD/BEVERAGES - 2.1%
<S> <C> <C>
20,000 Coca-Cola Enterprises...................................................... $ 617,500
17,500 Hudson Foods, Inc. - Class A............................................... 249,375
--------------
......................................................................... 866,875
--------------
METAL AND MINING - 5.5%
9,000 Aluminum Company of America................................................ 563,625
14,700 Broken Hill Proprietary Company, LTD....................................... 834,225
9,543 Freeport McMoran Copper & Gold, Inc. - Class B(a) ......................... 301,797
20,000 Placer Dome, Inc........................................................... 577,500
--------------
......................................................................... 2,277,147
--------------
OIL/ENERGY - 11.3%
12,500 Amoco Corporation.......................................................... 903,125
6,000 Atlantic Richfield Company................................................. 714,000
13,000 Chevron Corporation........................................................ 729,625
7,325 Exxon Corporation.......................................................... 597,903
12,500 Kerr McGee Corporation..................................................... 793,750
9,500 Shell Transport & Trading PLC.............................................. 762,375
5,000 Sonat, Inc................................................................. 180,000
--------------
......................................................................... 4,680,778
--------------
PAPER AND FOREST PRODUCTS - .5%
3,000 Georgia Pacific Corporation................................................ 208,125
--------------
RETAIL - 3.0%
4,500 Home Depot, Inc............................................................ 215,437
5,000 Nike, Inc. - Class B....................................................... 406,250
5,000 Wal-Mart Stores, Inc....................................................... 115,625
15,000 Walgreen Company........................................................... 489,375
--------------
......................................................................... 1,226,687
--------------
SERVICES - COMPUTER PROCESSING - .4%
4,000 Automatic Data Processing, Inc............................................. 157,500
--------------
TRANSPORTATION - 1.2%
7,000 Federal Express Corporation(a) ............................................ 489,125
--------------
UTILITIES - 9.8%
12,500 Ameritech Corporation...................................................... 681,250
11,000 AT&T Company............................................................... 673,750
12,800 Consolidated Edison Company of New York, Inc............................... 408,000
22,400 DPL, Inc................................................................... 534,800
14,890 Duke Power Company......................................................... 751,945
8,000 Hong Kong Telecommunications, LTD.......................................... 160,000
5,000 Nicor, Inc................................................................. 133,750
14,000 SBC Communications, Inc.................................................... 736,750
--------------
......................................................................... 4,080,245
--------------
TOTAL COMMON STOCKS (COST $29,396,048) ...................................... $ 39,334,152
--------------
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
<CAPTION>
Face
Amount REPURCHASE AGREEMENTS(b) - 5.0% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Lehman Brothers,
$ 2,061,262 5.38%, dated 03/29/1996, due 04/01/1996,
repurchase proceeds $2,062,186 (Cost $2,061,262)......................... $ 2,061,262
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE 99.9% ................. $ 41,395,414
OTHER ASSETS IN EXCESS OF LIABILITIES - .1% ................................. 25,409
--------------
NET ASSETS - 100.0% ......................................................... $ 41,420,823
==============
<FN>
(a)Non-income producing security.
(b)Joint repurchase agreement is fully collateralized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/1996. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest
in the collateral at March 31, 1996 was $2,111,140.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
===================================================================================================================
<CAPTION>
Par Value U.S. TREASURY AND AGENCY OBLIGATIONS - 39.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY NOTES - 20.5%
$ 390,000 7.625%, due 05/31/1996..................................................... $ 391,462
500,000 7.00%, due 09/30/1996...................................................... 504,062
325,000 8.00%, due 10/15/1996...................................................... 329,570
50,000 6.125%, due 12/31/1996..................................................... 50,266
50,000 8.00%, due 01/15/1997...................................................... 50,984
150,000 6.25%, due 01/31/1997...................................................... 151,031
800,000 6.875%, due 03/31/1997..................................................... 810,500
975,000 6.75%, due 05/31/1997...................................................... 987,492
40,000 8.50%, due 07/15/1997...................................................... 41,425
65,000 8.75%, due 10/15/1997...................................................... 67,844
10,000 7.875%, due 01/15/1998..................................................... 10,350
70,000 7.875%, due 04/15/1998..................................................... 72,756
50,000 8.25%, due 07/15/1998...................................................... 52,531
855,000 7.125%, due 10/15/1998..................................................... 879,848
225,000 7.00%, due 04/15/1999...................................................... 231,188
150,000 6.375%, due 07/15/1999..................................................... 151,642
100,000 8.00%, due 08/15/1999...................................................... 106,000
200,000 6.00%, due 10/15/1999...................................................... 200,000
250,000 7.50%, due 10/31/1999...................................................... 261,406
50,000 7.875%, due 11/15/1999..................................................... 52,906
100,000 8.50%, due 02/15/2000...................................................... 108,313
20,000 8.75%, due 08/15/2000...................................................... 22,012
50,000 8.50%, due 11/15/2000...................................................... 54,766
140,000 8.00%, due 05/15/2001...................................................... 151,287
125,000 7.875%, due 08/15/2001..................................................... 134,649
--------------
......................................................................... 5,874,290
--------------
U.S. TREASURY STRIPS - .4%
Coupon Treasury Investment Growth Security,
11,000 due 05/15/1996........................................................... 10,929
37,188 due 11/15/1996........................................................... 35,962
13,140 due 02/15/1997........................................................... 12,536
11,000 due 08/15/1998........................................................... 9,572
--------------
......................................................................... 68,999
--------------
Government Trust Certificate,
16,000 due 05/15/1996........................................................... 15,896
--------------
Treasury Investment Growth Receipts,
17,000 due 11/15/1996........................................................... 16,446
--------------
......................................................................... 101,341
--------------
<PAGE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Par Value U.S. TREASURY AND AGENCY OBLIGATIONS - 39.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL HOME LOAN BANK BONDS - 2.2%
$ 100,000 7.75%, due 04/25/1996...................................................... $ 100,164
500,000 7.57%, due 08/19/2004...................................................... 527,634
--------------
......................................................................... 627,798
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION BONDS - .7%
200,000 6.73%, due 01/05/2006...................................................... 194,076
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION BONDS - 8.5%
50,000 7.60%, due 01/10/1997...................................................... 50,778
750,000 7.85%, due 09/10/1998...................................................... 780,502
100,000 8.45%, due 07/12/1999...................................................... 106,360
200,000 5.98%, due 03/22/2000...................................................... 193,754
50,000 8.625%, due 04/10/2001..................................................... 50,000
250,000 8.70%, due 06/11/2001...................................................... 250,911
600,000 7.20%, due 01/10/2002...................................................... 596,421
175,000 7.90%, due 04/10/2002...................................................... 177,076
250,000 7.00%, due 08/12/2002...................................................... 247,235
--------------
......................................................................... 2,453,037
--------------
PRIVATE EXPORT FUNDING BONDS - 1.7%
470,000 7.90%, due 03/31/2000...................................................... 496,406
--------------
TENNESSEE VALLEY AUTHORITY BONDS - 5.4%
799,000 7.45%, due 10/15/2001...................................................... 817,106
745,000 6.875%, due 01/15/2002..................................................... 746,165
--------------
......................................................................... 1,563,271
--------------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS (COST $11,443,259) ............... $ 11,310,219
--------------
<PAGE>
<CAPTION>
===================================================================================================================
Par Value MORTGAGE-BACKED SECURITIES - 1.6% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - .4%
$ 100,000 Series #G92-40, class G, 7.00%, due 07/25/2002............................. $ 100,065
--------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .5%
40,436 Pool #15032, 7.50%, due 02/15/2007......................................... 40,410
27,079 Pool #176413, 7.50%, due 09/15/2016........................................ 27,062
47,968 Pool #170784, 8.00%, due 12/15/2016........................................ 49,002
38,419 Pool #181540, 8.00%, due 02/15/2017........................................ 39,247
--------------
......................................................................... 155,721
--------------
OTHER MORTGAGE-BACKED SECURITIES - .7%
Collateralized Mortgage Securities Corporation,
200,000 Series 1991-8PF, 7.30%, due 08/20/2020................................ 201,696
--------------
.........................................................................
TOTAL MORTGAGE-BACKED SECURITIES (COST $460,318) ............................ $ 457,482
--------------
<PAGE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Par Value CORPORATE BONDS - 54.3% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - 26.7%
American Express Company,
$ 350,000 8.50%, due 08/15/2001.................................................... $ 380,484
--------------
American Express Credit,
250,000 7.75%, due 03/01/1997................................................... 254,347
--------------
AmSouth Bancorp,
425,000 9.375%, due 05/01/1999................................................... 458,595
300,000 7.75%, due 05/15/2004.................................................... 313,209
--------------
......................................................................... 771,804
--------------
Associates Corporation, N.A.,
300,000 8.80%, due 08/01/1998.................................................... 316,691
--------------
BankAmerica Corporation,
496,000 8.375%, due 03/15/2002................................................... 534,194
--------------
Bear Stearns Company,
170,000 9.375%, due 06/01/2001................................................... 189,357
--------------
Chevron Capital Corporation,
500,000 7.45%, due 08/15/2004.................................................... 512,639
--------------
Ford Motor Credit Corporation,
500,000 7.875%, due 01/15/1997................................................... 508,077
--------------
General Electric Capital Corporation,
50,000 7.875%, due 05/01/1996................................................... 50,098
110,000 8.75%, due 11/26/1996.................................................... 112,173
100,000 7.24%, due 01/15/2002.................................................... 103,094
150,000 7.50%, due 03/15/2002.................................................... 156,484
--------------
......................................................................... 421,849
--------------
Merrill Lynch & Company, Inc.,
745,000 7.375%, due 08/17/2002................................................... 765,481
--------------
Regions Financial,
250,000 7.80%, due 12/01/2002.................................................... 259,376
--------------
Salomon, Inc.,
400,000 7.25%, due 01/15/2000.................................................... 401,239
480,000 7.50%, due 02/01/2003.................................................... 476,703
--------------
......................................................................... 877,942
--------------
Transamerica Financial Corporation,
785,000 7.50%, due 03/15/2004.................................................... 808,658
--------------
Wachovia Corporation,
1,035,000 7.00%, due 12/15/1999.................................................... 1,054,705
--------------
TOTAL FINANCE CORPORATE BONDS ............................................... 7,655,604
--------------
<PAGE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Par Value CORPORATE BONDS - 54.3% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL - 23.5%
Baxter Travenol Labs, Inc.,
$ 50,000 9.25%, due 09/15/1996................................................... $ 50,803
--------------
BP America Inc.,
265,000 8.50%, due 04/15/2001................................................... 287,288
--------------
Coca-Cola Company,
401,000 7.875%, due 09/15/1998.................................................. 416,586
--------------
duPont (E.I.) de Nemours & Company,
270,000 8.45%, due 10/15/1996.................................................... 274,262
150,000 9.15%, due 04/15/2000.................................................... 164,341
300,000 6.75%, due 10/15/2002.................................................... 301,266
--------------
......................................................................... 739,869
--------------
Exxon Capital Corporation,
100,000 7.875%, due 04/15/1996.................................................. 100,086
--------------
Hanson Overseas,
1,100,000 7.375%, due 01/15/2003.................................................. 1,118,843
--------------
International Business Machines Corporation,
700,000 7.25%, due 11/01/2002................................................... 719,285
--------------
Kimberly-Clark Corporation,
240,000 8.625%, due 05/01/2001................................................... 261,872
--------------
Limited, Inc.,
150,000 8.875%, due 08/15/1999................................................... 155,254
--------------
Merck & Company, Inc.,
205,000 7.75%, due 05/01/1996.................................................... 205,396
--------------
Mobil Corporation,
100,000 8.375%, due 02/12/2001................................................... 108,040
--------------
Philip Morris Companies, Inc.,
150,000 8.75%, due 06/15/1997.................................................... 154,723
305,000 7.375%, due 02/15/1999................................................... 312,322
175,000 7.75%, due 05/01/1999.................................................... 181,145
--------------
......................................................................... 648,190
--------------
Procter & Gamble Company,
150,000 8.70%, due 08/01/2001.................................................... 165,159
--------------
Raytheon Company,
550,000 6.50%, due 07/15/2005.................................................... 541,002
--------------
Wal-Mart Stores, Inc.,
160,000 8.00%, due 05/01/1996.................................................... 160,318
170,000 9.10%, due 07/15/2000.................................................... 186,527
100,000 8.625%, due 04/01/2001................................................... 108,992
745,000 7.50%, due 05/15/2004.................................................... 777,133
--------------
......................................................................... 1,232,970
--------------
TOTAL INDUSTRIAL CORPORATE BONDS ............................................ 6,750,643
--------------
<PAGE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Par Value CORPORATE BONDS - 54.3% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITY - 4.1%
Appalachian Power Company,
$ 25,000 7.50%, due 12/01/1998.................................................... $ 25,150
--------------
Consolidated Edison,
785,000 7.60%, due 01/15/2000.................................................... 811,914
--------------
Emerson Electric Company,
352,000 6.30%, due 11/01/2005.................................................... 342,237
--------------
TOTAL UTILITY CORPORATE BONDS ............................................... 1,179,301
--------------
TOTAL CORPORATE BONDS (COST $15,607,479) .................................... $ 15,585,548
--------------
TOTAL INVESTMENTS AT VALUE (COST $27,511,056) - 95.3% ...................... $27,353,249
--------------
<CAPTION>
===================================================================================================================
Face
Amount REPURCHASE AGREEMENTS(a) - 1.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Lehman Brothers,
$ 403,448 5.38%, dated 03/29/1996, due 04/01/1996,
repurchase proceeds $403,629 (Cost $403,448)............................. $ 403,448
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE - 96.7% ................ $ 27,756,697
OTHER ASSETS IN EXCESS OF LIABILITIES - 3.3% ................................ 961,061
--------------
NET ASSETS - 100.0% ......................................................... $28,717,758
==============
<FN>
(a)Joint repurchase agreement is fully collateralized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/1996. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest
in the collateral at March 31, 1996 was $413,210.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
===================================================================================================================
<CAPTION>
Principal ALABAMA FIXED RATE REVENUE AND GENERAL
Amount OBLIGATION (GO) BONDS - 96.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alabama Housing Finance Auth. Rev.,
$ 5,000 10.00%, due 12/01/1996..................................................... $ 5,068
25,000 6.00%, due 10/01/1997...................................................... 25,386
245,000 4.90%, due 10/01/1998...................................................... 248,643
25,000 6.45%, due 04/01/2001...................................................... 25,858
--------------
......................................................................... 304,955
--------------
Alabama Mental Health Finance Auth. Special Tax,
300,000 5.00%, due 05/01/2006...................................................... 297,411
--------------
Alabama State GO,
200,000 5.90%, due 03/01/1999...................................................... 208,848
100,000 5.70%, due 12/01/2002...................................................... 105,946
--------------
......................................................................... 314,794
--------------
Alabama State Corrections Institutions Rev.,
100,000 4.20%, due 04/01/1998...................................................... 100,248
--------------
Alabama State Industrial Access Road & Bridge Corp. GO,
100,000 4.00%, due 06/01/1998...................................................... 99,420
85,000 5.25%, due 06/01/2003...................................................... 86,415
--------------
......................................................................... 185,835
--------------
Alabama State Mun. Elec. Auth. Power Supply Rev.,
150,000 5.625%, due 09/01/2000..................................................... 156,876
340,000 5.75%, due 09/01/2001...................................................... 359,064
400,000 6.50%, due 09/01/2005, prerefunded 09/01/2001 at 101....................... 441,036
--------------
......................................................................... 956,976
--------------
Alabama State Public School & College Auth. Rev.,
100,000 4.40%, due 12/01/2000...................................................... 99,627
50,000 5.00%, due 12/01/2005...................................................... 50,072
--------------
......................................................................... 149,699
--------------
Alabama Water Pollution Control Rev.,
150,000 4.60%, due 02/15/1997...................................................... 151,395
160,000 3.75%, due 08/15/1997...................................................... 159,952
25,000 7.00%, due 08/15/2001...................................................... 26,767
200,000 6.25%, due 08/15/2004...................................................... 218,070
--------------
......................................................................... 556,184
--------------
Anniston, AL, GO,
250,000 5.50%, due 01/01/2004...................................................... 260,380
--------------
Anniston, AL, Regional Medical Center Board Hospital Rev.,
40,000 7.375%, due 07/01/2006, ETM................................................ 43,345
--------------
Auburn University, Alabama Rev.,
25,000 6.10%, due 06/01/1999...................................................... 26,221
50,000 4.90%, due 06/01/2001...................................................... 50,796
150,000 5.20%, due 06/01/2004...................................................... 152,889
325,000 5.25%, due 04/01/2005...................................................... 330,596
--------------
......................................................................... 560,502
--------------
Baldwin Co., AL, GO,
200,000 5.85%, due 08/01/2003...................................................... 213,382
400,000 5.00%, due 02/01/2007...................................................... 393,080
--------------
......................................................................... 606,462
--------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Principal ALABAMA FIXED RATE REVENUE AND GENERAL
Amount OBLIGATION (GO) BONDS - 96.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Baldwin Co., AL, Board of Education Rev.,
$ 50,000 5.40%, due 12/01/1998...................................................... $ 51,333
300,000 5.90%, due 12/01/2001...................................................... 312,522
--------------
......................................................................... 363,855
--------------
Birmingham, AL, GO,
100,000 5.80%, due 04/01/2002...................................................... 105,356
200,000 5.90%, due 04/01/2003...................................................... 211,958
--------------
......................................................................... 317,314
--------------
Birmingham, AL, Special Facilities Rev.,
100,000 4.45%, due 06/01/1999...................................................... 100,259
100,000 4.75%, due 06/01/2001...................................................... 100,632
--------------
......................................................................... 200,891
--------------
Birmingham, AL, Industrial Water Board Rev.,
100,000 5.00%, due 03/01/2001...................................................... 101,829
100,000 6.00%, due 07/01/2007...................................................... 104,298
--------------
......................................................................... 206,127
--------------
Birmingham, AL, Medical Clinic Board Rev.,
60,000 7.30%, due 07/01/2005, ETM................................................. 65,631
--------------
Birmingham, AL, Waterworks & Sewer Board Rev.,
100,000 4.40%, due 01/01/2001...................................................... 99,098
50,000 5.90%, due 01/01/2003...................................................... 53,072
50,000 4.60%, due 01/01/2004...................................................... 48,812
400,000 6.15%, due 01/01/2006...................................................... 426,060
--------------
......................................................................... 627,042
--------------
DCH Health Care Auth. of Alabama Rev.,
55,000 5.00%, due 06/01/2004...................................................... 54,960
--------------
Hoover, AL, Board of Education GO,
100,000 4.10%, due 02/15/1997...................................................... 100,509
400,000 6.00%, due 02/15/2006...................................................... 426,996
--------------
......................................................................... 527,505
--------------
Hoover, AL, Board of Education Special Tax,
200,000 6.625%, due 02/01/2010, prerefunded 02/01/2001 at 102...................... 220,952
--------------
Houston Co., AL, GO,
100,000 4.20%, due 10/01/1998...................................................... 99,976
250,000 5.00%, due 07/01/2002...................................................... 253,465
--------------
......................................................................... 353,441
--------------
Huntsville, AL, GO,
40,000 4.50%, due 12/01/1996...................................................... 40,265
115,000 5.15%, due 08/01/2000...................................................... 117,955
100,000 5.20%, due 11/01/2000...................................................... 102,911
120,000 5.30%, due 08/01/2001...................................................... 123,986
500,000 5.50%, due 11/01/2002...................................................... 522,705
100,000 5.90%, due 11/01/2005...................................................... 106,203
--------------
......................................................................... 1,014,025
--------------
Huntsville, AL, Electric Systems Rev.,
150,000 6.10%, due 12/01/2000...................................................... 159,482
150,000 5.00%, due 12/01/2003...................................................... 151,225
--------------
......................................................................... 310,707
--------------
Huntsville, AL, Water Systems Rev.,
150,000 5.15%, due 05/01/2004...................................................... 152,373
150,000 5.25%, due 05/01/2005...................................................... 152,362
--------------
......................................................................... 304,735
--------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
Principal ALABAMA FIXED RATE REVENUE AND GENERAL
Amount OBLIGATION (GO) BONDS - 96.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jefferson Co., AL, GO,
$ 150,000 5.55%, due 04/01/2002...................................................... $ 155,730
50,000 4.75%, due 04/01/2002...................................................... 49,845
100,000 5.00%, due 04/01/2004...................................................... 99,934
--------------
......................................................................... 305,509
--------------
Jefferson Co., AL, Sewer Rev ..............................................
140,000 5.15%, due 09/01/2002...................................................... 143,843
50,000 5.50%, due 09/01/2003...................................................... 52,099
300,000 5.75%, due 09/01/2005...................................................... 314,877
--------------
......................................................................... 510,819
--------------
Lee Co., AL, GO,
300,000 5.50%, due 02/01/2007...................................................... 304,629
--------------
Madison, AL, Board of Education School Warrants,
100,000 5.00%, due 02/01/1999...................................................... 101,953
--------------
Madison, AL, Warrants,
325,000 5.55%, due 04/01/2007...................................................... 334,714
--------------
Madison Co., AL, Board of Education Cap. Outlay Tax Antic. Warrants,
175,000 5.20%, due 09/01/2004...................................................... 179,186
--------------
Mobile, AL, GO,
200,000 5.00%, due 08/15/1998...................................................... 204,166
150,000 5.20%, due 02/15/1999...................................................... 153,774
200,000 5.40%, due 08/15/2000...................................................... 207,472
25,000 6.25%, due 08/01/2001...................................................... 26,981
25,000 6.30%, due 08/01/2001...................................................... 27,039
275,000 6.20%, due 02/15/2007, ETM................................................. 294,632
--------------
......................................................................... 914,064
--------------
Mobile, AL, Water & Sewer Commrs. Rev.,
55,000 6.30%, due 01/01/2003...................................................... 59,404
--------------
Mobile Co., AL, GO,
100,000 4.80%, due 02/01/2002...................................................... 100,398
50,000 6.10%, due 02/01/2002, prerefunded 02/01/2000 at 102....................... 53,686
160,000 6.70%, due 02/01/2011, prerefunded 02/01/2000 at 102....................... 175,266
--------------
......................................................................... 329,350
--------------
Mobile Co., AL., Board of Education Cap. Outlay Warrants,
400,000 5.00%, due 03/01/2008...................................................... 387,076
--------------
Mobile Co., AL, Gas Tax Antic. Warrants Rev.,
100,000 3.80%, due 02/01/1998...................................................... 99,564
100,000 4.50%, due 02/01/2003...................................................... 97,921
--------------
......................................................................... 197,485
--------------
Montgomery, AL, GO,
200,000 4.25%, due 05/01/1999, ETM................................................. 199,192
200,000 4.70%, due 05/01/2002...................................................... 199,468
--------------
......................................................................... 398,660
--------------
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
===================================================================================================================
<CAPTION>
Principal ALABAMA FIXED RATE REVENUE AND GENERAL
Amount OBLIGATION (GO) BONDS - 96.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Montgomery, AL, Waterworks & Sanitation Rev.,
$ 200,000 5.85%, due 03/01/2003...................................................... $ 210,912
--------------
Montgomery Co., AL, GO,
100,000 5.20%, due 11/01/2006...................................................... 100,684
--------------
Opelika, AL, GO,
100,000 4.60%, due 03/01/2003...................................................... 99,085
100,000 5.30%, due 07/01/2003...................................................... 103,335
--------------
......................................................................... 202,420
--------------
Ozark, AL, Industrial Development Board Rev.,
50,000 7.00%, due 06/01/1996...................................................... 50,212
--------------
Shelby Co., AL, GO,
205,000 5.20%, due 08/01/2000...................................................... 210,994
50,000 5.35%, due 08/01/2001...................................................... 51,874
--------------
......................................................................... 262,868
--------------
Shelby Co., AL, Hospital Board Rev.,
35,000 6.60%, due 02/01/2001, ETM................................................. 37,956
25,000 6.60%, due 02/01/2002...................................................... 27,359
40,000 6.60%, due 02/01/2003...................................................... 44,079
--------------
......................................................................... 109,394
--------------
Shelby Co., AL, Board of Education Cap. Outlay Special Tax Warrants,
100,000 4.80%, due 02/01/1998...................................................... 101,417
--------------
Tuscaloosa, AL, Board of Education GO,
100,000 5.10%, due 02/01/2004...................................................... 101,608
--------------
Tuscaloosa, AL, Board of Education Special Tax Warrants,
75,000 5.70%, due 02/15/2005...................................................... 78,668
--------------
University of Alabama General Fee Series A Rev.,
250,000 4.15%, due 10/01/1999...................................................... 247,910
50,000 5.00%, due 11/01/2000...................................................... 50,982
100,000 4.60%, due 10/01/2001...................................................... 99,952
200,000 5.10%, due 10/01/2002...................................................... 204,214
--------------
......................................................................... 603,058
--------------
Vestavia Hills, AL, Board of Education Cap. Outlay Rev.,
55,000 5.25%, due 02/01/2004...................................................... 56,201
--------------
Vestavia Hills, AL, Warrants,
125,000 4.90%, due 04/01/2005...................................................... 123,195
--------------
TOTAL ALABAMA (COST $14,666,248) ............................................ $ 14,927,462
--------------
<PAGE>
<CAPTION>
===================================================================================================================
Principal
Amount MONEY MARKETS - 2.4% Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 374,801 Biltmore Tax-Free Money Fund (Cost $374,801)................................. $ 374,801
-------------
TOTAL INVESTMENTS AT VALUE (COST $15,041,049) - 98.8% ...................... $ 15,302,263
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.2% ................................ 178,216
--------------
NET ASSETS - 100.0% ......................................................... $ 15,480,479
==============
<FN>
ETM -Escrowed to maturity.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
===============================================================================
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 Government Street Equity Fund's investment objective is to seek
capital appreciation through the compounding of dividends and capital gains,
both realized and unrealized, on its investments in common stocks. Current
income is of secondary importance.
The Government Street Bond Fund's investment objectives are to preserve
capital, to provide current income and to protect the value of the portfolio
against the effects of inflation by limiting investments to securities in the
four highest quality ratings. Capital appreciation is of secondary importance.
The Alabama Tax Free Bond Fund's investment objectives are to provide current
income exempt from both federal income taxes and the personal income taxes of
Alabama and to preserve capital. Capital appreciation is of secondary
importance.
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 value. 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 -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
Distributions to shareholders -- 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.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
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.
<PAGE>
<TABLE>
The following information is based upon the federal income tax cost of
portfolio investments of each Fund as of March 31, 1996:
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Government Government Alabama
Street Street Tax Free
Equity Fund Bond Fund Bond Fund
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized appreciation............................ $ 10,249,595 $ 434,872 $ 323,336
Gross unrealized depreciation............................ ( 311,491 ) ( 592,679 ) ( 62,122 )
--------------- --------------- ---------------
Net unrealized appreciation (depreciation)............... $ 9,938,104 $ ( 157,807 ) $ 261,214
=============== =============== ===============
- -------------------------------------------------------------------------------------------------------------------
</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, 1996, The Government Street Bond Fund and The Alabama Tax Free
Bond Fund had capital loss carryforwards for federal income tax purposes of
$178,365, and $203,770, respectively, which expire through the year 2004. In
addition, The Government Street Bond Fund and The Alabama Tax Free Bond Fund
realized net capital losses of $17,816 and $2,400, respectively, during the
period from November 1, 1995 through March 31, 1996, which are treated for
federal income tax purposes as arising in the tax year ending March 31, 1997.
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 year ended March 31, 1996, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments,
amounted to $13,641,468 and $10,423,185, respectively, for The Government
Street Equity Fund, $2,741,173 and $2,982,487, respectively, for The
Government Street Bond Fund, and $2,645,989 and $516,213, 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 daily 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 daily 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 year ended March 31, 1996, no such
reimbursement was required. The Adviser currently intends to limit the total
operating expenses of the Alabama Tax Free Bond Fund to .75% of average daily
net assets. Accordingly, the Adviser voluntarily waived $15,334 of its
investment advisory fees for the Fund during the year.
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 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 daily 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
daily 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.
<PAGE>
Report of Independent Certified Public Accountants
===============================================================================
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statements of assets and liabilities
of The Government Street Equity Fund, The Government Street Bond Fund and The
Alabama Tax Free Bond Fund, (each a series of The Williamsburg Investment
Trust), including the portfolios of investments, as of March 31, 1996, and the
related statements of operations for the year then ended, and the statements
of changes in net assets for each of the two years in the period then ended
and the financial highlights for the periods indicated thereon. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Government Street Equity Fund, The Government Street Bond Fund
and The Alabama Tax Free Bond Fund, as of March 31, 1996, the results of their
operations for the year then ended, the changes in their net assets for each
of the two years in the period then ended and their financial highlights for
the periods referred to above, in conformity with generally accepted
accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
The Jamestown Equity Fund
No Load Mutual Fund
Annual Report
March 31, 1996
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 EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1996
Performance of The Jamestown Equity Fund
The past fiscal year has been a very good one for The Jamestown Equity
Fund. For the twelve months ended March 31, 1996, your Fund had a total return
of 28.0% after operating expenses. For the same period, the Standard and
Poor's 500 (S&P 500) Index, which is 100% invested in common stocks, had a
positive return of 32.1%. Since the Fund is invested in stocks only to the
extent of 90% to 95% at most times (90.5% as of March 31, 1996), we are
pleased with the comparative total return results.
Our equity sector allocations were mostly in line with those of the S&P
500 with only slight overweightings and underweightings. Sectors outperforming
the overall stock market for the fiscal year included capital goods (+39.8%),
finance (+48.6%) and health care (+47.5%), and the Fund's comparative
weightings in such sectors added value in those instances. In the
underperforming utilities sector of the market, the Fund was underweighted
relative to the S&P 500 which also added value to performance for the twelve
month period. The technology sector, while performing in line with the market
during the calendar year, was a nominal drag on the Fund's performance during
the fiscal year.
Looking forward to the following year, we are somewhat cautious on the
stock market but believe the portfolio is structured accordingly. We will
continue to buy high quality issues on any significant pullbacks.
<PAGE>
For a comparison of the Fund's performance from inception versus the
Standard and Poor's 500 Index and the Consumer Price Index, please refer to
the chart below:
A representation of the graphic material contained in THE JAMESTOWN
EQUITY FUND Annual Report is set forth below.
Comparison of the Change in Value of a $10,000 Investment in the
Jamestown Equity Fund, the Standard & Poor's 500 Index and the Consumer Price
Index
STANDARD & POOR'S 500 INDEX: THE JAMESTOWN EQUITY FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
12/01/92 10,000 12/01/92 10,000
12/31/92 1.23% 10,123 12/31/92 1.68% 10,168
03/31/93 4.36% 10,564 03/31/93 0.54% 10,223
06/30/93 0.48% 10,615 06/30/93 -1.00% 10,121
09/30/93 2.58% 10,889 09/30/93 1.85% 10,308
12/31/93 2.32% 11,142 12/31/93 0.67% 10,377
03/31/94 -3.79% 10,719 03/31/94 -0.82% 10,291
06/30/94 0.42% 10,764 06/30/94 1.64% 10,460
09/30/94 4.88% 11,290 09/30/94 1.70% 10,637
12/31/94 -0.02% 11,287 12/31/94 -1.35% 10,493
03/31/95 9.74% 12,387 03/31/95 10.17% 11,560
06/30/95 9.55% 13,569 06/30/95 8.46% 12,538
09/30/95 7.95% 14,648 09/30/95 6.80% 13,390
12/31/95 6.02% 15,530 12/31/95 5.22% 14,089
03/31/96 5.37% 16,363 03/31/96 5.03% 14,798
<PAGE>
CONSUMER PRICE INDEX:
QTRLY
DATE RETURN BALANCE
12/01/92 10,000
12/31/92 0.20% 10,020
03/31/93 0.90% 10,110
06/30/93 0.60% 10,171
09/30/93 0.40% 10,212
12/31/93 0.70% 10,283
03/31/94 0.50% 10,334
06/30/94 0.60% 10,396
09/30/94 0.90% 10,490
12/31/94 0.60% 10,553
03/31/95 0.80% 10,638
06/30/95 0.90% 10,734
09/30/95 0.40% 10,777
12/31/95 0.50% 10,831
03/31/96 0.80% 10,917
Past performance is not predictive of future performance.
The Jamestown Equity Fund - Average Annual Total Returns
1 Year ........................28.00%
Since Inception*...............12.48%
*Initial public offering of shares was December 1, 1992.
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
ASSETS
<S> <C>
Investments in securities:
At acquisition cost $ 13,267,778
===================
At value (Note 1) $ 16,154,275
Investments in repurchase agreements (Note 1) 1,775,596
Dividends receivable 19,246
Interest receivable 5,458
Other assets 600
-------------------
TOTAL ASSETS 17,955,175
-------------------
LIABILITIES
Payable for securities purchased 75,705
Dividends payable 4,626
Payable for capital shares redeemed 5,229
Accrued advisory fees (Note 3) 9,496
Accrued administration fees (Note 3) 2,900
Other accrued expenses 697
-------------------
TOTAL LIABILITIES 98,653
-------------------
NET ASSETS $ 17,856,522
===================
Net assets consist of:
Capital shares $ 14,713,478
Accumulated net realized gains from security transactions 253,687
Undistributed net investment income 2,860
Net unrealized appreciation on investments 2,886,497
-------------------
Net assets $ 17,856,522
===================
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 1,279,411
===================
Net asset value, offering price and redemption price per share (Note 1) $ 13.96
===================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN EQUITY FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1996
<S> <C>
INVESTMENT INCOME
Dividends $ 218,571
---------------
Interest 61,273
TOTAL INVESTMENT INCOME 279,844
---------------
EXPENSES
Investment advisory fees (Note 3) 79,891
Administrative fees (Note 3) 26,514
Custodian fees 10,317
Professional fees 8,251
Trustees' fees and expenses 5,580
Registration fees 3,645
Postage and supplies 1,914
Printing of shareholder reports 1,033
Pricing costs 895
Other expenses 2,485
---------------
TOTAL EXPENSES 140,525
Expenses reimbursed through a directed brokerage arrangement (Note 4) (16,562)
---------------
NET EXPENSES 123,963
---------------
NET INVESTMENT INCOME 155,881
---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 567,635
Net change in unrealized appreciation/depreciation on investments 2,204,131
---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,771,766
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,927,647
===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1996 1995
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 155,881 $ 52,250
Net realized gains from security transactions 567,635 23,087
Net change in unrealized appreciation/depreciation
on investments 2,204,131 641,075
--------------- ----------------
Net increase in net assets from operations 2,927,647 716,412
--------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (153,763) (56,136)
From net realized gains from security transactions (304,491) (13,937)
--------------- ----------------
Decrease in net assets from distributions to shareholders (458,254) (70,073)
--------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 7,025,441 5,324,788
Net asset value of shares issued in reinvestment
of distributions to shareholders 420,203 61,777
Payments for shares redeemed (169,689) (733,223)
--------------- ----------------
Net increase in net assets from capital share transactions 7,275,955 4,653,342
--------------- ----------------
TOTAL INCREASE IN NET ASSETS 9,745,348 5,299,681
NET ASSETS:
Beginning of year 8,111,174 2,811,493
--------------- ----------------
End of year - (including undistributed net investment
income of $2,860 and $742, respectively) $ 17,856,522 $ 8,111,174
=============== ================
(a)Summary of capital share activity follows:
Shares sold 542,324 504,565
Shares issued in reinvestment of distributions to shareholders 31,979 5,806
Shares redeemed (13,292) (67,864)
--------------- ----------------
Net increase in shares outstanding 561,011 442,507
Shares outstanding, beginning of year 718,400 275,893
--------------- ----------------
Shares outstanding, end of year 1,279,411 718,400
=============== ================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
<CAPTION>
Period
Years ended March 31, Ended
March 31,
1996 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 0.15 0.10 0.08 0.04
Net realized and unrealized gains (losses)
on investments 2.98 1.15 (0.01) 0.18
------- ------- ------- -------
Total from investment operations 3.13 1.25 0.07 0.22
------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.15) (0.12) (0.06) (0.04)
Distributions from net realized gains (0.31) (0.03) -- --
------- ------- ------- -------
Total distributions (0.46) (0.15) (0.06) (0.04)
------- ------- ------- -------
Net asset value at end of period $13.96 $11.29 $10.19 $10.18
======= ======= ======= =======
Total return 28.00% 12.33% 0.67% 6.81%(c)
======= ======= ======= =======
Net assets at end of period (000's) $17,857 $8,111 $2,811 $1,953
======= ======= ======= =======
Ratio of expenses to average net assets (b) 1.14% 1.44% 1.50% 1.50%(c)
Ratio of net investment income to average net assets 1.27% 1.18% 0.82% 1.13%(c)
Portfolio turnover rate 54% 48% 92% 54%
<FN>
(a)Represents the period from the commencement of operations (December 1,
1992) through March 31, 1993.
(b)For the year ended March 31, 1996, 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). For periods
prior to March 31, 1996, no expenses were reimbursed through a directed
brokerage arrangement, but investment advisory fees were waived and/or
expenses reimbursed by the Adviser. Absent fee waivers and/or expense
reimbursements by the Adviser, the ratio 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)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 90.5%
Advertising - 2.6%
10,000 Interpublic Group of Companies, Inc. $ 472,500
--------------
Aerospace - 2.7%
9,500 Raytheon Company 486,875
--------------
Building and Construction - 2.4%
9,500 Foster Wheeler Corporation 421,562
--------------
Chemicals - 4.1%
4,400 Air Products & Chemicals 240,350
5,900 E.I. duPont de Nemours & Company 489,700
--------------
730,050
--------------
Commercial Banking - 5.8%
5,000 Crestar Financial Corporation 287,500
7,000 First Union Corporation 423,500
4,000 NationsBank Corporation 320,500
--------------
1,031,500
--------------
Communications - 10.4%
15,300 Alltel Corporation 474,300
8,000 AT&T Company 490,000
27,000 Equifax, Inc. 543,375
6,500 SBC Communications, Inc. 342,062
--------------
1,849,737
--------------
Computers/Computer Technology Services - 4.0%
6,100 Cisco Systems, Inc. (b) 282,888
2,800 Computer Sciences Corporation (b) 197,050
4,000 Intel Corporation 227,500
--------------
707,438
--------------
Consumer Products - 16.8%
5,800 Avon Products, Inc. 497,350
4,800 CPC International, Inc. 333,000
6,800 General Electric Company 529,550
4,000 Kimberly-Clark Corporation 298,000
3,600 Motorola, Inc. 190,800
3,000 Procter & Gamble Company 254,250
15,000 Sysco Corporation 493,125
17,000 Whitman Corporation 412,250
--------------
3,008,325
--------------
<PAGE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - Continued
Drugs/Medical Equipment - 6.8%
10,400 Abbott Laboratories $ 423,800
4,800 Merck and Company, Inc. 298,800
8,500 Schering-Plough Corporation 494,062
--------------
1,216,662
--------------
Durable Goods - 2.2%
8,000 Avnet, Inc. 386,000
--------------
Electronics - 2.8%
5,400 Hewlett-Packard Company 507,600
--------------
Entertainment - 1.9%
5,246 Walt Disney Company 335,088
--------------
Fast Food Restaurants - 1.9%
7,000 McDonald's Corporation 336,000
--------------
Fire Systems - 3.3%
16,600 Tyco International Ltd. 593,450
--------------
Health Care Centers - 6.3%
12,000 Columbia/HCA Healthcare Corporation 693,000
10,900 Manor Care, Inc. 427,825
--------------
1,120,825
--------------
Insurance - 3.1%
6,000 American International Group 561,750
--------------
Oil and Gas Drilling - 6.8%
6,500 Amoco Corporation 469,625
13,500 Enron Corporation 497,813
2,900 Texaco, Inc. 249,400
--------------
1,216,838
--------------
Real Estate - 2.2%
26,500 United Dominion Realty Trust 387,563
--------------
<PAGE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - Continued
Retail Stores - 4.4%
11,900 Circuit City Stores, Inc. $ 355,512
12,000 Lowe's Companies, Inc. 429,000
--------------
784,512
--------------
Total Common Stocks (Cost $13,267,778) $ 16,154,275
--------------
<CAPTION>
Face
Value
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 9.9%
$ 1,775,596 Lehman Brothers, 5.38%, dated 03/29/1996, due 04/01/1996,
repurchase proceeds $1,776,392 (Cost $1,775,596) $ 1,775,596
--------------
Total Investments and Repurchase Agreements
at Value - 100.4% $ 17,929,871
Liabilities in Excess of Other Assets - (.4)% (73,349)
--------------
Net Assets - 100.0% $ 17,856,522
==============
<FN>
(a)Joint repurchase agreement is fully collateralized by $15,840,000 U.S. Treasury Note, 7.75%, due 03/31/1996.
The aggregate market value of the collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest
in the collateral at March 31, 1996 was $1,818,561.
(b)Non-income producing security.
See accompanying notes to the finacial statements.
</FN>
</TABLE>
<PAGE>
THE JAMESTOWN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Significant Accounting Policies
The Jamestown Equity Fund (the Fund) is 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 Fund began operations on December 1, 1992.
The Fund's investment objective is long term growth of capital through
investment in a diversified portfolio composed primarily of common stocks.
Current income is incidental to this objective and may not be significant.
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
(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.
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 -- Interest income is accrued as earned. Dividend
income is recorded on the ex-dividend date.
Distributions to shareholders -- 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.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
<PAGE>
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 March 31, 1996:
Gross unrealized appreciation...................$ 2,942,472
Gross unrealized depreciation.................. (78,537)
-----------
Net unrealized appreciation.....................$ 2,863,935
===========
As of March 31, 1996, the tax cost basis of investments for the Fund was
$13,290,340 and the Fund had $276,249 of accumulated undistributed net capital
gains for federal income tax purposes.
2. Investment Transactions
During the year ended March 31, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $11,730,917 and $6,163,071, 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 $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 year
ended March 31, 1996.
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
costs 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 $16,562 for the year ended March 31,
1996.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statement of assets and liabilities of
The Jamestown Equity Fund (a series of The Williamsburg Investment Trust),
including the portfolio of investments, as of March 31, 1996, and the related
statement of operations for the year then ended, and the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Jamestown Equity Fund as of March 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
The Jamestown Balanced Fund
No Load Mutual Fund
Annual Report
March 31, 1996
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 BALANCED FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1996
Performance of The Jamestown Balanced Fund
The past fiscal year has been an excellent one for The Jamestown Balanced
Fund. For the twelve months ended March 31, 1996, your Fund had a total
return of 22.8% after operating expenses. This compared favorably to the
Lipper Balanced Fund Index which was up 20.3%. For the same period, the
Standard and Poor's 500 (S&P 500) Index, which is 100% invested in common
stocks, had a positive return of 32.1%. Since the Fund is invested in
stocks only to the extent of 60% to 70% at most times (67.4% as of March
31, 1996), we are pleased with the comparative total return results. Our
composite index, calculated assuming a portfolio mix of 60% equities, 30%
bonds and 10% cash, would have resulted in a total return of 22.7%.
Our equity sector allocations were mostly in line with those of the S&P
500 with only slight overweightings and underweightings. Sectors
outperforming the overall stock market for the fiscal year included
capital goods (+39.8%), finance (+48.6%) and health care (+47.5%), and
the Fund's comparative weightings in such sectors added value in those
instances. In the underperforming utilities sector of the market, the
Fund was underweighted relative to the S&P 500 which also added value to
performance for the twelve month period. The technology sector, while
performing in line with the market during the calendar year, was a
nominal drag on the Fund's performance during the fiscal year.
The bond portion of the Fund also provided positive returns for the
fiscal year, although less than was the case with stocks. The Lehman
Intermediate Government/Corporate Bond Index was up 9.56% during the
twelve months ended March 31, 1996.
Looking forward to the following year, we are somewhat cautious on both
the stock and bond markets but believe the portfolio is structured
accordingly.
For a comparison of the Fund's performance from inception versus the
Standard and Poor's 500 Index and the Consumer Price Index, please refer
to the chart below:
A representation of the graphic material contained in THE JAMESTOWN BALANCED
FUND Annual Report is set forth below.
Comparison of the Change in Value of a $10,000 Investment in the
Jamestown Balanced Fund, the Standard & Poor's 500 Index and the Consumer
Price Index
STANDARD & POOR'S 500 INDEX: THE JAMESTOWN BALANCED FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
07/03/89 10,000 07/03/89 10,000
09/30/89 10.24% 11,024 09/30/89 0.00% 10,000
12/31/89 2.06% 11,251 12/31/89 6.25% 10,625
03/31/90 -3.00% 10,914 03/31/90 -2.62% 10,347
06/30/90 6.28% 11,599 06/30/90 4.90% 10,853
09/30/90 -13.75% 10,004 09/30/90 -9.33% 9,841
12/31/90 8.97% 10,902 12/31/90 5.17% 10,350
03/31/91 14.53% 12,486 03/31/91 9.96% 11,380
06/30/91 -0.23% 12,457 06/30/91 -0.91% 11,277
09/30/91 5.35% 13,123 09/30/91 5.12% 11,854
12/31/91 8.38% 14,223 12/31/91 6.97% 12,681
03/31/92 -2.53% 13,863 03/31/92 -2.03% 12,423
06/30/92 1.90% 14,127 06/30/92 2.03% 12,675
09/30/92 3.15% 14,572 09/30/92 4.46% 13,241
12/31/92 5.03% 15,305 12/31/92 3.74% 13,736
03/31/93 4.36% 15,972 03/31/93 1.75% 13,976
06/30/93 0.48% 16,049 06/30/93 -0.26% 13,941
09/30/93 2.58% 16,463 09/30/93 2.49% 14,287
12/31/93 2.32% 16,845 12/31/93 0.32% 14,333
03/31/94 -3.79% 16,206 03/31/94 -1.58% 14,107
06/30/94 0.42% 16,274 06/30/94 0.91% 14,235
09/30/94 4.88% 17,068 09/30/94 1.64% 14,469
12/31/94 -0.02% 17,065 12/31/94 -0.83% 14,349
03/31/95 9.74% 18,727 03/31/95 8.67% 15,594
06/30/95 9.55% 20,515 06/30/95 7.60% 16,779
09/30/95 7.95% 22,145 09/30/95 5.50% 17,702
12/31/95 6.02% 23,479 12/31/95 4.75% 18,542
03/31/96 5.37% 24,739 03/31/96 3.27% 19,148
<PAGE>
CONSUMER PRICE INDEX:
QTRLY
DATE RETURN BALANCE
07/03/89 10,000
09/30/89 0.75% 10,075
12/31/89 1.00% 10,176
03/31/90 2.01% 10,380
06/30/90 0.90% 10,474
09/30/90 1.71% 10,653
12/31/90 1.71% 10,835
03/31/91 0.90% 10,932
06/30/91 0.40% 10,976
09/30/91 0.60% 11,042
12/31/91 0.90% 11,141
03/31/92 0.70% 11,219
06/30/92 0.80% 11,309
09/30/92 0.70% 11,388
12/31/92 0.80% 11,479
03/31/93 0.90% 11,583
06/30/93 0.60% 11,652
09/30/93 0.40% 11,699
12/31/93 0.70% 11,781
03/31/94 0.50% 11,840
06/30/94 0.60% 11,911
09/30/94 0.90% 12,018
12/31/94 0.60% 12,090
03/31/95 0.80% 12,187
06/30/95 0.90% 12,297
09/30/95 0.40% 12,346
12/31/95 0.50% 12,408
03/31/96 0.80% 12,507
Past performance is not predictive of future performance.
The Jamestown Balanced Fund - Average Annual Total Returns
1 Year ........................22.79%
5 Years .......................10.97%
Since Inception*...............10.11%
*Initial public offering of shares was July 3, 1989.
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 46,867,552
===============
At value (Note 1) $ 57,887,554
Investments in repurchase agreements (Note 1) 3,191,737
Receivable for securities sold 545,102
Receivable for capital shares sold 47,088
Interest receivable 184,361
Dividends receivable 52,086
Other assets 4,641
---------------
TOTAL ASSETS 61,912,569
---------------
LIABILITIES
Payable for securities purchased 238,436
Payable for capital shares redeemed 22,233
Dividends payable 19,692
Accrued advisory fees (Note 3) 34,061
Accrued administration fees (Note 3) 9,300
Other accrued expenses 12,570
---------------
TOTAL LIABILITIES 336,292
---------------
NET ASSETS $ 61,576,277
===============
Net assets consist of:
Capital shares $ 48,084,415
Accumulated net realized gains from security transactions 2,460,504
Undistributed net investment income 11,356
Net unrealized appreciation on investments 11,020,002
---------------
Net assets $ 61,576,277
===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 4,170,391
===============
Net asset value, offering price and redemption price per share (Note 1) $ 14.77
===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN BALANCED FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1996
<S> <C>
INVESTMENT INCOME
Interest $ 1,173,779
Dividends 778,005
------------
TOTAL INVESTMENT INCOME 1,951,784
------------
EXPENSES
Investment advisory fees (Note 3) 373,945
Administrative fees (Note 3) 105,023
Custodian fees 18,990
Professional fees 14,271
Trustees' fees and expenses 5,598
Postage and supplies 4,220
Pricing costs 5,396
Registration fees 2,760
Printing of shareholder reports 1,686
Other expenses 3,553
------------
TOTAL EXPENSES 535,442
Expenses reimbursed through a directed brokerage arrangement (Note 4) (30,268)
------------
NET EXPENSES 505,174
------------
NET INVESTMENT INCOME 1,446,610
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 4,448,919
Net change in unrealized appreciation/depreciation on investments 5,730,142
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 10,179,061
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 11,625,671
============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1996 1995
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,446,610 $ 1,322,753
Net realized gains from security transactions 4,448,919 388,803
Net change in unrealized appreciation/depreciation
on investments 5,730,142 3,296,638
--------------- --------------
Net increase in net assets from operations 11,625,671 5,008,194
--------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,451,395) (1,312,434)
From net realized gains from security transactions (1,982,339) (1,138,083)
--------------- --------------
Decrease in net assets from distributions to shareholders (3,433,734) (2,450,517)
--------------- --------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 5,197,403 8,248,839
Net asset value of shares issued in reinvestment
of distributions to shareholders 3,265,651 2,325,314
Payments for shares redeemed (7,140,816) (7,997,241)
--------------- --------------
Net increase in net assets from capital share transactions 1,322,238 2,576,912
--------------- --------------
TOTAL INCREASE IN NET ASSETS 9,514,175 5,134,589
NET ASSETS:
Beginning of year 52,062,102 46,927,513
--------------- --------------
End of year - (including undistributed net investment
income of $11,356 and $16,141, respectively) $ 61,576,277 $ 52,062,102
(a)Summary of capital share activity follows:
Shares sold 370,290 674,378
Shares issued in reinvestment of distributions to shareholders 229,365 193,284
Shares redeemed (510,212) (649,875)
--------------- --------------
Net increase in shares outstanding 89,443 217,787
Shares outstanding, beginning of year 4,080,948 3,863,161
--------------- --------------
Shares outstanding, end of year 4,170,391 4,080,948
=============== ==============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BALANCED FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
<CAPTION>
Years Ended March 31,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year $12.76 $12.15 $12.49 $11.52 $10.88
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.36 0.33 0.30 0.31 0.32
Net realized and unrealized gains (losses)
on investments 2.50 0.90 (0.18) 1.11 0.67
------- ------- ------- ------- -------
Total from investment operations 2.86 1.23 0.12 1.42 0.99
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.36) (0.33) (0.30) (0.31) (0.31)
Distributions from net realized gains (0.49) (0.29) (0.16) (0.14) (0.04)
------- ------- ------- ------- -------
Total distributions (0.85) (0.62) (0.46) (0.45) (0.35)
------- ------- ------- ------- -------
Net asset value at end of year $14.77 $12.76 $12.15 $12.49 $11.52
======= ======= ======= ======= =======
Total return 22.79% 10.54% 0.94% 12.50% 9.16%
======= ======= ======= ======= =======
Net assets at end of year (000's) $61,576 $52,062 $46,928 $40,512 $23,786
======= ======= ======= ======= =======
Ratio of expenses to average net assets (a) 0.93% 0.96% 0.98% 0.99% 1.19%
Ratio of net investment income to average net assets 2.52% 2.72% 2.47% 2.59% 3.00%
Portfolio turnover rate 72% 95% 123% 134% 153%
<FN>
(a)For the year ended March 31, 1996, the ratio of expenses to average
net assets was determined based on gross expenses prior to expense
reimbursements through a directed brokerage arrangement. For years prior to
March 31,1996, 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).
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 67.4%
Advertising - 1.7%
22,000 Interpublic Group of Companies, Inc. $ 1,039,500
--------------
Aerospace - 2.2%
26,000 Raytheon Company 1,332,500
--------------
Building and Construction - 1.6%
22,000 Foster Wheeler Corporation 976,250
--------------
Chemicals - 3.4%
12,000 Air Products & Chemicals 655,500
17,000 E.I. duPont de Nemours & Company 1,411,000
--------------
2,066,500
--------------
Commercial Banking - 4.2%
13,000 Crestar Financial Corporation 747,500
18,700 First Union Corporation 1,131,350
9,000 NationsBank Corporation 721,125
--------------
2,599,975
--------------
Communications - 7.5%
35,000 Alltel Corporation 1,085,000
20,000 AT&T Company 1,225,000
75,000 Equifax, Inc. 1,509,375
15,000 SBC Communications, Inc. 789,375
--------------
4,608,750
--------------
Computers/Computer Technology Services - 2.6%
14,000 Cisco Systems, Inc. (b) 649,250
6,100 Computer Sciences Corporation (b) 429,287
9,300 Intel Corporation 528,938
--------------
1,607,475
--------------
Consumer Products - 12.6%
15,000 Avon Products, Inc. 1,286,250
14,000 CPC International, Inc. 971,250
18,000 General Electric Company 1,401,750
8,000 Kimberly-Clark Corporation 596,000
10,000 Motorola, Inc. 530,000
7,500 Procter & Gamble Company 635,625
38,000 Sysco Corporation 1,249,250
44,000 Whitman Corporation 1,067,000
--------------
7,737,125
--------------
<PAGE>
<CAPTION>
Shares Value
<S> <C> <C>
Drugs/Medical Equipment - 5.5%
30,000 Abbott Laboratories $ 1,222,500
11,900 Merck and Company, Inc. 740,775
24,000 Schering-Plough Corporation 1,395,000
--------------
3,358,275
--------------
Durable Goods - 1.6%
21,000 Avnet, Inc. 1,013,250
--------------
Electronics - 2.2%
14,500 Hewlett-Packard Company 1,363,000
--------------
Entertainment - 1.5%
14,270 Walt Disney Company 911,496
--------------
Fast Food Restaurants - 1.6%
20,000 McDonald's Corporation 960,000
--------------
Fire Systems - 2.5%
44,000 Tyco International Ltd. 1,573,000
--------------
Health Care Centers - 4.5%
29,000 Columbia/HCA Healthcare Corporation 1,674,750
28,000 Manor Care, Inc. 1,099,000
--------------
2,773,750
--------------
Insurance - 2.4%
16,000 American International Group 1,498,000
--------------
Oil and Gas Drilling - 5.0%
16,000 Amoco Corporation 1,156,000
31,000 Enron Corporation 1,143,125
9,200 Texaco, Inc. 791,200
--------------
3,090,325
--------------
Real Estate - 1.7%
72,000 United Dominion Realty Trust 1,053,000
--------------
Retail Stores - 3.1%
31,000 Circuit City Stores, Inc. 926,125
28,000 Lowe's Companies, Inc. 1,001,000
--------------
1,927,125
--------------
Total Common Stocks (Cost $30,634,553) $ 41,489,296
--------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
U.S. TREASURY NOTES - 9.8%
$ 500,000 5.875%, due 03/31/1999 $ 499,060
550,000 7.125%, due 02/29/2000 570,108
1,815,000 6.25%, due 02/15/2003 1,809,609
2,975,000 7.25%, due 08/15/2004 3,138,625
--------------
Total U.S. Treasury Notes (Cost $5,924,290) $ 6,017,402
--------------
MORTGAGE-BACKED SECURITIES - 5.9%
Federal Home Loan Mortgage Corporation - 2.6%
$ 274,918 Series #1139-D, 8.00%, due 09/15/1996 $ 275,520
415,456 Pool #G50153, 4.50%, due 05/01/1999 396,890
307,269 Series #162-E, 7.00%, due 02/15/2020 309,573
550,303 Series #D54864-G, 6.50%, due 06/01/2024 523,322
130,000 Pool #D69139, 6.50%, due 03/01/2026 123,663
--------------
1,628,968
--------------
Federal National Mortgage Association - .8%
3,429 Series #92-61F, 5.869%, floating rate, due 05/25/2001 3,430
304,707 Series #70, 8.50%, due 01/01/2012 319,067
148,977 Series #88-29B, 9.50%, due 12/25/2018 155,867
--------------
478,364
--------------
Government National Mortgage Association - 1.7%
255,055 Pool #780267, 9.00%, due 11/15/2017 274,939
97,947 Pool #327273, 7.50%, due 08/15/2022 98,195
649,866 Pool #343536, 7.50%, due 02/15/2023 651,510
--------------
1,024,644
--------------
Other Mortgage-Backed Securities - .8%
Lehman Brothers Mortgage Trust #91-2-A1,
222,325 8.00%, due 03/20/1999 226,910
Resolution Trust Corporation #95-1-A2B,
300,000 7.50%, due 10/25/2028 301,500
--------------
528,410
--------------
Total Mortgage-Backed Securities (Cost $3,635,065) $ 3,660,386
--------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
ASSET-BACKED SECURITIES - 3.4%
AFG Receivables Trust #95-A, A,
$ 408,224 6.15%, due 09/15/2000 $ 407,713
Fleetwood Credit Corporation Grantor Trust #95-A, A,
665,488 8.45%, due 11/15/2010 689,778
Nationscredit Grantor Trust #96-1, A,
490,653 5.85%, due 09/15/2011 482,508
The Money Store Home Equity Trust #94-A, A4,
575,000 6.275%, due 12/15/2022 538,028
--------------
Total Asset-Backed Securities (Cost $2,084,450) $ 2,118,027
--------------
CORPORATE BONDS - 7.5%
Bear Stearns Co.,
$ 375,000 7.625%, due 09/15/1999 $ 386,370
Beneficial Corporation Medium Term Notes,
275,000 8.05%, due 11/16/1998 286,214
Commercial Credit Corporation,
275,000 10.00%, due 05/01/1999 302,126
Commonwealth Edison,
350,000 7.00%, due 02/01/1997 352,188
Fleet Mortgage Group Medium Term Notes,
400,000 7.25%, due 01/15/1998 406,824
Ford Motor Credit Corporation Medium Term Notes,
225,000 7.55%, due 07/19/1999 232,488
Ford Motor Credit Corporation,
200,000 8.00%, due 12/01/1997 205,854
GMAC Medium Term Notes,
525,000 6.375%, due 09/01/1998 526,643
International Lease Finance Corporation,
425,000 6.42%, due 09/11/2000 421,047
J. C. Penny & Co. Medium Term Notes,
325,000 7.05%, due 05/23/2005 327,490
Meridian Bancorp, Inc.,
175,000 5.438%, floating rate, due 12/01/1996 175,044
National City Corporation,
175,000 5.566%, floating rate, due 01/31/1997 175,301
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - Continued
Northern Trust Corporation,
100,000 9.00%, due 05/15/1998 105,587
Sears Roebuck & Co. Medium Term Notes,
275,000 5.96%, due 12/07/2000 267,493
World Savings and Loan Association,
425,000 7.625%, due 02/18/1997 431,774
--------------
Total Corporate Bonds (Cost $4,589,194) $ 4,602,443
--------------
Total Investments at Value (Cost $46,867,552) - 94.0% $ 57,887,554
--------------
<PAGE>
<CAPTION>
Face
Value
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 5.2%
$ 3,191,737 Lehman Brothers, 5.38%, dated 03/29/1996, due 04/01/1996
repurchase proceeds $3,193,168 (Cost $3,191,737) $ 3,191,737
--------------
Total Investments and Repurchase Agreements
at Value - 99.2% $ 61,079,291
Other Assets in Excess of Liabilities - .8% 496,986
--------------
Net Assets - 100.0% $ 61,576,277
==============
<FN>
(a)Joint repurchase agreement is fully collateralized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/1996. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest in
the collateral at March 31, 1996 was $3,268,970.
(b)Non-income producing security.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Significant Accounting Policies
The Jamestown Balanced Fund (the Fund) is 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 Fund began operations on July 3, 1989.
The Fund's investment objectives are long term growth of capital and
income through investment in a balanced portfolio of equity and fixed
income securities. Capital protection and low volatility are important
investment goals.
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
(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 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 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 -- Interest income is accrued as earned. Dividend
income is recorded on the ex-dividend date. Discounts and premiums on
securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
Distributions to shareholders -- 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 distri-
buted at least once each year. Income distributions and capital gain
distributions are determined in accordance with income tax regulations.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
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.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.
<PAGE>
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated invest-
ment 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 March 31, 1996:
Gross unrealized appreciation . . . . . $ 11,254,710
Gross unrealized depreciation . . . . . (249,404)
-------------
Net unrealized appreciation . . . . . . $ 11,005,306
=============
As of March 31, 1996, the tax cost basis of investments for the Fund was
$46,882,248 and the Fund had $2,475,200 of accumulated undistributed net
capital gains for federal income tax purposes.
<PAGE>
2. Investment Transactions
During the year ended March 31, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term invest-
ments, amounted to $39,432,174 and $41,571,963, 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.
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 year ended March 31, 1996.
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 costs 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 $30,268 for
the year ended March 31, 1996.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statement of assets and liabilities
of The Jamestown Balanced Fund (a series of The Williamsburg Investment
Trust), including the portfolio of investments, as of March 31, 1996, and
the related statement of operations for the year then ended, and the
statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 1996 by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Jamestown Balanced Fund as of March 31, 1996, the results
of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and the financial
highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
The Jamestown Bond Fund
No Load Mutual Fund
Annual Report
March 31, 1996
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
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1996
Performance of The Jamestown Bond Fund
First Quarter 1996
What a difference a few months can make! The clearly bullish sentiment
that investors had at the end of 1995 was quickly reversed during the first
quarter of this year as the Lehman Aggregate Index fell 1.8% and the Lehman
Government/Corporate Index fell 2.3%. While the 3-month Treasury bill yield
remained fairly stable, 2-year and longer rates rose between 60 and 75 basis
points in reaction to an economy that caught investors off guard with its
strength. As economic growth rates were being revised up, expectations for
further rate cuts from the Federal Reserve were being revised down. Interest
rates also reflected disappointment with the prospects for a balanced budget
and a restructured tax system. Except for Italy and France, where rates fell
slightly, other G-7 countries followed our lead and experienced higher rates
for the quarter. Central Bankers did little to reverse the trend.
For the quarter, your Fund performed in line with its comparative
indices. Even though our maturity strategy remained slightly biased toward
falling interest rates, our sector strategies gave our performance a boost. In
assessing the economy, we underestimated the improvement in employment and the
stimulative effect that last year's low rates had on spending. The strength
appeared to transcend even the most obvious drags of unusually inclement
weather, the government shutdown and the General Motors strike. As for
sectors, our performance benefited from an overweighting in mortgages. Despite
the increased volatility in interest rates during the quarter, mortgages
performed well as higher rates helped to dispel prepayment fears. Our holdings
in seasoned mortgages performed even stronger than the mortgage market in
general. Closed-end mutual funds contributed to performance for the quarter as
renewed buying interest in the area caused discounts to narrow.
Fiscal Year Ended March 31, 1996
In 1995, the bond market experienced one of the best years in its history
on the heels of one of its worst. The stage was set for 1995's rally by 1994's
monetary tightening, although few investors foresaw it at the time. Except for
a brief backup in July, the bond market posted positive returns in every month
and its third best annual return ever on a calendar year basis. The market hit
a "sweet spot", benefiting from slower economic growth, subdued inflation and,
finally, the prospect of a balanced federal budget. For the year, 2 to 5-year
Treasury yields fell about 2.5%, while 10 to 30-year Treasury yields fell
about 2.0%. The year started with yields ranging between 5.5% for 3-month
Treasury bills and nearly 8.0% for 30-year Treasury bonds and closed the year
with all maturities yielding "5 something". Returns from overseas were
impressive but, in general, ranged between 13.5% and 17.5%.
For most of the year our strategy was to stay fully invested with a
duration either the same as or slightly longer than that of the Aggregate
Index. While we did not fully participate in the early stage of the rally, our
neutral to slightly bullish posture during the second half of 1995 enabled
your Fund to benefit from falling yields. Corporate bonds performed well,
largely due to corporate America's prospects for increased revenue growth, but
also due to the longer duration of the corporate market. We remained
underweighted in long corporates and overweighted in short corporates all
year. This strategy added value as most corporate spread narrowing occurred in
short maturities. We also concentrated on bank and finance paper which was the
best performing sector of the corporate market. Mortgage-backed securities had
a volatile year with strong relative performance in the first and third
quarters and weak relative performance in the second and fourth quarters. For
the year, mortgages underperformed on an absolute basis, but slightly
outperformed Treasuries on a duration-adjusted basis. Our mortgage strategies
also added value and were active as we shifted from an underweighting at the
beginning of the year when mortgages appeared to offer little value, to an
overweighting by year-end as the value of mortgages increased with higher
levels of volatility and lower levels of rates. We also correctly emphasized
seasoned production throughout the year.
<PAGE>
Your Fund participated fully in the rally throughout the last three
quarters of 1995 and held its ground during the first quarter of 1996. For the
fiscal year ended March 31, 1996, the Fund's total return (net of expenses)
was 11.23%, as compared to 10.93% for the Lehman Government/Corporate Index
and 10.78% for the Lehman Aggregate Index. We are particularly gratified that
the Fund, prior to expenses, has been able to outperform the market over the
past two years which encompassed one of the worst and one of the best years in
bond market history.
Looking Ahead
The market remains vulnerable to further signs of economic strength. It
is also vulnerable to higher grain, oil and other commodity prices. While we
believe the chance of further cuts in rates by the Federal Reserve is becoming
more and more remote for this year, we also believe that it is too soon in the
year to anticipate any rate increases. We are not yet convinced that the
economic strength will carry forward much beyond the Spring, but we certainly
respect the fact that the trend of the market remains negative. Rate cuts in
Europe are still a strong possibility as governments continue to downsize in
accordance with unification objectives. With Japan's recovery tentative and
Europe still sluggish, it is too early to look to the export sector as a
source of growth.
Although the economic climate remains uncertain, we believe that
long-term interest rates will trade in a range of 6.5% to 7.5% for the rest of
the year. There may be short-term opportunities to benefit from rates as they
fluctuate within this range, but we believe that the greater source of
outperformance for this year will come from sector strategies emphasizing
yield. Our corporate exposure is influenced by the late phase of the current
economic cycle and is limited to short maturities where credit risk is
minimal. This strategy allows us to match the yield of the corporate component
of the Aggregate Index, with less price volatility. Our overweighting in
mortgages is still appropriate since the mortgage market benefits from
stabilizing interest rates. We expect that our emphasis will shift away from
seasoned paper which has already performed so well in favor of more recently
issued passthroughs. As Lehman begins a tiering pricing in its mortgage index
to recognize each separate year of mortgage issuance, we believe some of the
inefficiencies and opportunities previously associated with "seasoning" may be
eliminated. Closed-end fund discounts still have room to narrow, which is why
we anticipate maintaining our commitment to the area. Term trusts, with their
known liquidation dates, are particularly attractive. Based on yields of close
to 7.5% from both mortgages and closed-end funds, we believe the risk/reward
profile of the portfolio is clearly in favor of reward and should continue to
prove effective going forward.
For a comparison of the Fund's performance from inception versus the
Lehman Government/Corporate Index, the Lehman Aggregate Index and the Consumer
Price Index, please refer to the chart below:
<PAGE>
A representation of the graphic material contained in THE JAMESTOWN BOND
FUND Annual Report is set forth below.
Comparison of the Change in Value of a $10,000 Investment in the
Jamestown Bond Fund, the Lehman Government/Corporate Index, the Lehman
Aggregate Index and the Consumer Price Index
LEHMAN BROTHERS GOVERNMENT THE JAMESTOWN BOND FUND:
CORPORATE INDEX:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
12/31/90 10,000 12/31/90 10,000
03/31/91 2.52% 10,252 03/31/91 1.63% 10,163
06/30/91 1.78% 10,434 06/30/91 1.39% 10,305
09/30/91 4.77% 10,932 09/30/91 5.02% 10,822
12/31/91 5.33% 11,515 12/31/91 5.18% 11,382
03/31/92 -1.50% 11,342 03/31/92 -1.49% 11,213
06/30/92 4.06% 11,803 06/30/92 3.35% 11,588
09/30/92 4.88% 12,379 09/30/92 3.83% 12,033
12/31/92 0.07% 12,387 12/31/92 0.27% 12,065
03/31/93 4.66% 12,965 03/31/93 3.81% 12,524
06/30/93 3.01% 13,355 06/30/93 2.26% 12,807
09/30/93 3.32% 13,798 09/30/93 2.22% 13,091
12/31/93 -0.29% 13,758 12/31/93 0.25% 13,124
03/31/94 -3.15% 13,325 03/31/94 -2.55% 12,789
06/30/94 -1.24% 13,160 06/30/94 -1.04% 12,656
09/30/94 0.50% 13,225 09/30/94 0.51% 12,719
12/31/94 0.37% 13,274 12/31/94 0.26% 12,752
03/31/95 4.98% 13,935 03/31/95 4.87% 13,372
06/30/95 6.49% 14,840 06/30/95 5.87% 14,157
09/30/95 1.91% 15,123 09/30/95 2.45% 14,505
12/31/95 4.66% 15,828 12/31/95 4.49% 15,156
03/31/96 -2.34% 15,458 03/31/96 -1.86% 14,874
<PAGE>
LEHMAN BROTHERS AGGREGATE INDEX: CONSUMER PRICE INDEX:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
12/31/90 10,000 12/31/90 10,000
03/31/91 2.81% 10,281 03/31/91 0.90% 10,090
06/30/91 1.62% 10,448 06/30/91 0.40% 10,130
09/30/91 5.68% 11,041 09/30/91 0.60% 10,191
12/31/91 5.07% 11,601 12/31/91 0.90% 10,283
03/31/92 -1.27% 11,453 03/31/92 0.70% 10,355
06/30/92 4.04% 11,916 06/30/92 0.80% 10,438
09/30/92 4.30% 12,429 09/30/92 0.70% 10,511
12/31/92 0.26% 12,461 12/31/92 0.80% 10,595
03/31/93 4.14% 12,977 03/31/93 0.90% 10,690
06/30/93 2.66% 13,322 06/30/93 0.60% 10,754
09/30/93 2.61% 13,670 09/30/93 0.40% 10,797
12/31/93 0.05% 13,676 12/31/93 0.70% 10,873
03/31/94 -2.87% 13,284 03/31/94 0.50% 10,927
06/30/94 -1.03% 13,147 06/30/94 0.60% 10,993
09/30/94 0.61% 13,227 09/30/94 0.90% 11,092
12/31/94 0.38% 13,278 12/31/94 0.60% 11,158
03/31/95 5.04% 13,947 03/31/95 0.80% 11,248
06/30/95 6.09% 14,796 06/30/95 0.90% 11,349
09/30/95 1.96% 15,086 09/30/95 0.40% 11,395
12/31/95 4.26% 15,729 12/31/95 0.50% 11,452
03/31/96 -1.77% 15,450 03/31/96 0.80% 11,544
Past performance is not predictive of future performance.
The Jamestown Bond Fund - Average Annual Total Returns
1 Year ........................11.23%
5 Years ....................... 7.92%
Since Inception*............... 7.79%
*Initial public offering of shares was December 13, 1990.
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 73,410,257
===============
At value (Note 1) $ 73,305,618
Investments in repurchase agreements (Note 1) 2,750,854
Receivable for securities sold 3,225,020
Interest receivable 714,438
Dividends receivable 2,991
Other assets 5,748
---------------
TOTAL ASSETS 80,004,669
---------------
LIABILITIES
Payable for securities purchased 4,821,836
Dividends payable 369,855
Accrued advisory fees (Note 3) 25,745
Accrued administration fees (Note 3) 5,100
Other accrued expenses 8,014
---------------
TOTAL LIABILITIES 5,230,550
---------------
NET ASSETS $ 74,774,119
===============
Net assets consist of:
Capital shares $ 75,894,568
Accumulated net realized losses from security transactions (1,137,569)
Undistributed net investment income 121,759
Net unrealized depreciation on investments (104,639)
---------------
Net assets $ 74,774,119
===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 7,195,530
===============
Net asset value, offering price and redemption price per share (Note 1) $ 10.39
===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1996
<CAPTION>
INVESTMENT INCOME
<S> <C>
Interest $ 5,219,265
Dividends 521,632
--------------
TOTAL INVESTMENT INCOME 5,740,897
--------------
EXPENSES
Investment advisory fees (Note 3) 305,247
Administrative fees (Note 3) 61,029
Custodian fees 40,002
Professional fees 15,279
Pricing costs 8,037
Trustees' fees and expenses 5,573
Registration fees 5,198
Postage and supplies 1,060
Printing of shareholder reports 887
Other expenses 11,528
--------------
TOTAL EXPENSES 453,840
Expenses reimbursed through a directed brokerage arrangement (Note 4) (22,423)
--------------
NET EXPENSES 431,417
--------------
NET INVESTMENT INCOME 5,309,480
--------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 3,596,533
Net change in unrealized appreciation/depreciation of investments (949,624)
--------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,646,909
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 7,956,389
==============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1996 1995
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 5,309,480 $ 4,070,955
Net realized gains (losses) from security transactions 3,596,533 (3,791,347)
Net change in unrealized appreciation/depreciation
on investments (949,624) 2,701,756
--------------- ---------------
Net increase in net assets from operations 7,956,389 2,981,364
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (5,212,243) (4,060,588)
--------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 16,330,832 10,057,911
Net asset value of shares issued in reinvestment
of distributions to shareholders 4,066,804 3,496,446
Payments for shares redeemed (20,396,366) (4,475,836)
--------------- ---------------
Net increase in net assets from capital share transactions 1,270 9,078,521
--------------- ---------------
TOTAL INCREASE IN NET ASSETS 2,745,416 7,999,297
NET ASSETS:
Beginning of year 72,028,703 64,029,406
--------------- ---------------
End of year - (including undistributed net investment
income of $121,759 and $24,522, respectively) $ 74,774,119 $ 72,028,703
=============== ===============
(a) Summary of capital share activity follows:
Shares sold 1,534,918 1,014,124
Shares issued in reinvestment of distributions to shareholders 386,962 355,655
Shares redeemed (1,951,756) (454,880)
--------------- ---------------
Net increase (decrease) in shares outstanding (29,876) 914,899
Shares outstanding, beginning of year 7,225,406 6,310,507
--------------- ---------------
Shares outstanding, end of year 7,195,530 7,225,406
=============== ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
<CAPTION>
Years Ended March 31,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year $9.97 $10.15 $10.82 $10.42 $9.97
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.70 0.62 0.55 0.64 0.54
Net realized and unrealized gains (losses) on investments 0.41 (0.18) (0.30) 0.55 0.48
------- ------- ------- ------- -------
Total from investment operations 1.11 0.44 0.25 1.19 1.02
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.69) (0.62) (0.55) (0.64) (0.54)
Distributions from net realized gains -- -- (0.19) (0.15) (0.03)
Distributions in excess of net realized gains -- -- (0.18) -- --
------- ------- ------- ------- -------
Total distributions (0.69) (0.62) (0.92) (0.79) (0.57)
------- ------- ------- ------- -------
Net asset value at end of year $10.39 $9.97 $10.15 $10.82 $10.42
======= ======= ======= ======= =======
Total return 11.23% 4.56% 2.12% 11.69% 10.33%
======= ======= ======= ======= =======
Net assets at end of year (000's) $74,774 $72,029 $64,029 $55,718 $29,727
======= ======= ======= ======= =======
Ratio of expenses to average net assets (a) 0.56% 0.53% 0.60% 0.59% 0.60%
Ratio of net investment income to average net assets 6.54% 6.28% 5.03% 6.09% 6.67%
Portfolio turnover rate 268% 381% 381% 454% 484%
<FN>
(a)For the year ended March 31, 1996, 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). For the year
ended March 31, 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 year ended March 31, 1995. Absent investment advisory fees
waived by the Adviser, the ratio of expenses to average net assets would have
been 0.80% for the year ended March 31, 1992.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
<CAPTION>
Par Value Value
<S> <C> <C>
U.S. TREASURY AND AGENCY OBLIGATIONS - 24.4%
U.S. Treasury Bonds - 13.0%
$ 3,135,000 8.50%, due 02/15/2020 $ 3,723,784
5,800,000 7.125%, due 02/15/2023 5,980,322
---------------
9,704,106
---------------
U.S. Treasury Notes - 11.4%
2,700,000 5.875%, due 03/31/1999 2,694,924
3,425,000 7.125%, due 02/29/2000 3,550,218
2,190,000 7.25%, due 08/15/2004 2,310,450
---------------
8,555,592
---------------
Total U.S. Treasury and Agency Obligations
(Cost $18,191,576) $ 18,259,698
---------------
MORTGAGE-BACKED SECURITIES - 40.0%
Federal Home Loan Mortgage Corporation - 13.4%
$ 1,398,850 Pool #C00248, 6.50%, due 07/01/2023 1,335,958
1,218,278 Pool #C00290, 6.50%, due 01/01/2024 1,158,546
1,228,218 Pool #C80091, 6.50%, due 01/01/2024 1,167,998
4,680,000 Pool #D69139, 6.50%, due 03/01/2026 4,451,850
2,025,000 Gold TBA, 6.50%, due 04/15/2026 1,926,281
---------------
10,040,633
---------------
Federal National Mortgage Association - 8.6%
857 Series #92-61F, 5.869%, floating rate, due 05/25/2001 858
950,000 Series #92-22HC, 7.00%, due 03/25/2007 955,339
1,020,000 Pool #340687, 6.00%, due 03/01/2011 977,537
750,000 TBA, 6.00%, due 04/01/2011 718,359
1,025,000 Series #89-76E, 9.00%, due 11/25/2019 1,098,985
625,000 Series #90-103K, 7.50%, due 09/25/2020 629,881
875,000 Series #91-10J, 7.95%, due 02/25/2021 880,189
585,000 Series #X-19B-EC, 6.50%, due 03/25/2021 533,264
555,306 Pool #224229, 9.50%, due 08/01/2021 597,392
---------------
6,391,804
---------------
Government National Mortgage Association - 13.3%
1,482,705 Pool #780215, 8.50%, due 10/15/2017 1,572,571
528,912 Pool #327273, 7.50%, due 08/15/2022 530,250
486,615 Pool #325612, 7.50%, due 10/15/2022 487,846
510,409 Pool #333658, 7.50%, due 01/15/2023 512,333
1,271,565 Pool #349314, 7.50%, due 02/15/2023 1,274,782
1,070,269 Pool #342526, 7.50%, due 02/15/2023 1,072,977
135,343 Pool #352166, 7.50%, due 06/15/2023 135,685
948,636 Pool #352143, 7.50%, due 07/15/2023 951,036
958,255 Pool #372822, 7.50%, due 11/15/2023 956,904
1,255,728 Pool #359451, 7.50%, due 12/15/2023 1,258,905
501,376 Pool #354831, 7.50%, due 06/15/2024 500,669
725,000 TBA, 6.00%, adjustable rate, due 04/15/2026 723,188
---------------
9,977,146
---------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
Other Mortgage-Backed Securities - 4.7%
Lehman Brothers Mortgage Trust #91-2-A1,
$ 1,102,731 8.00%, due 03/20/1999 $ 1,125,476
Resolution Trust Corporation #95-1A-A-2D,
1,295,000 7.50%, due 10/25/2028 1,284,478
Vendee Mortgage Trust #95-3-1J,
485,000 7.25%, due 10/15/2008 471,056
Vendee Mortgage Trust #96-1-1K,
635,000 6.75%, due 11/15/2012 600,075
---------------
3,481,085
---------------
Total Mortgage-Backed Securities (Cost $30,034,938) $ 29,890,668
---------------
ASSET-BACKED SECURITIES - 5.1%
CIT RV Trust #95-B, class A,
$ 472,724 6.50%, due 04/15/2011 $ 475,087
CIT RV Trust #96-A, class A,
1,132,538 5.40%, due 12/15/2011 1,107,056
Contimortgage Home Equity Loan Trust #95-4-A3,
1,495,000 6.20%, due 10/15/2010 1,491,412
Fleetwood Credit Corporation Grantor Trust #94-A-A,
798,647 4.70%, due 07/15/2009 769,695
---------------
Total Asset-Backed Securities (Cost $3,881,800) $ 3,843,250
---------------
CORPORATE BONDS - 18.3%
Associates Corporation,
$ 700,000 5.75%, due 10/15/2003 $ 653,912
Baltimore Gas & Electric Corporation,
1,000,000 8.90%, due 07/01/1998 1,055,600
Beneficial Corporation Medium Term Notes,
900,000 8.27%, due 11/30/1998 941,787
Ford Motor Credit Corporation,
1,150,000 5.625%, due 01/15/1999 1,125,643
General Motors Acceptance Corporation Medium Term Notes,
1,725,000 6.375%, due 09/01/1998 1,730,399
Golden West Financial Corporation,
590,000 8.625%, due 08/30/1998 619,512
International Lease Finance Medium Term Notes,
1,315,000 6.42%, due 09/11/2000 1,302,771
Key Corporation Medium Term Notes,
835,000 5.52%, due 03/25/1997 831,927
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - Continued
Paccar Financial Corporation Medium Term Notes,
$ 785,000 8.09%, due 11/14/1997 $ 811,046
Public Service Electric and Gas Corporation,
1,500,000 7.125%, due 11/01/1997 1,518,615
Sears Roebuck & Company,
1,300,000 6.18%, due 12/01/2000 1,276,041
TCI Communications,
1,000,000 6.82%, floating rate, due 09/15/2010 1,000,510
Virginia Electric & Power Corporation,
825,000 7.25%, due 03/01/1997 835,189
---------------
Total Corporate Bonds (Cost $13,464,508) $ 13,702,952
---------------
<PAGE>
<CAPTION>
Shares
<S> <C> <C>
CLOSED-END MUTUAL FUNDS - 10.2%
134,200 Blackrock 2001 Term Trust, Inc. $ 1,006,500
1,500 Blackrock Broad Investment Grade 2009 Term Trust 16,125
53,900 Blackrock Investment Quality Term Trust, Inc. 404,250
70,300 Blackrock Strategic Term Trust, Inc. 527,250
7,400 Excelsior Income Shares, Inc. 115,625
88,600 Hyperion 1999 Term Trust 575,900
113,900 Hyperion 2002 Term Trust 797,300
51,300 Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. 384,750
26,400 Income Opportunities Fund, Inc. - 1999 217,800
24,200 Kemper Intermediate Government Trust 175,450
14,700 Liberty Term Trust, Inc. - 1999 108,413
158,900 MFS Government Markets Income Trust 993,125
193,400 MFS Intermediate Income Trust 1,257,100
51,000 Putnam Intermediate Government Trust 382,500
40,300 TCW/DW Term Trust 2000 297,212
27,000 TCW/DW Term Trust 2003 195,750
22,000 Templeton Global Income Fund, Inc. 154,000
---------------
Total Closed-End Funds (Cost $7,837,435) $ 7,609,050
---------------
Total Investments at Value (Cost $73,410,257) - 98.0% $ 73,305,618
---------------
<PAGE>
<CAPTION>
Face
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENT (a) - 3.7%
Lehman Brothers,
$ 2,750,854 5.38%, dated 03/31/1996, due 04/01/1996
repurchase proceeds $2,752,087 (Cost $2,750,854) $ 2,750,854
---------------
Total Investments and Repurchase Agreements
at Value - 101.7% $ 76,056,472
Liabilities in Excess of Other Assets - (1.7)% (1,282,353)
---------------
Net Assets - 100.0% $ 74,774,119
===============
<FN>
(a) Joint repurchase agreement is fully collateralized by $15,840,000
U.S. Treasury Note, 7.75%, due 03/31/1996. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest in
the collateral at March 31, 1996 was $2,817,418.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
THE JAMESTOWN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Significant Accounting Policies
The Jamestown Bond Fund (the Fund) is 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 Fund began operations on December 13, 1990.
The Fund's investment objective is to maximize total return, consisting
of current income and capital appreciation (both realized and unrealized),
consistent with the preservation of capital through active management of
investment grade fixed income securities.
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
(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 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 -- Interest income is accrued as earned. Dividend
income is recorded on the ex-dividend date. Discounts and premiums on
securities purchased are amortized in accordance with income tax regulations
which approximate generally accepted accounting principles.
Distributions to shareholders -- 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.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
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.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
<PAGE>
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 March 31, 1996:
Gross unrealized appreciation ...................$ 827,951
Gross unrealized depreciation..................... (1,023,553)
--------------
Net unrealized depreciation.......................$ (195,602)
==============
As of March 31, 1996, the tax cost basis of investments of the Fund was
$73,501,220. As of March 31, 1996, the Fund had capital loss carryforwards for
federal income tax purposes of $1,046,606 which expire on March 31, 2003.
These capital loss carryforwards may be utilized in future years to offset net
realized capital gains prior to distributing such gains to shareholders.
2. Investment Transactions
During the year ended March 31, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $208,417,443 and $204,599,441, 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 .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
year ended March 31, 1996.
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 costs 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 $22,423 for the
year ended March 31, 1996.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statement of assets and liabilities of
The Jamestown Bond Fund (a series of The Williamsburg Investment Trust),
including the portfolio of investments, as of March 31, 1996, and the related
statement of operations for the year then ended, the statement of changes in
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Jamestown Bond Fund as of March 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each
of the five years in the period then ended, in conformity with generally
accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
The Jamestown Short Term Bond Fund
No Load Mutual Fund
Annual Report
March 31, 1996
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 SHORT TERM BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1996
Performance of The Jamestown Short Term Bond Fund
First Quarter 1996
What a difference a few months can make! The clearly bullish sentiment
that investors had at the end of 1995 was quickly reversed during the first
quarter of this year. While the 3-month Treasury bill yield remained fairly
stable, 2-year and longer rates rose between 60 and 75 basis points in
reaction to an economy that caught investors off guard with its strength. As
economic growth rates were being revised up, expectations for further rate
cuts from the Federal Reserve were being revised down. Interest rates also
reflected disappointment with the prospects for a balanced budget and a
restructured tax system. Except for Italy and France, where rates fell
slightly, other G-7 countries followed our lead and experienced higher rates
for the quarter. Central Bankers did little to reverse the trend.
Our maturity strategy had a negative impact on performance as we remained
slightly biased toward falling interest rates, but our sector strategies gave
performance a boost, enabling your Fund to perform in line with its
comparative index, the Merrill Lynch 1-3 Year Treasury Index. In assessing the
economy, we underestimated the improvement in employment and the stimulative
effect that last year's low rates had on spending. The strength appeared to
transcend even the most obvious drags of unusually inclement weather, the
government shutdown and the General Motors strike. As for sectors, our
performance benefited from an overweighting in mortgages. Despite the
increased volatility in interest rates during the quarter, mortgages performed
well as higher rates helped to dispel prepayment fears. Our holdings in
seasoned mortgages performed even stronger than the mortgage market in
general.
Fiscal Year Ended March 31, 1996
In 1995, the bond market experienced one of the best years in its history
on the heels of one of its worst. The stage was set for 1995's rally by 1994's
monetary tightening, although few investors foresaw it at the time. Except for
a brief backup in July, the bond market posted positive returns in every month
and its third best annual return ever on a calendar year basis. The market hit
a "sweet spot", benefiting from slower economic growth, subdued inflation and,
finally, the prospect of a balanced federal budget. For the year, 3-month
Treasury bill yields fell 0.5%, 2 to 5-year Treasury yields fell about 2.5%,
and 10 to 30-year Treasury yields fell about 2.0%. The year started with
yields ranging between 5.5% for 3-month Treasury bills and nearly 8.0% for
30-year Treasury bonds and closed the year with all maturities yielding "5
something". Returns from overseas were impressive but, in general, ranged
between 13.5% and 17.5%.
Your Fund participated fully in the rally throughout the last three
quarters of 1995 and held its ground during the first quarter of 1996. For the
fiscal year ended March 31, 1996, the Fund's total return (net of expenses)
was 7.38%, as compared to 7.76% for the Merrill Lynch 1-3 Year Treasury Index
and 5.75% for the 90-Day Treasury Bill Index. We are particularly gratified
that the Fund, prior to expenses, has been able to outperform the market over
the past two years which encompassed one of the worst and one of the best
years in bond market history.
Looking Ahead
The market remains vulnerable to further signs of economic strength. It
is also vulnerable to higher grain, oil and other commodity prices. While we
believe the chance of further cuts in rates by the Federal Reserve is becoming
more and more remote for this year, we also believe that it is too soon in the
year to anticipate any rate increases. We are not yet convinced that the
economic strength will carry forward much beyond the Spring, but we certainly
respect the fact that the trend of the market remains negative. Rate cuts in
Europe are still a strong possibility as governments continue to downsize in
accordance with unification objectives. With Japan's recovery tentative and
Europe still sluggish, it is too early to look to the export sector as a
source of growth.
<PAGE>
Although the economic climate remains uncertain, we believe that
long-term interest rates will trade in a range of 6.5% to 7.5% for the rest of
the year. There may be short-term opportunities to benefit from rates as they
fluctuate within this range, but we believe that the greater source of
outperformance for this year will come from sector strategies emphasizing
yield. Our corporate exposure is influenced by the late phase of the current
economic cycle and is limited to short maturities where credit risk is
minimal. This strategy allows us to match the yield of the corporate component
of the Aggregate Index, with less price volatility. Our overweighting in
mortgages is still appropriate since the mortgage market benefits from
stabilizing interest rates. We expect that our emphasis will shift away from
seasoned paper which has already performed so well in favor of more recently
issued passthroughs. As Lehman begins a tiering pricing in its mortgage index
to recognize each separate year of mortgage issuance, we believe some of the
inefficiencies and opportunities previously associated with "seasoning" may be
eliminated.
For a comparison of the Fund's performance from inception versus the
Merrill Lynch 1-3 Year Treasury Index, the 90-Day Treasury Bill Index and the
Consumer Price Index, please refer to the chart below:
A representation of the graphic material contained in THE JAMESTOWN SHORT
TERM BOND FUND Annual Report is set forth below.
Comparison of the Change in Value of a $10,000 Investment in the
Jamestown Short Term Bond Fund, the Merrill Lynch 1-3 Year Treasury Index, the
90-Day Treasury Bill Index and the Consumer Price Index
MERRILL LYNCH 1-3 YEAR TREASURY INDEX: THE JAMESTOWN SHORT TERM BOND FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
01/31/92 10,000 01/31/92 10,000
03/31/92 0.31% 10,031 03/31/92 0.25% 10,025
06/30/92 2.88% 10,319 06/30/92 2.03% 10,229
09/30/92 2.98% 10,627 09/30/92 2.14% 10,448
12/31/92 0.18% 10,646 12/31/92 0.15% 10,463
03/31/93 2.21% 10,882 03/31/93 1.95% 10,667
06/30/93 1.08% 10,999 06/30/93 1.27% 10,803
09/30/93 1.44% 11,157 09/30/93 1.34% 10,947
12/31/93 0.59% 11,222 12/31/93 0.61% 11,015
03/31/94 -0.50% 11,166 03/31/94 -0.48% 10,962
06/30/94 0.08% 11,176 06/30/94 0.23% 10,987
09/30/94 0.99% 11,286 09/30/94 0.93% 11,090
12/31/94 0.00% 11,286 12/31/94 -0.05% 11,084
03/31/95 3.36% 11,665 03/31/95 3.38% 11,458
06/30/95 3.21% 12,039 06/30/95 3.01% 11,803
09/30/95 1.50% 12,220 09/30/95 1.33% 11,960
12/31/95 2.52% 12,528 12/31/95 2.62% 12,273
03/31/96 0.33% 12,570 03/31/96 0.25% 12,304
<PAGE>
CONSUMER PRICE INDEX: 90-DAY TREASURY BILL INDEX:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
01/31/92 10,000 01/31/92 10,000
03/31/92 0.40% 10,040 03/31/92 0.64% 10,064
06/30/92 0.80% 10,120 06/30/92 1.10% 10,174
09/30/92 0.70% 10,191 09/30/92 1.01% 10,277
12/31/92 0.80% 10,273 12/31/92 0.77% 10,357
03/31/93 0.90% 10,365 03/31/93 0.78% 10,437
06/30/93 0.60% 10,427 06/30/93 0.77% 10,518
09/30/93 0.40% 10,469 09/30/93 0.82% 10,604
12/31/93 0.70% 10,542 12/31/93 0.78% 10,687
03/31/94 0.50% 10,595 03/31/94 0.77% 10,768
06/30/94 0.60% 10,659 06/30/94 0.96% 10,872
09/30/94 0.90% 10,755 09/30/94 1.08% 10,989
12/31/94 0.60% 10,819 12/31/94 1.33% 11,135
03/31/95 0.80% 10,906 03/31/95 1.50% 11,302
06/30/95 0.90% 11,004 06/30/95 1.50% 11,472
09/30/95 0.40% 11,048 09/30/95 1.42% 11,635
12/31/95 0.50% 11,104 12/31/95 1.47% 11,806
03/31/96 0.80% 11,193 03/31/96 1.23% 11,951
Past performance is not predictive of future performance.
The Jamestown Short Term Bond Fund - Average Annual Total Returns
1 Year ........................ 7.38%
Since Inception*............... 5.05%
*Initial public offering of shares was January 21, 1992.
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 9,158,952
================
At value (Note 1) $ 9,111,381
Investments in repurchase agreements (Note 1) 144,684
Cash 1,232
Receivable for securities sold 463,777
Interest receivable 117,437
Other assets 968
----------------
TOTAL ASSETS 9,839,479
----------------
LIABILITIES
Payable for securities purchased 403,185
Dividends payable 2,292
Accrued advisory fees (Note 3) 3,786
Accrued administration fees (Note 3) 2,000
Other accrued expenses 2,460
----------------
TOTAL LIABILITIES 413,723
----------------
NET ASSETS $ 9,425,756
================
Net assets consist of:
Capital shares $ 9,914,073
Accumulated net realized losses from security transactions (444,405)
Undistributed net investment income 3,659
Net unrealized depreciation on investments (47,571)
----------------
Net assets $ 9,425,756
================
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 969,934
================
Net asset value, offering price and redemption price per share (Note 1) $ 9.72
================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1996
<S> <C>
INVESTMENT INCOME
Interest $ 853,612
----------------
EXPENSES
Investment advisory fees (Note 3) 47,421
Administrative fees (Note 3) 24,000
Professional fees 11,779
Custodian fees 8,213
Trustees' fees and expenses 5,572
Pricing costs 3,775
Registration fees 2,585
Postage and supplies 1,004
Printing of shareholder reports 741
Other expenses 1,772
----------------
TOTAL EXPENSES 106,862
Fees waived by the Adviser (Note 3) (43,635)
----------------
NET EXPENSES 63,227
----------------
NET INVESTMENT INCOME 790,385
----------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 192,225
Net change in unrealized appreciation/depreciation on investments (10,516)
----------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 181,709
----------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 972,094
================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1996 1995
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 790,385 $ 852,780
Net realized gains (losses) from security transactions 192,225 (384,848)
Net change in unrealized appreciation/depreciation
on investments (10,516) 136,445
---------------- ---------------
Net increase in net assets from operations 972,094 604,377
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (793,655) (852,243)
From net realized gains from security transactions --- (4,059)
---------------- ---------------
Decrease in net assets from distributions to shareholders (793,655) (856,302)
---------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 2,046,872 1,529,815
Net asset value of shares issued in reinvestment
of distributions to shareholders 563,410 565,090
Payments for shares redeemed (7,485,406) (6,435,813)
---------------- ---------------
Net decrease in net assets from capital share transactions (4,875,124) (4,340,908)
---------------- ---------------
TOTAL DECREASE IN NET ASSETS (4,696,685) (4,592,833)
NET ASSETS:
Beginning of year 14,122,441 18,715,274
---------------- ---------------
End of year - (including undistributed net investment
income of $3,659 and $6,929, respectively) $ 9,425,756 $ 14,122,441
================ ===============
(a)Summary of capital share activity follows:
Shares sold 208,453 157,550
Shares issued in reinvestment of distributions to shareholders 57,652 58,839
Shares redeemed (761,014) (657,850)
---------------- ---------------
Net decrease in shares outstanding (494,909) (441,461)
Shares outstanding, beginning of year 1,464,843 1,906,304
---------------- ---------------
Shares outstanding, end of year 969,934 1,464,843
================ ===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
<CAPTION>
Period
Years Ended March 31, Ended
March 31,
1996 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 0.62 0.60 0.51 0.50 0.09
Net realized and unrealized gains (losses)
on investments 0.08 (0.17) (0.23) 0.13 (0.07)
------ ------- ------- ------- ------
Total from investment operations 0.70 0.43 0.28 0.63 0.02
------ ------- ------- ------- ------
Less distributions:
Dividends from net investment income (0.62) (0.61) (0.51) (0.49) (0.09)
Distributions from net realized gains -- -- (0.02) -- --
------ ------- ------- ------- ------
Total distributions (0.62) (0.61) (0.53) (0.49) (0.09)
------ ------- ------- ------- ------
Net asset value at end of period $9.72 $9.64 $9.82 $10.07 $9.93
====== ======= ======= ======= ======
Total return 7.38% 4.53% 2.76% 6.40% 0.99%(c)
====== ======= ======= ======= ======
Net assets at end of period (000's) $9,426 $14,122 $18,715 $15,580 $5,320
====== ======= ======= ======= ======
Ratio of expenses to average net assets (b) 0.50% 0.50% 0.50% 0.50% 0.50%(c)
Ratio of net investment income to average net assets 6.27% 6.04% 5.22% 5.24% 4.86%(c)
Portfolio turnover rate 157% 144% 324% 289% 97%
<FN>
(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 0.85%, 0.85%, 0.81%, 0.82% and
0.81% (c) for the periods ended March 31, 1996, 1995, 1994, 1993 and 1992,
respectively (Note 3).
(c) Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
<CAPTION>
Par Value Value
<S> <C> <C>
U.S. TREASURY NOTES - 35.2%
$ 200,000 5.125%, due 04/30/1998 $ 197,374
1,015,000 5.875%, due 03/31/1999 1,013,092
2,100,000 6.25%, due 08/31/2000 2,110,500
-----------------
Total U.S. Treasury Notes (Cost $3,341,675) $ 3,320,966
-----------------
MORTGAGE-BACKED SECURITIES - 20.5%
Federal Home Loan Mortgage Corporation - 2.4%
$ 225,331 Series #162-E, 7.00%, due 02/15/2020 $ 227,020
-----------------
Federal National Mortgage Association - 13.4%
225,000 Series #91-131E, 7.709%, due 10/25/1998 231,397
274,266 Pool #124029, 8.00%, due 12/01/2002 282,148
392,700 Pool #322830, 7.50%, due 11/01/2010 398,713
306,755 Pool #303346, 11.50%, due 02/01/2020 346,955
-----------------
1,259,213
-----------------
Other Mortgage-Backed Securities - 4.7%
Lehman Brothers Mortgage Trust #91-2-A1,
166,744 8.00%, due 03/20/1999 170,183
Resolution Trust Corporation #95-1-A2B,
275,000 7.50%, due 10/25/2028 276,375
-----------------
446,558
-----------------
Total Mortgage-Backed Securities (Cost $1,935,167) $ 1,932,791
-----------------
ASSET-BACKED SECURITIES - 2.7%
Chemical Financial Acceptance Corporation Grantor Trust #90-A,
$ 246,686 9.40%, due 03/15/1997 (Cost $249,962) $ 248,149
-----------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - 38.3%
Bear Stearns Company,
$ 205,000 7.625%, due 09/15/1999 $ 211,216
Beneficial Corporation,
400,000 8.27%, due 11/30/1998 418,572
Ford Motor Credit Corporation,
350,000 7.50%, due 02/14/1997 355,152
40,000 8.00%, due 12/01/1997 41,171
Golden West Financial,
350,000 8.625%, due 08/30/1998 367,507
International Bank Reconstruction and Development,
265,000 5.10%, due 09/15/1999 255,956
Mellon Financial,
375,000 6.50%, due 12/01/1997 376,976
National City Corporation,
215,000 5.659%, floating rate, due 01/31/1997 215,370
Norwest Financial,
275,000 6.25%, due 02/15/1997 275,811
J.C. Penny & Company,
300,000 10.00%, due 10/15/1997 316,932
Ryder System, Inc.,
300,000 8.38%, due 12/08/1999 317,757
Virginia Electric & Power Company,
275,000 7.25%, due 03/01/1997 278,396
Xerox Corporation Medium Term Notes,
175,000 7.13%, due 04/30/1999 178,659
-----------------
Total Corporate Bonds (Cost $3,632,148) $ 3,609,475
-----------------
Total Investments at Value (Cost $9,158,952) - 96.7% $ 9,111,381
-----------------
<PAGE>
<CAPTION>
Face
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 1.5%
$ 144,684 Lehman Brothers, 5.38%, dated 03/29/1996, due 04/01/1996,
repurchase proceeds $144,749 (Cost $144,684) $ 144,684
-----------------
Total Investments and Repurchase Agreements
at Value - 98.2% $ 9,256,065
Other Assets in Excess of Liabilities - 1.8% 169,691
-----------------
Net Assets - 100.0% $ 9,425,756
=================
<FN>
(a) Joint repurchase agreement is fully collaterized by $15,840,000 U.S.
Treasury Note, 7.75%, due 03/31/1996. The aggregate market value of the
collateral at March 31, 1996 was $16,453,800. The Fund's pro-rata interest in
the collateral at March 31, 1996 was $148,185.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Significant Accounting Policies
The Jamestown Short Term Bond Fund (the Fund) is 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 Fund began operations on January 21, 1992.
The Fund's investment objective is to maximize total return, consisting
of current income and capital appreciation (both realized and unrealized),
consistent with the preservation of capital through active management of high
quality short-term fixed income securities.
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
(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 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 -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
Distributions to shareholders -- 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.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
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.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
In 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 March 31, 1996:
Gross unrealized appreciation................$ 45,579
Gross unrealized depreciation................. (94,496)
----------
Net unrealized depreciation..................$ (48,917)
==========
As of March 31, 1996, the tax cost basis of investments of the Fund was
$9,160,298 and the Fund had capital loss carryforwards for federal income tax
purposes of $443,059 which expire on March 31, 2003. These capital loss
carryforwards and may be utilized in future years to offset net realized
capital gains prior to distributing such gains to shareholders.
2. Investment Transactions
During the year ended March 31, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $17,899,670 and $21,645,446, 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 .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
$43,635 of its investment advisory fees for the year ended March 31, 1996.
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 costs and postage and supplies.
Certain officers of the Trust are also officers of MGF.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statement of assets and liabilities of
The Jamestown Short Term Bond Fund (a series of The Williamsburg Investment
Trust), including the portfolio of investments, as of March 31, 1996, and the
related statement of operations for the year then ended, and the statement of
changes in net assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Jamestown Short Term Bond Fund as of March 31, 1996, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for the periods referred to above, in conformity with generally
accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
The Jamestown Tax Exempt Virginia Fund
No Load Mutual Fund
Annual Report
March 31, 1996
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 TAX EXEMPT VIRGINIA FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1996
Performance of The Jamestown Tax Exempt Virginia Fund
For the fiscal year ended March 31, 1996, The Jamestown Tax Exempt
Virginia Fund had a total return of 6.51% after operating expenses. This
compared favorably to the Lipper Intermediate Municipal Fund Index which was
up 5.97%. The Lehman Municipal Bond Index advanced 8.38% during this same
period. The Fund maintained a fiscal year average maturity of approximately
seven years, while the Lehman Municipal Bond Index had an average maturity of
fourteen years. With our conservative style of management and neutral view of
the bond market, we believed it was prudent to be shorter than this Index,
which resulted in our relative underperformance as interest rates declined
throughout 1995.
The bond market psychology today is very different from the end of 1995.
Interest rates are higher and expectations for economic strength and inflation
have been revised upward. We respect the fact that the trend of the bond
market remains negative and believe that aggressive (long) maturity strategies
offer a poor risk/reward relationship until signs of economic weakness
develop. We continue to emphasize quality and yield (premium bonds), which
served us well as interest rates rose during the first quarter of 1996 and,
based on our market evaluation, keeps the Fund well positioned going forward.
For a comparison of the Fund's performance since inception versus the
Lehman Municipal Bond Index, please refer to the chart below:
A representation of the graphic material contained in THE JAMESTOWN TAX
EXEMPT VIRGINIA FUND Annual Report is set forth below.
Comparison of the Change in Value of a $10,000 Investment in the
Jamestown Tax Exempt Virginia Fund and the Lehman Municipal Bond Index
LEHMAN MUNICIPAL BOND INDEX: THE JAMESTOWN TAX EXEMPT VIRGINIA FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
09/01/93 10,000 09/01/93 10,000
09/30/93 1.14% 10,114 09/30/93 1.20% 10,120
12/31/93 1.41% 10,256 12/31/93 1.54% 10,275
03/31/94 -5.49% 9,693 03/31/94 -4.35% 9,828
06/30/94 1.11% 9,801 06/30/94 0.79% 9,906
09/30/94 0.68% 9,868 09/30/94 0.72% 9,978
12/31/94 -1.44% 9,726 12/31/94 -0.80% 9,898
03/31/95 7.07% 10,414 03/31/95 4.73% 10,366
06/30/95 2.41% 10,665 06/30/95 2.21% 10,596
09/30/95 2.87% 10,971 09/30/95 1.98% 10,806
12/31/95 4.13% 11,424 12/31/95 2.78% 11,106
03/31/96 -1.20% 11,287 03/31/96 -0.59% 11,041
Past performance is not predictive of future performance.
The Jamestown Tax Exempt Virginia Fund - Average Annual Total Returns
1 Year ........................ 6.51%
Since Inception*............... 3.91%
*Initial public offering of shares was September 1, 1993.
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 8,457,609
================
At value (Note 1) $ 8,672,674
Cash 933
Interest receivable 127,276
----------------
TOTAL ASSETS 8,800,883
----------------
LIABILITIES
Dividends payable 15,609
Payable for capital shares redeemed 419
Accrued advisory fees (Note 3) 1,450
Accrued administration fees (Note 3) 2,000
Other accrued expenses 2,250
----------------
TOTAL LIABILITIES 21,728
----------------
NET ASSETS $ 8,779,155
================
Net assets consist of:
Capital shares $ 8,637,957
Accumulated net realized losses from security transactions (73,867)
Net unrealized appreciation on investments 215,065
----------------
Net assets $ 8,779,155
================
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 890,918
================
Net asset value, offering price and redemption price per share (Note 1) $ 9.85
================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1996
<S> <C>
INVESTMENT INCOME
Interest $ 440,910
----------------
EXPENSES
Investment advisory fees (Note 3) 33,221
Administrative fees (Note 3) 24,000
Professional fees 8,250
Trustees' fees and expenses 5,574
Pricing costs 4,546
Custodian fees 4,160
Registration fees 1,777
Printing of shareholder reports 1,586
Postage and supplies 1,564
Other expenses 1,257
----------------
TOTAL EXPENSES 85,935
Fees waived by the Adviser (Note 3) (23,645)
----------------
NET EXPENSES 62,290
----------------
NET INVESTMENT INCOME 378,620
----------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 44,594
Net change in unrealized appreciation/depreciation on investments 87,707
----------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 132,301
----------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 510,921
================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF CHANGES IN NET ASSETS
Years Ended March 31, 1996 and 1995
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1996 1995
FROM OPERATIONS:
<S> <C> <C>
Net investment income $ 378,620 $ 215,801
Net realized gains (losses) from security transactions 44,594 (117,113)
Net change in unrealized appreciation/depreciation
on investments 87,707 225,911
----------------- ----------------
Net increase in net assets from operations 510,921 324,599
----------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (378,620) (215,801)
----------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (a):
Proceeds from shares sold 1,576,152 6,137,385
Net asset value of shares issued in reinvestment
of distributions to shareholders 242,402 144,189
Payments for shares redeemed (883,247) (734,913)
----------------- ----------------
Net increase in net assets from capital share transactions 935,307 5,546,661
----------------- ----------------
TOTAL INCREASE IN NET ASSETS 1,067,608 5,655,459
NET ASSETS:
Beginning of year 7,711,547 2,056,088
----------------- ----------------
End of year $ 8,779,155 $ 7,711,547
================= ================
(a) Summary of capital share activity follows:
Shares sold 159,428 645,556
Shares issued in reinvestment of distributions to shareholders 24,511 15,122
Shares redeemed (89,606) (78,015)
----------------- ----------------
Net increase in shares outstanding 94,333 582,663
Shares outstanding, beginning of year 796,585 213,922
----------------- ----------------
Shares outstanding, end of year 890,918 796,585
================= ================
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
<CAPTION>
Year Year Period
Ended Ended Ended
March 31, March 31, March 31,
1996 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 0.45 0.44 0.23
Net realized and unrealized gains (losses) on investments 0.17 0.07 (0.39)
------ ------ -------
Total from investment operations 0.62 0.51 (0.16)
------ ------ -------
Less distributions:
Dividends from net investment income (0.45) (0.44) (0.23)
------ ------ -------
Net asset value at end of period $9.85 $9.68 $9.61
====== ====== =======
Total return 6.51% 5.47% (2.96)% (c)
====== ====== =======
Net assets at end of period (000's) $8,779 $7,712 $2,056
====== ====== =======
Ratio of expenses to average net assets (b) 0.75% 0.75% 0.75%(c)
Ratio of net investment income to average net assets 4.57% 4.64% 4.07%(c)
Portfolio turnover rate 14% 97% 33%
<FN>
(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
1.04%, 1.62% and 4.83%(c) for the periods ended March 31, 1996, 1995 and 1994,
respectively (Note 3).
(c)Annualized.
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
March 31, 1996
<CAPTION>
Principal
Amount Value
<S> <C> <C>
FIXED RATE REVENUE AND GENERAL
OBLIGATION (GO) BONDS - 95.1%
Virginia - 91.0%
Arlington Co., Virginia, GO,
$ 300,000 5.60%, due 08/01/2006 $ 315,609
---------------
Capital Region Virginia Airport, Revenue,
200,000 5.40%, due 07/01/2010 197,092
---------------
Cheasapeake, Virginia, GO,
100,000 5.70%, due 05/01/2007 104,658
---------------
Chesterfield Co., Virginia, GO,
100,000 5.80%, due 07/15/2001 106,279
100,000 5.90%, due 07/15/2002 107,241
---------------
213,520
---------------
Fairfax Co., Virginia, GO,
350,000 5.60%, due 05/01/2003 363,237
---------------
Fairfax Co., Virginia, Park Authority, Revenue,
300,000 6.25%, due 07/15/2005 312,846
---------------
Hanover Co., Virginia, Industrial Dev. Authority, Revenue,
225,000 6.25%, due 10/01/2011 235,123
---------------
Hanover Co., Virginia, Water & Sewer Systems, Revenue,
250,000 5.20%, due 02/01/2011 239,895
---------------
Norfolk, Virginia, GO,
250,000 5.40%, due 02/01/2002 259,605
---------------
Newport News, Virginia, GO,
150,000 6.20%, due 12/01/2001 159,387
150,000 5.45%, due 11/01/2009 150,481
---------------
309,868
---------------
Pittsylvania Co., Virginia, GO,
300,000 5.65%, due 07/01/2006 310,359
---------------
Portsmouth, Virginia, GO,
200,000 5.90%, due 11/01/2001 212,758
---------------
Prince William Co., Virginia, Park Authority, Revenue,
250,000 6.10%, due 10/15/2004 265,710
---------------
<PAGE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Virginia - Continued
Prince William Co., Virginia, Service Auth. Water & Sewer, Revenue,
$ 150,000 6.40%, due 07/01/2004 $ 162,582
---------------
Richmond, Virginia, GO,
350,000 6.25%, due 01/15/2018 357,718
---------------
Richmond, Virginia, Metropolitan Authority, Revenue,
250,000 6.00%, due 07/15/2004 268,405
---------------
Richmond, Virginia, Public Utility, Revenue,
150,000 7.10%, due 01/15/2000 159,300
---------------
Riverside, Virginia, Regional Jail Authority, Revenue,
300,000 5.30%, due 07/01/2002 310,293
---------------
Roanoke, Virginia, GO,
300,000 6.40%, due 08/01/2012 318,924
---------------
Southeastern Public Service Authority, Revenue,
200,000 6.60%, due 07/01/1998 210,518
---------------
Virginia Beach, Virginia, GO,
150,000 6.60%, due 08/01/2001, prerefunded at 102 166,551
325,000 6.20%, due 09/01/2013 341,793
---------------
508,344
---------------
Virginia State, GO,
250,000 6.75%, due 07/01/1996, prerefunded at 102 257,022
300,000 5.90%, due 06/01/2005 316,902
---------------
573,924
---------------
Virginia State Housing Dev. Authority, Revenue,
150,000 5.60%, due 01/01/2002 152,150
150,000 6.60%, due 11/01/2012 155,953
---------------
308,103
---------------
Virginia State Public Building Authority, Revenue,
250,000 5.30%, due 08/01/1998 256,442
---------------
Virginia State Public School Authority, Revenue,
250,000 5.90%, due 08/01/2006 263,775
---------------
Virginia State Transportation Board, Revenue,
350,000 6.25%, due 05/15/2012 369,009
---------------
<PAGE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Virginia - Continued
Winchester, Virginia, Industrial Dev. Authority, Revenue
$ 280,000 7.25%, due 01/01/2000, prerefunded at 102 $ 310,839
---------------
York Co., Virginia, Certificates of Participation, Revenue,
250,000 6.625%, due 03/01/2012 266,660
---------------
Total Virginia 7,985,116
---------------
Puerto Rico - 4.1%
Puerto Rico Commonwealth, GO,
100,000 5.80%, due 07/01/2003 104,996
---------------
Puerto Rico Commonwealth, Highway and Transp. Authority, Revenue,
150,000 6.375%, due 07/01/2007 158,373
---------------
Puerto Rico Commonwealth, Electric Power Authority, Revenue,
100,000 6.00%, due 07/01/1999 104,395
---------------
Total Puerto Rico 367,764
---------------
Total Fixed Rate Revenue and General Obligation Bonds
(Cost $8,137,815) $ 8,352,880
---------------
MONEY MARKETS - 3.7%
$ 319,794 Biltmore Tax-Free Money Fund (Cost $319,794) $ 319,794
---------------
Total Investments at Value (Cost $8,457,609) - 98.8% $ 8,672,674
Other Assets in Excess of Liabilities - 1.2% 106,481
---------------
Net Assets - 100.0% $ 8,779,155
===============
<FN>
See accompanying notes to the financial statements.
</FN>
</TABLE>
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Significant Accounting Policies
The Jamestown Tax Exempt Virginia Fund (the Fund) is a no-load, 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 Fund began operations on September 1, 1993.
The Fund's investment objectives are to provide current income exempt
from federal income taxes and from the personal income taxes of Virginia, to
preserve capital, to limit credit risk and to take advantage of opportunities
to increase and enhance the value of an investment in the Fund. The Fund
invests primarily in debt obligations issued by the State of Virginia and its
political subdivisions, agencies, authorities and instrumentalities and by
other issuers the interest from which is exempt from the personal income taxes
of Virginia. The marketability and market value of these obligations may be
affected by certain Virginia constitutional amendments, legislative measures,
executive orders, administrative regulations, voter initiatives and other
political and economic developments. If any such developments arise, they
could adversely affect the ability of various Virginia issuers to meet their
financial obligations and could impact the Fund's portfolio.
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
(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. 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 -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
Distributions to shareholders -- 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.
Security transactions -- Security transactions are accounted for on trade
date. Securities sold are valued on a specific identification basis.
<PAGE>
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
In 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 March 31, 1996:
Gross unrealized appreciation ............... $ 239,076
Gross unrealized depreciation ............... (24,011)
---------
Net unrealized appreciation ................. $ 215,065
=========
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, 1996, the
Fund had capital loss carryforwards for federal income tax purposes of $73,867
which expire on March 31, 2003. These capital loss carryforwards may be
utilized in future years to offset net realized capital gains prior to
distributing such gains to shareholders.
2. Investment Transactions
During the year ended March 31, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $2,113,160 and $1,038,868, 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 daily net assets. Accordingly, the Adviser
voluntarily waived $23,645 of its investment advisory fee for the year ended
March 31, 1996.
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 .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 costs and postage and supplies.
Certain officers of the Trust are also officers of MGF.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
The Williamsburg Investment Trust
Cincinnati, Ohio
We have audited the accompanying statement of assets and liabilities of
The Jamestown Tax Exempt Virginia Fund (a series of The Williamsburg
Investment Trust), including the portfolio of investments, as of March 31,
1996, and the related statement of operations for the year then ended, and the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for the periods indicated thereon.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 1996 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of The Jamestown Tax Exempt Virginia Fund as of March 31, 1996, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for the periods referred to above, in conformity with generally
accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> FBP CONTRARIAN BALANCED FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 28,232,214
<INVESTMENTS-AT-VALUE> 35,460,739
<RECEIVABLES> 269,251
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,946
<TOTAL-ASSETS> 35,732,936
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 92,205
<TOTAL-LIABILITIES> 92,205
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 27,910,179
<SHARES-COMMON-STOCK> 2,397,993
<SHARES-COMMON-PRIOR> 2,029,692
<ACCUMULATED-NII-CURRENT> 7,184
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 468,279
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,255,089
<NET-ASSETS> 35,640,731
<DIVIDEND-INCOME> 450,838
<INTEREST-INCOME> 878,978
<OTHER-INCOME> 0
<EXPENSES-NET> 370,665
<NET-INVESTMENT-INCOME> 959,151
<REALIZED-GAINS-CURRENT> 1,168,621
<APPREC-INCREASE-CURRENT> 4,142,023
<NET-CHANGE-FROM-OPS> 6,269,795
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 958,803
<DISTRIBUTIONS-OF-GAINS> 863,702
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 437,108
<NUMBER-OF-SHARES-REDEEMED> 191,450
<SHARES-REINVESTED> 122,643
<NET-CHANGE-IN-ASSETS> 9,665,045
<ACCUMULATED-NII-PRIOR> 6,836
<ACCUMULATED-GAINS-PRIOR> 163,360
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 237,270
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 370,665
<AVERAGE-NET-ASSETS> 31,600,129
<PER-SHARE-NAV-BEGIN> 12.80
<PER-SHARE-NII> .43
<PER-SHARE-GAIN-APPREC> 2.44
<PER-SHARE-DIVIDEND> .43
<PER-SHARE-DISTRIBUTIONS> .38
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.86
<EXPENSE-RATIO> 1.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 2
<NAME> THE JAMESTOWN BALANCED FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 50,059,289
<INVESTMENTS-AT-VALUE> 61,079,291
<RECEIVABLES> 828,637
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 4,641
<TOTAL-ASSETS> 61,912,569
<PAYABLE-FOR-SECURITIES> 238,436
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97,856
<TOTAL-LIABILITIES> 336,292
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 48,084,415
<SHARES-COMMON-STOCK> 4,170,391
<SHARES-COMMON-PRIOR> 4,080,948
<ACCUMULATED-NII-CURRENT> 11,356
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,460,504
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,020,002
<NET-ASSETS> 61,576,277
<DIVIDEND-INCOME> 778,005
<INTEREST-INCOME> 1,173,779
<OTHER-INCOME> 0
<EXPENSES-NET> 505,174
<NET-INVESTMENT-INCOME> 1,446,610
<REALIZED-GAINS-CURRENT> 4,448,919
<APPREC-INCREASE-CURRENT> 5,730,142
<NET-CHANGE-FROM-OPS> 11,625,671
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,451,395
<DISTRIBUTIONS-OF-GAINS> 1,982,339
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 370,290
<NUMBER-OF-SHARES-REDEEMED> 510,212
<SHARES-REINVESTED> 229,365
<NET-CHANGE-IN-ASSETS> 9,514,175
<ACCUMULATED-NII-PRIOR> 16,141
<ACCUMULATED-GAINS-PRIOR> (6,076)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 373,945
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 535,442
<AVERAGE-NET-ASSETS> 57,440,320
<PER-SHARE-NAV-BEGIN> 12.76
<PER-SHARE-NII> .36
<PER-SHARE-GAIN-APPREC> 2.50
<PER-SHARE-DIVIDEND> .36
<PER-SHARE-DISTRIBUTIONS> .49
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.77
<EXPENSE-RATIO> .93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 3
<NAME> THE JAMESTOWN BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 76,161,111
<INVESTMENTS-AT-VALUE> 76,056,472
<RECEIVABLES> 3,942,449
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 5,748
<TOTAL-ASSETS> 80,004,669
<PAYABLE-FOR-SECURITIES> 4,821,836
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 408,714
<TOTAL-LIABILITIES> 5,230,550
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 75,894,568
<SHARES-COMMON-STOCK> 7,195,530
<SHARES-COMMON-PRIOR> 7,225,406
<ACCUMULATED-NII-CURRENT> 121,759
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,137,569)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (104,639)
<NET-ASSETS> 74,774,119
<DIVIDEND-INCOME> 521,632
<INTEREST-INCOME> 5,219,265
<OTHER-INCOME> 0
<EXPENSES-NET> 431,417
<NET-INVESTMENT-INCOME> 5,309,480
<REALIZED-GAINS-CURRENT> 3,596,533
<APPREC-INCREASE-CURRENT> (949,624)
<NET-CHANGE-FROM-OPS> 7,956,389
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,212,243
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,534,918
<NUMBER-OF-SHARES-REDEEMED> 1,951,756
<SHARES-REINVESTED> 386,962
<NET-CHANGE-IN-ASSETS> 2,745,416
<ACCUMULATED-NII-PRIOR> 24,522
<ACCUMULATED-GAINS-PRIOR> (4,734,102)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 305,247
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 453,840
<AVERAGE-NET-ASSETS> 81,244,547
<PER-SHARE-NAV-BEGIN> 9.97
<PER-SHARE-NII> .70
<PER-SHARE-GAIN-APPREC> .41
<PER-SHARE-DIVIDEND> .69
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.39
<EXPENSE-RATIO> .56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 4
<NAME> THE GOVERNMENT STREET EQUITY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 31,457,310
<INVESTMENTS-AT-VALUE> 41,395,414
<RECEIVABLES> 63,371
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,841
<TOTAL-ASSETS> 41,461,626
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 40,803
<TOTAL-LIABILITIES> 40,803
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,687,750
<SHARES-COMMON-STOCK> 1,408,431
<SHARES-COMMON-PRIOR> 1,318,562
<ACCUMULATED-NII-CURRENT> 2,128
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 792,841
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9,938,104
<NET-ASSETS> 41,420,823
<DIVIDEND-INCOME> 722,968
<INTEREST-INCOME> 177,220
<OTHER-INCOME> 0
<EXPENSES-NET> 346,705
<NET-INVESTMENT-INCOME> 553,483
<REALIZED-GAINS-CURRENT> 1,093,838
<APPREC-INCREASE-CURRENT> 6,795,880
<NET-CHANGE-FROM-OPS> 8,443,201
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 552,981
<DISTRIBUTIONS-OF-GAINS> 280,943
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 273,855
<NUMBER-OF-SHARES-REDEEMED> 213,229
<SHARES-REINVESTED> 29,243
<NET-CHANGE-IN-ASSETS> 9,947,435
<ACCUMULATED-NII-PRIOR> 1,626
<ACCUMULATED-GAINS-PRIOR> (20,054)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 221,551
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 346,705
<AVERAGE-NET-ASSETS> 36,878,954
<PER-SHARE-NAV-BEGIN> 23.87
<PER-SHARE-NII> .40
<PER-SHARE-GAIN-APPREC> 5.75
<PER-SHARE-DIVIDEND> .40
<PER-SHARE-DISTRIBUTIONS> .21
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.41
<EXPENSE-RATIO> .94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 5
<NAME> THE GOVERNMENT STREET BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 27,914,504
<INVESTMENTS-AT-VALUE> 27,756,697
<RECEIVABLES> 1,126,242
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,414
<TOTAL-ASSETS> 28,885,353
<PAYABLE-FOR-SECURITIES> 99,690
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 67,905
<TOTAL-LIABILITIES> 167,595
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,068,907
<SHARES-COMMON-STOCK> 1,376,329
<SHARES-COMMON-PRIOR> 1,366,752
<ACCUMULATED-NII-CURRENT> 2,839
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (196,181)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (157,807)
<NET-ASSETS> 28,717,758
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,048,899
<OTHER-INCOME> 0
<EXPENSES-NET> 218,708
<NET-INVESTMENT-INCOME> 1,830,191
<REALIZED-GAINS-CURRENT> (43,990)
<APPREC-INCREASE-CURRENT> 791,184
<NET-CHANGE-FROM-OPS> 2,577,385
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,829,817
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 117,710
<NUMBER-OF-SHARES-REDEEMED> 183,993
<SHARES-REINVESTED> 75,860
<NET-CHANGE-IN-ASSETS> 937,812
<ACCUMULATED-NII-PRIOR> 2,465
<ACCUMULATED-GAINS-PRIOR> (152,191)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 143,643
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 218,708
<AVERAGE-NET-ASSETS> 28,672,201
<PER-SHARE-NAV-BEGIN> 20.33
<PER-SHARE-NII> 1.35
<PER-SHARE-GAIN-APPREC> .54
<PER-SHARE-DIVIDEND> 1.35
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.87
<EXPENSE-RATIO> .76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 6
<NAME> THE JAMESTOWN SHORT TERM BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 9,303,636
<INVESTMENTS-AT-VALUE> 9,256,065
<RECEIVABLES> 581,214
<ASSETS-OTHER> 1,232
<OTHER-ITEMS-ASSETS> 968
<TOTAL-ASSETS> 9,839,479
<PAYABLE-FOR-SECURITIES> 403,185
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,538
<TOTAL-LIABILITIES> 413,723
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,914,073
<SHARES-COMMON-STOCK> 969,934
<SHARES-COMMON-PRIOR> 1,464,843
<ACCUMULATED-NII-CURRENT> 3,659
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (444,405)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (47,571)
<NET-ASSETS> 9,425,756
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 853,612
<OTHER-INCOME> 0
<EXPENSES-NET> 63,227
<NET-INVESTMENT-INCOME> 790,385
<REALIZED-GAINS-CURRENT> 192,225
<APPREC-INCREASE-CURRENT> (10,516)
<NET-CHANGE-FROM-OPS> 972,094
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 793,655
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 208,453
<NUMBER-OF-SHARES-REDEEMED> 761,014
<SHARES-REINVESTED> 57,652
<NET-CHANGE-IN-ASSETS> (4,696,685)
<ACCUMULATED-NII-PRIOR> 6,929
<ACCUMULATED-GAINS-PRIOR> (636,630)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 47,421
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 106,862
<AVERAGE-NET-ASSETS> 12,604,460
<PER-SHARE-NAV-BEGIN> 9.64
<PER-SHARE-NII> .62
<PER-SHARE-GAIN-APPREC> .08
<PER-SHARE-DIVIDEND> .62
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.72
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 7
<NAME> THE JAMESTOWN EQUITY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 15,043,374
<INVESTMENTS-AT-VALUE> 17,929,871
<RECEIVABLES> 24,704
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 600
<TOTAL-ASSETS> 17,955,175
<PAYABLE-FOR-SECURITIES> 75,705
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,948
<TOTAL-LIABILITIES> 98,653
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,713,478
<SHARES-COMMON-STOCK> 1,279,411
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,860
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 253,687
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,886,497
<NET-ASSETS> 17,856,522
<DIVIDEND-INCOME> 218,571
<INTEREST-INCOME> 61,273
<OTHER-INCOME> 0
<EXPENSES-NET> 123,963
<NET-INVESTMENT-INCOME> 155,881
<REALIZED-GAINS-CURRENT> 567,635
<APPREC-INCREASE-CURRENT> 2,204,131
<NET-CHANGE-FROM-OPS> 2,927,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 153,763
<DISTRIBUTIONS-OF-GAINS> 304,491
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 542,324
<NUMBER-OF-SHARES-REDEEMED> 13,292
<SHARES-REINVESTED> 31,979
<NET-CHANGE-IN-ASSETS> 9,745,348
<ACCUMULATED-NII-PRIOR> 742
<ACCUMULATED-GAINS-PRIOR> (9,457)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 79,891
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 140,525
<AVERAGE-NET-ASSETS> 12,294,717
<PER-SHARE-NAV-BEGIN> 11.29
<PER-SHARE-NII> .15
<PER-SHARE-GAIN-APPREC> 2.98
<PER-SHARE-DIVIDEND> .15
<PER-SHARE-DISTRIBUTIONS> .31
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.96
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 8
<NAME> FBP CONTRARIAN EQUITY FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 7,691,625
<INVESTMENTS-AT-VALUE> 9,430,004
<RECEIVABLES> 40,109
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,470,113
<PAYABLE-FOR-SECURITIES> 350,080
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30,119
<TOTAL-LIABILITIES> 380,199
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,197,699
<SHARES-COMMON-STOCK> 639,722
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,883
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 144,842
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,745,490
<NET-ASSETS> 9,089,914
<DIVIDEND-INCOME> 133,911
<INTEREST-INCOME> 73,785
<OTHER-INCOME> 0
<EXPENSES-NET> 82,775
<NET-INVESTMENT-INCOME> 124,921
<REALIZED-GAINS-CURRENT> 167,757
<APPREC-INCREASE-CURRENT> 1,328,851
<NET-CHANGE-FROM-OPS> 1,621,529
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 124,493
<DISTRIBUTIONS-OF-GAINS> 22,509
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 227,338
<NUMBER-OF-SHARES-REDEEMED> 70,241
<SHARES-REINVESTED> 7,962
<NET-CHANGE-IN-ASSETS> 3,766,934
<ACCUMULATED-NII-PRIOR> 1,455
<ACCUMULATED-GAINS-PRIOR> (406)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49,665
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 110,624
<AVERAGE-NET-ASSETS> 6,619,712
<PER-SHARE-NAV-BEGIN> 11.21
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 3.05
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> .05
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.21
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 9
<NAME> THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 8,457,609
<INVESTMENTS-AT-VALUE> 8,672,674
<RECEIVABLES> 127,276
<ASSETS-OTHER> 933
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,800,883
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21,728
<TOTAL-LIABILITIES> 21,728
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,637,957
<SHARES-COMMON-STOCK> 890,918
<SHARES-COMMON-PRIOR> 796,585
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (73,867)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 215,065
<NET-ASSETS> 8,779,155
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 440,910
<OTHER-INCOME> 0
<EXPENSES-NET> 62,290
<NET-INVESTMENT-INCOME> 378,620
<REALIZED-GAINS-CURRENT> 44,594
<APPREC-INCREASE-CURRENT> 87,707
<NET-CHANGE-FROM-OPS> 510,921
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 378,620
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 159,428
<NUMBER-OF-SHARES-REDEEMED> 89,606
<SHARES-REINVESTED> 24,511
<NET-CHANGE-IN-ASSETS> 1,067,608
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (118,461)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33,221
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 85,935
<AVERAGE-NET-ASSETS> 8,291,606
<PER-SHARE-NAV-BEGIN> 9.68
<PER-SHARE-NII> .45
<PER-SHARE-GAIN-APPREC> .17
<PER-SHARE-DIVIDEND> .45
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.85
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
<SERIES>
<NUMBER> 10
<NAME> THE ALABAMA TAX FREE BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 15,041,049
<INVESTMENTS-AT-VALUE> 15,302,263
<RECEIVABLES> 201,175
<ASSETS-OTHER> 1,492
<OTHER-ITEMS-ASSETS> 965
<TOTAL-ASSETS> 15,505,895
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,416
<TOTAL-LIABILITIES> 25,416
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,425,435
<SHARES-COMMON-STOCK> 1,513,539
<SHARES-COMMON-PRIOR> 1,286,852
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (206,170)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 261,214
<NET-ASSETS> 15,480,479
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 690,087
<OTHER-INCOME> 0
<EXPENSES-NET> 106,650
<NET-INVESTMENT-INCOME> 583,437
<REALIZED-GAINS-CURRENT> (3,107)
<APPREC-INCREASE-CURRENT> 340,163
<NET-CHANGE-FROM-OPS> 920,493
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 583,437
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 247,956
<NUMBER-OF-SHARES-REDEEMED> 61,341
<SHARES-REINVESTED> 40,072
<NET-CHANGE-IN-ASSETS> 2,664,262
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (203,063)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49,770
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 121,984
<AVERAGE-NET-ASSETS> 14,198,764
<PER-SHARE-NAV-BEGIN> 9.96
<PER-SHARE-NII> .42
<PER-SHARE-GAIN-APPREC> .27
<PER-SHARE-DIVIDEND> .42
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.23
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
