<PAGE>
THE JAMESTOWN BALANCED FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Lowe, Brockenbrough & Tattersall, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN BALANCED FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1998
Performance of The Jamestown Balanced Fund
The twelve months ending March 31, 1998, were rewarding ones for The Jamestown
Balanced Fund in both absolute results as well as in relative results. For the
year, your fund returned 32.4% after expenses versus 29.0% for the comparable
Lipper Balanced Index. The Standard & Poor's Index was up 48% for the same 12
month period with your fund invested approximately two-thirds in stocks and
one-third in bonds and cash.
The sectors outperforming the market were finance, communication services, and
consumer cyclicals in particular, with capital goods, health care, and
technology slightly ahead of the S&P. Those sectors lagging the market were
consumer staples, transportation, utility, energy, and basic industries. Your
fund was well represented in the finance, technology, and consumer staples
sectors. We had underweightings in the communication services, utility, and
transportation sectors.
For the past three years, the Jamestown Balanced Fund has appreciated at an
annualized rate of 22.2%, well ahead of the Lipper Balanced Fund Index of 19.9%.
With the stock market now selling at lofty price-to-earnings multiples (25x), it
is dangerous to be lulled into a belief that these strong returns will continue
each year. There will be a regression to the mean, i.e., a market correction,
but with interest rates and inflation rates staying low, we are hopeful that
this market can continue for at least a short period. Inflation appears to be
very well contained, and the same can be said for the wage component of the
consumer price index.
As in the past several years, the bond market portion of your fund provided
positive returns. The Lehman Intermediate Index was up 9.7%. While lagging the
returns of the stock portion, bonds provide an excellent source of funds for
equity employment should we see a significant market correction.
We will continue to invest in high quality stocks--those with low debt to equity
and strong earnings trends in place. Should we see a market correction in the
near future, we believe it will not be a significant one given the continued
"Goldilocks" fundamentals of the current economy.
For a comparison of the fund's performance since inception versus the Standard &
Poor's 500 Index and the Consumer Price Index, please refer to the chart below.
<PAGE>
THE JAMESTOWN BALANCED FUND
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 10.71% 11,071 09/30/89 0.00% 10,000
12/31/89 2.06% 11,299 12/31/89 6.25% 10,625
03/31/90 -3.00% 10,960 03/31/90 -2.62% 10,347
06/30/90 6.28% 11,648 06/30/90 4.90% 10,853
09/30/90 -13.75% 10,047 09/30/90 -9.33% 9,841
12/31/90 8.97% 10,948 12/31/90 5.17% 10,350
03/31/91 14.53% 12,539 03/31/91 9.96% 11,380
06/30/91 -0.23% 12,510 06/30/91 -0.91% 11,277
09/30/91 5.35% 13,179 09/30/91 5.12% 11,854
12/31/91 8.38% 14,284 12/31/91 6.97% 12,681
03/31/92 -2.53% 13,922 03/31/92 -2.03% 12,423
06/30/92 1.90% 14,187 06/30/92 2.03% 12,675
09/30/92 3.15% 14,634 09/30/92 4.46% 13,241
12/31/92 5.03% 15,370 12/31/92 3.74% 13,736
03/31/93 4.36% 16,040 03/31/93 1.75% 13,976
06/30/93 0.48% 16,117 06/30/93 -0.26% 13,941
09/30/93 2.58% 16,533 09/30/93 2.49% 14,287
12/31/93 2.32% 16,916 12/31/93 0.32% 14,333
03/31/94 -3.79% 16,275 03/31/94 -1.58% 14,107
06/30/94 0.42% 16,343 06/30/94 0.91% 14,235
09/30/94 4.88% 17,141 09/30/94 1.64% 14,469
12/31/94 -0.02% 17,137 12/31/94 -0.83% 14,349
03/31/95 9.74% 18,807 03/31/95 8.67% 15,594
06/30/95 9.55% 20,602 06/30/95 7.60% 16,779
09/30/95 7.95% 22,239 09/30/95 5.50% 17,702
12/31/95 6.02% 23,578 12/31/95 4.75% 18,542
03/31/96 5.37% 24,844 03/31/96 3.27% 19,148
06/30/96 4.49% 25,959 06/30/96 3.05% 19,731
09/30/96 3.09% 26,761 09/30/96 2.41% 20,207
12/31/96 8.34% 28,992 12/31/96 6.21% 21,462
03/31/97 2.68% 29,769 03/31/97 0.18% 21,501
06/30/97 17.46% 34,966 06/30/97 11.31% 23,932
09/30/97 7.49% 37,585 09/30/97 4.97% 25,121
12/31/97 2.87% 38,665 12/31/97 2.43% 25,731
03/31/98 13.95% 44,059 03/31/98 10.65% 28,471
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% 10,933
06/30/91 0.40% 10,977
09/30/91 0.60% 11,043
12/31/91 0.90% 11,142
03/31/92 0.70% 11,221
06/30/92 0.80% 11,311
09/30/92 0.70% 11,390
12/31/92 0.80% 11,481
03/31/93 0.90% 11,585
06/30/93 0.60% 11,654
09/30/93 0.40% 11,701
12/31/93 0.70% 11,783
03/31/94 0.50% 11,842
06/30/94 0.60% 11,913
09/30/94 0.90% 12,020
12/31/94 0.60% 12,093
03/31/95 0.80% 12,190
06/30/95 0.90% 12,300
09/30/95 0.40% 12,349
12/31/95 0.50% 12,411
03/31/96 0.80% 12,510
06/30/96 1.10% 12,649
09/30/96 0.44% 12,704
12/31/96 0.82% 12,809
03/31/97 0.69% 12,897
06/30/97 0.19% 12,922
09/30/97 0.44% 12,978
12/31/97 0.62% 13,059
03/31/98 0.12% 13,075
The Jamestown Balanced Fund Average Total Returns
1 Year 5 Years Since Inception*
28.40% 14.58% 12.31%
*Initial public offering of shares was July 3, 1989.
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
THE JAMESTOWN BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 70,033,530
================
At value (Note 1) $ 96,403,552
Investments in repurchase agreements (Note 1) 4,833,000
Cash 589
Receivable for securities sold 977,601
Receivable for capital shares sold 304,390
Interest receivable 365,450
Dividends receivable 38,913
Other assets 6,639
----------------
TOTAL ASSETS 102,930,134
----------------
LIABILITIES
Dividends payable 30,345
Distributions payable 178,789
Payable for securities purchased 1,197,219
Payable for capital shares redeemed 25,180
Accrued advisory fees (Note 3) 54,647
Accrued administration fees (Note 3) 13,950
Other accrued expenses 21,717
----------------
TOTAL LIABILITIES 1,521,847
----------------
NET ASSETS $ 101,408,287
================
Net assets consist of:
Paid-in capital $ 75,047,485
Distributions in excess of net realized gains (12,198)
Undistributed net investment income 2,978
Net unrealized appreciation on investments 26,370,022
----------------
Net assets $ 101,408,287
================
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 5,835,774
================
Net asset value, offering price and redemption price per share (Note 1) $ 17.38
================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN BALANCED FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1998
<S> <C> <C>
INVESTMENT INCOME
Interest $ 1,980,449
Dividends 686,177
-------------
TOTAL INVESTMENT INCOME 2,666,626
-------------
EXPENSES
Investment advisory fees (Note 3) 561,887
Administrative fees (Note 3) 148,539
Professional fees 14,021
Custodian fees 13,983
Registration fees 11,035
Pricing costs 7,026
Trustees' fees and expenses 5,405
Postage and supplies 4,281
Insurance expense 4,163
Printing of shareholder reports 1,920
Other expenses 6,860
---------------
TOTAL EXPENSES 779,120
Expenses reimbursed through a directed
brokerage arrangement (Note 4) (24,000)
--------------
NET EXPENSES 755,120
-------------
NET INVESTMENT INCOME 1,911,506
--------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 9,533,601
Net change in unrealized appreciation/depreciation
on investments 12,603,990
--------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 22,137,591
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 24,049,097
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,911,506 $ 1,532,966
Net realized gains from security transactions 9,533,601 3,339,264
Net change in unrealized appreciation/depreciation
on investments 12,603,990 2,746,030
------------- ------------
Net increase in net assets from operations 24,049,097 7,618,260
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,934,092) (1,518,758)
From net realized gains from security transactions (10,800,423) (4,545,144)
------------- ------------
Decrease in net assets from distributions to shareholders (12,734,515) (6,063,902)
------------- ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 17,601,307 9,763,400
Net asset value of shares issued in reinvestment
of distributions to shareholders 12,174,707 5,853,635
Payments for shares redeemed (10,335,880) (8,094,099)
------------- ------------
Net increase in net assets from capital share transactions 19,440,134 7,522,936
------------- ------------
TOTAL INCREASE IN NET ASSETS 30,754,716 9,077,294
NET ASSETS:
Beginning of year 70,653,571 61,576,277
------------- ------------
End of year - (including undistributed net investment
income of $2,978 and $25,564, respectively) $ 101,408,287 $ 70,653,571
============= ============
Capital share activity:
Sold 1,041,126 631,119
Reinvested 735,126 383,386
Redeemed (599,080) (526,294)
------------- ------------
Net increase in shares outstanding 1,177,172 488,211
Shares outstanding, beginning of year 4,658,602 4,170,391
------------- ------------
Shares outstanding, end of year 5,835,774 4,658,602
============= ============
See accompanying notes to financial statements.
</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,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year $15.17 $14.77 $12.76 $12.15 $12.49
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.37 0.35 0.36 0.33 0.30
Net realized and unrealized gains (losses)
on investments 4.31 1.45 2.50 0.90 (0.18)
------- ------- ------- ------- -------
Total from investment operations 4.68 1.80 2.86 1.23 0.12
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.37) (0.35) (0.36) (0.33) (0.30)
Distributions from net realized gains (2.10) (1.05) (0.49) (0.29) (0.16)
------- ------- ------- ------- -------
Total distributions (2.47) (1.40) (0.85) (0.62) (0.46)
------- ------- ------- ------- -------
Net asset value at end of year $17.38 $15.17 $14.77 $12.76 $12.15
======= ======= ======= ======= =======
Total return 32.42% 12.29% 22.79% 10.54% 0.94%
======= ======= ======= ======= =======
Net assets at end of year (000's) $101,408 $70,654 $61,576 $52,062 $46,928
======== ======= ======= ======= =======
Ratio of gross expenses to average net assets 0.90% 0.91% 0.93% 0.99% 1.01%
Ratio of net expenses to average net assets (a) 0.87% 0.87% 0.88% 0.96% 0.98%
Ratio of net investment income to average net assets 2.21% 2.31% 2.52% 2.72% 2.47%
Portfolio turnover rate 90% 58% 72% 95% 123%
Average commission rate per share $0.0681 $0.0667 -- -- --
(a)Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 67.0%
Advertising - 1.1%
18,000 Interpublic Group of Companies, Inc. $ 1,118,250
-----------
Chemicals - 2.0%
24,500 Air Products & Chemicals, Inc. 2,030,438
-----------
Commercial Banking - 5.2%
25,300 Fannie Mae 1,600,225
33,400 First Union Corporation 1,895,450
25,000 NationsBank Corporation 1,823,438
-----------
5,319,113
-----------
Communications - 5.7%
61,000 Equifax, Inc. 2,226,500
11,500 Lucent Technologies, Inc. 1,470,562
42,000 MCI Communications 2,079,000
-----------
5,776,062
-----------
Computers/Computer Technology Services - 8.0%
21,000 Cisco Systems, Inc. (a) 1,435,875
28,200 Computer Sciences Corporation (a) 1,551,000
39,400 Diebold, Inc. 1,733,600
17,900 Intel Corporation 1,397,319
33,000 Sundstrand Corporation 1,996,500
-----------
8,114,294
-----------
Consumer Products - 14.5%
30,000 Avon Products, Inc. 2,340,000
15,000 Cendant Corporation (a) 594,375
38,200 Crane Company 2,024,600
27,000 General Electric Company 2,327,063
12,000 Gillette Company 1,424,250
27,000 Kimberly-Clark Corporation 1,353,375
23,000 Lilly (Eli) & Company 1,371,375
11,000 Procter & Gamble Company 928,125
35,000 Sherwin Williams Company 1,242,500
42,000 Sysco Corporation 1,076,250
-----------
14,681,913
-----------
Drugs/Medical Equipment - 5.2%
22,000 Abbott Laboratories 1,656,875
10,000 Merck and Company, Inc. 1,283,750
28,000 Schering-Plough Corporation 2,287,250
-----------
5,227,875
-----------
<PAGE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - Continued
Electronics - 1.6%
25,000 Hewlett-Packard Company $ 1,584,375
-----------
Entertainment - 0.7%
6,400 Walt Disney Company 683,200
-----------
Fire Systems - 2.3%
42,000 Tyco International Ltd. 2,294,250
-----------
Food Productions - 1.5%
48,000 Conagra, Inc. 1,542,000
-----------
Funeral Services - 1.6%
39,500 Service Corporation International 1,676,281
-----------
Health Care Centers - 1.0%
38,000 HealthSouth Corporation (a) 1,066,375
-----------
Hotels - 1.9%
105,000 Choice Hotel International, Inc. (a) 1,929,375
-----------
Insurance - 5.1%
11,000 American International Group 1,385,313
33,300 Conseco, Inc. 1,885,612
21,000 Jefferson-Pilot Corporation 1,867,688
-----------
5,138,613
-----------
Oil and Gas Drilling - 5.4%
31,000 Coastal Corporation 2,018,875
25,600 Schlumberger Ltd. 1,939,200
24,600 Texaco, Inc. 1,482,150
-----------
5,440,225
-----------
Oil Field Machinery and Equipment - 1.7%
36,500 Dresser Industries, Inc. 1,754,281
-----------
Retail Stores - 2.5%
50,000 AutoZone, Inc. (a) 1,693,750
20,000 Circuit City Stores, Inc. 855,000
-----------
2,548,750
-----------
Total Common Stocks (Cost $41,718,591) $ 67,925,670
-----------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
U.S. TREASURY & AGENCY OBLIGATIONS - 6.6%
U.S. Treasury Notes - 6.0%
$1,075,000 7.75%, due 11/30/1999 $ 1,111,109
2,050,000 6.50%, due 05/31/2001 2,099,651
2,935,000 5.625%, due 02/15/2006 2,912,518
-----------
6,123,278
-----------
U.S. Treasury Inflation-Protection Notes - 0.6%
393,518 3.625%, due 07/15/2002 389,583
209,094 3.375%, due 01/15/2007 202,723
-----------
592,306
-----------
Total U.S. Treasury & Agency Obligations
(Cost $6,702,500) $ 6,715,584
-----------
MORTGAGE-BACKED SECURITIES - 7.0%
Federal Home Loan Mortgage Corporation - 2.0%
$ 243,617 Pool #G50153, 4.50%, due 05/01/1999 $ 242,821
489,144 Pool #1490-PE, 5.75%, due 07/15/2006 488,072
592,033 Pool #1561-ZB, 6.00%, due 08/15/2006 592,033
475,000 Pool #1471, 7.00%, due 03/15/2008 488,357
175,000 Pool #1655-HB, 6.50%, due 10/01/2008 176,475
59,531 Pool #162-E, 7.00%, due 01/15/2020 59,419
-----------
2,047,177
-----------
Federal National Mortgage Association - 2.5%
388,338 Pool #73718, 7.23%, due 11/01/2003 406,177
348,674 Pool #375448, 6.66%, due 10/01/2004 356,846
400,000 Series #93-63-PE, 6.25%, due 06/25/2005 400,248
621,957 Pool #375296, 6.92%, due 08/01/2007 648,973
201,292 Pool #70, 8.50%, due 01/01/2012 211,811
178,976 Series #88-29-B, 9.50%, due 12/25/2018 193,125
295,632 Series #90-35-E, 9.50%, due 04/25/2020 320,113
-----------
2,537,293
-----------
Government National Mortgage Association - 1.1%
520,013 Pool #343536, 7.50%, due 02/15/2023 534,485
606,243 Pool #8482, 7.00%, adjustable rate, due 08/20/2024 621,496
-----------
1,155,981
-----------
Student Loan Marketing Association - 0.9%
875,000 Series #98-1-A1, 5.173%, due 01/25/2007 875,137
-----------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
MORTGAGE-BACKED SECURITIES - Continued
Other Mortgage-Backed Securities - 0.5%
Lehman Brothers Mortgage Trust #91-2-A1,
$ 76,671 8.00%, due 03/20/1999 $ 77,270
Morgan Stanley Capital I #97-XL1-A1,
360,857 6.59%, due 10/03/2030 367,397
-----------
444,667
-----------
Total Mortgage-Backed Securities (Cost $6,981,572) $ 7,060,255
-----------
ASSET-BACKED SECURITIES - 2.1%
Advanta Mortgage Loan Trust #92-2-A2,
$ 351,053 7.03%, due 03/25/2011 $ 351,860
AFG Receivables Trust #95-A-A,
106,201 6.15%, due 09/15/2000 106,286
Fleetwood Credit Corporation Grantor Trust #95-A-A,
391,564 8.45%, due 11/15/2010 407,349
Green Tree Financial Corporation #98-A,
500,000 6.18%, due 04/01/2018 498,900
Nomura Asset Securities Corporation #98-D6-A1B,
475,000 6.59%, due 03/15/2030 481,457
NationsCredit Grantor Trust #96-1-A,
277,240 5.85%, due 09/15/2011 275,355
-----------
Total Asset-Backed Securities (Cost $2,124,391) $ 2,121,207
-----------
CORPORATE BONDS - 12.4%
Beneficial Corporation Medium Term Notes,
$ 275,000 9.35%, due 03/15/2001 $ 297,946
Caterpillar Financial Services Medium Term Notes,
450,000 6.80%, due 06/15/1999 454,932
Chrysler Financial Corporation,
1,000,000 5.90%, due 01/26/2001 995,120
Enron Corporation,
750,000 6.45%, due 11/15/2001 752,895
Equity Residential Properties,
875,000 6.65%, due 11/15/2003 877,765
Finova Capital Corporation,
1,000,000 6.25%, due 08/15/2000 1,002,590
Ford Motor Credit Medium Term Notes,
225,000 7.55%, due 07/19/1999 229,617
280,000 5.99%, due 02/27/2001 279,135
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - Continued
GMAC Medium Term Notes,
$525,000 6.65%, due 05/24/2000 $ 531,431
International Paper Company,
735,000 8.68%, due 09/14/2001 794,491
International Lease Finance Corporation,
425,000 6.42%, due 09/11/2000 428,268
International Lease Finance Corporation Medium Term Notes,
425,000 6.55%, due 09/15/2000 429,509
KeyCorp Medium Term Notes,
675,000 6.75%, due 05/29/2001 684,909
Merrill Lynch and Company Medium Term Notes,
410,000 7.26%, due 03/25/2002 414,502
National City Corporation,
575,000 7.20%, due 05/15/2005 602,117
NationsBank Medium Term Notes,
500,000 5.80%, due 01/31/2001 496,795
Northern Trust Corporation Medium Term Notes,
100,000 9.00%, due 05/15/1998 100,347
Norwest Financial, Inc.,
140,000 6.05%, due 11/19/1999 140,354
Norfolk Southern Corporation,
210,000 7.35%, due 05/15/2007 223,507
SBC Communications, Inc.
400,000 6.875%, due 08/15/2006 417,540
185,000 6.625%, due 11/01/2009 189,327
Sears Roebuck Acceptance Corporation,
400,000 6.99%, due 09/30/2002 411,172
Southern California Edison Company,
700,000 6.17%, due 03/25/2003 704,060
Suntrust Banks,
310,000 6.125%, due 02/15/2004 307,424
TRW, Inc.,
400,000 6.25%, due 01/15/2010 387,592
Union Camp Corporation,
425,000 6.50%, due 11/15/2007 427,491
-----------
Total Corporate Bonds (Cost $12,506,476) $ 12,580,836
-----------
Total Investments at Value
(Cost $70,033,530) - 95.1% $ 96,403,552
-----------
<PAGE>
<CAPTION>
Face
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS (b) - 4.8%
Star Bank, N.A., 5.25%, dated 03/31/1998, due 04/01/1998
$4,833,000 repurchase proceeds $4,833,705 (Cost $4,833,000) $ 4,833,000
Total Investments and Repurchase Agreements
at Value - 99.9% $101,236,552
Other Assets in Excess of Liabilities - 0.1% 171,735
---------
Net Assets - 100.0% $101,408,287
============
(a) Non-income producing security.
(b) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA
II, Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00% due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985. The
Fund's pro-rata interest in the collateral at March 31, 1998 was $4,950,276.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Balanced Fund (the Fund) is a no-load, diversified series of the
Williamsburg Investment Trust (the Trust), an open-end management investment
company registered 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 and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with tax regulations. Dividend income is recorded on the
ex-dividend date. Dividends arising from net investment income are declared and
paid quarterly to shareholders of the Fund. Net realized short-term capital
gains, if any, may be distributed throughout the year and net realized long-term
capital gains, if any, are distributed at least once each year. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles.
<PAGE>
Security transactions -- Security transactions are accounted for on trade date.
Cost of securities sold is determined 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 reported amounts of assets and liabilites at the
date of the financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In 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 $70,046,130 as of March 31, 1998:
Gross unrealized appreciation....................................$26,558,490
Gross unrealized depreciation.................................... (201,068)
------------
Net unrealized appreciation..................................... $26,357,422
=============
The difference between the Federal income tax cost of portfolio investments and
financial statement cost is due to certain timing differences in the recognition
of capital losses under generally accepted accounting principles and income tax
regulations.
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $79,927,043 and $74,274,121, respectively.
<PAGE>
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% of its
average daily net assets up to $250 million; .60% of the next $250 million of
such net assets; and .55% of such net assets in excess of $500 million. Certain
trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .20% of its average daily net assets up to $25
million; .175% of the next $25 million of such net assets; and .15% of 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,
postage, supplies, and cost of pricing the Fund's portfolio securities. Certain
officers of the Trust are also officers of CFS.
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 $24,000 for the year ended March 31, 1998.
<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, 1998, 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, 1998 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, 1998, 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 24, 1998
<PAGE>
<PAGE>
THE JAMESTOWN BOND FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Tattersall Advisory Group, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1998
PERFORMANCE OF THE JAMESTOWN BOND FUND
FISCAL YEAR ENDED MARCH 31, 1998
There is something about the beginning of a year that encourages thoughts of a
slowdown. It could be that after the normal Christmas retail frenzy, consumers
are expected to be "spent out." Or it could be that during the inclement weather
of the winter months, consumers are supposed to stay at home. Not only did they
not stay at home, but they were out buying homes! During the so-called slow
months, housing activity soared in response to the unbeatable combination of
unusually mild weather and low interest rates. Consumer and business spending
more than offset the Asian-induced weakness from the trade sector so that the
economy is on track to turn in a 1st quarter performance that will most likely
exceed the 3% level. Activity in Europe was also brisk, with inflation as
elusive there as it is in the U.S. Interest rates fell for all G-7 countries
with rates in Japan and the U.S. falling the least. With interest rates
basically unchanged for the first quarter of 1998, the bond market's performance
was dominated by coupon return. The Jamestown Bond Fund's Institutional Shares
provided a return of 12.06% for the fiscal year ended March 31, 1998, and the
Service Group Shares provided a return of 8.55% for the period from October 2,
1998 through March 31, 1998. For the year ended March 31, 1998, the Lehman
Aggregate Index returned 11.99% while the Lehman Government/Corporate Index
returned 12.39%.
With no clear trend in the direction of rates, duration strategy for us or for
any manager was a non-event as sectors saw all of the action. Battered by huge
new issuance and Asian credit concerns, corporates started the year with
historically attractive yield spreads versus Treasuries, reached a peak in late
January, before narrowing again with the help of decent earnings reports and a
strong stock market. Our strategy was to be overweighted in corporates relative
to the Index. We were also overweighted in mortgages. This sector was initially
hurt by the acceleration in prepayment speeds, an event for which we had
prepared the portfolio, but began to outperform as low interest rate volatility
helped to calm investors' concerns. The asset-backed market outperformed
Treasuries, which was quite an accomplishment considering the huge amount of new
issues the market was forced to digest during the quarter. Closed-end funds
basically held their own.
<PAGE>
LOOKING AHEAD
We expect the market to establish a trend before this year ends, and that trend
will most likely be to lower rates. Between now and then, however, the market
will stay on edge purely from inflation worries associated with a strong
economy. The Federal Reserve should remain firmly on hold. The risk to bond
holders is that domestic demand remains too strong and the effect of the Asian
slowdown too weak for the Federal Reserve to pursue price stability with
unchanged interest rates. The latest unemployment report should help to mitigate
this risk, and we expect to extend the duration if more weakness materializes.
As opposed to this time last year when we were frustrated by the lack of
opportunity in sectors, we are energized by what we see this year. Having
claimed victory in the first quarter with long industrials and REITS, we start
the second quarter equally weighted in corporates versus the Index. We will
watch carefully the trend of corporate earnings, realizing that the stock
market, and thus, corporate spreads are vulnerable to negative surprises. We are
currently overweighted in the mortgage sector with an emphasis on those
securities that are protected from prepayments. This strategy has worked well
since the end of last year, and we expect it to continue to work well with call
protection priced as cheaply as it is. Asset-backed securities provide another
cheap source of prepayment protection and we plan to remain overweighted in this
sector as well. Finally, we expect closed-end funds to continue to provide a
steady source of outperformance as prices converge to net asset values.
Although interest rates are essentially unchanged so far this year, there
certainly have been opportunities to outperform the bond market. We not only
expect these opportunities to continue, but we intend to fully participate in
all of them.
<PAGE>
THE JAMESTOWN BOND FUND
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.
LINE CHART:
LEHMAN 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
06/30/96 0.47% 15,530 06/30/96 0.82% 14,996
09/30/96 1.76% 15,804 09/30/96 1.84% 15,272
12/31/96 3.06% 16,287 12/31/96 3.29% 15,775
03/31/97 -0.86% 16,147 03/31/97 -0.50% 15,696
06/30/97 3.64% 16,735 06/30/97 3.75% 16,285
09/30/97 3.50% 17,321 09/30/97 3.15% 16,798
12/31/97 3.21% 17,876 12/31/97 3.10% 17,318
03/31/98 1.52% 18,148 03/31/98 1.56% 17,589
LEHMAN 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
06/30/96 0.57% 15,538 06/30/96 1.10% 11,671
09/30/96 1.85% 15,826 09/30/96 0.44% 11,723
12/31/96 3.00% 16,301 12/31/96 0.82% 11,819
03/31/97 -0.56% 16,209 03/31/97 0.69% 11,901
06/30/97 3.67% 16,804 06/30/97 0.19% 11,924
09/30/97 3.32% 17,362 09/30/97 0.44% 11,976
12/31/97 2.94% 17,873 12/31/97 0.62% 12,050
03/31/98 1.56% 18,151 03/31/98 0.12% 12,064
The Jametown Bond Fund Average Annual Total Returns
1 Year 5 Years Since Inception*
12.06% 7.03% 8.05%
*The chart above represents the performance of Institution shares only, which
will vary from the performance of Service Group Shares based on the difference
in fees paid by shareholders in the different classes. The Fund commenced
operations on December 13, 1990, and the initial public offering of Service
Group Shares commenced on October 2, 1997.
Past performance is not predictive of future performance.
<PAGE>
THE JAMESTOWN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 91,630,430
==============
At value (Note 1) $ 93,694,603
Investments in repurchase agreements (Note 1) 6,753,000
Cash 9,739
Receivable for securities sold 3,192,094
Interest receivable 1,027,791
Other assets 1,985
--------------
TOTAL ASSETS 104,679,212
--------------
LIABILITIES
Dividends payable 45,034
Payable for securities purchased 5,283,937
Accrued advisory fees (Note 3) 14,308
Accrued administration fees (Note 3) 5,980
Accrued distribution expenses (Note 3) 1,291
Other accrued expenses 9,962
--------------
TOTAL LIABILITIES 5,360,512
--------------
NET ASSETS $ 99,318,700
==============
Net assets consist of:
Paid-in capital $ 96,949,176
Accumulated net realized gains from security transactions 297,227
Undistributed net investment income 8,124
Net unrealized appreciation on investments 2,064,173
--------------
Net assets $ 99,318,700
==============
PRICING OF INSTITUTIONAL SHARES
Net assets attributable to Institutional Shares $ 96,250,111
==============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 8,886,698
==============
Net asset value, offering price and redemption price per share (Note 1) $ 10.83
==============
PRICING OF SERVICE GROUP SHARES
Net assets applicable to Service Group Shares $ 3,068,589
==============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 283,310
==============
Net asset value, offering price and redemption price per share (Note 1) $ 10.83
==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1998
<S> <C>
INVESTMENT INCOME
Interest $ 5,328,394
Dividends 383,282
--------------
TOTAL INVESTMENT INCOME 5,711,676
--------------
EXPENSES
Investment advisory fees (Note 3) 326,338
Administration fees (Note 3) 67,341
Custodian fees 16,026
Professional fees 15,996
Pricing costs 10,442
Registration fees 8,212
Trustees' fees and expenses 5,405
Insurance expense 4,675
Printing of shareholder reports 2,917
Distribution expenses, Service Group Shares (Note 3) 2,672
Other expenses 3,555
--------------
TOTAL EXPENSES 463,579
Fees waived by the Adviser (Note 3) (16,111)
Expenses reimbursed through a directed brokerage arrangement (Note 4) (9,678)
--------------
NET EXPENSES 437,790
--------------
NET INVESTMENT INCOME 5,273,886
--------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 1,826,210
Net change in unrealized appreciation/depreciation on investments 2,574,722
--------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 4,400,932
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,674,818
==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 5,273,886 $ 5,005,951
Net realized gains (losses) from security transactions 1,826,210 (391,414)
Net change in unrealized appreciation/depreciation
on investments 2,574,722 (405,910)
-------------- --------------
Net increase in net assets from operations 9,674,818 4,208,627
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Institutional Shares (5,189,396) (5,104,234)
From net investment income, Service Group Shares (99,842) --
-------------- --------------
Decrease in net assets from distributions from shareholders (5,289,238) (5,104,234)
-------------- --------------
FROM CAPITAL SHARE TRANSACTIONS:
INSTITUTIONAL SHARES
Proceeds from shares sold 15,597,164 9,262,915
Net asset value of shares issued in reinvestment
of distributions to shareholders 5,049,237 4,238,186
Payments for shares redeemed (5,227,155) (10,880,119)
-------------- --------------
Net increase in net assets from Institutional Shares transactions 15,419,246 2,620,982
-------------- --------------
SERVICE GROUP SHARES
Proceeds from shares sold 4,316,277 --
Net asset value of shares issued in reinvestment
of distributions to shareholders 99,842 --
Payments for shares redeemed (1,401,739) --
-------------- --------------
Net increase in net assets from Service Group Shares transactions 3,014,380 --
-------------- --------------
TOTAL INCREASE IN NET ASSETS 22,819,206 1,725,375
NET ASSETS:
Beginning of year 76,499,494 74,774,119
-------------- --------------
End of year - (including undistributed net investment
income of $8,124 and $23,476, respectively) $ 99,318,700 $ 76,499,494
============== ==============
Capital share activity:
Institutional Shares
Sold 1,446,450 892,247
Reinvested 472,113 409,635
Redeemed (486,114) (1,043,163)
-------------- --------------
Net increase in shares outstanding 1,432,449 258,719
Shares outstanding, beginning of year 7,454,249 7,195,530
-------------- --------------
Shares outstanding, end of year 8,886,698 7,454,249
============== ==============
Service Group Shares
Sold 402,367 --
Reinvested 9,229 --
Redeemed (128,286) --
-------------- --------------
Net increase in shares outstanding 283,310 --
Shares outstanding, beginning of year -- --
-------------- --------------
Shares outstanding, end of year 283,310 --
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND - Institutional Shares
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
<CAPTION>
Years Ended March 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year $10.26 $10.39 $9.97 $10.15 $10.82
------ ------ ------ ------ ------
Income from investment operations:
Net investment income 0.58 0.68 0.70 0.62 0.55
Net realized and unrealized gains (losses) on investments 0.63 (0.12) 0.41 (0.18) (0.30)
------ ------ ------ ------ ------
Total from investment operations 1.21 0.56 1.11 0.44 0.25
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income (0.64) (0.69) (0.69) (0.62) (0.55)
Distributions from net realized gains -- -- -- -- (0.19)
Distributions in excess of net realized gains -- -- -- -- (0.18)
------ ------ ------ ------ ------
Total distributions (0.64) (0.69) (0.69) (0.62) (0.92)
------ ------ ------ ------ ------
Net asset value at end of year $10.83 $10.26 $10.39 $9.97 $10.15
====== ====== ====== ====== ======
Total return 12.06% 5.52% 11.23% 4.56% 2.12%
====== ====== ====== ====== ======
Net assets at end of year (000's) $96,250 $76,499 $74,774 $72,029 $64,029
======= ======= ======= ======= =======
Ratio of gross expenses to average net assets 0.53% 0.53% 0.56% 0.57% 0.60%
Ratio of net expenses to average net assets (a) 0.50% 0.50% 0.53% 0.53% 0.60%
Ratio of net investment income to average net assets 6.06% 6.48% 6.54% 6.28% 5.03%
Portfolio turnover rate 235% 207% 268% 381% 381%
(a) Ratios were determined based on net expenses after reimbursements through
a directed brokerage arrangement for periods after March 31, 1994 (Note 4) and
investment advisory fees waived for the year ended March 31, 1998 (Note 3).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND - Service Group Shares
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout the Period
<CAPTION>
Period
Ended
March 31,
1998 (a)
<S> <C>
Net asset value at beginning of period $10.69
------
Income from investment operations:
Net investment income 0.37
Net realized and unrealized gains on investments 0.08
------
Total from investment operations 0.45
------
Less distributions:
Dividends from net investment income (0.31)
------
Net asset value at end of period $10.83
======
Total return 8.55%(c)
======
Net assets at end of period (000's) $3,069
======
Ratio of gross expenses to average net assets 0.68%(c)
Ratio of net expenses to average net assets (b) 0.65%(c)
Ratio of net investment income to average net assets 5.96%(c)
Portfolio turnover rate 235%
(a) Represents the period from the initial public offering of Service Group
Shares (October 2, 1997) through March 31, 1998.
(b) Ratios were determined based on net expenses after reimbursements through
a directed brokerage arrangement (Note 4) and investment advisory fees waived
for the year ended March 31, 1998 (Note 3).
(c) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
Par Value Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 20.9%
U.S. Treasury Bonds - 9.9%
$ 7,535,000 8.50%, due 02/15/2020 $ 9,789,623
---------------
U.S. Treasury Notes - 8.6%
8,380,000 6.50%, due 05/31/2001 8,582,964
---------------
U.S. Treasury Inflation-Protection Notes - 2.4%
1,600,000 3.625%, due 07/15/2002 1,598,288
760,000 3.375%, due 01/15/2007 751,557
---------------
2,349,845
---------------
Total U.S. Treasury Obligations (Cost $19,648,349) $ 20,722,432
---------------
MORTGAGE-BACKED SECURITIES - 36.2%
Federal Home Loan Mortgage Corporation - 6.0%
$ 975,000 Pool #1472, 6.75%, due 05/15/2006 $ 986,573
1,118,285 Pool #1561-ZB, 6.00%, due 08/15/2006 1,118,285
825,000 Pool #1197-H, 6.75%, due 02/15/2007 839,437
1,000,000 Pool #1221-I, 7.00%, due 03/15/2007 1,018,750
825,000 Pool #1655-HB, 6.50%, due 10/15/2008 831,955
1,246,864 Pool #C80393, 6.00%, due 03/15/2026 1,205,406
---------------
6,000,406
---------------
Federal National Mortgage Association - 9.7%
817,497 Pool #313443, 6.775%, due 04/01/2004 839,467
1,191,744 Pool #375139, 7.13% due 05/01/2004 1,245,744
1,467,421 Pool #375299, 6.81%, due 08/01/2004 1,512,361
601,498 Pool #73061, 8.66%, due 01/01/2005 667,005
626,778 Pool #73126, 7.00%, due 07/01/2005 649,687
603,222 Series #92-61-ZB, 7.50%, due 05/25/2007 640,923
765,000 Series #92-179-H, 7.00%, due 09/01/2007 785,081
548,352 Pool #375538, 6.70%, due 11/01/2007 564,631
750,000 Series #98-M3, 6.45%, due 01/01/2011 747,422
1,100,000 Series #97-M3, 7.20%, adjustable rate, due 08/17/2018 1,162,219
746,312 Series #G92-44-Z, 8.00%, due 07/25/2022 811,846
---------------
9,626,386
---------------
<CAPTION>
Par Value Value
<S> <C> <C>
MORTGAGE-BACKED SECURITIES - Continued
Government National Mortgage Association - 11.1%
$ 80,114 Pool #223997, 8.85%, due 05/15/2018 $ 86,382
607,105 Pool #224002, 8.85%, due 07/15/2018 654,599
398,317 Pool #333658, 7.50%, due 01/15/2023 409,402
859,923 Pool #342526, 7.50%, due 02/15/2023 883,855
995,361 Pool #349314, 7.50%, due 02/15/2023 1,023,062
733,877 Pool #352143, 7.50%, due 07/15/2023 754,300
726,327 Pool #346772, 7.50%, due 09/15/2023 746,540
755,992 Pool #372822, 7.50%, due 11/15/2023 777,032
999,619 Pool #359451, 7.50%, due 12/15/2023 1,027,438
415,962 Pool #354831, 7.50%, due 06/15/2024 427,018
860,611 Pool #8459, 7.00%, adjustable rate, due 07/20/2024 882,393
604,064 Pool #28484, 7.00%, adjustable rate, due 08/20/2024 619,262
519,837 Pool #8482, 7.00%, adjustable rate, due 08/20/2024 532,916
739,638 Pool #8542, 7.00%, adjustable rate, due 11/20/2024 757,323
486,214 Pool #441273, 8.00%, due 10/15/2026 503,460
900,000 TBA, 8.00%, due 04/15/2028 932,062
---------------
11,017,044
---------------
Student Loan Marketing Association - 3.3%
499,735 Series #96-2-A1, 5.678%, adjustable rate, due 10/25/2004 498,174
2,468,492 Series #97-2-A1, 5.704%, adjustable rate, due 10/25/2005 2,460,778
331,516 Series #97-3-A1, 5.884%, adjustable rate, due 04/25/2006 330,791
---------------
3,289,743
---------------
Other Mortgage-Backed Securities - 6.1%
Deutsche Mortgage and Asset Receiving Corporation #98-C1-A2,
1,915,000 6.538%, due 06/01/2031 1,928,764
First Union-Lehman Brothers Commercial Mortgage Trust #97-C2-A1,
825,869 6.479%, due 03/01/2004 832,579
LB Commercial Conduit Mortgage Trust #98-C1-A3,
975,000 6.48%, due 02/01/2030 978,656
Lehman Brothers Mortgage Trust #91-2-A1,
380,286 8.00%, due 03/20/1999 383,257
Morgan Stanley Capital I #98-WF1-A2,
1,065,000 6.55%, due 12/15/2007 1,076,482
Resolution Funding Mortgage Security I #94-S12-A2,
800,000 6.50%, due 04/25/2009 801,248
---------------
6,000,986
---------------
Total Mortgage-Backed Securities (Cost $35,765,832) $ 35,934,565
---------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
ASSET-BACKED SECURITIES - 5.6%
Bank America Manufactured Housing Contract #96-1-A6,
$ 650,000 8.00%, due 10/10/2026 $ 696,995
CIT RV Trust #95-B-A1,
242,235 6.50%, due 04/15/2011 243,824
CIT RV Trust #96-A-A1,
613,215 5.40%, due 12/15/2011 607,273
Fleetwood Credit Corporation Grantor Trust #94-A-A,
461,658 4.70%, due 07/15/2009 453,432
Fleetwood Credit Corporation Grantor Trust #96-A-A,
455,884 6.75%, due 10/15/2011 459,586
Green Tree Financial Corporation, #97-2-A6,
775,000 7.24%, due 06/15/2028 800,908
Green Tree Financial Corporation, #97-2-A7,
700,000 7.62%, due 04/15/2028 726,467
Green Tree Financial Corporation, #98-A,
1,550,000 6.18%, due 04/01/2018 1,546,590
--------------
Total Asset-Backed Securities (Cost $5,459,617) $ 5,535,075
--------------
CORPORATE BONDS - 24.4%
Allmerica Financial Corporation,
$ 390,000 7.625%, due 10/15/2025 $ 411,575
Associates Corporation,
700,000 5.75%, due 10/15/2003 684,775
Avalon Properties, Inc.,
485,000 6.625%, due 01/15/2005 479,573
Baltimore Gas & Electric Corporation,
1,000,000 8.90%, due 07/01/1998 1,007,470
Bank of New York,
610,000 6.50%, due 12/01/2003 617,265
Beneficial Corporation Medium Term Notes,
800,000 6.33%, due 10/09/2001 801,952
BRE Properties, Inc.,
425,000 7.125%, due 02/15/2013 422,450
Chrysler Corporation,
340,000 7.45%, due 03/01/2027 364,970
Coca-Cola Enterprises,
440,000 6.75%, due 01/15/2038 434,500
Dayton Hudson Corporation,
370,000 6.75%, due 01/01/2028 363,862
Dominion Capital Trust,
310,000 7.83%, due 12/01/2027 316,808
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - Continued
Duke Realty Limited Partnership,
$ 470,000 7.05%, due 03/01/2016 $ 473,351
Equity Residential Properties Trust,
875,000 6.55%, due 11/15/2001 877,153
Firstar Bank Milwaukee,
2,450,000 6.25%, due 12/01/2002 2,461,638
Ford Motor Company,
275,000 8.875%, due 01/15/2022 336,465
Ford Motor Credit Medium Term Notes,
950,000 7.45%, due 04/13/2000 975,498
General Motors,
235,000 8.80%, due 03/01/2021 286,265
General Motors Acceptance Corporation Medium Term Notes,
1,400,000 6.80%, due 04/17/2001 1,425,886
IBM Corporation,
420,000 6.50%, due 01/15/2028 411,247
International Lease Finance Medium Term Notes,
1,315,000 6.42%, due 09/11/2000 1,325,112
JDN Realty Corporation,
375,000 6.95%, due 08/01/2007 372,011
JP Realty, Inc.,
485,000 7.29%, due 03/11/2008 487,692
Lehman Brothers Holdings,
925,000 6.40%, due 12/27/1999 929,227
May Department Stores Company,
275,000 7.45%, due 09/15/2011 299,107
Mellon Financial Company,
915,000 7.625%, due 11/15/1999 935,505
Morgan Stanley Group,
500,000 6.09%, due 03/09/2011 499,975
National City Corporation,
900,000 7.20%, due 05/15/2005 942,444
Norfolk Southern Corporation,
370,000 7.80%, due 05/15/2027 413,960
Norwest Financial, Inc.,
450,000 6.05%, due 11/19/1999 451,138
SBC Communications, Inc.,
600,000 6.625%, due 11/01/2009 614,034
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
CORPORATE BONDS - Continued
Sears Roebuck & Company,
$ 750,000 6.86%, due 07/03/2001 $ 765,525
750,000 6.99%, due 09/30/2002 770,947
Spieker Properties LP,
370,000 6.75%, due 01/15/2008 364,361
Suntrust Bank,
340,000 6.125%, due 02/15/2004 337,175
Textron, Inc.,
510,000 6.625%, due 11/15/2007 518,399
TRW Inc.,
425,000 6.25%, due 01/15/2010 411,816
Union Camp Corporation,
325,000 6.50%, due 11/15/2007 326,905
United Parcel Service of America, Inc.,
300,000 8.375%, due 04/01/2030 368,007
--------------
Total Corporate Bonds (Cost $24,078,849) $ 24,286,043
--------------
Shares
CLOSED-END MUTUAL FUNDS - 7.2%
37,400 Blackrock 1999 Term Trust, Inc. $ 352,963
180,600 Blackrock 2001 Term Trust, Inc. 1,568,963
1,200 Blackrock Broad Investment Grade 2009 Term Trust, Inc. 15,225
53,900 Blackrock Investment Quality Term Trust, Inc. 454,781
10,000 Blackrock North American Government Income Trust 106,250
125,300 Blackrock Strategic Term Trust, Inc. 1,080,713
12,000 Dean Witter Government Income Trust 103,500
7,400 Excelsior Income Shares, Inc. 126,262
202,200 Hyperion 1999 Term Trust, Inc. 1,415,400
201,000 Hyperion 2002 Term Trust, Inc. 1,608,000
4,100 Hyperion 2005 Investment Grade Opportunity Term Trust, Inc. 34,337
16,400 Income Opportunities Fund, Inc. - 1999 156,825
28,900 MFS Government Markets Income Trust 193,269
--------------
Total Closed-End Funds (Cost $6,677,783) $ 7,216,488
--------------
Total Investments at Value (Cost $91,630,430) - 94.3% $ 93,694,603
--------------
<PAGE>
<CAPTION>
Face
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 6.8%
Star Bank, N.A., 5.25%, dated 03/31/1998, due 04/01/1998
$ 6,753,000 repurchase proceeds $6,753,985 (Cost $6,753,000) $ 6,753,000
---------------
Total Investments and Repurchase Agreements
at Value - 101.1% $ 100,447,603
Liabilities in Excess of Other Assets - (1.1)% (1,128,903)
---------------
Net Assets - 100.0% $ 99,318,700
===============
(a) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA
II, Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00% due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985. The
Fund's pro-rata interest in the collateral at March 31, 1998 was $6,947,756.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Bond Fund (the Fund) is a no-load, diversified series of the
Williamsburg Investment Trust (the Trust), an open-end management investment
company registered 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 offers two classes of shares: Service Group Shares, sold subjuect to a
12b-1 fee up to 0.15% of average daily net assets, and Institutional Shares,
sold without a 12b-1 fee. Each Service Group and Institutional Share of the Fund
represents identical interests in the Fund's investment portfolio and has the
same rights, except thta (i) Service Group Shares bear the expenses of the
distribution fees, which will cause Service Group Shares to have a higher
expense ratio and to pay lower dividends than Institutional Shares; (ii) certain
class specific expenses will be borne solely by the class to which such expenses
are attributable; and (iii) each class has exclusive voting rights with respect
to matters affecting only that class.
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 each class of shares of the
Fund is calculated daily by dividing the total value of the Fund's assets
attributable to that class, less liabilities attributable to that class, by the
number of shares of that class outstanding. The offering price and redemption
price per share of each class of shares of the Fund is equal to the net asset
value per share.
<PAGE>
Investment income and distributions to shareholders -- Dividend income is
recorded on the ex-dividend date. Interest income is accrued as earned.
Discounts and premiums on securities purchased are amortized in accordance with
income tax regulations. Dividends arising from net investment income are
declared and paid quarterly to shareholders of the Fund. Net realized short-term
capital gains, if any, may be distributed throughout the year and net realized
long-term capital gains, if any, are distributed at least once each year. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles.
Allocations between classes -- Investment income earned, realized capital gains
and losses, and unrealized appreciation and depreciation for the Fund are
allocated daily to each class of shares based upon its proportionate share of
total net assets of the Fund. Class specific expenses are charged directly to
the class incurring the expense. Common expenses which are not attributable to a
specific class are allocated daily to each class of shares based upon its
proportionate share of total net assets of the Fund.
Security transactions -- Security transactions are accounted for on trade date.
Cost of securities sold is determined 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 priciples requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
<PAGE>
The following information is based upon the Federal income tax cost of
portfolio investments of $91,682,263 as of March 31, 1998:
Gross unrealized appreciation....................................$ 2,271,814
Gross unrealized depreciation.......................................(259,474)
----------
Net unrealized appreciation......................................$ 2,012,340
===========
The difference between the Federal income tax cost of portfolio investments and
financial statement cost is due to certain timing differences in the recognition
of capital losses under generally accepted accounting principles and income tax
regulations.
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $204,131,539 and $194,635,139, respectively.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Tattersall Advisory Group, 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% of its
average daily net assets. The Adviser currently intends to limit the total
operating expenses of the Institutional Shares of the Fund to .50% of its
average daily net assets, and to limit the total operating expenses of the
Service Group Shares of the Fund to .65% of its average daily net assets;
accordingly, the Adviser waived $16,111 of its investment advisory fee for the
year ended March 31, 1998. Certain trustees and officers of the Trust are also
officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .075% of its average daily net assets up to $200
million and .05% of such net assets in excess of $200 million, subject to a
$2,000 minimum monthly fee, plus a surcharge of $1,000 per month. In addition,
the Fund pays out-of-pocket expenses including, but not limited to, postage,
supplies and cost of pricing the Fund's portfolio securities. Certain officers
of the Trust are also officers of CFS.
DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan (the Plan) with respect to Service
Group Shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that
the Fund may incur certain costs related to the distribution of Service Group
Shares, not to exceed 0.15% of average daily net assets applicable to Service
Group Shares. For the period ended March 31, 1998, Service Group Shares incurred
$2,672 of distribution expenses under the Plan.
<PAGE>
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 $9,678 for the year ended
March 31, 1998.
<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, 1998, 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, 1998 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, 1998, 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 24, 1998
<PAGE>
<PAGE>
THE JAMESTOWN EQUITY FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Lowe, Brockenbrough & Tattersall, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1998
PERFORMANCE OF THE JAMESTOWN EQUITY FUND
The fiscal year ending March 31, 1998, was a very strong one for The Jamestown
Equity Fund in both absolute results as well as in relative results. For the 12
month period, your fund returned 43.7% after expenses versus 44.4% for the
comparable Lipper Index. The Standard & Poor's 500 Index was up 48% for the same
12 month period.
The sectors outperforming the market were finance, communication services, and
consumer cyclicals in particular, with capital goods, health care, and
technology slightly ahead of the S&P. Those sectors lagging the market were
consumer staples, transportation, utility, energy, and basic industries. Your
fund was well represented in the finance, technology, and consumer staples
sectors. We had underweightings in the communication services, utility, and
transportation sectors.
For the past three years, the Jamestown Equity Fund has appreciated at an
annualized rate of 28.5%, slightly ahead of the Lipper Growth Index of 27.9%.
With the market now selling at lofty price-to-earnings multiples (25x), it is
dangerous to be lulled into a belief that these strong returns will continue
each year. There will be a regression to the mean, but with interest rates and
inflation rates staying low, we are hopeful that this market can continue for at
least a short period. Inflation appears to be very well contained, and the same
can be said for the wage component of the consumer price index.
We will continue to invest in high quality stocks--those with low debt to equity
and strong earnings trends in place. Should we see a market correction in the
near future, we believe it will not be a significant one given the continued
"Goldilocks" fundamentals of the current economy.
For a comparison of the fund's performance since inception versus the
Standard & Poor's 500 Index and the Consumer Price Index, please refer to the
chart below.
<PAGE>
THE JAMESTOWN EQUITY FUND
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
06/30/96 4.49% 17,097 06/30/96 4.05% 15,397
09/30/96 3.09% 17,626 09/30/96 2.74% 15,819
12/31/96 8.34% 19,095 12/31/96 7.83% 17,057
03/31/97 2.68% 19,607 03/31/97 0.00% 17,057
06/30/97 17.46% 23,030 06/30/97 15.33% 19,671
09/30/97 7.49% 24,755 09/30/97 5.99% 20,849
12/31/97 2.87% 25,466 12/31/97 2.70% 21,411
03/31/98 13.95% 29,018 03/31/98 14.51% 24,518
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
06/30/96 1.10% 11,038
09/30/96 0.44% 11,086
12/31/96 0.82% 11,178
03/31/97 0.69% 11,255
06/30/97 0.19% 11,276
09/30/97 0.44% 11,325
12/31/97 0.62% 11,396
03/31/98 0.12% 11,409
The Jamestown Equity Fund Average Total Returns
1 Year 5 Years Since Inception*
43.74% 19.12% 18.31%
*Initial public offering of shares was December 1, 1992.
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 32,982,706
=============
At value (Note 1) $ 48,803,931
Investments in repurchase agreements (Note 1) 3,527,000
Cash 115
Receivable for securities sold 977,601
Receivable for capital shares sold 24,000
Dividends receivable 27,940
Interest receivable 514
Other assets 2,761
-------------
TOTAL ASSETS 53,363,862
-------------
LIABILITIES
Dividends payable 5,194
Distributions payable 118,987
Payable for securities purchased 957,776
Payable for capital shares redeemed 30,600
Accrued advisory fees (Note 3) 28,147
Accrued administration fees (Note 3) 7,950
Other accrued expenses 1,103
-------------
TOTAL LIABILITIES 1,149,757
-------------
NET ASSETS $ 52,214,105
=============
Net assets consist of:
Paid-in capital $ 36,403,344
Distributions in excess of net realized gains (14,486)
Undistributed net investment income 4,022
Net unrealized appreciation on investments 15,821,225
-------------
Net assets $ 52,214,105
=============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) 2,589,737
=============
Net asset value, offering price and redemption
price per share (Note 1) $ 20.16
=============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1998
<CAPTION>
INVESTMENT INCOME
<S> <C>
Dividends $ 451,263
Interest 146,628
------------
TOTAL INVESTMENT INCOME 597,891
------------
EXPENSES
Investment advisory fees (Note 3) 259,757
Administration fees (Note 3) 76,276
Professional fees 9,021
Registration fees 8,115
Custodian fees 6,418
Trustees' fees and expenses 5,405
Postage and supplies 3,864
Insurance expense 2,136
Other expenses 670
------------
TOTAL EXPENSES 371,662
Expenses reimbursed through a directed brokerage arrangement (Note 4) (12,000)
------------
NET EXPENSES 359,662
------------
NET INVESTMENT INCOME 238,229
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 3,855,317
Net change in unrealized appreciation/depreciation on investments 10,606,115
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 14,461,432
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 14,699,661
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 238,229 $ 211,890
Net realized gains from security transactions 3,855,317 777,388
Net change in unrealized appreciation/depreciation
on investments 10,606,115 2,328,613
----------------- ----------------
Net increase in net assets from operations 14,699,661 3,317,891
----------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (242,370) (206,587)
From net realized gains from security transactions (4,379,490) (521,388)
----------------- ----------------
Decrease in net assets from distributions to shareholders (4,621,860) (727,975)
----------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 10,499,561 11,827,742
Net asset value of shares issued in reinvestment
of distributions to shareholders 4,351,536 671,223
Payments for shares redeemed (3,895,041) (1,765,155)
----------------- ----------------
Net increase in net assets from capital share transactions 10,956,056 10,733,810
----------------- ----------------
TOTAL INCREASE IN NET ASSETS 21,033,857 13,323,726
NET ASSETS:
Beginning of year 31,180,248 17,856,522
----------------- ----------------
End of year - (including undistributed net investment
income of $4,022 and $8,163, respectively) $ 52,214,105 $ 31,180,248
================= ================
Capital share activity:
Sold 571,636 788,755
Reinvested 236,191 43,245
Redeemed (209,264) (120,237)
----------------- ----------------
Net increase in shares outstanding 598,563 711,763
Shares outstanding, beginning of year 1,991,174 1,279,411
----------------- ----------------
Shares outstanding, end of year 2,589,737 1,991,174
================= ================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
<CAPTION>
Years ended March 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year $15.66 $13.96 $11.29 $10.19 $10.18
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.11 0.13 0.15 0.10 0.08
Net realized and unrealized gains (losses)
on investments 6.47 2.00 2.98 1.15 (0.01)
------- ------- ------- ------- -------
Total from investment operations 6.58 2.13 3.13 1.25 0.07
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.11) (0.13) (0.15) (0.12) (0.06)
Distributions from net realized gains (1.97) (0.30) (0.31) (0.03) --
------- ------- ------- ------- -------
Total distributions (2.08) (0.43) (0.46) (0.15) (0.06)
------- ------- ------- ------- -------
Net asset value at end of year $20.16 $15.66 $13.96 $11.29 $10.19
======= ======= ======= ======= =======
Total return 43.74% 15.27% 28.00% 12.33% 0.67%
======= ======= ======= ======= =======
Net assets at end of year (000's) $52,214 $31,180 $17,857 $8,111 $2,811
======= ======= ======= ======= =======
Ratio of gross expenses to average net assets 0.93% 0.98% 1.14% 1.99% 3.16%
Ratio of net expenses to average net assets 0.90%(a) 0.92%(a) 1.01%(a) 1.44%(b) 1.50%(b)
Ratio of net investment income to average net assets 0.60% 0.85% 1.27% 1.18% 0.82%
Portfolio turnover rate 59% 44% 54% 48% 92%
Average commission rate per share $0.0686 $0.0688 -- -- --
(a) Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
(b) Ratios were determined based on net expenses after the Adviser waived all
or a portion of its advisory fee and/or reimbursed the Fund for operating
expenses.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 93.5%
Advertising - 1.3%
11,000 Interpublic Group of Companies, Inc. $ 683,375
-------------------
Chemicals - 2.9%
18,400 Air Products & Chemicals, Inc. 1,524,900
-------------------
Commercial Banking - 6.9%
17,000 Fannie Mae 1,075,250
24,000 First Union Corporation 1,362,000
16,000 NationsBank Corporation 1,167,000
-------------------
3,604,250
-------------------
Communications - 8.7%
46,000 Equifax, Inc. 1,679,000
10,000 Lucent Technologies, Inc. 1,278,750
32,000 MCI Communications 1,584,000
-------------------
4,541,750
-------------------
Computers/Computer Technology Services - 12.1%
16,500 Cisco Systems, Inc. (a) 1,128,188
20,000 Computer Sciences Corporation (a) 1,100,000
31,000 Diebold, Inc. 1,364,000
14,800 Intel Corporation 1,155,325
26,000 Sunstrand Corporation 1,573,000
-------------------
6,320,513
-------------------
Consumer Products - 18.2%
22,500 Avon Products, Inc. 1,755,000
12,000 Cendant Corporation (a) 475,500
27,000 Crane Company 1,431,000
17,500 General Electric Company 1,508,281
8,500 Gillette Company 1,008,844
20,000 Kimberly-Clark Corporation 1,002,500
6,000 Procter & Gamble Company 506,250
24,000 Sherwin Williams Company 852,000
36,800 Sysco Corporation 943,000
-------------------
9,482,375
-------------------
Drugs/Medical Equipment - 8.1%
11,500 Abbott Laboratories 866,094
18,000 Lilly (Eli) & Company 1,073,250
7,500 Merck and Company, Inc. 962,812
16,000 Schering-Plough Corporation 1,307,000
-------------------
4,209,156
-------------------
<PAGE>
<CAPTION>
Shares Value
COMMON STOCKS - Continued
<S> <C> <C>
Electronics - 2.2%
18,000 Hewlett-Packard Company $ 1,140,750
-------------------
Entertainment - 1.1%
5,100 Walt Disney Company 544,425
-------------------
Fire Systems - 3.2%
31,000 Tyco International Ltd. 1,693,375
-------------------
Food Productions - 2.3%
37,000 Conagra, Inc. 1,188,625
-------------------
Funeral Services - 2.4%
30,000 Service Corporation International 1,273,125
-------------------
Health Care Centers - 1.5%
28,000 HealthSouth Corporation (a) 785,750
-------------------
Hotels - 2.7%
78,000 Choice Hotel International, Inc. (a) 1,433,250
-------------------
Insurance - 7.2%
7,700 American International Group 969,719
25,100 Conseco, Inc. 1,421,288
15,500 Jefferson-Pilot Corporation 1,378,531
-------------------
3,769,538
-------------------
Oil and Gas Drilling - 7.8%
23,000 Coastal Corporation 1,497,875
19,700 Schlumberger Ltd. 1,492,275
18,000 Texaco, Inc. 1,084,500
-------------------
4,074,650
-------------------
Oil Field Machinery and Equipment - 2.5%
27,000 Dresser Industries, Inc. 1,297,687
-------------------
<PAGE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - Continued
Retail Stores - 2.4%
36,500 AutoZone, Inc. (a) $ 1,236,437
-------------------
Total Common Stocks (Cost $32,982,706) $ 48,803,931
-------------------
<CAPTION>
Face
Amount
REPURCHASE AGREEMENTS (b) - 6.7%
$3,527,000 Star Bank, N.A., 5.25%, dated 03/31/1998, due 04/01/1998,
repurchase proceeds $3,527,514 (Cost $3,527,000) $ 3,527,000
-------------------
Total Investments and Repurchase Agreements
at Value - 100.2% $ 52,330,931
Liabilities in Excess of Other Assets - (0.2)% (116,826)
-------------------
Net Assets - 100.0% $ 52,214,105
===================
(a) Non-income producing security.
(b) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA
II, Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00% due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985. The
Fund's pro-rata interest in the collateral at March 31, 1998 was $3,618,623.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Equity Fund (the Fund) is a no-load, diversified series of the
Williamsburg Investment Trust (the Trust), an open-end management investment
company registered 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 and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income are declared and paid quarterly to
shareholders of the Fund. Net realized short-term capital gains, if any, may be
distributed throughout the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income distributions and capital
gain distributions are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Cost of securities sold is determined 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 income 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 $32,997,876 as of March 31, 1998:
Gross unrealized appreciation......................................$15,903,238
Gross unrealized depreciation..................................... (97,183)
-----------
Net unrealized appreciation........................................$15,806,055
===========
The difference between the Federal income tax cost of portfolio investments and
financial statement cost is due to certain timing differences in the recognition
of capital losses under generally accepted accounting principles and income tax
regulations.
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $27,951,286 and $21,883,675, 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% of its
average daily net assets up to $500 million and .50% of such net assets in
excess of $500 million. Certain trustees and officers of the Trust are also
officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .20% of its average daily net assets up to $25
million; .175% of the next $25 million of such net assets; and .15% of 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,
postage, supplies and costs of pricing the Fund's portfolio securities. Certain
officers of the Trust are also officers of CFS.
<PAGE>
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 $12,000 for the year ended March 31, 1998.
<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, 1998, 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, 1998 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, 1998, 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 24, 1998
<PAGE>
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Lowe, Brockenbrough & Tattersall, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1998
PERFORMANCE OF THE JAMESTOWN INTERNATIONAL EQUITY FUND
The Jamestown International Equity Fund returned 29.7% for the year ended March
31, 1998. This performance compares well with 18.6% for the Morgan Stanley EAFE
Index and 20.2% for the average international fund in the Lipper Index. This
period was characterized by continued strength throughout Europe and weakness in
Japan and the rest of Asia. The Fund was significantly underweighted in Japan
and had very little exposure to the collapse in most of the Asian markets that
began last summer.
Overweight positions in Italy, Spain and France, along with strong stock
selection throughout the region, were of particular benefit. Optimism was
particularly pronounced for these countries as their interest rates converged
toward German levels in preparation for the approaching common currency. The
structural changes that have occurred in Europe over the last two years should
continue to have a positive impact on earnings and returns, and Oechsle will
continue to favor this region until they see signs of structural change
throughout Asia.
In Japan, Oechsle believes that the focus on fiscal spending stimulus by market
participants is misguided. Any stimulus is unlikely to have a sustainable impact
on Japan's economy. Oechsle is focused on deregulation and the potential for
restructuring, both of which would have a more sustained and significant impact
on the long-term health of their economy. To date, policy initiatives for
structural change have been limited. Ultimately, the real question is whether or
not Japan chooses to participate in global trade and capital markets according
to the same rules as the rest of the world.
The Fund's limited emerging market investments continue to be concentrated in
Latin America. Oechsle believes the recovery in the emerging Asian stock markets
during the first quarter of 1998 appears to be a snap back from extremely
depressed levels of late 1997. They believe that the crises in emerging Asian
economies may be reasonably well contained, but not fully resolved. Valuations
are stretched on normalized earnings, and we are unlikely to see normalized
earnings in what remains of this century. Uncertainty remains high, balance
sheets are fragile, and uncooperative neighbors may destabilize the region
further.
ASSET ALLOCATION (As of March 31, 1998)
THE JAMESTOWN
INTERNATIONAL EQUITY MORGAN STANLEY
FUND EAFE INDEX
Continental Europe 55.6% 48.9%
United Kingdom 15.8% 21.8%
Pacific Basin, excluding Japan 6.0% 7.0%
Japan 12.8% 22.3%
Emerging Markets 7.2% 0.0%
Other 2.6% 0.0%
----- -----
Total 100.0% 100.0%
<PAGE>
JAMESTOWN INTERNATIONAL EQUITY FUND
Comparison of the Change in Value of a $10,000 Investment in The Jamestown
International Equity Fund and the Morgan Stanley EAFE Index.
MORGAN STANLEY
EAFE INDEX JAMESTOWN INTL EQUITY FUND
MONTHLY MONTHLY
DATE RETURN BALANCE DATE RETURN BALANCE
04/30/96 10,000 04/30/96 10,000
05/31/96 -1.84% 9,816 05/31/96 -1.30% 9,870
06/30/96 0.56% 9,871 06/30/96 -0.51% 9,820
07/31/96 -2.92% 9,583 07/31/96 -4.49% 9,379
08/31/96 0.22% 9,604 08/31/96 0.00% 9,379
09/30/96 2.66% 9,859 09/30/96 1.71% 9,539
10/31/96 -1.02% 9,759 10/31/96 -0.21% 9,519
11/30/96 3.98% 10,147 11/30/96 3.89% 9,890
12/31/96 -1.29% 10,016 12/31/96 -1.22% 9,770
01/31/97 -3.50% 9,666 01/31/97 -0.41% 9,730
02/28/97 1.64% 9,824 02/28/97 0.52% 9,780
03/31/97 0.36% 9,860 03/31/97 0.72% 9,850
04/30/97 0.53% 9,912 04/30/97 1.43% 9,991
05/31/97 6.51% 10,557 05/31/97 6.43% 10,633
06/30/97 5.51% 11,139 06/30/97 7.27% 11,407
07/31/97 1.62% 11,319 07/31/97 5.03% 11,980
08/31/97 -7.47% 10,474 08/31/97 -8.56% 10,954
09/30/97 5.60% 11,060 09/30/97 8.63% 11,899
10/31/97 -7.68% 10,211 10/31/97 -10.14% 10,692
11/30/97 -1.02% 10,107 11/30/97 -0.09% 10,682
12/31/97 0.87% 10,195 12/31/97 2.82% 10,984
01/31/98 4.57% 10,660 01/31/98 2.21% 11,227
02/28/98 6.42% 11,345 02/28/98 7.74% 12,096
03/31/98 3.08% 11,694 03/31/98 5.60% 12,773
<PAGE>
The Jamestown International Equity Fund Average Annual Total Returns
1 Year Since Inception*
29.67% 13.31%
*Initial public offering of shares was April 16, 1996.
Past performance is not predictive of future performance.
<TABLE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 31,389,272
===============
At value (Note 1) $ 41,360,258
Cash 1,112,213
Cash denominated in foreign currencies (cost $1,152) 1,261
Net unrealized appreciation on forward foreign currency exchange contracts (Note 5) 122,782
Receivable for securities sold 664,035
Receivable for capital shares sold 240,000
Dividends receivable 106,249
Interest receivable 3,367
Other assets 765
---------------
TOTAL ASSETS 43,610,930
---------------
LIABILITIES
Dividends payable 1,623
Payable for securities purchased 997,451
Accrued advisory fees (Note 3) 34,944
Accrued administration fees (Note 3) 8,250
Other accrued expenses 26,018
---------------
TOTAL LIABILITIES 1,068,286
---------------
NET ASSETS $ 42,542,644
===============
Net assets consist of:
Paid-in capital $ 33,848,482
Accumulated net realized losses from security and foreign currency transactions (1,402,684)
Net unrealized appreciation on investments 9,970,986
Net unrealized appreciation on translation of assets and liabilities in foreign currencies 125,860
---------------
Net assets $ 42,542,644
===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) 3,372,542
===============
Net asset value, offering price and redemption price per share (Note 1) $ 12.61
===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS
For the Year Ended March 31, 1998
<CAPTION>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $58,374) $ 472,755
Interest 61,696
-----------
TOTAL INVESTMENT INCOME 534,451
-----------
EXPENSES
Investment advisory fees (Note 3) 355,460
Administration fees (Note 3) 86,293
Custodian fees 60,384
Registration fees 16,446
Pricing costs 10,270
Professional fees 9,996
Trustees' fees and expenses 5,405
Printing of shareholder reports 3,101
Postage and supplies 2,990
Insurance expense 2,058
Other expenses 1,333
-----------
TOTAL EXPENSES 553,736
-----------
NET INVESTMENT LOSS (19,285)
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCIES (Note 4)
Net realized gains (losses) from:
Security transactions (60,926)
Foreign currency transactions 190,757
Net change in unrealized appreciation/depreciation on:
Investments 8,970,013
Foreign currency transactions 126,420
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS
AND FOREIGN CURRENCIES 9,226,264
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 9,206,979
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1998 and 1997
Year Period
Ended Ended
March 31, March 31,
1998 1997(a)
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (19,285) $ (36,671)
Net realized losses from security transactions (60,926) (1,230,188)
Net realized gains from foreign currency transactions 190,757 185,973
Net change in unrealized appreciation/depreciation on investments 8,970,013 1,000,973
Net change in unrealized appreciation/depreciation on translation
of assets and liabilities in foreign currencies 126,420 (560)
-------------- -------------
Net increase (decrease) in net assets from operations 9,206,979 (80,473)
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (325,257) (107,087)
-------------- -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 4,706,633 29,619,931
Net asset value of shares issued in reinvestment
of distributions to shareholders 321,283 105,780
Payments for shares redeemed (657,411) (247,734)
-------------- -------------
Net increase in net assets from capital share transactions 4,370,505 29,477,977
-------------- -------------
TOTAL INCREASE IN NET ASSETS 13,252,227 29,290,417
NET ASSETS:
Beginning of period 29,290,417 0
-------------- -------------
End of period $ 42,542,644 $ 29,290,417
============== =============
Capital share activity:
Sold 418,420 3,000,775
Reinvested 28,068 10,836
Redeemed (60,156) (25,401)
-------------- -------------
Net increase in shares outstanding 386,332 2,986,210
Shares outstanding, beginning of period 2,986,210 0
-------------- -------------
Shares outstanding, end of period 3,372,542 2,986,210
============== =============
(a) Represents the period from the commencement of operations (April 16, 1996)
through March 31, 1997.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout
Each Period
<CAPTION>
Year Period
Ended Ended
March 31, March 31,
1998 1997 (a)
<S> <C> <C>
Net asset value at beginning of period $9.81 $10.00
------- -------
Income from investment operations:
Net investment loss (0.01) (0.01)
Net realized and unrealized gains (losses)
on investments and foreign currencies 2.91 (0.14)
------- -------
Total from investment operations 2.90 (0.15)
------- -------
Less distributions:
From net investment income (0.10) (0.04)
------- -------
Net asset value at end of period $12.61 $9.81
======= =======
Total return 29.67% -1.56%(c)
======= =======
Net assets at end of period (000's) $42,543 $29,290
======= =======
Ratio of net expenses to average net assets (b) 1.56% 1.60%(c)
Ratio of net investment loss to average net assets -0.05% -0.15%(c)
Portfolio turnover rate 47% 70%(c)
Average commission rate per share $0.0294 $0.0258
(a) Represents the period from the commencement of operations (April 16,
1996) through March 31, 1997.
(b) Absent investment advisory fees waived by the Adviser, the ratio of
expenses to average net assets would have been 1.71%(c) for the period ended
March 31, 1997.
(c) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 97.2%
Australia - 3.6%
85,700 Australia and New Zealand Banking Group Ltd. $ 574,008
70,600 Coca-Cola Amatil Ltd. 554,803
61,947 News Corporation Ltd. 409,573
-----------
1,538,384
-----------
Belgium - 0.6%
468 Kredietbank NV 251,488
-----------
Brazil - 1.2%
3,900 Telecomunicacoes Brasileiras SA - Telebras - ADR 506,269
-----------
Canada - 0.4%
13,000 MacMillan Bloedel Ltd. 180,539
-----------
France - 13.8%
4,980 Banque Nationale de Paris 387,022
2,874 Danone 693,951
2,233 Havas SA 184,891
18,357 Renault SA (a) 817,751
7,915 Schneider SA 609,368
8,970 Suez Lyonnaise des Eaux 1,295,764
8,601 Thomson CSF 347,056
6,819 Total SA - Class B 818,849
8,229 Valeo SA 723,859
-----------
5,878,511
-----------
Germany - 5.8%
7,683 Daimler-Benz AG 706,259
1,461 Mannesmann AG 1,069,678
872 Volkswagen AG 682,761
872 Volkswagen AG - Rights 15,843
-----------
2,474,541
-----------
Hong Kong - 1.7%
57,000 Hutchison Whampoa Ltd. 400,939
85,000 New World Development 300,043
-----------
700,982
-----------
India - 1.7%
6,800 Hindalco Industries Ltd. - GDR (a) 120,700
18,600 Reliance Industries Ltd. - GDR 155,310
4,220 Richter Gedeon Rt. - GDR 444,062
-----------
720,072
-----------
<PAGE>
<CAPTION>
Shares Value
COMMON STOCKS - Continued
<S> <C> <C>
Italy - 7.9%
9,100 Banca Popolare di Bergamo Credito Varesino SpA $ 208,172
187,722 Credito Italiano SpA 927,349
116,200 Mediaset SpA 735,305
186,202 Telecom Italia SpA 1,467,351
----------
3,338,177
----------
Japan - 12.7%
24,000 Canon, Inc. 541,728
25,000 Denso Corporation 468,688
500 Isetan Company 4,237
11,000 Ito-Yokado Company Ltd. 595,571
35,000 Mitsui Fudosan Company, Ltd. 333,331
15,000 Murata Manufacturing Company Ltd. 413,945
53 Nippon Telegraph and Telephone Corporation 441,166
44,000 Nomura Securities Company Ltd. 518,031
13 NTT Data Communications Systems Company 578,098
7,000 Rohm Company 640,415
6,500 Sony Corporation 550,802
53,000 Sumitomo Realty & Development 312,393
----------
5,398,405
----------
Mexico - 3.4%
12,300 Grupo Televisa SA 450,488
60,000 Kimberly-Clark de Mexico, SA de CV - Class A 309,939
11,900 Telefonos De Mexico SA - ADR 670,863
----------
1,431,290
----------
Netherlands - 13.0%
13,500 Gucci Group NV - ADR 641,250
12,120 ING Groep NV 687,779
21,479 Konink PTT Nederland NV 1,112,754
13,310 Royal Dutch Petroleum Company 753,393
8,361 Royal Philips Electronics NV 613,636
6,130 Vendex International NV 388,147
39,556 VNU-Verenigde Nederlandse Uitgeversbedrijven
Verenigd Bezit 1,352,892
----------
5,549,851
----------
New Zealand - 0.7%
65,275 Telecom Corporation of New Zealand Ltd. 311,076
----------
Philippines - 0.9%
540,000 Filinvest Land Inc. (a) 59,131
20,160 Metropolitan Bank & Trust Company (a) 186,179
4,333 Philippine Long Distance Telephone Company 120,619
----------
365,929
----------
<PAGE>
<CAPTION>
COMMON STOCKS - Continued
Shares Value
Spain - 6.2%
5,500 Argentaria SA $ 455,384
15,600 Banco Santander SA 776,968
32,007 Telefonica de Espana 1,410,662
-----------
2,643,014
-----------
Sweden - 2.4%
20,660 Hennes and Mauritz AB - Class B 1,038,909
-----------
Switzerland - 5.7%
414 Nestle SA 791,076
581 Novartis AG 1,028,243
56 Roche Holding AG 606,107
-----------
2,425,426
-----------
United Kingdom - 15.5%
27,500 BOC Group PLC 438,640
34,870 British Aerospace PLC 1,147,429
20,768 British Petroleum Company PLC 298,222
61,100 Diageo PLC 717,250
33,900 Glaxo Wellcome PLC 900,355
46,920 Imperial Chemical Industries PLC 831,294
218,070 LucasVarity PLC 873,693
49,484 Somerfield PLC 296,246
105,931 Vodafone Group PLC 1,104,266
-----------
6,607,395
-----------
Total Common Stocks (Cost $31,389,272) - 97.2% $41,360,258
Other Assets in Excess of Liabilities - 2.8% 1,182,386
-----------
Net Assets - 100.0% $42,542,644
===========
(a) Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown International Equity Fund (the Fund) is a no-load, diversified
series of the Williamsburg Investment Trust (the Trust), an open-end management
investment company registered under the Investment Company Act of 1940. The
Trust was organized as a Massachusetts business trust on July 18, 1988. The Fund
began operations on April 16, 1996.
The Fund's investment objective is to achieve superior total returns through
investment in equity securities of issuers located outside the United States.
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 or foreign stock
exchange are valued based upon the closing price on the principal exchange where
the security is traded. Foreign securities are translated from the local
currency into U.S. dollars using currency exchange rates supplied by a quotation
service.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income, if any, 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 dividends and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Cost of securities sold is determined 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 income 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 $31,392,260 as of March 31, 1998:
Gross unrealized appreciation.....................................$ 11,106,522
Gross unrealized depreciation..................................... (1,138,524)
------------
Net unrealized appreciation.......................................$ 9,967,998
============
As of March 31, 1998, the Fund had capital loss carryforwards for federal income
tax purposes of $496,302 which expire on March 31, 2005. In addition, the Fund
had net realized capital losses of $791,824 during the period from November 1,
1997 through March 31, 1998, which are treated for federal income tax purposes
as arising during the Fund's tax year ending March 31, 1999. These capital loss
carryforwards and "post-October" losses may be utilized in future years to
offset net realized capital gains, if any, prior to distributing such gains to
shareholders.
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $19,366,414 and $15,951,225, respectively.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
Lowe, Brockenbrough & Tattersall, Inc. (the Adviser), under the terms of an
Investment Advisory Agreement, provides general investment supervisory services
to the Fund. 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 1.00% of its average daily net assets. Certain trustees and officers of the
Trust are also officers of the Adviser.
The Adviser retains Oechsle International Advisors, Inc. (Oechsle) to provide
the Fund with a continuous program of supervision of the Fund's assets,
including the composition of its portfolio, and to furnish advice and
recommendations with respect to investments, investment policies and the
purchase and sale of securities, pursuant to the terms of a Sub-Advisory
Agreement. Under the Sub-Advisory Agreement, the Adviser, not the Fund, pays
Oechsle a fee in the amount of one-half of the monthly advisory fee received by
the Adviser, net of any investment advisory fee waivers.
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
Countrywide Fund Services, Inc. (CFS), CFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .25% of its average daily net assets up to $25
million; .225% of the next $25 million of such net assets; and .20% of such net
assets in excess of $50 million, subject to a $4,000 minimum monthly fee. In
addition, the Fund pays out-of-pocket expenses including, but not limited to,
postage, supplies and cost of pricing the Fund's portfolio securities. Certain
officers of the Trust are also officers of CFS.
4. FOREIGN CURRENCY TRANSLATION
Amounts denominated in or expected to settle in foreign currencies are
translated into U.S. dollars based on exchange rates on the following basis:
A. The market values of investment securities and other assets and
liabilities are translated at the closing rate of exchange each day.
B. Purchases and sales of investment securities and income and expenses
are translated at the rate of exchange prevailing on the respective dates of
such transactions.
C. The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from those
resulting from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gains or losses on
investments.
Reported net realized foreign exchange gains or losses arise from 1) sales of
foreign currencies, 2) currency gains or losses realized between the trade and
settlement dates on securities transactions and 3) the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received or
paid. Reported net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities, other than investment
securities, resulting from changes in exchange rates.
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Fund enters into forward foreign currency exchange contracts as a way of
managing foreign exchange rate risk. The Fund may enter into these contracts for
the purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific transactions or portfolio
positions. The objective of the Fund's foreign currency hedging transactions is
to reduce risk that the U.S. dollar value of the Fund's securities denominated
in foreign currency will decline in value due to changes in foreign currency
exchange rates. All foreign currency exchange contracts are "marked-to-market"
daily at the applicable translation rates resulting in unrealized gains or
losses. Realized and unrealized gains or losses are included in the Fund's
Statement of Assets and Liabilities and Statement of Operations. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
<PAGE>
<TABLE>
At March 31, 1998, the Fund had forward foreign currency exchange contracts
outstanding as follows:
<CAPTION>
Net
Unrealized
Delivery To Receive Initial Market Appreciation
Date (To Deliver) Value Value (Depreciation)
<S> <C> <C> <C> <C>
CONTRACTS TO SELL
04/01/98 (21,183) AUD $ (14,256) $ (14,048) $ 208
=============
04/02/98 (55,126) AUD (37,100) (36,557) 543
=============
04/03/98 (38,695) AUD (26,022) (25,656) 366
=============
04/07/98 (12,552) AUD (8,306) (8,320) (14)
=============
04/02/98 (179,500) GBP (302,637) (300,591) 2,046
=============
04/03/98 (76,353) GBP (128,387) (127,861) 526
=============
04/06/98 (6,209) GBP (10,412) (10,397) 15
=============
04/01/98 (5,371,337) JPY (41,606) (40,280) 1,326
=============
05/27/98 (379,000,000) JPY (2,998,655) (2,872,107) 126,548
=============
07/01/98 (549,000) NZD (300,704) (300,110) 594
============= ------------ ----------- --------
TOTAL SELL CONTRACTS (3,868,085) (3,735,927) 132,158
------------ ----------- --------
CONTRACTS TO BUY
04/15/98 6,357,116 BEF 168,260 166,747 (1,513)
=============
04/30/98 1,574,043 FRF 258,131 254,761 (3,370)
=============
04/07/98 120,838 GBP 202,295 202,358 63
=============
04/01/98 84,868 NZD 47,781 46,920 (861)
=============
04/02/98 144,806 NZD 81,815 80,057 (1,758)
=============
04/03/98 179,257 NZD 100,922 99,048 (1,874)
=============
04/07/98 40,131 NZD 22,221 22,158 (63)
============= ------------ ----------- --------
TOTAL BUY CONTRACTS 881,425 872,049 (9,376)
------------ ----------- --------
NET CONTRACTS $(2,986,660) $(2,863,878) $122,782
============ =========== ========
AUD - Australian Dollar
BEF - Belgian Franc
FRF - French Franc
GBP - British Pound Sterling
JPY - Japanese Yen
NZD - New Zealand Dollar
</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 statement of assets and liabilities of
The Jamestown International Equity Fund (a series of The Williamsburg Investment
Trust), including the portfolio of investments, as of March 31, 1998, and the
related statement of operations for the year then ended, and the statement of
changes in net assets and financial highlights for the year then ended and the
period April 16, 1996 (commencement of operations) to March 31, 1997. 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, 1998 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 International Equity Fund as of March 31, 1998, the
results of its operations for the year then ended, the changes in its net assets
and the financial highlights for the periods referred to above, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 24, 1998
<PAGE>
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Tattersall Advisory Group, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
MANAGEMENT AND DISCUSSION AND ANALYSIS
March 31, 1998
PERFORMANCE OF THE JAMESTOWN SHORT TERM BOND FUND
FISCAL YEAR ENDED MARCH 31, 1998
There is something about the beginning of a year that encourages thoughts of a
slowdown. It could be that after the normal Christmas retail frenzy, consumers
are expected to be "spent out." Or it could be that during the inclement weather
of the winter months, consumers are supposed to stay at home. Not only did they
not stay at home, but they were out buying homes! During the so-called slow
months, housing activity soared in response to the unbeatable combination of
unusually mild weather and low interest rates. Consumer and business spending
more than offset the Asian-induced weakness from the trade sector so that the
economy is on track to turn in a 1st quarter performance that will most likely
exceed the 3% level. Activity in Europe was also brisk, with inflation as
elusive there as it is in the U.S. Interest rates fell for all G-7 countries
with rates in Japan and the U.S. falling the least. With short term interest
rates falling slightly for the quarter of 1998, the bond market's performance
was dominated by coupon return. The Jamestown Short Term Bond Fund provided a
return of 5.76% for the fiscal year ended March 31, 1998. The 3-Month Treasury
Bill Index returned 5.35%, while the Merrill Lynch 1-3 Year Treasury Index
returned 7.51% for the same period.
With no clear trend in the direction of rates, duration strategy for us or for
any manager was a non-event as sectors saw all of the action. Battered by huge
new issuance and Asian credit concerns, corporates started the year with
historically attractive yield spreads versus Treasuries, reached a peak in late
January, before narrowing again with the help of decent earnings reports and a
strong stock market. Our strategy was to be overweighted in shorter liquid
securities as well as corporates and mortgages. The latter sector was initially
hurt by the acceleration in prepayment speeds, an event for which we had
prepared the portfolio, but began to outperform as low interest rate volatility
helped to calm investors' concerns. The asset-backed market outperformed
Treasuries, which was quite an accomplishment considering the huge amount of new
issues the market was forced to digest during the quarter.
<PAGE>
LOOKING AHEAD
We expect the market to establish a trend before this year ends, and that trend
will most likely be to lower rates. Between now and then, however, the market
will stay on edge purely from inflation worries associated with a strong
economy. The Federal Reserve should remain firmly on hold. The risk to bond
holders is that domestic demand remains too strong and the effect of the Asian
slowdown too weak for the Federal Reserve to pursue price stability with
unchanged interest rates. The latest unemployment report should help to mitigate
this risk, and we expect to extend durations if more weakness materializes.
As opposed to this time last year when we were frustrated by the lack of
opportunity in sectors, we are energized by what we see this year. We start the
second quarter very liquid, with a moderate weighting in corporates. We will
watch carefully the trend of corporate earnings, realizing that the stock
market, and thus, corporate spreads are vulnerable to negative surprises. We are
currently looking to add to our mortgage position with an emphasis on those
securities that are protected from prepayments. This strategy has worked well
since the end of last year, and we expect it to continue to work well with call
protection priced as cheaply as it is. Asset-backed securities provide another
cheap source of prepayment protection and we plan to remain overweighted in this
sector as well. Finally, we expect closed-end funds to continue to provide a
steady source of outperformance as prices converge to net asset values.
Although interest rates are essentially unchanged so far this year, there
certainly have been opportunities to outperform the bond market. We not only
expect these opportunities to continue, but we intend to fully participate in
all of them.
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
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
06/30/96 1.01% 12,696 06/30/96 0.77% 12,399
09/30/96 1.65% 12,906 09/30/96 1.56% 12,592
12/31/96 1.90% 13,151 12/31/96 1.56% 12,788
03/31/97 0.66% 13,239 03/31/97 1.04% 12,920
06/30/97 2.20% 13,530 06/30/97 1.56% 13,122
09/30/97 1.96% 13,795 09/30/97 1.46% 13,313
12/31/97 1.68% 14,027 12/31/97 1.35% 13,493
03/31/98 1.47% 14,233 03/31/98 1.27% 13,665
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
06/30/96 1.10% 11,316 06/30/96 1.29% 12,105
09/30/96 0.44% 11,366 09/30/96 1.38% 12,273
12/31/96 0.82% 11,460 12/31/96 1.30% 12,433
03/31/97 0.69% 11,539 03/31/97 1.28% 12,591
06/30/97 0.19% 11,561 06/30/97 1.36% 12,763
09/30/97 0.44% 11,611 09/30/97 1.34% 12,934
12/31/97 0.62% 11,683 12/31/97 1.25% 13,096
03/31/98 0.12% 11,697 03/31/98 1.30% 13,266
The Jamestown Short Term Bond Fund Average Annual Total Returns
1 Year 5 Years Since Inception*
5.76% 5.08% 5.16%
*Initial public offering of shares was January 21, 1992.
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 8,930,770
============
At value (Note 1) $ 8,927,938
Investments in repurchase agreements (Note 1) 1,224,000
Cash 799
Principal paydowns receivable 6,681
Interest receivable 51,519
Due from Adviser (Note 3) 4,206
Other assets 251
------------
TOTAL ASSETS 10,215,394
------------
LIABILITIES
Accrued administration fees (Note 3) 2,000
Other accrued expenses 1,530
------------
TOTAL LIABILITIES 3,530
------------
NET ASSETS $ 10,211,864
============
Net assets consist of:
Paid-in capital $ 10,805,414
Accumulated net realized losses from security transactions (592,016)
Undistributed net investment income 1,298
Net unrealized depreciation on investments (2,832)
------------
Net assets $ 10,211,864
============
Shares of beneficial interest outstanding
(unlimited number of shares
authorized, no par value) 1,062,311
============
Net asset value, offering price and redemption price
per share (Note 1) $ 9.61
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1998
<CAPTION>
<S> <C>
INVESTMENT INCOME
Interest $ 616,998
---------
EXPENSES
Investment advisory fees (Note 3) 37,708
Administration fees (Note 3) 24,000
Professional fees 12,496
Trustees' fees and expenses 5,405
Pricing costs 4,809
Custodian fees 3,600
Postage and supplies 2,080
Printing of shareholder reports 1,859
Registration fees 1,464
Other expenses 1,474
---------
TOTAL EXPENSES 94,895
Fees waived and expenses reimbursed by the Adviser (Note 3) (44,617)
---------
NET EXPENSES 50,278
---------
NET INVESTMENT INCOME 566,720
---------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions (45,768)
Net change in unrealized appreciation/depreciation on investments 48,104
---------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,336
---------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 569,056
=========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 566,720 $ 581,834
Net realized losses from security transactions (45,768) (101,843)
Net change in unrealized appreciation/depreciation
on investments 48,104 (3,365)
------------- ------------
Net increase in net assets from operations 569,056 476,626
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (568,054) (582,861)
------------- ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 2,162,478 2,203,737
Net asset value of shares issued in reinvestment
of distributions to shareholders 568,054 582,861
Payments for shares redeemed (2,444,148) (2,181,641)
------------- ------------
Net increase in net assets from capital share transactions 286,384 604,957
------------- ------------
TOTAL INCREASE IN NET ASSETS 287,386 498,722
NET ASSETS:
Beginning of year 9,924,478 9,425,756
------------- ------------
End of year - (including undistributed net investment
income of $1,298 and $2,632, respectively) $ 10,211,864 $ 9,924,478
============= ============
Capital share activity:
Sold 223,127 226,810
Reinvested 59,049 60,494
Redeemed (252,774) (224,329)
------------- ------------
Net increase in shares outstanding 29,402 62,975
Shares outstanding, beginning of year 1,032,909 969,934
------------- ------------
Shares outstanding, end of year 1,062,311 1,032,909
============= ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
<CAPTION>
Years Ended March 31,
<S> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994
Net asset value at beginning of year $9.61 $9.72 $9.64 $9.82 $10.07
------- ------ ------ ------- -------
Income from investment operations:
Net investment income 0.54 0.58 0.62 0.60 0.51
Net realized and unrealized gains (losses)
on investments 0.00 (0.11) 0.08 (0.17) (0.23)
------- ------ ------ ------- -------
Total from investment operations 0.54 0.47 0.70 0.43 0.28
------- ------ ------ ------- -------
Less distributions:
Dividends from net investment income (0.54) (0.58) (0.62) (0.61) (0.51)
Distributions from net realized gains -- -- -- -- (0.02)
------- ------ ------ ------- -------
Total distributions (0.54) (0.58) (0.62) (0.61) (0.53)
------- ------ ------ ------- -------
Net asset value at end of year $9.61 $9.61 $9.72 $9.64 $9.82
======= ====== ====== ======= =======
Total return 5.76% 5.01% 7.38% 4.53% 2.76%
======= ====== ====== ======= =======
Net assets at end of year (000's) $10,212 $9,924 $9,426 $14,122 $18,715
======= ====== ====== ======= =======
Ratio of net expenses to average net assets (a) 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets 5.64% 5.96% 6.27% 6.04% 5.22%
Portfolio turnover rate 109% 62% 157% 144% 324%
(a) Absent investment advisory fees waived and expenses reimbursed by the
Adviser, the ratios of expenses to average net assets would have been 0.95%,
0.94%, 0.85%, 0.85%, and 0.81% for the years ended March 31, 1998, 1997, 1996,
1995, and 1994, respectively (Note 3).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN SHORT TERM BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
Par Value Value
<S> <C> <C>
COMMERCIAL PAPER - 39.8%
$ 400,000 American Express Company, due 06/30/1998 $ 394,550
400,000 American General, due 07/07/1998 394,072
400,000 E. I. DuPont de Nemours & Company, due 08/13/1998 391,952
425,000 Household Finance, due 05/14/1998 422,269
400,000 John Deere Capital Corporation, due 06/24/1998 394,904
400,000 Merrill Lynch, due 07/30/1998 392,707
400,000 Procter & Gamble Company, due 04/09/1998 399,500
425,000 Prudential Funding Corporation, due 04/17/1998 423,950
425,000 Stanley Works Corporation, due 05/15/1998 422,179
425,000 Walt Disney Company, due 04/29/1998 423,235
---------------
Total Commercial Paper (Cost $4,059,318) $ 4,059,318
---------------
U.S. TREASURY AND AGENCY OBLIGATIONS - 6.4%
U.S. Treasury Notes - 0.6%
$ 50,000 5.125%, due 04/30/1998 $ 49,985
10,000 6.50%, due 05/31/2001 10,242
---------------
60,227
---------------
U.S. Treasury Inflation-Protection Notes - 1.9%
200,000 3.625%, due 07/15/2002 199,785
---------------
Federal National Mortgage Association - 3.9%
400,000 due 04/22/1998 398,704
---------------
Total U.S. Treasury and Agency Obligations (Cost $659,303) $ 658,716
---------------
MORTGAGE-BACKED SECURITIES - 16.9%
Federal Home Loan Mortgage Corporation - 1.3%
$ 100,024 Pool #1272-D, 7.50%, due 11/15/2005 $ 100,805
36,975 Pool #162-E, 7.00%, due 02/15/2020 36,905
---------------
137,710
---------------
Federal National Mortgage Association - 3.5%
141,909 Pool #124029, 8.00%, due 12/01/2002 144,256
210,000 Series #94-13-PE, 5.8%, due 12/25/2006 208,688
---------------
352,944
---------------
Government National Mortgage Association - 2.3%
231,221 Pool #8484, 7.00%, adjustable rate, due 08/20/2024 237,038
---------------
Student Loan Marketing Association - 4.3%
438,453 Series #97-2-A1, 5.704%, adjustable rate, due 10/25/2005 437,083
---------------
<PAGE>
<CAPTION>
Par Value Value
<S> <C> <C>
MORTGAGE-BACKED SECURITIES - Continued
Other Mortgage-Backed Securities - 5.5%
Lehman Brothers Mortgage Trust #91-2-A1,
$ 241,512 8.00%, due 03/20/1999 $ 243,399
GE Capital Mortgage Services, Inc. #93-4A-A1,
88,720 6.45%, adjustable rate, due 03/25/2023 88,914
GE Capital Mortgage Services, Inc. #94-2-A4,
230,000 6.00%, due 01/25/2009 228,850
---------------
561,163
---------------
Total Mortgage-Backed Securities (Cost $1,724,470) $ 1,725,938
---------------
ASSET-BACKED SECURITIES - 6.9%
CIT RV Trust #96-A-A1,
$ 229,289 5.40%, due 12/15/2011 $ 227,068
Fleetwood Credit Corp. Grantor Trust #97-B-A,
237,075 6.40%, due 05/15/2013 237,815
Premier Auto Trust #95-1-A6,
238,346 8.05%, due 04/04/2000 240,281
---------------
Total Asset-Backed Securities (Cost $705,679) $ 705,164
---------------
CORPORATE BONDS - 17.4%
Caterpillar Financial, Inc.,
$ 400,000 5.81%, due 07/05/2000 $ 398,964
Enron Corporation,
290,000 6.45%, due 11/15/2001 291,119
International Bank Reconstruction and Development,
265,000 5.10%, due 09/15/1999 262,627
International Lease Finance Medium Term Notes,
245,000 6.55%, due 09/15/2000 247,600
Norwest Financial Corporation,
400,000 6.05%, due 11/19/1999 401,012
Xerox Corporation Medium Term Notes,
175,000 7.13%, due 04/30/1999 177,480
---------------
Total Corporate Bonds (Cost $1,782,000) $ 1,778,802
---------------
Total Investments at Value (Cost $8,930,770) - 87.4% $ 8,927,938
---------------
<PAGE>
<CAPTION>
Face
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS (a) - 12.0%
$ 1,224,000 Star Bank, N.A., 5.25%, dated 03/31/1998, due 04/01/1998
repurchase proceeds $1,224,179 (Cost $1,224,000) $ 1,224,000
---------------
Total Investments and Repurchase Agreements
at Value - 99.4% $ 10,151,938
Other Assets in Excess of Liabilities - 0.6% 59,926
---------------
Net Assets - 100.0% $ 10,211,864
===============
(a) Joint repurchase agreement is fully collaterized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/2024, $14,335,000 GNMA II; Pool #8932 , 7.00%, due
03/20/2022; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/2024. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985. The
Fund's pro-rata interest in the collateral at March 31, 1998 was $1,244,806.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN SHORT TERM BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Short Term Bond Fund (the Fund) is a no-load, diversified series
of the Williamsburg Investment Trust (the Trust), an open-end management
investment company registered 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 and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with income tax regulations. Dividends arising from net investment
income are declared and paid quarterly to shareholders of the Fund. Net realized
short-term capital gains, if any, may be distributed throughout the year and net
realized long-term capital gains, if any, are distributed at least once each
year. Income distributions and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Cost of securities sold is determined on a specific identification basis.
<PAGE>
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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In 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 $8,930,770 as of March 31, 1998:
Gross unrealized appreciation.......................................$ 12,111
Gross unrealized depreciation....................................... (14,943)
--------
Net unrealized depreciation.........................................$ (2,832)
=========
The difference between the Federal income tax cost of portfolio investments and
financial statement cost is due to certain timing differences in the recognition
of capital losses under generally accepted accounting principles and income tax
regulations. As if March 31, 1998, the Fund had capital loss carryforwards for
federal income tax purposes of $586,098 which expire on March 31, 2005. In
addition, the Fund had net realized capital losses of $5,918 during the period
from November 1, 1997 through March 31, 1998, which are treated for federal
income tax purposes as arising during the Fund's tax year ending March 31, 1999.
These capital loss carryforwards and "post-October" losses may be utilized in
the current and future years to offset net realized capital gains prior to
distributing such gains to shareholders.
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $4,987,978 and $6,352,933, respectively.
<PAGE>
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Tattersall Advisory Group, 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% of its
average daily net assets. The Adviser currently intends to limit the total
operating expenses of the Fund to .50% of its average daily net assets;
accordingly, the Adviser waived its entire investment advisory fee of $37,708
and reimbursed the Fund for $6,909 of other operating expenses for the year
ended March 31, 1998. Certain trustees and officers of the Trust are also
officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .075% of its average daily net assets up to $200
million and .05% of 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, postage, supplies and cost of pricing the Fund's
portfolio securities. Certain officers of the Trust are also officers of CFS.
<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, 1998, 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, 1998 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 Short Term Bond Fund as of March 31, 1998, 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 24, 1998
<PAGE>
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
No Load Mutual Fund
Annual Report
March 31, 1998
Investment Adviser
Lowe, Brockenbrough & Tattersall, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
1.804.288.0404
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1.800.443.4249
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
MANAGEMENT DISCUSSION AND ANALYSIS
March 31, 1998
PERFORMANCE OF THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
For the fiscal year ended March 31, 1998, The Jamestown Tax Exempt Virginia Fund
had a total return of 8.01% after operating expenses. The Lipper Intermediate
Municipal Bond Index advanced 8.03% during this same period. Some key
characteristics of the fund are as follows:
- ---------------------------------------------- --------------------
Average Effective Maturity/Duration 8.2 yrs/6.1 yrs
- ---------------------------------------------- --------------------
- ---------------------------------------------- --------------------
Average Weighted Coupon 5.7%
- ---------------------------------------------- --------------------
- ---------------------------------------------- --------------------
SEC Yield 4.2%
- ---------------------------------------------- --------------------
- ---------------------------------------------- --------------------
Average Credit Quality AA+
- ---------------------------------------------- --------------------
During the first three months of this year, the municipal bond market
experienced a massive avalanche of new issue supply, with total volume up 70%
from 1997 levels. This increase in issuance has prevented municipal yields from
falling as sharply as taxable yields over the past year. Also, the municipal
yield curve maintains a decent shape, where the difference in yield between
2-year insured bonds and 17-year insured bonds is roughly 120 basis points.
Beyond long intermediates, however, the reward associated with additional length
is quite modest, since 30-year insured bonds yield only about 13 basis points
more than 17-year paper. By comparison the taxable yield curve is extremely
flat, with 30-year Treasuries yielding only 40 basis points more than 2-year
paper. Therefore, municipals are very attractive on a relative yield basis to
taxable bonds, and we find the most value in 10-15 year, AAA, insured municipal
bonds.
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
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
06/30/96 0.76% 11,372 06/30/96 0.63% 11,110
09/30/96 2.29% 11,633 09/30/96 1.65% 11,293
12/31/96 2.55% 11,929 12/31/96 2.15% 11,536
03/31/97 -0.24% 11,901 03/31/97 -0.10% 11,525
06/30/97 3.44% 12,310 06/30/97 2.69% 11,835
09/30/97 3.02% 12,682 09/30/97 2.12% 12,086
12/31/97 2.71% 13,026 12/31/97 2.20% 12,352
03/31/98 1.15% 13,175 03/31/98 0.78% 12,448
LIPPER INTERMEDIATE MUNICIPAL FUND INDEX
QTRLY
DATE RETURN BALANCE
09/01/93 10,000
09/30/93 1.14% 10,114
12/31/93 1.18% 10,233
03/31/94 -3.89% 9,835
06/30/94 0.92% 9,926
09/30/94 0.59% 9,984
12/31/94 -3.54% 9,631
03/31/95 4.94% 10,107
06/30/95 1.66% 10,274
09/30/95 2.26% 10,507
12/31/95 2.58% 10,778
03/31/96 -0.66% 10,707
06/30/96 0.49% 10,759
09/30/96 1.63% 10,934
12/31/96 2.09% 11,163
03/31/97 -0.09% 11,153
06/30/97 2.57% 11,439
09/30/97 2.36% 11,709
12/31/97 2.07% 11,952
03/31/98 0.89% 12,058
The Jamestown Tax Exempt Virginia Fund Average Annual Total Returns
1 Year Since Inception*
8.00% 4.89%
*Initial public offering of shares was September 1, 1993.
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
<S> <C>
ASSETS
Investments in securities:
At acquisition cost $ 17,429,901
============
At value (Note 1) $ 18,012,103
Interest receivable 240,742
Other assets 290
------------
TOTAL ASSETS 18,253,135
------------
LIABILITIES
Dividends payable 28,883
Payable for capital shares redeemed 419
Accrued advisory fees (Note 3) 5,195
Accrued administration fees (Note 3) 2,280
Other accrued expenses 3,630
------------
TOTAL LIABILITIES 40,407
------------
NET ASSETS $ 18,212,728
============
Net assets consist of:
Paid-in capital $ 17,629,744
Accumulated net realized gains from
security transactions 782
Net unrealized appreciation on investments 582,202
------------
Net assets $ 18,212,728
============
Shares of beneficial interest outstanding
(unlimited number of shares
authorized, no par value) 1,793,260
============
Net asset value, offering price and redemption
price per share (Note 1) $ 10.16
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENT OF OPERATIONS
Year Ended March 31, 1998
<CAPTION>
<S> <C>
INVESTMENT INCOME
Interest $ 788,716
-----------
EXPENSES
Investment advisory fees (Note 3) 61,250
Administration fees (Note 3) 25,157
Professional fees 8,996
Pricing costs 5,831
Trustees' fees and expenses 5,405
Custodian fees 3,600
Printing of shareholder reports 2,912
Registration fees 2,733
Postage and supplies 2,338
Other expenses 1,561
-----------
TOTAL EXPENSES 119,783
Fees waived by the Adviser (Note 3) (4,939)
-----------
NET EXPENSES 114,844
-----------
NET INVESTMENT INCOME 673,872
-----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 57,902
Net change in unrealized appreciation/depreciation on investments 399,917
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 457,819
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,131,691
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<CAPTION>
Year Year
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 673,872 $ 468,504
Net realized gains from security transactions 57,902 16,747
Net change in unrealized appreciation/depreciation
on investments 399,917 (32,780)
------------ ------------
Net increase in net assets from operations 1,131,691 452,471
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (673,872) (468,504)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 8,481,218 3,430,016
Net asset value of shares issued in reinvestment
of distributions to shareholders 360,594 251,004
Payments for shares redeemed (2,284,029) (1,247,016)
------------ ------------
Net increase in net assets from capital share transactions 6,557,783 2,434,004
------------ ------------
TOTAL INCREASE IN NET ASSETS 7,015,602 2,417,971
NET ASSETS:
Beginning of year 11,197,126 8,779,155
------------ ------------
End of year $ 18,212,728 $ 11,197,126
============ ============
Capital share activity:
Sold 843,460 349,394
Reinvested 35,724 25,420
Redeemed (225,366) (126,290)
------------ ------------
Net increase in shares outstanding 653,818 248,524
Shares outstanding, beginning of year 1,139,442 890,918
------------ ------------
Shares outstanding, end of year 1,793,260 1,139,442
============ ============
See accompanying notes to financial statements.
</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>
Period
Years ended March 31, Ended
March 31,
1998 1997 1996 1995 1994 (a)
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $9.83 $9.85 $9.68 $9.61 $10.00
------- ------- ------ ------ -------
Income from investment operations:
Net investment income 0.44 0.45 0.45 0.44 0.23
Net realized and unrealized gains (losses) on investments 0.33 (0.02) 0.17 0.07 (0.39)
------- ------- ------ ------ -------
Total from investment operations 0.77 0.43 0.62 0.51 (0.16)
------- ------- ------ ------ -------
Less distributions:
Dividends from net investment income (0.44) (0.45) (0.45) (0.44) (0.23)
------- ------- ------ ------ -------
Net asset value at end of period $10.16 $9.83 $9.85 $9.68 $9.61
======= ======= ====== ====== =======
Total return 8.00% 4.39% 6.51% 5.47% (2.96)%(c)
======= ======= ====== ====== =======
Net assets at end of period (000's) $18,213 $11,197 $8,779 $7,712 $2,056
======= ======= ====== ====== =======
Ratio of net expenses to average net assets (b) 0.75% 0.75% 0.75% 0.75% 0.75%(c)
Ratio of net investment income to average net assets 4.40% 4.51% 4.57% 4.64% 4.07%(c)
Portfolio turnover rate 33% 24% 14% 97% 33%
(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 0.78%,
0.88%, 1.04%, 1.62% and 4.83%(c) for the periods ended March 31, 1998, 1997,
1996, 1995 and 1994, respectively (Note 3).
(c) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
Par
Amount Value
VIRGINIA FIXED RATE REVENUE AND GENERAL
OBLIGATION (GO) BONDS - 98.1%
<S> <C> <C>
Arlington Co., Virginia, GO,
$700,000 5.60%, due 08/01/2006 $ 759,409
------------
Augusta Co., Virginia, Industrial Dev. Authority, Hospital, Revenue,
500,000 7.00%, due 09/01/2021, prerefunded 09/01/2001 552,780
------------
Brunswick Co., Virginia, Industrial Dev. Authority, Revenue,
300,000 5.45%, due 07/01/2006 320,718
------------
Chesterfield Co., Virginia, GO,
350,000 6.25%, due 07/15/2005 378,581
------------
Fairfax Co., Virginia, GO,
350,000 5.60%, due 05/01/2003 361,004
------------
Fairfax Co., Virginia, Park Authority, Revenue,
300,000 6.25%, due 07/15/2005 326,514
------------
Fairfax Co., Virginia, Sewer, Revenue,
350,000 5.625%, due 07/15/2008 381,297
------------
Hanover Co., Virginia, Industrial Dev. Authority, Revenue,
225,000 6.25%, due 10/01/2011 241,472
------------
Henrico Co., Virginia, GO,
500,000 4.70%, due 01/15/2002 511,460
------------
James City Co., Virginia, GO,
500,000 5.25%, due 12/15/2015 506,410
------------
Loudoun Co., Virginia, GO,
300,000 5.50%, due 06/01/2009 321,204
------------
Lynchburg, Virginia, GO,
500,000 5.30%, due 05/01/2014 512,065
------------
Newport News, Virginia, GO,
400,000 5.40%, due 07/01/2002 409,048
------------
Norfolk, Virginia, GO,
300,000 5.75%, due 06/01/2011 320,718
------------
Norfolk, Virginia, Industrial Dev. Authority, Hospital, Revenue,
350,000 6.80%, due 06/01/2005 398,958
------------
<PAGE>
<CAPTION>
Par
Amount Value
Virginia - Continued
<S> <C> <C>
Petersburg, Virginia, GO,
$500,000 5.125%, due 01/15/2013 $ 505,580
------------
Peumansend Creek, Virginia, Regional Jail Authority, Revenue,
300,000 5.75%, due 06/01/2017 319,407
------------
Pittsylvania Co., Virginia, GO,
300,000 5.65%, due 07/01/2006 323,646
------------
Portsmouth, Virginia, GO,
800,000 5.00%, due 08/01/2017 785,360
------------
Prince William Co., Virginia, GO,
400,000 4.90%, due 08/01/2005 413,664
------------
Prince William Co., Virginia, Park Authority, Revenue,
250,000 6.10%, due 10/15/2004 273,175
------------
Prince William Co., Virginia, Service Auth. Water & Sewer, Revenue,
150,000 6.40%, due 07/01/2004, prerefunded 07/01/2001 163,063
500,000 5.00%, due 07/01/2003 517,685
------------
680,748
------------
Richmond, Virginia, GO,
400,000 6.25%, due 01/15/2018 426,276
------------
Richmond, Virginia, Metropolitan Authority, Expressway, Revenue,
500,000 6.05%, due 07/15/2005 542,230
------------
Richmond, Virginia, Public Utility, Revenue,
150,000 7.10%, due 01/15/2000, prerefunded 05/15/1998 153,365
------------
Riverside, Virginia, Regional Jail Authority, Revenue,
300,000 5.30%, due 07/01/2002 313,533
------------
Roanoke, Virginia, GO,
300,000 6.40%, due 08/01/2012 328,281
------------
Roanoke Co., Virginia, Water System, Revenue,
400,000 6.00%, due 07/01/2031, prerefunded 07/01/2001 423,000
------------
Spotsylvania Co., Virginia, GO,
400,000 5.75%, due 07/15/2011 425,076
------------
<PAGE>
<CAPTION>
Par
Amount Value
Virginia - Continued
Suffolk, Virginia, GO,
$350,000 5.80%, due 06/01/2011 $ 379,162
------------
Upper Occoquan, Virginia, Sewer Authority, Revenue,
700,000 5.00% due 07/01/2015 692,769
------------
Virginia Beach, Virginia, GO,
325,000 6.20%, due 09/01/2013 364,045
------------
Virginia College Building Authority, Educational Facilities, Revenue,
500,000 5.00%, due 09/01/2014 496,110
------------
Virginia Commonwealth University, Revenue,
250,000 5.75%, due 05/01/2006 271,853
------------
Virginia State, GO,
500,000 5.375%, due 06/01/2015 514,095
------------
Virginia State Housing Dev. Authority, Commonwealth Mortgages, Revenue,
150,000 5.60%, due 01/01/2002 155,112
------------
Virginia State Housing Dev. Authority, Multi Family, Revenue,
150,000 6.60%, due 11/01/2012 163,483
150,000 6.30%, due 11/01/2015 159,362
------------
322,845
------------
Virginia State Public Building Authority, Revenue,
500,000 6.00%, due 08/01/2003 532,205
------------
Virginia State Public School Authority, Revenue,
250,000 5.90%, due 08/01/2006 268,360
------------
Virginia State Resource Authority, Solid Waste Disposal System, Revenue,
500,000 5.50%, due 04/01/2015 512,115
------------
Virginia State Transportation Board, Revenue,
350,000 6.25%, due 05/15/2012, prerefunded 05/15/2004 384,118
------------
Winchester, Virginia, Ind. Dev. Authority, Educational Facilities, Revenue,
500,000 5.00% due 10/01/2018 487,485
------------
<PAGE>
<CAPTION>
Par
Amount Value
<S> <C> <C>
Virginia - Continued
York Co., Virginia, Certificates of Participation, Revenue,
$250,000 6.625%, due 03/01/2012 $ 265,230
------------
Total Virginia Fixed Rate Revenue and General
Obligation (GO) Bonds (Cost $17,278,281) $ 17,860,483
------------
Shares
MONEY MARKETS - 0.8%
151,620 Star Tax Free Fund (Cost $151,620) $ 151,620
------------
Total Investments at Value (Cost $17,429,901) - 98.9% $ 18,012,103
Other Assets in Excess of Liabilities - 1.1% 200,625
------------
Net Assets - 100.0% $ 18,212,728
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Tax Exempt Virginia Fund (the Fund) is a no-load series of the
Williamsburg Investment Trust (the Trust), an open-end management investment
company registered 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 and distributions to shareholders -- Interest income is
accrued as earned. Discounts and premiums on securities purchased are amortized
in accordance with income tax regulations. Dividends arising from net investment
income are declared daily and paid on the last business day of each month to
shareholders of the Fund. Net realized short-term capital gains, if any, may be
distributed throughout the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income distributions and capital
gain distributions are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade
date. Cost of securities sold is determined 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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, if any, 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 $17,429,901 as of March 31, 1998:
Gross unrealized appreciation......................................$ 591,267
Gross unrealized depreciation....................................... (9,065)
---------
Net unrealized appreciation .......................................$ 582,202
=========
2. INVESTMENT TRANSACTIONS
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $11,791,783 and $4,833,802, respectively.
<PAGE>
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% of its
average daily net assets up to $250 million; .35% of the next $250 million of
such net assets; and .30% of 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
$4,939 of its investment advisory fee for the year ended March 31, 1998. Certain
trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .15% of its average daily net assets up to $200
million and .10% of 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, postage, supplies and costs of pricing the Fund's
portfolio securities. Certain officers of the Trust are also officers of CFS.
<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, 1998, 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, 1998 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, 1998, 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 24, 1998
<PAGE>
The Government Street Funds
The Alabama Tax Free Bond Fund
No Load Mutual Funds
Annual Report
March 31, 1998
Investment Adviser
T. Leavell & Associates, Inc.
Founded 1979
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
Countrywide Fund Services, Inc.
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
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
Erwin H. Will, Jr.
Samuel B. Witt, III
Portfolio Managers
Thomas W. Leavell and
Stephen W. Simmons,
The Government Street Equity Fund
Mary Shannon Hope,
The Government Street Bond Fund
Timothy S. Healey,
The Alabama Tax Free Bond Fund
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
Dear Fellow Shareholders:
We are pleased to enclose for your review the audited annual report of
The Government Street Funds and of The Alabama Tax Free Bond Fund for the year
ended March 31, 1998.
THE GOVERNMENT STREET EQUITY FUND
- ---------------------------------
The Government Street Equity Fund achieved a total return of 39.3% for
its fiscal year ended March 31, 1998. The total return of the S&P 500 Index was
48.0% for the same twelve month period.
The environment for investing in common stocks remained extraordinarily
positive in 1997 and during 1998's first calendar quarter. Robust economic
growth; growth in corporate profitability; strong growth in capital spending;
low inflation (and lower inflation expectations); and a strong dollar have all
contributed to another remarkable year in the U.S. stock market. These elements
combined with a tremendous demand for common stocks by individual investors,
401-K plans, IRAs, and other employee benefit plans have resulted in an
unprecedented three consecutive years of annual stock returns in excess of 20%.
It is hard to imagine that the market can continue its momentum. A
strong U.S. economy means that Federal Reserve tightening of interest rates is a
realistic concern. In addition, while Asia accounts for only a small proportion
of U.S. companies sales, it is a much bigger share of expected sales growth; and
the economic situation there remains uncertain. There also is the possibility of
lower corporate profitability. Yet, the average stock fund was up 11.9% during
the first calendar quarter of 1998 -- a greater return than most analysts were
expecting for the entire year.
Regardless of what occurs, however, the Fund's diversification provides
the foundation for a solid, high quality investment. There are eighty-five
different companies represented in the portfolio; they are spread across
industry and capitalization sectors. Approximately 53% of the Fund's assets are
invested in growth stocks; 39% in value stocks; and 8% in cash equivalents. If
the market continues its advance, investors in The Government Street Equity Fund
will participate; if there is a correction, they are well positioned
defensively.
During the year ended March 31, 1998, the Fund experienced a turnover
rate of only 18%; average trading costs were approximately $0.035 per share.
Both of these statistics reflect the continued operating efficiency of the Fund.
At year end, the net assets of the Fund were $75,643,037; net asset value per
share was $43.79.
In February, Stephen W. Simmons joined T. Leavell & Associates after
having spent the last three and a half years managing the $6 billion equity
portfolio of the Retirement Systems of Alabama. It is our pleasure to announce
that he has been appointed co-manager of The Government Street Equity Fund. He
will focus his efforts on the value stock area of the portfolio. In addition,
Stephen will be involved in the development of our quantitative stock selection
techniques.
THE GOVERNMENT STREET BOND FUND
- -------------------------------
The twelve month period that ended March 31, 1998 was a stellar year
for bonds and for The Government Street Bond Fund, as well.
Continued low inflation in the face of a strong economy, an inactive
Federal Reserve Board, the prospects for a balanced budget, and Asian market
uncertainties all contributed to the bond market surge in 1997 and early 1998.
In addition, the strong U.S. dollar encouraged foreign investors to buy U.S.
bonds, and commodity prices fell throughout the year. This latter phenomenon
indicates that the current benign inflationary environment is likely to
continue.
<PAGE>
The Government Street Bond Fund achieved a total return of 9.6% for its
fiscal year ended March 31, 1998. This return is in line with the Lehman
Intermediate Government Corporate Bond Index which had a total return of 9.6%
for the same twelve month period. The ratio of net investment income to average
net assets was 6.4%.
At year end, 97.2% of the Fund's assets were invested in fixed-income
securities rated A or better, and over 50% were invested in AAA bonds. The
average maturity and duration of the Fund were 5.6 years and 4.3 years,
respectively. The net assets of the Fund were $36,907,953; net asset value per
share was $21.06. The ratio of expenses to average net assets was 0.74%.
THE ALABAMA TAX FREE BOND FUND
- ------------------------------
The Alabama Tax Free Bond Fund provides Alabama investors with a source
of income which is exempt from both federal and state income taxes. The Fund
invests in a broad spectrum of high-quality Alabama municipal bond issues with
an intermediate average maturity.
It remains the only no-load Alabama municipal bond fund.
For the fiscal year ended March 31, 1998, the ratio of net investment
income to average net assets was 4.2%. To an Alabama investor in the maximum
combined federal and state tax brackets of 42.6%, the taxable equivalent of this
ratio was 7.3%.
The total return of the Fund for its fiscal year was 7.4%. This return
compares favorably with the 6.1% return of the Lehman Three Year Municipal Bond
Index and with the 9.1% return of the Lehman Seven Year Municipal Bond Index
over the same twelve month period.
The net assets of the Fund at March 31, 1998 were $19,938,296; the net
asset value per share was $10.49. The weighted average maturity of the Fund's
portfolio was 6.9 years. There were 97 issues held by the Fund, all of which
were rated A or better by Standard and Poor's or Moody's Investors Service. More
than 50% of the Fund's assets were rated AAA.
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 Streets Funds
The Alabama Tax Free Bond Fund
<PAGE>
<TABLE>
<CAPTION>
The Government Street Equity Fund
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.
<S> <C> <C> <C>
The Government
Street Equity Fund Standard & Poor's 500 Index Consumer Price Index
Jun 91 10000 10000 10000
9795 9813 10030
10297 10337 10090
11147 11203 10181
Mar 92 10812 10920 10253
10822 11127 10335
11214 11478 10407
11821 12056 10491
Mar 93 11857 12582 10586
11682 12642 10649
11971 12968 10692
12194 13269 10767
Mar 94 11825 12766 10821
11471 12820 10886
12086 13446 10984
11855 13443 11050
Mar 95 12655 14752 11138
13564 16161 11239
14385 17445 11284
15106 18495 11340
Mar 96 15941 19488 11431
16399 20363 11558
17247 20992 11609
18351 22742 11704
Mar 97 18642 23352 11785
21733 27429 11807
23069 29483 11859
23459 30330 11932
Mar 98 25969 34560 11947
The Government Street Equity Fund Average Annual Total Return
1 Year 5 Years Since Inception*
39.1% 16.97% 15.10%
*Initial public offering of shares was June 3, 1991.
Past performance is not predictive of future performance.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
The Government Street Bond Fund
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.
<S> <C> <C> <C>
The Government Lehman Government/Corporate
Street Bond Fund Intermediate Bond Index 90-Day Treasury Bill Index
Jun 91 10000 10000 10000
10045 10007 10039
10444 10488 10193
10931 10992 10342
Mar 92 10813 10892 10445
11218 11323 10559
11706 11822 10666
11627 11780 10748
Mar 93 12125 12249 10832
12366 12513 10916
12673 12796 11005
12650 12818 11091
Mar 94 12350 12558 11176
12261 12452 11283
12347 12585 11405
12310 12571 11556
Mar 95 12859 13123 11729
13533 13778 11905
13727 14006 12075
14213 14499 12253
Mar 96 14072 14378 12404
14158 14469 12563
14403 14726 12737
14731 15087 12903
Mar 97 14719 15070 13067
15146 15515 13245
15564 15934 13423
15888 16275 13591
Mar 98 16134 16529 13768
The Government Street Bond Fund Average Annual Total Return
1 Year 5 Years Since Inception*
9.61% 5.88% 7.27%
*Initial public offering of shares was June 3, 1991.
Past perfromance is not predictive of future performance.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
The Alabama Tax Free Bond Fund
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.
<S> <C> <C> <C>
The Alabama Tax Lehman 7-Year G.O. Lehman 3-Year
Free Bond Fund Municipal Bond Index Municipal Bond Index
10000 10000 10000
Mar 93 10096 10255 10168
10380 10547 10321
10670 10856 10467
10781 11004 10585
Mar 94 10440 10527 10445
10506 10673 10558
10562 10755 10657
10439 10647 10658
Mar 95 10927 11224 10957
11219 11526 11189
11459 11905 11428
11735 12198 11603
Mar 96 11693 12172 11668
11724 12208 11763
11921 12437 11918
12178 12757 12118
Mar 97 12140 12738 12168
12437 13092 12393
12690 13441 12605
12947 13736 12784
Mar 98 13043 13894 12916
The Alabama Tax Free Bond Fund Average Annual Total Return
1 Year 5 Years Since Inception*
7.44% 5.26% 5.23%
*Initial public offering of shares was January 15, 1993.
Past performance is not predeictive of future performance.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1998
<S> <C> <C> <C>
====================================================================================================================================
Government Government Alabama
Street Street Tax Free
Equity Bond Bond
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At acquisition cost................................... $ 38,594,955 $ 35,092,994 $ 18,988,868
=============== =============== ===============
At value (Note 1)..................................... $ 69,990,927 $ 35,479,894 $ 19,720,043
Investments in repurchase agreements (Note 1)............ 5,612,000 804,000 --
Cash .................................................... 878 562 --
Receivable for capital shares sold....................... 17,392 57,434 850
Interest receivable...................................... 818 638,895 250,303
Dividends receivable..................................... 77,845 -- --
Other assets............................................. 1,693 1,168 430
--------------- --------------- ---------------
TOTAL ASSETS.......................................... 75,701,553 36,981,953 19,971,626
--------------- --------------- ---------------
LIABILITIES
Dividends payable........................................ 4,819 21,023 19,712
Payable for capital shares redeemed...................... 1,200 28,023 2,500
Accrued advisory fees (Note 3)........................... 37,807 15,567 5,018
Accrued administration fees (Note 3)..................... 10,850 2,290 2,470
Other accrued expenses and liabilities................... 3,840 7,097 3,630
--------------- --------------- ---------------
TOTAL LIABILITIES..................................... 58,516 74,000 33,330
--------------- --------------- ---------------
NET ASSETS .............................................. $ 75,643,037 $ 36,907,953 $ 19,938,296
=============== =============== ===============
Net assets consist of:
Paid-in capital ......................................... $ 42,316,546 $ 36,951,307 $ 19,406,057
Accumulated net realized gains (losses)
from security transactions............................ 1,929,635 ( 434,110 ) ( 198,936 )
Undistributed net investment income...................... 884 3,856 --
Net unrealized appreciation on investments............... 31,395,972 386,900 731,175
--------------- --------------- ---------------
Net assets............................................... $ 75,643,037 $ 36,907,953 $ 19,938,296
=============== =============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)............ 1,727,277 1,752,457 1,899,959
=============== =============== ===============
Net asset value, offering price and
redemption price per share (Note 1)................... $ 43.79 $ 21.06 $ 10.49
=============== =============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF OPERATIONS
Year Ended March 31, 1998
<S> <C> <C> <C>
====================================================================================================================================
Government Government Alabama
Street Street Tax Free
Equity Bond Bond
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest.............................................. $ 183,292 $ 2,330,572 $ 903,771
Dividends............................................. 874,608 -- --
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME............................. 1,057,900 2,330,572 903,771
--------------- --------------- ---------------
EXPENSES
Investment advisory fees (Note 3)..................... 375,712 164,236 65,359
Administrative fees (Note 3).......................... 112,821 25,069 28,029
Professional fees..................................... 12,021 12,021 8,996
Pricing costs......................................... 2,033 9,391 13,239
Printing of shareholder reports....................... 7,522 6,647 5,472
Custodian fees........................................ 8,276 4,111 3,600
Trustees' fees and expenses........................... 5,405 5,405 5,405
Postage and supplies.................................. 7,135 5,693 5,351
Registration fees..................................... 6,525 5,465 2,573
Insurance expense..................................... 3,095 2,059 1,305
Other expenses........................................ 1,074 3,144 873
--------------- --------------- ---------------
TOTAL EXPENSES...................................... 541,619 243,241 140,202
Fees waived by the Adviser (Note 3)................... -- -- ( 18,821 )
--------------- --------------- ---------------
NET EXPENSES........................................ 541,619 243,241 121,381
--------------- --------------- ---------------
NET INVESTMENT INCOME ................................... 516,281 2,087,331 782,390
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gains (losses)
from security transactions.......................... 2,517,491 ( 36,286 ) 1,079
Net change in unrealized appreciation/depreciation
on investments...................................... 17,143,907 906,779 546,731
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS ....................................... 19,661,398 870,493 547,810
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS ...................................... $ 20,177,679 $ 2,957,824 $ 1,330,200
=============== =============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
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,
1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income............. $ 516,281 $ 536,422 $2,087,331 $1,901,229 $ 782,390 $688,356
Net realized gains (losses)
from security transactions...... 2,517,491 2,262,399 (36,286) (201,643) 1,079 6,155
Net change in unrealized appreciation/
depreciation on investments...... 17,143,907 4,313,961 906,779 (362,072) 546,731 (76,770)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
from operations 20,177,679 7,112,782 2,957,824 1,337,514 1,330,200 617,741
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income........ (527,419) (526,528) (2,095,202) (1,892,341) (782,390) (688,356)
From net realized gains........... (1,732,108)(1,910,988) -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders.................. (2,259,527)(2,437,516) (2,095,202) (1,892,341) (782,390) (688,356)
----------- ----------- ----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold......... 10,616,273 5,118,742 7,696,201 3,531,544 2,804,374 2,068,564
Net asset value of shares issued in
reinvestment of distributions
to shareholders.................. 2,175,993 2,347,971 1,871,979 1,663,544 555,482 480,364
Payments for shares redeemed...... (4,696,332)(3,933,851) (2,965,314) (3,915,554) (770,028) (1,158,134)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets from
capital share transactions........ 8,095,934 3,532,862 6,602,866 1,279,534 2,589,828 1,390,794
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS ....... 26,014,086 8,208,128 7,465,488 724,707 3,137,638 1,320,179
NET ASSETS:
Beginning of year................. 49,628,951 41,420,823 29,442,465 28,717,758 16,800,658 15,480,479
----------- ----------- ----------- ----------- ----------- -----------
End of year....................... $75,643,037$49,628,951 $36,907,953 $29,442,465 $19,938,296 $16,800,658
=========== =========== =========== =========== =========== ===========
UNDISTRIBUTED NET
INVESTMENT INCOME ................ $ 884$ 12,022 $ 3,856 $ 11,727 $ -- $ --
=========== =========== =========== =========== =========== ===========
Capital share activity:
Sold............................. 268,759 162,325 365,904 170,003 270,970 202,023
Reinvested....................... 56,533 76,331 89,389 80,355 53,306 46,910
Redeemed......................... (121,016) (124,086) (141,456) (188,067) (73,918) (112,871)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in shares outstanding 204,276 114,570 313,837 62,291 250,358 136,062
Shares outstanding, beginning
of year 1,523,001 1,408,431 1,438,620 1,376,329 1,649,601 1,513,539
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding, end of year.. 1,727,277 1,523,001 1,752,457 1,438,620 1,899,959 1,649,601
=========== =========== =========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET EQUITY FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
====================================================================================================================================
Years Ended March 31,
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year...... $ 32.59 $ 29.41 $ 23.87 $ 22.69 $ 23.06
----------- ----------- ---------- ---------- -----------
Income from investment operations:
Net investment income.................. 0.32 0.37 0.40 0.38 0.30
Net realized and unrealized
gains (losses) on investments........ 12.28 4.50 5.75 1.19 ( 0.37 )
----------- ----------- ---------- ---------- -----------
Total from investment operations.......... 12.60 4.87 6.15 1.57 ( 0.07 )
----------- ----------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income... ( 0.32) ( 0.36 ) ( 0.40) ( 0.39) ( 0.30 )
Distributions from net realized gains.. ( 1.08) ( 1.33 ) ( 0.21) -- --
----------- ----------- ---------- ---------- -----------
Total distributions....................... ( 1.40) ( 1.69 ) ( 0.61) ( 0.39) ( 0.30 )
----------- ----------- ---------- ---------- -----------
Net asset value at end of year............ $ 43.79 $ 32.59 $ 29.41 $ 23.87 $ 22.69
=========== =========== ========== ========== ===========
Total return.............................. 39.31% 16.94% 25.96% 7.02% ( 0.31% )
=========== =========== ========== ========== ===========
Net assets at end of year (000's)......... $ 75,643 $ 49,629 $ 41,421 $ 31,473 $ 27,101
=========== =========== ========== ========== ===========
Ratio of net expenses to average net assets(a) 0.86% 0.89% 0.94% 0.91% 1.00%
Ratio of net investment income
to average net assets.................. 0.82% 1.17% 1.50% 1.71% 1.33%
Portfolio turnover rate................... 18% 20% 31% 55% 63%
Average commission rate per share......... $ 0.0351 $ 0.0410 $ -- $ -- $ --
(a) In an effort to reduce the total operating expenses of the Fund, a portion
of the Fund's administrative and custodian fees for years 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% and 1.16% for the years ended March 31, 1995 and 1994,
respectively.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
====================================================================================================================================
Years Ended March 31,
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year...... $ 20.47 $ 20.87 $ 20.33 $ 20.87 $ 21.77
----------- ----------- ---------- ---------- -----------
Income from investment operations:
Net investment income.................. 1.32 1.34 1.35 1.35 1.32
Net realized and unrealized
gains (losses) on investments........ 0.60 ( 0.40 ) 0.54 ( 0.53) ( 0.90 )
----------- ----------- ---------- ---------- -----------
Total from investment operations.......... 1.92 0.94 1.89 0.82 0.42
----------- ----------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income... ( 1.33) ( 1.34 ) ( 1.35) ( 1.36) ( 1.32 )
----------- ----------- ---------- ---------- -----------
Net asset value at end of year............ $ 21.06 $ 20.47 $ 20.87 $ 20.33 $ 20.87
=========== =========== ========== ========== ===========
Total return.............................. 9.61% 4.60% 9.43% 4.12% 1.85%
=========== =========== ========== ========== ===========
Net assets at end of year (000's)......... $ 36,908 $ 29,442 $ 28,718 $ 27,780 $ 22,633
=========== =========== ========== ========== ===========
Ratio of net expenses to average net assets 0.74% 0.75% 0.76% 0.85% 0.86%(a)
Ratio of net investment income
to average net assets.................. 6.35% 6.44% 6.38% 6.68% 6.15%
Portfolio turnover rate................... 10% 20% 10% 11% 10%
(a) Absent investment advisory fees waived by the Adviser, the ratios of expenses to average net assets would have
been 1.03% for the year ended March 31, 1994.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
====================================================================================================================================
Seven
Months January 15,
Years Ended March 31, Ended 1993(b) to
March 31, August 31,
1998 1997 1996 1995 1994(a) 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 10.18 $ 10.23 $ 9.96 $ 9.96 $ 10.30 $ 10.00
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income............. 0.44 0.43 0.42 0.45 0.26 0.23
Net realized and unrealized
gains (losses) on investments.... 0.31 ( 0.05 ) 0.27 -- ( 0.34 ) 0.30
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations.... 0.75 0.38 0.69 0.45 ( 0.08 ) 0.53
----------- ----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from net investment income ( 0.44 ) ( 0.43 ) ( 0.42 ) ( 0.45 ) ( 0.26 ) ( 0.23 )
----------- ----------- ----------- ----------- ----------- -----------
Net asset value at end of period.... $ 10.49 $ 10.18 $ 10.23 $ 9.96 $ 9.96 $ 10.30
=========== =========== =========== =========== =========== ===========
Total return........................ 7.44% 3.82% 7.02% 4.66% (1.50%)(d) 8.79%(d)
=========== =========== =========== =========== =========== ===========
Net assets at end of period (000's). $ 19,938 $ 16,801 $ 15,480 $ 12,816 $ 9,716 $ 3,429
=========== =========== =========== =========== =========== ===========
Ratio of net expenses to
average net assets(c) 0.65% 0.66% 0.75% 0.75% 0.75%(d) 0.75%(d)
Ratio of net investment income
to average net assets............. 4.19% 4.24% 4.11% 4.56% 4.46%(d) 4.01%(d)
Portfolio turnover rate............. 2% 6% 4% 36% 3% 2%
(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 0.75%,
0.78%, 0.86%, 1.05%, 1.76%(d) and 2.75%(d) for the periods ended March 31,
1998, 1997, 1996, 1995, 1994 and August 31, 1993, respectively (Note 3).
(d) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
<S> <C> <C>
Shares COMMON STOCKS -- 92.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE -- 1.3%
18,200 Boeing Company............................................................. $ 948,675
--------------
CHEMICALS AND DRUGS -- 14.9%
20,000 Becton Dickinson & Company................................................. 1,361,250
15,000 Biomet, Inc................................................................ 450,000
20,000 Cardinal Health, Inc....................................................... 1,763,750
20,000 duPont (E.I.) de Nemours & Company......................................... 1,360,000
13,000 Eli Lilly & Company........................................................ 775,125
18,000 Goodrich (B.F.) Company.................................................... 919,125
15,000 Johnson & Johnson.......................................................... 1,099,687
8,700 Merck & Company, Inc....................................................... 1,116,863
20,000 Schering-Plough Corporation................................................ 1,633,750
22,000 Sigma-Aldrich Corporation.................................................. 819,500
--------------
......................................................................... 11,299,050
--------------
CONSTRUCTION -- 5.6%
25,500 Blount, Inc. - Class A..................................................... 758,625
20,000 Caterpiller, Inc........................................................... 1,101,250
20,312 Clayton Homes, Inc......................................................... 411,318
12,000 Florida Rock Industries, Inc............................................... 342,750
8,000 Lowe's Companies, Inc...................................................... 561,500
25,600 Valspar Corporation........................................................ 1,004,800
--------------
......................................................................... 4,180,243
--------------
CONSUMER PRODUCTS -- 9.4%
21,633 Archer-Daniels-Midland Company............................................. 475,232
13,500 Belo (A.H.) Corporation - Class A.......................................... 742,500
12,000 General Motors Corporation................................................. 809,250
14,500 Gillette Company........................................................... 1,720,969
15,000 Kimberly-Clark Corporation................................................. 751,875
12,000 Polygram NV................................................................ 556,500
15,000 Procter & Gamble Company................................................... 1,265,625
10,000 Sun Microsystems, Inc. (a) ................................................ 417,188
8,000 Newell Company............................................................. 387,500
--------------
......................................................................... 7,126,639
--------------
DURABLE GOODS -- 15.2%
12,000 Advanced Micro Devices, Inc.(a) ........................................... 348,750
20,000 Andrew Corporation(a) ..................................................... 396,250
35,000 Cisco Systems, Inc.(a) .................................................... 2,393,125
15,000 Compaq Computer Corporation................................................ 388,125
8,000 Computer Assoc. International Inc.......................................... 462,000
9,000 Deere & Company............................................................ 577,437
11,000 Diebold, Inc............................................................... 484,000
23,000 General Electric Company .................................................. 1,982,313
15,000 General Signal Corporation ................................................ 701,250
9,000 Intel Corporation.......................................................... 702,563
5,000 International Business Machines Corporation................................ 519,375
16,000 Philips Electronics NV..................................................... 1,175,000
11,500 Raytheon Company........................................................... 671,312
6,000 Shared Medical Systems, Inc................................................ 470,250
5,000 Springs Industries, Inc.................................................... 274,687
--------------
11,526,437
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
====================================================================================================================================
<S> <C> <C>
Shares COMMON STOCKS -- 92.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL -- 16.3%
9,695 Aetna, Inc................................................................. $ 808,927
15,000 AFLAC, Inc................................................................. 948,750
10,000 American Express Company................................................... 918,125
22,000 Federal Home Loan Mortgage Corporation..................................... 1,043,625
10,000 Fleet Financial Group, Inc................................................. 850,625
5,000 MBNA Corporation........................................................... 179,063
28,000 Mellon Bank Corporation.................................................... 1,778,000
14,000 S&P Mid-Cap 400 Depository Receipts........................................ 998,156
8,300 S&P 500 Depository Receipts................................................ 913,000
33,000 Star Banc Corporation ..................................................... 1,951,125
14,000 Synovus Financial Corporation.............................................. 519,750
15,000 Torchmark Corporation...................................................... 687,188
12,000 Travelers, Inc............................................................. 720,000
--------------
12,316,334
--------------
FOOD/BEVERAGES -- 3.1%
6,000 Anheuser-Busch Companies, Inc.............................................. 277,875
10,000 Campbell Soup Company...................................................... 567,500
40,000 Coca-Cola Enterprises...................................................... 1,467,500
1,000 Vlasic Foods International Inc.(a) ........................................ 25,562
--------------
......................................................................... 2,338,437
--------------
METAL AND MINING -- 0.8%
9,000 Aluminum Company of America................................................ 619,312
--------------
OIL/ENERGY -- 7.9%
12,500 Amoco Corporation.......................................................... 1,079,688
10,000 Baker Hughes, Inc.......................................................... 402,500
13,000 Chevron Corporation........................................................ 1,044,063
14,650 Exxon Corporation.......................................................... 990,706
11,000 Halliburton Company........................................................ 552,062
10,000 Helmerich & Payne, Inc..................................................... 312,500
5,000 Pennzoil Company........................................................... 323,125
28,500 Shell Transport & Trading PLC.............................................. 1,261,125
--------------
......................................................................... 5,965,769
--------------
PAPER AND FOREST PRODUCTS -- 1.3%
11,000 Georgia Pacific Corporation................................................ 712,250
11,000 Georgia Pacific Corporation, Timber Group.................................. 282,562
--------------
......................................................................... 994,812
--------------
RETAIL -- 4.9%
21,000 American Stores Company.................................................... 546,000
17,700 Home Depot, Inc............................................................ 1,193,644
12,000 Nike, Inc. - Class B ..................................................... 531,000
11,000 Wal-Mart Stores, Inc....................................................... 558,937
25,000 Walgreen Company........................................................... 879,687
--------------
......................................................................... 3,709,268
--------------
SERVICES - COMPUTER -- 2.7%
11,100 Automatic Data Processing, Inc............................................. 755,494
24,000 Computer Sciences Corporation(a) .......................................... 1,320,000
--------------
......................................................................... 2,075,494
--------------
TELECOMMUNICATION EQUIPMENT -- 0.5%
18,000 Scientific - Atlanta, Inc.................................................. 352,125
--------------
TRANSPORTATION -- 1.6%
15,000 FDX Corporation(a) ........................................................ 1,066,875
5,000 Southwest Airlines Company................................................. 147,812
--------------
1,214,687
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
====================================================================================================================================
<S> <C> <C>
Shares COMMON STOCKS -- 92.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES -- 6.9%
29,000 Ameritech Corporation...................................................... $ 1,433,688
11,000 Bellsouth Corporation...................................................... 743,188
15,490 Duke Power Company......................................................... 922,623
28,000 SBC Communications, Inc.................................................... 1,221,500
17,000 US West Inc................................................................ 930,750
--------------
5,251,749
--------------
TOTAL COMMON STOCKS (COST $38,541,826) ...................................... $69,919,031
--------------
====================================================================================================================================
Shares PREFERRED STOCKS -- 0.1% Value
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL -- 0.1%
898 Aetna Inc., Convertible.................................................... $ 71,896
--------------
TOTAL PREFERRED STOCKS (COST $53,129) ...................................... $ 71,896
--------------
TOTAL INVESTMENTS AT VALUE (COST $38,594,955)-- 92.5% ...................... $ 69,990,927
--------------
====================================================================================================================================
Face
Amount REPURCHASE AGREEMENTS(b) -- 7.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
Star Bank, N.A.,
$ 5,612,000 5.25%, dated 03/31/1998, due 04/01/1998,
repurchase proceeds $5,612,818 (Cost $5,612,000)......................... $ 5,612,000
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 99.9% ............... $ 75,602,927
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.1% ................................ 40,110
--------------
NET ASSETS-- 100.0% ......................................................... $ 75,643,037
==============
(a) Non-income producing security.
(b) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/2024; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/2022; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/2024. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985.
The funds pro-rata interest in the collateral at March 31, 1998 was
$5,760,848.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
<S> <C> <C>
Par Value U.S. TREASURY AND AGENCY OBLIGATIONS-- 43.3% Value
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 6.6%
$ 70,000 7.875%, due 04/15/1998..................................................... $ 70,066
50,000 8.25%, due 07/15/1998...................................................... 50,391
855,000 7.125%, due 10/15/1998..................................................... 862,215
225,000 7.00%, due 04/15/1999...................................................... 228,234
150,000 6.375%, due 07/15/1999..................................................... 151,406
100,000 8.00%, due 08/15/1999...................................................... 103,125
200,000 6.00%, due 10/15/1999...................................................... 201,125
250,000 7.50%, due 10/31/1999...................................................... 256,953
50,000 7.875%, due 11/15/1999..................................................... 51,734
100,000 8.50%, due 02/15/2000...................................................... 105,063
20,000 8.75%, due 08/15/2000...................................................... 21,369
50,000 8.50%, due 11/15/2000...................................................... 53,437
140,000 8.00%, due 05/15/2001...................................................... 149,231
125,000 7.875%, due 08/15/2001..................................................... 133,320
--------------
2,437,669
--------------
U.S. TREASURY STRIPS -- 0.1%
Coupon Treasury Investment Growth Security,
11,000 due 08/15/1998........................................................... 10,773
--------------
FEDERAL FARM CREDIT BANK BONDS -- 1.4%
500,000 6.00%, due 01/07/2008...................................................... 499,744
--------------
FEDERAL HOME LOAN BANK BONDS -- 1.5%
500,000 7.57%, due 08/19/2004...................................................... 543,589
--------------
.........................................................................
FEDERAL HOME LOAN MORTGAGE CORPORATION BONDS -- 9.5%
240,000 7.12%, due 09/30/2005...................................................... 241,089
500,000 6.345%, due 11/01/2005..................................................... 512,712
200,000 6.73%, due 01/05/2006...................................................... 199,535
300,000 7.52%, due 04/21/2006...................................................... 305,413
500,000 7.55%, due 04/26/2006 ..................................................... 507,734
895,000 7.44%, due 09/20/2006...................................................... 931,398
800,000 7.04%, due 01/09/2007...................................................... 824,645
--------------
3,522,526
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION BONDS -- 20.8%
750,000 7.85%, due 09/10/1998...................................................... 756,827
100,000 8.45%, due 07/12/1999...................................................... 103,248
650,000 6.85%, due 05/04/2001...................................................... 650,508
500,000 6.83%, due 04/02/2003...................................................... 501,895
500,000 6.63%, due 06/20/2005...................................................... 520,380
500,000 8.00%, due 06/15/2006...................................................... 502,424
500,000 7.90%, due 06/28/2006...................................................... 508,230
650,000 7.65%, due 10/06/2006...................................................... 667,812
500,000 7.36%, due 02/07/2007...................................................... 507,943
400,000 7.70%, due 04/10/2007...................................................... 412,120
500,000 6.62%, due 06/25/2007...................................................... 522,475
500,000 7.16%, due 06/26/2007...................................................... 507,731
500,000 7.00%, due 07/17/2007...................................................... 507,744
400,000 6.80%, due 08/27/2012...................................................... 416,259
600,000 6.875%, due 09/24/2012..................................................... 622,744
--------------
7,708,340
--------------
PRIVATE EXPORT FUNDING BONDS -- 1.3%
470,000 7.90%, due 03/31/2000...................................................... 488,675
--------------
TENNESSEE VALLEY AUTHORITY BONDS -- 2.1%
745,000 6.875%, due 01/15/2002..................................................... 760,421
--------------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS (COST $15,861,253) ............... $ 15,971,737
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
====================================================================================================================================
<S> <C> <C>
Par Value MORTGAGE-BACKED SECURITIES -- 5.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.2%
$ 87,566 Series #G92-40, Class G, 7.00%, due 07/25/2002............................. $ 87,301
--------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 4.8%
24,444 Pool #15032, 7.50%, due 02/15/2007......................................... 25,063
494,854 Pool #438434, 6.50%, due 01/01/2013........................................ 498,411
22,329 Pool #176413, 7.50%, due 09/15/2016........................................ 22,894
29,074 Pool #170784, 8.00%, due 12/15/2016........................................ 30,101
25,790 Pool #181540, 8.00%, due 02/15/2017........................................ 26,700
496,499 Pool #366710, 6.50%, due 02/01/2024........................................ 491,226
669,633 Pool #453826, 7.25%, due 09/01/2027........................................ 681,352
--------------
1,775,747
--------------
OTHER MORTGAGE-BACKED SECURITIES -- 0.4%
Collateralized Mortgage Securities Corporation,
145,738 Series #1991-8PF, 7.30%, due 08/20/2020............................... 146,506
--------------
.........................................................................
TOTAL MORTGAGE-BACKED SECURITIES (COST $2,012,567) .......................... $ 2,009,554
--------------
====================================================================================================================================
Par Value CORPORATE BONDS -- 47.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCE -- 22.7%
American Express Company,
$ 350,000 8.50%, due 08/15/2001.................................................... $ 375,906
--------------
AmSouth Bancorp,
425,000 9.375%, due 05/01/1999................................................... 439,635
550,000 7.75%, due 05/15/2004.................................................... 589,484
--------------
1,029,119
--------------
Associates Corporation, N.A.,
300,000 8.80%, due 08/01/1998.................................................... 302,699
--------------
Banc One Corporation,
600,000 7.00%, due 07/15/2005.................................................... 621,659
--------------
BankAmerica Corporation,
496,000 8.375%, due 03/15/2002................................................... 532,474
--------------
Bear Stearns Company,
170,000 9.375%, due 06/01/2001................................................... 185,585
--------------
General Electric Capital Corporation,
100,000 7.24%, due 01/15/2002.................................................... 104,053
150,000 7.50%, due 03/15/2002.................................................... 157,571
--------------
......................................................................... 261,624
--------------
Merrill Lynch & Company, Inc.,
745,000 7.375%, due 08/17/2002................................................... 778,203
--------------
J.P. Morgan & Company,
500,000 7.25%, due 01/15/2002.................................................... 517,155
--------------
NationsBank,
550,000 7.625%, due 04/15/2005................................................... 590,731
--------------
Regions Financial Corporation,
350,000 7.80%, due 12/01/2002.................................................... 368,257
--------------
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
====================================================================================================================================
Par Value CORPORATE BONDS -- 47.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
Salomon, Inc.,
$ 400,000 7.25%, due 01/15/2000.................................................... $ 407,226
480,000 7.50%, due 02/01/2003.................................................... 502,319
--------------
......................................................................... 909,545
--------------
SouthTrust Bank of Alabama, N.A.,
500,000 7.00%, due 11/15/2008.................................................... 519,350
--------------
Transamerica Financial Corporation,
785,000 7.50%, due 03/15/2004.................................................... 828,741
--------------
Wachovia Corporation,
535,000 7.00%, due 12/15/1999.................................................... 544,121
--------------
TOTAL FINANCE CORPORATE BONDS ............................................... 8,365,169
--------------
INDUSTRIAL -- 21.6%
BP America Inc.,
265,000 8.50%, due 04/15/2001................................................... 283,284
--------------
Campbell Soup Company,
500,000 6.90%, due 10/15/2006.................................................... 527,340
--------------
Coca-Cola Company,
401,000 7.875%, due 09/15/1998.................................................. 404,371
500,000 6.625%, due 08/01/2004.................................................. 512,070
--------------
916,441
--------------
duPont (E.I.) de Nemours & Company,
150,000 9.15%, due 04/15/2000.................................................... 159,309
300,000 6.75%, due 10/15/2002.................................................... 308,528
--------------
......................................................................... 467,837
--------------
Hanson Overseas,
1,100,000 7.375%, due 01/15/2003................................................... 1,150,338
--------------
International Business Machines Corporation,
1,000,000 7.25%, due 11/01/2002.................................................... 1,048,253
--------------
Kimberly-Clark Corporation,
240,000 8.625%, due 05/01/2001................................................... 258,139
--------------
Limited, Inc.,
150,000 8.875%, due 08/15/1999................................................... 154,943
--------------
Mobil Corporation,
100,000 8.375%, due 02/12/2001................................................... 106,411
--------------
Philip Morris Companies, Inc.,
305,000 7.375%, due 02/15/1999................................................... 308,156
175,000 7.75%, due 05/01/1999.................................................... 177,906
500,000 7.125%, due 10/01/2004................................................... 516,365
--------------
1,002,427
--------------
Procter & Gamble Company,
150,000 8.70%, due 08/01/2001.................................................... 162,252
--------------
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
====================================================================================================================================
Par Value CORPORATE BONDS -- 47.4% Value
- ------------------------------------------------------------------------------------------------------------------------------------
Raytheon Company,
$ 800,000 6.50%, due 07/15/2005.................................................... $ 807,701
--------------
Wal-Mart Stores, Inc.,
170,000 9.10%, due 07/15/2000.................................................... 181,501
100,000 8.625%, due 04/01/2001................................................... 107,255
745,000 7.50%, due 05/15/2004.................................................... 796,906
--------------
1,085,662
--------------
TOTAL INDUSTRIAL CORPORATE BONDS ............................................ 7,971,028
--------------
UTILITY -- 3.1%
Consolidated Edison,
785,000 7.60%, due 01/15/2000.................................................... 805,587
--------------
Emerson Electric Company,
352,000 6.30%, due 11/01/2005.................................................... 356,819
--------------
TOTAL UTILITY CORPORATE BONDS ............................................... 1,162,406
--------------
TOTAL CORPORATE BONDS (COST $17,219,174) .................................... $ 17,498,603
--------------
TOTAL INVESTMENTS AT VALUE (COST $35,092,994)-- 96.1% ...................... $35,479,894
--------------
====================================================================================================================================
Face
Amount REPURCHASE AGREEMENTS(a) -- 2.2% Value
- ------------------------------------------------------------------------------------------------------------------------------------
Star Bank, N.A.,
$ 804,000 5.25%, dated 03/31/1998, due 04/01/1998,
repurchase proceeds $804,117 (Cost $804,000)............................. $ 804,000
--------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 98.3% ................ $36,283,894
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.7% ................................ 624,059
--------------
NET ASSETS-- 100.0% ......................................................... $36,907,953
==============
(a) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/2024; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/2022; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/2024. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985.
The funds pro-rata interest in the collateral at March 31, 1998 was $839,521.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
==============================================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS-- 95.0% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alabama Housing Finance Auth. Rev.,
$ 245,000 4.90%, due 10/01/1998...................................................... $ 246,421
--------------
Alabama Mental Health Finance Auth. Special Tax,
300,000 5.00%, due 05/01/2006...................................................... 311,295
--------------
Alabama State, GO,
200,000 5.90%, due 03/01/1999...................................................... 204,068
100,000 5.70%, due 12/01/2002...................................................... 106,181
--------------
310,249
--------------
Alabama State Corrections Institutions Rev.,
100,000 4.20%, due 04/01/1998...................................................... 100,000
--------------
Alabama State Industrial Access Road & Bridge Corp., GO,
100,000 4.00%, due 06/01/1998...................................................... 100,038
100,000 5.25%, due 06/01/2003...................................................... 104,165
--------------
204,203
--------------
Alabama State Mun. Elec. Auth. Power Supply Rev.,
150,000 5.625%, due 09/01/2000..................................................... 155,486
340,000 5.75%, due 09/01/2001...................................................... 356,742
400,000 6.50%, due 09/01/2005, prerefunded 09/01/2001 at 101....................... 433,916
--------------
946,144
--------------
Alabama State Public School & College Auth. Rev.,
100,000 4.40%, due 12/01/2000...................................................... 101,275
130,000 5.00%, due 06/01/2003...................................................... 135,194
250,000 5.25%, due 11/01/2005...................................................... 263,898
--------------
500,367
--------------
Alabama Water Pollution Control Rev.,
25,000 7.00%, due 08/15/2001...................................................... 26,092
190,000 6.25%, due 08/15/2004...................................................... 210,560
--------------
236,652
--------------
Anniston, AL, GO,
250,000 5.50%, due 01/01/2004...................................................... 266,562
--------------
Anniston, AL, Regional Medical Center Board Hospital Rev.,
30,000 7.375%, due 07/01/2006, ETM................................................ 33,304
--------------
Auburn University, Alabama, Rev.,
25,000 6.10%, due 06/01/1999...................................................... 25,663
150,000 5.20%, due 06/01/2004...................................................... 157,318
325,000 5.25%, due 04/01/2005...................................................... 341,887
--------------
524,868
--------------
Baldwin Co., AL, GO,
200,000 5.85%, due 08/01/2003...................................................... 215,608
400,000 5.00%, due 02/01/2007...................................................... 414,716
--------------
630,324
--------------
Baldwin Co., AL, Board of Education Rev.,
50,000 5.40%, due 12/01/1998...................................................... 50,552
300,000 5.90%, due 12/01/2001...................................................... 308,595
--------------
359,147
-------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
==============================================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS-- 95.0% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Birmingham, AL, GO,
$ 100,000 5.80%, due 04/01/2002...................................................... $ 105,986
200,000 5.90%, due 04/01/2003...................................................... 214,724
--------------
320,710
--------------
Birmingham, AL, Industrial Water Board Rev.,
100,000 5.00%, due 03/01/2001...................................................... 102,668
100,000 6.00%, due 07/01/2007...................................................... 111,721
--------------
214,389
--------------
Birmingham, AL, Medical Clinic Board Rev.,
60,000 7.30%, due 07/01/2005, ETM................................................. 67,241
--------------
Birmingham, AL, Special Facilities Rev.,
100,000 4.45%, due 06/01/1999...................................................... 100,817
--------------
Birmingham, AL, Waterworks & Sewer Board Rev.,
50,000 5.90%, due 01/01/2003...................................................... 53,577
400,000 6.15%, due 01/01/2006...................................................... 432,164
--------------
485,741
--------------
Birmingham-Southern College, AL, Private Education Bldg. Auth. Rev.,
500,000 5.10%, due 12/01/2012...................................................... 498,225
--------------
DCH Health Care Auth. of Alabama Rev.,
55,000 5.00%, due 06/01/2004...................................................... 56,882
--------------
Decatur, AL, GO,
300,000 5.00%, due 06/01/2009...................................................... 308,901
--------------
Fairhope, AL, Utility, Rev.,
200,000 5.10%, due 12/01/2008...................................................... 205,788
--------------
Greenville, AL, GO,
300,000 5.10%, due 12/01/2009...................................................... 310,722
--------------
Hoover, AL, Board of Education, GO,
400,000 6.00%, due 02/15/2006...................................................... 437,668
--------------
Hoover, AL, Board of Education Special Tax,
200,000 6.625%, due 02/01/2010, prerefunded 02/01/2001 at 102...................... 217,268
--------------
Houston Co., AL, GO,
100,000 4.20%, due 10/01/1998...................................................... 100,265
250,000 5.00%, due 07/01/2002...................................................... 258,088
--------------
358,353
--------------
Huntsville, AL, GO,
115,000 5.15%, due 08/01/2000...................................................... 118,171
100,000 5.20%, due 11/01/2000...................................................... 103,162
500,000 5.50%, due 11/01/2002...................................................... 528,105
100,000 5.90%, due 11/01/2005...................................................... 107,886
300,000 5.40%, due 02/01/2010...................................................... 313,290
--------------
1,170,614
--------------
Huntsville, AL, Electric Systems Rev.,
150,000 6.10%, due 12/01/2000...................................................... 158,156
150,000 5.00%, due 12/01/2003...................................................... 155,451
--------------
313,607
--------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
==============================================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS-- 95.0% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Huntsville, AL, Water Systems Rev.,
$ 150,000 5.15%, due 05/01/2004...................................................... $ 156,837
150,000 5.25%, due 05/01/2005...................................................... 156,897
--------------
313,734
--------------
Jefferson Co., AL, GO,
150,000 5.55%, due 04/01/2002...................................................... 157,329
100,000 5.00%, due 04/01/2004...................................................... 103,347
--------------
260,676
--------------
Jefferson Co., AL, Board of Education Capital Outlay Warrants,
300,000 5.70%, due 02/15/2011...................................................... 319,794
--------------
Jefferson Co., AL, Sewer Rev.,
140,000 5.15%, due 09/01/2002...................................................... 145,936
50,000 5.50%, due 09/01/2003 ..................................................... 53,093
300,000 5.75%, due 09/01/2005 ..................................................... 323,343
--------------
522,372
--------------
Lee Co., AL, GO,
300,000 5.50%, due 02/01/2007...................................................... 321,876
--------------
Madison, AL, Board of Education School Warrants,
100,000 5.00%, due 02/01/1999...................................................... 101,118
--------------
Madison, AL, Warrants,
325,000 5.55%, due 04/01/2007...................................................... 350,873
--------------
Madison Co., AL, Board of Education Capital Outlay Tax Antic. Warrants,
175,000 5.20%, due 09/01/2004...................................................... 184,144
250,000 5.10%, due 09/01/2011...................................................... 255,807
--------------
439,951
--------------
Mobile, AL, GO,
200,000 5.00%, due 08/15/1998...................................................... 200,978
150,000 5.20%, due 02/15/1999...................................................... 152,010
200,000 5.40%, due 08/15/2000...................................................... 206,816
25,000 6.25%, due 08/01/2001...................................................... 26,665
25,000 6.30%, due 08/01/2001...................................................... 26,500
275,000 6.20%, due 02/15/2007, ETM................................................. 307,802
--------------
920,771
--------------
Mobile, AL, Water & Sewer Commissioners Rev.,
55,000 6.30%, due 01/01/2003...................................................... 59,794
--------------
Mobile Co., AL, GO,
50,000 6.10%, due 02/01/2002, prerefunded 02/01/2000 at 102....................... 52,871
160,000 6.70%, due 02/01/2011, prerefunded 02/01/2000 at 102....................... 170,958
--------------
223,829
--------------
Mobile Co., AL., Board of Education Capital Outlay Warrants,
400,000 5.00%, due 03/01/2008...................................................... 412,376
--------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
==============================================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS-- 95.0% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Mobile Co., AL, Gas Tax Antic. Warrants Rev.,
$ 100,000 4.50%, due 02/01/2003...................................................... $ 100,976
--------------
Montgomery, AL, GO,
200,000 4.25%, due 05/01/1999, ETM................................................. 201,152
200,000 4.70%, due 05/01/2002...................................................... 204,064
500,000 5.10%, due 10/01/2008...................................................... 521,480
--------------
926,696
--------------
Montgomery, AL, Waterworks & Sanitation Rev.,
200,000 5.85%, due 03/01/2003...................................................... 213,598
400,000 5.60%, due 09/01/2009...................................................... 428,632
--------------
642,230
--------------
Montgomery Co., AL, GO,
100,000 5.20%, due 11/01/2006...................................................... 104,352
--------------
Mountain Brook, AL, Board of Education Capital Outlay Warrants,
405,000 4.80%, due 02/15/2011...................................................... 403,898
--------------
Muscle Shoals, AL, GO,
400,000 5.60%, due 08/01/2010...................................................... 427,020
--------------
Opelika, AL, GO,
100,000 4.60%, due 03/01/2003...................................................... 101,801
100,000 5.30%, due 07/01/2003...................................................... 105,128
--------------
206,929
--------------
Shelby Co., AL, GO,
205,000 5.20%, due 08/01/2000...................................................... 210,970
50,000 5.35%, due 08/01/2001...................................................... 52,010
--------------
262,980
--------------
Shelby Co., AL, Hospital Board Rev.,
35,000 6.60%, due 02/01/2001, ETM................................................. 37,296
25,000 6.60%, due 02/01/2002, ETM................................................. 27,084
40,000 6.60%, due 02/01/2003, ETM................................................. 44,028
--------------
108,408
--------------
Tuscaloosa, AL, Board of Education, GO,
300,000 4.625%, due 08/01/2001..................................................... 301,323
100,000 5.10%, due 02/01/2004...................................................... 104,135
--------------
405,458
--------------
Tuscaloosa, AL, Board of Education Special Tax Warrants,
75,000 5.70%, due 02/15/2005...................................................... 79,755
125,000 6.00%, due 02/15/2009...................................................... 134,805
--------------
214,560
--------------
University of Alabama General Fee Series A Rev.,
250,000 4.15%, due 10/01/1999...................................................... 251,317
50,000 5.00%, due 11/01/2000...................................................... 51,325
240,000 5.10%, due 10/01/2002...................................................... 249,271
400,000 5.25%, due 06/01/2010...................................................... 415,624
--------------
......................................................................... 967,537
--------------
Vestavia Hills, AL, Board of Education Capital Outlay Rev.,
55,000 5.25%, due 02/01/2004...................................................... 57,367
--------------
<PAGE>
<CAPTION>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
==============================================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS-- 95.0% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Vestavia Hills, AL, Warrants,
$ 125,000 4.90%, due 04/01/2005...................................................... $ 128,655
--------------
TOTAL ALABAMA (COST $18,209,517) ............................................ $ 18,940,692
--------------
<CAPTION>
==============================================================================================================
Shares MONEY MARKETS -- 3.9% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
779,351 Star Tax-Free Money Market Fund (Cost $779,351).............................. $ 779,351
-------------
TOTAL INVESTMENTS AT VALUE (COST $18,988,868)-- 98.9% ...................... $19,720,043
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.1% ................................ 218,253
--------------
NET ASSETS-- 100.0% ......................................................... $ 19,938,296
==============
ETM - Escrowed to maturity.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
================================================================================
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 series of The
Williamsburg Investment Trust (the Trust). The Trust, an open-end management
investment company registered 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 fixed income 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.
<PAGE>
Security transactions -- Security transactions are accounted for on trade date.
Cost of securities sold is determined 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 income 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.
The following information is based upon the federal income tax cost of portfolio
investments of each Fund as of March 31, 1998:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Government Government Alabama
Street Street Tax Free
Equity Fund Bond Fund Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized appreciation............................ $ 31,625,324 $ 744,768 $ 739,086
Gross unrealized depreciation............................ ( 229,352 ) ( 357,868 ) ( 7,911 )
--------------- --------------- ---------------
Net unrealized appreciation.............................. $ 31,395,972 $ 386,900 $ 731,175
--------------- --------------- ---------------
Federal income tax cost.................................. $ 38,594,955 $ 35,092,994 $ 18,988,868
=============== =============== ===============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
As of March 31, 1998, The Government Street Bond Fund and The Alabama Tax Free
Bond Fund had capital loss carryforwards for federal income tax purposes of
$434,110 and $198,936, respectively, which expire through the year 2006.
2. Investment Transactions
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $13,696,785 and $10,331,366, respectively, for The Government Street Equity
Fund, $9,890,780 and $3,220,454, respectively, for The Government Street Bond
Fund, and $2,686,769 and $436,170, 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% of its average daily net assets up to $100 million and .50% of such
assets in excess of $100 million. The Government Street Bond Fund pays the
Adviser a fee at an annual rate of .50% of its average daily net assets up to
$100 million and .40% of 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% of its
average daily net assets up to $100 million and .25% of such net assets in
excess of $100 million.
<PAGE>
The Adviser currently intends to limit the total operating expenses of The
Alabama Tax Free Bond Fund to .65% of its average daily net assets. Accordingly,
the Adviser voluntarily waived $18,821 of its investment advisory fees for the
Fund during the year ended March 31, 1998.
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
Countrywide Fund Services, Inc. (CFS), CFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, CFS receives a monthly fee from The
Government Street Equity Fund at an annual rate of .20% of its average daily net
assets up to $25 million; .175% of the next $25 million of such assets; and .15%
of such net assets in excess of $50 million. From The Government Street Bond
Fund, CFS receives a monthly fee of .075% of its average daily net assets up to
$200 million and .05% of such assets in excess of $200 million. From The Alabama
Tax Free Bond Fund, CFS receives a monthly fee of .15% of its average daily net
assets up to $200 million and .10% of 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, postage, supplies and
costs of pricing the Funds' portfolio securities.
Certain officers of the Trust are also officers of CFS.
<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, 1998, and the
related statements of operations for the year then ended, 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, 1998 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 Government Street Equity Fund, The Government Street Bond Fund
and The Alabama Tax Free Bond Fund, as of March 31, 1998, 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 24, 1998
<PAGE>
The Flippin, Bruce and 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
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
800-443-4249
Legal Counsel
Sullivan & Worcester LLP
One Post Office Square
Boston, Massachusetts 02109
Officers
John M. Flippin, President
John T. Bruce, Vice President
and Portfolio Manager
R. Gregory Porter, III, Vice President
Trustees
Austin Brockenbrough, III
John T. Bruce
Charles M. Caravati, Jr. M.D.
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
Fred T. Tattersall
Erwin H. Will, Jr.
Samuel B. Witt, III
LOGO:
THE FBP
FLIPPIN, BRUCE & PORTER
FUNDS
Annual Report
March 31, 1998
FBP Contrarian Equity Fund
FBP Contrarian Balanced Fund
<PAGE>
Letter to Shareholders May 21, 1998
================================================================================
We are pleased to report on the progress of your Funds and their
investments for the fiscal year ended March 31,1998. 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 11.4% 38.9%
FBP Contrarian Balanced Fund 8.6% 30.2%
Review and Outlook
Returns from equities over the past year have been nothing short of
phenomenal. The S&P 500 Index, a measure of large companies, returned 48.0% with
dividends reinvested. The Value Line Index, a broader measure of companies,
returned 34.8%.
Our markets continued to rise as a result of the best economic and
fundamental factors experienced in many years. The lowest inflation since the
early 60's, strong corporate profit growth and new money flow into stocks were
the drivers. Valuation of stocks is clearly high, with the price earnings ratio
on the S&P 500 Index at 23 times 1998 estimated earnings. This level is
justified by current and expected economic and fundamental conditions although
we question whether the price earnings ratio can move higher from here.
Therefore, we expect positive but somewhat lower returns going forward supported
by earnings increases, continued new money flows and stock selection.
The U.S. economy remains quite strong, with real GDP rising 4.2% during the
first quarter of 1998. Corporate profit growth was about flat as earnings were
depressed by declines in energy, technology and a strong dollar. Over the
balance of the year, we expect these factors to mitigate and such profits to
rise 6% to 8%. The Federal budget, which ran a $300 billion deficit just six
years ago, will report a surplus this year and is estimated to do so for the
next several years. Wages are growing at a rate in excess of 4% due to the
lowest unemployment in many years, causing some concern. However, inflation
should remain calm due to productivity gains, global competition and the dual
effects of lower import prices and reduced exports resulting from problems in
Asia.
The well known demographic trend of our aging population, or "baby boom
generation", continues to provide fuel for the markets through increased savings
that flow to stocks and bonds. For example, net inflows into equity mutual funds
have been $20 to $30 billion per month. This trend of the increasing percentage
of "baby boomers" to our total population is projected to continue until the
middle of the next decade.
We remain focused on our value/contrarian investment approach. While it has
become very difficult to find new opportunities in the biggest companies, we
continue to find attractive investments in more mid-sized companies with modest
valuations that are out of favor with Wall Street. Novell, Shaw Industries and
Paging Network are examples of such companies purchased over the past year. The
Funds benefited from four companies affected by takeover offers over the past
year: Tandem Computer and Digital Equipment by Compaq, PHH Group by Cendant and
Pennzoil by Union Pacific Resources.
Comparative Charts
Performance for each Fund is compared on the next page to the most
appropriate broad-based index, the S&P 500, an unmanaged index of 500 large
common stocks. Over time, this index has outpaced the FBP Contrarian Balanced
Fund which maintains at least 25% bonds. Balanced funds have the growth
potential to outpace inflation, but they will typically be outperformed by a
100% stock index over the long term because of the bond portion of their
portfolios. However, the advantage of the bond portion is that it can make the
return and principal of a balanced fund more stable than a portfolio completely
invested in stocks. Results are also compared to the Consumer Price Index, a
measure of inflation.
Thank you for your continued confidence and investment in The Flippin,
Bruce & Porter Funds.
/s/ John T. Bruce
John T. Bruce, CFA
Vice President-Portfolio Manager
<PAGE>
FBP Contrarian Equity Fund
Comparison of the Change in Value of a $10,000 Investment in the FBP Contrarian
Equity Fund, the Standard & Poor's 500 Index and the Consumer Price Index
Line Chart:
FBP Contrarian Standard & Poor's
Equity Fund 500 Index Consumer Price Index
10000 10000 10000
Sept 93 10305 10299 10040
10510 10538 10110
10308 10139 10161
10379 10181 10222
Sept 94 11141 10678 10314
10996 10676 10376
11702 11716 10460
12798 12834 10554
Sept 95 13890 13854 10596
14340 14688 10649
15158 15477 10735
15846 16171 10853
Sept 96 16229 16671 10901
17604 18061 10991
17833 18545 11068
20318 21783 11088
Sept 97 22241 23414 11137
22079 24086 11206
24770 27446 11220
FBP Contrarian Equity Fund
Average Annual Total Returns
1 Year Since Inception*
38.90% 21.43%
*Initial public offering of shares was July 30, 1993.
Past performance is not predeictive of future performance.
FBP Contrarian Balanced Fund
Comparison of the Change in Value of a $10,000 Investment in the FBP Contrarian
Balanced Fund, the Standard & Poor's 500 Index and the Consumer Price Index
Line Chart:
FBP Contrarian Standard & Poor's
Balanced Fund 500 Index Consumer Price Index
10000 10000 10000
Sept 89 9892 11071 10075
9897 11299 10176
9867 10960 10380
10059 11648 10474
Sept 90 8749 10047 10653
9118 10948 10835
10555 12539 10933
10683 12510 10977
Sept 91 11130 13179 11043
11607 14284 11142
12214 13922 11221
12434 14187 11311
Sept 92 12545 14634 11390
13275 15370 11481
13772 16040 11585
13875 16117 11654
Sept 93 14448 16533 11701
14598 16916 11783
14306 16275 11842
14324 16343 11913
Sept 94 15015 17141 12020
14870 17138 12093
15814 18807 12190
17031 20602 12300
Sept 95 18126 22240 12349
18689 23579 12411
19429 24844 12510
20089 25959 12649
Sept 96 20431 26762 12704
21784 28992 12809
21983 29769 12898
24490 34967 12923
Sept 97 26357 37586 12979
26278 38665 13060
28626 44059 13075
FBP Contrarian Balanced Fund
Average Annual Total Returns
1 Year 5 Years Since Inception*
30.22% 15.76% 12.78%
*Initial public offering of shares was July 3, 1989.
Past performance is not predictive of future performance.
<PAGE>
<TABLE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
=============================================================================================================
Shares COMMON STOCKS -- 92.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Business Information Services -- 0.9%
9,000 Dun & Bradstreet Corporation............................................... $ 307,688
---------------
Chemicals -- 4.7%
7,000 Dow Chemical Company....................................................... 680,750
11,500 Ethyl Corporation.......................................................... 92,000
16,400 Great Lakes Chemical Corporation........................................... 885,600
---------------
1,658,350
---------------
Commercial Banking -- 11.3%
11,000 Banc One Corporation....................................................... 695,750
6,000 Chase Manhattan Corporation................................................ 809,250
6,500 Citicorp................................................................... 923,000
6,190 First Chicago NBD Corporation.............................................. 545,494
14,000 NationsBank Corporation.................................................... 1,021,125
---------------
3,994,619
---------------
Communications -- 4.0%
11,500 GTE Corporation............................................................ 688,562
8,000 Harris Corporation......................................................... 417,000
20,000 Paging Network, Inc.(a) ................................................... 307,500
---------------
1,413,062
---------------
Computers/Computer Technology Services -- 9.9%
10,500 Compaq Computer Corporation ............................................... 271,688
16,000 Electronic Data Systems Corporation........................................ 734,000
8,000 Hewlett-Packard Company.................................................... 507,000
14,000 International Business Machines Corporation ............................... 1,454,250
50,000 Novell, Inc.(a) ........................................................... 535,938
---------------
3,502,876
---------------
Consumer Goods & Services -- 5.6%
7,900 Owens Corning.............................................................. 283,906
19,000 Philip Morris Companies, Inc............................................... 792,062
40,000 Shaw Industries, Inc....................................................... 587,500
10,000 UST, Inc................................................................... 322,500
---------------
1,985,968
---------------
Drugs/Medical Equipment -- 13.6%
14,800 Allergan, Inc.............................................................. 562,400
12,500 Amgen, Inc.(a) ............................................................ 760,937
8,000 Bristol-Myers Squibb Company .............................................. 834,500
6,000 Johnson & Johnson ........................................................ 439,875
25,000 Mallinckrodt, Inc.......................................................... 987,500
5,000 Merck & Company, Inc.(b) ................................................. 641,875
13,000 Pharmacia & Upjohn, Inc.................................................... 568,750
---------------
4,795,837
---------------
Durable Goods -- 6.2%
16,000 Digital Equipment Corporation(a) ......................................... 837,000
4,000 General Electric Company................................................... 344,750
12,500 Genuine Parts Company...................................................... 476,562
17,000 Waste Management, Inc.(b) ................................................ 523,812
---------------
2,182,124
---------------
<PAGE>
<CAPTION>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Shares COMMON STOCKS -- 92.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electricity -- 2.1%
20,800 Unicom Corporation ........................................................ $ 728,000
---------------
Finance -- 4.1%
16,800 SLM Holding Corporation.................................................... 732,900
50,000 United Dominion Realty..................................................... 725,000
---------------
1,457,900
---------------
Hotels -- 1.6%
26,200 Circus Circus Enterprises, Inc.(a)(b) ..................................... 550,200
---------------
Insurance -- 3.2%
8,800 Aetna Life & Casualty Company ............................................. 734,250
4,400 Marsh & McLennan Companies, Inc............................................ 384,175
---------------
........................................................................ 1,118,425
---------------
Oil & Oil Drilling -- 4.9%
8,000 Equitable Resources, Inc................................................... 266,000
24,000 Oryx Energy Company(a) .................................................... 624,000
5,000 Pennzoil Company........................................................... 323,125
7,000 Schlumberger Limited(b) .................................................. 530,250
---------------
........................................................................ 1,743,375
---------------
Paper & Forest Products -- 1.2%
7,300 Weyerhaeuser Company....................................................... 412,450
---------------
Photographical Products -- 2.6%
14,000 Eastman Kodak Company...................................................... 908,250
---------------
Printing -- 1.9%
17,000 R. R. Donnelley & Sons Company............................................. 698,062
---------------
Retail Stores -- 12.2%
27,000 Apple South, Inc........................................................... 399,938
15,000 Circuit City Stores, Inc.(b) .............................................. 641,250
16,000 Cracker Barrel Old Country Store, Inc...................................... 640,000
50,000 K-Mart Corporation(a)(b) .................................................. 834,375
30,000 Toys R Us, Inc.(a) ........................................................ 901,875
18,200 Wal-Mart Stores, Inc....................................................... 924,788
---------------
........................................................................ 4,342,226
---------------
Transportation -- 2.0%
10,000 FDX Corporation(a) ....................................................... 711,250
---------------
Travel & Investment Services -- 0.8%
3,000 American Express Company................................................... 275,438
---------------
Total Common Stocks (Cost $22,713,473) ................................... $ 32,786,100
---------------
<PAGE>
<CAPTION>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Face
Amount REPURCHASE AGREEMENTS(c) -- 6.3% Value
- -------------------------------------------------------------------------------------------------------------
$ 2,212,000 Star Bank N.A., 5.25%, dated 03/31/98, due 04/01/98,
repurchase proceeds $2,212,323 (Cost $2,212,000)........................... $ 2,212,000
---------------
Total Investments and Repurchase Agreements at Value-- 99.1% .............. $ 34,998,100
Other Assets in Excess of Liabilities-- 0.9% .............................. 324,216
---------------
Net Assets-- 100.0% ....................................................... $ 35,322,316
===============
(a) Non-income producing security.
(b) Security covers a call option.
(c) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985.
The Fund's pro-rata interest in the collateral at March 31, 1998 was
$2,286,970.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
============================================================================================================
FBP CONTRARIAN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
March 31, 1998
============================================================================================================
Market
Value of Premiums
Contracts COVERED CALL OPTIONS Options Received
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Circuit City Stores, Inc.,
21 10/17/98 at $45...................................... $ 7,350 $ 13,303
Circus Circus Enterprises, Inc.,
20 09/19/98 at $25...................................... 2,000 7,170
K-Mart Corporation,
25 09/19/98 at $15...................................... 6,094 6,630
Merck & Company, Inc.,
12 07/18/98 at $130..................................... 9,450 11,652
Schlumberger Limited,
20 08/22/98 at $80...................................... 10,750 12,919
Waste Management, Inc.,
27 06/20/98 at $50...................................... 9,450 11,012
-------------- ---------------
..................................................... $ 45,094 $ 62,686
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
=============================================================================================================
Shares COMMON STOCKS -- 68.2% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Business Information Services -- 0.5%
9,000 Dun & Bradstreet Corporation............................................... $ 307,688
---------------
Chemicals -- 2.8%
8,000 Dow Chemical Company....................................................... 778,000
20,000 Ethyl Corporation.......................................................... 160,000
11,700 Great Lakes Chemical Corporation........................................... 631,800
---------------
1,569,800
---------------
Commercial Banking -- 8.0%
14,949 Banc One Corporation....................................................... 945,524
7,500 Chase Manhattan Corporation................................................ 1,011,562
6,125 Citicorp .................................................................. 869,750
5,430 First Chicago NBD Corporation.............................................. 478,519
16,000 NationsBank Corporation.................................................... 1,167,000
---------------
4,472,355
---------------
Communications -- 4.1%
15,000 GTE Corporation............................................................ 898,125
17,000 Harris Corporation......................................................... 886,125
32,000 Paging Network, Inc.(a) ................................................... 492,000
---------------
2,276,250
---------------
Computers/Computer Technology Services -- 7.3%
11,550 Compaq Computer Corporation ............................................... 298,856
18,000 Electronic Data Systems Corporation........................................ 825,750
6,100 Hewlett-Packard Company.................................................... 386,588
20,200 International Business Machines Corporation .............................. 2,098,275
45,000 Novell, Inc.(a) ........................................................... 482,344
---------------
4,091,813
---------------
Consumer Goods & Services -- 3.1%
7,200 Owens Corning.............................................................. 258,750
19,000 Philip Morris Companies, Inc. ............................................. 792,062
29,000 Shaw Industries, Inc....................................................... 425,938
8,500 UST, Inc. ................................................................. 274,125
---------------
1,750,875
---------------
Drugs/Medical Equipment -- 9.4%
19,000 Allergan, Inc.............................................................. 722,000
14,000 Amgen, Inc.(a) ............................................................ 852,250
6,000 Bristol-Myers Squibb Company .............................................. 625,875
14,600 Johnson & Johnson ......................................................... 1,070,362
18,000 Mallinckrodt, Inc.......................................................... 711,000
4,200 Merck & Company, Inc.(b) .................................................. 539,175
16,400 Pharmacia & Upjohn, Inc.................................................... 717,500
---------------
5,238,162
---------------
Durable Goods -- 4.8%
15,000 Digital Equipment Corporation(a) .......................................... 784,688
11,200 General Electric Company................................................... 965,300
11,950 Genuine Parts Company...................................................... 455,594
16,000 Waste Management, Inc.(b) ................................................. 493,000
---------------
2,698,582
---------------
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Shares COMMON STOCKS -- 68.2% Value
- -------------------------------------------------------------------------------------------------------------
Electricity -- 1.7%
27,000 Unicom Corporation......................................................... $ 945,000
---------------
Finance -- 3.4%
26,950 SLM Holding Corporation ................................................... 1,175,694
50,000 United Dominion Realty..................................................... 725,000
---------------
1,900,694
---------------
Insurance -- 3.9%
8,300 Aetna Life & Casualty Company ............................................. 692,531
4,912 American International Group .............................................. 618,605
10,000 Marsh & McLennan Companies, Inc............................................ 873,125
---------------
2,184,261
---------------
Hotels -- 1.2%
31,000 Circus Circus Enterprises, Inc.(a)(b) .................................... 651,000
---------------
Oil & Oil Drilling -- 3.4%
6,800 Equitable Resources, Inc................................................... 226,100
28,000 Oryx Energy Company(a) .................................................... 728,000
5,600 Pennzoil Company........................................................... 361,900
8,000 Schlumberger Limited(b) ................................................... 606,000
---------------
1,922,000
---------------
Paper & Forest Products -- 1.0%
10,000 Weyerhaeuser Company....................................................... 565,000
---------------
Photographical Products -- 1.3%
11,000 Eastman Kodak Company ..................................................... 713,625
---------------
Printing -- 1.2%
17,000 R. R. Donnelley & Sons Company............................................. 698,062
---------------
Retail Stores -- 8.0%
33,300 Apple South, Inc........................................................... 493,256
10,400 Circuit City Stores, Inc.(b) .............................................. 444,600
18,300 Cracker Barrel Old Country Store, Inc...................................... 732,000
68,000 K-Mart Corporation(a)(b) .................................................. 1,134,750
19,000 Toys R Us, Inc.(a) ........................................................ 571,187
21,500 Wal-Mart Stores, Inc....................................................... 1,092,469
---------------
........................................................................ 4,468,262
---------------
Transportation -- 1.7%
13,000 FDX Corporation(a) ........................................................ 924,625
---------------
Travel & Investment Services -- 1.4%
8,300 American Express Company .................................................. 762,044
---------------
Total Common Stocks (Cost $19,608,070) ................................... $ 38,140,098
---------------
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Par Value U.S. GOVERNMENT OBLIGATIONS-- 16.4% Value
- -------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes -- 16.4%
$ 500,000 5.375%, due 05/31/98.................................................... $ 499,844
500,000 5.875%, due 08/15/98.................................................... 500,625
1,000,000 5.50%, due 02/28/99..................................................... 999,375
500,000 6.75%, due 06/30/99..................................................... 507,032
1,000,000 5.75%, due 09/30/99..................................................... 1,001,875
500,000 7.75%, due 01/31/00..................................................... 518,281
1,000,000 5.875%, due 06/30/00.................................................... 1,005,625
500,000 5.625%, due 02/28/01.................................................... 499,532
750,000 6.125%, due 12/31/01.................................................... 760,781
500,000 6.625% due 04/30/02..................................................... 516,719
500,000 6.375%, due 08/15/02.................................................... 513,281
500,000 6.25%, due 02/15/03..................................................... 512,031
500,000 7.25%, due 05/15/04..................................................... 539,532
750,000 7.00%, due 07/15/06..................................................... 810,000
---------------
Total U.S. Government Obligations (Cost $8,974,920) ....................... $ 9,184,533
---------------
<PAGE>
<CAPTION>
=============================================================================================================
Par Value CORPORATE BONDS -- 10.6% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Finance -- 4.4%
Bankers Trust New York Corporation,
$ 750,000 7.375%, due 05/01/08.................................................... $ 779,709
Green Tree Financial Corporation,
750,000 7.55%, due 10/15/1999................................................... 757,078
Macsaver Financial Services,
500,000 7.60%, due 08/01/2007................................................... 461,643
Signet Banking Corporation,
150,000 9.625%, due 06/01/99.................................................... 155,835
United Dominion Realty,
300,000 7.25%, due 04/01/99..................................................... 300,610
---------------
2,454,875
---------------
Industrial -- 1.5%
Baxter International, Inc.,
75,000 9.25%, due 12/15/99..................................................... 78,787
Dayton Hudson Corporation,
52,000 9.875%, due 06/01/17.................................................... 54,689
Hilton Hotels Corporaton,
300,000 7.70%, due 07/15/02..................................................... 306,842
USG Corporation,
375,000 8.75%, due 03/01/17..................................................... 390,000
---------------
830,318
---------------
<PAGE>
<CAPTION>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Par Value CORPORATE BONDS -- 10.6% Value
- -------------------------------------------------------------------------------------------------------------
Utilities -- 4.7%
Dayton Power & Light Inc.,
$ 500,000 8.40%, due 12/01/22..................................................... $ 533,823
Niagara Mohawk Power,
500,000 9.50%, due 03/01/21..................................................... 531,561
US WEST Communications Group,
750,000 7.30%, due 01/15/07..................................................... 787,948
West Penn Power Company,
750,000 8.875%, due 02/01/21.................................................... 787,930
---------------
........................................................................ 2,641,262
---------------
Total Corporate Bonds (Cost $5,726,928) .................................. $ 5,926,455
---------------
Total Investments at Value (Cost $34,309,918)-- 95.2% .................... $ 53,251,086
---------------
<CAPTION>
=============================================================================================================
Face
Amount REPURCHASE AGREEMENTS(c) -- 4.6% Value
- -------------------------------------------------------------------------------------------------------------
$ 2,576,000 Star Bank N.A., 5.25%, dated 03/31/98, due 04/01/98,
repurchase proceeds $2,576,376 (Cost $2,576,000)........................ $ 2,576,000
---------------
Total Investments and Repurchase Agreements at Value-- 99.8% .............. $ 55,827,086
Other Assets in Excess of Liabilities -- 0.2% ............................. 113,243
---------------
Net Assets-- 100.0% ....................................................... $ 55,940,329
===============
(a) Non-income producing security.
(b) Security covers a call option.
(c) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985.
The Fund's pro-rata interest in the collateral at March 31, 1998 was
$2,634,358.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
March 31, 1998
============================================================================================================
Market
Value of Premiums
Contracts COVERED CALL OPTIONS Options Received
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Circuit City Stores, Inc.,
14 10/17/98 at $45...................................... $ 4,900 $ 8,869
Circus Circus Enterprises, Inc.,
30 09/19/98 at $25...................................... 3,000 10,755
K-Mart Corporation,
35 09/19/98 at $15...................................... 8,531 9,282
Merck & Company, Inc.,
10 07/18/98 at $130..................................... 7,875 9,705
Schlumberger Limited,
25 08/22/98 at $80...................................... 13,438 16,149
Waste Management, Inc.,
30 06/20/98 at $50...................................... 10,500 12,236
-------------- ---------------
$ 48,244 $ 66,996
-------------- ---------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1998
<CAPTION>
=============================================================================================================
FBP FBP
Contrarian Contrarian
Equity Balanced
Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost................................................. $ 22,713,473 $ 34,309,918
============== ===============
At value (Note 1)................................................... $ 32,786,100 $ 53,251,086
Investments in repurchase agreements (Note 1)......................... 2,212,000 2,576,000
Cash.................................................................. 530 314
Interest receivable................................................... 322 241,777
Dividends receivable.................................................. 51,677 58,441
Receivable for capital shares sold.................................... 404,817 7,534
Other assets.......................................................... 398 4,803
-------------- ---------------
TOTAL ASSETS........................................................ 35,455,844 56,139,955
-------------- ---------------
LIABILITIES
Dividends payable..................................................... 10,289 16,923
Distributions payable................................................. 43,348 18,261
Payable for capital shares redeemed................................... 1,500 66,684
Accrued advisory fees (Note 3)........................................ 21,548 34,971
Accrued administration fees (Note 3).................................. 5,475 8,430
Other accrued expenses................................................ 6,274 6,113
Covered call options, at value (Notes 1 and 4)
(premiums received $62,686 and $66,996, respectively) .............. 45,094 48,244
-------------- ---------------
TOTAL LIABILITIES................................................... 133,528 199,626
-------------- ---------------
NET ASSETS .............................................................. $ 35,322,316 $ 55,940,329
============== ===============
Net assets consist of:
Paid-in capital....................................................... $ 25,230,793 $ 36,976,286
Undistributed net investment income................................... 1,068 4,103
Accumulated net realized gains from security transactions............. 236 20
Net unrealized appreciation on investments............................ 10,090,219 18,959,920
-------------- ---------------
Net assets............................................................... $ 35,322,316 $ 55,940,329
============== ===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value)............................................. 1,646,962 2,931,941
============== ===============
Net asset value, offering price and redemption price per share (Note 1).. $ 21.45 $ 19.08
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF OPERATIONS
Year Ended March 31, 1998
<CAPTION>
=============================================================================================================
FBP FBP
Contrarian Contrarian
Equity Balanced
Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest.............................................................. $ 142,226 $ 1,097,392
Dividends............................................................. 390,033 544,381
-------------- ---------------
TOTAL INVESTMENT INCOME............................................. 532,259 1,641,773
-------------- ---------------
EXPENSES
Investment advisory fees (Note 3)..................................... 184,384 365,477
Administration fees (Note 3).......................................... 48,798 91,365
Registration fees..................................................... 14,105 11,191
Professional fees..................................................... 9,021 12,521
Printing of shareholder reports....................................... 5,144 5,629
Custodian fees........................................................ 4,638 6,640
Trustees' fees and expenses........................................... 5,405 5,405
Pricing costs......................................................... 1,361 4,406
Other expenses........................................................ 3,072 4,161
-------------- ---------------
TOTAL EXPENSES...................................................... 275,928 506,795
-------------- ---------------
NET INVESTMENT INCOME ................................................... 256,331 1,134,978
-------------- ---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions......................... 691,750 2,146,818
Net realized gains on option contracts written........................ 11,978 31,530
Net change in unrealized appreciation/depreciation on investments..... 6,925,224 9,325,106
-------------- ---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ........................ 7,628,952 11,503,454
-------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .............................. $ 7,885,283 $ 12,638,432
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended March 31, 1998 and 1997
<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,
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income....................... $ 256,331 $ 190,264 $ 1,134,978 $ 1,042,511
Net realized gains on:
Security transactions..................... 691,750 309,235 2,146,818 1,386,944
Option contracts written.................. 11,978 11,061 31,530 41,494
Net change in unrealized appreciation/
depreciation on investments............... 6,925,224 1,419,505 9,325,106 2,379,725
------------ -------------- ------------- --------------
Net increase in net assets from operations..... 7,885,283 1,930,065 12,638,432 4,850,674
------------ -------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.................. ( 256,571) ( 190,839 ) ( 1,138,576 ) ( 1,041,994 )
From net realized gains..................... ( 865,431) ( 303,199 ) ( 2,862,386 ) ( 1,212,659 )
------------ -------------- ------------- --------------
Decrease in net assets from
distributions to shareholders............... ( 1,122,002) ( 494,038 ) ( 4,000,962 ) ( 2,254,653 )
------------ -------------- ------------- --------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................... 12,609,930 7,247,789 5,859,836 5,369,393
Net asset value of shares issued in reinvestment
of distributions to shareholders.......... 963,147 415,382 3,827,435 2,148,852
Payments for shares redeemed................ ( 1,354,310) ( 1,848,844 ) ( 3,238,764 ) ( 4,900,645 )
------------ -------------- ------------- --------------
Net increase in net assets from
capital share transactions.................. 12,218,767 5,814,327 6,448,507 2,617,600
------------ -------------- ------------- --------------
TOTAL INCREASE IN NET ASSETS .................. 18,982,048 7,250,354 15,085,977 5,213,621
NET ASSETS
Beginning of year........................... 16,340,268 9,089,914 40,854,352 35,640,731
------------ -------------- ------------- --------------
End of year - (including undistributed net
investment income of $1,068, $1,308,
$4,103 and $7,701, respectively).......... $ 35,322,316 $ 16,340,268 $55,940,329 $40,854,352
============ ============== ============= ==============
Capital share activity:
Sold........................................ 651,600 467,711 323,989 346,188
Reinvested.................................. 48,841 27,437 211,834 140,100
Redeemed.................................... ( 69,562) ( 118,787 ) ( 177,851 ) ( 310,312 )
------------ -------------- ------------- --------------
Net increase in shares outstanding.......... 630,879 376,361 357,972 175,976
Shares outstanding, beginning of year....... 1,016,083 639,722 2,573,969 2,397,993
------------ -------------- ------------- --------------
Shares outstanding, end of year............. 1,646,962 1,016,083 2,931,941 2,573,969
============ ============== ============= ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
FBP CONTRARIAN EQUITY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
=============================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout
Each Period
=============================================================================================================
July 30,
Years Ended March 31, 1993(a) To
March 31,
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 16.08 $ 14.21 $ 11.21 $ 10.15 $ 10.00
----------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.19 0.22 0.24 0.21 0.12
Net realized and unrealized gains on investments 5.98 2.24 3.05 1.14 0.19
----------- ---------- ---------- ---------- ----------
Total from investment operations................ 6.17 2.46 3.29 1.35 0.31
----------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income......... ( 0.19 ) ( 0.22) ( 0.24) ( 0.23) ( 0.10)
Distributions from net realized gains........ ( 0.61 ) ( 0.37) ( 0.05) ( 0.06) ( 0.06)
----------- ---------- ---------- ---------- ----------
Total distributions............................. ( 0.80 ) ( 0.59) ( 0.29) ( 0.29) ( 0.16)
----------- ---------- ---------- ---------- ----------
Net asset value at end of period................ $ 21.45 $ 16.08 $ 14.21 $ 11.21 $ 10.15
=========== ========== ========== ========== ==========
Total return.................................... 38.90% 17.65% 29.54% 13.52% 4.59%(c)
=========== ========== ========== ========== ==========
Net assets at end of period (000's)............. $ 35,322 $ 16,340 $ 9,090 $ 5,323 $ 3,135
=========== ========== ========== ========== ==========
Ratio of net expenses to average net
assets(b)..................................... 1.12% 1.21% 1.25% 1.25% 1.25%(c)
Ratio of net investment income to average
net assets.................................... 1.04% 1.50% 1.89% 2.15% 1.98%(c)
Portfolio turnover rate......................... 10% 9% 12% 9% 7%
Average commission rate per share............... $ 0.0852 $ 0.0925 $ -- $ -- $ --
(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 1.25%, 1.67%, 2.27% and
3.10%(c) for the periods ended March 31, 1997, 1996, 1995 and 1994,
respectively.
(c) Annualized.
See accompanying notes to financial statements.
</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,
- -------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 15.87 $ 14.86 $ 12.80 $ 12.19 $ 12.10
----------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.41 0.42 0.43 0.38 0.33
Net realized and unrealized gains
on investments............................. 4.26 1.49 2.44 0.87 0.15
----------- ---------- ---------- ---------- ----------
Total from investment operations................ 4.67 1.91 2.87 1.25 0.48
----------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income......... ( 0.41 ) ( 0.42) ( 0.43) ( 0.39) ( 0.32)
Distributions from net realized gains........ ( 1.05 ) ( 0.48) ( 0.38) ( 0.25) ( 0.07)
----------- ---------- ---------- ---------- ----------
Total distributions............................. ( 1.46 ) ( 0.90) ( 0.81) ( 0.64) ( 0.39)
----------- ---------- ---------- ---------- ----------
Net asset value at end of year.................. $ 19.08 $ 15.87 $ 14.86 $ 12.80 $ 12.19
=========== ========== ========== ========== ==========
Total return.................................... 30.22% 13.15% 22.86% 10.54% 3.88%
=========== ========== ========== ========== ==========
Net assets at end of year (000's)............... $ 55,940 $ 40,854 $ 35,641 $ 25,976 $ 21,969
=========== ========== ========== ========== ==========
Ratio of net expenses to average net assets..... 1.04% 1.08% 1.17% 1.17%(a) 1.25%(b)
Ratio of net investment income to average
net assets.................................... 2.33% 2.65% 3.04% 3.10% 2.64%
Portfolio turnover rate......................... 21% 24% 17% 14% 28%
Average commission rate per share............... $ 0.0630 $ 0.0779 $ -- $ -- $ --
(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 ratio
of expenses to average net assets would have been 1.36% for the year ended
March 31, 1994.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
================================================================================
1. Significant Accounting Policies
The FBP Contrarian Equity Fund and the FBP Contrarian Balanced Fund (the Funds)
are no-load, diversified series of the Williamsburg Investment Trust (the
Trust), an open-end management investment company registered 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 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 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.
Cost of securities sold is determined on a specific identification basis.
<PAGE>
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 income 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.
The following information is based upon the federal income tax cost of portfolio
investments of each Fund as of March 31, 1998:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
FBP Contrarian FBP Contrarian
Equity Fund Balanced Fund
- -------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized appreciation............. $ 10,236,576 $ 19,134,146
Gross unrealized depreciation............. ( 146,357 ) ( 174,226 )
-------------- ---------------
Net unrealized appreciation............... $ 10,090,219 $ 18,959,920
============== ===============
Federal income tax cost................... $ 22,713,473 $ 34,309,918
============== ===============
- -------------------------------------------------------------------------------
</TABLE>
2. Investment Transactions
During the year ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $13,820,179 and $2,143,173, respectively, for the FBP Contrarian Equity Fund
and $14,273,947 and $9,747,261, 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% of its
average daily net assets up to $250 million; .65% of the next $250 million of
such net assets; and .50% of such net assets in excess of $500 million. Certain
trustees and officers of the Trust are also officers of the Adviser.
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
Countrywide Funds Services, Inc. (CFS), CFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, CFS 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 for
each Fund. In addition, each Fund pays out-of-pocket expenses including, but not
limited to, postage, supplies and costs of pricing the Funds' portfolio
securities. Certain officers of the Trust are also officers of CFS.
4. Covered Call Options
A summary of covered call option contracts during the year ended March 31, 1998
is as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
FBP Contrarian FBP Contrarian
Equity Fund Balanced Fund
Number of Option Number of Option
Options Premiums Options Premiums
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at beginning of year....... 37 $ 18,173 144 $ 78,289
Options written................................ 125 62,686 159 77,205
Options cancelled in closing purchase
transactions................................ -- -- ( 15 ) ( 6,689 )
Options expired................................ ( 5) ( 4,522 ) ( 30 ) ( 14,004 )
Options exercised.............................. ( 32) ( 13,651 ) ( 114 ) ( 67,805 )
------------ -------------- ------------- --------------
Options outstanding at end of year............. 125 $ 62,686 144 $ 66,996
============ ============== ============= ==============
</TABLE>
- --------------------------------------------------------------------------------
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, 1998, and the related statements of operations for
the year then ended, 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, 1998 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 FBP Contrarian Equity Fund and the FBP Contrarian Balanced Fund
as of March 31, 1998, 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.
Philadelphia, Pennsylvania
April 24, 1998 Tait, Weller & Baker
<PAGE>
THE DAVENPORT EQUITY FUND
Investment Adviser
Davenport & Company LLC
One James Center
901 East Cary Street
Richmond, Virginia 23219-4037
1-800-281-3217
Administrator
Countrywide Fund Services, Inc.
312 Walnut Street
P.O. Box 5354
Cincinnati, Ohio 45201-5354
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
Independent Auditors
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, Pennsylvania 19102
Legal Counsel
Sullivan & Worcester LLP
One Post Office Square
Boston, Massachusetts 02109
Board of Trustees
Austin Brockenbrough III
John T. Bruce
Charles M. Caravati, Jr. M.D.
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
Fred T. Tattersall
Erwin H. Will, Jr.
Samuel B. Witt III
Officers
Joseph L. Antrim III, President
Coleman Wortham III, Vice President
J. Lee Keiger III, Vice President
John P. Ackerly IV, Vice President
LOGO:
DAVENPORT
EQUITY FUND
ANNUAL REPORT
March 31, 1998
<PAGE>
LETTER TO SHAREHOLDERS
================================================================================
We are pleased to report that The Davenport Equity Fund began on January 15,
1998, at $10.00 a share and ended its first short fiscal year on March 31,1998,
at $11.14 for a gain of 11.4%. Despite a market that just a few months ago had
investors preoccupied with the effects of the Asian currency crisis, possible
deflation/recession and slowing corporate profits, your Fund has gotten off to a
strong start.
The market was driven to new highs by a narrow list of large multi-national and
technology-related companies. In fact, the top five stocks in the S&P 500 were
responsible for approximately 18% of the market's performance. Investors bid up
the prices of established growth companies, taking comfort in their global
strength, strong financial position and their ability to produce predictable
results. Fortunately your Fund owned a number of these companies: General
Electric, Schering-Plough, Merck and Coca-Cola to name a few.
We consider these types of well-known large growth stocks as a core holding in
The Davenport Equity Fund. Over the years, the management of these companies has
proven their ability to increase sales, earnings and their stock prices. Given
these stocks' higher than average growth rates and their relative valuation,
which in many cases is far from historical peaks, we believe they represent
strong long-term holdings.
During the period your Fund initiated positions in Lockheed Martin, Philips
Electronics, and Chesapeake. As primarily a value manager, we believe the stock
prices of these companies represent good value in a market that, by some
traditional valuation measures, seems a little frothy. In addition, management
of each of these companies has demonstrated their commitment to increasing
shareholder value. A few other large value-oriented stocks in your Fund include
Mobil, DuPont, and Ford Motor Co.
In addition to owning large value and growth-oriented stocks, your Fund owns a
number of smaller companies that operate in niche markets. Typically, Davenport
& Company LLC's Research Department has followed the smaller companies in your
Fund for more than a decade. These securities may not be as familiar to the
investing public, but are very well known to us at Davenport. Stocks such as
Markel, Tredegar and Owens & Minor have been staple holdings in our Davenport
Asset Management Program for years.
We believe that combining a healthy mix of large value and growth stocks,
carefully balanced with a sprinkling of smaller companies operating in niche
markets, should enable your Fund to incur less risk and achieve consistent
performance over a market cycle. The most common theme among the diverse
holdings in The Davenport Equity Fund is strong management. The cornerstone of
our investment philosophy is investing in well-run companies that have a history
of earnings increases, sales growth, a strong balance sheet and a proven
management team.
The five members of the Investment Policy Committee who manage your Fund will
continue to insist on finding value in every stock that we buy, controlling risk
through diversification and establishing price targets on our stocks. While
there are some concerns in the market about Asia, slowing corporate profits and
higher interest rates, we continue to believe that future opportunities
available to equity investors outweigh any near-term worries.
The U.S. economy continues to be strong with the lowest unemployment since the
1970's, the first projected budget surplus in decades and relatively low
interest rates. This is creating a near perfect backdrop for a strong equity
market. After all, the consumer, who represents approximately two thirds of the
economy, is gainfully employed and making good wages, spending money on housing,
computers and travel. The economy is almost in perfect balance and that in
itself is bothersome to those searching for pitfalls in our market outlook.
Our Investment Policy Committee will continue to search for attractive companies
led by management with a relentless focus on the bottom line. We believe that
over time solid companies in industries with strong fundamentals will continue
to reward shareholders. We look forward to future periods of uncovering
attractive investment opportunities for your Fund. We welcome your questions and
comments.
Sincerely,
Davenport & Company LLC
For additional Fund inquiries please contact your investment executive or
call Davenport Asset Management at (888) 285-1863 or (804) 697-2999 to discover
how we can add value to your portfolio.
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
=============================================================================================================
<S> <C>
ASSETS
Investments in securities:
At acquisition cost.................................................................... $ 21,195,237
===============
At market value (Note 1)............................................................... $ 22,714,148
Investments in repurchase agreements (Note 1)............................................ 657,000
Cash..................................................................................... 731
Receivable for capital shares sold....................................................... 1,316,597
Dividends and interest receivable........................................................ 19,155
Due from Adviser (Note 3)................................................................ 7,571
Other assets............................................................................. 5,522
---------------
TOTAL ASSETS........................................................................... 24,720,724
---------------
LIABILITIES
Payable for capital shares redeemed...................................................... 1,710
Accrued administration fees (Note 3)..................................................... 3,600
Other accrued expenses................................................................... 21,239
---------------
TOTAL LIABILITIES...................................................................... 26,549
---------------
NET ASSETS ................................................................................. $ 24,694,175
===============
Net assets consist of:
Paid-in capital............................................................................. $ 23,128,088
Undistributed net investment income......................................................... 24,604
Accumulated net realized gains from security transactions................................... 22,572
Net unrealized appreciation on investments.................................................. 1,518,911
---------------
Net assets.................................................................................. $ 24,694,175
===============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value)............................................................................ 2,217,354
===============
Net asset value, offering price and redemption price per share (Note 1)..................... $ 11.14
===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
STATEMENT OF OPERATIONS
Period Ended March 31, 1998(a)
=============================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends................................................................................ $ 48,186
Interest................................................................................. 13,754
---------------
TOTAL INVESTMENT INCOME................................................................ 61,940
---------------
EXPENSES
Investment advisory fees (Note 3)........................................................ 24,350
Custodian fees........................................................................... 16,795
Professional fees........................................................................ 8,917
Registration fees........................................................................ 8,340
Administration fees (Note 3)............................................................. 6,011
Postage and supplies..................................................................... 3,213
Trustees' fees and expenses.............................................................. 1,390
Pricing costs............................................................................ 241
---------------
TOTAL EXPENSES......................................................................... 69,257
Fees waived and expenses reimbursed by the Adviser (Note 3).............................. ( 31,921 )
---------------
NET EXPENSES........................................................................... 37,336
---------------
NET INVESTMENT INCOME ...................................................................... 24,604
---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions............................................ 22,572
Net change in unrealized appreciation/depreciation on investments........................ 1,518,911
---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ........................................... 1,541,483
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................. $ 1,566,087
===============
(a) Represents the period from the commencement of operations (January 15,
1998) through March 31, 1998.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
Period Ended March 31, 1998(a)
=============================================================================================================
<S> <C>
FROM OPERATIONS:
Net investment income.................................................................... $ 24,604
Net realized gains from security transactions............................................ 22,572
Net change in unrealized appreciation/depreciation on investments........................ 1,518,911
---------------
Net increase in net assets from operations.................................................. 1,566,087
---------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................................................ 23,577,618
Payments for shares redeemed............................................................. ( 449,530 )
---------------
Net increase in net assets from capital share transactions.................................. 23,128,088
---------------
TOTAL INCREASE IN NET ASSETS ............................................................... 24,694,175
NET ASSETS:
Beginning of period...................................................................... --
---------------
End of period (including undistributed net investment income of $24,604)................. $ 24,694,175
===============
Capital share activity:
Sold..................................................................................... 2,259,111
Redeemed................................................................................. ( 41,757 )
---------------
Net increase in shares outstanding....................................................... 2,217,354
Shares outstanding, beginning of period.................................................. --
---------------
Shares outstanding, end of period........................................................ 2,217,354
===============
(a) Represents the period from the commencement of operations (January 15,
1998) through March 31, 1998.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------------------------------------
Period
Ended
March 31,
1998 (a)
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value at beginning of period...................................................... $ 10.00
---------------
Income from investment operations:
Net investment income.................................................................... 0.01
Net realized and unrealized gains on investments......................................... 1.13
---------------
Total from investment operations............................................................ 1.14
---------------
Net asset value at end of period............................................................ $ 11.14
===============
Total return................................................................................ 11.40%
===============
Net assets at end of period (000's)......................................................... $ 24,694
===============
Ratio of net expenses to average net assets(b) ............................................. 1.15% (c)
Ratio of net investment income to average net assets........................................ 0.76% (c)
Portfolio turnover rate..................................................................... 17% (c)
Average commission rate per share........................................................... $ 0.0000
(a) Represents the period from the commencement of operations (January 15,
1998) through March 31, 1998.
(b) Absent investment advisory fees waived and expenses reimbursed by the
Adviser, the ratio of expenses to average net assets would have been
2.13%(c) (Note 3).
(c) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
<CAPTION>
============================================================================================================
Market
Shares COMMON STOCKS -- 91.3% Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Basic Materials -- 4.8%
4,161 Aluminum Company of America............................................... $ 286,329
5,547 Barrick Gold Corporation.................................................. 119,954
9,246 Chesapeake Corporation.................................................... 318,987
6,472 Cleveland - Cliffs, Inc................................................... 347,870
6,472 Lydall, Inc.(a) .......................................................... 116,900
---------------
1,190,040
---------------
Chemicals and Drugs -- 9.0%
4,623 Air Products & Chemicals, Inc............................................. 383,131
12,019 ChemFirst Inc............................................................. 318,504
6,472 duPont (E.I.) de Nemours & Company........................................ 440,096
3,698 Merck & Company, Inc...................................................... 474,731
7,396 Schering-Plough Corporation............................................... 604,161
---------------
2,220,623
---------------
Computers/Computer Technology Services -- 7.7%
9,246 Allied Signal, Inc........................................................ 388,332
7,396 Hewlett-Packard Company................................................... 468,722
3,236 Lockheed Martin Corporation............................................... 364,050
9,246 Media General, Inc........................................................ 454,788
3,698 Motorola, Inc............................................................. 224,191
---------------
1,900,083
---------------
Consumer Products -- 15.7%
4,623 American Home Products.................................................... 440,919
3,698 Amgen, Inc.(a) ........................................................... 225,116
5,547 Bristol-Myers Squibb Company.............................................. 578,621
9,246 Cendant Corporation(a) ................................................... 366,373
7,130 Ford Motor Company........................................................ 462,113
5,547 International Flavors & Fragrances........................................ 261,402
6,657 Johnson & Johnson......................................................... 488,041
7,396 Mattel, Inc............................................................... 293,067
15,718 Owens & Minor, Inc. Holding Company....................................... 283,906
18,491 Sysco Corporation......................................................... 473,832
---------------
3,873,390
---------------
Durable Goods -- 12.3%
5,547 CSX Corporation........................................................... 330,047
5,547 Deere & Company........................................................... 343,567
5,351 Fluor Corporation......................................................... 266,212
4,623 General Electric Company.................................................. 398,445
9,246 Martin Marietta Materials................................................. 399,312
9,708 Norfolk Southern Corporation.............................................. 362,837
4,800 Philips Electronics NV-NY................................................. 352,500
8,090 Tredegar Industries, Inc.................................................. 586,019
---------------
3,038,939
---------------
<PAGE>
<CAPTION>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Market
Shares COMMON STOCKS -- 91.3% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Entertainment -- 1.4%
3,236 The Walt Disney Company................................................... $ 345,443
---------------
Financial Services -- 21.0%
4,161 American International Group.............................................. 524,026
4,623 BB&T Corporation.......................................................... 312,919
7,396 Capital One Financial..................................................... 583,360
3,190 CCB Financial Corporation................................................. 352,694
5,547 Crestar Financial Corporation............................................. 327,966
11,095 Federal Realty Investments Trust.......................................... 272,521
5,547 First Union Corporation................................................... 314,792
1,849 General RE Corporation.................................................... 407,936
3,698 Markel Corporation(a) .................................................... 639,523
20,340 MGI Properties Inc........................................................ 499,601
9,237 The Pioneer Group, Inc.................................................... 288,656
18,491 United Dominion Realty.................................................... 268,120
4,623 Wachovia Corporation...................................................... 392,088
---------------
5,184,202
---------------
Food/Beverages -- 3.1%
7,396 Anheuser-Busch Company, Inc............................................... 342,527
5,547 Coca-Cola Company......................................................... 429,546
---------------
772,073
---------------
Oil/Energy -- 11.0%
3,236 Amoco Corporation......................................................... 279,510
3,328 Atlantic Richfield Company................................................ 261,664
4,623 Chevron Corporation....................................................... 371,285
6,934 Enron Corporation......................................................... 321,564
4,623 Mobil Corporation......................................................... 354,237
5,547 Schlumberger Limited...................................................... 420,185
9,246 Tidewater, Inc............................................................ 405,090
9,246 Valero Energy Corporation................................................. 308,585
---------------
2,722,120
---------------
Retail Stores -- 3.4%
9,246 Circuit City Stores, Inc.................................................. 395,267
12,482 Walgreen Company.......................................................... 439,210
---------------
834,477
---------------
Utilities -- 1.9%
11,095 SBC Communications, Inc................................................... 484,019
---------------
Total Common Stocks (Cost $21,057,788) ................................... $ 22,565,409
---------------
<PAGE>
<CAPTION>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
=============================================================================================================
Market
Shares CLOSED-END MUTUAL FUNDS -- 0.6% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
7,555 Central European Equity Fund (Cost $137,449).............................. $ 148,739
---------------
Total Investments at Value (Cost $21,195,237)-- 91.9% .................... $ 22,714,148
---------------
<CAPTION>
=============================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(b)-- 2.7% Value
- -------------------------------------------------------------------------------------------------------------
$ 657,000 Star Bank, N.A., 5.25%, dated 03/31/98, due 04/01/98,
repurchase proceeds $657,096 (Cost $657,000).............................. $ 657,000
---------------
Total Investments and Repurchase Agreements at Value-- 94.6% ............. $ 23,371,148
Other Assets in Excess of Liabilities-- 5.4% ............................. 1,323,027
---------------
Net Assets-- 100.0% ...................................................... $ 24,694,175
===============
(a) Non-income producing security.
(b) Joint repurchase agreement is fully collateralized by $12,715,000 GNMA II,
Pool #8421, 7.375%, due 05/20/24; $14,335,000 GNMA II, Pool #8932, 7.00%,
due 03/20/22; and $1,120,000 GNMA II, Pool #8359, 7.00%, due 01/20/24. The
aggregate market value of the collateral at March 31, 1998 was $28,948,985.
The Fund's pro-rata interest in the collateral at March 31, 1998
was $665,827.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THE DAVENPORT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
================================================================================
1. Significant Accounting Policies
The Davenport Equity Fund (the Fund) is a no-load, diversified series of the
Williamsburg Investment Trust (the Trust), an open-end management investment
company registered 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 15, 1998.
The Fund's investment objective is long-term growth of capital through
investment in a diversified portfolio 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 and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income are declared and paid quarterly to
shareholders of the Fund. Net realized short-term capital gains, if any, may be
distributed throughout the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income distributions and capital
gain distributions are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
<PAGE>
THE DAVENPORT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
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 $21,195,237 as of March 31, 1998:
- -------------------------------------------------------------------------------
Gross unrealized appreciation................................. $ 1,653,917
Gross unrealized depreciation................................. (135,006)
--------------
Net unrealized appreciation................................... $ 1,518,911
==============
- -------------------------------------------------------------------------------
2. Investment Transactions
During the period ended March 31, 1998, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $21,618,434 and $445,769, respectively.
3. Transactions with Affiliates
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by Davenport & Company LLC (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 .75% of its average daily
net assets.
The Adviser currently intends to limit the total operating expenses of the Fund
to 1.15% of its average daily net assets. Accordingly, the Adviser voluntarily
waived its entire investment advisory fee of $24,350 and reimbursed the Fund for
$7,571 of other operating expenses for the period ended March 31, 1998. Certain
trustees and officers of the Trust are also officers of the Adviser.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement with the Trust,
Countrywide Fund Services, Inc. (CFS) provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .20% of its average daily net assets up to $25
million; .175% of the next $25 million of such net assets; and .15% of 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,
postage, supplies and costs of pricing the Fund's portfolio securities. Certain
officers of the Trust are also officers of CFS.
<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 Davenport Equity Fund (a series of The Williamsburg Investment Trust),
including the portfolio of investments, as of March 31, 1998, and the related
statement of operations, changes in net assets, and financial highlights for the
period January 15, 1998 (commencement of operations) to March 31, 1998. 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 audit.
We conducted our audit 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, 1998 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 audit provides 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 Davenport Equity Fund as of March 31, 1998, the results of its
operations, the changes in its net assets, and financial highlights for the
period January 15, 1998 to March 31, 1998, in conformity with generally accepted
accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
April 24, 1998
<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-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 36,885,918
<INVESTMENTS-AT-VALUE> 55,827,086
<RECEIVABLES> 307,752
<ASSETS-OTHER> 4,803
<OTHER-ITEMS-ASSETS> 314
<TOTAL-ASSETS> 56,139,955
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 199,626
<TOTAL-LIABILITIES> 199,626
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36,976,286
<SHARES-COMMON-STOCK> 2,931,941
<SHARES-COMMON-PRIOR> 2,573,969
<ACCUMULATED-NII-CURRENT> 4,103
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,959,920
<NET-ASSETS> 55,940,329
<DIVIDEND-INCOME> 544,381
<INTEREST-INCOME> 1,097,392
<OTHER-INCOME> 0
<EXPENSES-NET> 506,795
<NET-INVESTMENT-INCOME> 1,134,978
<REALIZED-GAINS-CURRENT> 2,178,348
<APPREC-INCREASE-CURRENT> 9,325,106
<NET-CHANGE-FROM-OPS> 12,638,432
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,138,576
<DISTRIBUTIONS-OF-GAINS> 2,862,386
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 323,989
<NUMBER-OF-SHARES-REDEEMED> 177,851
<SHARES-REINVESTED> 211,834
<NET-CHANGE-IN-ASSETS> 15,085,977
<ACCUMULATED-NII-PRIOR> 7,701
<ACCUMULATED-GAINS-PRIOR> 684,058
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 365,477
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 506,795
<AVERAGE-NET-ASSETS> 48,771,677
<PER-SHARE-NAV-BEGIN> 15.87
<PER-SHARE-NII> .41
<PER-SHARE-GAIN-APPREC> 4.26
<PER-SHARE-DIVIDEND> .41
<PER-SHARE-DISTRIBUTIONS> 1.05
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.08
<EXPENSE-RATIO> 1.04
<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-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 74,866,530
<INVESTMENTS-AT-VALUE> 101,236,552
<RECEIVABLES> 1,686,354
<ASSETS-OTHER> 6,639
<OTHER-ITEMS-ASSETS> 589
<TOTAL-ASSETS> 102,930,134
<PAYABLE-FOR-SECURITIES> 1,197,219
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 324,628
<TOTAL-LIABILITIES> 1,521,847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 75,047,485
<SHARES-COMMON-STOCK> 5,835,774
<SHARES-COMMON-PRIOR> 4,658,602
<ACCUMULATED-NII-CURRENT> 2,978
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 12,198
<ACCUM-APPREC-OR-DEPREC> 26,370,022
<NET-ASSETS> 101,408,287
<DIVIDEND-INCOME> 686,177
<INTEREST-INCOME> 1,980,449
<OTHER-INCOME> 0
<EXPENSES-NET> 755,120
<NET-INVESTMENT-INCOME> 1,911,506
<REALIZED-GAINS-CURRENT> 9,533,601
<APPREC-INCREASE-CURRENT> 12,603,990
<NET-CHANGE-FROM-OPS> 24,049,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,934,092
<DISTRIBUTIONS-OF-GAINS> 10,800,423
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,041,126
<NUMBER-OF-SHARES-REDEEMED> 599,080
<SHARES-REINVESTED> 735,126
<NET-CHANGE-IN-ASSETS> 30,754,716
<ACCUMULATED-NII-PRIOR> 25,564
<ACCUMULATED-GAINS-PRIOR> 1,254,624
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 561,887
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 779,120
<AVERAGE-NET-ASSETS> 86,528,466
<PER-SHARE-NAV-BEGIN> 15.17
<PER-SHARE-NII> .37
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<PER-SHARE-DIVIDEND> .37
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<NAME> WILLIAMSBURG INVESTMENT TRUST
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<NAME> THE GOVERNMENT STREET EQUITY FUND
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<NAME> THE GOVERNMENT STREET BOND FUND
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<NAME> WILLIAMSBURG INVESTMENT TRUST
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<NAME> THE JAMESTOWN SHORT TERM BOND FUND
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<NAME> WILLIAMSBURG INVESTMENT TRUST
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<NAME> FBP CONTRARIAN EQUITY FUND
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<NAME> WILLIAMSBURG INVESTMENT TRUST
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<NAME> THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
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<CIK> 0000842512
<NAME> WILLIAMSBURG INVESTMENT TRUST
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<NAME> THE ALABAMA TAX FREE BOND FUND
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