THE
FLIPPIN, BRUCE & PORTER
FUNDS
SEMI-ANNUAL REPORT
September 30, 1999
(Unaudited)
FBP Contrarian Balanced Fund
FBP Contrarian Equity Fund
THE FLIPPIN, BRUCE & PORTER FUNDS
INVESTMENT ADVISOR
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.
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
Erwin H. Will, Jr.
Samuel B. Witt, III
1
<PAGE>
LETTER TO SHAREHOLDERS NOVEMBER 5, 1999
================================================================================
We would like to report on your Fund and its investments for the semi-annual
period ended September 30,1999. The following table displays the total return
(capital change plus income) of the Funds for this and longer time periods.
Since
Five Years Inception
Six Months One Year Annualized Annualized
--------------------------------------------
FBP Contrarian Equity Fund ......... -1.5% 25.9% 18.7% 17.0%
FBP Contrarian Balanced Fund ....... -1.2% 18.4% 15.4% 11.6%
REVIEW AND OUTLOOK
Just as a year ago, the Funds' semi-annual period ended during a very difficult
time for the equity markets, although the results above do not indicate as much.
Volatility has been quite high over the past six months as stocks were strong
the first three, then reversed course and moved downward. With a sound economy,
growing earnings, low unemployment and historically low inflation, why would
stocks perform so poorly? Stock prices are discounting a number of concerns that
are not new, but have become heightened. Rising interest rates, inflationary
fears, a falling dollar and Year 2000 computer problems head the list.
Valuations have been high by historical standards and, with rising interest
rates, some contraction in price/earnings ratios was reasonable. However, we
believe the majority of the increase in interest rates is behind us. Inflation
has picked up since last year, particularly in commodity-sensitive producer
prices, as a result of an expanding world economy. Conversely, productivity and
global competition should hold consumer inflation to a reasonable 2.5% next
year.
The U.S. economy is expected to remain strong through the end of 1999. Some
weakness is likely early next year if production accelerates in the fourth
quarter due to Y2K concerns. After a first quarter adjustment, the economy
should get back on a growth track. The dollar's weakness against the Japanese
Yen is more a reflection of their recovering economy and financial markets than
of U.S. weakness. Y2K concerns, which are widely anticipated, are unjustified in
our opinion. There may well be some minor problems, but we expect little
meaningful disruption. The long-term effects of this preparation and technology
improvement should reap productivity benefits for several years.
Year 2000 issues have also affected the fixed-income markets. Abnormally wide
credit spreads are the result of new issuance and altered buying patterns. Thus,
corporate and agency bonds again appear attractive, and we will be adding to
positions in the Balanced Fund during the current quarter. Spreads should narrow
as we enter the New Year as both buyers and sellers return to more normal
investment patterns.
The Funds' equity performance from the end of June through September trailed the
markets, giving back the outperformance experienced earlier in this semi-annual
period. Several unexpected earnings shortfalls, as well as the resurgence of
growth stocks, were the causes. With the overall market having corrected 20% or
more from its high and value stocks once again being accorded very depressed
valuations, tremendous opportunity is present. A two-tiered market exists again
with technology and other growth issues supported by very high valuations and
most everything else left behind. Our portfolios are trading at 17.5 times next
year's earnings versus 23 times for the S&P 500 Index. Approximately one half of
our companies are trading at an average of 10.9 times earnings. Valuations at
these levels should prove to be quite rewarding over time. We expect a strong
calendar fourth quarter when considering valuation and fundamentals, but if Y2K
worries delay a rebound, then the first quarter of next year should be quite
strong.
Thank you for your continued confidence and investment in The Flippin, Bruce &
Porter Funds.
John T. Bruce, CFA
Vice President-Portfolio Manager
2
<PAGE>
COMPARATIVE CHARTS
Performance for each Fund is compared 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.
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
Sept 99
-------
FBP Contrarian Equity Fund $26,296
Standard & Poor's 500 Index $32,630
Consumer Price Index $11,571
Past performance is not predictive of future performance.
------------------------------------
FBP Contrarian Equity Fund
Average Annual Total Returns
1 Year 5 Years Since Inception*
25.86% 18.74% 16.95%
------------------------------------
* Initial public offering of shares was July 30, 1993
FBP Contrarian Balanced Fund
Comparison of the Change in Value of a $10,000 Investment in the FBP Contrarian
Balanced Fund, the Stancerd & Poor's 500 Index and the Consumer Price Index
Sept 99
-------
FBP Contrarian Balanced Fund $30,767
Standard & Poor's 500 Index $52,381
Consumer Price Index $13,485
Past performance is not predictive of future performance.
------------------------------------
FBP Contrarian Balanced Fund
Average Annual Total Returns
1 Year 5 Years Since Inception*
18.40% 15.43% 11.59%
------------------------------------
* Initial public offering of shares was July 3, 1989
3
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 96.1% Value
- --------------------------------------------------------------------------------
CHEMICALS -- 2.8%
7,000 Dow Chemical Company ........................... $ 795,375
11,500 Ethyl Corporation .............................. 44,563
20,000 Great Lakes Chemical Corporation ............... 761,250
------------
1,601,188
------------
COMMERCIAL BANKING -- 10.2%
45,000 Banc One Corporation ........................... 1,566,562
28,000 BankAmerica Corporation ........................ 1,559,250
16,000 Chase Manhattan Corporation .................... 1,206,000
31,875 Citigroup, Inc. ................................ 1,402,500
------------
5,734,312
------------
COMMUNICATIONS-- 2.5%
11,500 GTE Corporation ................................ 884,063
18,000 Harris Corporation ............................. 497,250
25,000 Paging Network, Inc.(a) ........................ 25,781
------------
1,407,094
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES -- 12.1%
40,000 Compaq Computer Corporation .................... 917,500
20,000 Electronic Data Systems Corporation ............ 1,058,750
9,600 Hewlett-Packard Company(b) ..................... 883,200
24,000 International Business Machines Corporation .... 2,913,000
50,000 Novell, Inc.(a) ................................ 1,034,375
------------
6,806,825
------------
CONSUMER GOODS & SERVICES -- 7.6%
84,000 Archer-Daniels-Midland Company ................. 1,023,750
76,000 Cendant Corporation(a) ......................... 1,349,000
25,000 Philip Morris Companies, Inc. .................. 854,687
40,000 Shaw Industries, Inc. .......................... 635,000
13,000 UST, Inc. ...................................... 392,438
------------
4,254,875
------------
DRUGS/MEDICAL EQUIPMENT-- 9.7%
19,925 Amgen, Inc.(a)(b) .............................. 1,623,888
16,000 Bristol-Myers Squibb Company ................... 1,080,000
6,000 Johnson & Johnson .............................. 551,250
35,000 Mallinckrodt, Inc. ............................. 1,056,562
7,600 Merck & Company, Inc. .......................... 492,575
13,000 Pharmacia & Upjohn, Inc. ....................... 645,125
------------
5,449,400
------------
DURABLE GOODS -- 4.3%
20,000 Engelhard Corporation .......................... 363,750
4,150 General Electric Company ....................... 492,034
80,325 Waste Management, Inc. ......................... 1,546,256
------------
2,402,040
------------
4
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 96.1% (Continued) Value
- --------------------------------------------------------------------------------
FINANCE -- 4.7%
25,000 SLM Holding Corporation ........................ $ 1,075,000
37,000 The St. Paul Companies, Inc. ................... 1,017,500
50,500 United Dominion Realty ......................... 564,969
------------
2,657,469
------------
FUNERAL SERVICES -- 1.9%
100,000 Service Corporation International .............. 1,056,250
------------
HUMAN RESOURCES -- 0.9%
50,000 Olsten Corporation ............................. 521,875
------------
INSURANCE -- 2.9%
24,400 Aetna Life & Casualty Company .................. 1,201,700
6,600 Marsh & McLennan Companies, Inc. ............... 452,100
------------
1,653,800
------------
OIL & OIL DRILLING -- 6.0%
16,400 Equitable Resources, Inc. ...................... 620,125
15,000 Kerr-McGee Corporation ......................... 825,938
18,200 Schlumberger Limited ........................... 1,134,088
20,000 Sonat, Inc. .................................... 793,750
------------
3,373,901
------------
PACKAGING -- 2.8%
63,500 Crown Cork & Seal Company, Inc. ................ 1,539,875
------------
PHOTOGRAPHICAL PRODUCTS-- 2.7%
20,000 Eastman Kodak Company .......................... 1,508,750
------------
PRINTING -- 2.7%
52,300 R. R. Donnelley & Sons Company ................. 1,510,162
------------
RETAIL STORES -- 16.3%
12,000 Applebee's International, Inc. ................. 404,250
19,000 Avado Brands, Inc. ............................. 106,875
65,000 CBRL Group, Inc. ............................... 1,007,500
30,000 Circuit City Stores, Inc.(b) ................... 1,265,625
83,000 Dilliard's, Inc. ............................... 1,685,937
32,000 IKON Office Solutions, Inc. .................... 342,000
45,000 K-Mart Corporation(a) .......................... 525,937
60,000 The Pep Boys - Manny, Moe & Jack ............... 892,500
115,000 Toys R Us, Inc.(a) ............................. 1,725,000
25,400 Wal-Mart Stores, Inc. .......................... 1,208,088
------------
9,163,712
------------
TRANSPORTATION -- 5.3%
22,000 FDX Corporation(a) ............................. 852,500
30,000 Trinity Industries, Inc. ....................... 926,250
25,000 Union Pacific Corporation ...................... 1,201,563
------------
2,980,313
------------
5
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 96.1% (Continued) Value
- --------------------------------------------------------------------------------
TRAVEL & INVESTMENT SERVICES-- 0.7%
3,000 American Express Company(b) .................... $ 403,875
------------
TOTAL COMMON STOCKS-- 96.1% (COST $44,348,128) $ 54,025,716
OTHER ASSETS IN EXCESS OF LIABILITIES-- 3.9% ... 2,170,530
------------
NET ASSETS-- 100.0% ............................ $ 56,196,246
============
(a) Non-income producing security.
(b) Security covers a call option.
================================================================================
FBP CONTRARIAN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Market
Option Value of Premiums
Contracts COVERED CALL OPTIONS Options Received
- --------------------------------------------------------------------------------
American Express Company,
15 10/16/99 at $150 ............... $ 375 $ 9,877
Amgen, Inc.,
50 10/16/99 at $80 ................ 26,250 26,044
Circuit City Stores, Inc.,
140 10/16/99 at $47.50 ............. 4,375 69,984
Hewlett-Packard Company,
30 11/20/99 at $110 ............... 2,812 23,701
30 02/19/00 at $125 ............... 5,063 23,129
-------- --------
$ 38,875 $152,735
======== ========
See accompanying notes to financial statements.
6
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 69.8% Value
- --------------------------------------------------------------------------------
CHEMICALS -- 2.5%
8,200 Dow Chemical Company ........................... $ 931,725
20,000 Ethyl Corporation .............................. 77,500
14,100 Great Lakes Chemical Corporation ............... 536,681
------------
1,545,906
------------
COMMERCIAL BANKING -- 6.7%
27,000 Banc One Corporation ........................... 939,938
20,000 BankAmerica Corporation ........................ 1,113,750
15,350 Chase Manhattan Corporation .................... 1,157,006
22,968 Citigroup, Inc. ................................ 1,010,592
------------
4,221,286
------------
COMMUNICATIONS-- 2.6%
15,000 GTE Corporation ................................ 1,153,125
17,000 Harris Corporation ............................. 469,625
34,500 Paging Network, Inc.(a) ........................ 35,578
------------
1,658,328
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES-- 8.3%
25,914 Compaq Computer Corporation .................... 594,402
20,000 Electronic Data Systems Corporation ............ 1,058,750
6,100 Hewlett-Packard Company(b) ..................... 561,200
17,600 International Business Machines Corporation .... 2,136,200
43,000 Novell, Inc.(a) ................................ 889,562
------------
5,240,114
------------
CONSUMER GOODS & SERVICES -- 5.5%
66,150 Archer-Daniels-Midland Company ................. 806,203
70,000 Cendant Corporation(a) ......................... 1,242,500
19,300 Philip Morris Companies, Inc. .................. 659,819
29,000 Shaw Industries, Inc. .......................... 460,375
8,500 UST, Inc. ...................................... 256,594
------------
3,425,491
------------
DRUGS/MEDICAL EQUIPMENT-- 7.9%
14,000 Amgen, Inc.(a)(b) .............................. 1,141,000
12,200 Bristol-Myers Squibb Company ................... 823,500
10,000 Johnson & Johnson .............................. 918,750
28,000 Mallinckrodt, Inc. ............................. 845,250
6,400 Merck & Company, Inc. .......................... 414,800
16,700 Pharmacia & Upjohn, Inc. ....................... 828,738
------------
4,972,038
------------
DURABLE GOODS -- 3.7%
15,000 Engelhard Corporation .......................... 272,812
9,000 General Electric Company ....................... 1,067,063
51,600 Waste Management, Inc.(a) ...................... 993,300
------------
2,333,175
------------
7
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 69.8% (Continued) Value
- --------------------------------------------------------------------------------
FINANCE -- 3.8%
24,000 SLM Holding Corporation ........................ $ 1,032,000
29,000 The St. Paul Companies, Inc. ................... 797,500
50,000 United Dominion Realty ......................... 559,375
------------
2,388,875
------------
FUNERAL SERVICES -- 1.0%
60,000 Service Corporation International .............. 633,750
------------
HUMAN RESOURCES -- 0.8%
50,000 Olsten Corporation ............................. 521,875
------------
INSURANCE -- 3.0%
8,300 Aetna Life & Casualty Company .................. 408,775
8,750 American International Group ................... 760,703
10,000 Marsh & McLennan Companies, Inc. ............... 685,000
------------
1,854,478
------------
OIL & OIL DRILLING -- 4.3%
6,800 Equitable Resources, Inc. ...................... 257,125
10,000 Kerr-McGee Corporation ......................... 550,625
17,500 Schlumberger Limited ........................... 1,090,469
20,000 Sonat, Inc. .................................... 793,750
------------
2,691,969
------------
PACKAGING -- 1.6%
42,000 Crown Cork & Seal Company, Inc. ................ 1,018,500
------------
PHOTOGRAPHICAL PRODUCTS-- 1.3%
11,000 Eastman Kodak Company .......................... 829,813
------------
PRINTING -- 1.2%
25,000 R. R. Donnelley & Sons Company ................. 721,875
------------
RETAIL STORES -- 10.5%
8,200 Applebee's International, Inc. ................. 276,238
23,300 Avado Brands, Inc. ............................. 131,062
33,650 CBRL Group, Inc. ............................... 521,575
21,200 Circuit City Stores, Inc.(b) ................... 894,375
50,000 Dilliard's, Inc. ............................... 1,015,625
34,000 IKON Office Solutions, Inc. .................... 363,375
39,500 K-Mart Corporation(a) .......................... 461,656
50,000 The Pep Boys - Manny, Moe & Jack ............... 743,750
67,000 Toys R Us, Inc.(a) ............................. 1,005,000
25,000 Wal-Mart Stores, Inc. .......................... 1,189,063
------------
6,601,719
------------
TRANSPORTATION -- 3.3%
20,200 FDX Corporation(a) ............................. 782,750
14,100 Trinity Industries, Inc. ....................... 435,337
17,200 Union Pacific Corporation ...................... 826,675
------------
2,044,762
------------
8
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 69.8% (Continued) Value
- --------------------------------------------------------------------------------
TRAVEL & INVESTMENT SERVICES -- 1.8%
8,300 American Express Company(b) .................... $ 1,117,387
------------
TOTAL COMMON STOCKS (COST $27,788,310) ......... $ 43,821,341
------------
================================================================================
Par Value U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 15.2% Value
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 12.0%
$ 500,000 7.75%, due 01/31/00 ........................ $ 504,375
1,000,000 5.875%, due 06/30/00 ....................... 1,003,750
1,000,000 4.625%, due 12/31/00 ....................... 989,063
500,000 5.625%, due 02/28/01 ....................... 500,157
1,000,000 4.875%, due 03/31/01 ....................... 989,375
750,000 5.625%, due 05/15/01 ....................... 749,766
750,000 6.125%, due 12/31/01 ....................... 756,797
500,000 6.625%, due 04/30/02 ....................... 510,937
500,000 6.375%, due 08/15/02 ....................... 508,125
500,000 6.25%, due 02/15/03 ........................ 506,563
500,000 7.25%, due 05/15/04 ........................ 527,344
------------
7,546,252
------------
FEDERAL HOME LOAN BANK BONDS -- 3.2%
1,000,000 7.00%, due 07/02/09 ........................ 985,069
1,000,000 8.00%, due 08/19/14 ........................ 989,352
------------
1,974,421
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(COST $9,472,744) .......................... $ 9,520,673
------------
================================================================================
Par Value CORPORATE BONDS -- 11.8% Value
- --------------------------------------------------------------------------------
FINANCE -- 6.1%
Bankers Trust New York Corporation,
$ 750,000 7.375%, due 05/01/08 ....................... $ 748,092
General Motors Acceptance Corporation,
1,000,000 5.50%, due 01/14/02 ........................ 976,066
Green Tree Financial Corporation,
750,000 7.55%, due 10/15/99 ........................ 750,276
Macsaver Financial Services,
500,000 7.60%, due 08/01/07 ........................ 340,000
Northern Trust Company,
1,000,000 7.10%, due 08/01/09 ........................ 996,684
------------
3,811,118
------------
INDUSTRIAL -- 4.1%
Baxter International, Inc.,
75,000 9.25%, due 12/15/99 ........................ 75,507
Hertz Corporation,
1,000,000 6.00%, due 01/15/03 ........................ 974,336
Hilton Hotels Corporation,
300,000 7.70%, due 07/15/02 ........................ 299,113
The Kroger Company,
250,000 7.65%, due 04/15/07 ........................ 251,124
9
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par Value CORPORATE BONDS -- 11.8% (Continued) Value
- --------------------------------------------------------------------------------
INDUSTRIAL -- 4.1% (CONTINUED)
Raychem Corporation,
$ 1,000,000 7.20%, due 10/15/08 ........................ $ 994,059
------------
2,594,139
------------
UTILITIES -- 1.6%
Ohio Power Company,
1,000,000 6.75%, due 07/01/04 ........................ 995,192
------------
TOTAL CORPORATE BONDS (COST $7,542,357) ........ $ 7,400,449
------------
================================================================================
Shares MONEY MARKETS -- 3.0% Value
- --------------------------------------------------------------------------------
1,909,264 Firstar Stellar Treasury Fund (Cost $1,909,264) $ 1,909,264
------------
TOTAL INVESTMENTS AT VALUE-- 99.8%
(COST $46,712,675) ......................... $ 62,651,727
------------
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.2% ... 105,247
------------
NET ASSETS-- 100.0% ............................ $ 62,756,974
============
(a) Non-income producing security.
(b) Security covers a call option.
FBP CONTRARIAN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Market
Option Value of Premiums
Contracts COVERED CALL OPTIONS Options Received
- --------------------------------------------------------------------------------
American Express Company,
43 10/16/99 at $150 ............... $ 1,075 $ 28,315
Amgen, Inc.,
40 10/16/99 at $80 ................ 21,000 20,835
Circuit City Stores, Inc.,
100 10/16/99 at $47.5 .............. 3,125 49,989
Hewlett-Packard Company,
20 11/20/99 at $110 ............... 1,875 15,800
20 02/19/00 at $125 ............... 3,375 15,419
-------- --------
$ 30,450 $130,358
======== ========
See accompanying notes to financial statements.
10
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
===================================================================================================
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ........................................... $44,348,128 $46,712,675
=========== ===========
At value (Note 1) ............................................. $54,025,716 $62,651,727
Dividends and interest receivable ................................. 106,463 329,022
Receivable for securities sold .................................... 14,688 15,160
Receivable for capital shares sold ................................ 2,324,575 1,647
Other assets ...................................................... 6,584 12,283
----------- -----------
TOTAL ASSETS .................................................. 56,478,026 63,009,839
----------- -----------
LIABILITIES
Bank overdraft .................................................... 176,440 --
Dividends payable ................................................. 16,073 17,756
Payable for capital shares redeemed ............................... 394 147,967
Accrued investment advisory fees (Note 3) ......................... 35,287 39,606
Accrued administration fees (Note 3) .............................. 8,740 9,600
Other accrued expenses and liabilities ............................ 5,971 7,486
Covered call options, at value (Notes 1 and 4)
(premiums received $152,735 and $130,358, respectively) ....... 38,875 30,450
----------- -----------
TOTAL LIABILITIES ............................................. 281,780 252,865
----------- -----------
NET ASSETS ............................................................ $56,196,246 $62,756,974
=========== ===========
Net assets consist of:
Paid-in capital ................................................... $45,552,546 $44,082,578
Undistributed net investment income ............................... 5,901 1,882
Accumulated net realized gains from security transactions ......... 846,351 2,633,554
Net unrealized appreciation on investments ........................ 9,791,448 16,038,960
----------- -----------
Net assets ............................................................ $56,196,246 $62,756,974
=========== ===========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) ......................................... 2,535,172 3,311,110
=========== ===========
Net asset value, offering price and redemption price per share (Note 1) $ 22.17 $ 18.95
=========== ===========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
===================================================================================================
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest ........................................................ $ 38,258 $ 617,137
Dividends ....................................................... 418,414 370,467
----------- -----------
TOTAL INVESTMENT INCOME ..................................... 456,672 987,604
----------- -----------
EXPENSES
Investment advisory fees (Note 3) ............................... 199,058 250,280
Administration fees (Note 3) .................................... 49,086 59,318
Custodian fees .................................................. 6,677 5,651
Professional fees ............................................... 4,100 5,930
Postage and supplies ............................................ 4,119 3,809
Trustees' fees and expenses ..................................... 3,780 3,780
Registration fees ............................................... 3,216 4,161
Printing of shareholder reports ................................. 4,466 1,330
Pricing costs ................................................... 721 2,249
Insurance expense ............................................... 949 1,393
Other expenses .................................................. 763 5,177
----------- -----------
TOTAL EXPENSES .............................................. 276,935 343,078
----------- -----------
NET INVESTMENT INCOME ............................................... 179,737 644,526
----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on security transactions ..................... 826,961 2,611,394
Net realized gains on option contracts written .................. 19,390 22,160
Net change in unrealized appreciation/depreciation on investments (2,698,045) (3,875,052)
----------- -----------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS ................... (1,851,694) (1,241,498)
----------- -----------
NET DECREASE IN NET ASSETS FROM OPERATIONS .......................... $(1,671,957) $ (596,972)
=========== ===========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
=====================================================================================================================
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ........................... $ 179,737 $ 242,390 $ 644,526 $ 1,191,705
Net realized gains on:
Security transactions ....................... 826,961 685,564 2,611,394 2,907,950
Option contracts written .................... 19,390 40,022 22,160 45,055
Net change in unrealized appreciation/
depreciation on investments ................. (2,698,045) 2,399,274 (3,875,052) 954,092
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations (1,671,957) 3,367,250 (596,972) 5,098,802
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ...................... (173,836) (243,458) (642,777) (1,195,675)
From net realized gains ......................... -- (725,822) -- (2,953,025)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions to shareholders ................... (173,836) (969,280) (642,777) (4,148,700)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ....................... 18,847,455 9,849,442 5,321,343 9,396,418
Net asset value of shares issued in reinvestment
of distributions to shareholders ............ 147,286 836,052 606,345 4,014,589
Payments for shares redeemed .................... (5,930,584) (3,427,898) (6,893,678) (5,338,725)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions ...................... 13,064,157 7,257,596 (965,990) 8,072,282
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ...................................... 11,218,364 9,655,566 (2,205,739) 9,022,384
NET ASSETS
Beginning of period ............................. 44,977,882 35,322,316 64,962,713 55,940,329
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $5,901, $0,
$1,882 and $133, respectively) .............. $ 56,196,246 $ 44,977,882 $ 62,756,974 $ 64,962,713
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ............................................ 794,016 471,229 264,320 494,996
Reinvested ...................................... 6,308 39,117 30,427 213,289
Redeemed ........................................ (257,960) (164,500) (339,749) (284,114)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding ... 542,364 345,846 (45,002) 424,171
Shares outstanding at beginning of period ....... 1,992,808 1,646,962 3,356,112 2,931,941
------------ ------------ ------------ ------------
Shares outstanding at end of period ............. 2,535,172 1,992,808 3,311,110 3,356,112
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
FBP CONTRARIAN EQUITY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
====================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
====================================================================================================================================
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 22.57 $ 21.45 $ 16.08 $ 14.21 $ 11.21 $ 10.15
---------- ---------- ---------- ---------- --------- ---------
Income (loss) from investment operations:
Net investment income .......................... 0.07 0.13 0.19 0.22 0.24 0.21
Net realized and unrealized gains (losses)
on investments ............................. (0.40) 1.50 5.98 2.24 3.05 1.14
---------- ---------- ---------- ---------- --------- ---------
Total from investment operations ................... (0.33) 1.63 6.17 2.46 3.29 1.35
---------- ---------- ---------- ---------- --------- ---------
Less distributions:
Dividends from net investment income ........... (0.07) (0.13) (0.19) (0.22) (0.24) (0.23)
Distributions from net realized gains .......... -- (0.38) (0.61) (0.37) (0.05) (0.06)
---------- ---------- ---------- ---------- --------- ---------
Total distributions ................................ (0.07) (0.51) (0.80) (0.59) (0.29) (0.29)
---------- ---------- ---------- ---------- --------- ---------
Net asset value at end of period ................... $ 22.17 $ 22.57 $ 21.45 $ 16.08 $ 14.21 $ 11.21
========== ========== ========== ========== ========= =========
Total return ....................................... (1.47)% 7.74% 38.90% 17.65% 29.54% 13.52%
========== ========== ========== ========== ========= =========
Net assets at end of period (000's) ............... $ 56,196 $ 44,978 $ 35,322 $ 16,340 $ 9,090 $ 5,323
========== ========== ========== ========== ========= =========
Ratio of net expenses to average net assets(a) ..... 1.04%(b) 1.08% 1.12% 1.21% 1.25% 1.25%
Ratio of net investment income to average net assets 0.68%(b) 0.63% 1.04% 1.50% 1.89% 2.15%
Portfolio turnover rate ............................ 12%(b) 18% 10% 9% 12% 9%
</TABLE>
(a) Absent fee waivers and/or expense reimbursements by the Advisor, the ratios
of expenses to average net assets would have been 1.25%, 1.67% and 2.27%
for the years ended March 31, 1997, 1996 and 1995, respectively.
(b) Annualized.
See accompanying notes to financial statements.
14
<PAGE>
FBP CONTRARIAN BALANCED FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
====================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
====================================================================================================================================
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 19.36 $ 19.08 $ 15.87 $ 14.86 $ 12.80 $ 12.19
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income .......................... 0.20 0.39 0.41 0.42 0.43 0.38
Net realized and unrealized gains (losses)
on investments ............................. (0.41) 1.21 4.26 1.49 2.44 0.87
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations ................... (0.21) 1.60 4.67 1.91 2.87 1.25
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income ........... (0.20) (0.39) (0.41) (0.42) (0.43) (0.39)
Distributions from net realized gains .......... -- (0.93) (1.05) (0.48) (0.38) (0.25)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ................................ (0.20) (1.32) (1.46) (0.90) (0.81) (0.64)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ................... $ 18.95 $ 19.36 $ 19.08 $ 15.87 $ 14.86 $ 12.80
========== ========== ========== ========== ========== ==========
Total return ....................................... (1.16)% 8.74% 30.22% 13.15% 22.86% 10.54%
========== ========== ========== ========== ========== ==========
Net assets at end of period (000's) ............... $ 62,757 $ 64,963 $ 55,940 $ 40,854 $ 35,641 $ 25,976
========== ========== ========== ========== ========== ==========
Ratio of net expenses to average net assets ........ 1.03%(b) 1.04% 1.04% 1.08% 1.17% 1.17%(a)
Ratio of net investment income to average net assets 1.93%(b) 2.05% 2.33% 2.65% 3.04% 3.10%
Portfolio turnover rate ............................ 28%(b) 25% 21% 24% 17% 14%
</TABLE>
(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) Annualized.
See accompanying notes to financial statements.
15
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
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. 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
(normally 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 in the
over-the-counter market, and common stocks will ordinarily be traded on a
national securities exchange, but may also be traded in 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 may 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.
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.
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.
16
<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 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
investment securities and covered call options as of September 30, 1999:
- --------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
- --------------------------------------------------------------------------------
Gross unrealized appreciation ............... $ 15,221,934 $ 19,446,015
Gross unrealized depreciation ............... (5,430,486) (3,407,055)
------------ ------------
Net unrealized appreciation ................. $ 9,791,448 $ 16,038,960
============ ============
Federal income tax cost ..................... $ 44,195,393 $ 46,582,317
============ ============
- --------------------------------------------------------------------------------
2. INVESTMENT TRANSACTIONS
During the six months ended September 30, 1999, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $16,025,335 and $2,848,537, respectively, for the FBP
Contrarian Equity Fund and $10,988,098 and $8,800,329, 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
Advisor) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, each Fund pays the Advisor a fee, which is
computed and accrued daily and paid monthly, at an annual rate of .75% on its
average daily net assets up to $250 million; .65% on the next $250 million of
such net assets; and .50% on such net assets in excess of $500 million. Certain
Trustees and officers of the Trust are also officers of the Advisor.
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 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 CFS 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, or of CW
Fund Distributors, Inc., the exclusive underwriter of each Funds' shares.
17
<PAGE>
4. COVERED CALL OPTIONS
A summary of covered call option contracts during the six months ended September
30, 1999 is as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
--------------------------------------------------
OPTION OPTION OPTION OPTION
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at beginning of period 55 $ 31,062 85 $ 65,437
Options written .......................... 293 172,125 255 152,518
Options expired .......................... (28) (19,390) (32) (22,160)
Options exercised ........................ (55) (31,062) (85) (65,437)
--------- --------- --------- ---------
Options outstanding at end of period ..... 265 $ 152,735 223 $ 130,358
========= ========= ========= =========
- ----------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
- --------------------------------------------------------------------------------
NO LOAD MUTUAL FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1999
(UNAUDITED)
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.
J. Finley Lee, Jr.
Richard L. Morrill
Harris V. Morrissette
Erwin H. Will, Jr.
Samuel B. Witt, III
PORTFOLIO MANAGERS
Thomas W. Leavell,
The Government Street Equity Fund
Mary Shannon Hope,
The Government Street Bond Fund
Timothy S. Healey,
The Alabama Tax Free Bond Fund
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
==============================================================================================
Government Government Alabama
Street Street Tax Free
Equity Bond Bond
Fund Fund Fund
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ............................ $54,581,734 $44,698,527 $21,754,448
=========== =========== ===========
At value (Note 1) .............................. $95,021,469 $43,447,534 $21,802,016
Interest receivable ................................ -- 687,129 296,750
Dividends receivable ............................... 84,778 6,536 1,287
Receivable for capital shares sold ................. 20,275 35,000 350
Other assets ....................................... 9,694 8,174 4,066
----------- ----------- -----------
TOTAL ASSETS ................................... 95,136,216 44,184,373 22,104,469
----------- ----------- -----------
LIABILITIES
Dividends payable .................................. 4,844 15,615 13,646
Payable for capital shares redeemed ................ 1,329 59,988 3,500
Accrued investment advisory fees (Note 3) .......... 47,917 18,095 4,436
Accrued administration fees (Note 3) ............... 13,800 2,750 2,800
Other accrued expenses and liabilities ............. 7,611 11,412 3,000
----------- ----------- -----------
TOTAL LIABILITIES .............................. 75,501 107,860 27,382
----------- ----------- -----------
NET ASSETS ......................................... $95,060,715 $44,076,513 $22,077,087
=========== =========== ===========
Net assets consist of:
Paid-in capital .................................... $53,512,415 $46,085,152 $22,229,116
Undistributed net investment income ................ 2,865 2,182 --
Accumulated net realized gains (losses)
from security transactions ..................... 1,105,700 (759,828) (199,597)
Net unrealized appreciation (depreciation)
on investments ................................. 40,439,735 (1,250,993) 47,568
----------- ----------- -----------
Net assets ......................................... $95,060,715 $44,076,513 $22,077,087
=========== =========== ===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ..... 1,968,479 2,186,134 2,167,885
=========== =========== ===========
Net asset value, offering price and
redemption price per share (Note 1) ............ $ 48.29 $ 20.16 $ 10.18
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
==================================================================================
Government Government Alabama
Street Street Tax Free
Equity Bond Bond
Fund Fund Fund
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest ............................. $ 50,372 $1,479,809 $ 528,645
Dividends ............................ 579,708 7,836 11,621
---------- ---------- ----------
TOTAL INVESTMENT INCOME .......... 630,080 1,487,645 540,266
---------- ---------- ----------
EXPENSES
Investment advisory fees (Note 3) .... 291,541 110,039 38,738
Administration fees (Note 3) ......... 82,175 16,417 16,542
Professional fees .................... 5,575 5,575 4,050
Pricing costs ........................ 1,374 5,988 7,036
Printing of shareholder reports ...... 5,264 4,434 4,274
Custodian fees ....................... 7,159 3,629 2,345
Trustees' fees and expenses .......... 3,780 3,780 3,780
Postage and supplies ................. 2,676 1,684 1,085
Registration fees .................... 2,298 1,771 541
Insurance expense .................... 1,736 949 562
Other expenses ....................... 3,313 910 469
---------- ---------- ----------
TOTAL EXPENSES ................... 406,891 155,176 79,422
Fees waived by the Adviser (Note 3) .. -- -- (7,480)
---------- ---------- ----------
NET EXPENSES ..................... 406,891 155,176 71,942
---------- ---------- ----------
NET INVESTMENT INCOME .................... 223,189 1,332,469 468,324
---------- ---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gains (losses)
from security transactions ....... 1,105,700 (206,567) (314)
Net change in unrealized appreciation/
depreciation on investments ...... (907,606) (1,386,742) (770,029)
---------- ---------- ----------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS .............. 198,094 (1,593,309) (770,343)
---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ...................... $ 421,283 $ (260,840) $ (302,019)
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
====================================================================================================================================
Government Street Government Street Alabama Tax Free
Equity Fund Bond Fund Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
Sept. 30, Ended Sept. 30, Ended Sept. 30, Ended
1999 March 31, 1999 March 31, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ................. $ 223,189 $ 486,890 $ 1,332,469 $ 2,376,899 $ 468,324 $ 830,266
Net realized gains (losses)
from security transactions ........ 1,105,700 1,154,015 (206,567) (119,151) (314) (347)
Net change in unrealized appreciation/
depreciation on investments ....... (907,606) 9,951,369 (1,386,742) (251,151) (770,029) 86,422
------------ ------------ ------------ ------------ ------------ -------------
Net increase (decrease) in net assets
from operations ....................... 421,283 11,592,274 (260,840) 2,006,597 (302,019) 916,341
------------ ------------ ------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ............ (220,324) (487,774) (1,330,287) (2,380,755) (468,324) (830,266)
From net realized gains ............... -- (3,083,650) -- -- -- --
------------ ------------ ------------ ------------ ------------ -------------
Decrease in net assets from
distributions to shareholders ......... (220,324) (3,571,424) (1,330,287) (2,380,755) (468,324) (830,266)
------------ ------------ ------------ ------------ ------------ -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ............. 7,359,040 10,535,714 4,208,922 7,618,281 2,017,298 3,032,760
Net asset value of shares issued in
reinvestment of distributions
to shareholders ................... 213,719 3,411,170 1,239,669 2,146,286 385,831 609,745
Payments for shares redeemed .......... (3,420,453) (6,903,321) (2,821,477) (3,257,836) (1,115,671) (2,106,904)
------------ ------------ ------------ ------------ ------------ -------------
Net increase in net assets from
capital share transactions ............ 4,152,306 7,043,563 2,627,114 6,506,731 1,287,458 1,535,601
------------ ------------ ------------ ------------ ------------ -------------
TOTAL INCREASE IN NET ASSETS .............. 4,353,265 15,064,413 1,035,987 6,132,573 517,115 1,621,676
NET ASSETS
Beginning of period ................... 90,707,450 75,643,037 43,040,526 36,907,953 21,559,972 19,938,296
------------ ------------ ------------ ------------ ------------ -------------
End of period ......................... $ 95,060,715 $ 90,707,450 $ 44,076,513 $ 43,040,526 $ 22,077,087 $ 21,559,972
============ ============ ============ ============ ============ =============
UNDISTRIBUTED NET
INVESTMENT INCOME ..................... $ 2,865 $ -- $ 2,182 $ -- $ -- $ --
============ ============ ============ ============ ============ =============
Capital share activity
Sold .................................. 146,775 233,010 203,803 359,195 194,795 286,831
Reinvested ............................ 4,347 77,139 60,966 101,333 37,405 57,694
Redeemed .............................. (68,396) (151,673) (137,859) (153,761) (108,912) (199,887)
------------ ------------ ------------ ------------ ------------ -------------
Net increase in shares outstanding .... 82,726 158,476 126,910 306,767 123,288 144,638
Shares outstanding, beginning of period 1,885,753 1,727,277 2,059,224 1,752,457 2,044,597 1,899,959
------------ ------------ ------------ ------------ ------------ -------------
Shares outstanding, end of period ..... 1,968,479 1,885,753 2,186,134 2,059,224 2,167,885 2,044,597
============ ============ ============ ============ ============ =============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET EQUITY FUND
FINANCIAL HIGHLIGHTS
================================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
================================================================================================================================
Six Months
Ended
Sept. 30, Years Ended March 31,
1999 ---------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ....... $ 48.10 $ 43.79 $ 32.59 $ 29.41 $ 23.87 $ 22.69
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income .................... 0.11 0.27 0.32 0.37 0.40 0.38
Net realized and unrealized
gains on investments ................. 0.19 6.01 12.28 4.50 5.75 1.19
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations ............. 0.30 6.28 12.60 4.87 6.15 1.57
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income ..... (0.11) (0.27) (0.32) (0.36) (0.40) (0.39)
Distributions from net realized gains .... -- (1.70) (1.08) (1.33) (0.21) --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions .......................... (0.11) (1.97) (1.40) (1.69) (0.61) (0.39)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ............. $ 48.29 $ 48.10 $ 43.79 $ 32.59 $ 29.41 $ 23.87
========== ========== ========== ========== ========== ==========
Total return ................................. 0.62% 14.81% 39.31% 16.94% 25.96% 7.02%
========== ========== ========== ========== ========== ==========
Net assets at end of period (000's) ......... $ 95,061 $ 90,707 $ 75,643 $ 49,629 $ 41,421 $ 31,473
========== ========== ========== ========== ========== ==========
Ratio of net expenses to average net assets(a) 0.84%(b) 0.85% 0.86% 0.89% 0.94% 0.91%
Ratio of net investment income
to average net assets .................... 0.46%(b) 0.61% 0.82% 1.17% 1.50% 1.71%
Portfolio turnover rate ...................... 11%(b) 22% 18% 20% 31% 55%
</TABLE>
(a) In an effort to reduce the total operating expenses of the Fund, a portion
of the Fund's administration and 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 1.00% for the year ended March 31, 1995.
(b) Annualized.
See accompanying notes to financial statements.
5
<PAGE>
THE GOVERNMENT STREET BOND FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
=============================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
=============================================================================================================================
Six Months
Ended
Sept. 30, Years Ended March 31,
1999 ---------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period .... $ 20.90 $ 21.06 $ 20.47 $ 20.87 $ 20.33 $ 20.87
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income ................. 0.62 1.27 1.32 1.34 1.35 1.35
Net realized and unrealized
gains (losses) on investments ..... (0.74) (0.16) 0.60 (0.40) 0.54 (0.53)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... (0.12) 1.11 1.92 0.94 1.89 0.82
---------- ---------- ---------- ---------- ---------- ----------
Dividends from net investment income ...... (0.62) (1.27) (1.33) (1.34) (1.35) (1.36)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period .......... $ 20.16 $ 20.90 $ 21.06 $ 20.47 $ 20.87 $ 20.33
========== ========== ========== ========== ========== ==========
Total return .............................. (0.57)% 5.38% 9.61% 4.60% 9.43% 4.12%
========== ========== ========== ========== ========== ==========
Net assets at end of period (000's) ....... $ 44,077 $ 43,041 $ 36,908 $ 29,442 $ 28,718 $ 27,780
========== ========== ========== ========== ========== ==========
Ratio of net expenses to average net assets 0.71%(a) 0.73% 0.74% 0.75% 0.76% 0.85%
Ratio of net investment income
to average net assets ................. 6.05%(a) 6.01% 6.35% 6.44% 6.38% 6.68%
Portfolio turnover rate ................... 24%(a) 17% 10% 20% 10% 11%
</TABLE>
(a) Annualized.
See accompanying notes to financial statements.
6
<PAGE>
THE ALABAMA TAX FREE BOND FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
===============================================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
===============================================================================================================================
Six Months
Ended
Sept. 30, Years Ended March 31,
1999 ---------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ....... $ 10.54 $ 10.49 $ 10.18 $ 10.23 $ 9.96 $ 9.96
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income .................... 0.22 0.44 0.44 0.43 0.42 0.45
Net realized and unrealized
gains (losses) on investments (0.36) 0.05 0.31 (0.05) 0.27 --
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations ............. (0.14) 0.49 0.75 0.38 0.69 0.45
---------- ---------- ---------- ---------- ---------- ----------
Dividends from net investment income ......... (0.22) (0.44) (0.44) (0.43) (0.42) (0.45)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value at end of period ............. $ 10.18 $ 10.54 $ 10.49 $ 10.18 $ 10.23 $ 9.96
========== ========== ========== ========== ========== ==========
Total return ................................. (1.34)% 4.73% 7.44% 3.82% 7.02% 4.66%
========== ========== ========== ========== ========== ==========
Net assets at end of period (000's) .......... $ 22,077 $ 21,560 $ 19,938 $ 16,801 $ 15,480 $ 12,816
========== ========== ========== ========== ========== ==========
Ratio of net expenses to average net assets(a) 0.65%(b) 0.65% 0.65% 0.66% 0.75% 0.75%
Ratio of net investment income
to average net assets .................... 4.23%(b) 4.16% 4.19% 4.24% 4.11% 4.56%
Portfolio turnover rate ...................... 4%(b) 7% 2% 6% 4% 36%
</TABLE>
(a) Absent investment advisory fees waived and/or expenses reimbursed by the
Adviser, the ratios of expenses to average net assets would have been
0.72%(b), 0.76%, 0.75%, 0.78%, 0.86% and 1.05% for the periods ended
September 30, 1999 and March 31, 1999, 1998, 1997, 1996 and 1995,
respectively (Note 3).
(b) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 96.2% Value
- --------------------------------------------------------------------------------
Advertising -- 0.5%
6,000 Omnicom Group, Inc. .......................... $ 475,125
----------
Aerospace -- 0.3%
7,000 Boeing Company ............................... 298,375
----------
Chemicals and Drugs -- 12.5%
40,000 Becton Dickinson & Company ................... 1,122,500
15,000 Biomet, Inc. ................................. 394,688
30,000 Cardinal Health, Inc. ........................ 1,635,000
18,000 duPont (E.I.) de Nemours & Company ........... 1,095,750
16,000 Eli Lilly & Company .......................... 1,024,000
8,000 Goodrich (B.F.) Company ...................... 232,000
15,000 Johnson & Johnson ............................ 1,378,125
20,400 Merck & Company, Inc. ........................ 1,322,175
10,500 Monsanto Company ............................. 374,719
20,500 Pfizer, Inc. ................................. 736,719
40,000 Schering-Plough Corporation .................. 1,745,000
10,000 Sigma-Aldrich Corporation .................... 317,500
9,000 Waters Corporation(a) ........................ 545,063
----------
11,923,239
----------
Construction -- 3.2%
20,000 Caterpiller, Inc. ............................ 1,096,250
15,000 Clayton Homes, Inc. .......................... 130,313
3,000 Florida Rock Industries, Inc. ................ 104,250
8,500 Kaufman & Broad Home Corporation ............. 175,313
10,000 Lowe's Companies, Inc. ....................... 487,500
7,000 Masco Corporation ............................ 217,000
24,000 Valspar Corporation .......................... 784,500
----------
2,995,126
----------
Consumer Products -- 6.6%
20,000 Belo (A.H.) Corporation - Class A ............ 382,500
8,000 Clorox Company (The) ......................... 306,000
13,000 General Motors Corporation ................... 818,188
14,000 Gillette Company ............................. 475,125
6,000 Hewlett-Packard Company ...................... 552,000
2,500 Lexmark International Group, Inc. Class - A(a) 201,250
4,000 Macromedia, Inc.(a) .......................... 163,500
5,000 Maytag Corporation ........................... 166,563
16,500 Microsoft Corporation(a) ..................... 1,494,281
9,000 Newell Company ............................... 257,063
5,000 OshKosh B'Gosh, Inc. - Class A ............... 79,844
15,000 Procter & Gamble Company ..................... 1,406,250
----------
6,302,564
----------
Durable Goods -- 14.4%
11,000 Advanced Micro Devices, Inc.(a) .............. 189,062
92,000 Cisco Systems, Inc.(a) ....................... 6,307,750
6,500 Costco Companies(a) .......................... 468,000
23,500 General Electric Company ..................... 2,786,219
6,000 Ingersoll-Rand Company ....................... 329,625
20,000 Intel Corporation ............................ 1,486,250
6,000 International Business Machines Corporation .. 728,250
12,000 Raytheon Company - Class B ................... 595,500
7,500 Shared Medical Systems, Inc. ................. 350,625
5,118 SPX Corporation(a) ........................... 464,458
----------
13,705,739
----------
8
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 96.2% (Continued) Value
- --------------------------------------------------------------------------------
Electronics -- 2.4%
15,640 Koninklijke (Royal) Philips Electronics N.V $1,579,640
8,500 Motorola, Inc. ............................. 748,000
----------
2,327,640
----------
Financial -- 12.7%
7,899 Aegon N.V .................................. 683,264
9,000 Aetna, Inc. ................................ 443,250
28,000 AFLAC, Inc. ................................ 1,172,500
10,000 American Express Company ................... 1,346,250
14,000 Charles Schwab Corporation (The) ........... 471,625
3,000 Chase Manhattan Corporation ................ 226,125
19,000 Citigroup, Inc. ............................ 836,000
75,000 Firstar Corporation ........................ 1,921,875
20,000 Fleet Financial Group, Inc. ................ 732,500
21,000 Freddie Mac ................................ 1,092,000
10,500 Marsh & McLennan Companies, Inc. ........... 719,250
17,000 MBNA Corporation ........................... 387,812
50,000 Mellon Bank Corporation .................... 1,687,500
21,000 Synovus Financial Corporation .............. 392,437
----------
12,112,388
----------
Food/Beverages -- 2.4%
8,500 Anheuser-Busch Companies, Inc. ............. 595,531
12,000 Campbell Soup Company ...................... 469,500
40,000 Coca-Cola Enterprises ...................... 902,500
9,000 Pilgrim's Pride Corporation - Class A ...... 46,125
20,000 Pilgrim's Pride Corporation - Class B ...... 173,750
3,000 SYSCO Corporation .......................... 105,187
----------
2,292,593
----------
Hotels -- 0.2%
7,000 Marriott International, Inc. - Class A ..... 228,812
----------
Manufacturing -- 4.8%
6,000 AlliedSignal, Inc. ......................... 359,625
5,000 Cooper Tire & Rubber Company ............... 88,125
6,500 Danaher Corporation ........................ 342,469
8,387 Delphi Automotive Systems Corporation ...... 134,716
5,000 General Dynamics Corporation ............... 312,188
8,000 Johnson Controls, Inc. ..................... 530,500
10,000 Leggett & Platt, Inc. ...................... 196,875
4,000 Mueller Industries, Inc.(a) ................ 118,750
6,000 PACCAR Inc. ................................ 305,250
7,000 Pall Corporation ........................... 162,312
19,393 Tyco International Ltd. .................... 2,002,327
----------
4,553,137
----------
Metal and Mining -- 1.3%
13,000 Alcoa, Inc. ................................ 806,812
10,000 Newmont Mining Corporation ................. 258,750
3,000 Phelps Dodge Corporation ................... 165,187
----------
1,230,749
----------
Multimedia -- 0.8%
7,000 Meredith Corporation ....................... 254,187
11,000 Viacom, Inc. - Class A(a) .................. 475,750
----------
729,937
----------
9
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 96.2% (Continued) Value
- --------------------------------------------------------------------------------
Oil/Energy -- 5.6%
16,541 BP Amoco Plc ............................... $1,832,950
10,000 Burlington Resources, Inc. ................. 367,500
13,000 Chevron Corporation ........................ 1,153,750
2,000 Enron Corporation .......................... 82,500
14,650 Exxon Corporation .......................... 1,112,484
11,500 Halliburton Company ........................ 471,500
10,000 Helmerich & Payne, Inc. .................... 253,125
----------
5,273,809
----------
Paper and Forest Products -- 1.2%
5,000 Georgia Pacific Corporation, Timber Group .. 114,375
11,455 International Paper Company ................ 550,556
5,000 Mead Corporation ........................... 171,875
8,000 Willamette Industries, Inc. ................ 345,000
----------
1,181,806
----------
Racetracks -- 0.5%
10,000 Speedway Motorsports, Inc.(a) .............. 433,125
----------
Retail -- 8.0%
8,000 Abercrombie & Fitch Company - Class A(a) ... 272,500
10,710 Albertson's, Inc. .......................... 423,714
6,000 AutoNation, Inc.(a) ........................ 75,375
7,000 AutoZone, Inc.(a) .......................... 196,438
16,000 Circuit City Stores - Circuit City Group ... 675,000
33,000 Home Depot, Inc. ........................... 2,264,625
10,000 Nike, Inc. - Class B ....................... 568,750
9,500 Sears, Roebuck & Company ................... 298,062
31,000 Wal-Mart Stores, Inc. ...................... 1,474,438
38,000 Walgreen Company ........................... 964,250
8,000 Williams-Sonoma, Inc.(a) ................... 388,500
----------
7,601,652
----------
Services - Computer -- 5.1%
5,000 Adobe Systems, Inc. ........................ 567,500
5,000 America Online, Inc.(a) .................... 520,000
22,200 Automatic Data Processing, Inc. ............ 990,675
16,000 Ceridian Corporation(a) .................... 398,000
24,000 Computer Sciences Corporation(a) ........... 1,687,500
9,500 Electronic Data Systems Corporation ........ 502,906
7,000 Safety-Kleen Corporation(a) ................ 84,437
6,000 Wallace Computer Services, Inc. ............ 121,500
----------
4,872,518
----------
Services - Consumer -- 0.1%
8,000 HEALTHSOUTH Corporation(a) ................. 48,500
----------
Telecommunication Equipment -- 4.2%
2,500 Applied Materials, Inc.(a) ................. 194,687
6,000 Lucent Technologies, Inc. .................. 389,250
24,000 Nortel Networks Corporation ................ 1,224,000
18,000 Scientific-Atlanta, Inc. ................... 892,125
22,000 Tellabs, Inc.(a) ........................... 1,252,625
----------
3,952,687
----------
Transportation -- 1.8%
5,000 CNF Transportation, Inc. ................... 186,250
31,000 FDX Corporation(a) ......................... 1,201,250
6,000 Union Pacific Corporation .................. 288,375
----------
1,675,875
----------
10
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 96.2% (Continued) Value
- --------------------------------------------------------------------------------
Utilities -- 7.6%
25,000 Ameritech Corporation ...................... $1,679,688
7,000 AT&T Corporation ........................... 304,500
23,000 BellSouth Corporation ...................... 1,035,000
16,490 Duke Energy Corporation .................... 909,011
15,000 MCI WorldCom, Inc.(a) ...................... 1,078,125
26,000 SBC Communications, Inc. ................... 1,327,625
15,000 US WEST, Inc. .............................. 855,938
----------
7,189,887
----------
Total Common Stocks (Cost $50,965,548) $91,405,283
-----------
================================================================================
Shares MONEY MARKETS -- 3.8% Value
- --------------------------------------------------------------------------------
3,616,186 Firstar Stellar Treasury Fund
(Cost $3,616,186) .......................... $ 3,616,186
-----------
Total Investments at Value-- 100.0%
(Cost $54,581,734) ......................... $95,021,469
Other Assets in Excess of Liabilities-- 0.0% ... 39,246
-----------
Net Assets-- 100.0% ............................ $95,060,715
===========
(a) Non-income producing security.
See accompanying notes to financial statements.
11
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Par Value U.S. TREASURY AND AGENCY OBLIGATIONS -- 32.6% Value
- --------------------------------------------------------------------------------
U.S. Treasury Notes -- 6.9%
$ 250,000 7.50%, due 10/31/1999 ...................... $ 250,547
50,000 7.875%, due 11/15/1999 ..................... 50,203
100,000 8.50%, due 02/15/2000 ...................... 101,281
20,000 8.75%, due 08/15/2000 ...................... 20,581
50,000 8.50%, due 11/15/2000 ...................... 51,641
140,000 8.00%, due 05/15/2001 ...................... 145,031
125,000 7.875%, due 08/15/2001 ..................... 129,844
850,000 5.75%, due 04/30/2003 ...................... 848,672
750,000 5.875%, due 11/15/2005 ..................... 745,079
750,000 5.50%, due 02/15/2008 ...................... 723,516
----------
3,066,395
----------
Federal Farm Credit Bank Bonds-- 1.8%
500,000 6.00%, due 01/07/2008 ...................... 479,370
325,000 6.06%, due 05/28/2013 ...................... 304,048
----------
783,418
----------
Federal Home Loan Bank Bonds-- 6.0%
500,000 7.57%, due 08/19/2004 ...................... 523,548
500,000 6.045%, due 12/10/2004 ..................... 491,003
750,000 5.925%, due 04/09/2008 ..................... 713,519
500,000 5.42%, due 09/23/2008 ...................... 457,352
500,000 5.52%, due 09/23/2008 ...................... 460,712
----------
2,646,134
----------
Federal Home Loan Mortgage Corporation Bonds -- 5.0%
500,000 6.345%, due 11/01/2005 ..................... 495,489
895,000 7.44%, due 09/20/2006 ...................... 901,717
800,000 7.04%, due 01/09/2007 ...................... 795,459
----------
2,192,665
----------
Federal National Mortgage Association Bonds -- 11.8%
500,000 6.63%, due 06/20/2005 ...................... 499,410
650,000 7.65%, due 10/06/2006 ...................... 645,696
500,000 7.36%, due 02/07/2007 ...................... 489,041
400,000 7.70%, due 04/10/2007 ...................... 397,349
500,000 6.62%, due 06/25/2007 ...................... 497,586
500,000 7.16%, due 06/26/2007 ...................... 487,992
500,000 7.00%, due 07/17/2007 ...................... 487,893
750,000 6.08%, due 12/15/2010 ...................... 709,952
400,000 6.80%, due 08/27/2012 ...................... 390,792
600,000 6.875%, due 09/01/2012 ..................... 584,833
----------
5,190,544
----------
Private Export Funding Bonds-- 1.1%
470,000 7.90%, due 03/31/2000 ...................... 475,206
----------
Total U.S. Treasury and Agency Obligations
(Cost $14,969,295) ......................... $14,354,362
-----------
12
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par Value MORTGAGE-BACKED SECURITIES -- 14.7% Value
- --------------------------------------------------------------------------------
Government National Mortgage Association -- 14.7%
$ 14,776 Pool #15032, 7.50%, due 02/15/2007 ......... $ 14,830
395,762 Pool #438434, 6.50%, due 01/15/2013 ........ 388,670
600,224 Pool #470177, 7.00%, due 03/15/2014 ........ 600,689
399,677 Pool #518403, 7.00%, due 09/15/2014 ........ 399,987
14,007 Pool #176413, 7.50%, due 09/15/2016 ........ 14,057
18,406 Pool #170784, 8.00%, due 12/15/2016 ........ 18,830
12,014 Pool #181540, 8.00%, due 02/15/2017 ........ 12,291
490,346 Pool #493659, 6.50%, due 12/15/2018 ........ 468,841
466,424 Pool #476695, 6.50%, due 10/15/2023 ........ 445,968
396,769 Pool #366710, 6.50%, due 02/15/2024 ........ 379,367
519,729 Pool #453826, 7.25%, due 09/15/2027 ........ 514,669
729,472 Pool #412360, 7.00%, due 11/15/2027 ........ 716,267
621,448 Pool #454162, 7.00%, due 05/15/2028 ........ 610,198
485,527 Pool #158794, 7.00%, due 09/15/2028 ........ 476,737
484,023 Pool #48760, 6.50%, due 12/15/2028 ......... 462,794
987,389 Pool #506618, 7.00%, due 03/15/2029 ........ 969,514
----------
Total Mortgage-Backed Securities (Cost $6,714,893) $6,493,709
----------
================================================================================
Par Value CORPORATE BONDS -- 48.3% Value
- --------------------------------------------------------------------------------
Finance -- 23.3%
AmSouth Bancorp,
$ 550,000 7.75%, due 05/15/2004 ...................... $ 562,563
----------
Banc One Corporation,
600,000 7.00%, due 07/15/2005 ...................... 598,627
500,000 6.875%, due 08/01/2006 ..................... 495,131
----------
1,093,758
----------
Bank of America Corporation,
496,000 8.375%, due 03/15/2002 ..................... 516,735
500,000 7.125%, due 03/01/2009 ..................... 497,308
----------
1,014,043
----------
Bear Stearns Company,
170,000 9.375%, due 06/01/2001 ..................... 176,873
----------
General Electric Capital Corporation,
100,000 7.24%, due 01/15/2002 ...................... 101,948
150,000 7.50%, due 03/15/2002 ...................... 153,876
----------
255,824
----------
Merrill Lynch & Company, Inc.,
745,000 7.375%, due 08/17/2002 ..................... 758,943
1,000,000 7.00%, due 04/27/2008 ...................... 978,306
----------
1,737,249
----------
J.P. Morgan & Company,
500,000 7.25%, due 01/15/2002 ...................... 506,339
500,000 6.00%, due 01/15/2009 ...................... 456,773
----------
963,112
----------
NationsBank,
550,000 7.625%, due 04/15/2005 ..................... 563,302
----------
Regions Financial Corporation,
350,000 7.80%, due 12/01/2002 ...................... 360,557
----------
13
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par Value CORPORATE BONDS -- 48.3% (Continued) Value
- --------------------------------------------------------------------------------
Salomon, Inc.,
$ 400,000 7.25%, due 01/15/2000 ...................... $ 401,579
480,000 7.50%, due 02/01/2003 ...................... 490,293
-----------
891,872
-----------
Sears Roebuck Acceptance Corporation,
700,000 6.00%, due 03/20/2003 ...................... 676,026
-----------
SouthTrust Bank of Alabama, N.A.,
665,000 7.00%, due 11/15/2008 ...................... 644,220
-----------
Transamerica Financial Corporation,
785,000 7.50%, due 03/15/2004 ...................... 793,399
-----------
Wachovia Corporation,
535,000 7.00%, due 12/15/1999 ...................... 536,226
-----------
Total Finance Corporate Bonds .................... 10,269,024
-----------
Industrial -- 19.8%
BP America, Inc.,
265,000 8.50%, due 04/15/2001 ...................... 273,790
-----------
Coca-Cola Company,
500,000 6.625%, due 08/01/2004 ..................... 496,193
-----------
Conoco, Inc.,
500,000 6.35%, due 04/15/2009 ...................... 475,841
-----------
Duke Capital Corporation,
500,000 7.50%, due 10/01/2009 ...................... 498,411
-----------
duPont (E.I.) de Nemours & Company,
150,000 9.15%, due 04/15/2000 ...................... 152,655
300,000 6.75%, due 10/15/2002 ...................... 302,857
-----------
455,512
-----------
Ford Motor Company,
1,000,000 7.25%, due 10/01/2008 ...................... 1,008,908
-----------
General Motors Corporation,
515,000 7.10%, due 03/15/2006 ...................... 513,260
-----------
Hanson Overseas,
1,100,000 7.375%, due 01/15/2003 ..................... 1,113,229
-----------
International Business Machines Corporation,
1,000,000 7.25%, due 11/01/2002 ...................... 1,024,411
-----------
Kimberly-Clark Corporation,
240,000 8.625%, due 05/01/2001 ..................... 248,955
-----------
Mobil Corporation,
100,000 8.375%, due 02/12/2001 ..................... 102,696
-----------
Philip Morris Companies, Inc.,
700,000 7.125%, due 10/01/2004 ..................... 698,830
-----------
14
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par Value CORPORATE BONDS -- 48.3% (Continued) Value
- --------------------------------------------------------------------------------
Raytheon Company,
$ 800,000 6.50%, due 07/15/2005 ...................... $ 776,767
-----------
Wal-Mart Stores, Inc.,
170,000 9.10%, due 07/15/2000 ...................... 174,102
100,000 8.625%, due 04/01/2001 ..................... 103,450
745,000 7.50%, due 05/15/2004 ...................... 776,476
-----------
1,054,028
-----------
Total Industrial Corporate Bonds ................. 8,740,831
-----------
Utility -- 5.2%
AT&T Corporation,
500,000 6.00%, due 03/15/2009 ...................... 464,572
-----------
Consolidated Edison,
785,000 7.60%, due 01/15/2000 ...................... 788,809
-----------
Emerson Electric Company,
552,000 6.30%, due 11/01/2005 ...................... 536,945
-----------
Scana Corporation,
500,000 6.05%, due 01/13/2003 ...................... 488,057
-----------
Total Utility Corporate Bonds .................... 2,278,383
-----------
Total Corporate Bonds (Cost $21,703,114) ........ $21,288,238
-----------
================================================================================
Shares MONEY MARKETS -- 3.0% Value
- --------------------------------------------------------------------------------
1,311,225 Firstar Stellar Treasury Fund (Cost $1,311,225) $ 1,311,225
-----------
Total Investments at Value-- 98.6%
(Cost $44,698,527) ......................... $43,447,534
-----------
Other Assets in Excess of Liabilities-- 1.4% ... 628,979
-----------
Net Assets-- 100.0% ............................ $44,076,513
===========
See accompanying notes to financial statements.
15
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS -- 97.4% Value
- --------------------------------------------------------------------------------
Alabama Mental Health Finance Auth. Special Tax,
$ 300,000 5.00%, due 05/01/2006 ...................... $ 304,017
-----------
Alabama Special Care Facilities Financing
Auth. Rev.,
400,000 5.375%, due 11/01/2012 ..................... 390,260
-----------
Alabama State, GO,
100,000 5.70%, due 12/01/2002 ...................... 103,839
-----------
Alabama State Industrial Access Road &
Bridge Corp., GO,
100,000 5.25%, due 06/01/2003 ...................... 102,267
-----------
Alabama State Mun. Elec. Auth. Power Supply Rev.,
150,000 5.625%, due 09/01/2000 ..................... 152,241
340,000 5.75%, due 09/01/2001 ...................... 348,599
400,000 6.50%, due 09/01/2005, prerefunded
09/01/2001 at 101 ...................... 420,928
-----------
921,768
-----------
Alabama State Public School & College Auth. Rev.,
100,000 4.40%, due 12/01/2000 ...................... 100,624
250,000 5.25%, due 11/01/2005 ...................... 257,995
205,000 5.00%, due 12/01/2005 ...................... 208,686
200,000 5.125%, due 11/01/2010 ..................... 200,074
300,000 5.00%, due 11/01/2012 ...................... 290,469
225,000 5.125%, due 11/01/2013 ..................... 219,179
-----------
1,277,027
-----------
Alabama Water Pollution Control Rev.,
190,000 6.25%, due 08/15/2004 ...................... 203,969
-----------
Anniston, AL, GO,
250,000 5.50%, due 01/01/2004 ...................... 259,462
-----------
Anniston, AL, Regional Medical Center Board
Hospital Rev.,
20,000 7.375%, due 07/01/2006, ETM ................ 21,635
-----------
Athens, AL, School Warrants,
335,000 5.05%, due 08/01/2015 ...................... 317,409
-----------
Auburn University, Alabama, Rev.,
150,000 5.20%, due 06/01/2004 ...................... 154,178
325,000 5.25%, due 04/01/2005 ...................... 334,214
-----------
488,392
-----------
Baldwin Co., AL, GO,
200,000 5.85%, due 08/01/2003 ...................... 210,048
400,000 5.00%, due 02/01/2007 ...................... 403,640
200,000 4.55%, due 02/01/2009 ...................... 185,484
-----------
799,172
-----------
Baldwin Co., AL, Board of Education Rev.,
300,000 5.90%, due 12/01/2001 ...................... 303,393
-----------
Birmingham, AL, GO,
100,000 5.80%, due 04/01/2002 ...................... 103,571
200,000 5.90%, due 04/01/2003 ...................... 209,574
-----------
313,145
-----------
16
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS -- 97.4% (Continued) Value
- --------------------------------------------------------------------------------
Birmingham, AL, Industrial Water Board Rev.,
$ 100,000 5.00%, due 03/01/2001 ...................... $ 101,157
100,000 6.00%, due 07/01/2007 ...................... 107,818
-----------
208,975
-----------
Birmingham, AL, Medical Clinic Board Rev.,
60,000 7.30%, due 07/01/2005, ETM ................. 64,913
-----------
Birmingham, AL, Waterworks & Sewer Board Rev.,
50,000 5.90%, due 01/01/2003 ...................... 52,616
400,000 6.15%, due 01/01/2006 ...................... 423,052
-----------
475,668
-----------
Birmingham-Southern College, AL, Private
Education Bldg. Auth. Rev.,
500,000 5.10%, due 12/01/2012 ...................... 479,045
-----------
DCH Health Care Auth. of Alabama Rev.,
55,000 5.00%, due 06/01/2004 ...................... 55,888
-----------
Decatur, AL, GO,
300,000 5.00%, due 06/01/2009 ...................... 299,751
-----------
Decatur, AL, Water Rev.,
100,000 5.00%, due 05/01/2014 ...................... 94,832
-----------
Fairhope, AL, Public Improvements Warrants,
295,000 5.10%, due 06/01/2014 ...................... 282,286
-----------
Fairhope, AL, Utility Rev.,
200,000 5.10%, due 12/01/2008 ...................... 200,888
-----------
Florence, AL, School Warrants,
200,000 4.65%, due 12/01/2012 ...................... 185,196
400,000 5.75%, due 09/01/2015 ...................... 405,440
-----------
590,636
-----------
Greenville, AL, GO,
300,000 5.10%, due 12/01/2009 ...................... 301,725
-----------
Hoover, AL, Board of Education, GO,
400,000 6.00%, due 02/15/2006 ...................... 425,868
-----------
Hoover, AL, Board of Education Special Tax,
200,000 6.625%, due 02/01/2010, prerefunded
02/01/2001 at 102 .......................... 210,248
-----------
Houston Co., AL, GO,
250,000 5.00%, due 07/01/2002 ...................... 254,415
-----------
Huntsville, AL, GO,
115,000 5.15%, due 08/01/2000 ...................... 116,303
100,000 5.20%, due 11/01/2000 ...................... 101,439
500,000 5.50%, due 11/01/2002 ...................... 516,710
100,000 5.90%, due 11/01/2005 ...................... 106,247
300,000 5.40%, due 02/01/2010 ...................... 303,504
250,000 5.25%, due 11/01/2011 ...................... 249,545
-----------
1,393,748
-----------
17
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS -- 97.4% (Continued) Value
- --------------------------------------------------------------------------------
Huntsville, AL, Electric Systems Rev.,
$ 150,000 6.10%, due 12/01/2000 ...................... $ 153,790
150,000 5.00%, due 12/01/2003 ...................... 153,042
250,000 4.80%, due 12/01/2012 ...................... 233,825
-----------
540,657
-----------
Huntsville, AL, Water Systems Rev.,
150,000 5.15%, due 05/01/2004 ...................... 153,807
150,000 5.25%, due 05/01/2005 ...................... 153,611
200,000 4.70%, due 11/01/2013 ...................... 182,030
-----------
489,448
-----------
Jefferson Co., AL, GO,
150,000 5.55%, due 04/01/2002 ...................... 154,296
100,000 5.00%, due 04/01/2004 ...................... 101,773
-----------
256,069
-----------
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 ...................... 143,254
50,000 5.50%, due 09/01/2003, ETM ................. 51,935
300,000 5.75%, due 09/01/2005 ...................... 315,921
-----------
511,110
-----------
Lee Co., AL, GO,
300,000 5.50%, due 02/01/2007 ...................... 311,709
-----------
Madison, AL, Warrants,
325,000 5.55%, due 04/01/2007 ...................... 338,959
200,000 4.40%, due 02/01/2011 ...................... 183,578
400,000 4.85%, due 02/01/2013 ...................... 374,116
-----------
896,653
-----------
Madison Co., AL, Board of Education Capital
Outlay Tax Antic. Warrants,
175,000 5.20%, due 09/01/2004 ...................... 182,133
250,000 5.10%, due 09/01/2011 ...................... 245,612
-----------
427,745
-----------
Mobile, AL, GO,
200,000 5.40%, due 08/15/2000 ...................... 202,824
25,000 6.25%, due 08/01/2001 ...................... 25,924
25,000 6.30%, due 08/01/2001 ...................... 25,946
275,000 6.20%, due 02/15/2007, ETM ................. 297,063
180,000 5.75%, due 02/15/2016 ...................... 181,174
-----------
732,931
-----------
Mobile, AL, Water & Sewer Commissioners Rev.,
55,000 6.30%, due 01/01/2003 ...................... 57,987
-----------
Mobile Co., AL, GO,
50,000 6.10%, due 02/01/2002, prerefunded
02/01/2000 at 102 .......................... 51,382
160,000 6.70%, due 02/01/2011, prerefunded
02/01/2000 at 102 .......................... 164,755
-----------
216,137
-----------
Mobile Co., AL, Board of Education Capital
Outlay Warrants,
400,000 5.00%, due 03/01/2008 ...................... 400,856
-----------
Mobile Co., AL, Gas Tax Antic. Warrants,
100,000 4.50%, due 02/01/2003 ...................... 100,170
-----------
18
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS -- 97.4% (Continued) Value
- --------------------------------------------------------------------------------
Montgomery, AL, GO,
$ 200,000 4.70%, due 05/01/2002 ...................... $ 201,882
500,000 5.10%, due 10/01/2008 ...................... 504,310
-----------
706,192
-----------
Montgomery, AL, Waterworks & Sanitation Rev.,
200,000 5.85%, due 03/01/2003 ...................... 208,332
400,000 5.60%, due 09/01/2009 ...................... 414,460
-----------
622,792
-----------
Montgomery Co., AL, GO,
100,000 5.20%, due 11/01/2006 ...................... 101,963
-----------
Mountain Brook, AL, Board of Education Capital
Outlay Warrants,
405,000 4.80%, due 02/15/2011 ...................... 386,973
-----------
Muscle Shoals, AL, GO,
400,000 5.60%, due 08/01/2010 ...................... 412,316
-----------
Opelika, AL, GO,
100,000 4.60%, due 03/01/2003 ...................... 100,644
100,000 5.30%, due 07/01/2003 ...................... 103,075
-----------
203,719
-----------
Scottsboro, AL, Waterworks Sewer & Gas Rev.,
200,000 4.35%, due 08/01/2011 ...................... 181,894
-----------
Shelby Co., AL, GO,
205,000 5.20%, due 08/01/2000 ...................... 207,439
50,000 5.35%, due 08/01/2001 ...................... 51,074
-----------
258,513
-----------
Shelby Co., AL, Hospital Board Rev.,
35,000 6.60%, due 02/01/2001, ETM ................. 36,092
25,000 6.60%, due 02/01/2002, ETM ................. 26,246
40,000 6.60%, due 02/01/2003, ETM ................. 42,610
-----------
104,948
-----------
Tuscaloosa, AL, Board of Education, GO,
100,000 5.10%, due 02/01/2004 ...................... 102,215
300,000 4.625%, due 08/01/2008 ..................... 292,965
-----------
395,180
-----------
Tuscaloosa, AL, Board of Education Special
Tax Warrants,
75,000 5.70%, due 02/15/2005 ...................... 78,092
125,000 6.00%, due 02/15/2009 ...................... 131,507
300,000 4.85%, due 02/15/2013 ...................... 278,142
-----------
487,741
-----------
University of Alabama General Fee Series A Rev.,
250,000 4.15%, due 10/01/1999 ...................... 250,002
50,000 5.00%, due 11/01/2000 ...................... 50,631
240,000 5.10%, due 10/01/2002 ...................... 245,354
400,000 5.25%, due 06/01/2010 ...................... 403,296
100,000 5.375%, due 06/01/2013 ..................... 99,657
-----------
1,048,940
-----------
19
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
Par Value OBLIGATION (GO) BONDS -- 97.4% (Continued) Value
- --------------------------------------------------------------------------------
Vestavia Hills, AL, Board of Education Capital
Outlay Rev.,
$ 55,000 5.25%, due 02/01/2004 ...................... $ 56,496
-----------
Vestavia Hills, AL, Warrants,
125,000 4.90%, due 04/01/2005 ...................... 126,441
-----------
Total Alabama Bonds (Cost $21,452,447) ......... $21,500,015
-----------
================================================================================
Shares MONEY MARKETS -- 1.4% Value
- --------------------------------------------------------------------------------
302,001 Firstar Tax-Free Money Market Fund
(Cost $302,001) ............................ $ 302,001
-----------
Total Investments at Value-- 98.8%
(Cost $21,754,448) ......................... $21,802,016
-----------
Other Assets in Excess of Liabilities-- 1.2% ... 275,071
-----------
Net Assets-- 100.0% ............................ $22,077,087
===========
ETM - Escrowed to maturity.
See accompanying notes to financial statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Government Street Equity Fund, The Government Street Bond Fund, and The
Alabama Tax Free Bond Fund (the Funds) are each a no-load series of The
Williamsburg Investment Trust (the Trust). The Trust, an open-end management
investment company registered under the Investment Company Act of 1940, 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.
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.
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.
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
(normally 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 in the
over-the-counter market, and common stocks will ordinarily be traded on a
national securities exchange, but may also be traded in 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 may 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.
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 dividends and capital gain
distributions are determined in accordance with income tax regulations.
21
<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 September 30, 1999:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Government Government Alabama
Street Street Tax Free
Equity Fund Bond Fund Bond Fund
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized appreciation ............ $ 42,729,685 $ 200,016 $ 381,729
Gross unrealized depreciation ............ (2,289,950) (1,451,009) (334,161)
------------ ------------ ------------
Net unrealized appreciation (depreciation) $ 40,439,735 $ (1,250,993) $ 47,568
============ ============ ============
Federal income tax cost .................. $ 54,581,734 $ 44,698,527 $ 21,754,448
============ ============ ============
- ------------------------------------------------------------------------------------------
</TABLE>
As of March 31, 1999, The Government Street Bond Fund and The Alabama Tax Free
Bond Fund had capital loss carryforwards for federal income tax purposes of
$540,121 and $199,283, respectively, which expire through the year 2007. In
addition, The Government Street Bond Fund had net realized capital losses of
$13,140 during the period from November 1, 1998 through March 31, 1999, which
are treated for federal income tax purposes as arising during the Fund's tax
year ending March 31, 2000. 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 six months ended September 30, 1999, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $9,354,885 and $5,059,356, respectively, for The
Government Street Equity Fund, $6,878,560 and $4,920,976, respectively, for The
Government Street Bond Fund, and $2,064,279 and $355,000, respectively, for The
Alabama Tax Free Bond Fund.
22
<PAGE>
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.
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 $7,480 of its investment advisory fees for the
Fund during the six months ended September 30, 1999.
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 CFS 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.
23
<PAGE>
<PAGE>
DAVENPORT
EQUITY FUND
-----------
SEMI-ANNUAL REPORT
September 30, 1999
(Unaudited)
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
Firstar Bank
425 Walnut Street
Cincinnati, Ohio 45202
INDEPENDENT AUDITORS
Tait, Weller & Baker
Eight Penn Center Plaza, Suite 800
Philadelphia, Pennsylvania 19103
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.
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
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
<PAGE>
LETTER TO SHAREHOLDERS October 13, 1999
================================================================================
Dear Fellow Shareholder:
The stock market lost ground in the September quarter-- an unusual occurrence
for many investors who have become accustomed to higher stock valuations at
least monthly, if not daily. For the quarter ended September 30, 1999, the S&P
500 was down 6.3%, which resulted in a somewhat meager year-to-date gain of just
over 5%. The fact that the S&P 500 is still up in 1999 masks the fact that for
most stocks this has been a terrible year. The average stock in the S&P 500 is
now down 23.5% from its 52-week high. Additionally, over half of all the stocks
in the S&P 500 are lower now than they were at the beginning of the year. So the
odds of owning a winning portfolio this year are now significantly less than
50/50.
The one very bright spot for the market continues to be the technology sector.
This area has grown to represent over 25% of the S&P 500 and is up 30%
year-to-date. Interestingly, excluding the technology stocks, the S&P 500 has
actually been down this year. Even more interesting is the narrow breadth of the
market. By this I mean that a select group of stocks has been almost entirely
responsible for the gains this year. In fact, only four technology stocks have
accounted for more than half of the S&P's 1999 performance through September.
They were Microsoft, Cisco, General Electric and IBM. Portfolios that didn't
hold at least a representative sampling of these stocks lagged.
September is historically the worst month for the stock market with October a
close second. So far in October, stock market volatility has definitely
increased and, very recently, the technology sector has begun to show some signs
of strain. Earnings reports have been somewhat erratic and fears of inflation
have become more prevalent. Investor sentiment seems to have shifted slightly.
The environment is no longer the best of all worlds for sky-high valuation
levels.
Our portfolio remains conservatively composed. While we have increased our
technology holdings, they are still significantly below that of the market as a
whole. Our portfolio is also well-diversified with the goal of increasing the
consistency of performance while managing risk.
We have always been attracted to value and this has made it difficult for us to
keep pace with the S&P 500 for the past several years as stocks with almost no
sales, no earnings and no history have gained oversized market valuations. Value
stocks are typically defined as companies with long histories, usually dividend
payers and, most importantly, selling at a market valuation which represents a
discount to their peer group. These stocks have fared relatively poorly for the
last four or five years. While our portfolio is not dominated by value stocks,
we do have a tendency to be attracted to this arena. For example, our average
equity holding sells at a discount to the price/earnings ratio of the stock
market as a whole, while boasting a slightly higher five and ten year growth
rate. We fully expect this style of investing to cycle back into favor (just as
growth stocks were out of favor in 1993 and 1994), perhaps hastened by falling
stock prices in the more glamorous but less tested technology and Internet
sectors.
Speaking of the Internet, Jeff Bezos, the head of Amazon.com, made some
interesting comments at a recent meeting of Internet executives in California.
In the 1920's, the ".com" stocks of that era usually had the word "motor" in
their name. The hottest area in that decade was the fledgling automotive
industry. There were literally hundreds of companies attempting to capitalize on
the car craze. Of all of them, only three exist today. Bezos went on to say that
if one had invested a dollar in each, you would still be in the red. Looking
towards the future, he predicted that that is what will happen to the Internet
economy, only faster. Of the hundreds of Internet companies around now, only a
handful are likely to survive.
2
<PAGE>
The Internet is surely a development of historic proportions, but that doesn't
mean that every company in this area is destined to make a lot of money. In our
view, one of the most important roles the Internet is playing is helping to keep
inflation in check as consumers are able to comparison shop in a way that they
never have been able to before, with vendors who are not encumbered by much, if
any, overhead. This will change the way we do business as consumers. However,
what is good for the consumer is not necessarily good for the investor.
As always, we plan to remain fully invested. While the Federal Reserve's current
leanings toward raising interest rates may put a temporary cap on equity prices,
we remain confident that, over the long haul, equity investing will prove
rewarding.
Please do not hesitate to contact us with any concerns or questions you may
have.
Sincerely,
/s/ Joseph L. Antrim, CFA
Joseph L. Antrim, CFA
Executive Vice President
3
<PAGE>
THE DAVENPORT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
ASSETS
Investments in securities:
At acquisition cost .................................... $ 57,608,926
============
At market value (Note 1) ............................... $ 63,148,929
Dividends receivable ...................................... 69,197
Receivable for capital shares sold ........................ 191,642
Other assets .............................................. 20,798
------------
TOTAL ASSETS ........................................... 63,430,566
------------
LIABILITIES
Dividends payable ......................................... 3,864
Payable for capital shares redeemed ....................... 91,106
Accrued investment advisory fees (Note 3) ................. 42,010
Accrued administration fees (Note 3) ...................... 9,725
Other accrued expenses and liabilities .................... 10,343
------------
TOTAL LIABILITIES ...................................... 157,048
------------
NET ASSETS ................................................... $ 63,273,518
============
Net assets consist of:
Paid-in capital .............................................. $ 58,675,674
Undistributed net investment income .......................... 7,923
Accumulated net realized losses from security transactions ... (950,082)
Net unrealized appreciation on investments ................... 5,540,003
------------
Net assets ................................................... $ 63,273,518
============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ................ 5,359,100
============
Net asset value, offering price and redemption
price per share (Note 1) .................................. $ 11.81
============
See accompanying notes to financial statements.
4
<PAGE>
THE DAVENPORT EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended September 30, 1999 (Unaudited)
================================================================================
INVESTMENT INCOME
Dividends ................................................. $ 444,440
Interest .................................................. 30,352
-----------
TOTAL INVESTMENT INCOME ................................ 474,792
-----------
EXPENSES
Investment advisory fees (Note 3) ......................... 236,856
Administration fees (Note 3) .............................. 56,711
Registration fees ......................................... 6,136
Custodian fees ............................................ 5,800
Professional fees ......................................... 4,625
Trustees' fees and expenses ............................... 3,780
Printing of shareholder reports ........................... 2,823
Postage and supplies ...................................... 1,467
-----------
TOTAL EXPENSES ......................................... 318,198
-----------
NET INVESTMENT INCOME ........................................ 156,594
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions ............. 337,741
Net change in unrealized appreciation/
depreciation on investments ............................ (1,626,213)
-----------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS ............ (1,288,472)
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS ................... $(1,131,878)
===========
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
=========================================================================================================
Six Months
Ended Year
September 30, Ended
1999 March 31,
(Unaudited) 1999
- ---------------------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income ............................................... $ 156,594 $ 282,941
Net realized gains (losses) from security transactions .............. 337,741 (1,287,823)
Net change in unrealized appreciation/depreciation on investments ... (1,626,213) 5,647,305
------------ ------------
Net increase (decrease) in net assets from operations .................. (1,131,878) 4,642,423
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .......................................... (171,243) (284,973)
From net realized gains ............................................. -- (22,572)
------------ ------------
Decrease in net assets from distributions to shareholders .............. (171,243) (307,545)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................................... 10,882,981 33,435,301
Net asset value of shares issued in reinvestment
of distributions to shareholders ................................. 163,898 292,444
Payments for shares redeemed ........................................ (2,828,140) (6,398,898)
------------ ------------
Net increase in net assets from capital share transactions ............. 8,218,739 27,328,847
------------ ------------
TOTAL INCREASE IN NET ASSETS ........................................... 6,915,618 31,663,725
NET ASSETS
Beginning of period ................................................. 56,357,900 24,694,175
------------ ------------
End of period (including undistributed net investment
income of $7,923 and 22,572, respectively) ....................... $ 63,273,518 $ 56,357,900
============ ============
CAPITAL SHARE ACTIVITY
Sold ................................................................ 881,888 3,018,408
Reinvested .......................................................... 13,480 26,301
Redeemed ............................................................ (229,082) (569,249)
------------ ------------
Net increase in shares outstanding .................................. 666,286 2,475,460
Shares outstanding at beginning of period ........................... 4,692,814 2,217,354
------------ ------------
Shares outstanding at end of period ................................. 5,359,100 4,692,814
============ ============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
THE DAVENPORT EQUITY FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Period
- -------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Period
September 30, Ended Ended
1999 March 31, March 31,
(Unaudited) 1999 1998(a)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period ..................... $ 12.01 $ 11.14 $ 10.00
---------- ---------- ----------
Income (loss) from investment operations:
Net investment income ................................... 0.03 0.06 0.01
Net realized and unrealized gains (losses) on investments (0.20) 0.88 1.13
---------- ---------- ----------
Total from investment operations ........................... (0.17) 0.94 1.14
---------- ---------- ----------
Less distributions:
Dividends from net investment income .................... (0.03) (0.06) --
Distributions from net realized gains ................... -- (0.01) --
---------- ---------- ----------
Total distributions ........................................ (0.03) (0.07) --
---------- ---------- ----------
Net asset value at end of period ........................... $ 11.81 $ 12.01 $ 11.14
========== ========== ==========
Total return ............................................... (1.40)% 8.53% 11.40%
========== ========== ==========
Net assets at end of period (000's) ........................ $ 63,274 $ 56,358 $ 24,694
========== ========== ==========
Ratio of net expenses to average net assets(b) ............. 1.01%(c) 1.14% 1.15%(c)
Ratio of net investment income to average net assets ....... 0.50%(c) 0.64% 0.76%(c)
Portfolio turnover rate .................................... 13%(c) 15% 17%(c)
</TABLE>
(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) for the period ended March 31, 1998.
(c) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1999 (Unaudited)
================================================================================
Market
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 4.0%
21,020 Alcoa, Inc. ...................................... $ 1,304,554
22,612 Chesapeake Corporation ........................... 684,013
16,559 Cleveland-Cliffs, Inc. ........................... 515,399
------------
2,503,966
------------
CHEMICALS AND DRUGS -- 5.8%
22,612 Air Products & Chemicals, Inc. ................... 657,161
21,182 Merck & Company, Inc. ............................ 1,372,858
37,580 Schering-Plough Corporation ...................... 1,639,428
------------
3,669,447
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES-- 16.1%
22,612 Allied Signal, Inc. .............................. 1,355,307
18,251 Cisco Systems, Inc.(a) ........................... 1,251,334
18,000 EMC Corporation(a) ............................... 1,285,875
14,984 Hewlett-Packard Company .......................... 1,378,528
24,203 Intel Corporation ................................ 1,798,585
14,827 Lockheed Martin Corporation ...................... 484,658
19,517 Media General, Inc. .............................. 1,000,246
10,121 Microsoft Corporation(a) ......................... 916,583
8,471 Motorola, Inc. ................................... 745,448
------------
10,216,564
------------
CONGLOMERATES -- 1.3%
445 Berkshire Hathaway, Inc. - Class B(a) ............ 825,920
------------
CONSUMER PRODUCTS -- 17.1%
22,612 American Home Products Corporation ............... 938,398
17,837 Amgen, Inc.(a) ................................... 1,453,716
19,000 Avery Dennison Corporation ....................... 1,002,250
27,386 Bristol-Myers Squibb Company ..................... 1,848,555
18,151 Ford Motor Company ............................... 910,953
18,151 Gillette Company ................................. 616,000
16,559 Johnson & Johnson ................................ 1,521,358
46,815 SYSCO Corporation ................................ 1,641,451
23,371 Zale Corporation(a) .............................. 895,401
------------
10,828,082
------------
DURABLE GOODS -- 9.4%
13,691 Deere & Company .................................. 529,671
10,591 General Electric Company ......................... 1,255,695
15,295 Koninklijke Philips Electronics N.V .............. 1,544,795
17,764 Martin Marietta Materials, Inc. .................. 709,450
24,203 Norfolk Southern Corporation ..................... 592,974
62,102 Tredegar Industries, Inc. ........................ 1,327,430
------------
5,960,015
------------
8
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Market
Shares COMMON STOCKS-- 97.3% (Continued) Value
- --------------------------------------------------------------------------------
ENTERTAINMENT -- 3.2%
29,098 AT&T Corporation - Liberty Media Group(a) ........ $ 1,080,263
36,307 The Walt Disney Company .......................... 939,444
------------
2,019,707
------------
FINANCIAL SERVICES -- 13.4%
18,703 American International Group, Inc. ............... 1,625,992
22,612 BB&T Corporation ................................. 732,064
26,758 Capital One Financial Corporation ................ 1,043,562
16,559 CCB Financial Corporation ........................ 689,268
28,664 Federal Realty Investments Trust ................. 600,153
9,235 Markel Corporation(a) ............................ 1,681,347
22,612 St. Paul Companies, Inc. ......................... 621,830
13,691 SunTrust Banks, Inc. ............................. 900,183
7,413 Wachovia Corporation ............................. 582,847
------------
8,477,246
------------
FOOD/BEVERAGES -- 4.6%
22,690 Anheuser-Busch Company, Inc. ..................... 1,589,718
13,691 Coca-Cola Company ................................ 658,024
27,067 Sara Lee Corporation ............................. 634,383
------------
2,882,125
------------
OIL/ENERGY -- 10.8%
8,921 Atlantic Richfield Company ....................... 790,624
10,591 Chevron Corporation .............................. 939,951
32,288 Conoco, Inc. - Class B ........................... 883,909
33,118 Enron Corporation ................................ 1,366,117
22,612 Halliburton Company .............................. 927,092
10,591 Mobil Corporation ................................ 1,067,043
13,691 Schlumberger Limited ............................. 853,120
------------
6,827,856
------------
RETAIL STORES -- 5.1%
37,663 Circuit City Stores, Inc. ........................ 1,588,908
22,612 Saks, Inc.(a) .................................... 343,420
50,317 Walgreen Company ................................. 1,276,794
------------
3,209,122
------------
UTILITIES -- 6.5%
20,088 AT&T Corporation ................................. 873,828
24,203 Cox Communications, Inc.(a) ...................... 1,010,475
10,837 MCI WorldCom, Inc.(a) ............................ 778,909
28,664 SBC Communications, Inc. ......................... 1,463,655
------------
4,126,867
------------
Total Common Stocks (Cost $56,006,914) ........... $ 61,546,917
------------
9
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Market
Shares MONEY MARKETS -- 2.5% Value
- --------------------------------------------------------------------------------
1,602,012 Firstar Stellar Treasury Fund (Cost $1,602,012) .. $ 1,602,012
------------
TOTAL INVESTMENTS AT VALUE-- 99.8%
(Cost $57,608,926) ............................... $ 63,148,929
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.2% ..... 124,589
------------
NET ASSETS-- 100.0% $ 63,273,518
============
(a) Non-income producing security.
See accompanying notes to financial statements.
10
<PAGE>
THE DAVENPORT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1999 (Unaudited)
================================================================================
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. 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
(normally 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 may enter into joint repurchase agreements with
other funds within the Trust. The joint repurchase agreement, which is
collateralized by U.S. Government obligations, is valued at cost which, together
with accrued interest, approximates market. At the time the 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.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are 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 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.
11
<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
investment securities of $57,608,926 as of September 30, 1999:
Gross unrealized appreciation ......................... $ 10,206,709
Gross unrealized depreciation ......................... (4,666,706)
------------
Net unrealized appreciation ........................... $ 5,540,003
============
As of March 31,1999, the Fund had capital loss carryforwards for federal income
tax purposes of $334,879, which expire through the year 2007. In addition, the
Fund had net realized capital losses of $952,944 during the period from November
1, 1998 through March 31,1999, which are treated for federal income tax purposes
as arising during the Fund's tax year ending March 31, 2000. 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 six months ended September 30, 1999, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $11,584,380 and $4,071,664, 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. Certain 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 Fund. For these services, CFS receives a monthly fee from the
Fund at an annual rate of .20% on its average daily net assets up to $25
million; .175% on the next $25 million of such net assets; and .15% on such net
assets in excess of $50 million, subject to a $2,000 minimum monthly fee. In
addition, the Fund pays CFS 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.
12
<PAGE>
THE
JAMESTOWN
FUNDS
NO-LOAD FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1999
(UNAUDITED)
INVESTMENT ADVISER
LOWE, BROCKENBROUGH & COMPANY, INC.
RICHMOND, VIRGINIA
THE JAMESTOWN FUNDS
INVESTMENT ADVISER
Lowe, Brockenbrough & Company, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230
ADMINISTRATOR
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
1-800-443-4249
INDEPENDENT AUDITORS
Tait, Weller & Baker
Eight Penn Center Plaza, Suite 800
Philadelphia, Pennsylvania 19103
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.
J. Finley Lee, Jr.
Richard Mitchell
Richard L. Morrill
Harris V. Morrissette
Erwin H. Will, Jr.
Samuel B. Witt, III
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
=================================================================================================================
JAMESTOWN JAMESTOWN
JAMESTOWN JAMESTOWN TAX EXEMPT INTERNATIONAL
BALANCED EQUITY VIRGINIA EQUITY
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ........................ $ 84,007,316 $ 43,243,765 $ 27,235,057 $ 44,061,407
============ ============ ============ ============
At value (Note 1) .......................... $113,346,977 $ 63,960,964 $ 27,039,705 $ 59,059,622
Cash ........................................... -- -- -- 1,604,371
Cash denominated in foreign currency ........... -- -- -- 5,082
Dividends receivable ........................... 67,630 59,424 1,471 212,848
Interest receivable ............................ 554,957 -- 387,111 --
Receivable for securities sold ................. 599,396 494,493 680,582 237,159
Receivable for capital shares sold ............. 882 1,931 -- 1,835,410
Net unrealized appreciation on forward foreign
currency exchange contracts (Note 6) ....... -- -- -- 1,143
Other assets ................................... 9,838 30,076 4,366 11,629
------------ ------------ ------------ ------------
TOTAL ASSETS ............................... 114,579,680 64,546,888 28,113,235 62,967,264
------------ ------------ ------------ ------------
LIABILITIES
Dividends payable .............................. 27,197 3,887 31,071 --
Payable for securities purchased ............... 1,125,278 984,619 1,012,220 362,802
Payable for capital shares redeemed ............ 56,454 33,731 9,219 --
Accrued investment advisory fees (Note 3) ...... 61,466 34,899 8,925 49,804
Accrued administration fees (Note 3) ........... 16,000 9,750 3,400 11,650
Other accrued expenses and liabilities ......... 4,086 5,069 3,631 34,258
------------ ------------ ------------ ------------
TOTAL LIABILITIES .......................... 1,290,481 1,071,955 1,068,466 458,514
------------ ------------ ------------ ------------
NET ASSETS ......................................... $113,289,199 $ 63,474,933 $ 27,044,769 $ 62,508,750
============ ============ ============ ============
Net assets consist of:
Paid-in capital ................................ $ 83,320,241 $ 42,701,857 $ 27,350,278 $ 44,478,536
Undistributed net investment income ............ 6,699 5,025 -- 158,400
Accumulated net realized gains (losses) from
security and foreign currency transactions . 622,598 50,852 (110,157) 2,872,701
Net unrealized appreciation (depreciation)
on investments ............................. 29,339,661 20,717,199 (195,352) 14,998,215
Net unrealized appreciation on translation of
assets and liabilities in foreign currencies -- -- -- 898
------------ ------------ ------------ ------------
Net assets ......................................... $113,289,199 $ 63,474,933 $ 27,044,769 $ 62,508,750
============ ============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ..... 6,298,547 2,902,811 2,746,794 4,142,268
============ ============ ============ ============
Net asset value, offering price and redemption
price per share (Note 1) ....................... $ 17.99 $ 21.87 $ 9.85 $ 15.09
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
======================================================================================================================
JAMESTOWN JAMESTOWN
JAMESTOWN JAMESTOWN TAX EXEMPT INTERNATIONAL
BALANCED EQUITY VIRGINIA EQUITY
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ............................................ $ 347,272 $ 280,927 $ 8,108 $ 602,111
Foreign withholding taxes on dividends ............... -- -- -- (68,778)
Interest ............................................. 1,169,027 51,520 630,752 52,019
----------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME .......................... 1,516,299 332,447 638,860 585,352
----------- ----------- ----------- -----------
EXPENSES
Investment advisory fees (Note 3) .................... 372,563 211,324 52,823 288,481
Administration fees (Note 3) ......................... 95,155 58,036 19,769 66,971
Custodian fees ....................................... 7,898 4,526 2,417 40,296
Registration fees .................................... 8,599 6,683 318 8,267
Professional fees .................................... 6,780 4,050 4,050 6,020
Pricing costs ........................................ 5,605 442 3,680 4,642
Trustees' fees and expenses .......................... 3,965 3,965 3,965 3,965
Printing of shareholder reports ...................... 3,650 4,005 2,142 3,275
Other expenses ....................................... 714 14 1,609 5,035
----------- ----------- ----------- -----------
TOTAL EXPENSES ................................... 504,929 293,045 90,773 426,952
Expenses reimbursed through a directed
brokerage arrangement (Note 4) ................... (12,000) (9,000) -- --
----------- ----------- ----------- -----------
NET EXPENSES ..................................... 492,929 284,045 90,773 426,952
----------- ----------- ----------- -----------
NET INVESTMENT INCOME .................................... 1,023,370 48,402 548,087 158,400
----------- ----------- ----------- -----------
REALIZEDAND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
AND FOREIGN CURRENCIES (Note 5)
Net realized gains (losses) from:
Security transactions ............................ 702,461 434,907 (136,525) 2,123,977
Foreign currency transactions .................... -- -- -- 62,493
Net change in unrealized appreciation/depreciation on:
Investments ...................................... (1,537,685) (147,704) (859,161) 3,515,854
Foreign currency translation ..................... -- -- -- (4,194)
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
AND FOREIGN CURRENCIES ............................... (835,224) 287,203 (995,686) 5,698,130
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ...................................... $ 188,146 $ 335,605 $ (447,599) $ 5,856,530
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
==========================================================================================================================
JAMESTOWN JAMESTOWN
BALANCED FUND EQUITY FUND
------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ............................ $ 1,023,370 $ 2,044,580 $ 48,402 $ 194,305
Net realized gains (losses) from
security transactions ........................ 702,461 1,234,403 434,907 (369,569)
Net change in unrealized appreciation/
depreciation on investments .................. (1,537,685) 4,507,324 (147,704) 5,043,678
------------- ------------- ------------- -------------
Net increase in net assets from operations ........... 188,146 7,786,307 335,605 4,868,414
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ....................... (1,016,671) (2,047,558) (43,377) (198,327)
From net realized gains from security transactions -- (1,302,068) -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders .................................. (1,016,671) (3,349,626) (43,377) (198,327)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................ 5,140,406 13,392,101 3,419,568 11,342,221
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. 960,405 3,140,088 37,547 171,755
Payments for shares redeemed ..................... (4,786,892) (9,573,352) (3,690,378) (4,982,200)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets from
capital share transactions ....................... 1,313,919 6,958,837 (233,263) 6,531,776
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ......................... 485,394 11,395,518 58,965 11,201,863
NET ASSETS
Beginning of period .............................. 112,803,805 101,408,287 63,415,968 52,214,105
------------- ------------- ------------- -------------
End of period .................................... $ 113,289,199 $ 112,803,805 $ 63,474,933 $ 63,415,968
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold ............................................. 281,035 766,478 152,097 565,307
Reinvested ....................................... 52,529 178,274 1,690 8,737
Redeemed ......................................... (261,209) (554,334) (165,884) (248,873)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding .... 72,355 390,418 (12,097) 325,171
Shares outstanding, beginning of period .......... 6,226,192 5,835,774 2,914,908 2,589,737
------------- ------------- ------------- -------------
Shares outstanding, end of period ................ 6,298,547 6,226,192 2,902,811 2,914,908
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
==========================================================================================================================
JAMESTOWN TAX EXEMPT JAMESTOWN
VIRGINIA FUND INTERNATIONAL EQUITY FUND
--------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ................................ $ 548,087 $ 886,964 $ 158,400 $ 178,500
Net realized gains (losses) from:
Security transactions ............................ (136,525) 36,651 2,123,977 2,205,161
Foreign currency transactions .................... -- -- 62,493 (56,520)
Net change in unrealized appreciation/depreciation on:
Investments ...................................... (859,161) 81,607 3,515,854 1,511,375
Foreign currency translation ..................... -- -- (4,194) (120,768)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations .... (447,599) 1,005,222 5,856,530 3,717,748
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ........................... (548,087) (886,964) -- (238,226)
From net realized gains from security transactions ... -- (11,065) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders ...................................... (548,087) (898,029) -- (238,226)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ............................ 3,467,256 8,922,497 8,958,246 9,046,185
Net asset value of shares issued in reinvestment
of distributions to shareholders ................. 314,523 487,854 -- 231,344
Payments for shares redeemed ......................... (1,367,119) (2,104,477) (6,325,283) (1,280,438)
------------ ------------ ------------ ------------
Net increase in net assets from
capital share transactions ........................... 2,414,660 7,305,874 2,632,963 7,997,091
------------ ------------ ------------ ------------
TOTAL INCREASE IN NET ASSETS ............................. 1,418,974 7,413,067 8,489,493 11,476,613
NET ASSETS
Beginning of period .................................. 25,625,795 18,212,728 54,019,257 42,542,644
------------ ------------ ------------ ------------
End of period ........................................ $ 27,044,769 $ 25,625,795 $ 62,508,750 $ 54,019,257
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ................................................. 346,382 871,702 611,363 673,952
Reinvested ........................................... 31,478 47,603 -- 17,619
Redeemed ............................................. (137,269) (206,362) (430,934) (102,274)
------------ ------------ ------------ ------------
Net increase in shares outstanding ................... 240,591 712,943 180,429 589,297
Shares outstanding, beginning of period .............. 2,506,203 1,793,260 3,961,839 3,372,542
------------ ------------ ------------ ------------
Shares outstanding, end of period .................... 2,746,794 2,506,203 4,142,268 3,961,839
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN BALANCED FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
=============================================================================================================================
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 18.12 $ 17.38 $ 15.17 $ 14.77 $ 12.76 $ 12.15
--------- --------- --------- -------- -------- --------
Income from investment operations:
Net investment income .......................... 0.16 0.34 0.37 0.35 0.36 0.33
Net realized and unrealized gains (losses)
on investments ............................. (0.13) 0.95 4.31 1.45 2.50 0.90
--------- --------- --------- -------- -------- --------
Total from investment operations ................... 0.03 1.29 4.68 1.80 2.86 1.23
--------- --------- --------- -------- -------- --------
Less distributions:
Dividends from net investment income ........... (0.16) (0.34) (0.37) (0.35) (0.36) (0.33)
Distributions from net realized gains .......... -- (0.21) (2.10) (1.05) (0.49) (0.29)
--------- --------- --------- -------- -------- --------
Total distributions ................................ (0.16) (0.55) (2.47) (1.40) (0.85) (0.62)
--------- --------- --------- -------- -------- --------
Net asset value at end of period ................... $ 17.99 $ 18.12 $ 17.38 $ 15.17 $ 14.77 $ 12.76
========= ========= ========= ======== ======== ========
Total return ....................................... 0.17% 7.56% 32.42% 12.29% 22.79% 10.54%
========= ========= ========= ======== ======== ========
Net assets at end of period (000's) ............... $ 113,289 $ 112,804 $ 101,408 $ 70,654 $ 61,576 $ 52,062
========= ========= ========= ======== ======== ========
Ratio of gross expenses to average net assets ...... 0.88%(b) 0.88% 0.90% 0.91% 0.93% 0.99%
Ratio of net expenses to average net assets (a) .... 0.86%(b) 0.86% 0.87% 0.87% 0.88% 0.96%
Ratio of net investment income to average net assets 1.79%(b) 1.95% 2.21% 2.31% 2.52% 2.72%
Portfolio turnover rate ............................ 74%(b) 69% 90% 58% 72% 95%
</TABLE>
(a) Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
(b) Annualized.
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN EQUITY FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
====================================================================================================================================
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -----------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 21.76 $ 20.16 $ 15.66 $ 13.96 $ 11.29 $ 10.19
------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income .......................... 0.02 0.07 0.11 0.13 0.15 0.10
Net realized and unrealized gains
on investments ............................. 0.11 1.60 6.47 2.00 2.98 1.15
------- -------- -------- -------- -------- --------
Total from investment operations ................... 0.13 1.67 6.58 2.13 3.13 1.25
------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ........... (0.02) (0.07) (0.11) (0.13) (0.15) (0.12)
Distributions from net realized gains .......... -- -- (1.97) (0.30) (0.31) (0.03)
------- -------- -------- -------- -------- --------
Total distributions ................................ (0.02) (0.07) (2.08) (0.43) (0.46) (0.15)
------- -------- -------- -------- -------- --------
Net asset value at end of period ................... $ 21.87 $ 21.76 $ 20.16 $ 15.66 $ 13.96 $ 11.29
======= ======== ======== ======== ======== ========
Total return ....................................... 0.57% 8.33% 43.74% 15.27% 28.00% 12.33%
======= ======== ======== ======== ======== ========
Net assets at end of period (000's) ................ $63,475 $ 63,416 $ 52,214 $ 31,180 $ 17,857 $ 8,111
======= ======== ======== ======== ======== ========
Ratio of gross expenses to average net assets ...... 0.90%(c) 0.92% 0.93% 0.98% 1.14% 1.99%
Ratio of net expenses to average net assets ........ 0.87%(a)(c) 0.89%(a) 0.90%(a) 0.92%(a) 1.01%(a) 1.44%(b)
Ratio of net investment income to average net assets 0.15%(c) 0.35% 0.60% 0.85% 1.27% 1.18%
Portfolio turnover rate ............................ 63%(c) 66% 59% 44% 54% 48%
</TABLE>
(a) Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
(b) Ratio was determined based on net expenses after investment advisory fee
waivers and/or other operating expense reimbursements by the Adviser.
(c) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
====================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
====================================================================================================================================
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 10.22 $ 10.16 $ 9.83 $ 9.85 $ 9.68 $ 9.61
---------- ---------- ---------- ---------- --------- ---------
Income (loss) from investment operations:
Net investment income .......................... 0.21 0.43 0.44 0.45 0.45 0.44
Net realized and unrealized gains (losses)
on investments ............................. (0.37) 0.07 0.33 (0.02) 0.17 0.07
---------- ---------- ---------- ---------- --------- ---------
Total from investment operations ................... (0.16) 0.50 0.77 0.43 0.62 0.51
---------- ---------- ---------- ---------- --------- ---------
Less distributions:
Dividends from net investment income ........... (0.21) (0.43) (0.44) (0.45) (0.45) (0.44)
Distributions from net realized gains .......... -- (0.01) -- -- -- --
---------- ---------- ---------- ---------- --------- ---------
Total distributions ................................ (0.21) (0.44) (0.44) (0.45) (0.45) (0.44)
---------- ---------- ---------- ---------- --------- ---------
Net asset value at end of period ................... $ 9.85 $ 10.22 $ 10.16 $ 9.83 $ 9.85 $ 9.68
========== ========== ========== ========== ========= =========
Total return ....................................... (1.59)% 4.92% 8.00% 4.39% 6.51% 5.47%
========== ========== ========== ========== ========= =========
Net assets at end of period (000's) ................ $ 27,045 $ 25,626 $ 18,213 $ 11,197 $ 8,779 $ 7,712
========== ========== ========== ========== ========= =========
Ratio of net expenses to average net assets (a) .... 0.69%(b) 0.73% 0.75% 0.75% 0.75% 0.75%
Ratio of net investment income to average net assets 4.15%(b) 4.17% 4.40% 4.51% 4.57% 4.64%
Portfolio turnover rate ............................ 39%(b) 31% 33% 24% 14% 97%
</TABLE>
(a) 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% and 1.62% for the years ended March 31, 1998, 1997,
1996 and 1995, respectively.
(b) Annualized.
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
===============================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===============================================================================================================
SIX MONTHS
ENDED YEAR YEAR PERIOD
SEPT. 30, ENDED ENDED ENDED
1999 MARCH 31, MARCH 31, MARCH 31,
(UNAUDITED) 1999 1998 1997(A)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period .............. $ 13.63 $ 12.61 $ 9.81 $ 10.00
--------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) .................... 0.04 0.05 (0.01) (0.01)
Net realized and unrealized gains (losses)
on investments and foreign currencies 1.42 1.04 2.91 (0.14)
--------- --------- --------- ---------
Total from investment operations .................... 1.46 1.09 2.90 (0.15)
--------- --------- --------- ---------
Dividends from net investment income ................ -- (0.07) (0.10) (0.04)
--------- --------- --------- ---------
Net asset value at end of period .................... $ 15.09 $ 13.63 $ 12.61 $ 9.81
========= ========= ========= =========
Total return ........................................ 10.71% 8.67% 29.67% (1.56)%(c)
========= ========= ========= =========
Net assets at end of period (000's) ................. $ 62,509 $ 54,019 $ 42,543 $ 29,290
========= ========= ========= =========
Ratio of net expenses to average net assets (b) ..... 1.48%(c) 1.51% 1.56% 1.60%(c)
Ratio of net investment income (loss) to
average net assets .............................. 0.55%(c) 0.38% (0.05)% (0.15)%(c)
Portfolio turnover rate ............................. 46%(c) 39% 47% 70%(c)
</TABLE>
(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.
9
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Jamestown Balanced Fund, The Jamestown Equity Fund, The Jamestown Tax Exempt
Virginia Fund and The Jamestown International Equity Fund (individually, a Fund,
and, collectively, the Funds) are each 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. The Trust was organized as
a Massachusetts business trust on July 18, 1988.
The Jamestown Balanced 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 Jamestown Equity 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 Jamestown Tax Exempt Virginia 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 could be affected by certain Virginia political and economic
developments.
The Jamestown International Equity 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 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
(normally 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. It is expected that fixed income securities will ordinarily be traded in
the over-the-counter market, and common stocks will ordinarily be traded on a
national securities exchange, but may also be traded in 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 value using methods consistent with those
determined by the Board of Trustees. Foreign securities are translated from the
local currency into U.S. dollars using currency exchange rates supplied by a
quotation service.
Repurchase agreements-- The Jamestown Balanced Fund and The Jamestown Equity
Fund may enter into joint repurchase agreements with other funds within the
Trust. The joint repurchase agreement, which is collateralized by U.S.
Government obligations, is valued at cost which, together with accrued interest,
approximates market. At the time the Funds enter into the joint repurchase
agreement, the 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.
10
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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.
Distributions to shareholders-- Dividends arising from net investment income, if
any, are declared and paid quarterly to shareholders of The Jamestown Balanced
Fund, The Jamestown Equity Fund and The Jamestown International Equity Fund and
are declared daily and paid monthly to shareholders of The Jamestown Tax Exempt
Virginia 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.
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 Jamestown Balanced 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 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
investment securities as of September 30, 1999:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
JAMESTOWN JAMESTOWN JAMESTOWN JAMESTOWN
BALANCED EQUITY TAX EXEMPT INTERNATIONAL
FUND FUND VIRGINIA FUND EQUITY FUND
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation ............ $ 30,789,325 $ 21,642,801 $ 280,059 $ 17,809,968
Gross unrealized depreciation ............ (1,559,260) (996,757) (475,411) (2,811,753)
------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) $ 29,230,065 $ 20,646,044 $ (195,352) $ 14,998,215
============ ============ ============ ============
Federal income tax cost .................. $ 84,116,912 $ 43,314,920 $ 27,235,057 $ 44,061,407
============ ============ ============ ============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for The Jamestown Balanced Fund and The Jamestown
Equity Fund is due to certain timing differences in the recognition of capital
losses under income tax regulations and generally accepted accounting
principles.
11
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
As of March 31, 1999, The Jamestown Equity Fund had capital loss carryforwards
for federal income tax purposes of $368,885 which expire on March 31, 2007.
These capital loss carryforwards may be utilized in the current and future years
to offset net realized capital gains, if any, prior to distributing such gains
to shareholders.
2. INVESTMENT TRANSACTIONS
Investment transactions, other than short-term investments, were as follows for
the six months ended September 30, 1999:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
JAMESTOWN JAMESTOWN JAMESTOWN JAMESTOWN
BALANCED EQUITY TAX EXEMPT INTERNATIONAL
FUND FUND VIRGINIA FUND EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases of investment securities ........................ $38,832,886 $19,168,917 $ 7,116,857 $13,982,958
=========== =========== =========== ===========
Proceeds from sales and maturities of investment securities $40,786,949 $22,476,832 $ 4,492,030 $12,530,723
=========== =========== =========== ===========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
3. Transactions with Affiliates
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Funds' investments are managed by Lowe, Brockenbrough & Company, Inc. (the
Adviser), under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, The Jamestown Balanced Fund pays the Adviser a
fee, which is computed and accrued daily and paid monthly, at an annual rate of
.65% on its average daily net assets up to $250 million, .60% on the next $250
million of such net assets and .55% on such net assets in excess on $500
million. The Jamestown Equity Fund pays the Adviser a fee at an annual rate of
.65% on its average daily net assets up to $500 million and .50% on such net
assets in excess on $500 million. The Jamestown Tax Exempt Virginia Fund pays
the Adviser a fee at an annual rate of .40% on its average daily net assets up
to $250 million, .35% on the next $250 million of such net assets and .30% on
such net assets in excess of $500 million. The Jamestown International Equity
Fund pays the Adviser a fee at an annual rate of 1.00% on its average daily net
assets. Certain Trustees and officers of the Trust are also officers of the
Adviser.
The Adviser retains Oechsle International Advisors, LLC (Oechsle) to provide The
Jamestown International Equity 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.
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 each
of The Jamestown Balanced Fund and The Jamestown Equity Fund at an annual rate
of .20% on its respective 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 with respect to each
Fund. From The Jamestown Tax Exempt Virginia Fund, CFS receives a monthly fee at
an annual rate of .15% on its average daily net assets up to $200 million and
.10% on such net assets in excess of $200 million, subject to a $2,000 minimum
monthly fee. From The Jamestown International Equity Fund, CFS receives a
monthly fee at an annual rate of .25% on its average daily net assets up to $25
million; .225% on the next $25 million of such net assets; and .20% on such net
assets in excess of $50 million, subject to a $4,000 minimum monthly fee. In
addition, each Fund pays CFS 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, or of CW Fund
Distributors, Inc., the exclusive underwriter of each Funds' shares.
12
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. DIRECTED BROKERAGE ARRANGEMENT
In order to reduce the total operating expenses of The Jamestown Balanced Fund
and The Jamestown Equity Fund, each Fund's custodian fees and a portion of other
operating expenses have been paid through an arrangement with a thirdparty
brokerdealer who is compensated through commission trades. Payment of expenses
by the brokerdealer is based on a percentage of commissions earned. Expenses
reimbursed through the directed brokerage arrangement totaled $12,000 and $9,000
for The Jamestown Balanced Fund and The Jamestown Equity Fund, respectively, for
the six months ended September 30, 1999.
5. FOREIGN CURRENCY TRANSLATION
With respect to The Jamestown International Equity Fund, 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.
6. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Jamestown International Equity 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.
13
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
As of September 30, 1999, the Jamestown International Equity Fund had forward
foreign currency exchange contracts outstanding as follows:
- --------------------------------------------------------------------------------
NET UNREALIZED
SETTLEMENT TO RECEIVE INITIAL MARKET APPRECIATION
DATE (TO DELIVER) VALUE VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
Contracts To Sell
10/06/99 ....... 121,382 EUR $(129,259) $(129,326) $ (67)
10/07/99 ....... 101,302 EUR (107,776) (107,941) (165)
--------- --------- ---------
Total sell contracts (237,035) (237,267) (232)
--------- --------- ---------
Contracts To Buy
10/01/99 ....... 139,198 EUR 146,951 148,245 1,294
10/04/99 ....... 201,461 EUR 214,536 214,617 81
--------- --------- ---------
Total buy contracts 361,487 362,862 1,375
--------- --------- ---------
Net contracts ...... $ 124,452 $ 125,595 $ 1,143
========= ========= =========
- --------------------------------------------------------------------------------
EUR - Euro
14
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 62.9% Value
- --------------------------------------------------------------------------------
ADVERTISING -- 2.0%
56,000 Interpublic Group of Companies, Inc. $ 2,303,000
------------
COMMERCIAL BANKING -- 3.2%
26,000 Bank of America Corporation .................... 1,447,875
34,000 Fannie Mae ..................................... 2,131,375
------------
3,579,250
------------
COMMUNICATIONS -- 5.5%
85,000 Equifax, Inc. .................................. 2,390,625
26,000 Lucent Technologies, Inc. ...................... 1,686,750
30,000 MCI WorldCom, Inc.(a) .......................... 2,156,250
------------
6,233,625
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES-- 13.2%
45,000 Cisco Systems, Inc.(a) ......................... 3,085,313
44,000 Computer Sciences Corporation(a) ............... 3,093,750
24,000 EMC Corporation(a) ............................. 1,714,500
34,000 Intel Corporation .............................. 2,526,625
25,000 Microsoft Corporation(a) ....................... 2,264,063
51,000 Oracle Corporation(a) .......................... 2,320,500
------------
15,004,751
------------
CONSUMER PRODUCTS -- 7.3%
25,000 Avon Products, Inc. ............................ 620,312
30,000 Crane Company .................................. 673,125
22,000 General Electric Company ....................... 2,608,375
20,000 Gillette Company ............................... 678,750
42,000 Kimberly-Clark Corporation ..................... 2,205,000
43,000 Sysco Corporation .............................. 1,507,687
------------
8,293,249
------------
DRUGS/MEDICAL EQUIPMENT-- 8.3%
35,000 Abbott Laboratories ............................ 1,286,250
25,000 Bristol-Myers Squibb Company ................... 1,687,500
34,000 Lilly (Eli) & Company .......................... 2,176,000
33,000 Merck and Company, Inc. ........................ 2,138,813
48,000 Schering-Plough Corporation .................... 2,094,000
------------
9,382,563
------------
ELECTRONICS -- 1.5%
18,000 Hewlett-Packard Company ........................ 1,656,000
------------
FINANCIAL SERVICES-- 1.0%
27,000 Citigroup, Inc. ................................ 1,188,000
------------
FIRE SYSTEMS -- 2.5%
28,000 Tyco International Ltd. ........................ 2,891,000
------------
INSURANCE -- 4.1%
31,875 American International Group, Inc. ............. 2,771,133
29,500 Jefferson-Pilot Corporation .................... 1,864,031
------------
4,635,164
------------
15
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 62.9% (Continued) Value
- --------------------------------------------------------------------------------
MEDIA -- 2.1%
35,000 MediaOne Group, Inc.(a) ........................ $ 2,375,625
------------
OIL AND GAS DRILLING -- 5.0%
48,000 Coastal Corporation ............................ 1,965,000
54,000 Halliburton Company ............................ 2,214,000
14,500 Mobil Corporation .............................. 1,460,875
------------
5,639,875
------------
RETAIL STORES -- 6.2%
77,000 AutoZone, Inc.(a) .............................. 2,160,813
30,000 Circuit City Stores, Inc. ...................... 1,265,625
43,000 Dayton Hudson Corporation ...................... 2,582,687
14,000 Home Depot, Inc. ............................... 960,750
------------
6,969,875
------------
UTILITIES - TELEPHONE -- 1.0%
24,000 BellSouth Corporation .......................... 1,080,000
------------
TOTAL COMMON STOCKS (COST $41,171,966) $ 71,231,977
------------
================================================================================
Par
Value U.S. TREASURY OBLIGATIONS -- 6.3% Value
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 5.8%
$ 875,000 7.75%, due 11/30/1999 .......................... $ 878,824
2,040,000 6.50%, due 05/31/2001 .......................... 2,067,417
3,000,000 5.75%, due 08/15/2003 .......................... 2,990,610
615,000 7.00%, due 07/15/2006 .......................... 645,941
------------
6,582,792
------------
U.S. TREASURY INFLATION-PROTECTION NOTES -- 0.5%
405,896 3.625%, due 07/15/2002 ......................... 403,043
215,424 3.375%, due 01/15/2007 ......................... 205,730
------------
608,773
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $7,285,672) .......................... $ 7,191,565
------------
================================================================================
Par
Value U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.7% Value
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK -- 1.8%
$ 2,000,000 Discount note, due 10/22/1999 .................. $ 1,993,920
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION-- 2.2%
1,000,000 6.25%, due 07/15/2004 .......................... 994,220
1,500,000 6.625%, due 09/15/2009 ......................... 1,495,080
------------
2,489,300
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.7%
900,000 6.25%, due 05/15/2029 .......................... 827,856
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,364,437) .......................... $ 5,311,076
------------
16
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par
Value MORTGAGE-BACKED SECURITIES -- 3.9% Value
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION-- 0.6%
$ 475,000 Pool #1471-G, 7.00%, due 03/15/2008 ............ $ 475,295
175,000 Pool #1655-HB, 6.50%, due 10/15/2008 ........... 173,194
------------
648,489
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION-- 1.0%
425,000 Series #93-18-PJ, 6.50%, due 12/25/2007 ........ 420,083
726,619 Pool #380512, 6.15%, due 08/01/2008 ............ 687,109
------------
1,107,192
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 2.3%
2,679,743 Pool #2645, 7.00%, due 09/20/2028 .............. 2,618,350
------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $4,399,798) $ 4,374,031
------------
================================================================================
Par
Value ASSET-BACKED SECURITIES -- 2.1% Value
- --------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION -- 0.9%
$ 407,693 Series #97-3-A1, 5.456%, adjustable rate,
due 04/25/2006 ............................. $ 404,635
646,916 Series #98-1-A1, 5.566%, adjustable rate,
due 01/25/2007 ............................. 642,970
------------
1,047,605
------------
OTHER ASSET-BACKED SECURITIES -- 1.2%
California Infrastructure Trust #97-1-A3,
700,000 6.17%, due 03/25/2003 ...................... 700,875
Fleetwood Credit Corporation Grantor Trust #95-A-A,
223,132 8.45%, due 11/15/2010 ...................... 226,619
Green Tree Financial Corporation #98-A-A1C,
287,574 6.18%, due 06/15/2019 ...................... 284,339
NationsCredit Grantor Trust #96-1-A,
160,536 5.85%, due 09/15/2011 ...................... 157,827
------------
1,369,660
------------
TOTAL ASSET-BACKED SECURITIES (COST $2,432,617) $ 2,417,265
------------
================================================================================
Par
Value MUNICIPAL OBLIGATIONS -- 3.4% Value
- --------------------------------------------------------------------------------
Virginia State Housing Dev. Authority Revenue,
$ 2,540,000 6.50%, due 10/01/2007 ...................... $ 2,464,689
1,400,000 6.70%, due 10/01/2008 ...................... 1,377,782
------------
TOTAL MUNICIPAL OBLIGATIONS (COST $3,907,422) $ 3,842,471
------------
17
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par
Value CORPORATE BONDS -- 13.9% Value
- --------------------------------------------------------------------------------
Associates Corporation, N.A.,
$ 675,000 5.85%, due 01/15/2001 ...................... $ 671,409
Beneficial Corporation Medium Term Notes,
230,000 6.35%, due 12/03/2001 ...................... 229,814
Chrysler Financial Corporation,
1,000,000 5.90%, due 01/26/2001 ...................... 997,230
Coca-Cola Enterprises,
385,000 5.75%, due 11/01/2008 ...................... 348,856
Conoco, Inc.,
750,000 5.90%, due 04/15/2004 ...................... 726,390
Duke Realty L.P. Medium Term Notes,
390,000 6.75%, due 05/30/2008 ...................... 361,128
Enron Corporation,
750,000 6.45%, due 11/15/2001 ...................... 745,418
Equity Residential Properties Trust,
875,000 6.65%, due 11/15/2003 ...................... 853,720
Finova Capital Corporation,
1,000,000 6.25%, due 08/15/2000 ...................... 998,730
Ford Motor Credit Company Medium Term Notes,
475,000 7.20%, due 06/15/2007 ...................... 477,935
General Motors Acceptance Corporation Medium
Term Notes,
525,000 6.65%, due 05/24/2000 ...................... 527,657
Goldman Sachs Group,
950,000 6.65%, due 05/15/2009 ...................... 902,947
GTE Northwest, Inc.,
750,000 6.30%, due 06/01/2010 ...................... 705,277
International Lease Finance Corporation,
265,000 6.375%, due 08/01/2002 ..................... 263,921
International Lease Finance Corporation Medium
Term Notes,
425,000 6.42%, due 09/11/2000 ...................... 426,254
425,000 6.55%, due 09/15/2000 ...................... 426,772
International Paper Company,
735,000 8.68%, due 09/14/2001 ...................... 764,084
KeyCorp Medium Term Notes,
675,000 6.75%, due 05/29/2001 ...................... 680,305
Manitoba (Province of) Medium Term Notes,
205,000 5.50%, due 10/01/2008 ...................... 187,548
May Department Stores,
510,000 5.95%, due 11/01/2008 ...................... 473,555
Merrill Lynch & Company Medium Term Notes,
265,000 7.26%, due 03/25/2002 ...................... 262,350
National City Corporation,
575,000 7.20%, due 05/15/2005 ...................... 573,896
Norwest Financial, Inc.,
140,000 6.05%, due 11/19/1999 ...................... 140,063
400,000 5.375%, due 09/30/2003 ..................... 380,972
Pacific Bell,
185,000 6.625%, due 11/01/2009 ..................... 179,080
Pacific Bell Medium Term Notes,
400,000 6.875%, due 08/15/2006 ..................... 399,264
18
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par
Value CORPORATE BONDS -- 13.9% (Continued) Value
- --------------------------------------------------------------------------------
Prologis Trust,
$ 225,000 7.00%, due 10/01/2003 ...................... $ 220,628
Sears Roebuck Acceptance Corporation,
400,000 6.99%, due 09/30/2002 ...................... 402,748
Suntrust Banks,
310,000 6.125%, due 02/15/2004 ..................... 299,048
TRW, Inc.,
245,000 6.25%, due 01/15/2010 ...................... 218,658
Union Camp Corporation,
425,000 6.50%, due 11/15/2007 ...................... 406,024
U.S. WEST Capital Funding, Inc. Medium Term Notes,
550,000 6.375%, due 07/15/2008 ..................... 514,756
------------
TOTAL CORPORATE BONDS (COST $16,233,249) ....... $ 15,766,437
------------
================================================================================
Shares MONEY MARKETS -- 2.8% Value
- --------------------------------------------------------------------------------
3,212,155 Firstar Stellar Treasury Fund (Cost $3,212,155) $ 3,212,155
------------
TOTAL INVESTMENTS AT VALUE-- 100.0%
(COST $84,007,316) ......................... $113,346,977
LIABILITIES IN EXCESS OF OTHER ASSETS-- ( 0.0 )% (57,778)
------------
NET ASSETS-- 100.0% ............................ $113,289,199
============
(a) Non-income producing security.
See accompanying notes to financial statements.
19
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 94.4% Value
- --------------------------------------------------------------------------------
ADVERTISING -- 2.9%
45,000 Interpublic Group of Companies, Inc. ........... $ 1,850,625
------------
COMMERCIAL BANKING -- 5.0%
23,000 Bank of America Corporation .................... 1,280,813
30,000 Fannie Mae ..................................... 1,880,625
------------
3,161,438
------------
COMMUNICATIONS -- 8.2%
72,000 Equifax, Inc. .................................. 2,025,000
22,000 Lucent Technologies, Inc. ...................... 1,427,250
24,500 MCI WorldCom, Inc.(a) .......................... 1,760,937
------------
5,213,187
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES-- 20.2%
36,000 Cisco Systems, Inc.(a) ......................... 2,468,250
38,000 Computer Sciences Corporation(a) ............... 2,671,875
21,000 EMC Corporation(a) ............................. 1,500,188
30,000 Intel Corporation .............................. 2,229,375
20,500 Microsoft Corporation(a) ....................... 1,856,531
45,500 Oracle Corporation(a) .......................... 2,070,250
------------
12,796,469
------------
CONSUMER PRODUCTS -- 11.2%
21,000 Avon Products, Inc. ............................ 521,063
30,250 Crane Company .................................. 678,734
19,000 General Electric Company ....................... 2,252,687
15,000 Gillette Company ............................... 509,063
37,000 Kimberly-Clark Corporation ..................... 1,942,500
35,000 SYSCO Corporation .............................. 1,227,188
------------
7,131,235
------------
DRUGS/MEDICAL EQUIPMENT -- 12.8%
25,000 Abbott Laboratories ............................ 918,750
22,000 Bristol-Myers Squibb Company ................... 1,485,000
30,000 Lilly (Eli) & Company .......................... 1,920,000
29,000 Merck and Company, Inc. ........................ 1,879,562
44,000 Schering-Plough Corporation .................... 1,919,500
------------
8,122,812
------------
ELECTRONICS -- 2.3%
16,000 Hewlett-Packard Company ........................ 1,472,000
------------
FINANCIAL SERVICES-- 1.6%
23,250 Citigroup, Inc. ................................ 1,023,000
------------
FIRE SYSTEMS -- 3.7%
23,000 Tyco International Ltd. ........................ 2,374,750
------------
INSURANCE -- 6.2%
25,687 American International Group, Inc. ............. 2,233,164
26,500 Jefferson-Pilot Corporation .................... 1,674,469
------------
3,907,633
------------
20
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 94.4% (Continued) Value
- --------------------------------------------------------------------------------
MEDIA -- 3.2%
30,000 MediaOne Group, Inc.(a) ........................ $ 2,049,375
------------
OIL AND GAS DRILLING -- 7.7%
42,000 Coastal Corporation ............................ 1,719,375
46,000 Halliburton Company ............................ 1,886,000
12,500 Mobil Corporation .............................. 1,259,375
------------
4,864,750
------------
RETAIL STORES -- 7.9%
69,000 AutoZone, Inc.(a) .............................. 1,936,312
37,000 Dayton Hudson Corporation ...................... 2,222,312
12,000 Home Depot, Inc. ............................... 823,500
------------
4,982,124
------------
UTILITIES - TELEPHONE-- 1.5%
21,000 BellSouth Corporation .......................... 945,000
------------
TOTAL COMMON STOCKS (COST $39,177,199) $ 59,894,398
------------
================================================================================
Shares MONEY MARKETS -- 6.4% Value
- --------------------------------------------------------------------------------
4,066,566 Firstar Stellar Treasury Fund (Cost $4,066,566) $ 4,066,566
------------
TOTAL INVESTMENTS AT VALUE-- 100.8%
(Cost $43,243,765) ......................... $ 63,960,964
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.8)% . (486,031)
------------
NET ASSETS-- 100.0% ............................ $ 63,474,933
============
(a) Non-income producing security.
See accompanying notes to financial statements.
21
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Par VIRGINIA FIXED RATE REVENUE AND GENERAL
Value OBLIGATION (GO) BONDS -- 97.4% Value
- --------------------------------------------------------------------------------
Arlington Co., Virginia, GO,
$ 300,000 5.60%, due 08/01/2006 ...................... $ 316,866
Brunswick Co., Virginia, Industrial Dev.
Authority, Revenue,
300,000 5.45%, due 07/01/2006 ...................... 311,988
Chesterfield Co., Virginia, GO,
350,000 6.25%, due 07/15/2005 ...................... 368,473
750,000 4.00%, due 01/01/2006 ...................... 720,225
Fairfax Co., Virginia, GO,
140,000 5.60%, due 05/01/2003 ...................... 141,620
210,000 5.60%, due 05/01/2003 ...................... 212,409
600,000 5.00%, due 06/01/2014 ...................... 574,680
Fairfax Co., Virginia, Park Authority, Revenue,
300,000 6.25%, due 07/15/2005 ...................... 317,433
Fairfax Co., Virginia, Sewer, Revenue,
350,000 5.625%, due 07/15/2008 ..................... 367,665
Hanover Co., Virginia, Industrial Dev.
Authority, Revenue,
225,000 6.25%, due 10/01/2011 ...................... 236,421
Henrico Co., Virginia, GO,
500,000 4.70%, due 01/15/2002 ...................... 505,815
Henrico Co., Virginia, Water and Sewer, Revenue,
740,000 5.25%, due 05/01/2011 ...................... 725,200
500,000 4.625%, due 05/01/2017 ..................... 433,750
James City Co., Virginia, GO,
500,000 5.25%, due 12/15/2015 ...................... 486,140
Loudoun Co., Virginia, GO,
300,000 5.50%, due 06/01/2009 ...................... 311,496
Lynchburg, Virginia, GO,
500,000 5.30%, due 05/01/2014 ...................... 494,870
Medical College of Virginia Hospitals Authority,
Revenue,
700,000 5.00%, due 07/01/2013 ...................... 669,732
Newport News, Virginia, GO,
400,000 5.15%, due 01/01/2010 ...................... 401,408
Norfolk, Virginia, GO,
500,000 5.25%, due 06/01/2008 ...................... 507,300
300,000 5.75%, due 06/01/2011 ...................... 310,029
500,000 5.375%, due 06/01/2014 ..................... 498,205
Petersburg, Virginia, GO,
500,000 5.125%, due 01/15/2013 ..................... 491,220
Peumansend Creek, Virginia, Regional Jail
Authority, Revenue,
300,000 5.75%, due 06/01/2017 ...................... 301,518
Pittsylvania Co., Virginia, GO,
300,000 5.65%, due 07/01/2006 ...................... 318,915
Pocahontas Parkway Assoc., Virginia Toll Road,
Revenue,
900,000 5.00%, due 08/15/2005 ...................... 885,573
Portsmouth, Virginia, GO,
800,000 5.00%, due 08/01/2017 ...................... 736,904
Prince William Co., Virginia, Park Authority,
Revenue,
250,000 6.10%, due 10/15/2004 ...................... 266,628
Prince William Co., Virginia, Service Authority
Water & Sewer, Revenue,
500,000 5.00%, due 07/01/2003 ...................... 510,760
22
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Par VIRGINIA FIXED RATE REVENUE AND GENERAL
Value OBLIGATION (GO) BONDS -- 97.4% (Continued) Value
- --------------------------------------------------------------------------------
Richmond, Virginia, GO,
$ 400,000 6.25%, due 01/15/2018 ...................... $ 412,984
Richmond, Virginia, Metropolitan Authority,
Expressway, Revenue,
500,000 6.05%, due 07/15/2005 ...................... 528,830
Richmond, Virginia, Redev. & Housing Authority,
Revenue,
500,000 5.00%, due 03/01/2018 ...................... 461,990
Riverside, Virginia, Regional Jail Authority,
Revenue,
300,000 5.30%, due 07/01/2002 ...................... 307,767
Roanoke, Virginia, GO,
1,000,000 5.00%, due 08/01/2009 ...................... 1,000,641
300,000 6.40%, due 08/01/2012 ...................... 319,416
Roanoke, Virginia, Industrial Dev. Authority,
Hospital, Revenue,
985,000 3.75%, floating rate, due 07/01/2019 ....... 985,000
Spotsylvania Co., Virginia, GO,
400,000 5.75%, due 07/15/2011 ...................... 421,736
Suffolk, Virginia, GO,
350,000 5.80%, due 06/01/2011 ...................... 365,820
University of Virginia, Revenue,
1,000,000 5.25%, due 06/01/2012 ...................... 999,010
Upper Occoquan, Virginia, Sewer Authority,
Revenue,
700,000 5.00% due 07/01/2015 ....................... 657,055
Virginia Beach, Virginia, GO,
1,000,000 5.25%, due 08/01/2010 ...................... 1,013,130
325,000 6.20%, due 09/01/2013 ...................... 353,701
Virginia College Building Authority, Educational
Facilities, Revenue,
985,000 3.80%, floating rate, due 11/01/2026 ....... 985,000
Virginia Polytechnic Institute and State
University, Revenue,
625,000 5.45%, due 06/01/2013 ...................... 625,806
Virginia State, GO,
500,000 5.25%, due 07/01/2011 ...................... 503,660
500,000 5.375%, due 06/01/2015 ..................... 497,605
Virginia State Housing Dev. Authority,
Commonwealth Mortgages, Revenue,
150,000 5.60%, due 01/01/2002 ...................... 151,953
Virginia State Housing Dev. Authority,
Multi-Family, Revenue,
150,000 6.60%, due 11/01/2012 ...................... 159,190
150,000 6.30%, due 11/01/2015 ...................... 156,408
Virginia State Public Building Authority,
Revenue,
500,000 6.00%, due 08/01/2003 ...................... 519,425
Virginia State Resource Authority, Solid Waste
Disposal System, Revenue,
500,000 5.50%, due 04/01/2015 ...................... 490,300
Virginia State Transportation Board, Revenue,
350,000 6.25%, due 05/15/2012, prerefunded 05/15/2004 377,583
650,000 5.125%, due 05/15/2006 ..................... 650,182
Virginia State University - Virginia Commonwealth
University, Revenue,
250,000 5.75%, due 05/01/2006 ...................... 263,985
Winchester, Virginia, Industrial Dev. Authority,
ducational Facilities, Revenue,
500,000 5.00%, due 10/01/2018 ...................... 454,305
York Co., Virginia, Certificates of
articipation, Revenue,
250,000 6.625%, due 03/01/2012 ..................... 257,315
------------
TOTAL VIRGINIA FIXED RATE REVENUE AND GENERAL
BLIGATION (GO) BONDS (COST $26,538,392) ... $ 26,343,040
------------
23
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares MONEY MARKETS -- 2.6% Value
- --------------------------------------------------------------------------------
696,665 Firstar Tax-Free Fund (Cost $696,665) .......... $ 696,665
------------
TOTAL INVESTMENTS AT VALUE-- 100.0%
(COST $27,235,057) ......................... $ 27,039,705
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.0% ... 5,064
------------
NET ASSETS-- 100.0% ............................ $ 27,044,769
============
See accompanying notes to financial statements.
24
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
================================================================================
Shares COMMON STOCKS -- 94.5% Value
- --------------------------------------------------------------------------------
AUSTRALIA -- 1.7%
85,700 Australia and New Zealand Banking Group Ltd. ... $ 573,260
129,787 Coca-Cola Amatil Ltd. .......................... 455,681
------------
1,028,941
------------
CANADA -- 3.1%
18,100 BCE, Inc. ...................................... 899,149
17,500 Manulife Financial Corporation(a) .............. 209,000
18,400 The Seagram Company Ltd. ....................... 836,421
------------
1,944,570
------------
FRANCE -- 6.7%
5,760 Carrefour SA ................................... 922,000
8,970 Suez Lyonnaise des Eaux ........................ 1,452,064
11,129 Valeo SA ....................................... 805,370
14,055 Vivendi ........................................ 987,177
------------
4,166,611
------------
GERMANY -- 9.6%
28,626 Bayerische Motoren Werke (BMW) AG .............. 812,470
23,691 Hoechst AG ..................................... 1,031,945
13,471 Mannesmann AG .................................. 2,151,992
25,110 Metallgesellschaft AG .......................... 498,741
10,490 Siemens AG ..................................... 866,377
10,835 Veba AG ........................................ 605,812
------------
5,967,337
------------
GREECE -- 0.5%
14,200 Hellenic Telecommunications Organization SA (OTE) 331,389
------------
HONG KONG -- 0.9%
57,000 Hutchison Whampoa Ltd. ......................... 530,169
------------
INDIA -- 0.1%
2,020 Richter Gedeon Rt. - GDR ....................... 80,988
------------
ITALY -- 6.6%
330,623 Banca Nazionale del Lavoro (BNL)(a) ............ 1,183,102
9,100 Banca Popolare di Bergamo Credito Varesino SpA . 201,583
156,522 Credito Italiano SpA ........................... 765,134
116,200 Mediaset SpA ................................... 1,186,791
93,925 Telecom Italia SpA ............................. 816,246
------------
4,152,856
------------
JAPAN -- 28.6%
141,000 Fuji Bank Ltd. ................................. 1,713,666
29,000 Fujitsu Ltd. ................................... 904,292
11,000 Ito-Yokado Company Ltd. ........................ 909,176
36,000 Kao Corporation ................................ 1,017,751
13,000 Murata Manufacturing Company Ltd. .............. 1,306,471
35,000 Nikko Securities Company Ltd. .................. 295,858
46 Nippon Telegraph and Telephone Corporation ..... 565,981
27,000 Nomura Securities Company Ltd. ................. 418,428
175 NTT Mobile Communication Network, Inc. ......... 3,451,677
------------
25
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 94.5% (Continued) Value
- --------------------------------------------------------------------------------
JAPAN-- 28.6% (CONTINUED)
7,000 Rohm Company ................................... $ 1,462,853
167,000 Sakura Bank Ltd. ............................... 1,254,814
45,000 Sanwa Bank Ltd. ................................ 602,282
1,070 Shohkoh Fund & Company Ltd. .................... 798,957
18,000 Takeda Chemical Industries ..................... 972,105
3,700 Takefugi Corporation ........................... 616,145
6,000 TDK Corporation ................................ 694,844
42,000 Toshiba Corporation ............................ 312,821
13,000 Yamanouchi Pharmaceutical Company Ltd. ......... 609,280
------------
17,907,401
------------
KOREA -- 0.4%
6,100 Korea Telecom Corporation - ADR ................ 225,700
------------
NETHERLANDS -- 9.7%
4,886 Equant(a) ...................................... 397,554
13,500 Gucci Group NV - ADR ........................... 1,127,250
43,299 KPN NV ......................................... 1,897,568
5,057 Laurus NV ...................................... 116,343
13,310 Royal Dutch Petroleum Company .................. 772,546
22,128 Vendex International NV ........................ 636,291
32,770 VNU NV ......................................... 1,137,742
------------
6,085,294
------------
NEW ZEALAND -- 1.0%
164,229 Telecom Corporation of New Zealand Ltd. ........ 647,084
------------
PHILIPPINES -- 0.3%
540,000 Filinvest Land, Inc.(a) ........................ 39,609
24,192 Metropolitan Bank & Trust Company(a) ........... 177,447
------------
217,056
------------
PORTUGAL -- 0.7%
9,907 Portugal Telecom SA ............................ 412,331
------------
SPAIN -- 3.6%
38,954 Argentaria SA .................................. 857,101
7,946 Banco Popular Espanol SA ....................... 548,792
51,486 Telefonica SA .................................. 824,134
------------
2,230,027
------------
SWEDEN -- 1.8%
45,532 Hennes and Mauritz AB - Class B ................ 1,146,909
------------
SWITZERLAND -- 2.9%
2,041 Clariant AG .................................... 924,884
581 Novartis AG .................................... 861,859
------------
1,786,743
------------
26
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (Continued)
================================================================================
Shares COMMON STOCKS -- 94.5% (Continued) Value
- --------------------------------------------------------------------------------
UNITED KINGDOM -- 16.3%
202,380 British Aerospace PLC .......................... $ 1,334,032
89,143 British American Tobacco PLC ................... 761,204
66,611 British Sky Broadcasting Group PLC ............. 642,852
94,155 Diageo PLC ..................................... 965,273
44,073 Glaxo Wellcome PLC ............................. 1,159,164
53,979 Imperial Chemical Industries PLC ............... 594,284
52,788 Railtrack Group PLC ............................ 1,098,009
91,744 Reed International PLC ......................... 552,624
168,537 Somerfield PLC ................................. 356,670
115,529 Vodafone Group PLC ............................. 2,734,104
------------
10,198,216
------------
TOTAL COMMON STOCKS-- 94.5% (COST $44,061,407) $ 59,059,622
OTHER ASSETS IN EXCESS OF LIABILITIES-- 5.5% ... 3,449,128
------------
NET ASSETS-- 100.0% ............................ $ 62,508,750
============
(a) Non-income producing security.
See accompanying notes to financial statements.
27
