----------------------------------------
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 DAVENPORT
Ultimus Fund Solutions, LLC
P.O. Box 46707 EQUITY FUND
Cincinnati, Ohio 45246-0707 -----------
------------------------
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 SEMI-ANNUAL REPORT
Austin Brockenbrough III
John T. Bruce September 30, 2000
Charles M. Caravati, Jr.
J. Finley Lee, Jr. (Unaudited)
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 31, 2000
================================================================================
Dear Fellow Shareholder:
Ever feel like you have been on a long trip and never even left your driveway?
Unfortunately, that is the kind of stock market we have had this quarter, and,
for that matter, this year. The market, as measured by the S&P 500 Index, has
done a lot, but gone nowhere. The S&P 500 Index was down for the September
quarter, -0.97% and year-to-date -1.41%. Comparatively, your Fund ended the
quarter at -0.94%, and year-to-date 0.07%. For some investors, 2000 has been a
wake-up call. Almost overnight, the words diversification, strong fundamentals,
and long-term investing don't sound quite so old-fashioned.
Will we ever again hear analysts boast of business models and first movers
advantage or are we back to comparing price to earnings ratios and dividend
discount models? How we value stocks in the future is at the root of whether or
not technology stocks will regain their leadership role. The stock market's
seesaw action reflects the market's discomfort with this uncertainty.
Compounding this uncertainty over leadership is the on-going debate concerning
the impact of higher energy prices on economic growth. According to a recent
article in The Wall Street Journal, it requires half as much oil today to
produce $1 of economic output as it did 30 years ago. While our economy is not
as dependent on oil as it once was, we believe consumer confidence and spending
will wane as consumers gas up their SUVs and heat their homes this winter. The
Federal Reserve has attempted with six rate hikes to slow economic growth to
non-inflationary levels. Rising energy prices may be the medicine that finally
completes the Fed's work. At this point, we do not believe the spike in energy
prices will kill the economy as many claim energy prices did in 1990-91.
We have favored the energy sector for some time and it is nice, at least for the
moment, to have the winds in our favor. Oil prices have increased approximately
200% from their lows of about $11 per barrel in late 1998 and yet many energy
stocks are trading as if oil is less than $20 per barrel. We believe investors
and consumers are in a state of denial. Needless to say, energy and stock prices
are extremely volatile and we are mindful of the dangers of staying stuck in the
oil patch too long.
While we have had an interest in the energy sector for some time, we have not,
until recently, had much interest in electric utilities or other investments
tied to the world's aging power grid. We felt utility companies would face a
difficult transition from a regulated monopolistic environment to a highly
competitive environment which normally brings lower prices. However, consumers
in California are finding that deregulation and selecting your power company
does not always lead to lower utility bills. Consumers have suffered and
shareholders of utility companies have done quite well.
Investor interest in the "power grid" is building as the importance of clean
reliable power is becoming increasingly critical to our daily lives. We have
become tethered to computers, web enabled phones, and other devices linking us
to the Internet that are in turn linked to servers sitting in stadium-sized web
hosting data centers. While it is an inconvenience if the electricity goes out
in your home and your alarm clock blinks, in a data center this could be
catastrophic.
Investment opportunities in the power grid have not gone unnoticed in the
market. Utility stocks are topping the performance charts while technology and
communication stocks are near the bottom. This is an amazing transition
considering that just last year the NASDAQ was up 86% and investing in old
economy stocks was rarely admitted in social settings.
2
<PAGE>
For three years we have had a one-sided market in which growth stocks and more
specifically, technology stocks went up and most everything else basically
treaded water. Narrow markets do not last forever, although at times it has felt
that way. The market has begun to broaden which means that a more diverse group
of stocks is out-performing. Unfortunately, in the current environment this
really just means these stocks have not gone down as much as the market.
Nevertheless, a broader market is a good sign.
What has not been a good sign, and at times has been quite disturbing, is the
severe punishment stock prices incur for announcing disappointing news. During
this quarter's confession period (pre-announcing bad news), we heard from a wide
range of companies. For some whose stock price was justified by revenue growth
alone, but nary a mention of profits, the punishment at least in our minds fits
the crime. However, it is shocking how the market's punishment does not
differentiate between these and the more blue chip companies.
In stock markets like this, we believe it is important to keep things in
perspective. While the volatility in stocks like Intel is disturbing, it is
important to remember they are but a part of a diversified portfolio. Clearly
this year there are fewer winners, but, given the market's strong performance
during the last several years, this should not be too surprising.
Looking beyond the price action of individual stocks, the underpinnings of an
improving stock market are in place: relatively low interest rates, solid
economic growth, more reasonable valuation levels and high consumer confidence.
We remain optimistic about the future. We look forward to reporting our progress
to you in January 2001. In the meantime, if you have any questions or concerns
please do not hesitate to contact us.
Sincerely,
Davenport & Company LLC
For additional Fund inquiries please contact your investment executive or call
Davenport Asset Management at (888) 285-1863 or (804) 697-2999 to discover how
we can add value to your investments.
3
<PAGE>
THE DAVENPORT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
ASSETS
Investments in securities:
At acquisition cost .......................................... $ 65,157,929
============
At market value (Note 1) ..................................... $ 78,431,064
Cash ........................................................... 25,772
Dividends receivable ........................................... 52,988
Receivable for investment securities sold ...................... 1,619,976
Receivable for capital shares sold ............................. 423,768
Other assets ................................................... 25,450
------------
TOTAL ASSETS ................................................. 80,579,018
------------
LIABILITIES
Dividends payable .............................................. 3,899
Payable for investment securities purchased .................... 1,254,950
Payable for capital shares redeemed ............................ 71,905
Accrued investment advisory fees (Note 3) ...................... 53,076
Accrued administration fees (Note 3) ........................... 11,575
Other accrued expenses and liabilities ......................... 16,684
------------
TOTAL LIABILITIES ............................................ 1,412,089
------------
NET ASSETS ....................................................... $ 79,166,929
============
Net assets consist of:
Paid-in capital .................................................. $ 67,223,418
Undistributed net investment income .............................. 13
Accumulated net realized losses from security transactions ....... (1,329,637)
Net unrealized appreciation on investments ....................... 13,273,135
------------
Net assets ....................................................... $ 79,166,929
============
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value) ............ 6,013,041
============
Net asset value, offering price and redemption price
per share (Note 1) ............................................... $ 13.17
============
See accompanying notes to financial statements.
4
<PAGE>
THE DAVENPORT EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
INVESTMENT INCOME
Dividends ...................................................... $ 532,742
------------
EXPENSES
Investment advisory fees (Note 3) .............................. 293,460
Administration fees (Note 3) ................................... 65,454
Professional fees .............................................. 5,530
Registration fees .............................................. 4,919
Custodian fees ................................................. 4,913
Trustees' fees and expenses .................................... 4,662
Printing of shareholder reports ................................ 2,883
Other expenses ................................................. 21,198
------------
TOTAL EXPENSES ............................................... 403,019
------------
NET INVESTMENT INCOME ............................................ 129,723
------------
REALIZED AND UNREALIZED LOSSES ON INVESTMENTS
Net realized losses from security transactions ................. (32,876)
Net change in unrealized appreciation/depreciation on investments (3,331,526)
------------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS ................ (3,364,402)
------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ....................... $ (3,234,679)
============
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
2000 MARCH 31,
(UNAUDITED) 2000
-----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income .................................................................. $ 129,723 $ 234,952
Net realized losses from security transactions ......................................... (32,876) (8,938)
Net change in unrealized appreciation/depreciation on investments ...................... (3,331,526) 9,438,445
------------ ------------
Net increase (decrease) in net assets from operations .................................... (3,234,679) 9,664,459
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ............................................................. (129,710) (257,524)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .............................................................. 9,312,300 21,275,796
Net asset value of shares issued in reinvestment of distributions to shareholders ...... 124,156 246,511
Payments for shares redeemed ........................................................... (4,530,990) (9,661,290)
------------ ------------
Net increase in net assets from capital share transactions ............................... 4,905,466 11,861,017
------------ ------------
TOTAL INCREASE IN NET ASSETS ............................................................. 1,541,077 21,267,952
NET ASSETS
Beginning of period .................................................................... 77,625,852 56,357,900
------------ ------------
End of period (including undistributed net investment income of $13 and
$0, respectively) .................................................................... $ 79,166,929 $ 77,625,852
============ ============
CAPITAL SHARE ACTIVITY
Sold ................................................................................... 691,448 1,693,284
Reinvested ............................................................................. 9,398 19,633
Redeemed ............................................................................... (333,337) (760,199)
------------ ------------
Net increase in shares outstanding ..................................................... 367,509 952,718
Shares outstanding at beginning of period .............................................. 5,645,532 4,692,814
------------ ------------
Shares outstanding at end of period .................................................... 6,013,041 5,645,532
============ ============
</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 YEAR PERIOD
SEPTEMBER 30, ENDED ENDED ENDED
2000 MARCH 31, MARCH 31, MARCH 31,
(UNAUDITED) 2000 1999 1998(A)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ......................... $ 13.75 $ 12.01 $ 11.14 $ 10.00
-------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................................ 0.02 0.04 0.06 0.01
Net realized and unrealized gains (losses) on investments .... (0.58) 1.75 0.88 1.13
-------- -------- -------- --------
Total from investment operations ............................... (0.56) 1.79 0.94 1.14
-------- -------- -------- --------
Less distributions:
Dividends from net investment income ......................... (0.02) (0.05) (0.06) --
Distributions from net realized gains ........................ -- -- (0.01) --
-------- -------- -------- --------
Total distributions ............................................ (0.02) (0.05) (0.07) --
-------- -------- -------- --------
Net asset value at end of period ............................... $ 13.17 $ 13.75 $ 12.01 $ 11.14
======== ======== ======== ========
Total return ................................................... (4.06%)(d) 14.93% 8.53% 11.40%(d)
======== ======== ======== ========
Net assets at end of period (000's) ............................ $ 79,167 $ 77,626 $ 56,358 $ 24,694
======== ======== ======== ========
Ratio of net expenses to average net assets(b) ................. 1.03%(c) 1.01% 1.14% 1.15%(c)
Ratio of net investment income to average net assets ........... 0.33%(c) 0.35% 0.64% 0.76%(c)
Portfolio turnover rate ........................................ 24%(c) 17% 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.
(d) Not annualized.
See accompanying notes to financial statements.
7
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
SHARES COMMON STOCKS -- 95.4% VALUE
--------------------------------------------------------------------------------
AIRCRAFT & PARTS -- 2.7%
19,500 General Dynamics Corporation ..................... $ 1,224,844
26,609 Honeywell International, Inc. .................... 947,946
------------
2,172,790
------------
BASIC MATERIALS -- 1.6%
49,525 Alcoa, Inc. ...................................... 1,253,602
------------
CHEMICALS AND DRUGS -- 4.9%
24,762 Merck & Co., Inc. ................................ 1,843,221
44,451 Schering-Plough Corporation ...................... 2,066,972
------------
3,910,193
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES-- 18.8%
40,450 Cisco Systems, Inc.(a) ........................... 2,234,862
12,932 Citrix Systems, Inc.(a) .......................... 259,448
21,918 EMC Corporation(a) ............................... 2,172,622
16,614 Hewlett-Packard Company .......................... 1,611,558
35,632 Intel Corporation ................................ 1,483,182
11,075 International Business Machines Corporation ...... 1,245,938
52,224 Koninklijke Philips Electronics N.V.(a) .......... 2,219,520
22,611 Media General, Inc. - Class A .................... 972,273
11,304 Microsoft Corporation(a) ......................... 681,066
30,992 Motorola, Inc. ................................... 875,524
77,500 Telefonaktiebolaget LM Ericsson AB - ADR ......... 1,147,969
------------
14,903,962
------------
CONGLOMERATES -- 1.3%
478 Berkshire Hathaway, Inc. - Class B(a) ............ 989,460
------------
CONSUMER PRODUCTS -- 14.2%
26,609 American Home Products ........................... 1,505,072
41,913 Amgen(a) ......................................... 2,926,706
20,762 Avery Dennison Corporation ....................... 962,838
32,368 Bristol-Myers Squibb Company ..................... 1,849,022
19,688 Johnson & Johnson ................................ 1,849,442
46,988 SYSCO Corporation ................................ 2,176,132
1 Visteon Corporation(a) ........................... 15
------------
11,269,227
------------
DURABLE GOODS -- 5.1%
30,195 General Electric Company ......................... 1,741,874
20,762 Martin Marietta Materials, Inc. .................. 794,769
84,551 Tredegar Corporation, Inc. ....................... 1,463,789
------------
4,000,432
------------
8
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
MARKET
SHARES COMMON STOCKS -- 95.4% (CONTINUED) VALUE
--------------------------------------------------------------------------------
ELECTRIC SERVICES-- 3.9%
6,019 Agilent Technologies, Inc.(a) .................... $ 294,555
23,600 Dominion Resources, Inc. ......................... 1,370,275
21,355 Emerson Electric Company ......................... 1,430,785
------------
3,095,615
------------
ENTERTAINMENT -- 3.6%
65,985 AT&T Corporation - Liberty Media Group - Class A(a) 1,187,730
42,987 Walt Disney Company .............................. 1,644,253
------------
2,831,983
------------
FINANCIAL SERVICES -- 12.5%
33,336 American International Group ..................... 3,189,838
35,376 BB&T Corporation ................................. 1,065,702
31,378 Capital One Financial Corporation ................ 2,198,421
10,530 Markel Corporation(a) ............................ 1,597,928
7,000 Standard & Poor's 500 Depositary Receipt ......... 1,005,375
16,379 SunTrust Banks, Inc. ............................. 815,879
------------
9,873,143
------------
FOOD/BEVERAGES -- 4.8%
48,074 Anheuser-Busch Company, Inc. ..................... 2,034,131
16,379 Coca-Cola Company ................................ 902,892
41,226 Sara Lee Corporation ............................. 837,403
------------
3,774,426
------------
OIL/ENERGY -- 13.2%
37,000 Ashland, Inc. .................................... 1,246,438
16,484 BP Amoco Plc ADR ................................. 873,652
11,964 Chevron Corporation .............................. 1,019,931
37,527 Conoco, Inc. - Class B ........................... 1,010,884
25,348 Enron Corporation ................................ 2,221,118
16,379 Exxon Mobil Corporation .......................... 1,459,778
26,609 Halliburton Company .............................. 1,302,178
16,379 Schlumberger Limited ............................. 1,348,196
------------
10,482,175
------------
RETAIL STORES -- 4.3%
49,362 Circuit City Stores - Circuit City Group ......... 1,135,326
59,064 Walgreen Company ................................. 2,240,740
------------
3,376,066
------------
UTILITIES -- 4.5%
27,767 AT&T Corporation ................................. 815,655
28,455 Cox Communications, Inc. - Class A(a) ............ 1,088,403
33,529 SBC Communications, Inc. ......................... 1,676,450
------------
3,580,508
------------
TOTAL COMMON STOCKS-- 95.4% (Cost $62,240,447) ... $ 75,513,582
------------
9
<PAGE>
THE DAVENPORT EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
MARKET
SHARES MONEY MARKETS -- 3.7% VALUE
--------------------------------------------------------------------------------
2,917,482 Firstar Stellar Treasury Fund (Cost $2,917,482) .. $ 2,917,482
------------
TOTAL INVESTMENTS AT VALUE-- 99.1%
(Cost $65,157,929) ............................... $ 78,431,064
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.9% ..... 735,865
------------
NET ASSETS --100.0%............................... $ 79,166,929
============
(a) Non-income producing security.
See accompanying notes to financial statements.
10
<PAGE>
THE DAVENPORT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (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 $65,157,929 as of September 30, 2000:
--------------------------------------------------------------------------------
Gross unrealized appreciation................................... $18,411,679
Gross unrealized depreciation................................... (5,138,544)
------------
Net unrealized appreciation..................................... $13,273,135
============
--------------------------------------------------------------------------------
As of March 31, 2000, the Fund had capital loss carryforwards for federal income
tax purposes of $1,290,580, which expire through the year 2008. In addition, the
Fund had net realized long-term capital losses of $6,181 during the period from
November 1, 1999 through March 31, 2000, which are treated for federal income
tax purposes as arising during the Fund's tax year ending March 31, 2001. 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, 2000, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $13,090,410 and $9,188,288, 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
Integrated Fund Services, Inc. (IFS), IFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Fund. For these services, IFS 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 IFS 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 IFS.
12
<PAGE>
---------------------------------
THE FLIPPIN, BRUCE & PORTER FUNDS
--------------------------------------------------------------------------------
INVESTMENT ADVISOR
Flippin, Bruce & Porter, Inc. THE
800 Main Street, Suite 202
P.O. Box 6138 FLIPPIN, BRUCE & PORTER
Lynchburg, Virginia 24505
800-327-9375 FUNDS
TRANSFER AGENT AND
SHAREHOLDER SERVICING AGENT
Ultimus Fund Solutions, LLC
P.O. Box 46707
Cincinnati, Ohio 45246-0707
866-738-1127
LEGAL COUNSEL
Sullivan & Worcester LLP SEMI-ANNUAL REPORT
One Post Office Square
Boston, Massachusetts 02109 SEPTEMBER 30, 2000
OFFICERS (UNAUDITED)
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 FBP CONTRARIAN EQUITY FUND
Charles M. Caravati, Jr. --------------------------
J. Finley Lee, Jr.
Richard Mitchell ----------------------------
Richard L. Morrill FBP CONTRARIAN BALANCED FUND
Harris V. Morrissette ----------------------------
Erwin H. Will, Jr.
Samuel B. Witt, III
<PAGE>
LETTER TO SHAREHOLDERS OCTOBER 19, 2000
================================================================================
We are pleased to report on the progress of your Fund and its investments as of
September 30, 2000. The stock market is currently reacting to a change in
investor expectations, and we wanted to share our views of this change. We thank
you for your support and patience during a period when the performance of your
Funds has not been up to your standards or ours. And finally, we would like to
explain steps we are taking with regard to our research and investment process.
Since the beginning of the year, the economy, interest rates and the stock
market have each gone through substantial changes. Few could have predicted
where things stand today.
The U.S. economy is now slowing for a number of reasons including higher
short-term interest rates, rising energy prices and a weaker economic recovery
in Europe. Following a strong first half of 2000, Gross Domestic Product (GDP)
growth is now forecast to be 5.1% for the year, reflecting only 3% growth in the
last two quarters. Continuing the trend of slower growth, 2001 expectations are
for GDP growth of 3.5%.
As the year started, long-term interest rates were higher than short-term rates,
suggesting a strong economic climate. That has now changed as a result of the
Federal Reserve's action to raise short-term interest rates in early 2000 and
the government's announced plans to purchase long-term treasury securities. The
slope of the yield curve today is quite different, with short-term rates higher
than long-term rates. Higher energy prices this year have adversely impacted
both the economy and the financial markets worldwide. In Europe, trucker
strikes, which were an effort to force change in energy tax policies, have
dampened the recovery and put added pressure on an already weak euro currency.
Increased raw material and oil prices along with the weak euro are negatively
impacting corporate profitability. While not yet affecting consumer prices to a
measurable degree, continued high energy prices will eventually create concerns
about inflation. Short-term however, these higher prices are helping the Federal
Reserve in its efforts to slow the U.S. economy. Therefore, we may have seen the
end of interest rate increases for now, with the possibility of the Fed lowering
rates sometime next year.
The stock market has experienced a substantial change in psychology and
leadership. During 1998 and 1999, technology, telecommunication and a limited
number of other high valuation growth issues led the market. Many of these
stocks peaked in early March and have yet to recover. On the other hand, stocks
displaying value characteristics, such as those in the Funds, generally
performed quite well. For example, the tech-heavy NASDAQ index has declined
-27.2% since its March 10th peak until September 30 while the S&P 500 Composite
returned +3.6%. The FBP Contrarian Equity and Balanced Funds returned +11.6% and
+8.9% for the same period. This trend of strong value performance was also
present in the quarterly numbers, with the NASDAQ down -7.4%, the S&P down -1.0%
and both of the FBP Funds returning +4.0%. A look at market history leads us to
believe this change in psychology and performance, while just seven months long,
may be the beginning of a longer-term trend. Over the past 30 years, three
periods which were similar to the narrow market leadership of the past two years
can be clearly identified:
1971-72 Nifty Fifty Growth Era
1979-80 Energy and Natural Resources Craze
1989-90 Multinational Consumer Growth Dominance
Following each of these periods, as the previously favored stocks declined, the
value style of management produced multi-year periods of outperformance.
2
<PAGE>
We remain committed to the value contrarian philosophy that we have always
employed, but we are constantly working to improve the Funds' portfolios. Some
of the areas we are currently emphasizing are as follows:
o We are focusing more closely on the earnings estimates of the companies we
own as well as the companies we are considering for investment. In today's
market, stocks are being punished severely for the slightest quarterly
earnings disappointment.
o We are paying close attention to management to ensure that corporate
leaders understand their challenges and have realistic plans for
improvement. This process has included company visits by our research staff
as well as management visits to our office.
o We want to see that companies use new technology to compete more
effectively and reduce costs, and thereby improve margins.
o We are focused on how companies use their free cash flow, preferring that
they reduce debt and buy-in their stock rather than make new acquisitions.
Debt reduction and share buy-ins provide two risk free earnings levers,
while acquisitions often involve significant future earnings risk.
o We have begun to make some portfolio adjustments by replacing stocks where
valuations may still be attractive but prospects for improvement are too
far into the future, market capitalizations have shrunk to the degree they
would not meet current purchase criteria or financial flexibility is
lacking. Valuations have decreased for many larger companies this year and
we are using this as an opportunity to replace a few stocks with those of
companies with stronger cash flows and lower debt levels.
The recent recovery in the Funds since March reflects only a small part of the
total potential we believe exists today. Many good companies have seen their
valuations compressed to unprecedented levels and offer significant opportunity
on the upside. Although we don't buy companies solely on takeover speculation,
two companies held by the Funds, Mallinckrodt and Shaw Industries, are being
acquired at significant premiums as other investors recognize the value present
in the market. This is another indication to us that the Funds offer excellent
long-term appreciation potential.
COMPARATIVE CHARTS
Performance for each Fund is compared on the next page to the most appropriate
broad-based index, the S&P 500, an unmanaged index of 500 large common stocks.
Over time, this index has outpaced the FBP Contrarian Balanced Fund which
maintains at least 25% in bonds. Balanced funds have the growth potential to
outpace inflation, but they will typically lag 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.
In conclusion, we are working hard to meet the Funds' investment objectives and
therefore your investment goals. We thank you for your continued support as a
shareholder in the Flippin, Bruce & Porter Funds.
/s/ John T. Bruce
John T. Bruce, CFA
Vice President-Portfolio Manager
3
<PAGE>
FBP CONTRARIAN EQUITY FUND
Comparison of the Change in Value of a $10,000 Investment in the FBP Contrarian
Equity Fund, the Standard & Poor's 500 Index and the Consumer Price Index
[GRAPHIC OMITTED]
9/00
--------
FBP CONTRARIAN EQUITY FUND $25,313
STANDARD & POOR'S 500 INDEX $36,966
CONSUMER PRICE INDEX $11,952
---------------------------------
FBP CONTRARIAN EQUITY FUND
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR (3.74%)
5 YEARS 12.75%
SINCE INCEPTION* 13.81%
---------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*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 Standard & Poor's 500 Index and the Consumer Price Index
[GRAPHIC OMITTED]
9/00
--------
FBP CONTRARIAN BALANCED FUND $30,802
STANDARD & POOR'S 500 INDEX $59,340
CONSUMER PRICE INDEX $13,928
---------------------------------
FBP CONTRARIAN BALANCED FUND
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 0.11%
5 YEARS 11.19%
10 YEARS 13.41%
---------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
4
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 97.2% VALUE
--------------------------------------------------------------------------------
CHEMICALS -- 3.1%
21,000 Dow Chemical Company ............................. $ 523,688
35,000 Great Lakes Chemical Corporation ................. 1,025,938
------------
1,549,626
------------
COMMERCIAL BANKING -- 14.6%
45,000 Bank One Corporation ............................. 1,738,125
30,000 Bank of America Corporation ...................... 1,571,250
24,000 Chase Manhattan Corporation ...................... 1,108,500
35,000 Citigroup, Inc. .................................. 1,892,188
30,000 First Union Corporation .......................... 965,625
------------
7,275,688
------------
COMMUNICATIONS -- 3.2%
18,000 Harris Corporation ............................... 511,875
22,000 Verizon Communications ........................... 1,065,625
------------
1,577,500
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES -- 9.3%
25,000 Compaq Computer Corporation ...................... 689,500
25,000 Electronic Data Systems Corporation .............. 1,037,500
20,000 International Business Machines Corporation ...... 2,250,000
65,000 Novell, Inc. (a) ................................. 645,938
------------
4,622,938
------------
CONSUMER GOODS & SERVICES -- 7.4%
50,000 American Greetings Corporation - Class A ......... 875,000
88,200 Archer-Daniels-Midland Company ................... 760,725
79,000 Cendant Corporation (a) .......................... 859,125
16,000 Philip Morris Companies, Inc. .................... 471,000
40,000 Shaw Industries, Inc. ............................ 740,000
------------
3,705,850
------------
DRUGS/MEDICAL EQUIPMENT -- 9.0%
7,500 Amgen, Inc. (a) (b) .............................. 523,711
16,000 Bristol-Myers Squibb Company ..................... 914,000
14,000 Johnson & Johnson ................................ 1,315,125
25,000 Mallinckrodt, Inc. ............................... 1,140,625
7,600 Merck & Company, Inc. ............................ 565,725
------------
4,459,186
------------
DURABLE GOODS -- 5.2%
50,000 Engelhard Corporation ............................ 812,500
12,450 General Electric Company ......................... 718,209
60,000 Waste Management, Inc. ........................... 1,046,250
------------
2,576,959
------------
FINANCE -- 3.7%
25,000 The St. Paul Companies, Inc. ..................... 1,232,812
56,000 United Dominion Realty ........................... 609,000
------------
1,841,812
------------
FUNERAL SERVICES -- 0.4%
75,000 Service Corporation International ................ 182,812
------------
5
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 97.2% (CONTINUED) VALUE
--------------------------------------------------------------------------------
HOUSEHOLD APPLIANCES -- 1.0%
13,000 Whirlpool Corporation ............................ $ 505,375
------------
INSURANCE -- 6.1%
15,000 Aetna, Inc. ...................................... 870,938
80,000 UnumProvident Corporation ........................ 2,180,000
------------
3,050,938
------------
OIL & OIL DRILLING -- 6.4%
15,000 El Paso Energy Corporation ....................... 924,375
15,000 Kerr-McGee Corporation ........................... 993,750
13,000 Schlumberger Limited ............................. 1,070,062
3,523 Transocean Sedco Forex, Inc. ..................... 206,536
------------
3,194,723
------------
PACKAGING -- 1.2%
58,000 Crown Cork & Seal Company, Inc. .................. 619,875
------------
PHOTOGRAPHICAL PRODUCTS -- 1.6%
20,000 Eastman Kodak Company ............................ 817,500
------------
PRINTING -- 2.5%
50,000 R. R. Donnelley & Sons Company ................... 1,228,125
------------
RETAIL STORES -- 12.2%
15,000 Applebee's International, Inc. ................... 345,000
40,000 CBRL Group, Inc. ................................. 575,000
35,000 Circuit City Stores - Circuit City Group ......... 805,000
80,000 Dillard's, Inc. .................................. 850,000
48,000 IKON Office Solutions, Inc. ...................... 189,000
36,000 May Department Stores Company .................... 738,000
45,000 SUPERVALU, Inc. .................................. 677,812
51,300 The Pep Boys - Manny, Moe & Jack ................. 256,500
25,000 Toys R Us, Inc. (a) (b) .......................... 406,250
25,400 Wal-Mart Stores, Inc. (b) ........................ 1,222,375
------------
6,064,937
------------
TRANSPORTATION -- 6.8%
26,000 FedEx Corporation (a) ............................ 1,152,840
40,000 Trinity Industries, Inc. ......................... 935,000
34,000 Union Pacific Corporation ........................ 1,321,750
------------
3,409,590
------------
TRAVEL & INVESTMENT SERVICES -- 3.5%
9,000 American Express Company ......................... 546,750
25,000 USA Education, Inc. .............................. 1,204,687
------------
1,751,437
------------
TOTAL COMMON STOCKS -- (Cost $41,104,307) ........ $ 48,434,871
------------
6
<PAGE>
FBP CONTRARIAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE SHORT-TERM CORPORATE NOTES -- 2.6% VALUE
--------------------------------------------------------------------------------
$ 31,409 American Family Services Demand Note ............. $ 31,409
108,075 Wisconsin Corporate Central Credit Union
Variable Demand Note ........................... 108,075
1,143,024 Wisconsin Electric Power Company Variable Demand
Note............................................ 1,143,024
------------
TOTAL SHORT-TERM CORPORATE NOTES --
(Amortized Cost $1,282,508) .................... $ 1,282,508
------------
TOTAL INVESTMENTS AT VALUE -- 99.8%
(Cost $42,386,815) ............................. $ 49,717,379
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% .... 103,585
------------
NET ASSETS -- 100.0%.............................. $ 49,820,964
============
(a) Non-income producing security.
(b) Security covers a call option
================================================================================
FBP CONTRARIAN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
OPTION VALUE OF PREMIUMS
CONTRACTS COVERED CALL OPTIONS OPTIONS RECEIVED
--------------------------------------------------------------------------------
Amgen, Inc.,
35 10/21/00 at $80 ...................... $ 3,719 $ 24,787
Toys R Us, Inc.,
100 12/16/00 at $17.50 ................... 8,125 19,599
Wal-Mart Stores, Inc.,
25 12/16/00 at $65 ...................... 625 14,900
-------- --------
$ 12,469 $ 59,286
======== ========
See accompanying notes to financial statements.
7
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 67.1% VALUE
--------------------------------------------------------------------------------
CHEMICALS -- 2.2%
24,600 Dow Chemical Company ............................. $ 613,462
22,000 Great Lakes Chemical Corporation ................. 644,875
------------
1,258,337
------------
COMMERCIAL BANKING -- 9.1%
35,000 Bank One Corporation ............................. 1,351,875
20,000 Bank of America Corporation ...................... 1,047,500
23,025 Chase Manhattan Corporation ...................... 1,063,467
22,666 Citigroup, Inc. .................................. 1,225,381
15,000 First Union Corporation .......................... 482,812
------------
5,171,035
------------
COMMUNICATIONS -- 2.0%
17,000 Harris Corporation ............................... 483,438
13,420 Verizon Communications ........................... 650,031
------------
1,133,469
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES -- 5.5%
11,500 Compaq Computer Corporation ...................... 317,170
20,000 Electronic Data Systems Corporation .............. 830,000
14,000 International Business Machines Corporation ...... 1,575,000
43,000 Novell, Inc.(a) .................................. 427,312
------------
3,149,482
------------
CONSUMER GOODS & SERVICES -- 5.3%
33,000 American Greetings Corporation - Class A ......... 577,500
69,458 Archer-Daniels-Midland Company ................... 599,071
70,000 Cendant Corporation(a) ........................... 761,250
19,000 Philip Morris Companies, Inc. .................... 559,312
29,000 Shaw Industries, Inc. ............................ 536,500
------------
3,033,633
------------
DRUGS/MEDICAL EQUIPMENT -- 5.8%
5,000 Amgen, Inc.(a) (b) ............................... 349,141
12,200 Bristol-Myers Squibb Company ..................... 696,925
10,000 Johnson & Johnson ................................ 939,375
18,000 Mallinckrodt, Inc. ............................... 821,250
6,400 Merck & Company, Inc. ............................ 476,400
------------
3,283,091
------------
DURABLE GOODS -- 3.6%
30,500 Engelhard Corporation ............................ 495,625
13,000 General Electric Company ......................... 749,938
45,000 Waste Management, Inc. ........................... 784,688
------------
2,030,251
------------
FINANCE -- 2.7%
20,000 The St. Paul Companies, Inc. ..................... 986,250
50,000 United Dominion Realty ........................... 543,750
------------
1,530,000
------------
FUNERAL SERVICES -- 0.3%
70,000 Service Corporation International ................ 170,625
------------
8
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 67.1% (CONTINUED) VALUE
--------------------------------------------------------------------------------
HOUSEHOLD APPLIANCES -- 0.6%
9,000 Whirlpool Corporation ............................ $ 349,875
------------
INSURANCE -- 5.6%
11,300 Aetna, Inc. ...................................... 656,106
9,500 American International Group ..................... 909,031
60,000 UnumProvident Corporation ........................ 1,635,000
------------
3,200,137
------------
OIL & OIL DRILLING -- 5.4%
20,000 El Paso Energy Corporation ....................... 1,232,500
10,000 Kerr-McGee Corporation ........................... 662,500
12,000 Schlumberger Limited ............................. 987,750
3,388 Transocean Sedco Forex, Inc. ..................... 198,622
------------
3,081,372
------------
PACKAGING -- 0.8%
40,000 Crown Cork & Seal Company, Inc. .................. 427,500
------------
PHOTOGRAPHICAL PRODUCTS -- 0.8%
11,000 Eastman Kodak Company ............................ 449,625
------------
PRINTING -- 2.0%
46,000 R. R. Donnelley & Sons Company ................... 1,129,875
------------
RETAIL STORES -- 7.7%
15,000 Applebee's International, Inc. ................... 345,000
15,000 CBRL Group, Inc. ................................. 215,625
21,200 Circuit City Stores - Circuit City Group ......... 487,600
59,000 Dillard's, Inc. .................................. 626,875
34,000 IKON Office Solutions, Inc. ...................... 133,875
20,000 May Department Stores Company .................... 410,000
34,000 SUPERVALU, INC ................................... 512,125
34,500 The Pep Boys - Manny, Moe & Jack ................. 172,500
28,000 Toys R Us, Inc.(a) (b) ........................... 455,000
20,000 Wal-Mart Stores, Inc.(b) ......................... 962,500
------------
4,321,100
------------
TRANSPORTATION -- 4.1%
20,200 FedEx Corporation(a) ............................. 895,668
20,000 Trinity Industries, Inc. ......................... 467,500
25,000 Union Pacific Corporation ........................ 971,875
------------
2,335,043
------------
TRAVEL & INVESTMENT SERVICES -- 3.6%
15,000 American Express Company ......................... 911,250
24,000 USA Education, Inc. .............................. 1,156,500
------------
2,067,750
------------
TOTAL COMMON STOCKS (Cost $25,385,383) ........... $ 38,122,200
------------
9
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 15.4% VALUE
--------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 10.6%
$1,000,000 4.625%, due 12/31/00 ............................. $ 995,000
500,000 5.625%, due 02/28/01 ............................. 498,594
1,000,000 4.875%, due 03/31/01 ............................. 992,813
750,000 5.625%, due 05/15/01 ............................. 746,954
750,000 6.125%, due 12/31/01 ............................. 749,062
500,000 6.625%, due 04/30/02 ............................. 503,906
500,000 6.375%, due 08/15/02 ............................. 502,969
500,000 6.25%, due 02/15/03 .............................. 502,969
500,000 7.25%, due 05/15/04 .............................. 521,250
------------
6,013,517
------------
FEDERAL HOME LOAN BANK BONDS -- 4.8%
1,000,000 7.00%, due 07/02/09 .............................. 974,934
855,000 6.75%, due 03/28/14 .............................. 791,372
1,000,000 8.00%, due 08/19/14 .............................. 978,872
------------
2,745,178
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Amortized Cost $8,761,636) .................... $ 8,758,695
------------
================================================================================
PAR VALUE CORPORATE BONDS -- 15.1% VALUE
--------------------------------------------------------------------------------
FINANCE -- 5.7%
Allstate Corporation,
$ 500,000 7.875%, due 05/01/05 ........................... $ 515,242
Bankers Trust New York Corporation,
750,000 7.375%, due 05/01/08 ........................... 734,210
General Motors Acceptance Corporation,
1,000,000 5.50%, due 01/14/02 ............................ 982,543
Northern Trust Company,
1,000,000 7.10%, due 08/01/09 ............................ 986,501
------------
3,218,496
------------
INDUSTRIAL -- 5.7%
Hertz Corporation,
1,000,000 6.00%, due 01/15/03 ............................ 977,937
Hilton Hotels Corporation,
300,000 7.70%, due 07/15/02 ............................ 299,217
The Kroger Company,
1,000,000 7.65%, due 04/15/07 ............................ 994,350
Raychem Corporation,
1,000,000 7.20%, due 10/15/08 ............................ 955,506
------------
3,227,010
------------
TRANSPORTATION -- 0.7%
Ryder System, Inc.,
485,000 6.60%, due 11/15/05 ............................ 456,205
------------
10
<PAGE>
FBP CONTRARIAN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE CORPORATE BONDS -- 15.1% VALUE
--------------------------------------------------------------------------------
UTILITIES -- 3.0%
Central Power & Light Company,
$ 700,000 7.50%, due 12/01/02 ............................ $ 706,590
Ohio Power Company,
1,000,000 6.75%, due 07/01/04 ............................ 983,760
------------
1,690,350
------------
TOTAL CORPORATE BONDS (Amortized Cost $8,644,494) $ 8,592,061
------------
================================================================================
PAR VALUE SHORT-TERM CORPORATE NOTES -- 1.8% VALUE
--------------------------------------------------------------------------------
$ 354,348 American Family Services Demand Note ............. $ 354,348
208,501 Wisconsin Corporate Central Credit Union
Variable Demand Note ........................... 208,501
394,876 Wisconsin Electric Power Company Variable
Demand Note .................................... 394,876
------------
TOTAL SHORT-TERM CORPORATE NOTES
(Amortized Cost $957,725) ...................... $ 957,725
------------
TOTAL INVESTMENTS AT VALUE -- 99.4%
(Cost $43,749,238) ............................. $ 56,430,681
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.6% .... 355,147
------------
NET ASSETS -- 100.0%.............................. $ 56,785,828
============
(a) Non-income producing security.
(b) Security covers a call option.
FBP CONTRARIAN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
OPTION VALUE OF PREMIUMS
CONTRACTS COVERED CALL OPTIONS OPTIONS RECEIVED
--------------------------------------------------------------------------------
Amgen, Inc.,
25 10/21/00 at $80 ...................... $ 2,656 $ 17,705
Toys R Us, Inc.,
50 12/16/00 at $17.50 ................... 4,062 9,800
Wal-Mart Stores, Inc.,
20 12/16/00 at $65 ...................... 500 11,920
-------- --------
$ 7,218 $ 39,425
======== ========
See accompanying notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
=====================================================================================================
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost ................................................ $ 42,386,815 $ 43,749,238
============ ============
At value (Note 1) .................................................. $ 49,717,379 $ 56,430,681
Dividends and interest receivable .................................... 98,477 399,091
Receivable for capital shares sold ................................... 124,272 35,733
Other assets ......................................................... 5,778 4,250
------------ ------------
TOTAL ASSETS ....................................................... 49,945,906 56,869,755
------------ ------------
LIABILITIES
Dividends payable .................................................... 35,198 16,611
Payable for capital shares redeemed .................................. 15,145 13,191
Accrued investment advisory fees (Note 3) ............................ 30,377 32,885
Accrued administration fees (Note 3) ................................. 8,100 8,630
Other accrued expenses and liabilities ............................... 23,653 5,391
Covered call options, at value (Notes 1 and 4)
(premiums received $59,286 and $39,425, respectively) .............. 12,469 7,219
------------ ------------
TOTAL LIABILITIES .................................................. 124,942 83,927
------------ ------------
NET ASSETS ............................................................. $ 49,820,964 $ 56,785,828
============ ============
Net assets consist of:
Paid-in capital ...................................................... $ 42,551,152 $ 42,636,039
Undistributed net investment income .................................. 14 16
Accumulated net realized gains (losses) from security transactions ... (107,583) 1,436,124
Net unrealized appreciation on investments ........................... 7,377,381 12,713,649
------------ ------------
Net assets ............................................................. $ 49,820,964 $ 56,785,828
============ ============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) ............................................ 2,402,497 3,220,793
============ ============
Net asset value, offering price and redemption price per share (Note 1) $ 20.74 $ 17.63
============ ============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
=====================================================================================================
FBP FBP
CONTRARIAN CONTRARIAN
EQUITY BALANCED
FUND FUND
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest ............................................................. $ 60,414 $ 584,711
Dividends ............................................................ 548,202 386,580
------------ ------------
TOTAL INVESTMENT INCOME ............................................ 608,616 971,291
------------ ------------
EXPENSES
Investment advisory fees (Note 3) .................................... 191,782 200,697
Administration fees (Note 3) ......................................... 48,571 50,381
Custodian fees ....................................................... 8,091 6,667
Professional fees .................................................... 3,928 6,688
Postage and supplies ................................................. 2,549 --
Trustees' fees and expenses .......................................... 4,569 4,569
Registration fees .................................................... 4,681 3,784
Printing of shareholder reports ...................................... 2,785 2,785
Pricing costs ........................................................ 641 167
Insurance expense .................................................... 2,024 2,370
Other expenses ....................................................... 1,614 --
------------ ------------
TOTAL EXPENSES ..................................................... 271,235 278,108
------------ ------------
NET INVESTMENT INCOME ................................................ 337,381 693,183
------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on security transactions .......................... 571,772 1,027,144
Net realized gains on option contracts written ....................... 79,404 49,327
Net change in unrealized appreciation/depreciation on investments .... (645,783) (1,281,637)
------------ ------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS ............ 5,393 (205,166)
------------ ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........................... $ 342,774 $ 488,017
============ ============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
THE FLIPPIN, BRUCE & PORTER FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
==========================================================================================================================
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
--------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
2000 MARCH 31, 2000 MARCH 31,
(UNAUDITED) 2000 (UNAUDITED) 2000
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ...................................... $ 337,381 $ 447,435 $ 693,183 $ 1,353,583
Net realized gains on:
Security transactions .................................... 571,772 19,813 1,027,144 3,284,271
Option contracts written ................................. 79,404 181,902 49,327 155,564
Net change in unrealized appreciation/
depreciation on investments .............................. (645,783) (4,466,329) (1,281,637) (5,918,726)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations ........ 342,774 (3,817,179) 488,017 (1,125,308)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................................. (337,367) (447,435) (693,167) (1,353,716)
From net realized gains .................................... -- (960,474) -- (3,080,182)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions to shareholders .............................. (337,367) (1,407,909) (693,167) (4,433,898)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................................. 10,094,799 37,998,156 2,195,078 10,283,683
Net asset value of shares issued in reinvestment
of distributions to shareholders ......................... 266,581 1,209,728 660,283 4,276,985
Payments for shares redeemed ............................... (16,336,486) (23,170,015) (5,536,927) (14,291,631)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions ................................. (5,975,106) 16,037,869 (2,681,566) 269,037
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ................................................. (5,969,699) 10,812,781 (2,886,716) (5,290,169)
NET ASSETS
Beginning of period ........................................ 55,790,663 44,977,882 59,672,544 64,962,713
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $14, $0,
$16 and $0, respectively) ................................ $ 49,820,964 $ 55,790,663 $ 56,785,828 $ 59,672,544
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ....................................................... 482,030 1,730,106 124,909 541,893
Reinvested ................................................. 13,083 55,478 38,094 232,354
Redeemed ................................................... (772,165) (1,098,843) (313,502) (759,067)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding .............. (277,052) 686,741 (150,499) 15,180
Shares outstanding at beginning of period .................. 2,679,549 1,992,808 3,371,292 3,356,112
------------ ------------ ------------ ------------
Shares outstanding at end of period ........................ 2,402,497 2,679,549 3,220,793 3,371,292
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
FBP CONTRARIAN 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 20.82 $ 22.57 $ 21.45 $ 16.08 $ 14.21 $ 11.21
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.13 0.18 0.13 0.19 0.22 0.24
Net realized and unrealized gains (losses)
on investments ............................. (0.08) (1.38) 1.50 5.98 2.24 3.05
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.05 (1.20) 1.63 6.17 2.46 3.29
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.13) (0.18) (0.13) (0.19) (0.22) (0.24)
Distributions from net realized gains ........ -- (0.37) (0.38) (0.61) (0.37) (0.05)
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.13) (0.55) (0.51) (0.80) (0.59) (0.29)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 20.74 $ 20.82 $ 22.57 $ 21.45 $ 16.08 $ 14.21
======== ======== ======== ======== ======== ========
Total return ................................... 0.27%(b) (5.40%) 7.74% 38.90% 17.65% 29.54%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 49,821 $ 55,791 $ 44,978 $ 35,322 $ 16,340 $ 9,090
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets(a) . 0.99%(c) 1.04% 1.08% 1.12% 1.21% 1.25%
Ratio of net investment income to average net assets 1.24%(c) 0.83% 0.63% 1.04% 1.50% 1.89%
Portfolio turnover rate ........................ 19%(c) 20% 18% 10% 9% 12%
</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% and 1.67% for the
years ended March 31, 1997, and 1996, respectively.
(b) Not annualized.
(c) Annualized.
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
FBP CONTRARIAN 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 17.70 $ 19.36 $ 19.08 $ 15.87 $ 14.86 $ 12.80
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.21 0.40 0.39 0.41 0.42 0.43
Net realized and unrealized gains (losses)
on investments ............................. (0.07) (0.74) 1.21 4.26 1.49 2.44
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.14 (0.34) 1.60 4.67 1.91 2.87
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.21) (0.40) (0.39) (0.41) (0.42) (0.43)
Distributions from net realized gains ........ -- (0.92) (0.93) (1.05) (0.48) (0.38)
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.21) (1.32) (1.32) (1.46) (0.90) (0.81)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 17.63 $ 17.70 $ 19.36 $ 19.08 $ 15.87 $ 14.86
======== ======== ======== ======== ======== ========
Total return ................................... 0.84%(b) (1.87%) 8.74% 30.22% 13.15% 22.86%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 56,786 $ 59,673 $ 64,963 $ 55,940 $ 40,854 $ 35,641
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets .... 0.96%(c) 1.02% 1.04% 1.04% 1.08% 1.17%
Ratio of net investment income to average net assets 2.40%(c) 2.11% 2.05% 2.33% 2.65% 3.04%
Portfolio turnover rate ........................ 15%(c) 31% 25% 21% 24% 17%
</TABLE>
(a) Not annualized.
(b) Annualized.
See accompanying notes to financial statements.
16
<PAGE>
THE FLIPPIN, BRUCE & PORTER FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (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.
17
<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, 2000:
--------------------------------------------------------------------------------
FBP CONTRARIAN FBP CONTRARIAN
EQUITY FUND BALANCED FUND
--------------------------------------------------------------------------------
Gross unrealized appreciation .......... $ 14,100,241 $ 16,443,562
Gross unrealized depreciation .......... (6,722,860) (3,729,913)
------------ ------------
Net unrealized appreciation ............ $ 7,377,381 $ 12,713,649
============ ============
Federal income tax cost ................ $ 42,327,529 $ 43,709,813
============ ============
--------------------------------------------------------------------------------
The FBP Contrarian Equity Fund had net realized capital losses of $758,759
during the period November 1, 1999 through March 31, 2000, which are treated for
federal income tax purposes as arising during the Fund's tax year ending March
31, 2001. These "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, 2000, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $4,896,272 and $10,079,295, respectively, for the FBP
Contrarian Equity Fund and $4,208,057 and $6,518,673, 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, effective February 1, 2000, each Fund pays the
Advisor a fee, which is computed and accrued daily and paid monthly, at an
annual rate of .70% 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. Prior to February 1, 2000, each Fund paid the Advisor a fee,
which was 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.
18
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of an Administrative Services Agreement between the Trust and
Integrated Fund Services, Inc. (IFS), IFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, IFS receives a monthly fee from each
Fund at an annual rate of .18% on its average daily net assets up to $25
million; .155% on the next $25 million of such net assets; and .13% 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 IFS 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 IFS, or of IFS
Fund Distributors, Inc., the exclusive underwriter of each Funds' shares.
4. COVERED CALL OPTIONS
A summary of covered call option contracts during the six months ended September
30, 2000 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 year ... 66 $ 79,404 41 $ 49,327
Options written ............................ 160 (59,286) 95 39,425
Options expired ............................ (66) (79,404) (41) (49,327)
---------- ---------- ---------- ----------
Options outstanding at end of year ......... 160 $ 59,286 54 $ 39,425
========== ========== ========== ==========
----------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
20
<PAGE>
----------------------------------- -----------------------------------
THE JAMESTOWN FUNDS
INVESTMENT ADVISER
Lowe, Brockenbrough & Company, Inc.
6620 West Broad Street
Suite 300
Richmond, Virginia 23230 THE
JAMESTOWN
ADMINISTRATOR FUNDS
Ultimus Fund Solutions, LLC
P.O. Box 46707 NO-LOAD FUNDS
Cincinnati, Ohio 45246-0707
1-866-738-1126
SEMI-ANNUAL REPORT
INDEPENDENT AUDITORS SEPTEMBER 30, 2000
Tait, Weller & Baker (UNAUDITED)
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 INVESTMENT ADVISER
Charles M. Caravati, Jr. LOWE, BROCKENBROUGH & COMPANY, INC.
J. Finley Lee, Jr. RICHMOND, VIRGINIA
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, 2000 (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 .......................... $ 92,313,432 $ 45,928,267 $ 28,786,306 $ 65,376,269
============ ============ ============ ============
At value (Note 1) ............................ $127,590,509 $ 71,885,620 $ 28,945,377 $ 72,987,533
Cash ........................................... -- -- -- 1,350,979
Cash denominated in foreign currency (Note 5) .. -- -- -- 69,394
Dividends receivable ........................... 42,111 32,499 -- 217,854
Interest receivable ............................ 698,658 -- 385,732 --
Receivable for securities sold ................. -- -- -- 902,082
Receivable for capital shares sold ............. 44,679 33,100 -- 2,408,155
Net unrealized appreciation on forward foreign
currency exchange contracts (Note 6) ......... -- -- -- 380
Other assets ................................... 7,360 158,047 7,804 65,010
------------ ------------ ------------ ------------
TOTAL ASSETS ................................. 128,383,317 72,109,266 29,338,913 78,001,387
------------ ------------ ------------ ------------
LIABILITIES
Bank overdraft ................................. 44,679 25,000 -- --
Distributions payable .......................... 33,651 -- 35,452 --
Payable for securities purchased ............... -- -- -- 316,569
Payable for capital shares redeemed ............ 34,925 24,700 8,419 1,118,116
Accrued investment advisory fees (Note 3) ...... 69,730 39,251 9,646 63,435
Accrued administration fees (Note 3) ........... 17,850 10,775 3,680 11,250
Covered call options, at value (Notes 1 and 7)
(premiums received $372,388 and $276,185,
respectively) ................................ 336,375 250,625 -- --
Other accrued expenses and liabilities ......... 12,251 -- 14,734 47,571
------------ ------------ ------------ ------------
TOTAL LIABILITIES ............................ 549,461 350,351 71,931 1,556,941
------------ ------------ ------------ ------------
NET ASSETS ....................................... $127,833,856 $ 71,758,915 $ 29,266,982 $ 76,444,446
============ ============ ============ ============
Net assets consist of:
Paid-in capital ................................ $ 89,454,808 $ 42,033,509 $ 29,470,837 $ 64,790,993
Undistributed net investment income (loss) ..... 956 (45,325) -- (78,571)
Accumulated net realized gains (losses) from
security and foreign currency transactions ... 2,998,537 3,787,818 (362,926) 4,141,794
Distributions in excess of net realized gains .. 66,465 -- -- --
Net unrealized appreciation (depreciation)
on investments ............................... 35,313,090 25,982,913 159,071 7,611,264
Net unrealized depreciation on translation of
assets and liabilities in foreign currencies . -- -- -- (21,034)
------------ ------------ ------------ ------------
Net assets ....................................... $127,833,856 $ 71,758,915 $ 29,266,982 $ 76,444,446
============ ============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ..... 6,604,865 2,873,055 2,963,304 5,494,062
============ ============ ============ ============
Net asset value, offering price and redemption
price per share (Note 1) ....................... $ 19.35 $ 24.98 $ 9.88 $ 13.91
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
===============================================================================================================
JAMESTOWN JAMESTOWN
JAMESTOWN JAMESTOWN TAX EXEMPT INTERNATIONAL
BALANCED EQUITY VIRGINIA EQUITY
FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ...................................... $ 401,051 $ 275,616 $ -- $ 584,758
Foreign withholding taxes on dividends ......... -- -- -- (36,968)
Interest ....................................... 1,261,809 -- 752,314 51,547
------------ ------------ ------------ ------------
TOTAL INVESTMENT INCOME ...................... 1,662,860 275,616 752,314 599,337
------------ ------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 3) .............. 420,074 239,786 59,375 400,378
Administration fees (Note 3) ................... 101,946 62,345 21,781 87,085
Custodian fees ................................. 9,847 5,404 2,372 33,594
Registration fees .............................. 6,615 10,708 757 10,941
Professional fees .............................. 7,789 947 1,746 15,527
Pricing costs .................................. 4,760 418 3,628 5,458
Trustees' fees and expenses .................... 4,630 4,630 4,576 4,630
Printing of shareholder reports ................ 1,555 1,555 1,555 1,555
Other expenses ................................. 10,573 4,148 5,148 5,179
------------ ------------ ------------ ------------
TOTAL EXPENSES ............................... 567,789 329,941 100,938 564,347
Expenses reimbursed through a directed
brokerage arrangement (Note 4) ............... (12,000) (9,000) -- --
------------ ------------ ------------ ------------
NET EXPENSES ................................. 555,789 320,941 100,938 564,347
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) ..................... 1,107,071 (45,325) 651,376 34,990
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
AND FOREIGN CURRENCIES (NOTE 5)
Net realized gains (losses) from:
Security transactions ........................ 3,212,754 3,898,072 (89,748) 4,161,078
Foreign currency transactions ................ -- -- -- (113,561)
Net change in unrealized appreciation/depreciation on:
Investments .................................. (6,300,829) (6,984,245) 337,962 (17,763,474)
Foreign currency translation ................. -- -- -- 22,364
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
AND FOREIGN CURRENCIES ......................... (3,088,075) (3,086,173) 248,214 (13,693,593)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ................................ $ (1,981,004) $ (3,131,498) $ 899,590 $(13,658,603)
============ ============ ============ ============
</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
2000 MARCH 31, 2000 MARCH 31,
(UNAUDITED) 2000 (UNAUDITED) 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) ................... $ 1,107,071 $ 2,152,434 $ (45,325) $ 91,302
Net realized gains from
security transactions ........................ 3,212,754 4,813,070 3,898,072 2,953,963
Net change in unrealized appreciation/depreciation
on investments ................................. (6,300,829) 10,736,573 (6,984,245) 12,102,255
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations ................................ (1,981,004) 17,702,077 (3,131,498) 15,147,520
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ..................... (1,106,116) (2,152,434) -- (91,302)
From net realized gains from security
transactions ................................. -- (4,880,959) -- (2,680,161)
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders ................................ (1,106,116) (7,033,393) -- (2,771,463)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 6,847,045 8,830,494 19,866,241 8,147,118
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. 1,041,647 6,724,517 -- 2,521,395
Payments for shares redeemed ................... (5,168,801) (10,826,415) (22,784,557) (8,651,809)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from capital
share transactions ............................. 2,719,891 4,728,596 (2,918,316) 2,016,704
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ..................................... (367,229) 15,397,280 (6,049,814) 14,392,761
NET ASSETS
Beginning of period ............................ 128,201,085 112,803,805 77,808,729 63,415,968
------------ ------------ ------------ ------------
End of period .................................. $127,833,856 $128,201,085 $ 71,758,915 $ 77,808,729
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ........................................... 346,953 472,789 758,563 349,898
Reinvested ..................................... 52,947 346,587 -- 98,084
Redeemed ....................................... (261,117) (579,486) (876,044) (372,354)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding .. 138,783 239,890 (117,481) 75,628
Shares outstanding, beginning of period ........ 6,466,082 6,226,192 2,990,536 2,914,908
------------ ------------ ------------ ------------
Shares outstanding, end of period .............. 6,604,865 6,466,082 2,873,055 2,990,536
============ ============ ============ ============
</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
2000 MARCH 31, 2000 MARCH 31,
(UNAUDITED) 2000 (UNAUDITED) 2000
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) ................... $ 651,376 $ 1,177,406 $ 34,990 $ (7,957)
Net realized gains (losses) from:
Security transactions ........................ (89,748) (273,179) 4,161,078 9,161,355
Foreign currency transactions ................ -- -- (113,561) 59,241
Net change in unrealized appreciation/
depreciation on:
Investments .................................. 337,962 (842,700) (17,763,474) 13,892,377
Foreign currency translation ................. -- -- 22,364 (48,490)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations ................................ 899,590 61,527 (13,658,603) 23,056,526
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ..................... (651,375) (1,177,406) -- (176,037)
From net realized gains from security transactions -- (26,368) (6,410,897) (3,331,220)
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders ................................ (651,375) (1,203,774) (6,410,897) (3,507,257)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 2,648,789 8,385,959 55,952,843 90,812,642
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. 421,214 782,744 6,259,385 3,459,170
Payments for shares redeemed ................... (3,189,479) (4,514,008) (51,547,562) (81,991,058)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions ..................... (119,476) 4,654,695 10,664,666 12,280,754
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ..................................... 128,739 3,512,448 (9,404,834) 31,830,023
NET ASSETS
Beginning of period ............................ 29,138,243 25,625,795 85,849,280 54,019,257
------------ ------------ ------------ ------------
End of period .................................. $ 29,266,982 $ 29,138,243 $ 76,444,446 $ 85,849,280
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ........................................... 270,830 851,453 3,731,668 5,427,637
Reinvested ..................................... 42,975 79,693 399,134 230,579
Redeemed ....................................... (325,770) (462,080) (3,409,520) (4,847,275)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding .. (11,965) 469,066 721,282 810,941
Shares outstanding, beginning of period ........ 2,975,269 2,506,203 4,772,780 3,961,839
------------ ------------ ------------ ------------
Shares outstanding, end of period .............. 2,963,304 2,975,269 5,494,062 4,772,780
============ ============ ============ ============
</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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 19.83 $ 18.12 $ 17.38 $ 15.17 $ 14.77 $ 12.76
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.17 0.35 0.34 0.37 0.35 0.36
Net realized and unrealized gains (losses)
on investments ............................. (0.48) 2.49 0.95 4.31 1.45 2.50
-------- -------- -------- -------- -------- --------
Total from investment operations ............... (0.31) 2.84 1.29 4.68 1.80 2.86
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.17) (0.35) (0.34) (0.37) (0.35) (0.36)
Distributions from net realized gains ........ -- (0.78) (0.21) (2.10) (1.05) (0.49)
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.17) (1.13) (0.55) (2.47) (1.40) (0.85)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 19.35 $ 19.83 $ 18.12 $ 17.38 $ 15.17 $ 14.77
======== ======== ======== ======== ======== ========
Total return ................................... (1.58%)(b) 15.90% 7.56% 32.42% 12.29% 22.79%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $127,834 $128,201 $112,804 $101,408 $ 70,654 $ 61,576
======== ======== ======== ======== ======== ========
Ratio of gross expenses to average net assets .. 0.88%(c) 0.88% 0.88% 0.90% 0.91% 0.93%
Ratio of net expenses to average net assets(a) . 0.86%(c) 0.86% 0.86% 0.87% 0.87% 0.88%
Ratio of net investment income to average net
assets ....................................... 1.71%(c) 1.85% 1.95% 2.21% 2.31% 2.52%
Portfolio turnover rate ........................ 57%(c) 62% 69% 90% 58% 72%
</TABLE>
(a) Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
(b) Not annualized.
(c) 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 26.02 $ 21.76 $ 20.16 $ 15.66 $ 13.96 $ 11.29
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss) ................. (0.02) 0.03 0.07 0.11 0.13 0.15
Net realized and unrealized gains (losses)
on investments ............................. (1.02) 5.18 1.60 6.47 2.00 2.98
-------- -------- -------- -------- -------- --------
Total from investment operations ............... (1.04) 5.21 1.67 6.58 2.13 3.13
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... -- (0.03) (0.07) (0.11) (0.13) (0.15)
Distributions from net realized gains ........ -- (0.92) -- (1.97) (0.30) (0.31)
-------- -------- -------- -------- -------- --------
Total distributions ............................ -- (0.95) (0.07) (2.08) (0.43) (0.46)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 24.98 $ 26.02 $ 21.76 $ 20.16 $ 15.66 $ 13.96
======== ======== ======== ======== ======== ========
Total return ................................... 4.00%(b) 24.04% 8.33% 43.74% 15.27% 28.00%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 71,759 $ 77,809 $ 63,416 $ 52,214 $ 31,180 $ 17,857
======== ======== ======== ======== ======== ========
Ratio of gross expenses to average net assets .. 0.89%(c) 0.91% 0.92% 0.93% 0.98% 1.14%
Ratio of net expenses to average net assets(a) . 0.87%(c) 0.88% 0.89% 0.90% 0.92% 1.01%
Ratio of net investment income to average
net assets ................................... 0.12%(c) 0.14% 0.35% 0.60% 0.85% 1.27%
Portfolio turnover rate ........................ 74%(c) 67% 66% 59% 44% 54%
</TABLE>
(a) Ratios were determined based on net expenses after expense reimbursements
through a directed brokerage arrangement (Note 4).
(b) Not annualized.
(c) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
THE JAMESTOWN TAX EXEMPT VIRGINIA 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 9.79 $ 10.22 $ 10.16 $ 9.83 $ 9.85 $ 9.68
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.22 0.42 0.43 0.44 0.45 0.45
Net realized and unrealized gains (losses)
on investments ............................. 0.09 (0.42) 0.07 0.33 (0.02) 0.17
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.31 0.00 0.50 0.77 0.43 0.62
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.22) (0.42) (0.43) (0.44) (0.45) (0.45)
Distributions from net realized gains ........ -- (0.01) (0.01) -- -- --
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.22) (0.43) (0.44) (0.44) (0.45) (0.45)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 9.88 $ 9.79 $ 10.22 $ 10.16 $ 9.83 $ 9.85
======== ======== ======== ======== ======== ========
Total return ................................... 3.15% 0.04% 4.92% 8.00% 4.39% 6.51%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 29,267 $ 29,138 $ 25,626 $ 18,213 $ 11,197 $ 8,779
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets(a) . 0.68%(c) 0.69% 0.73% 0.75% 0.75% 0.75%
Ratio of net investment income to average
net assets ................................... 4.38%(c) 4.27% 4.17% 4.40% 4.51% 4.57%
Portfolio turnover rate ........................ 55%(c) 47% 31% 33% 24% 14%
</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% and 1.04% for the years ended March 31, 1998, 1997 and 1996,
respectively.
(b) Not annualized.
(c) 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 YEAR PERIOD
SEPT. 30, ENDED ENDED ENDED ENDED
2000 MARCH 31, MARCH 31, MARCH 31, MARCH 31,
(UNAUDITED) 2000 1999 1998 1997(A)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 17.99 $ 13.63 $ 12.61 $ 9.81 $ 10.00
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss) ................. 0.01 (0.00) 0.05 (0.01) (0.01)
Net realized and unrealized gains (losses)
on investments and foreign currencies ...... (2.74) 5.19 1.04 2.91 (0.14)
-------- -------- -------- -------- --------
Total from investment operations ............... (2.73) 5.19 1.09 2.90 (0.15)
-------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... -- (0.04) (0.07) (0.10) (0.04)
Distributions from net realized gains ........ (1.35) (0.79) -- -- --
-------- -------- -------- -------- --------
Total distributions ............................ (1.35) (0.83) (0.07) (0.10) (0.04)
-------- -------- -------- -------- --------
Net asset value at end of period ............... $ 13.91 $ 17.99 $ 13.63 $ 12.61 $ 9.81
======== ======== ======== ======== ========
Total return ................................... (16.01%)(c) 39.35% 8.67% 29.67% (1.56%)(c)
======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 76,444 $ 85,849 $ 54,019 $ 42,543 $ 29,290
======== ======== ======== ======== ========
Ratio of net expenses to average net assets(b) . 1.41%(d) 1.56% 1.51% 1.56% 1.60%(d)
Ratio of net investment income (loss) to
average net assets ........................... 0.09%(d) (0.01)% 0.38% (0.05)% (0.15)%(d)
Portfolio turnover rate ........................ 37%(d) 52% 39% 47% 70%(d)
</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) Not annualized.
(d) Annualized.
See accompanying notes to financial statements.
9
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (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.
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.
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.
11
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
The following information is based upon the federal income tax cost of
investment securities as of September 30, 2000:
<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 .................. $ 39,010,272 $ 28,683,422 $ 374,725 $ 13,148,472
Gross unrealized depreciation .................. (4,157,609) (3,115,629) (215,654) (5,545,386)
------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) ..... $ 34,852,663 $ 25,567,793 $ 159,071 $ 7,603,084
============ ============ ============ ============
Federal income tax cost ........................ $ 92,401,471 $ 46,067,202 $ 28,786,306 $ 65,384,449
============ ============ ============ ============
----------------------------------------------------------------------------------------------------------------
</TABLE>
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for The Jamestown Balanced Fund, The Jamestown
Equity Fund and The Jamestown International Equity Fund is due to certain timing
differences in the recognition of capital losses under income tax regulations
and generally accepted accounting principles.
As of March 31, 2000, The Jamestown Tax Exempt Virginia Fund had capital loss
carryforwards for federal income tax purposes of $151,518 which expire on March
31, 2008. In addition, the Fund had net realized capital losses of $121,661
during the period from November 1, 1999 through March 31, 2000, which are
treated for federal income tax purposes as arising during the Fund's tax year
ending March 31, 2001. These capital loss carryforwards and "post-October"
losses 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, 2000:
<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 ............. $ 40,504,594 $ 27,308,525 $ 7,445,145 $ 17,809,925
============ ============ ============ ============
Proceeds from sales and maturities of
investment securities ........................ $359,926,898 $ 30,090,162 $ 7,307,713 $ 14,407,236
============ ============ ============ ============
----------------------------------------------------------------------------------------------------------------
</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 .55% 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.
12
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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
Integrated Fund Services, Inc. (IFS), IFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, IFS receives a monthly fee from each
of The Jamestown Balanced Fund and The Jamestown Equity Fund at an annual rate
of .18% on its respective average daily net assets up to $25 million; .155% on
the next $25 million of such net assets; and .13% 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, IFS receives a monthly fee at
an annual rate of .14% on its average daily net assets up to $200 million and
.09% on such net assets in excess of $200 million, subject to a $2,000 minimum
monthly fee. From The Jamestown International Equity Fund, IFS receives a
monthly fee at an annual rate of .23% on its average daily net assets up to $25
million; .205% on the next $25 million of such net assets; and .18% on such net
assets in excess of $50 million, subject to a $4,000 minimum monthly fee. In
addition, each Fund pays IFS 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 IFS, or of IFS Fund
Distributors, Inc., the exclusive underwriter of each Funds' shares and an
affiliate of IFS.
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 third-party
broker-dealer who is compensated through commission trades. Payment of expenses
by the broker-dealer is based on a percentage of commissions earned. Expenses
reimbursed through the directed brokerage arrangement totaled $12,000 and $9,000
for The Jamestown Balanced Fund and The Jamestown Equity Fund, respectively, for
the six months ended September 30, 2000.
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 caused
by changes in foreign exchange rates on investments from those caused by
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) purchases
and 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.
13
<PAGE>
THE JAMESTOWN FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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.
As of September 30, 2000, the Jamestown International Equity Fund had forward
foreign currency exchange contracts outstanding as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
NET UNREALIZED
SETTLEMENT TO RECEIVE INITIAL MARKET APPRECIATION
DATE (TO DELIVER) VALUE VALUE (DEPRECIATION)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts To Sell
10/03/00 ................. (255,344) CAD $ 169,562 $ 169,727 $ (165)
10/03/00 ................. (72,072) CHF 41,639 41,712 (73)
10/04/00 ................. (68,718) CHF 39,793 39,774 19
10/02/00 ................. (967) EUR 853 853 --
10/03/00 ................. (72,203) EUR 63,683 63,726 (43)
10/03/00 ................. (28,192) EUR 24,857 24,882 (25)
10/04/00 ................. (31,453) EUR 27,742 27,762 (20)
10/04/00 ................. (70,033) EUR 61,769 61,813 (44)
10/05/00 ................. (57,850) EUR 51,026 51,062 (36)
10/03/00 ................. (45,477,204) JPY 421,710 421,111 599
---------- ---------- ----------
Total sell contracts ......... 902,634 902,422 212
---------- ---------- ----------
Contracts To Buy
10/05/00 ................. 11,238 GBP (16,460) (16,616) 156
10/06/00 ................. 54,533 GBP (80,704) (80,629) (75)
10/03/00 ................. 420,007 HKD (53,869) (53,870) 1
10/04/00 ................. 291,441 HKD (37,379) (37,381) 2
10/03/00 ................. 4,978,289 JPY (46,164) (46,098) (66)
10/04/00 ................. 8,861,921 JPY (81,926) (82,076) 150
---------- ---------- ----------
Total buy contracts .......... (316,502) (316,670) 168
---------- ---------- ----------
Net contracts ................ $ 586,132 $ 585,752 $ 380
========== ========== ==========
---------------------------------------------------------------------------------------------
</TABLE>
CAD - Canadian Dollar GBP - British Pound Sterling
CHF - Swiss Franc HKD - Hong Kong Dollar
EUR - Euro Dollar JPY - Japanese Yen
14
<PAGE>
7. COVERED CALL OPTIONS
A summary of covered call option contracts during the six months ended September
30, 2000 is as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
THE JAMESTOWN THE JAMESTOWN
BALANCED FUND EQUITY FUND
-------------------------------------------
OPTION OPTION OPTION OPTION
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
-------- -------- -------- --------
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at beginning of year . -- $ -- -- $ --
Options written .......................... 38 437,366 26 305,064
Options exercised ........................ (9) (64,978) (4) (28,879)
-------- -------- -------- --------
Options outstanding at end of year ....... 29 $372,388 22 $276,185
======== ======== ======== ========
---------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 69.0% VALUE
--------------------------------------------------------------------------------
ADVERTISING -- 1.7%
65,000 Interpublic Group of Companies, Inc. ............. $ 2,214,062
------------
COMMERCIAL BANKING -- 2.2%
13,000 Bank of America Corporation ...................... 680,875
24,000 Fannie Mae ....................................... 1,716,000
8,000 Freddie Mac ...................................... 432,500
------------
2,829,375
------------
COMMUNICATIONS -- 5.7%
16,000 America Online, Inc.(a) .......................... 860,000
57,000 Equifax, Inc. .................................... 1,535,438
50,000 Nokia Oyj - ADR .................................. 1,990,625
36,000 Tellabs, Inc.(a) ................................. 1,719,000
33,000 Vodafone Group PLC ADR ........................... 1,221,000
------------
7,326,063
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES -- 16.8%
79,000 Cisco Systems, Inc.(a) (b) ....................... 4,364,750
31,000 Computer Sciences Corporation(a) ................. 2,301,750
38,000 EMC Corporation(a) (b) ........................... 3,766,750
68,000 Intel Corporation ................................ 2,830,500
25,000 Microsoft Corporation(a) ......................... 1,506,250
48,000 Oracle Corp.(a) (b) .............................. 3,780,000
25,000 RF Micro Devices, Inc.(a) ........................ 789,062
44,000 Texas Instruments, Inc. .......................... 2,076,250
------------
21,415,312
------------
CONSUMER PRODUCTS -- 8.5%
35,000 Avon Products, Inc. .............................. 1,430,625
14,000 Danaher Corporation .............................. 696,500
48,000 General Electric Company ......................... 2,769,000
50,000 International Paper Company ...................... 1,434,375
45,000 Kimberly-Clark Corporation ....................... 2,511,562
42,000 SYSCO Corporation ................................ 1,945,125
------------
10,787,187
------------
DRUGS/MEDICAL EQUIPMENT -- 6.5%
42,000 Bristol-Myers Squibb Company ..................... 2,399,250
25,000 Merck & Co., Inc. ................................ 1,860,938
42,075 Pfizer, Inc. ..................................... 1,890,745
45,000 Schering-Plough Corporation ...................... 2,092,500
------------
8,243,433
------------
ELECTRONICS -- 5.9%
33,000 Agilent Technologies, Inc.(a) .................... 1,614,938
36,000 Dell Computer Corporation(a) ..................... 1,109,250
19,000 Hewlett-Packard Company .......................... 1,843,000
64,000 Solectron Corporation(a) ......................... 2,952,000
------------
7,519,188
------------
FINANCIAL SERVICES -- 3.3%
33,000 Capital One Financial Corporation ................ 2,312,062
36,000 Citigroup, Inc. .................................. 1,946,250
------------
4,258,312
------------
16
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 69.0% VALUE
--------------------------------------------------------------------------------
FIRE SYSTEMS -- 3.0%
73,000 Tyco International, Ltd. ......................... $ 3,786,875
------------
INSURANCE -- 2.2%
30,000 American International Group, Inc. ............... 2,870,625
------------
OIL AND GAS DRILLING -- 7.3%
33,000 Coastal Corporation .............................. 2,446,125
30,000 Exxon Mobil Corporation .......................... 2,673,750
34,000 Halliburton Company .............................. 1,663,875
49,000 Texaco, Inc. ..................................... 2,572,500
------------
9,356,250
------------
RETAIL STORES -- 2.5%
35,000 Circuit City Stores - Circuit City Group ......... 805,000
21,000 Home Depot, Inc. ................................. 1,114,312
50,000 Target Corporation ............................... 1,281,250
------------
3,200,562
------------
UTILITIES - TELEPHONE -- 3.4%
40,000 BellSouth Corporation ............................ 1,610,000
90,000 WorldCom, Inc.(a) ................................ 2,733,750
------------
4,343,750
------------
TOTAL COMMON STOCKS (Cost $52,320,332) ........... $ 88,150,994
------------
================================================================================
PAR
VALUE U.S. TREASURY OBLIGATIONS -- 6.5% VALUE
--------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 6.0%
$1,040,000 6.50%, due 05/31/2001 ............................ $ 1,040,811
1,500,000 6.50%, due 03/31/2002 ............................ 1,507,035
400,000 6.375%, due 08/15/2002 ........................... 402,248
1,500,000 5.75%, due 08/15/2003 ............................ 1,491,555
1,000,000 6.75%, due 05/15/2005 ............................ 1,035,940
2,115,000 7.00%, due 07/15/2006 ............................ 2,223,394
------------
7,700,983
------------
U.S. TREASURY INFLATION-PROTECTION NOTES -- 0.5%
409,430 3.625%, due 07/15/2002 ........................... 408,918
217,550 3.375%, due 01/15/2007 ........................... 210,208
619,126
------------
TOTAL TREASURY NOTES (Cost $8,326,375) ........... $ 8,320,109
------------
17
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR
VALUE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.0% VALUE
--------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK -- 0.8%
$1,000,000 6.00%, due 11/15/2001 ............................ $ 994,840
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.2%
1,500,000 6.625%, due 09/15/2009 ........................... 1,482,180
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 3.0%
500,000 6.25%, due 05/15/2029 ............................ 461,095
1,250,000 7.25%, due 01/15/2010 ............................ 1,289,062
2,000,000 7.00%, due 07/15/2005 ............................ 2,033,740
------------
3,783,897
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,208,314) .............................. $ 6,260,917
------------
================================================================================
PAR
VALUE MORTGAGE-BACKED SECURITIES -- 1.4% VALUE
--------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.5%
$ 475,000 Pool #1471, 7.00%, due 03/15/2008 ................ $ 474,701
175,000 Pool #1655-HB, 6.50%, due 10/15/2008 ............. 172,046
------------
646,747
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.9%
425,000 Series #93-18-PJ, 6.50%, due 12/25/2007 .......... 420,219
796,498 Pool #380512, 6.15%, due 08/01/2008 .............. 760,158
1,180,377
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $1,879,928) $ 1,827,124
------------
================================================================================
PAR
VALUE ASSET-BACKED SECURITIES -- 1.4% VALUE
--------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION -- 0.6%
$ 311,017 Series #97-3-A1, 5.456%, adjustable rate,
due 04/25/2006 ................................. $ 308,684
511,334 Series #98-1-A1, 5.566%, adjustable rate,
due 01/25/2007 ................................. 510,250
------------
818,934
------------
OTHER ASSET-BACKED SECURITIES -- 0.8%
California Infrastructure Trust #97-1-A3,
377,914 6.17%, due 03/25/2003 .......................... 376,849
Fleetwood Credit Corporation Grantor Trust #95-A-A,
195,693 8.45%, due 11/15/2010 .......................... 196,609
MBNA Master Credit Card Trust #98-J-A,
500,000 5.25%, due 02/15/2006 .......................... 481,560
------------
1,055,018
------------
TOTAL ASSET-BACKED SECURITIES
(Amortized Cost $1,871,554) .................... $ 1,873,952
------------
18
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR
VALUE MUNICIPAL OBLIGATIONS -- 1.9% VALUE
--------------------------------------------------------------------------------
Virginia State Housing Dev. Authority Revenue,
$2,540,000 6.50%, due 10/01/2007 (Amortized Cost $2,540,000) $ 2,450,236
------------
================================================================================
PAR
VALUE CORPORATE BONDS -- 13.6% VALUE
--------------------------------------------------------------------------------
American Home Products,
$ 500,000 7.90%, due 02/15/2005 .......................... $ 514,600
Associates Corporation, N.A.,
675,000 5.85%, due 01/15/2001 .......................... 672,752
Beneficial Corporation Medium Term Notes,
230,000 6.35%, due 12/03/2001 .......................... 228,960
Boeing Capital Corporation,
300,000 7.10%, due 09/27/2005 .......................... 301,812
Chrysler Financial Corporation,
1,000,000 5.90%, due 01/26/2001 .......................... 996,750
Citigroup, Inc.,
700,000 7.45%, due 06/06/2002 .......................... 708,155
Coca-Cola Enterprises,
385,000 5.75%, due 11/01/2008 .......................... 346,650
Conoco, Inc.,
750,000 5.90%, due 04/15/2004 .......................... 727,418
Deutsche Telekom Int. Fin.,
500,000 8.00%, due 06/15/2010 .......................... 513,460
Donaldson Lufkin Jenrette
500,000 6.875%, due 11/01/2005 ......................... 490,915
Duke Realty L.P. Medium Term Notes,
390,000 6.75%, due 05/30/2008 .......................... 364,736
Enron Corporation,
750,000 6.45%, due 11/15/2001 .......................... 745,110
Equity Residential Properties Trust,
875,000 6.65%, due 11/15/2003 .......................... 855,925
Ford Motor Credit Company,
250,000 8.00%, due 06/15/2002 .......................... 253,550
FPL Group Capital, Inc.,
500,000 7.375%, due 06/01/2009 ......................... 492,850
General Electric Capital Corporation,
420,000 6.52%, due 10/08/2002 .......................... 418,820
Goldman Sachs Group,
950,000 6.65%, due 05/15/2009 .......................... 897,550
GTE Northwest, Inc.,
750,000 6.30%, due 06/01/2010 .......................... 687,105
Hewlett-Packard Company,
140,000 7.15%, due 06/15/2005 .......................... 141,898
International Paper Company,
735,000 8.68%, due 09/14/2001 .......................... 747,216
KeyCorp Medium Term Notes,
675,000 6.75%, due 05/29/2001 .......................... 674,676
Manitoba (Province of) Medium Term Notes,
205,000 5.50%, due 10/01/2008 .......................... 187,112
19
<PAGE>
THE JAMESTOWN BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR
VALUE CORPORATE BONDS -- 13.6% (CONTINUED) VALUE
--------------------------------------------------------------------------------
May Department Stores,
$ 510,000 5.95%, due 11/01/2008 .......................... $ 461,417
Merrill Lynch & Company Medium Term Notes,
265,000 7.26%, due 03/25/2002 .......................... 263,675
National City Corporation,
575,000 7.20%, due 05/15/2005 .......................... 570,774
Norwest Financial, Inc.,
615,000 5.375%, due 09/30/2003 ......................... 589,828
Pacific Bell Medium Term Notes,
400,000 6.875%, due 08/15/2006 ......................... 395,068
Pacific Bell,
435,000 6.625%, due 11/01/2009 ......................... 414,181
Prologis Trust,
225,000 7.00%, due 10/01/2003 .......................... 220,898
Sears Roebuck Acceptance Corporation,
465,000 6.99%, due 09/30/2002 .......................... 463,019
Sherwin-Williams Company,
500,000 6.85%, due 02/01/2007 .......................... 484,990
TRW, Inc.,
245,000 6.25%, due 01/15/2010 .......................... 213,601
Union Camp Corporation,
630,000 6.50%, due 11/15/2007 .......................... 591,879
Worldcom, Inc.,
772,000 6.125%, due 08/15/2001 ......................... 766,310
------------
TOTAL CORPORATE BONDS -- 13.6% (Cost $17,863,415) $ 17,403,660
------------
================================================================================
SHARES MONEY MARKETS -- 1.0% VALUE
--------------------------------------------------------------------------------
1,303,515 Firstar Stellar Treasury Fund (Cost $1,303,515) .. $ 1,303,515
------------
TOTAL INVESTMENTS AT VALUE -- 99.5%
(Cost $90,543,184) ............................. $126,156,132
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.5% .... 1,677,724
------------
NET ASSETS -- 100.0%.............................. $127,833,856
============
(a) Non-income producing security.
(b) Security covers a call option.
See accompanying notes to financial statements.
20
<PAGE>
THE JAMESTOWN BALANCED FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
OPTION VALUE OF PREMIUMS
CONTRACTS COVERED CALL OPTIONS OPTIONS RECEIVED
--------------------------------------------------------------------------------
Cisco Systems, Inc.,
40 01/20/2001, at $70 ................... $ 10,000 $ 27,379
EMC Corporation,
70 01/20/2001, at $80 ................... 168,875 79,558
Oracle Corporation,
180 01/20/2001, at $85 ................... 157,500 265,451
---------- ----------
$ 336,375 $ 372,388
========== ==========
See accompanying notes to financial statements.
21
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 98.8% VALUE
--------------------------------------------------------------------------------
ADVERTISING -- 2.5%
53,000 Interpublic Group of Companies, Inc. ............. $ 1,805,312
------------
COMMERCIAL BANKING -- 2.5%
17,000 Fannie Mae ....................................... 1,215,500
10,000 Freddie Mac ...................................... 540,625
------------
1,756,125
------------
COMMUNICATIONS -- 12.2%
30,000 Bell South Corporation ........................... 1,207,500
50,000 Equifax, Inc. .................................... 1,346,875
40,000 Nokia Oyj - ADR .................................. 1,592,500
29,000 Tellabs, Inc.(a) ................................. 1,384,750
27,000 Vodafone Group PLC ADR ........................... 999,000
73,000 WorldCom, Inc.(a) ................................ 2,217,375
------------
8,748,000
------------
COMPUTERS/COMPUTER TECHNOLOGY SERVICES -- 25.6%
16,000 America Online, Inc.(a) .......................... 860,000
60,000 Cisco Systems, Inc.(a) ........................... 3,315,000
25,000 Computer Sciences Corporation(a) ................. 1,856,250
32,000 Dell Computer Corporation(a) ..................... 986,000
29,000 EMC Corporation(a) ............................... 2,874,625
50,000 Intel Corporation ................................ 2,081,250
20,500 Microsoft Corporation(a) ......................... 1,235,125
37,000 Oracle Corporation(a) ............................ 2,913,750
20,000 RF Micro Devices, Inc.(a) ........................ 627,500
35,000 Texas Instruments, Inc. .......................... 1,651,562
------------
18,401,062
------------
CONSUMER PRODUCTS -- 11.2%
31,000 Avon Products, Inc. .............................. 1,267,125
14,000 Danaher Corporation .............................. 696,500
42,000 General Electric Company ......................... 2,422,875
40,000 International Paper Company ...................... 1,147,500
36,000 Kimberly-Clark Corporation ....................... 2,009,250
35,000 SYSCO Corporation ................................ 1,620,938
------------
9,164,188
------------
DRUGS/MEDICAL EQUIPMENT -- 9.1%
34,000 Bristol-Myers Squibb Company ..................... 1,942,250
20,000 Merck & Co., Inc. ................................ 1,488,750
33,000 Pfizer, Inc. ..................................... 1,482,938
35,000 Schering-Plough Corporation ...................... 1,627,500
------------
6,541,438
------------
ELECTRONICS -- 7.5%
27,000 Agilent Technologies, Inc.(a) .................... 1,321,312
17,000 Hewlett-Packard Company .......................... 1,649,000
52,000 Solectron Corporation(a) ......................... 2,398,500
------------
5,368,812
------------
FINANCIAL SERVICES -- 5.0%
30,000 Capital One Financial Corporation ................ 2,101,875
28,000 Citigroup, Inc. .................................. 1,513,750
------------
3,615,625
------------
22
<PAGE>
THE JAMESTOWN EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 98.8% (CONTINUED) VALUE
--------------------------------------------------------------------------------
FIRE SYSTEMS -- 4.5%
62,000 Tyco International, Ltd. ......................... $ 3,216,250
------------
INSURANCE -- 2.9%
21,750 American International Group, Inc. ............... 2,081,203
------------
OIL AND GAS DRILLING -- 10.5%
28,000 Coastal Corporation .............................. 2,075,500
22,000 Exxon Mobil Corporation .......................... 1,960,750
25,000 Halliburton Company .............................. 1,223,438
43,000 Texaco, Inc. ..................................... 2,257,500
------------
7,517,188
------------
RETAIL STORES -- 4.1%
30,000 Circuit City Stores - Circuit City Group ......... 690,000
23,000 Home Depot, Inc. ................................. 1,220,438
40,000 Target Corporation ............................... 1,025,000
------------
2,935,438
------------
TOTAL COMMON STOCKS -- 98.8% (Cost $45,193,288) .. $ 71,150,641
------------
================================================================================
SHARES MONEY MARKETS -- 1.0% VALUE
--------------------------------------------------------------------------------
734,979 Firstar Stellar Treasury Fund (Cost $734,979) .... $ 734,979
------------
TOTAL INVESTMENTS AT VALUE -- 99.8%
(Cost $45,928,267) ............................. $ 71,885,620
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% .... 126,705
------------
NET ASSETS -- 100.0%.............................. $ 71,758,915
------------
(a) Non-income producing security.
See accompanying notes to financial statements.
THE JAMESTOWN EQUITY FUND
SCHEDULE OF OPEN OPTIONS WRITTEN
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
OPTION VALUE OF PREMIUMS
CONTRACTS COVERED CALL OPTIONS OPTIONS RECEIVED
--------------------------------------------------------------------------------
Cisco Systems, Inc.,
30 01/20/2001, at $70 ................... $ 7,500 $ 20,535
EMC Corporation,
50 01/20/2001, at $80 ................... 120,625 56,827
Oracle Corporation,
140 01/20/2001, at $85 ................... 122,500 198,823
---------- ----------
$ 250,625 $ 276,185
========== ==========
See accompanying notes to financial statements.
23
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
PAR VIRGINIA FIXED RATE REVENUE AND GENERAL
VALUE OBLIGATION (GO) BONDS -- 98.1% VALUE
--------------------------------------------------------------------------------
Chesterfield Co., Virginia, GO,
350,000 6.25%, due 07/15/2005, Prerefunded 07/15/2001 .. $ 361,592
750,000 4.00%, due 01/01/2006 .......................... 722,715
Chesterfield Co., Virginia, Water and Sewer, Revenue,
1,000,000 0.00%, due 11/01/2004 .......................... 824,030
Fairfax Co., Virginia, GO,
500,000 5.20%, due 10/01/2001 .......................... 501,575
210,000 5.60%, due 05/01/2003 .......................... 211,754
Fairfax Co., Virginia, Park Authority, Revenue,
300,000 6.25%, due 07/15/2005 .......................... 314,466
Greater Richmond, Virginia, Convention Center
Authority, Revenue,
550,000 5.50%, due 06/15/2008 .......................... 572,011
Hampton, Virginia, GO,
1,000,000 5.50%, due 02/01/2012 .......................... 1,036,660
Hanover Co., Virginia, Industrial Dev.
Authority, Revenue,
1,000,000 6.50%, due 08/15/2009 .......................... 1,117,050
225,000 6.25%, due 10/01/2011 .......................... 232,556
650,000 5.50%, due 07/01/2029, Weekly Floating Rate .... 650,000
Henrico Co., Virginia, Economic Dev.
Authority, Revenue,
1,000,000 5.50%, due 11/01/08 ............................ 1,045,740
Henrico Co., Virginia, Water and Sewer, Revenue,
500,000 4.625%, due 05/01/2017 ......................... 440,350
Loudoun Co., Virginia, GO,
1,000,000 4.50%, due 12/01/2002 .......................... 1,001,990
Medical College of Virginia Hospitals
Authority, Revenue,
700,000 5.00%, due 07/01/2013 .......................... 683,186
Norfolk, Virginia, GO,
500,000 5.25%, due 06/01/2008 .......................... 509,910
300,000 5.75%, due 06/01/2011 .......................... 311,721
Norfolk, Virginia, Industrial Dev.
Authority, Revenue,
1,000,000 6.50%, due 11/01/2013 .......................... 1,061,960
Pocahontas Parkway Assoc., Virginia Toll
Road, Revenue,
900,000 5.00%, due 08/15/2005 .......................... 869,355
Portsmouth, Virginia, GO,
800,000 5.00%, due 08/01/2017 .......................... 756,384
Prince William Co., Virginia, Park
Authority, Revenue,
250,000 6.10%, due 10/15/2004 .......................... 263,125
Prince William Co., Virginia, Service Authority
Water & Sewer, Revenue,
500,000 5.00%, due 07/01/2003 .......................... 505,990
Richmond, Virginia, GO,
1,000,000 5.45%, due 01/15/2008 .......................... 1,041,400
Richmond, Virginia, Metropolitan Authority,
Expressway, Revenue,
500,000 6.05%, due 07/15/2005 .......................... 521,260
Richmond, Virginia, Redev. & Housing
Authority, Revenue,
1,000,000 5.45%, due 04/01/2029, Weekly Floating Rate .... 1,000,000
Riverside, Virginia, Regional Jail
Authority, Revenue,
1,000,000 5.625%, due 07/01/2007, Prerefunded 07/01/2005 . 1,049,980
Roanoke, Virginia, GO,
1,000,000 5.00%, due 08/01/2009 .......................... 1,012,870
300,000 6.40%, due 08/01/2012, Prerefunded 08/01/2001 .. 312,897
24
<PAGE>
THE JAMESTOWN TAX EXEMPT VIRGINIA FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VIRGINIA FIXED RATE REVENUE AND GENERAL
VALUE OBLIGATION (GO) BONDS -- 98.1% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Spotsylvania Co., Virginia, GO,
$ 400,000 5.75%, due 07/15/2011, Prerefunded 07/15/2002 .. $ 415,812
Suffolk, Virginia, GO,
350,000 5.80%, due 06/01/2011 .......................... 369,320
University of Virginia, Revenue,
1,000,000 5.25%, due 06/01/2012 .......................... 1,012,150
Upper Occoquan, Virginia, Sewer Authority, Revenue,
700,000 5.00% due 07/01/2015 ........................... 668,969
Virginia Beach, Virginia, GO,
1,000,000 5.25%, due 08/01/2010 .......................... 1,031,730
325,000 6.20%, due 09/01/2013, prerefunded 09/01/2004 .. 349,378
Virginia Commonwealth Transportation Board, Revenue,
1,000,000 5.50%, due 05/15/2024 .......................... 985,620
Virginia State Housing Dev. Authority,
Commonwealth Mortgages, Revenue,
1,000,000 6.05%, due 07/01/2013 .......................... 1,032,180
Virginia State Housing Dev. Authority,
Multi-Family, Revenue,
150,000 6.60%, due 11/01/2012 .......................... 157,244
150,000 6.30%, due 11/01/2015 .......................... 154,628
Virginia State Public Building Authority, Revenue,
900,000 6.00%, due 08/01/2003 .......................... 919,584
Virginia State Public School Authority, Revenue,
1,000,000 5.25%, due 08/01/2009 .......................... 1,031,310
Virginia State Transportation Board, Revenue,
350,000 6.25%, due 05/15/2012, prerefunded 05/15/2004 .. 372,522
Virginia State, GO,
1,000,000 5.375%, due 06/01/2003 ......................... 1,023,760
York Co., Virginia, Certificates of Participation,
Revenue,
250,000 6.625%, due 03/01/2012 ......................... 255,638
------------
TOTAL VIRGINIA FIXED RATE REVENUE AND GENERAL
OBLIGATION (GO) BONDS -- 98.1% (Cost $28,553,298) $ 28,712,372
------------
================================================================================
SHARES MONEY MARKETS -- 0.8% VALUE
--------------------------------------------------------------------------------
233,007 Firstar Tax-Free Fund (Cost $233,007) ............ $ 233,007
------------
TOTAL INVESTMENTS AT VALUE -- 98.9%
(Cost $28,786,305) ............................. $ 28,945,379
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.1% .... 321,603
------------
NET ASSETS -- 100.0%.............................. $ 29,266,982
============
See accompanying notes to financial statements.
25
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 95.5% VALUE
--------------------------------------------------------------------------------
BRAZIL -- 0.5%
22,388 Embratel Participacoesadr SA ..................... $ 414,178
------------
CANADA -- 2.4%
30,095 Nortel Networks Corp. ............................ 1,807,159
------------
FRANCE -- 11.7%
18,031 Alcatel .......................................... 1,153,646
17,216 Aventis SA ....................................... 1,291,415
11,520 Carrefour SA ..................................... 850,928
27,453 Rhodia SA ........................................ 298,238
8,970 Suez Lyonnaise des Eaux(a) ....................... 1,390,846
10,735 Total Fina Elf ................................... 1,570,729
19,788 Valeo SA ......................................... 857,778
20,156 Vivendi .......................................... 1,497,722
------------
8,911,301
------------
GERMANY -- 9.2%
3,373 Allianz AG - REG ................................. 1,114,764
17,772 Aventis S.A ...................................... 1,383,310
1,402 Bayerische Motoren Werke (BMW) AG ................ 47,882
27,932 Dresdner Bank AG ................................. 1,228,802
18,346 E.On AG .......................................... 945,516
22,076 Metallgesellschaft AG ............................ 233,785
8,255 Sap AG ........................................... 2,025,240
3,602 United Internet AG ............................... 33,377
------------
7,012,677
------------
HONG KONG -- 4.8%
158,000 China Mobile (Hong Kong)(a) ...................... 1,048,686
514,000 China Unicom(a) .................................. 1,150,367
54,100 Hutchison Whampoa Ltd. ........................... 718,151
79,000 Sun Hung Kai Properties .......................... 744,719
------------
3,661,923
------------
ITALY -- 6.7%
330,623 Banca Nazionale Lavoro - ORD ..................... 1,114,580
204,308 Eni Spa .......................................... 1,081,811
131,353 Mediaset SpA ..................................... 1,956,713
116,366 Telecom Italia SpA ............................... 940,668
------------
5,093,772
------------
JAPAN -- 20.3%
17,000 Bridgestone Corporation .......................... 204,516
36,000 Fujitsu Ltd. ..................................... 836,202
26,000 Kao Corporation .................................. 709,791
5,400 Matsushita Communication Industrial Co., Ltd. .... 730,094
177 Mizuho Holdings, Inc. ............................ 1,457,801
8,000 Murata Manufacturing Company Ltd. ................ 1,103,091
84 Nippon Telegraph and Telephone Corporation ....... 823,987
35,000 Nomura Securities Company Ltd. ................... 761,151
72 NTT Mobile Communications Network, Inc. .......... 2,065,519
16,000 Pioneer Corporation .............................. 651,490
26
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 95.5% VALUE
--------------------------------------------------------------------------------
JAPAN -- 20.3%(CONTINUED)
5,600 Rohm Company ..................................... $ 1,534,481
201,000 Sakura Bank Ltd. ................................. 1,499,223
2,080 Shohkoh Fund & Company Ltd. ...................... 261,203
6,000 Taisho Pharmaceutical Co., Ltd. .................. 185,453
19,000 Takeda Chemical Industries ....................... 1,255,414
4,500 Takefuji Corporation ............................. 495,558
19,000 Yamanouchi Pharmaceutical Company Ltd. ........... 914,307
------------
15,489,280
------------
NETHERLANDS -- 12.8%
43,854 Koninklijke Ahold NV ............................. 1,243,468
13,504 Gucci Group NV - ADR ............................. 1,362,216
12,951 ING Groep NV ..................................... 862,680
66,109 KPN NV ........................................... 1,439,861
10,164 KPNQwest NV (a) .................................. 289,274
1 Laurus NV ........................................ 4
17,237 Philips Electronics NV ........................... 741,872
24,427 Unilever NV - CVA ................................ 1,185,626
38,996 VNU NV ........................................... 1,961,596
33,273 Wolters Kluwer - CVA ............................. 675,359
------------
9,761,956
------------
SINGAPORE -- 1.1%
75,000 DBS Group Holdings Ltd. .......................... 827,444
------------
SOUTH KOREA -- 1.2%
12,290 Korea Telecom Corp. - SP ADR ..................... 413,251
20,804 SK Telecom Co., Ltd - ADR ........................ 533,103
------------
946,354
------------
SPAIN -- 1.6%
61,051 Telefonica SA .................................... 1,209,550
------------
SWEDEN -- 2.4%
26,138 Skandinaviska Enskilda BAN -A .................... 316,109
99,004 Telefonaktiebologet LM Ericsson AB ............... 1,505,667
------------
1,821,775
------------
SWITZERLAND -- 2.0%
1,173 Clariant AG ...................................... 337,974
818 Novartis AG ...................................... 1,254,166
------------
1,592,140
------------
27
<PAGE>
THE JAMESTOWN INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 95.5% VALUE
--------------------------------------------------------------------------------
UNITED KINGDOM -- 17.8%
29,082 Astrazeneca PLC .................................. $ 1,524,700
248,780 British Aerospace PLC (a) ........................ 1,345,306
78,869 Cable & Wireless PLC ............................. 1,124,099
3,362 Colt Telecom Group PLC (a) ....................... 96,432
148,986 Diageo PLC ....................................... 1,329,364
53,231 Glaxo Wellcome PLC ............................... 1,606,309
95,662 HSBC Holdings PLC ................................ 1,360,617
47,968 Railtrack Group PLC .............................. 786,510
189,593 Reed International PLC ........................... 1,498,274
168,537 Somerfield PLC ................................... 198,100
114,614 Telewest Communications PLC (a) .................. 223,683
676,481 Vodafone Group PLC ............................... 2,522,947
------------
13,616,341
------------
UNITED STATES -- 1.0%
11,734 Telefonos De Mexico - SP ADR L ................... 624,102
17,962 Turkcell Iletisim Hizmet - ADR (a) ............... 197,582
------------
821,684
------------
TOTAL COMMON STOCKS -- 95.5% (Cost $65,376,268) .. $ 72,987,533
OTHER ASSETS IN EXCESS OF LIABILITIES -- 4.5% .... 3,456,913
------------
NET ASSETS -- 100.0%.............................. $ 76,444,446
============
(a) Non-income producing security.
See accompanying notes to financial statements
28
<PAGE>
----------------------------------- -----------------------------------
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
------------------------------
NO LOAD MUTUAL FUNDS
INVESTMENT ADVISER
T. Leavell & Associates, Inc. THE GOVERNMENT STREET FUNDS
150 Government Street THE ALABAMA TAX FREE BOND FUND
Post Office Box 1307 ------------------------------
Mobile, AL 36633
NO LOAD MUTUAL FUNDS
ADMINISTRATOR
Ultimus Fund Solutions, LLC
P.O. Box 46707
Cincinnati, OH 45246-0707
1-866-738-1125
LEGAL COUNSEL
Sullivan & Worcester LLP
One Post Office Square
Boston, MA 02109
BOARD OF TRUSTEES SEMI-ANNUAL REPORT
Richard Mitchell, President SEPTEMBER 30, 2000
Austin Brockenbrough, III (UNAUDITED)
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, INVESTMENT ADVISER
The Alabama Tax Free Bond Fund T. LEAVELL & ASSOCIATES, INC.
FOUNDED 1979
----------------------------------- -----------------------------------
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET FUNDS
THE ALABAMA TAX FREE BOND FUND
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (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 ............................ $ 60,613,540 $ 49,438,058 $ 25,731,001
============ ============ ============
At value (Note 1) .............................. $116,923,590 $ 48,311,030 $ 25,904,053
Interest receivable .............................. 14,347 747,864 326,627
Dividends receivable ............................. 61,060 -- --
Receivable for capital shares sold ............... 1,099,646 115,466 67,100
Other assets ..................................... 8,162 7,021 4,388
------------ ------------ ------------
TOTAL ASSETS ................................... 118,106,805 49,181,381 26,302,168
------------ ------------ ------------
LIABILITIES
Bank overdraft ................................... -- 39,986 56
Dividends payable ................................ 2,583 13,689 13,581
Payable for capital shares redeemed .............. 947,402 9,220 11,311
Payable for securities purchased ................. 82,580 -- 250,000
Accrued investment advisory fees (Note 3) ........ 58,706 19,750 6,842
Accrued administration fees (Note 3) ............. 14,500 3,025 3,000
Other accrued expenses and liabilities ........... 35,930 12,390 6,600
------------ ------------ ------------
TOTAL LIABILITIES .............................. 1,141,701 98,060 291,390
------------ ------------ ------------
NET ASSETS ....................................... $116,965,104 $ 49,083,321 $ 26,010,778
============ ============ ============
Net assets consist of:
Paid-in capital .................................. $ 60,841,023 $ 51,158,962 $ 26,083,380
Undistributed net investment income .............. 546 4 --
Accumulated net realized losses
from security transactions ..................... (186,515) (948,617) (245,654)
Net unrealized appreciation (depreciation)
on investments ................................. 56,310,050 (1,127,028) 173,052
------------ ------------ ------------
Net assets ....................................... $116,965,104 $ 49,083,321 $ 26,010,778
============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ..... 2,101,451 2,441,373 2,546,022
============ ============ ============
Net asset value, offering price and
redemption price per share (Note 1) ............ $ 55.66 $ 20.10 $ 10.22
============ ============ ============
</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, 2000 (UNAUDITED)
================================================================================================
GOVERNMENT GOVERNMENT ALABAMA
STREET STREET TAX FREE
EQUITY BOND BOND
FUND FUND FUND
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest ....................................... $ 91,116 $ 1,617,117 $ 605,154
Dividends ...................................... 586,123 -- --
------------ ------------ ------------
TOTAL INVESTMENT INCOME ...................... 677,239 1,617,117 605,154
------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 3) .............. 349,533 116,309 42,096
Administration fees (Note 3) ................... 90,871 17,447 17,388
Professional fees .............................. 5,930 5,930 4,330
Pricing costs .................................. 1,404 5,693 7,304
Custodian fees ................................. 9,395 3,793 2,448
Trustees' fees and expenses .................... 4,589 4,589 4,589
Printing of shareholder reports ................ 2,240 2,240 2,240
Postage and supplies ........................... 1,595 649 779
Registration fees .............................. 1,870 1,742 646
Other expenses ................................. 16,092 2,114 666
------------ ------------ ------------
TOTAL EXPENSES ............................... 483,519 160,506 82,486
Fees waived by the Adviser (Note 3) ............ -- -- (4,310)
------------ ------------ ------------
NET EXPENSES ................................. 483,519 160,506 78,176
------------ ------------ ------------
NET INVESTMENT INCOME ............................ 193,720 1,456,611 526,978
------------ ------------ ------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gains (losses)
from security transactions ................... (137,561) (43,071) 615
Net change in unrealized appreciation/depreciation
on investments ............................... (2,828,186) 784,980 199,570
------------ ------------ ------------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS ........................ (2,965,747) 741,909 200,185
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ................................ $ (2,772,027) $ 2,198,520 $ 727,163
============ ============ ============
</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
2000 MARCH 31, 2000 MARCH 31, 2000 MARCH 31,
(UNAUDITED) 2000 (UNAUDITED) 2000 (UNAUDITED) 2000
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ...................... $ 193,720 $ 349,447 $ 1,456,611 $ 2,711,134 $ 526,978 $ 962,718
Net realized gains (losses)
from security transactions ............... (137,561) 798,881 (43,071) (352,285) 615 (46,986)
Net change in unrealized appreciation/
depreciation on investments .............. (2,828,186) 17,790,895 784,980 (2,047,757) 199,570 (844,115)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets from operations .............. (2,772,027) 18,939,223 2,198,520 311,092 727,163 71,617
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (193,174) (349,447) (1,456,607) (2,711,134) (526,978) (962,718)
From net realized gains .................... -- (849,835) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Decrease in net assets from
distributions to shareholders .............. (193,174) (1,197,282) (1,456,607) (2,711,134) (526,978) (962,718)
------------ ------------ ------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................. 19,909,968 16,032,742 5,598,504 9,164,881 2,778,952 5,417,544
Net asset value of shares issued in
reinvestment of distributions
to shareholders .......................... 189,215 1,172,232 1,371,600 2,531,305 438,775 799,134
Payments for shares redeemed ............... (16,615,500) (9,207,743) (3,784,487) (7,180,879) (455,474) (3,837,209)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets from
capital share transactions ................. 3,483,683 7,997,231 3,185,617 4,515,307 2,762,253 2,379,469
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE IN NET ASSETS ................. 518,482 25,739,172 3,927,530 2,115,265 2,962,438 1,488,368
NET ASSETS
Beginning of period ........................ 116,446,622 90,707,450 45,155,791 43,040,526 23,048,340 21,559,972
------------ ------------ ------------ ------------ ------------ ------------
End of period .............................. $116,965,104 $116,446,622 $ 49,083,321 $ 45,155,791 $ 26,010,778 $ 23,048,340
============ ============ ============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold ....................................... 352,674 312,261 281,338 452,679 272,410 530,939
Reinvested ................................. 3,394 21,194 69,230 126,050 43,245 78,412
Redeemed ................................... (294,982) (178,843) (190,674) (356,474) (44,527) (379,054)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in shares outstanding ......... 61,086 154,612 159,894 222,255 271,128 230,297
Shares outstanding, beginning of period .... 2,040,365 1,885,753 2,281,479 2,059,224 2,274,894 2,044,597
------------ ------------ ------------ ------------ ------------ ------------
Shares outstanding, end of period .......... 2,101,451 2,040,365 2,441,373 2,281,479 2,546,022 2,274,894
============ ============ ============ ============ ============ ============
</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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 57.07 $ 48.10 $ 43.79 $ 32.59 $ 29.41 $ 23.87
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.09 0.18 0.27 0.32 0.37 0.40
Net realized and unrealized
gains (losses) on investments .............. (1.41) 9.39 6.01 12.28 4.50 5.75
-------- -------- -------- -------- -------- --------
Total from investment operations ............... (1.32) 9.57 6.28 12.60 4.87 6.15
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income ......... (0.09) (0.18) (0.27) (0.32) (0.36) (0.40)
Distributions from net realized gains ........ -- (0.42) (1.70) (1.08) (1.33) (0.21)
-------- -------- -------- -------- -------- --------
Total distributions ............................ (0.09) (0.60) (1.97) (1.40) (1.69) (0.61)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 55.66 $ 57.07 $ 48.10 $ 43.79 $ 32.59 $ 29.41
======== ======== ======== ======== ======== ========
Total return ................................... (2.31%)(a) 19.93% 14.81% 39.31% 16.94% 25.96%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $116,965 $116,447 $ 90,707 $ 75,643 $ 49,629 $ 41,421
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets .... 0.83%(b) 0.83% 0.85% 0.86% 0.89% 0.94%
Ratio of net investment income
to average net assets ........................ 0.33%(b) 0.35% 0.61% 0.82% 1.17% 1.50%
Portfolio turnover rate ........................ 0.05%(b) 17% 22% 18% 20% 31%
</TABLE>
(a) Not annualized.
(b) Annualized.
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
THE GOVERNMENT STREET BOND 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 19.79 $ 20.90 $ 21.06 $ 20.47 $ 20.87 $ 20.33
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.62 1.23 1.27 1.32 1.34 1.35
Net realized and unrealized
gains (losses) on investments .............. 0.31 (1.11) (0.16) 0.60 (0.40) 0.54
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.93 0.12 1.11 1.92 0.94 1.89
-------- -------- -------- -------- -------- --------
Dividends from net investment income ........... (0.62) (1.23) (1.27) (1.33) (1.34) (1.35)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 20.10 $ 19.79 $ 20.90 $ 21.06 $ 20.47 $ 20.87
======== ======== ======== ======== ======== ========
Total return ................................... 4.78%(a) 0.67% 5.38% 9.61% 4.60% 9.43%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 49,083 $ 45,156 $ 43,041 $ 36,908 $ 29,442 $ 28,718
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets .... 0.69%(b) 0.70% 0.73% 0.74% 0.75% 0.76%
Ratio of net investment income
to average net assets ........................ 6.26%(b) 6.12% 6.01% 6.35% 6.44% 6.38%
Portfolio turnover rate ........................ 4%(b) 20% 17% 10% 20% 10%
</TABLE>
(a) Not annualized.
(b) Annualized.
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
THE ALABAMA TAX FREE BOND 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,
2000 -----------------------------------------------------
(UNAUDITED) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 10.13 $ 10.54 $ 10.49 $ 10.18 $ 10.23 $ 9.96
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ........................ 0.22 0.44 0.44 0.44 0.43 0.42
Net realized and unrealized
gains (losses) on investments .............. 0.09 (0.41) 0.05 0.31 (0.05) 0.27
-------- -------- -------- -------- -------- --------
Total from investment operations ............... 0.31 0.07 0.49 0.75 0.38 0.69
-------- -------- -------- -------- -------- --------
Dividends from net investment income ........... (0.22) (0.44) (0.44) (0.44) (0.43) (0.42)
-------- -------- -------- -------- -------- --------
Net asset value at end of period ............... $ 10.22 $ 10.13 $ 10.54 $ 10.49 $ 10.18 $ 10.23
======== ======== ======== ======== ======== ========
Total return ................................... 3.12%(b) 0.34% 4.73% 7.44% 3.82% 7.02%
======== ======== ======== ======== ======== ========
Net assets at end of period (000's) ............ $ 26,011 $ 23,048 $ 21,560 $ 19,938 $ 16,801 $ 15,480
======== ======== ======== ======== ======== ========
Ratio of net expenses to average net assets(a) . 0.65%(c) 0.65% 0.65% 0.65% 0.66% 0.75%
Ratio of net investment income
to average net assets ........................ 4.38%(c) 4.32% 4.16% 4.19% 4.24% 4.11%
Portfolio turnover rate ........................ 6%(c) 19% 7% 2% 6% 4%
</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 0.69%
(c), 0.72%, 0.76%, 0.75%, 0.78% and 0.86% for the periods ended September
30, 2000 and March 31, 2000, 1999, 1998, 1997, and 1996, respectively (Note
3).
(b) Not annualized.
(c) Annualized.
See accompanying notes to financial statements.
7
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
SHARES COMMON STOCKS -- 97.9% VALUE
--------------------------------------------------------------------------------
ADVERTISING -- 0.3%
5,500 Omnicom Group, Inc. ........................... $ 401,156
------------
AEROSPACE -- 0.3%
6,000 Boeing Company ................................ 378,000
------------
AIR COURIER SERVICES -- 1.1%
30,000 FedEx Corporation (a) ......................... 1,330,200
------------
CHEMICALS AND DRUGS -- 13.0%
34,000 Becton Dickinson & Company .................... 898,875
22,500 Biomet, Inc. .................................. 787,500
28,000 Cardinal Health, Inc. ......................... 2,469,250
18,000 du Pont (E.I.) de Nemours & Company ........... 745,875
17,000 Eli Lilly & Company ........................... 1,379,125
5,000 Guidant Corporation (a) ....................... 353,438
15,000 Johnson & Johnson ............................. 1,409,062
24,900 Merck & Company, Inc. ......................... 1,853,494
29,200 Pfizer, Inc. .................................. 1,312,175
6,000 Pharmacia Corporation ......................... 361,125
40,000 Schering-Plough Corporation ................... 1,860,000
20,000 Waters Corporation (a) ........................ 1,780,000
------------
15,209,919
------------
CONSTRUCTION -- 1.7%
14,000 Caterpiller, Inc. ............................. 472,500
5,000 Clayton Homes, Inc. ........................... 50,000
3,000 Florida Rock Industries, Inc. ................. 118,312
7,500 Kaufman & Broad Home Corporation .............. 202,031
10,000 Lowe's Companies, Inc. ........................ 448,750
8,500 Masco Corporation ............................. 158,312
24,000 Valspar Corporation ........................... 551,760
------------
2,001,665
------------
CONSUMER PRODUCTS -- 5.5%
21,000 Belo (A.H.) Corporation - Class A ............. 387,188
19,500 Clorox Company (The) .......................... 771,469
5,000 Dow Jones & Company, Inc. ..................... 302,500
13,000 General Motors Corporation .................... 845,000
14,000 Gillette Company .............................. 432,250
6,500 Hewlett-Packard Company ....................... 630,500
7,000 Lexmark International Group, Inc. - Class A (a) 262,500
4,000 Macromedia, Inc. (a) .......................... 323,250
6,000 Maytag Corporation ............................ 186,375
21,500 Microsoft Corporation (a) ..................... 1,295,375
6,000 OshKosh B'Gosh, Inc. - Class A ................ 91,312
13,000 Procter & Gamble Company ...................... 871,000
------------
6,398,719
------------
DURABLE GOODS -- 14.8%
160,000 Cisco Systems, Inc. (a) ....................... 8,840,000
13,000 Costco Wholesale Corporation (a) .............. 454,188
70,500 General Electric Company ...................... 4,066,969
6,500 Ingersoll-Rand Company ........................ 220,188
45,600 Intel Corporation ............................. 1,898,100
6,000 International Business Machines Corporation (IBM) 675,000
2,000 Quanta Services (a) ........................... 55,000
5,118 SPX Corporation (a) ........................... 726,436
4,000 Symbol Technologies, Inc. ..................... 143,750
2,200 Xilinx, Inc. (a) .............................. 188,375
------------
17,268,006
------------
8
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 97.9% (CONTINUED) VALUE
--------------------------------------------------------------------------------
ELECTRONICS -- 4.8%
1,500 Broadcom Corporation (a) ...................... $ 365,625
5,000 Harmonic, Inc. (a) ............................ 120,000
10,000 KEMET Corporation (a) ......................... 276,250
60,683 Koninklijke (Royal) Philips Electronics N.V. (a) 2,579,028
33,000 Motorola, Inc. ................................ 932,250
2,000 Powertel, Inc. (a) ............................ 152,125
6,000 RadioShack Corporation ........................ 387,750
5,500 Seagate Technology, Inc. (a) .................. 379,500
9,500 Solectron Corporation (a) ..................... 438,188
------------
5,630,716
------------
FINANCIAL -- 14.5%
12,000 Aegon N.V ..................................... 445,500
25,000 AFLAC, Inc. ................................... 1,601,562
30,000 American Express Company ...................... 1,822,500
29,500 Charles Schwab Corporation (The) .............. 1,047,250
10,500 Chase Manhattan Corporation ................... 484,969
27,833 Citigroup, Inc. ............................... 1,504,722
75,000 Firstar Corporation ........................... 1,678,125
22,000 FleetBoston Financial Corporation ............. 858,000
20,000 Freddie Mac ................................... 1,081,250
11,000 Marsh & McLennan Companies, Inc. .............. 1,460,250
19,500 MBNA Corporation .............................. 750,750
50,000 Mellon Financial Corporation .................. 2,318,750
14,000 Nasdaq-100 Shares (a) ......................... 1,241,625
5,000 Paychex, Inc. ................................. 262,500
21,000 Synovus Financial Corporation ................. 444,938
------------
17,002,691
------------
FOOD/BEVERAGES -- 1.5%
20,000 Anheuser-Busch Companies, Inc. ................ 846,250
40,000 Coca-Cola Enterprises ......................... 637,500
3,000 Hershey Foods Corporation ..................... 162,375
3,500 SYSCO Corporation ............................. 162,094
------------
1,808,219
------------
HEALTH CARE -- 0.7%
8,000 UnitedHealth Group, Inc. ...................... 790,000
------------
HOTELS -- 0.2%
7,000 Marriott International, Inc. - Class A ........ 255,062
------------
MANUFACTURING -- 4.1%
6,000 Cooper Tire & Rubber Company .................. 60,375
9,387 Delphi Automotive Systems Corporation ......... 141,978
9,500 General Dynamics Corporation .................. 596,719
10,000 Honeywell International, Inc. ................. 356,250
16,000 Johnson Controls, Inc. ........................ 851,000
3,000 KLA-Tencor Corporation (a) .................... 123,562
10,000 Leggett & Platt, Inc. ......................... 158,125
8,000 Mueller Industries, Inc. (a) .................. 179,500
14,000 Pall Corporation .............................. 279,125
38,786 Tyco International, Ltd. ...................... 2,012,024
------------
4,758,658
------------
METAL AND MINING -- 0.7%
24,000 Alcoa, Inc. ................................... 607,500
10,000 Newmont Mining Corporation .................... 170,000
------------
777,500
------------
MULTIMEDIA -- 0.8%
15,500 Viacom, Inc. - Class A (a) .................... 906,750
------------
9
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 97.9% (CONTINUED) VALUE
--------------------------------------------------------------------------------
OIL/ENERGY -- 5.6%
33,082 BP Amoco Plc .................................. $ 1,753,346
10,000 Burlington Resources, Inc. .................... 368,125
13,000 Chevron Corporation ........................... 1,108,250
12,000 Enron Corporation ............................. 1,051,500
14,650 Exxon Mobil Corporation ....................... 1,305,681
7,500 Halliburton Company ........................... 367,031
12,000 Nabors Industries, Inc. (a) ................... 628,800
------------
6,582,733
------------
PAPER AND FOREST PRODUCTS -- 0.6%
11,455 International Paper Company ................... 328,615
5,000 Mead Corporation .............................. 116,875
8,000 Willamette Industries, Inc. ................... 224,000
------------
669,490
------------
PRINTED CIRCUIT BOARDS -- 0.1%
1,000 Celestica, Inc. (a) ........................... 69,250
------------
RACETRACKS -- 0.2%
14,000 Speedway Motorsports, Inc. (a) ................ 291,375
------------
REFUSE SYSTEMS -- 0.2%
13,000 Waste Management, Inc. ........................ 226,688
------------
RETAIL STORES -- 5.8%
19,000 Circuit City Stores - Circuit City Group ...... 437,000
7,500 Harcourt General, Inc. ........................ 442,500
49,500 Home Depot, Inc. .............................. 2,626,594
2,000 NIKE, Inc. - Class B .......................... 80,125
17,000 Target Corporation ............................ 435,625
32,000 Wal-Mart Stores, Inc. ......................... 1,540,000
32,000 Walgreen Company .............................. 1,214,000
------------
6,775,844
------------
SERVICES - COMPUTER -- 5.8%
12,500 Adobe Systems, Inc. ........................... 1,940,625
13,500 America Online, Inc. (a) ...................... 725,625
22,200 Automatic Data Processing, Inc. ............... 1,484,625
7,500 Cendant Corporation (a) ....................... 81,562
24,500 Computer Sciences Corporation (a) ............. 1,819,125
9,500 Electronic Data Systems Corporation ........... 394,250
2,500 Inktomi Corporation (a) ....................... 285,000
------------
6,730,812
------------
SERVICES - CONSUMER -- 0.1%
11,000 HEALTHSOUTH Corporation (a) ................... 89,375
------------
TELECOMMUNICATION EQUIPMENT -- 7.8%
2,479 Agilent Technologies, Inc. (a) ................ 121,316
8,600 Applied Materials, Inc. (a) ................... 510,088
5,000 Comcast Corporation - Class A (a) ............. 203,438
4,500 JDS Uniphase Corporation (a) .................. 426,094
8,500 Lucent Technologies, Inc. ..................... 259,781
10,000 National Semiconductor Corporation (a) ........ 402,500
17,800 Nokia Oyj ..................................... 708,662
48,000 Nortel Networks Corporation ................... 2,859,000
36,000 Scientific-Atlanta, Inc. ...................... 2,290,500
22,000 Tellabs, Inc. (a) ............................. 1,050,500
5,000 Teradyne, Inc. (a) ............................ 175,000
10,000 Titan Corporation (a) ......................... 165,000
------------
9,171,879
------------
10
<PAGE>
THE GOVERNMENT STREET EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 97.9% (CONTINUED) VALUE
--------------------------------------------------------------------------------
UTILITIES -- 6.8%
6,500 ALLTEL Corporation ............................ $ 339,219
26,500 BellSouth Corporation ......................... 1,066,625
18,990 Duke Energy Corporation ....................... 1,628,392
31,127 Qwest Communications International, Inc. (a) .. 1,496,041
59,900 SBC Communications, Inc. ...................... 2,995,000
10,000 Southern Company .............................. 324,375
------------
7,849,652
------------
TOTAL COMMON STOCKS -- (COST $57,064,309) ..... $113,374,359
------------
================================================================================
SHARES MONEY MARKETS -- 3.0% VALUE
--------------------------------------------------------------------------------
3,549,231 Firstar Stellar Treasury Fund (Cost $3,549,231) $ 3,549,231
------------
TOTAL INVESTMENTS AT VALUE -- 99.9%
(COST $60,613,540) .......................... $116,923,590
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1% . 41,514
------------
NET ASSETS -- 100.0% .......................... $116,965,104
============
(a) Non-income producing security.
See accompanying notes to financial statements.
11
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
PAR VALUE U.S. TREASURY AND AGENCY OBLIGATIONS -- 30.0% VALUE
--------------------------------------------------------------------------------
U.S. TREASURY NOTES -- 5.4%
$ 50,000 8.50%, due 11/15/2000 ......................... $ 50,109
140,000 8.00%, due 05/15/2001 ......................... 141,444
125,000 7.875%, due 08/15/2001 ........................ 126,680
850,000 5.75%, due 04/30/2003 ......................... 845,219
750,000 5.875%, due 11/15/2005 ........................ 750,235
750,000 5.50%, due 02/15/2008 ......................... 730,547
------------
2,644,234
------------
FEDERAL FARM CREDIT BANK BONDS -- 1.6%
500,000 6.00%, due 01/07/2008 ......................... 477,590
325,000 6.06%, due 05/28/2013 ......................... 299,197
------------
776,787
------------
FEDERAL HOME LOAN BANK BONDS -- 5.4%
500,000 7.57%, due 08/19/2004 ......................... 517,423
500,000 6.045%, due 12/10/2004 ........................ 490,904
750,000 5.925%, due 04/09/2008 ........................ 714,208
500,000 5.52%, due 09/23/2008 ......................... 460,938
500,000 5.42%, due 09/23/2008 ......................... 457,880
------------
2,641,353
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION BONDS -- 4.4%
500,000 6.345%, due 11/01/2005 ........................ 494,856
895,000 7.44%, due 09/20/2006 ......................... 891,309
800,000 7.04%, due 01/09/2007 ......................... 788,806
------------
2,174,971
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION BONDS -- 13.2%
500,000 6.63%, due 06/20/2005 ......................... 500,590
650,000 7.65%, due 10/06/2006 ......................... 650,415
500,000 7.36%, due 02/07/2007 ......................... 496,944
1,000,000 7.125%, due 03/15/2007 ........................ 1,025,236
400,000 7.70%, due 04/10/2007 ......................... 400,219
750,000 6.62%, due 06/25/2007 ......................... 744,806
500,000 7.16%, due 06/26/2007 ......................... 493,850
500,000 7.00%, due 07/17/2007 ......................... 491,150
750,000 6.08%, due 12/15/2010 ......................... 707,428
400,000 6.80%, due 08/27/2012 ......................... 385,290
600,000 6.875%, due 09/01/2012 ........................ 585,044
------------
6,480,972
------------
TOTAL U.S. TREASURY AND AGENCY OBLIGATIONS
(COST $15,279,872) .......................... $ 14,718,317
------------
12
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE MORTGAGE-BACKED SECURITIES -- 15.8% VALUE
--------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 15.8%
$ 10,710 Pool #15032, 7.50%, due 02/15/2007 ............ $ 10,746
354,590 Pool #438434, 6.50%, due 01/15/2013 ........... 349,892
557,180 Pool #470177, 7.00%, due 03/15/2014 ........... 558,260
365,231 Pool #518403, 7.00%, due 09/15/2014 ........... 365,939
7,229 Pool #176413, 7.50%, due 09/15/2016 ........... 7,253
9,246 Pool #170784, 8.00%, due 12/15/2016 ........... 9,417
11,689 Pool #181540, 8.00%, due 02/15/2017 ........... 11,906
425,958 Pool #493659, 6.50%, due 12/15/2018 ........... 410,464
385,214 Pool #476695, 6.50%, due 10/15/2023 ........... 371,202
353,180 Pool #366710, 6.50%, due 02/15/2024 ........... 340,333
467,672 Pool #453826, 7.25%, due 09/15/2027 ........... 465,042
662,082 Pool #412360, 7.00%, due 11/15/2027 ........... 652,399
549,581 Pool #454162, 7.00%, due 05/15/2028 ........... 541,543
911,926 Pool #2617, 7.50%, due 07/20/2028 ............. 911,014
440,174 Pool #158794, 7.00%, due 09/15/2028 ........... 433,736
448,551 Pool #48760, 6.50%, due 12/15/2028 ............ 432,235
866,291 Pool #506618, 7.00%, due 03/15/2029 ........... 853,622
991,739 Pool #511562, 7.50%, due 07/15/2030 ........... 995,086
------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $7,873,412) $ 7,720,089
------------
================================================================================
PAR VALUE CORPORATE BONDS -- 45.9% VALUE
--------------------------------------------------------------------------------
FINANCE -- 22.3%
AmSouth Bancorp,
$ 550,000 7.75%, due 05/15/2004 ...................... $ 553,783
------------
Banc One Corporation,
665,000 7.00%, due 07/15/2005 ...................... 660,976
500,000 6.875%, due 08/01/2006 ..................... 493,246
------------
1,154,222
------------
Bank of America Corporation,
496,000 8.375%, due 03/15/2002 ..................... 505,210
750,000 7.125%, due 03/01/2009 ..................... 739,162
------------
1,244,372
------------
Bear Stearns Company,
170,000 9.375%, due 06/01/2001 ..................... 172,520
------------
Duke Capital Corporation,
1,000,000 7.50%, due 10/01/2009 ...................... 1,002,585
------------
General Electric Capital Corporation,
130,000 7.24%, due 01/15/2002 ...................... 130,833
150,000 7.50%, due 03/15/2002 ...................... 151,630
------------
282,463
------------
J.P. Morgan & Company,
500,000 7.25%, due 01/15/2002 ...................... 502,275
500,000 6.00%, due 01/15/2009 ...................... 460,019
------------
962,294
------------
Merrill Lynch & Company, Inc.,
745,000 7.375%, due 08/17/2002 ..................... 752,042
1,000,000 7.00%, due 04/27/2008 ...................... 978,609
------------
1,730,651
------------
NationsBank,
550,000 7.625%, due 04/15/2005 ..................... 559,844
------------
13
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE CORPORATE BONDS -- 45.9% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Regions Financial Corporation,
$ 350,000 7.80%, due 12/01/2002 ...................... $ 354,642
------------
Salomon, Inc.,
597,000 7.50%, due 02/01/2003 ...................... 604,332
------------
Sears Roebuck Acceptance Corporation,
700,000 6.00%, due 03/20/2003 ...................... 680,144
------------
SouthTrust Bank of Alabama, N.A.,
665,000 7.00%, due 11/15/2008 ...................... 637,705
------------
Transamerica Financial Corporation,
1,000,000 7.50%, due 03/15/2004 ...................... 1,002,368
------------
TOTAL FINANCE CORPORATE BONDS ................. 10,941,925
------------
INDUSTRIAL -- 18.0%
BP America, Inc.,
265,000 8.50%, due 04/15/2001 ...................... 267,299
------------
Coca-Cola Company,
600,000 6.625%, due 08/01/2004 ..................... 593,773
------------
Conoco, Inc.,
1,000,000 6.35%, due 04/15/2009 ...................... 947,877
------------
duPont (E.I.) de Nemours & Company,
425,000 6.75%, due 10/15/2002 ...................... 425,615
------------
Ford Motor Company,
1,000,000 7.25%, due 10/01/2008 ...................... 978,477
------------
General Motors Corporation,
565,000 7.10%, due 03/15/2006 ...................... 565,799
------------
Hanson Overseas,
1,100,000 7.375%, due 01/15/2003 ..................... 1,103,829
------------
International Business Machines Corporation,
1,000,000 7.25%, due 11/01/2002 ...................... 1,011,598
------------
Kimberly-Clark Corporation,
240,000 8.625%, due 05/01/2001 ..................... 242,295
------------
Mobil Corporation,
100,000 8.375%, due 02/12/2001 ..................... 100,376
------------
Philip Morris Companies, Inc.,
700,000 7.125%, due 10/01/2004 ..................... 686,718
------------
Raytheon Company,
800,000 6.50%, due 07/15/2005 ...................... 774,874
------------
14
<PAGE>
THE GOVERNMENT STREET BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
PAR VALUE CORPORATE BONDS -- 45.9% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc.,
$ 100,000 8.625%, due 04/01/2001 ..................... $ 100,930
1,000,000 7.50%, due 05/15/2004 ...................... 1,026,844
------------
1,127,774
------------
TOTAL INDUSTRIAL CORPORATE BONDS .............. 8,826,304
------------
UTILITY -- 5.6%
AT&T Corporation,
1,000,000 6.00%, due 03/15/2009 ...................... 900,519
------------
BellSouth Corporation,
750,000 7.75%, due 02/15/10 ........................ 768,509
------------
Emerson Electric Company,
587,000 6.30%, due 11/01/2005 ...................... 575,527
------------
Scana Corporation,
500,000 6.05%, due 01/13/2003 ...................... 488,496
------------
TOTAL UTILITY CORPORATE BONDS ................. 2,733,051
------------
TOTAL CORPORATE BONDS (AMORTIZED COST $22,943,124) $ 22,501,280
------------
================================================================================
PAR VALUE MUNICIPAL OBLIGATIONS -- 2.1% VALUE
--------------------------------------------------------------------------------
Alabama State Public School & College Auth.,
$1,050,000 7.15%, due 09/01/2009 (Cost $1,021,010) .... $ 1,050,704
------------
================================================================================
SHARES MONEY MARKETS -- 4.7% VALUE
--------------------------------------------------------------------------------
2,320,640 FIRSTAR STELLAR TREASURY FUND (COST $2,320,640) $ 2,320,640
------------
TOTAL INVESTMENTS AT VALUE -- 98.5%
(COST $49,438,058) .......................... $ 48,311,030
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.5% . 772,291
------------
NET ASSETS -- 100.0% .......................... $ 49,083,321
============
See accompanying notes to financial statements.
15
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
PAR VALUE OBLIGATION (GO) BONDS -- 91.1% VALUE
--------------------------------------------------------------------------------
Alabama Mental Health Finance Auth. Special Tax,
$ 300,000 5.00%, due 05/01/2006 ...................... $ 303,483
------------
Alabama Special Care Facilities Financing
Auth. Rev.,
400,000 5.375%, due 11/01/2012 ..................... 405,744
------------
Alabama State , GO,
100,000 5.70%, due 12/01/2002 ...................... 102,297
------------
Alabama State Industrial Access Road & Bridge
Corp., GO,
100,000 5.25%, due 06/01/2003 ...................... 101,535
------------
Alabama State Mun. Elec. Auth. Power Supply Rev.,
340,000 5.75%, due 09/01/2001 ...................... 343,662
400,000 6.50%, due 09/01/2005, prerefunded 09/01/2001
at 101 ................................... 411,480
------------
755,142
------------
Alabama State Public School & College Auth. Rev.,
100,000 4.40%, due 12/01/2000 ...................... 99,994
250,000 4.50%, due 12/01/2001 ...................... 250,232
250,000 5.25%, due 11/01/2005 ...................... 256,945
305,000 5.00%, due 12/01/2005 ...................... 309,697
200,000 5.125%, due 11/01/2010 ..................... 203,062
300,000 5.00%, due 11/01/2012 ...................... 295,707
250,000 5.625%, due 07/01/2013 ..................... 258,438
600,000 5.125%, due 11/01/2013 ..................... 592,374
------------
2,266,449
------------
Alabama Water Pollution Control Rev.,
190,000 6.25%, due 08/15/2004 ...................... 200,731
------------
Anniston, AL, GO,
250,000 5.50%, due 01/01/2004 ...................... 256,712
------------
Anniston, AL, Regional Medical Center Board
Hospital Rev.,
15,000 7.375%, due 07/01/2006, ETM ................ 15,998
------------
Athens, AL, School Warrants,
335,000 5.05%, due 08/01/2015 ...................... 322,384
------------
Auburn University, Alabama, Rev.,
150,000 5.20%, due 06/01/2004 ...................... 152,949
325,000 5.25%, due 04/01/2005 ...................... 332,712
------------
485,661
------------
Baldwin Co., AL, GO,
200,000 5.85%, due 08/01/2003 ...................... 206,784
400,000 5.00%, due 02/01/2007 ...................... 405,176
200,000 4.55%, due 02/01/2009 ...................... 186,780
------------
798,740
------------
Baldwin Co., AL, Board of Education Rev.,
300,000 5.90%, due 12/01/2001 ...................... 301,833
------------
Birmingham, AL, GO,
100,000 5.80%, due 04/01/2002 ...................... 101,872
200,000 5.90%, due 04/01/2003 ...................... 206,258
500,000 6.60%, due 07/01/2012 ...................... 520,775
------------
828,905
------------
16
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
PAR VALUE OBLIGATION (GO) BONDS -- 91.1% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Birmingham, AL, Industrial Water Board Rev.,
$ 100,000 5.00%, due 03/01/2001 ...................... $ 100,250
100,000 6.00%, due 07/01/2007 ...................... 107,322
------------
207,572
------------
Birmingham, AL, Medical Clinic Board Rev.,
50,000 7.30%, due 07/01/2005, ETM ................. 53,296
------------
Birmingham, AL, Waterworks & Sewer Board Rev.,
50,000 5.90%, due 01/01/2003 ...................... 51,800
400,000 6.15%, due 01/01/2006 ...................... 415,600
------------
467,400
------------
Birmingham-Southern College, AL, Private
Education Bldg. Auth. Rev.,
500,000 5.10%, due 12/01/2012 ...................... 492,660
------------
DCH Health Care Auth. of Alabama Rev.,
55,000 5.00%, due 06/01/2004 ...................... 55,658
------------
Decatur, AL, GO,
300,000 5.00%, due 06/01/2009 ...................... 303,027
------------
Decatur, AL, Water Rev.,
100,000 5.00%, due 05/01/2014 ...................... 96,458
------------
Dothan, AL, GO,
500,000 5.50%, due 09/01/2014 ...................... 506,535
------------
Fairhope, AL, Public Improvements Warrants,
295,000 5.10%, due 06/01/2014 ...................... 288,171
------------
Fairhope, AL, Utility Rev.,
200,000 5.10%, due 12/01/2008 ...................... 201,704
------------
Florence, AL, School Warrants,
200,000 4.65%, due 12/01/2012 ...................... 188,126
400,000 5.75%, due 09/01/2015 ...................... 408,012
------------
596,138
------------
Greenville, AL, GO,
300,000 5.10%, due 12/01/2009 ...................... 304,587
------------
Hoover, AL, Board of Education Special Tax,
200,000 6.625%, due 02/01/2010, prerefunded
02/01/2001 at 102 ........................ 205,424
------------
Hoover, AL, Board of Education, GO,
400,000 6.00%, due 02/15/2006 ...................... 422,364
------------
Houston Co., AL, GO,
250,000 5.00%, due 07/01/2002 ...................... 251,945
300,000 5.60%, due 10/15/2014 ...................... 306,435
------------
558,380
------------
Huntsville, AL, GO,
100,000 5.20%, due 11/01/2000 ...................... 100,065
500,000 5.50%, due 11/01/2002 ...................... 509,840
100,000 5.90%, due 11/01/2005 ...................... 104,600
300,000 5.40%, due 02/01/2010 ...................... 306,528
250,000 5.25%, due 11/01/2011 ...................... 253,902
------------
1,274,93
------------
17
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
PAR VALUE OBLIGATION (GO) BONDS -- 91.1% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Huntsville, AL, Electric Systems Rev.,
$ 150,000 6.10%, due 12/01/2000 ...................... $ 150,416
150,000 5.00%, due 12/01/2003 ...................... 151,786
250,000 4.80%, due 12/01/2012 ...................... 239,132
------------
541,334
------------
Huntsville, AL, Water Systems Rev.,
150,000 5.15%, due 05/01/2004 ...................... 152,644
150,000 5.25%, due 05/01/2005 ...................... 152,888
200,000 4.70%, due 11/01/2013 ...................... 185,412
------------
490,944
------------
Jefferson Co., AL, GO,
150,000 5.55%, due 04/01/2002 ...................... 152,092
100,000 5.00%, due 04/01/2004 ...................... 100,991
------------
253,083
------------
Jefferson Co., AL, Board of Education Capital
Outlay Warrants,
300,000 5.70%, due 02/15/2011 ...................... 317,727
------------
Jefferson Co., AL, Sewer Rev.,
140,000 5.15%, due 09/01/2002 ...................... 141,730
50,000 5.50%, due 09/01/2003, ETM ................. 51,312
300,000 5.75%, due 09/01/2005 ...................... 311,946
------------
504,988
------------
Lee Co., AL, GO,
300,000 5.50%, due 02/01/2007 ...................... 312,003
------------
Madison Co., AL, Board of Education Capital Outlay
Tax Antic. Warrants,
175,000 5.20%, due 09/01/2004 ...................... 181,053
250,000 5.10%, due 09/01/2011 ...................... 250,250
------------
431,303
------------
Madison, AL, Warrants,
325,000 5.55%, due 04/01/2007 ...................... 339,219
200,000 4.40%, due 02/01/2011 ...................... 186,162
400,000 4.85%, due 02/01/2013 ...................... 380,756
------------
906,137
------------
Mobile Co., AL, Board of Education Capital
Outlay Warrants,
400,000 5.00%, due 03/01/2008 ...................... 403,576
------------
Mobile Co., AL, Gas Tax Antic. Warrants,
100,000 4.50%, due 02/01/2003 ...................... 99,797
------------
Mobile, AL, GO,
25,000 6.25%, due 08/01/2001 ...................... 25,383
25,000 6.30%, due 08/01/2001 ...................... 25,394
275,000 6.20%, due 02/15/2007, ETM ................. 294,984
180,000 5.75%, due 02/15/2016 ...................... 183,451
------------
529,212
------------
Mobile, AL, Water & Sewer Commissioners Rev.,
55,000 6.30%, due 01/01/2003 ...................... 56,965
------------
Montgomery Co., AL, GO,
100,000 5.20%, due 11/01/2006 ...................... 101,836
------------
Montgomery, AL, GO,
200,000 4.70%, due 05/01/2002 ...................... 200,508
500,000 5.10%, due 10/01/2008 ...................... 507,880
------------
708,388
------------
18
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
ALABAMA FIXED RATE REVENUE AND GENERAL
PAR VALUE OBLIGATION (GO) BONDS -- 91.1% (CONTINUED) VALUE
--------------------------------------------------------------------------------
Montgomery, AL, Waterworks & Sanitation Rev.,
$ 200,000 5.85%, due 03/01/2003 ...................... $ 205,752
400,000 6.15%, due 09/01/2006 ...................... 417,388
400,000 5.60%, due 09/01/2009 ...................... 416,968
------------
1,040,108
------------
Mountain Brook, AL, Board of Education Capital
Outlay Warrants,
405,000 4.80%, due 02/15/2011 ...................... 396,110
------------
Muscle Shoals, AL, GO,
400,000 5.60%, due 08/01/2010 ...................... 416,056
------------
Opelika, AL, GO,
100,000 4.60%, due 03/01/2003 ...................... 100,156
100,000 5.30%, due 07/01/2003 ...................... 101,966
------------
202,122
------------
Scottsboro, AL, Waterworks Sewer & Gas Rev.,
200,000 4.35%, due 08/01/2011 ...................... 184,412
------------
Shelby Co., AL, GO,
50,000 5.35%, due 08/01/2001 ...................... 50,389
------------
Shelby Co., AL, Hospital Board Rev.,
35,000 6.60%, due 02/01/2001, ETM ................. 35,249
25,000 6.60%, due 02/01/2002, ETM ................. 25,662
40,000 6.60%, due 02/01/2003, ETM ................. 41,752
------------
102,663
------------
Shelby Co., AL, Special Tax Warrants,
25,000 5.35%, due 02/01/2001 ...................... 25,079
------------
Tuscaloosa, AL, Board of Education Special
Tax Warrants,
75,000 5.70%, due 02/15/2005 ...................... 77,463
125,000 6.00%, due 02/15/2009 ...................... 129,242
300,000 4.85%, due 02/15/2013 ...................... 286,320
------------
493,025
------------
Tuscaloosa, AL, Board of Education, GO,
100,000 5.10%, due 02/01/2004 ...................... 101,587
300,000 4.625%, due 08/01/2008 ..................... 296,586
------------
398,173
------------
Tuscaloosa, AL, GO,
500,000 5.45%, due 01/01/2014 ...................... 505,435
------------
University of Alabama General Fee Series A Rev.,
50,000 5.00%, due 11/01/2000 ...................... 50,024
240,000 5.10%, due 10/01/2002 ...................... 242,686
400,000 5.25%, due 06/01/2010 ...................... 408,068
100,000 5.375%, due 06/01/2013 ..................... 100,836
------------
801,614
------------
Vestavia Hills, AL, Board of Education Capital
Outlay Rev.,
55,000 5.25%, due 02/01/2004 ...................... 56,091
------------
Vestavia Hills, AL, Warrants,
125,000 4.90%, due 04/01/2005 ...................... 126,003
------------
TOTAL ALABAMA FIXED RATE REVENUE AND GENERAL
OBLIGATION (GO) BONDS -- 91.1% (COST $23,461,444) $ 23,634,496
------------
19
<PAGE>
THE ALABAMA TAX FREE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES MONEY MARKETS -- 8.7% VALUE
--------------------------------------------------------------------------------
2,269,557 FIRSTAR TAX-FREE FUND (COST $2,269,557) ....... $ 2,269,557
------------
TOTAL INVESTMENTS AT VALUE -- 99.8%
(COST $25,731,001) .......................... $ 25,904,053
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% . 106,725
------------
NET ASSETS -- 100.0% .......................... $ 26,010,778
============
ETM - Escrowed to maturity.
See accompanying notes to financial statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (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.
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, 2000:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
GOVERNMENT GOVERNMENT ALABAMA
STREET STREET TAX FREE
EQUITY FUND BOND FUND BOND FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized appreciation ................ $ 59,982,307 $ 225,466 $ 326,279
Gross unrealized depreciation ................ (3,672,257) (1,352,494) (222,779)
------------ ------------ ------------
Net unrealized appreciation (depreciation) ... $ 56,310,050 $ (1,127,028) $ 103,500
============ ============ ============
Federal income tax cost ...................... $ 60,613,540 $ 49,438,058 $ 25,800,553
============ ============ ============
-------------------------------------------------------------------------------------------
</TABLE>
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for The Alabama Tax Free Bond Fund is due to
certain timing differences in the recognition of capital losses under income tax
regulations and generally accepted accounting principles.
As of March 31 , 2000, The Government Street Bond Fund and The Alabama Tax Free
Bond Fund had capital loss carryforwards for federal income tax purposes of
$760,308 and $176,717, respectively, which expire through the year 2008. In
addition, The Government Street Bond Fund had net realized capital losses of
$145,238 during the period from November 1, 1999 through March 31, 2000, which
are treated for federal income tax purposes as arising during the Fund's tax
year ending March 31, 2001. 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, 2000, cost of purchases and proceeds
from sales and maturities of investment securities, other than short-term
investments, amounted to $8,054,890 and $3,087,661, respectively, for The
Government Street Equity Fund, $2,977,602 and $826,367, respectively, for The
Government Street Bond Fund, and $2,424,917 and $685,000, 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 $4,310 of its investment advisory fees for the
Fund during the six months ended September 30, 2000.
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
Integrated Fund Services, Inc. (IFS), IFS provides administrative, pricing,
accounting, dividend disbursing, shareholder servicing and transfer agent
services for the Funds. For these services, IFS receives a monthly fee from The
Government Street Equity Fund at an annual rate of .18% of its average daily net
assets up to $25 million; .155% of the next $25 million of such assets; and .13%
of such net assets in excess of $50 million. From The Government Street Bond
Fund, IFS 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, IFS receives a monthly fee of .14% of its average daily net
assets up to $200 million and .09% 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 IFS 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 IFS.
23
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
24
