[GRAPHIC OMITTED: THE QUAKER FUNDS LOGO]
ANNUAL REPORT
---------------------
June 30, 2000
[GRAPHIC OMITTED: THE QUAKER FUNDS LOGO]
August 2000
Dear Shareholder:
We are pleased to provide this annual report for the Quaker Funds for the
twelve months July 1, 1999 to June 30, 2000. It provides information on each
of the Quaker Funds, including a complete list of portfolio holdings and
performance information. As well, we would like to take a moment to describe
some of the exciting changes since our last shareholder letter at the end of
1999.
The year 2000 has been an exciting and busy time for the Quaker Family.
During this time we have redoubled our commitment to the Financial Advisor
through several strategic actions. The first is our adding of Kevin J.
Mailey as a Principal of our organization. Kevin has over 25 years of very
high-level industry experience, and is particularly knowledgeable of the
broker/dealer and investment advisor communities. He served in senior sales
and executive positions with several large mutual fund and financial
service companies before joining Quaker. We are very excited to have Kevin
on board.
Another major event for us this past six months was the initialization of
our Class A, Class B, Class C, and Class I share classes. In creating these
share classes in their present structure, our funds and their managers are
now available in multiple ways to each type of financial intermediary. A
complete description of the share classes is available in the current
Quaker Funds prospectus, which you may obtain by calling us at
1-800-220-8888 or through our web site at www.quakerfunds.com.
In addition to the share class additions, we have expanded our offerings by
adding three new Quaker Funds to our mutual fund family. These new funds
were launched on July 3, 2000 and are:
Quaker Small-Cap Growth Fund managed by John Geewax of Geewax, Terker & Co.
Quaker High Yield Fund managed by Jeff Rollert of ALM Advisors, and
Quaker Government Money Market Fund managed by Jeff Rollert of ALM
Advisors.
John Geewax has been portfolio manager of our Quaker Core Equity Fund since
November 1998 and has produced favorable results for us since taking over
that fund. We are excited about expanding our relationship with John and
his firm through their management of our Quaker Small-Cap Growth Fund.
Jeff Rollert of ALM Advisors brings over 15 years experience in credit
analysis and portfolio management with a demonstrated portfolio management
track record of achieving higher returns with lower risk. In addition to
serving as advisor to the Quaker High Yield Fund and Quaker Government
Money Market Fund, early this year we retained Jeff as portfolio manager of
the Quaker Fixed Income Fund.
Below is a summary of each fund's performance over the period of this
report, with portfolio holdings and financial information following.
QUAKER CORE EQUITY FUND
For the 12 months covered by this report, the Quaker Core Equity Fund was
up 16.34%, versus up 7.25% for the S&P 500 Index. While under the
management of John Geewax of Geewax, Terker & Co. (since November 1998) the
fund is up an average annualized 37.68%, versus 22.27% for the Index. The
fund received several notable mentions in the financial press this year,
including being selected as a 5 Star fund by Mutual Funds Magazine in June.
This rating is awarded to the top 20% of funds based on their proprietary
"risk-adjusted" return calculations.
QUAKER AGGRESSIVE GROWTH FUND
For the 12 months covered by this report, the Quaker Aggressive Growth Fund
was up 73.60%, versus 7.25% for the S&P 500 Index. This noteworthy
performance has created significant publicity for the fund, including being
named as Mutual Funds Magazine's "Undiscovered Fund of the Month" in July
this year. Much of the additional publicity centered on the fund's lower
volatility track record. Since inception, the fund is up an annualized
43.90% versus 21.70% for the Index. Timely profit taking late in the first
quarter this year by the fund's manager -- Manu Daftary -- helped preserve
much of the fund's earlier gains.
QUAKER LARGE-CAP VALUE FUND
For the 12 months covered by this report, the Quaker Large-Cap Value Fund
was down 15.69% versus up 7.25% for the S&P 500 Index. Over this period,
the fund's performance was hurt by the market's lengthy preference for
growth stocks -- while the fund targeted large company value stocks. During
the second quarter, the management of Compu-Val Investments, Inc. the
fund's investment advisor gave notice of their desire to resign as advisor
to the fund. We at Quaker Funds are presently in negotiations with other
advisors to succeed Compu-Val upon their final resignation.
QUAKER MID-CAP VALUE FUND
For the 12 months covered by this report, the Quaker Mid-Cap Value Fund was
down 2.27% versus up 0.26% for the S&P Barra Mid-Cap Value Index, and
15.62% for the S&P Mid-Cap 400. This fund was also hurt by the market's
continued lack of interest in value oriented stocks. The fund compares
favorably to the S&P Barra Mid-Cap Value Index, but lags the broader S&P
Mid-Cap 400, as the latter has been lifted by its growth stock component.
QUAKER SMALL-CAP VALUE FUND
For the 12 months covered by this report, the Quaker Small-Cap Fund was up
1.38%, verses down 0.94% for the Russell 2000 Value, and up 13.01% for the
broader Russell 2000 Index. Since inception, the fund is up an annualized
12.02% versus 8.04 % for the Russell 2000 Value, and 12.09% for the
Russell 2000 Index. The Quaker Small-Cap Value Fund continues to do very
well versus its peers, and according to Morningstar is in the top 22 % of
all Small-Cap Value Funds for the past 3 years ending June 30, 2000. As
well, attention to low trading costs and other portfolio management
efficiencies by the fund's manager -- Aronson + Partners -- has allowed this
fund to compare favorably to the growth stock propelled Russell 2000 Index
for the life of the fund.
QUAKER FIXED INCOME FUND
For the 12 months covered by this report, the Quaker Fixed Income Fund was
up 2.13% versus 4.67% for the Salomon Broad Investment Grade Index. The
second quarter of 2000 was the first full quarter of management by the
funds new advisor -- Jeff Rollert of ALM Advisors. For the second quarter the
fund was up 1.87% versus 1.69% for the Index. We are very excited about the
addition of ALM Advisors to our management team. We look forward to having
them as the manager of this high quality, mid-duration fixed income fund.
As always, thank you for your investments in the Quaker Funds.
Sincerely,
/S/ DAVID C. DAMERON
David C. Dameron
President
This report is intended for the funds' shareholders. It may not be
distributed to prospective investors unless it is proceeded or accompanied
by the current prospectus.
QUAKER CORE EQUITY FUND
Performance Update--$10,000 Investment
For the period from November 25, 1996 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker Quaker
Core Equity Core Equity S&P 500
Fund Fund Total Return
No-Load Class Class C Index
11/25/96 $10,000 $10,000
12/31/96 $9,800 $9,806
6/30/97 $11,650 $11,827
12/31/97 $12,704 $13,078
6/30/98 $14,470 $15,394
12/31/98 $16,834 $16,815
6/30/99 $18,545 $18,897
12/31/99 $21,989 $20,353
6/29/00 $10,000
6/30/00 $21,575 $10,273 $20,267
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
No-Load Class 23.83%
Class C 2.73%*
---------------------------
* not annualized
This graph depicts the performance of the Quaker Core Equity Fund versus
the S&P 500 Total Return Index. It is important to note that the Quaker
Core Equity Fund is a professionally managed mutual fund while the indexes
are not available for investment and are unmanaged. The comparison is shown
for illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at November 25,
1996. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund's No-Load Class would have grown to
$21,575 -- total annualized investment return of 23.83% since November 25,
1996. At June 30, 2000, the Fund's Class C would have grown to $10,273, a
total return of 2.73% since June 29, 2000.
(bullet) At June 30, 2000, a similar investment in the S&P 500 Total Return
Index would have grown to $20,267 -- total annualized investment return of
21.70% since November 25, 1996. An investment in the S&P 500 Total Return
on June 29, 2000 would have grown to $10,085 -- a total return of 0.85%
since June 30, 2000.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
QUAKER AGGRESSIVE GROWTH FUND
Performance Update--$10,000 Investment
For the period from November 25, 1996 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker S&P 500
Aggressive Total Return
Growth Fund Index
11/25/96 $10,000 $10,000
12/31/96 $10,343 $9,806
6/30/97 $11,268 $11,827
12/31/97 $12,445 $13,078
6/30/98 $14,273 $15,394
12/31/98 $16,198 $16,815
6/30/99 $21,330 $18,897
12/31/99 $31,909 $20,353
6/30/00 $37,047 $20,267
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
43.92%
---------------------------
This graph depicts the performance of the Quaker Aggressive Growth Fund
versus the S&P 500 Total Return Index. It is important to note that the
Quaker Aggressive Growth Fund is a professionally managed mutual fund while
the indexes are not available for investment and are unmanaged. The
comparison is shown for illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at November 25,
1996. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund would have grown to $37,047 -- total
annualized investment return of 43.92% since November 25, 1996.
(bullet) At June 30, 2000, a similar investment in the S&P 500 Total Return
Index would have grown to $20,267 -- total annualized investment return of
21.70% since November 25, 1996.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
QUAKER LARGE-CAP VALUE FUND
Performance Update--$10,000 Investment
For the period from November 25, 1996 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker S&P 500
Large-Cap Total Return
Value Fund Index
11/25/96 $10,000 $10,000
12/31/96 $10,157 $9,806
6/30/97 $11,904 $11,827
12/31/97 $13,227 $13,078
6/30/98 $15,276 $15,394
12/31/98 $16,112 $16,815
6/30/99 $18,185 $18,897
12/31/99 $16,793 $20,353
6/30/00 $15,333 $20,267
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
12.62%
---------------------------
This graph depicts the performance of the Quaker Large-Cap Value Fund
versus the S&P 500 Total Return Index. It is important to note that the
Quaker Large-Cap Value Fund is a professionally managed mutual fund while
the indexes are not available for investment and are unmanaged. The
comparison is shown for illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at November 25,
1996. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund would have grown to $15,333 -- total
annualized investment return of 12.62% since November 25, 1996.
(bullet) At June 30, 2000, a similar investment in the S&P 500 Total Return
Index would have grown to $20,267 -- total annualized investment return of
21.70% since November 25, 1996.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
QUAKER MID-CAP VALUE FUND
Performance Update--$10,000 Investment
For the period from January 6, 1998 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker
Mid-Cap S&P 400
Value Fund Mid-Cap Index
12/31/97 $10,000 $10,000
6/30/98 $10,920 $10,801
12/31/98 $10,784 $11,768
6/30/99 $11,213 $12,500
12/31/99 $10,489 $13,339
6/30/00 $10,958 $14,452
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
3.73%
---------------------------
This graph depicts the performance of the Quaker Mid-Cap Value Fund versus
the S&P 400 Mid-Cap Index. It is important to note that the Quaker Mid-Cap
Value Fund is a professionally managed mutual fund while the indexes are
not available for investment and are unmanaged. The comparison is shown for
illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at January 6,
1998. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund would have grown to $10,958 -- total
annualized investment return of 3.73% since January 6, 1998.
(bullet) At June 30, 2000, a similar investment in the S&P 400 Mid-Cap
Index would have grown to $14,452 -- total annualized investment return of
15.88% since January 6, 1998.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
QUAKER SMALL-CAP VALUE FUND
Performance Update--$10,000 Investment
For the period from November 25, 1996 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker
Small-Cap Russell 2000
Value Fund Index
11/25/96 $10,000 $10,000
12/31/96 $9,957 $10,383
6/30/97 $12,035 $11,439
12/31/97 $14,087 $12,691
6/30/98 $15,289 $13,333
12/31/98 $14,813 $12,300
6/30/99 $14,836 $13,341
12/31/99 $15,005 $14,713
6/30/00 $15,041 $15,077
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
12.02%
---------------------------
This graph depicts the performance of the Quaker Small-Cap Value Fund
versus the Russell 2000 Index. It is important to note that the Quaker
Small-Cap Value Fund is a professionally managed mutual fund while the
indexes are not available for investment and are unmanaged. The comparison
is shown for illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at November 25,
1996. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund would have grown to $15,041 -- total
annualized investment return of 12.02% since November 25, 1996.
(bullet) At June 30, 2000, a similar investment in the Russell 2000 Index
would have grown to $15,077 -- total annualized investment return of 12.09%
since November 25, 1996.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
QUAKER FIXED INCOME FUND
Performance Update--$10,000 Investment
For the period from November 25, 1996 (commencement of operations) to
June 30, 2000
[GRAPHIC OMITTED: WORM CHART: PERFORMANCE UPDATE--$10,000 INVESTMENT]
Quaker Salomon Brothers
Fixed Income Broad Investment-
Fund Grade Index
11/25/96 $10,000 $10,000
12/31/96 $9,963 $9,953
6/30/97 $10,157 $10,258
12/31/97 $10,771 $10,912
6/30/98 $11,169 $11,346
12/31/98 $11,688 $11,864
6/30/99 $11,375 $11,680
12/31/99 $11,338 $11,764
6/30/00 $11,617 $12,225
Annualized Total Return
---------------------------
Commencement of operations
through 6/30/00
---------------------------
4.25%
---------------------------
This graph depicts the performance of the Quaker Fixed Income Fund versus
the Salomon Brothers Broad Investment-Grade Index. It is important to note
that the Quaker Fixed Income Fund is a professionally managed mutual fund
while the indexes are not available for investment and are unmanaged. The
comparison is shown for illustrative purposes only.
(bullet) The graph assumes an initial $10,000 investment at November 25,
1996. All dividends and distributions are reinvested.
(bullet) At June 30, 2000, the Fund would have grown to $11,617 -- total
annualized investment return of 4.25% since November 25, 1996.
(bullet) At June 30, 2000, a similar investment in the Salomon Brothers
Broad Investment-Grade Index would have grown to $12,225 -- total
annualized investment return of 5.74% since November 25, 1996.
(bullet) Past performance is not a guarantee of future performance. A
mutual fund's share price and investment return will vary with market
conditions, and the principal value of shares, when redeemed, may be worth
more or less than the original cost.
<TABLE>
<CAPTION>
QUAKER CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Number Market
of Shares Value
------------ ------------
<S> <C> <C>
COMMON STOCK -- 99.23%
Advertising -- 0.41%
Interpublic Group of Cos., Inc. 2,200 $94,600
TMP Worldwide, Inc.* 400 29,525
------------
124,125
------------
Broadcasting -- 1.32%
Comcast Corp. Cl A* 3,510 142,155
Time Warner, Inc. 3,400 258,400
------------
400,555
------------
Commercial Services -- 0.26%
Concord EFS, Inc.* 2,000 52,000
Convergys Corp.* 500 25,938
------------
77,938
------------
Computer Hardware -- 13.00%
Dell Computer Corp.* 8,950 441,347
Hewlett-Packard Co. 2,170 270,979
Cisco Systems, Inc.* 35,800 2,275,538
EMC Corp.* 6,300 484,706
Sun Microsystems, Inc.* 5,100 463,781
------------
3,936,351
------------
Computer Services & Software -- 13.86%
3Com Corp.* 700 40,337
Aether Systems, Inc.* 30 6,150
BEA Systems, Inc.* 2,600 128,537
Computer Associates International, Inc. 2,100 107,494
Comverse Technology, Inc.* 1,200 111,600
i2 Technologies, Inc.* 600 62,559
Inktomi Corp.* 800 94,600
Intuit, Inc.* 1,000 41,375
Kana Communications, Inc.* 50 3,094
Marchfirst, Inc.* 519 9,472
Mercury Interactive Corp.* 3,000 290,250
Micromuse, Inc.* 850 140,662
Microsoft Corp.* 17,000 1,360,000
Network Appliance, Inc.* 2,600 209,300
Oracle Corp. * 11,900 1,000,344
PE Corp. - PE Biosystems Group 2,500 164,688
Quest Software, Inc.* 130 7,199
Safeguard Scientifics, Inc.* 600 19,237
Scient Corp.* 200 8,825
SEI Corp. 600 23,888
Silicon Storage Technology, Inc.* 130 11,481
Symantec Corp.* 400 21,575
Veritas Software Corp.* 2,950 333,396
------------
4,196,063
------------
Computer Systems -- 0.40%
Brocade Communications Systems, Inc.* 220 40,367
Foundry Networks, Inc.* 240 26,520
Redback Networks, Inc.* 300 53,400
------------
120,287
------------
Diversified Conglomerates -- 9.51%
Corning, Inc. 1,600 431,800
General Electric Company 46,200 2,448,600
------------
2,880,400
------------
Electronics & Electrical Equipment -- 20.33%
Agilent Technologies, Inc.* 1,847 136,216
Altera Corp.* 700 71,356
Analog Devices, Inc.* 3,000 228,000
Applied Micro Circuits Corp.* 2,400 237,000
Broadcom Corp.Cl A* 1,100 240,831
Fairchild Semiconductor Int'l Cl A* 70 2,835
Globespan, Inc.* 150 18,312
Intel Corp. 16,600 2,219,212
KLA-Tencor Corp.* 800 46,850
Linear Technology Corp. 2,200 140,662
LSI Logic Corp.* 1,200 64,950
Maxim Integrated Products, Inc.* 2,300 156,256
Microchip Technology, Inc.* 600 34,959
Micron Technology, Inc.* 400 35,225
Motorola, Inc. 2,100 61,031
Novellus Systems, Inc.* 1,400 79,187
PMC Sierra, Inc.* 2,200 390,913
QLogic Corp.* 2,100 138,731
RF Micro Devices, Inc.* 500 43,812
SDL, Inc.* 1,100 313,706
Texas Instruments, Inc. 7,600 522,025
Uniphase Corp.* 5,570 667,704
Vitesse Semiconductor Corp.* 1,480 108,873
Xilinx, Inc.* 2,400 198,150
------------
6,156,796
------------
Entertainment & Leisure -- 0.66%
The Walt Disney Company 1,400 54,337
Viacom, Inc. Cl B* 2,120 144,558
------------
198,895
------------
Financial Services -- 1.84%
American Express Company 3,600 187,650
Citigroup, Inc. 2,250 135,562
Paychex, Inc. 2,700 113,400
Schwab (Charles) Corp. 3,600 121,050
------------
557,662
------------
Food & Beverage -- 1.43%
Keebler Foods Co.* 500 18,563
Pepsico, Inc. 5,900 262,181
Sysco Corp. 3,600 151,650
------------
432,394
------------
Healthcare -- 0.47%
Affymetrix, Inc.* 300 49,538
Andrx Corp.* 600 38,353
Celgene Corp.* 100 5,887
Ivax Corp.* 1,200 49,800
------------
143,578
------------
Internet Services & Software -- 7.08%
Agile Software Corporation* 200 14,137
Akamai Technologies, Inc.* 270 32,058
America Online, Inc.* 12,200 643,550
Art Technology Group, Inc.* 120 12,112
BroadVision, Inc.* 5,100 259,144
Cmgi, Inc.* 1,400 64,138
E. Piphany, Inc.* 30 3,216
Exodus Communications, Inc.* 2,800 128,975
Go2net, Inc.* 2,900 145,906
Infospace, Inc.* 900 49,725
Internap Network, Inc.* 200 8,303
Juniper Networks, Inc.* 1,060 154,296
Lycos, Inc.* 600 32,400
Phone.com, Inc.* 350 22,794
Tibco Software Inc., Inc.* 110 11,796
VeriSign, Inc.* 915 161,498
VerticalNet, Inc.* 600 22,162
Vignette Corp.* 1,050 54,616
Yahoo!, Inc 2,600 322,075
------------
2,142,901
------------
Manufacturing -- 0.50%
Harley-Davidson, Inc. 2,000 77,000
Millipore Corp. 1,000 75,375
------------
152,375
------------
Miscellaneous Manufacturing -- 2.07%
Applied Materials, Inc.* 6,900 625,313
------------
Oil & Gas -- 0.02%
BJ Services Company* 100 6,250
------------
Pharmaceuticals -- 11.00%
Allergan, Inc. 1,200 89,400
Amgen, Inc.* 3,600 252,900
Bristol-Myers Squibb Co. 2,500 145,625
Forest Laboratories, Inc.* 1,000 101,000
Human Genome Sciences, Inc.* 600 80,025
Johnson & Johnson 2,800 285,250
Medarex, Inc.* 180 15,210
Medtronic, Inc. 1,600 79,700
Merck & Company, Inc. 8,275 634,072
Millennium Pharmaceuticals, Inc.* 2,200 246,125
Pfizer, Inc. 29,175 1,400,400
------------
3,329,707
------------
Pipelines -- 0.28%
Dynegy, Inc. 207 14,141
Enron Corp. 1,100 70,950
------------
85,091
------------
Retail -- 7.84%
Bed Bath & Beyond, Inc.* 1,500 54,375
BJ's Wholesale Club, Inc.* 2,100 69,300
Circuit City Stores, Inc. 1,000 33,188
Costco Wholesale Corp.* 840 27,720
CVS Corp. 2,500 100,000
Dollar Tree Stores, Inc.* 1,200 47,475
Family Dollar Stores, Inc. 600 11,737
Home Depot, Inc. 14,500 724,094
Kohl's Corp.* 1,800 100,125
Lowe's Cos., Inc. 2,200 90,337
Radioshack Corp. 1,400 66,325
Staples, Inc.* 1,800 27,675
Tiffany & Co. 200 13,500
Wal-Mart Stores, Inc. 17,500 1,008,437
------------
2,374,288
------------
Telecommunications -- 6.90%
ADC Telecommunications, Inc.* 3,400 285,175
Advanced Fibre Communications, Inc.* 1,200 54,375
Allegiance Telecom, Inc.* 1,200 76,800
AT&T Corp. 5,400 130,950
AT&T Wireless Group* 120 3,240
Avanex Corp.* 70 6,685
Digital Lightwave, Inc.* 70 7,035
Ditech Communication Corp.* 130 12,293
Finisar Corporation* 320 8,380
Level 3 Communication, Inc.* 1,750 154,000
Metromedia Fiber Network, Inc.* 2,000 79,375
Nextel Communications, Inc. Cl A* 2,800 171,325
Nortel Networks Corp. 3,600 245,700
Qualcomm, Inc.* 3,900 234,000
SBC Communications, Inc. 1,990 86,067
Sycamore Networks, Inc.* 140 15,453
Voicestream Wireless Corp.* 700 81,408
Western Wireless Corp. Cl A* 400 21,800
Williams Communications Group, Inc.* 90 2,987
Worldcom, Inc.* 9,020 413,793
------------
2,090,841
------------
Transportation Services -- 0.05%
United Parcel Service, Inc. Cl B 240 14,160
------------
Total Common Stock (Cost $22,687,232) 30,045,970
------------
MISCELLANEOUS INVESTMENTS -- 0.43%
Standard & Poor's 500 Depository Receipts 900 130,753
------------
Total Miscellaneous Investments (Cost $130,591) 130,753
------------
INVESTMENT COMPANIES -- 0.35%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 105,772 105,772
------------
Total Investment Companies (Cost $105,772) 105,772
------------
Total Value of Investments (Cost $22,923,595)(100.01%) $30,282,495
Other Assets Less Liabilities, Net (-0.01%) (1,880)
------------
Net Assets (100.00%) $30,280,615
============
* Non-income producing investment
Cost for federal income tax at June 30, 2000 was $22,923,595 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $8,602,939
Gross unrealized depreciation (1,244,039)
------------
Net unrealized appreciation $7,358,900
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Number Market
of Shares Value
------------ ------------
<S> <C> <C>
COMMON STOCK -- 28.60%
Apparel -- 0.03%
Tommy Hilfiger Corp.* 800 $6,000
------------
Banks -- 0.65%
Wells Fargo & Co. 3,100 120,125
------------
Computer Hardware -- 2.27%
Coherent, Inc.* 2,400 201,300
Sun Microsystems, Inc.* 2,400 218,250
------------
419,550
------------
Computer Services & Software -- 4.02%
Adobe Systems, Inc. 1,300 169,000
Check Point Software Technologies Ltd.* 1,300 275,275
EMC Corp.* 2,000 153,875
M-Systems Flash Disk Pioneers Ltd.* 900 70,087
Rational Software Corp.* 800 74,350
------------
742,587
------------
Conglomerates -- 4.24%
Corning, Inc. 2,900 782,637
------------
Electronics & Electrical Equipment -- 4.02%
Intel Corp. 2,700 360,956
Micron Technology, Inc.* 700 61,644
Mips Technologies, Inc. Cl B* 346 13,321
Netro Corporation* 600 34,425
SDL, Inc.* 600 171,112
Texas Instruments, Inc. 600 41,213
Zoran Corp.* 900 59,344
------------
742,015
------------
Financial Services -- 0.54%
B2B Internet Holders Trust 600 24,713
Goldman Sachs Group (The), Inc. 200 18,975
Lehman Brothers Holdings, Inc. 600 56,738
------------
100,426
------------
Food & Beverages -- 0.77%
Nabisco Group Holdings Corp. 5,500 142,656
------------
Healthcare Services -- 0.61%
HCA-The Healthcare Company 3,700 112,387
------------
Internet Servces & Software -- 0.64%
Mail.Com, Inc.* 1,200 6,825
Phone.com, Inc.* 1,700 110,712
------------
117,537
------------
Machinery, General Industrial -- 0.88%
Trikon Technologies, Inc.* 8,550 162,450
------------
Medical Products -- 0.73%
Pfizer, Inc. 2,800 134,400
------------
Miscellaneous Manufacturing -- 0.23%
Energizer Holdings, Inc.* 2,300 41,975
------------
Oil & Gas -- 1.08%
Burlington Resources, Inc. 2,900 110,925
R & B Falcon Corp.* 1,900 44,769
Unocal Corp. 1,300 43,063
------------
198,757
------------
Pharmaceutical -- 0.79%
Bristol-Myers Squibb Co. 2,500 145,625
------------
Retail -- 0.50%
Cypress Semiconductor Corp.* 2,200 92,950
------------
Telecommunications -- 6.55%
Avanex Corp.* 600 57,300
Dynatech Corp.* 2,861 51,856
Ericsson (L. M.) Telephone Co. ADR 7,700 154,000
Harris Corp. 1,600 52,400
Nortel Networks 7,700 525,525
Qwest Communications International, Inc.* 1,200 59,625
Sycamore Networks, Inc.* 2,800 309,050
------------
1,209,756
------------
Trucking & Leasing -- 0.05%
Ryder Systems, Inc. 500 9,469
------------
Total Common Stock (Cost $5,033,173) 5,281,302
------------
INVESTMENT COMPANIES -- 67.76%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 12,510,109 12,510,109
------------
Total Investment Companies (Cost $12,510,109) 12,510,109
------------
Total Value of Investments (Cost $17,543,282)(96.36%) $17,791,411
Securities Sold Short -- (Proceeds $145,630)(-0.68%) (125,319)
Other Assets Less Liabilities, Net (4.32%) 797,384
------------
Net Assets (100.00%) $18,463,476
============
Securities Sold Short
-------------------------
Number Market
of Shares Value
------------ ------------
COMMON STOCK
Cummins Engine Company* 3,600 $98,100
Factset Research Systems, Inc.* 700 19,775
Ultramar Diamond Shamrock Corp.* 300 7,444
------------
Total (Proceeds $145,630) $125,319
------------
* Non-income producing investment
ADR - American Depository Receipt
Cost for federal income tax at June 30, 2000 was $17,397,652 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $385,656
Gross unrealized depreciation (117,216)
------------
Net unrealized appreciation $268,440
============
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER LARGE-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Number Market
of Shares Value
------------ ------------
<S> <C> <C>
COMMON STOCK -- 99.22%
Aerospace & Defense -- 2.11%
General Dynamics Corp. 2,500 $130,625
------------
Banks -- 17.98%
Bank of America Corp. 6,400 275,200
Bank of New York Co., Inc. 6,150 285,975
Chase Manhattan Corp. 5,100 234,919
Fleet Boston Financial Corp. 6,698 227,732
Northern Trust Corp. 1,400 91,087
------------
1,114,913
------------
Chemicals -- 2.08%
du Pont, (E.I.) de Nemours & Co. 2,947 128,931
------------
Commercial Services -- 3.15%
Cendant Corp.* 13,940 195,160
------------
Computer Hardware -- 7.83%
Compaq Computer Corp. 8,000 204,500
Honeywell International, Inc. 4,925 165,911
International Business Machines, Inc. 1,050 115,041
------------
485,452
------------
Computer Services & Software -- 1.65%
Computer Associates International, Inc. 2,000 102,375
------------
Consumer Products -- 3.98%
Kimberly-Clark Corp. 4,300 246,712
------------
Financial Services -- 2.91%
Citigroup, Inc. 3,000 180,750
------------
Food & Beverage -- 5.30%
PepsiCo, Inc. 7,400 328,837
------------
Forest & Paper Products -- 2.08%
WeyerHaeuser Co. 3,000 129,000
------------
Industrial -- 2.26%
Rockwell International Corp. 4,450 140,175
------------
Insurance -- 1.69%
Allstate Corp. 4,700 104,575
------------
Internet Services & Software -- 1.28%
America Online, Inc.* 1,500 79,125
------------
Medical Products -- 1.11%
Merck & Co. 900 68,962
------------
Oil & Gas -- 12.94%
Conoco, Inc. Cl B 9,728 238,944
Exxon Mobil Corp. 2,368 185,888
Halliburton Co. 5,300 250,094
Texaco, Inc. 2,400 127,800
------------
802,726
------------
Pharmaceuticals -- 6.91%
Bristol-Myers Squibb Co. 3,200 186,400
Schering-Plough Corp. 4,800 242,400
------------
428,800
------------
Pipelines -- 4.43%
Enron Corp., 1,800 116,100
Williams Cos., Inc. 3,800 158,413
------------
274,513
------------
Retail -- 3.71%
Lowe's Cos., Inc. 5,600 229,950
------------
Telecommunications -- 13.86%
SBC Communications, Inc. 1,250 54,063
GTE Corp. 2,500 155,625
Lucent Technologies, Inc. 1,000 59,250
Nextel Communications Cl A* 1,000 61,187
Nortel Networks 6,000 409,500
Sprint Corp. 2,350 119,850
------------
859,475
------------
Waste Management -- 1.96%
Waste Management Services, Inc. 6,400 121,600
------------
Total Common Stock (Cost $6,373,965) 6,152,656
------------
INVESTMENT COMPANIES -- 0.06%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 3,892 3,892
------------
Total Investment Companies (Cost $3,892) 3,892
------------
Total Value of Investments (Cost $6,377,857)(99.28%) $6,156,548
Other Assets Less Liabilities, Net (0.72%) 44,521
------------
Net Assets (100.00%) $6,201,069
============
* Non-income producing investment
Cost for federal income tax at June 30, 2000 was $6,377,857 and net
unrealized depreciation consisted of:
Gross unrealized appreciation $626,147
Gross unrealized depreciation (847,456)
------------
Net unrealized depreciation $(221,309)
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER MID-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Number Market
of Shares Value
------------ ------------
<S> <C> <C>
COMMON STOCK -- 94.23%
Advertising -- 2.79%
Telespectrum Worldwide, Inc.* 51,400 $234,513
------------
Banks -- 13.13%
City National Corp. 12,500 443,750
Hibernia Corp. Cl A 24,300 264,262
Roslyn Bancorp, Inc. 23,700 393,643
------------
1,101,655
------------
Building Maintenance & Service -- 3.21%
Ecolab, Inc. 6,900 269,531
------------
Computer Software & Services -- 10.23%
Ceridian Corp.* 2,000 48,125
Daisytek International Corp.* 20,500 193,469
Network Associates, Inc.* 4,000 81,500
Reynolds & Reynolds Co. Cl A 18,100 330,325
Symantec Corp.* 3,800 204,962
------------
858,381
------------
Computer Systems -- 2.07%
Brocade Communications Systems, Inc.* 100 18,348
Synopsys, Inc.* 4,500 155,531
------------
173,879
------------
Consumer Products -- 2.55%
Avon Products, Inc. 4,800 213,600
------------
Electronics & Electrical Equipment -- 10.88%
Tektronix, Inc.* 5,400 399,600
Thomas & Betts Corp. 2,500 47,812
Varian Semiconductor Equipment Associates, Inc.* 3,000 188,438
Varian, Inc.* 6,000 276,750
------------
912,600
------------
Engineering & Construction -- 2.34%
Jacobs Engineering Group, Inc.* 6,000 196,125
------------
Entertainment & Leisure -- 0.55%
Royal Caribbean Cruises, Ltd. 2,500 46,250
------------
Forest & Paper Products -- 1.62%
Willamette Ind., Inc. 5,000 136,250
------------
Healthcare -- 1.62%
Healthsouth Corp.* 18,900 135,844
------------
Insurance -- 2.76%
Protective Life Corp. 8,700 231,637
------------
Medical Products -- 3.15%
Becton, Dickinson & Company 9,200 263,925
------------
Miscellaneous Manufacturing -- 4.25%
Crane Co. 10,500 255,281
Pall Corp. 5,500 101,750
------------
357,031
------------
Office Equipment -- 2.00%
Avery Dennison Corp. 2,500 167,813
------------
Oil & Gas -- 20.82%
Amerada Hess Corp. 4,100 253,175
Apache Corp. 3,200 188,200
Baker Hughes, Inc. 1,300 41,600
Coastal Corp. (The) 7,100 432,213
ENSCO International, Inc. 6,200 222,038
Newfield Exploration Company* 9,300 363,863
Ocean Energy, Inc.* 17,344 246,068
------------
1,747,157
------------
Pipelines -- 4.34%
Questar Corp. 18,800 364,250
------------
Retail -- 5.92%
BJ's Wholesale Club, Inc.* 10,900 359,700
Kmart Corp.* 13,000 88,562
Officemax, Inc.* 9,700 48,500
------------
496,762
------------
Total Common Stock (Cost $7,271,258) 7,907,203
------------
INVESTMENT COMPANIES -- 7.19%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 603,319 603,319
------------
Total Investment Companies (Cost $603,319) 603,319
------------
Total Value of Investments (Cost $7,874,577)(101.42%) $8,510,522
Other Assets Less Liabilities, Net (-1.42%) (119,173)
------------
Net Assets (100.00%) $8,391,349
============
* Non-income producing investment
Cost for federal income tax at June 30, 2000 was $7,874,577 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $1,778,497
Gross unrealized depreciation (1,142,552)
------------
Net unrealized appreciation $635,945
============
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Number Market
of Shares Value
------------ ------------
<S> <C> <C>
COMMON STOCK -- 97.16%
Airlines -- 1.55%
KLM Royal Dutch Air Lines NV - ADR 2,400 $63,750
UAL Corp. 1,900 110,556
------------
174,306
------------
Apparel -- 2.73%
Hot Topic, Inc.* 2,800 89,600
Kellywood Co. 2,500 52,812
Oakley, Inc.* 8,100 93,150
Timberland Co. Cl A* 1,000 70,812
------------
306,374
------------
Appliances -- 0.98%
Salton, Inc.* 3,000 110,625
------------
Auto Parts & Equipment -- 0.69%
Dura Automotive Systems, Inc.* 3,300 35,681
Lear Corp.* 2,100 42,000
------------
77,681
------------
Banks -- 4.67%
Banco Latino- Americano De Exporta 3,800 105,212
Bank United Corp. Cl A 3,100 109,081
Downey Financial Corp. 2,900 84,100
Espirito Santo Fnl ADR 3,800 68,400
First Federal Financial Corp.* 5,800 81,925
Independence Community Bank Corp. 5,700 75,525
------------
524,243
------------
Broadcasting -- 1.16%
4kids Entertainment, Inc.* 1,900 49,519
General Cable Corp. 9,900 80,437
------------
129,956
------------
Business Services -- 3.52%
Bowne & Co., Inc. 4,400 44,275
Deluxe Corp. 3,800 89,538
Imation Corp.* 3,300 96,938
Kelly Services, Inc. Cl A 800 18,500
Robert Half Int'l, Inc.* 1,800 51,300
SEI Investments Co. 1,800 71,663
Volt Information Sciences, Inc.* 700 23,056
------------
395,270
------------
Chemicals -- 1.44%
Albemarle Corp. 4,300 84,925
W.R. Grace & Co.* 6,300 76,387
------------
161,312
------------
Commercial Services -- 0.40%
Nova Corp.* 1,600 44,700
------------
Components -- 0.80%
Johnson Controls, Inc. 900 46,181
Silicon Valley Group, Inc.* 1,700 43,987
------------
90,168
------------
Computer Services & Software -- 6.20%
American Management Systems, Inc.* 1,100 36,111
Anixter International, Inc.* 3,000 79,500
Autodesk, Inc. 1,200 41,625
Black Box Corp.* 900 71,255
CDW Computer Center, Inc.* 1,500 93,750
Fair Issac & Co., Inc. 1,900 83,600
Harman International Industries, Inc. 1,700 103,700
In Focus Systems, Inc. 1,400 45,063
Iomega Corporation 12,300 49,200
Mentor Graphics Corp.* 2,300 45,712
Pomeroy Computer Resources, Inc.* 3,100 45,725
------------
695,241
------------
Consulting Services -- 0.55%
Remedy Corp.* 1,100 61,325
------------
Consumer Products -- 0.49%
Universal Corp. 2,600 54,925
------------
Distribution Wholesale -- 1.51%
Brightpoint, Inc.* 3,200 27,700
Hughes Supply, Inc. 3,900 77,025
United Stationers, Inc.* 2,000 64,750
------------
169,475
------------
Diversified Conglomerates -- 1.54%
Chemed Corp. 3,100 87,381
U.S. Industries, Inc. 7,000 84,875
------------
172,256
------------
Education -- 0.40%
Apollo Group, Inc.* 1,600 44,800
------------
Electronics & Electrical Equipment -- 7.59%
Arrow Electronics, Inc.* 2,700 83,700
Avnet, Inc. 600 35,550
AVX Corp. 2,400 55,050
Cohu, Inc. 1,700 45,847
Credence Systems Corp.* 2,000 110,375
CTS Corp. 1,400 63,000
General Semi-Conductors, Inc.* 4,200 61,950
Kemet Corp.* 1,400 35,087
Kent Electronics Corp.* 1,700 50,681
Novellus Systems, Inc.* 700 39,594
Pioneer Standard Electronics, Inc. 5,600 82,600
Sensormatic Electronics Corp.* 2,300 36,369
Technitrol, Inc. 1,100 106,562
Vishay Intertechnology, Inc.* 1,200 45,525
------------
851,890
------------
Engineering & Construction -- 8.21%
Centex Construction Products, Inc. 2,600 58,987
Del Webb Corp.* 3,000 45,937
IT Group, Inc.* 9,100 44,363
Jacobs Engineering Group, Inc.* 1,900 62,106
Kaufman And Broad Home Corporation 2,300 45,569
Lennar Corporation 3,500 70,875
MDC Holdings, Inc. 4,600 85,675
NCI Building Systems, Inc.* 2,100 42,525
Nortek, Inc.* 3,000 59,250
NVR, Inc.* 1,500 85,500
Pulte Corporation 4,100 88,662
Ryland Group, Inc. 4,200 92,925
Standard Pacific Corp. 8,500 85,000
Toll Brothers, Inc.* 2,600 53,300
------------
920,674
------------
Entertainment & Leisure -- 3.02%
Argosy Gaming Company* 4,700 67,562
Aztar Corp.* 4,600 71,300
GTECH Holdings Corp.* 3,700 83,944
Prime Hospitality Corp.* 4,900 46,244
Topps Company (The), Inc.* 6,100 70,150
------------
339,200
------------
Financial Services -- 6.41%
Affiliated Managers Group, Inc.* 1,200 54,600
Bear Stearns Co., Inc. 2,300 95,738
Dain Rauscher Corp. 1,500 99,000
Doral Financial Corp. 6,100 69,769
Edwards (A.G.), Inc. 2,250 87,750
Metris Cos., Inc. 1,800 45,225
Raymond James Financial, Inc. 3,700 83,250
Southwest Securities Group 2,800 104,300
Waddell & Reed Financial, Inc. Cl A 2,400 78,750
------------
718,382
------------
Firearms & Ammunition -- 0.06%
Sturm, Ruger & Co., Inc. 700 6,212
------------
Food & Berverage -- 1.28%
Fleming Co., Inc. 5,600 73,150
Pepsi Bottling Group 2,400 70,050
------------
143,200
------------
Forest & Paper Products -- 0.40%
Westvaco Corp. 1,800 44,662
------------
Healthcare -- 6.12%
Cooper Co.* 1,300 47,288
First Health Group Corp.* 2,600 85,312
Foundation Health Systems, Inc.* 3,600 46,800
Healthsouth Rehabilitation Corp.* 5,600 40,250
Ivax Corp. 2,300 95,450
Mallinckrodt, Inc. 2,200 95,563
Orthodontic Centers of America, Inc.* 2,100 47,513
Pacificare Health Systems, Inc.* 1,300 78,244
Qurom Health Group, Inc.* 4,900 50,531
Universal Health Services, Inc.* 1,500 99,000
------------
685,951
------------
Insurance -- 4.37%
Amerus Life Holdings, Inc. 1,100 22,688
Everest Re Group Ltd. 2,800 92,050
Leucadia National Corp. 1,800 41,063
Mony Group, Inc. 1,400 47,338
Old Republic International Corp. 6,200 102,300
PMI Group, Inc. 2,000 95,000
Stancorp Financial Group, Inc. 2,800 89,950
------------
490,389
------------
Machinery, General Industrial -- 1.67%
JLG Industries, Inc. 6,200 73,625
Kulicke & Soffa Industries, Inc.* 500 29,687
Mark IV Industries, Inc. 4,000 83,500
------------
186,812
------------
Manufacturing -- 1.32%
Crane Co. 1,700 41,331
ITT Industries, Inc. 3,500 106,312
------------
147,643
------------
Marketing Services -- 0.79%
Advo, Inc.* 2,100 88,200
------------
Metals -- 1.32%
Commercial Metals Company 3,300 90,750
Timken Co. 3,100 57,737
------------
148,487
------------
Miscellaneous Manufacturing -- 0.84%
Paxar Corp.* 4,500 53,719
Trinity Industries, Inc. 2,200 40,700
------------
94,419
------------
Office Equipment -- 1.32%
Harris Corp. 2,000 65,500
John H. Harland Co. 5,500 82,156
------------
147,656
------------
Oil & Gas -- 4.03%
Eog Resources, Inc. 3,200 107,200
Murphy Oil Corp. 1,000 59,438
Noble Affiliates, Inc. 1,200 44,700
Tosco Corp. 1,400 39,638
Ultramar Diamond Shamrock Corp. 4,000 99,250
Valero Energy Corporation 3,200 101,600
------------
451,826
------------
Pharmaceuticals -- 1.01%
Dura Pharmaceuticals, Inc.* 4,700 67,563
Herbalife International, Inc. Cl A 1,133 9,914
Jones Pharmaceutical, Inc. 900 35,944
------------
113,421
------------
Real Estate -- 0.47%
LNR Property Corp. 2,700 52,650
------------
Retail -- 5.79%
Finish Line, Inc.* 8,700 71,231
Genesco, Inc.* 5,300 85,131
Handleman Co.* 3,100 38,750
Landry's Restaurants, Inc.* 4,900 41,650
Lone Star Steakhouse & Saloon, Inc.* 6,000 60,750
Media Arts Group, Inc.* 3,000 12,188
Musicland Stores Corp.* 4,900 36,444
Payless Shoesource, Inc.* 900 46,969
Pier 1 Imports, Inc. 3,900 38,025
Rent-A-Center, Inc.* 4,400 99,000
Rex Stores Corp.* 3,300 76,931
Trans World Entertainment Corp.* 3,500 42,437
------------
649,506
------------
Security Services -- 0.52%
Burns International Services Corp.* 4,700 58,750
------------
Telecommunications -- 2.87%
Davox Corp.* 5,500 71,156
PT Telekomunikasi Indonesia Sp ADR 7,300 50,644
Telefonica S.A. ADR 1,231 78,863
Telephone & Data Systems 700 70,175
World Access, Inc.* 4,600 50,888
------------
321,726
------------
Tobacco -- 0.65%
RJ Reynolds Holdg. 2,600 72,638
------------
Transportation -- 2.25%
Avis Rent-A-Car, Inc.* 3,900 73,125
Dollar Thrifty Automotive Group, Inc.* 5,100 94,031
Teekay Shipping Corp. 2,600 85,475
------------
252,631
------------
Trucking & Leasing -- 0.56%
Ryder Systems, Inc. 3,300 62,494
------------
Utilities -- 4.26%
Cia Paranaense-Sp ADR 10,500 97,781
El Paso Electric Co.* 7,700 86,144
Enersis S.A. ADR 2,200 43,863
Huaneng Power International, Inc. ADR 6,800 90,525
Public Service Company of New Mexico 6,200 95,712
Utilicorp United, Inc. 3,200 63,600
------------
477,625
------------
Vitamins & Nutrition Products -- 0.36%
NBTY, Inc.* 6,300 40,163
------------
Wire & Cable Products -- 1.04%
Belden, Inc. 2,700 69,188
Cable Design Technologies Corp.* 1,400 46,900
------------
116,088
------------
Total Common Stock (Cost $10,406,397) 10,895,952
------------
INVESTMENT COMPANIES -- 0.95%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 106,474 106,474
------------
Total Investment Companies (Cost $106,474) 106,474
------------
Total Value of Investments (Cost $10,512,871)(98.11%) $11,002,426
Other Assets Less Liabilities, Net (1.89%) 211,772
------------
Net Assets (100.00%) $11,214,198
============
* Non-income producing investment
ADR - American Depository Receipt
Cost for federal income tax at June 30, 2000 was $10,512,871 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $1,290,459
Gross unrealized depreciation (800,904)
------------
Net unrealized appreciation $489,555
============
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
June 30, 2000
Principal Value
------------ ------------
<S> <C> <C>
AGENCY OBLIGATIONS -- 25.96%
Federal National Mortgage Assoc. -- 18.73%
FNMA, 7.25%, 01/15/10 1,430,000 $1,444,133
FNMA 1993-152 K, P.O., 0.00%, 08/25/23* 155,025 107,564
------------
1,551,697
------------
Federal Home Loan Mortgage Corp. -- 3.14%
Freddie Mac 22 C, 9.50%, 04/15/20 251,674 259,749
------------
U.S. Government Bonds -- 4.09%
Aid-Israel, 5.625%, 09/15/03 350,000 339,144
------------
Total Agency Obligations (Cost $2,153,477) 2,150,590
------------
ASSET BACKED SECURITIES -- 39.19%
Financial Services -- 39.19%
Asset Securitization Corporation 1997-MD7 A1A,
7.32%, 01/13/30 67,727 67,578
Chase Commercial Mortgage Securities Corp. 1992-2 A1,
7.032%, 10/15/08 77,623 76,765
Chase Commercial Mortgage Securities Corp. 1996-1 A1,
7.60%, 12/18/05 62,708 63,095
Chase Commercial Mortgage Securities Corp. 1996-2 A2,
6.90%, 09/16/06 85,000 83,278
Chemical Master Credit Card Trust 1 1996-3 A,
5.875%, 02/15/09 80,000 79,294
Citibank Credit Card Master Trust 1 1992-2 A,
5.875%, 03/10/11 40,000 36,498
Comed Transitional Funding Trust 1 1998-1 A6,
5.63%, 06/25/09 295,000 271,919
Conseco Finance Securitizations Corp. 2000-1 M2,
9.08%, 05/01/31 25,000 25,051
CS First Boston Mortgage Securities Corp. 1997-C1 A1B,
7.15%, 08/20/06 80,000 78,824
CS First Boston Mortgage Securities Corp. 1998-C1 A1A,
6.26%, 12/17/07 55,127 52,956
CS First Boston Mortgage Securities Corp. 1998-C1 A1B,
6.48%, 05/17/08 90,000 84,680
Deutsche Mortgage And Asset Receiving Corp. 1998-C1 A2,
6.538%, 02/15/08 25,000 23,662
DLJ Commercial Mortgage Corp. 1998-CF1 A1B,
6.41%, 02/15/08 25,000 23,440
DLJ Commercial Mortgage Corp. 1998-CG1 A1B,
6.41%, 05/10/08 105,000 98,677
DLJ Commercial Mortgage Corp. 1999-CG2 A1B,
7.30%, 06/10/09 35,000 34,473
FDIC REMIC Trust 1996-C1 1A, 6.75%, 05/25/26 215,613 214,644
First Boston Mortgage Securities Corp. 1997-C1 A1C,
7.24%, 04/20/07 218,000 215,292
First Union-Lehman Bros. Comm. Mortgage 1997-C1 A1,
7.15%, 02/18/04 66,578 66,329
First Union-Lehman Bros. Comm. Mortgage 1997-C1 A3,
7.38%, 04/18/07 90,000 90,040
GMAC Commercial Mortgage Sec. Corp. 1993-C3 A1B,
7.273%, 08/15/09 305,000 300,501
GMAC Commercial Mortgage Sec. Corp. 1997-C2 A3,
6.566%, 11/15/07 45,000 42,630
Green Tree Financial Corporation 1994-5 A5,
8.30%, 11/15/19 190,000 189,684
Green Tree Financial Corporation 1996-10 A6,
7.30%, 11/15/28 250,000 235,533
JP Morgan Commercial Mort. Finance Corp. 1997-C7 A1,
6.18%, 10/15/35 47,137 45,031
LB Commercial Conduit Mortgage Trust 1991-C1 A2,
6.78%, 04/15/09 55,000 52,642
Lehman Large Loan 1997-LLI A1, 6.79%, 06/12/04 42,126 41,698
Lehman Large Loan 1997-LLI A2, 6.84%, 09/12/06 110,000 108,070
Merrill Lynch Mortgage Investors Inc. 1995-C2 A1,
7.0043%, 06/15/21 88,890 87,967
Merrill Lynch Mortgage Investors Inc. 1996-C1 A1,
7.15%, 04/25/28 12,749 12,598
Merrill Lynch Mortgage Investors Inc. 1997-C1 A3,
7.12%, 06/18/29 20,000 19,632
Merrill Lynch Mortgage Investors Inc. 1998-C1 A1,
6.31%, 11/15/26 28,757 27,313
Merrill Lynch Mortgage Investors Inc. 1998-C2 A2,
6.39%, 02/15/30 65,000 61,182
Morgan Stanley Capital 1 1997-ALIC A2, 5.99%, 03/15/05 78,939 76,100
Morgan Stanley Capital 1 1998-HF1 A1, 6.19%, 01/15/07 41,002 39,540
Mortgage Capital Funding, Inc. 1998-MC1 A1,
6.417%, 06/18/07 61,256 59,329
Mortgage Capital Funding, Inc. 1998-MC3 A1,
6.001%, 11/18/31 21,469 20,320
Nomura Asset Securities Corp. 1998-D6 A2,
6.7815%, 03/17/28 50,000 46,791
Prudential Home Mortgage Securities 1993-47 A11,
6.10%, 12/25/23 100,000 93,382
------------
3,246,438
------------
Total Asset Backed Securities (Cost $3,163,735) 3,246,438
------------
CORPORATE BONDS -- 16.14%
Entertainment & Leisure -- 1.04%
Circus Circus, 6.70%, 11/15/96 95,000 86,533
------------
Financial Services -- 6.16%
Ford Motor Credit Co., 7.375%, 10/28/09 300,000 291,006
Int'l Bank for Reconstruction & Development,
0.00%, 02/15/11* 468,000 219,562
------------
510,568
------------
Food & Beverage -- 1.11%
Nabisco, Inc., 6.375%, 02/01/35 100,000 91,542
------------
Industrial -- 1.03%
Unova, Inc., 7.00%, 03/15/08 100,000 85,333
------------
Medical Products -- 2.22%
Beckman Instruments, 7.05%, 06/01/26 90,000 83,851
Columbia/HCA, 8.36%, 04/15/24 110,000 99,784
------------
183,635
------------
Pipelines -- 1.16%
KN Energy, 6.67%, 11/01/27 100,000 96,427
------------
Realty -- 1.08%
Commercial Net Lease (REIT), 7.125%, 03/15/08 100,000 89,219
------------
Retail -- 2.34%
Ikon Office Solutions, 6.75%, 11/01/04 130,000 118,823
Rite Aid Corp., 7.125%, 01/15/07 145,000 74,675
------------
193,498
------------
Total Corporate Bonds (Cost $1,357,208) 1,336,755
------------
FOREIGN BONDS -- 16.37%
Foreign Corporate Bonds -- 16.37%
Bank Of Ayudhya (HK) FRN, 7.515%, 04/30/06+ 400,000 376,000
Daiwa PB (Cayman) Ltd. FRN, 7.7825%, 09/29/49+ 600,000 513,000
Krung Thai Bank (Sing) FRN, 8.77%, 09/30/04+ 500,000 467,500
------------
1,356,500
------------
Total Foreign Bonds (Cost $1,381,488) 1,356,500
------------
INVESTMENT COMPANIES -- 1.16%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 95,780 $95,780
------------
Total Investment Companies (Cost $95,780) 95,780
------------
Total Investments (Cost $8,151,688 )(98.82%) 8,186,063
Other Assets Less Liabilities, Net (1.18%) 98,003
------------
Net Assets (100.00%) $8,284,066
============
* Non-income producing investment
FRN - Floating Rate Note
P.O. - Principal Only
+ Denominated is U.S. Dollars
Cost for federal income tax at June 30, 2000 was $8,151,688 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $111,311
Gross unrealized depreciation (76,936)
------------
Net unrealized appreciation $34,375
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000
Large-Cap
Core Equity Aggressive Value Fund Mid-Cap Small-Cap Fixed Income
Fund Growth Fund (note 8) Value Fund Value Fund Fund
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(cost $22,923,595, $17,543,282, $6,377,857,
$7,874,577, $10,512,871 and $8,151,688)
(note 2) $30,282,495 $17,791,411 $6,156,548 $8,510,522 $11,002,426 $8,186,063
Cash -- 6,815 -- -- -- 99
Deposits with brokers for securities
sold short -- 320,685 -- -- -- --
Receivables:
Dividends and interest 4,818 65,452 7,067 4,760 9,034 113,458
Fund shares sold -- 683,408 -- -- 3,908 --
Investment securities sold 327,128 690,545 95,817 -- 856,819 --
Due from fund sponsor (notes 2 and 3) -- -- 5,181 -- 252 1,107
Due from fund administrator 3,806 -- 1,436 2,149 -- --
Deferred organization expenses, net (note 4) 9,002 8,984 9,002 4,997 9,002 9,002
Prepaid expenses and other assets 24,578 17,537 15,055 19,910 18,912 18,732
----------- ----------- ---------- ---------- ----------- ----------
Total assets 30,651,827 19,584,837 6,290,106 8,542,338 11,900,353 8,328,461
----------- ----------- ---------- ---------- ----------- ----------
LIABILITIES:
Securities sold short, at value
(proceeds $145,630) -- 125,319 -- -- -- --
Payables:
Fund shares redeemed -- 966 79,227 98,765 -- --
Investment securities purchased 329,828 973,271 -- 42,003 674,143 36,163
Distributions -- -- -- -- -- 408
Due to advisors (note 2) 11,052 3,147 -- 48 3,642 32
Accrued expenses 18,757 11,618 9,810 9,085 8,370 7,792
Due to fund sponsor (notes 2 and 3) 11,575 7,040 -- 1,088 -- --
----------- ----------- ---------- ---------- ----------- ----------
Total liabilities 371,212 1,121,361 89,037 150,989 686,155 44,395
----------- ----------- ---------- ---------- ----------- ----------
NET ASSETS $30,280,615 $18,463,476 $6,201,069 $8,391,349 $11,214,198 $8,284,066
=========== =========== ========== ========== =========== ==========
NET ASSETS CONSIST OF:
Paid-in capital $22,524,794 $14,689,942 $6,739,151 $7,917,331 $10,181,784 $8,692,990
Undistributed net investment income -- 145,614 11,530 -- -- 30
Accumulated net realized gain (loss)
on investments 396,921 3,359,480 (328,303) (161,927) 542,859 (443,329)
Net unrealized appreciation (depreciation)
on investments 7,358,900 268,440 (221,309) 635,945 489,555 34,375
----------- ----------- ---------- ---------- ----------- ----------
Total Net Assets $30,280,615 $18,463,476 $6,201,069 $8,391,349 $11,214,198 $8,284,066
=========== =========== ========== ========== =========== ==========
NO-LOAD CLASS SHARES:
Net Assets (Applicable to 1,490,540,
815,695, 557,334, 780,277, 892,177 and
845,210 shares outstanding, respectively;
unlimited shares of $0.01 par value,
beneficial interest authorized) $30,275,480 $18,463,476 $6,201,069 $8,391,349 $11,214,198 $8,284,066
----------- ----------- ---------- ---------- ----------- ----------
Net Asset Value, redemption and offering
Price per share $20.31 $22.64 $11.13 $10.75 $12.57 $9.80
=========== =========== ========== ========== =========== ==========
CLASS C SHARES*:
Net Assets (Applicable to 253 shares
outstanding, unlimited shares of $0.01
par value, beneficial interest authorized) $5,135
-----------
Net Asset Value, redemption and offering
Price per share $20.33
===========
* Initial issuance on 6/30/00
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
Year Ended June 30, 2000
Large-Cap
Core Equity Aggressive Value Fund Mid-Cap Small-Cap Fixed Income
Fund Growth Fund (note 8) Value Fund Value Fund Fund
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $139,603 $2,267 $122,124 $102,885 $133,012 $--
Interest 8,735 309,365 13,277 14,386 9,978 460,557
---------- ---------- ----------- ---------- ---------- ----------
Total income 148,338 311,632 135,401 117,271 142,990 460,557
---------- ---------- ----------- ---------- ---------- ----------
Expenses:
Investment advisory fees (note 2) 209,144 68,067 61,640 72,821 54,417 31,803
Fund administration fees (note 2) 19,225 8,870 6,351 5,276 10,711 6,482
Fund accounting fees (note 2) 14,856 14,671 14,671 14,671 14,671 14,671
Custody fees 8,397 8,922 4,675 5,406 9,164 3,796
Shareholder servicing fees 13,110 12,946 12,946 12,946 12,946 12,946
Shareholder servicing distribution fees
(note 3) 69,715 22,689 20,547 24,273 29,462 10,631
Trustee fees and meeting expenses 3,952 472 818 1,472 1,647 672
Legal fees 29,145 14,667 5,664 8,300 9,919 7,578
Audit fees 11,989 2,753 4,419 2,823 3,855 1,566
Distribution fees -- No Load Class (note 2) 36,708 8,615 14,776 15,134 5,865 2,168
Registration and filing expenses 2,763 3,020 4,545 5,538 5,004 2,368
Printing expenses 11,482 4,316 2,756 4,731 2,703 1,856
Amortization of deferred organizational
Expenses (note 4) 6,775 6,775 6,775 2,006 6,775 6,775
Other operating expenses 37,080 6,975 6,717 17,203 19,138 8,198
---------- ---------- ----------- ---------- ---------- ----------
Total expenses 474,341 183,758 167,300 192,600 186,277 111,510
Less:
Expense reimbursements (note 3) (4) -- (2,343) -- (4,161) (3,039)
Investment advisory fees waived (note 2) (46,030) (29,947) (35,371) (38,657) (15,796) (28,686)
Shareholder service fees waived (note 3) (15,087) (10,311) (13,301) (15,012) (6,819) (9,968)
---------- ---------- ----------- ---------- ---------- ----------
Net expenses 413,220 143,500 116,285 138,931 159,501 69,817
---------- ---------- ----------- ---------- ---------- ----------
Net investment income (loss) (264,882) 168,132 19,116 (21,660) (16,511) 390,740
---------- ---------- ----------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from investments
(excluding short securities) 948,403 3,958,991 (261,745) (162,008) 1,058,105 (443,329)
Net realized loss from short securities -- (19,937) -- -- -- --
Net unrealized appreciation (depreciation)
on investments 3,362,528 (225,536) (1,188,758) (275,088) (961,261) 232,756
---------- ---------- ----------- ---------- ---------- ----------
Net realized and unrealized gain (loss)
on investments 4,310,931 3,713,518 (1,450,503) (437,096) 96,844 (210,573)
---------- ---------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations $4,046,049 $3,881,650 $(1,431,387) $(458,756) $80,333 $180,167
========== ========== =========== ========== ========== ==========
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Large-Cap
Core Equity Aggressive Value Fund Mid-Cap Small-Cap Fixed Income
For the Year Ended June 30, 2000 Fund Growth Fund (note 8) Value Fund Value Fund Fund
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss) $(264,882) $168,132 $19,116 $(21,660) $(16,511) $390,740
Net realized gain (loss) from investment
transactions 948,403 3,939,054 (261,745) (162,008) 1,058,105 (443,329)
Net unrealized appreciation (depreciation)
on investments 3,362,528 (225,536) (1,188,758) (275,088) (961,261) 232,756
----------- ----------- ---------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations 4,046,049 3,881,650 (1,431,387) (458,756) 80,333 180,167
----------- ----------- ---------- ----------- ----------- ----------
Distributions to shareholders from
Net investment income -- No Load Class -- (22,518) (11,115) -- -- (390,710)
Net realized capital gain -- No Load Class (543,296) (583,162) (44,096) -- (388,757) --
----------- ----------- ---------- ----------- ----------- ----------
Total Distributions (543,296) (605,680) (55,211) -- (388,757) (390,710)
----------- ----------- ---------- ----------- ----------- ----------
Capital share transactions
Increase (decrease) in net assets from
Fund share transactions (note 6) 1,370,850 11,322,574 (2,054,481) (3,305,389) (1,497,853) 819,191
----------- ----------- ---------- ----------- ----------- ----------
Total increase (decrease) in net assets 4,873,603 14,598,544 (3,541,079) (3,764,145) (1,806,277) 608,648
NET ASSETS
Beginning of year 25,407,012 3,864,932 9,742,148 12,155,494 13,020,475 7,675,418
----------- ----------- ---------- ----------- ----------- ----------
End of year $30,280,615 $18,463,476 $6,201,069 $8,391,349 $11,214,198 $8,284,066
=========== =========== ========== =========== =========== ==========
For the Year Ended June 30, 1999
INCREASE IN NET ASSETS
Operations
Net investment income (loss) $(85,069) $25,918 $25,112 $(4,946) $(39,554) $311,014
Net realized gain (loss) from investment
transactions 855,029 659,185 125,381 10,689 (166,810) 17,710
Net unrealized appreciation (depreciation)
on investments 3,265,525 425,043 846,719 409,810 1,144,461 (252,989)
----------- ----------- ---------- ----------- ----------- ----------
Net increase in net assets resulting
from operations 4,035,485 1,110,146 997,212 415,553 938,097 75,735
----------- ----------- ---------- ----------- ----------- ----------
Distributions to shareholders from
Net investment income -- No Load Class (982) (25,918) (25,111) -- -- (311,798)
Net realized capital gain -- No Load Class (875,797) (747,729) (343,499) (140,565) (81,104) (3,926)
----------- ----------- ---------- ----------- ----------- ----------
Total Distributions (876,779) (773,647) (368,610) (140,565) (81,104) (315,724)
----------- ----------- ---------- ----------- ----------- ----------
Capital share transactions
Increase in net assets from Fund share
transactions (note 6) 17,471,206 1,814,848 7,515,012 2,847,326 8,176,756 2,233,255
----------- ----------- ---------- ----------- ----------- ----------
Total increase in net assets 20,629,912 2,151,347 8,143,614 3,122,314 9,033,749 1,993,266
NET ASSETS
Beginning of year 4,777,100 1,713,585 1,598,534 9,033,180 3,986,726 5,682,152
----------- ----------- ---------- ----------- ----------- ----------
End of year $25,407,012 $3,864,932 $9,742,148 $12,155,494 $13,020,475 $7,675,418
=========== =========== ========== =========== =========== ==========
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Core Equity Fund
------------------------------------------------------------------------------
Class C No-Load Class
--------------- -----------------------------------------------------------
For the
period from
Period* Year Year Year November 25, 1996
Ended Ended Ended Ended (commencement of
June 30, June 30, June 30, June 30, operations) to
2000 2000 1999 1998 June 30, 1997
--------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.79 $17.78 $14.42 $11.61 $10.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income (loss) -- (0.18) (0.06) -- 0.04
Net realized and unrealized gain (loss) on
investments 0.54 3.09 4.10 2.81 1.61
-------- -------- -------- -------- --------
Total from investment operations 0.54 2.91 4.04 2.81 1.65
-------- -------- -------- -------- --------
Distributions to shareholders from
Net investment income -- -- -- -- (0.04)
Net realized capital gain -- (0.38) (0.68) -- --
Distribution in excess of net realized gain -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions -- (0.38) (0.68) -- (0.04)
-------- -------- -------- -------- --------
Net Asset Value - End of Period $20.33 $20.31 $17.78 $14.42 $11.61
======== ======== ======== ======== ========
Total Return 2.73% 16.34% 28.16% 24.20% 16.50%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $5 $30,275 $25,407 $4,777 $519
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 28.51%(a) 1.70% 1.44% 3.48% 21.30%(a)
After expense reimbursements and waived fees 0.00%(a) 1.48% 1.29% 1.35% 1.35%(a)
Ratio of net investment income (loss) to average
net assets
Before expense reimbursements and waived fees (28.51)%(a) (1.17)% (0.73)% (2.10)% (19.47)%(a)
After expense reimbursements and waived fees 0.00%(a) (0.95)% (0.58)% 0.03% 0.49%(a)
Portfolio turnover rate 82.54% 82.54% 78.45% 64.36% 11.49%
(a) Annualized.
(b) Aggregate total return, not annualized.
* Initial issuance on 6/30/00.
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Aggressive Growth Fund
-----------------------------------------------------------------
For the
period from
Year Year Year November 25, 1996
Ended Ended Ended (commencement of
June 30, June 30, June 30, operations) to
2000 1999 1998 June 30, 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.10 $12.01 $11.16 $10.00
-------- -------- -------- --------
Income from investment operations
Net investment income (loss) 0.24 0.12 -- 0.04
Net realized and unrealized gain (loss)
on investments 9.88 5.54 2.69 1.23
-------- -------- -------- --------
Total from investment operations 10.12 5.66 2.69 1.27
-------- -------- -------- --------
Distributions to shareholders from
Net investment income (0.06) (0.12) -- (0.04)
Net realized capital gain (1.52) (3.45) (1.38) (0.07)
Distribution in excess of net realized gain -- -- (0.46) --
-------- -------- -------- --------
Total distributions (1.58) (3.57) (1.84) (0.11)
-------- -------- -------- --------
Net Asset Value - End of Period $22.64 $14.10 $12.01 $11.16
======== ======== ======== ========
Total Return 73.68% 49.44% 26.57% 12.68%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $18,463 $3,865 $1,714 $1,121
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 2.02% 2.84% 8.09% 13.44%(a)
After expense reimbursements and waived fees 1.57% 1.35% 1.35% 1.34%(a)
Ratio of net investment income (loss) to
average net assets
Before expense reimbursements and waived fees 1.40% (0.45)% (6.72)% (9.18)%(a)
After expense reimbursements and waived fees 1.84% 1.04% (0.04)% 0.64%(a)
Portfolio turnover rate 886.14% 1,696.00% 887.13% 778.01%
(a) Annualized.
(b) Aggregate total return, not annualized.
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Large-Cap Value Fund
-----------------------------------------------------------------
For the
period from
Year Year Year November 25, 1996
Ended Ended Ended (commencement of
June 30, June 30, June 30, operations) to
2000 1999 1998 June 30, 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.28 $14.02 $11.83 $10.00
-------- -------- -------- --------
Income from investment operations
Net investment income (loss) 0.03 0.04 0.07 0.07
Net realized and unrealized gain (loss)
on investments (2.11) 1.69 3.10 1.83
-------- -------- -------- --------
Total from investment operations (2.08) 1.73 3.17 1.90
-------- -------- -------- --------
Distributions to shareholders from
Net investment income (0.01) (0.07) (0.04) (0.07)
Net realized capital gain (0.06) (2.40) (0.94) --
Distribution in excess of net realized gain -- -- -- --
-------- -------- -------- --------
Total distributions (0.07) (2.47) (0.98) (0.07)
-------- -------- -------- --------
Net Asset Value - End of Period $11.13 $13.28 $14.02 $11.83
======== ======== ======== ========
Total Return (15.69)% 19.05% 28.32% 19.04%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $6,201 $9,742 $1,599 $783
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 2.04% 2.02% 5.58% 16.44%(a)
After expense reimbursements and waived fees 1.42% 0.81% 1.00% 1.00%(a)
Ratio of net investment income (loss) to
average net assets
Before expense reimbursements and waived fees (0.39)% (0.47)% (3.99)% (14.32)%(a)
After expense reimbursements and waived fees 0.23% 0.74% 0.59% 1.14%(a)
Portfolio turnover rate 39.34% 136.81% 274.63% 34.26%
(a) Annualized.
(b) Aggregate total return, not annualized.
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Mid-Cap Value Fund
-----------------------------------------------------------------
For the
period from
Year Year January 6, 1998
Ended Ended (commencement of
June 30, June 30, operations) to
2000 1999 June 30, 1998
-----------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $11.00 $10.93 $10.00
-------- -------- --------
Income from investment operations
Net investment income (loss) (0.03) -- (0.02)
Net realized and unrealized gain (loss)
on investments (0.22) 0.23 0.95
-------- -------- --------
Total from investment operations (0.25) 0.23 0.93
-------- -------- --------
Distributions to shareholders from
Net investment income -- -- --
Net realized capital gain -- (0.16) --
Distribution in excess of net realized gain -- -- --
-------- -------- --------
Total distributions -- (0.16) --
-------- -------- --------
Net Asset Value - End of Period $10.75 $11.00 $10.93
======== ======== ========
Total Return (2.27)% 2.68% 9.30%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $8,391 $12,155 $9,033
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 1.99% 1.63% 1.97%(a)
After expense reimbursements and waived fees 1.43% 1.35% 1.35%(a)
Ratio of net investment income (loss) to
average net assets
Before expense reimbursements and waived fees (0.78)% (0.33)% (0.93)%(a)
After expense reimbursements and waived fees (0.22)% (0.05)% (0.31)%(a)
Portfolio turnover rate 38.59% 69.59% 13.86%
(a) Annualized.
(b) Aggregate total return, not annualized.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Small-Cap Value Fund
-----------------------------------------------------------------
For the
period from
Year Year Year November 25, 1996
Ended Ended Ended (commencement of
June 30, June 30, June 30, operations) to
2000 1999 1998 June 30, 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.81 $13.47 $11.53 $10.00
-------- -------- -------- --------
Income from investment operations
Net investment income (loss) (0.02) (0.04) (0.01) 0.01
Net realized and unrealized gain (loss)
on investments 0.19 (0.40) 2.99 2.02
-------- -------- -------- --------
Total from investment operations 0.17 (0.44) 2.98 2.03
-------- -------- -------- --------
Distributions to shareholders from
Net investment income -- -- -- (0.01)
Net realized capital gain (0.41) (0.22) (1.04) (0.49)
Distribution in excess of net realized gain -- -- -- --
-------- -------- -------- --------
Total distributions (0.41) (0.22) (1.04) (0.50)
-------- -------- -------- --------
Net Asset Value - End of Period $12.57 $12.81 $13.47 $11.53
======== ======== ======== ========
Total Return 1.38% (2.96)% 27.04% 20.35%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $11,214 $13,020 $3,792 $1,333
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 1.58% 1.78% 4.20% 10.50%(a)
After expense reimbursements and waived fees 1.35% 1.35% 1.35% 1.31%(a)
Ratio of net investment income (loss) to
average net assets
Before expense reimbursements and waived fees (0.37)% (0.82)% (3.03)% (8.96)%(a)
After expense reimbursements and waived fees (0.14)% (0.40)% (0.18)% 0.22%(a)
Portfolio turnover rate 138.59% 113.99% 129.58% 90.63%
(a) Annualized.
(b) Aggregate total return, not annualized.
See notes to the financial statements.
</TABLE>
<TABLE>
<CAPTION>
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
Fixed Income Fund
-----------------------------------------------------------------
For the
period from
Year Year Year November 25, 1996
Ended Ended Ended (commencement of
June 30, June 30, June 30, operations) to
2000 1999 1998 June 30, 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.13 $10.41 $9.89 $10.00
-------- -------- -------- --------
Income from investment operations
Net investment income (loss) 0.53 0.48 0.47 0.26
Net realized and unrealized gain (loss)
on investments (0.33) (0.27) 0.50 (0.11)
-------- -------- -------- --------
Total from investment operations 0.20 0.21 0.97 0.15
-------- -------- -------- --------
Distributions to shareholders from
Net investment income (0.53) (0.48) (0.45) (0.26)
Net realized capital gain -- (0.01) -- --
Distribution in excess of net realized gain -- -- -- --
-------- -------- -------- --------
Total distributions (0.53) (0.49) (0.45) (0.26)
-------- -------- -------- --------
Net Asset Value - End of Period $9.80 $10.13 $10.41 $9.89
======== ======== ======== ========
Total Return 2.13% 1.84% 9.97% 1.57%(b)
Ratios/supplemental data
Net assets, end of period (000's omitted) $8,284 $7,675 $5,682 $576
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 1.57% 1.41% 2.53% 16.56%(a)
After expense reimbursements and waived fees 0.98% 0.90% 0.90% 0.90%(a)
Ratio of net investment income (loss)
to average net assets
Before expense reimbursements and waived fees 4.92% 4.03% 2.96% (10.87)%(a)
After expense reimbursements and waived fees 5.51% 4.54% 4.59% 4.79%(a)
Portfolio turnover rate 282.71% 276.94% 81.55% 0.00%
(a) Annualized.
(b) Aggregate total return, not annualized.
See notes to the financial statements.
</TABLE>
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2000
-----------------------------------------------------------------------------
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Quaker Investment Trust (the "Trust"), a diversified, open-end
management investment company, was organized as a Massachusetts Business
Trust on October 24, 1990, and is registered under the Investment Company
Act of 1940, as amended. The Trust's Agreement and Declaration of Trust
permits the Trustees to issue an unlimited number of shares of beneficial
interest. The Trust has established six series: the Quaker Core Equity
Fund, the Quaker Aggressive Growth Fund, the Quaker Large-Cap Value Fund,
the Quaker Mid-Cap Value Fund, the Quaker Small-Cap Value Fund and the
Quaker Fixed Income Fund (each a "Fund" and collectively, the "Funds"). The
Investment objectives of each Fund are set forth below.
The Quaker Core Equity Fund (the "Core Equity Fund"), the Quaker Aggressive
Growth Fund (the "Aggressive Growth Fund"), the Quaker Large-Cap Value Fund
(the "Large-Cap Value Fund") and the Quaker Small-Cap Value Fund (the
"Small-Cap Value Fund") all commenced operations on November 25, 1996. The
Quaker Mid-Cap Value Fund (the "Mid-Cap Value Fund") commenced operations
on January 6, 1998. The investment objective of these Funds is to provide
shareholders with long-term capital growth by investing primarily in equity
securities of domestic U.S. companies.
The Quaker Fixed Income Fund (the "Fixed Income Fund") commenced operations
on November 25, 1996. The investment objective of this Fund is to generate
current income, preserve capital and maximize total returns through active
management of investment grade income securities.
The six series of the Trust offer four new classes of shares as of June 23,
2000. The new classes are the A, B, C and I classes. As a result of a proxy
vote on June 23, 2000, the Core Equity Fund, the Aggressive Growth Fund,
the Large-Cap Value Fund, and the Mid-Cap Value Fund no longer offer the
original No-Load Class shares. The No-Load Class shares of these Funds have
been converted to Class A shares on July 7, 2000. The Class A shares are
offered at the net asset value plus the applicable sales charge. Class B
shares are offered at the net asset value with a contingent deferred sales
charge imposed on certain redemptions. Class C shares are offered at the
net asset value with a contingent deferred sales charge imposed on certain
redemptions. The shares are subject to an additional distribution fee of
0.75% per annum of average daily net assets. Class I shares are designed
for large institutions with minimum initial and subsequent investments of
$1 million.
A. Security Valuation. Each Fund's investments in securities are carried at
value. Securities listed on an exchange or quoted on a national market
system are valued at 4:00 p.m. (3:00 p.m. for securities of the Fixed
Income Fund), New York time on the day of valuation. Other securities
traded in the over-the-counter market and listed securities for which no
sale was reported on that date are valued at the most recent bid price.
Securities for which market quotations are not readily available, if any,
are valued by using an independent pricing service or by following
procedures approved by the Board of Trustees. Short-term investments are
valued at amortized cost, which approximates fair market value. Interest
income on debt securities is recorded on the accrual basis. Discounts and
premiums on debt securities are amortized to income over their respective
lives.
B. Federal Income Taxes. No provision has been made for federal income
taxes since it is the policy of each Fund to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and
to make sufficient distributions of taxable income to relieve it from
substantially all federal income taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and income tax purposes primarily due to investments
which have a different basis for financial statement and income tax
purposes. The character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing
of dividend distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gains were recorded by
each Fund.
C. Investment Transactions. Investment transactions are recorded on the
trade date. Realized gains and losses are determined using the specific
identification cost method. Interest income is recorded daily on an accrual
basis. Discounts and premiums on debt securities are amortized to income
over their respective terms. Dividend income is recorded on the ex-dividend
date, or as soon as information is available to the Fund.
The Aggressive Growth Fund makes short sales of investments, which are
transactions in which the Fund sells a security it does not own. To
complete such a transaction, the Fund must borrow the security to make
delivery to the buyer. The Fund is then obligated to replace the security
borrowed by purchasing it at the market price at the time of replacement.
The proceeds of short sales are retained by the broker to the extent
necessary to meet margin requirements, until the short position is closed
out.
D. Distributions to Shareholders. Except for the Fixed Income Fund which
declares dividends monthly, each Fund generally declares dividends
annually, payable in December, on a date selected by the Trust's Trustees.
In addition, distributions may be made annually in December out of net
realized gains through October 31, of that year. Distributions to
shareholders are recorded on the ex-dividend date. Each Fund may make a
supplemental distribution subsequent to the end of its fiscal year ending
June 30.
E. Use of Estimates. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that may affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
F. Multiple Class Allocations. Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are
allocated to each class of shares based upon the relative net asset value
on the date such items are recognized. Distribution fees are charged
directly to the respective class.
NOTE 2 -- INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to separate investment advisory agreements, the Advisors, Geewax,
Terker & Co., Inc. for the Core Equity Fund, Quaker Financial Advisors,
Inc. for the Aggressive Growth Fund, Aronson + Partners for the Small-Cap
Value Fund, Compu-Val Investments, Inc. for the Mid-Cap Value Fund and
Large-Cap Value Fund and ALM Advisors, Inc. for the Fixed Income Fund (the
"Advisors") provide each Fund with a continuous program of supervision of
the Fund's assets, including the composition of its portfolio, and furnish
advice and recommendations with respect to investments, investment policies
and the purchase and sale of securities. Quaker Financial Advisors, Inc.
became investment advisor to the Aggressive Growth Fund effective April 30,
2000 following the resignation of DG Capital Management, Inc. Mr. Manu Daftary,
portfolio manager with DG Capital Management, Inc. subsequently became
portfolio manager with Quaker Financial Advisors, Inc. ALM Advisors, Inc.
became investment advisor for the Fixed Income Fund pursuant to an
Investment Advisory Agreement dated February 29, 2000 following the
resignation of Fiduciary Asset Management Co. As compensation for its
services, the Advisor receives a fee at an annual rate of the Fund's
average daily net assets. The Advisors intend to voluntarily waive all or a
portion of their fees to limit total Fund operating expenses. There can be
no assurance that the foregoing voluntary fee waivers will continue. For
the period ended June 30, 2000, each Advisor has voluntarily waived its fee
as follows:
Advisory Fee Advisory Fee
Rate Waiver
------------------ ------------------
Core Equity Fund 0.75% $46,030
Aggressive Growth Fund 0.75 29,947
Large-Cap Value Fund 0.75 35,371
Mid-Cap Value Fund 0.75 38,657
Small-Cap Value Fund 0.46* 15,796
Fixed Income Fund 0.45 28,686
*performance-based fee beginning October 1, 1999
As approved at the special meeting of shareholders on June 23, 2000,
pursuant to a new master investment advisory agreement, Quaker Management
Corporation is the new investment advisor for all series of the Trust with
the exception of the Small-Cap Value Fund and Fixed Income Fund. The master
investment advisory agreement was not approved by the required number of
shareholders of the Small-Cap Value Fund and Fixed Income Fund.
Quaker Management Corporation entered into new sub-advisory agreements for
each series of the Trust except for the Small-Cap Value Fund and Fixed
Income Fund. The current Advisors to each series prior to June 23, 2000 as
noted above are now the Sub-advisors to the respective series. The Advisors
for the Small-Cap Value Fund and Fixed Income Fund will remain as they were
prior to June 23, 2000.
Due to Advisors includes $3,147 at June 30, 2000 payable to Quaker
Financial Advisors, Inc. For the year ended June 30, 2000 advisory fees of
$9,413 were paid to Quaker Financial Advisors, Inc.
The Declaration Service Company (the "Administrator") serves as the
Administrator for each Fund. The Administrator provides administrative
services to and is generally responsible for the overall management and
day-to-day operations of each Fund pursuant to an accounting and
administrative agreement with the Trust. As compensation for its services,
the Administrator receives an annual fee of $20,000 plus an asset-based fee
at the annual rate of 0.05% of each Fund's first $25 million of average
daily net assets, 0.09% of the next $25 million of average daily net
assets, 0.07% of the next $50 million of average daily net assets, and 0.06%
of its average daily net assets in excess of $100 million. The Administrator
also receives an annual fee of $17,000 for accounting and record keeping
services. Additionally, the Administrator charges each Fund for servicing
of shareholder accounts and registration of each Fund's shares. The
Administrator also charges each Fund for certain expenses involved with
the daily valuation of portfolio securities.
The Declaration Service Company (the "Transfer Agent") serves as the
Transfer Agent for each Fund. The Transfer Agent maintains the records of
each shareholder's account, answers shareholder inquiries concerning
accounts, processes purchases and redemptions of Fund shares, acts as
dividend and distribution disbursing agent, and performs other shareholder
servicing functions. As compensation for its services, the Transfer Agent
receives an annual fee of $15,000.
Declaration Distributors, Inc. serves as Distributor for the Trust. As
compensation for its services, the Distributor received $15,000 for the
year ended June 30, 2000.
The Trust has adopted distribution and shareholder servicing plans pursuant
to Rule 12b-1 of the Investment Company Act of 1940 for each class for each
Fund with the exception of Class I. The Class A Plan provides that each
Fund may pay a servicing or Rule 12b-1 fee at an annual rate of 0.25% of
the Funds average net assets on a monthly basis to persons or institutions
for performing certain servicing functions for the Funds shareholders. The
Plan also allows the Fund to pay or reimburse expenditures in connection
with sales and promotional services related to distribution of the Funds
shares, including personal services provided to prospective and existing
shareholders. The Class B and C Plans provide that each Fund may compensate
Quaker Funds, Inc. (the "Sponsor") and others for services provided and
expenses incurred in the distribution of shares at an annual rate of 0.75%
on a monthly basis.
Amounts due to the Fund Sponsor represent service fees due the Sponsor net
of voluntary expense reimbursements due from the Sponsor for expenses
incurred in excess of operating expense limitations. Amounts due from the
Fund Sponsor represent voluntary expense reimbursements due from the
sponsor for expenses incurred in excess of operating expense limitations.
Certain Trustees and officers of the Trust are also officers of the
Advisor, the Sponsor, the Distributor, the Transfer Agent or the
Administrator.
NOTE 3 -- SERVICE FEES
The Board of Trustees, including a majority of the Trustees who are not
"interested persons" of the Trust as defined in the Investment Company Act
of 1940 (the "Act"), adopted a Shareholder Servicing Agreement (the
"Agreement"). Pursuant to this Agreement, the Sponsor will provide
oversight with respect to each Fund's investment advisor, arrange for
payment of investment advisory and administrative fees, coordinate payments
under each Fund's Distribution Plan, develop communications with existing
Fund shareholders, assist in responding to shareholder inquiries, and will
provide other shareholder services. As compensation for these services,
Quaker Funds, Inc. receives a fee according to the table below of each
Fund's average daily net assets. The Sponsor intends to voluntarily waive
all or a portion of its fee and reimburse expenses of each Fund to limit
total Fund operating expenses. There can be no assurance that the voluntary
fee waivers or reimbursements will continue. For the year ended June 30,
2000, the amounts are as follows:
Sponsor Fee Reimbursed
Fee(1) Waivers Expenses
---------- ------------ ----------------
Core Equity Fund 0.25% $15,087 $ 4(2)
Aggressive Growth Fund 0.25 10,311 --
Large-Cap Value Fund 0.25 13,301 2,343
Mid-Cap Value Fund 0.25 15,012 --
Small-Cap Value Fund 0.25 6,819 4,161
Fixed Income Fund 0.15 9,968 3,039
(1) Percentage of average daily net assets.
(2) Class C shares
NOTE 4 -- DEFERRED ORGANIZATION EXPENSES
Expenses totaling $33,324 incurred in connection with its organization and
the registration of its shares, which were originally paid by the Fund's
Sponsor, have been assumed by each Fund except the Mid-Cap Value Fund. The
Mid-Cap Value Fund incurred $10,000 in connection with its organization and
registration of shares and has assumed that amount.
The organization expenses are being amortized using the straight-line
method over a period of sixty months. Investors purchasing shares of the
Fund bear such expenses only as they are amortized against the Fund's
investment income.
NOTE 5 -- PURCHASES AND SALES OF INVESTMENTS
During the year ended June 30, 2000, purchases and sales of investment
securities (excluding short-term investments and U.S. government
securities) aggregated as follows:
Purchases Sales
------------------ ------------------
Core Equity Fund $23,554,782 $22,834,559
Aggressive Growth Fund 29,276,498 29,917,120
Large-Cap Value Fund 3,074,183 4,418,162
Mid-Cap Value Fund 3,605,382 6,844,741
Small-Cap Value Fund 16,028,030 18,020,415
Fixed Income Fund 14,562,556 10,901,302
During the year ended June 30, 2000, purchases and sales of U.S. government
securities aggregated as follows:
Purchases Sales
------------------ ------------------
Fixed Income Fund $4,853,453 $7,543,285
NOTE 6 -- FUND SHARE TRANSACTIONS
At June 30, 2000, there were an unlimited number of shares of beneficial
interest with a $0.01 par value, authorized. The following table summarizes
the activity in shares of each Fund:
<TABLE>
<CAPTION>
Core Equity Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ---------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold 366,379 $7,387,857 1,092,220 $17,328,878
Shares issued to shareholders in reinvestment
of distributions 26,200 540,951 49,309 876,541
Shares redeemed (330,684) (6,562,958) (44,140) (734,213)
-------- ---------- --------- -----------
Net increase 61,895 $1,365,850 1,097,389 $17,471,206
========== ===========
Shares outstanding:
Beginning of year 1,428,645 331,256
--------- ---------
End of year 1,490,540 1,428,645
========= =========
<CAPTION>
Core Equity Fund - Class C
For the Year
Ended
June 30, 2000
------------------
Shares Amount
-------- ----------
<S> <C> <C>
Shares sold 253 $5,000
<CAPTION>
Aggressive Growth Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold 647,690 $13,419,016 110,734 $1,553,423
Shares issued to shareholders in reinvestment
of distributions 31,314 604,352 55,997 766,399
Shares redeemed (137,378) (2,700,794) (35,397) (504,974)
-------- ----------- -------- -----------
Net increase 541,626 $11,322,574 131,334 $1,814,848
=========== ===========
Shares outstanding:
Beginning of year 274,069 142,735
-------- --------
End of year 815,695 274,069
======== ========
Large-Cap Value Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold 209,758 $ 2,514,284 718,919 $8,774,739
Shares issued to shareholders in reinvestment
of distributions 4,398 53,486 35,540 368,292
Shares redeemed (390,689) (4,622,251) (134,643) (1,628,019)
-------- ----------- -------- -----------
Net increase (decrease) (176,533) $(2,054,481) 619,816 $7,515,012
=========== ===========
Shares outstanding:
Beginning of year 733,867 114,051
-------- --------
End of year 557,334 733,867
======== ========
Mid-Cap Value Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold 376,096 $ 3,923,036 614,368 $6,128,387
Shares issued to shareholders in reinvestment
of distributions 0 0 16,378 140,370
Shares redeemed (700,762) (7,228,425) (352,272) (3,421,350)
-------- ----------- -------- -----------
Net increase (decrease) (324,666) $(3,305,389) 278,474 $2,847,407
=========== ===========
Shares outstanding:
Beginning of year 1,104,943 826,469
-------- --------
End of year 780,277 1,104,943
======== ========
Small-Cap Value Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold 328,885 $ 3,944,546 960,420 $10,984,707
Shares issued to shareholders in reinvestment
of distributions 29,546 364,010 7,536 79,279
Shares redeemed (482,778) (5,806,409) (247,483) (2,887,230)
-------- ----------- -------- -----------
Net increase (decrease) (124,347) $(1,497,853) 720,473 $ 8,176,756
=========== ===========
Shares outstanding:
Beginning of year 1,016,524 296,051
--------- ---------
End of year 892,177 1,016,524
========= =========
Fixed Income Fund -- No-Load Class
For the Year For the Year
Ended Ended
June 30, 2000 June 30, 1999
------------------ ------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Shares sold 261,638 $2,549,061 216,961 $ 2,292,899
Shares issued to shareholders in reinvestment
of distributions 39,296 386,400 32,500 340,455
Shares redeemed (213,192) (2,116,270) (38,022) (400,099)
-------- ----------- -------- -----------
Net increase 87,742 $ 819,191 211,439 $ 2,233,255
=========== ===========
Shares outstanding:
Beginning of year 757,468 546,029
--------- ---------
End of year 845,210 757,468
========= =========
</TABLE>
NOTE 7 -- SUBSEQUENT EVENTS
Effective July 3, 2000, the Quaker Investment Trust is offering three
additional portfolios: Quaker Small-Cap Growth Fund (the "Small-Cap Growth
Fund"), Quaker High Yield Fund (the "High Yield Fund") and the Quaker
Government Money Market Fund (the "Government Money Market Fund"). The
Small-Cap Growth Fund and High Yield Fund offer four classes of shares: the
A, B, C and I classes. The Government Money Market Fund offers only the I
class of shares.
On July 7, 2000, as a result of the proxy vote on June 23, 2000, the
outstanding shares of the Core Equity Fund, the Aggressive Growth Fund, the
Large-Cap Value Fund, and the Mid-Cap Value Fund were converted to the A
class of shares. As of August 11, 2000, the shareholders of the Small-Cap
Value Fund and the Fixed Income Fund had not approved the proposed
conversion and remain holders of the No-Load class of shares.
NOTE 8 -- SUBSEQUENT EVENT - LARGE-CAP VALUE FUND
From July 1, 2000 to August 11, 2000, the Large-Cap Value Fund experienced
a large volume of redemptions due to the pending withdrawal of the fund's
sub-advisor, Compu-Val Investments, Inc. Net assets of the Fund decreased
from $6,201,069 to $466,928 at August 11, 2000. Capital shares outstanding
decreased from 557,334 to 41,569 at August 11, 2000. The Board of Trustees
is seeking a new sub-advisor to the Fund, however, all negotiations are in
the preliminary phase. Compu-Val Investments, Inc. has represented to the
Trust that they will continue to actively manage the Large-Cap Value Fund
until such time as they are replaced by another sub-advisor or the Board
makes an alternative determination as to the Large-Cap Value Fund's
continuation as a going concern. As of August 11, 2000, no determination
can be made if management will be successful in replacing the sub-advisor
and restoring the operations of the fund.
INDEPENDENT AUDITOR'S REPORT
August 11, 2000
Shareholders and Board of Trustees
Quaker Investment Trust
Valley Forge, Pennsylvania
We have audited the statements of assets and liabilities, including the
schedules of investments, of the QUAKER INVESTMENT TRUST (comprising,
respectively, the Quaker Core Equity Fund, the Quaker Aggressive Growth
Fund, the Quaker Large-Cap Value Fund, the Quaker Mid-Cap Value Fund, the
Quaker Small-Cap Value Fund and the Quaker Fixed Income Fund) as of June
30, 2000, and the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two years in the
period then ended and the financial highlights for each of the four years
in the period then ended (except for the Quaker Mid-Cap Value Fund which is
for the periods from January 6, 1998, commencement of operations, to June
30, 1998 and for the years ended June 30, 1999 and 2000). The Quaker Core
Equity Fund, the Quaker Aggressive Growth Fund, the Quaker Large-Cap Value
Fund, the Quaker Small-Cap Value Fund and the Quaker Fixed Income Fund
commenced operations on November 25, 1996. These financial statements and
financial highlights are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities
owned as of June 30, 2000, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of each of the respective portfolios constituting the QUAKER INVESTMENT
TRUST as of June 30, 2000, and the results of its operations for the year
then ended, the changes in net assets for each of the two years in the
period then ended, and the selected financial highlights for each of the
four years in the period then ended (except for the Quaker Mid-Cap Value
Fund which is for the periods from January 6, 1998, commencement of
operations, to June 30, 1998 and for the years ended June 30, 1999 and
2000) in conformity with accounting principles generally accepted in the
United States of America.
The accompanying financial statements have been prepared assuming that the
Quaker Large-Cap Value Fund will continue as a going concern. As discussed
in Note 8 to the financial statements, the Quaker Large-Cap Value Fund has
experienced a large volume of redemptions subsequent to June 30, 2000. Net
assets of the Quaker Large-Cap Value Fund have decreased from $6.2 million
to approximately $467,000 as of August 11, 2000 with a corresponding
decrease in capital shares outstanding. The Board of Trustees' plan
regarding this matter has not been finalized as of the date of this report.
These factors raise substantial doubt as to the Quaker Large-Cap Value
Fund's ability to continue as a going concern. Compu-Val Investments,
Inc., the sub-advisor to the Quaker Large-Cap Value Fund, has represented
to the Trust that they will continue to actively manage the Quaker
Large-Cap Value Fund until such time as they are replaced by another
sub-advisor or the Board makes an alternative determination as to the
Quaker Large-Cap Value Fund's continuation as a going concern. The
Trustees' plan with regard to this matter is discussed in Note 8. The
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
/S/Goldenberg Rosenthal, LLP
Jenkintown, Pennsylvania
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