LEEB
PERSONAL
FINANCE TM
INVESTMENT
TRUST
THE LEEB PERSONAL
FINANCE TM FUND
ANNUAL REPORT
June 30, 1996
LEEB
PERSONAL
FINANCE TM
INVESTMENT
TRUST
INVESTMENT ADVISER
LEEB INVESTMENT ADVISORS
1101 King Street, Suite 400
Alexandria, VA 22314
UNDERWRITER
BRIMBERG & CO., L.P.
45 Rockefeller Plaza, Suite 2570
New York, New York 10111
TRANSFER AGENT
MFG SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICE
Nationwide: 1 (800) 545-0103
Cincinnati: (513) 629-2070
This report is authorized for distribution
only when it is accompanied or preceded
by a current prospectus of the Fund.
<PAGE>
LETTER TO SHAREHOLDERS AUGUST 7, 1996
===============================================================================
Dear Fellow Shareholder,
I am pleased to bring you The Leeb Personal FinanceTM Fund's Annual
Report for the fiscal year ended June 30, 1996.
The total return for the Fund for the twelve months ended June 30,
1996 was 17.1% versus 26.0% for the S&P 500 Index.
In accordance with the Fund's objective of conservative long-term
capital appreciation, the Fund performed well over the past twelve months.
Although the stock market has been volatile in 1996, the Fund managed to
weather the storm. The market decline in the summer of 1996 created a buying
opportunity so we put a portion of the Fund's cash to work in stocks
possessing excellent fundamentals.
The Fund has steadily increased its equity exposure in recent months,
as we believe that the market can still move higher. The economy remains
strong with no signs of a recession. Interest rates, although volatile, are
not in a dramatic uptrend, and inflation still remains under control. If any
of these change, we would have to reconsider things with a view toward taking
a more conservative stance.
Sincerely,
/s/ Stephen Leeb
Stephen Leeb
Chief Investment Officer
<TABLE>
THE LEEB PERSONAL FINANCE TM FUND
Comparison of the Change in Value of a $10,000 Investment in the Leeb
Personal Finance TM Fund and the Standard & Poor's 500 Index
<CAPTION>
STANDARD & POOR'S 500 INDEX: THE LEEB PERSONAL FINANCE TM FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
<S> <C> <C> <C> <C> <C>
10/21/91 $10,000 10/21/91 $10,000
12/31/91 7.00% $10,700 12/31/91 4.23% $10,423
03/31/92 -2.53% $10,429 03/31/92 -0.10% $10,413
06/30/92 1.90% $10,627 06/30/92 1.32% $10,550
09/30/92 3.15% $10,962 09/30/92 2.80% $10,846
12/31/92 5.03% $11,514 12/31/92 2.08% $11,071
03/31/93 4.36% $12,016 03/31/93 1.30% $11,215
06/30/93 0.48% $12,069 06/30/93 0.46% $11,266
09/30/93 2.58% $12,381 09/30/93 1.20% $11,401
12/31/93 2.32% $12,668 12/31/93 -0.11% $11,389
03/31/94 -3.79% $12,188 03/31/94 -0.09% $11,378
06/30/94 0.42% $12,239 06/30/94 -2.47% $11,097
09/30/94 4.88% $12,836 09/30/94 1.07% $11,215
12/31/94 -0.02% $12,834 12/31/94 -1.59% $11,038
03/31/95 9.74% $14,084 03/31/95 5.38% $11,631
06/30/95 9.55% $15,429 06/30/95 7.04% $12,450
09/30/95 7.95% $16,655 09/30/95 2.42% $12,751
12/31/95 6.02% $17,658 12/31/95 7.52% $13,711
03/31/96 5.37% $18,605 03/31/96 1.92% $13,974
06/30/96 4.49% $19,440 06/30/96 4.34% $14,579
The Leeb Personal Finance TM Fund
Average Annual Total Returns
1 year 17.10%
Since Inception* 8.37%
Past performance is not predictive of future performance.
*Initial public offering of shares was October 21, 1991.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE LEEB PERSONAL FINANCETM FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
==============================================================================================================
<S> <C>
ASSETS
Investments in securities:
At amortized cost (original cost $19,723,186)............................................ $ 19,723,186
===============
At market value (Note 1)................................................................. $ 22,808,348
Investments in repurchase agreements (Note 1)............................................... 4,624,000
Cash ....................................................................................... 1,520
Receivable for securities sold.............................................................. 611,062
Receivable for capital shares sold.......................................................... 16,588
Dividends and interest receivable........................................................... 29,396
Organization expenses, net (Note 1)......................................................... 2,534
Other assets................................................................................ 11,482
---------------
TOTAL ASSETS............................................................................. 28,104,930
---------------
LIABILITIES
Payable for capital shares redeemed......................................................... 44,757
Dividends payable........................................................................... 78,013
Payable to affiliates (Note 3).............................................................. 28,655
Other accrued expenses and liabilities...................................................... 8,220
---------------
TOTAL LIABILITIES........................................................................ 159,645
---------------
NET ASSETS ................................................................................. $ 27,945,285
===============
Net assets consist of:
Capital shares.............................................................................. $ 24,878,760
Distributions in excess of net realized gains (Note 1)...................................... ( 18,637)
Net unrealized appreciation on investments.................................................. 3,085,162
---------------
Net assets.................................................................................. $ 27,945,285
===============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value) (Note 4)................................................................... 2,479,333
===============
Net asset value, offering price and redemption price per share (Note 1)..................... $ 11.27
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE LEEB PERSONAL FINANCETM FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1996
===================================================================================================================
<S> <C>
INVESTMENT INCOME
Interest................................................................................. $ 574,629
Dividends................................................................................ 279,541
---------------
TOTAL INVESTMENT INCOME................................................................ 854,170
---------------
EXPENSES
Investment advisory fees (Note 3)........................................................ 304,878
Professional fees........................................................................ 86,786
Administrative services fees (Note 3).................................................... 60,582
Shareholder services and transfer agent fees (Note 3).................................... 48,613
Accounting services fees (Note 3)........................................................ 40,800
Postage and supplies..................................................................... 21,301
Trustees' fees and expenses.............................................................. 17,621
Insurance expense........................................................................ 15,200
Registration fees........................................................................ 12,100
Amortization of organization expenses (Note 1)........................................... 10,136
Reports to shareholders.................................................................. 9,055
Custodian fees........................................................................... 7,528
Other expenses........................................................................... 76
---------------
TOTAL EXPENSES.................................................................... 634,676
Fees waived by the Adviser (Note 3)...................................................... ( 177,359)
---------------
NET EXPENSES...................................................................... 457,317
---------------
NET INVESTMENT INCOME ...................................................................... 396,853
---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions............................................ 4,277,995
Net change in unrealized appreciation/depreciation on investments........................ 133,795
---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ........................................... 4,411,790
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................. $ 4,808,643
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE LEEB PERSONAL FINANCETM FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1996 AND 1995
===================================================================================================================
YEAR YEAR
ENDED ENDED
JUNE 30, JUNE 30,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................................. $ 396,853 $ 932,415
Net realized gains (losses) from security transactions................. 4,277,995 ( 414,008)
Net change in unrealized appreciation/depreciation on investments...... 133,795 3,662,740
--------------- ---------------
Net increase in net assets from operations................................ 4,808,643 4,181,147
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............................................. ( 399,897) ( 937,468)
From net realized gains from security transactions..................... ( 3,618,910) --
In excess of net realized gains from security transactions............. ( 18,637) ( 247,953)
--------------- ---------------
Decrease in net assets from distributions to shareholders................. ( 4,037,444) ( 1,185,421)
--------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold.............................................. 1,464,215 2,545,190
Net asset value of distributions to shareholders paid in
additional shares.................................................... 3,933,064 1,142,780
Payments for shares redeemed........................................... ( 11,199,062) ( 19,230,360)
--------------- ---------------
Net decrease in net assets from capital share transactions................ ( 5,801,783) ( 15,542,390)
--------------- ---------------
TOTAL DECREASE IN NET ASSETS ............................................. ( 5,030,584) ( 12,546,664)
NET ASSETS:
Beginning of year...................................................... 32,975,869 45,522,533
--------------- ---------------
End of year............................................................ $ 27,945,285 $ 32,975,869
=============== ===============
UNDISTRIBUTED NET INVESTMENT INCOME ...................................... $ -- $ 3,044
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE LEEB PERSONAL FINANCETM FUND
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1994 1993 1992(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 11.17 $ 10.29 $ 10.84 $ 10.36 $ 10.00
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.17 0.28 0.19 0.15 0.16
Net realized and unrealized
gains (losses) on investments.............. 1.72 0.95 ( 0.35) 0.55 0.51
---------- ---------- ---------- ---------- ----------
Total from investment operations................ 1.89 1.23 ( 0.16) 0.70 0.67
---------- ---------- ---------- ---------- ----------
Dividends and distributions:
Dividends from net investment income(B) ..... ( 0.17) ( 0.28) ( 0.19) ( 0.15) ( 0.16)
Distributions from net realized gains(B) .... ( 1.61) -- ( 0.20) ( 0.07) ( 0.15)
In excess of net realized gains.............. ( 0.01) ( 0.07) -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions............... ( 1.79) ( 0.35) ( 0.39) ( 0.22) ( 0.31)
---------- ---------- ---------- ---------- ----------
Net asset value at end of period................ $ 11.27 $ 11.17 $ 10.29 $ 10.84 $ 10.36
========== ========== ========== ========== ==========
Total return.................................... 17.10% 12.20% ( 1.50%) 6.79% 7.94% (D)
========== ========== ========== ========== ==========
Net assets at end of period (000's)............. $27,945 $ 32,976 $ 45,523 $ 58,955 $ 28,340
========== ========== ========== ========== ==========
Ratio of expenses to average net assets(C) .... 1.50% 1.50% 1.50% 1.50% 1.47% (D)
Ratio of net investment income to average
net assets................................... 1.30% 2.36% 1.65% 1.60% 2.21% (D)
Portfolio turnover rate......................... 115% 163% 143% 83% 75% (D)
<FN>
(A)Represents the period from the date of public offering (October 21, 1991)
through June 30, 1992. No income was earned or expenses incurred from the
start of business through the date of public offering.
(B)For the period ended June 30, 1992, the per share data was calculated using
average shares outstanding throughout the period, whereas for subsequent
periods, the per share data was calculated based upon actual distributions.
For the period ended June 30, 1992, actual distributions per share from net
investment income and from net realized gains from security transactions
amounted to $.11 and $.08, respectively.
(C)Ratios of expenses to average net assets assuming no waiver of fees or
reimbursement of expenses by the Adviser was 2.10%, 1.98%, 1.81%, 1.95%, and
2.71%(D) for the periods ended June 30, 1996, 1995, 1994, 1993 and 1992,
respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE LEEB PERSONAL FINANCE TM FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
===================================================================================================================
MARKET
COMMON STOCK -- 81.6% SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE & INSURANCE -- 16.1%
Allmerica Financial Corp...................................................... 35,000 $ 1,041,250
American International Group, Inc............................................. 6,400 631,200
Federal Home Loan Mortgage Corp............................................... 7,500 641,250
Federal National Mortgage Assoc............................................... 19,000 636,500
ITT Hartford Group Inc........................................................ 29,000 1,544,250
-------------
$ 4,494,450
-------------
CONSUMER PRODUCTS -- 11.5%
Coca-Cola Co.................................................................. 8,000 $ 391,000
Cone Mills Corp.*............................................................. 80,000 900,000
The Walt Disney Co............................................................ 20,000 1,257,500
Sony Corp. - ADR.............................................................. 10,000 661,250
-------------
$ 3,209,750
-------------
ENERGY & RESOURCES -- 9.4%
Apache Corp................................................................... 24,000 $ 789,000
Chevron Corp.................................................................. 20,000 1,180,000
Oryx Energy Co.*.............................................................. 40,000 650,000
-------------
$ 2,619,000
-------------
OIL & GAS -- EQUIPMENT & SERVICES -- 6.2%
Global Marine, Inc.*.......................................................... 40,000 $ 555,000
Rowan Companies, Inc.*........................................................ 40,000 590,000
Schlumberger N.V.............................................................. 7,000 589,750
-------------
$ 1,734,750
-------------
METALS & MINING -- 5.7%
Horsham Corp.................................................................. 42,000 $ 582,750
LTV Corp.*.................................................................... 46,000 523,250
Newmont Mining Corp........................................................... 10,000 493,750
-------------
$ 1,599,750
-------------
HEALTH PRODUCTS/CARE -- 5.0%
Thermotrex Corp.*............................................................. 27,300 $ 1,344,525
Trex Medical Corp.*........................................................... 2,730 51,529
-------------
$ 1,396,054
-------------
REAL ESTATE -- 4.1%
BRE Properties, Inc........................................................... 42,000 $ 819,000
New Plan Realty Trust......................................................... 15,000 316,875
-------------
$ 1,135,875
-------------
TELEPHONE COMMUNICATIONS -- 4.0%
Telephone & Data Systems...................................................... 25,000 $ 1,125,000
-------------
COMMERCIAL SERVICES -- 3.1%
Sotheby's Holdings - Class A.................................................. 60,000 $ 870,000
-------------
<PAGE>
<CAPTION>
THE LEEB PERSONAL FINANCETM FUND (CONTINUED)
===================================================================================================================
MARKET
COMMON STOCK -- 81.6% SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTO & TRUCK EQUIPMENT -- 3.0%
Wabash National Corp.......................................................... 47,500 $ 843,125
-------------
ENGINEERING & CONSTRUCTION -- 2.3%
Fluor Corp.................................................................... 10,000 $ 653,750
-------------
BUILDING MATERIALS -- 2.2%
Royal Plastics Group Ltd...................................................... 40,000 $ 615,000
-------------
COMPUTERS -- 2.1%
Sun Microsystems, Inc.*....................................................... 10,000 $ 588,750
-------------
MULTI-INDUSTRY -- 1.6%
General Electric Co........................................................... 5,000 $ 432,500
-------------
AEROSPACE/DEFENSE -- 1.2%
Boeing Co..................................................................... 4,000 $ 348,500
-------------
AUTOMOTIVE -- 1.1%
Chrysler Corp................................................................. 5,000 $ 310,000
-------------
COMPUTER SOFTWARE -- 1.1%
Microsoft Corp.*.............................................................. 2,500 $ 300,313
-------------
PUBLISHING/PRINTING -- 1.0%
Time Warner, Inc.............................................................. 7,000 $ 274,750
-------------
ELECTRONICS/SEMICONDUCTORS -- 0.9%
Intel Corp.................................................................... 3,500 $ 257,031
-------------
TOTAL COMMON STOCK (COST $19,723,186) ........................................ $ 22,808,348
-------------
<PAGE>
<CAPTION>
===================================================================================================================
FACE MARKET
REPURCHASE AGREEMENTS(1) -- 16.6% AMOUNT VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Fifth Third Bank, 5.20%, dated 06/28/96, due 07/01/96,
repurchase proceeds $4,626,004................................................ $ 4,624,000 $ 4,624,000
-------------- -------------
TOTAL REPURCHASE AGREEMENTS .................................................. $ 4,624,000 $ 4,624,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 98.2% ............... $ 27,432,348
OTHER ASSETS AND LIABILITIES, NET-- 1.8% ..................................... 512,937
-------------
NET ASSETS-- 100% ............................................................ $ 27,945,285
=============
<FN>
*Non-income producing security.
(1)Repurchase agreements are fully collateralized by U.S. Government
obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
THE LEEB PERSONAL FINANCETM FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
==============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Leeb Personal FinanceTM Investment Trust (the Trust) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Trust was organized as an Ohio business
trust on August 19, 1991. The Trust currently offers one series of shares to
investors: The Leeb Personal FinanceTM Fund (the Fund). The Trust commenced
operations on September 13, 1991 when the general partners of Leeb Investment
Advisors (the Adviser) and a qualified retirement plan sponsored by one such
general partner purchased the initial 10,000 shares of the Fund at $10 per
share. The public offering of shares commenced on October 21, 1991.
The Fund seeks long-term capital appreciation consistent with the preservation
of capital. Earning current income from dividends, interest and short-term
capital gains is a secondary objective.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued as of the
close of the regular session of trading on the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Portfolio securities listed on stock
exchanges and securities traded in the over-the-counter market are valued at
the last sale price as of the close of business on the day the securities are
being valued. Securities not traded on a particular day, or for which the last
sale price is not readily available, are valued at the closing bid price
quoted by brokers that make markets in the securities. U.S. Government
obligations and corporate bonds are valued at their most recent bid prices as
obtained from one or more of the major market makers for such securities.
Repurchase agreements, which are collateralized by U.S. Government
obligations, are valued at cost which, together with accrued interest,
approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Fund's custodian, at the
Federal Reserve Bank. At the time the Fund enters into a repurchase agreement,
the seller agrees that the value of the underlying securities, including
accrued interest, will be equal to or exceed the face amount of the repurchase
agreement. The Fund enters into repurchase agreements only with institutions
deemed to be creditworthy by the Adviser, including banks having assets in
excess of $10 billion and primary U.S. Government securities dealers.
Share valuation -- The net asset value of the Fund is calculated daily by
dividing the total value of the Fund's assets, less liabilities, by the number
of shares outstanding. The offering and redemption price per share are equal
to the net asset value per share.
Investment income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
<PAGE>
Distributions to shareholders -- Dividends arising from net investment income
are declared and paid semi-annually. Net realized short-term capital gains, if
any, may be distributed throughout the year and net realized long-term capital
gains, if any, are distributed at least once each year. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
Organization expenses -- Expenses of organization, net of certain expenses
paid by the Adviser, have been capitalized and are being amortized on a
straight-line basis over five years.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which the Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during
the twelve months ended October 31) plus undistributed amounts from prior
years.
<PAGE>
<TABLE>
The following information is based upon federal income tax cost of portfolio
investments (excluding repurchase agreements) as of June 30, 1996:
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation............................................................... $ 3,422,054
Gross unrealized depreciation............................................................... ( 355,529)
---------------
Net unrealized appreciation................................................................. $ 3,066,525
===============
Federal income tax cost..................................................................... $ 19,741,823
===============
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The differences between financial reporting and federal income tax cost
amounts is due to certain timing differences in recognizing capital losses
under generally accepting accounting principles and tax regulations.
2. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investment securities,
other than short-term investments, amounted to $31,092,284 and $43,820,183,
respectively, for the year ended June 30, 1996.
<PAGE>
3. TRANSACTIONS WITH AFFILIATES
The Chairman of the Board of the Trust is the President and controlling
shareholder of one of two general partners of the Adviser. The President of
the Trust is the President and controlling shareholder of the other general
partner of the Adviser. The Executive Vice President of the Trust is a general
partner of Brimberg & Co., L.P. (Brimberg), the Fund's principal underwriter.
Certain officers of the Trust are officers of MGF Service Corp. (MGF), the
administrative services agent, shareholder servicing and transfer agent, and
accounting services agent for the Fund.
ADVISORY AGREEMENT
The Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. The Fund pays the Adviser a fee, computed and accrued
daily and paid monthly, at an annual rate of 1% of the Fund's average daily
net assets. In order to reduce the operating expenses of the Fund, the Adviser
waived $177,359 of its investment advisory fees for the year ended June 30,
1996.
SEC ADMINISTRATIVE PROCEEDING
On May 2, 1995, the Securities and Exchange Commission (the SEC) instituted
administrative proceedings against, among other parties, the Adviser and
certain officers of the Adviser who are also officers and members of the Board
of Trustees of the Fund. As part of these proceedings, the SEC alleged that
the parties carried out a marketing strategy for the Fund that allegedly
defrauded or operated as a potential fraud on actual and potential Fund
investors. The Fund was not a party to the administrative proceeding.
The administrative proceeding between the SEC and the parties was settled in
January of 1996 with no material impact on the financial position or results
of operations of the Fund.
UNDERWRITING AGREEMENT
Under the terms of an Underwriting Agreement between the Trust and Brimberg,
Brimberg serves as the exclusive underwriter of the Fund's shares. Brimberg
receives no direct compensation from the Fund for serving as underwriter but
executes securities transactions for the Fund. For the year ended June 30,
1996, Brimberg earned $120,408 of commissions as broker on trades of the
Fund's portfolio securities.
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement between the Trust and
MGF, MGF supplies non-investment related statistical and research data,
internal regulatory compliance services and executive and administrative
services for the Fund. MGF supervises the preparation of tax returns, reports
to shareholders of the Fund, reports to and filings with the Securities and
Exchange Commission and state securities commissions, and materials for
meetings of the Board of Trustees. For the performance of these administrative
services, MGF receives a monthly fee based on the Fund's average daily net
assets.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and MGF, MGF maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of the Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, MGF receives a monthly fee based on the
number of shareholder accounts in the Fund. In addition, the Fund pays
out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and
MGF, MGF calculates the daily net asset value per share and maintains the
financial books and records of the Fund. For these services, MGF receives a
monthly fee from the Fund.
<PAGE>
<TABLE>
4. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares as shown in the Statements of Changes
in Net Assets are the result of the following capital share transactions:
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
JUNE 30, JUNE 30,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold............................................................... 123,208 243,083
Distributions to shareholders paid in additional shares................... 344,965 109,427
Shares redeemed........................................................... ( 941,635) ( 1,825,293)
--------------- ---------------
Net decrease in shares outstanding........................................ ( 473,462) ( 1,472,783)
Shares outstanding, beginning of year..................................... 2,952,795 4,425,578
--------------- ---------------
Shares outstanding, end of year........................................... 2,479,333 2,952,795
=============== ===============
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
5. PROPOSED REORGANIZATION
The Board of Trustees have approved and will be recommending to the
shareholders the approval of an Agreement and Plan of Reorganization (the
Plan) pursuant to which the Fund will be reorganized into the Leeb Value Fund
(the Value Fund), a new series of the Accolade Funds, a Massachusetts business
trust. The Value Fund will have the same investment objectives and policies as
the Fund. If the Plan is approved by shareholders constituting a majority of
outstanding shares, shareholders will each receive shares of the Value Fund
equal to the value of their Fund shares upon consumation of the
reorganization.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
==============================================================================
Logo: Arthur Andersen LLP
To the Shareholders and Board of Trustees
of Leeb Personal FinanceTM Investment Trust:
We have audited the accompanying statement of assets and liabilities of The
Leeb Personal FinanceTM Fund of the Leeb Personal FinanceTM Investment Trust
(an Ohio business trust), including the portfolio of investments, as of June
30, 1996, the related statement of operations for the year then ended, and the
statements of changes in net assets and the financial highlights for the
periods indicated thereon. These financial statements and financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1996, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Leeb Personal FinanceTM Fund of the Leeb Personal FinanceTM Investment Trust
as of June 30, 1996, the results of its operations for the year then ended,
and the changes in its net assets and the financial highlights for the periods
indicated thereon, in conformity with generally accepted accounting
principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio,
July 19, 1996
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<NAME> LEEB PERSONAL FINANCE INVESTMENT TRUST
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