[DESCRIPTION] ANNUAL REPORT TO THE SHAREHOLDERS
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ANNUAL REPORT
For the Year Ended
June 30, 1998
AMTRUST VALUE FUND
TABLE OF CONTENTS
2 Performance History of Fund Performance
3 Financial Highlights Detailed Per Share Values plus key ratios
4 Financial Statements Statements of Assets & Liabilities,
Operations, & Changes in Net Assets.
6 Notes Footnotes to the Financial Statements
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Performance Data *
Total Return Avg Annual Avg Annual
1 Yr Ended Return last Return
6/30/98 3 yrs Inception(d)
AmTrust Value Fund.(a)......... (18.62)% ( 7.77)% ( 2.90)%
Russell 2000 Small Cap Index(b) 16.51 % 18.84 % 15.29 %
S&P 500 Index(c)............... 30.09 % 30.14 % 23.17 %
(a) The Fund began on August 19, 1993. Performance figures included any
applicable dividends.
(b) The Russell 2000 is an unmanaged index of approximately 2000 small
cap stocks, ranging in value of shares, from $50 million to $600
million. Since the Fund is a "small cap fund", management of the
Fund feels that Fund performance should more appropriately be
compared to the Russell 2000 (Return is the price percentage change
of the index during the period, including any applicable dividends).
(c) The S&P 500 Index is an unmanaged group of stocks considered to be
representative of the stock market in general(Return includes any
applicable dividends).
(d) Average Annual Return from August 31, 1993 until June 30, 1998, including
any applicable dividends.
* Past Performance is no guarantee of future results.
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FINANCIAL HIGHLIGHTS
For the Fiscal Year Ended
6/30/98 6/30/97
(Unaudited)
Net Asset Value, Beginning of Period $ 9.40 $ 10.75
Income From Investment Operations:
Net investment income (loss) (0.07) (0.13)
Net realized & unrealized gains (losses)
on securities (1.68) (0.87)
------ ------
Total from investment operations (1.75) (1.00)
Less Distributions:
Distributions from realized gains (0.00) (0.35)
------ ------
Net Asset Value, End of Period $ 7.65 $ 9.40
====== ======
Total return for the period (18.62) % (10.75) %
Ratios/Supplemental Data
Net assets at the end of the period $ 0.00 $745,668.95
Ratio of expenses to average net assets 1.61 1.60
Ratio of net investment income (loss)
to avg net assets (1.05) (1.32)
Portfolio turnover rate 69 % 33 %
Average commission rate paid per share .0651 .0576
Shares outstanding at end of period 0.000 79,357.902
The accompanying notes are an integral part of these
financial statements
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Financial Statements
Statement of Assets and Liabilities
As of June 30, 1998
(Unaudited)
Assets:
Investments at market Value (Cost $ 0.00) $ 0.00
Accounts Receivables 0.00
Cash 0.00
-------
Total Assets 0.00
-------
Liabilities:
Accounts Payable - Mangement Fees 0.00
Accounts Payable - Custodial Fees 0.00
-------
Total Liabilities 0.00
-------
Net Assets(equivalent to $0.00 per share, based on
0.000 shares outstanding) $ 0.00
=======
Net Asset Value Per Share
(Last redemption net asset value per share) $ 7.65
=======
Net Assets Consist of:
Capital Stock, $0.001 par value; 0.000 shares issued
& outstanding $ 0.00
Paid-in Capital 183,408.66
Retained Earnings - Unappropriated (183,408.66)
----------
Net assets applicable to shares outstanding $ 0.00
=======
The accompanying notes are an integral part of these
financial statements
- -----------------------------------------------------------------------
Statement of Operations
For the Year Ended June 30, 1998
(Unaudited)
Investment income:
Interest income $ 147.56
Dividend income 2,860.91
--------
Total investment income $3,008.47
Operating expenses:
Management fees (Note 2) 8,639.12
Bad Debt 45.08
--------
Total operating expenses 8,684.20
--------
Net investment income (loss) ( 5,675.73)
Net realized and unrealized gain (loss)
on securities: (Note 5)
Realized Loss on sale of securities (122,296.41)
Change in unrealized appreciation 9,038.99
-----------
Net realized and unrealized gain on securities (113,257.42)
------------
Net increase in net assets resulting from operations $ (118,933.15)
===========
The accompanying notes are an integral part of these
financial statements
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Statement of Changes in Net Assets
For the Years Ended June 30, 1998, 1997 and 1996
(Unaudited)
Increase(Decrease) in Net Assets: 06/30/98 06/30/97 06/30/96
Operations:
Net investment income (loss) ( 5,675.73) ( 10,006.07) ( 5,076.21)
Net realized gain(loss)
on securities (122,296.41) (133,673.40) 183,502.21
Net change in unrealized
appreciation or (depreciation)
in securities 9,038.99 64,006.73 (136,820.19)
----------- ---------- ------------
Net increase in net assets
from operations (118,933.15) (79,672.74) 41,605.81
Distributions to shareholders:
From net investment income 0.00 0.00 0.00
From net realized gains 0.00 ( 26,472.98) ( 51,711.04)
-------- ------------ ------------
Net decrease from Distributions 0.00 ( 26,427.98) ( 51,711.04)
From Capital Share Transactions: (Note 4)
Proceeds from shares issued 29,647.38 129,863.08 165,861.09
Reinvestment of dividends and
capital gains distributions 0.00 26,427.98 51,711.04
Payments for shares redeemed (656,383.18) (136,153.16) (100,598.94)
------------ ------------ ------------
Net From Fund Share
Transactions (626,735.80) 20,137.90 116,973.19
------------ --------- ----------
Total Increase(Decrease)
in Assets (745,668.95) (85,962.82) 106,867.96
Net Assets:
Beginning of Fiscal Year 745,668.95 831,631.77 724,763.81
---------- ---------- ----------
End of Year 0.00 745,668.95 831,631.77
========= ========== ==========
The accompanying notes are an integral part of these
financial statements
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NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: Significant Accounting Policies
AmTrust Investors, Inc. (the "Fund") was incorporated under the laws of
the State of Texas as of January 25, 1993 as an open-end diversified
management company under the Investment Company Act of 1940. The Fund's
inception date was August 19, 1993.
The following is a summary of significant accounting policies followed
by the Fund in the preparation of its financial statement and
highlights.
SECURITY VALUATION: Securities listed on a stock exchange for which
market quotations are readily available are valued at the closing prices
on the date of valuation, or, if no such closing price is available, at
the last bid price quoted on such day. The value of securities and
other assets for which no market quotations are readily available are
determined in good faith at fair value using estimation methods approved
by the Board of Directors. Short-term securities that mature in sixty
(60) days or less are valued at amortized cost, which approximates
market value, unless this method does not represent fair value.
FEDERAL INCOME TAXES: The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to
regulated investment companies and to distribute all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund intends to
distribute to shareholders at least annually substantially all of its
net income from dividends and interest payments and substantially all of
its net realized capital gains, if any. Dividends to shareholders are
recorded on the ex-dividend date.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: The Fund follows industry
practice and records security transactions on the trade date. Dividend
income is recognized on an accrual basis. Discounts and premiums on
securities purchased are amortized over the life of the respective
ecurities.
NOTE 2: Investment Advisory Services
The Fund has entered into an Investment Advisory Agreement with AmTrust
Capital Resources, Inc. for investment management that provides for the
payment of a monthly fee, calculated daily, at the current annual rate
of one and one-half percent (1.5%) of the previous thirty-day moving
average of the daily net assets of the Fund. The Current rate will
remain in effect until the Fund's thirty-day moving average exceeds two
million dollars, at which time the rate will drop by .05%. The rate
will continue to drop by .05% for specified dollar increases in the
Fund's thirty-day moving average until it's greater than ten million
dollars, at which time the rate will be fixed at 1.25% of the Fund's
thirty-day moving average. Certain officers and directors of the Fund
are also officers, directors and shareholders of the Investment Advisor.
The Investment Advisor was paid $8,639.12 in management fees for the
period ended June 30, 1998.
NOTE 3: Distributions to Shareholders
On December 31, 1996, a distribution of $.3538 per share aggregating
$26,427.98 was declared from net realized gains from investment
transactions (including $.2871 per share applicable to short-term gains
that are taxable to shareholders as ordinary income dividends)
accumulating through October 31, 1996. The dividend was paid on
December 31, 1996, to shareholders of record on December 31, 1996. The
were no dividend or capital gain distributions during the fiscal year
ended June 30, 1998.
NOTE 4: Capital Share Transactions
As of June 30, 1998, there were 10,000,000 shares of $.001 par value
capital stock authorized and 886,031.341 unissued shares and no shares
outstanding. Transactions in capital stock for the years ended June 30,
1998 and 1997 were as follows:
Fiscal Year Ended Fiscal Year Ended
June 30, 1998 June 30, 1997
Total Shares Dollar Amount Total Shares Dollar Amount
(Unaudited)
Shares Issued 3,332.296 $29,647.38 13,212.845 $129,863.08
Shares Issued from
reinvestment
of dividends 0.000 0.00 2,750.041 26,427.98
Shares Redeemed (82,690.198) (656,383.18) ( 13,994.606) 136,153.16)
---------- ---------- ---------- ----------
Net Increase
(Decrease) 79,357.902 $(626,735.80) 1,968.280 $ 20,137.90
=========== ============ =========== ==========
NOTE 5: Investment Transactions
Purchases and sales of investment securities were $355,033.89 and
$981,558.94, respectively, for common stocks. Realized capital gains
were $203,895.76. Realized capital losses were $326,192.17. Net
realized losses on the sale of investments (cost basis) for the period
ended June 30, 1998, was $122,296.41. This amount represents the net
decrease in value of investments held during the year. The net realized
losses on investments was entirely from long transactions. As of June
30, 1998, there was no unrealized appreciation or depreciation of
securities since the fund held no securities or assets at the end of the
year. There are no undistributed net realized gains on investment
transactions as of June 30, 1998.
CORPORATE HEADQUARTERS:
109-A Teakwood
Victoria, Texas 77901
(512) 575-5254
BOARD OF DIRECTORS(INTERIM):
Jimmy Baker, Interim President
INVESTMENT ADVISOR:
AmTrust Capital Resources, Inc.
109-A Teakwood
Victoria, Texas 77901
TRANSFER & DIVIDEND PAYING AGENT:
AmTrust Capital Resources, Inc.
INDEPENDENT AUDITOR:
Michael S. Klingle
119 Amhurst
Victoria, Texas 77904
LEGAL COUNSEL:
Mickey Pachta
210 Brocton
Victoria, Texas 77904
RETIREMENT ACCOUNT TRUSTEE:
Sterling Trust Company
PO Box 2526
Waco, Texas 76702
