SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | |
Pre-Effective Amendment No. | |
Post-Effective Amendment No. 5 |X|
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT | |
OF 1940
Amendment No. 6 |X|
(Check appropriate box or boxes.)
ANALYSTS INVESTMENT TRUST - File Nos. 33-64370 and 811-7778
9200 Montgomery Road, Bldg. D, Suite 13A, Cincinnati, Ohio 45242
(Address of Principal Executive Offices) Zip Code
Registrant's Telephone Number, including Area Code: (513) 984-3377
David Lee Manzler, Jr., 9200 Montgomery Road, Bldg. D, Suite 13A,
Cincinnati, Ohio 45242
(Name and Address of Agent for Service)
Release Date: November 26, 1996
It is proposed that this filing will become effective:
| | immediately upon filing pursuant to paragraph (b)
| | on (date) pursuant to paragraph (b)
|X| 60 days after filing pursuant to paragraph (a)(1)
| | on (date) pursuant to paragraph (a)(1)
| | 75 days after filing pursuant to paragraph (a)(2)
| | on (date) pursuant to paragraph (a)(2) of Rule 485.
Pursuant to Rule 24f-2, the Registrant hereby declares that an
indefinite number and amount of its securities are being
registered by this Registration Statement.
Registrant continues its election made by the filing of its
Registration Statement, effective August 25, 1993, to register an
indefinite number and amount of securities under Rule 24f-2 of the
Investment Company Act of 1940. Registrant anticipates that it will
file, pursuant to paragraph b(1) of Rule 24f-2, Form 24F-2 for the
fiscal year ended July 31, 1996 on or before September 27, 1996.
<PAGE>
ANALYSTS INVESTMENT TRUST
CROSS REFERENCE SHEET
FORM N-1A
ITEM SECTION IN EACH PROSPECTUS
1.............................. Cover Page
2.............................. Fund Expenses
3.............................. Financial Highlights
4.............................. Operation of the Funds, Investment
Objectives and Strategies,
Investment Policies and Techniques,
General Information;
5.............................. Operation of the Funds, Trustees
and Officers
5a............................. Investment Performance
6.............................. Operation of the Funds, Cover Page,
Dividends and Distributions, Taxes,
General Information
7.............................. Operation of the Funds, How to
Invest in Each Fund, Share Price
Calculation, Exchange Privilege
8.............................. Redemption of Shares
9.............................. None
14.............................. Trustees and Officers
15.............................. General Information
16.............................. Trustees and Officers; Operation of
the Funds
SECTION IN STATEMENT OF
ITEM ADDITIONAL INFORMATION
10.............................. Cover Page
11.............................. Table of Contents
12.............................. None
13.............................. Additional Information About Fund
Investments, Investment
Limitations, State Restrictions
14.............................. The Investment Adviser, Trustee
Compensation
15.............................. The Investment Adviser
16.............................. The Investment Adviser, Custodian
and Transfer Agent, Accountants
17.............................. Portfolio Transactions and
Brokerage
18.............................. Description of the Trust
19.............................. Determination of Share Price
20.............................. None
21.............................. The Investment Adviser
22.............................. Investment Performance
23.............................. Independent Auditors Report,
Financial Statements
<PAGE>
ANALYSTS INVESTMENT TRUST
Prospectus dated November 26, 1996
Analysts Investment Trust is a family of two no-load mutual funds that offers
you a variety of investment opportunities. The Funds and their specific
investment objectives are listed below.
NO-LOAD MUTUAL FUNDS
The Analysts Funds are "no-load" investments which means there are no
sales charges or commissions. In addition, there are no deferred sales charges
which are borne by the shareholders. The minimum initial investment for each
fund is $1,000 ($25 for tax sheltered retirement plans).
Analysts Stock Fund
The investment objective of the Analysts Stock Fund is long term
capital appreciation. The Fund seeks to achieve its objective by investing
primarily in a broad range of common stocks believed by its Adviser, Equity
Analysts Inc., to have above average prospects for appreciation.
Analysts Fixed Income Fund
The investment objective of the Fixed Income Fund is a high level of
income over the long term consistent with preservation of capital. The Fund
seeks to achieve its objective by investing primarily in a broad range of fixed
income securities.
This prospectus gives you information about Analysts Investment Trust
that you should be aware of before investing. Please read and retain this
prospectus for future reference. Additional information is included in the
Statement of Additional Information dated November 26, 1996, and filed with the
Securities and Exchange Commission. It is incorporated into this prospectus by
reference. To obtain a copy without charge, call or write:
Analysts Investment Trust
9200 Montgomery Road
Building D, Suite 13A
Cincinnati, Ohio 45242
(513) 984-3377
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
FUND EXPENSES
The purpose of the table below is to assist shareholders in
understanding the costs and expenses that shareholders in each Fund will bear
directly or indirectly. The expense information is based on operating expenses
incurred during the most recent fiscal year. The expenses are expressed as a
percentage of average net assets. The Example should not be considered a
representation of future Fund performance or expenses, both of which may vary.
Shareholders should be aware that the Funds are no load funds and,
accordingly, a shareholder does not pay any sales charge or commission upon
purchase or redemption of shares of the Funds. Unlike most other mutual funds,
the Funds do not pay for transfer agency, pricing, custodial, auditing or legal
services, nor do they pay general administrative or other operating expenses.
The Adviser pays all of the expenses of each Fund except brokerage, taxes,
interest and extraordinary expenses.
<TABLE>
<CAPTION>
Shareholder Transaction Expenses
<S> <C> <C>
Fixed
Stock Income
Fund Fund
Maximum Sales Load . . . . . . . . . . . . . . . . . . . . . . . NONE NONE
Deferred Sales Load. . . . . . . . . . . . . . . . . . . . . . . NONE NONE
Redemption Fee . . . . . . . . . . . . . . . . . . . . . . . . . NONE NONE
Exchange Fee . . . . . . . . . . . . . . . . . . . . . . . . . . NONE NONE
Annual Fund Operating Expenses
(as a percentage of average net assets)1
Management Fees. . . . . . . . . . . . . . . . . . . . . . . . . .2% 1.50%
12b-1 Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . NONE NONE
Total Fund Operating Expenses. . . . . . . . . . . . . . . . . . .2% 1.50%
<FN>
1 Each Fund's total operating expenses are equal to the management fee
paid to the Adviser because the Adviser pays all of each Fund's
operating expenses.
</FN>
</TABLE>
Example
You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return and (2) redemption at the end of each time period:
<TABLE>
<S> <C> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
Stock Fund $20 $63 $108 $233
Fixed Income Fund $15 $47 $ 82 $179
</TABLE>
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<PAGE>
FINANCIAL HIGHLIGHTS
Each Fund was organized as a series of Analysts Investment Trust (the
"Trust") on May 28, 1993, and commenced operations on August 25, 1993. The
following financial information is derived from the audited financial statements
of the Analysts Stock Fund and the Analysts Fixed Income Fund. The audited
financial statements of these Funds are included in the Statement of Additional
Information. The Trust's Annual Report contains additional performance
information and will be made available upon request and without charge.
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Years ended July 31, 1996 and 1995 and
the Period from Inception (August 25, 1993) through July 31, 1994
<S> <C> <C> <C> <C> <C> <C>
Stock Fund Fixed Income Fund
1996 1995 1994 1996 1995 1994
Net asset value beginning of period $17.87 $15.79 $14.46 $13.57 $13.38 $14.74
Income from investment operations:
Net investment income .34 .24 .19 .78 .80 .77
Net realized and unrealized gains
on securities .81 2.11 1.24 .01 .18 (1.63)
Total from Investment operations 1.15 2.35 1.43 .79 .98 (.86)
Less distributions:
Dividends from net investment income (.31) (.27) (.10) (.74) (.79) (.50)
Dividends from capital gains (.43)
Total distributions (.74) (.27) (.10) (.74) (.79) (.50)
Net asset value, end of period $18.28 $17.87 $15.79 $13.62 $13.57 $13.38
Total return 6.84% 15.01% 10.70%* 5.84% 7.61% (6.20%)*
Ratios/Supplemental Data:
Net assets, end of period (thousands) $3,642 $2,549 $2,068 $2,319 $1,477 $1,079
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets 1.89% 1.45% 1.18% 5.65% 6.03% 5.57%
Portfolio turnover rate 6.19% 32.02% 4.52% 22.34% 18.01% 22.67%
Average commission rate paid $0.086 - - $0.082 - -
<FN>
*Annualized
</FN>
</TABLE>
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<PAGE>
INVESTMENT OBJECTIVES AND STRATEGIES
The descriptions that follow are designed to help you choose the Fund
that best fits your investment objectives. You may want to pursue more than one
objective by investing in both Funds.
Analysts Stock Fund
The investment objective of the Analysts Stock Fund (the "Stock Fund")
is long term capital appreciation. The Fund seeks to achieve this objective by
investing primarily in a broad range of common stocks which the Fund's Adviser,
Equity Analysts Inc. (the "Adviser"), believes have above average prospects for
appreciation. The stocks will be diversified among many companies and industries
to lower risk and volatility. The Adviser follows a stock investment program
diversified among the following categories (under normal circumstances, no more
than 50% of the total assets of the Fund will be invested in any category):
large capitalization (over $1 billion) domestic stocks; small (less than $500
million) and medium (between $500 million and $1 billion) capitalization
domestic stocks; foreign stocks; real estate stocks; and gold and other natural
resources stocks. The Adviser manages the diversification among the categories
based on a fundamental analysis of market conditions and the prospects for
specific categories of stocks. Within each category, specific stocks and
industries are also selected based on the Adviser's fundamental analysis.
The domestic stock categories are included to provide appreciation
potential during rising stock market conditions in the United States. The
foreign stock category is included to provide appreciation opportunities during
periods of adverse market conditions in the United States. The real estate and
gold and natural resources categories are included to provide a potential for
positive total return during inflationary periods.
Under normal circumstances, at least 65% of the total assets of the
Fund will be invested in common stock. The Adviser generally intends to stay
fully invested (subject to liquidity requirements and defensive purposes) in
common stock and common stock equivalents (such as rights, warrants and
securities convertible into common stocks) regardless of the movement of stock
prices. However, the Fund may invest in preferred stocks, bonds and corporate
debt securities when the Adviser believes that these securities offer
opportunities for capital appreciation. The Fund normally will invest primarily
in common stocks of established companies that have a record of at least three
years continuous operation, and whose securities, in the opinion of the Adviser,
enjoy a fair degree of marketability. Most equity securities in the Fund's
portfolio are listed on major stock exchanges or traded over-the-counter.
Analysts Fixed Income Fund
The investment objective of the Analysts Fixed Income Fund (the "Fixed
Income Fund") is a high level of income over the long term consistent with
preservation of capital. The Fund seeks to achieve this objective by investing
primarily in a broad range of investment grade fixed income securities. See
"Securities Ratings" for a discussion of ratings of such securities. Under
normal circumstances, at least 65% of the total assets of the Fund will be
invested in fixed income securities, including U.S. government obligations,
securities of foreign governments, domestic or foreign corporate debt
securities, preferred stocks, convertible preferred stocks, convertible bonds
and debentures, repurchase agreements and investment companies which invest
primarily in the above.
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<PAGE>
For purposes of the preceding sentence, CMOs, REMICs and floating and variable
rate obligations are not considered to be fixed income securities.
General
For temporary defensive or temporary liquidity purposes, either Fund
may hold all or a portion of its assets in money market instruments, securities
of other no-load registered investment companies or repurchase agreements. See
"Investment Policies and Techniques" for a more detailed discussion of each
Fund's investment practices.
As all investment securities are subject to inherent market risks and
fluctuations in value due to earnings, economic and political conditions and
other factors, neither Fund can give any assurance that its investment objective
will be achieved. Current yields or rates of total return quoted by a Fund may
be higher or lower than past quotations, and there can be no assurance that any
current yield or rate of total return will be maintained.
HOW TO INVEST IN EACH FUND
Subject to a minimum initial investment of $1,000 for each Fund ($25
for tax sheltered retirement plans) and minimum subsequent investments of $25,
you may invest any amount you choose, as often as you want, in either Fund. You
may diversify your investments by choosing a combination of the Funds for your
investment program.
Initial Purchase
By Mail - You may purchase shares of each Fund by completing and
signing the investment application form which accompanies this Prospectus and
mailing it, together with a check (subject to the above minimum amounts) made
payable to Analysts Investment Trust, 9200 Montgomery Road, Building D, Suite
13A, Cincinnati, Ohio 45242. Please identify the Fund(s) in which you wish to
invest.
By Wire - You may purchase shares of each Fund by wiring Federal Funds
from your bank, which may charge you a fee. If money is to be wired for an
initial purchase (new account), you must call the Funds at (513) 984-3377, and
provide the following information: the name or names in which your account is to
be registered; your address; your social security or tax identification number;
the amount being wired; the name of the Fund(s) you wish to invest in; the name
of the wiring bank; and the name and telephone number of the person at your bank
to be contacted in connection with the order. Your bank must then wire the
specified account according to the following instructions:
Star Bank, N.A., Cincinnati/Trust
ABA #0420-0001-3
DDA #48036-9362
Account 19-0086 - Analysts Fixed Income Fund
or
Account 19-0085 - Analysts Stock Fund
For: ________________________ (Shareholder Name)
Shareholder account number ___________________
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<PAGE>
You must mail a completed application to the Trust after opening an
account by wire transfer. If a completed application is not received or your
social security or tax identification number is not certified with a Form W-9
within 60 days, your account will be subject to back-up withholding.
Wire orders will be accepted only on a day on which the Funds and Star
Bank are open for business. A wire purchase will not be considered made until
the wired money is received and the purchase is accepted by the Funds. Any
delays which may occur in wiring money, including delays which may occur in
processing by the banks, are not the responsibility of the Funds or Star Bank.
There is presently no fee for the receipt of wired funds, but the right to
charge shareholders for this service is reserved by the Funds.
Additional Investments
You may purchase additional shares of either Fund at any time by mail
or by bank wire (minimum of $25). Each additional purchase request must contain
your name, the name of your account(s), your account number(s), and the Fund(s)
in which you wish to invest. Checks should be made payable to Analysts
Investment Trust and should be sent to the Trust's address. A bank wire should
be sent as outlined above.
Tax Sheltered Retirement Plans
Since the Funds are oriented to longer term investments, shares of the
Funds may be an appropriate investment medium for tax sheltered retirement
plans, including: individual retirement plans (IRA's); simplified employee
pensions (SEP's); 401(k) plans; qualified corporate pension and profit sharing
plans (for employees); 403(b) tax deferred investment plans (for employees of
public school systems and certain types of charitable organizations); and other
qualified retirement plans. You should contact the Funds for the procedure to
open an IRA or SEP plan, 401(k) plan, qualified pension or profit sharing plan,
403(b) tax deferred investment plan or non-qualified plan, as well as more
specific information regarding these retirement plan options. Consultation with
an attorney or tax adviser regarding these plans is advisable. Custodial fees
for an IRA or 403(b) plan will be paid by the Adviser directly to the IRA or
403(b) plan custodian.
Other Purchase Information
You may exchange securities that you own for shares of either of the
Funds, provided the securities meet the Fund's investment criteria and the
Adviser deems them to be a desirable investment for the Fund. Any exchange will
be a taxable event and you may incur certain transaction costs relating to the
exchange. Contact the Funds for additional information.
If an order, together with payment in proper form, is received before
the close of trading on the New York Stock Exchange (currently 4:00 p.m. Eastern
Time), Fund shares will be purchased at the net asset value determined as of the
close of trading on that day. Otherwise, Fund shares will be purchased at the
net asset value determined as of the close of trading on the New York Stock
Exchange on the next business day. You become a shareholder after declaration of
any dividend on the day on which the order is effective. Dividends begin to
accrue after you become a shareholder. The Funds do not issue share
certificates. All shares are held in non-certificate form registered on the
books of the Fund for the account of the shareholder. The rights to limit the
amount of purchases and
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<PAGE>
to refuse to sell to any person are reserved by each Fund. If your check or
wire does not clear, you will be responsible for any loss incurred. If you are
already a shareholder, the Fund can redeem shares from any identically
registered account in either Fund as reimbursement for any loss incurred.
You may be prohibited or restricted from making future purchases in
either Fund.
EXCHANGE PRIVILEGE
As a shareholder in any Fund, you may exchange shares for shares of
any other Fund in the Analysts Mutual Fund Group (which includes all open-end
mutual funds for which the Adviser serves as investment adviser or manager), or
for shares of the Money Market Portfolio, the Government Securities Portfolio or
the Tax-Exempt Portfolio of the Cash Account Trust ("CAT"), a separately
managed, unaffiliated money market fund. Exchanges may be made only if the Fund
or CAT Portfolio into which you wish to exchange your shares is registered in
your state of residence. The exchange privilege with the CAT Portfolios does not
constitute an offering or recommendation of the shares of any such Portfolio by
the Trust or the Adviser. The CAT Portfolios' administrator compensates the
Adviser for administrative and distribution services it performs with respect to
those Portfolios.
It is your responsibility to obtain and read a prospectus of the Fund
or CAT Portfolio into which you are exchanging. By giving exchange instructions,
a shareholder will be deemed to have acknowledged receipt of the prospectus for
the Fund or Portfolio being purchased. You may make an exchange by telephone or
by written request.
You can make an exchange by calling the Funds at the number listed in
this prospectus. An exchange may also be made by written request signed by all
registered owners of the account mailed to the Funds. Requests for exchanges
received prior to close of trading on the New York Stock Exchange (currently
4:00 p.m. Eastern Time) will be processed at the next determined net asset value
as of the close of business on the same day.
An exchange is made by redeeming shares of one Fund (or CAT Portfolio)
and using the proceeds to buy shares of another Fund (or CAT Portfolio), with
the price for the redemption and the purchase being the next determined net
asset value after the receipt of the order. See "Redemption of Shares". There is
no charge for this service, but the Funds reserve the right to charge a fee in
the future. An exchange results in a sale of shares for federal income tax
purposes. If you make use of the exchange privilege, you may realize either a
long term or short term capital gain or loss on the shares redeemed.
Before making an exchange, you should consider the investment
objective of the Fund (or CAT Portfolio) to be purchased. If your exchange
creates a new account, you must satisfy the requirements of the Fund (or CAT
Portfolio) in which shares are being purchased. You may make an exchange to a
new account or an existing account; however, the account ownerships must be
identical. The Funds reserve the right to terminate or modify the exchange
privilege in the future upon 60 days prior notice to shareholders.
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<PAGE>
REDEMPTION OF SHARES
You may redeem any part of your account in either Fund by mail or
telephone. Each Fund will redeem your shares without charge at the next share
price (net asset value) calculated after receipt of your properly completed
request for withdrawal.
By Mail - You may redeem your shares at no charge by mail. All
redemptions will be made at the net asset value determined after the redemption
request has been received by the Funds in proper order. The proceeds of the
redemption may be more or less than the purchase price of your shares, depending
on the market value of the Fund's securities at the time of your redemption.
Your request should be addressed to Analysts Mutual Funds, 9200 Montgomery Road,
Building D, Suite 13A, Cincinnati, Ohio 45242.
"Proper order" means your request for a redemption must include your
letter of instruction, including the Fund name, account number, account name(s),
the address and the dollar amount or number of shares you wish to redeem. This
request must be signed by all registered share owner(s) in the exact name(s) and
any special capacity in which they are registered. For redemptions in excess of
$25,000, the Funds may require that signatures be guaranteed by a bank or member
firm of a national securities exchange. Signature guarantees are for the
protection of shareholders. At the discretion of a Fund, a shareholder which is
a corporation, trust, estate, partnership, individual retirement account or
other entity, prior to redemption, may be required to furnish additional legal
documents to insure proper authorization.
If you are not certain of the requirements for a redemption please
call the Funds at the number listed in this Prospectus.
By Telephone - You may request a redemption of your shares in any Fund
on any business day the New York Stock Exchange is open by calling the Funds
before 4:00 p.m. Eastern Time. It is not necessary for you to first make a
written election to initiate a telephone redemption. Redemption proceeds will be
mailed or wired at the shareholders direction to the predesignated account. The
minimum amount that may be wired is $1,000 (wire charges of $11.00 will be
deducted from redemption proceeds). The Trust and Star Bank, the Funds'
Custodian, will employ reasonable procedures to confirm that instructions
communicated by telephone are genuine. Such procedures will include requiring a
form of personal identification from the caller.
By using the telephone redemption and exchange privileges, a
shareholder authorizes the Funds and the Custodian to act upon the instruction
of any person by telephone to redeem from the account and transfer the proceeds
to the bank account designated or effect an exchange into another Fund. The
Funds and the Custodian are not liable for following instructions communicated
by telephone that they reasonably believe to be genuine. However, if they do not
employ reasonable procedures to confirm that telephone instructions are genuine,
they may be liable for any losses due to unauthorized or fraudulent
instructions. The Funds may change, modify or terminate the telephone redemption
or exchange privilege at any time.
By Systematic Withdrawal Plan - As another convenience, the Funds
offer a Systematic Withdrawal Program whereby shareholders may request that a
check drawn in a predetermined amount be sent to them each month or calendar
quarter. A shareholder's account must have Fund shares with
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<PAGE>
a value of at least $10,000 in order to start a Systematic Withdrawal Program,
and the minimum amount that may be withdrawn each month or quarter under the
Systematic Withdrawal Program is $100. This Program may be terminated or
modified by a shareholder or the Funds at any time without charge or penalty
and will become effective five business days following receipt of your
instructions. Shares will be sold within 5 to 10 days preceding the end of
a month. A withdrawal under the Systematic Withdrawal Program involves a
redemption of shares and may result in a gain or loss for federal income tax
purposes. In addition, if the amount withdrawn exceeds the dividends credited
to the shareholder's account, the account ultimately may be depleted.
Additional Information - Redemptions specifying a certain date or
share price cannot be accepted and will be returned. If you invest by wire, you
may redeem shares on the first business day following settlement of such
purchase. However, if you invest by a personal, corporate, cashier's or
government check, or through any of our telephone services, the redemption
proceeds will not be paid until the first business day after the 10th calendar
day following receipt of payment by the Fund. Exchanges into any of the other
Funds or CAT Portfolios are, however, permitted without the ten day waiting
period.
We will mail or wire you the proceeds on or before the fifth business
day following the redemption. Also, when the New York Stock Exchange is closed
(or when trading is restricted) for any reason other than its customary weekend
or holiday closing or under any emergency circumstances, as determined by the
Securities and Exchange Commission, we may suspend redemptions or postpone
payment dates. If you are unable to accomplish your transaction by telephone
(for example, during times of unusual market activity), consider sending your
order by express mail or facsimile at (513) 984-2411.
Because the Funds incur certain fixed costs in maintaining shareholder
accounts, each Fund reserves the right to require any shareholder to redeem all
of his shares in the Fund on 30 days written notice if the value of his shares
in the Fund is less than $1,000 due to redemption ($25 for IRA's), or such other
minimum amount as the Fund may determine from time to time. A shareholder may
increase the value of his shares in the Fund to the minimum amount within the 30
day period. Each share of each Fund is subject to redemption at any time if the
Board of Trustees determines in its sole discretion that failure to so redeem
may have materially adverse consequences to all or any of the shareholders of
the Trust or any Fund of the Trust.
SHARE PRICE CALCULATION
The value of an individual share in a Fund (the net asset value) is
calculated by dividing the total value of a Fund's investments and other assets
(including accrued income), less any liabilities (including estimated accrued
expenses), by the number of shares outstanding, rounded to the nearest cent. Net
asset value per share is determined as of the close of the New York Stock
Exchange (4:00 p.m., Eastern time) on each day that the exchange is open for
business, and on any other day on which there is sufficient trading in the
Fund's securities to materially affect the net asset value. The net asset value
per share of each Fund will fluctuate.
Securities which are traded on any exchange or on the NASDAQ over-
the-counter market are valued at the last quoted sale price of the day. Lacking
a last sale price, a security is generally valued at its last bid price, except
when, in the Adviser's opinion, the last bid price does not accurately reflect
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<PAGE>
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Adviser determines the last bid price does not accurately reflect the current
value, or when restricted securities are being valued, such securities are
valued as determined in good faith by the Adviser, subject to review of the
Board of Trustees of the Trust.
Fixed income securities (including mortgage-related securities and
asset-backed and receivable-backed securities) may be valued on the basis of
prices furnished by a pricing service when the Adviser believes such prices
accurately reflect the fair market value of such securities. A pricing service
utilizes electronic data processing techniques to determine prices for normal
institutional-size trading units of debt securities without regard to sale or
bid prices. When prices are not readily available from a pricing service, or
when restricted or illiquid securities are being valued, securities are valued
at fair value as determined in good faith by the Adviser, subject to review of
the Board of Trustees. Short term investments in fixed income securities with
maturities of less than 60 days when acquired, or which subsequently are within
60 days of maturity, are valued by using the amortized cost method of valuation.
For valuation purposes, quotations of foreign securities in a foreign
currency are converted to U.S. dollar equivalents at the time of pricing. In
computing the net asset value of a Fund, the values of foreign portfolio
securities are generally based upon market quotations which, depending upon the
exchange or market, may be last sale price, last bid price, or the mean between
last bid and asked prices as of, in each case, the close of the appropriate
exchange or another designated time.
Trading in securities on European and Far Eastern securities exchanges
and over-the-counter markets is normally completed at various times before the
close of business on each day on which the New York Stock Exchange is open.
Trading of these securities may not take place on every New York Stock Exchange
business day. In addition, trading may take place in various foreign markets on
Saturdays or on other days when the New York Stock Exchange is not open and on
which a Fund's share price is not calculated. Therefore, the value of the
portfolio of a Fund holding foreign securities may be significantly affected on
days when shares of the Fund may not be purchased or redeemed.
The calculation of the share price of a Fund holding foreign
securities in its portfolio does not take place contemporaneously with the
determination of the values of many of the foreign portfolio securities used in
such calculation. Events affecting the values of foreign portfolio securities
that occur between the time their prices are determined and the calculation of
the Fund's share price will not be reflected in the calculation unless the
Adviser determines, subject to review by the Board of Trustees, that the
particular event would materially affect net asset value, in which case an
adjustment will be made.
DIVIDENDS AND DISTRIBUTIONS
Each Fund intends to distribute substantially all of its net
investment income as dividends to its shareholders on a quarterly basis. Each
Fund intends to distribute its net long term capital gains at least once a year
and its net short term capital gains at least once a year.
Income dividends and capital gain distributions are automatically
reinvested in additional shares at the net asset value per share on the
distribution date. An election to receive a cash payment of
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dividends and/or capital gain distributions may be made in the application to
purchase shares or by separate written notice to the Funds. Shareholders will
receive a confirmation statement reflecting the payment and reinvestment of
dividends and summarizing all other transactions. If cash payment is requested,
a check normally will be mailed within five business days after the payable
date. If you withdraw your entire account, all dividends accrued to the time
of withdrawal, including the day of withdrawal, will be paid at that time.
Distributions of less than $10 and distributions on shares purchased within
the last 30 days, however, will not be paid in cash and will be reinvested.
You may elect to have distributions on shares held in IRA's, 403(b) plans and
other tax sheltered retirement plans paid in cash only if you are 59 1/2 years
old or permanently and totally disabled or if you otherwise qualify under the
applicable plan.
TAXES
Each Fund intends to qualify each year as a "regulated investment
company" under the Internal Revenue Code of 1986, as amended. By so qualifying,
a Fund will not be subject to federal income taxes to the extent that it
distributes substantially all of its net investment income and any net realized
capital gains.
For federal income tax purposes, each Fund is treated as a separate
entity for the purpose of computing taxable net income and net realized capital
gains and losses. Dividends paid by each Fund from ordinary income are taxable
to shareholders as ordinary income, but may be eligible in part for the
dividends received deduction for corporations. Pursuant to the Tax Reform Act of
1986 (the "Tax Reform Act"), all distributions of net capital gains to
individuals are taxed at the same rate as ordinary income. All distributions of
net capital gains to corporations are taxed at regular corporate rates. Any
distributions designated as being made from net realized long term capital gains
are taxable to shareholders as long term capital gains regardless of the holding
period of the shareholder. The tax consequences described in this section apply
whether distributions are taken in cash or reinvested in additional shares.
Each Fund will mail to each shareholder after the close of the
calendar year a statement setting forth the federal income tax status of
distributions made during the year. Dividends and capital gains distributions
may also be subject to state and local taxes.
Income received by any Fund holding foreign securities may be subject
to foreign tax withholding. Tax treaties between certain countries and the U.S.
may reduce or eliminate such taxes. Shareholders may be entitled to claim tax
credits or deductions, subject to provisions and limitations of the Internal
Revenue Code, for foreign income taxes paid by the Fund. The Fund will notify
its shareholders if such credit or deduction is available.
Shareholders are urged to consult their own tax advisers regarding
specific questions as to federal, state or local taxes, applicable foreign tax
credits and deductions, the tax effect of distributions and withdrawals from the
Fund and the use of the Exchange Privilege.
Unless a shareholder of a Fund furnishes his certified taxpayer
identification number (social security number for individuals) and certifies
that he is not subject to backup withholding, the Fund will be required to
withhold and remit to the U.S. Treasury 20% of the dividends, distributions and
redemption proceeds payable to the shareholder. Shareholders should be aware
0that, under regulations
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promulgated by the Internal Revenue Service, a Fund may be fined $50 annually
for each account for which a certified taxpayer identification number is not
provided. In the event that such a fine is imposed with respect to a specific
account in any year, the Fund will make a corresponding charge against the
account.
TRUSTEES AND OFFICERS
The names of the Trustees and executive officers of the Trust are
shown below. Each Trustee who is an "interested person" of the Trust, as defined
in the Investment Company Act of 1940, is indicated by an asterisk.
Name Position
*David Lee Manzler, Jr. President, Treasurer and Trustee
*David L. Manzler, Sr. Vice President, Secretary and Trustee
Walter E. Bowles, III Trustee
Robert W. Buechner Trustee
David J. Orth Trustee
Anthony J. Schement Trustee
The principal occupations of the executive officers and Trustees of
the Trust during the past five years are set forth below:
DAVID L. MANZLER, SR., 9200 Montgomery Road, Bldg. D, Suite 13A,
Cincinnati, Ohio is Vice President and a Director of Equity Analysts Inc. He
is also President of Equity Analysts Agency Inc., an insurance and pension plan
administrator, and a Director of Cincinnati Steel Products Co., a steel
fabrication company. Mr. Manzler is the father of David Lee Manzler, Jr.
DAVID LEE MANZLER, JR., 9200 Montgomery Road, Bldg. D, Suite 13A,
Cincinnati, Ohio is President and a Director of Equity Analysts Inc. He is
also the President of Manzler Aviation, Inc. Prior to June, 1990, he was a
captain in the U.S. Marine Corps. Mr. Manzler is the son of David L.
Manzler, Sr.
WALTER E. BOWLES, III, 6645 Miami Trails Drive, Loveland, Ohio has
been President of Webco Environmental Management, Inc., an environmental
consulting firm, since September, 1993. Prior to April, 1994, Mr. Bowles was a
Business Environmental Engineer for James River Corp., a manufacturer of paper
and paper products.
ROBERT W. BUECHNER, 105 East Fourth Street, Suite 1405, Cincinnati,
Ohio is President of the law firm Buechner, Haffer, O'Connell, Meyers & Healey
Co., L.P.A. From August, 1989 until May, 1991, he also served on the Board of
Directors of Duramed Pharmaceuticals, Inc.
DAVID J. ORTH, 3 Spotswood Common, Batavia, Ohio is a pharmaceutical
sales representative for Bristol-Myers Squibb, Inc. Prior to August, 1990,
Mr. Orth was a pharmaceutical sales representative for Winthrop Pharmaceuticals.
ANTHONY J. SCHEMENT, 8032 Deershadow Lane, Cincinnati, Ohio is a
Director of BMF Federal Savings Bank. Mr. Schement was President of Benchmark
Federal Savings Bank from July,
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1989 until October, 1992. Prior to July, 1989, Mr. Schement was the President
and Chief Executive Officer of Monogram Bank of Ohio.
OPERATION OF THE FUNDS
Each Fund is a diversified series of Analysts Investment Trust, an
open-end management investment company organized as an Ohio business trust on
May 28, 1993. The Board of Trustees supervises the business activities of the
Trust. Like other mutual funds, the Trust retains various organizations to
perform specialized services. It retains Equity Analysts Inc., 9200 Montgomery
Road, Building D, Suite 13A, Cincinnati, Ohio 45242 (the "Adviser") to manage
the Trust's investments and its business affairs. The Adviser is a
Cincinnati-based company of which David L. Manzler, Sr. and David Lee Manzler,
Jr. are the controlling shareholders. The Adviser is an investment advisory firm
which has provided investment advice to individuals, corporations, pension and
profit sharing plans and trust accounts since 1984. David Lee Manzler, Jr.,
President of Equity Analysts Inc., is primarily responsible for the day-to-day
management of the portfolio of each Fund and has been since the inception of the
Fund. Mr. Manzler has been the President of the Adviser since January, 1996, and
a Director of the Adviser since May, 1990. Equity Analysts Inc. is also the
exclusive agent for the distribution of shares of the Funds. The Trust acts as
its own transfer agent and dividend paying agent.
Analysts Stock Fund is obligated to pay the Adviser a fee equal to an
annual average rate of 2% of its average daily net assets up to and including
$20 million, 1.75% of such assets from $20 million to and including $40 million,
1.5% of such assets from $40 million to and including $100 million and .75% of
such assets in excess of $100 million. Analysts Fixed Income Fund is obligated
to pay the Adviser a fee equal to an annual average rate of 1.5% of its average
daily net assets up to and including $20 million, 1.25% of such assets from $20
million to and including $40 million, 1% of such assets from $40 million to and
including $100 million and .75% of such assets in excess of $100 million. The
Adviser pays all of the expenses of each Fund except brokerage, taxes, interest
and extraordinary expenses. Consistent with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., and subject to its obligation
of seeking best qualitative execution, the Adviser may give consideration to
sales of shares of the Trust as a factor in the selection of brokers and dealers
to execute portfolio transactions.
INVESTMENT POLICIES AND TECHNIQUES
This section contains general information about various types of
securities and investment techniques. Each Fund may invest in any security or
employ any investment technique described in this section unless specifically
noted otherwise.
Equity Securities
Each Fund may invest in equity securities. Equity securities include
common stock, common stock equivalents (such as rights and warrants) and
investment companies which invest primarily in the above.
Warrants are options to purchase common stock at a specified price
valid for a specific time period. Rights are similar to warrants, but normally
have a short duration and are distributed by the
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issuer to its shareholders. A Fund may not invest more than 5% of its net
assets at the time of purchase in rights and warrants.
Real estate stocks are common stocks or common stock equivalents of
domestic real estate investment trusts and other companies which operate as real
estate corporations or which have a significant portion of their assets in real
estate. Neither Fund will acquire any direct ownership of real estate.
Gold and natural resources stocks are common stocks or common stock
equivalents of companies principally engaged in exploration, mining or
processing of gold or other precious metals and minerals. Gold and natural
resources stocks involve additional risk because of the price volatility of gold
and other precious metals and minerals and the increased impact such volatility
has on the market value of such stocks.
Certain aspects of foreign equity securities are discussed below
under "Foreign Securities."
Fixed Income Securities
Each Fund may invest in fixed income securities. Fixed income
securities include debt securities of domestic and foreign corporations, U.S.
government securities, securities of foreign governments, adjustable rate
preferred stock, mortgage-related securities, repurchase agreements, municipal
obligations, zero coupon bonds, asset-backed and receivable-backed securities
and participation interests in such securities, as well as investment companies
which invest primarily in the above. Preferred stock and certain common stock
equivalents such as convertible bonds and debentures may also be considered to
be fixed income securities. Convertible preferred stock is preferred stock that
can be converted into common stock pursuant to its terms. Convertible debentures
are debt instruments that can be converted into common stock pursuant to their
terms.
Fixed income securities are generally considered to be interest rate
sensitive, which means that their value will tend to decrease when interest
rates rise and increase when interest rates fall. Securities with shorter
maturities, while offering lower yields, generally provide greater price
stability than longer term securities and are less affected by changes in
interest rates. The Fund may invest in fixed income securities of any maturity,
and will make maturity decisions based upon the Adviser's analysis of market
conditions.
Corporate Debt Securities - Corporate debt securities are
long and short term debt obligations issued by companies (such as publicly
issued and privately placed bonds, notes and commercial paper).
U.S. Government Securities - U.S. government securities may
be backed by the credit of the government as a whole or only by the issuing
agency. U.S. Treasury bonds, notes, and bills and some agency securities, such
as those issued by the Federal Housing Administration and the Government
National Mortgage Association (GNMA), are backed by the full faith and credit of
the U.S. government as to payment of principal and interest and are the highest
quality government securities. Other securities issued by U.S. government
agencies or instrumentalities, such as securities issued by the Federal Home
Loan Banks and the Federal Home Loan Mortgage Corporation, are supported only by
the credit of the agency that issued them, and not by the U.S. government.
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Securities issued by the Federal Farm Credit System, the Federal Land Banks, and
the Federal National Mortgage Association (FNMA) are supported by the agency's
right to borrow money from the U.S. Treasury under certain circumstances, but
are not backed by the full faith and credit of the U.S. government.
Participation interests in U.S. government obligations are pro rata
interests in such obligations which are generally underwritten by government
securities dealers. Certificates of safekeeping for U.S. government obligations
are documentary receipts for such obligations. Both participation interests and
certificates of safekeeping are traded on exchanges and in the over-the-counter
market.
Each Fund may invest in U.S. government obligations and related
participation interests. In addition, each Fund may invest in custodial receipts
that evidence ownership of future interest payments, principal payments or both
on certain U.S. government obligations. Such obligations are held in custody by
a bank on behalf of the owners. These custodial receipts are known by various
names, including Treasury Receipts, Treasury Investors Growth Receipts ("TIGRs")
and Certificates of Accrual on Treasury Securities ("CATS"). Custodial receipts
generally are not considered obligations of the U.S. government.
Foreign Securities - Each Fund may invest up to 50% of the
value of its assets in equity or fixed income securities of foreign issuers when
these securities meet its standards of selection. The Funds may make such
investments either directly in, or by purchasing American Depositary Receipts
for, foreign securities that are listed on an exchange in the United States or
quoted in the domestic over-the-counter market. The funds may also purchase
securities of such issuers in foreign markets, either on foreign securities
exchanges or in the over-the-counter markets. Foreign fixed income securities
include debt obligations issued by foreign companies, foreign governments or
international organizations.
Foreign government obligations generally consist of debt
securities supported by national, state or provincial governments or similar
political units or governmental agencies. Such obligations may or may not be
backed by the national government's full faith and credit and general taxing
powers. Investments in foreign securities also include obligations issued by
international organizations. International organizations include entities
designated or supported by governmental entities to promote economic
reconstruction or development as well as international banking institutions and
related government agencies.
Investments in foreign securities may present certain risks,
including those resulting from changes in restrictions on foreign currency
transactions and rates of exchange, future political and economic developments,
reduced availability of public information concerning issuers, and the fact that
foreign issuers are not generally subject to uniform accounting, auditing and
financial reporting standards or to other regulatory practices and requirements
comparable to those applicable to domestic issuers. Other risks associated with
investments in foreign securities include less liquid markets, difficulty in
enforcing contractual obligations, delays in settlement of securities
transactions and greater price volatility. In addition, investments in
developing countries involves exposure to economic structures that are generally
less diverse and mature than in the United States, and to political systems
which may be less stable. The market prices of these securities and the ability
of the Funds to hold such securities could be affected by social, economic and
political instability.
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Adjustable Rate Preferred Stocks - Adjustable rate preferred
stocks have a variable dividend which, rather than being set for the life of an
issue, generally is determined quarterly according to a formula based upon a
specified premium to, or discount from, the yield on certain U.S. Treasury
securities. The market value of these stocks should therefore be less sensitive
to interest rate fluctuations than those of other fixed income securities and
preferred stocks. They may also have conversion, exchange or other additional
features which are designed to enhance stability of principal. Nevertheless, the
market value of an adjustable rate preferred stock can be expected to fluctuate
with, among other factors, changes in interest rates generally or the
creditworthiness of the issuer.
Mortgage-Related Securities - Mortgage-related securities
include securities representing interests in a pool of mortgages. These
securities, including securities issued by FNMA and GNMA, provide investors with
payments consisting of both interest and principal as the mortgages in the
underlying mortgage pools are repaid. Pools of mortgage loans are assembled for
sale to investors (such as the Funds) by various governmental,
government-related and private organizations, such as dealers. Unscheduled or
early payments on the underlying mortgages may shorten the securities' effective
maturities.
Other types of securities representing interests in a pool of
mortgage loans are known as collateralized mortgage obligations (CMOs) and real
estate mortgage investment conduits (REMICs) and multi-class pass-throughs. CMOs
and REMICs are debt instruments collateralized by pools of mortgage loans or
other mortgage-backed securities. Multi-class pass-through securities are equity
interests in a trust composed of mortgage loans or other mortgage-backed
securities. Payments of principal and interest on underlying collateral provides
the funds to pay debt service on the CMO or REMIC or make scheduled
distributions on the multi-class pass-through securities. CMOs, REMICs and
multi-class pass-through securities (collectively "CMOs" unless the context
indicates otherwise) may be issued by agencies or instrumentalities of the U.S.
government (such as the Federal Home Loan Mortgage Corporation) or by private
organizations.
CMOs are issued with a variety of classes or "tranches,"
which have different maturities and are often retired in sequence. One or more
tranches of a CMO may have coupon rates which reset periodically at a specified
increment over an index such as the London Interbank Offered Rate ("LIBOR").
These "floating rate CMOs," typically are issued with lifetime "caps" on their
coupon rate, which means that there is a ceiling beyond which the coupon rate
may not be increased. The yield of some floating rate CMOs varies in excess of
the change in the index, which would cause the value of such CMOs to fluctuate
significantly once rates reach the cap.
REMICs, which have elected to be treated as such under the
Internal Revenue Code, are private entities formed for the purpose of holding a
fixed pool of mortgages secured by an interest in real property. REMICs are
similar to CMOs in that they issue multiple classes of securities. As with other
CMOs, the mortgages which collateralize the REMICs in which a Fund may invest
include mortgages backed by GNMA certificates or other mortgage pass-throughs
issued or guaranteed by the U.S. government, its agencies or instrumentalities
or issued by private entities, which are not guaranteed by any government
agency.
Yields on privately issued CMOs as described above have been
historically higher than the yields on CMOs issued or guaranteed by U.S.
government agencies. However, the risk of loss due to default on such
instruments is higher since they are not guaranteed by the U.S. government. In
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addition, in the event of a bankruptcy or other default of a broker who issued a
CMO held by a Fund, the Fund could experience both delays in liquidating its
position and losses. Each Fund may also invest not more than 5% of its net
assets in "stripped" CMOs, which represent only the income portion or the
principal portion of the CMO. Some "stripped" CMOs, known as "inverse floaters,"
have coupon rates which are set periodically at a rate inverse to the index
rate.
The average life of securities representing interests in
pools of mortgage loans is likely to be substantially less than the original
maturity of the mortgage pools as a result of prepayments or foreclosures of
such mortgages. Prepayments are passed through to the registered holder with the
regular monthly payments of principal and interest, and have the effect of
reducing future payments. To the extent the mortgages underlying a security
representing an interest in a pool of mortgages are prepaid, a Fund may
experience a loss (if the price at which the respective security was acquired by
the Fund was at a premium over par, which represents the price at which the
security will be redeemed upon prepayment). In addition, prepayments of such
securities held by a Fund will reduce the share price of the Fund to the extent
the market value of the securities at the time of prepayment exceeds their par
value. Furthermore, the prices of mortgage-related securities can be
significantly affected by changes in interest rates. Prepayments may occur with
greater frequency in periods of declining mortgage rates because, among other
reasons, it may be possible for mortgagors to refinance their outstanding
mortgages at lower interest rates. In such periods, it is likely that any
prepayment proceeds would be reinvested by a Fund at lower rates of return.
Floating and Variable Rate Obligations - Each Fund may invest
in floating and variable rate obligations. Floating rate obligations have an
interest rate which is fixed to a specified interest rate, such as a bank prime
rate, and is automatically adjusted when the specified interest rate changes.
Variable rate obligations have an interest rate which is adjusted at specified
intervals to a specified interest rate. Periodic interest rate adjustments help
stabilize the obligations' market values.
A Fund may purchase these obligations from the issuers or may purchase
participation interests in pools of these obligations from banks or other
financial institutions. Variable and floating rate obligations usually carry
demand features that permit a Fund to sell the obligations back to the issuers
or to financial intermediaries at par value plus accrued interest upon short
notice at any time or prior to specific dates. The inability of the issuer or
financial intermediary to repurchase an obligation on demand could affect the
liquidity of the Fund's portfolio. Frequently, obligations with demand features
are secured by letters of credit or comparable guarantees.
Securities Ratings - The Adviser considers debt securities to be of
investment grade quality if they are rated BBB or higher by Standard & Poor's
Corporation ("S&P"), Baa or higher by Moody's Investors Services, Inc.
("Moody's"), or if unrated, determined by the Adviser to be of comparable
quality. Investment grade debt securities generally have adequate to strong
protection of principal and interest payments. In the lower end of this
category, credit quality may be more susceptible to potential future changes in
circumstances and the securities may have speculative elements. If the rating of
a security by S&P or Moody's drops below investment grade, the Adviser will
dispose of the security as soon as practicable (depending on market conditions)
unless the Adviser determines based on its own credit analysis that the security
provides the opportunity of meeting the Fund's objective without presenting
excessive risk. Neither Fund will invest more than 5% of the value of its net
assets in securities that are below investment grade. In addition, neither Fund
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will invest in securities rated lower than B by S&P or Moody's. If a particular
fixed income security is unrated, the Adviser will generally look to the rating
of other debt of the issuer, if a rating is available.
General - Each Fund is permitted to invest in other investment
companies. Other investment companies offer diversification that may not be
attainable otherwise. For example, investment in another investment company
could enhance the Fund's diversification among issuers of foreign securities,
fixed income securities or in a particular industry sector. A Fund will not
purchase more than 3% of the outstanding voting stock of any investment company.
If the Fund acquires securities of another investment company, the shareholders
of the Fund may be subject to duplicative management fees. Investment by the
Fund in CMO's and foreign banks that are deemed to be investment companies
under the Investment Company Act of 1940 will be included in the limitation on
investments in other investment companies. Neither Fund may invest more than 5%
of its net assets in illiquid securities. See "Additional Information About
Fund Investments" and "Investment Limitations" in the Statement of Additional
Information.
Option Transactions
The Funds may engage in option transactions involving equity
securities, debt securities, foreign currencies, futures contracts and stock
indexes. To cover the potential obligations involved in option transactions, a
Fund will own the underlying equity security, debt security, futures contract or
foreign currency or the Fund will segregate with the Custodian (a) liquid assets
sufficient to purchase the underlying equity security, debt security, futures
contract or foreign currency or (b) liquid assets equal to the market value of
the stock index. A Fund will only engage in options on futures contracts for
hedging purposes (see "Hedging Program" below). Option transactions involve the
following principal risks: (a) the loss of a greater percentage of the Fund's
investment than a direct investment in the underlying instrument, (b) the loss
of opportunity to profit from price movements in the underlying instrument, and
(c) the inability to effect a closing transaction on a particular option. There
is no restriction on the percentage of a Fund's total assets which may be
committed to transactions in options (except options on futures contracts as
discussed below). A more complete description of the characteristics, risks and
possible benefits of option transactions is included in the Statement of
Additional Information.
Hedging Program
Each Fund may hedge all or a portion of its portfolio investments
through the use of options, futures contracts and options on futures contracts.
Each Fund may also hedge currency risks associated with investments in foreign
securities and in particular may hedge its portfolio through the use of forward
foreign currency transactions as described below. The objective of the hedging
program is to protect a profit or offset a loss in a portfolio security from
future price erosion or to assure a definite price for a security, stock index,
futures contract or currency. There are transactional costs connected with a
hedging program.
The principal risks associated with hedging transactions are: (a)
possible imperfect correlation between the prices of the options and futures
contracts and the market value of a Fund's portfolio
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securities, (b) possible lack of a liquid secondary market for closing out an
option or futures contract transaction, (c) the need for additional skills
and techniques beyond normal portfolio management, and (d) losses resulting
from market movements not anticipated by the Adviser.
No Fund may purchase or sell futures contracts or purchase related
options if, immediately thereafter, more than one-third of its net assets would
be hedged. In addition, no Fund may enter into transactions involving futures
contracts and related options if such transactions would result in more than 5%
of the fair market value of the Fund's assets being deposited as initial margin
for such transactions. A Fund's ability to engage in the hedging transactions
and strategies described above may be limited by the tax requirement that the
Fund derive less than 30% of its gross income from the sale or other disposition
of stock or securities held for less than three months.
A more complete description of the characteristics, risks and possible
benefits of hedging transactions is included in the Statement of Additional
Information.
Foreign Currency Transactions
Each Fund can purchase securities denominated in a foreign currency.
When a Fund purchases or sells a security denominated in a foreign currency, it
may be required to settle the purchase transaction in the relevant foreign
currency or to receive the proceeds of the sale in the relevant foreign
currency. In either event, the Fund will be obligated to acquire or dispose of
the foreign currency by selling or buying an equivalent amount of U.S. dollars.
To effect the conversion of the amount of foreign currency involved in the
purchase or sale of a foreign security, the Fund may purchase or sell such
foreign currency on a "spot" (i.e. cash) basis.
In addition, the Fund may wish to lock in the U.S. dollar value of the
transaction at or near the time of the purchase or sale at the exchange rate or
rates then prevailing between the U.S. dollar and the currency in which the
foreign security is denominated. Therefore, the Fund may enter into a forward
foreign currency exchange contract. A forward foreign currency exchange contract
involves an obligation to purchase or sell a specific currency at a future date,
which may be any fixed number of days from the date of the contract agreed upon
by the parties, at a price set at the time of the contract. These contracts are
traded directly between currency traders (usually large commercial banks) and
their customers. By entering into a forward contract in U.S. dollars for the
purchase or sale of the amount of foreign currency involved in an underlying
security transaction, the Fund is able to protect itself against a possible loss
between trade and settlement dates resulting from an adverse change in the
relationship between the U.S. dollar and such foreign currency. This process is
known as transaction hedging. Transaction hedging may protect the Fund from a
possible loss, but will limit potential gains which might result from a positive
change in the currency relationships.
Some or all of a Fund's portfolio securities may be denominated in
foreign currencies. As a result, in addition to the risk of change in the market
value of portfolio securities, the value of the portfolio in U.S. dollars is
subject to fluctuations in the exchange rate between such foreign currencies and
the U.S. dollar. When it is desirable to limit or reduce exposure in a foreign
currency in order to moderate potential changes in the U.S. dollar value of the
portfolio, the Fund may enter into a forward foreign currency exchange contract
to sell, for a fixed amount of U.S. dollars, the amount of foreign currency
approximating the value of some or all of the Fund's portfolio securities
denominated in such foreign currency. This technique is known as portfolio
hedging. Hedging against a decline
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in the value of currency does not eliminate fluctuations in the prices of
portfolio securities or prevent losses if the prices of such securities
decline. The Fund may also employ forward foreign currency exchange contracts
to hedge against an increase in the value of the currency in which the
securities the Fund intends to buy are denominated.
A Fund may also hedge its foreign currency exchange rate risk by
engaging in currency futures contracts and options transactions described above.
Neither Fund will engage in foreign currency transactions for speculative
purposes.
Investment Techniques
Repurchase Agreements. A repurchase agreement is a short-term
investment in which the purchaser (i.e., the Fund) acquires ownership of a U.S.
Government security (which may be of any maturity) and the seller agrees to
repurchase the obligation at a future time at a set price, thereby determining
the yield during the purchaser's holding period (usually not more than seven
days from the date of purchase). Any repurchase transaction in which a Fund
engages will require full collateralization of the seller's obligation during
the entire term of the repurchase agreement. In the event of a bankruptcy or
other default of the seller, a Fund could experience both delays in liquidating
the underlying security and losses in value. However, both Funds intend to enter
into repurchase agreements only with Star Bank, N.A. (the Trust's Custodian),
other banks with assets of $1 billion or more and registered securities dealers
determined by the Adviser (subject to review by the Board of Trustees) to be
creditworthy. The Adviser monitors the creditworthiness of the banks and
securities dealers with which a Fund engages in repurchase transactions.
When Issued Securities and Forward Commitments. Each Fund may buy and
sell securities on a when-issued or delayed delivery basis, with payment and
delivery taking place at a future date. The price and interest rate that will be
received on the securities are each fixed at the time the buyer enters into the
commitment. A Fund may enter into such forward commitments if they hold, and
maintain until the settlement date in a separate account at the Fund's
Custodian, cash or U.S. government securities in an amount sufficient to meet
the purchase price. There is no percentage limitation on a Fund's net assets
which may be invested in forward commitments. Forward commitments involve a risk
of loss if the value of the security to be purchased declines prior to the
settlement date. Any change in value could increase fluctuations in a Fund's
share price and yield. Although a Fund will generally enter into forward
commitments with the intention of acquiring securities for its portfolio, a Fund
may dispose of a commitment prior to the settlement if the Adviser deems it
appropriate to do so.
Other Techniques. Each Fund may engage in short sales in an amount not
exceeding 5% of the Fund's net assets. Each Fund may make loans of portfolio
securities provided the aggregate amounts of such loans do not exceed 5% of the
Fund's net assets. Each Fund may borrow money only for liquidity purposes in an
amount not exceeding 5% of the Fund's total assets at the time the borrowing is
made. Reverse repurchase agreements are considered borrowings for this purpose.
Assets of a Fund may be pledged in connection with borrowings. See "Additional
Information About Fund Investments" and "Investment Limitations" in the
Statement of Additional Information.
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<PAGE>
GENERAL INFORMATION
Fundamental Policies. The investment limitations set forth in the
Statement of Additional Information as fundamental policies may not be changed
without the affirmative vote of the majority of the outstanding shares of the
applicable Fund. The investment objective of each Fund may be changed without
the affirmative vote of a majority of the outstanding shares of the Fund. All
investment policies are non-fundamental unless indicated as fundamental in this
Prospectus or in the Statement of Additional Information.
Shareholder Rights. Any Trustee of the Trust may be removed by vote of
the shareholders holding not less than two-thirds of the outstanding shares of
the Trust. The Trust does not hold an annual meeting of shareholders. When
matters are submitted to shareholders for a vote, each shareholder is entitled
to one vote for each whole share he owns and fractional votes for fractional
shares he owns. All shares of a Fund have equal voting rights and liquidation
rights.
INVESTMENT PERFORMANCE
Each Fund may periodically advertise "average annual total return."
The "total return" of a Fund refers to the dividends and distributions generated
by an investment in the Fund plus the change in the value of the investment from
the beginning of the period to the end of the period. The "average annual total
return" of a Fund refers to the rate of total return for each year of the period
which would be equivalent to the cumulative total return for the period. All
dividends and distributions earned on the investment are assumed to be
reinvested.
Each Fund may also periodically advertise its total return and
cumulative total return over various periods in addition to the value of a
$10,000 investment (made on the date of the initial public offering of the
Fund's shares) as of the end of a specified period. The "total return" and
"cumulative total return" for each Fund are calculated as indicated above for
"total return."
The Fixed Income Fund may periodically advertise its yield for a
thirty day or one month period. The "yield" of the Fixed Income Fund refers to
the income generated by an investment in the Fund over the period, calculated on
a per share basis (using the net asset value per share on the last day of the
period and the average number of shares outstanding during the period). The
Fund's yield quotation will always be accompanied by the Fund's average annual
total return information described above. The Funds may also include in
advertisements data comparing performance with other mutual Funds as reported in
non-related investment media, published editorial comments and performance
rankings compiled by independent organizations and publications that monitor the
performance of mutual funds (such as Lipper Analytical Services or Morningstar).
Performance information may be quoted numerically or may be presented in a
table, graph or other illustration. In addition, Fund performance may be
compared to well-known indices of market performance including the Standard &
Poor's (S&P) 500 Index, the Dow Jones Industrial Average, or the Shearson Lehman
Bond Indexes. The Trust's annual report contains additional performance
information that will be made available upon request and without charge.
The advertised performance data of each Fund is based on historical
performance and is not intended to indicate future performance. Yields and rates
of total return quoted by a Fund may be higher or lower than past quotations,
and there can be no assurance that any yield rate of total return
- 21 -
<PAGE>
will be maintained. The principal value of an investment in each Fund will
fluctuate so that a shareholder's shares, when redeemed, may be worth more or
less than the shareholder's original investment.
Investment Adviser
Equity Analysts Inc.
9200 Montgomery Road
Building D, Suite 13A
Cincinnati, Ohio 45242
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
Auditors
Berge & Company LTD
20 West Ninth Street
Cincinnati, Ohio 45202
No person has been authorized to give any information or to make any
representations, other than those contained in this Prospectus, in connection
with the offering contained in this Prospectus, and if given or made, such
information or representations must not be relied upon as being authorized by
either Fund. This Prospectus does not constitute an offer by either Fund to sell
its shares in any state to any person to whom it is unlawful to make such offer
in such state.
<PAGE>
TABLE OF CONTENTS
Page
FUND EXPENSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . 3
INVESTMENT OBJECTIVES AND STRATEGIES . . . . . . . . . . . . . . . . . . 4
HOW TO INVEST IN EACH FUND . . . . . . . . . . . . . . . . . . . . . . . 5
EXCHANGE PRIVILEGE . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
REDEMPTION OF SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . 8
SHARE PRICE CALCULATION. . . . . . . . . . . . . . . . . . . . . . . . . 9
DIVIDENDS AND DISTRIBUTIONS. . . . . . . . . . . . . . . . . . . . . . . 10
TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
TRUSTEES AND OFFICERS. . . . . . . . . . . . . . . . . . . . . . . . . . 12
OPERATION OF THE FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . 13
INVESTMENT POLICIES AND TECHNIQUES . . . . . . . . . . . . . . . . . . . 13
GENERAL INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
INVESTMENT PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . 21
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENT OF ADDITIONAL INFORMATION
November 26, 1996
*Analysts Stock Fund
*Analysts Fixed Income Fund
This Statement of Additional Information is not a prospectus. It should
be read in conjunction with the Prospectus of Analysts Investment Trust dated
November 26, 1996. A copy of the Prospectus can be obtained by writing the Trust
at 9200 Montgomery Road, Building D, Suite 13A, Cincinnati, Ohio 45242, or by
calling the Trust at (513) 984-3377.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
ANALYSTS INVESTMENT TRUST
9200 Montgomery Road
Building D, Suite 13A
Cincinnati, Ohio 45242
TABLE OF CONTENTS
PAGE
DESCRIPTION OF THE TRUST . . . . . . . . . . . . . . . . . . . . . . 3
TRUSTEE COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . 4
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS. . . . . . . . . . . . 4
INVESTMENT LIMITATIONS . . . . . . . . . . . . . . . . . . . . . . . 12
STATE RESTRICTIONS . . . . . . . . . . . . . . . . . . . . . . . . . 14
THE INVESTMENT ADVISER . . . . . . . . . . . . . . . . . . . . . . . 14
PORTFOLIO TRANSACTIONS AND BROKERAGE . . . . . . . . . . . . . . . . 15
DETERMINATION OF SHARE PRICE . . . . . . . . . . . . . . . . . . . . 16
INVESTMENT PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . 17
CUSTODIAN AND TRANSFER AGENT . . . . . . . . . . . . . . . . . . . . 19
ACCOUNTANTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
INDEPENDENT AUDITORS REPORT. . . . . . . . . . . . . . . . . . . . . 20
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . 21
<PAGE>
DESCRIPTION OF THE TRUST
Analysts Investment Trust (the "Trust") is a diversified, open-end
investment company established under the laws of Ohio by an Agreement and
Declaration of Trust dated May 28, 1993 (the "Trust Agreement"). The Trust
Agreement permits the Trustees to issue an unlimited number of shares of
beneficial interest of separate series without par value. Shares of two series
have been authorized, which shares constitute the interests in Analysts Stock
Fund and Analysts Fixed Income Fund.
Each share of a series represents an equal proportionate interest in the
assets and liabilities belonging to that series which each other share of that
series and is entitled to such dividends and distributions out of income
belonging to the series as are declared by the Trustees. The shares do not have
cumulative voting rights or any preemptive or conversion rights, and the
Trustees have the authority from time to time to divide or combine the shares of
any series into a greater or lesser number of shares of that series so long as
the proportionate beneficial interest in the assets belonging to that series and
the rights of shares of any other series are in no way affected. In case of any
liquidation of a series, the holders of shares of the series being liquidated
will be entitled to receive as a class a distribution out of the assets, net of
the liabilities, belonging to that series. Expenses attributable to any series
are borne by that series. Any general expenses of the Trust not readily
identifiable as belonging to a particular series are allocated by or under the
direction of the Trustees in such manner as the Trustees determine to be fair
and equitable. No shareholder is liable to further calls or to assessment by the
Trust without his express consent.
Upon sixty days prior written notice to shareholders, a Fund may make
redemption payments in whole or in part in securities or other property if the
Trustees determine that existing conditions make cash payments undesirable. Each
share of each Fund is subject to redemption at any time if the Board of Trustees
determines in its sole discretion that failure to so redeem may have materially
adverse consequences to all or any of the shareholders of the Trust or any Fund
of the Trust. For example, if the Trustees determine that failure to redeem
might have materially adverse tax consequences to all or any of the shareholders
due to changes in tax laws, the Trustees may exercise their discretion to redeem
shares. For other information concerning the purchase and redemption of shares
of the Funds, see "How to Invest in Each Fund," "Redemption of Shares" and
"Exchange Privilege" in the Prospectus. For a description of the methods used to
determine the share price and value of each Fund's assets, see "Share Price
Calculation" in the Prospectus.
As of September 3, 1996, the following persons owned five percent (5%)
or more of the Stock Fund: David L. Manzler, Sr., 8425 Blue Cut Lane, Cincinnati
Ohio - 14.82%.
As of September 3, 1996, the following persons owned five percent (5%)
or more of the Fixed Income Fund: Richard Thomas, 6250 Hawk Ridge Lane,
Cincinnati, Ohio - 8.36%; David L. Manzler, Sr. - 6.75%; Zimmer Motors, Inc.
Defined Benefit Plan, 1086 Burlington Pike, Florence, Kentucky - 6.25%; Cannava
Family Trust, 5316 Wakefield Place, Cincinnati, Ohio - 5.54%; Foster Boyd, 622
Timber Lane, Wilmington, Ohio - 5.40%; and G. Evelyn Clemmons, 2661 Suann
Avenue, Grove City, Ohio - 5.43%.
As of September 3, 1996, the Trustees and Officers as a group
beneficially owned 17.50% of the Stock Fund and 7.40% of the Fixed Income Fund.
<PAGE>
TRUSTEE COMPENSATION
The compensation paid to the Trustees of the Trust for the year ended
July 31, 1996 is set forth in the following table:
<TABLE>
<S> <C> <C>
Name Aggregate Compensation Total Compensation From
From Trust(1) Trust (the Trust is not in a
Fund Complex)(1)
David Lee Manzler, Jr. $0 $0
David L. Manzler, Sr. $0 $0
Walter E. Bowles, III $550 $550
Robert W. Buechner $550 $550
David J. Orth $300 $300
Anthony J. Schement $550 $550
<FN>
(1) Trustee fees are Trust expenses. However, because the management
agreement obligates the Adviser to pay all of the operating expenses of
the Trust (with limited exceptions), the Adviser makes the actual
payment.
</FN>
</TABLE>
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS
This section contains a more detailed discussion of some of the
investments a Fund may make and some of the techniques it may use, as described
in the Prospectus (see "Investment Objectives and Strategies" and "Investment
Policies and Techniques").
A. Corporate Debt Securities. Corporate debt securities are bonds or
notes issued by corporation and other business organizations, including business
trusts, in order to finance their credit needs. Corporate debt securities
include commercial paper which consists of short term (usually from one to two
hundred seventy days) unsecured promissory notes issued by corporations in order
to finance their current operations.
Both Funds may invest in fixed income securities rated B or higher by
Standard & Poor's Corporation ("S&P") or by Moody's Investors Services, Inc.
("Moody's"), or if unrated, determined by the Adviser to be of comparable
quality. Generally, investments in securities in the lower rating categories
provide higher yields but involve greater volatility of price and risk of loss
of principal and interest than investments in securities with higher ratings.
Securities rated lower than Baa by Moody's or BBB by S&P are considered
speculative. In addition, lower ratings reflect a greater possibility of an
adverse change in the financial conditions affecting the ability of the issuer
to make payments of principal and interest. The market price of lower rated
securities generally responds to short term corporate and market developments to
a greater extent than higher rated securities which react primarily to
fluctuations in the general level of interest rates. Lower rated securities will
also be affected by the market's perception of their credit quality and the
outlook for economic growth.
<PAGE>
In the past, economic downturns or an increase in interest rates have under
certain circumstances caused a higher incidence of default by the issuers of
these securities and may do so in the future, especially in the case of highly
leveraged issuers.
The prices for these securities may be affected by legislative and
regulatory developments. For example, new federal rules require that savings and
loan associations gradually reduce their holdings of high-yield securities. An
effect of such legislation may be to significantly depress the prices of
outstanding lower rated securities. The market for lower rated securities may be
less liquid than the market for higher rated securities. Furthermore, the
liquidity of lower rated securities may be affected by the market's perception
of their credit quality. Therefore, judgment may at times play a greater role in
valuing these securities than in the case of higher rated securities, and it
also may be more difficult during certain adverse market conditions to sell
lower rated securities at their fair value to meet redemption requests or to
respond to changes in the market.
If the rating of a security by S&P or Moody's drops below investment
grade, the Adviser will dispose of the security as soon as practicable
(depending on market conditions) unless the Adviser determines based on its own
credit analysis that the security provides the opportunity of meeting the Fund's
objective without presenting excessive risk. The Adviser will consider all
factors which it deems appropriate, including ratings, in making investment
decisions for the Funds and will attempt to minimize investment risk through
diversification, investment analysis and monitoring of general economic
conditions and trends. While the Adviser may refer to ratings, it does not rely
exclusively on ratings, but makes its own independent and ongoing review of
credit quality. Neither Fund will invest more than 5% of the value of its net
assets in securities that are below investment grade.
B. Municipal Securities. Municipal securities are issued to obtain funds
to construct, repair or improve various public facilities such as airports,
bridges, highways, hospitals, housing, schools, streets and water and sewer
works, to pay general operating expenses or to refinance outstanding debts. They
also may be issued to finance various private activities, including the lending
of funds to public or private institutions for construction of housing,
educational or medical facilities or the financing of privately owned or
operated facilities. Municipal securities consist of tax exempt bonds, tax
exempt notes and tax exempt commercial paper. Tax exempt notes generally are
used to provide short term capital needs and generally have maturities of one
year or less. Tax exempt commercial paper typically represents short term,
unsecured, negotiable promissory notes.
The two principal classifications of municipal securities are" general
obligations" and "revenue" bonds. General obligation bonds are backed by the
issuer's full credit and taxing power. Revenue bonds are backed by the revenues
of a specific project, facility or tax. Industrial development revenue bonds are
a specific type of revenue bond backed by the credit of the private issuer of
the facility, and therefore investments in these bonds have more potential risk
that the issuer will not be able to meet scheduled payments of principal and
interest. Neither Fund will invest more than 5% of its net assets in municipal
securities.
C. Zero Coupon and Pay in Kind Bonds. Corporate debt securities and
municipal securities include so-called "zero coupon" bonds and "pay-in-kind"
bonds. Zero coupon bonds are
<PAGE>
issued at a significant discount from their principal amount in lieu of paying
interest periodically. Pay-in-kind bonds allow the issuer, at its option, to
make current interest payments on the bonds either in cash or in additional
bonds. The value of zero coupon bonds and pay-in-kind bonds is subject to
greater fluctuation in response to changes in market interest rates than bonds
which make regular payments of interest. Both of these types of bonds allow any
issuer to avoid the need to generate cash to meet current interest payments.
Accordingly, such bonds may involve greater credit risks than bonds which make
regular payment of interest. Even though zero coupon bonds and pay-in-kind bonds
do not pay current interest in cash, the applicable Fund is required to accrue
interest income on such investments and to distribute such amounts at least
annually to shareholders. Thus, a Fund could be required at times to liquidate
other investments in order to satisfy its dividend requirements. Neither Fund
will invest more than 5% of its net assets in zero coupon bonds or pay-in-kind
bonds.
D. Financial Service Industry Obligations. Financial service industry
obligations including among others, the following:
(1) Certificates of Deposit. Certificates of deposit are
negotiable certificates evidencing the indebtedness of a commercial bank or a
savings and loan association to repay funds deposited with it for a definite
period of time (usually from fourteen days to one year) at a stated or variable
interest rate.
(2) Time Deposits. Time deposits are non-negotiable deposits
maintained in a banking institution or a savings and loan association for a
specified period of time at a stated interest rate. Time deposits are considered
to be illiquid prior to their maturity.
(3) Bankers' Acceptances. Bankers' acceptances are credit
instruments evidencing the obligation of a bank to pay a draft which has been
drawn on it by a customer, which instruments reflect the obligation both of the
bank and of the drawer to pay the face amount of the instrument upon maturity.
E. Asset-Backed and Receivable-Backed Securities. Each Fund is permitted
to invest in asset-backed and receivable-backed securities. Several types of
asset-backed and receivable-backed securities are available to investors,
including CARs (SM) (Certificates for Automobile Receivables (SM)) and interests
in pools of credit card receivables. Asset-backed and receivable-backed
securities are undivided fractional interests in pools of consumer loans
(unrelated to mortgage loans) held in a trust. Payments or principal and
interest are passed through to certificateholders and are typically supported by
some form of credit enhancement, such as a letter of credit, surety bond,
limited guaranty, or senior/subordination. The degree of credit enhancement
varies, but generally amounts to only a fraction of the asset-backed and
receivable-backed security's par value until exhausted. If the credit
enhancement is exhausted, certificateholders may experience losses or delays in
payment if the requirement payments of principal and interest are not made to
the trust with respect to the underlying loans. The value of these securities
also may change because of changes in the market's perception of the
creditworthiness of the servicing agent for the loan pool, the originator of the
loans or the financial institution providing the credit enhancement.
Asset-backed and receivable-backed securities are ultimately dependent upon
payment of consumer loans by individuals, and the certificateholder generally
has no recourse against the entity that originated the
<PAGE>
loans. The underlying loans are subject to prepayments which shorten the
securities' weighted average life and may lower their return. As prepayments
flow through at par, total returns would be affected by the prepayments: if a
security were trading at a premium, its total return would be lowered by
prepayments, and if a security were trading at a discount, its total return
would be increased by prepayments. Neither Fund will invest more than 5% of its
net assets in asset-backed or receivable-backed securities.
F. Forward Commitments and Reverse Repurchase Agreements. Each Fund may
enter into reverse repurchase agreements. Reverse repurchase agreements involve
sales of portfolio security by a Fund to member banks of the Federal Reserve
System or recognized securities dealers, concurrently with an agreement by the
Fund to repurchase the same securities at a later date at a fixed price, which
is generally equal to the original sales price plus interest. The Fund retains
record ownership and the right to receive interest and principal payments on the
portfolio security involved. The Fund's objective in such a transaction would be
to obtain funds to pursue additional investment opportunities whose yield would
exceed the cost of the reverse repurchase transaction. Generally, the use of
reverse repurchase agreements should reduce portfolio turnover and increase
yield. In the event of bankruptcy or other default by the purchaser, the Fund
could experience both delays in repurchasing the portfolio securities and
losses. Reverse repurchase agreements constitute a borrowing by a Fund and will
not represent more than 5% of the net assets of either Fund.
Each Fund will direct its Custodian to place cash or U.S. government
obligations in a separate account of the Trust in an amount equal to the
commitments of the Fund to purchase or repurchase securities as a result of its
forward commitment or reverse repurchase agreement obligations. With respect to
forward commitments to sell securities, the Trust will direct its Custodian to
place the securities in a separate account. When a separate account is
maintained in connection with forward commitment transactions to purchase
securities or reverse repurchase agreements, the securities deposited in the
separate account will be valued daily at market for the purpose of determining
the adequacy of the securities in the account. If the market value of such
securities declines, additional cash or securities will be placed in the account
on a daily basis so that the market value of the account will equal the amount
of the Fund's commitments to purchase or repurchase securities. To the extend
funds are in a separate account, they will not be available for new investment
or to meet redemptions.
Securities purchased on a forward commitment basis, securities subject
to reverse repurchase agreements and the securities held in each Fund's
portfolio are subject to changes in market value based upon the public's
perception of the creditworthiness of the issuer and changes in the level of
interest rates (which will generally result in all of those securities changing
in value in the same way, i.e., all those securities experiencing appreciation
when interest rates decline and depreciation when interest rates rise).
Therefore, if in order to achieve a higher level of income, the Fund remains
substantially fully invested at the same time that it has purchased securities
on a forward commitment basis or entered into reverse repurchase transactions,
there will be a possibility that the market value of the Fund's assets will have
greater fluctuation.
With respect to 75% of the total assets of each Fund, the value of the
Fund's commitments to purchase or repurchase the securities of any one issuer,
together with the value of all securities of such issuer owned by the Fund, may
not exceed 5% of the value of the Fund's total assets at the
<PAGE>
time the commitment to purchase or repurchase such securities is made; provided,
however, that this restriction does not apply to U.S. government obligations or
repurchase agreements with respect thereto. In addition, each Fund will maintain
as asset coverage of 300% for all of its borrowings and reverse repurchase
agreements. Subject to the foregoing restrictions, there is no limit on the
percentage of the Fund's total assets which may be committed to such purchases
or repurchases.
G. Loan Participation Interests. Loan participation interests are
interests in debt obligations (such as corporate loans) that are owned by banks
or other financial institutions. Loan participation interests are subject to the
credit risks generally associated with the corporate borrower; however, certain
loan participation interests may be backed by irrevocable letters of credit or a
guarantee of the bank or financial institution. In the event of a default by the
corporate borrower, a Fund may be required to assert its rights through the
financial intermediary which may subject the Fund to delays, expenses and risks
that are greater than those that would have been involved if the Fund had
purchased a direct obligation (such as commercial paper) of such borrower.
Moreover, the Fund may also be subject to the risk that the financial
intermediary may become insolvent. Neither Fund will invest more than 5% of its
net assets at the time of purchase in loan participation interests.
H. Illiquid Securities. The portfolio of each Fund may contain illiquid
securities. Illiquid securities generally include securities which cannot be
disposed of promptly and in the ordinary course of business without taking a
reduced price. Securities may be illiquid due to contractual or legal
restrictions on resale or lack of a ready market. The following securities are
considered to be illiquid: repurchase agreements and time deposits maturing in
more than seven days, options traded in the over-the-counter market, nonpublicly
offered securities, stripped CMOs, CMOs for which there is no established
market, restricted securities, and mortgage-related securities which cannot be
disposed of within seven days in the usual course of business without taking a
reduced price. The Adviser and the Trustees will continually monitor the
secondary markets for mortgage-related securities and are responsible for making
the determination of which securities are considered to be illiquid. Neither
Fund will invest more than 5% of its net assets in illiquid securities.
I. Restricted Securities. Restricted securities are securities the
resale of which is subject to legal or contractual restrictions. Restricted
securities may be sold only in privately negotiated transactions, in a public
offering with respect to which a registration statement is in effect under the
Securities Act of 1933 or pursuant to Rule 144 or Rule 144A promulgated under
such Act. Where registration is required, the Fund may be obligated to pay all
or part of the registration expense, and a considerable period may elapse
between the time of the decision to sell and the time such security may be sold
under an effective registration statement. If during such a period adverse
market conditions were to develop, the Fund might obtain a less favorable price
than the price it could have obtained when it decided to sell.
J. Option Transactions. Each Fund may engage in option transactions
involving equity securities, debt securities, futures contracts, stock indexes
and foreign currencies. An option involves either (a) the right or the
obligation to buy or sell a specific instrument or currency at a specific price
until the expiration date of the option, or (b) the right to receive payments or
the obligation to make payments representing the difference between the closing
price of a market index
<PAGE>
and the exercise price of the option expressed in dollars times a specified
multiple until the expiration date of the option. Options are sold (written)
on equity securities, debt securities, future contracts, stock indexes and
foreign currencies. The purchaser of an option on an equity security, debt
security, futures contract or foreign currency pays the seller (the writer) a
premium for the right granted but is not obligated to but or sell the underlying
security, futures contract or currency. The purchaser of an option on a stock
index pays the seller a premium for the right granted, and in return the seller
of such an option is obligated to make the payment. A writer of an option may
terminate the obligation prior to expiration of the option by making an
offsetting purchase of an identical option. Options are traded on organized
exchanges and in the over-the-counter market. Options which each Fund sells
(writes) will be covered or secured, which means that it will own the underlying
security, futures contracts or currency in the case of a call option and that
the Fund will segregate with the Trust's Custodian liquid assets sufficient to
purchase the underlying security, futures contracts or currency in the case of
a put option. Each Fund will also segregate and maintain with the Custodian
liquid assets equal to the market value of each put option sold (written) by the
Fund on a stock index. In addition, when a Fund writes options, it may be
required to maintain a margin account, to pledge the underlying securities or
U.S. government obligations or to deposit assets in escrow with the Custodian.
The purchase and writing of options involves certain risks. The
purchase of options limits a Fund's potential loss to the amount of the premium
paid and can afford the Fund the opportunity to profit from favorable movements
in the price of an underlying security or instrument to a greater extent than if
transactions were effected in the security or instrument directly. However, the
purchase of an option could result in a Fund losing a greater percentage of its
investment than if the transaction were effected directly. When a Fund writes a
covered call option, it will receive a premium, but it will give up the
opportunity to profit from a price increase in the underlying security or
instrument above the exercise price as long as its obligation as a writer
continues, and it will retain the risk of loss should the price of the security
or instrument decline. When a Fund writes a secured put option, it will assume
the risk that the price of the underlying security or instrument will fall below
the exercise price, in which case the Fund may be required to purchase the
security or instrument at a higher price than the market price of the security
or instrument. In addition, there can be no assurance that a Fund can effect a
closing transaction on a particular option it has written or that a liquid
secondary market will exist for any particular option at any specific time.
Further, the total premium paid for any option may be lost if the Fund does not
exercise the option or, in the case of over-the-counter options, the writer does
not perform its obligations.
K. Hedging Transactions. Either Fund may hedge all or a portion of its
portfolio investments through the use of options, futures contracts and options
on futures contracts. The objective of the hedging program is to protect a
profit or offset a loss in a portfolio security from future price erosion or to
assure a definite price for a security by acquiring the right or option to
purchase or to sell a fixed amount of the security at a future date. For
example, in order to hedge against an anticipated rise in interest rates that
might cause the value of a Fund's portfolio securities to decline, the Fund
might sell interest rate futures contracts. When hedging of this character is
successful, any depreciation in the value of the hedged portfolio securities
will be substantially offset by an increase in the Fund's equity in the interest
rate futures position. Alternatively, an interest rate futures contract may be
purchased when a Fund anticipates the future purchase of a security but
<PAGE>
expects the rate of return then available in the securities market to be less
favorable than rates currently available in the futures markets.
There is no assurance that the objective of the hedging program
will be achieved, since the success of the program will depend on the Adviser's
ability to predict the future direction of the relevant currency, stock index,
futures contract or interest rates and incorrect predictions by the Adviser may
have an adverse effect on the Funds. In this regard, it should be noted that the
skills and techniques necessary to arrive at such predictions are different from
those needed to predict price changes in individual stocks. The Adviser is
registered as a Commodity Trading Advisor with the Commodity Futures Trading
Commission, is a member of the National Futures Association and has prior
experience in the use of options, futures contracts and options on futures
contracts.
The hedging strategy involves the use of one or more techniques,
including buying and selling options (described above), futures contracts and
options on such futures contracts. A futures contract is a binding contractual
commitment which involves either (a) the delivery and payment for a specified
amount of securities or currency at a price agreed upon at the time the contract
is entered into but with actual delivery made during a specified period in the
future, or (b) the payment or receipt of payments representing, respectively,
the loss or gain of a specified group of stocks or market index. The securities
or currency underlying the contract may be government or corporate bonds (an
interest rate futures contract), foreign currency (a foreign currency futures
contract), or a group of stocks such as a popular market index (a stock index
futures contract). Interest rate futures contracts are currently available in
standardized amounts on government obligations (such as Treasury bills, notes
and bonds), Government National Mortgage Association certificates, corporate
bonds, domestic certificates of deposit and Eurodollar certificates of deposit.
It is expected that other financial instruments will at later dates be subject
to other futures contracts. As new futures contracts are developed and offered
to investors, the Adviser will, consistent with each Fund's investment
objectives and policies, consider making investments in such new futures
contracts. Ordinarily a Fund would enter into interest rate futures contracts to
hedge its investments in fixed income securities such as preferred stocks and
money market obligations, stock index futures contracts to hedge its investments
in common stocks and foreign currency futures contracts to hedge currency risks
associated with investments in foreign securities.
Futures contracts are traded on exchanges licensed and regulated
by the Commodity Futures Trading Commission and analogous foreign regulatory
agencies. Each Fund will be subject to any limitations imposed by the exchanges
with respect to futures contracts trading and positions. A clearing corporation
associated with the particular exchange assumes responsibility for all purchases
and sales and guarantees delivery and payment on the contracts. Although most
futures contracts call for actual delivery or acceptance of the underlying
securities or currency, in most cases the contracts are closed out before
settlement date without the making or taking of delivery. Closing out is
accomplished by entering into an offsetting transaction, which may result in a
profit or a loss. There is no assurance that either Fund will be able to close
out a particular futures contract.
A hedging strategy involving options and futures contracts
entails some risks. For example, the total premium paid for an option on a
futures contract may be lost if a Fund does not
<PAGE>
exercise the option or the writer does not perform his obligations. It is also
possible that the futures contracts selected by a Fund will not follow the price
movement of the underlying securities or stock index. If this occurs, the
hedging strategy may not be successful. Further, if a Fund sells a stock index
futures contract and is required to pay an amount measured by any increase in
the market index, it will be exposed to an indeterminate liability. In addition,
a liquid secondary market may not exist for any particular option or futures
contract at any specific time.
Each Fund will incur transactional costs in connection with the
hedging program. When a Fund purchases or sells a futures contract, an amount of
cash and liquid assets will be deposited in a segregated account with the
Trust's Custodian to guarantee performance of the futures contract. The amount
of such deposits will depend upon the requirements of each exchange and broker
and will vary with each futures contract. Because open futures contract
positions are marked to market and gains and losses are settled on a daily
basis, a Fund may be required to deposit additional funds in such a segregated
account if it has incurred a net loss on its open futures contract positions on
any day.
The Trust has filed a supplemental notice of eligibility with the
Commodity Futures Trading Commission ("CFTC") to claim relief from regulation as
a commodity "pool" within the meaning of the CFTC's regulations. In its filing,
the Trust has represented that each Fund's transactions in futures contracts and
options on futures contracts will constitute bona fide hedging transactions
within the meaning of such regulations and that each Fund will enter into
commitments which require as deposits for initial margin for futures contracts
or premiums for options no futures contracts no more than 5% of the fair market
value of its assets.
L. Loans of Portfolio Securities. Each Fund may make short and long term
loans of its portfolio securities. Under the lending policy authorized by the
Board of Trustees and implemented by the Adviser in response to requests of
broker-dealers or institutional investors which the Adviser deems qualified, the
borrower must agree to maintain collateral, in the form of cash or U.S.
government obligations, with the Fund on a daily mark-to market basis in an
amount at least equal to 100% of the value of the loaned securities. The Fund
will continue to receive dividends or interest on the loaned securities and may
terminate such loans at any time or reacquire such securities in time to vote on
any matter which the Board of Trustees determines to be important. With respect
to loans of securities, there is the risk that the borrower may fail to return
the loaned securities or that the borrower may not be able to provide additional
collateral. No loan of securities will be made if, as a result, the aggregate
amount of such loans would exceed 5% of the value of the Fund's total assets.
M. Short Sales. Each Fund may sell a security short in anticipation of a
decline in the market value of the security. When a Fund engages in a short
sale, it sells a security which it does not own. To complete the transaction,
the Fund must borrow the security in order to deliver it to the buyer. The Fund
must replace the borrowed security by purchasing it at the market price at the
time of replacement, which may be more or less than the price at which the Fund
sold the security. The Fund will incur a loss as a result of the short sale if
the price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund will realize a
profit if the security declines in price between those dates.
<PAGE>
In connection with its short sales, a Fund will be required to
maintain a segregated account with its Custodian of cash or high grade liquid
assets equal to the market value of the securities sold less any collateral
deposited with its broker. The Fund will limit its short sales so that no more
than 5% of its net assets (less all its liabilities other than obligations under
the short sales) will be deposited as collateral and allocated to the segregated
account. However, the segregated account and deposits will not necessarily limit
the Fund's potential loss on a short sale, which is limited.
INVESTMENT LIMITATIONS
Fundamental. The investment limitations described below have been
adopted by the Trust with respect to each Fund and are fundamental
("Fundamental"), i.e., they may not be changed without the affirmative vote of a
majority of the outstanding shares of the applicable Fund. As used in the
Prospectus and this Statement of Additional Information, the term "majority" of
the outstanding shares of the Trust (or of any series) means the lesser of (1)
67% or more of the outstanding shares of the Trust (or the applicable series)
present at a meeting, if the holders of more than 50% of the outstanding shares
of the Trust (or applicable series) are present or represented at such meeting;
or (2) more than 50% of the outstanding shares of the Trust (or the applicable
series). Other investment practices which may be changed by the Board of
Trustees without the approval of shareholders to the extent permitted by
applicable law, regulation or regulatory policy are considered non-fundamental
("Non-Fundamental").
1. Borrowing Money. The Fund will not borrow money, except (a) from a
bank, provided that immediately after such borrowing there is an asset coverage
of 300% for all borrowings of the Fund; or (b) from a bank or other persons for
temporary purposes only, provided that such temporary borrowings are in an
amount not exceeding 5% of the Fund's total assets at the time when the
borrowing is made. This limitation does not preclude the Fund from entering into
reverse repurchase transactions, provided that the Fund has an asset coverage of
300% for all borrowings and repurchase commitments of the Fund pursuant to
reverse repurchase transactions.
2. Senior Securities. The Fund will not issue senior securities. This
limitation is not applicable to activities that may be deemed to involve the
issuance or sale of a senior security by the Fund, provided that the Fund's
engagement in such activities is (a) consistent with or permitted by the
Investment Company Act of 1940, as amended, the rules and regulations
promulgated thereunder, or interpretations of the Securities and Exchange
Commission or its staff and (b) as described in the Prospectus and this
Statement of Additional Information.
3. Underwriting. The Fund will not act as underwriter of securities
issued by other persons. This limitation is not applicable to the extent that,
in connection with the disposition of portfolio securities (including restricted
securities), the Fund may be deemed an underwriter under certain federal
securities laws.
4. Real Estate. The Fund will not purchase or sell real estate. This
limitation is not applicable to investments in securities which are secured by
or represent interests in real estate. This limitation does not preclude the
Fund from investing in mortgage-related securities, or
<PAGE>
investing in companies which are engaged in the real estate business or have a
significant portion of their assets in real estate (including real estate
investment trusts).
5. Commodities. The Fund will not purchase or sell commodities unless
acquired as a result of ownership of securities or other investments. This
limitation does not preclude the Fund from purchasing or selling options or
futures contracts, from investing in securities or other instruments backed by
commodities or from investing in companies which are engaged in a commodities
business or have a significant portion of their assets in commodities.
6. Loans. The Fund will not make loans to other persons, except (a) by
loaning portfolio securities, (b) by engaging in repurchase agreements, or (c)
by purchasing nonpublicly offered debt securities. For purposes of this
limitation, the term "loans" shall not include the purchase of a portion of an
issue of publicly distributed bonds, debentures or other securities.
7. Concentration. The Fund will not invest 25% or more of its total
assets in a particular industry. This limitation is not applicable to
investments in obligations issued or guaranteed by the U.S. government,
its agencies and instrumentalities or repurchase agreements with respect
thereto.
With respect to the percentages adopted by the Trust as maximum
limitations on its investment policies and limitations, an excess above the
fixed percentage will not be a violation of the policy or limitation unless the
excess results immediately and directly from the acquisition of any security or
the action taken.
Notwithstanding any of the foregoing limitations, any investment
company, whether organized as a trust, association or corporation, or a personal
holding company, may be merged or consolidated with or acquired by the Trust,
provided that if such merger, consolidation or acquisition results in an
investment in the securities of any issuer prohibited by said paragraphs, the
Trust shall, within ninety days after the consummation of such merger,
consolidation or acquisition, dispose of all of the securities of such issuer so
acquired or such portion thereof as shall bring the total investment therein
within the limitations imposed by said paragraphs above as of the date of
consummation.
Non-Fundamental. The following limitations have been adopted by the
Trust with respect to each Fund and are Non-Fundamental.
i. Pledging. The Fund will not mortgage, pledge, hypothecate or in any
manner transfer, as security for indebtedness, any assets of the Fund except as
may be necessary in connection with borrowings described in limitation (1)
above. Margin deposits, security interests, liens and collateral arrangements
with respect to transactions involving options, futures contracts, short sales
and other permitted investments and techniques are not deemed to be a mortgage,
pledge or hypothecation of assets for purposes of this limitation.
ii. Margin Purchases. The Fund will not purchase securities or evidences
of interest thereon on "margin." This limitation is not applicable to short term
credit obtained by the Fund for the clearance of purchases and sales or
redemption of securities, or to arrangements with respect to
<PAGE>
transactions involving options, futures contracts, short sales and other
permitted investments and techniques.
iii. Options. The Fund will not purchase or sell puts, calls, options
or straddles except as described in the Prospectus and this Statement of
Additional Information.
iv. Illiquid Investments. The Fund will not invest more than 5% of
its net assets in securities for which there are legal or contractual
restrictions on resale and other illiquid securities.
STATE RESTRICTIONS
To comply with the current blue sky regulations of the State of Ohio,
each Fund presently intends to observe the following restrictions, which may be
changed by the Board of Trustees without shareholder approval.
Each Fund will not purchase or retain securities of any issuer if the
Trustees and officers of the Trust or of the Adviser, who individually own
beneficially more than 0.5% of the outstanding securities of such issuer,
together own beneficially more than 5% of such securities. Each Fund will not
purchase securities issued by other investment companies except by purchase in
the open market where no commission or profit to a sponsor or dealer results
from such purchase other than customary broker's commission or except when such
purchase is part of a plan of merger, consolidation, reorganization or
acquisition. Each Fund will not borrow (other than by entering into reverse
repurchase agreements), pledge, mortgage or hypothecate more than one-third of
its total assets. In addition, each Fund will engage in borrowing (other than
reverse repurchase agreements) only for emergency or extraordinary purposes and
not for leverage. Each Fund will not invest more than 15% of its total assets in
securities of issuers which, together with any predecessors, have a record of
less than three years continuous operation or securities of issuers which are
restricted as to disposition. Each Fund will not purchase the securities of any
issuer if such purchase at the time thereof would cause more than 10% of the
voting securities of any issuer to be held by the Fund. Neither Fund will
purchase securities of an issuer if, as to 50% of the Fund's total assets, the
purchase at the time thereof would cause more than 25% of the Fund's total
assets to be invested in the securities of any one issuer and, as to the
remaining 50% of the Fund's assets, the purchase at the time thereof would cause
more than 25% of the Fund's total assets to be invested in the securities of any
one issuer. This limitation does not apply to obligations of the United States
government or its agencies or instrumentalities.
THE INVESTMENT ADVISER
The Trust's investment adviser is Equity Analysts Inc., 9200 Montgomery
Road, Building D, Suite 13A, Cincinnati, Ohio 45242. David Lee Manzler, Jr.
and David L. Manzler, Sr. may be deemed to be controlling persons and affiliates
of the Adviser due to their ownership of its shares and their positions,
respectively, as officers and directors of the Adviser. The Manzlers, because
of such affiliation, may receive benefits from the management fees paid to the
Adviser.
Under the terms of the management agreement (the "Agreement"), the
Adviser manages the Funds' investments subject to approval of the Board of
Trustees and pays all of the expenses of the
<PAGE>
Funds except brokerage, taxes, interest and extraordinary expenses. As
compensation for the Adviser's management services and agreement to pay the
Fund's expenses, Analysts Stock Fund is obligated to pay the Adviser a fee
computed and accrued daily and paid monthly at an annual rate of 2.00% of the
average daily net assets of the Fund up to and including $20,000,000, 1.75% of
such assets from $20,000,000 to and including $40,000,000, 1.5% of such assets
from $40,000,000 to and including $100,000,000 and 1.25% of such assets in
excess of $100,000,000. As compensation for the Adviser's management services
and agreement to pay the Fund's expenses, Analysts Fixed Income Fund is
obligated to pay the Adviser a fee computed and accrued daily and paid monthly
at an annual rate of 1.5% of the average daily net assets of the Fund up to and
including $20,000,000, 1.25% of such assets from $20,000,000 to and including
$40,000,000, 1.00% of such assets from $40,000,000 to and including $100,000,000
and .75% of such assets in excess of $100,000,000.
For the fiscal year ended July 31, 1996, the Analysts Stock Fund paid
advisory fees of $63,141 to the Adviser and the Analysts Fixed Income Fund paid
advisory fees of $27,934 to the Adviser. For the fiscal year ended July 31,
1995, the Analysts Stock Fund paid advisory fees of $42,424 to the Adviser and
the Analysts Fixed Income Fund paid advisory fees of $18,386 to the Adviser. For
the period August 25, 1993 through July 31, 1994, the Analysts Stock Fund paid
advisory fees of $26,777 to the Adviser and the Analysts Fixed Income Fund paid
advisory fees of $13,029 to the Adviser.
The Adviser retains the right to use the name "Analysts" in connection
with another investment company or business enterprise with which the Adviser is
or may become associated, The Trust's right to use the name "Analysts"
automatically ceases thirty days after termination of the Agreement and may be
withdrawn by the Adviser on thirty days written notice.
Equity Analysts Inc. is also the exclusive underwriter for the
distribution of shares of the Funds. Equity Analysts Inc. is obligated to sell
shares of each Fund on a best efforts basis for no compensation. Shares of each
Fund are offered to the public on a continuous basis.
PORTFOLIO TRANSACTIONS AND BROKERAGE
Subject to policies established by the Board of Trustees of the Trust,
the Adviser is responsible for the Trust's portfolio decisions and the placing
of the Trust's portfolio transactions. In placing portfolio transactions, the
Adviser seeks to the best qualitative execution for the Trust, taking into
account such factors as price (including the applicable brokerage commission or
dealer spread), the execution capability, financial responsibility and
responsiveness of the broker or dealer and the brokerage and research services
provided by the broker or dealer. The Adviser generally seeks favorable prices
and commission rates that are reasonable in relation to the benefits received.
The Adviser is specifically authorized to select brokers or dealers who
also provide brokerage and research services to the Trust and/or the other
accounts over which the Adviser exercises investment discretion and to pay such
brokers or dealers a commission in excess of the commission another broker or
dealer would charge if the Adviser determines in good faith that the commission
is reasonable in relation to the value of the brokerage and research services
provided. The determination may be viewed in terms of a particular transaction
or the Adviser's overall
<PAGE>
responsibilities with respect to the Trust and to other accounts over which it
exercises investment discretion.
Research services include supplemental research, securities and economic
analysis, statistical services and information with respect to the availability
of securities or purchasers or sellers of securities and analyses of reports
concerning performance of accounts. The research services and other information
furnished by brokers through whom the Trust effects securities transactions may
also be used by the Adviser in servicing all of its accounts and all such
services may not be used by the Adviser in connection with the Trust. Similarly,
research and information provided by brokers or dealers serving other clients
may be useful to the Adviser in connection with its services to the Trust.
Although research services and other information are useful to the Trust and the
Adviser, it is not possible to place a dollar value on the research and other
information received. It is the opinion of the Board of Trustees and the Adviser
that the review and study of the research and other information will not reduce
the overall cost to the Adviser of performing its duties to the Trust under the
Agreement. Due to research services provided by brokers, the Analysts Stock Fund
directed to brokers $61,813 of brokerage transactions (on which the commissions
were $293), and the Analysts Fixed Income Fund directed to brokers $717,950 of
brokerage transactions (on which the commissions were $306), during the fiscal
year ended July 31, 1996.
Over-the-counter transactions will be placed either directly with
principal market makers or with broker-dealers, if the same or a better price,
including commissions and executions, is available. Fixed income securities are
normally purchased directly from the issuer, an underwriter or a market maker.
Purchases include a concession paid by the issuer to the underwriter and the
purchase price paid to market makers may include the spread between the bid and
asked prices.
To the extent that the Trust and another of the Adviser's clients seek
to acquire the same security at about the same time, the Trust may not be able
to acquire as large a position in such security as it desires or it may have to
pay a higher price for the security. Similarly, the Trust may not be able to
obtain as large an execution of an order to sell or as high a price for any
particular portfolio security if the other client desires to sell the same
portfolio security at the same time. On the other hand, if the same securities
are bought or sold at the same time by more than one client, the resulting
participation in volume transactions could produce better executions for the
Trust. In the event that more than one client wants to purchase or sell the same
security on a given date, the purchases and sales will normally be made by
random client selection.
For the fiscal year ended July 31, 1996, the Analysts Stock Fund and the
Analysts Fixed Income Fund paid brokerage commissions of $2,937, and $1,309,
respectively. For the fiscal year ended July 31, 1995, the Analysts Stock Fund
and the Analysts Fixed Income Fund paid brokerage commissions of $3,770, and
$426, respectively. For the period ended July 31, 1994, the Analysts Stock Fund
and the Analysts Fixed Income Fund paid brokerage commissions of $6,976, and
$4,476, respectively.
DETERMINATION OF SHARE PRICE
The prices (net asset values) of the shares of each Fund is determined
as of the close of trading of the New York Stock Exchange (4:00 P.M., Eastern
time) on each day the Trust is open
<PAGE>
for business. The Trust is open for business on every day except Saturdays,
Sundays and the following holidays: New Year's Day, President's Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
For a description of the methods used to determine the net asset value (share
price), see "Share Price Calculation" in the Prospectus.
INVESTMENT PERFORMANCE
"Average annual total return," as defined by the Securities and Exchange
Commission, is computed by finding the average annual compounded rates of return
(over the one and five year periods and the period from initial public offering
through the end of a Fund's most recent fiscal year) that would equate the
initial amount invested to the ending redeemable value, according to the
following formula:
P(1+T)n=ERV
Where: P = a hypothetical $1,000 initial investment
T = average annual total return
n = number of years
ERV = ending redeemable value at the end of the
applicable period of the hypothetical $1,000
investment made at the beginning of the applicable
period.
The computation assumes that all dividends and distributions are reinvested at
the net asset value on the reinvestment dates and that a complete redemption
occurs at the end of the applicable period.
A Fund's "yield" is determined in accordance with the method defined by
the Securities and Exchange Commission. A yield quotation is based on a 30-day
(or one month) period and is computed by dividing the net investment income per
share earned during the period by the maximum offering price per share on the
last day of the period, according to the following formula:
Yield = 2[(a-b/cd+1)6-1]
Were:
a = dividends and interest earned during the period
b = expenses accrued for the period (net of reimbursements)
c = the average daily number of shares outstanding during the period that
were entitled to receive dividends
d = the maximum offering price per share on the last day of the period
Solely for the purpose of computing yield, dividend income is recognized by
accruing 1/360 of the stated dividend rate of the security each day that the
Fund owns the security. Generally, interest earned (for the purpose of "a"
above) on debt obligations is computed by reference to the yield to maturity of
each obligation held based on the market value of the obligation (including
actual accrued interest) at the close of business on the last business day prior
to the start of the 30-day (or one month) period for which yield is being
calculated, or, with respect to obligations purchased
<PAGE>
during the month, the purchase price (plus actual accrued interest). With
respect to the treatment of discount and premium on mortgage or other
receivable-backed obligations which are expected to be subject to monthly
paydowns of principals and interest, gain or loss attributable to actual monthly
paydowns is accounted for as an increase or decrease to interest income during
the period and discount or premium on the remaining security is not amortized.
The Fixed Income Fund's yield for the one month period ended July 31, 1996 was
5.90%.
A Fund's investment performance will vary depending upon market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund. These factors and possible differences in the methods and time period
used in calculating non-standardized investment performance should be considered
when comparing the Fund's performance to those of other investment companies or
investment vehicles. The risks associated with the Fund's investment objective,
policies and techniques should also be considered. At any time in the future,
investment performance may be higher or lower than past performance, and there
can be no assurance that any performance will continue.
From time to time, in advertisements, sales literature and information
furnished to present or prospective shareholders, the performance of the Funds
may be compared to indices of broad groups of unmanaged securities considered to
be representative of or similar to the portfolio holdings of the appropriate
Fund or considered to be representative of the stock market in general or the
fixed income securities market in general. Analysts Stock Fund will use the
Standard & Poor's 500 Stock Index and the Dow Jones Industrial Average. Analysts
Fixed Income Fund will use the Shearson Lehman Intermediate Government/Corporate
Bond Index. The Shearson Lehman Intermediate Government/Corporate Bond Index
measures the price, income and total return of a group of fixed income
securities maturing in one to ten years. It contains all public obligations of
the U.S. Treasury (excluding flower bonds and foreign-targeted issues), all
publicly traded debt of agencies of the U.S. Government, quasi-federal
corporations and corporate debt guaranteed by the U.S. Government, and all
public, fixed rate, non-convertible, investment grade, domestic corporate debt.
The Index does not include mortgage-backed securities or collateralized mortgage
obligations. The investment performance figures for the Funds and the indices
will include reinvestment of dividends and capital gains distributions.
In addition, the performance of either Fund may be compared to other
groups of mutual funds tracked by any widely used independent research firm
which ranks mutual funds by overall performance, investment objectives and
assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The
objectives, policies, limitations and expenses of other mutual funds in a group
may not be the same as those of the applicable Fund. Performance rankings and
ratings reported periodically in national financial publications such as
Barron's may also be used.
Analysts Stock Fund. The average annual total returns of the Stock Fund
for the years ended July 31, 1996 and July 31, 1995 and for the period from
inception (August 25, 1993) through July 31, 1995 were 6.84%, 15.0% and 12.9%,
respectively.
Analysts Fixed Income Fund. The average annual total returns of the
Fixed Income Fund for the years ended July 31, 1996, and July 31, 1995 and for
the period from inception (August 25, 1993) through July 31, 1995 were 5.84%,
7.6%, and .7%, respectively.
<PAGE>
CUSTODIAN AND TRANSFER AGENT
Star Bank, N.A., 432 Walnut Street, Cincinnati, Ohio is Custodian of the
Funds' investments. The Custodian acts as each Fund's depository, safekeeps its
portfolio securities, collects all income and other payments with respect
thereto, disburses funds at the Fund's request and maintains records in
connection with its duties. The Trust acts as each Fund's transfer agent and, in
such capacity, 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 distribution disbursing agent
and performs other accounting and shareholder service functions.
ACCOUNTANTS
The firm of Berge and Company LTD, 20 West Ninth Street, Cincinnati,
Ohio 45202, has been selected as independent public accountants for the Trust
for the fiscal year ending July 31, 1997.
<PAGE>
EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISORS
ANALYSTS INVESTMENT TRUST
ANNUAL REPORT
July 31, 1996
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
<PAGE>
INDEPENDENT AUDITORS REPORT
To the Shareholders and
Board of Trustees
Analysts Investment Trust
We have audited the accompanying statement of assets and liabilities of the
Analysts Investment Trust (comprising, respectively, the Stock Fund and the
Fixed Income Fund), including the schedules of investments in securities as of
July 31, 1996, the related statements of operations for the year then ended, the
statement of changes in net assets, and financial highlights for each of the two
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trusts' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the period from inception
(August 25, 1993) through July 31, 1994, were audited by other auditors whose
report dated August 29, 1994, expressed an unqualified opinion on those
financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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 July
31, 1996, 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 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 each
of the respective portfolios constituting the Analysts Investment Trust as of
July 31, 1996, the results of their operations for the year then ended, the
changes in their net assets, and the financial highlights for each of the two
years in the period then ended, in conformity with generally accepted accounting
principles.
/s/ Berge & Company, Ltd.
Berge & Company LTD
Cincinnati, Ohio
September 12, 1996
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Common stock: 82.7%
Large Capitalization U.S. Stocks: 23.3%
<C> <S> <C>
Shares Market Value
2,000 Advanced Micro Devices* $ 24,250
556 Allstate Corporation 24,881
200 Ameritech Corporation 11,100
1,100 Banc One Corporation 38,088
200 Bell Atlantic Corporation 11,825
326 Bell South Corporation 13,366
400 Briggs & Stratton Corporation 15,050
2,500 Centerior Energy 18,437
460 Chevron Corporation 26,623
814 Chrysler Corporation 23,097
284 Cincinnati Financial Corporation 15,833
850 Cinergy Corporation 25,181
1,000 CIPSCO Inc. 35,750
500 Compaq Computer Corporation* 27,375
550 Du Pont EI De Nemours 44,413
450 Eastman Kodak Company 33,581
1,000 Entergy 25,500
300 Exxon Corporation 24,675
498 Ford Motor Corporation 16,185
550 General Electric Corporation 45,306
400 Intel Corporation 30,050
600 J.P. Morgan 51,600
1,000 National Fuel Gas 33,750
200 Nynex Corporation 8,975
900 PNC Bank 26,212
1500 Potomac Electric Power 36,187
950 RJR Nabisco Holdings 29,213
600 Sears, Roebuck & Company 24,600
700 Star Banc Corporation 52,500
305 Texaco, Inc. 25,925
1440 Woolworth Corporation* 27,720
---------
Total (Cost: $674,884) $ 847,248
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Small/Medium Capitalization U.S. Stocks: 14.7%
Shares Market Value
1,200 Airborne Freight Corporation $ 25,650
700 Ameron, Inc. 24,500
1,250 Aquarion Company 31,563
1,000 Arvin Industries 21,625
700 Circle Financial Corporation 23,975
1,500 Connecticut Energy 29,250
950 Essex County Gas 22,800
3,000 Fansteel, Inc. 18,375
3,000 Gibson Greetings, Inc.* 36,000
2,000 Handleman Company 9,250
1,900 Marsh Supermarkets Inc. Class B 19,712
1,250 Nash Finch Company 20,156
1,300 Provident Life & Accident Class B 47,450
1,000 S&P 400 Deposit Receipts 43,688
1,400 Sea Containers Ltd Class A 24,500
275 Silicon Graphics, Inc. 6,462
1,250 Sport Supply Group, Inc. 7,188
750 Standard Federal Bank 29,250
1,500 Standard Motor Products 22,500
1,000 Waban, Inc.* 19,000
1,500 Wynns International 36,187
1,200 Yellow Corporation* 15,300
--------
Total (Cost: $510,400) $534,381
Foreign Stocks: 32.6%
600 Akzo NV ADR $ 33,675
1,800 Alcatel Alsthom 29,250
2,000 Anangel-American Shipholding ADR 19,500
1,454 BAT Industries PLC ADR 23,264
3,500 Bet PLC ADR 48,562
400 Brazil Fund, Inc. 8,650
900 British Gas ADR 27,338
1,000 British Steel ADR 27,750
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Foreign Stocks (continued):
Shares Market Value
3,000 BT Shipping LTD. ADR* $ 12,562
900 Buenos Aires Embotella ADR 6,300
750 Cadbury Schwepps PLC ADR 24,281
13,000 Cifra S A De C V ADR 17,592
1,300 Compania Cervecerias Unida ADR 31,037
1,250 CRH PLC ADR 58,906
1,400 Emerging Germany Fund 9,975
1,200 Ericsson L M Tel. Company ADR 24,375
850 Europe Fund, Inc. 11,475
1,150 First Australia Fund, Inc. 9,919
2,000 Hanson PLC ADR 25,500
1,700 Hong Kong Telecommunications ADR 28,050
200 Ito Yakado LTD ADR 45,900
866 Japan Equity Fund, Inc. 9,418
700 KLM Royal Dutch Airlines ADR 22,050
1,050 Koninklijke Ahold N V ADR 53,287
2,600 Makita Corporation 39,650
300 Matsushita Electric 51,300
800 NEC Corp. ADR 42,000
200 Philippine Long Distance Tel. ADR 11,725
400 Polygram N V ADR 22,450
300 Royal Dutch 45,263
1,900 SKF AB ADR 40,613
800 Sony Corp. ADR 51,200
900 TDK Corp. ADR 51,638
1,200 Tele Danmark 28,050
400 Telecom Corp. New Zealand ADR 29,450
600 Telefonos De Mexico ADR 18,375
1,000 Templeton World China Fund 10,500
700 Tokio Marine & Fire Insurance ADR 43,050
1,350 United Newspapers Pub. ADR 26,325
600 Vodafone Group PLC ADR 21,450
1,400 WPP Group PLC ADR 45,500
----------
Total (Cost: $1,078,107) $ 1,187,155
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Real Estate Stocks: 10.0%
Shares Market Value
1,450 American Health Properties $ 30,450
900 Asarco 21,600
1,500 Carr Realty Corporation 36,000
2,800 Commercial Net Lease 38,150
1,500 First Industrial Realty 35,250
2,100 Health & Retirement Properties Trust 35,175
1,500 New Plan Realty Trust 31,875
1,186 Omega Healthcare Investors 33,505
3,500 Property Capital Trust 27,563
1,250 Public Storage Properties XVI 22,187
1,000 Resource Mtg. Capital, Inc. 24,125
1,250 Simon Property Group Inc. 29,375
--------
Total (Cost: $362,602) $ 365,255
Mining/Precious Metals Stocks: 2.1%
1300 Barrick Gold Resources $ 36,238
1500 Pegasus Gold* 18,187
400 Phelps Dodge Corporation 23,500
---------
Total (Cost: $69,370) $ 77,925
---------
Total Common Stock (Cost: $2,695,363) $ 3,011,964
Repurchase Agreements: 16.6%
Face
604,000 4.7% Star Bank Repurchase Agreement, issued
July 31, 1996, due August 7, 1996,
collateralized by $1,130,000
GNMA Pool #8359, 6.5%; due
January 20, 2024. $ 604,000
---------
Total Investment at Market Value
(Cost: $3,299,363) 99.3% $ 3,615,964
All Other Assets less Liabilities 0.7% 26,528
----------
Net Assets 100% $ 3,642,492
==========
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Common Stock: 19.0%
Real Estate Investment Trusts: 14.9%
<C> <S> <C>
Shares Market Value
1,550 American Health Properties $ 32,550
3,000 Berkshire Realty, Inc. 32,250
1,000 Carr Realty Corporation 24,000
2,380 Commercial Net Lease 32,428
1,300 First Industrial Realty 30,550
1,850 Health & Retirement Properties Trust 30,987
1,000 Hospitality Properties Trust 26,375
2,000 Kranzco Realty 31,500
1,189 Omega Healthcare Investors 33,589
1,700 Resource Mortgage Capital, Inc. 41,013
1,250 Simon Property Group Inc. 29,375
--------
Total (Cost $353,149) $ 344,617
Closed End Mutual Funds: 4.1%
3,900 Kleinwort Benson Australian Income Fund $ 35,100
5,800 Putnam Premier Income Fund 43,500
1,500 Templeton Emerging Markets Income Fund 17,437
--------
Total (Cost: $103,260) $ 96,037
Total Common Stock (Cost: $456,409) $ 440,654
Preferred Stocks: 7.3%
2,000 Carolina Power & Light Company $ 51,500
2,000 Consolidated Edison 47,750
700 Environmental Systems Company 10,850
300 James River Corporation 7,463
2,000 Unum Corp. MIDS 51,500
---------
Total Preferred Stock (Cost: $170,708) $ 169,063
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
Corporate Bonds: 38.2%
<C> <S> <C>
Face Market Value
5,000 DuPont E I De Nemours & Company 8.45%, 10/15/96 $ 5,025
3,000 AMR Corp. 8.1%, 11/1/98 3,068
30,000 Merrill Lynch 7.75%, 3/1/99 30,760
4,000 RJR Nabisco Inc. 8.3%, 4/15/99 4,080
35,000 Texaco Capital Corp. 9.0%, 12/15/99 37,323
50,000 DuPont E I De Nemours & Company 9.15%, 4/15/00 53,831
46,000 Household Financial 9.625%, 7/15/00 50,119
4,000 American Telephone & Telegraph 6.0%, 8/1/00 3,888
5,000 First Chicago Corp. 11.25%, 2/20/01 5,806
5,000 Bankamerica Corp. 8.375%, 3/15/02 5,290
100,000 Kentucky Power 6.65%, 5/1/03 97,667
10,000 General Motors Corp. 8.875%, 5/15/03 10,827
10,000 Consolidated Natural Gas Company 5.75%, 8/1/03 9,294
50,000 New York Telephone Company 5.625%, 11/1/03 45,828
50,000 American Telephone & Telegraph Company 6.75%, 4/1/04 49,187
50,000 Nationsbank Corp. 7.75%, 8/15/04 51,204
10,000 Southwestern Bell 5.75%, 9/1/04 9,054
50,000 Pacific Bell Telephone Company 6.25%, 3/1/05 46,794
50,000 U.S. West Communications 6.125%, 11/15/05 46,090
30,000 Chemical Banking Corp. 7.5%, 5/15/10 29,409
40,000 GE Capital Corp Step-Up 7.0%, 10/18/10 38,218
50,000 Coca-Cola Enterprises 7.0%, 12/01/10 45,934
50,000 Citicorp 7.0%, 12/15/10 45,917
50,000 J.P. Morgan 6.610%, 12/15/10 45,712
50,000 GE Capital Corp. Step-Up 7.0%, 3/18/11 48,176
10,000 Caterpillar Inc. Del. 9.375, 8/15/11 11,697
50,000 Aetna Life & Cas Company 6.750%, 9/15/13 45,216
10,000 International Business Machines 8.375%, 11/1/19 10,788
--------
Total Corporate Bonds (Cost: $901,362) $886,202
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 1996
U.S. Government Obligations: 8.0%
Face Market Value
---- ------------
50,000 Tennessee Valley Authority 6.875%, 1/15/02 $ 49,572
50,000 FNMA 6.320%, 7/28/03 47,897
20,000 FNMA 6.420%, 2/25/04 19,130
20,000 Federal Home Loan Bank 8.080%, 8/27/10 19,879
50,000 Federal Home Loan Bank 7.5%, 11/15/10 48,408
--------
Total U.S. Government Obligations (Cost: $190,344) $184,886
Mortgage Backed Obligations: 7.0%
4,721 Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 $ 4,869
5,914 Collaterized Mortgage Securities 1991-3I, 8.55%, 8/20/20 6,031
12,000 FHLMC REMIC 1991 Trust 1177 Class I, 6.95%, 1/15/21 11,618
15,000 FNMA REMIC Series 93-1601, 6.5%, 7/25/22 12,966
12,000 FNMA REMIC 1992 Trust G-53 Class J, 7.0%, 9/25/22 11,290
18,000 FHLMC 1993 Trust 1462 Class D, 7.5%, 11/15/22 17,008
12,000 FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 11,303
20,000 FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 14,313
20,000 FHLMC REMIC 1993 Trust 1497 Class Q, 7.0%, 4/15/23 18,044
20,000 FHLMC REMIC 1993 Trust 1602 Class BB 6.1%, 4/15/23 18,048
12,000 FHLMC REMIC 1993 Trust 1503 Class H, 7.0%, 5/15/23 10,825
12,000 FNMA REMIC 1993 Trust 50 Class L, 7.0%, 5/25/23 11,284
4,000 FHLMC REMIC 1993 Trust G13 Class D, 6.75%, 6/25/23 3,708
12,000 Ray Ellison Mac Series 92-H Class I, 7.1%, 12/31/23 11,318
--------
Total Mortgage Backed (Cost: $181,064) $162,625
Repurchase Agreements: 18.9%
438,000 4.7% Star Bank Repurchase Agreement, issued
July 31, 1996, due August 7, 1996,
collateralized by $1,130,000 GNMA
Pool # 8359, 6.5%; due January 20, 2024. $438,000
--------
Total Investment at Market Value (Cost: $2,337,887) 98.4% $2,281,430
All Other Assets less Liabilities 1.6% 37,793
---------
Net Assets 100% $2,319,223
=========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
July 31, 1996
<S> <C> <C>
Fixed
Stock Fund Income Fund
ASSETS
Investment securities, at value
Unaffiliated Issuers $ 3,011,964 $ 1,843,430
Repurchase Agreements 604,000 438,000
---------- ----------
3,615,964 2,281,430
Receivable for investment securities sold 245
Dividends and interest receivable 8,132 23,349
Cash 24,952 17,280
---------- ----------
Total Assets 3,649,048 2,322,304
---------- ----------
LIABILITIES
Management fee payable 6,556 3,081
---------- ----------
Total Liabilities 6,556 3,081
---------- ----------
NET ASSETS $ 3,642,492 $ 2,319,223
========== ==========
Net assets consist of:
Capital shares $ 3,306,449 $ 2,394,958
Accumulated undistributed net investment income 8,141 12,857
Accumulated net realized gains (losses)
from securities transactions 11,997 (32,624)
Net unrealized appreciation (depreciation)on investments 315,905 (55,968)
---------- ----------
NET ASSETS $ 3,642,492 $ 2,319,223
========== ==========
Net asset value, offering price, and
redemption price per share $ 18.28 $ 13.62
=========== ===========
Fund shares outstanding 199,273 170,327
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF OPERATIONS
Year ended July 31, 1996
<S> <C> <C>
Fixed
Stock Fund Income Fund
INVESTMENT INCOME:
Dividends $ 104,921 $ 40,799
Interest 17,633 92,333
-------- --------
Total Investment Income 122,554 133,132
EXPENSES:
Management Fee 63,141 27,934
-------- --------
NET INVESTMENT INCOME 59,413 105,198
REALIZED AND UNREALIZED GAINS ON INVESTMENTS:
Net realized gains (losses) from security transactions 25,122
Net change in net unrealized appreciation (depreciation)
on investments 108,455 (1,075)
-------- --------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS 133,577 (1,075)
-------- --------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 192,990 $ 104,123
======== ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
Years ended July 31, 1996 and 1995
<S> <C> <C> <C> <C>
Fixed
Stock Fund Income Fund
1996 1995 1996 1995
---- ---- ---- ----
FROM OPERATIONS:
Net investment income $ 59,413 $ 30,970 $105,198 $ 73,306
Net realized gains (losses) from
security transactions 25,122 60,118 (9,397)
Net realized gains from covered call option transactions 6,016
Net change in net unrealized appreciation
(depreciation) on investments 108,455 216,927 (1,075) 36,231
------- ------- -------- -------
Net increase (decrease) in net assets from operations 192,990 314,031 104,123 100,140
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income 53,510 34,771 100,346 72,527
From capital gains 75,004 16,114
-------- ------- -------- -------
Decrease in net assets from distributions
to shareholders 128,514 34,771 116,460 72,527
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 1,347,445 931,945 1,041,702 738,491
Net asset value of shares issued in reinvestment
of distributions to shareholders 128,415 34,750 86,046 63,505
Payment for shares redeemed (447,334) (764,831) (273,154) (431,283)
--------- ------- -------- --------
Net increase from fund share transactions 1,028,526 201,864 854,594 370,713
--------- ------- ------- -------
NET INCREASE IN NET ASSETS: 1,093,002 481,124 842,257 398,326
NET ASSETS:
Beginning of period 2,549,490 2,068,366 1,476,966 1,078,640
--------- --------- --------- ---------
End of period $3,642,492 $2,549,490 $2,319,223 $1,476,966
========= ========= ========= =========
Accumulated undistributed net investment income $ 8,141 $ 2,239 $12,857 $ 8,004
========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Years ended July 31, 1996 and 1995 and
the Period from Inception (August 25, 1993) through July 31, 1994
<S> <C> <C> <C> <C> <C> <C>
Fixed
Stock Fund Income Fund
------------------------------ ------------------------------
1996 1995 1994 1996 1995 1994
---- ---- ---- ---- ---- ----
Net asset value beginning of period $17.87 $15.79 $14.46 $13.57 $13.38 $14.74
Income from investment operations:
Net investment income .34 .24 .19 .78 .80 .77
Net realized and unrealized gains on securities .81 2.11 1.24 .01 .18 (1.63)
------ ------ ------ ------ ------ ------
Total from investment operations 1.15 2.35 1.43 .79 .98 (.86)
Less distributions:
Dividends from net investment income (.31) (.27) (.10) (.74) (.79) (.50)
Dividends from capital gains (.43)
------ ------ ------ ------ ------ ------
Total distributions (.74) (.27) (.10) (.74) (.79) (.50)
------ ------ ------ ------ ------ ------
Net asset value, end of period $18.28 $17.87 $15.79 $13.62 $13.57 $13.38
====== ====== ====== ====== ====== ======
Total return 6.84% 15.01% 10.70%* 5.84% 7.61% (6.20%)*
======= ====== ====== ====== ====== ======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $3,642 $2,549 $2,068 $2,319 $1,477 $1,079
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 1.89% 1.45% 1.18% 5.65% 6.03% 5.57%
Portfolio turnover rate 6.19% 32.02% 4.52% 22.34% 18.01% 22.67%
Average commission rate paid $0.086 - - $ 0.082 - -
<FN>
*Annualized
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
Analysts Investment Trust (AIT) is registered under the Investment Advisor Act
of 1940, as amended, as a no-load, diversified, open end management investment
company. AIT was established as an Ohio Business Trust under a Declaration of
Trust dated May 28, 1993. The Declaration of Trust, as amended, permits the
Trustees to issue an unlimited number of shares of the Analysts Stock Fund (ASF)
and the Analysts Fixed Income Fund (AFI) (The Funds). The following is a summary
of the significant accounting policies of AIT:
Securities Valuation: Equity securities, options and commodities listed on
exchanges or on the NASDAQ are valued at the last sale price as of the close of
business on the day the securities are being valued. Lacking a last sale price,
a security is generally valued at its last bid price, except when, in Equity
Analysts Inc.'s (The Advisor) opinion, the last bid price does not accurately
reflect the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their bid
price. When market quotations are not readily available, when the Advisor
determines the last bid price does not accurately reflect the current value, or
when restricted securities are being valued, such securities are valued as
determined in good faith by the Advisor, subject to review of the Trust's Board
of Trustees. Fixed income securities (including mortgage related and asset
backed and receivable backed securities) may be valued on the basis of prices
furnished by a pricing service when the Advisor believes such prices accurately
reflect the fair market value of such securities. A pricing service utilizes
electronic data processing techniques to determine prices for normal
institutional-size trading units of debt securities without regard to sale or
bid prices. When prices are not readily available from a pricing service, or
when restricted or illiquid securities are being valued, securities are valued
at fair value as determined in good faith by the Advisor, subject to review by
the Trust's Board of Trustees. Short term investments in fixed income securities
with maturities of less than 60 days when acquired, or which subsequently are
within 60 days of maturity, are valued by using the amortized cost method of
valuation. Repurchase agreements are valued at cost which approximates market.
It is the policy of the Funds that their custodian take possession of the
underlying collateral securities. Collateral is marked to market daily to ensure
that the market value of the underlying assets equals or exceeds the value of
the seller's repurchase obligation. In the event of a bankruptcy or another
default of the seller of a repurchase agreement, a Fund could experience both
delays in liquidating the underlying securities and losses. The loss would equal
the amount by which the carrying value of the repurchase agreement(s) exceeded
the proceeds received in liquidation of the underlying collateral securities. To
minimize the possibility of loss, the Funds enter into repurchase agreements
only with institutions deemed to be creditworthy by the Advisor, including banks
that serve as custodian for the Funds, banks having assets in excess of $1
billion of primary government securities dealers.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES (continued)
Options Accounting Principles: When a put or call option is written, an amount
equal to the premium received is recorded as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written at which time an
unrealized gain or loss is recognized. The current market value of a traded
option contract is the last sale price or, in the absence of a last sale price,
the mean between the last bid and ask price, or in the absence of either of
these two prices, fair value as determined in good faith by the Board of
Trustees. When a written option contract expires or is terminated (closing
purchase transaction), a realized gain (or realized loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) is recorded without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is extinguished.
When an option is exercised by the holder, a gain or loss from the underlying
security is realized and the proceeds from such a sale are increased by the
premium originally received. When a put or call option is written, the Fund must
maintain a margin account with its custodian or the broker with a maintenance
margin determined on a daily basis as the value of the underlying security,
commodity or currency fluctuates.
Share Valuation: The net asset value per share is calculated daily by dividing
the total value of each Fund's investments and other assets, less liabilities,
by the total number of shares outstanding.
Investment Income and Distributions to Shareholders: Interest income is accrued
as earned. Dividend income is recorded on the ex-dividend date. Distributions to
shareholders arising from net investment income are declared and it is the
intention that such distributions be paid quarterly. Net realized capital gains,
if any, are distributed to shareholders at least once per year.
Security Transactions: Security transactions are accounted for on a trade date
basis, which is the date the order to buy or sell is executed. Securities
sold are valued on a specific identification basis.
Use of estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires the Advisor to make estimates
and assumptions that affect the amounts reported in these financial statements
and accompanying notes. The Advisor believes that the estimates utilized in
preparing these financial statements are reasonable and prudent. Actual results
could differ from these estimates.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES (continued)
Federal Income Taxes: It is each 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 a Fund so qualifies,
and distributes at least 90% of its taxable net income, the Fund (but not its
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes is made. In order to avoid imposition
of the excise tax created by the Tax Reform Act of 1986 as amended by the
Revenue Act of 1987, it is each Fund's intention to declare as dividends in each
calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its realized capital gains (earned during the twelve
months ended October 31 of the calendar year) plus undistributed amounts from
prior years.
(2) INVESTMENT TRANSACTIONS
Investment transactions are as follows for the year ended July 31, 1996:
<TABLE>
<S> <C> <C>
Analysts Stock Fund Analysts Fixed Income Fund
Purchase of investment securities $ 742,906 $ 986,069
Proceeds from sales and maturities
of investment securities 168,181 332,831
</TABLE>
The table above includes U.S. Government Securities purchased and sold by
Analysts Fixed Income Fund amounting to $139,035 and $197,000, respectively.
There were no purchases or sales of U.S. Government Securities by the Analysts
Stock Fund during the year.
(3) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
The President and Treasurer, and the Vice President and Secretary of the Trust
are shareholders and employees of the Advisor, registered investment advisor to
the Trust. In addition, each of these individuals are shareholders of the Funds.
AIT's investments are managed by the Advisor under the terms of a Management
Agreement. Under the Management Agreement, the Advisor pays all of the expenses
of the Funds except brokerage, taxes, interest and extraordinary expenses. As
compensation for investment advisory services and agreement to pay the above
Fund expenses, each Fund pays the Advisor a fee computed and accrued daily and
paid monthly. The fee for ASF is computed at an annual average rate of 2% of
average daily net assets of ASF up to and including $20 million, 1.75% of such
assets from $20 million up to and including $40 million, 1.5% of such assets
from $40 million up to and including $100 million, and .75% of such assets above
$100 million. The fee for AFI is computed at an annual rate of 1.5% of average
daily net assets of AFI up to and including $20 million, 1.25% of such assets
from $20 million up to and including $40 million, 1% of such assets from $40
million up to and including $100 million and .75% of such assets above $100
million.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(4) FUND SHARE TRANSACTIONS
Proceeds and payments on shares of the Funds as shown in the Statement of
Changes in Net Assets are the result of the following share transactions:
<TABLE>
<S> <C> <C>
Analysts Stock Fund Analysts Fixed Income Fund
Shares sold 73,841 75,103
Shares issued in reinvestment of
distributions 7,097 6,276
-------- --------
Totals 80,938 81,379
Less shares redeemed 24,350 19,884
-------- --------
Net increase in shares outstanding 56,588 61,495
Shares at beginning of year 142,685 108,832
-------- --------
Shares at end of year 199,273 170,327
======== ========
</TABLE>
(5) FINANCIAL INSTRUMENT DISCLOSURE
There are no reportable Financial instruments which have any off-balance sheet
risk in either of the Funds as of July 31, 1996.
(6) SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at July 31, 1996
was the same as identified cost. At July 31, 1996, the composition of unrealized
appreciation (the excess of value over tax cost) and depreciation (the excess of
tax cost over value) was as follows:
<TABLE>
<S> <C> <C> <C>
Appreciation Depreciation Net
Stock Fund $ 488,442 $ (172,538) $ 315,904
Fixed Income Fund 22,260 (78,227) (55,967)
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
Included in Part A:
(1) Financial Highlights, for a share outstanding
throughout the years ended July 31, 1996 and 1995,
and the period from inception (August 25, 1993)
through July 31, 1994
Included in Part B:
(1) Independent Auditors Report
(2) Schedule of Investments in Securities, Analysts
Stock Fund - July 31, 1996
(3) Schedule of Investments in Securities, Analysts
Fixed Income Fund - July 31, 1996
(4) Statement of Assets and Liabilities - July 31, 1996
(5) Statement of Operations - year ended July 31, 1996
(6) Statement of Changes in Net Assets - years ended
July 31, 1996 and 1995
(7) Financial Highlights - for a share outstanding
throughout the years ended July 31, 1996 and 1995,
and the period from inception (August 25, 1993)
through July 31, 1994
(8) Notes to Financial Statements
(b) Exhibits
(1) Copy of Registrant's Declaration of Trust, which was
filed as an exhibit to Registrant's Registration
Statement, is hereby incorporated by reference.
<PAGE>
(2) Copy of Registrant's By-Laws, which was filed as an
exhibit to Registrant's Registration Statement, is
hereby incorporated by reference.
(3) Voting Trust Agreements - None.
(4) (i) Specimen of Share Certificate for Analysts
Fixed Income Fund, which was filed as an
exhibit to Registrant's Pre-Effective
Amendment No. 1, is hereby incorporated by
reference.
(ii) Specimen of Share Certificate for Analysts
Stock Fund, which was filed as an exhibit to
Registrant's Pre-Effective Amendment No. 1,
is hereby incorporated by reference.
(5) Copy of Registrant's Management Agreement with its
Adviser, Equity Analysts Inc., which was filed as an
exhibit to Registrant's Pre-Effective Amendment No.
1, is hereby incorporated by reference.
(6) Copy of Registrant's Underwriting Agreement with
Equity Analysts Inc., which was filed as an exhibit
to Registrant's Pre-Effective Amendment No. 1, is
hereby incorporated by reference.
(7) Bonus, Profit Sharing, Pension or Similar Contracts
for the benefit of Directors or Officers - None.
(8) Copy of Registrant's Custody Agreement with the
Custodian, Star Bank, N.A., which was filed as an
exhibit to Registrant's Pre-Effective Amendment No.
1, is hereby incorporated by reference.
(9) Other Material Contracts - None.
(10) Opinion and Consent of Brown, Cummins & Brown Co.,
L.P.A., which was filed with Registrant's Form 24F-2
for the fiscal year ended July 31, 1996, is hereby
incorporated by reference.
(11) Consent of Berge and Company LTD. is filed herewith.
(12) Financial Statements Omitted from Item 23 - None.
(13) Copy of Letter of Initial Stockholder, which was
filed as an exhibit to Registrant's Pre-Effective
Amendment No. 1, is hereby
<PAGE>
incorporated by reference.
(14) Model Plan used in Establishment of any Retirement
Plan - None.
(15) 12b-1 Distribution Expense Plan - None.
(16) Schedule for Computation of Each Performance
Quotation, which was filed as an Exhibit to
Registrant's Post-Effective Amendment No. 3, is
hereby incorporated by reference.
(17) Financial Data Schedule is filed herewith.
(18) Rule 18F-3 Plan - None.
(19) (i) Power of Attorney for Registrant and
Certificate with respect thereto, are filed
herewith.
(ii) Powers of Attorney for Trustees and officers
of Registrant are filed herewith.
Item 25. Persons Controlled by or Under Common Control with the Registrant
None
Item 26. Number of Holders of Securities (as of September 3, 1996)
<TABLE>
<S> <C>
Title of Class Number of Record Holders
Analysts Fixed Income Fund 412
Analysts Stock Fund 568
</TABLE>
Item 27. Indemnification
(a) Article VI of the Registrant's Declaration of Trust
provides for indemnification of officers and Trustees as
follows:
Section 6.4 Indemnification of Trustees,
Officers, etc. Subject to and except as otherwise
provided in the Securities Act of 1933, as amended,
and the 1940 Act, the Trust shall indemnify each of
its Trustees and officers (including persons who
serve at the Trust's request as directors, officers
or trustees of another organization in which the
Trust has any interest as a shareholder, creditor or
otherwise (hereinafter referred to as a "Covered
Person") against all liabilities, including but not
limited to amounts paid in satisfaction of
judgments, in compromise or as fines and penalties,
and expenses, including reasonable
<PAGE>
accountants' and counsel fees, incurred by any
Covered Person in connection with the defense or
disposition of any action, suit or other proceeding,
whether civil or criminal, before any court or
administrative or legislative body, in which such
Covered Person may be or may have been involved as
a party or otherwise or with which such person
may be or may have been threatened, while in office
or thereafter, by reason of being or having been
such a Trustee or officer, director or trustee, and
except that no Covered Person shall be indemnified
against any liability to the Trust or its
Shareholders to which such Covered Person would
otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of
such Covered Person's office.
Section 6.5 Advances of Expenses. The Trust
shall advance attorneys' fees or other expenses
incurred by a Covered Person in defending a
proceeding to the full extent permitted by the
Securities Act of 1933, as amended, the 1940 Act,
and Ohio Revised Code Chapter 1707, as amended. In
the event any of these laws conflict with Ohio
Revised Code Section 1701.13(E), as amended, these
laws, and not Ohio Revised Code Section 1701.13(E),
shall govern.
Section 6.6 Indemnification Not Exclusive,
etc. The right of indemnification provided by this
Article VI shall not be exclusive of or affect any
other rights to which any such Covered Person may be
entitled. As used in this Article VI, "Covered
Person" shall include such person's heirs, executors
and administrators. Nothing contained in this
article shall affect any rights to indemnification
to which personnel of the Trust, other than Trustees
and officers, and other persons may be entitled by
contract or otherwise under law, nor the power of
the Trust to purchase and maintain liability
insurance on behalf of any such person.
The Registrant may not pay for insurance which protects the
Trustees and officers against liabilities rising from
action involving willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in
the conduct of their offices.
(b) The Registrant may maintain a standard mutual fund and
investment advisory professional and directors and officers
liability policy. The policy, if maintained, would provide
coverage to the Registrant, its Trustees and officers, and
its Adviser, among others. Coverage under the policy would
include losses by reason of any act, error, omission,
misstatement, misleading statement, neglect or breach of
duty.
<PAGE>
(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to trustees,
officers and controlling persons of the Registrant pursuant
to the provisions of Ohio law and the Agreement and
Declaration of the Registrant or the By-Laws of the
Registrant, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such
liabilities (other than the payment by the Registrant of
expenses incurred or paid by a trustee, officer or
controlling person of Analysts Investment Trust in the
successful defense of any action, suit or proceeding) is
asserted by such trustee, officer or controlling person
in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
Item 28. Business and Other Connections of Investment Adviser
A. Equity Analysts Inc. (the "Adviser") is a registered
investment adviser and broker-dealer. Prior to January 1,
1993, it also provided pension administration.
B. The following list sets forth the business and other
connections of the Directors and officers of Equity
Analysts Inc. during the past two years.
(1) David L. Manzler, Sr.
(a) Vice President and a Director of Equity
Analysts Inc., 9200 Montgomery Road,
Bldg. D, Suite 13A, Cincinnati, Ohio 45242.
(b) Vice President, Secretary and a Trustee of
The Analysts Trust, 9200 Montgomery Road,
Bldg. D, Suite 13A, Cincinnati, Ohio 45242.
(c) President of Equity Analysts Agency Inc.,
9200 Montgomery Road, Bldg. D, Suite 13A,
Cincinnati, Ohio 45242.
(d) Director of Cincinnati Steel Products Co.,
4540 Steel Place, Cincinnati, Ohio 45209.
(2) David Lee Manzler, Jr.
<PAGE>
(a) President, Secretary and Director of Equity
Analysts Inc., 9200 Montgomery Road,
Bldg. D, Suite 13A, Cincinnati, Ohio 45242.
(b) President, Treasurer and a Trustee of The
Analysts Trust, 9200 Montgomery Road,
Bldg. D, Suite 13A, Cincinnati, Ohio 45242.
(c) President, Manzler Aviation, Inc. 7760
Concord Hills Lane, Cincinnati, Ohio 45243
(3) Bernard J. McEvoy - A Director, part-time employee
and registered representative of Equity Analysts
Inc., 9200 Montgomery Road, Bldg. D, Suite 13A,
Cincinnati, Ohio 45242.
Item 29. Principal Underwriters
(a) Equity Analysts Inc. acts as underwriter only for Analysts
Investment Trust.
<TABLE>
<S> <C> <C>
(b) Position With Position With
Name Underwriter Registrant
David L. Manzler, Sr. Vice President Vice President,
and Director Secretary and
Trustee
David Lee Manzler, Jr. President, President,
Secretary and Treasurer
Director and Trustee
Bernard J. McEvoy Director None
<FN>
The address of all of the above-named persons is 9200
Montgomery Road, Bldg. D, Suite 13A, Cincinnati, Ohio
45242.
</FN>
</TABLE>
Item 30. Location of Accounts and Records
Accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder will be maintained by the Registrant at
9200 Montgomery Road, Bldg. D, Suite 13A, Cincinnati, Ohio 45242
or by Star Bank, N.A., the Registrant's Custodian at 425 Walnut
Street, Cincinnati, Ohio 45202.
<PAGE>
Item 31. Management Services Not Discussed in Parts A or B
None.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant hereby undertakes to furnish each person to
whom a prospectus is delivered with a copy of the
Registrant's latest annual report to shareholders, upon
request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Cincinnati, State of Ohio, on the ____ day of
September, 1996.
ANALYSTS INVESTMENT TRUST
By:/s/ Donald S. Mendelsohn
Donald S. Mendelsohn,
Attorney-in-Fact
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated.
David L. Manzler, Sr. Vice President, By: /s/ Donald S. Mendelsohn
Secretary and Donald S. Mendelsohn
Trustee Attorney-in-Fact
David Lee Manzler, Jr. President, September ___, 1996
Treasurer and
Trustee
Walter E. Bowles, III Trustee
Robert W. Buechner Trustee
Anthony J. Schement Trustee
David J. Orth Trustee
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
<S> <C>
PAGE
1. Consent of Berge and Company LTD. . . . . . . . . . . . . . .Ex-99.B11
2. Powers of Attorney for the Registrant and its
Officers and Trustees. . . . . . . . . . . . . . . . . . . . Ex-99.POA
</TABLE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm and to the use of our report dated
September 12, 1996 in the Post Effective Amendment Number 5 of Analysts
Investment Trust.
/s/ Berge & Company LTD
Berge & Company LTD
Cincinnati, Ohio
September 25, 1996
POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
NOW, THEREFORE, the Trust hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, its attorneys for it and in
its name, place and stead, to execute and file such Post-Effective Amendment No.
5, hereby giving and granting to said attorneys full power and authority to do
and perform all and every act and thing whatsoever requisite and necessary to be
done in and about the premises as fully to all intents and purposes as it might
or could do if personally present at the doing thereof, hereby ratifying and
confirming all that said attorneys may or shall lawfully do or cause to be done
by virtue hereof.
IN WITNESS WHEREOF, the Trust has caused its name to be subscribed hereto
by the President this 25th day of September, 1996.
ATTEST: ANALYSTS INVESTMENT TRUST
/s/ David L. Manzler, Sr. By:/s/ David Lee Manzler, Jr.
DAVID L. MANZLER, SR., DAVID LEE MANZLER, JR.,
Secretary President
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared David Lee Manzler, Jr., President and David L. Manzler, Sr., Secretary,
who represented that they are duly authorized in the premises, and who are known
to me to be the persons described in and who executed the foregoing instrument,
and they duly acknowledged to me that they executed and delivered the same for
the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
CERTIFICATE
The undersigned, Secretary of ANALYSTS INVESTMENT TRUST, hereby certifies
that the following resolution was duly adopted by a majority of the Board of
Trustees by Action by Unanimous Consent of Trustees dated September 25, 1996,
and is in full force and effect:
"WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized
under the laws of the State of Ohio (hereinafter referred to as
the "Trust"), proposes to file with the Securities and Exchange
Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended, Post-Effective
Amendment No. 5 to its Registration Statement;
NOW, THEREFORE, the Trust hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, its attorneys
for it and in its name, place and stead, to execute and file such
Post-Effective Amendment No. 3, hereby giving and granting to said
attorneys full power and authority to do and perform all and every
act and thing whatsoever requisite and necessary to be done in and
about the premises as fully to all intents and purposes as it
might or could do if personally present at the doing thereof,
hereby ratifying and confirming all that said attorneys may or
shall lawfully do or cause to be done by virtue hereof."
Dated: September 25, 1996 /s/ David L. Manzler, Sr.
David L. Manzler, Sr.,
Secretary
Analysts Investment Trust
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee and officer of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ David L. Manzler, Sr.
DAVID L. MANZLER, SR., Trustee, Vice
President and Secretary
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared DAVID L. MANZLER, SR. known to me to be the person described in and
who executed the foregoing instrument, and who acknowledged to me that he
executed and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee and officer of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ David L. Manzler, Jr.
DAVID L. MANZLER, JR., Trustee,
President and Treasurer
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared DAVID LEE MANZLER, JR., known to me to be the person described in and
who executed the foregoing instrument, and who acknowledged to me that he
executed and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ Walter E. Bowles, III
WALTER E. BOWLES, III, Trustee
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared WALTER E. BOWLES, III, known to me to be the person described in and
who executed the foregoing instrument, and who acknowledged to me that he
executed and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ Robert W. Buechner
ROBERT W. BUECHNER, Trustee
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared ROBERT W. BUECHNER, known to me to be the person described in and who
executed the foregoing instrument, and who acknowledged to me that he executed
and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ Anthony J. Schement
ANTHONY J. SCHEMENT, Trustee
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared ANTHONY J. SCHEMENT, known to me to be the person described in and who
executed the foregoing instrument, and who acknowledged to me that he executed
and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ANALYSTS INVESTMENT TRUST, a business trust organized under the
laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to
file with the Securities and Exchange Commission under the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, as amended,
Post-Effective Amendment No. 5 to its Registration Statement; and
WHEREAS, the undersigned is a Trustee of the Trust;
NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R.
CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in
his name, place and stead, and in his office and capacity in the Trust, to
execute and file such Post-Effective Amendment No. 5, hereby giving and granting
to said attorneys full power and authority to do and perform all and every act
and thing whatsoever requisite and necessary to be done in and about the
premises as fully to all intents and purposes as he might or could do if
personally present at the doing thereof, hereby ratifying and confirming all
that said attorneys may or shall lawfully do or cause to be done by virtue
hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 25th
day of September, 1996.
/s/ David J. Orth
DAVID J. ORTH, Trustee
STATE OF OHIO )
) ss:
COUNTY OF HAMILTON )
Before me, a Notary Public, in and for said county and state, personally
appeared DAVID J. ORTH, known to me to be the person described in and who
executed the foregoing instrument, and who acknowledged to me that he executed
and delivered the same for the purposes therein expressed.
WITNESS my hand and official seal this 25th day of September, 1996.
/s/ Scott R. Mallon
Notary Public
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> ANALYSTS STOCK FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JUL-31-1996
<INVESTMENTS-AT-COST> 3,299,363
<INVESTMENTS-AT-VALUE> 3,615,964
<RECEIVABLES> 8,132
<ASSETS-OTHER> 24,952
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,649,048
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,556
<TOTAL-LIABILITIES> 6,556
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,306,449
<SHARES-COMMON-STOCK> 199,273
<SHARES-COMMON-PRIOR> 142,685
<ACCUMULATED-NII-CURRENT> 8,141
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11,997
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 315,905
<NET-ASSETS> 3,642,492
<DIVIDEND-INCOME> 104,921
<INTEREST-INCOME> 17,633
<OTHER-INCOME> 0
<EXPENSES-NET> 63,141
<NET-INVESTMENT-INCOME> 59,413
<REALIZED-GAINS-CURRENT> 25,122
<APPREC-INCREASE-CURRENT> 108,455
<NET-CHANGE-FROM-OPS> 192,990
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 53,510
<DISTRIBUTIONS-OF-GAINS> 75,004
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 73,841
<NUMBER-OF-SHARES-REDEEMED> 24,350
<SHARES-REINVESTED> 7,097
<NET-CHANGE-IN-ASSETS> 1,093,002
<ACCUMULATED-NII-PRIOR> 2,239
<ACCUMULATED-GAINS-PRIOR> 55,863
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 63,141
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 63,141
<AVERAGE-NET-ASSETS> 3,150,485
<PER-SHARE-NAV-BEGIN> 17.87
<PER-SHARE-NII> 0.34
<PER-SHARE-GAIN-APPREC> 0.81
<PER-SHARE-DIVIDEND> 0.31
<PER-SHARE-DISTRIBUTIONS> 0.43
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.28
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<TABLE> <S> <C>
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<NUMBER> 2
<NAME> ANALYSTS FIXED INCOME FUND
<S> <C>
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