EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISORS
ANALYSTS INVESTMENT TRUST
SEMI-ANNUAL REPORT
January 31, 1997
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
<PAGE>
ANALYSTS INVESTMENT TRUST
SEMI-ANNUAL REPORT
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
CONTENTS
Page
Message from the Fund President/Portfolio Manager 2
Performance Summary 3
Analysts Stock Fund Schedule of Investments in Securities 5
Analysts Fixed Income Fund Schedule of Investments in Securities 9
Statement of Assets and Liabilities 12
Statement of Operations 13
Statement of Changes in Net Assets 14
Financial Highlights 15
Notes to Financial Statements 16
Trustees and Officers 20
<PAGE>
MESSAGE FROM THE FUND PRESIDENT/PORTFOLIO MANAGER
ANALYSTS STOCK FUND
This report covers the period 8/1/96 through 1/31/97. The total return of
the Stock Fund from August 1, 1996 through January 31, 1997 was 15.37%. This
compares to a 9.62% rate of return for the Dow Jones World-Global Index (DJWG).
Since inception of the Analysts Stock Fund (August 25, 1993), the average annual
total return of the Analysts Stock Fund is 13.77% verses 8.79% for the DJWG.
The semi-annual total return of the Analysts Stock Fund is higher than the
DJWG for several reasons. The Analysts Stock Fund has a slightly larger
percentage of U.S stocks than the DJWG and during this period the U.S. stock
markets outperformed the international markets. The Analysts Stock Fund has a
lower allocation to Japanese stocks which during this period underperformed the
rest of the world stock markets. The Analysts Stock Fund has also allocated more
of its portfolio to sectors such as telecommunications which have outperformed
other sectors that are more heavily weighted in the DJWG. The strategy of the
Analysts Stock Fund is to diversify between Large Capitalization, Small
Capitalization, International, Real Estate Investment Trusts and Natural
Resources Stocks. My research indicates that an allocation between these broad
groups will provide the lowest possible volatility for a portfolio of stocks
while still keeping stock market performance.
Interest rates and the growth of the world economy will be major factors in
the performance of the stock markets. U.S. interest rates declined from May 1996
through November 1996 and then rose slightly through the end of January 1997.
The declining interest rates helped the performance of the U.S. stock markets.
The U.S. stock markets have had an unprecedented six straight positive
performance years. This has been fueled by a growing economy with low inflation.
The rest of 1997 should see an increase in volatility with some consolidation in
the stock markets as corporate profits catch up to stock prices. The
international markets, especially the developing countries, appear poised for
rapid growth. As the world integrates its economies and countries are able to
exploit their comparative trade advantages and attract foreign investment, stock
markets should perform well.
ANALYSTS FIXED INCOME FUND
The total return of the Fixed Income Fund for the period 8/1/96 through
1/31/97 was 6.13%. This compares to a 4.04% rate of return for the Lehman
Intermediate T-Bond Index (LITB) over the dame period. Since inception of the
Analysts Fixed Income Fund (August 25, 1993), the average annual return of the
Analysts Fixed Income Fund was 3.86% verses 4.94% for the Lehman Intermediate
T-Bond Index.
The Analysts Fixed Income Fund is diversified between Government Bonds,
Corporate Bonds, Mortgage Backed Securities, Preferred Stocks, Global Bond Funds
and Real Estate Investment Trust. Our strategy is to remain broadly diversified
to reduce our exposure in any one area and reduce our volatility. During 1996
U.S. interest rates declined from May 1996 through November 1996 and then rose
slightly through the end of January 1997. The declining interest rates helped
the performance of the U.S. fixed income markets. The Analysts Fixed Income Fund
has outperformed the LITB over the last six months due to our diversification
and allocation to international and real estate investment trust sectors. I
believe that the most appropriate average maturity for our bond portfolio is
approximately 10 years. If the average maturity is too long then the volatility
will be too high for my outlook on interest rate movements. If the average
maturity is too low then the yield on our portfolio will be too low
Recently there has been concern that the Fed may have to raise short term
interest rates to combat a possible increase in the rate of future inflation.
The Fed will probably raise short term interest rates later on in 1997 but I
believe that this action is already reflected in the markets. The economy has
struck a balance between growth and the government attempts to reduce fiscal
spending. The economy has had growth with low inflation for several years now
along with strong growth in corporate profits. Another balancing factor has been
corporations downsizing to remain competitive. These factors have balanced the
growth and low unemployment to keep prices stable. If the government can
continue to reduce the deficit, the U.S. long term interest rates should not
rise significantly for the rest of 1997.
Lee Manzler
President and Portfolio Manager
March 18, 1997
- 2 -
<PAGE>
PERFORMANCE SUMMARY
ANALYSTS STOCK FUND
Growth of $10,000 Investment
Average Annual Total Return For the Period Ending 1/31/97
Since Inception: 13.77%
Total Return for the Period 8/1/96 through 1/31/97: 15.37%
[GRAPH HERE]
This graph depicts the performance of the Fund against its benchmark.
At 1/31/97 the growth of a $10,000 investment in the Fund was $15,582 versus
$13,359 for the Dow Jones World Index.
- 3 -
<PAGE>
PERFORMANCE SUMMARY
ANALYSTS FIXED INCOME FUND
Growth of $10,000 Investment
Average Annual Total Return For the Period Ending 1/31/97
Since Inception: 3.86%
Total Return for the Period 8/1/96 through 1/31/97: 6.13%
[GRAPH HERE]
This graph depicts the performance of the Fund against its benchmark.
At 1/31/97 the growth of a $10,000 investment in the Fund was $11,513 versus
$11,865 for the Lehman Intermediate T-Bond Index.
- 4 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Common stock: 92.6%
Large Capitalization U.S. Stocks: 35.7%
<C> <S> <C>
Shares Market Value
- -----------------------------------------------------------
2,000 Advanced Micro Devices* $ 70,000
556 Allstate Corporation 36,557
550 Ameritech Corporation 32,863
1,100 Banc One Corporation 49,913
550 Bell Atlantic Corporation 36,988
826 Bell South Corporation 36,654
800 Briggs & Stratton Corporation 36,100
4,000 Centerior Energy 43,000
660 Chevron Corporation 43,807
814 Chrysler Corporation 28,388
584 Cincinnati Financial Corporation 36,500
850 Cinergy Corporation 29,325
1,000 CIPSCO Inc. 36,125
500 Compaq Computer Corporation* 43,437
1,000 Computer Associates Intl. 45,375
550 Du Pont EI De Nemours 60,294
450 Eastman Kodak Company 39,037
1,000 Entergy 26,875
400 Exxon Corporation 41,450
998 Ford Motor Corporation 32,061
550 General Electric Corporation 56,650
400 Intel Corporation 64,900
600 J.P. Morgan 61,800
1,500 Micron Technology 52,125
1,000 Microsoft 102,000
1,000 National Fuel Gas 42,250
1,250 Nynex Corporation 63,281
900 PNC Bank 35,775
1,500 Potomac Electric Power 37,125
950 RJR Nabisco Holdings 31,113
2,000 S&P 500 Depository Trust 156,813
600 Sears, Roebuck & Company 28,800
2,100 Star Banc Corporation 77,175
405 Texaco, Inc. 42,879
1,440 Woolworth Corporation* 29,340
-----------
Total (Cost: $1,201,138) $ 1,686,774
- 5 -
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Small/Medium Capitalization U.S. Stocks: 14.5%
Shares Market Value
- -----------------------------------------------------------
2,200 Airborne Freight Corporation $ 58,850
700 Ameron, Inc. 34,738
1,250 Aquarion Company 35,000
1,000 Arvin Industries 24,125
1,500 Connecticut Energy 34,313
950 Essex County Gas 24,225
3,000 Fansteel, Inc. 20,625
3,000 Gibson Greetings, Inc.* 55,500
4,000 Handleman Company 32,000
1,900 Marsh Supermarkets Inc. Class B 26,600
1,250 Nash Finch Company 26,250
1,300 Provident Life & Accident Class B 63,863
1,000 S&P 400 Deposit Receipts 51,750
1,400 Sea Containers Ltd Class A 24,325
2,750 Sport Supply Group, Inc. 14,438
750 Standard Federal Bank 43,031
1,500 Standard Motor Products 21,000
1,000 Waban, Inc.* 27,125
2,250 Wynns International 45,563
1,200 Yellow Corporation* 20,550
-----------
Total (Cost: $528,639) $ 683,869
Foreign Stocks: 32.3%
600 Akzo NV ADR $ 42,225
2,600 Alcatel Alsthom 53,625
2,000 Anangel-American Shipholding ADR 17,250
2,454 BAT Industries PLC ADR 38,957
1,400 Brazil Fund, Inc. 32,725
1,200 British Gas ADR 42,900
1,300 British Steel ADR 31,363
- 6 -
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Foreign Stocks (continued):
Shares Market Value
- -----------------------------------------------------------
3,000 BT Shipping LTD. ADR* $ 10,125
900 Buenos Aires Embotella ADR 3,600
1,050 Cadbury Schwepps PLC ADR 32,419
28,000 Cifra S A De C V ADR 38,240
1,300 Compania Cervecerias Unida ADR 21,613
1,250 CRH PLC ADR 64,062
3,400 Emerging Germany Fund 27,200
1,600 Ericsson L M Tel. Company ADR 53,875
1,850 Europe Fund, Inc. 30,756
3,150 First Australia Fund, Inc. 27,562
1,500 First Philippine Fund 24,563
1,700 Hong Kong Telecommunications ADR 29,325
200 Ito Yakado LTD ADR 36,750
2,866 Japan Equity Fund, Inc. 26,869
2,400 KLM Royal Dutch Airlines ADR 72,000
1,050 Koninklijke Ahold N V ADR 64,575
2,600 Makita Corporation 34,125
300 Matsushita Electric 44,550
800 NEC Corp. ADR 47,000
500 Philippine Long Distance Tel. ADR 29,687
700 Polygram N V ADR 30,975
300 Royal Dutch 52,050
1,900 SKF AB ADR 43,700
800 Sony Corp. ADR 53,900
900 TDK Corp. ADR 54,900
2,200 Tele Danmark 65,175
400 Telecom Corp. New Zealand ADR 32,350
900 Telefonos De Mexico ADR 33,862
1,000 Templeton World China Fund 13,000
700 Tokio Marine & Fire Insurance ADR 32,025
1,350 United Newspapers Pub. ADR 30,375
1,100 Vodafone Group PLC ADR 47,300
1,400 WPP Group PLC ADR 54,775
------------
Total (Cost: $1,355,372) $ 1,522,328
- 7 -
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Real Estate Stocks: 7.9%
Shares Market Value
- -----------------------------------------------------------
1,450 American Health Properties $ 37,700
1,500 Carr Realty Corporation 43,687
2,800 Commercial Net Lease 44,450
1,500 First Industrial Realty 43,500
2,100 Health & Retirement Properties Trust 39,900
1,500 New Plan Realty Trust 35,813
1,186 Omega Healthcare Investors 37,359
3,500 Property Capital Trust 29,312
1,000 Resource Mtg. Capital, Inc. 27,625
1,250 Simon Property Group Inc. 36,562
----------
Total (Cost: $318,386) $ 373,146
Mining/Precious Metals Stocks: 2.2%
1,300 Barrick Gold Resources $ 37,700
900 Asarco 24,750
1,500 Pegasus Gold* 11,438
400 Phelps Dodge Corporation 27,950
----------
Total (Cost: $96,455) $ 101,838
----------
Total Common Stock (Cost: $3,499,990) $ 4,367,955
Repurchase Agreements: 6.7%
Face
- ---------
319,000 4.7% Star Bank Repurchase Agreement,
issued January 28, 1997 due
February 4, 1997, collateralized
by $1,130,000 GNMA Pool #8359,
6.5%; due January 20, 2024. $ 319,000
----------
Total Investment at Market Value
(Cost: $3,818,990) 99.3% $ 4,686,955
All Other Assets less Liabilities .7% 31,850
-----------
Net Assets 100% $ 4,718,805
===========
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
- 8 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Common Stock: 21.8%
Real Estate Investment Trusts: 15.2%
<C> <S> <C>
Shares Market Value
- ------------------------------------------------------------------------------
2,050 American Health Properties $ 53,300
4,000 Berkshire Realty, Inc. 41,500
1,400 Carr Realty Corporation 40,775
3,580 Commercial Net Lease 56,833
1,700 First Industrial Realty 49,300
2,350 Health & Retirement Properties Trust 44,650
1,500 Hospitality Properties Trust 46,500
2,600 Kranzco Realty 42,250
1,489 Omega Healthcare Investors 46,903
2,100 Resource Mortgage Capital, Inc. 58,013
1,650 Simon Property Group Inc. 48,262
----------
Total (Cost $472,887) $ 528,286
Closed End Mutual Funds: 6.6%
5,000 Duff & Phelps Bond Income Fund $ 66,250
5,400 Kleinwort Benson Australian Income Fund 47,925
7,800 Putnam Premier Income Fund 61,425
4,200 Templeton Emerging Markets Income Fund 52,500
----------
Total (Cost: $231,494) $ 228,100
Total Common Stock (Cost: $704,381) $ 756,386
Preferred Stocks: 6.4%
2,000 Carolina Power & Light Company $ 52,000
2,000 Consolidated Edison 49,000
700 Environmental Systems Company 10,850
300 James River Corporation 7,575
2,000 Travelers Trust 49,750
2,000 Unum Corp. MIDS 52,000
----------
Total Preferred Stock (Cost: $220,708) $ 221,175
- 9 -
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
Corporate Bonds: 25.9%
Face Market Value
- ------------------------------------------------------------------------------
3,000 AMR Corp. 8.1%, 11/1/98 $ 3,086
30,000 Merrill Lynch 7.75%, 3/1/99 30,839
4,000 RJR Nabisco Inc. 8.3%, 4/15/99 4,080
35,000 Texaco Capital Corp. 9.0%, 12/15/99 37,372
50,000 DuPont E I De Nemours & Company 9.15%, 4/15/00 53,947
46,000 Household Financial 9.625%, 7/15/00 50,254
4,000 American Telephone & Telegraph 6.0%, 8/1/00 3,940
5,000 First Chicago Corp. 11.25%, 2/20/01 5,783
5,000 Bankamerica Corp. 8.375%, 3/15/02 5,335
100,000 Kentucky Power 6.65%, 5/1/03 100,120
10,000 General Motors Corp. 8.875%, 5/15/03 11,005
10,000 Consolidated Natural Gas Company 5.75%, 8/1/03 9,485
50,000 New York Telephone Company 5.625%, 11/1/03 47,038
50,000 American Telephone & Telegraph Company 6.75%, 4/1/04 49,938
50,000 Nationsbank Corp. 7.75%, 8/15/04 51,959
10,000 Southwestern Bell 5.75%, 9/1/04 9,266
50,000 Pacific Bell Telephone Company 6.25%, 3/1/05 46,847
50,000 U.S. West Communications 6.125%, 11/15/05 47,362
30,000 Chemical Banking Corp. 7.5%, 5/15/10 29,595
40,000 GE Capital Corp Step-Up 7.0%, 10/18/10 39,399
50,000 Coca-Cola Enterprises 7.0%, 12/01/10 47,836
50,000 Citicorp 7.0%, 12/15/10 47,983
50,000 J.P. Morgan 6.610%, 12/15/10 47,142
50,000 GE Capital Corp. Step-Up 7.0%, 3/18/11 48,516
10,000 Caterpillar Inc. Del. 9.375, 8/15/11 12,085
50,000 Aetna Life & Cas Company 6.750%, 9/15/13 46,591
10,000 International Business Machines 8.375%, 11/1/19 11,050
----------
Total Corporate Bonds (Cost: $895,326) $ 898,881
- 10 -
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 1997
U.S. Government Obligations: 34.2%
Face Market Value
- ------------------------------------------------------------------------------
50,000 Tennessee Valley Authority 6.875%, 1/15/02 $ 50,327
50,000 FNMA 6.320%, 7/28/03 48,676
20,000 FNMA 6.420%, 2/25/04 19,490
20,000 Federal Home Loan Bank 8.080%, 8/27/10 19,916
50,000 Federal Home Loan Bank 7.5%, 11/15/10 49,206
1,000,000 United States Treasury Notes 6.5%, 10/15/06 999,062
------------
Total U.S. Government Obligations
(Cost: $1,188,938) $ 1,186,766
Mortgage Backed Obligations: 4.7%
4,115 Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 $ 4,248
4,334 Collaterized Mortgage Securities 1991-3I, 8.55%, 8/20/20 4,401
12,000 FHLMC REMIC 1991 Trust 1177 Class I, 6.95%, 1/15/21 11,934
15,000 FNMA REMIC Series 93-1601, 6.5%, 7/25/22 13,504
12,000 FNMA REMIC 1992 Trust G-53 Class J, 7.0%, 9/25/22 11,258
18,000 FHLMC 1993 Trust 1462 Class D, 7.5%, 11/15/22 16,672
12,000 FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 10,830
20,000 FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 15,402
20,000 FHLMC REMIC 1993 Trust 1497 Class Q, 7.0%, 4/15/23 18,327
20,000 FHLMC REMIC 1993 Trust 1602 Class BB 6.1%, 4/15/23 18,031
12,000 FHLMC REMIC 1993 Trust 1503 Class H, 7.0%, 5/15/23 10,888
12,000 FNMA REMIC 1993 Trust 50 Class L, 7.0%, 5/25/23 11,315
4,000 FHLMC REMIC 1993 Trust G13 Class D, 6.75%, 6/25/23 3,759
12,000 Ray Ellison Mac Series 92-H Class I, 7.1%, 12/31/23 11,460
------------
Total Mortgage Backed (Cost: $178,541) $ 162,030
Repurchase Agreements: 5.2%
181,000 4.7% Star Bank Repurchase Agreement, issued
January 28, 1997, due February 4, 1997,
collateralized by $1,130,000 GNMA Pool #8359,
6.5%; due January 20, 2024. $ 181,000
------------
Total Investment at Market Value (Cost: $3,368,894) 98.2% $ 3,406,239
All Other Assets less Liabilities 1.8% 64,613
------------
Net Assets 100% $ 3,470,852
============
</TABLE>
- 11 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1997
(Unaudited)
<S> <C> <C>
Fixed
Stock Fund Income Fund
----------- -----------
ASSETS
Investment securities, at value
Unaffiliated Issuers $ 4,367,955 $ 3,225,238
Repurchase Agreements 319,000 181,000
----------- -----------
4,686,955 3,406,238
Receivable for investment securities sold 1,415 140
Dividends and interest receivable 6,526 43,078
Cash 31,754 25,837
----------- -----------
Total Assets 4,726,650 3,475,293
----------- -----------
LIABILITIES
Management fee payable 7,845 4,441
----------- -----------
Total Liabilities 7,845 4,441
----------- -----------
NET ASSETS $ 4,718,805 $ 3,470,852
=========== ===========
Net assets consist of:
Capital shares $ 3,837,192 $ 3,452,210
Accumulated undistributed net investment income 44 14,596
Accumulated net realized gains (losses)
from securities transactions 13,604 (33,299)
Net unrealized appreciation (depreciation)
on investments 867,965 37,345
----------- -----------
NET ASSETS $ 4,718,805 $ 3,470,852
=========== ===========
Net asset value, offering price, and
redemption price per share $ 20.79 $ 14.06
=========== ===========
Fund shares outstanding 226,923 246,887
=========== ===========
</TABLE>
- 12 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF OPERATIONS
Six Months ended January 31, 1997
(Unaudited)
<S> <C> <C>
Fixed
Stock Fund Income Fund
----------- -----------
INVESTMENT INCOME:
Dividends $ 56,020 $ 33,515
Interest 9,799 71,342
----------- -----------
Total Investment Income 65,819 104,857
EXPENSES:
Management Fee 42,568 22,603
----------- -----------
NET INVESTMENT INCOME 23,251 82,254
REALIZED AND UNREALIZED GAINS ON INVESTMENTS:
Net realized gains (losses) from security
transactions 31,065 (675)
Net change in net unrealized appreciation
(depreciation) on investments 552,061 93,312
----------- -----------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS 583,126 92,637
----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 606,377 $ 174,891
=========== ===========
</TABLE>
- 13 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
Six Months ended 1/31/97
Years ended 7/31/96 & 7/31/95
<S> <C> <C> <C> <C> <C> <C>
Stock Fund Fixed Income Fund
-------------------------------------- ---------------------------------------
01/31/97 1996 1995 01/31/97 1996 1995
FROM OPERATIONS:
Net investment income $23,251 $59,413 $30,970 $82,254 $105,198 $73,306
Net realized gains (losses) from
securities transactions $31,065 $25,122 $60,118 ($675) $0 ($9,397)
Net realized gains from covered call
option transactions $0 $0 $6,016 $0 $0 $0
Net change in unrealized appreciation
(depreciation) on investments $552,061 $108,455 $216,927 $93,312 ($1,075) $36,231
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
from operations $606,377 $192,990 $314,031 $174,891 $104,123 $100,140
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income $31,348 $53,510 $34,771 $80,514 $100,346 $72,527
From capital gains $29,458 $75,004 $0 $0 $16,114 $0
-------- -------- -------- -------- -------- --------
Decrease in net assets from distributions
to shareholders $60,806 $128,514 $34,771 $80,514 $116,460 $72,527
FROM FUND SHARE TRANSACTIONS:
Proceeds form shares sold $1,037,745 $1,347,445 $931,945 $1,384,208 $1,041,702 $738,491
Net asset value of shares issued in reinvest-
ment of distributions to shareholders $60,805 $128,415 $34,750 $71,140 $86,046 $63,505
Payment for shares redeemed ($567,808) ($447,334) ($764,831) ($398,096) ($273,154) ($431,283)
-------- -------- -------- -------- -------- --------
Net increase from fund share transactions $530,742 $1,028,526 $201,864 $1,057,252 $854,594 $370,713
-------- ---------- -------- ---------- -------- --------
NET INCREASE IN NET ASSETS: $1,076,313 $1,093,002 $481,124 $1,151,629 $842,257 $398,326
NET ASSETS:
Beginning of period $3,642,492 $2,549,490 $2,068,366 $2,319,223 $1,476,966 $1,078,640
End of period $4,718,805 $3,642,492 $2,549,490 $3,470,852 $2,319,223 $1,476,966
Accumulated undistributed net
investment income $44 $8,141 $2,239 $14,596 $12,857 $8,004
</TABLE>
- 14 -
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
For a Share Outstanding
for the Six Months ending 1/31/97,
for the Years ending 7/31/95 & 7/31/96 &
for the Period from 8/25/93 (Inception) to 7/31/94
(Unaudited)
<S> <C> <C> <C> <C>
Stock Fund
01/31/97 07/31/96 07/31/95 07/31/94
Net asset value beginning of period $18.28 $17.87 $15.79 $14.46
Income from investment operations:
Net investment income 0.11 0.34 0.24 0.19
Net realized and unrealized gains on securities 2.68 0.81 2.11 1.24
Total from investment operations 2.79 1.15 2.35 1.43
Less distributions:
Dividends from net investment income (0.15) (0.31) (0.27) (0.10)
Capital gains distributions (0.13) (0.43)
Total Distributions (0.28) (0.74) (0.27) (0.10)
Net asset value, end of period $20.79 $18.28 $17.87 $15.79
Total return* 30.74% 6.84% 15.01% 10.70%
Ratios, supplemental data:
Net assets, end of period (thousands) $4,719 $3,642 $2,549 $2,068
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income to average net assets 0.56% 1.89% 1.45% 1.18%
Portfolio turnover rate 3.27% 6.19% 32.02% 4.52%
Average commission paid 0.066 $0.086
Fixed Income Fund
01/31/97 07/31/96 07/31/95 07/31/94
Net asset value beginning of period $13.62 $13.57 $13.38 $14.74
Income from investment operations:
Net investment income 0.38 0.78 0.80 0.77
Net realized and unrealized gains on securities 0.43 0.01 0.18 (1.63)
Total from investment operations 0.81 0.79 0.98 (0.86)
Less distributions:
Dividends from net investment income (0.37) (0.74) (0.79) (0.50)
Capital gains distributions (0.13) (0.43)
Total Distributions (0.37) (0.74) (0.79) (0.50)
Net asset value, end of period $14.06 $13.62 $13.57 $13.38
Total return* 12.26% 5.84% 7.61% -6.20%
Ratios, supplemental data:
Net assets, end of period (thousands) $3,471 $2,319 $1,477 $1,079
Ratio of expenses to average net assets 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 2.77% 5.65% 6.03% 5.57%
Portfolio turnover rate 0.25% 22.34% 18.01% 22.67%
Average commission paid $0.062 $0.082
<FN>
*Annualized
</FN>
</TABLE>
See accompanying notes to financial statements
- 15 -
<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.
- 16 -
<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.
- 17 -
<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 six months ended
January 31, 1997:
<TABLE>
<S> <C> <C>
Analysts Stock Fund Analysts Fixed Income Fund
----------------------------------------------------
Purchase of investment securities $ 916,914 $ 1,296,358
Proceeds from sales and maturities
of investment securities 126,567 0
</TABLE>
The table above includes U.S. Government Securities purchased and sold by
Analysts Fixed Income Fund amounting to $998,594 and $0, 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.
- 18 -
<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 53,136 99,798
Shares issued in reinvestment of
distributions 3,068 5,115
--------------------------------------
Totals 56,204 104,913
Less shares redeemed 28,555 28,353
--------------------------------------
Net increase in shares outstanding 27,649 76,560
Shares at beginning of year 199,273 170,327
--------------------------------------
Shares at end of year 226,922 246,887
======================================
</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 January 31, 1997.
(6) SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at January
31, 1997 was the same as identified cost. At January 31, 1997, 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 $ 1,008,848 $ (140,883) $ 867,965
Fixed Income Fund 90,355 (53,010) 37,345
</TABLE>
- 19 -
<PAGE>
TRUSTEES AND OFFICERS
David Lee Manzler Jr. President, Treasurer & Trustee
David L. Manzler Sr. Vice President, Secretary & Trustee
Walter E. Bowles, III Trustee
Robert W. Buechner Trustee
David J. Orth Trustee
Anthony J. Schement Trustee
_____________________________________________________________________________
Investment Advisor
Equity Analysts Inc.
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
Auditors
Berge & Company
20 West 9th Street
Cincinnati, OH 45202
_____________________________________________________________________________
Equity Analysts Inc.
Registered Investment Advisors
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
513-984-3377
513-984-2411
