SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / /
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Pre-Effective Amendment No. / /
---
Post-Effective Amendment No. 7 / X /
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT / /
OF 1940 ---
Amendment No. 8 / X /
------- ---
(Check appropriate box or boxes.)
ANALYSTS INVESTMENT TRUST - FILE NOS. 33-64370 AND 811-7778
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9200 MONTGOMERY ROAD, BLDG. D, SUITE 13A, CINCINNATI, OHIO 45242
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(Address of Principal Executive Offices) Zip Code
Registrant's Telephone Number, including Area Code: (513) 984-3377
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DAVID LEE MANZLER, JR., 9200 MONTGOMERY ROAD, BLDG. D, SUITE 13A, CINCINNATI,
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OHIO 45242
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(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: ____________________________
It is proposed that this filing will become effective (check appropriate box):
/ / immediately upon filing pursuant to paragraph (b)
/X/ on December 1, 1998 pursuant to paragraph (b)
/ / 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.
If appropriate, check the following box:
/ / this post-effective amendment designates a new effective date for a
--- previously filed post-effective amendment.
<PAGE>
ANALYSTS INVESTMENT TRUST
CROSS REFERENCE SHEET
FORM N-1A
ITEM SECTION IN EACH PROSPECTUS
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1.............................. Cover Page; Supplement to Prospectus
2.............................. Fund Expenses
3.............................. Financial Highlights; Supplement to
Prospectus
4.............................. Operation of the Funds, Investment Objectives
and Strategies, Investment Policies and
Techniques, General Information; Supplement
to Prospectus
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
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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
Analysts Stock Fund
Analysts Fixed Income Fund
Supplement dated December 1, 1998
to the Prospectus Dated December 1, 1997
FINANCIAL HIGHLIGHTS
The following financial information replaces the "Financial Highlights" section
for the Analysts Investment Trust. This change is effective December 1, 1998.
Analysts Investment Trust
Financial Highlights
For a Share Outstanding Throughout the Years Ended July 31, 1998, 1997, 1996,
1995 And for the Period from Inception (August 25, 1993) through July 31, 1994
<TABLE>
<CAPTION>
Stock Fixed
Fund Income
Fund
------------------------------------------- ------------------------------------------
1998 1997 1996 1995 1994 1998 1997 1996 1995 1994
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value beginning of period $ 24.18 $ 18.28 $ 17.87 $ 15.79 $ 14.46 $ 14.43 $ 13.62 $ 13.57 $ 13.38 $ 14.74
Income from invest ment operations:
Net investment income .09 .32 .34 .24 .19 .80 .79 .78 .80 .77
Net realized and unrealized gains on .93 6.06 .81 2.11 1.24 (.18) .78 .01 .18 (1.63)
securities
-------- ------- ------------------------- -------- -------- ---------------- -------
Total from investment operations 1.02 6.38 1.15 2.35 1.43 .62 1.57 .79 .98 (.86)
Less distributions:
Dividends from net investment income (.06) (.35) (.31) (.27) (.10) (.78) (.76) (.74) (.79) (.50)
Capital gains distributions (.15) (.13) (.43)
-------- -------- ------------------------- -------- -------- ---------------- -------
Total Distributions (.21) (.48) (.74) (.27) (.10) (.78) (.76) (.74) (.79) (.50)
Net asset value, end of period $ 24.99 $ 24.18 $ 18.28 $ 17.87 $ 15.79 $ 14.27 $ 14.43 $ 13.62 $ 13.57 $ 13.38
======== ======== ========================= ======== ======== ================ =======
Total return 4.25% 35.47% 6.84% 15.01% 10.70%* 4.30% 12.05% 5.84% 7.61% 6.2%*
======== ======== ========================= ======== ======== ================ =======
Ratios, supplemental data:
Net assets, end of period (thousands) $ 8,182 $ 6,388 $ 3,642 $ 2,549 $ 2,068 $ 4,672 $ 4,025 $ 2,319 $ 1,477 $ 1,079
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 2.00% 2.00% 1.5% 1.5% 1.5% 1.5% 1.5%
Ratio of net investment income to average .37% 1.54% 1.89% 1.45% 1.18% 5.50% 5.63% 5.65% 6.03% 5.57%
net assets
Portfolio turnover rate 5.47% 5.11% 6.19% 32.02% 4.52% 9.91% .97% 22.34% 18.01% 22.67%
<FN>
* Annualized
The following should be read in conjunction with the cover page of the
Prospectus: Additional information is included in the Statement of Additional
Information dated December 1, 1998.
</FN>
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST Prospectus dated December 1, 1997
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 December 1, 1997, 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
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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.
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<CAPTION>
FIXED
STOCK INCOME
FUND FUND
---- ----
<S> <C> <C>
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>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
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, 1997, 1996 AND 1995
AND THE PERIOD FROM INCEPTION (AUGUST 25, 1993) THROUGH JULY 31, 1994
STOCK FUND
-----------------------------------------------------
1997 1996 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net asset value beginning of period $ 18.28 $ 17.87 $ 15.79 $ 14.46
Income from investment operations:
Net investment income .32 .34 .24 .19
Net realized and unrealized gains on securities 6.06 .81 2.11 1.24
----------- ----------- --------- ---------
Total from investment operations 6.38 1.15 2.35 1.43
Less distributions:
Dividends from net investment income (.35) (.31) (.27) (.10)
Dividends from capital gains (.13) (.43)
Total distributions (.48) (.74) (.27) (.10)
----------- ----------- --------- ---------
Net asset value, end of period $ 24.18 $ 18.28 $ 17.87 $ 15.79
=========== =========== ========= =========
Total return 35.47% 6.84% 15.01% 10.70%*
=========== =========== ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 6,388 $ 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 1.54% 1.89% 1.45% 1.18%
Portfolio turnover rate 5.11% 6.19% 32.02% 4.52%
Average commission rate paid $ 0.0635 $ 0.0862 -- --
FIXED
INCOME FUND
-----------------------------------------------------
1997 1996 1995 1994
---- ---- ---- ----
Net asset value beginning of period $ 13.62 $ 13.57 $ 13.38 $ 14.74
Income from investment operations:
Net investment income .79 .78 .80 .77
Net realized and unrealized gains on securities .78 .01 .18 (1.63)
----------- ----------- --------- ---------
Total from investment operations 1.57 .79 .98 (.86)
Less distributions:
Dividends from net investment income (.76) (.74) (.79) (.50)
Dividends from capital gains
----------- ----------- --------- ---------
Total distributions (.76) (.74) (.79) (.50)
----------- ----------- --------- ---------
Net asset value, end of period $ 14.43 13.62 $ 13.57 $ 13.38
=========== =========== ========= =========
Total return 12.05% 5.84% 7.61% (6.20%)*
=========== =========== ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 4,025 $ 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 5.63% 5.65% 6.03% 5.57%
Portfolio turnover rate 0.97% 22.34% 18.01% 22.67%
Average commission rate paid $ 0.0550 $ 0.0818 -- --
<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
- 4 -
<PAGE>
debentures, repurchase agreements and investment companies which invest
primarily in the above. 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)
- 5 -
<PAGE>
Shareholder account number ___________________
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.
- 6 -
<PAGE>
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 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.
- 7 -
<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
- 8 -
<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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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
that, 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.
DAVID J. ORTH, P.O. Box 6706, Florence, Kentucky is a sales
representative for Nextell Communications, Inc., a wireless communications
company. From March 1996 to August 1997, he was a Property Manager for Public
Storage Properties, a warehouse rental company. From August 1990 to March 1996,
he was a pharmaceutical sales representative for Bristol-Myers Squibb, Inc.
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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, 1989 until October, 1992.
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.
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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 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
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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. 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
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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.
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
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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
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
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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
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.
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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 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
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<PAGE>
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 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
- 20 -
<PAGE>
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.
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
- 21 -
<PAGE>
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 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.
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<PAGE>
TABLE OF CONTENTS
PAGE
FUND EXPENSES............................................................2
FINANCIAL HIGHLIGHTS.....................................................2
INVESTMENT OBJECTIVES AND STRATEGIES.....................................3
HOW TO INVEST IN EACH FUND...............................................4
EXCHANGE PRIVILEGE.......................................................6
REDEMPTION OF SHARES.....................................................7
SHARE PRICE CALCULATION..................................................9
DIVIDENDS AND DISTRIBUTIONS..............................................10
TAXES ................................................................10
TRUSTEES AND OFFICERS....................................................11
OPERATION OF THE FUNDS...................................................12
INVESTMENT POLICIES AND TECHNIQUES.......................................13
GENERAL INFORMATION......................................................20
INVESTMENT PERFORMANCE...................................................20
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENT OF ADDITIONAL INFORMATION
DECEMBER 1, 1998
*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
December 1, 1997 and the Supplement to Prospectus. A copy of the Prospectus and
Supplement 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 INVESTEMENT 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 INVESTEMENTS 4
INVESTMENT LIMITATIONS 11
STATE RESTRICTIONS 13
THE INVESTMENT ADVISER 13
PORTFOLIO TRANSACTIONS AND BROKERAGE 14
DETERMINATION OF SHARE PRICE 15
INVESTMENT PERFORMANCE 16
CUSTODIAN AND TRANSFER AGENT 18
ACCOUNTANTS 18
INDEPENDENT AUDITORS REPORT 19
FINANCIAL STATEMENTS 20
<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 October 19, 1998, the following persons five percent (5%) or more
of the Stock Fund: David L. Manzler, Sr., 8425 Blue Cut Lane, Cincinnati, Ohio -
8.48%.
As of October 19, 1998, the following persons owned five percent (5%)
or more of the Fixed Income Fund: Equity Analysts Inc., 9200 Montgomery Road,
Suite 13A, Cincinnati, Ohio - 12.58%; Helene Manzler, 3580 Shaw Ave., Apt. 511,
Cincinnati, OH 45208 - 5.39%.
As of October 19 , 1998, the Trustees and Officers as a group
beneficially owned 12.46% of the Stock Fund and 16.10% of the Fixed Income Fund.
1
<PAGE>
TRUSTEE COMPENSATION
The compensation paid to the Trustees of the Trust for the year ended July
31,1998 is set forth in the following table:
<TABLE>
<CAPTION>
TOTAL COMPENSATION
FROM TRUST (THE TRUST
AGGREGATE COMPENSATION IS NOT IN A FUND
NAME FROM TRUST (1) COMPLEX) (1)
- --------------------------------------------------------------------------------
<S> <C> <C>
David Lee Manzler, Jr. $0 $0
David L. Manzler, Sr. $0 $0
Walter E. Bowles, III $400 $400
Robert W. Buechner $400 $400
David J. Orth $400 $400
Anthony J. Schement $400 $400
<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 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. 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.
2
<PAGE>
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 insecurities 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" bond and "pay-in-kind"
bonds. Zero coupon bonds are issued at a significant discount from their
principal amount in lieu of paying interest periodically. Pay-in-kind bonds
allow the issuer, at its opinion, to make current interest payments on the bonds
either in cash or in additional bands. 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
3
<PAGE>
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 CARssm(Certificates for Automobile Receivablessm) 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 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 then 5% if 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 a 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
4
<PAGE>
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 extent
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 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
5
<PAGE>
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
then 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 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, futures
contracts, stock indexes and foreign currencies. The purchaser of the 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 buy
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
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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 a 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 potion 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 for 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
futures position. Alternatively, an interest rate futures contract may be
purchased when a Fund anticipates the future purchase of a security but 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
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 Adviser 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 Advisor 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
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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 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 had
incurred a net loss on its open futures 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 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 Advisor in response to requests of
broker-dealers or institutional investors which the Advisor 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
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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.
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 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 changes without the affirmative vote of a
majority of the outstanding shares of the applicable Fund. As used in the
Prospectus and the 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 applicable series)
present at the 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 borrowing is
made. The 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 the 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 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).
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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. This Fund will not invest 25% or more of its 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 a 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 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 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 the 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.
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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 reserve
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 then 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 Analyst 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
their affiliation, may receive benefits from the management fees paid to the
Adviser.
Under the terms of the management (the "Agreement"), the Adviser
manages the Funds' investments subject to approval of the Board of Trustees and
pays all of the expenses of the Funds except brokerage, taxes, interest and
extraordinary expenses. As compensation For the Adviser's management services
and agreement tp pay the Fund's expenses, Analysts Stock Fund is obligated to
pay the Adviser's 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 0.75% of such assets in excess of $100,000,000.
For the fiscal year ended July 31, 1998, the Analyst Stock Fund paid
advisory fees of $144,760 to the Adviser and the Analysts Fixed Income Fund paid
advisory fees of $66,346 to the Adviser. For the fiscal year
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ended July 31, 1997 the Analysts Stock Fund paid advisory fees of $92,420 to the
Adviser and the Analysts Fixed Income Fund paid advisory fees of $48,746 to the
Adviser. 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 $27,934 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 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 Advisor generally seeks favorable prices
and commissions 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 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 Advisor 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 possible to place a dollar value on the
research and other information received. It is 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.
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.
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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 random
client selection.
For the fiscal year ended July 31, 1998, the Analysts Stock Fund and the
Analysts Fixed Income Fund paid brokerage commissions of $3,202 and $2,269
respectively. For the fiscal year ended July 31, 1997, the Analysts Stock Fund
and the Analysts Fixed Income Fund paid brokerage commissions of $5,691 and
$3,474 respectively. For the fiscal year ended July 31, 1996, the Analysts Stock
Fund and the Analysts Fixed Income Fund paid brokerage commission of $2,937 and
$1,309 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 (4:00P.M., Eastern
time) on each day the Trust is open for business. The Trust is open for business
every day except Saturdays, Sundays, and the following holidays: New Year's Day,
Martin Luther King, Jr. 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.
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INVESTMENT PERFORMANCE
"Average annual total return," as defined by the Securities and
Exchange Commission, is computed by finding the average annual compounded rates
of a 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]
Where: 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 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, 1998 was 5.12%.
A Fund's investment performance will vary depending upon the market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund. These factors and possible differences in the methods
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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
Standards & 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 year ended July 31, 1998 and from the inception (August 25, 1993)
through July 31, 1998 were 4.25% and 13.98%, respectively.
ANALYSTS FIXED INCOME FUND. The average annual total returns of the
Fixed Income Fund for the year ended July 31, 1998 and for the period from
inception (August 25,1993) through July 31,1998 were 4.30% and 4.70%,
respectively.
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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, 1999.
FINANCIAL STATEMENTS
The financial statements and independent auditor's report required to
be included in this Statement of Additional Information are incorporated herein
by reference to the Trust's Annual Report to Shareholders for the period ended
July 31, 1998. The Funds will provide the Annual Report without charge at
written request or request by telephone.
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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, 1998, 1997, 1996
and 1995 and the period from inception (August 25,
1993) through July 31, 1994.
Included in Part B: The following documents are incorporated
by reference to the Analysts Investment Trust 1998 Annual
Report to Shareholders:
(1) Independent Auditors Report.
(2) Schedule of Investments in Securities, Analysts Stock
Fund - July 31, 1998.
(3) Schedule of Investments in Securities, Analysts Fixed
Income Fund - July 31, 1998.
(4) Statement of Assets and Liabilities - July 31, 1998.
(5) Statement of Operations - year ended July 31, 1998.
(6) Statement of Changes in Net Assets - years ended July
31, 1998 and 1997.
(7) Financial Highlights - for a share outstanding
throughout the years ended July 31, 1998, 1997, 1996
and 1995 and the period from inception (August 25,
1993) through July 31, 1994.
(8) Notes to Financial Statements - July 31, 1998.
(b) Exhibits
(1) Copy of Registrant's Declaration of Trust, which was
filed as an Exhibit to Registrant's Post-Effective
Amendment No. 6, is hereby incorporated by reference.
(2) Copy of Registrant's By-Laws, which was filed as an
Exhibit to Registrant's Post-Effective Amendment No. 6,
is hereby incorporated by reference.
<PAGE>
(3) Voting Trust Agreements - None.
(4) Instruments Defining the Rights of Holders of
Securities - None.
(5) Copy of Registrant's Management Agreement with its
Adviser, Equity Analysts Inc., which was filed as an
Exhibit to Registrant's Post- Effective Amendment No.
6, 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 Post-Effective Amendment No. 6, 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 Post-Effective Amendment No. 6,
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, 1997, 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 Post-Effective Amendment
No. 6, is hereby 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. 6, is hereby incorporated
by reference.
(17) Financial Data Schedule - None.
(18) Rule 18f-3 Plan - None.
- 4 -
<PAGE>
(19) (i) Power of Attorney for Registrant and Certificate
with respect thereto, which were filed as an
Exhibit to Registrant's Post- Effective Amendment
No. 6, are hereby incorporated by reference.
(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 OCTOBER 19, 1998)
- -------- --------------------------------------------------------
TITLE OF CLASS NUMBER OF RECORD HOLDERS
Analysts Fixed Income Fund 404
Analysts Stock Fund 623
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 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.
- 5 -
<PAGE>
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.
(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.
- 6 -
<PAGE>
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.
(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.
(b) POSITION WITH POSITION WITH
NAME UNDERWRITER REGISTRANT
---- ----------- ----------
David L. Manzler, Sr. Vice President Vice President,
and Director Secretary and Trustee
- 7 -
David Lee Manzler, Jr. President, President, Treasurer
Secretary and Director and Trustee
Bernard J. McEvoy Director None
The address of all of the above-named persons is 9200
Montgomery Road, Bldg. D, Suite 13A, Cincinnati, Ohio
45242.
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.
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.
- 8 -
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant certifies that it meets all
the requirements for effectiveness of this Post- Effective Amendment to its
Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933
and 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 19th day of November, 1998.
ANALYSTS INVESTMENT TRUST
By:/s/___________________
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/___________________
Secretary and Donald S. Mendelsohn
Trustee Attorney-in-Fact
David Lee Manzler, Jr.* President, November 19, 1998
Treasurer and
Trustee
Walter E. Bowles, III* Trustee
Robert W. Buechner* Trustee
Anthony J. Schement* Trustee
David J. Orth* Trustee
- 9 -
<PAGE>
EXHIBIT INDEX
-------------
NUMBER EXHIBIT
- ------ -------
1 Consent of Berge and Company LTD
2 Powers of Attorney for the Registrant's Officers and Trustees
- 10 -
CONSENT OF INDEPENDENT AUDITORS
-------------------------------
We consent to the reference to our firm and to the use of our report dated
September 9, 1998 in the Post Effective Amendment Number 7 of Analysts
Investment Trust.
/S/
Berge & Company LTD
Cincinnati, Ohio
November 2, 1998
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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 any Amendment or Amendments to the Trust's
Registration Statement, 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
11th day of August, 1993.
/S/
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 11th day of August, 1993.
/S/ JANICE RHODENBAUGH
Notary Public
12
<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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 any Amendment or Amendments to the Trust's
Registration Statement, 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
11th day of August, 1993.
/S/
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 11th day of August, 1993.
/S/ JANICE RHODENBAUGH
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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 any Amendment or Amendments to the Trust's
Registration Statement, 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
11th day of August, 1993.
/S/
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 11th day of August, 1993.
/S/ JANICE RHODENBAUGH
otary 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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 any Amendment or Amendments to the Trust's
Registration Statement, 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
11th day of August, 1993.
/S/
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 11th day of August, 1993.
/S/ JANICE RHODENBAUGH
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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 amendment, 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
7th day of October 1997.
/S/
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 7th day of October 1997.
/S/ SCOTT R. MALLEN
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"),
periodically files amendments to its Registration Statement with the Securities
and Exchange Commission under the provisions of the Securities Act of 1933 and
the Investment Company Act of 1940, as amended; 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 amendments, 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
7th day of October 1997.
/S/
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 7th day of October 1997.
/S/ SCOTT R. MALLEN
Notary Public
