EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISORS
ANALYSTS INVESTMENT TRUST
SEMI-ANNUAL REPORT
January 31, 1999
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
<PAGE>
MESSAGE FROM THE FUND PRESIDENT/PORTFOLIO MANAGER
-------------------------------------------------
ANALYSTS STOCK FUND
- -------------------
This report covers the period August 1, 1998 through January 31, 1999. The total
return of the Stock Fund from August 1, 1998 through January 31, 1999 was 8.29%.
This compares to a 7.94% rate of return for the Dow Jones World-Global Index
(DJWG). Since inception of the Analysts Stock Fund (August 25, 1993), the
average annual total return of the Analysts Stock Fund is 14.28% verses 12.07%
for the DJWG.
The six month returns of the Analysts Stock Fund and the DJWG were almost the
same. This period was highlighted by the Federal Reserve cutting interest rates
three times fueling a stock market rally in the U.S. and the world. After a
12.9% decline in August for the Analysts Stock Fund and a 13.9% decline for the
DJWG there was five straight months of positive returns in the Analysts Stock
Fund and the DJWG. The Analysts Stock Fund has outperformed the DJWG since
inception by having a heavier concentration of U.S. large capitalization stocks
and a lower allocation of Japanese and Asian stocks. The Analysts Stock Fund has
also allocated more of its portfolio to sectors such as telecommunications and
technology, which have outperformed other sectors that are more heavily weighted
in the DJWG. The strategy of the Analysts Stock Fund is to diversify between
Large Capitalization, Small Capitalization, International, Real Estate
Investment Trusts and Natural Resources Stocks. Research indicates that an
allocation between these broad groups has provided the lowest possible
volatility for a portfolio of stocks while still keeping stock market
performance.
The international economic crisis that started in Thailand in 1997 has continued
into 1999. The crisis has moved from Southeast Asia to Russia, and to South
America. The problem is each country that has been affected has too much foreign
debt and an overvalued currency relative to their reserves, fiscal deficit, and
economic situation. The Fed feared a credit crunch and a slowdown in the U.S.
and lowered rates three times in the fourth quarter. Since the Fed action, the
U.S. economy has shown strength and the fear is now that the Fed may raise rates
later in the year. While the U.S. economy has been strong, productivity gains
have negated inflation. Corporate earnings have grown, but not as fast as the
stock market. 1999 will be characterized by volatility and corrections as
earnings catch up to stock prices. It is interesting to note that the fear of
rising rates could cause a correction in the stock market, which would lower the
growth of U.S. GDP. This is because the wealth effect of rising stock markets
causing people to spend more and falling stock markets causing people to spend
less. If this occurs, the Fed may not have to lower rates since the wealth
effect of a falling market could lower growth enough to hold interest rates
steady. It is also interesting to note that real interest rates, that is
interest rates minus the inflation rate, are very high. If inflation stays low,
and it should, rates could come down later in the year.
<PAGE>
ANALYSTS FIXED INCOME FUND
- --------------------------
The total return of the Fixed Income Fund for the period August 1, 1998 through
January 31, 1999 was 0.9%. This compares to a 5.07% rate of return for the
Lehman Intermediate T-Bond Index (LITB) over the same period. Since inception of
the Analysts Fixed Income Fund (August 25, 1993), the average annual return of
the Analysts Fixed Income Fund was 4.43% verses 6.12% for the Lehman
Intermediate T-Bond Index.
The Analysts Fixed Income Fund is diversified between Government Bonds,
Corporate Bonds, Mortgage Backed Securities, Preferred Stocks, Global Bond Funds
and Real Estate Investment Trust. The Fund's strategy is to remain broadly
diversified to reduce our exposure in any one area and reduce our volatility.
The global economic crisis, as stated above, has spread from Asia to Russia to
South America causing a flight to quality of global capital. The destination of
that flight was U.S. treasury bonds, the safest financial instrument in the
world. Many financial instruments, including corporate debt, sovereign debt, and
foreign debt, had negative returns during this period due to the widening
spreads between these instruments and the U.S. treasury bond. The deteriorating
economic global situation caused the Fed to lower interest rates in the U.S.
three times in the fourth quarter of 1998 boosting treasuries even further.
Clearly, U.S. treasury bonds were the best fixed income investment during this
period. The Analysts Fixed Income Fund had almost 25% invested in U.S. treasury
bonds, but the remainder of the portfolio offset the gains in the treasuries.
The interest rate environment looks good for the next six months. There is some
fear that the Fed will raise interest rates this year because of the strong U.S.
economy, but inflation is low and recent productivity reports suggest that
inflation will not rise significantly this year. Real interest rates, the
difference between fed funds and inflation, remain high, giving the Fed some
room to not raise and possibly lower rates later this year. The balanced federal
budget will also work to keep interest rates low as the supply of Treasury Bonds
decreases. The more federal debt that is retired with budget surpluses the more
downward pressure there will be on interest rates. If the government chooses to
spend the surplus, or worse yet go to a deficit again trying to save social
security, the more likely we will have higher interest rates. If the government
can continue fiscal discipline and reduce the national debt, interest rates
should stay low for 1999.
Lee Manzler
President and Portfolio Manager
February 10, 1999
<PAGE>
Analysts Stock Fund
Growth of a $10,000 Investment
Compared to Dow Jones World Index
From 8/25/93 Thru 1/31/99
Analysts Investment Trust Stock Fund
to
Dow Jones World Index
Average Annual Total Return
For the Period Ending 1/31/99
Since Inception: 14.28%
Total Return for the Period
8/1/97 through 1/31/99: 8.29%
Average Annual Total Return
For the Period Ending 12/31/98
1 Year: 13.93% 5 Years: 12.54% Since Inception (8/25/93): 14.33%
(Graph depicted here shows the comparison of $10,000 investment between Analysts
Stock Fund and DJ World Index for the period 8/1/97 through 1/31/99.)
DJ
AIT Stock World
Stock Index
----- -----
10000 10000
10649 10210
10796 9978
11189 10199
10821 9559
11345 9981
11835 10658
11574 10491
10971 10044
11023 10319
10960 10319
10602 10298
10990 10468
11353 10694
11268 10504
11369 10711
10944 10184
10982 10239
10971 10011
11161 10118
11450 10577
11706 10933
12024 11014
12214 10981
12641 11485
12649 11270
12888 11499
12522 11327
12899 11669
13161 11993
13366 12215
13476 12241
13575 12402
13866 12704
14027 12686
13982 12700
13506 12187
13781 12319
14134 12799
14278 12816
15062 13497
15074 13263
15582 13359
15847 13501
15626 13185
15977 13543
16803 14402
17329 15056
18299 15744
17567 14790
18449 15565
17467 14640
17642 14845
18000 14976
18180 15278
18996 16325
19963 16981
19999 17101
19561 17009
19590 17286
19073 17208
16611 14805
17309 15102
18508 16503
19461 17416
20483 18223
20658 18573
<PAGE>
Analysts Fixed Income Fund
Growth of a $10,000 Investment
Compared to Lehman Intermediate T-Bond Index
From 8/25/93 Thru 1/31/99
Analysts Investment Trust Fixed Income Fund
to
Lehman Intermediate T-Bond Index
Average Annual Total Return
For the Period Ending 1/31/99
Since Inception: 4.43%
Total Return for the Period
8/1/97 through 1/31/99: 0.90%
Average Annual Total Return
For the Period Ending 12/31/98
1 Year: 1.54% 5 Years: 5.42%
Since Inception (8/25/93): 4.45%
(Graph depicted here shows the comparison of $10,000 investment between Analysts
Fixed Income Fund and Lehman Intermediate T-Bond Index for the period
8/25/93 through 1/31/99.)
AIT Lehman
Fixed T-Bond
Income Index
------ -----
10000 10000
9885 10034
9851 10077
9850 10091
9691 10042
9699 10085
9913 10186
9787 10054
9454 9912
9450 9844
9432 9854
9259 9860
9423 9983
9398 10012
9225 9927
9082 9934
9013 9886
9081 9882
9293 10048
9547 10244
9574 10296
9708 10417
10138 10710
10168 10782
10140 10782
10241 10868
10346 10939
10446 11062
10566 11199
10726 11313
10856 11412
10671 11282
10632 11228
10572 11193
10600 11189
10687 11309
10731 11343
10757 11347
10915 11493
11128 11682
11366 11824
11386 11763
11387 11802
11483 11816
11288 11751
11401 11882
11536 11973
11687 12076
12023 12302
11892 12252
12145 12388
12135 12534
12272 12560
12433 12666
12615 12830
12567 12812
12573 12853
12528 12913
12573 13001
12576 13090
12542 13142
12222 13401
12700 13727
12623 13756
12679 13700
12627 13757
12656 13809
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1999
<TABLE>
<CAPTION>
COMMON STOCK: 91.1%
Large Capitalization U.S. Stocks: 40.8%
SHARES MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C>
5,500 Abbott Laboratories $255,405
4,100 Ameritech Corporation 267,013
7,300 Cincinnati Financial Corporation 240,443
7,400 Comair Holdings Inc. 271,487
3,300 Dell Computer Corporation 330,000
3,000 Diamonds Trust 280,031
3,700 Hewlett Packard Co. 289,988
800 Intel Corporation 267,780
4,500 Kroger Co. 285,750
5,800 Oracle Corporation 321,175
3,000 Procter & Gamble Company 272,625
2,100 S&P 500 Depository Trust 268,177
-------
Total (Cost: $3,014,662) $ 3,606,514
Small/Medium Capitalization U.S. Stocks: 17.3%
8,200 Airborne Freight Corporation 287,000
9,600 Connecticut Energy 259,800
6,400 Dallas Semiconductor 234,800
3,600 S&P 400 Deposit Receipts 255,825
25,000 Shoe Carnival 235,937
9,500 Speedway Motorsports 260,063
-------
Total (Cost: $1,410,686) $ 1,533,425
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1999
Foreign Stocks: 27.0%
SHARES MARKET VALUE
- --------------------------------------------------------------------------------
4,100 Cadbury Schwepps PLC ADR 261,888
2,500 DaimlerChrysler Corporation 258,906
5,800 Royal Dutch 232,363
3,200 TDK Corp. ADR 263,200
1,500 Vodafone Group PLC ADR 292,875
9,800 WEBS-Italy 254,800
26,000 WEBS-Japan 273,000
13,000 WEBS-United Kingdom 267,312
3,800 WPP Group PLC ADR 284,288
-------------
Total (Cost: $2,013,448) $ 2,388,632
Natural Resources Stocks: 6.0%
7.250 Aquarion Co. 279,578
9,800 First Industrial Realty 251,737
---------
Total (Cost: $503,731) $ 531,315
---------
Total Common Stock (Cost: $6,942,527) $ 8,059,886
REPURCHASE AGREEMENTS: 9.1%
FACE
----
801,000 4.7% Star Bank Repurchase Agreement, issued
January 28, 1999 due February 4, 1999,
collateralized by $1,130,000 GNMA Pool # 8359,
6.5%; due January 20, 2024. $ 801,000
-----------
TOTAL INVESTMENT AT MARKET VALUE (COST: $7,743,527) 100.2% $ 8,860,886
ALL OTHER ASSETS LESS LIABILITIES (.2)% (14,887)
-----------
NET ASSETS 100% $ 8,845,999
===========
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1999
COMMON STOCK: 27.7%
Real Estate Investment Trusts: 8.0%
SHARES MARKET VALUE
- --------------------------------------------------------------------------------
2,050 American Health Properties $ 42,666
4,000 Berkshire Realty, Inc. 39,000
1,400 Carramerica Realty Corporation 30,800
3,580 Commercial Net Lease 46,988
4,200 Dynex Capital 21,000
1,700 First Industrial Realty 43,669
2,350 HRPT Properties 32,900
1,500 Hospitality Properties Trust 40,031
1,489 Omega Healthcare Investors 42,995
1,650 Simon Debartolo Group Inc. 43,415
---------
Total (Cost $421,673) $ 383,464
Closed End Mutual Funds: 19.7%
15,000 Dreyfus Strategic Govt. Income $136,875
11,700 Duff & Phelps Bond Income Fund 176,231
10,900 Kleinwort Benson Australian Income Fund 73,575
19,800 Putnam Premier Income Fund 164,588
6,294 Scudder Global High Income Fund 29,503
9,200 Templeton Emerging Markets Income Fund 86,825
20,000 Templeton Global Government Fund 132,500
20,000 Templeton Global Income Fund 138,750
-------
Total (Cost: $1,092,820) $ 938,847
Total Common Stock (Cost: $1,514,493) $ 1,322,311
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1999
PREFERRED STOCKS: 4.4%
SHARES MARKET VALUE
- --------------------------------------------------------------------------------
2,000 Carolina Power & Light Company 51,750
2,000 Consolidated Edison 51,875
2,000 Travelers Trust 52,000
2,000 Unum Corp. MIDS 51,750
---------
Total Preferred Stock (Cost: $200,000) $ 207,375
CORPORATE BONDS: 31.0%
FACE MARKET VALUE
- --------------------------------------------------------------------------------
30,000 Merrill Lynch 7.75%, 3/1/99 30,051
4,000 RJR Nabisco Inc. 8.3%, 4/15/99 4,006
35,000 Texaco Capital Corp. 9.0%, 12/15/99 35,744
50,000 DuPont E I De Nemours & Company 9.15%, 4/15/00 52,390
46,000 Household Financial 9.625%, 7/15/00 48,600
5,000 First Chicago Corp. 11.25%, 2/20/01 5,541
5,000 Bankamerica Corp. 8.375%, 3/15/02 5,425
100,000 Associates Corp. 6.375% 7/15/02 102,745
100,000 Sony Corp. 6.125%, 3/4/03 102,660
100,000 Kentucky Power 6.65%, 5/1/03 102,185
10,000 General Motors Corp. 8.875%, 5/15/03 11,240
10,000 Consolidated Natural Gas Company 5.75%, 8/1/03 10,122
50,000 New York Telephone Company 5.625%, 11/1/03 51,188
50,000 American Telephone & Telegraph Company
6.75%, 4/1/04 53,313
50,000 Nationsbank Corp. 7.75%, 8/15/04 55,042
10,000 Southwestern Bell 5.75%, 9/1/04 10,049
100,000 Salomon Smith Barney 6.25%, 1/15/05 101,576
50,000 Pacific Bell Telephone Company 6.25%, 3/1/05 52,283
50,000 U.S. West Communications 6.125%, 11/15/05 52,269
150,000 Loews Corporation 6.75%, 12/5/06 158,515
100,000 Entergy Corp. 6.45%, 4/1/08 102,392
100,000 GE Capital Corp. 8.65%, 5/15/09 124,060
30,000 Chemical Banking Corp. 7.5%, 5/15/10 30,721
50,000 Citicorp 7.0%, 12/15/10 49,941
50,000 J.P. Morgan 6.610%, 12/15/10 50,243
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1999
CORPORATE BONDS: (CONTINUED)
FACE MARKET VALUE
- --------------------------------------------------------------------------------
10,000 Caterpillar Inc. Del. 9.375, 8/15/11 12,991
50,000 Aetna Life & Cas Company 6.750%, 9/15/13 50,679
10,000 International Business Machines 8.375%, 11/1/19 12,823
---------
Total Corporate Bonds (Cost: $1,420,876) $ 1,478,791
U.S. GOVERNMENT OBLIGATIONS/CD: 25.3%
100,000 First Natl. Bk. Keystone 5.6%, 9/16/03 100,000
1,000,000 United States Treasury Notes 6.5%, 10/15/06 1,109,063
- --------- ---------
Total Government Bonds (Cost: $1,098,594 ) $ 1,209,063
MORTGAGE BACKED OBLIGATIONS: 2.9%
2,092 Paine Webber CMO Trust Series 1988-I,
8.6%, 4/1/18 $ 2,169
9,644 FHLMC REMIC 1991 Trust 1177 Class I,
6.95%, 1/15/21 9,724
15,000 FNMA REMIC Series 93-1601,
6.5%, 7/25/22 14,942
12,000 FNMA REMIC 1992 Trust G-53 Class J,
7.0%, 9/25/22 12,233
12,000 FNMA 1993 Trust 122 Class L,
6.5%, 1/25/23 11,978
20,000 FNMA REMIC 1993 Trust G 10 Class J,
5.0%, 3/25/23 18,310
20,000 FHLMC REMIC 1993 Trust 1497 Class Q,
7.0%, 4/15/23 19,750
20,000 FHLMC REMIC 1993 Trust 1602 Class BB
6.1%, 4/15/23 19,651
12,000 FHLMC REMIC 1993 Trust 1503 Class H,
7.0%, 5/15/23 11,847
12,000 FNMA REMIC 1993 Trust 50 Class L,
7.0%, 5/25/23 11,815
4,000 FHLMC REMIC 1993 Trust G13 Class D,
6.75%, 6/25/23 3,905
-------
Total Mortgage Backed (Cost: $138,722) $ 136,325
REPURCHASE AGREEMENTS: 7.6%
362,000 4.7% Star Bank Repurchase Agreement,
issued January 28, 1999, due February 4, 1999,
collateralized by $1,130,000 GNMA Pool
# 8359, 6.5%; due January 20, 2024. $ 362,000
-----------
TOTAL INVESTMENT AT MARKET VALUE (COST: $4,734,685) 98.9% $ 4,715,865
ALL OTHER ASSETS LESS LIABILITIES 1.1% 56,135
-----------
NET ASSETS 100% $ 4,772,000
===========
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
FIXED
STOCK FUND INCOME FUND
-------------------------------
ASSETS
<S> <C> <C>
Investment securities, at value
Unaffiliated Issuers $ 8,059,886 $ 4,353,865
Repurchase Agreements 801,000 362,000
--------------------------
8,860,886 4,715,865
Dividends and interest receivable 4,904 52,674
Receivable for investment security sold 0 80
Cash 0 9,031
--------------------------
Total Assets 8,865,790 4,777,650
--------------------------
LIABILITIES
Payable for Security Sold 5,820 0
Management fee payable 13,971 5,650
--------------------------
Total Liabilities 13,971 5,650
--------------------------
NET ASSETS $ 8,845,999 $ 4,772,000
==========================
Net assets consist of:
Capital shares $ 6,287,714 $ 4,788,870
Accumulated undistributed net investment income (10,385) 19,524
Accumulated net realized gains (losses)
from securities transactions 1,451,311 (17,574)
Net unrealized appreciation (depreciation) on investments 1,117,359 (18,820)
--------------------------
NET ASSETS $ 8,845,999 $ 4,772,000
==========================
Net asset value, offering price,
and redemption price per share 26.91 $ 14.01
==========================
Fund shares outstanding 328,721 340,615
==========================
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
FIXED
STOCK FUND INCOME FUND
--------------------------
INVESTMENT INCOME:
<S> <C> <C>
Dividends $ 94,944 $ 69,398
Interest 16,009 95,807
--------------------------
Total Investment Income 110,953 165,205
EXPENSES:
Management Fee 80,742 35,918
--------------------------
NET INVESTMENT INCOME 30,211 129,287
REALIZED AND UNREALIZED GAINS ON INVESTMENTS:
Net realized gains (losses) from security transactions 1,483,706 2,728
Net change in net unrealized appreciation (depreciation)
on investments (828,389) (84,509)
--------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS 655,317 (81,781)
--------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 685,528 $ 47,506
===========================
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDING 1/31/99 AND
YEARS ENDED 7/31/98, 7/31/97, & 7/31/96
(UNAUDITED)
<TABLE>
<CAPTION>
STOCK FUND
1999 1998 1997 1996
---- ---- ---- ----
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 30,211 $ 26,743 $ 71,281 $ 59,413
Net realized gains (losses) from
securities transactions $ 1,483,706 ($ 23,447) $ 52,396 $ 25,122
Net change in unrealized appreciation
(depreciation) on investments ($ 828,389) $ 298,454 $ 1,331,388 $ 108,455
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from operations $ 685,528 $ 301,750 $ 1,455,065 $ 192,990
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income $ 50,841 $ 17,818 $ 78,102 $ 53,510
From capital gains $ 0 $ 43,883 $ 29,457 $ 75,004
----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders $ 50,841 $ 61,701 $ 107,559 $ 128,514
FROM FUND SHARE TRANSACTIONS:
Proceeds form shares sold $ 1,165,029 $ 3,314,488 $ 2,550,587 $ 1,347,445
Net asset value of shares issued in reinvest-
ment of distributions to shareholders $ 50,841 $ 61,701 $ 107,560 $ 128,415
Payment for shares redeemed ($1,186,392) ($1,822,896) ($1,259,653) ($ 447,334)
----------- ----------- ----------- -----------
Net increase from fund share transactions $ 29,478 $ 1,553,293 $ 1,398,494 $ 1,028,526
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS: $ 664,165 $ 1,793,342 $ 2,746,000 $ 1,093,002
NET ASSETS:
Beginning of period $ 8,181,834 $ 6,388,492 $ 3,642,492 $ 2,549,490
End of period $ 8,845,999 $ 8,181,834 $ 6,388,492 $ 3,642,492
Accumulated undistributed net invest income ($ 10,385) $ 8,925 $ 1,320 $ 8,141
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net investment income $ 129,287 $ 243,524 $ 182,430 $ 105,198
Net realized gains (losses) from
securities transactions $ 2,728 $ 13,073 ($ 752) $ 0
Net change in unrealized appreciation
(depreciation) on investments ($ 84,509) ($ 70,735) $ 192,392 ($ 1,075)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from operations $ 47,506 $ 185,862 $ 374,070 $ 104,123
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income $ 132,837 $ 238,220 $ 177,516 $ 100,346
From capital gains $ 0 $ 0 $ 0 $ 16,114
----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders $ 132,837 $ 238,220 $ 177,516 $ 116,460
FROM FUND SHARE TRANSACTIONS:
Proceeds form shares sold $ 869,600 $ 1,492,824 $ 2,143,361 $ 1,041,702
Net asset value of shares issued in reinvest-
ment of distributions to shareholders $ 119,892 $ 217,950 $ 159,244 $ 86,046
Payment for shares redeemed ($ 804,562) ($1,010,987) ($ 793,410) ($ 273,154)
----------- ----------- ----------- -----------
Net increase from fund share transactions $ 184,930 $ 699,787 $ 1,509,195 $ 854,594
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS: $ 99,599 $ 647,429 $ 1,705,749 $ 842,257
NET ASSETS:
Beginning of period $ 4,672,401 $ 4,024,972 $ 2,319,223 $ 1,476,966
End of period $ 4,772,000 $ 4,672,401 $ 4,024,972 $ 2,319,223
Accumulated undistributed net invest income $ 19,524 $ 71,650 $ 17,771 $ 12,857
</TABLE>
<PAGE>
ANALYSTS INVESTMENT TRUST
FOR A SHARE OUTSTANDING
FOR THE SIX MONTHS ENDING 1/31/99,
FOR THE YEARS ENDING 7/31/95, 7/31/96 & 7/31/97, 7/31/98
FOR THE PERIOD FROM 8/25/93 (INCEPTION) TO 7/31/94
(Unaudited)
<TABLE>
<CAPTION>
STOCK FUND
01/31/99 07/31/98 07/31/97 07/31/96 07/31/95 07/31/94
--------- --------- ------------ --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value beginning of period $ 24.99 $ 24.18 $ 18.28 $ 17.87 $ 15.79 $ 14.46
Income from investment operations:
Net investment income 0.09 0.09 0.32 0.34 0.24 0.19
Net realized and unrealized gains
on securities 1.98 0.93 6.06 0.81 2.11 1.24
---------- ---------- ----------- ---------- ---------- ----------
Total from investment operations 2.07 1.02 6.38 1.15 2.35 1.43
Less distributions:
Dividends from net investment income (0.15) (0.06) (0.35) (0.31) (0.27) (0.10)
Capital gains distributions 0.00 (0.15) (0.13) (0.43)
Total Distributions (0.15) (0.21) (0.48) (0.74) (0.27) (0.10)
---------- ---------- ----------- ---------- ---------- ----------
Net asset value, end of period $ 26.91 $ 24.99 $ 24.18 $ 18.28 $ 17.87 $ 15.79
---------- ---------- ----------- ---------- ---------- ----------
Total return* 17.27% 4.25% 35.47% 6.84% 15.01% 10.70%
---------- ---------- ----------- ---------- ---------- ----------
Ratios, supplemental data:
Net assets, end of period (thousands) $ 8,845 $ 8,182 $ 6,388 $ 3,642 $ 2,549 $ 2,068
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income to
average net assets 0.37% 0.37% 1.54% 1.89% 1.45% 1.18%
Portfolio turnover rate 67.57% 5.47% 5.11% 6.19% 32.02% 4.52%
Average commission paid $ 0.065 $ 0.092 $ 0.064 $ 0.086
<FN>
*Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
01/31/99 07/31/98 07/31/97 07/31/96 07/31/95 07/31/94
--------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value beginning of period $ 14.27 $ 14.43 13.62 $ 13.57 $ 13.38 $ 14.74
Income from investment operations:
Net investment income 0.38 0.80 0.79 0.78 0.80 0.77
Net realized and unrealized gains on securities (0.25) (0.18) 0.78 0.01 0.18 (1.63)
------- ---------- -------- ---------- --------- --------
Total from investment operations 0.13 0.62 1.57 0.79 0.98 (0.86)
Less distributions:
Dividends from net investment income (0.39) (0.78) (0.76) (0.74) (0.79) (0.50)
Capital gains distributions
Total Distributions (0.39) (0.78) (0.76) (0.74) (0.79) (0.50)
------- ---------- -------- ---------- --------- --------
Net asset value, end of period $ 14.01 $ 14.27 $ 14.43 $ 13.62 $ 13.57 $ 13.38
------- ---------- -------- ---------- --------- --------
Total return* 1.81% 4.30% 12.05% 5.84% 7.61% -6.20%
------- ---------- -------- ---------- --------- --------
Ratios, supplemental data:
Net assets, end of period (thousands) $ 4,772 $ 4,672 $ 4,025 $ 2,319 $ 1,477 $ 1,079
Ratio of expenses to average net assets 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 2.69% 5.50% 5.63% 5.65% 6.03% 5.57%
Portfolio turnover rate 2.08% 9.91% 0.97% 22.34% 18.01% 22.67%
Average commission paid $ 0.065 $ 0.065 $ 0.055 $ 0.082
<FN>
*Annualized
</FN>
</TABLE>
See accompanying notes to financial statements
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
-------------------------------
Analysts Investment Trust (AIT) is registered under the Investment Advisor Act
of 1940, as amended, as a no-load, diversified, open end management investment
company. AIT was established as an Ohio Business Trust under a Declaration of
Trust dated May 28, 1993. The Declaration of Trust, as amended, permits the
Trustees to issue an unlimited number of shares of the Analysts Stock Fund (ASF)
and the Analysts Fixed Income Fund (AFI) (The Funds). The following is a summary
of the significant accounting policies of AIT:
SECURITIES VALUATION: Equity securities, options and commodities listed on
exchanges or on the NASDAQ are valued at the last sale price as of the close of
business on the day the securities are being valued. Lacking a last sale price,
a security is generally valued at its last bid price, except when, in Equity
Analysts Inc.'s (The Advisor) opinion, the last bid price does not accurately
reflect the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their bid
price. When market quotations are not readily available, when the Advisor
determines the last bid price does not accurately reflect the current value, or
when restricted securities are being valued, such securities are valued as
determined in good faith by the Advisor, subject to review of the Trust's Board
of Trustees. Fixed income securities (including mortgage related and asset
backed and receivable backed securities) may be valued on the basis of prices
furnished by a pricing service when the Advisor believes such prices accurately
reflect the fair market value of such securities. A pricing service utilizes
electronic data processing techniques to determine prices for normal
institutional-size trading units of debt securities without regard to sale or
bid prices. When prices are not readily available from a pricing service, or
when restricted or illiquid securities are being valued, securities are valued
at fair value as determined in good faith by the Advisor, subject to review by
the Trust's Board of Trustees. Short term investments in fixed income securities
with maturities of less than 60 days when acquired, or which subsequently are
within 60 days of maturity, are valued by using the amortized cost method of
valuation. Repurchase agreements are valued at cost which approximates market.
It is the policy of the Funds that their custodian take possession of the
underlying collateral securities. Collateral is marked to market daily to ensure
that the market value of the underlying assets equals or exceeds the value of
the seller's repurchase obligation. In the event of a bankruptcy or another
default of the seller of a repurchase agreement, a Fund could experience both
delays in liquidating the underlying securities and losses. The loss would equal
the amount by which the carrying value of the repurchase agreement(s) exceeded
the proceeds received in liquidation of the underlying collateral securities. To
minimize the possibility of loss, the Funds enter into repurchase agreements
only with institutions deemed to be creditworthy by the Advisor, including banks
that serve as custodian for the Funds, banks having assets in excess of $1
billion of primary government securities dealers.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES (continued)
-------------------------------
OPTIONS ACCOUNTING PRINCIPLES: When a put or call option is written, an amount
equal to the premium received is recorded as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option written at which time an
unrealized gain or loss is recognized. The current market value of a traded
option contract is the last sale price or, in the absence of a last sale price,
the mean between the last bid and ask price, or in the absence of either of
these two prices, fair value as determined in good faith by the Board of
Trustees. When a written option contract expires or is terminated (closing
purchase transaction), a realized gain (or realized loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) is recorded without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is extinguished.
When an option is exercised by the holder, a gain or loss from the underlying
security is realized and the proceeds from such a sale are increased by the
premium originally received. When a put or call option is written, the Fund must
maintain a margin account with its custodian or the broker with a maintenance
margin determined on a daily basis as the value of the underlying security,
commodity or currency fluctuates.
SHARE VALUATION: The net asset value per share is calculated daily by dividing
the total value of each Fund's investments and other assets, less liabilities,
by the total number of shares outstanding.
INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS: Interest income is accrued
as earned. Dividend income is recorded on the ex-dividend date. Distributions to
shareholders arising from net investment income are declared and it is the
intention that such distributions be paid quarterly. Net realized capital gains,
if any, are distributed to shareholders at least once per year.
SECURITY TRANSACTIONS: Security transactions are accounted for on a trade date
basis, which is the date the order to buy or sell is executed. Securities sold
are valued on a specific identification basis.
USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires the Advisor to make estimates
and assumptions that affect the amounts reported in these financial statements
and accompanying notes. The Advisor believes that the estimates utilized in
preparing these financial statements are reasonable and prudent. Actual results
could differ from these estimates.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES (continued)
-------------------------------
FEDERAL INCOME TAXES: It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies,
and distributes at least 90% of its taxable net income, the Fund (but not its
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes is made. In order to avoid imposition
of the excise tax created by the Tax Reform Act of 1986 as amended by the
Revenue Act of 1987, it is each Fund's intention to declare as dividends in each
calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its realized capital gains (earned during the twelve
months ended October 31 of the calendar year) plus undistributed amounts from
prior years.
(2) INVESTMENT TRANSACTIONS
-----------------------
Investment transactions are as follows for the six months ended January 31,
1999:
<TABLE>
<CAPTION>
ANALYSTS STOCK FUND ANALYSTS FIXED INCOME FUND
--------------------------------------------------------
<S> <C> <C>
Purchase of investment securities $ 5,554,531 $ 100,000
Proceeds from sales and maturities
of investment securities 5,467,560 127,820
</TABLE>
The table above includes U.S. Government Securities purchased and sold by
Analysts Fixed Income Fund amounting to $0 and $0, respectively. There were no
purchases or sales of U.S. Government Securities by the Analysts Stock Fund
during the year.
(3) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
------------------------------------------------
The President and Treasurer, and the Vice President and Secretary of the Trust
are shareholders and employees of the Advisor, registered investment advisor to
the Trust. In addition, each of these individuals are shareholders of the Funds.
AIT's investments are managed by the Advisor under the terms of a Management
Agreement. Under the Management Agreement, the Advisor pays all of the expenses
of the Funds except brokerage, taxes, interest and extraordinary expenses. As
compensation for investment advisory services and agreement to pay the above
Fund expenses, each Fund pays the Advisor a fee computed and accrued daily and
paid monthly. The fee for ASF is computed at an annual average rate of 2% of
average daily net assets of ASF up to and including $20 million, 1.75% of such
assets from $20 million up to and including $40 million, 1.5% of such assets
from $40 million up to and including $100 million, and .75% of such assets above
$100 million. The fee for AFI is computed at an annual rate of 1.5% of average
daily net assets of AFI up to and including $20 million, 1.25% of such assets
from $20 million up to and including $40 million, 1% of such assets from $40
million up to and including $100 million and .75% of such assets above $100
million.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(4) FUND SHARE TRANSACTIONS
-----------------------
Proceeds and payments on shares of the Funds as shown in the Statement of
Changes in Net Assets are the result of the following share transactions:
<TABLE>
<CAPTION>
ANALYSTS STOCK FUND ANALYSTS FIXED INCOME FUND
------------------------------------------------------
<S> <C> <C>
Shares sold 47,088 61,520
Shares issued in reinvestment of
distributions 1,974 8,481
------------------------------------------
Totals 49,062 70,001
Less shares redeemed 47,702 56,804
-----------------------------------------
Net increase in shares outstanding 1,360 13,197
Shares at beginning of year 327,361 327,418
---------------------------------------
Shares at end of period 328,721 340,615
========================================
</TABLE>
(5) FINANCIAL INSTRUMENT DISCLOSURE
-------------------------------
There are no reportable Financial instruments which have any off-balance sheet
risk in either of the Funds as of January 31, 1999.
(6) SECURITY TRANSACTIONS
---------------------
For Federal income tax purposes, the cost of investments owned at January 31,
1998 was the same as identified cost. At January 31, 1999, the composition of
unrealized appreciation (the excess of value over tax cost) and depreciation
(the excess of tax cost over value) was as follows:
<TABLE>
<CAPTION>
APPRECIATION DEPRECIATION NET
------------------------------------------------------
<S> <C> <C> <C>
Stock Fund $ 1,219,647 $ (102,288) $ 1,117,359
Fixed Income Fund 207,002 (225,822) (18,820)
</TABLE>
<PAGE>
TRUSTEES AND OFFICERS
David Lee Manzler Jr. President, Treasurer & Trustee
David L. Manzler Sr. Vice President, Secretary & Trustee
Walter E. Bowles, III Trustee
Robert W. Buechner Trustee
David J. Orth Trustee
Anthony J. Schement Trustee
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR
Equity Analysts Inc.
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
CUSTODIAN
Star Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
AUDITORS
Berge & Company
20 West 9th Street
Cincinnati, OH 45202
- --------------------------------------------------------------------------------
Equity Analysts Inc.
Registered Investment Advisors
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
513-792-5400
513-984-2411
