EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISORS
ANALYSTS INVESTMENT TRUST
SEMI-ANNUAL REPORT
January 31, 2000
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS INTERNET.FUND
<PAGE>
ANALYSTS INVESTMENT TRUST
ANNUAL REPORT
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS INTERNET.FUND
CONTENTS
Page
----
Message from the Fund President/Portfolio Manager 1
Performance Summary 2
Statements of Assets and Liabilities 7
Analysts Stock Fund Schedule of Investments in Securities 8
Analysts Fixed Income Fund Schedule of Investments in Securities 9
Analysts Internet.Fund Schedule of Investments in Securities 11
Statements of Operations 12
Statements of Changes in Net Assets 13
Financial Highlights 14
Notes to Financial Statements 16
Trustees and Officers 19
<PAGE>
MESSAGE FROM THE FUND PRESIDENT/PORTFOLIO MANAGER
-------------------------------------------------
ECONOMIC OUTLOOK
- ----------------
The international economic crisis that started in Thailand in 1997 has now ended
and a world recovery is underway. Economists are predicting growth for Asia for
the upcoming year, which will increase demand for goods and services. Oil prices
have recovered in response to increasing demand and OPEC's production cuts. The
Fed has responded by tightening the Fed Funds rate by 100 basis points since
June 1999 and will likely tighten further in the first half of 2000. The U.S.
economy appears to be in good shape with low unemployment, steady growth, and
stable prices. The Fed is concerned about the tight labor markets and high
capacity utilization rates. If the economy grows too fast, shortages will
develop in the labor markets and production will not keep up with demand. This
could lead to an inflationary environment disrupting financial markets.
Long-term interest rates should remain in a range for the next 12 months between
5.75% and 6.75% as the economy slows in response to the Fed tightening. In this
stable interest rate and stable price environment stocks should do well although
not as well as we have seen in the past several years. Large capitalization
stocks are trading at record high levels relative to their earnings per share
while medium and small capitalization stocks are trading much lower relative to
their earnings per share. I believe the medium and small capitalization stocks
should outperform the large capitalization stocks over the next 12 months
causing the major indexes to show lower returns than the public has come to
expect. This is because large capitalization stocks dominate the major indexes.
Therefore my equity outlook is positive, especially for the foreign and
small/medium capitalization sectors. In this stable interest rate and stable
price environment fixed income investments should do well also. 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, whether through more spending or tax
cuts, the more likely we will have higher interest rates. If the government can
continue fiscal discipline and reduce the national debt, and the Fed can keep
prices stable, interest rates should stay stable for the next 12 months.
<PAGE>
ANALYSTS STOCK FUND
- -------------------
[GRAPH DEPICTED HERE]
The graph depicted here shows the comparison of a $10,000 investment between
the Analysts Stock Fund and the Dow Jones World Index for the period August 25,
1993 through January 31, 2000.
ANALYSTS DOW JONES
STOCK WORLD
DATE FUND INDEX
---- ---- -----
Aug-93 1.0649 1.021
Sep-93 1.079596 0.997721
Oct-93 1.118893 1.019871
Nov-93 1.082081 0.955925
Dec-93 1.134454 0.998177
Jan-94 1.183462 1.065853
Feb-94 1.157426 1.049119
Mar-94 1.097124 1.004427
Apr-94 1.102281 1.031948
May-94 1.095998 1.031845
Jun-94 1.060159 1.029884
Jul-94 1.098961 1.046877
Aug-94 1.135226 1.069385
Sep-94 1.126712 1.050457
Oct-94 1.136852 1.071151
Nov-94 1.094334 1.01845
Dec-94 1.098164 1.02395
Jan-95 1.097066 1.001218
Feb-95 1.116045 1.011831
Mar-95 1.144951 1.057768
Apr-95 1.170598 1.093309
May-95 1.202438 1.1014
Jun-95 1.221437 1.098206
Jul-95 1.264187 1.148504
Aug-95 1.264945 1.127027
Sep-95 1.288853 1.149905
Oct-95 1.25225 1.132657
Nov-95 1.289942 1.166863
Dec-95 1.316128 1.199302
Jan-96 1.33666 1.221489
Feb-96 1.34762 1.224054
Mar-96 1.357593 1.240211
Apr-96 1.386645 1.270349
May-96 1.40273 1.26857
Jun-96 1.398242 1.269966
Jul-96 1.350701 1.218659
Aug-96 1.378256 1.23182
Sep-96 1.413539 1.279861
Oct-96 1.427957 1.281525
Nov-96 1.506352 1.349702
Dec-96 1.507557 1.326218
Jan-97 1.558362 1.335899
Feb-97 1.584854 1.35006
Mar-97 1.562824 1.318468
Apr-97 1.597832 1.35433
May-97 1.680439 1.440195
Jun-97 1.733037 1.50558
Jul-97 1.830087 1.574385
Aug-97 1.756884 1.478977
Sep-97 1.845079 1.556476
Oct-97 1.746921 1.464021
Nov-97 1.76439 1.484517
Dec-97 1.800208 1.497581
Jan-98 1.81821 1.527832
Feb-98 1.899847 1.632489
Mar-98 1.996549 1.698115
Apr-98 2.000143 1.710171
May-98 1.95634 1.700936
Jun-98 1.959275 1.728662
Jul-98 1.908333 1.721055
Aug-98 1.661968 1.480796
Sep-98 1.73177 1.51056
Oct-98 1.851609 1.65074
Nov-98 1.946967 1.742026
Dec-98 2.049182 1.822682
Jan-99 2.0666 1.857677
Feb-99 2.040975 1.802504
Mar-99 2.051179 1.873883
Apr-99 2.154149 1.957646
May-99 2.106757 1.885213
Jun-99 2.2043 1.977589
Jul-99 2.182037 1.962361
Aug-99 2.15367 1.964127
Sep-99 2.123304 1.940165
Oct-99 2.165133 2.031935
Nov-99 2.218611 2.103865
Dec-99 2.419839 2.268177
Jan-00 2.303687 2.137757
2
<PAGE>
Average Annual Total Return
For the Period Ending 12/31/99
1 Year: 18.09% 5 Year: 17.11%
Since inception (8/25/93): 14.91%
Average Annual Total Return
For the Period Ending 1/31/00
1 Year: 11.47% 5 Years 15.99%
Since Inception (8/25/93): 13.83%
Past performance is not predictive of future results.
Return and principal value of an investment will fluctuate so that an investor's
share, when redeemed, may be worth more or less than their original cost.
This report covers the period August 1, 1999 through January 31, 2000. The total
return of the Stock Fund from August 1, 1999 through January 31, 2000 was 5.6%.
This compares to an 8.9% rate of return for the Dow Jones World-Global Index
(DJWG). Since inception of the Analysts Stock Fund (August 25, 1993), the
average annual total return of the Analysts Stock Fund is 13.8% verses 12.5% for
the DJWG.
The six-month return of the Analysts Stock Fund was slightly lower than the
DJWG. This is because the DJWG has a slightly higher allocation to foreign
stocks, which outperformed U.S. stocks, than the Stock Fund. During this period,
the Federal Reserve raised interest rates 50 basis points. Stocks rallied from
August 1999 through December 1999 with the S&P 500 hitting an all time high of
1469 on December 31. From January 1, 2000 through January 31, 2000 the S&P 500
decreased 5.1% to 1394. That is only 2.7% higher than the value on July 31,
1999. Long-term interest rates have been increasing since August 1999 taking the
30-year Treasury bond from 5.86% in October 1998 to 6.74% in January 2000. I
believe the rise in long-term rates is due primarily to the world economic
recovery and the Fed tightening money supply. The lower performance of the S&P
500 relative to the most recent periods is primarily because of the Fed
tightening. Generally higher interest rates lead to a weaker stock market
because of stock pricing models, decreased economic activity, and competition
from fixed income products. The Analysts Stock does not attempt to time interest
rates movements but instead minimize volatility by maintaining a blended
portfolio of large capitalization stocks, small and medium capitalization
stocks, value stocks, growth stocks, domestic stocks and foreign stocks. Equity
Analysts Inc.'s research shows that this allocation will result in the lowest
long-term volatility while maintaining returns commensurate with the Dow Jones
World-Global Index. The Analysts Stock Fund will also continue to diversify
between all major sectors including basic industries, capital goods, consumer,
energy, financial, healthcare, technology, transportation, and utilities. Our
research indicates that a steady allocation between these broad groups has
provided the highest risk adjusted returns.
3
<PAGE>
ANALYSTS FIXED INCOME FUND
- --------------------------
[GRAPH DEPICTED HERE]
The graph depicted here shows the comparison of a $10,000 investment between
the Analysts Fixed Income Fund and the Lehman Intermediate T-Bond Index for the
period August 25, 1993 through January 31, 2000.
ANALYSTS LEHMAN
FIXED INCOME INTERMEDIATE
DATE FUND T-BOND INDEX
---- ---- ------------
Aug-93 0.9885 1.0034
Sep-93 0.985139 1.007715
Oct-93 0.985041 1.009125
Nov-93 0.969083 1.004181
Dec-93 0.969858 1.008599
Jan-94 0.991292 1.018584
Feb-94 0.978703 1.005444
Mar-94 0.945427 0.991167
Apr-94 0.944954 0.984427
May-94 0.943159 0.985412
Jun-94 0.925899 0.986003
Jul-94 0.942287 0.998328
Aug-94 0.939743 1.001223
Sep-94 0.922452 0.992713
Oct-94 0.908154 0.993408
Nov-94 0.901252 0.988639
Dec-94 0.908101 0.988244
Jan-95 0.92926 1.004846
Feb-95 0.954629 1.024441
Mar-95 0.957397 1.029665
Apr-95 0.970801 1.041713
May-95 1.013807 1.071089
Jun-95 1.016747 1.078265
Jul-95 1.014002 1.078265
Aug-95 1.024041 1.086891
Sep-95 1.034588 1.093956
Oct-95 1.04452 1.106318
Nov-95 1.056532 1.119925
Dec-95 1.072592 1.131349
Jan-96 1.08557 1.141305
Feb-96 1.067007 1.128294
Mar-96 1.063166 1.122878
Apr-96 1.057106 1.119397
May-96 1.05996 1.118949
Jun-96 1.068651 1.130922
Jul-96 1.073033 1.134315
Aug-96 1.075608 1.134768
Sep-96 1.09142 1.149407
Oct-96 1.112702 1.168257
Nov-96 1.136514 1.182393
Dec-96 1.13856 1.176363
Jan-97 1.138674 1.180245
Feb-97 1.148239 1.181661
Mar-97 1.128719 1.175162
Apr-97 1.140006 1.188206
May-97 1.153572 1.197356
Jun-97 1.168684 1.207653
Jul-97 1.202225 1.230236
Aug-97 1.189121 1.225192
Sep-97 1.214449 1.238792
Oct-97 1.213477 1.253409
Nov-97 1.22719 1.256042
Dec-97 1.243266 1.266592
Jan-98 1.261293 1.283438
Feb-98 1.2565 1.281641
Mar-98 1.257128 1.285742
Apr-98 1.252603 1.291785
May-98 1.257112 1.30057
Jun-98 1.257364 1.309413
Jul-98 1.253843 1.314651
Aug-98 1.22187 1.34055
Sep-98 1.269645 1.373125
Oct-98 1.2619 1.376009
Nov-98 1.267453 1.370505
Dec-98 1.262129 1.376124
Jan-99 1.265158 1.381353
Feb-99 1.237578 1.361461
Mar-99 1.2429 1.370855
Apr-99 1.26117 1.374968
May-99 1.25045 1.366168
Jun-99 1.246074 1.368354
Jul-99 1.231744 1.369586
Aug-99 1.222259 1.372599
Sep-99 1.218593 1.383442
Oct-99 1.216643 1.384826
Nov-99 1.189268 1.385795
Dec-99 1.176662 1.382469
Jan-00 1.187017 1.378875
4
<PAGE>
Average Annual Total Return
For the Period Ending 12/31/1999
1 Year: -6.79% 5 Year: 5.32%
Since inception (8/25/93): 2.60%
Average Annual Total Return
For the Period Ending 1/31/2000
1 Year: -6.19% 5 Year: 5.02%
Since Inception (8/25/93): 2.70%
Past performance is not predictive of future results.
Return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
The total return of the Fixed Income Fund for the period August 1, 1998 through
January 31, 2000 was -3.6%. This compares to a 0.7% 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 2.7% verses 5.13% for the Lehman Intermediate
T-Bond Index.
The six-month period ending January 31, 2000 was characterized by rising
interest rates. Long-term interest rates have been increasing since August 1999
taking the 30-year Treasury bond from 5.86% in October 1998 to 6.74% in January
2000. Prices of bonds move inversely to interest rates and therefore the prices
of bonds have declined during this period. Corporate, CMO's, and foreign bonds
declined more than straight U.S. Treasury debt. Since the Analysts Fixed Income
Fund is a blend of Government Bonds, Corporate Bonds, Mortgage Backed
Securities, Preferred Stocks, Global Bond Funds and Real Estate Investment
Trusts, the Fund has underperformed the pure treasury index. The Fund compares
favorably to the Dow Jones Industrial Bond Index, which declined 4.5% during
this six-month period. The Analysts Fixed Income Fund will continue to remain
diversified between corporate debt, foreign debt, mortgage backed debt,
preferred stocks, REIT's, and treasury bonds.
5
<PAGE>
ANALYSTS INTERNET.FUND
- ----------------------
[GRAPH DEPICTED HERE]
The graph depicted here shows the comparison of a $10,000 investment between the
Analysts Internet Fund and the Dow Jones World Index for the period May 4, 1999
through January 31, 2000.
ANALYSTS DOW JONES
INTERNET WORLD
DATE FUND INDEX
---- ---- -----
May-99 1.0266 0.925
Jun-99 1.100926 0.970418
Jul-99 1.035201 0.824273
Aug-99 1.029403 0.837379
Sep-99 1.071094 0.922038
Oct-99 1.101192 0.976161
Nov-99 1.267913 1.200288
Dec-99 1.425641 1.576578
Jan-00 1.444887 1.484348
Average Annual Total Return
For the Period Ending 12/31/1999
Since Inception (5/4/1999): 70.71%
Average Annual Total Return
For the Period Ended 1/31/2000
1 Year: 44.49%
Since Inception (5/4/1999): 63.57%
Past performance is not predictive of future results.
Return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
This report covers the period August 1, 1999 through January 31, 2000. The total
return of the internet.fund from August 1, 1999 through January 31, 2000 was
39.6%. This compares to an 80.1% rate of return for the Dow Jones Internet
Composite Index (DJIC) for the same period. Since inception of the internet.fund
(May 4, 1999), the total return of the internet.fund is 44.5% verses 48.4% for
the DJIC.
The Internet stocks increased from August 1999 through December 1999, then
leveled off and moved sideways through the end of January 2000. Internet stocks
are characterized by extreme volatility and unusual fundamental valuation
measurements as compared to historical stock index measurements such as the S&P
500. This advance in Internet stock prices has occurred despite the Fed rate
hikes of 100 basis points. The Analysts internet.fund is invested in a broad
range of Internet stocks covering the Internet service providers, networkers,
portals, hardware manufacturers, software developers, content providers,
financial service providers, e-tailers, and entertainment companies. This
diversification and a blended approach of growth and value, large and small
capitalization, and foreign and domestic styles have given the internet.fund
lower volatility with approximately the same return as the DJIC since inception
of the fund.
Because of its narrow focus, the Fund's performance is closely tied to any
factors, which may affect Internet companies and, as a result, is more likely to
fluctuate than that of a fund, which is invested, in a broader range of
companies. The Fund is not a complete investment program.
Lee Manzler
President and Portfolio Manager
August 31, 1999
6
<PAGE>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 2000
<TABLE>
<CAPTION>
STOCK FIXED INCOME
FUND FUND INTERNET.FUND
---- ---- -------------
ASSETS
<S> <C> <C> <C>
Investment securities, at value $ 9,166,432 $ 3,757,444 $ 1,622,332
Dividends and interest receivable 7,214 38,648 2,006
Receivable for investment security sold -- 388 --
Cash 9,347 (5,548) 1,157
----------- ----------- -----------
Total Assets 9,182,993 3,790,932 1,625,495
LIABILITIES
Payable for investment security purchased -- -- --
Management fee payable 15,762 4,739 4,025
----------- ----------- -----------
Total Liabilities 15,762 4,739 4,025
----------- ----------- -----------
NET ASSETS $ 9,167,231 $ 3,786,193 $ 1,621,470
=========== =========== ===========
Net assets consist of:
Capital shares $ 7,326,633 $ 4,313,731 $ 1,277,224
Accumulated undistributed net investment
income (loss) (29,504) 17,473 (11,498)
Accumulated net realized gains (losses)
from securities transactions 6,367 (103,762) 35
Net unrealized appreciation (depreciation)
on investments 1,863,735 (441,247) 355,709
----------- ----------- -----------
NET ASSETS $ 9,167,231 $ 3,786,193 $ 1,621,470
=========== =========== ===========
Net asset value, offering price, and
redemption price per share $ 24.17 $ 12.31 $ 13.76
=========== =========== ===========
Fund shares outstanding 379,254 307,662 117,831
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 2000
Common stock: 93.6%
LARGE CAPITALIZATION U.S. STOCKS: 37.6%
<C> <S> <C>
SHARES VALUE
------ -----
5,500 Abbott Laboratories $ 179,437
4,900 Banc One Corporation 146,081
7,300 Cincinnati Financial Corporation 209,875
6,600 Dell Computer Corporation * 254,513
3,000 Diamonds Trust 328,125
3,800 Intel Corporation 375,963
9,000 Kroger Co. * 156,375
10,000 Office Depot Inc. 100,625
17,400 Oracle Corporation * 869,184
3,000 Proctor & Gamble Corporation 302,625
2,100 S&P 500 Depository Trust 292,950
5,395 SBC Communications Inc. 232,659
-------------
Total (Cost: $2,730,867) 3,448,412
SMALL/MEDIUM CAPITALIZATION U.S. STOCKS: 18.2%
8,200 Airborne Freight Corporation 158,875
6,400 Dallas Semiconductor 427,600
18,000 Pomeroy Computer Resources 292,500
3,600 S&P 400 Deposit Receipt 285,975
25,000 Shoe Carnival 202,345
9,500 Speedway Motorsports * 299,250
-------------
Total (Cost: $1,461,632) 1,666,545
FOREIGN STOCKS: 35.3%
8,200 Cadbury Schweppes PLC 191,675
2,500 DaimlerChrysler Corporation 164,531
10,000 Elan Corporation 300,625
5,800 Royal Dutch 319,363
3,200 TDK Corporation ADR 342,400
7,500 Vodafone Group PLC ADR 420,000
9,800 WEBS-Italy 229,075
26,000 WEBS-Japan 399,750
13,000 WEBS-United Kingdom 253,500
7,600 WPP Group PLC ADR 615,600
-------------
Total (Cost: $2,301,973) 3,236,519
NATURAL RESOURCES STOCKS: 2.9%
9,800 First Industrial Realty (Cost $256,644) $ 263,375
-------------
MONEY MARKET MUTUAL FUND: 6.0%
551,581 Firstar Stellar Treasury Fund 551,581
-------------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $7,303,496) 99.6% 9,166,432
ALL OTHER ASSETS LESS LIABILITIES 0.4% 799
-------------
NET ASSETS 100% $ 9,167,231
============
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 2000
Common Stock: 28.7%
Real Estate Investment Trusts: 7.6%
SHARES VALUE
------ -----
<C> <S> <C>
14,00 Carramerica Realty Corporation $ 30,363
3,580 Commercial Net Lease 36,471
3,200 First Industrial Realty 86,000
1,599 Health Care Properties 40,874
1,500 Hospitality Properties Trust 29,344
2,350 HRPT Properties 22,031
235 Senior HSG PPTYS 2,394
1,650 Simon PPTY Group, Inc. 40,734
-------------
Total (Cost: $330,655) 288,211
Closed End Mutual Funds: 21.1%
10,900 Dresner RCM GLB STR Income 65,400
15,000 Dreyfus Strategic Government Income 118,125
11,700 Duff & Phelps Bond Income 147,713
19,800 Putnam Premier Income Fund 118,800
6,294 Scudder Global High Income Fund 29,503
9,200 Templeton Emerging Markets Income Fund 87,975
20,000 Templeton Global Government Fund 113,750
20,000 Templeton Global Income Fund 118,750
-------------
Total (Cost: $1,092,820) 800,016
-------------
TOTAL COMMON STOCK (COST: $1,423,475) 1,088,227
PREFERRED STOCKS: 6.6%
2,000 Carolina Power & Light Company 48,000
2,000 Citigroup Cap I PFD 47,250
2,000 Consolidated Edison PFD 45,500
2,000 Unum Corporation MIDS 48,375
3,000 Vornado Realty Trust 59,063
-------------
TOTAL PREFERRED STOCK (COST: $274,813) 248,188
CORPORATE BONDS: 33.9%
FACE
----
50,000 DuPont E I De Nemours & Company 9.15%, 4/15/00 50,264
46,000 Household Financial 9.625%, 7/15/00 46,580
5,000 First Chicago Corporation 11.25%, 2/20/01 5,196
5,000 Bankamerica Corporation 8.375%, 3/15/02 5,094
100,000 Associates Corporation 6.375%, 7/15/02 97,664
100,000 Sony Corporation 6.125%, 3/4/03 96,696
See accompanying notes to financial statements.
9
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 2000
Corporate Bonds: 33.9% (continued)
FACE
----
100,000 Kentucky Power 6.65% 5/01/03 $ 97,609
10,000 General Motors Corporation 8.875%, 5/15/03 10,407
10,000 Consolidated National Gas Company 5.75%, 8/01/03 9,387
50,000 New York Telephone Company 5.625%, 11/01/03 46,859
50,000 American Telephone & Telegraph Company 6.75%, 4/1/04 48,813
50,000 Nationsbank Corporation 7.75%, 8/15/04 50,113
10,000 Southwestern Bell 5.75%, 9/1/04 9,287
100,000 Salomon Smith Barney 6.25%, 1/15/05 93,164
50,000 Pacific Bell Telephone Company 6.25%, 3/1/05 47,369
50,000 U.S. West Communications 6.125%, 11/15/05 46,546
150,000 Loews Corporation 6.75%, 12/15/06 140,046
100,000 Entergy Corporation 6.45%, 4/1/08 90,431
100,000 GE Capital Corporation 8.65%, 5/15/09 108,249
30,000 Chemical Banking Corporation 7.5%, 5/15/10 28,815
50,000 Citicorp 7.0%, 12/15/10 46,534
50,000 J.P. Morgan 6.610% 12/15/10 45,060
10,000 Caterpillar Inc. Del. 9.375%, 8/15/11 11,018
50,000 Aetna Life & Cas Company 6.75%, 9/15/13 43,052
10,000 International Business Machines 8.375%, 11/1/19 10,800
-------------
TOTAL CORPORATE BONDS (COST: $1,350,426) 1,285,053
U.S. GOVERNMENT OBLIGATIONS/CD: 2.6%
100,000 United States Treasury Notes 6.5%, 10/15/06 98,531
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS/CD (COST: $99,859) 98,531
MORTGAGE BACKED OBLIGATIONS: 7.8%
1,439 Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 1,468
2,591 FHLMC REMIC 1991 Trust 1177 Class 1, 6.95%, 1/15/21 2,587
13,168 FNMA REMIC Series 93-160L, 6.5%, 7/25/22 12,241
11,473 FNMA REMIC 1992 Trust G53 Class J, 7.0%, 9/25/22 11,157
12,000 FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 11,009
20,000 FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 16,377
20,000 FHLMC REMIC 1993 Trust 1497 Class Q, 7.0%, 4/15/23 18,194
20,000 FHLMC REMIC 1993 Trust 1602 Class BB, 6.1%, 4/15/23 17,754
12,000 FHLMC REMIC 1993 Trust 1503 Class H, 7.0%, 5/15/23 10,817
12,000 FNMA REMIC 1993 Trust 50 Class L, 7.0%, 5/25/23 11,210
4,000 FHLMC REMIC 1993 Trust G13 Class D, 6.75%, 6/25/23 3,746
75,000 First Plust Home Loan TST 1998-3, 7.42%,5/10/21 66,056
100,000 EFLOT 1998-2 9.03%, 6/25/24 83,910
30,000 Green Tree Home Improv Loan TST 1997-A, 7.87%, 3/15/28 28,620
-------------
TOTAL MORTGAGE BACKED OBLIGATIONS (COST: $307,910) 295,236
MONEY MARKET MUTUAL FUND: 19.6%
742,209 Firstar Stellar Treasury Fund 742,209
-------------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $4,198,691) 98.5% 3,757,444
ALL OTHER ASSETS LESS LIABILITIES 0.8% 28,749
-------------
NET ASSETS 100% $ 3,786,193
=============
See accompanying notes to financial statements.
10
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS INTERNET.FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
January 31, 2000
COMMON STOCK: 63.1%
Large Capitalization U.S. Stocks: 36.5%
SHARES VALUE
------ -----
400 Amazon.com * $ 25,825
800 America Online, Inc. * 45,550
138 At Home Corp* 4,975
500 AT&T 26,375
400 Banc One Corporation 11,925
430 Citrix Systems * 59,018
540 Dell Computer Corporation * 20,824
480 Donaldson Lufkin 22,950
200 IBM 22,437
264 Lucent Technologies 14,586
320 Lycos, Inc. * 23,500
200 Microsoft Corporation * 19,575
620 Mindspring * 16,430
2,000 Oracle Corporation * 99,906
628 S1 Corp 56,873
800 Sun Microsystems * 62,850
640 Verio, Inc. * 41,200
690 Walt Disney Go.com* 17,681
-------------
Total (Cost: $399,562) 592,480
Small/Medium Capitalization U.S. Stocks: 21.2%
1,350 Audio Highway * 11,390
660 Barnes & Noble * 13,282
470 Black Box Corporation * 27,788
2,400 Boundless Technologies * 29,700
1,600 Cabletron Systems * 41,100
490 Earthlink * 20,948
1,000 Excalibur Technologies * 22,375
1,900 Infonautics * 16,389
1200 Innodata Corporation * 11,925
1200 R.H. Donnelly 21,225
1,600 Spyglass * 56,600
2,500 Vocaltech Communications * 70,937
-------------
Total (Cost: $221,411) 343,659
Foreign Stocks: 5.3%
560 Nortel Networks 53,550
510 Pacific Internet * 32,895
-------------
Total (Cost: $45,903) 86,445
-------------
Total Common Stock (Cost: $666,876) 1,022,584
Money Market Mutual Fund: 37%
599,748 Firstar Stellar Treasury Fund 599,748
-------------
Total Investment Securities at Value (Cost: $1,266,623) 100.1% 1,622,332
All Other Assets less Liabilities (.1%) (862)
-------------
Net Assets 100% $ 1,621,470
=============
<FN>
*Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF OPERATIONS
Six Months ended January 31, 2000
(unaudited)
FIXED INCOME
STOCK FUND FUND INTERNET.FUND
---------- ---- -------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Dividends $ 96,051 $ 79,144 $ 6,860
Interest 66,873
Total Investment Income 96,051 146,017 6,860
EXPENSES:
Management Fee 91,524 28,637 16,344
---------- ---------- ---------
NET INVESTMENT INCOME (LOSS) 4,527 117,380 (9,484)
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains from security transactions 6,367 (103,762) 36
Net change in net unrealized appreciation
--------- ----------- ---------
(depreciation) on investments 480,904 (152,056) 370,034
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS 487,271 (255,818) 370,070
--------- ----------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 491,798 $ (138,438) $ 360,586
========= =========== =========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Six Months ended January 31, 2000
(unaudited)
STOCK FUND FIXED INCOME FUND INTERNET.FUND
---------- ----------------- -------------
1999 2000 1999 2000 1999 2000
---- ---- ---- ---- ---- ----
FROM OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ 6,565 $ 4,527 $ 253,653 $ 117,380 $ (2,013) $ (9,484)
Net realized gains (losses) from
security transactions 1,729,257 6,367 35,047 (103,762) -- 36
Net change in net unrealized appreciation
(depreciation) on investments (562,916) 480,904 (354,879) (152,056) (14,326) 370,070
----------- ----------- ----------- ----------- --------- -----------
Increase (decrease) in net assets from
operations 1,172,906 491,798 (66,179) (138,438) (16,339) 360,586
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income 50,841 -- 256,768 119,867 -- --
From capital gains -- 1,696,863 -- 14,744 -- --
----------- ----------- ----------- ----------- --------- -----------
Decrease in net assets from distributions
to shareholders 50,841 1,696,863 256,768 134,611 -- --
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 1,839,261 671,236 1,145,875 293,234 780,232 557,712
Net asset value of shares issued from
reinvestment of distributions to
shareholders 50,841 1,696,862 230,591 121,015 -- --
Payment for shares redeemed (2,223,333) (966,470) (1,859,341) (221,586) (11,912) (48,809)
----------- ----------- ----------- ----------- --------- -----------
(Decrease) increase from fund share
transactions (333,231) 1,401,628 (482,875) 192,663 768,320 508,903
----------- ----------- ----------- ----------- --------- -----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 788,834 196,563 (805,822) (80,386) 751,981 869,489
NET ASSETS:
Beginning of period 8,181,834 8,970,668 4,672,401 3,866,579 -- 751,981
----------- ----------- ----------- ----------- --------- -----------
End of period $ 8,970,668 $ 9,167,231 $ 3,866,579 $ 3,786,193 $ 751,981 $ 1,621,470
=========== =========== =========== =========== ========= ===========
Accumulated undistributed net
investment income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
=========== =========== =========== =========== ========= ===========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - STOCK FUND
For a Share Outstanding Throughout the Years ended July 31, 1999, 1998, 1997,
and 1996 and for the six months ended January 31, 2000
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.41 $ 24.99 $ 24.18 $ 18.28 $ 17.87
Income from investment operations:
Net investment income .01 .02 .09 .32 .34
Net realized and unrealized gains on securities .43 3.56 .93 6.06 .81
Total from investment operations .44 3.58 1.02 6.38 1.15
Less distributions:
Dividends from net investment income .00 (.16) (.06) (.35) (.31)
Dividends from capital gains (4.68) -- (.15) (.13) (.43)
--------- --------- --------- --------- ---------
Total distributions (4.68) (.16) (.21) (.48) (.74)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 24.17 $ 28.41 $ 24.99 $ 24.18 $ 18.28
============ ============ ============ ============ ============
Total return 5.58% 14.36% 4.25% 35.47% 6.84%
==== ===== ==== ===== ====
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 9,167 $ 8,971 $ 8,182 $ 6,388 $ 3,642
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income to average net assets .00 .08% .37% 1.54% 1.89%
Portfolio turnover rate 0.00% 89.30% 5.47% 5.11% 6.19%
</TABLE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - FIXED INCOME FUND
For a Share Outstanding Throughout the Years ended July 31, 1999, 1998, 1997,
and 1996 and the six months ended January 31, 2000
2000 1999 1998 1997 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.24 $ 14.27 $ 14.43 $ 13.62 $ 13.57
Income from investment operations:
Net investment income .40 .78 .80 .79 .78
Net realized and unrealized gains on securities (.93) (1.03) (.18) .78 .01
------- --------- --------- --------- ---------
Total from investment operations 2.14 (.25) .62 1.57 .79
Less distributions from net investment income (.40) (.78) (.78) (.76) (.74)
Net asset value, end of period $ 12.31 $ 13.24 $ 14.27 $ 14.43 $ 13.62
======= ========= ========= ========= =========
Total return (3.63%) (1.77%) 4.30% 12.05% 5.84%
======= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 3,786 $ 3,867 $ 4,672 $ 4,025 $ 2,319
Ratio of expenses to average net assets 1.5% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 3.12% 5.57% 5.50% 5.63% 5.65%
Portfolio turnover rate 2.63% 9.70% 9.91% 0.97% 22.34%
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - INTERNET.FUND
For a Share Outstanding Through the Period from Inception (May 4, 1999) through
July 31, 1999 And for the six months ended January 31, 2000
2000 1999
---- ----
<S> <C> <C>
Net asset value, beginning of period $ 9.86 $ 9.52
Income from investment operations:
Net investment loss (.10) (.04)
Net realized and unrealized gains on securities 4.00 .38
------- ------
Total from investment operations 4.10 .34
------- ------
Net asset value, end of period $ 13.76 $ 9.86
======= ======
Total return 34.69% 14.77%*
======= ======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 1,621 $ 752
Ratio of expenses to average net assets 3.00% 3.00%
Ratio of net investment loss to average net assets .01% (1.68)%
Portfolio turnover rate 0.00% 0.00%
<FN>
*Annualized
</FN>
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Analysts Investment Trust (Trust) is registered under the Investment
Advisers Act of 1940, as amended, as a no-load, diversified, open end
management investment company. The Trust 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 (Stock Fund),
Analysts Fixed Income Fund (Fixed Income Fund), and the Analysts
internet.fund (internet.fund) (The Funds). The Stock Fund's investment
objective is to provide long term capital appreciation. The Fixed Income
Fund's investment objective is to provide a high level of income over
the long term consistent with preservation of capital. The
internet.fund's objective is to provide long term growth through capital
appreciation. The following is a summary of the significant accounting
policies of the Trust:
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
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 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 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 fair value. 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 fair 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 the bank that serves as
custodian for the Funds.
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 fair 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 Funds 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 investment
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.
16
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (CONTINUED)
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.
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 in the Stock Fund and the Fixed Income Fund for
the year ended January 31, 2000 and in the internet.fund for the period
from inception (May 4, 1999) through January 31, 2000, are as follows:
<TABLE>
<CAPTION>
FIXED
STOCK FUND INCOME FUND INTERNET.FUND
---------- ----------- -------------
<S> <C> <C> <C>
Purchase of investment securities $ 7,035,088 $ 399,230 $ 600,553
Proceeds from sales and maturities
of investment securities 6,433,364 898,681 -
</TABLE>
The table above includes U.S. Government Securities of $731,125 sold by
the Fixed Income Fund. There were no sales of U.S. Government Securities
by either the Stock Fund or the internet.fund during the year. There
were no purchases of U.S. Government Securities by any of the funds in
fiscal 1999.
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 Equity Analysts, Inc.,
registered investment advisor to the Trust. In addition, each of these
individuals is a shareholder of the Funds. Each Fund'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 the Advisor's
agreement to pay the above Fund expenses, each Fund pays the Advisor a
fee, computed and accrued daily, based upon the following rates:
<TABLE>
<CAPTION>
FIXED
AVERAGE DAILY ASSETS STOCK FUND INCOME FUND INTERNET.FUND
-------------------- ---------- ----------- -------------
<S> <C> <C> <C>
Up to and including $20 million 2.00% 1.50% 3.00%
From $20 million to $40 million 1.75% 1.25% 2.75%
From $40 million to $100 million 1.50% 1.00% 2.50%
Above $100 million .75% .75% 2.25%
</TABLE>
17
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
4. FUND SHARE TRANSACTIONS
Proceeds and payments on shares of the Funds as shown in the Statements of
Changes in Net Assets are the result of the following share transactions:
<TABLE>
<CAPTION>
FIXED INTERNET.
STOCK FUND INCOME FUND FUND
---------- ----------- ----
<S> <C> <C> <C>
Shares sold 26,591 23,267 45,826
Shares issued from reinvestment
of distributions 76,164 9,640 -
Shares redeemed (39,232) (17,223) (4,267)
------- ------- ------
Net (decrease) increase 63,523 15,684 41,559
Shares at beginning of period 315,731 291,978 76,272
------- ------- ------
Shares at end of period 379,254 307,662 117,831
======= ======= =======
</TABLE>
5. SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at
January 31, 2000 was the same as identified cost. At January 31, 2000,
the composition of unrealized appreciation (the excess of value over tax
cost) and depreciation (the excess of tax cost over value) by Fund was
as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Stock Fund $ 1,575,765 $ (192,934) $ 1,382,831
Fixed Income Fund 48,778 (337,969) (289,191)
internet.fund 31,901 (46,227) (14,326)
</TABLE>
18
<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
Anthony J. Schement
Trustee
James Todd
Trustee
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR
Equity Analysts Inc.
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
513-792-5400
513-984-2411 (Fax)
CUSTODIAN
Star Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
GENERAL COUNSEL
Brown, Cummins & Brown Co. LPA
441 Vine Street
3500 Carew Tower
Cincinnati, OH 45202
AUDITORS
Berge & Company LTD
20 West 9th Street
Cincinnati, OH 45202
