EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISORS
ANALYSTS INVESTMENT TRUST
ANNUAL REPORT
July 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
----
Independent auditors report 1
Message from the Fund President/Portfolio Manager 2
Performance Summary 4
Statements of Assets and Liabilities 7
Analysts Stock Fund Schedule of Investments in Securities 8
Analysts Fixed Income Fund Schedule of Investments in Securities 10
Analysts internet.fund Schedule of Investments in Securities 13
Statements of Operations 15
Statements of Changes in Net Assets 16
Financial Highlights 17
Notes to Financial Statements 20
Trustees and Officers 25
<PAGE>
INDEPENDENT AUDITORS REPORT
---------------------------
To the Shareholders and
Board of Trustees
Analysts Investment Trust
We have audited the accompanying statements of assets and liabilities of the
Analysts Investment Trust (comprising, respectively, the Stock Fund, the Fixed
Income Fund, and the internet.fund), including the schedules of investments in
securities as of July 31, 2000, the related statements of operations for the
year then ended, the statements of changes in net assets of the Stock Fund and
the Fixed Income Fund for each of the two years in the period then ended and the
internet.fund for the year then ended and the period from inception (May 4,
1999) through July 31, 1999, and the financial highlights of the Stock Fund and
the Fixed Income Fund for each of the five years in the period then ended and
the internet.fund for the year then ended and the period from inception (May 4,
1999) through July 31, 1999. These financial statements and financial highlights
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 2000, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting the Analysts Investment Trust as of
July 31, 2000, the results of operations of each fund for the year then ended,
the changes in net assets of the Stock Fund and the Fixed Income Fund for each
of the two years in the period then ended and the internet.fund for the year
then ended and the period from inception (May 4, 1999) through July 31, 1999,
and the financial highlights of the Stock Fund and the Fixed Income Fund for
each of the five years in the period then ended and the internet.fund for the
year then ended and the period from inception (May 4, 1999) through July 31,
1999, in conformity with generally accepted accounting principles.
Berge & Company LTD
Cincinnati, Ohio
September 1, 2000
<PAGE>
MESSAGE FROM THE FUND PRESIDENT/PORTFOLIO MANAGER
-------------------------------------------------
ECONOMIC OUTLOOK
----------------
The United States economy has been expanding for almost ten years now. The last
12 months has been very strong with durable goods produced up 10.1%, industrial
output up 5.7%, the latest gross domestic product up 5.3%, and consumer income
up 5.7%. Unemployment is at a very low 4.0% and inflation year over year is
running at a 3.5% rate. The Federal Reserve believes that the economy is
beginning to slow and did not raise interest rates at the latest FOMC meeting in
August. Still, interest rates are higher than a year ago with the Fed Funds at
6.5% verses 5.25% a year ago and the prime rate at 9.5% verses 8.25% a year ago.
Perhaps the most telling indicator of a slowing economy is the yield curve of
the treasury bonds, which is inverted. This means the shorter-term bonds have a
higher yield than the longer-term bonds indicating that the bond market believes
that the economy will slow and shorter rates will decline. A slowing economy
usually means slowing corporate profits, which can lead to a stock market
decline. This is because the market is priced for a certain growth of earnings
and when that estimate of earnings growth is reduced, the market price of the
stocks will be reduced. There are many other factors that affect the market
price of stocks including interest rates, uncertainty, and money supply. With
interest rates higher from a year ago, a hawkish Federal Reserve, and
uncertainty concerning a new government this November, these indicators also
point to a slower growing stock market. The federal government can reassure the
markets and reduce uncertainty if it continues to pay down the debt it owes and
continues to show fiscal discipline. This means minimal tax cuts and minimal
spending increases until the federal deficit is gone. This type of fiscal policy
then leaves the door open if the economy does go into a recession to use fiscal
policy to stimulate the economy, but at the same time not fighting the Fed who
is trying to slow the economy with monetary policy. This type of fiscal policy
from the federal government will keep interest rates low, reassure the stock
market, and keep the economy on a positive growth pattern.
ANALYSTS STOCK FUND
-------------------
The total return of the Stock Fund from August 1, 1999 through July 31, 2000 was
14.21%. This compares to an 8.22% 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 14.07% verses 11.47%
for the DJWG.
The Analysts Stock Fund's twelve-month return and since inception return are
higher than the DJWG's returns. This can be attributed to a slightly lower
allocation to foreign stocks in the Analysts Stock Fund and a more focused stock
selection. The technology stocks were the best performing stocks in the Analysts
Stock Fund portfolio. Three stocks, Oracle, Intel, and Dallas Semiconductor had
twelve-month returns of 295%, 86% and 66% respectively. Elan Pharmaceuticals and
WPP Group (advertising) also did well with trailing twelve-month returns of 93%
and 53% respectively. The Fund's focus on value and growth, diversification, and
the long term is responsible for these stock selections and the portfolio asset
allocation. The Analysts Stock maintains a blended portfolio of large
capitalization stocks, small and medium capitalization stocks, value stocks,
growth stocks, domestic stocks and foreign stocks. The Analysts Stock Fund will
also continue to diversify between the major sectors including basic industries,
capital goods, consumer, energy, financial, healthcare, technology,
transportation, and utilities. The Fund will focus more on value in the upcoming
twelve months because of the forecast in the economic outlook above. The value
style analyzes the fundamentals of stocks such as risk, financial statements,
return on assets, and the business environment. Instead of looking for
accelerating earnings as in the growth style, value attempts to put a price on
the company in relation to its cash flows. The value style focuses on the long
term worth of a company rather than short-term situations and often sectors that
are out of favor are the primary emphasis.
<PAGE>
ANALYSTS FIXED INCOME FUND
--------------------------
The total return of the Fixed Income Fund for the period August 1, 1999 through
July 31, 2000 was 2.32%. This compares to a 5.20% 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 3.40% verses 5.40% for the Lehman Intermediate
T-Bond Index.
The twelve-month period ending July 31, 2000 was initially characterized by
rising interest rates, and then starting in January, rates began to fall.
Long-term interest rates increased from 6.1% in July 1999 to 6.75% in January
2000. By July 2000 the 30-year Treasury bond rate had fallen to 5.78%. Prices of
bonds move inversely to interest rates and therefore the prices of bonds first
declined and then increased during this period. Corporate, CMO's, and foreign
bonds declined more than straight U.S. Treasury debt during the decline. Since
the recovery started in January of 2000, corporate, CMO's, and foreign bonds
have appreciated approximately the same as 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's portfolio is more closely correlated with the Dow Jones Bond Index, whose
total return was 2.18% during this twelve-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. The
Fund will focus specifically on undervalued closed end bond funds that trade
below their net asset value. This approach allows the Fund to purchase a basket
of bonds at a price below the aggregate market prices of the bonds. The most
recent purchases were the Hatteras Income Fund and the Pioneer Interest Shares
Fund. Each of these funds is an investment grade basket of bonds that trade at a
market price below the net asset values of the funds. The Analysts Fixed Income
Fund intends to use this approach while opportunities exist in the market to
purchase these securities at below net asset value prices.
ANALYSTS INTERNET.FUND
----------------------
The total return of the internet.fund from August 1, 1999 through July 31, 2000
was 24.99%. This compares to a 26.55% rate of return for the Dow Jones Internet
Composite Index (DJIC) for the same period. Since inception of the Analysts
internet.fund (May 4, 1999), the average annual return of the Analysts
internet.fund was 23.07% verses 3.52% for the DJIC Index.
Although the DJIC is 47% off its high set in March of 2000, it is 26% above the
low set in May of 2000. Many dot.com stocks are 70-80% off their highs including
Priceline.com off 75%, Amazon.com off 65%, and Ebay off 50%. The Analysts
internet.fund avoided many of these losses by selecting mostly non-dot.com
stocks that related to the Internet and focusing on value. Portfolio holdings
such as Oracle, Nortel Networks, Sun Microsystems, and Verio are up 295%, 238%,
204%, and 54% respectively. The Fund is focusing on the value of companies
verses their present and future cash flows as well as their business and ability
to exploit the Internet. 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 sector
diversification and focused stock selection has given the internet.fund lower
volatility and a higher rate of return than 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, 2000
<PAGE>
ANALYSTS STOCK FUND
GROWTH OF A $10,000 INVESTMENT
Average Annual Total Return
For the Period Ending 06/30/00
1 Year: 14.43% 5 Year: 15.60%
Since inception (8/25/93): 14.44%
Average Annual Total Return
For the Period Ending 07/31/00
1 Year: 14.21% 5 Years: 14.53%
Since Inception (8/25/93): 14.06%
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.
DATE ANALYSTS STOCK DJ INDEX DATE ANALYSTS STOCK DJ INDEX
---- -------------- -------- ---- -------------- --------
Aug-93 0.0649 0.021 Aug-93 1.0649 1.021
Sep-93 0.0138 -0.0228 Sep-93 1.079596 0.997721
Oct-93 0.0364 0.0222 Oct-93 1.118893 1.019871
Nov-93 -0.0329 -0.0627 Nov-93 1.082081 0.955925
Dec-93 0.0484 0.0442 Dec-93 1.134454 0.998177
Jan-94 0.0432 0.0678 Jan-94 1.183462 1.065853
Feb-94 -0.022 -0.0157 Feb-94 1.157426 1.049119
Mar-94 -0.0521 -0.0426 Mar-94 1.097124 1.004427
Apr-94 0.0047 0.0274 Apr-94 1.102281 1.031948
May-94 -0.0057 -0.0001 May-94 1.095998 1.031845
Jun-94 -0.0327 -0.0019 Jun-94 1.060159 1.029884
Jul-94 0.0366 0.0165 Jul-94 1.098961 1.046877
Aug-94 0.033 0.0215 Aug-94 1.135226 1.069385
Sep-94 -0.0075 -0.0177 Sep-94 1.126712 1.050457
Oct-94 0.009 0.0197 Oct-94 1.136852 1.071151
Nov-94 -0.0374 -0.0492 Nov-94 1.094334 1.01845
Dec-94 0.0035 0.0054 Dec-94 1.098164 1.02395
Jan-95 -0.001 -0.0222 Jan-95 1.097066 1.001218
Feb-95 0.0173 0.0106 Feb-95 1.116045 1.011831
Mar-95 0.0259 0.0454 Mar-95 1.144951 1.057768
Apr-95 0.0224 0.0336 Apr-95 1.170598 1.093309
May-95 0.0272 0.0074 May-95 1.202438 1.1014
Jun-95 0.0158 -0.0029 Jun-95 1.221437 1.098206
Jul-95 0.035 0.0458 Jul-95 1.264187 1.148504
Aug-95 0.0006 -0.0187 Aug-95 1.264945 1.127027
Sep-95 0.0189 0.0203 Sep-95 1.288853 1.149905
Oct-95 -0.0284 -0.015 Oct-95 1.25225 1.132657
Nov-95 0.0301 0.0302 Nov-95 1.289942 1.166863
Dec-95 0.0203 0.0278 Dec-95 1.316128 1.199302
Jan-96 0.0156 0.0185 Jan-96 1.33666 1.221489
Feb-96 0.0082 0.0021 Feb-96 1.34762 1.224054
Mar-96 0.0074 0.0132 Mar-96 1.357593 1.240211
Apr-96 0.0214 0.0243 Apr-96 1.386645 1.270349
May-96 0.0116 -0.0014 May-96 1.40273 1.26857
Jun-96 -0.0032 0.0011 Jun-96 1.398242 1.269966
Jul-96 -0.034 -0.0404 Jul-96 1.350701 1.218659
Aug-96 0.0204 0.0108 Aug-96 1.378256 1.23182
Sep-96 0.0256 0.039 Sep-96 1.413539 1.279861
Oct-96 0.0102 0.0013 Oct-96 1.427957 1.281525
Nov-96 0.0549 0.0532 Nov-96 1.506352 1.349702
Dec-96 0.0008 -0.0174 Dec-96 1.507557 1.326218
Jan-97 0.0337 0.0073 Jan-97 1.558362 1.335899
Feb-97 0.017 0.0106 Feb-97 1.584854 1.35006
Mar-97 -0.0139 -0.0234 Mar-97 1.562824 1.318468
Apr-97 0.0224 0.0272 Apr-97 1.597832 1.35433
May-97 0.0517 0.0634 May-97 1.680439 1.440195
Jun-97 0.0313 0.0454 Jun-97 1.733037 1.50558
Jul-97 0.056 0.0457 Jul-97 1.830087 1.574385
Aug-97 -0.04 -0.0606 Aug-97 1.756884 1.478977
Sep-97 0.0502 0.0524 Sep-97 1.845079 1.556476
Oct-97 -0.0532 -0.0594 Oct-97 1.746921 1.464021
Nov-97 0.01 0.014 Nov-97 1.76439 1.484517
Dec-97 0.0203 0.0088 Dec-97 1.800208 1.497581
Jan-98 0.01 0.0202 Jan-98 1.81821 1.527832
Feb-98 0.0449 0.0685 Feb-98 1.899847 1.632489
Mar-98 0.0509 0.0402 Mar-98 1.996549 1.698115
Apr-98 0.0018 0.0071 Apr-98 2.000143 1.710171
May-98 -0.0219 -0.0054 May-98 1.95634 1.700936
Jun-98 0.0015 0.0163 Jun-98 1.959275 1.728662
Jul-98 -0.026 -0.0044 Jul-98 1.908333 1.721055
Aug-98 -0.1291 -0.1396 Aug-98 1.661968 1.480796
Sep-98 0.042 0.0201 Sep-98 1.73177 1.51056
Oct-98 0.0692 0.0928 Oct-98 1.851609 1.65074
Nov-98 0.0515 0.0553 Nov-98 1.946967 1.742026
Dec-98 0.0525 0.0463 Dec-98 2.049182 1.822682
Jan-99 0.0085 0.0192 Jan-99 2.0666 1.857677
Feb-99 -0.0124 -0.0297 Feb-99 2.040975 1.802504
Mar-99 0.005 0.0396 Mar-99 2.051179 1.873883
Apr-99 0.0502 0.0447 Apr-99 2.154149 1.957646
May-99 -0.022 -0.037 May-99 2.106757 1.885213
Jun-99 0.0463 0.049 Jun-99 2.2043 1.977589
Jul-99 -0.0101 -0.0077 Jul-99 2.182037 1.962361
Aug-99 -0.013 0.0009 Aug-99 2.15367 1.964127
Sep-99 -0.0141 -0.0122 Sep-99 2.123304 1.940165
Oct-99 0.0197 0.0473 Oct-99 2.165133 2.031935
Nov-99 0.0247 0.0354 Nov-99 2.218611 2.103865
Dec-99 0.0907 0.0781 Dec-99 2.419839 2.268177
Jan-00 -0.048 -0.0575 Jan-00 2.303687 2.137757
Feb-00 0.0786 0.0119 Feb-00 2.484757 2.163196
Mar-00 0.0539 0.0587 Mar-00 2.618685 2.290176
Apr-00 -0.0198 -0.0485 Apr-00 2.566835 2.179102
May-00 -0.0495 -0.0285 May-00 2.439777 2.116998
Jun-00 0.0338 0.0308 Jun-00 2.522242 2.182201
Jul-00 -0.012 -0.0269 Jul-00 2.491975 2.1235
August 25, 1993 through July 31, 2000
<PAGE>
ANALYSTS FIXED INCOME FUND
GROWTH OF A $10,000 INVESTMENT
Average Annual Total Return
For the Period Ended 06/30/2000
1 Year: -0.53% 5 Year: 4.05%
Since Inception (8/25/93): 3.19%
Average Annual Total Return
For the Period Ended 07/31/2000
1 Year: 2.32% 5 Year: 4.45%
Since Inception (8/25/93): 3.39%
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 les than their original cost
DATE FIXED INCOME T-BOND DATE FIXED INCOME T-BOND
---- ------------ ------ ---- ------------ ------
Aug-93 -0.0115 0.0034 Aug-93 0.9885 1.0034
Sep-93 -0.0034 0.0043 Sep-93 0.985139 1.007715
Oct-93 -0.0001 0.0014 Oct-93 0.985041 1.009125
Nov-93 -0.0162 -0.0049 Nov-93 0.969083 1.004181
Dec-93 0.0008 0.0044 Dec-93 0.969858 1.008599
Jan-94 0.0221 0.0099 Jan-94 0.991292 1.018584
Feb-94 -0.0127 -0.0129 Feb-94 0.978703 1.005444
Mar-94 -0.034 -0.0142 Mar-94 0.945427 0.991167
Apr-94 -0.0005 -0.0068 Apr-94 0.944954 0.984427
May-94 -0.0019 0.001 May-94 0.943159 0.985412
Jun-94 -0.0183 0.0006 Jun-94 0.925899 0.986003
Jul-94 0.0177 0.0125 Jul-94 0.942287 0.998328
Aug-94 -0.0027 0.0029 Aug-94 0.939743 1.001223
Sep-94 -0.0184 -0.0085 Sep-94 0.922452 0.992713
Oct-94 -0.0155 0.0007 Oct-94 0.908154 0.993408
Nov-94 -0.0076 -0.0048 Nov-94 0.901252 0.988639
Dec-94 0.0076 -0.0004 Dec-94 0.908101 0.988244
Jan-95 0.0233 0.0168 Jan-95 0.92926 1.004846
Feb-95 0.0273 0.0195 Feb-95 0.954629 1.024441
Mar-95 0.0029 0.0051 Mar-95 0.957397 1.029665
Apr-95 0.014 0.0117 Apr-95 0.970801 1.041713
May-95 0.0443 0.0282 May-95 1.013807 1.071089
Jun-95 0.0029 0.0067 Jun-95 1.016747 1.078265
Jul-95 -0.0027 0 Jul-95 1.014002 1.078265
Aug-95 0.0099 0.008 Aug-95 1.024041 1.086891
Sep-95 0.0103 0.0065 Sep-95 1.034588 1.093956
Oct-95 0.0096 0.0113 Oct-95 1.04452 1.106318
Nov-95 0.0115 0.0123 Nov-95 1.056532 1.119925
Dec-95 0.0152 0.0102 Dec-95 1.072592 1.131349
Jan-96 0.0121 0.0088 Jan-96 1.08557 1.141305
Feb-96 -0.0171 -0.0114 Feb-96 1.067007 1.128294
Mar-96 -0.0036 -0.0048 Mar-96 1.063166 1.122878
Apr-96 -0.0057 -0.0031 Apr-96 1.057106 1.119397
May-96 0.0027 -0.0004 May-96 1.05996 1.118949
Jun-96 0.0082 0.0107 Jun-96 1.068651 1.130922
Jul-96 0.0041 0.003 Jul-96 1.073033 1.134315
Aug-96 0.0024 0.0004 Aug-96 1.075608 1.134768
Sep-96 0.0147 0.0129 Sep-96 1.09142 1.149407
Oct-96 0.0195 0.0164 Oct-96 1.112702 1.168257
Nov-96 0.0214 0.0121 Nov-96 1.136514 1.182393
Dec-96 0.0018 -0.0051 Dec-96 1.13856 1.176363
Jan-97 0.0001 0.0033 Jan-97 1.138674 1.180245
Feb-97 0.0084 0.0012 Feb-97 1.148239 1.181661
Mar-97 -0.017 -0.0055 Mar-97 1.128719 1.175162
Apr-97 0.01 0.0111 Apr-97 1.140006 1.188206
May-97 0.0119 0.0077 May-97 1.153572 1.197356
Jun-97 0.0131 0.0086 Jun-97 1.168684 1.207653
Jul-97 0.0287 0.0187 Jul-97 1.202225 1.230236
Aug-97 -0.0109 -0.0041 Aug-97 1.189121 1.225192
Sep-97 0.0213 0.0111 Sep-97 1.214449 1.238792
Oct-97 -0.0008 0.0118 Oct-97 1.213477 1.253409
Nov-97 0.0113 0.0021 Nov-97 1.22719 1.256042
Dec-97 0.0131 0.0084 Dec-97 1.243266 1.266592
Jan-98 0.0145 0.0133 Jan-98 1.261293 1.283438
Feb-98 -0.0038 -0.0014 Feb-98 1.2565 1.281641
Mar-98 0.0005 0.0032 Mar-98 1.257128 1.285742
Apr-98 -0.0036 0.0047 Apr-98 1.252603 1.291785
May-98 0.0036 0.0068 May-98 1.257112 1.30057
Jun-98 0.0002 0.0068 Jun-98 1.257364 1.309413
Jul-98 -0.0028 0.004 Jul-98 1.253843 1.314651
Aug-98 -0.0255 0.0197 Aug-98 1.22187 1.34055
Sep-98 0.0391 0.0243 Sep-98 1.269645 1.373125
Oct-98 -0.0061 0.0021 Oct-98 1.2619 1.376009
Nov-98 0.0044 -0.004 Nov-98 1.267453 1.370505
Dec-98 -0.0042 0.0041 Dec-98 1.262129 1.376124
Jan-99 0.0024 0.0038 Jan-99 1.265158 1.381353
Feb-99 -0.0218 -0.0144 Feb-99 1.237578 1.361461
Mar-99 0.0043 0.0069 Mar-99 1.2429 1.370855
Apr-99 0.0147 0.003 Apr-99 1.26117 1.374968
May-99 -0.0085 -0.0064 May-99 1.25045 1.366168
Jun-99 -0.0035 0.0016 Jun-99 1.246074 1.368354
Jul-99 -0.0115 0.0009 Jul-99 1.231744 1.369586
Aug-99 -0.0077 0.0022 Aug-99 1.222259 1.372599
Sep-99 -0.003 0.0079 Sep-99 1.218593 1.383442
Oct-99 -0.0016 0.001 Oct-99 1.216643 1.384826
Nov-99 -0.0225 0.0007 Nov-99 1.189268 1.385795
Dec-99 -0.0106 -0.0024 Dec-99 1.176662 1.382469
Jan-00 0.0088 -0.0026 Jan-00 1.187017 1.378875
Feb-00 0.0028 0.0071 Feb-00 1.19034 1.388665
Mar-00 0.0064 0.0125 Mar-00 1.197959 1.406023
Apr-00 0.0052 -0.0007 Apr-00 1.204188 1.405039
May-00 -0.0024 0.0042 May-00 1.201298 1.41094
Jun-00 0.0318 0.0145 Jun-00 1.239499 1.431399
Jul-00 0.0168 0.0066 Jul-00 1.260323 1.440846
August 25, 1993 through July 31, 2000
<PAGE>
ANALYSTS INTERNET FUND
GROWTH OF A $10,000 INVESTMENT
Average Annual Total Return
For the Period Ended 06/30/2000
1 Year: 22.01%
Since Inception (5/4/1999): 28.92%
Average Annual Total Return
For the Period Ended 07/31/2000
1 Year: 24.99%
Since Inception (5/4/1999): 22.96%
Past performance is not predictive of future results
DATE INTERNET DJI INDEX DATE INTERNET DJI INDEX
---- -------- --------- ---- -------- ---------
May-99 0.0266 -0.075 May-99 1.0266 0.925
Jun-99 0.0724 0.0491 Jun-99 1.100926 0.970418
Jul-99 -0.0597 -0.1506 Jul-99 1.035201 0.824273
Aug-99 -0.0056 0.0159 Aug-99 1.029403 0.837379
Sep-99 0.0405 0.1011 Sep-99 1.071094 0.922038
Oct-99 0.0281 0.0587 Oct-99 1.101192 0.976161
Nov-99 0.1514 0.2296 Nov-99 1.267913 1.200288
Dec-99 0.1244 0.3135 Dec-99 1.425641 1.576578
Jan-00 0.0135 -0.0585 Jan-00 1.444887 1.484348
Feb-00 0.1481 0.1806 Feb-00 1.658875 1.752421
Mar-00 -0.0414 -0.139 Mar-00 1.590197 1.508835
Apr-00 -0.0915 -0.22 Apr-00 1.444694 1.176891
May-00 -0.075 -0.1987 May-00 1.336342 0.943043
Jun-00 0.0052 0.199 Jun-00 1.343291 1.130708
Jul-00 -0.0367 -0.0768 Jul-00 1.293992 1.04387
May 4, 1999 through July 31, 2000
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
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 2000
STOCK FIXED INCOME
FUND FUND INTERNET.FUND
---- ---- -------------
ASSETS
<S> <C> <C> <C>
Unaffiliated Issue
Investment securities, at value $ 9,635,150 $ 3,864,768 $ 2,118,130
Dividends and interest receivable 10,393 38,345 3,313
Receivable for investment security sold 366
Cash 6,767 4,054 2,850
------------- ------------- -------------
Total Assets 9,652,310 3,907,533 2,124,293
LIABILITIES
Payable for investment security purchased 6,455
Management fee payable 16,769 4,930 5,569
------------ ------------- -------------
Total Liabilities 16,769 11,385 5,569
------------ ------------ -------------
NET ASSETS $ 9,635,541 $ 3,896,148 $ 2,118,724
========== ========== ==========
Net assets consist of:
Capital shares $ 7,045,451 $ 4,311,397 $ 2,034,450
Accumulated undistributed net investment
income (loss) (51,710) 18,209 (22,695)
Accumulated net realized gains (losses)
from securities transactions 588,390 (112,060) (23,521)
Net unrealized appreciation (depreciation)
on investments 2,053,410 (321,398) 130,490
---------- ----------- -----------
NET ASSETS $ 9,635,541 $ 48 $ 2,118,724
============= ============= =============
Net asset value, offering price, and
redemption price per share $ 26.15 $ 12.67 $ 12.32
============= ============= =============
Fund shares outstanding 368,513 307,608 171,933
============= ============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
COMMON STOCK: 90.0%
Large Capitalization U.S. Stocks: 35.1%
SHARES VALUE
------ -----
<C> <S> <C>
5,500 Abbott Laboratories $ 228,937
4,900 Banc One Corporation 155,881
7,300 Cincinnati Financial Corporation 275,575
6,600 Dell Computer Corporation * 289,987
3,000 Diamonds Trust 315,000
7,600 Intel Corporation 507,300
9,000 Kroger Co. * 186,187
10,000 Office Depot Inc. 62,500
8,700 Oracle Corporation * 654,131
3,000 Procter & Gamble Corporation 170,625
2,100 S&P 500 Depository Trust 302,269
5,395 SBC Communications Inc. 229,629
-----------
Total (Cost: $2,597,053) 3,378,018
Small/Medium Capitalization U.S. Stocks: 17.3%
8,200 Airborne Freight Corporation 126,588
12,800 Dallas Semiconductor Corporation 536,000
18,000 Pomeroy Computer Resources Inc. 306,000
3,600 S&P 400 Deposit Receipt 324,000
25,000 Shoe Carnival Inc. 156,250
9,500 Speedway Motorsports Inc. * 218,500
-----------
Total (Cost: $1,461,632) 1,667,338
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
Foreign Stocks: 34.4%
SHARES VALUE
------ -----
<C> <S> <C>
8,200 Cadbury Schweppes PLC $ 210,638
2,500 DaimlerChrysler Corporation 131,719
10,000 Elan Corporation 531,875
5,800 Royal Dutch 337,850
3,200 TDK Corporation ADR 406,400
7,500 Vodafone Group PLC ADR 323,437
9,800 WEBS-Italy 245,000
26,000 WEBS-Japan 351,000
13,000 WEBS-United Kingdom 249,437
7,600 WPP Group PLC ADR 524,400
-----------
Total (Cost: $2,301,973) 3,311,756
Natural Resources Stocks: 3.3%
9,800 First Industrial Realty Trust Inc. (Cost: $256,644) 313,600
-------
Total Common Stock (Cost: $6,617,302) 8,670,712
Money Market Mutual Fund: 10.0%
964,438 Firstar Stellar Treasury Fund (Cost: $964,438) 964,438
-----------
Total Investment Securities at Value (Cost: $7,581,740) 100.0% 9,635,150
All Other Assets less Liabilities 0.0% 391
------------
Net Assets 100% $ 9,635,541
============
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
Common Stock: 34.1%
Real Estate Investment Trusts: 8.4%
SHARES VALUE
------ -----
<C> <S> <C>
1,400 Carramerica Realty Corporation $ 41,825
3,580 Commercial Net Lease Realty Inc. 38,709
3,200 First Industrial Realty Trust Inc. 102,400
1,599 Health Care Properties Investors Inc. 47,570
1,500 Hospitality Properties Trust 37,125
2,350 HRPT Properties Trust 15,422
235 Senior Housing Properties Trust 1,983
1,650 Simon Property Group Inc. 43,106
------------
Total (Cost: $330,655) 328,140
Closed End Mutual Funds: 25.7%
10,900 Dresner RCM Global Strategic Income 70,169
15,000 Dreyfus Strategic Government Income Inc. 137,812
11,700 Duff & Phelps Utilities and Corporate Bond Trust 133,819
4,900 Hatteras Income Securities Inc. 63,700
9,000 Pioneer Interest Shares 99,562
19,800 Putnam Premier Income Trust 126,225
6,294 Scudder Global High Income Fund Inc. 32,257
9,200 Templeton Emerging Markets Income 96,025
20,000 Templeton Global Government Income Trust 118,750
20,000 Templeton Global Income Fund Inc. 123,750
-----------
Total (Cost: $1,256,214) 1,002,069
----------
Total Common Stock (Cost: $1,586,869) 1,330,209
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
Preferred Stocks: 6.6%
SHARES VALUE
------ -----
2,000 Carolina Power & Light Company $ 49,750
2,000 Citigroup Cap I PFD 49,500
2,000 Consolidated Edison PFD 46,875
2,000 UNUM Corporation MIDS 48,375
3,000 Vornado Realty Trust 63,000
------------
Total Preferred Stock (Cost: $274,813) 257,500
Corporate Bonds: 33.5%
Face
5,000 First Chicago Corporation 11.25%, 2/20/01 5,103
5,000 Bankamerica Corporation 8.375%, 3/15/02 5,075
100,000 Associates Corporation 6.375%, 7/15/02 98,380
100,000 Sony Corporation 6.125%, 3/4/03 97,740
100,000 Kentucky Power Company 6.65% 5/01/03 98,440
10,000 General Motors Corporation 8.875%, 5/15/03 10,362
10,000 Consolidated National Gas Company 5.75%, 8/01/03 9,552
50,000 New York Telephone Company 5.625%, 11/01/03 47,615
50,000 American Telephone & Telegraph Company 6.75%, 4/1/04 49,230
50,000 Nationsbank Corporation 7.75%, 8/15/04 50,710
10,000 Southwestern Bell 5.75%, 9/1/04 9,470
100,000 Salomon Smith Barney 6.25%, 1/15/05 95,810
50,000 Pacific Bell Telephone Company 6.25%, 3/1/05 47,955
50,000 U.S. West Communications Inc. 6.125%, 11/15/05 46,875
150,000 Loews Corporation 6.75%, 12/15/06 143,700
100,000 Household Bank CD 7.20%, 4/12/07 100,470
100,000 Entergy Mississippi Corporation 6.45%, 4/1/08 92,150
100,000 GE Capital Corporation 8.65%, 5/15/09 108,880
30,000 Chemical Banking Corporation 7.5%, 5/15/10 28,836
50,000 Citicorp 7.0%, 12/15/10 47,075
50,000 J.P. Morgan 6.610% 12/15/10 45,750
10,000 Caterpillar Inc. 9.375%, 8/15/11 11,287
50,000 Aetna Services, Inc. 6.75%, 9/15/13 42,240
10,000 International Business Machines Corp. 8.375%, 11/1/19 11,029
------------
Total Corporate Bonds (Cost: $1,346,203) 1,303,734
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
U.S. Government Obligations: 2.6%
FACE VALUE
---- -----
100,000 United States Treasury Notes 6.5%, 10/15/06 $ 101,050
-----------
Total U.S. Government Obligations (Cost: $99,859) 101,050
Mortgage Backed Obligations: 7.7%
1,216 Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 1,242
1,551 FHLMC REMIC 1991 Trust 1177 Class 1, 6.95%, 1/15/21 1,547
13,168 FNMA REMIC Series 93-160L, 6.5%, 7/25/22 12,568
10,298 FNMA REMIC 1992 Trust G53 Class J, 7.0%, 9/25/22 10,049
12,000 FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 10,756
20,000 FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 16,652
20,000 FHLMC REMIC 1993 Trust 1497 Class Q, 7.0%, 4/15/23 18,622
20,000 FHLMC REMIC 1993 Trust 1602 Class BB, 6.1%, 4/15/23 18,128
12,000 FHLMC REMIC 1993 Trust 1503 Class H, 7.0%, 5/15/23 11,081
12,000 FNMA REMIC 1993 Trust 50 Class L, 7.0%, 5/25/23 11,423
4,000 FHLMC REMIC 1993 Trust G13 Class D, 6.75%, 6/25/23 3,770
75,000 First Plus Home Loan Owner Trust 1998-3, 7.42%,5/10/24 68,363
100,000 Empire Federal Home Loan Owner Trust 1998-2 9.03%, 6/25/24 85,770
30,000 Green Tree Financial Corp TST 1997-A, 7.87%, 3/15/28 29,280
------------
Total Mortgage Backed Obligations (Cost: $305,397) 299,251
Money Market Mutual Fund: 19.6%
573,024 Firstar Stellar Treasury Fund (Cost $573,024) 573,024
-----------
Total Investment Securities at Value (Cost: $4,186,165) 99.2% 3,864,768
All Other Assets less Liabilities 0.8% 31,380
------------
Net Assets 100% $ 3,896,148
==========
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
ANALYSTS INTERNET.FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
Common Stock: 70.0%
Large Capitalization U.S. Stocks: 44.1%
SHARES VALUE
------ -----
1,600 Amazon.com Inc.* $ 48,200
1,750 America Online, Inc. * 92,859
1,500 AT&T Corp. 46,406
400 Banc One Corporation 12,725
1,560 Citrix Systems Inc. * 23,790
540 Dell Computer Corporation * 23,726
480 Donaldson Lufkin and Jenrette Inc. 24,750
5,411 Earth, Inc. * 67,637
400 IBM Corp. 44,900
1,800 Kemet Corp. * 43,763
264 Lucent Technologies Inc. 11,550
1,120 Lycos, Inc. * 67,900
200 Microsoft Corporation * 13,963
1,350 Motorola 44,803
2,000 Oracle Corporation * 150,375
800 Qualcomm Inc. * 51,950
628 S1 Corp 15,975
800 Sun Microsystems Inc. * 84,350
640 Verio, Inc. * 34,840
2,690 Go.com* 28,918
------------
Total (Cost: $928,984) 933,380
Small/Medium Capitalization U.S. Stocks: 19.9%
2,660 Barnes & Noble Inc. * 53,865
770 Black Box Corporation * 34,843
2,400 Boundless Technologies * 13,650
3,600 Cabletron Systems Inc. * 94,050
1,000 Excalibur Technologies Corp. * 46,062
1,200 Innodata Corporation * 12,825
1,158 OpenTV Corp * 57,020
2,200 R.H. Donnelly Corp. 44,137
3,500 Vocaltec LTD * 64,531
------------
Total (Cost: $310,073) 420,983
<FN>
* Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
ANALYSTS INTERNET.FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
July 31, 2000
Foreign Stocks: 6.0%
SHARES VALUE
------ -----
<C> <S> <C>
1,120 Nortel Networks Corporation $ 83,300
3,510 Pacific Internet LTD * 44,753
------------
Total (Cost: $112,868) 128,053
-----------
Total Common Stock (Cost: $1,351,925) 1,482,416
Money Market Mutual Fund: 30%
635,714 Firstar Stellar Treasury Fund (Cost $635,714) 635,714
-----------
Total Investment Securities at Value (Cost: $1,987,639) 100% 2,118,130
All Other Assets less Liabilities 0.0% 594
--------------
Net Assets 100% $ 2,118,724
==========
<FN>
*Non-dividend paying investment.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 2000
FIXED INCOME
STOCK FUND FUND INTERNET.FUND
---------- ---- -------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Dividends $ 173,729 $ 165,326 $ 26,415
Interest 129,675
------------ --------- ----------
Total Investment Income 173,729 295,001 26,415
EXPENSES:
Management Fee 191,408 57,231 47,097
------------ --------- ----------
NET INVESTMENT INCOME (LOSS) (17,679) 237,770 (20,682)
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) from security
transactions 588,390 (112,060) (23,521)
Net change in net unrealized appreciation
(depreciation) on investments 670,579 (32,207) 144,817
------------ --------- ----------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS 1,258,969 (144,267) 121,296
------------ --------- ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,241,290 $ 93,503 $ 100,614
============ ========= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
Year ended July 31, 2000
and the period from
inception (May 4, 1999)
Years ended July 31, 2000 and 1999 through July 31, 1999
------------------------------------------------------------ --------------------------
Stock Fund Fixed Income Fund internet.Fund
---------------------------- ----------------- -------------
2000 1999 2000 1999 2000 1999
---- ---- ---- ---- ---- ----
FROM OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment (loss) income $ (17,679) $ 6,565 $ 237,770 $ 253,653 $ (20,682) $ (2,013)
Net realized gains (losses) from
security transactions 588,390 1,729,257 (112,060) 35,047 (23,521)
Net change in net unrealized appreciation
(depreciation) on investments 670,579 (562,916) (32,207) (354,879) 144,817 (14,326)
------------ ------------ ------------ ------------ ---------- ---------
Increase (decrease) in net assets from
operations 1,241,290 1,172,906 93,503 (66,179) 100,614 (16,339)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income 50,841 239,520 256,768
From capital gains 1,696,862 14,744
----------- ---------- ------------ --------- --------- ----------
Decrease in net assets from distributions
to shareholders 1,696,862 50,841 254,264 256,768
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 1,591,728 1,839,261 512,501 1,145,875 1,407,982 780,232
Net asset value of shares issued from
reinvestment of distributions to
shareholders 1,696,862 50,841 227,788 230,591
Payment for shares redeemed (2,168,145) (2,223,333) (549,959) (1,859,341) (141,853) (11,912)
----------- ------------ ----------- ----------- ---------- ---------
Increase (decrease) from fund share
transactions 1,120,445 (333,231) 190,330 (482,875) 1,266,129 768,320
----------- ------------ ----------- ------------ --------- --------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 664,873 788,834 29,569 (805,822) 1,366,743 751,981
NET ASSETS:
Beginning of period 8,970,668 8,181,834 3,866,579 4,672,401 751,981
----------- ----------- ---------- ------------ ---------- --------
End of period $ 9,635,541 $ 8,970,668 $ 3,896,148 $ 3,866,579 $2,118,724 $ 751,981
=========== =========== ========== =========== ========== ========
Accumulated undistributed net
investment (loss) income $ (51,710) $ (34,031) $ 18,209 $ 19,959 $ (22,695) $ (2,013)
============= =========== ============ =========== =========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - STOCK FUND
For a Share Outstanding Throughout the Years ended July 31, 2000, 1999, 1998,
1997, and 1996
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 (0.05) 0.02 0.09 0.32 0.34
Net realized and unrealized gains on securities 2.35 3.56 0.93 6.06 0.81
------- ------- ------- ------- -------
Total from investment operations 2.30 3.58 1.02 6.38 1.15
Less distributions:
Dividends from net investment income (0.16) (0.06) (0.35) (0.31)
Dividends from capital gains (4.56) (0.15) (0.13) (0.43)
------ --------- ------- ------- -------
Total distributions (4.56) (0.16) (0.21) (0.48) (0.74)
------ ------- ------- ------- -------
Net asset value, end of period $ 26.15 $ 28.41 $ 24.99 $ 24.18 $ 18.28
====== ====== ====== ====== ======
Total return 14.21% 14.36% 4.25% 35.47% 6.84%
====== ====== ======= ====== =======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 9,636 $ 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 (loss) income to average
net assets (0.19)% .08% .37% 1.54% 1.89%
Portfolio turnover rate 0.00% 89.30% 5.47% 5.11% 6.19%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - FIXED INCOME FUND
For a Share Outstanding Throughout the Years ended July 31, 2000, 1999, 1998,
1997, and 1996
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 0.78 0.78 0.80 0.79 0.78
Net realized and unrealized gains on securities (0.51) (1.03) (0.18) 0.78 0.01
-------- ------ ------- ------- -------
Total from investment operations 0.27 (0.25) 0.62 1.57 0.79
Less distributions:
Dividends from net investment income (0.79) (0.78) (0.78) (0.76) (0.74)
Dividends from capital gains (0.05)
-------- ------ ------- ------- --------
Total Distributions (0.84) (0.78) (0.78) (0.76) (0.74)
------- ------ ------- ------- -------
Net asset value, end of period $ 12.67 $ 13.24 $ 14.27 $ 14.43 $ 13.62
======= ====== ====== ======= =======
Total return 2.32% (1.77%) 4.30% 12.05% 5.84%
======= ====== ====== ======= =======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 3,896 $ 3,867 $ 4,672 $ 4,025 $ 2,319
Ratio of expenses to average net assets 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 6.24% 5.57% 5.50% 5.63% 5.65%
Portfolio turnover rate 11.30% 9.70% 9.91% 0.97% 22.34%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - INTERNET.FUND
For a Share Outstanding Throughout the Year ended July 31, 2000 and the Period
from Inception (May 4, 1999) through July 31, 1999
2000 1999
---- ----
<S> <C> <C>
Net asset value, beginning of period $ 9.86 $ 9.52
Income from investment operations:
Net investment loss (0.17) (0.04)
Net realized and unrealized gains on securities 2.63 0.38
------- -------
Total from investment operations 2.46 0.34
------- -------
Net asset value, end of period $ 12.32 $ 9.86
====== =======
Total return 24.99% 14.77% *
===== ======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 2,119 $ 752
Ratio of expenses to average net assets 3.00% 3.00%
Ratio of net investment loss to average net assets (1.32)% (1.68)%
Portfolio turnover rate 1.36% 0.00%
<FN>
*Annualized
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Analysts Investment Trust (Trust) is registered under the Investment
Company 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 Advisor, subject to review of 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.
<PAGE>
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.
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, Fixed Income Fund and
internet.fund for the year ended July 31, 2000 are as follows:
<TABLE>
<CAPTION>
Fixed
Stock Fund Income Fund internet.fund
---------- ----------- -------------
<S> <C> <C> <C>
Purchase of investment securities $ - $ 357,870 $ 789,122
Proceeds from sales and maturities
of investment securities 976,719 464,431 14,233
</TABLE>
The table above includes U.S. Government Securities of $203,687 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 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 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 Management Agreements.
Under the Management Agreements, 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:
<PAGE>
<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>
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 61,482 41,011 106,560
Shares issued from reinvestment
of distributions 76,163 18,290 -
Shares redeemed (84,863) (43,671) (10,899)
--------- ------- --------
Net increase 52,782 15,630 95,661
Shares at beginning of period 315,731 291,978 76,272
-------- -------- ---------
Shares at end of period 368,513 307,608 171,933
======== ======== ========
</TABLE>
5. SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at July
31, 2000 was the same as identified cost. At July 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 $ 2,779,559 $ (726,149) $ 2,053,410
Fixed Income Fund 49,750 (371,148) (321,398)
internet.fund 398,422 (267,932) (130,490)
</TABLE>
<PAGE>
TRUSTEES AND OFFICERS
David Lee Manzler Jr.
President, Treasurer & Trustee
Craig J. Hunt
Secretary
Walter E. Bowles, III
Trustee
Robert W. Buechner
Trustee
James Todd
Trustee
Chetan Demania
Trustee
--------------------------------------------------------------------------------
INVESTMENT ADVISOR
Equity Analysts Inc.
9200 Montgomery Road
Suite 13A
Cincinnati, OH 45242
513-792-5400
513-984-2411 (Fax)
CUSTODIAN
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
GENERAL COUNSEL
Brown, Cummins & Brown Co., L.P.A.
441 Vine Street
3500 Carew Tower
Cincinnati, OH 45202
AUDITORS
Berge & Company LTD
20 West 9th Street
Cincinnati, OH 45202
