<PAGE>
Timothy Plan Family of Funds 1999 Annual Report - page 2
THE TIMOTHY PLAN
1304 West Fairbanks Avenue
Winter Park, FL 32789
BOARD OF TRUSTEES
Arthur D. Ally
Joseph E. Boatwright
W. Thomas Fyler, Jr.
Wesley W. Pennington
Jock M. Sneddon
OFFICERS
Arthur D. Ally, President
Joseph E. Boatwright, Secretary
Wesley W. Pennington, Treasurer
INVESTMENT ADVISOR
Timothy Partners, LTD.
1304 West Fairbanks Avenue
Winter Park, FL 32789
DISTRIBUTOR
Timothy Partners, LTD.
1304 West Fairbanks Avenue
Winter Park, FL 32789
TRANSFER AGENT
Unified Fund Services, Inc.
431 N Pennsylvania Street
Indianapolis, IN 46204
AUDITORS
Tait, Weller & Baker
Eight Penn Center Plaza, Suite 800
Philadelphia, PA 19103
LEGAL COUNSEL
The Law Offices of David D. Jones, P.C.
Suite 180, Box 303
The Woodlands, TX 77381
For additional information or a prospectus, please call: 1-800-846-7526
Visit the Timothy Plan web site on the internet at:
WWW.TIMOTHYPLAN.COM
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective Prospectus which includes details
regarding the Fund's objectives, policies, expenses and other information.
Distributed by Timothy Partners, Ltd.
Family of Funds
SEMI-ANNUAL REPORT
JUNE 30, 2000 (UNAUDITED)
<PAGE>
REPORT TO SHAREHOLDERS
June 30, 2000
ARTHUR D. ALLY
Dear Shareholder:
I am pleased to report that all four of our funds are performing very
well in this unsettled market environment. It certainly looks as if some
measure of sanity has finally returned to the stock market, a trend that
we believe chould be dominant for the foreseeable future.
As I have stated in the past, the key to good investment results is good
investment management and we feel blessed to have quality, top-tier firms
managing our various funds. Our plan is to continue to expand our family
of funds in order to give our shareholders a wide variety of investment
options but to only do so if we can secure the services of highly
respected successful money management firms.
While economics and investment returns are important, we are called to a
higher mission. My concern is that the moral decay represented by
abortion, pornography and the growing trend of non-married lifestyles
have been around so long that we might be getting used to it. The outrage
and brokenness over these issues that we previously felt seems to have
eroded into tolerance and acceptance.
Let me make one thing perfectly clear: our Lord commands us to love the
sinner (and we do) but to detest the sin (and we do.) As a result,
companies that see fit to support or fund practices that are leading to
the moral destruction of America will find that Timothy has a zero
tolerance for owning shares of their stock. Scripture admonishes us to
"come out from among them and be separate" and we intend to continue to
do just that.
Just as it appears that the market may be returning to some measure of
sanity, our prayer is that our culture will follow suit and avoid
collapsing into a moral abyss. I believe we truly are in a war for the
soul of America. Thank you for partnering with us in this endeavor.
Sincerely,
ARTHUR D. ALLY
President
<PAGE>
Timothy Plan Small-Cap Value Fund (June 30, 2000
Semi-Annual Report) - page 11
THE TIMOTHY PLAN
small-cap value fund
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
COMMON STOCKS - 79.15%
-----------------------------------------------------------------------------------------------------------
NUMBER OF SHARES MARKET VALUE
-----------------------------------------------------------------------------------------------------------
BANKS - 3.08%
40,000 Capital Crossing Bank *......................................... $ 410,000
35,000 North Fork Bancorp.............................................. 540,312
-------
950,312
BROADCASTING - 2.03%
15,000 American Tower Corp, Class A *.................................. 625,313
-------
COMMERCIAL SERVICES - 7.07%
69,500 Health Mgmt. Systems Inc. * .................................... 217,187
20,000 Iron Mountain *................................................. 656,250
23,000 Nova Corp/Georgia *............................................. 642,563
7,000 StarTek, Inc. *................................................. 352,625
10,000 Teletech *...................................................... 310,625
-------
2,179,250
COMPONENTS - 1.61%
23,000 Kaydon Corp..................................................... 497,375
-------
COMPUTER SERVICES AND SOFTWARE - 5.79%
15,000 Affiliated Computer Services, Inc., Class A *................... 495,937
35,000 New Horizons Worldwide, Inc. *.................................. 813,204
15,500 The Descartes Systems Group, Inc. *............................. 476,625
-------
1,785,766
COMPUTER HARDWARE - 4.37%
10,000 Kronos, Inc. *.................................................. 260,000
40,000 Maxtor Corp. *.................................................. 422,500
60,000 Quantum Corp-Hard Disk Drive Group *............................ 663,750
-------
1,346,250
COMPUTER SYSTEMS - 2.01%
7,000 Silicon Storage *............................................... 618,188
-------
CONSULTING SERVICES - 1.13%
7,000 BARRA, Inc. *................................................... 346,937
-------
DIVERSIFIED SERVICES - 5.81%
10,000 F.Y.I., Inc. *.................................................. 336,875
30,000 Korn & Ferry International *.................................... 952,500
45,000 Ventiv Health, Inc. *........................................... 500,625
-------
1,790,000
ELECTRONIC EQUIPMENT - 3.50%
25,000 C-Cube Microsystems *........................................... 490,625
13,000 Research in Motion *............................................ 588,250
-------
1,078,875
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
COMMON STOCKS - 79.15% (CONT.)
-----------------------------------------------------------------------------------------------------------
NUMBER OF SHARES MARKET VALUE
-----------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 8.63%
58,900 Doral Financial Corp ........................................... $ 673,669
50,000 Investor's Financial Services Corp.............................. 1,984,375
---------
2,658,044
FOOD & BEVERAGE - 1.56%
18,000 Corn Products Intl.............................................. 480,375
-------
INSURANCE - 3.11%
25,000 Annuity and Life Reinsurance (HLDGS) Ltd........................ 612,500
25,000 Presidential Life Corp.......................................... 346,875
-------
959,375
INTERNET SERVICES - .73%
54,000 Audible, Inc. *................................................. 224,440
-------
INVESTMENT SERVICES - 3.45%
25,000 Investment Technology Group..................................... 1,064,063
---------
MACHINERY, GENERAL INDUSTRIAL - 2.01%
14,000 Astec Industries, Inc.*......................................... 355,250
6,000 Zebra Tech Class A*............................................. 265,875
-------
621,125
MANUFACTURING, WIRE & CABLE - 1.23%
10,000 CommScope, Inc.*................................................ 380,000
-------
MATERIALS & CONSTRUCTION - 2.10%
16,000 Martin Marietta Materials, Inc.................................. 648,000
-------
MEDIA - 1.65%
42,500 Avid Technology, Inc.*.......................................... 510,000
-------
PRINTING - .78%
18,300 Printronix, Inc.*............................................... 240,187
-------
PUBLISHING - 8.66%
15,500 Houghton Mifflin Co............................................. 723,656
27,400 Penton Media, Inc. ............................................. 955,575
44,000 Wiley (John) & Sons, Inc. Class A............................... 990,000
-------
2,669,231
RETAIL STORES - 1.09%
60,000 Bradlees Inc. *................................................. 337,500
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
COMMON STOCKS - 79.15% (CONT.)
-----------------------------------------------------------------------------------------------------------
NUMBER OF SHARES MARKET VALUE
-----------------------------------------------------------------------------------------------------------
SEMI CONDUCTORS - 3.54%
16,500 LTX Corp. *..................................................... $ 576,469
35,000 S3 Incorporated *............................................... 516,250
-------
1,092,719
TELECOMMUNICATIONS - 4.21%
35,000 Alaska Communications Group, Inc. *............................. 363,125
35,000 Ancor Communications *.......................................... 715,312
8,798 Harmonic, Inc. *................................................ 219,950
-------
1,298,387
Total Common Stocks (COST $20,347,157).......................... $ 24,401,712
----------
WARRANTS - 0.00%
53 Morrison Knuesen................................................ 106
---
SHORT-TERM INVESTMENTS - 20.78%
6,406,094 Firstar Bank Treasury Fund (COST $6,406,094).................... 6,406,094
---------
TOTAL INVESTMENTS - 99.93% (IDENTIFIED COST $26,753,250)........ $ 30,807,912
----------
OTHER ASSETS AND LIABILITIES, NET - 0.07% ...................... 22,191
NET ASSETS - 100% .............................................. $ 30,830,103
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
For the Period Ended June 30, 2000 (Unaudited) and the Period Ended December 31, 1999(A)
ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investments in Securities at Market at Value (IDENTIFIED COST $26,753,250) [NOTE 1] $ 30,807,912
Cash......................................................................... 139,963
Receivables:
Interest................................................................... 29,540
Dividends.................................................................. 7,505
Fund Shares Sold........................................................... 277,769
Due from Advisor........................................................... 110,656
Investments Sold........................................................... 149,995
Other Assets............................................................... 139,805
-------
TOTAL ASSETS................................................................. $ 31,663,145
----------
LIABILITIES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Payable for Shares Purchased................................................. 409,719
Payable for Investments Purchase............................................. 368,646
Accrued Expenses............................................................. 28,535
Accrued Service Fee.......................................................... 1,660
Other Payable................................................................ 24,482
------
TOTAL LIABILITIES ........................................................... $ 833,042
-------
NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (UNLIMITED SHARES OF $0.001PAR BENEFICIAL INTEREST AUTHORIZED; 1,081,377 SHARES OUTSTANDING) 14,552,938
Net Asset Value and Redemption Price Per Class A Share ($14,552,938/1,081,377 SHARES) 13.46
Offering Price Per Share ($13.46 /0.945)................................... 14.24
Class B Shares:
Net Assets (UNLIMITED SHARES OF $0.001PAR BENEFICIAL INTEREST AUTHORIZED; 1,248,090 SHARES OUTSTANDING) 16,277,165
Net Asset Value and Offering Price Per Class B Share ($16,277,165/1,248,090 SHARES) 13.04
Redemption Price Per Share ($13.04 X 0.95)................................. 12.39
NET ASSETS .................................................................. $ 30,830,103
----------
SOURCES OF NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
At June 20, 2000, Net Assets Consisted of:
Paid-in Capital............................................................ 26,124,108
Net Accumulated Undistributed Investment Income............................ (138,960)
Net Accumulated Realized Gain on Investment................................ 790,293
Net Unrealized Appreciation in Value of Investments ....................... 4,054,662
---------
NET ASSETS .................................................................. $ 30,830,103
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
INVESTMENT INCOME
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Interest..................................................................... $ 50,068
Dividends.................................................................... 161,059
-------
TOTAL INVESTMENT INCOME...................................................... $ 211,127
-------
EXPENSES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]............................................ 127,263
Transfer Agent Fees (CLASS A=$11,438, CLASS B=$12,303, CLASS C=$189)......... 23,930
Administration Fees.......................................................... 4,246
12b-1 Fees (CLASS A=$17,891, CLASS B=$57,736, CLASS C=$881) [NOTE 3]......... 76,508
Accounting Fees.............................................................. 15,795
Registration Fees............................................................ 9,728
Custodian Fees............................................................... 4,377
Printing Expense............................................................. 9,728
Out of Pocket Expense........................................................ 29,183
Services Fees (CLASS B=$19,245, CLASS C=$294) [NOTE 3]...................... 19,539
Auditing Fees................................................................ 4,864
Insurance Expense............................................................ 5,763
Legal Expense................................................................ 12,840
Miscellaneous Expense........................................................ 6,323
-----
TOTAL EXPENSES............................................................... $ 350,087
-------
NET INVESTMENT LOSS.......................................................... $ (138,960)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments............................................. 4,136,596
Change in Unrealized Appreciation of Investments ............................ (1,324,974)
-----------
Net Realized and Unrealized Gain (Loss) on Investments.............................. 2,811,622
=========
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................ $ 2,672,662
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 2000 and Year Ended December 31, 1999
INCREASE (DECREASE) IN NET ASSETS
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 20 2000 DEC. 31, 1999
-----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Loss............................................. $ (138,960) $ (153,596)
Net Change in Unrealized Appreciation of Investments............ (1,324,974) 5,469,363
Net Realized Loss on Investments................................ 4,136,596 (2,321,822)
--------- -----------
Increase (Decrease) in Net Assets (RESULTING FROM OPERATIONS)... 2,672,662 2,993,945
--------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Capital Gains:
Class A....................................................... ----- -----
Class B....................................................... ----- -----
Class C....................................................... ----- -----
-----------------------
Total Net Decrease.............................................. ----- -----
-----------------------
CAPITAL SHARE TRANSACTION:
Proceeds from Shares Sold:
Class A....................................................... 1,523,066 3,121,258
Class B....................................................... 1,990,501 2,412,768
Class C....................................................... 208,478 157,951
Dividend Reinvested:
Class A ...................................................... ----- -----
Class B....................................................... ----- -----
Class C....................................................... ----- -----
Cost of Shares Redeemed:
Class A....................................................... (1,634,665) (4,460,818)
Class B....................................................... (1,420,132) (3,732,982)
Class C....................................................... (357,732) (45,938)
Increase (Decrease) in Net Assets
(RESULTING FROM CAPITAL SHARE TRANSACTIONS).................... $ 309,516 $ 2,547,761
-------- ---------
Total Increase in Net Assets.................................... $ 2,982,178 $ 446,184
========= =======
NET ASSETS:
Beginning of Year............................................... 27,847,925 27,401,741
End of Year $ 30,830,103 $ 27,847,925
(INCLUDING ACCUMULATED UNDISTRIBUTED NET INVESTMENT LOSS OF $138,96) ========== ==========
SHARES OF CAPITAL STOCK OF THE FUND SOLD AND REDEEMED:
Shares Sold:
Class A ...................................................... 114,264 293,144
Class B....................................................... 151,255 251,060
Class C....................................................... 19,040 16,311
Shares Reinvested:
Class A....................................................... ----- -----
Class B....................................................... ----- -----
Class C....................................................... ----- -----
Shares Redeemed:
Class A....................................................... (123,843) (421,383)
Class B....................................................... (111,077) (362,823)
Class C....................................................... (30,224) (5,127)
--------------------------
Net Increase (Decrease) in Number of Shares Outstanding......... 19,415 (228,818)
====== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
SMALL-CAP VALUE FUND - CLASS A SHARES
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
06/30/00 YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
(UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning.................... $ 12.26 $ 10.89 $ 12.25 $ 11.24 $ 10.07
Income from Investment Operations:
Net Investment Income....................... (0.04) (0.02) 0.01 0.02 0.10
Net Realized and Unrealized Gain (Loss) on Investments 1.24 1.39 (1.30) 2.37 1.17
----------------------------------------------------
Total from Investment Operations............ 1.20 1.37 (1.29) 2.39 1.27
-----------------------------------------------
Less Distributions:
Dividends from Realized Gains............... ----- ----- (0.07) (1.38) -----
Dividends from Net Investment Income........ ----- ----- ----- ----- (0.10)
----- ----- ----- ----- ------
Total Distribution.......................... ----- ----- (0.07) (1.38) (0.10)
----- ----- ------ ------ ------
Net Asset Value at End of Year................ $ 13.46 $ 12.26 $ 10.89 $ 12.25 $ 11.24
===== ===== ===== ===== =====
Total Return (A) (B).......................... 9.79% 12.58% (10.50%) 21.35% 12.59%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (IN 000S)........... $14,553 $13,377 $13,287 $ 11,208 $ 7,760
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor. 1.97%(C) 2.22% 2.09% 2.75% 3.70%
After Reimbursement of Expenses by Advisor.. 1.97%(C) 1.60% 1.60% 1.60% 1.60%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor. (0.56%)(C) (0.82%) (1.15%) (0.90%) (1.05%)
After Reimbursement of Expenses by Advisor.. (0.56%)(C) (0.20%) (0.66%) 0.25% 1.05%
Portfolio Turnover ........................... 96.62%(C) 78.79% 69.42% 136.36% 93.08%
</TABLE>
(A) Total Return Calculation Does Not Reflect Sales Load.
(B) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized.
(C) Annualized
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
SMALL-CAP VALUE FUND - CLASS B SHARES
-----------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning.................... $ 11.88 $ 10.70 $ 12.13 $ 11.22 $ 10.08
Income from Investment Operations:
Net Investment Income....................... (0.08) (0.11) (0.07) (0.03) 0.07
Net Realized and Unrealized 1.24 1.29 (1.29) 2.32 1.14
Gain (Loss) on Investments ---- ---- ------ ---- ----
Total from Investment Operations ........... 1.16 1.18 (1.36) 2.29 1.21
---- ---- ------ ---- ----
Less Distributions:
Dividends from Realized Gains............... ----- ----- (0.07) (1.38) -----
Dividend from Net Investment Income......... ----- ----- ----- ----- (0.07)
----- ----- ----- ----- ------
Total Distribution ......................... ----- ----- (0.07) (1.38) (0.07)
----- ----- ------ ------ ------
Net Asset Value at End of Period ............. $ 13.04 $11.88 $ 10.70 $ 12.13 $ 11.22
===== ===== ===== ===== =====
Total Return (A) (B).......................... 9.76% 11.03% (11.18%) 20.50% 11.98%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (IN 000S)........... $16,277 $14,351 $14,114 $ 11,389 $ 3,929
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor. 2.69%(C) 2.72% 2.84% 3.41% 4.30%
After Reimbursement of Expenses by Advisor.. 2.69%(C) 2.35% 2.35% 2.26% 2.20%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor. (1.28%)(C) (1.34%) (1.90%) (1.56%) 1.65%
After Reimbursement of Expenses by Advisor.. (1.28%)(C) (0.97%) (1.41%) (0.41%) 0.45%
Portfolio Turnover ........................... 96.62%(C) 78.79% 69.42% 136.36% 93.08%
</TABLE>
(A) Total Return Calculation Does Not Reflect Redemption Fee.
(B) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized.
(C) Annualized.
The accompanying notes are an integral part of these financial statements.
<PAGE>
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blank.]
<PAGE>
Timothy Plan Large/Mid-Cap Value Fund (June 30, 2000
Semi-Annual Report) - page 20
THE TIMOTHY PLAN
large/mid-cap value fund
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
COMMON STOCKS - 92.28%
-----------------------------------------------------------------------------------------------------------
NUMBER OF SHARES MARKET VALUE
-----------------------------------------------------------------------------------------------------------
AUTO PARTS & EQUIP - 8.30%
3,600 Arvin Industries, Inc. ......................................... $ 62,550
4,500 Delphi Automotive Systems Corp. ................................ 66,094
2,500 Genuine Parts Co................................................ 50,938
4,000 TRW Corp........................................................ 173,000
-------
352,582
BANKS - 4.97%
1,200 Centura Banks, Inc.............................................. 40,875
2,500 Keycorp......................................................... 45,469
3,000 National City Corp.............................................. 51,562
2,500 Washington Mutual Financial Services............................ 73,281
------
211,187
CHEMICALS - 10.91%
3,800 Air Products & Chemicals Inc.................................... 117,325
2,500 E I Du Pont De Nemours & Co..................................... 109,375
4,000 Hercules........................................................ 56,750
2,000 Praxair Inc..................................................... 75,000
3,000 Rohm & Haas Company............................................. 105,187
-------
463,637
COMPONENTS - 2.85%
3,500 Parker Hannifin Corporation..................................... 120,969
-------
CONTAINERS - 1.76%
5,000 Crown Cork & Seal Co Inc........................................ 74,688
------
COSMETIC & TOILETRIES - 3.38%
2,500 Kimberly Clark Corp............................................. 143,438
-------
DRUGS MANUFACTURING - 1.43%
800 Merck & Co...................................................... 60,700
------
ELECTRONIC EQUIPMENT - 6.21%
2,500 Emerson Electric Co............................................. 151,406
3,000 Vishay Intertechnology, Inc..................................... 112,500
-------
263,906
FOOD & BEVERAGE - 8.78%
1,800 Best Foods...................................................... 124,650
5,500 Conagra Inc..................................................... 104,844
2,000 Heinz (H.J.) Co. .............................................. 87,500
3,000 Universal Foods Corp............................................ 56,250
------
373,244
INSURANCE - 4.47%
2,000 American General Financial Group................................ 124,125
2,000 Everest Reinsurance Holdings Inc................................ 65,750
------
189,875
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
COMMON STOCKS - 92.28% (CONT.)
-----------------------------------------------------------------------------------------------------------
NUMBER OF SHARES MARKET VALUE
-----------------------------------------------------------------------------------------------------------
MACHINERY, GENERAL INDUSTRIAL - 6.70%
3,000 Ingersoll-Rand Company.......................................... $ 121,125
2,000 Kennametal Inc.................................................. 42,875
1,000 SPX Corp. ...................................................... 121,000
-------
285,000
MEDICAL PRODUCTS - 3.11%
3,000 Abbott Labs. ................................................... 132,375
-------
METALS & MINING - 2.30%
1,500 Rio Tinto Plc ADR............................................... 97,875
------
OIL AND GAS - 7.33%
2,500 Anadarko Petroleum ............................................. 123,906
5,000 Conoco Inc ..................................................... 110,938
1,500 Phillips Petroleum.............................................. 76,594
------
311,438
PIPELINES - 3.96%
3,300 El Paso Energy Corp............................................. 168,300
-------
SEMICONDUCTOR - 8.30%
3,000 Novellus Systems, Inc. ......................................... 169,687
2,500 Veeco Instruments............................................... 183,125
-------
352,812
RETAIL - 5.71%
4,000 Longs Drugs Stores Corp ........................................ 89,000
7,000 Kroger Co....................................................... 153,562
-------
242,562
TRANSPORTATION - 1.81%
3,300 CNF Energy Corp................................................. 76,931
------
Total Common Stocks (COST $3,861,162)........................... $ 3,921,519
---------
SHORT-TERM INVESTMENTS - 9.07%
385,691 Firstar Bank Treasury Fund (COST $385,691)...................... 385,691
-------
TOTAL INVESTMENTS - 101.35% (IDENTIFIED COST $4,246,853)........ $ 4,307,210
---------
LIABILITIES LESS OTHER ASSETS, NET - (1.35)% ................... (57,668)
--------
NET ASSETS - 100% .............................................. $ 4,249,542
=========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2000 (Unaudited)
ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investments, at Value (COST $4,246,853)...................................... $ 4,307,210
Receivables:
Interest................................................................... 919
Dividends.................................................................. 5,927
Fund Shares Sold........................................................... 208,168
Due from Advisor............................................................. 24,816
------
TOTAL ASSETS................................................................. $ 4,547,040
---------
LIABILITIES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Cash Overdraft............................................................... 77,746
Accrued Expenses............................................................. 16,159
Payables for Investments Purchased........................................... 156,242
Payable for Fund Shares Redeemed............................................. 41,441
Other Payable................................................................ 5,910
-----
TOTAL LIABILITIES............................................................ $ 297,498
-------
NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (UNLIMITED SHARES OF $0.001PAR BENEFICIAL INTEREST AUTHORIZED; 278,521 SHARES OUTSTANDING) 2,652,032
Net Asset Value and Redemption Price Per Class A Share ($2,652,032/278,521 SHARES) 9.52
Offering Price Per Share ($9.52 X 1.055)................................... 10.04
Class B Shares:
Net Assets (UNLIMITED SHARES OF $0.001PAR BENEFICIAL INTEREST AUTHORIZED; 170,644 SHARES OUTSTANDING) 1,597,510
Net Asset Value and Offering Price Per Class B Share ($1,597,510/170,644 SHARES) 9.36
Redemption Price Per Share ($9.36 X 0.95).................................. 8.89
NET ASSETS................................................................... $ 4,249,542
---------
SOURCES OF NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
At June 30, 2000 Net Assets Consisted of:
Paid-in Capital............................................................ 4,190,320
Net Unrealized Appreciation in Value of Investments........................ 60,357
Accumulated Undistributed Net Investment Income............................ 14,038
Accumulated Loss on Investments............................................ (15,173)
--------
NET ASSETS................................................................... $ 4,249,542
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
INVESTMENT INCOME
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Dividend..................................................................... $ 33,650
Interest .................................................................... 6,424
-----
TOTAL INVESTMENT INCOME...................................................... $ 40,074
------
EXPENSES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]............................................ 11,731
12b-1 Fees (CLASS A=$585, CLASS B=$841, CLASS C=$402) [NOTE 3]............... 6,131
Service Fees (CLASS A=$115, CLASS B=$71, CLASS C=$21) [NOTE 3]............... 1,362
Miscellaneous Expense ....................................................... 6,812
-----
TOTAL EXPENSES............................................................... $ 26,036
------
NET INVESTMENT INCOME........................................................ $ 14,038
------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Net Realized Loss on Investments............................................. (542)
Change in Unrealized Appreciation of Investments ............................ 60,797
------
Net Realized and Unrealized Gain on Investments.............................. 60,255
======
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................ $ 74,293
------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended June 20, 2000 (Unaudited) and the Period Ended December 31,
1999 (A)
INCREASE (DECREASE) IN NET ASSETS
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED) DEC. 31,
1999 (A)
-----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income ..................................... $ 14,038 $ 2,891
Net Change in Unrealized Depreciation of Investments ...... (542) (440)
Net Realized Loss on Investments .......................... 60,797 (11,165)
------ --------
Decrease in Net Assets (RESULTING FROM OPERATIONS) ........ 74,293 (8,714)
------ -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Realized Gains.........................................
Class A.................................................. ----- (1,913)
Class B.................................................. ----- (1,196)
Class C.................................................. ----- (357)
Net Income ................................................
Class A.................................................. ----- (1,689)
Class B.................................................. ----- (1,056)
Class C.................................................. ----- (315)
----- ----
Total Net Decrease......................................... ----- (6,526
------
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold..................................
Class A.................................................. 1,818,704 885,073
Class B.................................................. 1,103,276 531,293
Class C.................................................. 14,996 160,444
Dividend Reinvested .......................................
Class A.................................................. ----- 3,566
Class B.................................................. ----- 2,188
Class C.................................................. ----- 668
Cost of Shares Redeemed....................................
Class A.................................................. (53,848) (34,525)
Class B.................................................. (66,137) (3,804)
Class C.................................................. (171,405) -----
--------- -----
Increase in Net Assets 2,645,586 1,544,903
(RESULTING FROM CAPITAL SHARE TRANSACTIONS) --------- ---------
Total Increase in Net Assets............................... 2,719,879 1,529,663
========= =========
NET ASSETS:
Beginning of Period ....................................... 1,529,663 -----
End of Period.............................................. $ 4,249,542 $ 1,529,663
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended June 20, 2000 (Unaudited) and the Period Ended December 31,
1999 (A)
INCREASE (DECREASE) IN NET ASSETS (CONT.)
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
-----------------------------------------------------------------------------------------------------------
SHARES OF CAPITAL STOCK OF THE FUND SOLD AND REDEEMED:
Shares Sold:
Class A.................................................. 196,866 90,654
Class B.................................................. 122,515 56,227
Class C.................................................. 1,864 16,260
Shares Reinvested:
Class A.................................................. ----- 375
Class B.................................................. ----- 234
Class C.................................................. ----- 71
Shares Redeemed:
Class A.................................................. (5,751) (3,623)
Class B.................................................. (7,928) (404)
Class C.................................................. (18,195) -----
-------- -----
Net Increase in Number of Shares Outstanding .............. 289,371 159,794
======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS
LARGE/MID-CAP VALUE FUND - CLASS A
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
06/30/00 PERIOD ENDED
(UNAUDITED) 12/31/99 (E)
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning ................................ $ 9.68 $ 10.00
Income from Investment Operations:
Net Investment Income ................................... 0.06 0.02
Net Realized and Unrealized Gain (Loss) on Investments... (0.22) (0.30)
Total from Investment Operations.............................. (0.16) (0.28)
--------------------
Less Distributions:
Dividends from Realized Gains ........................... ----- (0.02)
Dividend from Net Investment Income...................... -----
-----
Total Distribution ...................................... ----- (0.04)
-------------------
Net Asset Value At End of Period .......................... $ 9.52 $ 9.68
==== ====
Total Return (A)(B)(C)..................................... (1.65)% (3.28)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).......................... $ 2,652 $ 846
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (D).......... 1.60% 4.69%
After Reimbursement of Expenses by Advisor (D)........... 1.60% 1.60%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (D).......... 1.32% (2.34)%
After Reimbursement of Expenses by Advisor (D)........... 1.32% 0.75%
Portfolio Turnover ........................................ 8.20% 8.02%
(A) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized.
(B) Total Return Calculation Does Not Reflect Sales Load.
(C) Total Return Calculation Does Not Reflect Redemption Fees.
(D) Annualized.
(E) For the Period July 14, 1999 (commencement of operations) to December 31, 1999.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Timothy Plan Large/Mid-Cap Value Fund (June 30, 2000
Semi-Annual Report) - page 21
FINANCIAL HIGHLIGHTS
LARGE/MID-CAP VALUE FUND - CLASS B
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning ................................ $ 9.36 $ 10.00
Income from Investment Operations:
Net Investment Income ................................... 0.03 0.02
Net Realized and Unrealized Gain (Loss) on Investments... (0.03) (0.62)
Total from --------------------
Investment Operations....................................... (0.60) (0.60)
--------------------
Less Distributions:
Dividends from Realized Gains ........................... ----- (0.02)
Dividend from Net Investment Income...................... ----- (0.02)
-------------------
Total Distribution ...................................... ----- (0.04)
-------------------
Net Asset Value At End of Period .......................... $ 9.36 $ 9.36
==== ====
Total Return (A)(B)(C)..................................... 0.00% (4.78)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).......................... $ 1,598 $ 525
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (D).......... 2.35% 5.87%
After Reimbursement of Expenses by Advisor (D)........... 2.35% 2.35%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (D).......... 0.59% (2.34)%
After Reimbursement of Expenses by Advisor (D)........... 0.59% 0.12%
Portfolio Turnover ........................................ 8.20% 8.02%
(A) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized..
(B) Total Return Calculation Does Not Reflect Sales Load.
(C) Total Return Calculation Does Not Reflect Redemption Fees.
(D) Annualized.
(E) For the period July 15, 1999 (commencement of operations) to December 31, 1999.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
[This page left intentionally
blank.]
<PAGE>
Timothy Plan Fixed Income Fund (June 30, 2000 Semi-Annual Report) - page 28
THE TIMOTHY PLAN
fixed income fund
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
BONDS - 95.84%
-----------------------------------------------------------------------------------------------------------
PAR VALUE MARKET VALUE
-----------------------------------------------------------------------------------------------------------
CORPORATE BONDS - 79.33%
$ 10,000 Allegiance Corp. 7.30% 10/15/2006............................... $ 9,998
25,000 Allied Signal, Inc. 6.02% 02/01/2008............................ 23,263
25,000 American General Finance 7.25% 05/15/2005....................... 24,613
25,000 Boeing/Rockwell 6.625% 06/01/2005............................... 24,491
25,000 Cooper Industries 6.70% 09/22/2005.............................. 24,006
25,000 CSX Transportation 7.33% 06/01/2005............................. 24,763
20,000 Donaldson Lufkin Jenrette 5.875% 04/01/2002..................... 19,463
25,000 DuPont E.I. Nemours 6.00% 03/06/2003............................ 24,448
25,000 Florida Power & Light 6.00% 06/01/2008.......................... 22,695
10,000 Household Finance 7.30% 07/30/2012.............................. 9,279
25,000 Lehman Brothers Holdings 6.625% 02/05/2006...................... 23,214
25,000 Mellon Financial Co. 6.00% 03/01/2004........................... 23,859
30,000 National Rural Utilities 6.00% 01/15/2004 ...................... 28,855
25,000 Pennsylvania Power & Light 6.55% 03/01/2006..................... 23,912
70,000 Pep Boys Manny Moe & Jack 7.00% 06/01/2005...................... 47,027
11,000 Public Service Electric and Gas 6.25% 01/01/2007................ 10,327
25,000 Southern Bell Telephone 6.00% 10/01/2004........................ 24,032
25,000 Travelers Property & Casualty Corp. 6.75% 11/15/06.............. 23,873
25,000 TRW, Inc. 6.25% 01/15/2010...................................... 21,674
25,000 Union Electric Co, 6.875% 08/01/2004............................ 24,838
25,000 US Leasing International 5.95% 10/15/2003 ...................... 23,670
------
482,300
MUNICIPAL BONDS - 12.10%
25,000 Hydro-Quebec 7.375% 02/01/2003.................................. 25,042
25,000 Province of Manitoba 6.75% 03/01/2003........................... 24,846
25,000 Texas State University 6.41% 03/15/2009......................... 23,675
------
Total Bonds (COST $73,563)...................................... 73,563
------
SHORT-TERM INVESTMENTS - 4.40%
26,775 Firstar Bank Treasury Fund...................................... 26,775
------
Total Short-Term Investments (COST $26,775)..................... 26,775
------
TOTAL INVESTMENTS - 95.84% (IDENTIFIED COST $606,612)........... $ 582,638
-------
OTHER ASSETS AND LIABILITIES, NET - 4.16% ...................... 25,310
------
NET ASSETS - 100% .............................................. $ 607,948
=======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2000 (Unaudited)
ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investments, at Value (Cost $606,612) ....................................... $ 582,638
Cash......................................................................... 883
Receivables:
Interest................................................................... 10,915
Fund Shares Sold........................................................... 9,208
Due from Advisor ............................................................ 13,074
Other Assets................................................................. 4,453
-----
TOTAL ASSETS ................................................................ $ 621,171
-------
LIABILITIES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Accrued Expenses............................................................. 4,876
Income Distribution Payable.................................................. 7,853
Other Payable................................................................ 494
---
TOTAL LIABILITIES ........................................................... $ 13,223
------
NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (UNLIMITED SHARES OF $.0001 PAR BENEFICIAL INTEREST AUTHORIZED; 17,959 SHARES OUTSTANDING)
171,319
Net Asset Value and Redemption Price Per Share (171,319/17,959 SHARES)..... 9.41
Offering Price Per Share ($9.41/0.9575).................................... 9.83
Class B Shares:
Net Assets (UNLIMITED SHARES OF $.0001 PAR BENEFICIAL INTEREST AUTHORIZED; 24,808 SHARES OUTSTANDING)
436,629
Net Asset Value and Offering Price Per Share (436,629/45,985 SHARES)....... 9.38
Redemption Price Per Share ($9.38 X 0.95).................................. 8.91
NET ASSETS ................................................................ $ 607,948
-------
SOURCES OF NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital ........................................................... 640,782
Net Undistributed Investment Income ....................................... 440
Net Unrealized Depreciation in Value of Investments ....................... (23,974)
Accumulated Net Realized Loss on Investments .............................. (9,300)
-------
NET ASSETS .................................................................. $ 607,948
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
INVESTMENT INCOME
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Interest .................................................................... $ 19,121
------
TOTAL INVESTMENT INCOME ..................................................... $ 19,121
------
EXPENSES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]............................................ 1,566
Transfer Agent Fees (CLASS A=$2,547, CLASS B=$5,032, CLASS C=$648)........... 8,227
Administration Fees ......................................................... 2,244
12b-1 Fees (CLASS A=$205, CLASS B=$1,166, CLASS C=$178)...................... 1,549
Accounting Fees.............................................................. 10,022
Audit Fees................................................................... 997
Custodian Fees............................................................... 1,795
Service Fees (CLASS B=$388, CLASS C=$60)..................................... 448
Miscellaneous Expense ....................................................... 1,305
-----
TOTAL EXPENSES............................................................... $ 28,153
------
Expenses Waived and Reimbursed by Advisor [NOTE 3]........................... (23,269)
--------
NET EXPENSES ................................................................ $ 4,884
-----
NET INVESTMENT INCOME........................................................ $ 14,237
------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Net Realized Loss on Investments............................................. (8,925)
Change in Unrealized Depreciation of Investments ............................ (16,052)
--------
Net Realized and Unrealized Loss on Investments.............................. (24,977)
========
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................ $ (10,740)
--------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended June 20, 2000 (Unaudited) and the Period Ended December 31,
1999 (A)
INCREASE (DECREASE) IN NET ASSETS
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED) DEC. 31,
1999 (A)
-----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income ..................................... $ 14,237 $ 5,561
Net Change in Unrealized Depreciation of Investments ...... (8,925) (7,922
Net Realized Loss on Investments .......................... (16,052) (375)
-------- -----
Decrease in Net Assets (RESULTING FROM OPERATIONS) ........ (10,740) (2,736)
-------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Income.................................................
Class A.................................................. (4,213) (1,608)
Class B.................................................. (9,042) (3,093)
Class C.................................................. (649) (753)
----- -----
Total Net Decrease......................................... (13,904) (5,454)
-------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold..................................
Class A.................................................. 95,933 203,065
Class B.................................................. 234,944 245,990
Class C.................................................. 20,586 58,476
Dividend Reinvested........................................
Class A.................................................. 4,213 1,608
Class B.................................................. 8,978 3,093
Class C.................................................. 649 753
Cost of Shares Redeemed....................................
Class A.................................................. (44,590) (78,042)
Class B.................................................. (34,585) (1,778)
Class C.................................................. (78,511) -----
------- -----
Increase in Net Assets
(RESULTING FROM CAPITAL SHARE TRANSACTIONS) $ 207,617 $ 433,165
------- -------
Total Increase in Net Assets............................... $ 182,973 $ 424,975
======= =======
NET ASSETS:
Beginning of Period ....................................... 424,975 -----
-------
End of Period
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $440) 607,948 $ 424,975
======= =======
SHARES OF CAPITAL STOCK OF THE FUND SOLD AND REDEEMED:
Shares Sold:
Class A.................................................. 9,761 20,270
Class B.................................................. 24,382 24,671
Class C.................................................. 2,151 5,850
Shares Reinvested:
Class A.................................................. 444 163
Class B.................................................. 953 316
Class C.................................................. 68 77
Shares Redeemed:
Class A.................................................. (4,647) (7,783)
Class B.................................................. (3,575) (179)
Class C.................................................. (8,147) -----
------- -----
Net Increase in Number of Shares Outstanding............... 21,390 43,385
====== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS
FIXED INCOME FUND - CLASS A
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
06/30/00 PERIOD ENDED
(UNAUDITED) 12/31/99 (A)
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning ................................ $ 9.81 $ 10.00
Income from Investment Operations:
Net Investment Income ................................... 0.29 0.12
Net Realized and Unrealized Gain (Loss) on Investments... (0.45) (0.18)
--------------------
Total from Investment Operations......................... (0.16) (0.06)
--------------------
Less Distributions:
Dividend from Net Investment Income...................... (0.24) (0.13)
--------------------
Total Distribution ...................................... (0.24) (0.13)
--------------------
Net Asset Value At End of Period .......................... $ 9.41 $ 9.81
==== ====
Total Return (B)(C)(D)..................................... (2.26)% (0.42)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).......................... $ 171 $ 124
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (E).......... 10.62% 13.92%
After Reimbursement of Expenses by Advisor (E)........... 1.35% 1.35%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (E).......... (3.21)% (9.88)%
After Reimbursement of Expenses by Advisor (E)........... 6.06% 2.70%
Portfolio Turnover ........................................ 8.20% 21.25%
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31, 1999.
(B) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized.
(C) Total Return Calculation Does Not Reflect Sales Load.
(D) Total Return Calculation Does Not Reflect Redemption Fee.
(E) Annualized.
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS
FIXED INCOME FUND - CLASS B
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning ................................ $ 9.80 $ 10.00
Income from Investment Operations:
Net Investment Income ................................... 0.24 0.15
Net Realized and Unrealized Gain (Loss) on Investments... (0.43) (0.22)
--------------------
Total from Investment Operations......................... (0.19) (0.07)
--------------------
Less Distributions:
Dividend from Net Investment Income...................... (0.23) (0.13)
--------------------
Total Distribution ...................................... (0.23) (0.13)
--------------------
Net Asset Value At End of Period .......................... $ 9.38 $ 9.80
==== ====
Total Return (B)(C)(D)..................................... (2.27)% (0.92)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).......................... $ 437 $ 243
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (E).......... 10.83% 14.73%
After Reimbursement of Expenses by Advisor (E)........... 2.10% 2.10%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (E).......... (3.56)% (2.20)%
After Reimbursement of Expenses by Advisor (E)........... 5.16% 10.42%
Portfolio Turnover ........................................ 8.20% 21.25%
(A) For the Period August 5, 1999 (Commencement of Operations) to December 31, 1999.
(B) For Periods Of Less Than One Full Year, Total Returns Are Not Annualized.
(C) Total Return Calculation Does Not Reflect Sales Load.
(D) Total Return Calculation Does Not Reflect Redemption Fee.
(E) Annualized.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
[This page left intentionally
blank.]
<PAGE>
Timothy Plan Money Market Fund (June 30, 2000 Semi-Annual Report) - page 36
THE TIMOTHY PLAN
money market fund
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (Unaudited)
SHORT-TERM INVESTMENTS - 99.26%
-----------------------------------------------------------------------------------------------------------
PAR VALUE MARKET VALUE
-----------------------------------------------------------------------------------------------------------
CORPORATE NOTE - 8.97%
$ 100,000 Citibank 5.97% 07/05/2000....................................... $ 99,935
------
FEDERAL HOME LOAN BANK - 70.87%
100,000 FHLB Discount Note 5.77% 07/26/2000............................. 99,606
100,000 FHLB Discount Note 5.91% 08/04/2000............................. 99,452
100,000 FHLB Discount Note 5.87% 08/09/2000............................. 99,375
100,000 FHLB Discount Note 6.06% 09/15/2000............................. 98,742
100,000 FHLB Discount Note 6.45% 09/19/2000............................. 98,591
100,000 FHLB Discount Note 6.52% 10/02/2000............................. 98,344
100,000 FHLB Discount Note 6.31% 10/25/2000............................. 97,999
100,000 FHLB Discount Note 6.47% 12/14/2000............................. 97,067
------
789,176
COMMERCIAL PAPER - 8.77%
100,000 Yorkshire Building 5.29% 11/06/2000............................. 97,614
------
MUNICIPAL - 8.74%
100,000 La Metro Transit Authority 6.40% 12/01/2000..................... 97,255
------
SHORT-TERM INVESTMENTS - 1.91%
21,277 Firstar Bank Treasury Fund...................................... 21,277
------
TOTAL INVESTMENTS - 99.26% (IDENTIFIED COST $1,105,257)......... $ 1,105,257
---------
OTHER ASSETS AND LIABILITIES, NET - .74% ....................... $ 8,255
-----
NET ASSETS - 100% .............................................. $ 1,113,512
=========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2000 (Unaudited)
ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investments, At Value (COST $1,105,257) ..................................... $ 1,105,257
Cash......................................................................... 19,041
Receivables:
Interest................................................................... 302
Fund Shares Sold........................................................... 8,667
Due from Advisor ............................................................ 9,716
-----
TOTAL ASSETS ................................................................ $ 1,142,983
---------
LIABILITIES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Income Distribution Payable ................................................. $ 17,710
Payable for Fund Shares Redeemed............................................. 6,154
Accrued Expenses............................................................. 5,607
-----
TOTAL LIABILITIES ........................................................... $ 29,471
------
NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Shares of Capital Stock Outstanding (PAR VALUE .001, UNLIMITED SHARES AUTHORIZED) 1,113,512
Net Asset Value, Offering and Redemption Price Per Share (1,113,512/1,113,512 SHARES) 1.00
NET ASSETS .................................................................. $ 1,113,512
---------
SOURCES OF NET ASSETS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital ............................................................. 1,113,512
---------
NET ASSETS .................................................................. $ 1,113,512
---------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2000 (Unaudited)
INVESTMENT INCOME
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Interest .................................................................... $ 28,498
------
TOTAL INVESTMENT INCOME ..................................................... $ 28,498
------
EXPENSES
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]............................................ 2,953
Administration Fees ......................................................... 3,011
Transfer Agent Fees.......................................................... 4,973
Accounting Fees.............................................................. 5,967
Custodian Fees............................................................... 1,479
Miscellaneous Expense ....................................................... 3,125
-----
TOTAL EXPENSES............................................................... $ 21,508
------
Expenses Waived and Reimbursement by Advisor [NOTE 3]........................ (17,314)
--------
NET EXPENSES ................................................................ $ 4,194
-----
NET INVESTMENT INCOME........................................................ $ 24,304
------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
-----------------------------------------------------------------------------------------------------------
AMOUNT
-----------------------------------------------------------------------------------------------------------
Net Realized Gain on Investments............................................. $ 46
--
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................ $ 24,350
------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended June 20, 2000 (Unaudited) and the Period Ended December 31,
1999 (A)
INCREASE (DECREASE) IN NET ASSETS
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED) DEC. 31, 1999 (A)
-----------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income ..................................... $ 24,304 $ 6,827
Net Realized Gain.......................................... 46 -----
-- -----
Increase in Net Assets (RESULTING FROM OPERATIONS)......... 24,350 6,827
------ -----
DISTRIBUTIONS TO SHAREHOLDERS:
Net Income................................................. (24,304) (6,827)
-------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold ................................. 1,016,149 1,049,384
Dividend Reinvested ...................................... 7,720 6,827
Cost of Shares Redeemed ................................... (670,587) (296,027)
Increase in Net Assets (RESULTING FROM CAPITAL SHARE TRANSACTIONS) --------- ---------
Total Increase in Net Assets .............................. 353,328 760,184
------- -------
353,282 760,184
======= =======
NET ASSETS:
Beginning of Period ....................................... 760,184 0
End of Period ............................................. $ 1,113,512 $ 760,184
========= =======
SHARES OF CAPITAL STOCK OF THE FUND SOLD AND REDEEMED:
Shares Sold ............................................... 1,016,149 1,049,384
Shares Reinvested.......................................... 7,720 6,827
Shares Redeemed ........................................... (670,587) (296,027)
Net Increase in Number of Shares Outstanding .............. 353,282 760,184
======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND - CLASS A
-----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED) DEC. 31, 1999 (A)
-----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, Beginning ................................ $ 1.00 $ 1.00
Income from Investment Operations:
Net Investment Income ..................................... 0.02 0.02
Net Realized and Unrealized Gain (Loss) on Investments..... ----- -----
Total from Investment Operations........................... 0.02 0.02
---- ----
Less Distributions:
Dividend from Net Investment Income........................ (0.02) (0.02)
Total Distribution......................................... ------ ------
(0.02) (0.02)
----- ------
Net Asset Value At End of Period .......................... $ 1.00 $ 1.00
==== ====
Total Return (B)........................................... 3.04% 1.78%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).......................... $1,114 $ 760
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (C)......... 4.36% 5.75%
After Reimbursement of Expenses by Advisor (C).......... 0.85% 0.85%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (C)......... 1.42% (0.73)%
After Reimbursement of Expenses by Advisor (C).......... 4.93% 4.17%
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31, 1999.
(B) Not Annualized
(C) Annualized
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
TIMOTHY PLAN FAMILY OF FUNDS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The Timothy Plan (the "Trust") is organized as a series of a Delaware
business trust pursuant to a trust agreement dated December 16, 1993. The
Trust is registered under the Investment Company Act of 1940, as amended,
as an open-end diversified management investment company. The Trust
currently consists of four series consisting of The Timothy Small-Cap
Value Fund, The Timothy Large/Mid-Cap Value Fund, The Timothy Fixed
Income Fund and The Timothy Money Market Fund, ("the Funds").
The Timothy Small-Cap Value Fund's primary objective is long-term capital
growth, with a secondary objective of current income. The Fund seeks to
achieve its investment objective by investing primarily in common stocks
and ADRs while abiding by ethical standards established for investments
by the Fund.
The Timothy Large/Mid-Cap Value Fund's investment objective is long term
capital growth. Its secondary objective is current income. The Fund seeks
to achieve its objectives by primarily investing in common stocks and
ADRs. The Large/Mid-Cap Value Fund will invest in the common stock of
companies whose total market capitalization generally exceeds $1 billion.
The Timothy Fixed Income Fund seeks to generate a high level of current
income consistent with prudent investment risk. To achieve its goal, the
Fund normally invests in a diversified portfolio of debt securities.
These include corporate bonds, convertible stocks, U.S. Government and
agency securities and preferred securities. The Fund will only purchase
high quality securities.
The Timothy Money Market Fund seeks to generate a high level of current
income consistent with the preservation of capital. To achieve its goal,
the Fund normally invests in short-term debt instruments, such as
obligations of the U.S. Government and its agencies, certificates of
deposit, bankers acceptances, commercial paper and short-term corporate
notes.
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of its financial
statements. The policies are in conformity with generally accepted
accounting principles for investment companies.
A. SECURITY VALUATION.
Investments in securities traded on a national securities exchange are
valued at the last reported sales price on the last business day of the
period. Unlisted securities or listed securities, in which there were no
sales, are valued at the mean of the closing bid and ask prices.
Short-term obligations with remaining maturities of 60 days or less are
valued at cost plus accrued interest, which approximates market value.
B. INVESTMENT INCOME AND SECURITIES TRANSACTIONS.
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Cost is determined and gains and losses
are based on the identified cost basis for both financial statement and
federal income tax purposes. Dividend income and distributions to
shareholders are reported on the ex-dividend date. Interest income and
expenses are accrued daily. The Timothy Small-Cap Value Fund has made
certain investments in real estate investment trusts ("REITs") which pay
dividends to their shareholders based upon available funds from
operations. It is quite common for these dividends to exceed the REIT's
taxable earnings and profits resulting in the excess portion of such
dividends being designated as a return of capital.
C. NET ASSET VALUE PER SHARE.
Net assets per share of the capital stock of the Funds is determined
daily as of the close of trading on the New York Stock Exchange by
dividing the value of its net assets by the number of Fund shares
outstanding. Net Asset Value is calculated separately for each class of
the three Funds, The Timothy Small-Cap Value Fund, The Timothy
Large/Mid-Cap Fund and The Timothy Fixed Income Fund, based on expenses
applicable to a particular class. The net asset value of the classes may
differ because of different fees and expenses charged to each class.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
TIMOTHY PLAN FAMILY OF FUNDS (CONT.)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
D. FEDERAL INCOME TAXES.
It is the policy of the Funds to comply with all requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. The Timothy
Small-Cap Value Fund has a capital loss carryover available to offset
future capital gains, if any, of approximately $3,300,000 of which
$1,000,000 expires in 2006 and $2,300,000 expires in 2008. The Timothy
Large/Mid-Cap Value Fund has approximately $14,600 in capital losses
available to offset future gains which expire in 2008.
E. USE OF ESTIMATES.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
The following is a summary of purchases and sales of securities, other
than short-term investments, for the period ended June 30, 2000:
FUNDS PURCHASES SALES
Small-Cap Value Fund $11,462,065 $13,542,188
Large/Mid-Cap Value Fund $3,168,253 $706,901
Fixed Income Fund $680,916 $43,601
NOTE 3 - INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Timothy Partners, LTD., ("TPL") is the investment advisor for the Funds
pursuant to an investment advisory agreement (the "Agreement") effective
May 1, 1998. Under the terms of the Agreement, TPL receives a fee,
accrued daily and paid monthly, at an annual rate of 0.85% of the average
daily net assets of The Small-Cap Value and The Large/Mid-Cap Value
Funds; 0.60% of the average daily net assets of The Fixed Income and
Money Market Funds. TPL has voluntarily agreed to reduce fees payable to
it by the Funds and reimburse other expenses to the extent necessary to
limit the Funds' aggregate annual operating expenses, excluding brokerage
commissions and other portfolio transaction expenses, interest, taxes,
capital expenditures and extraordinary expenses, to 1.35% with respect to
Class A, 2.10%, with respect to Classes B and C, of the Fund's average
daily net assets for the Fixed Income Fund; 0.85% with regards to the
Money Market Fund. For the period ended June 30, 2000, TPL reimbursed the
Funds as follows:
FUNDS REIMBURSEMENTS
Fixed Income Fund $23,269
Money Market Fund $17,314
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
TIMOTHY PLAN FAMILY OF FUNDS (CONT.)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The Timothy Small-Cap Value, The Timothy Large/Mid-Cap Value and The
Timothy Fixed Income Funds have adopted shareholder services plans (the
"Plans") pursuant to Rule 12b-1 under the Investment Company Act of 1940,
as amended. The Plans provide that the Fund will reimburse TPL or others
for expenses actually incurred in the promotion of distribution of
shares. Under the Class A Plan, the Funds will reimburse TPL a fee at an
annual rate of 0.25%, payable monthly, of the average daily net assets
attributable to such class of shares. Under the Class B and Class C
Plans, the Fund will reimburse TPL a fee at an annual rate of 1.00%,
payable monthly, of which, 0.25% may be a service fee and 0.75% may be
payable to outside broker/dealers, of the average daily net assets
attributable to such class of shares. For the period ended June 30, 2000,
the Funds reimbursed TPL $76,508, $6,131 and $1,549, respectively, for
distribution costs incurred.
NOTE 4 - UNREALIZED APPRECIATION (DEPRECIATION)
At June 30, 2000, the cost for federal income tax purposes is and the
composition of gross unrealized appreciation (depreciation) of investment
securities is as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FUNDS COST APPRECIATION DEPRECIATION NET APP. (DEP.)
Small-Cap Value Fund $26,753,250 $6,269,643 ($2,214,981) $4,054,662
Large/Mid-Cap Value Fund 4,246,853 388,723 (328,366 60,357)
Fixed Income Fund 606,612 1,116 (25,090) (23,974)
</TABLE>
<PAGE>
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