<PAGE>
REPORT TO SHAREHOLDERS
December 31, 1999
ARTHUR D. ALLY
- --------------------------------------------------------------------------------
Dear Shareholder:
The year 1999 was certainly an eventful one for us. Our original fund, the
Timothy Plan, was renamed the Timothy Plan Small Cap Value Fund as we added
three new funds to our family on July 1st: a Large/Mid Cap Value Fund, a
Fixed Income Fund, and a Money Market Fund. I am pleased to report that each
of the firms we selected to manage these funds have well-established
histories in the money management industry and meet or even exceed the
stringent quality standards we have set for each of our funds.
As you review each manager's report in this document, I believe you will come
to understand that, over the past five years, we have experienced one of the
most unusual markets in recent history. As you probably know, both the small
cap and the value segments of the market were nearly ignored over that
period. In fact, our small cap value fund was actually down in 1998, a
condition that continued through part of 1999. I am pleased to report that
the trend apparently reversed itself in November and we closed the year of
1999 in pretty strong fashion. We expect this to continue in the year 2000
and beyond; however, since no human being (even us) can predict the future,
this expectation must not be misconstrued as a guarantee of future
performance.
Isn't it interesting to see how we get drawn into speaking, writing, and even
acting according to the world's standards? Here I have been primarily
addressing performance while we believe, especially with the quality of our
money management firms, that performance will take care of itself. The thing
that sets Timothy apart is our commitment to applying biblical principles to
our investing philosophy.
Our culture is experiencing moral meltdown and, in a number of cases, certain
corporations are either directly involved or indirectly funding this
disintegration of our foundational Judeo-Christian principles. Timothy's
unchanging commitment is that we will not invest any of our shareholders'
money in such companies! We believe our Lord is far more concerned with this
kind of obedience than He is with investment returns. Please do not
misunderstand, we are committed to achieving competitive investment returns
but let's all agree to keep our priorities straight.
Thank you for being a faithful member of the growing Timothy Plan family.
Sincerely,
/s/ Arthur D. Ally
Arthur D. Ally
President
<PAGE>
THE TIMOTHY PLAN
small-cap value fund
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 3
<PAGE>
INVESTMENT UPDATE
December 31, 1999
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
The Timothy Small-Cap Value Fund finished 1999 with good momentum and the
year as a whole ended up being productive for our clients, as we improved
our position vis a vis earlier in the year.
Looking to 2000, we are humbly confident that we should be able to provide
good absolute and risk-adjusted return for Timothy:
1. Our research team is stronger than ever and is performing well.
2. The environment surrounding the equity markets remains stable: A strong
economy, growing profits, stable inflation, tolerable interest rates
and high demand for equities matrixed against a shrinking pool of
available equities in which to invest.
3. The markets have been broadening out since March 1999. 1998 and early
1999 were dominated by a small number of high momentum stocks; while
these issues have continued to do well, investor interest has become
more broad-based.
4. The portfolios are filled with companies showing good earning growth,
which sell at moderate valuations.
In terms of risks to the portfolios:
1. Interest rates have been rising. They must stabilize in early 2000 to
sustain additional gains in the prices of many securities.
2. A small number of stocks that have dominated investor interest over the
last few years are no longer cheaply valued. Any correction in the
prices of these issues must be watched to monitor any impact on the
prices of other sectors.
We will continue to work hard for Timothy in 2000. The valuations of our
stocks are attractive and the prices have demonstrated positive momentum.
This combination should benefit the Fund. We are off to a good start and we
will work hard to make further progress in growing the fund.
James D. Awad
Awad Asset Management, Inc.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 4
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS - 85.40%
- --------------------------------------------------------------------------------
number of shares market value
- --------------------------------------------------------------------------------
<S> <C>
BANKS - 3.24%
20,000
Capital Crossing Bank *......................... $ 250,000
20,000 North Fork Bancorp.............................. 347,500
17,000 Staten Island Bancorp, Inc...................... 306,000
----------
903,500
----------
BROADCASTING - 2.19%
20,000 American Tower Corp, Class A *.................. 611,250
----------
COMPUTER HARDWARE - 1.25%
50,000 Quantum Corp-Hard Disk Drive Group *............ 346,875
----------
COMPONENTS - 1.93%
20,000 Kaydon Corp..................................... 536,250
----------
COMPUTER SERVICES AND SOFTWARE - 7.59%
21,900 Comdisco, Inc................................... 815,775
35,000 New Horizons Worldwide, Inc. *.................. 415,625
28,000 Sterling Software, Inc. *....................... 882,000
----------
2,113,400
----------
COMPUTER SYSTEMS - 2.52%
17,000 Silicon Storage *............................... 701,250
----------
COMMERCIAL SERVICES - 10.59%
31,000 Cunningham Graphics Intl, Inc. *................ 432,062
69,500 Health Mgmt. Systems Inc. *..................... 438,719
20,000 Iron Mountain *................................. 786,250
15,000 Nova Corp/Georgia *............................. 473,438
4,000 StarTek, Inc. *................................. 145,000
20,000 Teletech *...................................... 674,062
----------
2,949,531
----------
CONSULTING SERVICES - 0.74%
6,500 BARRA, Inc. *................................... 206,375
----------
ELECTRONIC EQUIPMENT - 6.06%
16,000 C-Cube Microsystems *........................... 996,000
15,000 Research in Motion *............................ 692,813
----------
1,688,812
----------
</TABLE>
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 5
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS - 85.40% (cont.)
- --------------------------------------------------------------------------------
number of shares market value
- --------------------------------------------------------------------------------
<S> <C>
FINANCIAL SERVICES - 6.51%
53,900 Doral Financial Corp.......................... $ 663,644
25,000 Investor's Financial Services Corp............ 1,150,000
----------
1,813,644
----------
FOOD & BEVERAGE - 6.13%
23,000 Corn Products Intl............................ 753,250
24,000 Smithfield Foods, Inc. *...................... 576,000
23,200 Smucker (J.M.) Co. Class B.................... 377,000
----------
1,706,250
----------
HEALTHCARE SERVICES - 3.36%
31,325 Eclypsys Corp. *.............................. 802,703
15,800 LTC Properties, Inc........................... 133,312
----------
936,015
----------
INSURANCE - 3.53%
20,000 Annuity and Life Reinsurance (HLDGS) Ltd...... 522,500
25,000 Presidential Life Corp........................ 459,375
----------
981,875
----------
INTERNET SERVICES - 1.56%
29,000 Audible, Inc. *............................... 435,000
----------
INVESTMENT SERVICES - 3.10%
30,000 Investment Technology Group................... 862,500
----------
MACHINERY, GENERAL INDUSTRIAL - 1.47%
7,000 Zebra Tech Class A*........................... 409,500
----------
MEDICAL PRODUCTS - 4.76%
10,000 Beckman Coulter, Inc.......................... 508,750
27,100 Cooper Co..................................... 816,388
----------
1,325,138
----------
PHARMECEUTICAL - 2.16%
20,000 Emisphere Technologies, Inc. *................ 601,250
----------
PRINTING - 1.49%
18,300 Printronix, Inc.*............................. 416,325
----------
</TABLE>
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 6
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS - 85.40% (cont.)
- ----------------------------------------------------------------------------------------------
number of shares market value
- ----------------------------------------------------------------------------------------------
<S> <C>
PUBLISHING - 8.01%
15,500 Houghton Mifflin Co......................................... $ 653,906
35,000 Penton Media, Inc........................................... 840,000
44,000 Wiley (John) & Sons, Inc. Class A........................... 737,000
-----------
2,230,906
-----------
RETAIL STORES - 3.15%
60,000 Bradlees Inc. *............................................. 510,000
35,000 Shoe Carnival *............................................. 352,188
6,000 U.S. Vision *............................................... 15,375
-----------
877,563
-----------
SEMI CONDUCTORS - 4.06%
35,000 LTX Corp. *................................................. 783,125
30,000 S3 Incorporated *........................................... 346,875
-----------
1,130,000
-----------
Total Common Stocks (cost $18,251,421)...................... $23,783,209
-----------
WARRANTS - 0.00%
53 Morrison Knuesen............................................ 123
-----------
BONDS - 1.29%
500,000 American Retirement Corp (5.75%, 10/01/2002 - cost $512,275) 360,000
-----------
SHORT-TERM INVESTMENTS - 12.40%
3,452,175 Firstar Bank Treasury Fund (cost $3,452,175)................ 3,452,175
-----------
TOTAL INVESTMENTS - 99.09% (identified cost $22,215,871).... $27,595,507
-----------
OTHER ASSETS AND LIABILITIES, NET - 0.91%................... 252,418
NET ASSETS - 100%........................................... $27,847,925
===========
</TABLE>
* Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of December 31, 1999
<TABLE>
<CAPTION>
ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
amount
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Securities at Market at Value (identified cost $22,215,871) [NOTE 1]........................ $27,595,507
Cash....................................................................................................... 84,947
Receivables:
Interest................................................................................................. 28,523
Dividends................................................................................................ 7,709
Fund Shares Sold......................................................................................... 12,031
Due from Advisor......................................................................................... 153,489
Other.................................................................................................... 111
Other Assets............................................................................................... 60,895
Capital Stock Sold......................................................................................... 28,252
-----------
Total Assets............................................................................................... $27,971,464
===========
LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------------
amount
- -------------------------------------------------------------------------------------------------------------------------------
Payable for Shares Purchased............................................................................... 47,249
Accrued Expenses........................................................................................... 61,475
Accrued Service Fee........................................................................................ 1,682
Other Payable.............................................................................................. 13,133
-----------
Total Liabilities.......................................................................................... $ 123,539
===========
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
amount
- -------------------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 1,091,427 shares outstanding).. 13,376,897
Net Asset Value and Redemption Price Per Class A Share ($13,376,897/1,091,427 shares).................... 12.26
Offering Price Per Share ($12.26/0.945).................................................................. 12.97
Class B Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 1,207,799 shares outstanding).. 14,350,941
Net Asset Value and Offering Price Per Class B Share ($14,350,941/1,207,799 shares)...................... 11.88
Redemption Price Per Share ($11.88 x 0.95)............................................................... 11.29
Class C Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 11,184 shares outstanding)..... 120,087
Net Asset Value and Offering Price Per Class C Share ($120,087/11,184 shares)............................ 10.74
Net Assets................................................................................................. $27,847,925
===========
SOURCES OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
amount
- -------------------------------------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital.......................................................................................... 25,814,592
Net Accumulated Realized Loss on Investment.............................................................. (3,346,303)
Net Unrealized Appreciation in Value of Investments...................................................... 5,379,636
-----------
Net Assets................................................................................................. $27,847,925
===========
</TABLE>
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 8
<PAGE>
STATEMENT OF OPERATIONS
For Year Ended December 31, 1999
<TABLE>
<CAPTION>
INVESTMENT INCOME
- --------------------------------------------------------------------------------------------------
amount
- --------------------------------------------------------------------------------------------------
<S> <C>
Interest...................................................................... $ 181,866
Dividends..................................................................... 178,418
------------
Total Investment Income....................................................... $ 360,284
------------
EXPENSES
- --------------------------------------------------------------------------------------------------
amount
- --------------------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]............................................. 220,068
Transfer Agent Fees (Class A=$23,335, Class B=$25,353, Class C=$166).......... 48,854
Administration Fees........................................................... 26,646
12b-1 Fees (Class A=$30,883, Class B=$100,606, Class C=$232) [NOTE 3]......... 131,721
Accounting Fees............................................................... 34,879
Registration Fees............................................................. 22,155
Custodian Fees................................................................ 6,943
Printing Expense.............................................................. 4,227
Out of Pocket Expense......................................................... 33,436
Amortization of Organization Cost [NOTE 1].................................... 2,707
Services Fees (Class A=$15,890, Class B=$17,264, Class C=$113) [NOTE 3]....... 33,267
Auditing Fees................................................................. 18,728
Insurance Expense............................................................. 7,898
Legal Expense................................................................. 26,301
Miscellaneous Expense......................................................... 25,645
------------
Total Expenses................................................................ $ 643,475
============
Expenses Waived and Reimbursed by Advisor [NOTE 3]............................ (129,595)
------------
Total Net Expenses............................................................ $ 513,880
============
Net Investment Loss........................................................... $ (153,596)
============
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- --------------------------------------------------------------------------------------------------
amount
- --------------------------------------------------------------------------------------------------
Net Realized Loss on Investments.............................................. (2,321,822)
Change in Unrealized Appreciation of Investments.............................. 5,469,363
------------
Net Realized and Unrealized Gain (Loss) on Investments........................ 3,147,541
============
Increase in Net Assets Resulting from Operations.............................. $ 2,993,945
============
</TABLE>
The accompanying notes are an integral part of these statements.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
year ended year ended
Dec. 31, 1999 Dec. 31, 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net Investment Loss........................................................... $ (153,596) $ (104,389)
Net Change in Unrealized Appreciation of Investments.......................... 5,469,363 (1,805,419)
Net Realized Loss on Investments.............................................. (2,321,822) (1,024,293)
----------- -----------
Increase (Decrease) in Net Assets (resulting from operations)................. 2,993,945 (2,934,101)
----------- -----------
Distributions to Shareholders:
Net Capital Gains:
Class A..................................................................... ----- (89,117)
Class B..................................................................... ----- (98,253)
Class C..................................................................... ----- -----
----------- -----------
Total Net Decrease............................................................ ----- (187,370)
----------- -----------
Capital Share Transaction:
Proceeds from Shares Sold:
Class A..................................................................... 3,121,258 5,917,565
Class B..................................................................... 2,412,768 6,088,477
Class C..................................................................... 157,951 -----
Dividend Reinvested:
Class A..................................................................... ----- 88,440
Class B..................................................................... ----- 92,993
Class C..................................................................... ----- -----
Cost of Shares Redeemed:
Class A..................................................................... (4,460,818) (2,464,485)
Class B..................................................................... (3,732,982) (1,796,707)
Class C..................................................................... (45,938) -----
Increase (Decrease) in Net Assets (resulting from capital share transactions). $(2,547,761) $ 7,926,283
----------- -----------
Total Increase in Net Assets.................................................. $ 446,184 $ 4,804,812
=========== ===========
Net Assets:
Beginning of Year............................................................. 27,401,741 22,596,929
End of Year................................................................... $27,847,925 $27,401,741
=========== ===========
Shares of Capital Stock of the Fund Sold and Redeemed:
Shares Sold:
Class A..................................................................... 293,144 514,690
Class B..................................................................... 251,060 535,115
Class C..................................................................... 16,311 -----
Shares Reinvested:
Class A..................................................................... ----- 8,122
Class B..................................................................... ----- 8,699
Class C..................................................................... ----- -----
Shares Redeemed:
Class A..................................................................... (421,383) (217,873)
Class B..................................................................... (362,823) (163,152)
Class C..................................................................... (5,127) -----
----------- -----------
Net Increase (Decrease) in Number of Shares Outstanding....................... $ (225,818) $ 685,601
=========== ===========
</TABLE>
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 10
<PAGE>
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
<TABLE>
<CAPTION>
SMALL-CAP VALUE FUND - CLASS A SHARES
- ------------------------------------------------------------------------------------------------------------------
year year year year year
ended ended ended ended ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning................................ $ 10.89 $ 12.25 $ 11.24 $10.07 $ 9.66
Income from Investment Operations:
Net Investment Income................................... (0.02) 0.01 0.02 0.10 0.11
Net Realized and Unrealized Gain (Loss) on Investments.. 1.39 (1.30) 2.37 1.17 0.66
------- ------- ------- ------ ------
Total from Investment Operations........................ 1.37 (1.29) 2.39 1.27 0.77
------- ------- ------- ------ ------
Less Distributions:
Dividends from Realized Gains........................... ----- (0.07) (1.38) ----- (0.25)
Dividends from Net Investment Income.................... ----- ----- ----- (0.10) (0.11)
------- ------- ------- ------ ------
Total Distribution...................................... ----- (0.07) (1.38) (0.10) (0.36)
------- ------- ------- ------ ------
Net Asset Value at End of Year............................ $ 12.26 $ 10.89 $ 12.25 $11.24 $10.07
======= ======= ======= ====== ======
Total Return (A).......................................... 12.58% (10.50%) 21.35% 12.59% 7.93%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000s)....................... $13,377 $13,287 $11,208 $7,760 $6,133
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor............. 2.22% 2.09% 2.75% 3.70% 5.84%
After Reimbursement of Expenses by Advisor.............. 1.60% 1.60% 1.60% 1.60% 1.60%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor............. (0.82%) (1.15%) (0.90%) (1.05%) (2.96%)
After Reimbursement of Expenses by Advisor.............. (0.20%) (0.66%) 0.25% 1.05% 1.28%
Portfolio Turnover........................................ 78.79% 69.42% 136.36% 93.08% 34.12%
</TABLE>
(A) Total Return Calculation Does Not Reflect Sales Load.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 11
<PAGE>
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND - CLASS B SHARES
year year year year year
ended ended ended ended ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning................................ $ 10.70 $ 12.13 $ 11.22 $10.08 $ 10.49
Income from Investment Operations:
Net Investment Income................................... (0.11) (0.07) (0.03) 0.07 0.11
Net Realized and Unrealized Gain (Loss) on Investments.. .29 (1.29) 2.32 1.14 (0.16)
------- ------- ------- ------ --------
Total from Investment Operations........................ 1.18 (1.36) 2.29 1.21 (0.05)
------- ------- ------- ------ --------
Less Distributions:
Dividends from Realized Gains........................... ----- (0.07) (1.38) ----- (0.25)
Dividend from Net Investment Income..................... ----- ----- ----- (0.07) (0.11)
------- ------- ------- ------ --------
Total Distribution...................................... ----- (0.07) (1.38) (0.07) (0.36)
------- ------- ------- ------ --------
Net Asset Value at End of Period.......................... $ 11.88 $ 10.70 $ 12.13 $11.22 $ 10.08
======= ======= ======= ====== ========
Total Return (A).......................................... 11.03% (11.18%) 20.50% 11.98% (0.46%)
Ratios/Supplemental Data:
Net Assets, End of Period (in 000s)....................... $14,351 $14,114 $11,389 $3,929 $ 620
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor............. 2.72% 2.84% 3.41% 4.30% 6.44% (B)
After Reimbursement of Expenses by Advisor.............. 2.35% 2.35% 2.26% 2.20% 2.20% (B)
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor............. (1.34%) (1.90%) (1.56%) 1.65% 3.56% (B)
After Reimbursement of Expenses by Advisor.............. (0.97%) (1.41%) (0.41%) 0.45% 0.68% (B)
Portfolio Turnover........................................ 78.79% 69.42% 136.36% 93.08% 34.12%
</TABLE>
* Class B Shares Commenced Investment Operations on August 25, 1995.
(A) Total Return Calculation Does Not Reflect Redemption Fee.
(B) Annualized.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 12
<PAGE>
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock
outstanding throughout each period presented.
<TABLE>
<CAPTION>
SMALL-CAP VALUE FUND - CLASS C SHARES
- -------------------------------------------------------------------------------
year
ended
12/31/99
- -------------------------------------------------------------------------------
<S> <C>
Per Share Operating Performance:
Net Asset Value, Beginning................................ $10.00
Income from Investment Operations:
Net Investment Income................................... 0.05
Net Realized and Unrealized Gain (Loss) on Investments.. 0.69
--------
Total from Investment Operations.......................... 0.74
--------
Less Distributions:
Dividends from Realized Gains........................... -----
Dividend from Net Investment Income..................... -----
--------
Total Distribution........................................ -----
--------
Net Asset Value at End of Period.......................... $10.74
========
Total Return.............................................. 7.40%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000s)....................... $ 120
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (A) 7.16%
After Reimbursement of Expenses by Advisor (A) 2.35%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (A) (3.53%)
After Reimbursement of Expenses by Advisor (A) 1.28%
Portfolio Turnover 78.79%
</TABLE>
(A) Annualized.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 13
<PAGE>
THE TIMOTHY PLAN
large/mid-cap value fund
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 14
<PAGE>
INVESTMENT UPDATE
February 16, 2000
LARGE/MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As we enter a new century and approach the real millennium, the market
environment is one characterized by an excess of greed versus fear. Writing
as long-term value investors, it is important to remember that investing is a
long-distance endeavor. There are two critical parts to wealth and managing
money. The first is to accumulate sufficient assets. The second is to hold
on to them. Today, too many investors have lost perspective of the
difficulty of maintaining wealth and the risk levels that they face. The
market valuation levels of the past several years in particular have
reflected an exceptionally positive backdrop for equity investment, and this
has led to the emotion of greed dominating fear. Put another way, the
confidence of achieving reward has overcome the uncertainty of risk. It is
not surprising the four-letter words of risk and fear have seemingly
disappeared from many investors' lexicon, and bonds are being thought of as
confiscatory assets because they do not return 20% per year.
Despite the risks of high valuations in certain sectors of the market and
higher interest rates, we again find compelling values in many traditional
value stocks. If anything, the supply/demand fundamentals for economically
sensitive companies are better than they were at the beginning of 1999, yet
the stock prices of many such companies are lower than or the same as they
were a year ago.
Fox intends to continue to use its head and follow its proven investment
discipline, not emotion, in pursuing investment opportunities. Although the
divergence of growth and value during the last two years has not been fun for
a firm known for its strong performance, we continue to believe that
successful investing requires intelligence and discipline and we will retain
a healthy dose of skepticism. To be sure, the basic human emotions of fear
and greed have not changed. There is no doubt that the current mania will
end badly for those who ignore market history, and chasing fantasy valuations
is not the way to preserve assets.
Jim O'Mealia
(for Peter Skirkanich)
Fox Asset Management
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 15
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS - 91.51%
- -----------------------------------------------------------------------------------
number of shares market value
- -----------------------------------------------------------------------------------
<S> <C>
AUTO PARTS & EQUIP - 8.93%
2,000 Dana Corp............................... $ 59,875
1,000 Genuine Parts Co........................ 24,812
1,000 TRW Corp................................ 51,938
--------
136,625
--------
BANKS - 8.83%
1,000 Keycorp................................. 22,125
1,200 National City Corp...................... 28,425
1,200 U.S. Bancorp............................ 28,575
500 Union Planters Corp..................... 19,719
1,400 Washington Mutual Financial Services.... 36,225
--------
135,069
--------
CHEMICALS - 13.43%
1,500 Air Products & Chemicals Inc............ 50,344
500 E I Du Pont De Nemours & Co............. 32,937
2,200 Hercules................................ 61,325
400 Praxair Inc............................. 20,125
1,000 Rohm & Haas Company..................... 40,687
--------
205,418
--------
COMPONENTS - 2.68%
800 Parker Hannifin Corporation............. 41,050
--------
COMPUTER SERVICES AND SOFTWARE - 3.33%
400 3 Com Corp. *........................... 18,800
1,000 Keane Inc. *............................ 32,125
--------
50,925
--------
CONTAINERS - 3.51%
2,400 Crown Cork & Seal Co Inc................ 53,700
--------
COSMETIC & TOILETRIES - 1.71%
400 Kimberly Clark Corp..................... 26,175
--------
ELECTRONIC EQUIPMENT - 7.92%
1,000 Emerson Electric Co..................... 57,375
2,000 Thomas & Betts Corp..................... 63,750
--------
121,125
--------
FOOD & BEVERAGE - 7.37%
700 Best Foods.............................. 36,794
2,000 Conagra Inc............................. 45,375
1,500 Universal Foods Corp.................... 30,562
--------
112,731
--------
INSURANCE - 5.53%
400 American General Financial Group........ 30,350
1,200 Everest Reinsurance Holdings Inc........ 26,775
800 Travelers Prop Casualty ClA............. 27,400
--------
84,525
--------
</TABLE>
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 16
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS - 91.51% (Cont.)
- -------------------------------------------------------------------------------------
number of shares market value
- -------------------------------------------------------------------------------------
<S> <C>
MACHINERY, GENERAL INDUSTRIAL - 4.56%
900 Ingersoll-Rand Company................................. $ 49,556
600 Kennametal Inc......................................... 20,175
----------
69,731
----------
MEDICAL PRODUCTS - 2.37%
1,000 Abbott Labs............................................ 36,313
----------
OIL AND GAS - 5.89%
2,500 Conoco Inc............................................. 61,875
600 Phillips Petroleum..................................... 28,200
----------
90,075
----------
PIPELINES - 3.55%
1,400 El Paso Energy Corp.................................... 54,338
----------
TELECOMMUNICATIONS - 2.77%
800 Cable & Wireless ADR................................... 42,350
----------
TRANSPORTATION - 3.38%
1,500 CNF Energy Corp........................................ 51,750
----------
UTILITIES - 3.95%
800 CMS Energy Corp........................................ 24,950
1,000 Texas Utilities Co..................................... 35,563
----------
60,513
----------
WASTE MANAGEMENT - 1.80%
1,600 Waste Management Inc................................... 27,500
----------
Total Common Stocks (cost $1,400,353).................. $1,399,913
----------
SHORT-TERM INVESTMENTS - 5.42%
82,868 Firstar Bank Treasury Fund (cost $82,868).............. 82,868
----------
TOTAL INVESTMENTS - 96.93% (identified cost $1,483,221) $1,482,781
----------
OTHER ASSETS AND LIABILITIES, NET - 3.07%.............. 46,882
----------
NET ASSETS - 100%...................................... $1,529,663
==========
</TABLE>
* Non-income producing securities.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 17
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of December 31, 1999
<TABLE>
<CAPTION>
ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
amount
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at Value (cost $1,483,221).................................................................... $1,482,781
Receivables:
Interest................................................................................................. 508
Dividends................................................................................................ 1,775
Fund Shares Sold......................................................................................... 114,073
Due from Advisor........................................................................................... 9,299
Other Assets............................................................................................... 1,267
----------
Total Assets............................................................................................... $1,609,703
==========
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------------------
amount
- ----------------------------------------------------------------------------------------------------------------------------
Cash Overdraft............................................................................................. 18,226
Accrued Expenses........................................................................................... 6,825
Payables for Investments Purchased......................................................................... 42,428
Payable for Fund Shares Redeemed........................................................................... 425
Other Payable.............................................................................................. 12,136
----------
Total Liabilities.......................................................................................... $ 80,040
==========
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
amount
- ----------------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 87,406 shares outstanding)..... 845,879
Net Asset Value and Redemption Price Per Class A Share ($845,879/87,406 shares).......................... 9.68
Offering Price Per Share ($9.68 x 1.055)................................................................. 10.21
Class B Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 56,057 shares outstanding)..... 524,605
Net Asset Value and Offering Price Per Class B Share ($524,605/56,057 shares)............................ 9.36
Redemption Price Per Share ($9.36 x 0.95)................................................................ 8.89
Class C Shares:
Net Assets (unlimited shares of $0.001par beneficial interest authorized; 16,331 shares outstanding)..... 159,179
Net Asset Value, Offering and Redemption Price Per Class C Share ($159,179/16,331 shares)................ 9.75
----------
Net Assets................................................................................................. $1,529,663
==========
SOURCES OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
amount
- ----------------------------------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital.......................................................................................... 1,544,734
Net Unrealized Depreciation in Value of Investments...................................................... (440)
Accumulated Loss on Investments.......................................................................... (14,631)
----------
Net Assets................................................................................................. $1,529,663
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 18
<PAGE>
STATEMENT OF OPERATIONS
For the Period Ended December 31, 1999 (A)
<TABLE>
<CAPTION>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
<S> <C>
Dividend.............................................................. $ 7,624
Interest.............................................................. 2,569
--------
Total Investment Income............................................... $ 10,193
--------
EXPENSES
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]..................................... 3,228
Transfer Agent Fees (Class A=$3,669, Class B=$1,564, Class C=$781).... 6,014
Administration Fees................................................... 1,697
12b-1 Fees (Class A=$585, Class B=$841, Class C=$402) [NOTE 3]........ 1,828
Accounting Fees....................................................... 6,047
Out of Pocket Fees.................................................... 491
Service Fees (Class A=$115, Class B=$71, Class C=$21) [NOTE 3]........ 207
Miscellaneous Expense................................................. 317
--------
Total Expenses........................................................ $ 19,829
========
Expenses Waived and Reimbursement by Advisor [NOTE 3]................. (12,527)
--------
Net Expenses.......................................................... $ 7,302
========
Net Investment Income................................................. $ 2,891
========
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Net Realized Loss on Investments...................................... (11,165)
Change in Unrealized Depreciation of Investments...................... (440)
--------
Net Realized and Unrealized Loss on Investments....................... (11,605)
--------
Decrease in Net Assets Resulting from Operations...................... $ (8,714)
========
</TABLE>
(A) For the Period July 14, 1999 (Commencement of OPerations) to December 31,
1999.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended December 31, 1999 (A)
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
- ---------------------------------------------------------------------------------------
period ended
Dec. 31, 1999 (A)
- ---------------------------------------------------------------------------------------
<S> <C>
Operations:
Net Investment Income............................................... $ 2,891
Net Change in Unrealized Depreciation of Investments................ (440)
Net Realized Loss on Investments.................................... (11,165)
----------
Decrease in Net Assets (resulting from operations).................. (8,714)
----------
Distributions to Shareholders:
Net Realized Gains.................................................. (3,466)
Class A........................................................... 1,913
Class B........................................................... 1,196
Class C........................................................... 357
Net Income.......................................................... (3,060)
----------
Class A........................................................... 1,689
Class B........................................................... 1,056
Class C........................................................... 315
Total Net Decrease.................................................. (15,240)
----------
Capital Share Transactions:
Proceeds from Shares Sold........................................... 1,576,810
Class A........................................................... 885,073
Class B........................................................... 531,293
Class C........................................................... 160,444
Dividend Reinvested................................................. 6,422
Class A........................................................... 3,566
Class B........................................................... 2,188
Class C........................................................... 668
Cost of Shares Redeemed............................................. (38,329)
Class A........................................................... 34,525
Class B........................................................... 3,804
Class C........................................................... 0
Increase in Net Assets (resulting from capital share transactions).. 1,544,903
----------
Total Increase in Net Assets........................................ 1,529,663
==========
Net Assets:
Beginning of Period................................................. -----
End of Period....................................................... $1,529,663
==========
</TABLE>
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31,
1999. The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 20
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended December 31, 1999 (A)
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS (cont.)
- ---------------------------------------------------------------------------
period ended
Dec. 31, 1999 (A)
- ---------------------------------------------------------------------------
<S> <C>
Shares of Capital Stock of The Fund Sold and Redeemed:
Shares Sold:
Class A................................................ 90,654
Class B................................................ 56,227
Class C................................................ 16,260
Shares Reinvested:
Class A................................................ 375
Class B................................................ 234
Class C................................................ 71
Shares Redeemed:
Class A................................................ (3,623)
Class B................................................ (404)
Class C................................................ ---
-------
Net Increase in Number of Shares Outstanding............. 159,794
=======
</TABLE>
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31,
1999. The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 21
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE/MID-CAP VALUE FUND - CLASSES A, B & C
- ---------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
period ended period ended period ended
12/31/99 (A) 12/31/99 (B) 12/31/99 (C)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning.................... $ 10.00 $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income....................... 0.02 0.02 ---
Net Realized and Unrealized Gain
(Loss) on Investments...................... (0.30) (0.62) (0.21)
-------- -------- --------
Total from Investment Operations.............. (0.28) (0.60) (0.21)
-------- -------- --------
Less Distributions:
Dividends from Realized Gains............... (0.02) (0.02) (0.02)
Dividend from Net Investment
Income..................................... (0.02) (0.02) (0.02)
-------- -------- --------
Total Distribution.......................... (0.04) (0.04) (0.04)
-------- -------- --------
Net Asset Value At End of Period.............. $ 9.68 $ 9.36 $ 9.75
======== ======== ========
Total Return.................................. (3.28)% (D) (4.78)% (E) (3.68)%
Ratios/Supplemental Data:
Net Assets, End of Period..................... $845,879 $524,605 $159,179
Ratio of Expenses to Average Net
Assets:
Before Reimbursement of Expenses
by Advisor (F)............................. 4.69% 5.87% 5.80%
After Reimbursement of Expenses
by Advisor (F)............................. 1.60% 2.35% 2.35%
Ratio of Net Investment Income to
Average Net Assets:
Before Reimbursement of Expenses
by Advisor (F)............................. (2.34)% (2.34)% (3.58)%
After Reimbursement of Expenses
by Advisor (F)............................. 0.75% 1.15% (0.13)%
Portfolio Turnover............................ 8.02% 8.02% 8.02%
</TABLE>
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31,
1999.
(B) For the Period July 15, 1999 (Commencement of Operations) to December 31,
1999.
(C) For the Period August 5, 1999 (Commencement of Operations) to December 31,
1999.
(D) Total Return Calculation Does Not Reflect Sales Load.
(E) Total Return Calculation Does Not Reflect Redemption Fees.
(F) Annualized.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 22
<PAGE>
THE TIMOTHY PLAN
fixed income fund
Timothy Plan Fixed Income Fund 1999 Annual Report - page 23
<PAGE>
INVESTMENT UPDATE YEAR-END REVIEW
December 31, 1999
FIXED INCOME FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Timothy Plan Fixed-Income Fund is designed to provide the safety and
income most investors seek, while conforming to the moral principles that
investors claim to be their guiding light. The managers of the fund use all
of the conventional measures of credit analysis, determine the nature and
direction of Federal Reserve policy and formulate a strategy that should
protect the investors assets and take advantage of the broad trends of
interest rate moves seen in the economy.
While there are always some risks inherent in any diversified portfolio,
notably price volatility due to market forces, changes in government policies
and credit risk issues, the managers have over forty years of experience on
Wall Street and have dealt with these problems with a large measure of
success. The policy of the funds is to first eliminate as much risk as
reasonably possible and then make decisions to reflect the best opportunities
and values as their judgment permits. Moral constraints should in no way
limit the opportunities for return or add to the investment risk.
Michael Carr
Carr & Associates, Inc.
Timothy Plan Fixed Income Fund 1999 Annual Report - page 24
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
BONDS - 76.44%
- ------------------------------------------------------------------------------------
par value market value
- ------------------------------------------------------------------------------------
<S> <C>
CORPORATE BONDS - 65.33%
$10,000 Allegiance Corp. 7.30% 10/15/2006..................... $ 9,910
30,000 Computer Science Corp. 6.25% 03/15/2009............... 27,438
40,000 CSX Transportation 7.33% 06/01/2005................... 39,696
20,000 Donaldson Lufkin Jenrette 5.875% 04/01/2002........... 19,424
30,000 Florida Power & Light 6.00% 06/01/2008................ 27,453
10,000 Household Finance 7.30% 07/30/2012.................... 9,503
30,000 National Rural Utilities 6.00% 01/15/2004............. 28,826
50,000 Pep Boys Manny Moe & Jack 7.00% 06/01/2005............ 45,934
11,000 Public Service Electric and Gas 6.25% 01/01/2007...... 10,276
40,000 TRW, Inc. 6.25% 01/15/2010............................ 35,344
25,000 US Leasing International 5.95% 10/15/2003............. 23,788
--------
277,592
--------
MUNICIPAL BONDS - 11.11%
50,000 Texas State University 6.41% 03/15/2009............... 47,209
--------
Total Bonds (cost $332,723)........................... 324,801
--------
SHORT-TERM INVESTMENTS - 30.95%
131,535 Firstar Bank Treasury Fund............................ 131,535
--------
Total Short-Term Investments (cost $131,535).......... 131,535
--------
TOTAL INVESTMENTS - 107.39% (identified cost $464,258) $456,336
--------
OTHER ASSETS AND LIABILITIES, NET - (7.39)%........... (31,361)
--------
NET ASSETS - 100%..................................... $424,975
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Timothy Plan Fixed Income Fund 1999 Annual Report - page 25
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of December 31, 1999
<TABLE>
<CAPTION>
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at Value (Cost $464,258).................................................................... $456,336
Receivables:
Interest............................................................................................... 6,073
Fund Shares Sold....................................................................................... 4,614
Due from Advisor......................................................................................... 13,667
Other Assets............................................................................................. 1,193
--------
Total Assets............................................................................................. $481,883
========
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------------------------------------------
Cash Overdraft........................................................................................... 1,595
Accrued Expenses......................................................................................... 6,949
Payables for Investments Purchased....................................................................... 48,179
Payable for Fund Shares Redeemed......................................................................... 75
Other Payable............................................................................................ 110
--------
Total Liabilities........................................................................................ $ 56,908
========
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 12,650 Shares Outstanding).. 124,062
Net Asset Value and Redemption Price Per Share (124,062/12,650 Shares)................................. 9.81
Offering Price Per Share ($9.81/0.9575)................................................................ 10.25
Class B Shares:
Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 24,808 Shares Outstanding).. 243,086
Net Asset Value and Offering Price Per Share (243,086/24,808 Shares)................................... 9.80
Redemption Price Per Share ($9.80 x 0.95).............................................................. 9.31
Class C Shares:
Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 5,927 Shares Outstanding)... 57,827
Net Asset Value, Offering and Redemption Price Per Share (57,827/5,927 Shares)......................... 9.76
--------
Net Assets............................................................................................... $424,975
========
SOURCES OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital........................................................................................ 433,165
Net Undistributed Investment Income.................................................................... 107
Net Unrealized Depreciation in Value of Investments.................................................... (7,922)
Accumulated Net Realized Loss on Investments........................................................... (375)
--------
Net Assets............................................................................................... $424,975
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Timothy Plan Fixed Income Fund 1999 Annual Report - page 26
<PAGE>
STATEMENT OF OPERATIONS
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
<S> <C>
Interest................................................................ $ 7,580
--------
Total Investment Income................................................. $ 7,580
--------
EXPENSES
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]....................................... 689
Transfer Agent Fees (Class A=$3,067, Class B=$1,878, Class C=$1,314).... 6,259
Administration Fees..................................................... 1,784
12b-1 Fees (Class A=$139, Class B=$343, Class C=$262)................... 744
Accounting Fees......................................................... 6,303
Out of pocket Fees...................................................... 145
Service Fees (Class A=$20, Class B=$39, Class C=$10).................... 69
Miscellaneous Expense................................................... 382
--------
Total Expenses.......................................................... $ 16,375
========
Expenses Waived and Reimbursed by Advisor [NOTE 3]...................... (14,356)
--------
Net Expenses............................................................ $ 2,019
========
Net Investment Income................................................... $ 5,561
========
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Net Realized Loss on Investments........................................ (375)
Change in Unrealized Depreciation of Investments........................ (7,922)
--------
Net Realized and Unrealized Loss on Investments......................... (8,297)
========
Decrease in Net Assets Resulting from Operations........................ $ (2,736)
</TABLE>
(A) For the Period July 14, 1999 (Commencement of Operations ) to December 31,
1999.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Fixed Income Fund 1999 Annual Report - page 27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------------------
period ended
Dec. 31, 1999 (A)
- -------------------------------------------------------------------------------------------
<S> <C>
Operations:
Net Investment Income $ 5,561
Net Change in Unrealized Depreciation of Investments.................... (7,922)
Net Realized Loss on Investments........................................ (375)
--------
Decrease in Net Assets (resulting from operations)...................... (2,736)
--------
Distributions to Shareholders:
Net Income.............................................................. (5,454)
--------
Class A............................................................... (1,608)
Class B............................................................... (3,093)
Class C............................................................... (753)
Total Net Decrease...................................................... (8,190)
--------
Capital Share Transactions:
Proceeds from Shares Sold............................................... 507,531
Class A............................................................... 203,065
Class B............................................................... 245,990
Class C............................................................... 58,476
Dividend Reinvested..................................................... 5,454
Class A............................................................... 1,608
Class B............................................................... 3,093
Class C............................................................... 753
Cost of Shares Redeemed................................................. (79,820)
Class A............................................................... 78,042
Class B............................................................... 1,778
Class C............................................................... 0
Increase in Net Assets (resulting from capital share transactions)...... $433,165
--------
Total Increase in Net Assets............................................ $424,975
========
Net Assets:
Beginning of Period..................................................... ---
End of Period (Including Undistributed Net Investment Income of $1.07).. $424,975
========
Shares of Capital Stock of The Fund Sold and Redeemed:
Shares Sold:
Class A............................................................... 20,270
Class B............................................................... 24,671
Class C............................................................... 5,850
Shares Reinvested:
Class A............................................................... 163
Class B............................................................... 316
Class C............................................................... 77
Shares Redeemed:
Class A............................................................... (7,783)
Class B............................................................... (179)
Class C............................................................... 0
--------
Net Increase in Number of Shares Outstanding............................ $ 43,385
========
</TABLE>
Timothy Plan Fixed Income Fund 1999 Annual Report - page 28
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FIXED INCOME FUND - CLASSES A, B & C
- --------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
period ended period ended period ended
12/31/99 (A) 12/31/99 (B) 12/31/99 (C)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning................................ $ 10.00 $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income................................... 0.12 0.15 0.09
Net Realized and Unrealized Gain (Loss) on Investments.. (0.18) (0.22) (0.20)
-------- -------- -------
Total from Investment Operations........................ (0.06) (0.07) (0.11)
-------- -------- -------
Less Distributions:
Dividend from Net Investment Income..................... (0.13) (0.13) (0.13)
-------- -------- -------
Total Distribution...................................... (0.13) (0.13) (0.13)
-------- -------- -------
Net Asset Value At End of Period.......................... $ 9.81 $ 9.80 $ 9.76
======== ======== =======
Total Return.............................................. (0.42)% (D) (0.92)% (E) (1.01)%
Ratios/Supplemental Data:
Net Assets, End of Period................................. $124,062 $243,086 $57,827
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (F)......... 13.92% 14.73% 13.77%
After Reimbursement of Expenses by Advisor (F).......... 1.35% 2.10% 2.10%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (F)......... (9.88)% (2.20)% (9.78)%
After Reimbursement of Expenses by Advisor (F).......... 2.70% 10.42% 1.88%
Portfolio Turnover........................................ 21.25% 21.25% 21.25%
</TABLE>
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31,
1999.
(B) For the Period August 5, 1999 (Commencement of Operations) to December 31,
1999.
(C) For the Period July 20, 1999 (Commencement of Operations) to December 31,
1999.
(D) Total Return Calculation Does Not Reflect Sales Load.
(E) Total Return Calculation Does Not Reflect Redemption Fees.
(F) Annualized.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Money Fund 1999 Annual Report - page 29
<PAGE>
THE TIMOTHY PLAN
money market fund
Timothy Plan Money Fund 1999 Annual Report - page 30
<PAGE>
INVESTMENT UPDATE YEAR-END REVIEW
December 31, 1999
MONEY MARKET FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Timothy Plan Money-Market Fund contains only those issues that have the
highest ratings or guarantees and conform to the rules that govern money-
market investments. The low costs of the fund and the policy of risk
avoidance make this fund appropriate for the most conservative investors
seeking liquidity and a moderate return.
In an uncertain investment climate, or when funds are needed for the
immediate future, the Money Market Fund is an ideal and very appropriate
vehicle. There should be no fluctuation in the day-to-day value of your
investment, with a goal to provide an inflation-beating current yield that
build for you every day. Whether this is a core investment for emergencies
or a temporary refuge from other securities markets, our strategy is to give
you the safety and income you desire to protect your well being.
Michael Carr
Carr & Associates, Inc.
Timothy Plan Money Fund 1999 Annual Report - page 31
<PAGE>
SCHEDULE OF INVESTMENTS
As of December 31, 1999
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENTS - 97.47%
- --------------------------------------------------------------------------------------
par value market value
- --------------------------------------------------------------------------------------
<S> <C>
Federal Home Loan Bank - 71.25%
$150,000 FHLB Discount Note 5.616% 05/19/2000................. $146,839
100,000 FHLB Discount Note 5.625% 04/28/00................... 98,200
100,000 FHLB Discount Note 5.634% 03/10/00................... 98,932
100,000 FHLB Discount Note 5.412% 02/08/00................... 99,426
100,000 FHLB Discount Note 5.607% 04/24/00................... 98,265
--------
541,662
--------
Freddie Home Loan Mortgage Corp. - 26.22%
25,000 FMC Discount Note 5.406% 03/02/00.................... 24,773
25,000 FMC Discount Note 5.324% 02/03/00.................... 24,877
25,000 FMC Discount Note 5.433% 01/28/00.................... 24,896
25,000 FMC Discount Note 5.263% 01/27/00.................... 24,903
100,000 FMC Discount Note 5.115% 01/12/00.................... 99,832
--------
199,281
--------
TOTAL INVESTMENTS - 97.47% (identified cost $740,943) $740,943
--------
OTHER ASSETS AND LIABILITIES, NET - 2.53%............ $ 19,241
--------
NET ASSETS - 100%.................................... $760,184
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Timothy Plan Money Fund 1999 Annual Report - page 32
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
As of December 31, 1999
<TABLE>
<CAPTION>
ASSETS
- ------------------------------------------------------------------------------------------------
amount
- ------------------------------------------------------------------------------------------------
<S> <C>
Investments, At Value (cost $740,943).............................................. $740,943
Receivables:
Interest......................................................................... 443
Fund Shares Sold................................................................. 45,498
Due from Advisor................................................................... 5,781
Due from Administrator............................................................. 1,271
--------
Total Assets....................................................................... $793,936
========
LIABILITIES
- ------------------------------------------------------------------------------------------------
amount
- ------------------------------------------------------------------------------------------------
Cash Overdraft..................................................................... $ 26,950
Income Distribution Payable........................................................ 345
Payable for Fund Shares Redeemed................................................... 5,000
Accrued Expenses................................................................... 1,457
--------
Total Liabilities.................................................................. $ 33,752
--------
NET ASSETS
- ------------------------------------------------------------------------------------------------
amount
- ------------------------------------------------------------------------------------------------
Shares of Capital Stock Outstanding (par value .001, unlimited shares authorized).. 760,184
Net Asset Value, Offering and Redemption Price Per Share (760,184/760,184 Shares).. 1.00
Net Assets......................................................................... $760,184
========
SOURCES OF NET ASSETS
- ------------------------------------------------------------------------------------------------
amount
- ------------------------------------------------------------------------------------------------
At December 31, 1999, Net Assets Consisted of:
Paid-in Capital.................................................................... 760,184
--------
Net Assets......................................................................... $760,184
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Timothy Plan Money Fund 1999 Annual Report - page 33
<PAGE>
STATEMENT OF OPERATIONS
For the Period Ended December 31, 1999 (A)
<TABLE>
<CAPTION>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
<S> <C>
Interest.......................................................... $8,219
------
Total Investment Income........................................... $8,219
------
EXPENSES
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Investment Advisory Fees [NOTE 3]................................. 973
Administration Fees............................................... 1,742
Transfer Agent Fees............................................... 2,905
Accounting Fees................................................... 3,484
Miscellaneous Expense............................................. 313
-------
Total Expenses.................................................... $ 9,417
-------
Expenses Waived and Reimbursement by Advisor [NOTE 3]............. (8,025)
-------
Net Expenses...................................................... $ 1,392
-------
Net Investment Income............................................. $ 6,827
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- -----------------------------------------------------------------------------------------
amount
- -----------------------------------------------------------------------------------------
Increase in Net Assets Resulting from Operations.................. $6,827
======
</TABLE>
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31,
1999.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Money Market Fund 1999 Annual Report - page 34
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended December 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
- -----------------------------------------------------------------------------------------
period ended
Dec. 31, 1999
(A)
- -----------------------------------------------------------------------------------------
<S> <C>
Operations:
Net Investment Income................................................. $ 6,827
----------
Increase in Net Assets (resulting from operations).................... 6,827
----------
Distributions to Shareholders:
Net Income............................................................ (6,827)
----------
Capital Share Transactions:
Proceeds from Shares Sold............................................. 1,049,384
Dividend Reinvested................................................... 6,827
Cost of Shares Redeemed............................................... (296,027)
Increase in Net Assets (resulting from capital share transactions).... 760,184
----------
Total Increase in Net Assets.......................................... 760,184
==========
Net Assets:
Beginning of Period................................................... 0
End of Period......................................................... $ 760,184
==========
Shares of Capital Stock of The Fund Sold and Redeemed:
Shares Sold........................................................... 1,049,384
Shares Reinvested..................................................... 6,827
Shares Redeemed....................................................... (296,027)
Net Increase in Number of Shares Outstanding.......................... $ 760,184
==========
</TABLE>
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31,
1999.
The accompanying notes are an integral part of these financial statements.
Timothy Plan Money Market Fund 1999 Annual Report - page 35
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND - CLASS A
- --------------------------------------------------------------------------------
period ended
Dec. 31, 1999 (A)
- --------------------------------------------------------------------------------
<S> <C>
Per Share Operating Performance:
Net Asset Value, Beginning.............................. $ 1.00
Income from Investment Operations:
Net Investment Income................................... 0.02
Net Realized and Unrealized Gain (Loss) on Investments.. 0.00
--------
Total from Investment Operations 0.02
--------
Less Distributions:
Dividend from Net Investment Income..................... (0.02)
--------
Total Distribution...................................... (0.02)
--------
Net Asset Value At End of Period........................ $ 1.00
========
Total Return (B)........................................ 1.78%
Ratios/Supplemental Data:
Net Assets, End of Period............................... $760,184
Ratio of Expenses to Average Net Assets:
Before Reimbursement of Expenses by Advisor (C)....... 5.75%
After Reimbursement of Expenses by Advisor (C) 0.85%
Ratio of Net Investment Income to Average Net Assets:
Before Reimbursement of Expenses by Advisor (C)....... (0.73)%
After Reimbursement of Expenses by Advisor (C) 4.17%
</TABLE>
(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.
Timothy Plan Money Market Fund 1999 Annual Report - page 36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
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
December 31, 1999
TIMOTHY PLAN FAMILY OF FUNDS (cont.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
D. Organization Costs.
Organization costs of The Timothy Plan Small-Cap Value Fund are being
amortized on a straight-line basis over five years from inception.
E. 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.
F. 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 December 31, 1999:
funds purchases sales
Small-Cap Value Fund $15,022,115 $18,919,256
Large/Mid-Cap Value Fund $ 1,469,194 $ 68,842
Fixed Income Fund $ 375,531 $ 42,919
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 1.60%, 1.60% and 1.35% with respect to Class A, and 2.35%, 2.35%
and 2.10%, with respect to Classes B and C, of the Fund's average daily net
assets for the Small-Cap Value, Large/Mid-Cap Value and Fixed Income Funds,
respectively; 0.85% with regards to the Money Market Fund. For the period
ended December 31, 1999, TPL reimbursed the Funds as follows:
funds reimbursements
Small-Cap Value Fund $129,595
Large/Mid-Cap Value Fund $ 12,527
Fixed Income Fund $ 14,206
Money Market Fund $ 8,025
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
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
periods ended December 31, 1999, the Funds reimbursed TPL $164,988, $2,035
and $813, respectively, for distribution costs incurred.
Note 4 - Unrealized Appreciation (Depreciation)
At December 31, 1999, the cost for federal income tax purposes is and the
composition of gross unrealized appreciation (depreciation) of investment
securities is as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
funds cost appreciation depreciation net app. (dep.)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Small-Cap Value Fund $22,215,871 $6,315,406 ($935,770) $5,379,636
Large/Mid-Cap Value Fund 1,483,221 64,502 (64,942) (440)
Fixed Income Fund 464,258 0 (7,922) (7,922)
</TABLE>
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTS
February 25, 2000
TIMOTHY PLAN FAMILY OF FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
The Timothy Plan
Winter Park, Florida
We have audited the accompanying statement of assets and liabilities of The
Timothy Plan (comprising, respectively, the Timothy Plan Large/Mid Cap Value
Fund, The Timothy Plan Small-Cap Value Fund, The Timothy Plan Fixed Income
Fund and The Timothy Plan Money Market Fund), including the portfolios of
investments as of December 31, 1999, and the related statements of operations
for the periods then ended, the changes in net assets and the financial
highlights for the periods indicated thereon. These financial statements and
financial highlights are the responsibility of the Funds' 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 audit 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 December 31, 1999, by correspondence with the
custodian and brokers. 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
audit provides 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 The
Timothy Plan as of December 31, 1999, the results of its operations for the
periods then ended, and the changes in its net assets and the financial
highlights for the periods indicated thereon, in conformity with generally
accepted accounting principles.
/s/ Tait, Weller & Baker
Tait, Weller & Baker
Philadelphia, Pennsylvania
February 25, 2000
<PAGE>
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.
[LOGO OF THE TIMOTHY PLAN APPEARS HERE]
Family of Funds
ANNUAL REPORT
December 31, 1999