SEMI-ANNUAL REPORT
APRIL 30, 2000
HAVEN CAPITAL MANAGEMENT, INC.
Investment Adviser
------
THE
HAVEN
FUND
------
(PHOTO)
<PAGE>
LETTER TO INVESTORS
April 2000
-----
THE
HAVEN
FUND
-----
Dear Shareholder:
For the fiscal half-year ended April 30, 2000 your Fund's total return was
+21.7%1, vs. +7.2% for the Standard & Poor's 500/TM Stock Index<F2> and +2.3%
for the Lipper Multi-Cap Value Funds Index<F3>, the Lipper Analytical category
to which the Fund compares itself. Morningstar, Inc. classifies the Fund as a
"mid-cap blend" fund and it ranked in the second quartile for the twelve months
ended April 30, 2000<F4>. Extended performance data can be found on pages 3
and 4.
One year ago we wrote that the late 1990's were likely to prove unusual times
in the history of the stock market because the S&P 500R Index was being driven
to successive new highs by a handful of its component stocks (2%) while most
stocks languished. Then attention shifted to the Nasdaq stock market, which
had an extraordinary rise of 75% from September 10, 1999 to March 10, 2000,
likewise driven primarily by a handful of "technology" stocks. The "New"
economy was considered in and the "Old" was out.
There was a climax in March when the Nasdaq peaked and the shares of good,
solid, growing companies were sold wholesale; their day was considered as over.
Then from March 10th until May 10th the Nasdaq Index fell 33%, leaving it only
17% ahead of where it was in September. The French have a saying, "Other times,
other habits." In a sudden shift of sentiment investors started to wake up to
the fact that many of the stocks that had led the indexes upward were very
highly, if not excessively, valued. At the same time there was a growing
realization that solid, growing companies (the current jargon is "legacy
companies") had become undervalued. We wrote in last year's Annual Report that
the "technology bubble" had yet to deflate but when it did investing for value
would come back into its own. The deflation has been under way now for two
months. We continue to believe, as ever, that "value" matters and may provide
competitive returns while attempting to diminish risks.
The Fund's best performing stocks for the period were Amdocs, Ltd., a small
company but global leader in customer care and billing for telecommunications
companies [the shares were sold in the midst of the technology mania]; Andrew
Corp., a supplier of infrastructure to the global cellular telephone industry;
EMC Corp./Mass., the world leader in computer storage devices; Hewlett-Packard
Co., another technology leader; and Molex, Inc., a global supplier of
electrical and electronic connectors<F5>.
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
Our worst performing stocks were Armstrong World Holdings, Inc., a maker of
solid flooring [the shares were sold]; Newell Rubbermaid, Inc., maker of a
multitude of consumer products; du Pont (E.I.) de Nemours & Co., the chemical
giant; Masco Corp., primarily a manufacturer of plumbing fixtures; and Valeo
SA, a French-based multinational auto parts company<F5>.
We continue to be optimistic about the long-term prospects for the stocks we
hold.
Your continued support is much appreciated.
Sincerely,
/S/Colin C. Ferenbach
Colin C. Ferenbach
President
<F1> Past performance is no guarantee of future results. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
<F2> The S&P 500R Index is an unmanaged index of 500 selected common stocks,
most of which are listed on the New York Stock Exchange. The Index is
heavily weighted toward stocks with large market capitalizations and
represents approximately two-thirds of the total market value of all
domestic common stocks.
<F3> The Lipper Multi-Cap Value Funds Index includes funds that, by portfolio
practice, have between 25% to 75% of their assets invested in companies
with market capitalizations (on a three-year weighted basis) above 300%
of the dollar-weighted median market capitalization of the S&P MidCap 400
Index.
<F4> Morningstar, Inc. defines the mid-cap blend category as including funds
that contain growth stocks and value stocks or stocks that exhibit both
characteristics. The top 5% of the 5000 largest domestic stocks in
Morningstar's equity database are classified as large-cap, the next 15%
of the 5000 are classified as mid-cap. The Haven Fund ranked in the second
quartile of 232 funds in the mid-cap blend category for the one year
period ended April 30, 2000; it ranked in the second quartile for the five
year and ten year periods ended April 30, 2000 with 111 and 44 funds
included in the category, respectively.
<F5> As of April 30, 2000, Amdocs, Ltd. comprised 0.0% of the Fund; Andrew
Corp. comprised 2.2% of the Fund; EMC Corp./Mass. comprised 10.2% of the
Fund; Hewlett-Packard Co. comprised 3.3% of the Fund; Molex, Inc.
comprised 2.7% of the Fund; Armstrong World Holdings, Inc. comprised
0.0% of the Fund; Newell Rubbermaid, Inc. comprised 1.8% of the Fund;
du Pont (E.I.) de Nemours & Co. comprised 1.2% of the Fund; Masco Corp.
comprised 1.6% of the Fund; and Valeo SA comprised 2.0% of the Fund.
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
The chart below assumes an initial gross investment of $10,000 made on June 27,
1984 and shows how the Fund and its predecessor have performed. The Fund began
operations on June 23, 1994. Results for the period prior to that date reflect
the performance of HCM Partners, L.P., a limited partnership that was managed by
Haven Capital Management, Inc., the Fund's investment adviser, from 1984 to
1994. On June 23, 1994 the Fund acquired the assets of the Partnership in
exchange for shares of the Fund. Although the Partnership was managed by the
same individuals who manage the Fund, and the Fund is managed in a manner that
is in all material respects equivalent to the management of the Partnership, the
information below should not be viewed as an indication of the future
performance of the Fund. It includes information regarding the Partnership's
operations for periods before the Fund's registration statement became
effective. The Partnership was not registered under the Investment Company Act
of 1940 and therefore was not subject to certain investment restrictions that
are imposed by that Act. If the Partner ship had been registered, its
performance might have been adversely affected. In addition, the expenses borne
by the Fund are higher than those borne by the Partnership.
GROWTH OF A $10,000 INVESTMENT
FOR THE FUND AND THE PARTNERSHIP
Lipper
S&P 500/R Multi-Cap THE Wilshire
Stock Value Funds HAVEN 4500
Index Index FUND Index
-------------------------------------------------------------------------------
6/27
1984 10,000 10,000 10,000 10,000
-------------------------------------------------------------------------------
10/31
1984 11,007 11,110 10,707 10,808
-------------------------------------------------------------------------------
10/31
1985 13,119 13,020 13,463 13,019
-------------------------------------------------------------------------------
10/31
1986 17,460 16,406 16,856 16,505
-------------------------------------------------------------------------------
10/31
1987 18,585 17,066 15,972 15,301
-------------------------------------------------------------------------------
10/31
1988 21,348 20,315 18,552 18,478
-------------------------------------------------------------------------------
10/31
1989 26,959 24,508 21,485 22,696
-------------------------------------------------------------------------------
10/31
1990 24,969 21,305 20,000 17,935
-------------------------------------------------------------------------------
10/31
1991 33,289 27,999 27,069 27,058
-------------------------------------------------------------------------------
10/31
1992 36,601 30,838 30,495 29,520
-------------------------------------------------------------------------------
10/31
1993 42,069 36,959 35,619 36,871
-------------------------------------------------------------------------------
10/31
1994 43,698 38,360 37,631 36,934
-------------------------------------------------------------------------------
10/31
1995 55,251 46,071 42,768 45,340
-------------------------------------------------------------------------------
10/31
1996 68,522 55,538 54,853 53,333
-------------------------------------------------------------------------------
10/31
1997 90,525 71,794 68,512 68,789
-------------------------------------------------------------------------------
10/31
1998 110,432 75,247 68,703 66,471
-------------------------------------------------------------------------------
10/31
1999 138,812 82,689 77,152 84,086
-------------------------------------------------------------------------------
4/28
2000 149,765 84,583 93,885 100,222
-------------------------------------------------------------------------------
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN OF THE FUND
FOR THE PERIODS
------------------------------------------------------------------------------------------------------------
One Year Five Year Since Inception<F1>
3/31/00 4/30/00 3/31/00 4/30/00 3/31/00 4/30/00
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
The Haven Fund 26.1% 19.0% 18.8% 18.9% 18.2% 18.2%
------------------------------------------------------------------------------------------------------------
S&P 500/R Stock Index 17.9% 10.2% 26.7% 24.1% 25.9% 24.9%
------------------------------------------------------------------------------------------------------------
Lipper Multi-Cap Value Funds Index 5.4% -3.4% 16.1% 15.4% 15.5% 15.2%
------------------------------------------------------------------------------------------------------------
Wilshire 4500 Index 49.2% 21.4% 24.2% 20.7% 22.5% 19.4%
------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> June 23, 1994
<TABLE>
--------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN OF THE FUND AND PARTNERSHIP
FOR THE PERIODS
--------------------------------------------------------------------------------------------------------------------
One Year Five Year Ten Year Since Inception<F1>
3/31/00 4/30/00 3/31/00 4/30/00 3/31/00 4/30/00 3/31/00 4/30/00
<S> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------
The Haven Fund 26.1% 19.0% 18.8% 18.9% 15.3% 15.7% 15.1% 15.2%
--------------------------------------------------------------------------------------------------------------------
S&P 500/R
Stock Index 17.9% 10.2% 26.7% 24.1% 18.8% 18.8% 18.9% 18.6%
--------------------------------------------------------------------------------------------------------------------
Lipper Multi-Cap
Value Funds Index 5.4% -3.4% 16.1% 15.4% 13.4% 13.7% 14.5% 14.4%
--------------------------------------------------------------------------------------------------------------------
Wilshire 4500 Index 49.2% 21.4% 24.2% 20.7% 17.8% 16.8% 16.9% 15.8%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> June 27, 1984
Total return calculations reflect fee waivers in effect for 1995 and 1994. In
the absence of fee waivers, total return performance would be reduced. Total
return is based on net change in NAV assuming reinvestment of distributions.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. Past performance is no guarantee of future results.
The S&P 500 Stock Index is an unmanaged index of 500 selected common stocks,
most of which are listed on the New York Stock Exchange. The index is heavily
weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks.
The Lipper Multi-Cap Value Funds Index includes funds that, by portfolio
practice, have between 25% to 75% of their assets invested in companies with
market capitalizations (on a three-year weighted basis) above 300% of the
dollar-weighted median market capitalization of the S&P MidCap 400 Index.
The Wilshire 4500 Index is an unmanaged index of all U.S. equity securities with
readily available price data that are not included in the S&P 500.
A direct investment in either the S&P 500 Stock Index, the Lipper Multi-Cap
Value Funds Index or the Wilshire 4500 Index is not possible.
Sunstone Distribution Services, LLC, Distributor
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
-------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
Number
of Shares Value
-------------------------------------------------------------------------------
COMMON STOCKS 95.28%
AUTO PARTS 2.03%
30,000 Valeo SA - ADR (FR) $1,667,592
----------
BANKS 11.15%
47,381 Commerce Bancorp, Inc./NJ 1,880,433
10,000 Credit Commercial de France (FR) 1,427,934
50,000 Mercantile Bankshares Corp. 1,425,000
75,000 National Commerce Bancorp 1,232,812
25,000 Wachovia Corp. 1,567,188
35,000 Wilmington Trust Corp. 1,614,375
----------
9,147,742
----------
BUILDING & HOUSING 2.97%
60,000 Masco Corp. 1,346,250
60,000 Owens Corning 1,091,250
----------
2,437,500
----------
CHEMICALS 2.24%
20,000 du Pont (E.I.) de Nemours & Co. 948,750
20,000 Praxair, Inc. 888,750
----------
1,837,500
----------
CONSUMER NON-DURABLES 3.65%
30,000 Kimberly-Clark Corp. 1,741,875
60,000 Rayovac Corp. 1,252,500
----------
2,994,375
----------
DRUG & HOSPITAL SUPPLIES 11.28%
35,000 Bristol-Myers Squibb Co. 1,835,312
50,000 Elan Corp. plc - ADR (IRL)<F1> 2,143,750
30,000 Johnson & Johnson 2,475,000
35,000 Stryker Corp. 2,515,625
20,000 VaxGen, Inc.<F1> 281,250
----------
9,250,937
----------
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (cont'd.)
--------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
Number
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS 95.28% (cont'd.)
ELECTRICAL EQUIPMENT 1.59%
30,000 Grainger (W.W.), Inc. $1,301,250
----------
FURNISHINGS & APPLIANCES 1.96%
75,000 Leggett & Platt, Inc. 1,603,125
----------
INFORMATION TECHNOLOGY 18.27%
35,000 Dell Computer Corp<F1> 1,754,375
60,000 EMC Corp./Mass.<F1> 8,336,250
20,000 Hewlett-Packard Co. 2,700,000
40,000 Molex, Inc. 2,197,500
----------
14,988,125
----------
INSURANCE 2.32%
40,000 XL Capital Ltd. 1,905,000
----------
MACHINERY 3.20%
100,000 CNH Global NV - (NETH) 1,350,000
25,000 Dover Corp. 1,270,312
----------
2,620,312
----------
MISCELLANEOUS INDUSTRIALS 6.00%
25,000 Avery Dennison Corp. 1,640,625
60,000 Delta & Pine Land Co. 1,260,000
70,000 Diebold, Inc. 2,021,250
----------
4,921,875
----------
OIL - DOMESTIC/INTERNATIONAL 12.48%
30,000 Anadarko Petroleum Corp. 1,303,125
65,000 Conoco, Inc. 1,616,875
40,000 Devon Energy Corp. 1,927,500
140,000 Ocean Energy, Inc.<F1> 1,811,250
36,000 Royal Dutch Petroleum Co. - (NETH) 2,065,500
20,000 Total Fina Elf SA - ADR (FR) 1,512,500
----------
10,236,750
----------
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (cont'd.)
--------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
Number
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS 95.28% (cont'd.)
OIL WELL EQUIPMENT & SERVICES 2.33%
25,000 Schlumberger, Ltd. $1,914,063
----------
REAL ESTATE INVESTMENT TRUSTS 2.40%
60,000 General Growth Properties, Inc. 1,972,500
----------
RETAILING 3.37%
100,000 Borders Group, Inc.<F1> 1,587,500
20,000 Circuit City Stores - Circuit City Group 1,176,250
----------
2,763,750
----------
RUBBER & PLASTIC 1.84%
60,000 Newell Rubbermaid, Inc. 1,511,250
----------
TELECOMMUNICATIONS 2.15%
60,000 Andrew Corp.<F1> 1,766,250
----------
TRANSPORTATION 4.05%
60,865 TNT Post Group NV - ADR (NETH) 1,331,422
30,000 United Parcel Service, Inc. 1,995,000
----------
3,326,422
----------
Total Common Stocks
(cost $49,338,633) 78,166,318
----------
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
-------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (cont'd.)
-------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
Par (000)/Shares Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER 6.09%
$ 2,000 American Express Credit Corp.,
6.02%, 5/3/00 $1,999,331
3,000 Daimler Chrysler Holdings Corp.,
6.00%, 5/4/00 2,998,500
-----------
(cost $4,997,831) 4,997,831
-----------
SHORT-TERM INVESTMENT 0.67%
547,064 Temporary Investment Fund
(cost $547,064) 547,064
-----------
TOTAL INVESTMENTS 102.04%
(cost $54,883,528) $83,711,213
-----------
Liabilities in Excess of Other Assets (2.04)% (1,675,058)
-----------
Net Assets applicable to 4,945,336 Shares of Common
Stock issued and outstanding 100.00% $82,036,155
===========
Net Asset Value, offering and redemption price
per share ($82,036,155 / 4,945,336) $16.59
===========
The aggregate unrealized appreciation (depreciation) on a tax
basis is as follows:
Gross appreciation........ $29,705,360
Gross depreciation........ (877,675)
---------------
Net appreciation.......... $28,827,685<F2>
===============
<F1> Non-income producing securities.
<F2> Also cost for federal income tax purposes.
ADR American Depositary Receipt
COUNTRY ABBREVIATIONS
(FR) - France
(IRL) - Ireland
(NETH) - Netherlands
See Notes to Financial Statements.
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
-------------------------------------------------------------------------------
TOP TEN STOCK HOLDINGS (Unaudited)
-------------------------------------------------------------------------------
------------------------------------------
34.7% of the Fund
------------------------------------------
EMC Corp. 10.2%
------------------------------------------
Hewlett-Packard Co. 3.3%
------------------------------------------
Stryker Corp. 3.1%
------------------------------------------
Johnson & Johnson 3.0%
------------------------------------------
Molex, Inc. 2.7%
------------------------------------------
Elan Corp. plc 2.6%
------------------------------------------
Royal Dutch Petroleum Co. 2.5%
------------------------------------------
Diebold, Inc. 2.5%
------------------------------------------
United Parcel Service, Inc. 2.4%
------------------------------------------
General Growth Properties, Inc. 2.4%
------------------------------------------
TOTAL 34.7%
------------------------------------------
-------------------------------------------------------------------------------
PERCENT OF TOTAL EQUITIES (Unaudited)
-------------------------------------------------------------------------------
BY COUNTRY
United States 85.3%
France 5.9%
Netherlands 6.1%
Ireland 2.7%
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $3,060) $470,243
Interest 137,265
------------------------------------------------------------------------------
Total Investment Income 607,508
------------------------------------------------------------------------------
OPERATING EXPENSES:
Investment advisory fees 225,861
Distribution fees 72,953
Administration and accounting fees 49,726
Transfer agent fees 22,781
Trustees' fees and expenses 14,638
Custodian fees 13,418
Legal fees 13,357
Audit fees 13,129
Printing fees 9,904
Insurance fees 9,245
Blue Sky fees 7,947
Miscellaneous expenses 2,370
------------------------------------------------------------------------------
Total Expenses 455,329
------------------------------------------------------------------------------
Net Investment Income 152,179
------------------------------------------------------------------------------
NET REALIZED GAIN FROM:
Investments 9,513,021
Foreign currency transactions 120
NET INCREASE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments 5,290,301
Translation of assets and liabilities in foreign currency (816)
------------------------------------------------------------------------------
Net realized and unrealized gain from
investments and foreign currency 14,802,626
-----------------------------------------------------------------------------
Net increase in net assets resulting from operations $14,954,805
==============================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $152,179 $151,259
Net realized gain on investment and foreign
currency transactions 9,513,141 4,141,826
Net change in unrealized appreciation on
investments and translation of other assets and
liabilities denominated in foreign
currencies 5,289,485 4,700,578
-------------------------------------------------------------------------------
Net increase in net assets from operations 14,954,805 8,993,663
-------------------------------------------------------------------------------
DIVIDENDS PAID TO SHAREHOLDERS:
From net investment income (112,277) (259,378)
From net realized gains (4,138,179) (8,050,675)
--------------------------------------------------------------------------------
Total dividends paid to shareholders (4,250,456) (8,310,053)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 540,137 914,707
Value of shares issued in reinvestment
of dividends 2,715,258 5,984,763
Cost of shares redeemed (3,991,818) (13,205,150)
--------------------------------------------------------------------------------
Decrease in net assets from
capital share transactions (736,423) (6,305,680)
--------------------------------------------------------------------------------
Total increase (decrease) in net assets 9,967,926 (5,622,070)
--------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 72,068,229 77,690,299
--------------------------------------------------------------------------------
End of period $82,036,155 $72,068,229
================================================================================
See Notes to Financial Statements.
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
APRIL 30, ENDED ENDED ENDED ENDED ENDED
(For a Share Outstanding 2000 OCT. 31, OCT. 31, OCT. 31, OCT. 31, OCT. 31
Throughout each Period) (UNAUDITED) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $14.42 $14.29 $15.83 $14.04 $11.67 $10.65
---------------------------------------------------------------------------------------------------------
INCREASE FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.03 0.08 0.06 0.08 0.12
Net realized and unrealized
gain (loss) on investment
and foreign currency transactions 3.01 1.64 (0.02) 3.13 3.07 1.28
---------------------------------------------------------------------------------------------------------
Total from investment operations 3.04 1.67 0.06 3.19 3.15 1.40
LESS DISTRIBUTIONS:
Dividends paid to shareholders:
From net investment income (0.02) (0.05) (0.08) (0.05) (0.08) (0.15)
From net realized gains (0.85) (1.49) (1.52) (1.35) (0.70) (0.23)
---------------------------------------------------------------------------------------------------------
Total distributions
to shareholders (0.87) (1.54) (1.60) (1.40) (0.78) (0.38)
NET ASSET VALUE, END OF PERIOD $16.59 $14.42 $14.29 $15.83 $14.04 $11.67
=========================================================================================================
TOTAL RETURN 21.68%<F3> 12.29% 0.29% 24.90% 28.25% 13.65%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (in 000s) $82,036 $72,068 $77,690 $84,769 $67,096 $55,579
Ratios of expenses to average
net assets 1.21%<F2> 1.34% 1.26% 1.33% 1.59% 1.53%<F1>
Ratios of net investment income
to average net assets 0.40%<F2> 0.20% 0.50% 0.78% 0.58% 1.14%<F1>
Portfolio turnover rate 43% 31% 59% 57% 67% 77%
----------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Without fee waivers, the ratio of expenses to average daily net assets
would have been 1.59% and the ratio of net investment income to average
daily net assets would have been 1.08% for the year ended October 31,
1995.
<F2> Annualized.
<F3> Not Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
1. ORGANIZATION AND BUSINESS
The Haven Capital Management Trust (the "Trust") is an investment company
registered under the Investment Company Act of 1940, as amended. It is
organized as a Delaware business trust and is an open-ended, diversified,
management, series investment company which currently consists of The
Haven Fund (the "Fund").
2. SIGNIFICANT ACCOUNTING POLICIES
a) PORTFOLIO VALUATION: Securities for which market quotations are readily
available are valued at market value, which is determined by using the last
reported sale price, or if no sales are reported, and in the case of certain
securities traded over-the-counter, the mean between the last reported bid and
asked prices. Short-term obligations having remaining maturities of 60 days or
less are valued at either amortized cost or original cost plus accrued interest
receivable, both of which approximate market value. All other securities and
assets, including any restricted and/or illiquid securities, will be valued at
their fair market value as determined pursuant to procedures adopted by the
Trustees.
b) FOREIGN CURRENCY TRANSACTIONS: Transactions denominated in foreign
currencies are recorded in the Fund's records at the current prevailing exchange
rate. Asset and liability accounts that are denominated in a foreign currency
are adjusted to reflect the current exchange rate at the end of the period.
Transaction gains or losses resulting from changes in the exchange rate during
the reporting period or upon settlement of the foreign currency transaction are
reported in operations for the current period. Foreign security and currency
transactions may involve certain considerations and risks not typically
associated with those of U.S. dollar-denominated transactions.
c) SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
recorded on trade-date. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on an accrual
basis.
Realized gains or losses on sales of investments are determined on the
identified cost basis for financial reporting and income tax purposes.
d) DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income are
declared and paid semi-annually. Any net realized capital gains will be
distributed annually. Income distributions and capital gain distributions are
determined in accordance with federal tax regulations which may differ from
generally accepted accounting principles. The differences primarily relate to
investments in forward contracts.
THE HAVEN FUND SEMI-ANNUAL REPORT
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (cont'd.)
-------------------------------------------------------------------------------
e) FEDERAL TAXES: The Fund is a separate entity for federal income tax
purposes. It is the Fund's policy to qualify as a regulated investment company
by complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies, and to pay out most of its net investment income
and net capital gains to its shareholders. Therefore, no federal income or
excise tax provision is required.
f) USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
3. FINANCIAL INSTRUMENTS
The Fund may trade financial instruments with off-balance sheet risk in the
normal course of the investing activities and to assist in managing exposure to
market risks such as interest rates and foreign currency exchange rates. The
financial instruments include written options, forward foreign currency exchange
contracts and futures contracts. The notional or contractual amounts of these
instruments represent the investment the Fund has in particular classes of
financial instruments and do not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions are considered.
At April 30, 2000, the Fund did not hold any financial instruments with off-
balance sheet risk.
4. FEES AND RELATED PARTY TRANSACTIONS
a) INVESTMENT ADVISORY FEES: Under an agreement between the Trust on behalf of
the Fund and Haven Capital Management, Inc. (the "Adviser"), the Adviser serves
as the Fund's investment adviser. For investment advisory services, the Adviser
receives monthly fees at the annual rate of 0.60% of the Fund's average daily
net assets.
b) TRUSTEES' FEES: Fees were paid to the Trustees and/or Officers of the Fund
for the six months ended April 30, 2000, but no fees were paid to any Trustee
and/or Officer of the Fund who is also an employee of the Adviser.
c) DISTRIBUTION FEES: The Trust, on behalf of the Fund, has adopted a Plan of
Distribution (the "Plan") pursuant to Rule 12b-1 under the Investment Company
Act of 1940, as amended. Under the Plan, the Fund may spend no more each year
than 0.25% of its average daily net assets to finance activity primarily
intended to result in the sale of shares.
SEMI-ANNUAL REPORT THE HAVEN FUND
<PAGE>
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NOTES TO FINANCIAL STATEMENTS (cont'd.)
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Pursuant to the Distribution Agreement, as compensation for its services, the
Fund pays Sunstone Distribution Services, LLC, payable monthly in arrears, at
the annual rate of 0.10% per annum of the Fund's average daily net assets;
provided that such compensation shall be subject to a minimum monthly fee of
$7,083 (exclusive of out-of-pocket expenses).
The Fund also pays Mount & Nadler, Inc. a monthly fee of $4,000 (exclusive of
out-of-pocket expenses) as compensation for services under the Plan.
d) ADMINISTRATOR AND TRANSFER AGENT FEES: As compensation for its
administrative and accounting services, the Fund pays PFPC a fee, at the annual
rate of 0.10% of the first $200,000,000 of average net assets; 0.075% of the
next $200,000,000 of average net assets; 0.05% of the next $200,000,000 of
average net assets; and 0.03% of the average net assets in excess of
$600,000,000, with a minimum monthly fee of $8,333 (exclusive of out-of-pocket
expenses). As transfer agent of the Fund, PFPC receives a minimum monthly fee of
$3,000 (exclusive of out-of-pocket expenses).
e) CUSTODIAN FEES: PFPC Trust Company and Chase Manhattan Bank, N.A., serves
as custodian and sub-custodian for the Fund's U.S. and foreign assets,
respectively. As compensation for its custodian services, the Fund pays PFPC
Trust Company a fee, at the annual rate of 0.0175% of the Fund's first
$100,000,000 of average gross assets; 0.015% of the next $400,000,000 of average
gross assets; 0.0125% of the next $500,000,000 of average gross assets; and
0.01% of the average gross assets in excess of $1,000,000,000 (exclusive of out-
of-pocket expenses and transaction charges). The minimum monthly fee is $1,500
(exclusive of out-of-pocket expenses and transaction charges). The Fund pays
Chase Manhattan Bank, N.A. an account fee of $5,000 per year
and an asset-based fee derived from the ending market value of foreign held
securities (exclusive of transaction charges).
5. CAPITAL STOCK
The Fund is authorized to issue unlimited shares of common stock, par value
$.001 per share. Transactions in shares of the Fund for the six months ended
April 30, 2000 and the year ended October 31, 1999, respectively, were as
follows:
2000 1999
----------------------------------------------------------------------
Sale of shares 34,757 64,454
Shares issued to shareholders in
reinvestment of dividends 178,753 439,204
Shares repurchased (266,716) (942,502)
----------------------------------------------------------------------
Net decrease (53,206) (438,844)
Shares outstanding:
Beginning of period 4,998,542 5,437,386
----------------------------------------------------------------------
End of period 4,945,336 4,998,542
======================================================================
THE HAVEN FUND SEMI-ANNUAL REPORT
<PAGE>
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NOTES TO FINANCIAL STATEMENTS (cont'd.)
-------------------------------------------------------------------------------
6. COMPONENTS OF NET ASSETS
At April 30, 2000, Net Assets consisted of the following:
----------------------------------------------------------------------------
Capital paid-in $43,656,435
Accumulated net realized gain on investment
and foreign currency transactions 9,513,140
Undistributed net investment income 39,902
Net unrealized appreciation of investments 28,827,685
Net unrealized depreciation on foreign
currency transactions (1,007)
----------------------------------------------------------------------------
$82,036,155
============================================================================
7. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2000, the cost of securities purchased and
proceeds from securities sold, excluding short-term obligations, were
$31,694,105 and $30,988,228, respectively.
SEMI-ANNUAL REPORT THE HAVEN FUND
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<PAGE>
THE HAVEN FUND
P.O. BOX 8903
WILMINGTON, DE 19899-8903
FOR FUND INFORMATION,
PRICES AND LITERATURE, CALL
1-800-844-4836
FOR ACCOUNT BALANCES AND OTHER INFORMATION ABOUT YOUR HAVEN FUND ACCOUNT, CALL
1-800-850-7163
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF SHAREHOLDERS OF THE
HAVEN FUND. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS
UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS FOR THE HAVEN FUND.
THE PROSPECTUS INCLUDES MORE COMPLETE INFORMATION ABOUT MANAGEMENT FEES AND
EXPENSES, INVESTMENT OBJECTIVES, RISKS AND OPERATING POLICIES OF
THE HAVEN FUND. PLEASE READ THE PROSPECTUS CAREFULLY.
HA4100600
