________________________________________________________________________________
CAPITAL MANAGEMENT MID-CAP FUND
________________________________________________________________________________
a series of the Capital Management Investment Trust
Semi-Annual Report 2000
FOR THE PERIOD ENDED MAY 31
INVESTMENT ADVISOR
Capital Management Associates, Inc.
140 Broadway
New York, New York 10005
CAPITAL MANAGEMENT MID-CAP FUND
107 North Washington Street
Post Office Drawer 4365
Rocky Mount, North Carolina 27803-0365
1-888-626-3863
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Fund. This report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective prospectus. Mutual fund shares are not deposits
or obligations of, or guaranteed by, any depository institution. Shares are not
insured by the FDIC, Federal Reserve Board or any other agency, and are subject
to investment risks, including possible loss of principal amount invested.
Neither the fund nor the fund's distributor is a bank.
For more information about the Capital Management Mid-Cap Fund, including
charges and expenses, call the fund for a free prospectus. You should read the
prospectus carefully before you invest or send money.
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CAPITAL MANAGEMENT MID-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 93.23%
Airlines - 2.89%
Southwest Airlines Co. ................................................. 11,750 $ 225,453
----------
Broadcast - Radio & Television - 2.92%
(a)Infinity Broadcasting Corporation ...................................... 7,187 227,289
----------
Chemicals - 2.21%
M. A. Hanna Company .................................................... 15,000 172,500
----------
Computer Software - 2.38%
(a)Silicon Storage Technology, Inc. ....................................... 2,500 185,625
----------
Electrical Equipment - 2.43%
TXU Corp. .............................................................. 5,300 189,475
----------
Electronics - Semiconductor - 4.17%
Helix Technology Corporation ........................................... 4,800 163,500
(a)National Semiconductor Corporation ..................................... 3,000 161,250
----------
324,750
----------
Financial - Banks, Commercial - 6.23%
Summit Bancorp ......................................................... 8,000 229,500
Zions Bancorporation ................................................... 5,500 256,437
----------
485,937
----------
Food - Processing - 6.39%
Flowers Industries, Inc. ............................................... 15,000 270,938
McCormick & Company, Incorporated ...................................... 7,000 227,500
----------
498,438
----------
Forest Products & Paper - 4.62%
Bowater Incorporated ................................................... 3,500 181,781
Weyerhaeuser Company ................................................... 3,600 178,650
----------
360,431
----------
Machine - Diversified - 2.24%
Deere & Company ........................................................ 4,200 174,825
----------
Medical - Hospital - 1.27%
(a)Manor Care, Inc. ....................................................... 14,000 98,875
----------
Medical Supplies - 3.16%
C. R. Bard, Inc. ....................................................... 5,400 246,375
----------
(Continued)
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CAPITAL MANAGEMENT MID-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Oil & Gas - Domestic - 2.11%
El Paso Energy Corporation ............................................. 3,200 $ 164,800
----------
Oil & Gas - Equipment & Services - 11.67%
Apache Corporation ..................................................... 3,800 231,325
(a)Cooper Cameron Corporation ............................................. 2,200 154,138
ENSCO International Incorporated ....................................... 4,400 153,725
(a)Nabors Industries, Inc. ................................................ 3,800 163,400
The Williams Companies, Inc. ........................................... 5,000 207,812
----------
910,400
----------
Oil & Gas - International - 3.20%
Unocal Corporation ..................................................... 6,500 249,844
----------
Pharmaceuticals - 3.98%
IVAX Corporation ....................................................... 8,250 310,406
----------
Retail - Grocery - 5.28%
Albertson's, Inc. ...................................................... 6,500 238,063
Hannaford Bros. Co. .................................................... 2,400 173,400
----------
411,463
----------
Retail - Restaurants - 5.64%
(a)Brinker International, Inc. ............................................ 7,300 206,681
(a)Outback Steakhouse, Inc. ............................................... 7,700 233,406
----------
440,087
----------
Retail - Specialty Lines - 5.62%
American Greetings Corporation ......................................... 11,000 204,875
Harcourt General, Inc. ................................................ 5,900 233,419
----------
438,294
----------
Steel - Specialty - 1.88%
Texas Industries, Inc. ................................................. 5,100 146,306
----------
Telecommunications Equipment - 4.46%
(a)ANTEC Corporation ...................................................... 4,000 201,000
(a)World Access, Inc. ..................................................... 14,000 147,000
----------
348,000
----------
(Continued)
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CAPITAL MANAGEMENT MID-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Utilities - Electric - 8.48%
Constellation Energy Group ............................................. 5,700 $ 195,581
PG&E Corporation ....................................................... 8,700 225,113
Sempra Energy .......................................................... 12,774 240,311
----------
661,005
----------
Total Common Stocks (Cost $6,262,965) ........................................................... 7,270,578
----------
INVESTMENT COMPANY - 4.70%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares ............................... 366,296 366,296
(Cost $366,296) ----------
Total Value of Investments (Cost $6,629,261 (b)) ................................... 97.93% $7,636,874
Other Assets In Excess of Liabilities .............................................. 2.07% 161,695
------ ----------
Net Assets .................................................................. 100.00% $7,798,569
====== ==========
(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation ........................................................................ $1,336,578
Unrealized depreciation ........................................................................ (328,965)
----------
Net unrealized appreciation $1,007,613
==========
See accompanying notes to financial statements
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CAPITAL MANAGEMENT MID-CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
(Unaudited)
ASSETS
Investments, at value (cost $o6,629,261) ..................................................................... $7,636,874
Cash ......................................................................................................... 180,652
Income receivable ............................................................................................ 7,012
Due from advisor (note 2) .................................................................................... 2,329
Prepaid expenses ............................................................................................. 1,549
----------
Total assets ............................................................................................ 7,828,416
----------
LIABILITIES
Accrued expenses ............................................................................................. 26,847
Payable for fund shares redeemed ............................................................................. 3,000
----------
Total liabilities ....................................................................................... 29,847
----------
NET ASSETS .......................................................................................................... $7,798,569
==========
NET ASSETS CONSIST OF
Paid-in capital .............................................................................................. $5,460,403
Undistributed net investment oincome ......................................................................... 8,798
Undistributed net realized gain on investments ............................................................... 1,321,755
Net unrealized oappreciation on investments .................................................................. 1,007,613
----------
$7,798,569
==========
INSTITUTIONAL CLASS
Net asset value, offering and redemption price per share ($6,923,052 / 369,600 shares outstanding) ........... $18.73
==========
INVESTOR CLASS
Net asset value, offering and redemption price per share ($875,517 / 48,046 shares outstanding) .............. $18.22
==========
Maximum offering price per share (100 / 97% of $18.22) ....................................................... $18.79
==========
See accompanying notes to financial statements
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CAPITAL MANAGEMENT MID-CAP FUND
STATEMENT OF OPERATIONS
Period ended May 31, 2000
(Unaudited)
INVESTMENT INCOME
Income
Dividends ..................................................................................... $ 72,296
----------
Expenses
Fund administration fees (note 2) ............................................................. 4,644
Custody fees .................................................................................. 1,800
Distribution and service fees - Investor Class (note 3) ....................................... 3,667
Registration and filing administration fees (note 2) .......................................... 3,134
Fund accounting fees (note 2) ................................................................. 18,000
Audit fees .................................................................................... 5,150
Legal fees .................................................................................... 3,334
Securities pricing fees ....................................................................... 1,449
Shareholder recordkeeping fees ................................................................ 4,500
Other accounting fees (note 2) ................................................................ 1,330
Shareholder servicing expenses ................................................................ 2,500
Registration and filing expenses .............................................................. 7,500
Printing expenses ............................................................................. 3,500
Trustee fees and meeting expenses ............................................................. 3,500
Other operating expenses ...................................................................... 1,750
----------
Total expenses .......................................................................... 65,758
----------
Less expense reimbursements (note 2) .................................................... (6,387)
----------
Net expenses ............................................................................ 59,371
----------
Net investment income .............................................................. 12,925
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions ..................................................... 1,318,137
Increase in unrealized appreciation on investments ................................................. 9,261
----------
Net realized and unrealized gain on investments ............................................... 1,327,398
----------
Net increase in net assets resulting from operations .................................... $1,340,323
==========
See accompanying notes to financial statements
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CAPITAL MANAGEMENT MID-CAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Period ended Year ended
May 31, November 30,
2000 1999
------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment income ........................................................... $ 12,925 $ 5,857
Net realized gain from investment transactions .................................. 1,318,137 603,046
Increase in unrealized appreciation on investments .............................. 9,261 500,396
---------- ----------
Net increase in net assets resulting from operations ........................ 1,340,323 1,109,299
---------- ----------
Distributions to shareholders from
Net investment income - Institutional Class ..................................... (4,066) (8,499)
Net investment income - Investor Class .......................................... (61) 0
Net realized gain from investment transactions - Institutional Class ............ (433,714) 0
Net realized gain from investment transactions - Investor Class ................. (77,460) 0
---------- ----------
Decrease in net assets resulting from distributions ......................... (515,301) (8,499)
---------- ----------
Capital share transactions
Increase (decrease) in net assets resulting from capital share transactions ..... 145,408 (969,079)
---------- ----------
Total increase in net assets ............................................ 970,430 131,721
NET ASSETS
Beginning of period .................................................................. 6,828,139 6,696,418
---------- ----------
End of period(including undistributed net investment income .......................... $7,798,569 $6,828,139
of $8,798 in May 2000) ========== ==========
(a) A summary of capital share activity follows:
-----------------------------------------------------------------------
Period ended Year ended
May 31, 2000 November 30, 1999
Shares Value Shares Value
-----------------------------------------------------------------------
-----------------------------------------------------------
INSTITUTIONAL CLASS
-----------------------------------------------------------
Shares sold ............................................... 7,469 $ 130,675 68,421 $1,118,601
Shares issued for reinvestment of distributions ........... 26,532 437,780 529 8,501
---------- ---------- ---------- ----------
34,001 568,455 68,950 1,127,102
Shares redeemed ........................................... (9,445) (162,418) (70,880) (1,111,573)
---------- ---------- ---------- ----------
Net increase (decrease) .............................. 24,556 $ 406,037 (1,930) $ 15,529
========== ========== ========== ==========
-----------------------------------------------------------
INVESTOR CLASS
-----------------------------------------------------------
Shares sold ............................................... 811 $ 14,457 2,985 $ 45,557
Shares issued for reinvestment of distributions ........... 4,818 77,521 0 0
---------- ---------- ---------- ----------
5,629 91,978 2,985 45,557
Shares redeemed ........................................... (20,445) (352,607) (66,673) (1,030,165)
---------- ---------- ---------- ----------
Net decrease ......................................... (14,816) $ (260,629) (63,688) $ (984,608)
========== ========== ========== ==========
See accompanying notes to financial statements
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CAPITAL MANAGEMENT MID-CAP FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INSTITUTIONAL CLASS
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Period ended Year ended Year ended Year ended Year ended
May 31, November 30, November 30, November 30, November 30,
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....................... $16.80 $14.21 $18.20 $13.99 $12.16
Income (loss) from investment operations
Net investment income ........................... 0.04 0.03 0.03 0.01 0.23
Net realized and unrealized gain (loss)
on investments ............................. 3.18 2.58 (1.70) 4.60 2.08
---------- ---------- ---------- ---------- ----------
Total from investment operations ........... 3.22 2.61 (1.67) 4.61 2.31
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
Net investment income ........................... (0.01) (0.02) 0.00 (0.04) (0.26)
Distributions in excess of net investment income 0.00 0.00 0.00 (0.02) 0.00
Net realized gain from investment transactions .. (1.28) 0.00 (2.32) (0.34) (0.22)
---------- ---------- ---------- ---------- ----------
Total distributions ........................ (1.29) (0.02) (2.32) (0.40) (0.48)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............................. $18.73 $16.80 $14.21 $18.20 $13.99
========== ========== ========== ========== ==========
Total return (a) ........................................... 20.22 % 18.41 % (10.94)% 33.92 % 19.57 %
========== ========== ========== ========== ==========
Ratios/supplemental data
Net assets, end of period ............................ $6,923,052 $5,796,478 $4,929,525 $5,311,416 $3,502,215
========== ========== ========== ========== ==========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ... 1.59 %(b) 2.81 % 2.60 % 2.92 % 3.70 %
After expense reimbursements and waived fees .... 1.50 %(b) 1.50 % 1.50 % 1.50 % 0.00 %
Ratio of net investment income (loss) to average net assets
Before expense reimbursements and waived fees ... 0.35 %(b) (1.07)% (0.93)% (1.34)% (1.77)%
After expense reimbursements and waived fees .... 0.44 %(b) 0.24 % 0.17 % 0.08 % 1.94 %
Portfolio turnover rate .............................. 65.90 % 114.00 % 89.04 % 66.30 % 82.30 %
(a) Total return does not reflect payment of a sales charge.
(b) Annualized
See accompanying notes to financial statements (Continued)
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CAPITAL MANAGEMENT MID-CAP FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INVESTOR CLASS
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Period ended Year ended Year ended Year ended Year ended
May 31, November 30, November 30, November 30, November 30,
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....................... $16.41 $13.96 $18.04 $13.96 $12.09
Income (loss) from investment operations
Net investment (loss) income .................... (0.03) (0.11) (0.09) (0.05) 0.24
Net realized and unrealized gain (loss)
on investments ............................. 3.12 2.56 (1.67) 4.53 2.06
---------- ---------- ---------- ---------- ----------
Total from investment operations ........... 3.09 2.45 (1.76) 4.48 2.30
---------- ---------- ---------- ---------- ----------
Distributions to shareholders from
Net investment income ........................... 0.00 0.00 0.00 (0.03) (0.21)
Distributions in excess of net investment income 0.00 0.00 0.00 (0.03) 0.00
Net realized gain from investment transactions .. (1.28) 0.00 (2.32) (0.34) (0.22)
---------- ---------- ---------- ---------- ----------
Total distributions ........................ (1.28) 0.00 (2.32) (0.40) (0.43)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............................. $18.22 $16.41 $13.96 $18.04 $13.96
========== ========== ========== ========== ==========
Total return (a) ........................................... 19.87 % 17.55 % (11.67)% 33.11 % 19.61 %
========== ========== ========== ========== ==========
Ratios/supplemental data
Net assets, end of period ............................ $ 875,517 $1,031,661 $1,766,893 $1,873,942 $ 746,136
========== ========== ========== ========== ==========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ........ 2.94 %(b) 3.56 % 3.35 % 3.71 % 4.45 %
After expense reimbursements and waived fees ......... 2.25 %(b) 2.25 % 2.25 % 2.25 % 0.00 %
Ratio of net investment income (loss) to average net assets
Before expense reimbursements and waived fees ........ (0.96)%(b) (1.82)% (1.67)% (2.10)% (2.50)%
After expense reimbursements and waived fees ......... (0.27)%(b) (0.51)% (0.57)% (0.63)% 1.95 %
Portfolio turnover rate ................................... 65.90 % 114.00 % 89.04 % 66.30 % 82.30 %
(a) Total return does not reflect payment of a sales charge.
(b) Annualized
See accompanying notes to financial statements
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CAPITAL MANAGEMENT MID-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Capital Management Mid-Cap Fund (the "Fund"), formerly known as the
Capital Management Equity Fund, is a diversified series of shares of
beneficial interest of the Capital Management Investment Trust (the
"Trust"). The Trust, an open-end investment company, was organized on
October 18, 1994 as a Massachusetts Business Trust and is registered
under the Investment Company Act of 1940, as amended. The Fund began
operations on January 27, 1995. The investment objective of the fund is
to seek capital appreciation principally through investments in equity
securities, consisting of common and preferred stocks and securities
convertible into common stocks. The Fund has an unlimited number of
$0.01 par value beneficial interest shares that are authorized, which
are divided into two classes - Institutional Class Shares and Investor
Class Shares. Only Institutional Class Shares were offered by the Fund
prior to April 7, 1995.
Each class of shares has equal rights as to assets of the Fund, and the
classes are identical except for differences in their sales charge
structures and ongoing distribution and service fees. Income, expenses
(other than distribution and service fees, which are only attributable
to the Investor Class Shares), and realized and unrealized gains or
losses on investments are allocated to each class of shares based upon
its relative net assets. Investor Class Shares purchased are subject to
a maximum sales charge of three percent. Both classes have equal voting
privileges, except where otherwise required by law or when the Board of
Trustees determines that the matter to be voted on affects only the
interests of the shareholders of a particular class. The following is a
summary of significant accounting policies followed by the Fund.
A. Security Valuation - The Fund's investments in securities are
carried at value. Securities listed on an exchange or quoted
on a national market system are valued at 4:00 p.m., New York
time. Other securities traded in the over-the-counter market
and listed securities for which no sale was reported on that
date are valued at the most recent bid price. Securities for
which market quotations are not readily available, if any, are
valued by using an independent pricing service or by following
procedures approved by the Board of Trustees. Short-term
investments are valued at cost which approximates value.
B. Federal Income Taxes - No provision has been made for federal
income taxes since it is the policy of the Fund to comply with
the provisions of the Internal Revenue Code applicable to
regulated investment companies and to make sufficient
distributions of taxable income to relieve it from all federal
income taxes.
Each Fund files a tax return annually using tax accounting
methods required under provisions of the Code which may differ
from generally accepted accounting principles, the basis on
which these financial statements are prepared. Accordingly,
the character of distributions to shareholders reported in the
financial highlights may differ from that reported to
shareholders for Federal income tax purposes. Distributions
which exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes, if any,
are shown as distributions in excess of net investment income
and net realized gains in the accompanying statements.
C. Investment Transactions - Investment transactions are recorded
on trade date. Realized gains and losses are determined using
the specific identification cost method. Interest income is
recorded daily on an accrual basis. Dividend income is
recorded on the ex-dividend date.
(Continued)
<PAGE>
CAPITAL MANAGEMENT MID-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September, and December on
a date selected by the Trust's Trustees. Distributions to
shareholders are recorded on the ex-dividend date. In
addition, distributions may be made annually in December out
of net realized gains through October 31 of that year.
Distributions to shareholders are recorded on the ex-dividend
date. The Fund may make a supplemental distribution subsequent
to the end of its fiscal year ending November 30.
E. 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 amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results
could differ from those estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
As a result of an inadvertent failure of the Board to renew the
investment advisory agreement between the Trust and Capital Management
Associates, Inc. (the "Advisor"), under which the Advisor provided
advisory services to the Fund, the previous Investment Advisory
Agreement lapsed on November 10, 1999. However, the Advisor has
continued, without compensation, to provide the fund with a continuous
program of supervision of the Fund's assets, including the composition
of its portfolio, and furnishes advice and recommendations with respect
to investments, investment policies, and the purchase and sale of
securities. Shareholders of the Fund will be voting on a new Investment
Advisory Agreement that has been approved by the Board. The Advisor is
not due to receive any advisory fees for the period ending May 31,
2000.
Capital Management Associates, Inc. currently intends to voluntarily
reimburse expenses of the Fund to limit total Fund operating expenses
to a maximum of 1.50% of the average daily net assets of the Fund's
Institutional Class and a maximum of 2.25% of the average daily net
assets of the Fund's Investor Class. There can be no assurance that the
foregoing voluntary reimbursements will continue. The Advisor has
reimbursed $6,387 of the operating expenses incurred by the Fund for
the period ended May 31, 2000, including $3,667 which may be refunded
upon the approval of the 12b-1 Plan which also lapsed on November 10,
1999.
The Fund's administrator, The Nottingham Company, Inc. (the
"Administrator"), provides administrative services to and is generally
responsible for the overall management and day-to-day operations of the
Fund pursuant to an accounting and administrative agreement with the
Trust. As compensation for its services, the Administrator receives a
fee at the annual rate of 0.125% of the Fund's first $50 million of
average daily net assets, 0.100% of the next $50 million, and 0.075% of
average daily net assets over $100 million as well as a monthly fee of
$2,250 for accounting and record-keeping services for the initial class
of shares and $750 per month for each additional class of shares. The
contract with the Administrator provides that the aggregate fees for
the aforementioned administration, accounting, and recordkeeping
services shall not be less than $4,000 per month. The Administrator
also charges the Fund for certain expenses involved with the daily
valuation of portfolio securities.
(Continued)
<PAGE>
CAPITAL MANAGEMENT MID-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
North Carolina Shareholder Services, LLC (the "Transfer Agent") serves
as the Fund's transfer, dividend paying, and shareholder servicing
agent. The Transfer Agent maintains the records of each shareholder's
account, answers shareholder inquiries concerning accounts, processes
purchases and redemptions of the Fund's shares, acts as dividend and
distribution disbursing agent, and performs other shareholder servicing
functions.
Shields & Company, Inc. (the "Distributor"), an affiliate of the
Advisor, serves as the Fund's principal underwriter and distributor.
The Distributor receives any sales charges imposed on purchases of
Investor Shares and re-allocates a portion of such charges to dealers
through whom the sale was made, if any. For the period ended May 31,
2000, the Distributor retained sales charges in the amount of $143.
Certain Trustees and officers of the Trust are also officers or
directors of the Advisor, the Distributor, or the Administrator.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
As a result of an inadvertent failure of the Board to renew the 12b-1
Plan under which the Fund used a portion of its assets to pay for,
among other things, the promotion and distribution of the Investor
Class Shares, the previous 12b-1 Plan lapsed on November 10, 1999.
Accordingly, pursuant to Rule 12b-1 under the Investment Company Act of
1940 (the "Act"), shareholders of Investor Class Shares are required to
vote on the proposed 12b-1 Plan. The Act regulates the manner in which
a regulated investment company may assume costs of distributing and
promoting the sales of its shares and servicing of its shareholder
accounts.
The Board has approved a proposed plan which provides that the Fund may
incur certain costs, which may not exceed 0.75% per annum of the
Investor Class Shares' average daily net assets for each year elapsed
subsequent to adoption of the Plan, for payment to the Distributor and
others for items such as advertising expenses, selling expenses,
commissions, travel, or other expenses reasonably intended to result in
sales of Investor Class Shares in the Fund or support servicing of
Investor Class Share shareholder accounts. Such expenditures incurred
as service fees may not exceed 0.25% per annum of the Investor Class
Shares' average daily net assets.
The Board has approved, subject to approval of the proposed 12b-1 Plan
by Investor Class Shares shareholders, reimbursement of expenses that
would otherwise be paid with 12b-1 fees. If the proposed 12b-1 Plan and
reimbursement of Rule 12b-1 fees are approved by Investor Class Shares
shareholders, the Fund will reimburse or pay the Distributor for fees
which have accumulated since the lapse of the original agreement. For
the period ending May 31, 2000, these accumulated fees are $3,667.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term investments,
aggregated $4,501,745 and $4,613,514, respectively, for the period
ended May 31, 2000.
<PAGE>
________________________________________________________________________________
CAPITAL MANAGEMENT SMALL-CAP FUND
________________________________________________________________________________
a series of the Capital Management Investment Trust
Semi-Annual Report 2000
FOR THE PERIOD ENDED MAY 31
INVESTMENT ADVISOR
Capital Management Associates, Inc.
140 Broadway
New York, New York 10005
CAPITAL MANAGEMENT SMALL-CAP FUND
107 North Washington Street
Post Office Drawer 4365
Rocky Mount, North Carolina 27803-0365
1-888-626-3863
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Fund. This report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective prospectus. Mutual fund shares are not deposits
or obligations of, or guaranteed by, any depository institution. Shares are not
insured by the FDIC, Federal Reserve Board or any other agency, and are subject
to investment risks, including possible loss of principal amount invested.
Neither the fund nor the fund's distributor is a bank.
For more information about the Capital Management Small-Cap Fund, including
charges and expenses, call the fund for a free prospectus. You should read the
prospectus carefully before you invest or send money.
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 88.60%
Advertising - 2.87%
True North Communications Inc. ........................................... 300 $ 13,106
--------
Auto Parts - Original Equipment - 0.91%
(a)Tower Automotive, Inc. ................................................... 300 4,181
--------
Biopharmaceuticals - 5.47%
(a)Geron Corporation ........................................................ 600 10,838
(a)NeoRx Corporation ........................................................ 1,000 14,187
--------
25,025
--------
Building Materials - 2.20%
Rayonier Inc. ............................................................ 250 10,063
--------
Chemicals - 4.60%
M. A. Hanna Company ...................................................... 800 9,200
Olin Corporation ......................................................... 750 11,812
--------
21,012
--------
Computers - 1.49%
(a)Concurrent Computer Corporation .......................................... 800 6,800
--------
Electrical Equipment - 1.85%
Baldor Electric Company .................................................. 450 8,438
--------
Electronics - Semiconductor - 5.81%
(a)Brooks Automation, Inc. .................................................. 100 3,975
(a)Dense-Pac Microsystems, Inc. ............................................. 1,500 8,531
Helix Technology Corporation ............................................. 200 6,813
(a)Novellus Systems, Inc. ................................................... 150 7,228
--------
26,547
--------
Engineering & Construction - 2.63%
Briggs & Stratton Corporation ............................................ 300 12,000
--------
Financial - Banks, Commercial - 2.61%
(a)Cullen/Frost Bankers, Inc. ............................................... 450 11,925
--------
Financial - Banks, Money Center - 2.21%
Compass Bancshares, Inc. ................................................. 500 10,125
--------
Forest Products & Paper - 2.06%
Pope & Talbot, Inc. ...................................................... 500 9,437
--------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Homebuilders - 1.32%
Leggett & Platt, Incorporated ............................................ 300 $ 6,019
--------
Iron & Steel - 0.42%
(a)Bethlehem Steel Corporation .............................................. 500 1,938
--------
Manufacturing - Apparel - 2.32%
Tommy Hilfiger Corporation ............................................... 1,500 10,594
--------
Medical - Biotechnology - 1.68%
(a)Creative BioMolecules, Inc. .............................................. 1,500 7,687
--------
Medical Supplies - 2.71%
(a)NovaMed Eyecare, Inc. .................................................... 1,200 7,875
(a)Somnus Medical Technologies, Inc. ........................................ 1,500 4,500
--------
12,375
--------
Oil & Gas - Equipment & Services - 7.50%
(a)R&B Falcon Corporation ................................................... 800 18,750
(a)Rowan Companies, Inc. .................................................... 500 15,531
--------
34,281
--------
Oil & Gas - Exploration - 16.80%
(a)Bellwether Exploration Company ........................................... 1,500 12,750
Cabot Oil & Gas Corporation .............................................. 650 16,209
EOG Resources, Inc. ...................................................... 600 19,500
(a)Neuvo Energy Company ..................................................... 600 11,588
(a)Newfield Exploration Company ............................................. 400 16,750
--------
76,797
--------
Pharmaceuticals - 2.26%
(a)Anesta Corp. ............................................................. 400 5,925
(a)Watson Pharmaceuticals, Inc. ............................................. 100 4,412
--------
10,337
--------
Restaurants & Food Service - 1.80%
(a)RARE Hospitality International, Inc. ..................................... 300 8,213
--------
Telecommunications - Equipment - 3.20%
(a)FiberNet Telecom Group, Inc. ............................................. 1,300 14,625
--------
Transportation - Air - 5.00%
(a)Atlantic Coast Airlines Holdings, Inc. ................................... 500 15,219
SkyWest, Inc. ............................................................ 200 7,625
--------
22,844
--------
(Continued)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
PORTFOLIO OF INVESTMENTS
May 31, 2000
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Utilities - Electric - 3.37%
Cleco Corporation ........................................................ 450 $ 15,412
--------
Utilities - Gas - 2.27%
South Jersey Industries, Inc. ............................................ 400 10,375
--------
Utilities - Water - 3.24%
Philadelphia Suburban Corporation ........................................ 600 14,850
--------
Total Common Stocks (Cost $387,658) ............................................................... 405,006
--------
INVESTMENT COMPANIES - 11.59%
Evergreen Money Market Treasury Institutional Money
Market Fund Institutional Service Shares ................................. 26,482 26,482
Evergreen Money Market Treasury Institutional Treasury
Money Market Fund Institutional Service Shares ........................... 26,483 26,483
---------
Total Investment Companies (Cost $52,965) ....................................................... 52,965
---------
Total Value of Investments (Cost $440,623 (b)) ....................................... 100.19 % $457,971
Liabilities In Excess of Other Assets ................................................ (0.19)% (843)
------ --------
Net Assets .................................................................... 100.00 % $457,128
====== ========
(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation ......................................................................... $ 54,246
Unrealized depreciation ......................................................................... (36,898)
--------
Net unrealized appreciation ..................................................... $ 17,348
========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000
(Unaudited)
ASSETS
Investments, at value (cost $440,623) ................................................................. $457,971
Cash .................................................................................................. 58,035
Income receivable ..................................................................................... 693
Due from advisor (note 2) ............................................................................. 338
--------
Total assets ..................................................................................... 517,037
--------
LIABILITIES
Accrued expenses ...................................................................................... 11,275
Payable for investment purchases ...................................................................... 48,142
Other liabilities ..................................................................................... 492
--------
Total liabilities ................................................................................ 59,909
--------
NET ASSETS ................................................................................................... $457,128
========
NET ASSETS CONSIST OF
Paid-in capital ....................................................................................... $423,056
Undistributed net realized gain on investments ........................................................ 16,724
Net unrealized appreciation on investments ............................................................ 17,348
--------
$457,128
========
INSTITUTIONAL CLASS
Net asset value, redemption and maximum offering price per share
($384,536 / 27,562 shares outstanding) ........................................................... $13.95
========
INVESTOR CLASS
Net asset value, redemption and maximum offering price per share
($72,592 / 5,264 shares outstanding) ............................................................. $13.79
========
Maximum offering price per share (100 / 97% of $13.79) ................................................ $14.22
========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
STATEMENT OF OPERATIONS
Period ended May 31, 2000
(Unaudited)
INVESTMENT LOSS
Income
Dividends ....................................................................................... $ 2,311
--------
Expenses
Investment advisory fees (note 2) ............................................................... 1,614
Fund administration fees (note 2) ............................................................... 202
Distribution and servicing fees - Investor Class (note 3) ....................................... 262
Custody fees .................................................................................... 1,624
Registration and filing administration fees (note 2) ............................................ 388
Fund accounting fees (note 2) ................................................................... 18,000
Audit fees ...................................................................................... 5,467
Legal fees ...................................................................................... 2,917
Securities pricing fees ......................................................................... 1,427
Shareholder recordkeeping fees .................................................................. 4,500
Other accounting fees (note 2) .................................................................. 5,793
Shareholder servicing expenses .................................................................. 900
Registration and filing expenses ................................................................ 1,000
Printing expenses ............................................................................... 2,000
Trustee fees and meeting expenses ............................................................... 3,500
Other operating expenses ........................................................................ 800
--------
Total expenses ............................................................................ 50,394
--------
Less:
Expense reimbursements (note 2) ...................................................... (46,098)
Investment advisory fees waived (note 2) ............................................. (1,614)
--------
Net expenses .............................................................................. 2,682
--------
Net investment loss .................................................................. (371)
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions ....................................................... 17,083
Increase in unrealized appreciation on investments ................................................... 4,084
--------
Net realized and unrealized gain on investments ................................................. 21,167
--------
Net increase in net assets resulting from operations ...................................... $ 20,796
========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
Period ended Period ended
May 31, November 30,
2000 1999 (b)
------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss ....................................................... $ (371) $ (625)
Net realized gain from investment transactions ............................ 17,083 28,917
Increase in unrealized appreciation on investments ........................ 4,084 13,264
-------- --------
Net increase in net assets resulting from operations .................. 20,796 41,556
-------- --------
Distributions to shareholders from
Net realized gain from investment transactions ............................ (28,280) 0
-------- --------
Capital share transactions
Increase in net assets resulting from capital share transactions (a) ...... 243,004 180,052
-------- --------
Total increase in net assets ..................................... 235,520 221,608
NET ASSETS
Beginning of period ............................................................ 221,608 0
-------- --------
End of period .................................................................. $457,128 $221,608
======== ========
(a) A summary of capital share activity follows:
---------------------------------------------------------------------
Period ended Period ended
May 31, 2000 November 30, 1999 (a)
Shares Value Shares Value
---------------------------------------------------------------------
----------------------------------------------------------
INSTITUTIONAL CLASS
----------------------------------------------------------
Shares sold .............................................. 19,500 $277,688 11,411 $130,052
Shares issued for reinvestment of distributions .......... 1,558 19,440 0 0
Shares redeemed .......................................... (4,906) (62,964) 0 0
-------- -------- -------- --------
Net increase ....................................... 16,152 $234,164 11,411 $130,052
======== ======== ======== ========
----------------------------------------------------------
INVESTOR CLASS
----------------------------------------------------------
Shares sold .............................................. 0 $ 0 4,550 $ 50,000
Shares issued for reinvestment of distributions .......... 714 8,840 0 0
Shares redeemed .......................................... 0 0 0 0
-------- -------- -------- --------
Net increase ........................................ 714 $ 8,840 4,550 $ 50,000
======== ======== ======== ========
----------------------------------------------------------
FUND SUMMARY
----------------------------------------------------------
Shares sold .............................................. 19,500 $277,688 15,961 $180,052
Shares issued for reinvestment of distributions .......... 2,272 28,280 0 0
Shares redeemed .......................................... (4,906) (62,964) 0 0
-------- -------- -------- --------
Net increase ........................................ 16,866 $243,004 15,961 $180,052
======== ======== ======== ========
(b) For the period beginning January 12, 1999 (commencement of operations) to November 30, 1999.
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL MANAGEMENT SMALL-CAP FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
(Unaudited)
-------------------------------- --------------------------------
Institutional Class Investor Class
-------------------------------- --------------------------------
Period ended Period ended Period ended Period ended
May 31, November 30, May 31, November 30,
2000 1999 (a) 2000 1999 (a)
-------------------------------- --------------------------------
Net asset value, beginning of period .................... $13.91 $10.99 $13.82 $10.99
Income from investment operations
Net investment loss .......................... 0.00 (0.01) (0.06) (0.10)
Net realized and unrealized gain on investments 1.98 2.93 1.97 2.93
-------- -------- -------- --------
Total from investment operations ........ 1.98 2.92 1.91 2.83
-------- -------- -------- --------
Distributions to shareholders from
Net realized gain from investment transactions (1.94) 0.00 (1.94) 0.00
-------- -------- -------- --------
Net asset value, end of period .......................... $13.95 $13.91 $13.79 $13.82
======== ======== ======== ========
Total return (b) ........................................ 15.90 % 26.57 % 15.46 % 25.75 %
======== ======== ======== ========
Ratios/supplemental data
Net assets, end of period ......................... $384,536 $158,754 $ 72,592 $ 62,854
======== ======== ======== ========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 31.08 %(c) 55.88 %(c) 31.75 %(c) 56.63 %(c)
After expense reimbursements and waived fees 1.50 %(c) 1.50 %(c) 2.25 %(c) 2.25 %(c)
Ratio of net investment loss to average net assets
Before expense reimbursements and waived fees (29.64)%(c) (54.53)%(c) (30.35)%(c) (55.29)%(c)
After expense reimbursements and waived fees (0.06)%(c) (0.15)%(c) (0.86)%(c) (0.91)%(c)
Portfolio turnover rate ........................... 103.70 % 145.58 % 103.70 % 145.58 %
(a) For the period from January 12, 1999 (commencement of operations) to November 30, 1999.
(b) Total return does not reflect payment of a sales charge.
(c) Annualized.
See accompanying notes to financial statements
</TABLE>
<PAGE>
CAPITAL MANAGEMENT SMALL-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Capital Management Small-Cap Fund (the "Fund") is a diversified
series of shares of beneficial interest of the Capital Management
Investment Trust (the "Trust"). The Trust, an open-end investment
company, was organized on October 18, 1994 as a Massachusetts Business
Trust and is registered under the Investment Company Act of 1940, as
amended. The Fund began operations on January 12, 1999. The investment
objective of the Fund is to seek capital appreciation principally
through investments in equity securities, consisting of common and
preferred stocks and securities convertible into common stocks. The
Fund pursues its investment objective by investing primarily in equity
securities of small-capitalization ("small-cap") companies. The Fund
considers a small-cap company to be one that has market capitalization,
measured at the time the Fund purchases the security, within the range
of $100 million to $1 billion. The Fund has an unlimited number of
$0.01 par value beneficial interest shares that are authorized, which
are divided into two classes - Institutional Class Shares and Investor
Class Shares.
Each class of shares has equal rights as to assets of the Fund, and the
classes are identical except for differences in their sales charge
structures and ongoing distribution and service fees. Income, expenses
(other than distribution and service fees, which are only attributable
to the Investor Class Shares), and realized and unrealized gains or
losses on investments are allocated to each class of shares based upon
its relative net assets. Investor Class Shares purchased are subject to
a maximum sales charge of three percent. Both classes have equal voting
privileges, except where otherwise required by law or when the Board of
Trustees determines that the matter to be voted on affects only the
interests of the shareholders of a particular class. The following is a
summary of significant accounting policies followed by the Fund.
A. Security Valuation - The Fund's investments in securities are
carried at value. Securities listed on an exchange or quoted
on a national market system are valued at 4:00 p.m., New York
time. Other securities traded in the over-the-counter market
and listed securities for which no sale was reported on that
date are valued at the most recent bid price. Securities for
which market quotations are not readily available, if any, are
valued by using an independent pricing service or by following
procedures approved by the Board of Trustees. Short-term
investments are valued at cost which approximates value.
B. Federal Income Taxes - No provision has been made for federal
income taxes since it is the policy of the Fund to comply with
the provisions of the Internal Revenue Code applicable to
regulated investment companies and to make sufficient
distributions of taxable income to relieve it from all federal
income taxes.
Each Fund files a tax return annually using tax accounting
methods required under provisions of the Code which may differ
from generally accepted accounting principles, the basis on
which these financial statements are prepared. Accordingly,
the character of distributions to shareholders reported in the
financial highlights may differ from that reported to
shareholders for Federal income tax purposes. Distributions
which exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes, if any,
are shown as distributions in excess of net investment income
and net realized gains in the accompanying statements.
C. Investment Transactions - Investment transactions are recorded
on trade date. Realized gains and losses are determined using
the specific identification cost method. Interest income is
recorded daily on an accrual basis. Dividend income is
recorded on the ex-dividend date.
(Continued)
<PAGE>
CAPITAL MANAGEMENT SMALL-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September, and December on
a date selected by the Trust's Trustees. Distributions to
shareholders are recorded on the ex-dividend date. In
addition, distributions may be made annually in December out
of net realized gains through October 31 of that year.
Distributions to shareholders are recorded on the ex-dividend
date. The Fund may make a supplemental distribution subsequent
to the end of its fiscal year ending November 30.
E. 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 amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results
could differ from those estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, Capital Management
Associates, Inc. (the "Advisor"), provides the Fund with a continuous
program of supervision of the Fund's assets, including the composition
of its portfolio, and furnishes advice and recommendations with respect
to investments, investment policies, and the purchase and sale of
securities. As compensation for its services, the Advisor receives a
fee at the annual rate of 1.00% of the first $100 million of the Fund's
average daily net assets, 0.90% of the next $150 million, 0.85% of the
next $250 million, and 0.80% of all assets over $500 million.
The Advisor currently intends to voluntarily waive all or a portion of
its fee and to reimburse expenses of the Fund to limit total Fund
operating expenses to a maximum of 1.50% of the average daily net
assets of the Fund's Institutional Class shares and a maximum of 2.25%
of the average daily net assets of the Fund's Investor Class shares.
There can be no assurance that the foregoing voluntary fee waivers or
reimbursements will continue. The Advisor has voluntarily waived a
portion of its fee amounting to $1,614 ($0.07 per share) and reimbursed
$46,098 of the operating expenses incurred by the Fund for the period
ended May 31, 2000.
The Fund's administrator, The Nottingham Company, Inc. (the
"Administrator"), provides administrative services to and is generally
responsible for the overall management and day-to-day operations of the
Fund pursuant to an accounting and administrative agreement with the
Trust. As compensation for its services, the Administrator receives a
fee at the annual rate of 0.125% of the Fund's first $50 million of
average daily net assets, 0.10% of the next $50 million, and 0.075% of
average daily net assets over $100 million. The Administrator also
receives a monthly fee of $2,250 for accounting and record-keeping
services for the initial class of shares and $750 per month for each
additional class of shares. The contract with the Administrator
provides that the aggregate fees for the aforementioned administration,
accounting, and recordkeeping services shall not be less than $4,000
per month. The Administrator also charges the Fund for certain expenses
involved with the daily valuation of portfolio securities.
North Carolina Shareholder Services, LLC (the "Transfer Agent") serves
as the Fund's transfer, dividend paying, and shareholder servicing
agent. The Transfer Agent maintains the records of each shareholder's
account, answers shareholder inquiries concerning accounts, processes
purchases and redemptions of the Fund's shares, acts as dividend and
distribution disbursing agent, and performs other shareholder servicing
functions.
(Continued)
<PAGE>
CAPITAL MANAGEMENT SMALL-CAP FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
Shields & Company, Inc. (the "Distributor"), an affiliate of the
Advisor, serves as the Fund's principal underwriter and distributor.
The Distributor receives any sales charges imposed on purchases of
Investor Shares and re-allocates a portion of such charges to dealers
through whom the sale was made, if any. For the period ended May 31,
the Distributor did not retain any sales charges.
Certain Trustees and officers of the Trust are also officers or
directors of the Advisor, the Distributor, or the Administrator.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
The Board of Trustees, including the Trustees who are not "interested
persons" of the Trust as defined in the Investment Company Act of 1940
(the "Act"), adopted a distribution and service plan pursuant to Rule
12b-1 of the Act (the "Plan") applicable to the Investor Shares. The
Act regulates the manner in which a regulated investment company may
assume costs of distributing and promoting the sales of its shares and
servicing of its shareholder accounts.
The Plan provides that the Fund may incur certain costs, which may not
exceed 0.75% per annum of the Investor Class Shares' average daily net
assets for each year elapsed subsequent to adoption of the Plan, for
payment to the Distributor and others for items such as advertising
expenses, selling expenses, commissions, travel, or other expenses
reasonably intended to result in sales of Investor Class Shares in the
Fund or support servicing of Investor Class Share shareholder accounts.
Such expenditures incurred as service fees may not exceed 0.25% per
annum of the Investor Class Shares' average daily net assets. The Fund
incurred $262 of such expenses for the period ended May 31, 2000.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term investments,
aggregated $480,796 and $267,551, respectively, for the period ended
May 31, 2000.
