ANNUAL REPORT
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Jhaveri Value Fund
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A No-Load Capital Appreciation Fund
March 31, 2000
<PAGE>
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JHAVERI VALUE FUND
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JVF OBJECTIVE
The Jhaveri Value Fund's objective is:
o Long-term capital appreciation
INVESTMENT OPERATING STRATEGY
The Jhaveri Value Fund's operating strategy is designed to achieve it's
objective through disciplined Buy/Sell/Hold decisions based on:
o Stock Selection/Valuation Model comprised of proprietary stock,
industry, and market models to determine the target price for Buy/
Sell/Hold decisions
o Daily Price-Trend Tracking Model to effect Buy/Sell/Hold Decisions
o Risk Management Strategy designed to reduce purchase cost, protect
profit, and preserve capital
The manager believes this strategy will achieve long-term capital appreciation
at lower risk.
STOCK UNIVERSE
The Jhaveri Value Fund's stock universe is comprised of 800 stocks traded on
NYSE, NASDAQ, and AMEX markets. These 800 stocks represent:
o More than 100 industries in all sectors of the economy o More than
80% of the market capitalization in these markets o More than 70% of
the daily trading volume in these markets o More than 200 foreign large
capitalization stocks traded as ADRs on
U.S. exchanges
o More than 500 U.S. multinational companies earning more than 40% of
revenue from export or direct investment in foreign countries
<PAGE>
May 22, 2000
Dear Fellow Shareholders:
During the 1st quarter of this year, volatility reached new heights. On April 4,
2000 the NASDAQ had a price range of 634 points. This exceeded the price range
for the entire year of 1998. The NASDAQ was up over 26% and currently is down
over 16%. The Dow Jones Industrial Average has taken a very different path this
year, it was down over 16% and is now down only 7.5%. Currently the Jhaveri
Value Fund is up over 1% with an Net Asset Value of $12.60.
Year-to-Date Performance as of May 19, 2000
S&P 500 -4.2%
S&P Barra Value Index -1.2%
NASDAQ -16.6%
Dow Jones Industrial -7.5%
Jhaveri Value Fund 1.0%
The Net Asset Value of the Jhaveri Value Fund as of March 31, 2000 was $12.52
and the Total Net Assets were $13.2 million. This equated to a 1-year
performance of 19.1% and this again compared favorably with our tracking
indices.
1-year Performance for period ended 3/31/00
S&P 500 17.8%
S&P Barra Value Index 9.8%
Jhaveri Value Fund 19.1%
With the increase in volatility in the market, the Jhaveri Value Fund's turnover
rate has steadily increased since inception and went up from last year's 83% to
130% for the fiscal year ended March 31, 2000. With the wireless technology
improving and information becoming more readily available, we expect the
volatility to remain at this high level and as a result, we expect the turnover
rate to remain around 120%.
JVF TOP HOLDINGS - 3/31/00
<TABLE>
<S> <C> <C> <C>
INDIVIDUAL COMPANIES INDUSTRIES
1. K Mart Corp 3.02% 1. Medical - Drugs 15.96%
2. American Home Products 2.64% 2. Food 8.44%
3. Compaq Computer 2.00% 3. Banks - Regional 5.01%
4. Waste Management 1.95% 4. Aerospace/Aircraft/Defense 3.37%
5. Xerox Corp 1.75% 5. Telecom Equip/Services 3.18%
6. Gillette Co 1.63% 6. Retail - Department Stores 3.05%
7. Daimler Chrysler Corp 1.59% 7. Insurance 2.99%
8. First Union Corp 1.58% 8. Computer Mini/Micro 2.73%
9. Mylan Labs 1.56% 9. Leisure Services 2.69%
10. Armstrong World Inds 1.46% 10. Retail - Food/Restaurant 2.42%
Total 19.18% Total 49.84%
</TABLE>
<PAGE>
Market Outlook:
Over the last few years, investors have abandoned the historical benchmarks of
valuation with respect to internet, biotech, telecom, and e-commerce stocks.
These groups of stocks have been in a speculative frenzy. However, recently many
stocks in these groups have corrected between 40% - 75%. Even after the
correction, these new economy stocks remain overvalued; however, they are
oversold in the short-term. The old economy stocks remain undervalued, but they
have become overbought in the short-term.
New money continues to flow into the market at a rate of $20 - $40 billion per
month. There is some rotation of fund flow from the heavily weighted new economy
stocks into the old economy stocks. With the economy in strong position and
continued fund flows into the stock market, the outlook for the overall market
remains bullish. However, the recent trend of a rotationally correcting market
will continue. In a rotationally correcting market, many sectors of the market
are declining while many sectors are making new highs. This type of market is
ideal for our investment strategy because it allows the fund to remain fully
invested while rotating out of overvalued stocks and moving into undervalued
stocks.
We have continued to implement the refinements we developed last year. These
refinements have allowed us to maintain an undervalued portfolio by selling
fully valued and overvalued securities and buying undervalued securities for the
long term. These changes have also allowed us to take advantage of short-term
opportunities due to the increased volatility in the market. Regardless of how
the market moves in the future, the Jhaveri Value Fund is well positioned in
undervalued securities. We will continue to actively manage the portfolio and
strive to maintain a high level of performance.
Sincerely,
Ramesh C. Jhaveri Saumil R. Jhaveri
Chief Executive Officer President
[GRAPHIC OMITTED]
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Jhaveri Value Fund
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<TABLE>
Schedule of Investments
March 31, 2000
<CAPTION>
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Shares/Principal Amt- % of Assets Market Value Shares/Principal Amt- % of Assets Market Value
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<S> <C> <C> <C>
COMMON STOCKS
Aerospace, Aircraft, Defense - 3.36% Computer-Mini/Micro - 2.73%
5,100 B.F. Goodrich Co. 146,306 9,900 Compaq Computer Corp. 263,587
2,000 Boeing Co. 75,875 1,800 Dell Computer Corp.* 97,087
5,300 Lockheed Martin Corp. 108,318 ------
2,700 Raytheon Co. (Class A) 50,793 360,674
1,000 United Technologies 63,187 Computer-Peripheral Equipment - 0.99%
-------
444,479 8,200 Storage Technology* 130,687
Auto Parts-Retail/Wholesale - 0.48% -------
Container-Metal/Glass - 0.67%
4,000 Delphi Automotive 64,000
------- 5,500 Crown Cork& Seal Co. 88,000
------
Auto/Truck Replace/Original Parts - 2.07% Cosmetics & Personal Care - 1.62%
9,400 Federal Mogul Corp. 156,863 5,700 Gillette Co. 214,819
5,000 Goodyear Tire & Rubber 116,563 -------
------- Diversified Operation - 0.71%
273,426
Automobile Manufacturing - 2.07% 1,100 Monsanto Co. 56,650
1,800 National Service Industries 37,912
3,200 Daimler Chrysler Corp. 209,400 ------
1,400 Ford Motor Corp. 64,313 94,562
------- Electronics Equipment - 1.08%
273,713
1,900 Emerson Electronic Co. 100,463
Banks-Money Center - 0.40% 800 Honeywell Inc. 42,150
------
400 Bankamerica Corp. 20,975 142,613
1,200 Toronto-Dominion Bank 32,025
------- Fertilizers - 0.89%
53,000
8,000 IMC Global 117,500
Banks-Regional - 5.00% -------
4,500 Banc One Corp. 154,687 Finance Mortgage & Rel Svcs - 0.30%
5,600 First Union Corp. 208,600
5,000 Firstar Corp. 114,687 900 Federal Home Loan Mortgage Corp Vtg 39,769
7,600 KeyCorp 144,400 ------
1,800 US Bancorp 39,375 Finance-Savings & Loan - 0.80%
---------
661,749 4,000 Washington Mutual 106,000
-------
Beverages-Alcholic/Soft Drink - 2.07%
Food-Misc Preperation - 8.28%
3,700 Coca Cola Co. 173,668
2,900 Pepsico Inc 100,231 2,600 Campbell Soup Co. 79,950
-------- 28,100 Chiquita Brands Intl Inc.* 133,475
273,899 6,600 ConAgra Inc 119,625
1,700 General Mills Inc. 61,519
Building-Construction/Prod/Mis - 1.46% 3,800 H.J. Heinz Co. 132,525
1,400 Hershey Foods Corp. 68,250
10,800 Armstrong World Industries 193,050 6,400 Kellogg Co. 164,800
-------- 1,000 Nabisco Holdings Class A 32,188
Building-Heavy Construction - 0.81% 1,800 Ralston Purina 49,275
3,300 Sara Lee Corp. 59,400
15,500 Empresas Ica Socie- Dad Sa Adr 37,781 3,400 Unilever Nv 163,625
2,200 Fluor Corp. 69,163 400 Wrigley (Wm.) Jr. Co. 30,725
------- ------
106,944 1,095,357
Chemicals-Diversified - 1.20% Hotels & Motels - 0.60%
3,000 dupont (E.I.) deNemours & Co. 158,625 10,200 Hilton Hotels Corp. 79,050
-------- ------
Computer Software - 1.70%
900 BMC Software* 44,437
1,700 Microsoft Corp.* 180,625
--------
225,062
</TABLE>
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Jhaveri Value Fund
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<TABLE>
Schedule of Investments
March 31, 2000
<CAPTION>
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Shares/Principal Amt- % of Assets Market Value Shares/Principal Amt- % of Assets Market Value
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<S> <C> <C> <C>
Medical-Health Maint Org. - 0.33%
1,700 Columbia/Hca Healthcare Corp. 43,031
------
Medical Hospitals/Nursing Home - 0.48%
Household Appliances - 0.38% 4,500 Health Mgmt. Assoc Inc Class A* 64,125
------
1,500 Maytag Corp. 49,688 Medical/Dental-Supplies - 1.09%
-------
Housewares - 0.43% 4,600 Becton Dickinson & Co. 121,038
2,200 STERIS Corp.* 22,550
2,300 Newell Rubbermaid Inc. 57,069 ------
------- 143,588
Insurance-Life/Property/Caualty - 2.98% Metal Ores-Gold/Non Ferrous - 0.83%
1,000 Aetna Life & Casualty 55,688 6,000 Inco Ltd.* 109,875
4,100 Allstate Corp. 97,631 -------
11,099 Conseco Inc. 126,944 Office Equipment & Supplies - 2.31%
1,500 Progressive Corp. 114,094
--------- 3,700 Staples Inc.* 74,000
394,357 8,900 Xerox 231,400
Internet - 0.57% -------
305,400
1,000 America Online* 67,250 Oil & Gas-Field Services - 0.49%
950 Circle.com* 7,838
------ 1,200 Baker Hughes Inc 36,300
75,088 700 Halliburton 28,700
Leisure Products - 1.07% ------
9,400 Mattel Inc. 98,113 65,000
1,800 Galileo 43,313 Oil & Gas-International Integ - 1.28%
-------
141,426 400 BP Amoco Plc Adr 21,200
Leisure Services - 2.68% 1,600 Chevron Corp. 147,900
-------
10,000 AutoNation Inc.* 79,375 169,100
2,700 Disney (Walt) Co. 111,713 Oil & Gas-Us Integrated - 1.41%
7,500 Mirage Resorts, Inc.* 145,313
500 SABRE Holdings 18,250 1,900 Atlantic Richfield Co, 161,500
------- 1,200 Occidental Petroleum 24,900
354,651 ------
Machinery-Construct/Mining/Farm - 0.60% 186,400
Paper & Paper Products - 0.32%
2,000 Caterpillar Inc. 78,875
------- 1,000 International Paper 42,750
Medical Instruments/Products - 0.45% -------
Photo Equipment & Supplies - 0.78%
2,800 Boston Scientific Corp.* 59,675
------- 1,900 Eastman Kodak Co. 103,194
Medical-Drugs - 14.37% --------
Pollution Control-Eqpmt/Svcs - 2.39%
4,000 Abbott Laboratories 140,750
6,500 American Home Products Corp. 48,563 9,000 Allied Waste* 59,063
2,600 Bristol Myers Squibb Co. 150,150 18,800 Waste Management 257,325
1,500 Dura Pharmaceutical 18,469 -------
2,200 Glaxo Wellcome Plc 126,088 316,388
2,700 Johnson & Johnson 189,506 Retail-Apparel/Shoe - 0.42%
2,700 Lilly, Eli & Co. 170,100 3,500 Abercrombie & Fitch* 56,000
8,500 McKesson HBOC Inc. 178,500 ------
2,200 Merck & Co. Inc. 136,675 Retail-Department Stores - 3.24%
3,800 Pfizer Inc. 138,938
1,200 Pharmacia & Upjohn 71,100 41,200 K Mart Corporation* 399,125
4,900 Schering-Plough Corp. 180,075 2,000 Penney, J.C. Co. Inc. 29,500
800 Smith Kline Beecham 52,850 ------
------- 428,625
1,901,764
</TABLE>
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Jhaveri Value Fund
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<TABLE>
Schedule of Investments
March 31, 2000
<CAPTION>
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Shares/Principal Amt- % of Assets Market Value Shares/Principal Amt- % of Assets Market Value
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<S> <C> <C> <C>
Telecommunications Equipment - 1.02%
Medical-Generic Drugs - 1.56%
1,800 Lucent Technologies 109,350
7,500 Mylan Laboratories 206,250 400 Tellabs Inc.* 25,194
------- ------
Retail-Discount & Variety - 1.13% 134,544
Telecommunications Services - 2.16%
10,100 Toys-R-Us Inc.* 149,606
-------- 2,000 American Telephone & Telegraph 112,500
Retail-Drug Stores - 0.14% 11,500 Telekomunik Indonesia 109,250
1,400 MCI Worldcom Inc.* 63,438
500 CVS Corp. 18,781 ------
------ 285,188
Retail-Food & Restaurant - 2.41% Textile-Apparel/Mill Products - 0.89%
4,100 Fleming Companies Inc. 61,756 4,600 Polo Ralph Lauren* 85,962
1,700 McDonalds Corp. 63,856 2,200 Tommy Hilfiger* 31,900
1,000 Starbucks Corp.* 44,813 ------
4,800 Tricon Global Rest.* 149,100 117,862
-------- Tobacco - 0.32%
319,525
Retail-Mail Order & Direct - 0.41% 2,000 Philip Morris Companies Inc. 42,250
------
2,900 Cendant Corp. 53,650 Transport-Air Freight - 0.47%
------
Retail-Supermarkets - 2.25% 1,800 Airborne Freight Corp. 43,200
500 Fed Ex Corp.* 19,500
4,100 Albertsons Inc. 127,100 ------
1,600 Koninklijke 42,400 62,700
2,400 Safeway Inc.* 108,600 Transportation-Airline - 1.52%
1,000 Winn-Dixie Stores Inc. 19,437
------- 400 Delta Air Lines Inc. 21,300
297,537 3,700 Southwest Airlines Co. 77,006
Retail/Wholesale Computers - 0.33% 1,700 UAL Corp.* 102,850
--------
2,800 Ingram Micro Inc.* 43,050 201,156
------- Utility-Electric Power - 0.97%
Retail/ Wholesale-Office Supplies - 0.54%
500 Dominion Resources Inc. 19,218
6,200 Office Depot Inc.* 71,687 2,800 Edison Intl. 46,375
------ 4,000 Western Resources 63,250
Rubber-Tires - 0.49% ------
128,843
5,200 Cooper Tire & Rubber Co, 65,325 Utility-Telephone - 0.48%
-------
Shoes & Related Apparel - 0.97% 1,500 SBC Communications 63,000
------
5,000 Fila Holdings* 37,187
2,300 Nike Inc. Class B 91,137 Total for Common Stock - 98.99% 13,097,500
------ ----------
128,324
Soap & Cleaning Preperations - 1.98% Money Market Funds - 0.08%
3,400 Clorox Co. 110,500 10,223 Firstar Treasury 10,223
2,700 Procter & Gamble Co. 151,875 ------
-------
262,375 Total Investments - 99.07% 13,107,723
Steel-Producers - 0.78% (Cost - 13,852,648)
13,800 Bethlehem Steel Corp.* 82,800
800 Usx - U.S. Steel Group New 20,000 Other Assets Less Liabilities- 0.93% 123,549
------
102,800 Net Assets - 100.00% 13,231,272
</TABLE>
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Jhaveri Value Fund
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Statement of Assets and Liabilities
March 31, 2000
Assets:
Investment Securities at Market Value $ 13,107,723
(Identified Cost - 13,852,648)
Receivables:
Dividends and Interest 20,840
Receivable for securities sold 129,383
------------
Total Assets 13,257,946
Liabilities:
Accrued Expenses 26,674
------------
Total Liabilities 26,674
Net Assets $ 13,231,272
Net Assets Consist of:
Capital Paid In 12,641,269
Accumulated Realized Gain (Loss) on Investments - Net 1,334,928
Unrealized Depreciation in Value
of Investments Based on Identified Cost - Net (744,925)
Net Assets, for 1,057,136 Shares Outstanding $ 13,231,272
Net Asset Value and Redemption Price
Per Share ($13,231,272/1,057,136 shares) 12.52
Offering Price Per Share 12.52
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Jhaveri Value Fund
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Statement of Operations
for year ended March 31, 2000
Investment Income:
Dividends 171,645
Interest 27,499
--------
Total Investment Income 199,144
Expenses
Management Fees (Note 2) 336,851
Administrative Fees -
--------
Total Expenses 336,851
Net Investment Income (137,707)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments 2,270,037
Unrealized Appreciation (Depreciation) on Investments 76,345
Net Realized and Unrealized Gain (Loss) on Investments 2,346,382
Net Increase (Decrease) in Net Assets from Operations 2,208,675
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Jhaveri Value Fund
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<TABLE>
Statement of Changes in Net Assets
<S> <C> <C>
4/1/99 4/1/98
to to
3/31/00 3/31/99
From Operations:
Net Investment Income (137,707) (192,434)
Net Realized Gain (Loss) on Investments 2,270,037 (207,455)
Net Unrealized Appreciation (Depreciation) 76,345 (2,485,670)
---------- -----------
Increase (Decrease) in Net Assets from Operations 2,208,675 (2,885,559)
From Distributions to Shareholders
Net Investment Income 0 0
Net Realized Gain (Loss) from Security Transactions (928,093) (248,351)
---------- -----------
Net Increase (Decrease) from Distributions (928,093) (248,351)
From Capital Share Transactions:
Proceeds From Sale of Shares 1,931,886 1,388,967
Shares Issued on Reinvestment of Dividends 928,093 248,351
Cost of Shares Redeemed (3,136,312) (2,450,208)
----------- -----------
Net Increase from Shareholder Activity (276,333) (812,890)
Net Increase in Net Assets 1,004,249 (3,946,800)
----------- -----------
Net Assets at Beginning of Period 12,227,023 16,173,823
=========== ===========
Net Assets at End of Period 13,231,272 12,227,023
=========== ===========
Share Transactions:
Issued 159,823 113,731
Reinvested 77,991 23,254
Redeemed (256,572) (210,607)
----------- -----------
Net increase (decrease) in shares (18,758) (73,622)
Shares outstanding beginning of period 1,075,894 1,149,516
----------- -----------
Shares outstanding end of period 1,057,136 1,075,894
</TABLE>
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Jhaveri Value Fund
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<TABLE>
Financial Highlights
Selected data for a share outstanding throughout the period:
<S> <C> <C> <C> <C> <C>
4/1/99 4/1/98 4/1/97 4/1/96 5/01/95*
to to to to to
3/31/00 3/31/99 3/31/98 3/31/97 3/31/96
Net Asset Value -
Beginning of Period 11.36 14.07 12.64 12.38 12.00
Net Investment Income (0.13) (0.17) (0.09) (0.11) 0.00
Net Gains or Losses on Securities
(realized and unrealized) 2.25 (2.33) 3.97 1.27 0.79
----- ------ ----- ----- ----
Total from Investment Operations 2.12 (2.50) 3.88 1.16 0.79
Dividends (from net investment income) 0.00 0.00 0.00 0.00 (0.04)
Distributions (from capital gains) (0.96) (0.21) (2.45) (0.90) (0.37)
------ ------ ------ ------ ------
Total Distributions (0.96) (0.21) (2.45) (0.90) (0.41)
Net Asset Value -
End of Period 12.52 11.36 14.07 12.64 12.38
Total Return 19.08% (17.66)% 33.74% 9.23% 7.45%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 13,231 12,227 16,174 11,104 9,124
Ratio of Expenses to Average Net Assets 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % **
Ratio of Net Income to Average Net Assets (1.03)% (1.43)% (0.70)% (0.87)% (0.02)% **
Portfolio Turnover Rate 130.85 % 83.09 % 58.92 % 54.48 % 45.23 %
<FN>
*Commencement of Operations
**Annualized
</FN>
</TABLE>
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JHAVERI VALUE FUND
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NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
Note 1. Organization
The Jhaveri Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management Investment Company.
The Trust was established under the laws of Ohio by an Agreement and Declaration
of Trust dated January 18, 1995 (the "Trust Agreement"). The Trust Agreement
permits the Trustees to issue an unlimited number of shares of beneficial
interest of separate series without par value. Shares of one series have been
authorized, which shares constitute the interests in the Jhaveri Value Fund (the
"Fund"). The Fund's investment objective is to provide long term capital
appreciation. The Fund seeks to achieve its objective by investing primarily in
a broad range of common stocks believed by its Adviser to have above average
prospects for appreciation, based on a proprietary investment model developed by
the Adviser.
Note 2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Security Valuation-Securities which are traded on any exchange or on the NASDAQ
over-the-counter market are valued at the last quoted sale price. Lacking a last
sale price, a security is valued at its last bid price except when, in the
Adviser's opinion, the last bid price does not accurately reflect the current
value of the security. All other securities for which over-the-counter market
quotations are readily available are valued at their last bid price. When market
quotations are not readily available, when the Adviser determines the last bid
price does not accurately reflect the current value or when restricted
securities are being valued, such securities are valued as determined in good
faith by the Adviser, in conformity with guidelines adopted by and subject to
review of the Board of Trustees of the Trust.
Fixed income securities generally are valued by using market quotations, but may
be valued on the basis of prices furnished by a pricing service when the Adviser
believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Adviser,
subject to review of the Board of Trustees. Short term investments in fixed
income securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
Federal Income Taxes-The Fund intends to qualify each year as a "Regulated
Investment Company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions-The Fund intends to distribute substantially all of
its net investment income as dividends to its shareholders on an annual basis.
The Fund intends to distribute its net long-term capital gains and its net
short-term capital gains at least once a year.
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 and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reported
period. Actual results could differ from those estimates.
Other-The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrued
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
<PAGE>
Note 3. Investment Advisory Agreement
The Trust has an investment advisory agreement with Investments Technology, Inc.
Ramesh C. Jhaveri and Saumil R. Jhaveri may be deemed to be controlling persons
and affiliates of the Adviser due to their ownership of its shares and their
positions as officers and directors of the Adviser. They, because of such
affiliation, may receive benefits from the management fees paid to the Adviser.
Under the terms of the management agreement, (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage, taxes, interest, expenses
incurred in connection with the organization and initial registration of its
shares and extraordinary expenses. As compensation for its management services
and agreement to pay the Fund's expenses, the Fund is obligated to pay the
Adviser a fee computed and accrued daily and paid monthly at an annual rate of
2.50% of the average daily net assets of the Fund. In this regard, it should be
noted that most investment companies pay their own operating expenses directly,
while the Fund's expenses, except those specified above, are paid by the
Adviser. For the year ending March 31, 2000, the Adviser has received a fee of
$336,851 from the Fund.
Note 4. Distributions to Shareholders
On December 15, 1999, a short-term capital gain distribution of $0.9581
aggregating ($928,093) was declared from net realized gains from investment
transactions during 1999. The dividend was paid December 15, 1999, to
shareholders of record on December 14, 1999.
Note 5. Investments
For the year ending March 31, 2000 purchases and sales of investment securities,
other than short-term investments, aggregated $17,044,717 and $18,199,359
respectively. The gross unrealized appreciation for all securities totaled
$1,178,231 and the gross unrealized depreciation for all securities totaled
$(1,923,156) or a net unrealized depreciation of $(744,925). The aggregate cost
of securities for federal income tax purposes at March 31, 2000 was $13,852,648.
Note 6. Reclassification of Capital Accounts
The Fund has adopted Statement of Position 93-2, Determination, Disclosure and
Financial Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies. As a result of this statement, the Fund
changed the classification of distributions to shareholders to better disclose
the difference between financial statement amounts and distributions determined
in accordance with income tax regulations. Accordingly, undistributed net
investment loss and paid in capital have adjusted as of March 31, 2000 in the
following amounts. These restatements did not affect net investment income, net
realized gain (loss) or net assets for the year ended March 31, 2000.
Undistributed Net Investment Loss Paid in Capital
137,707 (137,707)
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
Jhaveri Value Fund:
We have audited the accompanying statement of assets and liabilities of Jhaveri
Value Fund, including the schedule of portfolio investments, as of March 31,
2000, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the four years and for the period
from May 1, 1995 (commencement of operations) to March 31, 1996 in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash owned
as of March 31, 2000, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Jhaveri Value Fund as of March 31, 2000, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years and
for the period from May 1, 1995 (commencement of operations) to March 31, 1996
in the period then ended, in conformity with generally accepted accounting
principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
April 12, 2000
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