--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
================================================================================
Jhaveri Value Fund
================================================================================
A No-Load Capital Appreciation Fund
September 30, 2000
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
JHAVERI VALUE FUND
(440) 356-1565
www.jhaverivaluefund.com
November 16, 2000
Dear Fellow Shareholders:
The market in the third quarter reacted to the slowing economy and the threat of
a recession. As of November 15, 2000 all of the three major indices are posting
negative returns year to date. The Dow Jones Industrials are down -5.4%, the S&P
500 is down -4.3% and the Nasdaq is down -22.2%. The Jhaveri Value Fund has
continued to outperform all three indices throughout this year. As of November
15, 2000, JVF's Net Asset Value was $12.71 which is up 1.9% year to date.
The market has been extremely volatile during the last quarter. The Dow Jones
Industrials dropped below 9,800 briefly and the Nasdaq dropped below 2900. This
volatility has created many opportunities especially in the tech industry, to
purchase high quality companies many of which are down over 50% from their
highs.
The current market continues to be a rotationally correcting market. This means
many stocks and industries are making new highs, and at the same time, many
stocks and industries are making new lows. This market environment is ideal for
our enhanced investment strategy. Currently we remain fully 100% invested. We
are optimistic that our Investment Management Strategy will continue to perform
well under the current market conditions.
Economic Outlook:
The twin engines of the economy; corporate investment and consumer spending
represent more than two thirds of the economy. Evidence suggests that these twin
engines made their cyclical top and are now decelerating. Analysts are weighing
the economic indicators to try and determine if the economy is going to have a
soft landing or is it headed for a hard landing and recession. Evidence is
gathering on both sides of the equation. Our view is that a recession is not on
the horizon and that this tug-of-war will be resolved positively and economic
expansion will continue.
Market Outlook:
Over the last six months, the market has popped investment bubbles one by one.
Telecom, internet, fiber optics, wireless communications, and the bio-tech
stocks have all come down significantly from their highs. The market has been
extremely volatile over the last few months. To further exacerbate this
volatility is tax-loss selling by mutual funds whose tax year ends October 31.
This tax-loss selling creates pockets of undervaluation and oversold conditions
in good quality stocks. JVF's investment model and strategy is designed to take
advantage of these opportunities. As of today, we are outperforming the Dow
Jones Industrial, S&P 500, and NASDAQ markets. We are very optimistic that we
will continue this good performance through the end of this year and into the
next year.
Sincerely,
/S/ /S/
----------------------- --------------------------
Ramesh C. Jhaveri Saumil R. Jhaveri
Chief Executive Officer President
<PAGE>
==============================================================================
Jhaveri Value Fund
==============================================================================
Schedule of Investments
September 30, 2000 (unaudited)
------------------------------------------------------------------------------
Shares/Principal Amt- % of Assets Market Value
------------------------------------------------------------------------------
COMMON STOCKS
Auto Parts-Retail/Wholesale- - 0.47%
4,000 Delphi Automotive 60,500
----------
Auto/Truck Replace/Original Parts - 1.73%
800 Cummins Engine Co. 23,950
11,400 Federal Mogul Corp. 61,988
7,500 GoodYear Tire & Rubber 135,000
----------
220,938
Automobile Manufacturing - 2.05%
5,900 Daimler Chrysler Corp. 261,901
----------
Banks-Money Center - 0.41%
1,000 Bankamerica Corp. 52,375
----------
Banks-Regional - 4.69%
2,500 Banc One Corp. 96,563
5,600 First Union Corp. 180,250
5,000 Firstar Corp. 111,875
6,600 KeyCorp 167,063
1,900 US Bancorp 43,225
----------
598,976
Beverages-Alcholic/Soft Drink - 2.26%
4,400 Coca Cola Co. 242,550
1,000 Pepsico Inc 46,000
----------
288,550
Building Products-Wood - 0.51%
2,800 Georgia Pacific Corp. 65,800
----------
Building-Construction/Prod/Mis - 1.10%
11,800 Armstrong World Industries Inc. 140,863
----------
Building-Heavy Construction - 0.73%
15,500 Empresas Ica Socie- Dad Sa Adr* 27,125
2,200 Fluor Corp. 66,000
----------
93,125
Chemicals-Diversified - 3.10%
3,200 Dow Chemical 79,800
6,200 dupont (E.I.) deNemours & Co. 256,913
1500 PPG Industries Inc. 59,531
----------
396,244
Computer Optical Recognition - 0.42%
1500 Symbol Technologies Inc. 53,906
----------
Computer Services - 0.16%
500 Electronic Data Systems 20,750
----------
Computer-Software - 5.36%
6,000 Bmc Software* 114,750
5,700 Citrix Systems* 114,356
1,500 Computer Associates Int'l. Inc. 37,781
2,500 Compuware Corp.* 20,938
6,600 Microsoft Corp.* 397,650
----------
685,475
Computer-Local Network - 0.43%
1,000 Cisco Systems Inc.* 55,250
----------
Computer-Mainframes - 0.44%
500 Int'l Business Machines Inc. 56,250
2,500 Unisys Corp.* 28,125
----------
84,375
Computer-Mini/Micro - 1.94%
9,000 Compaq Computer Corp. 248,400
5,200 Dell Computer Corp.* 160,225
500 Hewlett-Packard Co. 48,500
----------
457,125
Computer-Peripheral Equipment - 1.91%
3,000 American Power Conversion Corp.* 57,563
2,000 Lexmark Intl Group* 75,000
8,200 Storage Technology 111,213
----------
243,776
Container-Metal/Glass - 0.38%
4,500 Crown Cork & Seal Co. 48,094
----------
<PAGE>
Cosmetics & Personal Care - 2.34%
9,700 Gillette Co. 299,488
----------
Diversified Operation - 0.38%
1,000 Agilent Technologies* 48,937
----------
Electronic Equipment - 1.03%
3,700 Honeywell Inc. 131,813
----------
Electronic Products/Misc - 0.10%
500 AVX Corp. 13,031
----------
Electronic-Semiconductors - 2.54%
2,000 Intel Corp. 83,125
500 LSI Logic Group* 14,625
4,700 Motorola Inc. 132,775
2,000 Texas Instruments Inc. 94,375
----------
324,900
Fertilizers - 0.45%
4,000 IMC Global 58,000
----------
Finance-Savings & Loan - 0.16%
500 Washington Mutual 19,906
----------
Food-Misc Preperation - 7.71%
3,600 Campbell Soup Co. 93,150
28,100 Chiquita Brands Intl Inc.* 87,812
6,600 ConAgra Inc 132,413
1,500 General Mills Inc. 53,250
4,000 H.J. Heinz Co. 148,250
7,500 Kellogg Co. 181,406
1,200 Ralston Purina 28,425
3,300 Sara Lee Corp. 67,031
4,000 Unilever Nv 193,000
----------
984,737
Hotels & Motels - 0.36%
4,000 Hilton Hotels Corp. 46,250
----------
Housewares - 0.41%
2,300 Newell Rubbermaid Inc. 52,469
----------
Internet - 0.65%
1,000 America Online* 53,750
1,500 Safeguard Scientific* 29,906
----------
83,656
Leisure Products - 1.04%
1,800 Galileo 27,900
9,400 Mattel Inc. 105,163
----------
133,063
Leisure Services - 1.80%
5,000 AutoNation Inc.* 30,000
1,000 Carnival Cruise Lines, Cl. A 24,625
2,700 Disney (Walt) Co. 103,275
2,500 SABRE Holdings 72,344
----------
230,244
Machinery-Construct/Mining/Farm - 0.66%
2,000 Caterpillar Inc. 67,500
500 Deere & Co. 16,625
----------
84,125
Medical Instruments/Products - 1.10%
7,000 Boston Scientific Corp.* 115,063
500 Medtronic Inc. 25,906
------
140,969
Medical-Drugs - 12.99%
3,500 Abbott Laboratories 166,469
4,200 American Home Products Corp. 237,562
4,100 Bristol Myers Squibb Co. 234,213
1,700 Glaxo Wellcome Plc 102,744
1,100 Johnson & Johnson 103,331
1,000 Lilly, Eli & Co. 81,125
6,500 McKesson HBOC Inc. 198,656
2,700 Merck & Co. Inc. 200,981
2,800 Pfizer Inc. 125,825
4,500 Schering-Plough Corp. 209,250
----------
1,660,156
Medical-Generic Drugs - 1.58%
7,500 Mylan Laboratories Inc. 202,031
----------
Medical Hospitals/Nursing Home - 0.21%
1,300 Health Management Assoc. Inc. * 27,056
----------
Medical/Dental-Supplies - 1.16%
5,600 Becton Dickinson & Co. 148,050
----------
<PAGE>
Metal Ores-Gold/Non Ferrous - 1.35%
3,000 Aluminum Co. of America 75,938
6,000 Inco Ltd.* 96,750
----------
172,688
Motor Vehicle Parts and Accessories - 0.16%
500 Trw Inc. 20,313
----------
National Commercial Bank- 0.18%
500 Chase Manhattan 23,094
----------
Office Equipment & Supplies - 2.50%
6,200 Staples Inc.* 87,962
15,400 Zerox Corp. 231,963
----------
319,925
Oil & Gas-International Integrated - 2.50%
2,816 British Petroleum Co. 149,247
2,000 Chevron Corp. 170,500
----------
319,747
Oil & Gas-Us Integrated - 0.17%
1,000 Occidental Petroleum 21,812
----------
Ophthalmic Support- 0.15%
500 Bausch & Lomb Inc. 19,469
----------
Paper & Paper Products - 0.38%
1,700 International Paper 48,769
----------
Photo Equipment & Supplies - 1.31%
4,100 Eastman Kodak Co. 167,587
----------
Pollution Control-Eqpmt/Svcs - 2.89%
7,000 Allied Waste* 64,312
17,500 Waste Management 305,156
----------
369,468
Retail-Apparel/Shoe - 0.95%
6,000 Gap Inc. 120,750
----------
Retail-Consumer/Electric - 0.58%
3,200 Circuit City Stores Inc. 73,600
----------
Retail-Department Stores - 1.95%
37,200 K Mart Corporation* 223,200
1,000 Target Corp. 25,625
----------
248,825
Retail-Discount & Variety - 1.52%
9,000 Toys-R-Us Inc.* 146,250
1,000 Wal-mart Stores Inc. 48,125
----------
194,375
Retail-Food & Restaurant - 2.33%
5,000 McDonalds Corp. 150,937
4,800 Tricon Global Rest.* 147,000
----------
297,937
Retail-Mail Order & Direct - 0.25%
2,900 Cendant Corp.* 31,537
----------
Retail-Supermarkets - 1.22%
6,100 Albertsons Inc. 128,100
1,000 American Hoist & Derrick 28,188
----------
156,288
Retail/Wholesale Computers - 0.22%
2,000 Ingram Micro Inc.* 27,500
----------
Rubber-Tires - 0.41%
5,200 Cooper Tire & Rubber Co. 52,325
----------
Shoes & Related Apparel - 0.16%
500 Nike Inc. Class B 20,031
----------
Soap & Cleaning Preperations - 2.47%
2,400 Clorox Co. 94,950
2,700 Proctor & Gamble Co. 221,100
----------
316,050
Steel-Producers - 0.33%
2,800 USX- U.S. Steel Group New 42,525
----------
Telecommunications Cellular - 0.25%
1,000 China Mobile LTD.* 32,437
----------
<PAGE>
Telecommunications Equipment - 4.28%
8,200 Lucent Technologies 250,612
500 Nokia Corp. 19,906
4,000 Qualcom* 285,000
1,000 Tellabs Inc.* 47,750
----------
603,268
Telecommunications Services - 4.28%
2,000 American Telephone & Telegraph 146,875
5,200 Sprint Corp. 152,425
6,500 Telekomunik Indonesia 40,625
2,000 Verizon Communications 96,875
1,000 Vodaphone Airtouch 37,000
24,000 MCI Worldcom Inc.* 72,900
----------
546,700
Textile-Apparel/Mill Products - 0.40%
3,600 Polo Ralph Lauren* 58,050
----------
Transport-Air Freight
2,800 Airborne Freight Corp. 28,525
500 FDX Corp.* 22,170
----------
50,695
Transportation-Airline - 0.93%
1,800 Southwest Air Lines Co. 43,650
1,800 UAL Corp. 75,600
----------
119,250
Utility-Electric Power - 0.51%
3,000 Western Resources 64,875
----------
Utility-Telephone - 0.57%
1,400 Alltel Corp. 73,062
----------
Miscellaneous - 0.16%
1,000 Taiwan Semiconductor 20,375
----------
Total for Common Stock - 102.92% 13,150,231
----------
Money Market Funds - -4.43%
- Firstar Treasury (566,425)
----------
Total Investments - 98.48% 12,583,806
(Cost 14,185,115)
Other Assets Less Liabilities - 1.52% 193,601
Net Assets - 100.00% 12,777,407
==========
<PAGE>
================================================================================
Jhaveri Value Fund
================================================================================
Statement of Assets and Liabilities
September 30, 2000 (unaudited)
Assets:
Investment Securities at Market Value $12,583,806
(Identified Cost 14,185,115)
Receivables:
Dividends and Interest 15,568
Receivable for securities sold 400,213
Total Assets 12,999,587
Liabilities:
Accrued Expenses 26,988
Payable for securities purchased 195,192
Total Liabilities 222,180
Net Assets $12,777,407
Net Assets Consist of:
Capital Paid In 12,491,733
Accumulated Realized Gain (Loss) on Investments - Net 1,922,417
Undistributed net investment income (35,434)
Unrealized Depreciation in Value
of Investments Based on Identified Cost - Net (1,601,309)
Net Assets, for 1,045,129 Shares Outstanding $12,777,407
Net Asset Value and Redemption Price
Per Share ($12,777,407/1,045,129 shares) 12.23
Offering Price Per Share 12.23
<PAGE>
================================================================================
Jhaveri Value Fund
================================================================================
Statement of Operations
for six months ending September 30, 2000 (unaudited)
Investment Income:
Dividends 127,820
Interest 2,458
Total Investment Income 130,278
Expenses
Management Fees (Note 2) 165,712
Total Expenses 165,712
Net Investment Income (35,434)
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments 587,489
Unrealized Appreciation (Depreciation) on Investments (856,384)
Net Realized and Unrealized Gain (Loss) on Investments (268,895)
Net Increase (Decrease) in Net Assets from Operations (304,329)
<PAGE>
================================================================================
Jhaveri Value Fund
================================================================================
Statement of Changes in Net Assets (unaudited)
4/01/00 4/01/99
to to
9/30/00 3/31/00
From Operations:
Net Investment Income (35,434) (137,707)
Net Realized Gain (Loss) on Investments 587,489 2,270,037
Net Unrealized Appreciation (Depreciation) (856,384) 76,345
Increase (Decrease) in Net Assets from Operations (304,329) 2,208,675
From Distributions to Shareholders
Net Realized Gain (Loss) from Security Transactions 0 (928,093)
Net Increase (Decrease) from Distributions 0 (928,093)
From Capital Share Transactions:
Proceeds From Sale of Shares 109,974 1,931,886
Shares Issued on Reinvestment of Dividends 0 928,093
Cost of Shares Redeemed (259,510) (3,136,312)
Net Increase from Shareholder Activity (149,536) (276,333)
Net Increase in Net Assets (453,865) 1,004,249
Net Assets at Beginning of Period 13,231,272 12,227,023
Net Assets at End of Period 12,777,407 13,231,272
Share Transactions:
Issued 8,812 159,823
Reinvested - 77,991
Redeemed (20,819) (256,572)
Net increase (decrease) in shares (12,007) (18,758)
Shares outstanding beginning of period 1,057,136 1,075,894
Shares outstanding end of period 1,045,129 1,057,136
<PAGE>
================================================================================
Jhaveri Value Fund
================================================================================
Financial Highlights (unaudited)
Selected data for a share outstanding throughout the period:
<TABLE>
<S> <C> <C> <C> <C> <C>
4/01/00 4/01/99 4/01/98 4/01/97 4/01/96
to to to to to
9/30/00 3/31/00 3/31/99 3/31/98 3/31/97
Net Asset Value -
Beginning of Period 12.52 11.36 14.07 12.64 12.38
Net Investment Income (0.03) (0.13) (0.17) (0.09) (0.11)
Net Gains or Losses on Securities
(realized and unrealized) (0.26) 2.25 (2.33) 3.97 1.27
Total from Investment Operations (0.29) 2.12 (2.50) 3.88 1.16
Dividends (from net investment income) 0.00 0.00 0.00 0.00 0.00
Distributions (from capital gains) 0.00 (0.96) (0.21) (2.45) (0.90)
Total Distributions 0.00 (0.96) (0.21) (2.45) (0.90)
Net Asset Value -
End of Period 12.23 12.52 11.36 14.07 12.64
Total Return (2.32)% 19.08% (17.66)% 33.74% 9.23%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 12,777 13,231 12,227 16,174 11,104
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 (0.54)% (1.03)% (1.43)% (0.70)% (0.87)%
Portfolio Turnover Rate 107.41% 130.85% 83.09% 58.92% 54.48%
</TABLE>
<PAGE>
================================================================================
JHAVERI VALUE FUND
================================================================================
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 (UNAUDITED)
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 six months ending September 30, 2000, the Adviser has received
a fee of $165,712 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 six months ending September 30, 2000 purchases and sales of investment
securities, other than short-term investments, aggregated $7,548,767 and
$7,130,033 respectively. The gross unrealized appreciation for all securities
totaled $961,699 and the gross unrealized depreciation for all securities
totaled $(2,563,010) or a net unrealized depreciation of $(1,601,309). The
aggregate cost of securities for federal income tax purposes at September 30,
2000 was $14,185,116.
<PAGE>
================================================================================
JHAVERI VALUE FUND
================================================================================
Board of Trustees
Ramesh C. Jhaveri
Saumil R. Jhaveri
Mukul M. Mehta
James F. Mueller
David R. Zavagno
Investment Adviser
Investments Technology, Inc.
18820 High Parkway
Cleveland, OH 44116
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Firstar Bank, N.A.
P.O. Box 640994
Cincinnati, Ohio 45264-0994
Counsel
Brown, Cummins & Brown Co., LPA
3500 Carew Tower
Cincinnati, Ohio 45202
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
<PAGE>
