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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08549
Oak Associates Funds
(Exact name of registrant as specified in charter)
101 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Leslie Manna
Oak Associates, ltd.
3875 Embassy Parkway, Suite 250
Akron, Ohio 44333-8334
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-888-462-5386
Date of fiscal year end: October 31
Date of reporting period: November 1, 2009 – October 31, 2010
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Item 1. Reports to Stockholders.
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We’re pleased to share that the
following Oak Funds have outperformed
their benchmarks over the 1, 3 and 5
year periods ending 10/31/10. | – | White Oak Select Growth Fund (WOGSX) | ||||||
– | Pin Oak Equity Fund (POGSX) | |||||||
– | Rock Oak Core Growth Fund (RCKSX) | |||||||
– | Black Oak Emerging Technology Fund (BOGSX) | |||||||
– | Live Oak Health Sciences Fund (LOGSX) | |||||||
Average Annual Returns as of 10/31/10 (Unaudited)
|
| |||||||||||||||||||||||
1 Year Return | 3 Year Return | 5 year Return | 10 year Return | Net Expense Ratio* | Gross Expense Ratio | |||||||||||||||||||
White Oak Select Growth Fund | 19.47% | -1.66% | 3.69% | -6.89% | 1.25% | 1.34% | ||||||||||||||||||
S&P 500 Total Return Index | 16.52% | -6.49% | 1.73% | -0.02% | ||||||||||||||||||||
Pin Oak Equity Fund | 17.74% | -0.84% | 4.85% | -9.05% | 1.25% | 1.33% | ||||||||||||||||||
S&P 500 Total Return Index | 16.52% | -6.49% | 1.73% | -0.02% | ||||||||||||||||||||
1 Year Return | 3 Year Return | 5 year Return | Inception to Date | Net Expense Ratio* | Gross Expense Ratio | |||||||||||||||||||
Rock Oak Core Growth Fund | 22.77% | -4.64% | 2.92% | 2.67%1 | 1.25% | 1.54% | ||||||||||||||||||
S&P 500 Total Return Index | 16.52% | -6.49% | 1.73% | 1.67%1 | ||||||||||||||||||||
Black Oak Emerging Technology | 34.25% | 0.00% | 7.48% | -11.70%2 | 1.35% | 1.55% | ||||||||||||||||||
NASDAQ 100 Index | 28.32% | -1.09% | 6.72% | -0.60%2 | ||||||||||||||||||||
Live Oak Health Sciences Fund | 20.66% | 2.27% | 2.62% | 3.08%3 | 1.35% | 1.38% | ||||||||||||||||||
S&P 500 Healthcare Index | 13.14% | -2.79% | 2.44% | 1.39%3 | ||||||||||||||||||||
* The Advisor has contractually agreed for a period of 1 year from the date of the prospectus to waive all or a portion of its fee for the Fund (and to reimburse expenses to the extent necessary) in order to limit Fund total operating expenses to 1.25% for White Oak Select Fund, Pin Oak Equity Fund and Rock Oak Core Growth Fund and to 1.35% for Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund. |
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1 Since 12/31/2004. 2 Since 12/29/2000. 3 Since 6/29/2001. |
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The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. |
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HIGHLIGHTS from the 2010 FISCAL YEAR
October 31, 2009 to October 31, 2010 (Unaudited)
January, 2010 | The Wall Street Journal recognizes four Oak Associates Funds. | |
Category Kings in Large-Cap Growth: | ||
White Oak Select Growth Fund | ||
Category Kings in Multi-Cap Growth: | ||
Pin Oak Equity Fund | ||
Category Kings in Small-Cap Growth: | ||
River Oak Discovery Fund | ||
Category Kings in Healthcare/Biotechnology: | ||
Live Oak Health Sciences Fund | ||
(The Wall Street Journal: “Category Kings in 22 Realms.” January 6, 2010.) | ||
February, 2010 | TheStreet.com recognizes the family of Oak Associates Funds | |
Excerpt: “The ‘Ultra’ fund family leading this (small fund company) group is Oak Associates Funds…’ | ||
(TheStreet.com: “Fidelity Tops List of ‘Ultra’ Mutual Funds,” by Kevin Baker. February 5, 2010.) | ||
February, 2010 | “Guide to the Top Mutual Funds” names Live Oak Health Sciences on its list of Health Sector Funds. (American Association of Individual Investors, 29th Edition, Volume XXXII, No. 2. “Guide to the Top Mutual Funds.” February, 2010.) | |
March, 2010 | Pin Oak is featured in Investor’s Business Daily’s ‘Mutual Fund Profile.’ (“Pin Oak Aggressive Thins the Herd,” by Dan Moreau. March 10, 2010.) | |
June, 2010 | River Oak Discovery Fund celebrates its 5-year anniversary. | |
July, 2010 | Black Oak Emerging Technology Fund is selected for Charles Schwab’s Mutual Fund OneSource Select List, Schwab’s quarterly list of prescreened, no-load, no-transaction -fee funds. | |
July, 2010 | Live Oak Health Sciences Fund is featured in the Dow Jones Newswires ‘Tip Sheet.’ (“Live Oak Health Fund Finds Value in Neglected Areas,” by Thomas Gryta. July 26, 2010.) | |
October, 2010 | Red Oak Technology Select Fund is featured in the Dow Jones Newswires ‘Tip Sheet.’ (“Red Oak Tech Looks for Underpriced Stocks,” by Jeanette Borzo. October 8, 2010.) |
READ MORE AT WWW.OAKFUNDS.COM
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Performance Update | ||
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6 | ||
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12 | ||
14 | ||
16 | ||
18 | ||
20 | ||
Financial Statements | ||
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November 30, 2010
Dear Fellow Shareholders,
Equity returns for the past fiscal year have been impressive, with major indexes and all of the Oak Associates Funds achieving double digit returns. The performance of equities stands in contrast to the bleak macroeconomic environment, recent political rhetoric, and the media’s focus on negative news. The divergence between a strong equity market and the lackluster economy is a matter of perspective. The stock market is a forward looking discounting mechanism, which values companies on the present value of future cash flows and earnings. Put simply, we believe earnings have been strong and the outlook for companies looks good. Stock prices reflect this, even though backward looking economic data continues to report stagnant economic conditions.
The strong performance of the market and the Oak Associates Funds occurred during a time of significant concern over the global economic recovery. In early 2010, budget problems in Greece produced a sovereign debt crisis and ultimately led to a bailout by Eurozone countries and the International Monetary Fund. Concerns over a wider sovereign debt contagion tested global stock markets throughout the year, adding volatility sporadically. Meanwhile, the leading stock market in China gained just 1% over the fiscal year. As the growth engine for the global economy, weakness in China fueled fears that the global economic recovery was faltering. And while these issues bear watching, we believe the gains achieved by US stocks confirm that underlying economic conditions continue to improve.
The reflation trade remained a popular investment theme during the year. Commodities such as gold, silver, wheat and copper soared as the appetite for hard assets, potential inflation-protection, and natural resources persisted. Inflationary pressures related to soaring commodity prices will be closely followed going forward. For now however, the returns in commodities appear driven by asset allocation decisions and weakness in the US dollar, rather than long-term supply problems. Nevertheless, strength in commodities would be unusual if the global economy were headed for a second recession.
The valuation of stocks remains attractive compared to bonds and commodities. While equity returns for the last ten years have been flat, earnings growth has been strong, resulting in an attractive valuation versus history. Bonds conversely have benefited from a deflationary environment and declining interest rates thanks to government intervention and a strong appetite from investors for yield and certainty. Going forward, it is hard to imagine a situation where bonds would outperform stocks from existing levels. Monetary authorities are unlikely to support artificially low interest rates forever, or they risk creating another potentially disruptive asset bubble. Meanwhile, corporate balance sheets and profitability are strong. The combination of below average historical returns, attractive valuation, and healthy balance sheets bodes well for equity investors going forward, while a stronger economy, potential inflation, higher interest rates and budget deficits threaten government bond returns.
Despite impressive returns over the past two years, stocks remain an overlooked asset class by many investors and institutions. A preference for safety, yield, and lower volatility persists given the turbulence of the past decade. However, the most popular investment categories are often risky. Having experienced the fervor for equities in the late 1990’s and subsequent dot-com collapse, we believe investors willing to embrace high-quality growth stocks while they appear out-of-favor will be well rewarded over time. Year-to-date flows have disproportionately favored fixed income investments. This tends to be a good contrary indicator for equities.
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1-888-462-5386 | www.oakfunds.com |
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Shareholder Letter
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(Oak Associates continues to focus on long-term investments with strong secular or thematic trends. The fund family is firmly committed to providing best-idea investment portfolios for our clients. Since our firm’s founding 25 years ago, we have held a strong belief in the virtues of concentrated investing. We don’t invest in a sector simply because it exists in an index, and we limit our investments to our best ideas. This produces a low-turnover, high-conviction portfolio for long-term investors. It also avoids a common problem for investors of over-dilution and closet indexing.
During the year, Oak Associates added to its staff and retained ALPS Fund Services as its fund administrator, transfer agency and distribution services provider. There are no plans to add new funds or strategies at this time. The firm and all its employees are committed to diligently serving its clients and are large investors in the firm’s products.
As a portfolio manager of the Oak Associates Funds, I am grateful for the trust you place in us to invest your assets. Thank you for investing alongside us in the Oak Associates Funds.
Best Regards,
Robert Stimpson, CFA
Portfolio Manager
Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Funds that emphasize investments in technology or healthcare generally will experience greater price volatility. There are additional risks associated with investing in a single-sector fund versus a more broadly diversified portfolio, including greater sensitivity to economic, political, or regulatory developments impacting the sector. Funds that emphasize investments in smaller or mid sized companies may experience greater price volatility.
Annual Report | October 31, 2010 |
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James D. Oelschlager Chief Investment Officer & Portfolio Manager | White Oak Select Growth Fund (the “Fund”) gained 19.47% for the year, while the comparative index, the S&P 500 Index, rose 16.52%, and the Lipper Large-Cap Growth Average increased 17.75%.
The market climbed a wall of worry over the past year. Sluggish employment growth, a large federal budget deficit, the deteriorating fiscal health of many states, increasing government regulation of business, and a European sovereign debt crisis occupied investors’ minds. Despite this, stocks posted healthy gains, as corporate profit growth continued to confound the skeptics. During the downturn, companies cut expenses and pared capital spending, which, now coupled with increasing revenues, has produced strong operating leverage, high margins, and record profits. These profits have boosted cash reserves, which should eventually lead to a pickup in capital spending and hiring. |
One of the major stories of the past year is the tidal wave of cash flowing into bond funds. Spooked by the volatility of the stock market and aware of the strong returns of bonds in recent years, investors have pulled money from stock funds and moved into bonds. Strong shifts in public sentiment like this tend to be poorly timed, and we think that unfortunately for those investors, this time will be no different. With bond yields having fallen consistently for nearly three decades, investors have become accustomed to capital appreciation in their fixed-income securities; they have not experienced the erosion of returns that accompanies a rise in yields. If a Treasury bond is yielding 2.50%, it does not take much of a rise in yield (decline in price) to wipe out one’s entire return. With many corporate bonds offering less yield than the dividend on the common shares, and the likelihood of growth of these dividends, it is hard to envision a scenario by which bonds outperform stocks.
Standout performers in the Fund included Salesforce.com, which has built a leading technology platform for business customers to run applications; information technology services company Cognizant, who is taking advantage of the trend toward outsourcing; and Internet commerce giant Amazon.com, which is gaining share in a rapidly growing market.
Laggards included offshore drilling contractor Transocean, which lost business due to the drilling moratorium in the Gulf of Mexico; online brokerage Charles Schwab, who continues to have to waive fees on its money market accounts because short-term interest rates are so low; and financial titan JP Morgan, due to fears about financial regulation. We are encouraged by the fact that the issues at Transocean and Schwab are in all likelihood ephemeral, and that JP Morgan is posting strong results in a tough environment.
The Fund remains fully invested and focused on the sectors that our research has identified as the most appealing, currently technology, energy, consumer discretionary, health care, and financials. Our investment process has produced a concentrated portfolio of quality growth companies that we believe are poised to deliver capital appreciation.
Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Due to the limited number of underlying investments, the Fund is more susceptible to the price movements of any one holding and thus may be more volatile than a more broadly diversified portfolio.
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Performance Update
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All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||||
Ticker Symbol | WOGSX | 1. Amazon.com, Inc. | 6.30% | |||||||
Share Price | $37.56 | 2. eBay, Inc. | 5.49% | |||||||
Total Net Assets | $259.2M |
3. ACE, Ltd. | 5.34% | |||||||
Portfolio Turnover | 14% | 4. Google, Inc. - Class A | 5.25% | |||||||
2010 Distributions | None | 5. KLA-Tencor Corp. | 5.02% | |||||||
6. Qualcomm, Inc. | 4.88% | |||||||||
Industry Weightings^
|
7. Baker Hughes, Inc. | 4.74% | ||||||||
Information Technology | 46.2% |
8. Transocean, Ltd. | 4.73% | |||||||
Health Care | 19.5% |
9. Cognizant Technology Solutions Corp. - Class A | 4.67% | |||||||
Financials | 17.0% |
10. Broadcom Corp. - Class A | 4.61% | |||||||
Energy | 9.5% | |||||||||
Consumer Discretionary | 6.3% | |||||||||
Telecommunication Services | 1.6% | |||||||||
Short Term Investments | 0.1% | |||||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||||
1 Year Return | 3 Year Return |
5 year | 10 year Return | Inception to Date | ||||||||||||||||
White Oak Select Growth Fund |
|
19.47% |
|
|
-1.66% |
|
|
3.69% |
|
|
-6.89% |
|
|
7.67%* |
| |||||
S&P 500 Total Return Index1 |
|
16.52% |
|
|
-6.49% |
|
|
1.73% |
|
|
-0.02% |
|
|
7.88%* |
| |||||
Lipper Large-Cap Growth Funds Average2 |
|
17.75% |
|
|
-5.79% |
|
|
2.11% |
|
|
-1.92% |
|
|
7.32%** |
| |||||
* Since 08/03/1992 ** Since 07/31/1992 | Gross Expense Ratio: 1.34% | |||||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. |
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1Standard& Poor’s is the source and owner of the S&P Index data. See Page 18 for additional disclosure. |
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2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
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Annual Report | October 31, 2010 |
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Mark W. Oelschlager, CFA Portfolio Manager | Pin Oak Equity Fund (the “Fund”) rose 17.74% for the year ended October 31, 2010, while the comparative index, the S&P 500 Index, gained 16.52% and the Lipper Multi-Cap Growth Average returned 21.23%. | |
After the US economy averted disaster in 2009, investors turned their attention in 2010 to whether the recovery would remain on track. An intense focus on, and worries about, the macroeconomic picture led to stock correlations reaching extremely high levels. Frustratingly-low employment growth, a pullback in a few economic indicators, and concerns about a burgeoning European financial crisis combined to drive the market lower in the spring. It is common for people to doubt a recovery in its early stages, as each new cycle brings with it issues that make things feel “different this time.” This understanding, and our research, led us to maintain a cyclical tilt to the portfolio, which paid off as confidence returned in late summer. |
With inflation contained, the Federal Reserve has kept interest rates low and is taking other measures to provide liquidity in order to offset the effects of deleveraging. A major goal is to bring down unemployment. The last expansion was labeled a “jobless recovery,” but the jobs eventually came back. While 5% unemployment is a long way off, we expect the jobs to come back this time as well.
Our commitment to the consumer discretionary sector, an unpopular area among market participants, was a big contributor to performance during the year. Shares of Amazon.com, Ann Taylor, Ticketmaster (which was acquired) and Interval Leisure Group all posted healthy gains.
The Fund’s energy holdings, such as Noble Corporation, Hercules Offshore, and Pioneer Drilling, were a drag on returns, as the BP oil spill led to a drilling ban in the Gulf of Mexico.
It astounds us that so many portfolio managers continue to be so short-term focused. This has led them to search for any informational advantage they can find, from advanced knowledge about large trading orders to utilization of “expert networks” to speed trading. The last of these actually involves firms locating their computer servers as close as possible to those of the New York Stock Exchange, so as to minimize the amount of time it takes for trade data to make its way through communication lines. Aside from the shadiness of some of these practices, they also strike us as unwise investing strategies. The paradox of this increasing focus on short-term returns is that it actually provides greater opportunities for our approach – to look for superior businesses trading at attractive prices and to exploit dislocations in the market that occur for transient reasons. We continue to believe that the best way to outperform the market is to employ a long-term, low turnover style.
Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions.
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1-888-462-5386 | www.oakfunds.com |
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Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||
Ticker Symbol | POGSX | 1. Amdocs,Growth Ltd. | 5.38% | |||||
Share Price | $26.76 | 2. BMC Software, Inc. | 4.69% | |||||
Total Net Assets | $69.8M | 3. CIT Group, Inc. | 4.53% | |||||
Portfolio Turnover | 35% | 4. The Charles Schwab Corp. | 4.52% | |||||
2010 Distributions | $0.01/Share | 5. Nabors Industries, Ltd. | 4.29% | |||||
6. Google, Inc. - Class A | 4.21% | |||||||
Industry Weightings^
| 7. Fair Isaac Corp. | 4.20% | ||||||
Information Technology | 35.1% |
8. Noble Corp | 4.13% | |||||
Consumer Discretionary | 22.0% |
9. Garmin, Ltd. | 3.95% | |||||
Energy | 16.2% |
10. Amazon.com, Inc. | 3.95% | |||||
Financials | 14.1% | |||||||
Industrials | 6.2% | |||||||
Utilities | 3.5% | |||||||
Health Care | 3.4% | |||||||
Short Term Investments | 0.6% | |||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||||
1 Year |
3 Year |
5 year |
10 year |
Inception | ||||||||||||||||
Pin Oak Equity Fund |
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17.74% |
|
|
-0.84% |
|
|
4.85% |
|
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-9.05% |
|
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5.76%* |
| |||||
S&P 500 Total Return Index1 |
|
16.52% |
|
|
-6.49% |
|
|
1.73% |
|
|
-0.02% |
|
|
7.88%* |
| |||||
Lipper Multi-Cap Growth Funds Average2 |
|
21.23% |
|
|
-5.78% |
|
|
3.14% |
|
|
-0.52% |
|
|
8.32%** |
| |||||
* Since 08/03/1992 ** Since 07/31/1992 |
|
Gross Expense Ratio: 1.33% |
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The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. | ||||||||||||||||||||
1Standard& Poor’s is the source and owner of the S&P Index data. See Page 18 for additional disclosure. |
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2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
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Annual Report | October 31, 2010 |
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Robert Stimpson, CFA Portfolio Manager | Rock Oak Core Growth Fund (the “Fund”) rose 22.77% for the fiscal year ending October, 31, 2010. The Fund outperformed the benchmark S&P 500 Index’s gain of 16.52%. Since inception on December 31, 2004, the Fund has returned 2.67% per year compared to the 1.67% gain in the S&P 500.
The fiscal year 2010 saw equities continue the recovery from the sharp 2008 recession. Although the economy and macroeconomic data remained weak throughout the year, equity investors actively sought out companies with strong growth prospects, benefiting many of the stocks owned by the Fund. In periods of lackluster economic growth, investors are willing to pay more for companies capable of achieving growth in challenging environments. While fixed-income and high-yield securities have been popular throughout the year, equities offer a more attractive value that should reward long-term investors. The relative valuation of large-cap growth stocks, in particular, has been attractive. |
The year was not without volatility. In early 2010, turmoil in European debt markets rattled global equities. Greece’s budget problems and eventual Eurozone and International Monetary Fund bailout fueled fears of a wider sovereign debt crisis across Europe. The equity market in China lagged other global markets in 2010, fueling fears that the growth engine of the global economy may be faltering. Apart from these temporary periods of volatility, the European debt crisis and speculation in Asia failed to thwart US stocks’ resilient rebound from the 2008 recession.
The Fund’s best performing stock for the 2010 fiscal year was Baidu, China’s largest internet search company, which gained 116%. Earlier in the year, the Fund sold Google after a dispute with the Chinese government and purchased Baidu. Strong exposure to cloud computing also helped the Fund outperform its benchmark. Cloud computing leaders Salesforce.com and F5 Networks gained 104% and 53% respectively. The Fund’s largest position, Cognizant Technology Solutions, rose 69% this year. The technology services company helps corporations save money through IT outsourcing, a value proposition that resonates in difficult economic times.
Going forward, the Rock Oak Fund remains focused on growth investing. Fortunately, the outlook for the US stock market appears attractive. Many of the clouds obscuring the investment outlook throughout 2010 are dissipating. Uncertain issues, such as the outcome of mid-term elections, the size of quantitative easing, direction of interest rates, and potential sovereign debt contagion in Europe, have been resolved. Since the market tends to struggle when uncertainty is high, a clearer investment picture is favorable.
Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions.
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1-888-462-5386 | www.oakfunds.com |
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Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||||
Ticker Symbol |
|
RCKSX |
| 1. Cognizant Technology Solutions Corp. - Class A | 6.02% | |||||
Share Price |
|
$11.16 |
|
2. Gilead Sciences, Inc. | 4.65% | |||||
Total Net Assets |
|
$6.7M |
|
3. Ctrip.com International, Ltd. ADR | 4.63% | |||||
Portfolio Turnover |
|
62% |
|
4. Transocean, Ltd.
| 4.23%
| |||||
2010 Distributions |
|
None |
| 5. F5 Networks, Inc. | 4.19% | |||||
6. VMware, Inc. | 4.08% | |||||||||
Industry Weightings^
| 7. Baidu, Inc. ADR | 4.08% | ||||||||
Information Technology |
|
38.6% |
| 8. Expeditors International of Washington, Inc. | 3.73% | |||||
Health Care | 15.0% |
9. Salesforce.com, Inc. | 3.70% | |||||||
Energy | 13.7% |
10. Weatherford International, Ltd. | 3.66% | |||||||
Consumer Discretionary | 9.7% | |||||||||
Industrials | 8.3% | |||||||||
Financials | 5.7% | |||||||||
Materials | 3.8% | |||||||||
Short Term Investments | 3.7% | |||||||||
Consumer Staples | 1.8% | |||||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||
1 Year Return |
3 Year | 5 year Return | 10 year Return | Inception to Date* | ||||||||||||||
Rock Oak Core Growth Fund |
| 22.77% |
|
| -4.64% |
|
| 2.92% |
| – |
| 2.67% |
| |||||
S&P 500 Total Return Index1 |
| 16.52% |
|
| -6.49% |
|
| 1.73% |
| – |
| 1.67% |
| |||||
Lipper Small-Cap Growth Funds Average2 | 17.75% | -5.79% | 2.11% | – | 2.26% | |||||||||||||
* Since 12/31/2004 | Gross Expense Ratio: 1.54% | |||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. | ||||||||||||||||||
1Standard& Poor’s is the source and owner of the S&P Index data. See Page 18 for additional disclosure. |
| |||||||||||||||||
2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
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Annual Report | October 31, 2010 |
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Robert Stimpson, CFA Portfolio Manager | River Oak Discovery Fund (the “Fund”) rose 17.15% for the fiscal year ending October 31, 2010. The Fund’s performance compares to the benchmark Russell 2000 Growth Index’s gain of 28.67%. Since inception on June 30, 2005, the Fund has returned 5.37% annually. Over the same time period, the Russell 2000 Growth Index has risen 4.20% per year.
Small-capitalization stocks rose in fiscal year 2010 as investors increased exposure to growth and higher risk asset classes. Following a gain of 65% in 2009, the Fund expected macroeconomic uncertainty to weigh on stock prices in 2010. Due to concerns over the economy, the negative political rhetoric that accompanies midterm elections and potential inflationary monetary stimulus, the Fund took a more defensive stance and was surprised by the strength in equities. To weather the environment, the Fund held more cash than usual and favored less volatile holdings with stable growth profiles. Unfortunately, stocks discounted many of these issues and continued to rally, thereby causing the Fund to underperform its benchmark. |
The global macroeconomic environment was not without its challenges in 2010. A sovereign debt crisis in Europe developed after Greece revealed budget problems that ultimately led to a Eurozone and International Monetary Fund bailout. Additional fears over a property bubble in China also distressed market participants and prompted the Chinese government to raise interest rates and institute policies to cool speculation. Thanks to the domestic focus of small-cap stocks, neither the credit crisis in Europe nor the property bubble fears in Asia could thwart the group’s advance.
The Fund’s best performing stock this fiscal year was Chipotle Mexican Grill, a quick casual restaurant, which rose 111%. New restaurant concepts tend to do well while same-store square footage is expanding. Since going public in 2006, the stock has continued to expand and rebounded strongly from the 2008 recession. The company has since been sold after the stock graduated from the small-cap classification into mid-cap. Mercadolibre, a Latin American online retailer, was the Fund’s largest position for much of the year. The company gained 84% during the fiscal year and remains a top holding as a pure play on robust economic growth and ecommerce penetration in Latin America.
During the third quarter of 2010, the Fund established a more offensive posture. Looking into 2011, much of the uncertainty hanging over the market should dissipate. The November 2010 elections are now complete, quantitative easing initiatives are announced, the fate of Bush-era tax cuts should be decided soon, President Obama is likely to follow more bipartisan policies, and reluctant job growth should abate. This bodes well for investors in 2011 as equities remain an overlooked asset class that is trading at very attractive relative valuation compared to bonds.
Mutual fund investing involves risk, including the possible loss of principal. Funds that emphasize investments in smaller companies generally will experience greater price volatility.
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Table of Contents
Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||
Ticker Symbol | RIVSX | 1. MercadoLibre, Inc. | 4.86% | |||||
Share Price | $12.84 | 2. B&G Foods, Inc. | 4.74% | |||||
Total Net Assets | $9.1M | 3. Fortinet, Inc. | 3.95% | |||||
Portfolio Turnover | 56% | 4. CARBO Ceramics, Inc. | 3.86% | |||||
2010 Distributions | None | 5. Oceaneering International, Inc. | 3.80% | |||||
6. Dril-Quip, Inc. | 3.48% | |||||||
Industry Weightings^
| 8. American Science & Engineering, Inc.
| 3.45% | ||||||
Information Technology | 36.9% | 8. American Science & Engineering, Inc.
| 3.43% | |||||
Energy | 13.3% | 9. NetEase.com, Inc. ADR
| 3.39% | |||||
Industrials | 12.9% | 10. EMCOR Group, Inc.
| 3.37% | |||||
Consumer Discretionary | 10.4% | |||||||
Consumer Staples | 8.2% | |||||||
Materials | 6.8% | |||||||
Short Term Investments | 6.2% | |||||||
Health Care | 3.3% | |||||||
Financials | 1.5% | |||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||
Growth of $10,000 Chart
| ||||||||
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||
1 Year Return |
3 Year |
5 year |
10 year |
Inception | ||||||||||||||
River Oak Discovery Fund |
| 17.15%
|
|
| -3.69%
|
|
| 5.54%
|
| –
|
| 5.37%
|
| |||||
Russell 2000 Growth Index1 |
| 28.67%
|
|
| -3.81%
|
|
| 4.00%
|
| –
|
| 4.20%
|
| |||||
Lipper Small-Cap Growth Funds Average2 |
| 27.70%
|
|
| -5.42%
|
|
| 3.10%
|
| –
|
| 3.42%
|
| |||||
* Since 06/30/2005
| Gross Expense Ratio: 1.57% | |||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. | ||||||||||||||||||
1RussellInvestments is the source and owner of the Russell Index data. See Page 18 for additional disclosure. |
| |||||||||||||||||
2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
|
Annual Report | October 31, 2010 |
11 |
Table of Contents
Red Oak Technology Select Fund
| ||
Mark W. Oelschlager, CFA Portfolio Manager | Red Oak Technology Fund (the “Fund”) returned 23.15% for the year ended October 31, 2010, while the comparative index, the NASDAQ 100 Index, which includes holdings within sectors beyond just technology, gained 28.32%, and the Lipper Science and Technology Average rose 27.01%.
Technology stocks posted a second consecutive fiscal year of strong performance, as the economic recovery continued, albeit slowly, and company profits surprised on the upside. Many of the Fund’s holdings serve international markets and benefited from the strength of emerging market economies. But the benefit of these markets goes beyond the incremental demand. Tech companies have increasingly outsourced manufacturing operations abroad, which has kept costs low and margins high, allowing them to keep prices low and remain competitive. These dynamics serve to keep products such as big-screen televisions, iPhones, Kindles, and personal navigation devices affordable to the masses, which expands companies’ markets. |
The Fund is invested in several different areas within tech, and this diversification aided performance as the big gainers came from different industries. Akamai Technologies benefited from increased demand for its products, which speed the delivery of content over the Internet. Apple maintained impressive sales growth with established devices such as the iPod and iPhone, as well as with a successful launch of the iPad tablet computer. Semiconductor company Broadcom saw strong demand for its chips, which sit at the intersection of computing and communications.
Laggards included online jeweler Blue Nile, which reported slowing growth; disk drive maker Western Digital, as investors remained concerned about pricing power; and information security provider Symantec, which experienced sluggishness in its enterprise business.
We continue to look for companies that offer both a good fundamental outlook and an attractive valuation. Despite the good run in the share prices of tech companies, the sector still offers an abundance of reasonably priced opportunities. Free cash flow is strong, and the secular drivers of growth in information technology remain intact. Cyclical factors look encouraging as well. After the deep cuts in capital spending by corporate America during the downturn, we expect capex to bounce back in 2011, which should help technology companies.
Mutual fund investing involves risk, including the possible loss of principal. Funds that emphasize investments in technology generally will experience greater price volatility. There are additional risks associated with investing in a single-sector fund, including greater sensitivity to economic, political, or regulatory developments impacting the sector.
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Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||
Ticker Symbol | ROGSX | 1. Accenture PLC - Class A
| 5.28% | |||||
Share Price | $8.67 | 2. Check Point Software Technologies, Ltd.
| 5.23% | |||||
Total Net Assets | $65.4M | 3. International Business Machines Corp.
| 5.03% | |||||
Portfolio Turnover | 28% | 4. Google, Inc. - Class A
| 4.97% | |||||
2010 Distributions | None | 5. Amazon.com, Inc.
| 4.72% | |||||
6. eBay, Inc.
| 4.19% | |||||||
Industry Weightings^
| 7. Western Digital Corp.
| 4.19% | ||||||
Information Technology | 86.1% | 8. CA, Inc.
| 3.97% | |||||
Consumer Discretionary | 5.8% | 9. Synopsys, Inc.
| 3.91% | |||||
Industrials | 3.6% | 10. Computer Sciences Corp.
| 3.90% | |||||
Repurchase Agreements | 2.4% | |||||||
Telecommunication Services | 2.4% | |||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||
1 Year Return |
3 Year | 5 year Return | 10 year Return | Inception to Date* | ||||||||||||||
Red Oak Technology Select Fund |
| 23.15% |
|
| -0.31% |
|
| 5.77% |
| -12.73% |
| -1.20% |
| |||||
NASDAQ 100 Index1 |
| 28.32% |
|
| -1.09% |
|
| 6.72% |
| -3.89% |
| 1.57% |
| |||||
Lipper Science & Technology Average2 |
| 27.01% |
|
| -2.90% |
|
| 5.11% |
| -5.70% |
| 2.16% |
| |||||
* Since 12/31/1998 | Gross Expense Ratio: 1.53% | |||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. | ||||||||||||||||||
1NASDAQis the source and owner of the NASDAQ Index data. See Page 18 for additional disclosure. |
| |||||||||||||||||
2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
|
Annual Report | October 31, 2010 |
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Table of Contents
Black Oak Emerging Technology Fund
| ||
Robert Stimpson, CFA Portfolio Manager | Black Oak Emerging Technology Fund (the “Fund”) gained 34.25% during the fiscal year ending October 31, 2010. The NASDAQ 100 Index rose 28.32% during the same period. | |
The Fund performed well as investors embraced higher risk asset classes throughout the year and increased their exposure to growth sectors. Technology stocks had a very strong year in 2009, despite the bleak economic situation, catching many investors and institutions underweight the sector. At the depths of the 2008 recession, the technology sector offered strong balance sheets, high profit margins and attractive valuations. These characteristics propelled both the sector and the Fund higher in 2009, which has also attracted investors back into the sector in 2010. Strong exposure to cloud computing and leading international technology companies also helped the Fund outperform the Nasdaq Composite index. |
The technology sector achieved solid gains despite intermittent periods of volatility and risk aversion. In early 2010, Greece’s internal financial problems infected global credit markets, causing turmoil in equities and renewing risk aversion. However, the problems in European credit markets have little effect on the underlying operations of most of the Funds holding. The Fund weathered the situation well by focusing on higher quality and larger companies. During the year, valuation multiples on growth stocks also expanded as investors bid up companies achieving solid growth in the stagnant economic environment.
The Fund’s best performing stock this fiscal year was F5 Networks, an internet traffic and applications management equipment provider, which gained 128%. F5 Network’s equipment becomes more important as video and other bandwidth-intensive applications proliferate. Cognizant Technology Solutions, the largest holding in the Fund, also propelled returns. The technology-services company gained 68% as its value proposition of helping corporations save money through outsourcing resonated in the difficult economic conditions.
Going forward, the Fund will continue to seek emerging technology companies with solid earnings prospects that are trading at attractive valuations. The Fund’s exposure to companies that are attractive acquisition candidates may increase. Strong earnings within the technology sector over the last two years have resulted in increased cash balances at larger technology companies. This cash is likely to be redeployed in several ways, including more strategic acquisitions. With bond yields and Gross Domestic Product growth prospects low, it is more accretive to repurchase shares and acquire potential competitors. The merger and acquisition activity has already increased and is likely to continue.
Mutual fund investing involves risk, including the possible loss of principal. Funds that emphasize investments in technology generally will experience greater price volatility. There are additional risks associated with investing in a single-sector fund with a limited number of holdings versus a more broadly diversified portfolio, including greater sensitivity to economic, political, or regulatory developments impacting the sector. Funds that emphasize investments in smaller or mid sized companies may experience greater price volatility.
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Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||
Ticker Symbol |
BOGSX |
1. Cognizant Technology Solutions Corp. - Class A |
5.94% | |||||
Share Price | $2.94 | 2. Apple, Inc. | 5.09% | |||||
Total Net Assets | $43.7M | 3. Illumina, Inc. | 4.92% | |||||
Portfolio Turnover | 99% | 4. Red Hat, Inc. | 4.85% | |||||
2010 Distributions | None | 5. Citrix Systems, Inc. | 4.76% | |||||
6. Salesforce.com, Inc. | 4.65% | |||||||
Industry Weightings^
| 7. Sohu.com, Inc. | 4.64% | ||||||
Information Technology | 67.0% | 8. Broadcom Corp. - Class A | 3.75% | |||||
Repurchase Agreements | 13.8% | 9. Ctrip.com International, Ltd. ADR | 3.67% | |||||
Health Care | 7.3% | 10. American Science & Engineering, Inc. | 3.64% | |||||
Industrials | 6.9% | |||||||
Consumer Discretionary | 5.8% | |||||||
Materials | 2.1% | |||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||
1 Year Return | 3 Year Return | 5 year Return | 10 year Return | Inception to Date* | ||||||||||||||
Black Oak Emerging Technology Fund | 34.25% | 0.00% | 7.48% | – | -11.70%* | |||||||||||||
NASDAQ 100 Index1 | 28.32% | -1.09% | 6.72% | – | -0.60%* | |||||||||||||
Lipper Global Science & Technology Average2 | 27.61% | -1.30% | 7.83% | – | -0.16%** | |||||||||||||
* Since 12/29/2000 **Since 12/31/2000 | Gross Expense Ratio: 1.55% | |||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. |
| |||||||||||||||||
1NASDAQis the source and owner of the NASDAQ Index data. See Page 18 for additional disclosure. |
| |||||||||||||||||
2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
|
Annual Report | October 31, 2010 |
15 |
Table of Contents
| ||
Mark W. Oelschlager, CFA Portfolio Manager | Live Oak Health Sciences Fund (the “Fund”) rose 20.66% for the year ended October 31, 2010, while the comparative index, the S&P 500 Health Care Index, gained 13.14%, and the Lipper Health & Biotechnology Average returned 18.25%. | |
Health care reform took center stage during the past year. In January, reform suffered what appeared to be a death knell when Republican Scott Brown defeated Democrat Martha Coakley in a special election in Massachusetts. Brown’s victory robbed the Democrats of a filibuster-proof majority in the Senate and illustrated the lack of popularity of a health care overhaul with the public. Despite these developments, President Obama and the Democrats managed just two months later to pass reform into law. |
The major elements of the bill include subsidies for low-income earners to purchase insurance, individual and employer coverage mandates, controls on managed care companies, cuts to Medicare Advantage and providers, and taxes on personal income and various industries. Despite what we know about the bill, there is still a fair amount of uncertainty about the long-term ramifications. This is because there are so many changes – both positive and negative – and in some cases it is not clear how the rules will be implemented and how such a complex system will react.
Some of the apparent winners under this reform are those that benefit from increasing usage of health care but are not directly affected by the legislation, such as drug distribution companies. Others, such as pharmaceutical companies and managed care organizations, should benefit from increased business, but will also have to deal with increased taxes and other regulation.
For the past year, strong performers in the portfolio included generic pharmaceutical company Par Pharmaceutical, drug distributor AmerisourceBergen, and biotech company Biogen IDEC.
Laggards included institutional pharmacy Pharmerica and medical device companies Boston Scientific and Medtronic.
An interesting development in recent quarters is the decline in demand in some segments of health care. While the sector has always been considered to be relatively insulated from economic weakness, the slow rate of employment growth appears to have affected business more than what is seen in a typical downturn. We expect this to lead to pent-up demand in certain areas, such as medical devices, and that at some point people will elect to have procedures done after having postponed them.
Mutual fund investing involves risk, including the possible loss of principal. Funds that emphasize investments in technology generally will experience greater price volatility. There are additional risks associated with investing in a single-sector fund versus a more broadly diversified portfolio, including greater sensitivity to economic, political, or regulatory developments impacting the sector.
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Table of Contents
Performance Update
| ||
All data below as of October 31, 2010 (Unaudited) |
Fund Data
| Top 10 Holdings^
| |||||||||
Ticker Symbol
|
| LOGSX
|
| 1. AmerisourceBergen Corp. | 6.28% | |||||
Share Price
|
| $12.84
|
|
2. Novartis AG ADR | 5.50% | |||||
Total Net Assets
|
| $19.6M
|
| 3. Sanofi-Aventis ADR | 5.18% | |||||
Portfolio Turnover
|
| 22%
|
|
4. Biogen Idec, Inc. | 4.99% | |||||
2010 Distributions
|
| $0.40/Share
|
|
5. GlaxoSmithKline PLC ADR | 4.94% | |||||
6. Waters Corp. | 4.92% | |||||||||
Industry Weightings^
| 7. Amgen, Inc. | 4.90% | ||||||||
Pharmaceuticals | 44.3% |
8. King Pharmaceuticals, Inc. | 4.41% | |||||||
Health Care Providers & Services | 28.1% |
9. AstraZeneca PLC ADR | 4.33% | |||||||
Biotechnology | 12.6% |
10. Johnson & Johnson | 4.26% | |||||||
Life Sciences Tools & Services | 7.3% | |||||||||
Health Care Equipment & Supplies | 6.7% | |||||||||
Short Term Investments | 1.0% | |||||||||
^ Percentages are based on net assets. Holdings are subject to change. | ||||||||||
Growth of $10,000 Chart |
The chart above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years (or for the life of the Fund if shorter). Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. | ||||||||||||||||||
Average Annual Total Return
| ||||||||||||||||||
1 Year Return |
3 Year Return | 5 year Return | 10 year Return | Inception to Date | ||||||||||||||
Live Oak Health Sciences Fund |
|
20.66% |
|
|
2.27% |
|
|
2.62% |
|
– |
|
3.08%* |
| |||||
S&P 500 Healthcare Index1 |
|
13.14% |
|
|
-2.79% |
|
|
2.44% |
|
– |
|
1.39%* |
| |||||
Lipper Health & Biotechnology Average2 |
|
18.25% |
|
|
-1.35% |
|
|
3.09% |
|
– |
|
2.68%** |
| |||||
* Since 06/29/2001 ** Since 06/30/2001 | Gross Expense Ratio: 1.38% | |||||||||||||||||
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.oakfunds.com or call 1-888-462-5386. | ||||||||||||||||||
1Standard& Poor’s is the source and owner of the S&P Index data. See Page 18 for additional disclosure. |
| |||||||||||||||||
2LipperInc. is the source and owner of the Lipper Classification data. See Page 18 for additional disclosure. |
|
Annual Report | October 31, 2010 |
17 |
Table of Contents
As of October 31, 2010 (Unaudited)
Index Definitions and Disclosures
All indices are unmanaged and index performance figures include reinvestment of dividends but do not reflect any fees, expenses or taxes. Investors cannot invest directly in an index.
NASDAQ 100 Index – The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization.
Russell 2000 Growth Index – The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
S&P 500 Healthcare Index – Is a capitalization-weighted index that encompasses two main industry groups. The first includes companies who manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, and owners and operators of health care facilities and organizations. The second group consists of companies primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.
S&P 500 Index – The S&P 500 Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance
Lipper Global Science & Technology Funds – Funds that invest primarily in the equity securities of domestic and foreign companies engaged in science and technology.
Lipper Health/Biotechnology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in healthcare, medicine, and biotechnology.
Lipper Large-Cap Growth Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s USDE large-cap floor. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.
Lipper Multi-Cap Growth Funds – Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales per-share growth value, compared to the S&P SuperComposite 1500 Index.
Lipper Science & Technology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in science and technology.
Lipper Small-Cap Growth Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s USDE small-cap ceiling. Small-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P Small-Cap 600 Index.
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Table of Contents
Important Disclosures
| ||
As of October 31, 2010 (Unaudited) |
Lipper – A Thomson Reuters Company is the source and owner of the Lipper Classification data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Lipper Inc. is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds presentation thereof.
NASDAQ is the source and owner of the NASDAQ Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. NASDAQ is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds presentation thereof.
Russell Investments is the source and owner of the Russell Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Russell Investments is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds presentation thereof.
Standard & Poor’s is the source and owner of the S&P Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Standard & Poor’s is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds presentation thereof.
Annual Report | October 31, 2010 |
19 |
Table of Contents
| ||
As of October 31, 2010 (Unaudited) |
All mutual funds have operating expenses. As a shareholder of a fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.
Operating expenses such as these are deducted from the fund’s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the fund’s average net assets; this percentage is known as the fund’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The table on the next page illustrates your Fund’s costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = $8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period”.
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expense Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
Note: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
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Table of Contents
Disclosure of Fund Expenses
| ||
As of October 31, 2010 (Unaudited) |
Beginning Account Value 05/01/10 | Ending Account Value 10/31/10 | Annualized Expense Ratio | Expenses Paid Period(a) | |||||||||||
White Oak Select Growth Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,059.50 | 1.25% | $ 6.49 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.90 | 1.25% | $ 6.36 | ||||||||||
Pin Oak Equity Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 991.80 | 1.25% | $ 6.28 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.90 | 1.25% | $ 6.36 | ||||||||||
Rock Oak Core Growth Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,078.30 | 1.25% | $ 6.55 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.90 | 1.25% | $ 6.36 | ||||||||||
River Oak Discovery Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,027.20 | 1.35% | $ 6.90 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.40 | 1.35% | $ 6.87 | ||||||||||
Red Oak Technology Select Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,044.60 | 1.35% | $ 6.96 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.40 | 1.35% | $ 6.87 | ||||||||||
Black Oak Emerging Technology Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,113.60 | 1.35% | $ 7.19 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.40 | 1.35% | $ 6.87 | ||||||||||
Live Oak Health Sciences Fund | ||||||||||||||
Actual Return | $ 1,000.00 | $ 1,034.60 | 1.35% | $ 6.92 | ||||||||||
Hypothetical 5% Return | $ 1,000.00 | $ 1,018.40 | 1.35% | $ 6.87 |
(a) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Annual Report | October 31, 2010 |
21 |
Table of Contents
| White Oak Select Growth Fund
| |
As of October 31, 2010
|
Security Description | Shares | Value | ||||||
COMMON STOCKS (100.1%) | ||||||||
CONSUMER DISCRETIONARY (6.3%) | ||||||||
Internet & Catalog Retail (6.3%) | ||||||||
Amazon.com, Inc.(a) | 98,800 | $ | 16,315,832 | |||||
ENERGY (9.5%) | ||||||||
Energy Equipment & Services (9.5%) | ||||||||
Baker Hughes, Inc. | 265,400 | 12,295,982 | ||||||
Transocean, Ltd.(a) | 193,500 | 12,260,160 | ||||||
24,556,142 | ||||||||
FINANCIALS (17.0%) | ||||||||
Capital Markets (3.8%) | ||||||||
The Charles Schwab Corp. | 640,000 | 9,856,000 | ||||||
Commercial Banks (4.4%) | ||||||||
CIT Group, Inc.(a) | 265,000 | 11,482,450 | ||||||
Diversified Financial Services (3.4%) | ||||||||
JPMorgan Chase & Co. | 235,000 | 8,843,050 | ||||||
Insurance (5.4%) | ||||||||
ACE, Ltd. | 233,000 | 13,844,860 | ||||||
HEALTH CARE (19.5%) | ||||||||
Biotechnology (4.3%) | ||||||||
Amgen, Inc.(a) | 196,500 | 11,237,835 | ||||||
Health Care Equipment & Supplies (4.2%) | ||||||||
Stryker Corp. | 218,000 | 10,788,820 | ||||||
Health Care Providers & Services (6.7%) | ||||||||
Express Scripts, Inc.(a) | 130,000 | 6,307,600 | ||||||
UnitedHealth Group, Inc. | 307,300 | 11,078,165 | ||||||
17,385,765 | ||||||||
Pharmaceuticals (4.3%) | ||||||||
Teva Pharmaceutical Industries, Ltd. ADR | 215,000 | 11,158,500 | ||||||
INFORMATION TECHNOLOGY (46.2%) | ||||||||
Communications Equipment (9.0%) | ||||||||
Cisco Systems, Inc.(a) | 465,000 | 10,615,950 | ||||||
Qualcomm, Inc. | 280,000 | 12,636,400 | ||||||
23,252,350 | ||||||||
Computers & Peripherals (4.4%) | ||||||||
International Business Machines Corp. | 80,000 | 11,488,000 | ||||||
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Table of Contents
White Oak Select Growth Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
Internet Software & Services (14.0%) | ||||||
eBay, Inc.(a) | 477,000 | $ 14,219,370 | ||||
Google, Inc. - Class A(a) | 22,200 | 13,608,378 | ||||
Yahoo!, Inc.(a) | 510,000 | 8,420,100 | ||||
36,247,848 | ||||||
IT Services (4.7%) | ||||||
Cognizant Technology Solutions Corp. - Class A(a) | 185,500 | 12,092,745 | ||||
Semiconductors & Semiconductor Equipment (9.6%) | ||||||
Broadcom Corp. - Class A | 293,000 | 11,936,820 | ||||
KLA-Tencor Corp. | 364,000 | 13,002,080 | ||||
24,938,900 | ||||||
Software (4.5%) | ||||||
Salesforce.com, Inc.(a) | 101,100 | 11,734,677 | ||||
TELECOMMUNICATION SERVICES (1.6%) | ||||||
Wireless Telecommunication Services (1.6%) | ||||||
Sprint Nextel Corp.(a) | 1,015,000 | 4,181,800 | ||||
TOTAL COMMON STOCKS | ||||||
(Cost $185,674,042) | 259,405,574 | |||||
SHORT TERM INVESTMENTS (0.1%) | ||||||
Fidelity Institutional Money Market | ||||||
Government Portfolio - Class I (7 day yield 0.052%) | 248,554 | 248,554 | ||||
TOTAL SHORT TERM INVESTMENTS | ||||||
(Cost $248,554) | 248,554 | |||||
TOTAL INVESTMENTS - (100.2%) | ||||||
(Cost $185,922,596) | $ 259,654,128 | |||||
Liabilities in Excess of Other Assets - (-0.2%) | (469,642) | |||||
NET ASSETS - (100.0%) | $ 259,184,486 | |||||
(a)Non-income producing security.
Common Abbreviations:
ADR - American Depositary Receipt
Ltd. - Limited
The accompanying notes are an integral part of the financial statements.
Annual Report | October 31, 2010 |
23 |
Table of Contents
Schedules of Investments
| Pin Oak Equity Fund
| |
As of October 31, 2010
|
Security Description | Shares | Value | ||||||
COMMON STOCKS (100.5%) | ||||||||
CONSUMER DISCRETIONARY (22.0%) | ||||||||
Hotels, Restaurants & Leisure (3.2%) | ||||||||
Interval Leisure Group, Inc.(a) | 155,122 | $ | 2,226,000 | |||||
Household Durables (3.9%) | ||||||||
Garmin, Ltd. | 84,000 | 2,758,560 | ||||||
Internet & Catalog Retail (5.8%) | ||||||||
Amazon.com, Inc.(a) | 16,700 | 2,757,838 | ||||||
Blue Nile, Inc.(a) | 30,118 | 1,283,027 | ||||||
4,040,865 | ||||||||
Media (7.2%) | ||||||||
DISH Network Corp. - Class A | 135,300 | 2,687,058 | ||||||
Gannett Co., Inc. | 104,000 | 1,232,400 | ||||||
Live Nation Entertainment, Inc.(a) | 116,000 | 1,100,840 | ||||||
5,020,298 | ||||||||
Specialty Retail (1.9%) | ||||||||
Ann Taylor Stores Corp.(a) | 28,700 | 668,710 | ||||||
The Pep Boys-Manny, Moe & Jack | 57,900 | 676,851 | ||||||
1,345,561 | ||||||||
ENERGY (16.2%) | ||||||||
Energy Equipment & Services (14.6%) | ||||||||
Ensco PLC ADR | 46,500 | 2,154,810 | ||||||
Hercules Offshore, Inc.(a) | 254,000 | 599,440 | ||||||
Nabors Industries, Ltd.(a) | 143,300 | 2,994,970 | ||||||
Noble Corp. | 83,632 | 2,887,813 | ||||||
Pioneer Drilling Co.(a) | 251,022 | 1,546,295 | ||||||
10,183,328 | ||||||||
Oil, Gas & Consumable Fuels (1.6%) | ||||||||
The Williams Cos., Inc. | 51,500 | 1,108,280 | ||||||
FINANCIALS (14.1%) | ||||||||
Banks (1.4%) | ||||||||
SunTrust Banks, Inc. | 39,000 | 975,780 | ||||||
Capital Markets (6.0%) | ||||||||
The Charles Schwab Corp. | 205,000 | 3,157,000 | ||||||
Morgan Stanley | 42,000 | 1,044,540 | ||||||
4,201,540 | ||||||||
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Table of Contents
Pin Oak Equity Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||||
Commercial Banks (6.5%) | ||||||||
CIT Group, Inc.(a) | 73,000 | $ | 3,163,090 | |||||
International Bancshares Corp. | 79,000 | 1,353,270 | ||||||
4,516,360 | ||||||||
Insurance (0.2%) | ||||||||
The Travelers Cos., Inc. | 2,800 | 154,560 | ||||||
HEALTH CARE (3.4%) | ||||||||
Biotechnology (3.4%) | ||||||||
Biogen Idec, Inc.(a) | 37,200 | 2,332,812 | ||||||
INDUSTRIALS (6.2%) | ||||||||
Aerospace & Defense (1.5%) | ||||||||
Lockheed Martin Corp. | 15,000 | 1,069,350 | ||||||
Construction & Engineering (4.7%) | ||||||||
KBR, Inc. | 24,700 | 627,380 | ||||||
The Shaw Group, Inc.(a) | 85,400 | 2,609,824 | ||||||
3,237,204 | ||||||||
INFORMATION TECHNOLOGY (35.1%) | ||||||||
Internet Software & Services (9.5%) | ||||||||
eBay, Inc.(a) | 72,500 | 2,161,225 | ||||||
Google, Inc. - Class A(a) | 4,800 | 2,942,352 | ||||||
IAC/InterActive Corp.(a) | 55,756 | 1,555,593 | ||||||
6,659,170 | ||||||||
IT Services (10.4%) | ||||||||
Amdocs, Ltd.(a) | 122,572 | 3,760,509 | ||||||
Paychex, Inc. | 49,949 | 1,383,587 | ||||||
The Western Union Co. | 119,000 | 2,094,400 | ||||||
7,238,496 | ||||||||
Semiconductors & Semiconductor Equipment (4.2%) | ||||||||
KLA-Tencor Corp. | 13,700 | 489,364 | ||||||
Xilinx, Inc. | 91,000 | 2,439,710 | ||||||
2,929,074 | ||||||||
Software (11.0%) | ||||||||
BMC Software, Inc.(a) | 72,000 | 3,273,120 | ||||||
Fair Isaac Corp. | 122,022 | 2,933,409 | ||||||
Microsoft Corp. | 55,000 | 1,465,200 | ||||||
7,671,729 | ||||||||
Annual Report | October 31, 2010 |
25 |
Table of Contents
Schedules of Investments
| Pin Oak Equity Fund
| |
As of October 31, 2010
|
Security Description | Shares | Value | ||||||
UTILITIES (3.5%) | ||||||||
Electric Utilities (3.5%) | ||||||||
Edison International | 67,000 | $ 2,472,300 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $54,316,731) | 70,141,267 | |||||||
SHORT TERM INVESTMENTS (0.6%) | ||||||||
Fidelity Institutional Money Market Government Portfolio - Class I (7 day yield 0.052%) | 447,653 | 447,653 | ||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||
(Cost $447,653) | 447,653 | |||||||
TOTAL INVESTMENTS - (101.1%) | ||||||||
(Cost $54,764,384) | $ 70,588,920 | |||||||
Liabilities in Excess of Other Assets - (-1.1%) | (743,944) | |||||||
NET ASSETS - (100.0%) | $ 69,844,976 | |||||||
(a) Non-income producing security.
Common Abbreviations:
ADR - American Depositary Receipt
Ltd. - Limited
PLC - Public Limited Company
The accompanying notes are an integral part of the financial statements.
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Table of Contents
Rock Oak Core Growth Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
COMMON STOCKS (96.6%) | ||||||
CONSUMER DISCRETIONARY (9.7%) | ||||||
Hotels, Restaurants & Leisure (8.0%) | ||||||
Ctrip.com International, Ltd. ADR(a) | 6,000 | $ 312,420 | ||||
Wynn Resorts, Ltd. | 2,100 | 225,057 | ||||
537,477 | ||||||
Media (1.7%) | ||||||
DISH Network Corp. - Class A | 5,900 | 117,174 | ||||
CONSUMER STAPLES (1.8%) | ||||||
Food & Staples Retailing (1.8%) | ||||||
Whole Foods Market, Inc.(a) | 3,100 | 123,225 | ||||
ENERGY (13.7%) | ||||||
Energy Equipment & Services (13.7%) | ||||||
National Oilwell Varco, Inc. | 3,800 | 204,288 | ||||
Noble Corp. | 5,500 | 189,915 | ||||
Transocean, Ltd.(a) | 4,500 | 285,120 | ||||
Weatherford International, Ltd.(a) | 14,700 | 247,107 | ||||
926,430 | ||||||
FINANCIALS (5.7%) | ||||||
Capital Markets (1.8%) | ||||||
Legg Mason, Inc. | 4,000 | 124,120 | ||||
Consumer Finance (0.9%) | ||||||
American Express Co. | 1,400 | 58,044 | ||||
Diversified Financial Services (3.0%) | ||||||
CME Group, Inc. | 700 | 202,755 | ||||
�� | ||||||
HEALTH CARE (15.0%) | ||||||
Biotechnology (5.7%) | ||||||
Genzyme Corp.(a) | 950 | 68,523 | ||||
Gilead Sciences, Inc.(a) | 7,900 | 313,393 | ||||
381,916 | ||||||
Health Care Equipment & Supplies (2.1%) | ||||||
Baxter International, Inc. | 2,800 | 142,520 | ||||
Health Care Providers & Services (5.0%) | ||||||
AmerisourceBergen Corp. | 4,000 | 131,280 | ||||
Express Scripts, Inc.(a) | 1,350 | 65,502 | ||||
McKesson Corp. | 2,100 | 138,558 | ||||
335,340 | ||||||
Annual Report | October 31, 2010 |
27 |
Table of Contents
Schedules of Investments
| Rock Oak Core Growth Fund
| |
As of October 31, 2010
|
Security Description
| Shares
| Value
| ||||
Health Care Technology (2.2%) | ||||||
Cerner Corp.(a) | 1,700 | $ 149,311 | ||||
INDUSTRIALS (8.3%) | ||||||
Aerospace & Defense (2.3%) | ||||||
ITT Corp. | 3,300 | 155,727 | ||||
Air Freight & Logistics (3.7%) | ||||||
Expeditors International Of Washington, Inc. | 5,100 | 251,736 | ||||
Construction & Engineering (2.1%) | ||||||
Jacobs Engineering Group, Inc.(a) | 3,700 | 142,857 | ||||
Electrical Equipment (0.2%) | ||||||
Rockwell Automation, Inc. | 200 | 12,474 | ||||
INFORMATION TECHNOLOGY (38.6%) | ||||||
Communications Equipment (8.9%) | ||||||
F5 Networks, Inc.(a) | 2,400 | 282,480 | ||||
Juniper Networks, Inc.(a) | 5,575 | 180,574 | ||||
Qualcomm, Inc. | 3,100 | 139,903 | ||||
602,957 | ||||||
Electronic Equipment & Instruments (1.7%) | ||||||
Dolby Laboratories, Inc. - Class A(a) | 1,850 | 114,108 | ||||
Internet Software & Services (7.6%) | ||||||
Baidu, Inc. ADR(a) | 2,500 | 275,025 | ||||
eBay, Inc.(a) | 5,500 | 163,955 | ||||
Yahoo!, Inc.(a) | 4,400 | 72,644 | ||||
511,624 | ||||||
IT Services (9.0%) | ||||||
Cognizant Technology Solutions Corp. - Class A(a) | 6,225 | 405,808 | ||||
Mastercard, Inc. - Class A | 825 | 198,049 | ||||
603,857 | ||||||
Semiconductors & Semiconductor Equipment (3.6%) | ||||||
Broadcom Corp. - Class A | 6,000 | 244,440 | ||||
Software (7.8%) | ||||||
Salesforce.com, Inc.(a) | 2,150 | 249,551 | ||||
VMware, Inc. - Class A(a) | 3,600 | 275,256 | ||||
524,807 | ||||||
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Table of Contents
Rock Oak Core Growth Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description
| Shares
| Value
| ||||
MATERIALS (3.8%) | ||||||
Chemicals (3.2%) | ||||||
Sociedad Quimica y Minera de Chile SA ADR | 4,075 | $ 211,085 | ||||
Metals & Mining (0.6%) | ||||||
Nucor Corp. | 1,100 | 42,042 | ||||
TOTAL COMMON STOCKS | ||||||
(Cost $5,058,056) | 6,516,026 | |||||
SHORT TERM INVESTMENTS (3.7%) | ||||||
Fidelity Institutional Money Market | ||||||
Government Portfolio - Class I (7 day yield 0.052%) | 246,206 | 246,206 | ||||
TOTAL SHORT TERM INVESTMENTS | ||||||
(Cost $246,206) | 246,206 | |||||
TOTAL INVESTMENTS - (100.3%) | ||||||
(Cost $5,304,262) | $ 6,762,232 | |||||
Liabilities in Excess of Other Assets - (-0.3%) | (18,409) | |||||
NET ASSETS - (100.0%) | $ 6,743,823 | |||||
(a) Non-income producing security.
Common Abbreviations:
ADR - American Depositary Receipt.
Ltd. - Limited
SA - Generally designates corporations in various countries, mostly those employing the civil law.
The accompanying notes are an integral part of the financial statements.
Annual Report | October 31, 2010 |
29 |
Table of Contents
Schedules of Investments
| River Oak Discovery Fund
| |
As of October 31, 2010
|
Security Description
| Shares
| Value
| ||||
COMMON STOCKS (93.3%) | ||||||
CONSUMER DISCRETIONARY (10.4%) | ||||||
Diversified Consumer Services (3.3%) | ||||||
Coinstar, Inc.(a) | 5,300 | $ 305,174 | ||||
Hotels, Restaurants & Leisure (3.0%) | ||||||
WMS Industries, Inc.(a) | 6,200 | 270,506 | ||||
Media (2.1%) | ||||||
Morningstar, Inc.(a) | 3,900 | 190,398 | ||||
Textiles, Apparel & Luxury Goods (2.0%) | ||||||
Carter’s, Inc.(a) | 7,400 | 184,260 | ||||
CONSUMER STAPLES (8.2%) | ||||||
Beverages (3.5%) | ||||||
The Boston Beer Co., Inc. - Class A(a) | 4,400 | 314,996 | ||||
Food Products (4.7%) | ||||||
B&G Foods, Inc. | 35,325 | 432,731 | ||||
ENERGY (13.3%) | ||||||
Energy Equipment & Services (11.2%) | ||||||
CARBO Ceramics, Inc. | 4,200 | 351,834 | ||||
Dril-Quip, Inc.(a) | 4,600 | 317,860 | ||||
Oceaneering International, Inc.(a) | 5,600 | 346,472 | ||||
1,016,166 | ||||||
Oil, Gas & Consumable Fuels (2.1%) | ||||||
USEC, Inc.(a) | 36,000 | 193,320 | ||||
FINANCIALS (1.5%) | ||||||
Capital Markets (1.5%) | ||||||
Janus Capital Group, Inc. | 13,200 | 139,392 | ||||
HEALTH CARE (3.3%) | ||||||
Biotechnology (3.3%) | ||||||
Cubist Pharmaceuticals, Inc.(a) | 12,850 | 299,148 | ||||
INDUSTRIALS (12.9%) | ||||||
Aerospace & Defense (3.8%) | ||||||
American Science & Engineering, Inc. | 3,800 | 312,930 | ||||
Orbital Sciences Corp.(a) | 2,000 | 32,480 | ||||
345,410 | ||||||
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Table of Contents
River Oak Discovery Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
Commercial Services & Supplies (4.6%) | ||||||
EnergySolutions, Inc. | 24,900 | $ 116,781 | ||||
EnerNOC, Inc.(a) | 10,100 | 303,707 | ||||
420,488 | ||||||
Construction & Engineering (3.4%) | ||||||
EMCOR Group, Inc.(a) | 11,900 | 307,615 | ||||
Industrial Conglomerates (1.1%) | ||||||
Raven Industries, Inc. | 2,500 | 102,800 | ||||
INFORMATION TECHNOLOGY (36.9%) | ||||||
Communications Equipment (1.9%) | ||||||
Viasat, Inc.(a) | 4,100 | 168,797 | ||||
Electronic Equipment & Instruments (3.0%) | ||||||
Itron, Inc.(a) | 4,500 | 273,465 | ||||
Internet Software & Services (8.2%) | ||||||
MercadoLibre, Inc.(a) | 6,700 | 443,071 | ||||
NetEase.com, Inc. ADR(a) | 7,400 | 309,320 | ||||
752,391 | ||||||
IT Services (1.6%) | ||||||
Patni Computer Systems, Ltd. ADR | 6,900 | 144,072 | ||||
Semiconductors & Semiconductor (8.8%) | ||||||
Cavium Networks, Inc.(a) | 9,300 | 296,391 | ||||
Evergreen Solar, Inc.(a) | 23,900 | 22,227 | ||||
Varian Semiconductor Equipment Associates, Inc.(a) | 5,850 | 191,120 | ||||
Veeco Instruments, Inc.(a) | 7,100 | 297,135 | ||||
806,873 | ||||||
Software (13.4%) | ||||||
AsiaInfo-Linkage, Inc.(a) | 10,200 | 226,644 | ||||
Factset Research Systems, Inc. | 3,400 | 298,452 | ||||
Fortinet, Inc.(a) | 12,000 | 360,000 | ||||
Longtop Financial Technologies, Ltd. ADR(a) | 7,300 | 265,282 | ||||
Verint Systems, Inc.(a) | 2,200 | 72,402 | ||||
1,222,780 | ||||||
MATERIALS (6.8%) | ||||||
Containers & Packaging (2.8%) | ||||||
Greif, Inc. - Class A | 4,400 | 258,456 | ||||
Annual Report | October 31, 2010 |
31 |
Table of Contents
Schedules of Investments
| River Oak Discovery Fund
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
Metals & Mining (4.0%) | ||||||
Lynas Corp., Ltd. ADR(a) | 10,000 | $ 147,000 | ||||
Molycorp, Inc.(a) | 6,200 | 219,480 | ||||
366,480 | ||||||
TOTAL COMMON STOCKS (Cost $6,896,320) | 8,515,718 | |||||
SHORT TERM INVESTMENTS (6.2%) | ||||||
Fidelity Institutional Money Market | ||||||
Government Portfolio - Class I (7 day yield 0.052%) | 561,765 | 561,765 | ||||
TOTAL SHORT TERM INVESTMENTS (Cost $561,765) | 561,765 | |||||
TOTAL INVESTMENTS - (99.5%) (Cost $7,458,085) | $ 9,077,483 | |||||
Other assets and liabilities, net - (0.5%) | 47,069 | |||||
NET ASSETS - (100.0%) | $ 9,124,552 | |||||
(a) Non-income producing security.
Common Abbreviations:
ADR - American Depositary Receipt.
Ltd. - Limited
The accompanying notes are an integral part of the financial statements.
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Table of Contents
Red Oak Technology Select Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
COMMON STOCKS (97.9%) | ||||||
CONSUMER DISCRETIONARY (5.8%) | ||||||
Internet & Catalog Retail (5.8%) | ||||||
Amazon.com, Inc.(a) | 18,700 | $ 3,088,118 | ||||
Blue Nile, Inc.(a) | 17,206 | 732,975 | ||||
3,821,093 | ||||||
INDUSTRIALS (3.6%) | ||||||
Aerospace & Defense (3.6%) | ||||||
Northrop Grumman Corp. | 37,000 | 2,338,770 | ||||
INFORMATION TECHNOLOGY (86.1%) | ||||||
Communications Equipment (0.5%) | ||||||
Cisco Systems, Inc.(a) | 13,000 | 296,790 | ||||
Computers & Peripherals (21.0%) | ||||||
Apple, Inc.(a) | 5,200 | 1,564,524 | ||||
EMC Corp.(a) | 70,000 | 1,470,700 | ||||
International Business Machines Corp. | 22,900 | 3,288,440 | ||||
Lexmark International, Inc. - Class A(a) | 64,000 | 2,433,920 | ||||
Seagate Technology PLC(a) | 154,000 | 2,256,100 | ||||
Western Digital Corp.(a) | 85,500 | 2,737,710 | ||||
13,751,394 | ||||||
Internet Software & Services (15.3%) | ||||||
Akamai Technologies, Inc.(a) | 20,700 | 1,069,569 | ||||
eBay, Inc.(a) | 92,000 | 2,742,520 | ||||
Google, Inc. - Class A(a) | 5,300 | 3,248,847 | ||||
IAC/InterActive Corp.(a) | 71,000 | 1,980,900 | ||||
Yahoo!, Inc.(a) | 58,100 | 959,231 | ||||
10,001,067 | ||||||
IT Services (9.2%) | ||||||
Accenture PLC - Class A | 77,200 | 3,451,612 | ||||
Computer Sciences Corp. | 52,000 | 2,550,600 | ||||
6,002,212 | ||||||
Semiconductors & Semiconductor Equipment (23.3%) | ||||||
Broadcom Corp. - Class A | 28,700 | 1,169,238 | ||||
Integrated Device Technology, Inc.(a) | 188,000 | 1,107,320 | ||||
Intel Corp. | 56,000 | 1,123,920 | ||||
KLA-Tencor Corp. | 70,000 | 2,500,400 | ||||
Marvell Technology Group, Ltd.(a) | 75,500 | 1,457,905 | ||||
National Semiconductor Corp. | 119,000 | 1,630,300 | ||||
Novellus Systems, Inc.(a) | 27,000 | 788,670 | ||||
Sigma Designs, Inc.(a) | 96,446 | 1,100,449 | ||||
Spansion, Inc.(a) | 34,118 | 596,724 |
Annual Report | October 31, 2010 |
33 |
Table of Contents
Schedules of Investments
| Red Oak Technology Select Fund
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
Semiconductors & Semiconductor Equipment (23.3%) (continued) | ||||||
Texas Instruments, Inc. | 54,000 | $ 1,596,780 | ||||
Xilinx, Inc. | 80,000 | 2,144,800 | ||||
15,216,506 | ||||||
Software (16.8%) | ||||||
CA, Inc. | 112,000 | 2,599,520 | ||||
Check Point Software Technologies, Ltd.(a) | 80,000 | 3,420,000 | ||||
Symantec Corp.(a) | 151,000 | 2,443,180 | ||||
Synopsys, Inc.(a) | 100,000 | 2,558,000 | ||||
11,020,700 | ||||||
TELECOMMUNICATION SERVICES (2.4%) | ||||||
Wireless Telecommunication Services (2.4%) | ||||||
Sprint Nextel Corp.(a) | 387,000 | 1,594,440 | ||||
TOTAL COMMON STOCKS | ||||||
(Cost $49,324,745) | 64,042,972 | |||||
Principal Amount | ||||||
REPURCHASE AGREEMENT (2.4%) | ||||||
Tri-Party Repurchase Agreement with Morgan Stanley Co., 0.11%, dated 10/29/10 and maturing 11/01/10 with a repurchase amount of $1,558,081, collateralized by U.S. Government & Agency Securities with a collateral value of $1,589,232. | $1,558,067 | 1,558,067 | ||||
TOTAL REPURCHASE AGREEMENT | ||||||
(Cost $1,558,067) | 1,558,067 | |||||
TOTAL INVESTMENTS - (100.3%) | ||||||
(Cost $50,882,812) | $ 65,601,039 | |||||
Liabilities in Excess of Other Assets - (-0.3%) | (185,602) | |||||
NET ASSETS - (100.0%) | $ 65,415,437 | |||||
(a) Non-income producing security.
Common Abbreviations:
Ltd. - Limited
PLC - Public Limited Company
The accompanying notes are an integral part of the financial statements.
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Black Oak Emerging Technology Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
COMMON STOCKS (89.1%) | ||||||
CONSUMER DISCRETIONARY (5.8%) | ||||||
Hotels, Restaurants & Leisure (5.8%) | ||||||
Ctrip.com International, Ltd. ADR(a) | 30,850 | $ 1,606,359 | ||||
WMS Industries, Inc.(a) | 21,600 | 942,408 | ||||
2,548,767 | ||||||
HEALTH CARE (7.3%) | ||||||
Health Care Technology (2.4%) | ||||||
Cerner Corp.(a) | 11,800 | 1,036,394 | ||||
Life Sciences Tools & Services (4.9%) | ||||||
Illumina, Inc.(a) | 39,600 | 2,150,676 | ||||
INDUSTRIALS (6.9%) | ||||||
Aerospace & Defense (3.6%) | ||||||
American Science & Engineering, Inc. | 19,300 | 1,589,355 | ||||
Commercial Services & Supplies (3.3%) | ||||||
EnerNOC, Inc.(a) | 47,700 | 1,434,339 | ||||
INFORMATION TECHNOLOGY (67.0%) | ||||||
Communications Equipment (3.3%) | ||||||
Qualcomm, Inc. | 31,750 | 1,432,878 | ||||
Computers & Peripherals (5.1%) | ||||||
Apple, Inc.(a) | 7,400 | 2,226,438 | ||||
Electronic Equipment & Instruments (6.5%) | ||||||
Corning, Inc. | 51,400 | 939,592 | ||||
Dolby Laboratories, Inc. - Class A(a) | 12,600 | 777,168 | ||||
Itron, Inc.(a) | 18,600 | 1,130,322 | ||||
2,847,082 | ||||||
Internet Software & Services (9.5%) | ||||||
MercadoLibre, Inc.(a) | 20,000 | 1,322,600 | ||||
NetEase.com, Inc. ADR(a) | 18,900 | 790,020 | ||||
Sohu.com, Inc.(a) | 27,200 | 2,026,400 | ||||
4,139,020 | ||||||
IT Services (8.6%) | ||||||
Cognizant Technology Solutions Corp. - Class A(a) | 39,850 | 2,597,822 | ||||
Wipro, Ltd. ADR | 59,633 | 851,559 | ||||
Yucheng Technologies, Ltd.(a) | 91,400 | 308,018 | ||||
3,757,399 | ||||||
Annual Report | October 31, 2010 |
35 |
Table of Contents
Schedules of Investments
| Black Oak Emerging Technology Fund
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
Semiconductors & Semiconductor Equipment (5.3%) | ||||||
Broadcom Corp. - Class A | 40,200 | $ 1,637,748 | ||||
NVIDIA Corp.(a) | 58,350 | 701,950 | ||||
2,339,698 | ||||||
Software (28.7%) | ||||||
Activision Blizzard, Inc. | 113,500 | 1,301,845 | ||||
ANSYS, Inc.(a) | 24,200 | 1,095,050 | ||||
AsiaInfo-Linkage, Inc.(a) | 36,100 | 802,142 | ||||
Citrix Systems, Inc.(a) | 32,500 | 2,082,275 | ||||
Fortinet, Inc.(a) | 37,900 | 1,137,000 | ||||
Longtop Financial Technologies, Ltd. ADR(a) | 24,400 | 886,696 | ||||
Red Hat, Inc.(a) | 50,200 | 2,121,452 | ||||
Salesforce.com, Inc.(a) | 17,500 | 2,031,225 | ||||
VMware, Inc.(a) | 14,300 | 1,093,378 | ||||
12,551,063 | ||||||
MATERIALS (2.1%) | ||||||
Metals & Mining (2.1%) | ||||||
Molycorp, Inc.(a) | 25,500 | 902,700 | ||||
TOTAL COMMON STOCKS | ||||||
(Cost $37,106,240) | 38,955,809 | |||||
Principal Amount | ||||||
REPURCHASE AGREEMENT (13.8%) | ||||||
Tri-Party Repurchase Agreement with Morgan Stanley Co., 0.11%, dated 10/29/10 and maturing 11/01/10 with a repurchase amount of $6,043,891, collateralized by U.S. Government & Agency Securities with a collateral value of $6,164,726. | $ | 6,043,836 | 6,043,836 | |||
TOTAL REPURCHASE AGREEMENT (Cost $6,043,836) | 6,043,836 | |||||
TOTAL INVESTMENTS - (102.9%) | ||||||
(Cost $43,150,076) | $ 44,999,645 | |||||
Liabilities in Excess of Other Assets - (-2.9%) | (1,285,402) | |||||
NET ASSETS - (100.0%) | $ 43,714,243 | |||||
(a) Non-income producing security.
Common Abbreviations:
ADR - American Depositary Receipt.
Ltd. - Limited
The accompanying notes are an integral part of the financial statements.
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Live Oak Health Sciences Fund
| Schedules of Investments
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
COMMON STOCKS (99.0%) | ||||||
HEALTH CARE (99.0%) | ||||||
Biotechnology (12.6%) | ||||||
Amgen, Inc.(a) | 16,800 | $ 960,792 | ||||
Biogen Idec, Inc.(a) | 15,600 | 978,276 | ||||
Genzyme Corp.(a) | 6,500 | 468,845 | ||||
Targacept, Inc.(a) | 2,300 | 56,948 | ||||
2,464,861 | ||||||
Health Care Equipment & Supplies (6.7%) | ||||||
Boston Scientific Corp.(a) | 33,000 | 210,540 | ||||
CareFusion Corp.(a) | 26,000 | 627,640 | ||||
Medtronic, Inc. | 13,500 | 475,335 | ||||
1,313,515 | ||||||
Health Care Providers & Services (28.1%) | ||||||
AmerisourceBergen Corp. | 37,500 | 1,230,750 | ||||
Cardinal Health, Inc. | 23,000 | 797,870 | ||||
Centene Corp.(a) | 17,200 | 383,904 | ||||
McKesson Corp. | 10,200 | 672,996 | ||||
Molina Healthcare, Inc.(a) | 18,750 | 486,000 | ||||
PharMerica Corp.(a) | 69,942 | 702,218 | ||||
UnitedHealth Group, Inc. | 17,800 | 641,690 | ||||
WellPoint, Inc.(a) | 10,800 | 586,872 | ||||
5,502,300 | ||||||
Life Sciences Tools & Services (7.3%) | ||||||
Affymetrix, Inc.(a) | 16,000 | 71,680 | ||||
Techne Corp. | 6,500 | 395,980 | ||||
Waters Corp.(a) | 13,000 | 963,690 | ||||
1,431,350 | ||||||
Pharmaceuticals (44.3%) | ||||||
AstraZeneca PLC ADR | 16,800 | 847,728 | ||||
Corcept Therapeutics, Inc.(a) | 37,844 | 135,103 | ||||
Eli Lilly & Co. | 18,000 | 633,600 | ||||
GlaxoSmithKline PLC ADR | 24,800 | 968,192 | ||||
Johnson & Johnson | 13,100 | 834,077 | ||||
King Pharmaceuticals, Inc.(a) | 61,120 | 864,237 | ||||
Medicis Pharmaceutical Corp. - Class A | 6,600 | 196,350 | ||||
Novartis AG ADR | 18,600 | 1,077,870 | ||||
Par Pharmaceutical Cos., Inc.(a) | 23,000 | 747,730 | ||||
Pfizer, Inc. | 38,000 | 661,200 | ||||
Sanofi-Aventis ADR | 28,900 | 1,014,679 | ||||
Teva Pharmaceutical Industries, Ltd. ADR | 13,500 | 700,650 | ||||
8,681,416 | ||||||
Annual Report | October 31, 2010 |
37 |
Table of Contents
Schedules of Investments
| Live Oak Health Sciences Fund
| |
As of October 31, 2010 |
Security Description | Shares | Value | ||||
TOTAL COMMON STOCKS | ||||||
(Cost $15,650,588) | $ 19,393,442 | |||||
SHORT TERM INVESTMENTS (1.0%) | ||||||
Fidelity Institutional Money Market Government | ||||||
Portfolio - Class I (7 day yield 0.052%) | ||||||
203,058 | 203,058 | |||||
TOTAL SHORT TERM INVESTMENTS | ||||||
(Cost $203,058) | 203,058 | |||||
TOTAL INVESTMENTS - (100.0%) | ||||||
(Cost $15,853,646) | $ 19,596,500 | |||||
Liabilities in Excess of Other Assets - (0.0%)(b) | (1,046) | |||||
NET ASSETS - (100.0%) | $ 19,595,454 | |||||
(a) Non-income producing security.
(b) Less than 0.01%
Common Abbreviations:
ADR - American Depositary Receipt.
AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders.
Ltd. - Limited
PLC - Public Limited Company
The accompanying notes are an integral part of the financial statements.
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OAK ASSOCIATES FUNDS
|
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Table of Contents
Statements of Assets and Liabilities
As of October 31, 2010
White Oak Select Growth Fund | Pin Oak Equity Fund | |||||||
Investments at cost | $ | 185,922,596 | $ 54,764,384 | |||||
Repurchase agreements at cost | – | – | ||||||
ASSETS: | ||||||||
Investments at market value | $ | 259,654,128 | $ 70,588,920 | |||||
Repurchase agreements at value | – | – | ||||||
Receivable for capital shares sold | 31,311 | 248 | ||||||
Receivable for investment securities sold | – | 233,934 | ||||||
Dividends and interest receivable | 51,568 | 38,693 | ||||||
Prepaid expenses | 44,640 | 17,005 | ||||||
Total Assets | 259,781,647 | 70,878,800 | ||||||
LIABILITIES: | ||||||||
Payable for fund shares redeemed | 232,426 | 912,094 | ||||||
Investment advisory fees payable | 174,015 | 44,102 | ||||||
Administration fees payable | 19,675 | 5,687 | ||||||
Trustees’ fees payable | 41,102 | 15,411 | ||||||
Payable for investment securities purchased | – | – | ||||||
Principal financial officer fees payable | 343 | – | ||||||
Other accrued expenses | 129,600 | 56,530 | ||||||
Total Liabilities | 597,161 | 1,033,824 | ||||||
Total Net Assets | $ | 259,184,486 | $ 69,844,976 | |||||
NET ASSETS: | ||||||||
Paid-in capital (unlimited authorization — no par value) | $ | 1,489,817,695 | $ 341,926,584 | |||||
Accumulated undistributed net investment income | – | 219,936 | ||||||
Accumulated net realized gain (loss) on investments | (1,304,364,741) | (288,126,080) | ||||||
Net unrealized appreciation on investments | 73,731,532 | 15,824,536 | ||||||
Total Net Assets | $ | 259,184,486 | $ 69,844,976 | |||||
PORTFOLIO SHARES: | ||||||||
Net assets | $ | 259,184,486 | $ 69,844,976 | |||||
Total shares outstanding at end of period | 6,900,711 | 2,610,012 | ||||||
Net asset value, offering and redemption price per share (net assets ÷ shares outstanding) | $ | 37.56 | $ 26.76 | |||||
The accompanying notes are an integral part of the financial statements.
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Rock Oak Core Growth Fund | River Oak Discovery Fund | Red Oak Technology Select Fund | Black Oak Emerging Technology Fund | Live Oak Health Sciences Fund | ||||||||||||||
$ | 5,304,262 | $ | 7,458,085 | $ | 49,324,745 | $ | 37,106,240 | $ | 15,853,646 | |||||||||
– | – | 1,558,067 | 6,043,836 | – | ||||||||||||||
$ | 6,762,232 | $ | 9,077,483 | $ | 64,042,972 | $ | 38,955,809 | $ | 19,596,500 | |||||||||
– | – | 1,558,067 | 6,043,836 | – | ||||||||||||||
– | 300 | 10,756 | 31,784 | 11,186 | ||||||||||||||
– | 209,170 | – | 11,190,288 | 10,706 | ||||||||||||||
788 | 6,868 | 41,804 | 59 | 12,597 | ||||||||||||||
1,623 | 2,179 | 20,722 | 8,336 | 3,971 | ||||||||||||||
6,764,643 | 9,296,000 | 65,674,321 | 56,230,112 | 19,634,960 | ||||||||||||||
– | – | 158,556 | 46,548 | – | ||||||||||||||
3,377 | 6,267 | 38,122 | 30,226 | 14,847 | ||||||||||||||
501 | 685 | 4,841 | 3,262 | 1,502 | ||||||||||||||
830 | 1,231 | 9,266 | 4,764 | 2,563 | ||||||||||||||
– | 146,500 | – | 12,399,053 | – | ||||||||||||||
– | – | – | – | – | ||||||||||||||
16,112 | 16,765 | 48,099 | 32,016 | 20,594 | ||||||||||||||
20,820 | 171,448 | 258,884 | 12,515,869 | 39,506 | ||||||||||||||
$ | 6,743,823 | $ | 9,124,552 | $ | 65,415,437 | $ | 43,714,243 | $ | 19,595,454 | |||||||||
$ | 5,531,045 | $ | 7,434,660 | $ | 384,183,062 | $ | 61,474,882 | $ | 14,907,198 | |||||||||
– | – | – | – | 32,926 | ||||||||||||||
(245,192) | 70,494 | (333,485,852) | (19,610,208) | 912,476 | ||||||||||||||
1,457,970 | 1,619,398 | 14,718,227 | 1,849,569 | 3,742,854 | ||||||||||||||
$ | 6,743,823 | $ | 9,124,552 | $ | 65,415,437 | $ | 43,714,243 | $ | 19,595,454 | |||||||||
$ | 6,743,823 | $ | 9,124,552 | $ | 65,415,437 | $ | 43,714,243 | $ | 19,595,454 | |||||||||
604,286 | 710,713 | 7,544,574 | 14,890,779 | 1,526,427 | ||||||||||||||
$ | 11.16 | $ | 12.84 | $ | 8.67 | $ | 2.94 | $ | 12.84 | |||||||||
Annual Report | October 31, 2010 |
41 |
Table of Contents
For the Year Ended October 31, 2010
White Oak Select Growth Fund | Pin Oak Equity Fund | |||||
INVESTMENT INCOME: | ||||||
Dividends | $ | 2,030,073 | $ 1,667,158 | |||
Interest | 769 | 1,901 | ||||
Less: Foreign withholding tax | (21,073) | – | ||||
Total Investment Income | 2,009,769 | 1,669,059 | ||||
EXPENSES: | ||||||
Investment advisory fees | 2,215,631 | 813,639 | ||||
Administration fees | 336,894 | 124,391 | ||||
Trustees’ fees | 141,062 | 50,941 | ||||
Legal and audit fees | 156,585 | 66,338 | ||||
Transfer agent fees | 912,890 | 333,198 | ||||
Registration fees | 105,695 | 29,776 | ||||
Printing fees | 39,907 | 15,014 | ||||
Custodian fees | 15,750 | 8,484 | ||||
Principal financial officer fees | 1,912 | 581 | ||||
Insurance and other fees | 78,463 | 24,185 | ||||
Total Expenses | 4,004,789 | 1,466,547 | ||||
Less: Investment advisory fees waived | (262,159) | (92,112) | ||||
Net Expenses | 3,742,630 | 1,374,435 | ||||
Net Investment Income (Loss) | (1,732,861) | 294,624 | ||||
Net realized gain on securities sold | 45,233,523 | 18,281,015 | ||||
Net change in unrealized appreciation (depreciation) of investment securities | 7,591,121 | (864,559) | ||||
Net Realized and Unrealized Gain on Investments | 52,824,644 | 17,416,456 | ||||
Net Increase in Net Assets Resulting From Operations | $ | 51,091,783 | $ 17,711,080 | |||
The accompanying notes are an integral part of the financial statements.
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Rock Oak Core Growth Fund | River Oak Discovery Fund | Red Oak Technology Select Fund | Black Oak Emerging Technology Fund | Live Oak Health Sciences Fund | ||||||||||||
$ 40,947 | $ 47,241 | $ 437,660 | $ 67,978 | $ 303,312 | ||||||||||||
107 | 281 | 308 | 1,349 | 252 | ||||||||||||
(517) | (364) | – | (702) | (14,326) | ||||||||||||
40,537 | 47,158 | 437,968 | 68,625 | 289,238 | ||||||||||||
45,437 | 81,506 | 501,189 | 262,238 | 140,479 | ||||||||||||
6,778 | 10,037 | 75,133 | 38,293 | 20,999 | ||||||||||||
2,777 | 4,051 | 31,917 | 15,426 | 8,661 | ||||||||||||
16,284 | 17,672 | 45,164 | 28,350 | 22,288 | ||||||||||||
18,582 | 22,092 | 323,233 | 179,023 | 54,802 | ||||||||||||
1,930 | 2,444 | 22,072 | 10,995 | 5,736 | ||||||||||||
794 | 1,134 | 12,353 | 4,288 | 2,981 | ||||||||||||
712 | 794 | 4,090 | 2,133 | 1,595 | ||||||||||||
36 | 38 | 922 | 522 | 131 | ||||||||||||
1,477 | 1,974 | 17,773 | 9,151 | 4,646 | ||||||||||||
94,807 | 141,742 | 1,033,846 | 550,419 | 262,318 | ||||||||||||
(18,057) | (19,484) | (119,510) | (72,012) | (6,006) | ||||||||||||
76,750 | 122,258 | 914,336 | 478,407 | 256,312 | ||||||||||||
(36,213) | (75,100) | (476,368) | (409,782) | 32,926 | ||||||||||||
733,651 | 1,055,480 | 10,109,691 | 16,228,153 | 912,605 | ||||||||||||
578,115 | 406,047 | 4,654,333 | (4,913,420) | 2,401,566 | ||||||||||||
1,311,766 | 1,461,527 | 14,764,024 | 11,314,733 | 3,314,171 | ||||||||||||
$ 1,275,553 | $ 1,386,427 | $ 14,287,656 | $ 10,904,951 | $ 3,347,097 | ||||||||||||
Annual Report | October 31, 2010 |
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Table of Contents
Statements of Changes in Net Assets
White Oak Select Growth Fund | Pin Oak Equity Fund | |||||||||||||||
For The Year Ended October 31, 2010 | For The Year Ended October 31, 2009 | For The Year Ended October 31, 2010 | For The Year Ended October 31, 2009 | |||||||||||||
INVESTMENT ACTIVITIES: | ||||||||||||||||
Net investment income (loss) | $ | (1,732,861) | $ | (1,877,318) | $ | 294,624 | $ | (321,611) | ||||||||
Net realized gain (loss) on securities sold | 45,233,523 | (8,491,443) | 18,281,015 | 72,703 | ||||||||||||
Net change in unrealized appreciation (depreciation) of investment securities | 7,591,121 | 96,060,411 | (864,559) | 20,930,095 | ||||||||||||
Net Increase Net Assets Resulting from Operations | 51,091,783 | 85,691,650 | 17,711,080 | 20,681,187 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net income | – | – | (74,688) | – | ||||||||||||
Realized capital gains | – | – | – | – | ||||||||||||
Total Distributions | – | – | (74,688) | – | ||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Shares issued | 30,067,137 | 122,945,500 | 55,782,117 | 75,230,262 | ||||||||||||
Shares issued in lieu of cash distributions | – | – | 71,207 | – | ||||||||||||
Shares redeemed | (141,332,935) | (105,140,649) | (122,176,693) | (13,577,496) | ||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (111,265,798) | 17,804,851 | (66,323,369) | 61,652,766 | ||||||||||||
Total Increase (Decrease) in Net Assets | (60,174,015) | 103,496,501 | (48,686,977) | 82,333,953 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of Period | 319,358,501 | 215,862,000 | 118,531,953 | 36,198,000 | ||||||||||||
End of Period | $ | 259,184,486 | $ | 319,358,501 | $ | 69,844,976 | $ | 118,531,953 | ||||||||
Including accumulated undistributed net investment income (loss) | $ | – | $ | (233) | $ | 219,936 | $ | (1) | ||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||
Issued | 880,571 | 5,058,462 | 2,205,240 | 3,587,734 | ||||||||||||
Issued in lieu of cash distributions | – | – | 2,819 | – | ||||||||||||
Redeemed | (4,137,051) | (3,938,184) | (4,809,662) | (699,758) | ||||||||||||
Net Increase (Decrease) in Share Transactions | (3,256,480) | 1,120,278 | (2,601,603) | 2,887,976 | ||||||||||||
The accompanying notes are an integral part of the financial statements.
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Rock Oak Core Growth Fund | River Oak Discovery Fund | Red Oak Technology Select Fund | ||||||||||||||||||||
For The Year Ended | For The Year Ended | For The Year Ended | For The Year Ended | For The Year Ended | For The Year Ended | |||||||||||||||||
$ |
(36,213) |
| $ | (25,760) | $ | (75,100) | $ | (51,522) | $ | (476,368) | $ | (289,711) | ||||||||||
733,651 | (783,207) | 1,055,480 | (868,499) | 10,109,691 | (4,423,023) | |||||||||||||||||
578,115 | 1,834,855 | 406,047 | 2,579,351 | 4,654,333 | 24,484,894 | |||||||||||||||||
1,275,553 | 1,025,888 | 1,386,427 | 1,659,330 | 14,287,656 | 19,772,160 | |||||||||||||||||
– | – | – | – | – | – | |||||||||||||||||
– | – | – | – | – | – | |||||||||||||||||
– | – | – | – | – | – | |||||||||||||||||
559,003 | 618,919 | 1,410,296 | 2,933,231 | 8,590,819 | 18,671,976 | |||||||||||||||||
– | – | – | – | – | – | |||||||||||||||||
(889,040) | (417,500) | (1,918,585) | (514,147) | (30,973,816) | (9,012,358) | |||||||||||||||||
(330,037) | 201,419 | (508,289) | 2,419,084 | (22,382,997) | 9,659,618 | |||||||||||||||||
945,516 | 1,227,307 | 878,138 | 4,078,414 | (8,095,341) | 29,431,778 | |||||||||||||||||
5,798,307 | 4,571,000 | 8,246,414 | 4,168,000 | 73,510,778 | 44,079,000 | |||||||||||||||||
$ | 6,743,823 | $ | 5,798,307 | $ | 9,124,552 | $ | 8,246,414 | $ | 65,415,437 | $ | 73,510,778 | |||||||||||
$ | – | $ | – | $ | – | $ | (34) | $ | – | $ | 182 | |||||||||||
55,197 | 67,508 | 118,033 | 277,185 | 1,096,472 | 3,024,664 | |||||||||||||||||
– | – | – | – | – | – | |||||||||||||||||
(88,834) | (57,821) | (160,078) | (54,447) | (3,997,077) | (1,530,910) | |||||||||||||||||
(33,637) | 9,687 | (42,045) | 222,738 | (2,900,605) | 1,493,754 | |||||||||||||||||
Annual Report | October 31, 2010 |
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Statements of Changes in Net Assets
|
Black Oak Emerging Technology Fund | Live Oak Health Sciences Fund | |||||||||||||||
For The Year Ended October 31, 2010 | For The Year Ended | For The Year Ended | For The Year Ended | |||||||||||||
INVESTMENT ACTIVITIES: | ||||||||||||||||
Net investment income (loss) | $ | (409,782) | $ | (292,892) | $ | 32,926 | $ | (11,894) | ||||||||
Net realized gain (loss) on securities sold | 16,228,153 | (4,425,500) | 912,605 | 624,104 | ||||||||||||
Net change in unrealized appreciation (depreciation) of investment securities | (4,913,420) | 12,560,989 | 2,401,566 | 1,562,288 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 10,904,951 | 7,842,597 | 3,347,097 | 2,174,498 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net income | – | – | – | – | ||||||||||||
Realized capital gains | – | – | (593,292) | – | ||||||||||||
Total Distributions | – | – | (593,292) | – | ||||||||||||
CAPITAL SHARE TRANSACTIONS (IN DOLLARS): | ||||||||||||||||
Shares issued | 15,446,028 | 15,554,602 | 3,595,743 | 1,558,636 | ||||||||||||
Shares issued in lieu of cash distributions | – | – | 581,370 | – | ||||||||||||
Shares redeemed | (20,233,340) | (5,278,595) | (3,584,998) | (1,496,600) | ||||||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (4,787,312) | 10,276,007 | 592,115 | 62,036 | ||||||||||||
Total Increase in Net Assets | 6,117,639 | 18,118,604 | 3,345,920 | 2,236,534 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of Period | 37,596,604 | 19,478,000 | 16,249,534 | 14,013,000 | ||||||||||||
End of Period | $ | 43,714,243 | $ | 37,596,604 | $ | 19,595,454 | $ | 16,249,534 | ||||||||
Including accumulated undistributed net investment income (loss) | $ | – | $ | – | $ | 32,926 | $ | 33 | ||||||||
SHARES ISSUED AND REDEEMED: | ||||||||||||||||
Issued | 6,031,275 | 8,061,151 | 296,580 | 152,885 | ||||||||||||
Issued in lieu of cash distributions | – | – | 49,478 | – | ||||||||||||
Redeemed | (8,339,357) | (2,812,369) | (296,453) | (154,741) | ||||||||||||
Net Increase (Decrease) in Share Transactions | (2,308,082) | 5,248,782 | 49,605 | (1,856) | ||||||||||||
The accompanying notes are an integral part of the financial statements.
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OAK ASSOCIATES FUNDS
|
This Page Intentionally Left Blank |
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For a share outstanding throughout the years ended
Year Ended October 31, 2010
| ||||
WHITE OAK SELECT GROWTH FUND | ||||
Net Asset Value Beginning of Period | $ | 31.44 | ||
Income (Loss) From Operations | ||||
Net Investment Income (Loss)(a) | (0.20) | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 6.32 | |||
Total From Operations | 6.12 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | – | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | – | |||
Net Asset Value End of Period | $ | 37.56 | ||
Total Return(b) | 19.47% | |||
Net Assets End of Period (000) | $ | 259,184 | ||
Ratio of Net Expenses to Average Net Assets | 1.25% | |||
Ratio of Net Investment Loss to Average Net Assets | (0.58)% | |||
Ratio of Net Expenses to Average Net Assets | 1.25% | |||
Ratio of Expenses to Average Net Assets | 1.34% | |||
Portfolio Turnover Rate | 14% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The accompanying notes are an integral part of the financial statements.
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||
$ | 23.89 | $ | 39.49 | $ | 31.91 | $ | 31.35 | |||||||
(0.18) | (0.23) | (0.12) | (0.13) | |||||||||||
7.73 | (15.37) | 7.70 | 0.71 | |||||||||||
7.55 | (15.60) | 7.58 | 0.58 | |||||||||||
– | – | – | (0.02) | |||||||||||
– | – | – | – | |||||||||||
– | – | – | (0.02) | |||||||||||
$ | 31.44 | $ | 23.89 | $ | 39.49 | $ | 31.91 | |||||||
31.60% | (39.50)% | 23.75% | 1.85% | |||||||||||
$ | 319,359 | $ | 215,862 | $ | 439,978 | $ | 538,516 | |||||||
1.25% | 1.25% | 1.25% | 1.19% | |||||||||||
(0.70)% | (0.70)% | (0.34)% | (0.42)% | |||||||||||
1.25% | 1.25% | 1.25% | 1.20% | |||||||||||
1.51% | 1.41% | 1.28% | 1.20% | |||||||||||
31% | 25% | 29% | 52% |
Annual Report | October 31, 2010 |
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Table of Contents
Financial Highlights
| ||
For a share outstanding throughout the years ended |
| Year Ended October 31, 2010 |
| ||
PIN OAK EQUITY FUND | ||||
Net Asset Value Beginning of Period | $ | 22.74 | ||
Income (Loss) From Operations | ||||
Net Investment Income (Loss)(a) | 0.07 | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 3.96 | |||
Total From Operations | 4.03 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | (0.01) | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | (0.01) | |||
Net Asset Value End of Period | $ | 26.76 | ||
Total Return(b) | 17.74% | |||
Net Assets End of Period (000) | $ | 69,845 | ||
Ratio of Net Expenses to Average Net Assets | 1.25% | |||
Ratio of Net Investment Income/(Loss) to Average Net Assets | 0.27% | |||
Ratio of Net Expenses to Average Net Assets | 1.25% | |||
Ratio of Expenses to Average Net Assets | 1.33% | |||
Portfolio Turnover Rate | 35% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The accompanying notes are an integral part of the financial statements.
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||||||
|
$ 15.58 |
| $ | 27.46 | $ | 21.18 | $ | 21.13 | ||||||||||
(0.11) | (0.08) | (0.12) | (0.16) | |||||||||||||||
7.27 | (11.80) | 6.40 | 0.21 | |||||||||||||||
7.16 | (11.88) | 6.28 | 0.05 | |||||||||||||||
– | – | – | – | |||||||||||||||
– | – | – | – | |||||||||||||||
– | – | – | – | |||||||||||||||
$ 22.74 | $ | 15.58 | $ | 27.46 | $ | 21.18 | ||||||||||||
45.96% | (43.26)% | 29.65% | 0.24% | |||||||||||||||
$ 118,532 | $ | 36,198 | $ | 90,901 | $ | 92,549 | ||||||||||||
1.25% | 1.25% | 1.25% | 1.21% | |||||||||||||||
(0.58)% | (0.34)% | (0.50)% | (0.74)% | |||||||||||||||
1.25% | 1.25% | 1.25% | 1.21% | |||||||||||||||
1.60% | 1.51% | 1.35% | 1.27% | |||||||||||||||
16% | 38% | 18% | 20% |
Annual Report | October 31, 2010 |
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Financial Highlights
| ||
For a share outstanding throughout the years ended
|
Year Ended October 31, 2010 | ||||
ROCK OAK CORE GROWTH FUND | ||||
Net Asset Value Beginning of Period | $ | 9.09 | ||
Income (Loss) From Operations | ||||
Net Investment Loss(a) | (0.06) | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 2.13 | |||
Total From Operations | 2.07 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | – | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | – | |||
Net Asset Value End of Period | $ | 11.16 | ||
Total Return(b) | 22.77% | |||
Net Assets End of Period (000) | $ | 6,744 | ||
Ratio of Net Expenses to Average Net Assets | 1.25% | |||
Ratio of Net Investment Loss to Average Net Assets | (0.59)% | |||
Ratio of Net Expenses to Average Net Assets (Excluding Fees Paid Indirectly) | 1.25% | |||
Ratio of Expenses to Average Net Assets (Excluding Waivers and/or Fees Paid Indirectly) | 1.54% | |||
Portfolio Turnover Rate | 62% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The accompanying notes are an integral part of the financial statements.
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||
$ |
7.28 |
| $ | 13.45 | $ | 10.68 | $ | 10.10 | ||||||
|
(0.04) |
| (0.06) | (0.07) | (0.06) | |||||||||
|
1.85 |
| (5.54) | 2.84 | 0.64 | |||||||||
1.81 | (5.60) | 2.77 | 0.58 | |||||||||||
|
– |
| – | – | – | |||||||||
– | (0.57) | – | – | |||||||||||
– | (0.57) | – | – | |||||||||||
$ | 9.09 | $ | 7.28 | $ | 13.45 | $ | 10.68 | |||||||
24.86% | (43.43)% | 25.94% | 5.74% | |||||||||||
$ | 5,798 | $ | 4,571 | $ | 8,389 | $ | 9,688 | |||||||
1.25% | 1.25% | 1.25% | 1.22% | |||||||||||
(0.56)% | (0.53)% | (0.57)% | (0.54)% | |||||||||||
1.25% | 1.25% | 1.25% | 1.22% | |||||||||||
1.82% | 1.56% | 1.46% | 1.44% | |||||||||||
45% | 92% | 86% | 88% |
Annual Report | October 31, 2010 |
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Table of Contents
Financial Highlights
| ||
For a share outstanding throughout the years ended |
Year Ended October 31, 2010 | ||||
RIVER OAK DISCOVERY FUND | ||||
Net Asset Value Beginning of Period | $ | 10.96 | ||
Income (Loss) From Operations | ||||
Net Investment Loss(a) | (0.10) | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 1.98 | |||
Total From Operations | 1.88 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | – | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | – | |||
Net Asset Value End of Period | $ | 12.84 | ||
Total Return(b) | 17.15% | |||
Net Assets End of Period (000) | $ | 9,125 | ||
Ratio of Net Expenses to Average Net Assets | 1.35% | |||
Ratio of Net Investment Loss to Average Net Assets | (0.83)% | |||
Ratio of Net Expenses to Average Net Assets | 1.35% | |||
Ratio of Expenses to Average Net Assets | 1.57% | |||
Portfolio Turnover Rate | 56% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The | accompanying notes are an integral part of the financial statements. |
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||
$ |
7.86 |
| $ | 14.80 | $ | 11.56 | $ | 10.10 | ||||||
(0.09) | (0.08) | (0.12) | (0.09) | |||||||||||
3.19 | (6.46) | 3.36 | 1.55 | |||||||||||
3.10 | (6.54) | 3.24 | 1.46 | |||||||||||
– | – | – | – | |||||||||||
– | (0.40) | – | – | |||||||||||
– | (0.40) | – | – | |||||||||||
$ | 10.96 | $ | 7.86 | $ | 14.80 | $ | 11.56 | |||||||
39.44% | (45.31)% | 28.03% | 14.46% | |||||||||||
$ | 8,247 | $ | 4,168 | $ | 7,823 | $ | 5,943 | |||||||
1.35% | 1.35% | 1.35% | 1.35% | |||||||||||
(1.03)% | (0.68)% | (0.92)% | (0.81)% | |||||||||||
1.35% | 1.35% | 1.35% | 1.35% | |||||||||||
1.92% | 1.76% | 1.72% | 2.74% | |||||||||||
67% | 145% | 148% | 72% |
Annual Report | October 31, 2010 |
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Table of Contents
Financial Highlights
| ||
For a share outstanding throughout the years ended |
Year Ended October 31, 2010 | ||||
RED OAK TECHNOLOGY SELECT FUND | ||||
Net Asset Value Beginning of Period | $ | 7.04 | ||
Income (Loss) From Operations | ||||
Net Investment Loss(a) | (0.05) | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 1.68 | |||
Total From Operations | 1.63 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | – | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | – | |||
Net Asset Value End of Period | $ | 8.67 | ||
Total Return(b) | 23.15% | |||
Net Assets End of Period (000) | $ | 65,415 | ||
Ratio of Net Expenses to Average Net Assets | 1.35% | |||
Ratio of Net Investment Loss to Average Net Assets | (0.70)% | |||
Ratio of Net Expenses to Average Net Assets (Excluding Fees Paid Indirectly) | 1.35% | |||
Ratio of Expenses to Average Net Assets (Excluding Waivers and/or Fees Paid Indirectly) | 1.53% | |||
Portfolio Turnover Rate | 28% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The | accompanying notes are an integral part of the financial statements. |
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||
$ |
4.92 |
| $ | 8.75 | $ | 6.90 | $ | 6.55 | ||||||
(0.03) | (0.06) | (0.03) | (0.06) | |||||||||||
2.15 | (3.77) | 1.88 | 0.41 | |||||||||||
2.12 | (3.83) | 1.85 | 0.35 | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
$ | 7.04 | $ | 4.92 | $ | 8.75 | $ | 6.90 | |||||||
43.09% | (43.77)% | 26.81% | 5.34% | |||||||||||
$ | 73,511 | $ | 44,079 | $ | 115,005 | $ | 116,449 | |||||||
1.35% | 1.35% | 1.35% | 1.27% | |||||||||||
(0.56)% | (0.80)% | (0.40)% | (0.89)% | |||||||||||
1.35% | 1.35% | 1.35% | 1.27% | |||||||||||
1.82% | 1.58% | 1.40% | 1.34% | |||||||||||
30% | 17% | 11% | 93% |
Annual Report | October 31, 2010 |
57 |
Table of Contents
Financial Highlights
| ||
For a share outstanding throughout the years ended |
Year Ended October 31, 2010 | ||||
BLACK OAK EMERGING TECHNOLOGY FUND | ||||
Net Asset Value Beginning of Period | $ | 2.19 | ||
Income (Loss) From Operations | ||||
Net Investment Loss(a) | (0.03) | |||
Realized and Unrealized Gain or (Losses) in Securities(a) | 0.78 | |||
Total From Operations | 0.75 | |||
Less Distributions: | ||||
Dividends from Net Investment Income | – | |||
Distributions from Capital Gains | – | |||
Total Dividends and Distributions | – | |||
Net Asset Value End of Period | $ | 2.94 | ||
Total Return(b) | 34.25% | |||
Net Assets End of Period (000) | $ | 43,714 | ||
Ratio of Net Expenses to Average Net Assets | 1.35% | |||
Ratio of Net Investment Loss to Average Net Assets | (1.16)% | |||
Ratio of Net Expenses to Average Net Assets (Excluding Fees Paid Indirectly) | 1.35% | |||
Ratio of Expenses to Average Net Assets (Excluding Waivers and/or Fees Paid Indirectly) | 1.55% | |||
Portfolio Turnover Rate | 99% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The accompanying notes are an integral part of the financial statements.
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||
$ 1.63 | $ 2.94 | $ 2.21 | $ 2.05 | |||||
(0.02) | (0.02) | (0.03) | (0.02) | |||||
0.58 | (1.29) | 0.76 | 0.18 | |||||
0.56 | (1.31) | 0.73 | 0.16 | |||||
– | – | – | – | |||||
– | – | – | – | |||||
– | – | – | – | |||||
$ 2.19 | $ 1.63 | $ 2.94 | $ 2.21 | |||||
34.36% | (44.56)% | 33.03% | 7.80% | |||||
$ 37,596 | $ 19,478 | $ 39,810 | $ 39,617 | |||||
1.35% | 1.35% | 1.35% | 1.28% | |||||
(1.15)% | (0.94)% | (1.04)% | (1.13)% | |||||
1.35% | 1.35% | 1.35% | 1.28% | |||||
1.93% | 1.76% | 1.62% | 1.53% | |||||
49% | 79% | 76% | 97% |
Annual Report | October 31, 2010 |
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Financial Highlights
| ||
For a share outstanding throughout the years ended |
Year Ended October 31, 2010 | ||
LIVE OAK HEALTH SCIENCES FUND | ||
Net Asset Value Beginning of Period | $ 11.00 | |
Income (Loss) From Operations | ||
Net Investment Income (Loss)(a) | 0.02 | |
Realized and Unrealized Gain or (Losses) in Securities(a) | 2.22 | |
Total From Operations | 2.24 | |
Less Distributions: | ||
Dividends from Net Investment Income | – | |
Distributions from Capital Gains | (0.40) | |
Total Dividends and Distributions | (0.40) | |
Net Asset Value End of Period | $ 12.84 | |
Total Return(b) | 20.66% | |
Net Assets End of Period (000) | $ 19,595 | |
Ratio of Net Expenses to Average Net Assets | 1.35% | |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.17% | |
Ratio of Net Expenses to Average Net Assets (Excluding Fees Paid Indirectly) | 1.35% | |
Ratio of Expenses to Average Net Assets (Excluding Waivers and/or Fees Paid Indirectly) | 1.38% | |
Portfolio Turnover Rate | 22% |
(a) | Per share calculations were performed using average shares for the period. |
(b) | Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. |
The accompanying notes are an integral part of the financial statements.
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Year Ended October 31, 2009 | Year Ended October 31, 2008 | Year Ended October 31, 2007 | Year Ended October 31, 2006 | |||||||||||
|
$9.48 |
| $ | 12.41 | $ | 11.18 | $ | 11.66 | ||||||
(0.01) | (0.04) | (0.01) | (0.07) | |||||||||||
1.53 | (2.89) | 1.24 | (0.41) | |||||||||||
1.52 | (2.93) | 1.23 | (0.48) | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
$ | 11.00 | $ | 9.48 | $ | 12.41 | $ | 11.18 | |||||||
16.03% | (23.61)% | 11.00% | (4.12)% | |||||||||||
$ | 16,249 | $ | 14,013 | $ | 21,354 | $ | 25,263 | |||||||
1.35% | 1.35% | 1.35% | 1.21% | |||||||||||
(0.08)% | (0.36)% | (0.11)% | (0.59)% | |||||||||||
1.35% | 1.35% | 1.35% | 1.21% | |||||||||||
1.61% | 1.52% | 1.37% | 1.23% | |||||||||||
31% | 25% | 28% | 57% |
Annual Report | October 31, 2010 |
61 |
Table of Contents
| ||
As of October 31, 2010 |
1. ORGANIZATION:
The Oak Associates Funds (the “Trust”) is organized as a Massachusetts business trust under an Agreement and Declaration of Trust dated November 6, 1997. The Trust is registered under the Investment Company Act of 1940, as amended, as an open–end management investment company with seven funds: White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund and River Oak Discovery Fund (diversified funds); Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund (non–diversified funds) (collectively referred to as “Funds” and individually referred to as a “Fund”). The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) 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 increases and decreases in net assets from operations and expenses during the reporting period. Actual results could differ from those estimates, and could have a material impact to the Funds.
Security Valuation – Investments in equity securities, which are traded on a national exchange, are stated at the last quoted sales price if readily available for such equity securities on each business day. Investments in equity securities, which are reported on the NASDAQ national market system are valued at the official closing price; other equity securities traded in the over–the–counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding sixty days to maturity for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost, which approximates market value.
Redeemable securities issued by open–end registered investment companies are valued at the investment company’s applicable net asset value.
Securities for which market prices are not “readily available” (of which there were none as of October 31, 2010) are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees. The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Funds’ Board of Trustees. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de–listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; a significant event with respect to a security or securities has occurred after the close of the market or exchange on which the security or securities principally trades and before the time the Fund calculates net asset value; or trading of the security is subject to local government–imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.
Security Transactions and Investment Income – Security transactions are accounted for on the date the security is purchased or sold (trade date). Dividend income is recognized on the ex–dividend date, and interest income is recognized on the actual basis. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities sold.
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Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
Expenses – Expenses that are directly related to one of the Funds are charged to that Fund. Other operating expenses of the Trust are prorated to the Funds on the basis of relative daily net assets.
Repurchase Agreements – The Funds invest in tri–party repurchase agreements. Securities held as collateral for tri–party repurchase agreements are maintained by the broker’s custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the repurchase agreements and procedures adopted by the Board of Trustees require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited.
Dividends and Distributions to Shareholders – Dividends from net investment income are declared and paid to shareholders on an annual basis, as applicable. Net realized capital gains on sales of securities, if any, are distributed to shareholders at least annually. Distributions to shareholders are determined in accordance with income tax regulations and are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. Therefore, the source of the fund’s distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain, or from paid–in–capital, depending upon the type of book/tax differences that may exist.
3. FAIR VALUE MEASUREMENTS
A three–tier hierarchy has been established for fair value measurement based on the extent of use of “observable inputs” as compared to “unobservable inputs” for disclosure purposes and requires additional disclosures about these valuations measurements. Inputs refer broadly to the assumptions that market participants would use in pricing a security. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the security developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the security developed based on the best information available in the circumstances
The three–tier hierarchy is summarized as follows:
1) | Level 1 – Quoted and Unadjusted prices in active markets for identical securities |
2) | Level 2 – Other Significant Observable Inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
3) | Level 3 – Significant Unobservable Inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following is a summary of the inputs used to value each Funds investments as of October 31, 2010.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
WHITE OAK SELECT GROWTH FUND |
| |||||||||||||||
Common Stocks | $ | 259,405,574 | $ | – | $ | – | $ | 259,405,574 | ||||||||
Short Term Investments | 248,554 | – | – | 248,554 | ||||||||||||
Total | $ | 259,654,128 | $ | – | $ | – | $ | 259,654,128 | ||||||||
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
PIN OAK EQUITY FUND | ||||||||||||||||
Common Stocks | $ | 70,141,267 | $ | – | $ | – | $ | 70,141,267 | ||||||||
Short Term Investments | 447,653 | – | – | 447,653 | ||||||||||||
Total | $ | 70,588,920 | $ | – | $ | – | $ | 70,588,920 | ||||||||
ROCK OAK CORE GROWTH FUND | ||||||||||||||||
Common Stocks | $ | 6,516,026 | $ | – | $ | – | $ | 6,516,026 | ||||||||
Short Term Investments | 246,206 | – | – | 246,206 | ||||||||||||
Total | $ | 6,762,232 | $ | – | $ | – | $ | 6,762,232 | ||||||||
RIVER OAK DISCOVERY FUND | ||||||||||||||||
Common Stocks | $ | 8,515,718 | $ | – | $ | – | $ | 8,515,718 | ||||||||
Short Term Investments | 561,765 | – | – | 561,765 | ||||||||||||
Total | $ | 9,077,483 | $ | – | $ | – | $ | 9,077,483 | ||||||||
RED OAK TECHNOLOGY SELECT FUND | ||||||||||||||||
Common Stocks | $ | 64,042,972 | $ | – | $ | – | $ | 64,042,972 | ||||||||
Repurchase Agreements | – | 1,558,067 | – | 1,558,067 | ||||||||||||
Total | $ | 64,042,972 | $ | 1,558,067 | $ | – | $ | 65,601,039 | ||||||||
BLACK OAK EMERGING TECHNOLOGY FUND | ||||||||||||||||
Common Stocks | $ | 38,955,809 | $ | – | $ | – | $ | 38,955,809 | ||||||||
Repurchase Agreements | – | 6,043,836 | – | 6,043,836 | ||||||||||||
Total | $ | 38,955,809 | $ | 6,043,836 | $ | – | $ | 44,999,645 | ||||||||
LIVE OAK HEALTH SCIENCES FUND | ||||||||||||||||
Common Stocks | $ | 19,393,442 | $ | – | $ | – | $ | 19,393,442 | ||||||||
Short Term Investments | 203,058 | – | – | 203,058 | ||||||||||||
Total | $ | 19,596,500 | $ | – | $ | – | $ | 19,596,500 | ||||||||
The above tables are presented by levels of disaggregation for each asset class. For detailed descriptions of the underlying industries, see the accompanying Schedules of Investments.
There were no Level 3 securities held during the year.
4. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Oak Associates, Ltd., ALPS Fund Services, Inc. (the “Administrator”) and/or ALPS Distributors, Inc. (the “Distributor”) Such officers are paid no fees by . the Trust for serving as officers of the Trust.
5. ADMINISTRATION, TRANSFER AGENT AND DISTRIBUTION AGREEMENTS:
Administration: ALPS Fund Services, Inc. (the “Administrator”) serves as administrator to the Trust. The Trust and the Administrator have entered into an administration agreement dated May 17, 2010 (the “Ad-ministration Agreement”) Under the Administration Agreement, the Administrator provides the Trust
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with administrative services, including regulatory reporting, fund accounting services, including calculating the Funds’ daily net asset value, and all necessary office space, equipment, personnel and facilities. The Administration Agreement provides that the Administrator shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Trust in connection with the matters to which the Administration Agreement relates, except a loss resulting from willful misfeasance, bad faith or negligence on the part of the Administrator in the performance of its duties or from reckless disregard by it of its duties and obligations thereunder. The Administration Agreement shall remain in effect for a period of one year after the effective date of the agreement and shall continue in effect for successive periods of one year unless terminated by either party on not less than 60 days’ prior written notice to the other party.
Prior to May 17, 2010, SEI Investments Global Fund Services served as administrator to the Funds under which SEI provided management and administration services.
Transfer Agent: As of May 17, 2010, ALPS Fund Services, Inc. (the “Transfer Agent”) serves as transfer agent, dividend paying agent and shareholder service agent for the Trust under a transfer agency services agreement with the Trust.
For the period May 17, 2010 – October 31, 2010, ALPS Fund Services earned $186,416 and $225,419 for services as Administrator and Transfer Agent, respectively.
Distribution: The Trust and ALPS Distributors, Inc. (the “Distributor”), an affiliate of the Administrator, are parties to a distribution agreement dated May 17, 2010 (the “Distribution Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares. The Distributor agreed to use its best efforts in distributing Fund shares but is not obligated to sell any particular number of shares. The Distributor does not receive compensation under the Distribution Agreement for distribution of Fund shares.
Prior to May 17, 2010, DST Systems, Inc. served as the transfer agent and dividend disbursing agent for the Funds under an Agency Agreement with the Trust dated February 27, 1998.
6. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and the Adviser are parties to an Investment Advisory Agreement dated February 27, 1998, as last amended May 4, 2005, under which the Adviser receives an annual fee equal to 0.74% of the average daily net assets of each Fund, except for the River Oak Discovery Fund for which the Adviser receives 0.90% of the average daily net assets of the Fund. Effective February 28, 2008, the Adviser agreed to contractually waive all or a portion of its fees (and to reimburse the Funds’ expenses if necessary) in order to limit operating expenses to not more than 1.25% of the average daily net assets of the White Oak Select Growth, Rock Oak Core Growth and Pin Oak Equity Funds, and 1.35% of the average daily net assets of the River Oak Discovery, Red Oak Technology Select, Black Oak Emerging Technology and Live Oak Health Sciences Funds for one year periods. Effective March 1, 2010 the Adviser contractually agreed to continue this arrangement through February 28, 2011.
U.S. Bank N.A. acts as custodian (the “Custodian”) for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased or sold by the Funds.
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7. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than short–term investments, for the year ended October 31, 2010, were as follows:
Purchases | Sales | |||||||
White Oak Select Growth Fund | $ | 40,684,470 | $ | 151,494,998 | ||||
Pin Oak Equity Fund | 36,912,339 | 90,526,713 | ||||||
Rock Oak Core Growth Fund | 3,626,104 | 4,043,431 | ||||||
River Oak Discovery Fund | 4,640,142 | 5,555,302 | ||||||
Red Oak Technology Select Fund | 18,300,289 | 41,404,618 | ||||||
Black Oak Emerging Technology Fund | 33,559,636 | 42,670,321 | ||||||
Live Oak Health Sciences Fund | 3,935,001 | 3,887,167 |
8. FEDERAL INCOME TAXES:
Each of the Funds is classified as a separate taxable entity for Federal income tax purposes. Each of the Funds intends to continue to qualify as a separate “regulated investment company” under Subchapter M of the Internal Revenue Code and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.
To the extent that dividends from net investment income and distributions from net realized capital gains exceed amounts reported in the financial statements, such amounts are reported separately.
The amounts of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. The character of dividends from net investment income or distributions from net realized gains made during the year, and the timing of dividends and distributions where the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. These differences are primarily due to the reclass of distributions on net operating losses and expiration of capital loss carryforwards.
Accordingly, the following permanent differences have been reclassified to/from the following accounts:
Fund | (Over)/ Undistributed Net Investment Income | Accumulated Capital Gains/ (Losses) | Paid-in Capital | |||||||||
White Oak Select Growth Fund | $ | 1,733,094 | $ | 667,739,381 | $ | (669,472,475) | ||||||
Pin Oak Equity Fund | 1 | 417,945,310 | (417,945,311) | |||||||||
Rock Oak Core Growth Fund | 36,213 | 364 | (36,577) | |||||||||
River Oak Discovery Fund | 75,134 | (1,370) | (73,764) | |||||||||
Red Oak Technology Select Fund | 476,186 | 715,257,563 | (715,733,749) | |||||||||
Black Oak Emerging Technology Fund | 409,782 | 196,621,134 | (197,030,916) | |||||||||
Live Oak Health Sciences Fund | (33) | (14) | 47 |
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The tax character of the distributions paid by the Funds for the fiscal year ended October 31, 2010 is as follows:
Fund | Ordinary Income | Long–Term Capital Gain | Total | |||||||||
Pin Oak Equity Fund | $ | 74,688 | $ | – | $ | 74,688 | ||||||
Live Oak Health Sciences Fund | 16,484 | 576,808 | 593,292 |
As of October 31, 2010, the components of distributable earnings on a tax basis were as follows:
Undistributed Net Investment Income | Accumulated Capital Gains/ (Losses) | Unrealized Appreciation | Total | |||||||||||||
White Oak Select Growth Fund | $ | – | $ | (1,304,364,741 | ) | $ | 73,731,532 | $ | (1,230,633,209 | ) | ||||||
Pin Oak Equity Fund | 219,936 | (288,126,080 | ) | 15,824,536 | (272,081,608 | ) | ||||||||||
Rock Oak Core Growth Fund | – | (236,921 | ) | 1,449,699 | 1,212,778 | |||||||||||
River Oak Discovery Fund | – | 130,972 | 1,558,920 | 1,689,892 | ||||||||||||
Red Oak Technology Select Fund | – | (332,505,406 | ) | 13,737,781 | (318,767,625 | ) | ||||||||||
Black Oak Emerging Technology Fund | – | (19,610,208 | ) | 1,849,569 | (17,760,639 | ) | ||||||||||
Live Oak Health Sciences Fund | 442,159 | 503,243 | 3,742,854 | 4,688,256 |
For Federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains.
At October 31, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
Expiring October 31, | ||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Total | |||||||||||||||||||||||||
White Oak Select Growth Fund | $ | 206,601,681 | $ | 744,256,673 | $ | 321,944,019 | $ | – | $ | – | $ | 22,546,570 | $ | 9,015,798 | $ | 1,304,364,741 | ||||||||||||||||
Pin Oak Equity Fund | 180,086,547 | 90,283,407 | 17,756,126 | – | – | – | – | 288,126,080 | ||||||||||||||||||||||||
Rock Oak Core Growth Fund | – | – | – | – | – | – | 236,921 | 236,921 | ||||||||||||||||||||||||
Red Oak Technology Select Fund | 293,675,488 | 34,232,859 | – | – | – | – | 4,597,059 | 332,505,406 | ||||||||||||||||||||||||
Black Oak Emerging Technology Fund | 15,084,356 | – | – | – | – | – | 4,525,852 | 19,610,208 | ||||||||||||||||||||||||
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At October 31, 2010, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Funds is as follows:
Federal Tax Cost | Aggregate Gross Appreciation | Aggregate Gross Depreciation | Net | |||||||||||||
White Oak Select Growth Fund | $ | 185,922,596 | $ | 90,077,605 | $ | (16,346,073 | ) | $ | 73,731,532 | |||||||
Pin Oak Equity Fund | 54,764,384 | 18,366,921 | (2,542,385 | ) | 15,824,536 | |||||||||||
Rock Oak Core Growth Fund | 5,312,533 | 1,690,583 | (240,884 | ) | 1,449,699 | |||||||||||
River Oak Discovery Fund | 7,518,563 | 1,779,764 | (220,844 | ) | 1,558,920 | |||||||||||
Red Oak Technology Select Fund | 51,863,258 | 17,385,546 | (3,647,765 | ) | 13,737,781 | |||||||||||
Black Oak Emerging Technology Fund | 43,150,076 | 2,968,412 | (1,118,843 | ) | 1,849,569 | |||||||||||
Live Oak Health Sciences Fund | 15,853,646 | 4,985,825 | (1,242,971 | ) | 3,742,854 |
The differences between book and tax net unrealized appreciation and cost were due to deferral of losses from wash sales.
Management evaluates the Funds’ tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.
Management has analyzed the Funds’ tax position taken on federal income tax returns for all open tax years (current and prior three tax years) and has concluded that as of and for the year ended October 31, 2010, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
9. CONCENTRATION OF CREDIT RISK AND OWNERSHIP
The Red Oak Technology Select Fund and the Black Oak Emerging Technology Fund invest a substantial portion of their assets in securities in the technology industry. The Live Oak Health Sciences Fund invests a substantial portion of its assets in securities in the health care, medicine and life sciences industries. Therefore, each of these Funds may be more affected by economic developments in those industries than a general equity fund would be.
In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however based on experience, the risk of loss from such claims is considered remote.
From time to time, the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
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As of October 31, 2010, the James D. Oelschlager Trust owned 37% of the River Oak Discovery Fund and 35% of the Black Oak Emerging Technology Fund.
10. RECENT ACCOUNTING PRONOUNCEMENT
In January 2010, the Financial Accounting Standards Board issued Accounting Standards Update No. 2010–06, “Improving Disclosures About Fair Value Measurements” (“ASU”). The ASU requires enhanced disclosures about (1) transfers into and out of Levels 1 and 2 and (2) purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. The first disclosure is effective for the first reporting period (including interim periods) beginning after December 15, 2009, and the second disclosure will be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact the adoption of this ASU will have on the Fund’s financial statement disclosures. The implementation of the ASC did not have a material effect on the Company’s financial disclosures contained in this Report.
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Report of Independent Registered Public Accounting Firm
To the Shareholders and
Board of Trustees of
Oak Associates Funds
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Oak Associates Funds (the “Funds”), comprising White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund as of October 31, 2010, and the related statements of operations, changes in net assets, and the financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statements of changes in net assets for the year ended October 31, 2009 and the financial highlights for the years indicated prior to October 31, 2010, were audited by another independent registered public accounting firm, who expressed unqualified opinions on those statements and financial highlights.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2010, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds constituting the Oak Associates Funds, as of October 31, 2010, and the results of their operations, the changes in their net assets, and their financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
COHEN FUND AUDIT SERVICES, LTD.
Westlake, Ohio
December 28, 2010
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SHAREHOLDER TAX INFORMATION (UNAUDITED)
For shareholders that do not have an October 31, 2010 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2010 tax year end, please consult your tax advisor as to the pertinence of this notice. The information and distributions reported herein may differ from information and distributions taxable to the shareholders for the calendar year ended December 31, 2010.
For the fiscal year ended October 31, 2010, each fund is designating the following items with regard to distributions paid during the year.
During the year ended October 31, 2010, 100.00% of the dividends paid by the Pin Oak Equity and the Live Oak Health Sciences Funds from ordinary income qualify for the corporate dividends received deduction.
Also during the year ended October 31, 2010, 100.00% of the dividends paid by the Pin Oak Equity and Live Oak Health Sciences Funds from ordinary income met the requirements of the tax rules regarding qualified dividend income.
During the year ended October 31, 2010, the Live Oak Health Sciences Fund distributed $576,808 from Long-Term Capital Gains.
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As of October 31, 2010 |
TRUSTEES OF THE TRUST
Name & Age(1) | Position Held with Trust | Length of Time Served (Yrs.)(2) | Number of Portfolios in Fund Complex Overseen by Board Member(3) | Principal Occupation(s) During Past Five Years | Other Directorships Held by Board Member(4) | |||||
J. John Canon |
Trustee |
10 |
7 |
President and Chairman of the Board, Synergistic Partners, Inc. 1975-1999 |
Trustee of Proconex | |||||
Thomas E. Gretter, MD |
Trustee |
9 |
7 |
Physician, Cleveland Clinic (Health Care) since 1966 |
None | |||||
James D. Oelschlager(5) |
Trustee, Chairman |
10 |
7 |
Managing Member, President CIO and Founder of Oak Associates, ltd. since 1985 |
None | |||||
John G. Stimpson(5) |
Trustee |
10 |
7 |
Director of International Equity Sales and Equity Sales Manager, Salomon Brothers (New York) from 1985 -1993 |
Board of Directors, Morgan Stanley Trust Company from 1988-1993 | |||||
Pauline F. Ramig |
Trustee |
3 |
7 |
Financial Planning Practioner, Ramig Financial Planning since 1991 |
Trustee of Opera Cleveland | |||||
Robert P. Stephans |
Trustee |
3 |
7 |
CPA for Stephans, Kun & Co., Certified Public Accountants since 1980 |
None | |||||
Michael R. Shade
|
Trustee |
3 |
7 |
Attorney at Law; Partner, Shade & Shade since December, 1979
|
None |
1 | Each Trustee may be contacted in writing to the Trustee c/o Oak Associates Funds, 3875 Embassy Parkway, Suite 250, Akron, OH 44333. Each Officer may be contacted in writing to the Officer c/o ALPS Fund Services, Inc., 1290 Broadway Suite 1100, Denver, CO 80203. |
2 | Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his successor, or until he sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust. |
3 | The “Oak Associates Funds Complex” consists of all registered investment companies for which Oak Associates, ltd. serves as investment adviser. As of October 31, 2010, the Oak Associates Funds Complex consisted of 7 Funds. |
4 | Directorships of companies are required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Investment Company Act of 1940. |
5 | Oelschlager and Stimpson are considered “interested” persons of the Trust as that term is defined in the Investment Company Act of 1940. Mr. Oelschlager is interested by virtue of his controlling ownership interest in the Adviser. Mr. Stimpson is considered interested because of his family relationship with an employee of the Adviser. |
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OFFICERS OF THE TRUST
Name & Age(1) | Position Held with Trust | Length of Time Served (Yrs.) | Number of Portfolios in Fund Complex Overseen by Board Member | Principal Occupation(s) During Past Five Years | Other Directorships Held | |||||
Sandra Noll(2) (46) | Chief Compliance Officer, Vice President and Assistant Secretary | 10 | N/A | Director of Client Services at Oak Associates, ltd. since 1998 and Compliance Officer of Oak Associates, ltd., since 1994 | N/A | |||||
Leslie Manna(2) (48) | President | 10 | N/A | Mutual Fund Coordinator of Oak Associates, ltd. since 1995 | N/A | |||||
Patrick Buchanan(3) (38) | Treasurer and Principal Financial Officer | Since May 17, 2010 | N/A | Since October 15, 2007, Senior Fund Controller for ALPS Fund Services, Inc.; from February 2005 to October 2007, Director of Accounting for Madison Capital Management LLC; from August 2003 to February, 2005, Manager of Fund Accounting for Janus Capital Group | N/A | |||||
JoEllen L. Legg(3) (49) | Vice President and Assistant Secretary | Since May 17, 2010 | N/A | Associate Counsel (since 2007) and Vice President (since 2009) for ALPS Fund Services, Inc. Senior Counsel – Law (Corporate & Securities) at Adelphia Communications Corporation (cable communication company) from 2005 to 2007. Associate at Patton Boggs LLP (law firm) from 2004 to 2005. Associate at Fried, Frank, Harris, Shriver & Jacobson (law firm) from 1998 to 2004. | N/A |
1 | Each Officer may be contacted in writing to the Officer c/o ALPS Fund Services, Inc., 1290 Broadway Suite 1100, Denver, CO 80203. |
2 | Noll and Manna are considered to be “affiliates” of the Adviser by virtue of their employment by the Adviser. |
3 | The officers of the Trust also serve as officers to one or more mutual funds for which ALPS Fund Services, Inc. or its affiliates act as investment manager, administrator, or distributor. |
For more information regarding the Trustees, please refer to the Statement of Additional Information, which is available upon request by calling 1-888-462-5386.
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By Mail Oak Associates Funds P.O. Box 8233 Denver, CO 80201-8233
By Telephone 1-888-462-5386 Monday through Friday, 8:30 a.m. to 8:00 p.m. ET
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The Trust files its complete schedule of portfolio holdings of each Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Trust’s Forms N-Q is available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-462-5386; and (ii) on the Commission’s website at http://www.sec.gov.
This report has been prepared for Oak Associates Funds Shareholders and may be distributed to others only if preceded or accompanied by a prospectus.
Oak Associates Funds are distributed by ALPS Distributors, Inc. |
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Item 2. Code of Ethics.
(a) | The Registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf of the Registrant. |
(b) | Not applicable to Registrant. |
(c) | During the period covered by this report, no amendments were made to the provisions of the code of ethics adopted in 2(a) above. |
(d) | During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted. |
(e) | Not applicable to Registrant. |
(f) | The Registrant’s Code of Ethics is attached as Exhibit 2(f). |
Item 3. Audit Committee Financial Expert.
The Registrant’s board of trustees has determined that the Registrant has at least one financial expert serving on the audit committee. The audit committee financial expert serving on the audit committee is Robert Stephans and is independent as defined in Form N-CSR Item 3(a)(2). Mr. Stephans has served as a Certified Public Accountant for Stephans, Kun & Co. since 1980.
Item 4. Principal Accountant Fees and Services.
The principal accountant fees for the fiscal year ended October 31, 2010 were collected by Cohen Fund Audit Services, Ltd. and the principal accountant for the fiscal year ended October 31, 20009 were collected by the predecessor principal accountant.
The Trust aggregate fees for services rendered to the Trust for the last two fiscal years are as follows:
(a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by the applicable principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal years 2010 and 2009 were $77,000 and $107,000, respectively. |
(b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by the applicable principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial |
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statements and are not reported under paragraph (a) of this Item for fiscal years 2010 and 2009 were $0 and N/A, respectively. |
(c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by the applicable principal accountant for tax compliance, tax advice and tax planning for fiscal years 2010 and 2009 were $14,000 and N/A, respectively. |
(d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by the applicable principal accountant, other than the services reported in paragraphs (a) through (c) of this Item, for fiscal years 2010 and 2009 were $0 and N/A, respectively. |
(e)(1) | Not Applicable. |
(e)(2) | No services described in paragraphs (b) through (d) of this Item were approved by the Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable to Registrant. |
(g) | The aggregate non-audit fees and services billed by the applicable principal account for fiscal years 2010 and 2009 were $0 and $0, respectively. |
(h) | During the past fiscal year, the registrant’s principal accountant did not report to the registrant’s audit committee the existence of any non-audit services that were provided to either the registrant’s investment adviser or to any entity controlling, controlled by, or under common control with the registrant’s investment adviser that provided ongoing services to the registrant. |
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end management investment companies.
Item 6. Schedule of Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the Report to Stockholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies.
Not applicable to open-end management investment companies.
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Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and
Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
None.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Code of Ethics attached hereto as Exhibit 2(f).
(a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.
(a)(3) None.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
OAK ASSOCIATES FUNDS
By | /s/ Leslie Manna | |||||
Leslie Manna | ||||||
President | ||||||
Date: | January 7, 2011 | |||||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. | ||||||
By | /s/ Leslie Manna | |||||
Leslie Manna | ||||||
President and Chief Executive Officer | ||||||
Date: | January 7, 2011 | |||||
By | /s/ Patrick Buchanan | |||||
Patrick Buchanan | ||||||
Treasurer and Chief Financial Officer | ||||||
Date: | January 7, 2011 |