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 811-21289
Birmiwal Investment Trust
(Exact name of registrant as specified in charter)
5270 Highland Drive, Bellevue, WA 98006
(Address of principal executive offices) ( Zip code)
Kailash Birmiwal
5270 Highland Drive, Bellevue, WA 98006
(Name and address of agent for service)
Registrant's telephone number, including area code: (425) 957-9436
Date of fiscal year end: March 31
Date of reporting period: September 30, 2007
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Birmiwal Oasis Fund
For Investors Seeking Capital Appreciation
SEMI-ANNUAL REPORT
September 30, 2007
Birmiwal Investment Trust
www.birmiwal.com
1-800-417-5525
BIRMIWAL OASIS FUND (Unaudited)
* Includes industry sectors that individually constitute no more than 4% of net assets.
See Schedule of Investments for additional information.
PERFORMANCE INFORMATION
AVERAGE ANNUAL RATE OF RETURN (%) FOR THE PERIODS ENDED SEPTEMBER 30, 2007.
09/30/07 NAV $36.26
Since
1 Year(A) 3 Year(A) Inception(A)
Birmiwal Oasis Fund
27.20% 39.55%
46.50%
S&P 500(B)
16.44% 13.15%
16.03%
(A) 1 Year, 3 Year and Since Inception returns include change in share prices and in each case includes reinvestment of any dividends and capital gain distributions. The inception date of the Birmiwal Oasis Fund was April 1, 2003.
(B) The S&P 500 is a broad market-weighted average dominated by blue-chip stocks and is an unmanaged group of stocks whose composition is different from the Fund.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. RETURNS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. TO OBTAIN PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 1-800-417-5525.
2007 Semi-Annual Report 1
Availability of Quarterly Schedule of Investments (Unaudited)
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC's website at http://www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the SEC'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.
Proxy Voting Guidelines (Unaudited)
Birmiwal Asset Management, Inc., the Fund’s Adviser, is responsible for exercising the voting rights associated with the securities held by the Fund. A description of the policies and procedures used by the Adviser in fulfilling this responsibility is available without charge on the Fund’s website at www.birmiwal.com. It is also included in the Fund’s Statement of Additional Information, which is available on the Securities and Exchange Commission’s website at http://www.sec.gov.
Information regarding how the Fund voted proxies, Form N-PX, relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling our toll free number (1-800-417-5525). This information is also available on the Securities and Exchange Commission’s website at http://www.sec.gov.
Disclosure of Expenses (Unaudited)
Shareholders of this Fund incur ongoing operating expenses consisting solely of a base management fee and a performance-based management fee. The following example is intended to help you understand your ongoing costs of investing in the Fund and to compare these costs with similar costs of investing in other mutual funds. The example is based on an investment of $1,000 invested in the Fund on March 31, 2007 and held through September 30, 2007.
The first line of the table below provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6) and then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period."
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid by a shareholder for the period. Shareholders may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in other funds' shareholder reports.
Expenses Paid & nbsp;
Beginning Ending During the Period*
Account Value Account Value March 31, 2007 to
March 31, 2007 September 30, 2007 September 30, 2007
Actual $1,000.00 $1,113.64 $23.14
Hypothetical $1,000.00 $1,003.10 $21.93
(5% annual return
before expenses)
* Expenses are equal to the Fund’s annualized expense ratio of 4.38%, multiplied
by the average account value over the period, multiplied by 183/366 (to reflect the
one-half year period.)
2007 Semi-Annual Report 2
Birmiwal Oasis Fund |
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|
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| |
Schedule of Investments | |||||
September 30, 2007 (Unaudited) | |||||
Shares/Principal Amount |
| Market Value |
| % of Net Assets | |
COMMON STOCKS | |||||
Agricultural Chemicals | |||||
524,933 | Bodisen Biotech Inc. * | $ 787,399 | 3.55% | ||
Aircraft Engines & Engine Parts | |||||
4,000 | TAT Technologies Ltd. ** | 54,600 | 0.25% | ||
Coating, Engraving & Allied Services | |||||
31,270 | North American Galvanizing & Coatings Inc. * | 237,652 | 1.07% | ||
Communications Equipment, NEC | |||||
5,000 | Telestone Technologies Corp. * ** | 30,450 | 0.14% | ||
Communications Services, NEC | |||||
8,200 | Hurray! Holding Co. Ltd. * ** | 42,312 | |||
14,000 | Intac International Inc. * ** | 125,860 | |||
168,172 | 0.76% | ||||
Computer Communications Equipment | |||||
2,000 | Acme Packet, Inc. * | 30,840 | |||
1,000 | Riverbed Technology, Inc. * | 40,390 | |||
71,230 | 0.32% | ||||
Computer Storage Devices | |||||
2,000 | EMC Corporation * | 41,600 | 0.19% | ||
Deep Sea Foreign Transportation of Freight | |||||
3,000 | Euroseas, Ltd. ** | 43,590 | |||
10,000 | Oceanfreight Inc. ** | 232,400 | |||
6,000 | Navios Maritime Holdings Inc. ** | 48,900 | |||
10,000 | Top Tankers Inc. * ** | 69,900 | |||
394,790 | 1.78% | ||||
Drawing & Insulating of Nonferrous Wire | |||||
2,000 | Corning Inc. * | 49,300 | 0.22% | ||
Drilling Oil & Gas Wells | |||||
3,000 | Union Drilling, Inc. * | 43,740 | 0.20% | ||
Electric Lighting & Wiring Equipment | |||||
2,000 | LSI Industries Inc. | 41,040 | 0.18% | ||
Electronic Computers | |||||
1,000 | Netezza Corporation * | 12,510 | |||
20,000 | Sun Microsystems Inc. * | 112,400 | |||
124,910 | 0.56% | ||||
Engines & Turbines | |||||
500 | Cummins Inc. * | 63,945 | 0.29% | ||
Finance Services | |||||
2,500 | Life Partners Holdings Inc. | 84,125 | 0.38% | ||
General Bldg Contractors - Nonresidential Bldgs | |||||
1,000 | Perini Corp. * | 55,930 | 0.25% | ||
Gold and Silver Ores | |||||
50,000 | Taseko Mines Ltd. * | 262,500 | 1.18% | ||
Hotels & Motels | |||||
1,000 | Melco PBL Entertainment (Macau) LTD. * ** | 16,500 | 0.07% | ||
Industrial Trucks, Tractors, Trailors & Stackers | |||||
1,000 | Cascade Corp. | 65,170 | |||
800 | Nacco Industries Inc. | 82,784 | |||
147,954 | 0.67% | ||||
Metal Mining | |||||
20,000 | Joy Global, Inc. | 128,600 | 0.58% | ||
Mining Machinery & Equipment (No Oil & Gas Field Mach & Equip) | |||||
2,000 | Joy Global, Inc. | 101,720 | 0.46% | ||
Miscellaneous Electrical Machinery, Equipment & Supplies | |||||
5,000 | GSI Group Inc. * | 56,500 | 0.25% | ||
Miscellaneous Products of Petroleum & Coal | |||||
10,000 | Headwaters Inc. * | 148,800 | 0.67% | ||
Motor Vehicles & Passenger Car Bodies | |||||
3,000 | Tata Motors Ltd. ** | 57,420 | 0.26% |
*Non-Income Producing Securities.
**ADR - American Depository Receipt.
The accompanying notes are an integral part of the financial
statements.
2007 Semi-Annual Report 3
Birmiwal Oasis Fund |
|
|
|
| |
Schedule of Investments | |||||
September 30, 2007 (Unaudited) | |||||
Shares/Principal Amount |
| Market Value |
| % of Net Assets | |
COMMON STOCKS | |||||
Motors & Generators | |||||
5,000 | Harbin Electric, Inc. * ** | 81,250 | 0.37% | ||
Natural Gas Transmisison & Distribution | |||||
1,000 | China Natural Gas, Inc. * | 6,900 | 0.03% | ||
Newspapers: Publishing or Publishing & Printing | |||||
3,000 | Dolan Media Company * | 72,900 | 0.33% | ||
Oil & Gas Field Exploration Services | |||||
14,000 | OMNI Energy Services Corp. * | 112,000 | 0.50% | ||
Pharmaceutical Preparations | |||||
1,000 | Chattem Inc. * | 70,520 | |||
5,000 | Emergent BioSolutions, Inc. * | 44,400 | |||
3,000 | Simcere Pharmaceutical Group. * | 47,790 | |||
3,000 | Sirtris Pharmaceuticals, Inc. * | 51,240 | |||
24,000 | ViroPharma Inc. * | 213,600 | |||
427,550 | 1.93% | ||||
Power, Distribution & Specialty Transformers+ | |||||
2,000 | Jinpan International Ltd. ** | 57,400 | 0.26% | ||
Primary Smelting & Refining of Nonferrous Metals | |||||
8,000 | Sterlite Industries India Ltd. * ** | 148,000 | 0.67% | ||
Radio & Tv Broadcasting & Communications Equipment | |||||
30,000 | C-COR Inc. * | 344,700 | |||
1,000 | Starent Networks, Corp. * | 21,110 | |||
10,000 | Superconductor Technologies Inc. * | 69,800 | |||
435,610 | 1.96% | ||||
Railroad Equipment | |||||
5,000 | American Railcar Industries * | 110,100 | 0.50% | ||
Retail - Apparel & Accessory Stores | |||||
5,000 | Pacific Sunwear of California Inc. * | 74,000 | 0.33% | ||
Retail - Auto Dealers & Gasoline Stations | |||||
1,000 | Copart Inc. * | 34,390 | 0.15% | ||
Retail - Department Stores | |||||
3,000 | Bon-Ton Stores Inc. * | 68,160 | 0.31% | ||
Retail - Eating & Drinking Places | |||||
1,000 | Starbucks Corp. * | 26,200 | 0.12% | ||
Retail - Eating Places | |||||
1,000 | CBRL Group Inc. | 40,800 | 0.18% | ||
Retail - Grocery Stores | |||||
3,000 | Claymore Global Balanced Inc ETF Common ** | 90,960 | 0.41% | ||
Security Brokers, Dealers & Flotation Companies | |||||
1,000 | Interactive Brokers Group, Inc. * | 26,260 | 0.12% | ||
Semiconductors & Related Devices | |||||
40,000 | Actions Semiconductor Co., Ltd. * ** | 220,800 | |||
111,339 | Canadian Solar Inc. * | 1,051,040 | |||
10,000 | ChipMOS TECHNOLOGIES (Bermuda) LTD. * | 59,900 | |||
15,000 | Kulicke & Soffa Industries Inc. * | 127,200 | |||
40,000 | Leadis Technology Inc. * | 140,000 | |||
125,000 | Netlist Inc. * | 258,750 | |||
10,000 | Optium Corporation * | 103,800 | |||
2,000 | Semtech Corp. * | 40,960 | |||
14,000 | Solarfun Power Holdings Co. Ltd. * | 183,820 | |||
5,000 | Trina Solar Ltd. * ** | 284,850 | |||
2,471,120 | 11.14% | ||||
Services - Business Services | |||||
11,000 | AMREP Corp. * | 294,800 | |||
7,000 | China Techfaith Wireless Communication Technology Ltd. * ** | 46,830 | |||
2,000 | Mercadolibre, Inc. * ** | 72,520 | |||
36,000 | New Oriental Energy & Chemical Corp * ** | 219,960 | |||
124,154 | Webzen Inc. * ** | 540,070 | |||
1,174,180 | 5.29% |
*Non-Income Producing Securities.
**ADR - American Depository Receipt.
The accompanying notes are an integral part of the financial
statements.
2007 Semi-Annual Report 4
Birmiwal Oasis Fund |
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|
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| |
Schedule of Investments | |||||
September 30, 2007 (Unaudited) | |||||
Shares/Principal Amount |
| Market Value |
| % of Net Assets | |
COMMON STOCKS | |||||
Services - Computer Integrated Systems Design | |||||
3,000 | Mentor Graphics Corp. * | 45,300 | |||
8,000 | Sonic Solutions * | 83,760 | |||
129,060 | 0.58% | ||||
Services - Computer Processing & Data Preparation | |||||
24,115 | Linktone Ltd. * ** | 80,785 | 0.36% | ||
Services - Computer Programming | |||||
1,000 | Cognizant Technology Solutions Corp. * | 79,790 | |||
2,000 | DivX, Inc. * | 29,740 | |||
2,000 | JDA Software Group Inc. * | 41,320 | |||
1,000 | Satyam Computer Services Ltd. ** | 25,890 | |||
3,000 | Wipro Ltd. ** | 43,320 | |||
220,060 | 0.99% | ||||
Services - Help Supply Services | |||||
10,000 | Volt Information Sciences Inc. * | 176,400 | 0.79% | ||
Services - Offices & Clinics of Doctors of Medicine | |||||
69,000 | Dynacq Healthcare Inc. * | 419,520 | 1.89% | ||
Services - Prepackaged Software | |||||
2,000 | BladeLogic, Inc. * | 51,280 | |||
1,000 | Microsoft Corp. | 29,460 | |||
302,342 | Silverstar Holdings Ltd. * | 1,517,757 | |||
1,598,497 | 7.20% | ||||
Special Industry Machinery, NEC | |||||
3,000 | Trio-Tech International | 32,610 | 0.15% | ||
Steel Pipe & Tubes | |||||
5,000 | Synalloy Corp. | 105,500 | 0.48% | ||
Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens) | |||||
5,000 | Grupo Simec SA de CV * ** | 52,200 | 0.24% | ||
Surgical & Medical Instruments & Apparatus | |||||
5,100 | Accuray Incorporated * | 89,046 | |||
4,000 | Anika Therapeutics Inc. * | 83,240 | |||
21,000 | NeuroMetrix Inc. | 183,330 | |||
355,616 | 1.60% | ||||
Telephone & Telegraph Apparatus | |||||
95,250 | Qiao Xing Mobile Communication Co., Ltd. * ** | 928,687 | |||
187,678 | Qiao Xing Universal Telephone Inc. * ** | 2,075,719 | |||
6,000 | ShoreTel, Inc. * | 85,920 | |||
3,090,326 | 13.93% | ||||
Telephone Communications (No Radiotelephone) | |||||
5,000 | Mahanagar Telephone Nigam Ltd. ** | 39,450 | 0.18% | ||
Unsupported Plastics Film & Sheet | |||||
15,000 | Fuwei Films (Holdings) Co., Ltd. * ** | 127,800 | 0.57% | ||
X-Ray Apparatus & Tubes & Related Irradiation Apparatus | |||||
1,000 | American Science & Engineering Inc. | 62,660 | 0.28% | ||
Total for Common Stock (Cost $15,817,709) | 15,117,141 | 68.12% | |||
EXCHANGE TRADED FUNDS | |||||
6,000 | UltraShort QQQ ProShares **** | 232,500 | |||
18,000 | UltraShort S&P500 ProShares * **** | 912,060 | |||
Total for Exchange Traded Funds (Cost $1,394,806) | 1,144,560 | 5.17% | |||
WARRANTS | |||||
8,896 | Ascent Solar Technologies, Inc. * (expires 7-10-2011) | 64,941 | |||
excise price @1.535 | |||||
55,700 | FreeSeas Inc. (expires 7-29-2011) | 150,390 | |||
excise price @1.274 |
| ||||
Total for Warrants (Cost $216,261) | 215,331 | 0.97% |
*Non-Income Producing Securities.
**ADR - American Depository Receipt.
****Securities pledged as collateral on short positions.
The accompanying notes are an integral part of the financial
statements.
2007 Semi-Annual Report 5
Birmiwal Oasis Fund |
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| |
Schedule of Investments | |||||
September 30, 2007 (Unaudited) | |||||
Shares/Principal Amount |
| Market Value |
| % of Net Assets | |
COMMON STOCKS | |||||
CALL OPTIONS | Shares Subject | ||||
Expiration Date/Exercise Price | to Call | ||||
Lexmark International Inc. * | 10,000 | 22,500 | |||
October 2007 Calls @ 40.00 | |||||
Polycom, Inc. * | 10,000 | 26,000 | |||
October 2007 Calls @ 25.00 | |||||
Qiao Xing Mobile Communication Co., Ltd. * ** | 40,000 | 24,000 | |||
October 2007 Calls @ 10.00 | |||||
Total (Premiums Paid - $79,385) | 72,500 | 0.32% | |||
Cash and Equivalents | |||||
4,625,714 | Fidelity Governmental Fund 57 5.14% *** | 4,625,714 | 20.84% | ||
(Cost $4,625,714) | |||||
Total Investments Securities | 21,175,246 | 95.42% | |||
(Cost $22,133,875) | |||||
| Other Assets In Excess of Liabilities | 1,016,024 | 4.58% | ||
| |||||
Net Assets | $ 22,191,270 | 100.00% |
*Non-Income Producing Securities.
**ADR - American Depository Receipt.
*** Variable Rate Security; The Yield Rate shown represents
the rate at September 30, 2007.
The accompanying notes are an integral part of the financial
statements.
2007 Semi-Annual Report 6
Birmiwal Oasis Fund |
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Schedule of Securities Sold Short | |||||
September 30, 2007 (Unaudited) | |||||
Shares/Principal Amount |
| Market Value |
|
| |
COMMON STOCKS | |||||
Crude Petroleum & Natural Gasr | |||||
1,000 | CNOOC Ltd. ** | $ 166,430 | |||
Fabricated Plate Work (Boiler Shops) | |||||
6,000 | McDermott International Inc. * | 324,480 | |||
Hotels & Motels | |||||
1,000 | Las Vegas Sands Corp. * | 133,420 | |||
Oil & Gas Field Machinery & Equipment | |||||
2,000 | National Oilwell Varco, Incorporated * | 289,000 | |||
EXCHANGE TRADED FUNDS | |||||
1,000 | S&P Depository Receipts | 152,580 | |||
Total for Securities Sold Short (Proceeds $966,682) | $ 1,065,910 |
*Non-Income Producing Securities.
**ADR - American Depository Receipt.
The accompanying notes are an integral part of the financial
statements.
2007 Semi-Annual Report 7
Birmiwal Oasis Fund
|
|
Statement of Assets and Liabilities (Unaudited) | |
September 30, 2007 | |
Assets: | |
Investment Securities at Market Value | $ 21,175,246 |
(Identified Cost - $22,133,875) | |
Deposit at Brokers | 911,356 |
Receivables: | |
Dividends and Interest | 39,301 |
Receivable for Securities Sold | 3,373,027 |
Total Assets | 25,498,930 |
Liabilities | |
Securities Sold Short, at Market Value (Proceeds - $966,682) | 1,065,910 |
Payable For Securities Purchased | 2,164,232 |
Management Fees Payable | |
Base Management Fee Payable to Adviser | 47,151 |
Performance Adjustment Payable to Adviser | 30,367 |
Total Liabilities | 3,307,660 |
Net Assets | $ 22,191,270 |
Net Assets Consist of: | |
Paid In Capital | 18,179,272 |
Accumulated Net Investment Loss | (265,654) |
Realized Gain on Investments - Net | 5,335,509 |
Unrealized Depreciation in Value | (1,057,857) |
of Investments Based on Identified Cost - Net |
|
Net Assets, for 612,041 Shares Outstanding | $ 22,191,270 |
(Unlimited number of shares authorized) | |
Net Asset Value, Offering and Redemption Price | |
Per Share ($22,191,270/612,041 shares) | $ 36.26 |
Statement of Operations (Unaudited) | |
For the six months ended September 30, 2007 | |
Investment Income: | |
Dividends (Net of foreign withholding tax of $930) | $ 36,123 |
Interest | 160,495 |
Total Investment Income | 196,618 |
Expenses: (Note 3) | |
Management Fees | |
Base Management Fees | 305,639 |
Performance Adjustment | 156,633 |
Total Expenses | 462,272 |
Net Investment Loss | (265,654) |
Realized and Unrealized Gain (Loss) on Investments: | |
Net Realized Gain on Investments | 2,376,978 |
Net Realized Loss on Securities Sold Short | (4,982) |
Net Realized Loss on Options Purchased | (26,973) |
Net Realized Gain on Options Written | 247,168 |
Net Change In Unrealized Depreciation on Investments | 46,493 |
Net Change In Unrealized Depreciation on Investments Sold Short | (92,448) |
Net Change In Unrealized Appreciation/Depreciation on Options Purchased | (15,619) |
Net Realized and Unrealized Gain on Investments, Investments | |
Sold Short, Options & Options Written | 2,530,617 |
Net Increase in Net Assets from Operations | $ 2,264,963 |
The accompanying notes are an integral part of the
financial statements.
2007 Semi-Annual Report 8
Birmiwal Oasis Fund |
|
| ||||
Statement of Changes in Net Assets | (Unaudited) | |||||
4/1/2007 | 4/1/2006 | |||||
to | to | |||||
9/30/2007 | 3/31/2007 | |||||
From Operations: | ||||||
Net Investment Loss | $ (265,654) | $ (627,049) | ||||
Net Realized Gain on Investments, Short Sales, Options and Written Options | 2,592,191 | 6,617,148 | ||||
Net Change In Unrealized Appreciation (Depreciation) | (61,574) | (2,319,048) | ||||
Increase in Net Assets from Operations | 2,264,963 | 3,671,051 | ||||
From Distributions to Shareholders: | ||||||
Net Investment Income | 0 | 0 | ||||
Net Realized Gain from Security Transactions | 0 | (5,655,993) | ||||
Change in Net Assets from Distributions | 0 | (5,655,993) | ||||
From Capital Share Transactions: | ||||||
Proceeds From Sale of Shares | 172,556 | 1,855,974 | ||||
Shares Issued on Reinvestment of Dividends | 0 | 5,655,993 | ||||
Cost of Shares Redeemed | (538,095) | (1,561,204) | ||||
Net Increase from Shareholder Activity | (365,539) | 5,950,763 | ||||
Net Increase in Net Assets | 1,899,424 | 3,965,821 | ||||
Net Assets at Beginning of Period | 20,291,846 | 16,326,025 | ||||
Net Assets at End of Period (including accumulated | $22,191,270 | $20,291,846 | ||||
undistributed net investment income (loss) of ($265,654) and $0, respectively) | ||||||
| ||||||
Share Transactions: | ||||||
Issued | 5,107 | 51,072 | ||||
Reinvested | - | 178,930 | ||||
Redeemed | (16,325) | (45,727) | ||||
Net Increase/Decrease in Shares | (11,218) | 184,275 | ||||
Shares Outstanding Beginning of Period | 623,259 | 438,984 | ||||
Shares Outstanding End of Period | 612,041 | 623,259 |
Financial Highlights | (Unaudited) | ||||||||
Selected data for a share outstanding | 4/1/2007 | 4/1/2006 | 4/1/2005 | 4/1/2004 | 4/1/2003 ** | ||||
throughout the period: | to | to | to | to | to | ||||
9/30/2007 | 3/31/2007 | 3/31/2006 | 3/31/2005 | 3/31/2004 | |||||
Net Asset Value - | |||||||||
Beginning of Period | $ 32.56 | $ 37.19 | $ 29.34 | $ 35.65 | $ 20.00 | ||||
Net Investment Income/(Loss)*** | (0.43) | (1.27) | (1.18) | (1.03) | (0.43) | ||||
Net Gains or Losses on Securities | |||||||||
(realized and unrealized) | 4.13 | 9.26 | 18.15 | 2.86 | 24.15 | ||||
Total from Investment Operations | 3.70 | 7.99 | 16.97 | 1.83 | 23.72 | ||||
Distributions (From Net Investment Income) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||
Distributions (From Capital Gains) | 0.00 | (12.62) | (9.12) | (8.14) | (8.07) | ||||
Total Distributions | 0.00 | (12.62) | (9.12) | (8.14) | (8.07) | ||||
Net Asset Value - | |||||||||
End of Period | $ 36.26 | $ 32.56 | $ 37.19 | $ 29.34 | $ 35.65 | ||||
Total Return (a) | 11.36% | 22.51% | 63.83% | 9.99% | 126.90% | ||||
Ratios/Supplemental Data | |||||||||
Net Assets - End of Period (Thousands) | 22,191 | 20,292 | 16,326 | 8,077 | 6,898 | ||||
Before Waivers | |||||||||
Ratio of Expenses to Average Net Assets | 4.38% | * | 4.85% | 4.70% | 4.26% | 2.90% | |||
Ratio of Net Investment Loss to Average Net Assets | -2.52% | * | -3.46% | -3.50% | -3.72% | -2.68% | |||
After Waivers | |||||||||
Ratio of Expenses to Average Net Assets | 4.38% | * | 4.85% | 4.70% | 4.26% | 1.50% | |||
Ratio of Net Investment Loss to Average Net Assets | -2.52% | * | -3.46% | -3.50% | -3.72% | -1.28% | |||
Portfolio Turnover Rate | 436.87% | 688.12% | 637.98% | 1050.35% | 1015.55% | ||||
* Annualized. | |||||||||
** Commencement of Operations. | |||||||||
*** Per share amounts were calculated using the average shares method. | |||||||||
(a) Total return in the above table represents the rate that the investor would | |||||||||
have earned or lost on an investment in the Fund assuming reinvestment of all | |||||||||
Fund distributions. |
The accompanying notes are an integral part of the
financial statements.
2007 Semi-Annual Report 9
NOTES TO THE FINANCIAL STATEMENT
BIRMIWAL OASIS FUND
September 30, 2007
(UNAUDITED)
1.) ORGANIZATION
Birmiwal Oasis Fund (the "Fund") is a non-diversified series of the Birmiwal Investment Trust (the "Trust"), an open-end investment company that commenced operations on April 1, 2003. The Trust was organized in Ohio as a business trust on January 3, 2003. The Trust may offer shares of beneficial interest in a number of separate series, each series representing a distinct fund with its own investment objectives and policies. At present, there is only one series authorized by the Trust. Birmiwal Asset Management, Inc. is the adviser to the Fund (the "Adviser"). As of the close of business on January 30, 2006, the Fund closed to new investors and would not take additional purchases from existing investors, except shareholders of record on January 30, 2006 were able to continue to add to their existing accounts only through the reinvestment of dividends and/or capital gain distributions from shares owned, and t rustees of the Fund, as well as directors, officers and employees of the Adviser, were permitted to continue to open new accounts and make additional purchases in existing accounts. As of August 1, 2006, the Fund has revised its policies with respect to permitted investments in the Fund to reflect the following: The Fund remained closed to new investors except for non-profit organizations. Existing shareholders can purchase additional shares either by making new investments in their existing account(s) and/or by opening new account(s). The total of such new investments will be limited to a maximum of $25,000 per calendar year per taxpayer identification number/social security number. Existing shareholders may also continue to add to their existing accounts through the reinvestment of dividends and/or capital gain distributions from shares owned and may continue to participate in the Automatic Investment Plan (AIP). Non-profit organizations qualifying under Section 501(c)(3) of the Internal Revenue Code can o pen new accounts subject to a maximum investment limit of $25,000 per calendar year per taxpayer identification number. Trustees of the Fund, as well as directors, officers and employees of the Adviser, may continue to open new accounts and make additional purchases in existing accounts. The Fund’s primary investment objective is to seek capital apreciation. Significant accounting policies of the Fund are presented below:
2.) SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION: Securities that are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the-counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees.
Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. If the Adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees. Short term investments in fixed inco me securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board of Trustees has determined will represent fair value.
In accordance with the Trust’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard for determining fair value controls, since fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.
2007 Semi-Annual Report 10
Notes to the Financial Statements (Unaudited) - continued
Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.
In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157 "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of September 30, 2007, the Fund does not believe that the adoption of SFAS No. 157 will impact the amounts reported in th e financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements reported on the statement of changes in net assets for a fiscal period.
SHORT SALES: The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale.
OPTION WRITING: When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or a loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.
FEDERAL INCOME TAXES: The Fund’s policy is to continue to comply with the requirements of Subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. It is the Fund's policy to distribute annually, prior to the end of the calendar year, dividends sufficient to satisfy excise tax requirements of the Internal Revenue Service. This Internal Revenue Service requirement may cause an excess of distributions over the book year-end accumulated income. In addition, it is the Fund's policy to distribute annually, after the end of the fiscal year, any remaining net investment income and net realized capital gains.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 - Accounting for Uncertainty in Income Taxes, that requires the tax effects of certain tax positions to be recognized. These tax positions must meet a “more likely than not” standard that based on their technical merits, these positions have a more than 50 percent likelihood of being sustained upon examination. FASB Interpretation No. 48 is effective for fiscal periods beginning after December 15, 2006. At adoption, the financial statements must be adjusted to reflect only those tax positions that are more likely than not of being sustained. Management of the Fund has evaluated its current tax positions and does not believe the adoption of FIN 48 has an impact on the finacial statements.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.
The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense, or realized capital gain for federal income
2007 Semi-Annual Report 11
Notes to the Financial Statements (Unaudited) - continued
tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, result of operations, or net asset values per share of the Fund.
USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
OTHER: The Fund records security transactions based on a trade date. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
3.) INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an Investment Advisory Agreement with Birmiwal Asset Management, Inc. (the "Adviser"). Under the terms of the Investment Advisory Agreement, the Adviser manages the investment portfolio of the Fund, subject to policies adopted by the Trust’s Board of Trustees. Under the Investment Advisory Agreement, the Adviser, at its own expense and without reimbursement from the Trust, furnishes office space and all necessary office facilities, equipment and executive personnel necessary for managing the assets of the Fund. The Adviser also pays the salaries and fees of all of its officers and employees that serve as officers and trustees of the Trust. The Adviser pays all operating expenses of the Fund, with the exception of taxes, borrowing expenses (such as (i) interest and (ii) dividend expenses on securities sold short), brokerage commissions, indirect expenses (such as the expenses of other investment compani es in which the Fund may invest) and extraordinary expenses.
For its services and its agreement to pay the Fund’s operating expenses, the Adviser receives an annual variable performance-based management fee comprised of a base rate of 2.90% of the Fund's average daily net assets and a performance adjustment, which is in accordance with a rate schedule. The performance adjustment increases or decreases the fee paid by the Fund to the Adviser based on the Fund's performance relative to the S&P 500 Index over the most recent 12-month period. If the Fund's return for the period is within 2.00% (two percentage points) of the return on the S&P 500 Index, no adjustment is made. If the difference between the performance of the Fund and the S&P 500 Index exceeds 2.00% (two percentage points), the performance adjustment is made at a rate that varies linearly with the difference between the Fund's performance and that of the S&P 500 Index. The resulting performance adjustment rate can be as high as 2.40% if the Fund outperforms the S&P 500 Index by 14% (fourteen percentage points) or more, and as low as -2.40% if the Fund underperforms the S&P 500 Index by 14% (fourteen percentage points) or more.
For the six months ended September 30, 2007, the Adviser earned base management fees totaling $305,639 and performance-based management fees totaling $156,633. At September 30, 2007, the Fund owed the Adviser management fees in the amount of $77,518, which consisted of base management fees of $47,151 and performance-based management fees of $30,367.
4.) APPROVAL OF INVESTMENT ADVISORY AGREEMENT
On May 5, 2007, the Board of Trustees (the “Trustees” or the “Board”) for the Birmiwal Oasis Fund met to consider the renewal of the Management Agreement (the “Agreement”). In reviewing the Agreement, the Board of Trustees addressed the following factors: (i) the investment performance of the Fund and the Adviser; (ii) the nature, extent and quality of the services provided by the Adviser to the Fund; (iii) the cost of the services to be provided and the profits to be realized by the Adviser and its affiliates from the relationship with the Fund; (iv) the extent to which economies of scale will be realized as the fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of shareholders.
In determining whether to renew the Agreement, the Board met with Mr. Birmiwal, President of the Adviser, to discuss the terms of the Agreement. He reviewed and discussed with the Trustees his personal history, including background and investment management experience. He also discussed
2007 Semi-Annual Report 12
Notes to the Financial Statements (Unaudited) - continued
with the Board the Fund's performance for the last fiscal year, important factors relating to the Fund's performance, the Adviser's investment and research strategy, the Adviser's financial strength, and expected expenses and revenue from the Fund. Mr. Birmiwal provided the Board with a current balance sheet from the bank with the Adviser's current financial standing and stated that the Adviser had sufficient funds available to meet its obligations to the Fund.
The Board gave careful consideration to factors deemed relevant to the Trust and the Fund. As to the nature, extent and quality of the services to be provided by the Adviser, and the performance of the Fund since commencement of operations, the Board noted that the Fund significantly outperformed its benchmark index, the S&P 500, for the fiscal year ended March 31, 2007, by providing a return of 22.51% as compared to 11.83% for the S&P 500 for the same period. The Board also reviewed comparative performance from the inception of the Fund through March 31, 2007, noting that the Fund continued to significantly outperform its benchmark index. The Board felt that the superior returns provided strong evidence of the superior quality of the advisory services provided by the Adviser.
As to the costs of the services to be provided, the Board reviewed information regarding comparable fee structures and acknowledged that the Fund's base management fee rate (which includes paying substantially all operating expenses of the Fund) and total annual operating expenses were significantly higher than the management fees and expense ratio paid by 31 other funds of comparable size and with similar investment objectives. However, the Trustees acknowledged that the Adviser spends a substantial amount of time managing the Fund and noted that the Fund's superior performance after deduction of the performance fee more than justified the higher fee expenses. In addition, the Trustees noted that Mr. Birmiwal bears a risk of loss under the performance fee arrangement. Under the Management Agreement, poor Fund performance will result in a reduction of the management fee, with a maximum downward adjustment of 2.40% from the base fee of 2.90%. The Board concluded that this fee arrangement aligns Mr. Birmiwal's interest with those of the shareholders. The Trustees therefore concluded that the fee structure under the current Management Agreement, including performance-based adjustments, is reasonable.
As to the profits to be realized by the Adviser under the Management Agreement, the extent to which economies of scale may be realized as the Fund grows, and whether the fee levels reflect these economies of scale for the benefit of the Fund investors, the Board noted that the Adviser has made a substantial investment in the Fund. The Trustees acknowledged that the fee under the current management agreement does not provide investors with an opportunity to realize the benefits of economies of scale as the Fund grows. However, the Trustees also noted that the management fee is structured so that investors pay a fee that varies directly with the performance of the Fund. Investors will pay a higher fee if the Fund outperforms its benchmark index and a lower fee if the Fund underperforms its benchmark index. In addition, given the relative small asset base of the Fund, they did not think it necessary to consider adding break points at this time.
The independent Trustees then met in executive session with legal counsel. The Board felt that the superior returns provided strong evidence of the superior quality of the advisory services provided by the Adviser. The Board also determined that continuity and efficiency of portfolio investment advisory services could best be assured by approving the continuance of the Management Agreement.
Based upon the information provided, it was the Board's consensus (including a majority of the independent Trustees) that the fee to be paid to the Adviser pursuant to the Agreement was reasonable, that the overall arrangement provided under the terms of the Agreement was a reasonable business arrangement, and that the approval of the Agreement was in the best interest of the Fund's shareholders.
5.) RELATED PARTY TRANSACTIONS
Kailash Birmiwal, Ph.D. is the control person of the Adviser and also serves as a trustee/officer of the Fund. This individual receives benefits from the Adviser resulting from management fees paid to the Adviser by the Fund.
The Trustees who are not interested persons of the Fund were paid a total of $0 in Trustee fees for the six months ended September 30, 2007. Pursuant to the Investment Advisory Agreement, these fees are paid by the Adviser.
2007 Semi-Annual Report 13
Notes to the Financial Statements (Unaudited) - continued
6.) CAPITAL STOCK
The Trust is authorized to issue an unlimited number of shares. Paid in capital at September 30, 2007 was $18,179,272 representing 612,041 shares outstanding.
7.) INVESTMENT TRANSACTIONS
For the six months ended September 30, 2007, purchases and sales of investment securities other than U.S. Government obligations and short-term investments aggregated $61,605,800 and $59,803,845, respectively. Purchases and sales of U.S. Government obligations aggregated $0 and $0, respectively.
For federal income tax purposes, the cost of total investment securities owned at September 30, 2007 was $22,133,875 and proceeds from short positions amounted to $966,682. At September 30, 2007, the composition of unrealized appreciation (the excess of value over tax cost) and depreciation (the excess of tax cost over value), was as follows:
Appreciation (Depreciation) Net Appreciation (Depreciation)
$1,659,964 ($2,717,801) ($1,057,837)
8.) CONTROL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of September 30, 2007, Kailash Birmiwal, Ph. D., the control person of the Adviser, held, in aggregate, approximately 66% of the Fund.
9.) WRITTEN OPTIONS
Transactions in written options during the six month period ended September 30, 2007 were as follows:
Number of
Premiums
Contracts
Received
Options outstanding at March 31, 2007
0
$0
Options written
3,920 $1,113,870
Options terminated in closing purchase transactions
(2,990) ($945,842)
Options expired
0
$0
Options exercised
(930) ($168,028)
Options outstanding at September 30, 2007
0
$0
10.) DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the six months ended September 30, 2007 and the fiscal year ended March 31, 2007 were as follows:
Distributions paid from:
Six Months ended Year ended
September 30, 2007 March 31, 2007
Ordinary Income:
$ 0 $ 0
Short-term Capital Gain
0
5,361,998
Long-term Capital Gain
0
293,995
$ 0
$ 5,655,993
2007 Semi-Annual Report 14
Board of Trustees
Kailash Birmiwal, Ph. D.
Rajendra K. Bordia, Ph. D.
Hemant K. Gupta, Ph. D.
Veera S. Karukonda
Bal K. Sharma, Dr.
Investment Adviser
Birmiwal Asset Management, Inc.
24140 E. Greystone Lane
Woodway, WA 98020
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services, LLC
8000 Town Centre Dr., Ste 400
Broadview Hts, OH 44147
Custodian
U.S. Bank, NA
425 Walnut Street
P.O. Box 1118
Cincinnati, OH 45201
Fund Administrator
Premier Fund Solutions Inc.
480 N. Magnolia Avenue, Suite 103
El Cajon, CA 92020
Legal Counsel
Thompson Hine LLP
312 Walnut Street, 14th Floor
Cincinnati, OH 45202
Independent Registered Public
Accounting Firm
Cohen Fund Audit Services, Ltd.
800 Westpoint Pkwy., Ste 1100
Westlake, OH 44145-1594
This report is provided for the general information of the shareholders of the Birmiwal Oasis Fund. This report is not intended for distribution to prospective investors in the funds, unless preceded or accompanied by an effective prospectus.
Birmiwal Oasis Fund
24140 E. Greystone Lane
Woodway, WA 98020
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable.
Item 6. Schedule of Investments. Not applicable. Schedule filed with Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable.
Item 8. Portfolio Managers of Closed End Funds. Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers. Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
(a)
The Registrant’s president and chief financial officer concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) were effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act.
(b)
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1)
Code of Ethics. Not applicable.
(a)(2)
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
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.
Birmiwal Investment Trust
By: /s/ Kailash Birmiwal
Kailash Birmiwal
President
Date: 12-7-07
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/ Kailash Birmiwal
Kailash Birmiwal
President
Date: 12-7-07
By: /s/ Kailash Birmiwal
Kailash Birmiwal
Chief Financial Officer
Date: 12-7-07