OMB APPROVAL
OMB Number: 3235-0570
Expires: Nov. 30, 2005
Estimated average burden
hours per response: 5.0
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 811-08228
Timothy Plan
(Exact name of registrant as specified in charter)
1304 W. Fairbanks Ave. Winter Park, FL 32789
(Address of principal executive offices) (Zip code)
Arthur Ally
(Name and address of agent for service)
Registrant’s telephone number, including area code: (407) 644-1986
Date of fiscal year end: 12/31
Date of reporting period: 06/30/2003
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. REPORT TO STOCKHOLDERS
[GRAPHIC OF THE TIMOTHY PLAN]
Semi-
Annual Report
June 30, 2003
Timothy Plan
Strategic Growth Portfolio Variable Series
Timothy Plan
Conservative Growth Portfolio Variable Series
LETTER FROM THE PRESIDENT
June 30, 2003
ARTHUR D. ALLY
Dear Timothy Plan Shareholder:
Stock market history clearly demonstrates that stock prices tend to move in both directions — up and down — over time. In the 1990’s, investors became erroneously convinced that “things were different now” and the consensus seemed to be that, henceforth, prices were only going to go up. Well, the latter part of 1999 through the first quarter of 2003 exposed the fallacy of that theory and replaced it with the reverse “things are different now” and, henceforth, prices are only gong to go down. For a while there, it appeared that they might have a valid point.
I am pleased to report, however, that overall market performance in the second quarter of 2003 demonstrated the error of that theory. While there can be no guarantee of investment success in the capital markets, our experience has shown that patient investors, the ones that stay the course as opposed to trying to out-guess the market, generally have fared very well over complete market cycles.
I would also like to remind you that it is not so much a stock market as it is a market of stocks. That is why we put so much time and effort into selecting and retaining firms that we believe to be top-tier sub-advisors to manage our various funds. Each of our sub-advisors has demonstrated, through their long-term performance histories, that they know what they are doing. Of course, performance, both actual and relative, will fluctuate but we have the utmost confidence in each and every one of our money managers.
Although earning competitive returns is a valid objective of every shareholder of every mutual fund, Timothy Plan shareholders have another (hopefully) more compelling concern and objective — investing the resources our Lord has entrusted into their care in a morally responsible manner. The question has always been, “Can you do both?” While there is no precise answer to that question, each of our sub-advisors will unequivocally state that there is little or no penalty for applying our moral screens to their investment selection process.
In closing, I believe you will be pleased with the increased market value reflected on your June 30, 2003 quarterly statement. As indicated above, no one can guarantee investment performance but it is our belief that we are now in the early stages of a very nice market recovery. Thanks for your faithfulness.
Sincerely,
/S/ ARTHUR D. ALLY
Arthur D. Ally,
President
SCHEDULE OF INVESTMENTS
As of June 30, 2003 (Unaudited)
Timothy Plan Conservative Growth Portfolio Variable Series
MUTUAL FUNDS—94.85%
number of shares | market value | ||||
58,412 | Timothy Fixed Income Fund – Class A | $ | 622,668 | ||
82,368 | Timothy Large Mid Cap Growth Fund – Class A | 450,555 | |||
61,810 | Timothy Large Mid Cap Value Fund – Class A | 624,285 | |||
228,120 | Timothy Plan Money Market Fund | 228,120 | |||
27,663 | Timothy Small Cap Value Fund – Class A | 340,254 | |||
Total Mutual Funds (cost $2,250,493) | $ | 2,265,882 | |||
SHORT TERM INVESTMENTS – 0.68%
number of shares | market value | ||||
16,264 | Federated Cash Trust Series II Treasury Fund | $ | 16,264 | ||
Total Short Term Investments (cost $16,264) | 16,264 | ||||
Total Investments – 95.53% (identified cost $2,266,757) | $ | 2,282,146 | |||
OTHER ASSETS AND LIABILITIES, NET – 4.47% | 106,807 | ||||
Net Assets – 100.00% | $ | 2,388,953 | |||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2003 (Unaudited)
Timothy Plan Conservative Growth Portfolio Variable Series
ASSETS
amount | |||
Investments in Securities at Value (identified cost $2,266,757) [NOTE 1] | $ | 2,282,146 | |
Receivables: | |||
Fund Shares Sold | 110,638 | ||
Interest | 43 | ||
Total Assets | 2,392,827 | ||
LIABILITIES
amount | ||
Accrued Expenses | 3,874 | |
Total Liabilities | 3,874 | |
NET ASSETS
amount | |||
Net Assets | $ | 2,388,953 | |
SOURCES OF NET ASSETS
amount | ||||
At June 30, 2003, Net Assets Consisted of: | ||||
Paid-in Capital | $ | 2,378,810 | ||
Undistributed Net Investment Loss | (972 | ) | ||
Undistributed Net Realized Loss | (4,274 | ) | ||
5Net Unrealized Appreciation in Value of Investments | 15,389 | |||
Net Assets | $ | 2,388,953 | ||
Shares of Capital Stock Outstanding (No Par Value, Unlimited Shares Authorized) | 248,889 | |||
Net Asset Value, Offering and Redemption Price Per Share ($2,388,953 / 248,889 Shares) | $ | 9.60 | ||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2003 (Unaudited)
Timothy Plan Conservative Growth Portfolio Variable Series
INVESTMENT INCOME
amount | |||
Interest | $ | 366 | |
Dividends | 4,538 | ||
Total Investment Income | 4,904 | ||
EXPENSES
amount | |||
Investment Advisory Fees [Note 3] | 2,925 | ||
Fund Accounting, Transfer Agency, & Administration Fees | 1,438 | ||
Custodian Fees | 1,500 | ||
Participation Fees | 2,146 | ||
Printing Fees | 575 | ||
Audit Fees | 575 | ||
Legal Fees | 187 | ||
Miscellaneous Expense | 315 | ||
Total Expenses | 9,661 | ||
Expenses Waived by Advisor [Note 3] | (2,363 | ) | |
Total Net Expenses | 7,298 | ||
Net Investment Income (Loss) | (2,394 | ) | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
amount | ||||
Net Realized Gain (Loss) on Investments | (2,775 | ) | ||
Change in Unrealized Appreciation (Depreciation) of Investments | 123,392 | |||
Net Realized and Unrealized Gain (Loss) on Investments | 120,617 | |||
Increase (Decrease) in Net Assets Resulting from Operations | $ | 118,223 | ||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN NET ASSETS
As of June 30, 2003 (Unaudited)
Timothy Plan Conservative Growth Portfolio Variable Series
INCREASE (DECREASE) IN NET ASSETS
six months ended 6/30/03 (unaudited) | year ended 12/31/02 (A) | |||||||
Operations: | ||||||||
Net Investment Income (Loss) | $ | (2,394 | ) | $ | 6,045 | |||
Net Realized Gain (Loss) on Investments | (2,775 | ) | (1,732 | ) | ||||
Capital gain distributions from other investment companies | — | 553 | ||||||
Net Change in Unrealized Appreciation (Depreciation) of Investments | 123,392 | (108,003 | ) | |||||
Increase in Net Assets (resulting from operations) | 118,223 | (103,137 | ) | |||||
Distributions to Shareholders: | ||||||||
Net Income | — | (4,622 | ) | |||||
Net Realized Gains | — | (321 | ) | |||||
Total Distributions to Shareholders | — | (4,943 | ) | |||||
Capital Share Transactions: | ||||||||
Proceeds from Shares Sold | 956,322 | 2,114,970 | ||||||
Dividends Reinvested | — | 4,944 | ||||||
Cost of Shares Redeemed | (190,875 | ) | (506,551 | ) | ||||
Increase (Decrease) in Net Assets (resulting from capital share transactions) | 765,447 | 1,613,363 | ||||||
Total Increase in Net Assets | 883,670 | 1,505,283 | ||||||
Net Assets: | ||||||||
Beginning of Period | 1,505,283 | — | ||||||
End of Period [Including undistributed net investment income of $0, $2,627] | $ | 2,388,953 | $ | 1,505,283 | ||||
Shares of Capital Stock of the Fund Sold and Redeemed: | ||||||||
Shares Sold | 102,827 | 219,877 | ||||||
Shares Reinvested | — | 551 | ||||||
Shares Redeemed | (21,749 | ) | (52,617 | ) | ||||
Net Increase (Decrease) in Number of Shares Outstanding | 81,078 | 167,811 | ||||||
(A) | For the period May 10, 2002 (commencement of operations) to June 30, 2002. |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.
Timothy Plan Conservative Growth Portfolio Variable Series
six months ended 6/30/03 (unaudited) | period ended 12/31/02 (C) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning of Period | $ | 8.97 | $ | 10.00 | ||||
Income from Investment Operations: | ||||||||
Net Investment Income (Loss) | (0.01 | ) | 0.07 | |||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.64 | (1.07 | ) | |||||
Total from Investment Operations | 0.63 | (1.00 | ) | |||||
Less Distributions: | ||||||||
Dividends from Net Investment Income (Loss) | — | (0.03 | ) | |||||
Dividends from Realized Gains | — | — | ||||||
Total Distributions | — | (0.03 | ) | |||||
Net Asset Value at End of Period | $ | 9.60 | $ | 8.97 | ||||
Total Return (A) | 7.02 | % | (10.00 | )% | ||||
Ratios/Supplimental Data: | ||||||||
Net Assets, End of Period (in 000s) | $ | 2,389 | $ | 1,505 | ||||
Ratio of Expenses to Average Net Assets: | ||||||||
Before Reimbursement and Waiver of Expenses by Advisor | 1.13 | %(B) | 3.09 | %(B) | ||||
After Reimbursement and Waiver of Expenses by Advisor | 0.85 | %(B) | 0.85 | %(B) | ||||
Ratio of Net Investment Income (Loss) to Average Net Assets: | ||||||||
Before Reimbursement and Waiver of Expenses by Advisor | (0.55 | )%(B) | (1.45 | ) (B) | ||||
After Reimbursement and Waiver of Expenses by Advisor | (0.27 | )%(B) | 0.79 | %(B) | ||||
Portfolio Turnover | 2.94 | % | 6.48 | % |
(A) | For Periods of Less Than One Full Year, Total Returns Are Not Annualized. |
(B) | Annualized. |
(C) | For the period May 10, 2002 (commencement of operations) to June 30, 2002. |
The accompanying notes are an integral part of these financial statements.
SCHEDULE OF INVESTMENTS
As of June 30, 2003 (Unaudited)
Timothy Plan Strategic Growth Portfolio Variable Series
MUTUAL FUNDS – 98.76%
number of shares | market value | ||||
75,651 | Timothy Aggressive Growth – Class A | $ | 413,813 | ||
21,668 | Timothy Fixed Income – Class A | 230,977 | |||
138,726 | Timothy Large Mid Cap Growth – Class A | 758,832 | |||
52,473 | Timothy Large Mid Cap Value – Class A | 529,980 | |||
33,373 | Timothy Small Cap Value – Class A | 410,483 | |||
Total Mutual Funds (cost $2,240,072) | $ | 2,344,085 | |||
SHORT TERM INVESTMENTS – 0.75% | |||||
number of shares | market value | ||||
2,596 | Federated Cash Trust Series II Treasury Fund | $ | 2,596 | ||
15,140 | First American Treasury Obligation Fund, Class S | $ | 15,140 | ||
Total Short Term Investments (cost $17,736) | 17,736 | ||||
Total Investments – 99.51% (identified cost $2,257,808) | $ | 2,361,821 | |||
OTHER ASSETS AND LIABILITIES, NET – 0.49% | 11,635 | ||||
Net Assets – 100.00% | $ | 2,373,456 | |||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2003 (Unaudited)
Timothy Plan Strategic Growth Portfolio Variable Series
ASSETS
amount | |||
Investments in Securities at Value (identified cost $2,257,808) [NOTE 1] | $ | 2,361,821 | |
Receivables: | |||
Fund Shares Sold | 16,633 | ||
Interest | 20 | ||
Total Assets | 2,378,474 | ||
LIABILITIES
amount | ||
Payable for Fund Shares Redeemed | 1,069 | |
Accrued Expenses | 3,949 | |
Total Liabilities | 5,018 | |
NET ASSETS
amount | |||
Net Assets | $ | 2,373,456 | |
SOURCES OF NET ASSETS
amount | ||||
At June 30, 2003, Net Assets Consisted of: | ||||
Paid-in Capital | $ | 2,303,013 | ||
Accumulated Undistributed Net Investment Loss | (4,884 | ) | ||
Accumulated Net Realized Loss on Investments | (28,686 | ) | ||
Net Unrealized Appreciation in Value of Investments | 104,013 | |||
Net Assets | $ | 2,373,456 | ||
Shares of Capital Stock Outstanding (No Par Value, Unlimited Shares Authorized) | 261,770 | |||
Net Asset Value, Offering and Redemption Price Per Share ($2,373,456 / 261,770 Shares) | $ | 9.07 | ||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2003 (Unaudited)
Timothy Plan Strategic Growth Portfolio Variable Series
INVESTMENT INCOME
amount | |||
Interest | $ | 100 | |
Dividends | 1,485 | ||
Total Investment Income | 1,585 | ||
EXPENSES
amount | |||
Investment Advisory Fees [Note 3] | 2,722 | ||
Fund Accounting, Transfer Agency, & Administration Fees | 1,111 | ||
Custodian Fees | 1,500 | ||
Participation Fees | 1,901 | ||
Printing Fees | 419 | ||
Audit Fees | 585 | ||
Legal Expense | 199 | ||
Miscellaneous Expense | 224 | ||
Total Expenses | 8,661 | ||
Expenses Waived by Advisor [Note 3] | (2,192 | ) | |
Total Net Expenses | 6,469 | ||
Net Investment Income (Loss) | (4,884 | ) | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
amount | ||||
Net Realized Loss on Investments | (28,928 | ) | ||
Change in Unrealized Appreciation (Depreciation) of Investments | 184,047 | |||
Net Realized and Unrealized Gain (Loss) on Investments | 155,119 | |||
Increase (Decrease) in Net Assets Resulting from Operations | $ | 150,235 | ||
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN NET ASSETS
As of June 30, 2003 (Unaudited)
Timothy Plan Conservative Growth Portfolio Variable Series
INCREASE (DECREASE) IN NET ASSETS
six months ended 6/30/03 (unaudited) | year ended 12/31/02 (A) | |||||||
Operations: | ||||||||
Net Investment Income (Loss) | $ | (4,884 | ) | $ | (1,038 | ) | ||
Net Realized Loss on Investments | (28,928 | ) | 242 | |||||
Net Change in Unrealized Appreciation (Depreciation) of Investments | 184,047 | (80,034 | ) | |||||
Increase in Net Assets (resulting from operations) | 150,235 | (80,830 | ) | |||||
Distributions to Shareholders: | ||||||||
Net Income | — | — | ||||||
Net Realized Gains | — | — | ||||||
Total Distributions to Shareholders | — | — | ||||||
Capital Share Transactions: | ||||||||
Proceeds from Shares Sold | 1,134,006 | 1,440,046 | ||||||
Dividends Reinvested | — | — | ||||||
Cost of Shares Redeemed | (247,933 | ) | (22,068 | ) | ||||
Increase (Decrease) in Net Assets (resulting from capital share transactions) | 886,073 | 1,417,978 | ||||||
Total Increase in Net Assets | 1,036,308 | 1,337,148 | ||||||
Net Assets: | ||||||||
Beginning of Period | 1,337,148 | — | ||||||
End of Period [Including undistributed net investment income of $0, $124] | $ | 2,373,456 | $ | 1,337,148 | ||||
Shares of Capital Stock of the Fund Sold and Redeemed: | ||||||||
Shares Sold | 130,078 | 164,517 | ||||||
Shares Reinvested | — | — | ||||||
Shares Redeemed | (30,348 | ) | (2,477 | ) | ||||
Net Increase (Decrease) in Number of Shares Outstanding | 99,730 | 162,040 | ||||||
(A) | For the period May 13, 2002 (commencement of operations) to June 30, 2002. |
The accompanying notes are an integral part of these finanical statements.
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.
Timothy Plan Strategic Growth Portfolio Variable Series
six months ended 6/30/03 (unaudited) | period ended 12/31/02 (C) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning of Period | $ | 8.25 | $ | 10.00 | ||||
Income from Investment Operations: | ||||||||
Net Investment Income (Loss) | (0.03 | ) | (0.01 | ) | ||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.85 | (1.74 | ) | |||||
Total from Investment Operations | 0.82 | (1.75 | ) | |||||
Less Distributions: | ||||||||
Dividends from Net Investment Income (Loss) | — | — | ||||||
Dividends from Realized Gains | — | — | ||||||
Total Distributions | — | — | ||||||
Net Asset Value at End of Period | $ | 9.07 | $ | 8.25 | ||||
Total Return (A) | 9.67 | % | (17.50 | )% | ||||
Ratios/Supplimental Data: | ||||||||
Net Assets, End of Period (in 000s) | $ | 2,373 | $ | 1,337 | ||||
Ratio of Expenses to Average Net Assets: | ||||||||
Before Reimbursement and Waiver of Expenses by Advisor | 1.14 | %(B) | 5.14 | %(B) | ||||
After Reimbursement and Waiver of Expenses by Advisor | 0.85 | %(B) | 0.85 | %(B) | ||||
Ratio of Net Investment Income (Loss) to Average Net Assets: | ||||||||
Before Reimbursement and Waiver of Expenses by Advisor | (0.93 | )%(B) | (4.52 | )%(B) | ||||
After Reimbursement and Waiver of Expenses by Advisor | (0.64 | )%(B) | (0.23 | )%(B) | ||||
Portfolio Turnover | 0.63 | % | 0.00 | % |
(A) | For Periods of Less Than One Full Year, Total Returns Are Not Annualized. |
(B) | Annualized. |
(C) | For the period May 13, 2002 (commencement of operations) to June 30, 2002. |
The accompanying notes are an integral part of these finanical statements.
LETTER FROM THE PRESIDENT
June 30, 2003
TIMOTHY PLAN CONSERVATIVE & STRATEGIC GROWTH PORTFOLIO VARIABLE SERIES
Note 1 – Significant Accounting Policies
The Timothy Plan Conservative Growth Portfolio Variable Series and the Timothy Plan Strategic Growth Portfolio Variable Series (individually the “Fund”, collectively the “Funds”) were organized as a diversified series of The Timothy Plan (the “Trust”). The Trust is an open-ended investment company established under the laws of Delaware by an Agreement and Declaration of Trust dated December 14, 1993 (the “Trust Agreement”). The Conservative Growth Portfolio’s primary objective is moderate long-term capital growth, with a secondary objective of current income only to the extent that the Timothy Funds in which the Conservative Growth Portfolio invests seek current income. The Strategic Growth Portfolio’s primary investment objective is medium to high levels of long term capital growth, with a secondary objective of current income only to the extent that the Timothy Funds in which the Strategic Growth Portfolio invests seek current income. The Conservative Growth Portfolio seeks to achieve its investment objectives by investing primarily in the following Timothy Funds: Small Cap Value Fund, Large/Mid Cap Value Fund, Large/Mid Cap Growth Fund, Fixed Income Fund and the Money Market Fund. The Strategic Growth Portfolio seeks to achieve its investment objectives by investing primarily in the following Timothy Funds: Small Cap Value Fund, Large/Mid Cap Value Fund, Large/Mid Cap Growth Fund, Aggressive Growth Fund and the Fixed Income Fund. Each Fund is one of one series of funds currently authorized by the Board of Trustees. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies. The Conservative Growth Portfolio began operations May 1, 2002 and the Strategic Growth Portfolio began operations May 6, 2002.
A. | Security Valuation. |
Each Fund purchases Class A Shares of the Timothy Funds at net asset value without any sales charges. With respect to securities owned by the Timothy Funds, securities listed or traded on a securities exchange for which representative market quotations are available will be valued at the last quoted sales price on the security’s principal exchange on that day. Listed securities not traded on an exchange that day, and other securities which are traded in the over-the-counter markets, will be valued at the last reported bid price in the market on that day, if any. Securities for which market quotations are not readily available and all other assets will be valued at their respective fair market values as determined by the Adviser in conformity with guidelines adopted by and subject to the review of the Board of Trustees. Short-term obligations with remaining maturities of 60 days or less are valued at cost plus accrued interest, which approximates market value.
B. | Investment Income and Securities Transactions. |
Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income and distributions to shareholders are reported on the ex-dividend date. Interest income and expenses are accrued daily.
C. | Net Asset Value Per Share. |
Net asset per share of the capital stock of each Fund is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding.
D. | Federal Income Taxes. |
It is the policy of the Fund to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
E. | Use of Estimates. |
In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
LETTER FROM THE PRESIDENT
June 30, 2003
TIMOTHY PLAN CONSERVATIVE & STRATEGIC GROWTH PORTFOLIO VARIABLE SERIES
Note 2 – Purchases and Sales of Securities
The following is a summary of the cost of purchases and proceeds from the sale of securities, other than short-term investments, for the six months ended to June 30, 2003:
funds | purchases | sales | ||||
Conservative Growth Portfolio | $ | 2,361,590 | $ | 531,590 | ||
Strategic Growth Portfolio | $ | 2,494,993 | $ | 114,993 | ||
Note 3 – Investment Management Fee and Other Transactions with Affiliates
Timothy Partners, LTD., (“TPL”) is the investment Advisor for the Fund pursuant to an Amended and Restated Investment Advisory Agreement (the “Agreement”) effective April 27, 2001. Under the terms of the Agreement, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 0.10% of the average daily net assets of each Fund.
The Advisor has contractually agreed to reduce fees payable to it by the Funds and reimburse other expenses to the extent necessary to limit each Fund’s aggregate annual operating expenses, excluding brokerage commissions and other portfolio transaction expenses, interest, taxes, capital expenditures and extraordinary expenses, to 0.85% of average daily net assets through May 1, 2004. As a result, the Advisor has waived a portion of their fee and reimbursed the Fund for expenses in excess of the limit in the amount of $2,363 for the Conservative Growth Portfolio and $2,192 for the Strategic Growth Portfolio for the six months ended June 30, 2003, respectively.
Note 4 – Unrealized Appreciation (Depreciation)
At June 30, 2003, the cost for federal income tax purposes is and the composition of gross unrealized appreciation (depreciation) of investment securities is as follows:
Conservative Growth | $ | 2,266,757 | $ | 89,594 | $ | (74,205 | ) | $ | 15,389 | ||||
Strategic Growth | $ | 2,257,808 | $ | 132,410 | $ | (28,397 | ) | $ | 104,013 |
Note 5 – Distributions to Shareholders
The tax character of distributions paid during 2003 were as follows:
Conservative Growth Portfolio | Strategic Growth Portfolio | |||||||
2003 | ||||||||
Ordinary Income | $ | — | $ | — | ||||
Long-term Capital Gains | — | — | ||||||
$ | — | $ | — | |||||
As of December 31, 2002, the components of distributable earnings on a tax basis were as follows: | ||||||||
Undistributed Ordinary Income | $ | 1,422 | $ | — | ||||
Undistributed Long-term Capital Gains | 554 | 242 | ||||||
Unrealized (Depreciation) | (110,056 | ) | (80,034 | ) | ||||
$ | (108,080 | ) | $ | (79,792 | ) | |||
[GRAPHIC OF THE TIMOTHY PLAN]
1304 West Fairbanks Avenue
Winter Park, FL 32789
(800) TIM-PLAN
(800) 846-7526
Visit the Timothy Plan web site on the internet at:
www.timothyplan.com
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus which includes details regarding the Fund’s objectives, policies, expenses and other information. Distributed by Timothy Partners, Ltd.
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
Not applicable.
ITEM 10. EXHIBITS
(a) | Not applicable at this time. |
(b) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.CERT. Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-906CERT. |
SIGNATURES
[See General Instruction F]
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.
(Registrant) Timothy Plan
By (Signature and Title)* PRESIDENT AND TREASURER
Date 08/25/2003
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 (Signature and Title)* Arthur Ally PRESIDENT
Date 08/25/2003
By (Signature and Title)* Wesley Pennington TREASURER
Date 08/25/2003
* Print the name and title of each signing officer under his or her signature.