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 811-7778
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ANALYSTS INVESTMENT TRUST
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(Exact name of registrant as specified in charter)
7750 MONTGOMERY ROAD, CINCINNATI, OHIO 45236
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(Address of principal executive offices) (Zip code)
TIMOTHY E. MACKEY, 7750 MONTGOMERY ROAD, CINCINNATI, OHIO 45236
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(Name and address of agent for service)
Registrant's telephone number, including area code: 513-792-5405
Date of fiscal year end: 7/31
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Date of reporting period: 1/31/03
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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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
EQUITY ANALYSTS INC.
REGISTERED INVESTMENT ADVISER
ANALYSTS INVESTMENT TRUST
SEMI - ANNUAL REPORT
(UNAUDITED)
January 31, 2003
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS AGGRESSIVE STOCK FUND
ANALYSTS INVESTMENT TRUST
SEMI - ANNUAL REPORT
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS AGGRESSIVE STOCK FUND
CONTENTS
PAGE
Statements of Assets and Liabilities 3
Analysts Stock Fund Schedule of Investments in Securities 4
Analysts Fixed Income Fund Schedule of Investments in Securities 7
Analysts Aggressive Stock Fund Schedule of Investments in Securities 10
Statements of Operations 12
Statements of Changes in Net Assets 13
Financial Highlights 14
Notes to Financial Statements 16
Information Regarding Trustees and Officers 20
Trustees and Officers 22
ANALYSTS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 2003
(Unaudited)
FIXED AGGRESSIVE
STOCK INCOME STOCK
FUND FUND FUND
----------- ----------- -----------
ASSETS
Unaffiliated Issue
Investment securities, at value $ 6,271,541 $ 2,866,003 $ 1,171,654
(Cost - $6,949,950, $2,750,997 and
$1,542,751, respectively)
Dividends and interest receivable 7,645 37,826 349
Receivable from investment securities sold -- 1,095 --
Cash 11,971
----------- ----------- -----------
Total Assets 6,279,186 2,916,895 1,172,003
LIABILITIES
Payable for shares redeemed 4,894 1,944
Management fee payable 10,925 3,772 2,890
----------- ----------- -----------
Total Liabilities 15,819 3,772 4,834
----------- ----------- -----------
NET ASSETS $ 6,263,367 $ 2,913,123 $ 1,167,169
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital shares $ 7,751,210 $ 3,046,370 $ 2,274,174
Accumulated undistributed net investment
income (loss) (134,933) 11,486 (90,078)
Accumulated net realized gains (losses)
from securities transactions (674,501) (259,740) (645,830)
Net unrealized appreciation (depreciation)
on investments (678,409) 115,007 (371,097)
----------- ----------- -----------
NET ASSETS $ 6,263,367 $ 2,913,123 $ 1,167,169
=========== =========== ===========
Net asset value, offering price, and
redemption price per share $ 15.85 $ 13.49 $ 5.91
=========== =========== ===========
Fund shares outstanding 395,161 216,022 197,556
=========== =========== ===========
See accompanying notes to financial statements.
- 4 -
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
COMMON STOCK: 95.7% SHARES VALUE
------ ------
Large Capitalization U.S. Stocks: 88.7%
Abbott Laboratories 2,000 $ 76,240
Adobe Systems Inc. 3,200 84,544
Alcoa Inc. 4,500 88,965
American Express 2,600 92,378
American International Group 2,200 119,064
Amgen Inc.* 2,900 147,784
Anadarko Petroleum Corp. 3,000 138,330
Anheuser-Busch Cos. Inc. 1,800 85,446
AOL Time Warner* 3,000 34,980
Automatic Data Processing Inc. 2,300 79,741
Cardinal Health 2,200 128,326
Caterpillar Inc. 2,000 87,960
Cintas Corp. 2,000 82,600
Cisco Systems Inc.* 7,650 102,281
Citigroup 2,000 68,760
Dell Computer Corporation * 4,300 102,598
Ecolab Inc. 2,000 98,600
Exxon Mobile Corp 3,800 129,770
Fannie Mae 2,000 129,400
FedEx Corp 1,800 94,680
First Data Corp. 2,900 99,760
Forest Laboratories* 2,000 103,500
General Electric 3,650 84,461
Home Depot Inc. 3,600 75,240
IBM 1,600 125,120
Intel Corp. 5,300 83,210
Johnson & Johnson 1,600 85,776
Kroger Co. * 5,800 87,522
Marsh & McClennan Cos. 2,900 123,627
Mattel, Inc. 4,700 94,000
Medimmune Inc.* 3,700 110,223
Medtronic Inc. 2,900 130,268
Mellon Bank 4,300 98,341
Merck & Co. 2,400 132,936
Merrill Lynch 3,500 122,570
Microsoft 2,850 135,261
See accompanying notes to financial statements.
-5-
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
Large Capitalization U.S. Stocks (continued) SHARES VALUE
------ -------
Morgan Stanley Dean Witter 1,400 $ 53,060
Nabor Industries Ltd 2,600 95,810
North Fork Bankcorporation Inc. 1,500 48,645
Office Depot Inc. * 8,000 106,800
Oracle Corporation * 6,300 75,789
Pepsico Inc. 3,000 121,440
Pfizer Inc. 4,000 121,440
Procter & Gamble Company 1,500 128,355
Schlumberger LTD 2,300 86,710
Sungard Data Systems* 4,000 77,760
Sysco Corp. 3,000 88,110
United Technologies Corp. 1,700 108,086
United Health Group 1,300 114,270
Verizon Communications 3,300 126,324
Wal Mart Stores Inc. 2,200 105,160
Walgreen Company 4,700 136,300
Walt Disney Co. 6,300 110,250
Wells Fargo & Company 2,700 127,899
Xilinx inc.* 3,100 61,349
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Total (Cost: $6,354,027) 5,557,819
Small/Medium Capitalization U.S. Stocks: 3.0%
S&P 400 Deposit Receipt 1,000 76,590
Supervalu Inc. 7,500 111,600
-----------
Total (Cost: $162,148) 188,190
* Non-dividend paying investment.
See accompanying notes to financial statements.
-6-
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
Foreign Stocks: 4.0% SHARES VALUE
------ -----
Nokia Corp. ADR 5,400 $ 77,706
Vodafone Group PLC ADR 5,400 101,790
WPP Group PLC ADR 2,000 71,220
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Total (Cost: $158,959) 250,716
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TOTAL COMMON STOCK (COST: $6,675,134) 5,996,725
MONEY MARKET MUTUAL FUND: 4.4%
US Bank, U.S. Treasury Money Market Fund (Cost: $274,817) 274,817 274,817
-----------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $6,949,951) 100.1% 6,271,542
LIABILITIES IN EXCESS OF ALL OTHER ASSETS (0.1%) (8,175)
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NET ASSETS 100% $6,263,367
==========
* Non-dividend paying investment.
-7-
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
COMMON STOCK: 18.0% SHARES VALUE
------ -----
Real Estate Investment Trusts: 14.4%
Carramerica Realty Corporation 1,400 $ 33,614
Commercial Net Lease Realty Inc. 3,580 53,378
First Industrial Realty Trust Inc. 3,200 86,880
Health Care Properties Investors Inc. 1,599 58,907
Hospitality Properties Trust 1,500 48,600
HRPT Properties Trust 2,350 19,716
Simon Property Group Inc. 1,650 53,955
Summitt Properties Inc. 3,500 63,175
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Total (Cost: $388,847) 418,225
Closed End Mutual Funds: 3.6%
Pioneer Interest Shares (Cost: 100,344) 9,000 104,940
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TOTAL COMMON STOCK (COST: $489,191) 523,165
PREFERRED STOCKS: 9.0%
BAC Capital Trust II 2,000 $ 52,560
Citigroup Capital Viii 2,000 52,640
Georgia Power Capital Trust IV 2,000 50,940
Mississippi Power Capital Trust II 2,000 52,900
US Bancorp Capital IV 2,000 52,260
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TOTAL PREFERRED STOCK (COST: $253,491) 261,300
See accompanying notes to financial statements.
-8-
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
CORPORATE BONDS: 56.0%
Sony Corporation 6.125%, 3/4/03 100,000 100,378
General Motors Corporation 8.875%, 5/15/03 10,000 10,133
Consolidated National Gas Company 5.75%, 8/01/03 10,000 10,173
American Telephone & Telegraph Company 6.75%, 4/1/04 50,000 52,308
NationsBank Corporation 7.75%, 8/15/04 50,000 54,428
Salomon Smith Barney 6.25%, 1/15/05 100,000 106,709
Pacific Bell Telephone Company 6.25%, 3/1/05 50,000 54,158
Loews Corporation 6.75%, 12/15/06 100,000 107,375
Freddie Mac MTN 5.200%, 02/06/07 150,000 150,090
Household Bank CD 7.20%, 4/12/07 100,000 107,304
M&I Bank Milwaukee 4.500%, 08/13/07 100,000 100,060
Entergy Mississippi Corporation 6.45%, 4/1/08 100,000 102,659
John Hancock 5.625%, 12/01/08 100,000 107,596
General Electric Capital Corporation 8.65%, 5/15/09 100,000 123,625
Target Corp 7.50%, 8/15/10 100,000 117,482
Boeing Capital Corp 6.10%, 3/01/11 100,000 103,588
Union Planters Corp 7.750%, 03/01/11 100,000 117,000
Credit Suisse First Boston USA Inc. 6.50%, 1/15/12 100,000 106,138
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TOTAL CORPORATE BONDS (COST: $1,574,117) 1,631,204
See accompanying notes to financial statements.
-9-
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
MORTGAGE - BACKED OBLIGATIONS: 4.8%
Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 593 653
FNMA REMIC 1992 Trust G53 Class J, 7.0%, 9/25/22 4,803 5,171
FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 11,675 11,947
FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 20,000 20,190
FHLMC REMIC 1993 Trust 1602 Class BB, 6.1%, 4/15/23 15,280 15,541
Empire Federal Home Loan Owner Trust 1998-2 9.03%, 6/25/24 53,697 56,445
Green Tree Financial Corp TST 1997-A, 7.87%, 3/15/28 30,000 30,934
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TOTAL MORTGAGE - BACKED OBLIGATIONS (COST: $124,745) 140,881
MONEY MARKET MUTUAL FUND: 10.6%
US Bank, U.S. Treasury Money Market Fund (Cost $309,453) 309,453 309,453
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TOTAL INVESTMENT SECURITIES AT VALUE (COST: $2,750,997) 98.4% 2,866,003
ALL OTHER ASSETS LESS LIABILITIES 1.6% 47,120
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NET ASSETS 100% $ 2,913,123
============
-10-
ANALYSTS INVESTMENT TRUST
ANALYSTS AGGRESSIVE STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
COMMON STOCK: 90.3% SHARES VALUE
------ -----
Large Capitalization U.S. Stocks: 67.9%
Albertsons Inc. 900 $ 19,350
Amazon.com Inc.* 1,000 21,850
Anadarko Petroleum Corp 400 18,444
AOL Time Warner * 1,900 22,154
Applied Materials* 1,500 17,955
Archer Daniels Midland 2,100 25,305
AT&T 400 7,792
BEA Systems* 2,400 27,504
Biomet Inc.* 500 13,971
Biovail Corp.* 1,000 29,050
Boeing Co. 600 18,954
Cendant* 2,500 27,700
Charles Schwab 3,400 31,348
Ciena Corp.* 2,800 16,240
Cisco Systems Inc. 1,300 17,381
Citrix Systems Inc. * 2,060 28,428
Dell Computer Corporation * 1,000 23,860
Gap Inc. 1,500 21,945
Halliburton Co. 2,000 37,520
Hewlett-Packard 948 16,504
JDS Uniphase Corp.* 4,200 11,340
JP Morgan Chase 1,100 25,674
KLA-Tencore Corp 400 13,056
Morgan Stanley Dean Witter 800 30,320
Motorola 1,650 13,167
Oracle Corporation * 2,201 26,478
Solectron Corp.* 3,200 11,488
Staples Inc.* 2,000 34,340
Starbucks Corp.* 1,000 22,720
Sun Microsystems Inc. * 3,400 10,506
Tyco International LTD 1,500 24,015
US Bancorp 1,800 37,980
Walt Disney Co. 1,620 28,350
Waste Management Inc. 1,200 27,588
Xilinx Inc.* 700 13,853
Yahoo Inc.* 1,000 18,200
-----------
Total (Cost: $1,150,910) 792,330
See accompanying notes to financial statements.
-11-
ANALYSTS INVESTMENT TRUST
ANALYSTS AGGRESSIVE STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 2003
(UNAUDITED)
Small/Medium Capitalization U.S. Stocks: 19.1% SHARES VALUE
------ -----
Barnes & Noble Inc. * 1,000 $ 17,400
Comcast Corp * 647 17,230
Hillenbrand Industries 500 25,575
L-3 Communications * 500 22,385
Medicis Pharmaceuticals Corp 500 25,825
Millipore Corp 500 16,155
Noble Corporation* 600 20,568
R.H. Donnelly Corp. * 1,100 34,419
Sherwin Williams Co. 1,000 26,640
Sillicon Valley* 1,000 17,250
------------
Total (Cost: $206,455)
Foreign Stocks: 3.3%
Skilsoft Pub LTD Co ADR 2,700 7,722
Teva Pharmaceuticals ADR 800 30,720
------------
Total (Cost: $67,951) 38,442
------------
TOTAL COMMON STOCK (COST: $1,425,316) 1,054,219
MONEY MARKET MUTUAL FUND: 10.1%
US Bank, U.S. Treasury Money Market Fund (Cost $117,435) 117,435 117,435
-----------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $1,542,751) 100.4% 1,171,654
LIABILITIES IN EXCESS OF ALL OTHER ASSETS (-0.4%) (4,485)
-------------
NET ASSETS 100% $ 1,167,169
==========
*Non-dividend paying investment.
See accompanying notes to financial statements.
-12-
ANALYSTS INVESTMENT TRUST
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 2003
(UNAUDITED)
FIXED AGGRESSIVE
STOCK INCOME STOCK
FUND FUND FUND
------------- ------------- -------------
INVESTMENT INCOME:
Dividends $ 37,031 $ 53,931 $ 5,292
Interest - 67,307 -
------------- ------------- -------------
Total Investment Income 37,031 121,238 5,292
EXPENSES:
Management Fee 64,349 33,260 15,976
------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) (27,318) 87,978 (10,684)
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) from security
Transactions (25,786) (131,587) (22,160)
Net change in net unrealized appreciation
(depreciation) on investments (85,975) 99,931 89,124
------------- ------------- -------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS (111,761) (31,656) 66,964
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (139,079) $ 56,322 $ 56,280
============= ============= =============
See accompanying notes to financial statements.
-13-
ANALYSTS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JANUARY 31, 2003 (UNAUDITED) AND
YEAR ENDED JULY 31, 2002
STOCK FUND FIXED INCOME FUND AGGRESSIVE STOCK FUND
FROM OPERATIONS: 2003 2002 2003 2002 2003 2002
----------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss) $ (27,318) $ (66,168) $ 87,978 $ 208,507 $ (10,684) $ (29,950)
Net realized gains (losses) from
security transactions (25,786) (577,341) (131,587) (17,931) (22,160) (603,908)
Net change in net unrealized
appreciation (depreciation) on investments (85,975) (1,397,932) 99,931 124,217 89,124 (63,345)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Operations (139,079) (2,041,441) 56,322 314,793 56,280 (697,203)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- -- (92,899) (209,047) -- --
From capital gains -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders -- -- (92,899) (209,047) -- --
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 585,838 2,289,816 793,511 992,207 125,583 723,892
Net asset value of shares issued from
reinvestment of distributions to
shareholders -- -- 85,571 189,799 -- --
Payment for shares redeemed (854,482) (1,912,914) (2,959,019) (1,020,820) (122,537) (452,766)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) from fund share
Transactions (268,644) 376,902 (2,079,937) 161,186 3,046 271,126
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS (407,723) (1,664,539) (2,116,514) 266,932 59,326 (426,077)
NET ASSETS:
Beginning of period 6,671,090 8,335,629 5,029,637 4,762,705 1,107,843 1,533,920
----------- ----------- ----------- ----------- ----------- -----------
End of period $ 6,263,367 $ 6,671,090 $ 2,913,123 $ 5,029,637 $ 1,167,169 $ 1,107,843
=========== =========== =========== =========== =========== ===========
Accumulated undistributed net
investment income (loss) $ (134,933) $ (107,615) $ 11,486 $ 16,407 $ (645,830) $ (79,395)
=========== =========== =========== =========== =========== ===========
See accompanying notes to financial statements.
-14-
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - STOCK FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31, 2002, 2001, 2000,
AND 1999 AND FOR THE SIX MONTHS ENDED JANUARY 31, 2003 (UNAUDITED)
2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
Net asset value, beginning of period $ 16.17 $ 21.05 $ 26.15 $ 28.41 $ 24.99
Income (loss) from investment operations:
Net investment income (loss) (0.07) (0.16) 0.03 (0.05) 0.02
Net realized and unrealized gains (losses)
on securities (0.25) (4.72) (3.60) 2.35 3.56
--------- --------- --------- --------- ---------
Total from investment operations (0.32) (4.88) (3.57) 2.30 3.58
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 (0.16)
Dividends from capital gains 0.00 0.00 (1.53) (4.56) 0.00
--------- --------- --------- --------- ---------
Total distributions (0.00) (0.00) (1.53) (4.56) (0.16)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 15.85 $ 16.17 $ 21.05 $ 26.15 $ 28.41
========= ========= ========= ========= =========
Total return (1.99)% (23.17)% (13.51)% 14.21% 14.36%
========= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 6,263 $ 6,671 $ 8,336 $ 9,636 $ 8,971
Ratio of expenses to average net assets 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income (loss) to average
net assets (0.43)% (0.81)% 0.12% (0.19)% 0.08%
Portfolio turnover rate 20.31% 88.91% 15.43% 0.00% 89.30%
- ------------------------------------------------------------------------------------------------------------------------------------
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - FIXED INCOME FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31, 2002, 2001, 2000,
AND 1999 AND FOR THE SIX MONTHS ENDED JANUARY 31, 2003 (UNAUDITED)
2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
Net asset value, beginning of period $ 13.61 $ 13.31 $ 12.67 $ 13.24 $ 14.27
Income (loss) investment operations:
Net investment income 0.27 0.58 0.73 0.78 0.78
Net realized and unrealized gains (losses) on securities (0.10) 0.30 0.64 (0.51) (1.03)
--------- --------- --------- --------- ---------
Total from investment operations 0.17 0.88 1.37 0.27 (0.25)
Less distributions:
Dividends from net investment income (0.73) (0.79) (0.78) (0.29) (0.58)
Dividends from capital gains 0.00 0.00 0.00 (0.05) 0.00
--------- --------- --------- --------- ---------
Total distributions
(0.29) (0.58) (0.73) (0.84) (0.78)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 13.49 $ 13.61 $ 13.31 $ 12.67 $ 13.24
========= ========= ========= ========= =========
Total return 1.47% 6.77% 11.11% 2.32% (1.77)%
========= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 2,913 $ 5,029 $ 4,763 $ 3,896 $ 3,867
Ratio of expenses to average net assets 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 2.00% 4.30% 5.58% 6.24% 5.57%
Portfolio turnover rate 31.97% 21.18% 0.00% 11.30% 9.70%
See accompanying notes to financial statements.
-15-
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - AGGRESSIVE STOCK FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31, 2002, 2001 AND 2000,
AND THE PERIOD FROM INCEPTION (MAY 4, 1999) THROUGH JULY 31, 1999
AND FOR THE SIX MONTHS ENDED JANUARY 31, 2003 (UNAUDITED)
2003 2002 2001 2000 1999
--------- --------- --------- --------- -------
Net asset value, beginning of period $ 5.61 $ 9.04 $ 12.32 $ 9.86 $ 9.52
Income (loss) from investment operations:
Net investment income (loss) (0.05) (0.16) (0.16) (0.17) (0.04)
Net realized and unrealized gains
(losses) on securities 0.35 (3.27) (3.12) 2.63 0.38
--------- --------- --------- --------- -------
Total from investment operations 0.30 (3.43) (3.28) 2.46 0.34
--------- --------- --------- --------- -------
Net asset value, end of period $ 5.91 $ 5.61 $ 9.04 $ 12.32 $ 9.86
========= ========= ========= ========= =======
Total return 5.35% (38.00)% (26.60)% 24.99% .77%*
========= ========= ========= ========= =======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 1,107 $ 1,108 $ 1,534 $ 2,119 $ 752
Ratio of expenses to average net assets 2.75% 2.81% 3.00% 3.00% 3.00%
Ratio of net investment loss to average net assets (0.92)% (2.02)% (1.58)% (1.32)% (1.68)%
Portfolio turnover rate 11.27% 76.33% 8.81% 1.36% 0.00%
*Annualized
See accompanying notes to financial statements.
-16-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Analysts Investment Trust (the Trust) is registered under the Investment
Company Act of 1940, as amended, as a no-load, diversified, open end
management investment company. The Trust was established as an Ohio
Business Trust under a Declaration of Trust dated May 28, 1993. The
Declaration of Trust, as amended, permits the Trustees to issue an
unlimited number of shares of the Analysts Stock Fund (Stock Fund),
Analysts Fixed Income Fund (Fixed Income Fund), and the Analysts Aggressive
Stock Fund (Aggressive Stock Fund, formerly the internet.fund) (the Funds).
The Stock Fund's investment objective is to provide long term capital
appreciation. The Fixed Income Fund's investment objective is to provide a
high level of income over the long term consistent with preservation of
capital. The Aggressive Stock Fund's objective is to provide long term
growth through capital appreciation. The following is a summary of the
significant accounting policies of the Trust:
SECURITIES VALUATION - Equity securities, options and commodities listed on
exchanges or on the NASDAQ are valued at the last quoted sale price as of
the close of business on the day the securities are being valued. Lacking a
last sale price, a security is generally valued at its last bid price,
except when, in Equity Analysts Inc.'s (the Adviser) 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. Fixed income securities may
be valued on the basis of prices furnished by a pricing service when the
Adviser believes such prices accurately reflect the fair value of such
securities. A pricing service utilizes electronic data processing
techniques to determine prices for normal institutional-size trading units
of debt securities without regard to sale or bid prices. Corporate bonds,
mortgage-backed obligations and asset backed and receivable backed
securities are valued using the Adviser's proprietary bond pricing model,
which has been approved by the Board of Trustees. When market quotations or
pricing service prices or prices from the Adviser's bond pricing model are
not readily available, when the Adviser determines a proposed 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. Short term investments in fixed income securities
with maturities of less than 60 days when acquired, or which subsequently
are within 60 days of maturity, are valued by using the amortized cost
method of valuation.
OPTION WRITING - When a put or call option is written, an amount equal to
the premium received is recorded as a liability and is subsequently
adjusted to the current fair value of the option written at which time an
unrealized gain or loss is recognized. When a written option contract
expires or is terminated (closing purchase transaction), a realized gain
(or realized loss if the cost of the closing purchase transaction exceeds
the premium received when the option was sold) is recorded without regard
to any unrealized gain or loss on the underlying security, and the
liability related to such option is extinguished. When an option is
exercised by the holder, a gain or loss from the underlying security is
realized and the proceeds from such a sale are increased by the premium
originally received. A Fund as writer of an option bears the market risk of
an unfavorable change in the price of the security underlying the written
option.
SHARE VALUATION - The net asset value per share is calculated daily by
dividing the total value of each Fund's investments and other assets, less
liabilities, by the total number of the Fund's shares outstanding.
INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS - Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Distributions to shareholders arising from net investment income are
declared and it is the intention that such distributions be paid quarterly.
Net realized capital gains, if any, are distributed to shareholders at
least once per year.
SECURITY TRANSACTIONS - Security transactions are accounted for on a trade
date basis, which is the date the order to buy or sell is executed.
Securities sold are valued on a specific identification basis.
-18-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (CONTINUED)
USE OF ESTIMATES - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires the Adviser to make estimates and assumptions that affect
the amounts reported in these financial statements and accompanying notes.
The Adviser believes that the estimates utilized in preparing these
financial statements are reasonable and prudent. Actual results could
differ from these estimates.
FEDERAL INCOME TAXES - It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies, and distributes at least 90% of its taxable net income, the Fund
(but not its shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes is made. In
order to avoid imposition of the excise tax created by the Tax Reform Act
of 1986 as amended by the Revenue Act of 1987, it is each Fund's intention
to declare as dividends in each calendar year at least 98% of its net
investment income (earned during the calendar year) and 98% of its realized
capital gains (earned during the twelve months ended October 31 of the
calendar year) plus undistributed amounts from prior years.
The Stock Fund, the Fixed Income Fund and the Aggressive Stock Fund have
capital loss carryforwards expiring in 2008 to 2010 for federal income tax
purposes of approximately $640,000, $120,000 and $620,000, respectively.
2. INVESTMENT TRANSACTIONS
Investment transactions in the Stock Fund, Fixed Income Fund and Aggressive
Stock Fund for the six months ended January 31, 2003 are as follows:
FIXED AGGRESSIVE STOCK
STOCK FUND INCOME FUND FUND
------------ ------------ ----------------
Purchase of investment securities $1,220,133 $2,405,804 $ 145,472
Proceeds from sales and maturities
of investment securities 1,571,057 851,237 97,498
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Timothy E. Mackey is the President, and Dawn Szeliga is the Treasurer, of
Equity Analysts, Inc. (the Adviser), registered investment adviser to the
Funds. The Adviser manages each Fund under the terms of Management
Agreements. RiverPoint Capital Management, Inc. (formerly O'Sullivan Sims &
Hogan, Inc.) (the Sub-Adviser), an unrelated registered investment adviser,
is the sub-adviser to the Funds. On July 26, 2002, RiverPoint accepted two
new individuals as managing directors and shareholders causing a change of
control and the automatic termination of the original sub-advisory
agreement under the Investment Company Act of 1940, as amended.
Under the Management Agreements, the Adviser pays all of the expenses of
the Funds except brokerage fees and commissions, taxes, interest and
extraordinary expenses. As compensation for investment advisory services
and the Adviser's agreement to pay the above Fund expenses, each Fund pays
the Adviser a fee, computed and accrued daily, based upon the following
annual rates:
FIXED AGGRESSIVE STOCK
AVERAGE DAILY ASSETS STOCK FUND INCOME FUND FUND
-------------------- ---------- ----------- ----
Up to and including $20 million 2.00% 1.50% 2.75%
From $20 million to $40 million 1.75% 1.25% 2.50%
From $40 million to $100 million 1.50% 1.00% 2.00%
Above $100 million .75% .75% 1.50%
-17-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
The Sub-Adviser manages each of the Funds' investment portfolios. Under the
terms of the sub-advisory agreement, the Adviser (not the Funds) pays the
sub-adviser a fee based upon the average daily net assets of each Fund at
the following rates: Stock Fund, 0.50%; Fixed Income Fund 0.35%; Aggressive
Stock Fund 0.65%. With respect to the amount of assets in each Fund on the
effective date of the original sub-advisory agreement, September 28, 2001,
the sub-adviser has agreed to waive a portion of its fees during the first
two years of the sub-advisory arrangement. Fees paid during August 2002
through September 2002 with respect to the amount of assets in each Fund on
September 28, 2001 were at the following rates: Stock Fund, 0.20%; Fixed
Income Fund, 0.15%; Aggressive Stock Fund, 0.25%. Fees paid during October
2002 through January 2003 with respect to the amount of assets in each Fund
on September 28, 2002 were at the following rates: Stock Fund, 0.35%; Fixed
Income Fund, 0.35%; Aggressive Stock Fund, 0.45%.
4. FUND SHARE TRANSACTIONS
Proceeds and payments on shares of the Funds as shown in the Statements of
Changes in Net Assets are the result of the following share transactions:
FIXED AGGRESSIVE STOCK
STOCK FUND INCOME FUND FUND
----------- ------------ ----------------
Shares sold 36,341 58,144 21,677
Shares issued from reinvestment
of distributions - 5,307 -
Shares redeemed (53,676) (217,944) (21,671)
-------- --------- --------
Net increase (17,335) (154,493) 6
Shares at beginning of period 412,495 369,515 197,551
--------- -------- --------
Shares at end of period 395,160 215,022 197,557
========= ======== ========
5. SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at January
31, 2003 was the same as identified cost. At January 31, 2003, the
composition of unrealized appreciation (the excess of value over tax cost)
and depreciation (the excess of tax cost over value) by Fund was as
follows:
GROSS GROSS NET APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ----------------
Stock Fund $ 359,872 $ (1,038,281) $ (678,409)
Fixed Income Fund 134,438 (19,432) 115,006
Aggressive Stock Fund 77,757 (448,854) (371,097)
6. SHAREHOLDER MEETING
A shareholder meeting was held on November 15, 2002, with votes being
counted on several issues.
The first issue before the shareholders was to approve or not approve a new
management agreement for each Fund with Equity Analysts Inc., the Adviser.
This vote was required due to the proposed sale of the Adviser by David L.
Manzler, majority shareholder, to Equity Analysts L.L.C. The results of the
vote were as follows: for the Stock Fund - for approval, 200,681 votes,
against approval, 312 votes; for the Fixed Income Fund - for approval,
255,797 votes, against approval, 546 votes; and for the Aggressive Stock
Fund - for approval, 104,129 votes, against approval, zero votes. As a
result, the shareholders of the Analysts
-19-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
6. SHAREHOLDER MEETING (CONTINUED)
Investment Trust approved the new management agreement with Equity
Analysts Inc.
The second issue presented to the shareholders was to approve or not
approve a new sub-advisory agreement between Equity Analysts Inc. and
Riverpoint Capital Management Inc. The results of the vote were as follows:
for the Stock Fund - for approval, 200,691 votes, against approval, 312
votes; for the Fixed Income Fund - for approval, 255,797 votes, against
approval, 546 votes; and for the Aggressive Stock Fund - for approval,
104,129 votes, against approval, zero votes. As a result, the shareholders
of the Analysts Investment Trust approved a new sub-advisory agreement
between Equity Analysts Inc. and Riverpoint Capital Management, Inc.
The third issue was to elect two new members to the Board of Trustees of
Analysts Investment Trust, Timothy E. Mackey and Dawn Szeliga. With respect
to Timothy Mackey, 560,607 shares were voted to give authority to elect Mr.
Mackey, and 858 were voted to withhold authority to elect him. With respect
to Dawn Szeliga, 560,607 shares were voted to give authority to elect Ms.
Szeliga, and 858 were voted to withhold authority to elect her. As a
result, both candidates were elected to the Board of Trustees.
The fourth issue was to vote to ratify, or not ratify, the selection of
Berge & Company LTD as independent auditors of the Funds for the fiscal
year ending in 2003. The results of the vote were as follows: for the Stock
Fund: for approval, 200,681 votes, against approval, 312 votes; for the
Fixed Income Fund: for approval, 255,797 votes, against approval, 546
votes; and for the Aggressive Stock Fund: for approval, 104,129 votes,
against approval, 0 votes. As a result, the shareholders of the Analysts
Investment Trust ratified the selection of Berge & Company LTD as
independent auditors of the Analysts Investment Trust.
7. SUBSEQUENT EVENTS
As a follow up to the proposed sale of the Adviser in Issue 1 from David L.
Manzler to Equity Analysts L.L.C., the parties involved decided not to
complete the sale. David L. Manzler remains the majority shareholder of
Equity Analysts Inc. No other sale is currently under discussion.
Also, Berge & Company LTD, the independent auditor ratified in Issue 4, was
sold to BKD L.L.P. in December of 2002. BKD L.L.P. has been selected by the
Board of Trustees to act as independent auditors of the Funds for the
fiscal year ending 2003.
-20-
TRUSTEES AND OFFICERS
Timothy E. Mackey
President & Trustee
Dawn Szeliga
Secretary &Trustee
Mark Srofe
Treasurer
Walter E. Bowles, III
Trustee
Robert W. Buechner
Trustee
Chetan Demania
Trustee
INVESTMENT ADVISOR
Equity Analysts Inc.
7750 Montgomery Road
Cincinnati, OH 45236
513-792-5400
800-845-2611 (toll free)
513-984-2411 (Fax)
SUB ADVISOR
RiverPoint Capital Management, Inc.
250 West Court Street, Suite 312E
Cincinnati, OH 45202
CUSTODIAN
US Bank
425 Walnut Street
Cincinnati, OH 45202
LEGAL COUNSEL
Thompson Hine LLP
312 Walnut Street 14th Floor
Cincinnati, OH 45202
AUDITORS
BKD L.L.P
312 Walnut Street, Suite 3000
Cincinnati, OH 45201
-21-
ITEM 2. CODE OF ETHICS. Not applicable to Semi-Annual Reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to Semi-Annual
Reports.
ITEMS 4-8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES. Not applicable to Semi-Annual Reports for the
period ended January 31, 2003.
ITEM 10. EXHIBITS. Certifications required by Item 10(b) of Form N-CSR are
filed herewith.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit. Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2).
-22-
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.
(Registrant) ANALYSTS INVESTMENT TRUST
By (Signature and Title)
* /S/
-------------------------------
Timothy E. Mackey. President
Date APRIL 9, 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)
* /S/
-------------------------------
Timothy E. Mackey, President
Date APRIL 9, 2003
----------------------------
By (Signature and Title)
* /S/
-------------------------------
Mark G. Srofe, Treasurer
Date APRIL 10, 2003
------------------------------
* Print the name and title of each signing officer under his or her signature.
-23-