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: 513-792-5402
Date of fiscal year end: 07/31
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Date of reporting period: 07/31/03
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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
ANNUAL REPORT
July 31, 2003
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS AGGRESSIVE STOCK FUND
ANALYSTS INVESTMENT TRUST
ANNUAL REPORT
ANALYSTS STOCK FUND
ANALYSTS FIXED INCOME FUND
ANALYSTS AGGRESSIVE STOCK FUND
CONTENTS
PAGE
Message from the Fund President/Riverpoint Investment Committee 1
Performance Summary 3
Independent Accountants' Report 6
Statements of Assets and Liabilities 7
Analysts Stock Fund Schedule of Investments in Securities 8
Analysts Fixed Income Fund Schedule of Investments in Securities 11
Analysts Aggressive Stock Fund Schedule of Investments in Securities 13
Statements of Operations 15
Statements of Changes in Net Assets 16
Financial Highlights 17
Notes to Financial Statements 19
Information Regarding Trustees and Officers 22
Trustees and Officers 24
MESSAGE FROM THE FUND PRESIDENT/RIVERPOINT INVESTMENT COMMITTEE
FOR THE YEAR ENDING JULY 31, 2003
ECONOMIC OUTLOOK
What a difference one year makes. Whereas in the first quarter of 2003, stocks
declined modestly in value while bonds made small gains, few investors were
prepared for the sharp rise in equities that took place in the second quarter.
Since March 11, this years' stock market low, the "blue chip" Dow Jones
Industrial Average has risen 19% through 6/30/03. At the same time, the
technology-laden NASDAQ Composite shot up 28% while the broad-based S&P 500
gained 22%. By most traditional measures such a significant advance is called a
bull market. Whether it is a rally in a bear market, an up-tick in a new bull
market, or something in between, only the passage of time will tell.
The stock market rally is a sign that investors believe that the U.S. economy
will gain strength in the second half of this year. At RiverPoint Capital
Management, Inc., we are confident that the stock market is correctly
anticipating the future despite the fact that corroborating economic data is
still scarce. However, all the ingredients are present for a strong economy down
the road. They include exceptionally low interest rates and the most simulative
fiscal policy imaginable.
Most observers believe the economy will continue to grow at about 3 to 4%
annually over the next two years. The outlook for the global economy is also
encouraging. With subdued inflation and moderate growth, interest rates have
fallen substantially. The low interest rates have allowed homeowners to
refinance mortgages and spend some of the proceeds on consumer goods. Besides
low interest rates and the prospects of an improving economy, stock market
valuation is reasonable. This bodes well for equity investors in the coming
months.
ANALYSTS STOCK FUND
The total return of the Analysts Stock Fund from August 1, 2002 through July 31,
2003 was 13.3%. The total return of the S&P 500 for the same period was 10.6%.
Since inception of the Fund (August 25, 1993), the average annual total return
of the Fund through July 31, 2003 was 6.3% versus 9.1% for the S&P 500. Of
course, past performance is not predictive of future results.
The current sector allocation for the Stock Fund is toward areas that will
benefit from a cyclical economic recovery. Increased emphasis will be placed on
sectors such as technology, industrials, capital goods and materials. The Stock
Fund has also raised its exposure in health care, as recent valuations in this
sector appear more compelling than over the last six months.
-1-
The Fund outperformed the S&P 500 Index over the year ended July 2003, albeit
slightly, primarily due to its under-emphasis on sectors such as staples, health
care and utilities.
ANALYSTS FIXED INCOME FUND
The total return of the Analysts Fixed Income Fund for the period August 1, 2002
through July 31, 2003 was 5.4%. This compares to a 3.8% rate of return for the
Lehman Intermediate T-Bond Index (LITB) over the same period. Since inception of
the Fund (August 25, 1993), the average annual return of the Fund through July
31, 2002 was 4.7% versus 5.5% for the Lehman Intermediate T-Bond Index. Of
course, past performance is not predictive of future results.
The Fixed Income Fund is also being managed with the assumption that an economic
recovery is occurring now, although the recovery may be slower, than we first
anticipated. Even so, we are still emphasizing a duration on the Fund of 3 to 5
years as a cautionary move in expectation of rising rates.
The Fixed Income Fund, while turning in a positive performance for the year
ending July 31, 2003, out-performed the LITB Index by about 1.5% primarily
because the duration of the Fund was shorter than that of the index, which aided
Fund performance as rates began to rise over the time period. In addition, the
Fund employed peripheral securities such as REITS and preferred stocks which
out-performed the other fixed income sectors.
ANALYSTS AGGRESSIVE STOCK FUND
The total return of the Analysts Aggressive Stock Fund from August 1, 2002
through July 31, 2003 was 26.1%. This compares to a 10.5% rate of return for the
S&P 500. Since inception of the Fund (May 4, 1999), the average annual return of
the Fund was -6.8% versus -5.4% for the S&P 500 and -8.3% for the NASDAQ
Composite. Of course, past performance is not predictive of future results.
The Aggressive Fund attempts to find medium to large growth companies that are
temporarily out of favor. In addition, it will make more aggressive sector moves
than the Stock Fund. The Aggressive Fund currently has about 30% of its assets
invested in the cyclically depressed information technology sector. Selected
communications stocks are attractively priced and will be an emphasis as well as
certain energy, investment brokerage and oilfield service companies.
The Aggressive Fund is compared to the S&P 500 Index, the DJIC Index and the
NASDAQ Index. Typically, during a bull market scenario, this Fund will
out-perform the S&P 500 Index and conversely will under-perform in bear markets.
With the recent rally in the stock market, and particularly in NASDAQ type
stocks, the Fund's over-emphasis on technology and other deep value areas
relative to the Index's has caused it to out-perform the S&P Index.
Russell Sims Tim Mackey
On behalf of the Riverpoint President
Investment Committee
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DO YOU HAVE PLOT POINTS FOR THESE 3 GRAPHS?????
ANALYSTS STOCK FUND
Growth of $10,000 Investment
[OBJECT OMITTED]
-3-
ANALYSTS FIXED INCOME FUND
Growth of $10,000 Investment
[OBJECT OMITTED]
-4-
ANALYSTS AGGRESSIVE STOCK FUND
Growth of $10,000 Investment
[OBJECT OMITTED]
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INDEPENDENT ACCOUNTANTS' REPORT
To the Shareholders and
Board of Trustees
Analysts Investment Trust
Cincinnati, Ohio
We have audited the accompanying statements of assets and liabilities of the
Analysts Investment Trust, an Ohio business trust, (comprising the Stock Fund,
the Fixed Income Fund and the Aggressive Stock Fund) including the schedules of
investments in securities, as of July 31, 2003 and the related statements of
operations, changes in net assets and the financial highlights for the year then
ended. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The financial statements of the Analysts Investment Trust as of July 31,
2002 and the related financial highlights for each of the four years in the
period then ended, were audited by Berge & Company LTD, who merged with BKD, LLP
as of December 1, 2002, and whose report dated August 29, 2002, expressed an
unqualified opinion on those statements and financial highlights.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of July 31, 2003, by correspondence
with the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
the respective portfolios constituting the Analysts Investment Trust as of July
31, 2003, and the results of their operations, changes in their net assets and
their financial highlights for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.
BKD, LLP
Cincinnati, Ohio
August 26, 2003
-6-
ANALYSTS INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
STOCK FIXED INCOME AGGRESSIVE
FUND FUND STOCK FUND
---- ---- ----------
ASSETS
Investment securities, at value $ 7,078,249 $ 2,853,921 $ 1,473,012
(Cost - $6,547,833, $2,695,812 and
$1,494,547, respectively)
Dividends and interest receivable 6,770 30,633 229
Receivable from investment securities sold -- 459 --
Cash 792 97 355
----------- ----------- -----------
Total Assets 7,085,811 2,885,110 1,473,576
LIABILITIES
Management fee payable 11,903 3,719 3,425
----------- ----------- -----------
Total Liabilities 11,903 3,719 3,425
----------- ----------- -----------
NET ASSETS $ 7,073,908 $ 2,881,391 $ 1,470,151
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital shares $ 7,608,355 $ 2,964,302 $ 2,339,042
Accumulated undistributed net investment
income (loss) (159,483) 14,546 (103,275)
Accumulated net realized (losses)
from securities transactions (905,379) (255,565) (744,081)
Net unrealized appreciation (depreciation)
on investments 530,415 158,108 (21,535)
----------- ----------- -----------
NET ASSETS $ 7,073,908 $ 2,881,391 $ 1,470,151
=========== =========== ===========
Net asset value, offering price, and
redemption price per share $ 18.33 $ 13.72 $ 7.07
=========== =========== ===========
Fund shares outstanding 386,000 209,975 208,016
=========== =========== ===========
See accompanying notes to financial statements.
-7-
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
COMMON STOCK: 97% SHARES VALUE
------ -----
BASIC MATERIAL SECTOR SECURITIES: 5%
Alcoa Inc. 5,500 $ 152,735
Dow Chemical Co. 4,400 155,320
----------
Total (Cost: $255,753) 308,055
CONSUMER CYCLICAL SECTOR SECURITIES: 17%
Cardinal Health 2,200 120,450
Comcast Corp. * 4,600 135,102
Home Depot Inc. 4,100 127,920
Mattel, Inc. 5,400 104,922
Omnicom Group Inc. 2,100 155,148
Southwest Airlines 7,900 129,639
Wal Mart Stores Inc. 2,500 139,775
Walgreen Company 4,600 137,632
Walt Disney Co. 7,100 155,632
----------
Total (Cost: $1,218,441) 1,206,220
CONSUMER NON-CYCLICAL SECTOR SECURITIES: 7%
Anheuser-Busch Cos. Inc. 2,100 108,822
Fortune Brands Inc. 2,100 116,781
Pepsico Inc. 3,000 138,210
Procter & Gamble Company 1,500 131,805
----------
Total (Cost: $457,570) 495,618
ENERGY SECTOR SECURITIES: 4%
Apache Corp. 1,700 105,332
Exxon Mobile Corp 3,000 106,740
Nabor Industries Ltd* 2,600 93,080
----------
Total (Cost: $313,411) 305,152
FINANCIAL SECTOR SECURITIES: 17%
American Express 3,200 141,344
American International Group 2,800 179,760
Bank of America 1,800 148,626
Marsh & McClennan Cos 2,900 143,898
Merrill Lynch 3,500 190,295
North Fork Bankcorporation Inc. 4,000 140,200
Wells Fargo & Company 2,700 136,431
See accompanying notes to financial statements.
-8-
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
FINANCIAL SECTOR SECURITIES (CONTINUED) SHARES VALUE
---------- ----------
XL Capital LTD 1,700 $ 135,150
----------
Total (Cost: $1,143,176) 1,215,704
HEALTHCARE SECTOR SECURITIES: 15%
Abbott Laboratories 3,200 $ 125,600
Amgen Inc.* 2,900 201,348
Gilead Sciences* 1,800 122,814
Johnson & Johnson 3,400 176,086
Medtronic Inc. 3,800 195,700
Pfizer Inc. 5,000 166,800
United Health Group 2,000 104,180
----------
Total (Cost:$1,029,018) 1,092,528
INDUSTRIAL SECTOR SECURITIES: 10%
Boeing Co. 3,500 115,920
Caterpillar Inc. 2,500 168,675
FedEx Corp 2,200 141,658
First Data Corp. 3,300 124,608
United Technologies Corp. 1,700 127,891
----------
Total (Cost: $522,289) 678,752
TECHNOLOGY SECTOR SECURITIES: 21%
Cisco Systems Inc.* 7,650 149,098
Dell Computer Corporation * 4,300 144,824
International Business Machine 1,600 130,000
Illinois Tool Works Inc 2,100 146,265
Intel Corp. 6,200 154,318
Kla-Tencor Corp.* 2,600 134,295
Microsoft 6,500 171,665
Oracle Corporation * 8,400 100,716
Sungard Data Systems* 4,000 104,960
Symantec Corp* 2,500 116,925
Xilinx Inc.* 3,900 102,414
----------
Total (Cost:$1,351,295) 1,455,480
TELECOMMUNICATION SECTOR SECURITIES: 1%
Vodafone Group PLC ADR 5,400 102,492
----------
Total (Cost: $38,632) 102,492
See accompanying notes to financial statements.
-9-
ANALYSTS INVESTMENT TRUST
ANALYSTS STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
TOTAL COMMON STOCK (COST: $6,329,585) $6,860,001
MONEY MARKET MUTUAL FUND: 3.1%
US Bank, U.S. Treasury Money Market Fund
(Cost: $218,248) 218,248 218,248
----------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $6,547,833) 100.1% 7,078,249
LIABILITIES IN EXCESS OF ALL OTHER ASSETS (0.1%) (4,341)
----------
NET ASSETS 100% $7,073,908
==========
* Non-dividend paying investment.
See accompanying notes to financial statements.
-10-
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
COMMON STOCK: 30.6% SHARES VALUE
------ -----
Real Estate Investment Trusts: 27.1%
Annaly Mortgage Management 2,900 $ 55,535
Capital Automotive REIT 2,000 61,540
Carramerica Realty Corporation 1,400 40,894
Commercial Net Lease Realty Inc. 3,580 63,330
Duke Realty Corp 2,000 57,640
Equity Office Properties 2,000 55,480
First Industrial Realty Trust Inc. 3,200 96,960
Health Care Properties Investors Inc. 1,599 70,084
Hospitality Properties Trust 1,500 47,280
HRPT Properties Trust 2,350 21,831
Simon Property Group Inc. 1,650 69,878
Sovran Self Storage Inc. 2,100 66,591
Summitt Properties Inc. 3,500 74,025
--------
Total (Cost: $682,708) 781,068
Closed End Mutual Funds: 3.5%
Pioneer Interest Shares 9,000 99,540
--------
Total (Cost: $100,344) 99,540
TOTAL COMMON STOCK (COST: $783,052) 880,608
PREFERRED STOCKS: 11.6%
BAC Capital Trust II 2,000 50,800
Citigroup Capital VIII 2,000 51,380
Georgia Power Capital Trust IV 2,000 50,340
MBNA Capital E 1,000 26,290
Mississippi Power Capital Trust II 2,000 52,900
US Bancorp Capital IV 2,000 51,400
XL Capital LTD Series B 2,000 52,200
--------
TOTAL PREFERRED STOCK (COST: $336,368) 335,310
See accompanying notes to financial statements.
-11-
ANALYSTS INVESTMENT TRUST
ANALYSTS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
CORPORATE BONDS: 42.0% SHARES/
PAR VALUE VALUE
--------- -----
Consolidated National Gas Company 5.75%, 8/01/03 10,000 $ 10,000
American Telephone & Telegraph Company 6.75%, 4/1/04 50,000 51,630
NationsBank Corporation 7.75%, 8/15/04 50,000 53,180
Salomon Smith Barney 6.25%, 1/15/05 100,000 106,090
Pacific Bell Telephone Company 6.25%, 3/1/05 50,000 53,450
Loews Corporation 6.75%, 12/15/06 100,000 107,340
Household Bank CD 7.20%, 4/12/07 100,000 109,280
Entergy Mississippi Corporation 6.45%, 4/1/08 100,000 102,660
John Hancock 5.625%, 12/01/08 75,000 79,935
General Electric Capital Corporation 8.65%, 5/15/09 100,000 121,360
Target Corp 7.50%, 8/15/10 100,000 116,080
Union Planters Corp 7.75%, 03/01/11 75,000 86,273
Boeing Capital Corp 6.10%, 3/01/11 100,000 103,730
Credit Suisse First Boston USA Inc. 6.50%, 1/15/12 100,000 107,780
----------
TOTAL CORPORATE BONDS (COST: $1,158,576) 1,208,788
MORTGAGE - BACKED OBLIGATIONS: 3.6%
Paine Webber CMO Trust Series 1988-I, 8.6%, 4/1/18 495 535
FNMA REMIC 1992 Trust G53 Class J, 7.0%, 9/25/22 3,692 3,943
FNMA 1993 Trust 122 Class L, 6.5%, 1/25/23 3,545 3,577
FNMA REMIC 1993 Trust G 10 Class J, 5.0%, 3/25/23 17,936 17,940
FHLMC REMIC 1993 Trust 1602 Class BB, 6.1%, 4/15/23 5,000 5,049
Empire Federal Home Loan Owner Trust 1998-2 9.03%, 6/25/24 41,403 43,345
Green Tree Financial Corp TST 1997-A, 7.87%, 3/15/28 30,000 29,733
----------
TOTAL MORTGAGE - BACKED OBLIGATIONS (COST: $92,722) 104,122
MONEY MARKET MUTUAL FUND: 11.3%
US Bank, U.S. Treasury Money Market Fund (Cost $325,093) 325,093 325,093
----------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $2,695,812) 99.0% 2,853,921
ALL OTHER ASSETS LESS LIABILITIES 1.0% 27,470
------------
NET ASSETS 100% $ 2,881,391
============
See accompanying notes to financial statements.
-12-
ANALYSTS INVESTMENT TRUST
ANALYSTS AGGRESSIVE STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
COMMON STOCK: 89% SHARES VALUE
------ -----
CONSUMER CYCLICAL SECTOR SECURITIES: 14%
AOL Time Warner * 1,900 $ 29,317
Nordstrom Inc 1,500 31,665
RH Donnelly* 1,100 43,450
Staples Inc.* 1,500 30,210
Starbucks Corp.* 1,000 27,330
Walt Disney Co. 1,620 35,510
--------
Total (Cost: $235,561) 197,482
CONSUMER NON-CYCLICAL SECTOR SECURITIES: 8%
Albertsons Inc. 900 16,974
Archer Daniels Midland 2,100 27,594
Cendant* 2,500 44,875
Yahoo Inc.* 700 21,791
--------
Total (Cost: $ 95,185) 111,234
ENERGY SECTOR SECURITIES: 4%
Halliburton Co. 1,600 35,472
Noble Corporation* 800 26,296
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Total (Cost: $ 54,036) 61,768
FINANCIAL SECTOR SECURITIES: 12%
Charles Schwab 3,400 35,394
JP Morgan Chase 1,100 38,555
Morgan Stanley Dean Witter 800 37,952
Silicon Valley* 1,000 24,770
US Bancorp 1,800 44,136
--------
Total (Cost:$176,107) 180,807
HEALTHCARE SECTOR SECURITIES: 19%
Allergan Inc 500 40,240
Biomet Inc. 900 26,685
Biovail Corp.* 1,000 38,390
Gilead Sciences* 750 51,172
Medicis Pharmaceuticals Corp 900 52,560
Medimmune Inc.* 1,000 39,210
Teva Pharmaceuticals Ind 600 34,404
--------
Total (Cost: $239,102) 282,661
See accompanying notes to financial statements.
-13-
ANALYSTS INVESTMENT TRUST
ANALYSTS AGGRESSIVE STOCK FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JULY 31, 2003
INDUSTRIAL SECTOR SECURITIES: 10% SHARES VALUE
------- -----
Jabil Circuit* 1,200 27,660
L-3 Communications 900 44,172
Sherwin Williams Co. 1,000 30,000
Tyco International LTD 1,500 27,900
Waste Management Inc. 900 21,501
--------
Total (Cost: $143,438) 151,233
TECHNOLOGY SECTOR SECURITIES: 22%
Applied Materials* 1,900 36,974
BEA Systems* 2,400 31,680
Ciena Corp.* 3,800 21,888
Cisco Systems Inc.* 1,800 35,082
Citrix Systems Inc. * 2,060 37,472
Dell Computer Corporation * 1,000 33,680
JDS Uniphase Corp.* 4,700 14,147
KLA-Tencore Corp* 400 20,661
Motorola 2,150 19,436
Net I Q Corp* 1,800 19,566
Oracle Corporation * 2,201 26,390
Xilinx Inc.* 1,200 31,512
--------
Total (Cost: $391,778) 328,488
TOTAL COMMON STOCK (COST: $1,335,207) 1,313,673
MONEY MARKET MUTUAL FUND: 11%
US Bank, U.S. Treasury Money Market Fund
(Cost $159,339) 159,339 159,339
---------
TOTAL INVESTMENT SECURITIES AT VALUE (COST: $1,494,547)
100.2% 1,473,012
LIABILITIES IN EXCESS OF ALL OTHER ASSETS (0.2%) (2,861)
---------
NET ASSETS 100% $ 1,470,151
===========
*Non-dividend paying investment.
See accompanying notes to financial statements.
-14-
ANALYSTS INVESTMENT TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 2003
FIXED INCOME AGGRESSIVE
STOCK FUND FUND STOCK FUND
---------- ---- ----------
INVESTMENT INCOME:
Dividends $ 77,540 $ 91,729 $ 9,946
Interest -- 112,294 --
----------- ----------- -----------
Total Investment Income 77,540 204,023 9,946
EXPENSES:
Management Fee 129,408 54,784 33,827
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (51,868) 149,239 (23,881)
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized (losses) from security transactions (256,664) (127,413) (120,411)
Net change in net unrealized appreciation
(depreciation) on investments
1,122,849 143,034 438,686
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS
866,185 15,621 318,275
----------- ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS
$ 814,317 $ 164,860 $ 294,394
=========== =========== ===========
See accompanying notes to financial statements.
-15-
ANALYSTS INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED JULY 31, 2003 AND JULY 31, 2002
STOCK FUND FIXED INCOME FUND AGGRESSIVE STOCK FUND
---------- ----------------- ---------------------
FROM OPERATIONS: 2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Net investment income (loss) $ (51,868) $ (66,168) $ 149,239 $ 208,507 $ (23,881) $ (29,950)
Net realized (losses) from
security transactions (256,664) (577,341) (127,413) (17,931) (120,411) (603,908)
Net change in net unrealized
appreciation (depreciation)
on investments 1,122,849 (1,397,932) 143,034 124,217 438,686 (63,345)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations 814,317 (2,041,441) 164,860 314,793 294,394 (697,203)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- -- (151,100) (209,047) -- --
From capital gains -- --
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from
distributions to shareholders -- -- (151,100) (209,047) -- --
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 943,696 2,289,816 982,296 992,207 252,032 723,892
Net asset value of shares issued from
reinvestment of distributions to
shareholders -- -- 137,442 189,799 -- --
Payment for shares redeemed (1,355,195) (1,912,914) (3,281,744) (1,020,820) (184,118) (452,766)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) from fund
share transactions (411,499) 376,902 (2,162,006) 161,186 67,914 271,126
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 402,818 (1,664,539) (2,148,246) 266,932 362,308 (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 $ 7,073,908 $ 6,671,090 $ 2,881,391 $ 5,029,637 $ 1,470,151 $ 1,107,843
=========== =========== =========== =========== =========== ===========
Accumulated undistributed net
investment income (loss) $ (159,483) $ (107,615 $ 14,546 $ 16,407 $ (103,276) $ (79,395)
=========== =========== =========== =========== =========== ===========
See accompanying notes to financial statements.
-16-
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - STOCK FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31, 2003, 2002, 2001,
2000, AND 1999
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) (0.13) (0.16) 0.03 (0.05) 0.02
Net realized and unrealized gains
(losses) on securities 2.29 (4.72) (3.60) 2.35 3.56
--------- --------- ------------ --------- ---------
Total from investment operations 2.16 (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 $ 18.33 $ 16.17 $ 21.05 $ 26.15 $ 28.41
========= ========= ============ ========= =========
Total return 13.32% (23.17)% (13.51)% 14.21% 14.36%
========= ========= ============ ========= =========
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 7,074 $ 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 (0.80)% (0.81)% 0.12% (0.19)% 0.08%
Portfolio turnover rate 59.35% 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, 2003, 2002, 2001,
2000, AND 1999
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $ 13.61 $ 13.31 $ 12.67 $ 13.24 $ 14.27
Income (loss) from investment operations:
Net investment income 0.55 0.58 0.73 0.78 0.78
Net realized and unrealized gains
(losses) on securities 0.12 0.30 0.64 (0.51) (1.03)
--------- --------- --------- --------- ---------
Total from investment operations 0.67 0.88 1.37 0.27 (0.25)
Less distributions:
Dividends from net investment
income (0.56) (0.58) (0.73) (0.79) (0.78)
Dividends from capital gains 0.00 0.00 0.00 (0.05) 0.00
--------- --------- --------- --------- ---------
Total distributions (0.56) (0.58) (0.73) (0.84) (0.78)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 13.72 $ 13.61 $ 13.31 $ 12.67 $ 13.24
========= ========= ========= ========= =========
Total return 5.39% 6.77% 11.11% 2.32% (1.77)%
========= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period
(thousands) $ 2,881 $ 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 4.08% 4.30% 5.58% 6.24% 5.57%
Portfolio turnover rate 40.32% 21.18% 0.00% 11.30% 9.70%
See accompanying notes to financial statements.
-17-
ANALYSTS INVESTMENT TRUST
FINANCIAL HIGHLIGHTS - AGGRESSIVE STOCK FUND
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED JULY 31, 2003, 2002, 2001 AND
2000, AND THE PERIOD FROM INCEPTION (MAY 4, 1999) THROUGH JULY 31, 1999
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) (0.11) (0.16) (0.16) (0.17) (0.04)
Net realized and unrealized gains
(losses) on securities 1.57 (3.27) (3.12) 2.63 0.38
--------- --------- --------- --------- -------
Total from investment operations 1.46 (3.43) (3.28) 2.46 0.34
--------- --------- --------- --------- -------
Net asset value, end of period $ 7.07 $ 5.61 $ 9.04 $ 12.32 $ 9.86
========= ========= ========= ========= =======
Total return 26.03% (38.00)% (26.60)% 24.99% .77%*
========= ========= ========= ========= =======
Ratios/Supplemental Data:
Net assets, end of period (thousands) $ 1,470 $ 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 (1.94)% (2.02)% (1.58)% (1.32)% (1.68)%
Portfolio turnover rate 32.72% 76.33% 8.81% 1.36% 0.00%
*Annualized
See accompanying notes to financial statements.
-18-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
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) (the Funds), par value
0.001 per share. 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.
-19-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
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 2011 for federal income
tax purposes of approximately $890,000, $245,000 and $740,000,
respectively.
2. INVESTMENT TRANSACTIONS
Investment transactions in the Stock Fund, Fixed Income Fund and
Aggressive Stock Fund for the twelve months ended July 31, 2003 are as
follows:
FIXED AGGRESSIVE
STOCK FUND INCOME FUND STOCK FUND
---------- ----------- ----------
Purchase of investment securities $3,728,381 $1,228,875 $ 412,388
Proceeds from sales and maturities
of investment securities 4,194,018 2,857,541 356,270
The table above includes U.S. Government Securities sold by Analysts
Fixed Income Fund amounting to $113,125.00. There were no purchases or
sales of U.S. Government Securities by the Analysts Stock Fund or
Analysts Aggressive Stock fund during the year.
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Timothy E. Mackey is the President, and Dawn Szeliga is the Secretary,
of Equity Analysts, Inc. (the Adviser), registered investment adviser to
the Funds. The Adviser manages each Fund under the terms of Management
Agreements (the "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.
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:
-20-
ANALYSTS INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
Fixed AGGRESSIVE
AVERAGE DAILY ASSETS STOCK FUND INCOME FUND STOCK 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%
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 2001 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 July
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 FUND INCOME FUND STOCK FUND
---------- ----------- ----------
Shares sold 57,199 71,941 41,425
Shares issued from reinvestment
of distributions - 10,106 -
Shares redeemed (83,694) (241,587) (30,960)
-------- --------- -------
Net increase (26,495) (159,540) 10,465
Shares at beginning of period 412,495 369,515 197,551
-------- -------- -------
Shares at end of period 386,000 209,975 208,016
======== ======== =======
5. SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at July
31, 2003 was the same as identified cost. At July 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 $ 747,757 $ (217,342) $ 530,415
Fixed Income Fund 182,071 (23,963) 158,108
Aggressive Stock Fund 214,121 (235,656) (21,535)
-21-
INFORMATION REGARDING TRUSTEES AND OFFICERS (UNAUDITED)
Overall responsibility for management of the Funds rests with the
Board of Trustees. The Trustees serve during the lifetime of the Trust and until
its termination, or until death, resignation, retirement or removal.
The following table provides information regarding each Trustee who
is not an "interested person" of the Trust, as defined in the Investment Company
Act of 1940.
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Walter E. Bowles, III Trustee Trustee since 1993
6645 Miami Trails Drive
Loveland, Ohio
Year of Birth: 1961
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Walter E. Bowles, III has been President of Webco
Environmental Management, Inc., an environmental None
consulting firm, since September 1993.
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Robert W. Buechner Trustee Trustee since 1993
105 E. Fourth Street,
Suite 300
Cincinnati, Ohio
Year of Birth: 1947
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Robert W. Buechner is President of the law
firm Buechner, Haffer, O'Connell, None
Meyers & Healey Co., L.P.A.
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Chetan Damania Trustee Trustee since 2000
6830 Raven Court
Hamilton, Ohio
Year of Birth: 1962
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Chetan Damania has been an Engineer at Ethicon
Endo-Surgery since November 1995. None
- --------------------------------------------------------------------------------
The following table provides information regarding each Trustee who
is an "interested person" of the Trust, as defined in the Investment Company Act
of 1940, and each officer of the Trust.
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Timothy E. Mackey(1) President and Trustee Trustee since 2002;
7750 Montgomery Road President since 2002
Cincinnati, Ohio
Year of Birth: 1960
- --------------------------------------------------------------------------------
-22-
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Timothy E. Mackey has been President of None
Equity Analysts Inc. and Equity Analysts
LLC since April 2001. Prior to that he was
President of National Brokerage Company
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Dawn Szeliga(2) Trustee Trustee since 2002
7750 Montgomery Road
Cincinnati, Ohio
Year of Birth: 1955
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Dawn Szeliga has been operations manager for N/A
Equity Analysts, LLC. since January 2000.
Prior to that, she was an Investment
Relationship Manager at Fidelity Investments.
- --------------------------------------------------------------------------------
POSITION(S) HELD LENGTH OF
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED
- --------------------------------------------------------------------------------
Mark G. Srofe Secretary and Treasurer Officer since 2002
7750 Montgomery Road
Cincinnati, Ohio
Year of Birth: 1960
- --------------------------------------------------------------------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS
HELD BY TRUSTEE
- --------------------------------------------------------------------------------
Mark G. Srofe has been a portfolio manager for
Equity Analysts Inc. since 2002. Prior to that he held None
the position of investment specialist at Charles Schwab & Co.
- --------------------------------------------------------------------------------
(1) Mr. Mackey is an "interested person" of the Trust because he is an officer
of the Trust and of the Adviser.
(2) Ms. Szeliga is an "interested person" of the Trust because she is an
officer of the Adviser.
Additional information about members of the Board of Trustees and the executive
officers is available in the Statement of Additional Information (SAI). To
obtain a free copy of the SAI, please call 513-792-5425.
-23-
TRUSTEES AND OFFICERS
Timothy E. Mackey
President & Trustee
Mark Srofe
Treasurer & Secretary
Dawn Szeliga
Trustee
Walter E. Bowles, III
Trustee
Robert W. Buechner
Trustee
Chetan Demania
Trustee
- --------------------------------------------------------------------------------
INVESTMENT ADVISER
Equity Analysts Inc.
7750 Montgomery Road
Cincinnati, OH 45236
513-792-5400
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
GENERAL COUNSEL
Thompson Hine LLP
312 Walnut Street 14th Floor
Cincinnati, OH 45202
AUDITORS
BKD, LLP
312 Walnut Street, Suite 3000
Cincinnati, OH 45202
-24-
ITEM 2. CODE OF ETHICS.
(a) As of the end of the period covered by this report, the registrant has
adopted a code of ethics that applies to the registrant's principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party.
(b) For purposes of this item, "code of ethics" means written standards that are
reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling
of actual or apparent conflicts of interest between
personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure
in reports and documents that a registrant files with, or
submits to, the Commission and in other public
communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to
an appropriate person or persons identified in the code;
and
(5) Accountability for adherence to the code.
(c) Amendments: During the period covered by the report, there have not been any
amendments to the provisions of the code of ethics.
(d) Waivers: During the period covered by the report, the registrant has not
granted any express or implicit waivers from the provisions of the code of
ethics.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) The registrant's board of trustees has determined that the registrant
does not have an audit committee financial expert serving on its
audit committee. The audit committee determined that, although none
of its members meet the technical definition of an audit committee
financial expert, the members have sufficient financial expertise to
address any issues that are likely to come before the committee. It
was the consensus of the audit committee members that it is not
necessary at the present time for the committee to have an audit
committee financial expert and that, if novel issues ever arise, the
committee will consider hiring an expert to assist it as needed.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable.
(a) AUDIT FEES
FY [year] $ NA
-------- ------------------
FY [year] $ NA
-------- ------------------
-25-
(b) AUDIT-RELATED FEES
REGISTRANT ADVISER
FY [year] $ NA $ NA
-------- ------------------ -----------------
FY [year] $ NA $ NA
-------- ------------------ -----------------
Nature of the fees:
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
(c) TAX FEES
REGISTRANT [ADVISER]
FY [year] $ NA $ NA
-------- ------------------ -----------------
FY [year] $ NA $ NA
-------- ------------------ -----------------
Nature of the fees:
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
(d) ALL OTHER FEES
REGISTRANT [ADVISER]
FY [year] $ NA $ NA
-------- ------------------ --------------------
FY [year] $ NA $ NA
-------- ------------------ --------------------
Nature of the fees:
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
(e) (1) AUDIT COMMITTEE'S PRE-APPROVAL POLICIES
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
-26-
(2) PERCENTAGES OF SERVICES APPROVED BY THE AUDIT COMMITTEE
REGISTRANT [ADVISER]
Audit-Related Fees: NA % NA %
--------------- ----------
Tax Fees: NA % NA %
--------------- ----------
All Other Fees: NA % NA %
--------------- ----------
(f) During audit of registrant's financial statements for the most recent fiscal
year, less than 50 percent of the hours expended on the principal accountant's
engagement were attributed to work performed by persons other than the principal
accountant's full-time, permanent employees.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's investment
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser),
and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant:
REGISTRANT [ADVISER]
FY [year] $ NA $ NA
-------- ------------------ -------------------
FY [year] $ NA $ NA
-------- ------------------ -------------------
(h) The registrant's audit committee NA [has/has not] considered whether the
provision of non-audit services to the registrant's investment adviser (not
including any sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant, that were not pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible
with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED COMPANIES. Not applicable.
ITEM 6. RESERVED.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END FUNDS.
Not applicable.
ITEM 8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of September 30, 2003, the disclosure controls and procedures are
reasonably designed to ensure that the information required in filings on Forms
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that have materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
-27-
ITEM 10. EXHIBITS.
(a)(1) Not applicable.[see Item 2.]
(a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 10(b) of Form N-CSR is filed
herewith.
(a)(1) Annual reports only: 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. (registrant may file the Code of Ethics, or state in the annual report
that 1) the Code is available on website (give address) or 2) state that the
Code is available on request without charge, and explain how to request a copy.
This Exhibit is named "EX-99.CODE ETH" for EDGAR filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2). This Exhibit is named "EX-99.CERT" for EDGAR filing.
(b) Provide the 906 Certification as required by Rule 30a-2(b). This Exhibit is
named "EX-99.906CERT" for EDGAR filing.]
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 OCTOBER 9, 2003
----------------------------------------------------------------------------
-28-
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 OCTOBER 9, 2003
----------------------------------------------------------------------------
By (Signature and Title)
* /S/
-------------------------------------------------------------------------------
Mark G. Srofe, Treasurer
Date OCTOBER 9, 2003
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.
-29-