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 811-07582
The Valiant Fund
--------------------------------------------------
(Exact name of registrant as specified in charter)
221 Pensacola Boulevard, Venice, FL, 34285
--------------------------------------------------
(Address of principal executive offices) (Zip code)
Denis R. Curcio
221 Pensacola Boulevard, Venice, FL, 34285
--------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-242-9340
Date of fiscal year end: 8/31/06
Date of reporting period: 8/31/06
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.
The registrant's annual report transmitted to stockholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
THE VALIANT FUND
ANNUAL REPORT
AUGUST 31, 2006
THE VALIANT FUND
Annual Report August 31, 2006
Table of Contents
PAGE
Fees and Expenses Table 1
U.S. TREASURY MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments 3
Statement of Assets and Liabilities 4
Statement of Operations 4
Statements of Changes in Net Assets 5
Financial Highlights 6
GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments 8
Statement of Assets and Liabilities 11
Statement of Operations 11
Statements of Changes in Net Assets 12
Financial Highlights 13
TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments 15
Statement of Assets and Liabilities 17
Statement of Operations 17
Statements of Changes in Net Assets 18
Financial Highlights 19
Notes to Financial Statements 20
Report of Independent Auditors 27
Management of the Trust 28
Approval of Advisory Agreement 30
Fees and Expenses (unaudited)
As a shareholder of the Valiant Fund, you incur advisory fees and distribution
(12b-1) fees. All other Fund expenses are paid by the advisor. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other
mutual funds. The example is based on an investment of $1,000 invested at the
beginning of the period and held through the six months ended August 31, 2006.
ACTUAL EXPENSES
The first line for each share class in the following tables provides information
about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that
you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line under the heading Expenses Paid During
the Six-Month Period to estimate the expenses you paid on your account during
this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each share class in the following tables provides
information about hypothetical account values and hypothetical expenses based on
the Porfolios actual expense ratio and an assumed rate of return of 5% per year
before expenses, which is not the Portfolios actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Funds and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only, and do not reflect any transactional costs such as sales
charges (loads). Therefore the second line for each share class in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
BEGINNING ENDING ANNUALIZED
ACCOUNT ACCOUNT EXPENSE RATIO EXPENSES PAID
VALUE VALUE BASED ON THE DURING THE
03/01/06 08/31/06 SIX-MONTH PERIOD SIX-MONTH PERIOD*
U.S. TREASURY MONEY MARKET PORTFOLIO - CLASS A
Actual $1,000.00 $1,024.00 0.20% $1.02
Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02
U.S. TREASURY MONEY MARKET PORTFOLIO - CLASS B
Actual $1,000.00 $1,022.73 0.45% $2.29
Hypothetical (5% return before expenses) $1,000.00 $1,022.94 0.45% $2.29
U.S. TREASURY MONEY MARKET PORTFOLIO - CLASS D
Actual $1,000.00 $1,021.45 0.70% $3.57
Hypothetical (5% return before expenses) $1,000.00 $1,021.68 0.70% $3.57
1
Fees and Expenses (unaudited)
U.S. TREASURY MONEY MARKET PORTFOLIO - CLASS E
Actual $1,000.00 $1,019.92 1.00% $5.09
Hypothetical (5% return before expenses) $1,000.00 $1,020.16 1.00% $5.09
GENERAL MONEY MARKET PORTFOLIO - CLASS A
Actual $1,000.00 $1,024.06 0.20% $1.02
Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02
GENERAL MONEY MARKET PORTFOLIO - CLASS B
Actual $1,000.00 $1,031.16 0.45% $2.30
Hypothetical (5% return before expenses) $1,000.00 $1,022.94 0.45% $2.29
GENERAL MONEY MARKET PORTFOLIO - CLASS D
Actual $1,000.00 $1,021.97 0.70% $3.57
Hypothetical (5% return before expenses) $1,000.00 $1,021.68 0.70% $3.57
GENERAL MONEY MARKET PORTFOLIO - CLASS E
Actual $1,000.00 $1,020.44 1.00% $5.09
Hypothetical (5% return before expenses) $1,000.00 $1,020.16 1.00% $5.09
TAX-EXEMPT MONEY MARKET PORTFOLIO - CLASS A
Actual $1,000.00 $1,016.34 0.20% $1.02
Hypothetical (5% return before expenses) $1,000.00 $1,024.20 0.20% $1.02
TAX-EXEMPT MONEY MARKET PORTFOLIO - CLASS B
Actual $1,000.00 $1,015.07 0.45% $2.29
Hypothetical (5% return before expenses) $1,000.00 $1,022.94 0.45% $2.29
* EXPENSES FOR EACH PORTFOLIO ARE CALCULATED USING THE PORTFOLIO S ANNUALIZED
EXPENSE RATIO FOR EACH FUND, WHICH REPRESENTS THE ONGOING EXPENSES AS A
PERCENTAGE OF NET ASSETS FOR THE SIX-MONTHS ENDED 08/31/06. EXPENSES ARE
CALCULATED BY MULTIPLYING THE ANNUALIZED EXPENSE RATIO BY THE AVERAGE ACCOUNT
VALUE FOR THE PERIOD; THEN MULTIPLYING THE RESULT BY THE NUMBER OF DAYS IN THE
MOST RECENT FISCAL HALF-YEAR; AND THEN DIVIDING THAT RESULT BY THE NUMBER OF
DAYS IN THE CALENDAR YEAR. EXPENSE RATIOS FOR THE MOST RECENT FISCAL HALF-YEAR
MAY DIFFER FROM EXPENSE RATIOS BASED ON THE ONE-YEAR DATA IN THE FINANCIAL
HIGHLIGHTS.
2
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
---- -------- ------------ ------------
U.S. TREASURY OBLIGATIONS - 53.4%
U.S. TREASURY BILLS(A) - 41.4%
5.09% 9/7/06 $ 85,000,000 $ 84,928,033
------------
U.S. TREASURY NOTES - 12.0%
3.125 5/15/07 25,000,000 24,690,337
------------
TOTAL U.S. TREASURY OBLIGATIONS (AMORTIZED COST $109,618,370) 109,618,370
------------
REPURCHASE AGREEMENTS - 46.8%
Bank of America, Inc., 5.23%, due 9/1/06,
with a maturity value of $21,103,065
(Collateralized by various 4.78% - 5.346% GNMA bonds valued at $21,522,000
with maturity dates 5/16/27 - 7/16/36) 21,100,000 21,100,000
Citigroup, Inc., 5.23%, due 09/01/06,
with a maturity value of $25,003,632
(Collateralized by various 4.465% - 6.0% GNMA bonds valued at $25,500,000
with maturity dates 10/16/33 - 8/15/36) 25,000,000 25,000,000
Goldman Sachs Inc., 5.24%, due 9/1/06,
with a maturity value of $25,003,639
(Collateralized by various 6.5% - 7.0% GNMA bonds valued at $25,500,000
with maturity dates various 12/15/32 - 25,000,000 25,000,000
12/15/34)
UBS Paine Webber, 5.24%, due 9/1/06,
with a maturity value of $25,003,639
(Collateralized by various 4.0% - 10.0% GNMA bonds valued at $25,500,245
with maturity dates 11/15/09 - 8/15/36) 25,000,000 25,000,000
------------
TOTAL REPURCHASE AGREEMENTS (AMORTIZED COST $96,100,000) 96,100,000
------------
TOTAL INVESTMENTS (AMORTIZED COST $205,718,370) (B) - 100.2% 205,718,370
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.2%) (399,501)
------------
TOTAL NET ASSETS - 100% $205,318,869
============
(a) Interest rate represents yield to maturity at purchase.
(b) Cost and value for federal income tax and financial reporting purposes are
the same.
GNMA - Government National Mortgage Association
VALIANT U.S. TREASURY MONEY MARKET PORTFOLIO
U.S. Treasury Obligation 53.4%
Repurchase Agreements 46.8
-----
100.2
Liabilities In Excess of Other Assets (0.2)
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
3
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2006
ASSETS:
Investments at value (amortized cost $109,618,370) $109,618,370
Repurchase agreements (amortized cost $96,100,000) 96,100,000
------------
Total investments 205,718,370
Cash 81,266
Receivables:
Interest 245,378
Other assets 4,106
------------
TOTAL ASSETS 206,049,120
LIABILITIES:
Payables:
Dividends $ 593,817
Accrued expenses and other liabilities:
Investment manager 35,740
Distribution and shareholder servicing 100,694
------------
TOTAL LIABILITIES 730,251
------------
NET ASSETS $205,318,869
============
COMPOSITION OF NET ASSETS:
Capital $205,569,311
Accumulated net realized loss from
investment transactions (250,442)
------------
NET ASSETS $205,318,869
============
Class A Shares
Net assets $ 1,530,917
Shares outstanding (unlimited number of shares authorized with no par value) 1,532,776
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
============
Class B Shares
Net assets $ 48,666,786
Shares outstanding (unlimited number of shares authorized with no par value) 48,727,345
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
============
Class D Shares
Net assets $ 83,742,612
Shares outstanding (unlimited number of shares authorized with no par value) 83,844,868
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
============
Class E Shares
Net assets $ 71,378,554
Shares outstanding (unlimited number of shares authorized with no par value) 71,464,327
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
============
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2006
INVESTMENT INCOME:
Interest $ 9,393,568
-------------
TOTAL INVESTMENT INCOME 9,393,568
EXPENSES:
Investment manager $ 419,927
Distribution and shareholder servicing:
Class A Shares 4,537
Class B Shares 230,876
Class D Shares 541,295
Class E Shares 275,549
Trustees fees 9,870
-------------
Total expenses before contractual
fee reimbursements 1,482,054
Contractual fee reimbursements (80,372)
-------------
NET EXPENSES 1,401,682
-------------
NET INVESTMENT INCOME 7,991,886
-------------
NET REALIZED GAIN FROM INVESTMENT
TRANSACTIONS 1,215
-------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 7,993,101
=============
The accompanying notes are an integral part of these financial statements.
4
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 2006 AUGUST 31, 2005
--------------- ---------------
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 7,991,886 $ 4,810,500
Net realized gain from investment transactions 1,215 21
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 7,993,101 4,810,521
------------- -------------
DIVIDENDS:
Net investment income:
Class A Shares (54,812) (18,995)
Class B Shares (2,596,109) (1,663,384)
Class D Shares (4,026,258) (2,912,706)
Class E Shares (1,314,707) (263,030)
------------- -------------
TOTAL DIVIDENDS TO SHAREHOLDERS (7,991,886) (4,858,115)
------------- -------------
DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS (NOTE 4) (29,647,057) (67,502,822)
------------- -------------
NET DECREASE IN NET ASSETS (29,645,842) (67,550,416)
NET ASSETS:
Beginning of period 234,964,711 302,515,127
------------- -------------
End of period (including accumulated undistributed
net investment income of $0 and $0, respectively.) $ 205,318,869 $ 234,964,711
============= =============
The accompanying notes are an integral part of these financial statements.
5
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income 0.043 0.023 0.009 0.012 0.021
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income (0.043) (0.023) (0.009) (0.012) (0.021)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 4.34% 2.31% 0.92% 1.22% 2.05%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 1,531 $ 1,186 $ 339 $ 7,159 $ 7,260
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 4.23% 2.58% 0.87% 1.21% 2.12%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.040 0.020 0.007 0.010 0.018
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.040) (0.020) (0.007) (0.010) (0.018)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 4.08% 2.06% 0.67% 0.96% 1.80%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 48,667 $ 85,223 $ 89,633 $ 126,617 $ 146,246
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of expenses to average net assets 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to average net assets 3.94% 2.05% 0.65% 0.95% 1.77%
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes
reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
6
THE VALIANT FUND
U.S. TREASURY MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS D SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.038 0.018 0.004 0.008 0.015
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.038) (0.018) (0.004) (0.008) (0.015)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 3.82% 1.80% 0.42% 0.71% 1.54%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 83,743 $ 132,938 $ 197,640 $ 286,191 $ 325,896
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of expenses to average net assets 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income to average net assets 3.72% 1.70% 0.41% 0.71% 1.54%
FINANCIAL HIGHLIGHTS, CLASS E SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.035 0.015 0.001 0.005 0.013
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.035) (0.015) (0.001) (0.005) (0.013)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 3.52% 1.50% 0.12% 0.41% 1.24%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 71,378 $ 15,617 $ 14,903 $ 28,437 $ 105,257
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets 3.82% 1.55% 0.10% 0.48% 1.32%
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes
reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
7
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
------ -------- ------------ ------------
COMMERCIAL PAPER - 32.4%
EDUCATION - 2.9%
Johns Hopkins University 5.38% 10/05/06 $12,300,000 $ 12,300,000
------------
FINANCE - 9.4%
Govco, Inc. 5.28 11/13/06 20,000,000 19,785,867
Private Export Fund Corp. 5.35 09/12/06 20,000,000 19,967,305
------------
39,753,172
------------
INDUSTRIES - 9.4%
Yorkshire Building Society 5.29 11/09/06 20,000,000 19,797,217
Walnut Energy Center Authority 5.29 10/12/06 20,000,000 19,879,506
------------
39,676,723
------------
SPECIAL PURPOSE ENTITY - 10.7%
Lexington Parker Capital 5.27 09/14/06 20,000,000 19,961,939
Windmill Funding Corp. 5.34 09/06/06 25,000,000 24,981,458
------------
44,943,397
------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $136,673,292) 136,673,292
------------
CORPORATE OBLIGATIONS* - 18.8%
FINANCIAL SERVICES - 7.3%
Bank of America 5.32 09/01/06 10,000,000 10,000,000
Merrill Lynch & Co. 5.29 09/14/06 10,000,000 10,000,000
Vista Funding 5.63 09/07/06 435,000 435,000
Royal Bank of Canada 5.60 08/10/07 10,235,000 10,235,000
------------
30,670,000
------------
FOOD - 0.1%
Jacksons Food Stores, Inc. 5.35 09/07/06 588,000 588,000
------------
HEALTH SERVICES - 1.1%
Gastroenterology Associates, LLC 5.33 09/07/06 2,285,000 2,285,000
Louisiana Endoscopy Floater 5.33 09/07/06 1,510,000 1,510,000
Riverview Medical Office Building 5.38 09/07/06 700,000 700,000
------------
4,495,000
------------
LEISURE - 1.0%
Commonwealth Country Club, Ltd. 5.38 09/07/06 3,120,000 3,120,000
Sandusky Yacht Club 5.35 09/07/06 1,135,000 1,135,000
------------
4,255,000
------------
REAL ESTATE - 3.5%
208 Associates LLC 5.35 09/07/06 805,000 805,000
Aztec Properties LLC 5.33 09/07/06 1,893,000 1,893,000
CMW Real Estate LLC 5.38 09/07/06 2,140,000 2,140,000
El Dorado Enterprises of Miami FL 5.43 09/07/06 8,010,000 8,010,000
G & J Properties II 5.33 09/07/06 890,000 890,000
Ordeal Properties LLC 5.35 09/07/06 1,210,000 1,210,000
------------
14,948,000
------------
The accompanying notes are an integral part of these financial statements.
8
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
------ -------- ------------ ------------
SPECIAL PURPOSE ENTITY - 5.8%
Approach Partnership 5.35% 09/07/06 $ 1,000,000 $ 1,000,000
Barry-Wehmiller Group 5.33 09/07/06 990,000 990,000
Best One Tire & Service 5.33 09/07/06 900,000 900,000
Butler County, Surgical Properties 5.33 09/07/06 1,310,000 1,310,000
Bybee Foods LLC 5.35 09/07/06 3,000,000 3,000,000
Chuo Mubea Suspe Chuomuo 5.33 09/07/06 275,000 275,000
Denver LLC 5.63 09/07/06 360,000 360,000
Exal Corp. 5.33 09/07/06 1,195,000 1,195,000
FE, LLC 5.28 09/07/06 850,000 850,000
GCG Portage LLC 5.43 09/07/06 1,180,000 1,180,000
GMC Financing, LLC 5.33 09/07/06 2,615,000 2,615,000
ISO Building LLC 5.33 09/07/06 800,000 800,000
K. C. Jordan & Associates 5.33 09/07/06 700,000 700,000
MMR Development Co. 5.33 09/07/06 1,050,000 1,050,000
Physicians Center LP 5.33 09/07/06 3,070,000 3,070,000
Taylor Steel, Inc. 5.35 09/07/06 1,975,000 1,975,000
Village Enterprises 5.35 09/07/06 970,000 970,000
Wellington Green LLC 5.35 09/07/06 2,160,000 2,160,000
------------
24,400,000
------------
TOTAL CORPORATE OBLIGATIONS (AMORTIZED COST $79,356,000) 79,356,000
------------
CERTIFICATE OF DEPOSIT - 32.0%
BANKING - 32.0%
AmSouth Bank 5.46 10/19/06 25,000,000 25,000,000
CALYON Bank 5.26 01/19/07 10,000,000 10,000,094
CALYON Bank 5.43 06/04/07 10,000,000 10,000,363
Marshall & Ilsy Bank 5.48 10/10/06 20,000,000 20,000,000
Royal Bank of Scotland 4.81 01/16/07 10,000,000 10,000,181
Union Bank of Switzerland 5.33 09/20/06 20,000,000 20,000,000
Wells Fargo 4.87 01/31/07 10,000,000 9,999,772
Wells Fargo 5.25 04/20/07 10,000,000 10,000,000
Wilmington 5.46 10/20/06 20,000,000 20,000,564
------------
TOTAL CERTIFICATE OF DEPOSIT (AMORTIZED COST $135,000,974) 135,000,974
------------
MUNICIPAL NOTES AND BONDS* - 5.7%
ALABAMA - 1.4%
Auburn Taxable Revenue, Series B 5.33 09/07/06 5,750,000 5,750,000
------------
ILLINOIS - 1.1%
Upper Illinois River Valley Development Authority 5.35 09/07/06 4,595,000 4,595,000
------------
MICHIGAN - 0.9%
Michigan City Industrial Economic Development Revenue 5.33 09/07/06 1,400,000 1,400,000
Michigan Public Education Facilities Authority Revenue 5.70 08/31/07 2,615,000 2,615,000
------------
4,015,000
------------
NEW YORK - 1.6%
Albany New York Individual Agency Civic Facility Revenue 5.33 09/07/06 2,000,000 2,000,000
Baird Properties LLC 5.40 09/07/06 1,820,000 1,820,000
IHA Capital Development Corp. 5.33 09/07/06 1,500,000 1,500,000
New York City NY Individual Development Agycivic Facility Revenue 5.31 09/07/06 1,435,000 1,435,000
------------
6,755,000
------------
OHIO - 0.6%
Hopkins Waterhouse LLC 5.38 09/07/06 807,000 807,000
Mercer County, HealthCare Facilities 5.33 09/01/06 1,825,000 1,825,000
------------
2,632,000
------------
VIRGINIA - 0.1%
Ashland Industrial Development Authority 5.55 09/07/06 290,000 290,000
------------
TOTAL MUNICIPAL NOTES AND BONDS (AMORTIZED COST $24,037,000) 24,037,000
------------
The accompanying notes are an integral part of these financial statements.
9
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
------ -------- ------------ ------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 7.1%
Federal Home Loan Mortgage Corp. 4.25% 10/23/06 $ 10,000,000 $ 10,000,000
Federal Home Loan Bank 5.55 08/08/07 10,000,000 10,000,000
Federal Home Loan Bank 5.58 08/14/07 10,000,000 10,000,000
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (AMORTIZED COST $30,000,000) 30,000,000
------------
REPURCHASE AGREEMENT - 3.9%
Bank of America, Inc., 5.23%, due 9/01/06,
with a maturity value of $16,502,397.08
(Collateralized by various 5.5% - 6.5% GNMA bonds valued at $16,830,000
with maturity dates 4/20/28 - 2/16/32) 16,500,000 16,500,000
------------
TOTAL REPURCHASE AGREEMENTS (AMORTIZED COST $16,500,000) 16,500,000
------------
TOTAL INVESTMENTS (AMORTIZED COST $421,567,266) (A) - 99.9% 421,567,266
OTHER ASSETS LESS LIABILITIES - 0.1% 172,028
------------
TOTAL NET ASSETS - 100% $421,739,294
============
================================================================================
* Variable rate investment. Securities payable on demand at par including
accrued interest (usually within seven days notice) and unconditionally
secured as to principal and interest by letters of credit or other credit
support agreements from major banks. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown represents the rate in effect at August Maturity date shown
reflects next 31, 2006. rate change date.
(a) The cost of investments for federal income tax purposes at August 31, 2006
is $421,567,933.
GNMA - Government National Mortgage Association
LLC - Limited Liability Corporation
LP - Limited Partnership
VALIANT GENERAL MONEY MARKET PORTFOLIO
Commercial Paper 32.4%
Corporate Obligations 18.8
Certificate of Deposit 32.0
Municipal Notes and Bonds 5.7
U.S. Government & Agency Obligations 7.1
Repurchase Agreement 3.9
-----
99.9
Other Assets less Liabilities 0.1
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
10
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2006
ASSETS:
Investments, at value (amortized cost $405,067,266) $ 405,067,266
Repurchase agreements (amortized cost $16,500,000) 16,500,000
-------------
Total investments 421,567,266
Cash 84,396
Receivables:
Interest 2,368,617
Other assets 8
-------------
TOTAL ASSETS 424,020,287
LIABILITIES:
Payables:
Dividends $ 2,142,645
Accrued expenses and other liabilities:
Investment manager 85,074
Distribution and shareholder servicing 53,274
-------------
TOTAL LIABILITIES 2,280,993
-------------
NET ASSETS $ 421,739,294
=============
COMPOSITION OF NET ASSETS:
Capital $ 421,793,136
Accumulated net realized loss from
investment transactions (53,842)
-------------
NET ASSETS $ 421,739,294
=============
Class A Shares
Net assets $ 317,711,370
Shares outstanding (unlimited number of shares authorized with no par value) 317,768,689
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
=============
Class B Shares
Net assets $97,683
Shares outstanding (unlimited number of shares authorized with no par value) 97,706
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
=============
Class D Shares
Net assets $65,176,927
Shares outstanding (unlimited number of shares authorized with no par value) 65,189,382
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
=============
Class E Shares
Net assets $38,753,314
Shares outstanding (unlimited number of shares authorized with no par value) 38,766,628
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2006
INVESTMENT INCOME:
Interest $ 21,749,291
------------
TOTAL INVESTMENT INCOME 21,749,291
EXPENSES:
Investment manager $ 935,160
Distribution and shareholder servicing:
Class A Shares 1,288,153
Class B Shares 335
Class D Shares 320,901
Class E Shares 282,084
Trustees fees 22,307
------------
Total expenses before contractual
fee reimbursements 2,848,940
Contractual fee waivers and
expense reimbursements (1,310,556)
------------
NET EXPENSES 1,538,384
------------
NET INVESTMENT INCOME 20,210,907
------------
NET REALIZED LOSS FROM INVESTMENT
TRANSACTIONS (667)
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 20,210,240
============
The accompanying notes are an integral part of these financial statements.
11
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 2006 AUGUST 31, 2005
--------------- ---------------
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 20,210,907 $ 9,890,713
Net realized loss from investment transactions (667) (22)
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 20,210,240 9,890,691
------------- -------------
DIVIDENDS:
Net investment income:
Class A Shares (16,401,785) (8,222,301)
Class B Shares (3,947) (28,849)
Class D Shares (2,533,211) (1,047,613)
Class E Shares (1,271,964) (591,950)
------------- -------------
TOTAL DIVIDENDS TO SHAREHOLDERS (20,210,907) (9,890,713)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS (NOTE 4) 58,348,826 (4,761,334)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 58,348,159 (4,761,356)
NET ASSETS:
Beginning of year 363,391,135 368,152,491
End of year (including accumulated undistributed net
investment income of $0 and $0, respectively) $ 421,739,294 $ 363,391,135
============= =============
The accompanying notes are an integral part of these financial statements.
12
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.044 0.024 0.010 0.013 0.022
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.044) (0.024) (0.010) (0.013) (0.022)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 4.45% 2.42% 1.01% 1.29% 2.24%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 317,711 $ 273,911 $ 256,923 $ 364,392 $ 357,676
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 4.46% 2.40% 0.99% 1.28% 2.22%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.041 0.021 0.008 0.010 0.019
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.041) (0.021) (0.008) (0.010) (0.019)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 4.22% 2.16% 0.76% 1.04% 1.98%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 98 $ 103 $ 5,064 $ 10,620 $ 15,719
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.50% 0.55% 0.55%
Ratio of expenses to average net assets 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of net investment income to average net assets 4.12% 1.53% 0.74% 1.03% 1.91%
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes
reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
13
THE VALIANT FUND
GENERAL MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS D SHARES
FOR THE YEAR ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.039 0.019 0.005 0.007 0.016
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.039) (0.019) (0.005) (0.007) (0.016)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 3.96% 1.91% 0.50% 0.79% 1.73%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 65,177 $ 53,722 $ 59,116 $ 74,943 $ 40,662
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of expenses to average net assets 0.70% 0.70% 0.70% 0.70% 0.70%
Ratio of net investment income to average netassets 3.95% 1.87% 0.50% 0.73% 1.55%
FINANCIAL HIGHLIGHTS, CLASS E SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.036 0.016 0.002 0.005 0.014
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.036) (0.016) (0.002) (0.005) (0.014)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 3.65% 1.61% 0.20% 0.49% 1.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 38,753 $ 35,655 $ 47,050 $ 58,005 $ 83,742
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets 3.61% 1.54% 0.20% 0.51% 1.45%
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes
reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
14
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
------ -------- ------------ ------------
COMMERCIAL PAPER -8.5%
FLORIDA - 3.8%
Hillsborough County 3.75% 11/9/06 $ 2,100,000 $ 2,100,000
Sarasota County Public Hospital 3.46 9/7/06 4,050,000 4,050,000
------------
6,150,000
------------
PENNSYLVANIA -4.7%
Delaware County 3.43 9/7/06 7,625,000 7,625,000
------------
TOTAL COMMERCIAL PAPER (AMORTIZED COST $13,775,000) 13,775,000
------------
MUNICIPAL BONDS AND NOTES - 12.3%
FLORIDA - 5.5%
Palm Beach County School District, TAN 4.00 9/28/06 4,000,000 4,002,875
Jacksonville Health Facilities Authority Hospital 3.75 1/17/07 5,000,000 5,000,000
------------
9,002,875
------------
INDIANA - 1.6%
Elkhart Community Schools 4.35 12/29/06 2,500,000 2,508,074
------------
NEW HAMPSHIRE - 3.7%
Belknap County TAN 4.50 12/28/06 6,000,000 6,012,893
------------
UTAH - 1.5%
Davis County Tax and Revenue Anticipatory Notes 4.50 12/28/06 2,500,000 2,506,319
------------
TOTAL MUNICIPAL BONDS AND NOTES (AMORTIZED COST $20,030,161) 20,030,161
------------
VARIABLE MUNICIPAL BONDS* - 79.0%
ALABAMA - 1.5%
Birmingham Special Care Facilities Authority Revenue 3.53 9/7/06 2,500,000 2,500,000
------------
CONNECTICUT - 3.4%
Connecticut State Special Tax Obligation Revenue 3.44 9/6/06 5,500,000 5,500,000
------------
FLORIDA - 50.6%
ABN AMRO Munitops Certificates of Trust 3.45 9/7/06 3,650,000 3,650,000
ABN AMRO Munitops Certificates of Trust 3.45 9/7/06 3,500,000 3,500,000
Dade County Individual Development Authority 3.45 9/6/06 4,090,000 4,090,000
Dade County Water and Sewer Systems Revenue 3.39 9/6/06 2,500,000 2,500,000
Florida Housing Finance Corp., Multi-Family Revenue,
Charleston, Series I-A 3.42 9/7/06 6,750,000 6,750,000
Florida State Board of Education 3.45 9/7/06 2,500,000 2,500,000
Florida State Board of Education Public Education 3.45 9/7/06 5,965,000 5,965,000
Florida State Municipal Power Agency Revenue, Stanton Project 3.45 9/6/06 1,000,000 1,000,000
Halifax Hospital Medical Center, Health Care Facilities Revenue 3.41 9/6/06 1,200,000 1,200,000
Jacksonville Pollution Control Revenue 3.64 9/1/06 2,000,000 2,000,000
Jacksonville Economic Development Commission Health Care
Facilities Revenue, Series A LOC Fortis Banque Belgium,
JP Morgan Chase Bank 3.42 9/7/06 2,000,000 2,000,000
Jacksonville Health Facilities Authority Hospital Revenue 3.55 9/6/06 2,500,000 2,500,000
Lakeland Educational Facilities Revenue 3.40 9/6/06 2,000,000 2,000,000
Lee County Industrial Development Authority Healthcare Facility 3.60 9/1/06 2,740,000 2,740,000
Marion County Hospital District Revenue 3.43 9/6/06 5,275,000 5,275,000
Orange County HFA Multifamily Revenue 3.43 9/6/06 1,800,000 1,800,000
Orange County Industrial Development Authority, IDR, LOC U.S. 3.55 10/1/06 1,420,000 1,420,000
Bank Trust N.A
Orlando Utilities Commission Water & Electric Revenue, Series B 3.41 9/6/06 7,000,000 7,000,000
Palm Beach County Revenue, Norton Gallery, Inc. Project 3.51 9/6/06 4,000,000 4,000,000
Pinellas County Health Facilities Authority Revenue 3.45 9/7/06 1,910,000 1,910,000
Polk County School Board COP, Series A 3.39 9/7/06 2,000,000 2,000,000
Port Orange Revenue, Palmer College Project, LOC Lasalle Bank N.A 3.44 9/7/06 4,500,000 4,500,000
St. Johns County, HFA Multi-Family 3.45 9/6/06 7,600,000 7,600,000
Tampa Health Care Facilities Revenue, Lifelink Foundation,
Inc. Project 3.41 9/6/06 1,400,000 1,400,000
Volusia County Educational Facility Authority Revenue 3.46 9/7/06 3,145,000 3,145,000
------------
82,445,000
------------
The accompanying notes are an integral part of these financial statements.
15
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
Schedule of Portfolio Investments
August 31, 2006
MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
------ -------- ------------ ------------
ILLINOIS - 1.2%
Channahon Revenue 3.45% 9/7/06 $ 2,000,000 $ 2,000,000
------------
KENTUCKY - 1.2%
Richmond League of Cities Funding Trust, Lease Program Revenue 3.60 9/1/06 2,000,000 2,000,000
------------
NEW JERSEY- 1.2%
New Jersey Economic Development Authority, Economic Development Revenue 3.60 9/1/06 2,000,000 2,000,000
------------
NEW YORK- 6.0%
Metropolitan Transit Authority of New York Revenue 3.36 9/7/06 7,700,000 7,700,000
New York Variable - Subseries A-9 3.39 9/6/06 2,000,000 2,000,000
------------
9,700,000
------------
NORTH CAROLINA - 4.8%
North Carolina Educational Facility Finance Agency Revenue 3.54 9/7/06 2,300,000 2,300,000
North Carolina Educational Facility Finance Agency Revenue 3.54 9/7/06 3,500,000 3,500,000
University of North Carolina Revenue 3.41 9/6/06 2,025,000 2,025,000
------------
7,825,000
------------
PENNSYLVANIA - 1.8%
University of Pittsburgh of the Commonwealth, System of Higher Education 3.41 9/6/06 3,000,000 3,000,000
------------
PUERTO RICO - 2.8%
Puerto Rico Commonwealth Infrastructure Financing Authority 3.44 9/7/06 3,000,000 3,000,000
Puerto Rico Industrial, Medical & Environmental Pollution Control
Facilities Financing Authority 3.55 3/1/07 1,500,000 1,500,364
------------
4,500,364
------------
SOUTH CAROLINA - 0.8%
Piedmont Municipal Power Agency 3.44 9/6/06 1,305,000 1,305,000
------------
TEXAS- 3.1%
Bell County Health Facility Development Corp. Revenue 3.60 9/1/06 2,015,000 2,015,000
Lufkin Health Facilities Devolpement Corp., Health Systems Revenue 3.57 9/1/06 1,500,000 1,500,000
Richardson Independent School District 3.41 9/7/06 1,500,000 1,500,000
------------
5,015,000
------------
WEST VIRGINIA - 0.6%
Marshall County Pollution Control Revenue 3.60 9/1/06 1,000,000 1,000,000
------------
TOTAL VARIABLE MUNICIPAL BONDS (AMORTIZED COST $128,790,364) 128,790,364
------------
TOTAL INVESTMENTS (AMORTIZED COST $162,595,525) (A) - 99.8% 162,595,525
OTHER ASSETS LESS LIABILITIES - 0.2% 389,499
------------
TOTAL NET ASSETS - 100% $162,985,024
============
- ----------
* Variable rate investment. Securities payable on demand at par including
accrued interest (usually within seven days notice) and unconditionally
secured as to principal and interest by letters of credit or other credit
support agreements from major banks. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown represents the rate in effect at August 31, 2006. The
maturity date shown reflects next rate change date.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
COP - Certificates of Participation
HFA - Housing Finance Authority
LOC - Letter of Credit
TAN - Tax Anticipation Note
VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO
Commercial Paper 8.5%
Municipal Bonds and Notes 12.3
Variable Municipal Notes 79.0
-----
99.8
Other Assets less Liabilities 0.2
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
16
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2006
ASSETS:
Investments, at value (amortized cost $ 162,595,525
$ 162,595,525)
Receivables:
Interest 962,267
Other assets 226
-------------
TOTAL ASSETS 163,558,018
-------------
LIABILITIES:
Payables:
Due to custodian $ 67,357
Dividends 475,983
Accrued expenses and other liabilities:
Investment manager 28,863
Distribution and shareholder servicing 791
-------------
TOTAL LIABILITIES 572,994
-------------
NET ASSETS $ 162,985,024
=============
COMPOSITION OF NET ASSETS:
Capital $ 163,029,899
Accumulated net realized loss from
investment transactions (44,875)
-------------
NET ASSETS $ 162,985,024
=============
Class A Shares
Net Assets $ 160,332,131
Shares outstanding (unlimited number of shares authorized with no par value) 160,471,632
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
=============
Class B Shares
Net Assets $ 2,652,893
Shares outstanding (unlimited number of shares authorized with no par value) 2,655,208
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
=============
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2006
INVESTMENT INCOME:
Interest $ 5,591,436
-----------
Total Investment Income 5,591,436
EXPENSES:
Investment manager $ 353,625
Distribution and shareholder servicing:
Class A Shares 605,732
Class B Shares 13,111
Trustees fees 7,822
-----------
Total expenses before contractual
fee reimbursements $ 980,290
Contractual fee waivers and
expense reimbursements (617,300)
-----------
NET EXPENSES 362,990
-----------
NET INVESTMENT INCOME 5,228,446
-----------
NET REALIZED GAIN FROM INVESTMENT
TRANSACTIONS --
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 5,228,446
-----------
The accompanying notes are an integral part of these financial statements.
17
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 2006 AUGUST 31, 2005
--------------- ---------------
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 5,228,446 $ 3,330,173
Net realized gain from investment transactions -- 5,431
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 5,228,446 3,335,604
-------------- --------------
DIVIDENDS:
Net investment income:
Class A Shares (5,128,154) (3,204,440)
Class B Shares (100,292) (125,733)
-------------- --------------
TOTAL DIVIDENDS TO SHAREHOLDERS (5,228,446) (3,330,173)
-------------- --------------
INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS (NOTE 4) 15,411,588 9,979,884
-------------- --------------
NET INCREASE IN NET ASSETS 15,411,588 9,985,315
-------------- --------------
NET ASSETS:
Beginning of year 147,573,436 137,588,121
-------------- --------------
End of year (including accumulated undistributed net
investment income of $0 and $0, respectively) $ 162,985,024 $ 147,573,436
============== ==============
The accompanying notes are an integral part of these financial statements.
18
THE VALIANT FUND
TAX-EXEMPT MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE YEARS ENDED AUGUST 31,
----------------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income $ 0.029 0.018 0.008 0.014 0.015
---------- ---------- ---------- ---------- ----------
DIVIDENDS
Net investment income $ (0.029) (0.018) (0.008) (0.014) (0.015)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ========== ==========
TOTAL RETURN (A) 2.99% 1.79% 0.83% 1.03% 1.49%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 160,332 $ 143,821 $ 123,388 $ 142,519 $ 174,104
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets 2.96% 1.80% 0.83% 1.02% 1.47%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE YEAR ENDED FOR THE PERIOD
------------------------------------ FEBRUARY 25, 2004(B)
AUGUST 31, 2006 AUGUST 31, 2005 TO AUGUST 31, 2004
------------------------------------ ------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000
---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income 0.027 0.015 0.003
---------- ---------- ----------
DIVIDENDS
Net investment income (0.027) (0.015) (0.003)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
========== ========== ==========
TOTAL RETURN (A) 2.73% 1.54% 0.31%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 2,653 $ 3,752 $ 14,200
Ratio of expenses to average net assets, before
contractual fee waivers and / or expense reimbursements 0.55% 0.55% 0.55%(c)
Ratio of expenses to average net assets 0.45% 0.45% 0.45%(c)
Ratio of net investment income to average net assets 2.68% 1.39% 0.60%(c)
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes
reinvestment of dividends. Total returns for periods less than one full
year are not annualized.
(b) Commencement of share class.
(c) Annualized.
The accompanying notes are an integral part of these financial statements.
19
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2006
1. ORGANIZATION:
The U.S. Treasury Money Market Portfolio, General Money Market Portfolio,
Tax-Exempt Money Market Portfolio, and U.S. Treasury Income Portfolio are
separate portfolios of The Valiant Fund. The Valiant Fund (the Trust ) is
a Massachusetts business trust, organized on January 29, 1993 and is
registered under the Investment Company Act of 1940, as amended (the Act
), as an open-end management investment company. The Trust is authorized
to offer five classes of shares: Class A, Class B, Class C (has not
commenced operations), Class D and Class E. The five classes are
identical, except as to the services offered to, and the expenses borne,
by each class. This report covers U.S. Treasury Money Market Portfolio,
General Money Market Portfolio, and Tax-Exempt Money Market Portfolio
(referred to individually as a Portfolio and collectively as the
Portfolios ) for the year ended August 31, 2006. A separate report is
issued for the U.S. Treasury Income Portfolio for the year ended August
31, 2006. The Portfolios invest primarily in money market instruments
maturing in 13 months or less.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies
followed by the Portfolios in the preparation of their financial
statements. The policies are in conformity with generally accepted
accounting principles in the United States of America. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION:
Each Portfolio values its investments on the basis of amortized
cost, which involves valuing an instrument at its cost and thereafter
assuming a constant accretion to maturity of any discount or amortization
to maturity of any premium. The amortized cost value of an instrument may
be higher or lower than the price a Portfolio would receive if it sold the
instrument.
As permitted under Rule 2a-7 of the 1940 Act, and certain conditions
therein, securities of the Portfolios are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are recorded on trade date. Security gains
and losses are calculated on the identified cost basis. Interest income is
recognized on the accrual basis and includes, where applicable, the
amortization or accretion of a premium or a discount.
REPURCHASE AGREEMENTS:
Each Portfolio may enter into repurchase agreements with an entity
whose creditworthiness has been reviewed and found satisfactory by the
Portfolios Sub-Advisor, Reich & Tang Asset Management L.P. (Reich & Tang).
The repurchase price generally equals the price paid by a Portfolio plus
interest negotiated on the basis of current short-term rates, which may be
more or less than the rate on the underlying portfolio securities. The
seller, under a repurchase agreement, is required to maintain the
appropriate collateral levels held pursuant to the agreement, with a
market value equal to or greater than the repurchase price (including
accrued interest). Collateral subject to repurchase agreements is held by
the Portfolios custodian, either physically or in book entry form. If the
seller defaults and the fair value of the collateral declines, realization
of the collateral by the Portfolios may be delayed or limited.
20
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
EXPENSE ALLOCATION:
Expenses directly attributable to a Portfolio are charged to that
Portfolio. Trust expenses are allocated proportionately among each
Portfolio within the Trust in relation to the net assets of each
Portfolio. Expenses specific to a class are charged to that class.
DIVIDENDS TO SHAREHOLDERS:
The Portfolios declare all net investment income daily as dividends
to their shareholders and distribute such dividends monthly. Additional
dividends are also paid to the Portfolios shareholders to the extent
necessary to avoid the federal excise tax on certain undistributed income
and net realized gains of registered investment companies. Dividends are
recorded on the ex-dividend date.
The amount of dividends from net investment income and net realized
gains are determined in accordance with U.S. income tax regulations, which
may differ from the U.S. generally accepted accounting principles. These
book/tax differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified among the components of net assets (See Note 7).
Temporary differences do not require reclassification.
FEDERAL TAXES:
Each Portfolio is a separate taxable entity for federal tax
purposes. Each Portfolio has qualified and intends to qualify each year as
a regulated investment company under Subchapter M of the Internal Revenue
Code, as amended, and distribute substantially all of its taxable net
investment income and net realized gains, if any, to their shareholders.
Accordingly, no provision for federal income tax is required.
3. RELATED PARTY TRANSACTIONS:
INVESTMENT ADVISER:
Integrity Management & Research, Inc. (the Manager ), a wholly-owned
subsidiary of Integrity Investments, Inc., serves as the Investment
Adviser to the Trust. The Manager provides day-to-day investment advisory
services to each Portfolio. Reich & Tang serves as Sub-Adviser to
Portfolio and, subject to the supervision of the Trustees and of the
Manager, directs the investments of each Portfolio in accordance with its
investment objective, policies and limitations. The Manager, subject to
the general supervision of the Board and in accordance with the investment
objective, policies and restrictions of each Portfolio, also provides the
Portfolios with ongoing investment guidance, policy direction and
monitoring of the Sub-Adviser pursuant to a sub-advisory agreement. The
Trust pays the Manager a fee, computed daily and paid monthly, at the
annual rate of 0.20% of the average daily net assets of each Portfolio.
For the year ended August 31, 2006, the Manager earned fees of $419,927,
$935,160, and $353,625 from the U.S. Treasury Money Market Portfolio, the
General Money Market Portfolio, and the Tax-Exempt Money Market Portfolio,
respectively. At August 31 , 2006, there was a payable due to the Manager
in the amount $35,740, $85,074, and $28,863 from the U.S. Treasury Money
Market Portfolio, the General Money Market Portfolio, and the Tax-Exempt
Money Market Portfolio, respectively.
Under terms of the Management Agreement, all expenses incurred by
the Portfolios are paid directly by the Manager, except for distribution
and shareholder servicing fees, Trustee fees and other miscellaneous
non-recurring fees.
Certain trustees of the Trust indirectly own and/or are also
officers of the Manager.
CUSTODIAN:
The Bank of New York, ("Custodian") is the Custodian for each
Portfolio under custodian agreements with respect to each Portfolio.
21
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
The Bank of New York also provides fund accounting and administrative
services pursuant to a Fund Accounting Agreement dated September 1, 2001 (the
"Fund Accounting Agreement") between the Trust and The Bank of New York. The
Fund Accounting Agreement has provisions for termination, limitation of
liability and indemnification. The Bank of New York maintains all Trust books
and records required under Rule 31a-1 under the Investment Company Act of 1940,
as amended, performs daily accounting services and provides additional fund
reporting and record keeping services. All Bank of New York fees are paid by the
Adviser.
DISTRIBUTION AND SHAREHOLDER SERVICING PLAN:
Integrity Investments, Inc. (the Distributor ), an affiliate of the
Manager, acts as exclusive distributor of the Trust s shares. The Trust has
adopted distribution and shareholder servicing plans for each class of shares
offered (together, the Plans ) pursuant to Rule 12b-1 of the 1940 Act. For its
services, the Distributor is authorized to receive a fee, computed daily and
paid monthly, based on the average daily net assets of each class, at the
following annual percentage rates:
CLASS FEE RATE
----- --------
Class A Shares 0.35%
Class B Shares 0.35
Class C Shares 0.65
Class D Shares 0.50
Class E Shares 0.80
EXPENSE LIMITATIONS:
The Portfolios Manager and Distributor have contractually agreed to
reimburse expenses and waive certain distribution fees necessary to limit
total expenses to the following rates until December 31, 2006:
CLASS EXPENSE LIMITATION
----- ------------------
Class A Shares 0.20%
Class B Shares 0.45
Class C Shares 0.85
Class D Shares 0.70
Class E Shares 1.00
FEE REIMBURSEMENTS:
Expenses reimbursed and fees waived by the Manager and Distributor
are set forth on each Portfolio s Statement of Operations.
For the year ended August 31, 2006, the Manager and Distributor
waived $80,372 of fees and expenses for the U.S. Treasury Money Market
Portfolio. These expenses related to $4,537 of fees attributable to Class
A, $65,965 attributable to Class B, and all Trustees fees of $9,870
incurred by the Portfolio during the year.
For the year ended August 31, 2006, the Manager and Distributor
waived $1,310,556 of fees and expenses for the General Money Market
Portfolio. These expenses related to $1,288,153 of fees attributable to
Class A, $96 attributable to Class B, and all Trustees fees of $22,307
incurred by the Portfolio during the year.
For year ended August 31, 2006, the Manager and Distributor waived
$617,300 of fees and expenses for the Tax-Exempt Money Market Portfolio.
These expenses related to $605,732 of fees attributable to Class A, $3,746
attributable to Class B, and all Trustees fees of $7,822 incurred by the
Portfolio during the year.
22
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
4. CAPITAL SHARE TRANSACTIONS:
Each class is authorized to issue an unlimited number of shares with
no par value. Transactions in capital and shares of beneficial interest by
class for the Portfolios for the years ended August 31, 2006 and 2005 are
listed below (amounts represent shares and dollars):
U.S. TREASURY MONEY MARKET GENERAL MONEY MARKET TAX-EXEMPT MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------- --------------------------------- ---------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 2006 AUGUST 31, 2005 AUGUST 31, 2006 AUGUST 31, 2005 AUGUST 31, 2006 AUGUST 31, 2005
--------------------------------- --------------------------------- ---------------------------------
CLASS A SHARES:
Issued 7,357,394 4,383,903 2,112,521,864 2,252,369,563 787,524,064 927,991,009
Reinvested 306 159 2,201 1,158 32 21
Redeemed (7,012,095) (3,535,140) (2,068,722,614) (2,235,375,246) (771,010,978) (907,554,407)
--------------------------------- --------------------------------- ---------------------------------
Net increase (decrease)
in Class A Shares 345,605 848,922 43,801,451 16,995,475 16,513,118 20,436,623
--------------------------------- --------------------------------- ---------------------------------
CLASS B SHARES:
Issued 159,245,943 365,525,182 655,529 13,342,623 7,737,242 19,064,385
Reinvested 168,786 110,502 -- 39 35,021 16,140
Redeemed (196,011,674) (370,001,659) (661,002) (18,304,206) (8,873,793) (29,537,264)
Net increase (decrease)
--------------------------------- --------------------------------- ---------------------------------
in Class B Shares (36,596,945) (4,365,975) (5,473) (4,961,544) (1,101,530) (10,456,739)
--------------------------------- --------------------------------- ---------------------------------
CLASS D SHARES:
Issued 317,226,353 270,321,902 77,148,735 33,647,663 -- --
Reinvested -- -- 21,947 15,694 -- --
Redeemed (366,454,130) (335,025,300) (65,715,543) (39,060,183) -- --
Net decrease
--------------------------------- --------------------------------- ---------------------------------
in Class D Shares (49,227,777) (64,703,398) 11,455,139 (5,396,826) -- --
--------------------------------- --------------------------------- ---------------------------------
CLASS E SHARES:
Issued 128,626,578 81,769,269 86,497,269 87,465,595 -- --
Reinvested 878,214 16 42 319 -- --
Redeemed (73,672,732) (81,051,656) (83,399,602) (98,864,353) -- --
--------------------------------- --------------------------------- ---------------------------------
Net increase (decrease)
in Class E Shares 55,832,060 717,629 3,097,709 (11,398,439) -- --
--------------------------------- --------------------------------- ---------------------------------
NET INCREASE
(DECREASE) IN SHARE
TRANSACTIONS (29,647,057) (67,502,822) 58,348,826 (4,761,334) 15,411,588 9,979,884
================================= ================================= =================================
23
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
5. SECURITIES LENDING:
Under an agreement with the Custodian, the Portfolios can lend their
securities to approved brokers, dealers and other financial institutions.
The Portfolios also continue to receive interest on the securities loaned.
Loans are collateralized by cash, in an amount at least equal to the
market value of the securities loaned plus accrued interest. The cash
collateral is received and is invested in a money market account with the
Custodian. A portion of the income generated by the investment of the
collateral, net of any rebates paid by the Custodian to borrowers, is
remitted to the Custodian as lending agent, and the remainder is paid to
the Portfolios. Generally, in the event of counterparty default, the
Portfolios have the right to use the collateral to offset losses incurred.
As of August 31, 2006, there were no outstanding securities on loan for
any of the Portfolios.
6. CONCENTRATION OF CREDIT RISK:
As of August 31, 2006, approximately 59.9% of the Tax-Exempt Money
Market Portfolio was invested in obligations of political subdivisions of
the State of Florida and, accordingly, is subject to the credit risk
associated with the non-performance of such issuers. Approximately 80.1%
of these investments are further secured, as to principal and interest, by
credit enhancements such as letters of credit, municipal bond insurance,
and guarantees issued by financial institutions.
7. FEDERAL TAX INFORMATION:
All of the dividends paid for the years ended August 31, 2006 and
2005 by the General Money Market Portfolio and the U.S. Treasury Money
Market Portfolio are ordinary income for federal income tax purposes.
During the years ended August 31, 2006 and 2005, all of the
distributions paid by the Tax-Exempt Money Market Portfolio have been
designated tax-exempt income distributions.
Undistributed net investment income differs for financial statement
and tax purposes primarily due to the timing of dividend payments.
At August 31, 2006 the following reclassification was made to the
capital account of the noted fund to reflect permanent book/tax
differences and income and gains available for distributions under income
tax regulations, which are primarily due to the differences between book
and tax treatment of the expiration of unused capital loss carryforwards.
Net investment income, net realized gains, and net assets were not
affected by these changes.
UNDISTRIBUTED
CAPITAL GAINS/
ACCUMULATED PAID IN
LOSSES CAPITAL
-------------- -------
Tax - Exempt Money Market Fund $8,571 ($8,571)
24
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
For federal income tax purposes, the following Portfolios have capital
loss carryforwards as of August 31, 2006, which are available to offset
future realized gains, if any:
NAME AMOUNT EXPIRES
- ---------------------------- -----------------------
U.S. Treasury Money Market $ 228,583 2008
21,859 2009
----------
$ 250,442
==========
General Money Market $ 51,799 2008
1,354 2013
22 2014
----------
$ 53,175
==========
Tax-Exempt Money Market $ 2,545 2008
42,330 2009
----------
$ 44,875
==========
Capital losses incurred after October 31 (post-October losses)
within the taxable year are deemed to arise on the first business day of
the fund s next taxable year. The General Money Market Portfolio will
elect to defer post-October losses in the amount of $667.
8. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more
than 25% of the voting securities of a Portfolio creates a presumption of
control of the Portfolio under Section 2(a)(9) of the Investment Company
Act of 1940. As of August 31, 2006, Relico held 99.52% of Class A shares,
Hare & Co. held 100% of Class B shares, and 30.61% of Class D shares,
First Union National Bank held 58.24% of Class D, and Commerce Bank held
84.46% of Class E shares of the U.S. Treasury Money Market Portfolio in
omnibus accounts for the sole benefit of their customers. First Union
National Bank held 81.81% of the Class A shares and Relico held 100% of
the Class B and Class E shares, and 99.98% of the Class D shares of the
General Money Market Portfolio in omnibus accounts for the sole benefit of
their customers. First Union National Bank held 88.33% of Class A shares,
Reich & Tang Services, Inc. (a related party to the Sub-Advisor) held
41.44% and Relico held 58.56% of Class B shares of the Tax-Exempt Money
Market Portfolio in omnibus accounts for the sole benefit of their
customers.
25
THE VALIANT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 2006
9. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS.
On July 13, 2006, the Financial Accounting Standards Board (FASB) released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN48 provides guidance for how uncertain tax positions should
be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the evaluation of tax positions taken or
expected to be taken in the course of preparing the Funds' tax returns to
determine whether the tax positions are "more-likely-than-not" of being
sustained by the applicable tax authority. Tax positions not deemed to
meet the more-likely-than-not threshold would be recorded as a tax benefit
or expense in the current year. Adoption of FIN 48 is required for fiscal
years beginning after December 15, 2006 and is to be applied to all open
tax years as of the effective date. At this time, management is evaluating
the impact that FIN 48 will have on the financial statements.
On September 20, 2006, the Financial Accounting Standards Board ( FASB )
released Statement of Financial Accounting Standards No. 157 Fair Value
Measurements ( FAS 157 ). FAS 157 establishes an authoritative definition
of fair value, sets out a framework for measuring fair value, and requires
additional disclosures about fairvalue measurements. The application of
FAS 157 is required for fiscal years beginning after November 15, 2007 and
interim periods within those fiscal years. At this time, management is
evaluating the impact that FAS 157 will have on the financial statements.
26
MANAGEMENT OF THE TRUST (UNAUDITED)
The trustees and officers of the Trust and their principal occupations during
the past five years are as follows:
RICHARD F. CURCIO PRESIDENT, TRUSTEE, CHAIRMAN OF THE BOARD
Founded Integrity Investments, Inc. (a broker/dealer) and Integrity Management &
Research, Inc.(an investment adviser) in 1992, and is currently President and
Director of each. Senior Vice President/Regional Manager for Fidelity
Institutional Services Company from 1987 to 1992. Associated with Fidelity
Distributors from 1979 to 1992.
JOHN S. CULBERTSON TRUSTEE
Retired. Trust Consultant with Fidelity Investments Institutional Services Co.
from 1990 to 1993.
RUFUS C. CUSHMAN JR. TRUSTEE
Retired. Money Manager with Fidelity Management & Research Corp. From 1968
through 1994.
H. WILLIS DAY TRUSTEE
Retired. Former Senior Vice President of Southeast Bank, FLA, N.A.
ROGER F. DUMAS TRUSTEE
Private investor since 1987.
KENNETH J. PHELPS TRUSTEE
President, Principal and Director of Reliance Trust Company, Atlanta, GA since
1992. Chairman, Chief Executive Officer and Director, C&S/Sovran Trust Company,
Inc. from 1987 to 1992.
DENIS R. CURCIO VICE PRESIDENT, SECRETARY AND TREASURER
Mr. Curcio joined Integrity Investments, Inc. the distributor of The Valiant
Fund in June of 1998 after graduating from Jacksonville University with a BS in
Finance. Aged 30, Denis is responsible for oversight and administration of The
Valiant Fund.
28
BRENDEN R. CURCIO VICE PRESIDENT
Mr. Curcio joined Integrity Investments, Inc., the distributor of The Valiant
Fund in June of 1994 after graduating from Stetson University with a BBA in
Finance. Aged 34, Brenden is responsible for institutional sales of The Valiant
Fund in the Northeast and Midwest.
Proxy Voting Policies and Procedures
A description of the Portfolios proxy voting policies and procedures and
information regarding how the Portfolios voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, is available,
without charge and upon request, by calling Integrity Investments, Inc. at
1-800-828-2176 or by accessing the Portfolios Form N-PX on the Securities and
Exchange Commission s website at www.sec.gov.
Quarterly Portfolios
The Trust files its complete schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q. The Trust s
Forms N-Q are available on the Commission s website at www.sec.gov. The Trust s
Forms N-Q may also be reviewed and copied at the Commission s Public Reference
Room in Washington, DC; information on the operation of the Public Reference
Room may be obtained by calling (800)-SEC-0330.
29
APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED)
The Investment Advisory Agreements will continue in effect for more than two
years, provided that the continuance is approved annually (i) by the holders of
a majority of a Portfolio s outstanding voting securities or by the Board and
(ii) by a majority of the Trustees who are not parties to the Investment
Advisory Agreement or interested persons of any such party. The Investment
Advisory Agreements may be terminated on 60 days' written notice any such party
and will terminate automatically if assigned.
On June 29, 2006, the Board approved the continuation of the Management
Agreement with Integrity Management and Research, Inc. and Sub-Advisory
Agreement between Integrity Management and Research, Inc. and Reich & Tang, as
described more fully below (collectively, the Advisory Agreements ). In
determining whether to approve the continuation of the Advisory Agreements, the
Board requested and received from Integrity Research information that the Board
believed to be appropriate, reasonable and necessary to reach a determination
regarding the continuation of the Advisory Agreements, including the information
described below. Although investment performance was a factor in determining
whether the Advisory Agreements should be continued, the Board also considered
other factors in evaluating the fairness and reasonableness of the compensation
to be paid to Integrity Management and Research, Inc. and Reich & Tang. The
Board carefully evaluated the information requested and was advised by legal
counsel to the Portfolios and the Non-Interested Trustees with respect to the
Board s deliberations regarding the Advisory Agreements. In considering the
Advisory Agreements, the Board considered information regarding: (i) each
Portfolio s investment performance during the previous year and for all relevant
prior periods, including how effectively each Portfolio tracked its respective
index; (ii) each Portfolio s total expenses; (iii) the nature, quality and
extent of the services provided to the Portfolios under the Advisory Agreements;
(iv) the requirements of the Portfolios for the services provided by Integrity
Management and Research, Inc. and Reich & Tang; (v) the fees payable for the
services and other benefits derived by Integrity Management and Research, Inc.
and Reich & Tang from their relationship with the Portfolios; (vi) the portfolio
management process, personnel, systems, operations, quality, reputation and
financial condition of Integrity Management and Research, Inc. and Reich & Tang
(including Integrity Investment s profitability with respect to its relationship
with the Portfolios); (vii) current economic and industry trends; and (viii) the
historical relationship between each of the Portfolios and Integrity Management
and Research, Inc. and Reich & Tang. In evaluating each Portfolio s investment
performance and advisory fees, the Board reviewed information compiled by an
independent third party that compared each Portfolio s expense ratio, investment
advisory fee and performance with comparable mutual funds. Current management
fees under the Advisory Agreements were reviewed in the context of: (i) the
nature and high quality of the investment advisory services provided by
Integrity Management and Research, Inc. and Reich & Tang, including the high
quality of the services provided; (ii) Integrity Investment s profitability with
respect to each Portfolio, (iii) each Portfolio s historic performance,
including the extent to which each Portfolio successfully achieved its stated
investment objective (i.e., how closely each Portfolio tracked its respective
index); (iv) Integrity Management and Research, Inc. and Reich & Tang s
commitment to the management of the Portfolios; and (v) investment advisory fees
paid by each Portfolio, discussed in further detail below.
30
In approving the continuation of the Advisory Agreements, the Board noted the
following factors, among others, as the basis for its determination: The terms
of the Advisory Agreements, including the services to be provided to the
Portfolios and the advisory fees payable by the Portfolios, were generally
comparable to the terms of advisory arrangements within the industry and within
peer groups of mutual funds. The Board also noted that the Advisory Agreements
did not increase investment advisory fees payable by any Portfolio or overall
operating expenses of any Portfolio over historical fee and expense levels.
Integrity Management and Research, Inc. and Reich & Tang have historically
provided high-quality services in their management of the Portfolios and are
committed to the successful operation of the Portfolios. Based upon the
information provided to the Board, the Board expected that Integrity Management
and Research, Inc. and Reich & Tang would continue to provide high-quality
services to the Portfolios. The Board also noted that the Portfolios have
continued to closely track the performance of their respective benchmarks.
Based upon their review of the information requested and provided, and following
extensive discussions with Integrity Research as well as private deliberations
by the Non-Interested Trustees concerning the information, the Board determined
that continuing the Advisory Agreements was consistent with the best interests
of the Portfolios and their shareholders. Consequently, the Board unanimously
approved the Advisory Agreements for an additional annual period.
31
[LETTERHEAD, COHEN FUND AUDIT SERVICES]
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Shareholders and Board of Trustees of
The Valiant Fund
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of The Valiant Fund comprising the U.S. Treasury
Money Market Portfolio, General Money Market Portfolio, and Tax-Exempt Money
Market Portfolio (the "Funds") as of August 31, 2006, and the related statements
of operations for the year then ended and the statements of changes in net
assets and financial highlights for each of the two years in the period then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the periods indicated prior to August 31,
2005 were audited by other auditors, who expressed unqualified opinions on those
highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of August 31, 2006 by correspondence with
the Funds' custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the portfolios constituting The Valiant Fund as of August 31, 2006, the
results of their operations for the year then ended and the changes in their net
assets and financial highlights for each of the two years in the period then
ended, in conformity with accounting principles generally accepted in the United
States of America.
/s/ COHEN FUND AUDIT SERVICES, LTD.
COHEN FUND AUDIT SERVICES, LTD.
(f.k.a. Cohen McCurdy, Ltd.)
Westlake, Ohio
October 30, 2006
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
ANNUAL REPORT
AUGUST 31, 2006
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 2006*
ASSETS:
Cash $ 985
--------
TOTAL ASSETS 985
--------
LIABILITIES:
Accrued expenses and other liabilities:
Investment manager $ 364
--------
TOTAL LIABILITIES 364
--------
NET ASSETS $ 621
========
COMPOSITION OF NET ASSETS:
Capital $ 622
Undistributed net investment income 84
Accumulated net realized loss from
investment transactions (85)
--------
NET ASSETS $ 621
========
Class A Shares
Net Assets $ 621
Shares outstanding 622
Net Asset Value, Offering Price and
Redemption Price per share $ 1.00
========
* The portfolio has been inactive since 2001.
The accompanying notes are an integral part of these financial statements.
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE YEARS ENDED
----------------------------------------------------
2006 (A) 2005 (B) 2004 (C) 2003 (D) 2002 (E)
-------- -------- -------- -------- --------
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Net investment income -- -- -- -- --
Net realized gain from investment transactions -- -- -- -- --
-------- -------- -------- -------- --------
Total from investment activities -- -- -- -- --
-------- -------- -------- -------- --------
DIVIDENDS
Net investment income -- -- -- -- --
-------- -------- -------- -------- --------
Total dividends -- -- -- -- --
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ========
TOTAL RETURN -- -- -- -- --
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000) $ 1 $ 1 $ 1 $ 1 $ 1
Ratio of expenses to average net assets -- -- -- -- --
Ratio of net investment income to average net assets -- -- -- -- --
(a) The Portfolio did not operate during the year ended August 31, 2006.
(b) The Portfolio did not operate during the year ended August 31, 2005.
(c) The Portfolio did not operate during the year ended August 31, 2004.
(d) The Portfolio did not operate during the year ended August 31, 2003.
(e) The Portfolio did not operate during the year ended August 31, 2002.
The accompanying notes are an integral part of these financial statements.
THE VALIANT FUND
U.S. TREASURY INCOME PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2006
1. ORGANIZATION:
The Valiant Fund (the Trust ) is a Massachusetts business trust,
organized on January 29, 1993 and is registered under the Investment
Company Act of 1940, as amended (the Act ), as an open-end management
investment company. A separate annual report is issued for the U.S.
Treasury Money Market Portfolio, General Money Market Portfolio and
Tax-Exempt Money Market Portfolio, separate portfolios of the Trust. This
report covers the U.S. Treasury Income Portfolio (hereinafter referred to
as Portfolio ) for the year ended August 31, 2006, during which period the
Portfolio did not conduct operations. As the Portfolio did not have any
operations during the years ended August 31, 2006 or August 31, 2005, a
Statement of Operations and Statement of Changes in Net Assets has not
been presented.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies
followed by the Portfolio in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting
principles in the United States of America. The preparation of financial
statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for
the period. Actual results could differ from those estimates.
SECURITY VALUATION:
Investments of the Portfolio are valued at amortized cost, which
approximates value. Under the amortized cost method, discount or premium,
if any, is accreted or amortized, respectively, on a straight-line basis
to the maturity of the security. During the year ended August 31, 2006,
the Portfolio did not engage in any investment activities.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Securities transactions are recorded on trade date. Security gains
and losses are calculated on the identified cost basis. Interest income is
recognized on the accrual basis and includes, where applicable, the
amortization or accretion of a premium or a discount. During the year
ended August 31, 2006, the Portfolio did not engage in any investment
activities nor did it receive any related income.
EXPENSE ALLOCATION:
Expenses directly attributable to a portfolio are specifically
identified and charged. Trust expenses are allocated proportionately among
each of the Portfolios within the Trust in relation to the net assets of
each portfolio or another reasonable basis. There were no expenses
incurred by the Portfolio during the year.
CAPITAL SHARE TRANSACTIONS:
The Portfolio is authorized to issue an unlimited number of shares
with no par value. No capital transactions occurred during the year.
BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more
than 25% of the voting securities of a Portfolio creates a presumption of
control of the Portfolio under Section 2(a)(9) of the Investment Company
Act of 1940. As of August 31, 2006, Integrity Investments held 100% of the
shares of the Portfolio. Certain officers and shareholders of Integrity
Investments are also officers of the Trust.
MANAGEMENT OF THE TRUST (UNAUDITED)
The trustees and officers of the Trust and their principal occupations during
the past five years are as follows:
RICHARD F. CURCIO PRESIDENT, TRUSTEE, CHAIRMAN OF THE BOARD
Founded Integrity Investments, Inc. (a broker/dealer) and Integrity Management &
Research, Inc.(an investment adviser) in 1992, and is currently President and
Director of each. Senior Vice President/Regional Manager for Fidelity
Institutional Services Company from 1987 to 1992. Associated with Fidelity
Distributors from 1979 to 1992.
JOHN S. CULBERTSON TRUSTEE
Retired. Trust Consultant with Fidelity Investments Institutional Services Co.
from 1990 to 1993.
RUFUS C. CUSHMAN JR. TRUSTEE
Retired. Money Manager with Fidelity Management & Research Corp. From 1968
through 1994.
H. WILLIS DAY TRUSTEE
Retired. Former Senior Vice President of Southeast Bank, FLA, N.A.
ROGER F. DUMAS TRUSTEE
Private investor since 1987.
KENNETH J. PHELPS TRUSTEE
President, Principal and Director of Reliance Trust Company, Atlanta, GA since
1992. Chairman, Chief Executive Officer and Director, C&S/Sovran Trust Company,
Inc. from 1987 to 1992.
DENIS R. CURCIO VICE PRESIDENT, SECRETARY AND TREASURER
Mr. Curcio joined Integrity Investments, Inc. the distributor of The Valiant
Fund in June of 1998 after graduating from Jacksonville University with a BS in
Finance. Aged 30, Denis is responsible for oversight and administration of The
Valiant Fund.
BRENDEN R. CURCIO VICE PRESIDENT
Mr. Curcio joined Integrity Investments, Inc., the distributor of The Valiant
Fund in June of 1994 after graduating from Stetson University with a BBA in
Finance. Aged 34, Brenden is responsible for institutional sales of The Valiant
Fund in the Northeast and Midwest.
Proxy Voting Policies and Procedures
A description of the Portfolios proxy voting policies and procedures and
information regarding how the Portfolios voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, is available,
without charge and upon request, by calling Integrity Investments, Inc. at
1-800-828-2176 or by accessing the Portfolios Form N-PX on the Securities and
Exchange Commission s website at www.sec.gov.
Quarterly Portfolios
The Trust files its complete schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q. The Trust s
Forms N-Q are available on the Commission s website at www.sec.gov. The Trust s
Forms N-Q may also be reviewed and copied at the Commission s Public Reference
Room in Washington, DC; information on the operation of the Public Reference
Room may be obtained by calling (800)-SEC-0330.
[LETTERHEAD, COHEN FUND AUDIT SERVICES]
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To The Shareholders and Board of Trustees of
The Valiant Fund
We have audited the statement of assets and liabilities of the U.S. Treasury
Income Portfolio (the "Fund"), one of the portfolios constituting The Valiant
Fund, as of August 31, 2006, and the financial highlights for each of the two
years in the period then ended. These financial statements and financial
highlights are the responsibility of Fund management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. The financial highlights for the periods indicated prior to
August 31, 2005 were audited by other auditors, who expressed unqualified
opinions on those highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
cash held as of August 31, 2006 by correspondence with the Fund's 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 audits provide a reasonable basis
for our opinion.
The Fund has been inactive since January 24, 2001.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
U.S. Treasury Income Portfolio of The Valiant Fund as of August 31, 2006, and
its financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ COHEN FUND AUDIT SERVICES, LTD.
COHEN FUND AUDIT SERVICES, LTD.
(f.k.a. Cohen McCurdy, Ltd.)
Westlake, Ohio
October 30, 2006
ITEM 2. CODE OF ETHICS.
a) The registrant has adopted a code of ethics that applies to the
Registrant's President and Treasurer.
b) (b) Not applicable.
(c) The registrant has not amended its Code of Ethics during the period
covered by the shareholder report presented in Item 1 hereto.
(d) The registrant has not granted a waiver or an implicit waiver from a
provision of its Code of Ethics.
(e) Not applicable.
(f) (1) The registrant's Code of Ethics is attached hereto as an
exhibit.
(2) N/A
(3) N/A
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
No financial expert was chosen because the disinterested trustees are all
retired financial or investment professionals and none believe they are
qualified as financial experts.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
a) Audit Fees: the aggregate fees billed in each of the last two fiscal years
for professional services rendered by the principal accountant for the audit are
as follows:
2006: $46,500
2005: $46,500
b) Audit-Related Fees: the aggregate fees billed in each of the last two fiscal
years for assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant's financial
statements and are not reported under paragraph (a) of this item are as follows:
2006: $0
2005: $0
c) Tax Fees, the aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax compliance,
tax advice, and tax planning are as follows:
2006: $4,500
2005: $4,500
d) All Other Fees, the aggregate fees billed in each of the last two fiscal
years for products and services provided by the principal accountant, other than
the services reported in paragraphs (a) and (c) of this Item are as follows:
2006: $0
2005: $0
e) Audit Committee Pre-Approval Policies and Procedures. In accordance with Rule
2-01(c)(7)(A), the Audit committee pre-approves all of the Audit and Tax Fees of
the Registrant. All of the services described in paragraphs (b) and (c) above
were approved by the Audit Committee in accordance with paragraph (c) (7) (i)
(c) of Rule 2-01 of Regulation S-X.
(f) The percentage of hours expended on the principal accountant's engagement to
audit the Fund's financial statements for the most recent fiscal year
attributable to work performed by persons other than the principal accountant's
full-time, permanent employees was 0%.
(g) The aggregate non-audit fees billed for the last two fiscal years by the
registrant's accountant for services rendered to the registrant, the
registrant's investment adviser, and any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant (not including a sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser)
that directly related to the operations and financial reporting of the
registrant are as follows:
2006: $0
2005: $0
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The Valiant Fund has a separately designated Audit Committee, which consists of
the independent trustees. The audit committee members are John S. Culbertson, H.
Willis Day, Jr., Roger F. Dumas, and Rufus C. Cushman, Jr.
ITEM 6. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is included as a part of the report to shareholders
filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
The registrant has not made any material changes to the procedures by which
shareholders may recommend nominees to the registrant's Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
a) Based on their evaluation on October 26, 2006, the Pesident (principal
executive officer) and the Treasurer (principal financial officer) of the
Valiant Fund (the "Fund") believe that there were no significant
deficiencies in the design or operation of the internal controls of the
Fund or Integrity Investments Inc. ("II"), the investment adviser, and The
Bank of New York ("BNY"), administrator of the Fund, including disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Investment
Company Act of 1940) that adversely affected the ability of the Fund, or
II, or BNY, on behalf of the Fund, to record, process, summarize, and
report the subject matter contained in this Report, and the President and
Treasurer of the Fund have identified no material weaknesses in such
internal controls on behalf of the Fund. There was no fraud, whether or
not material, involving officers or employees of II, or BNY, or the Fund
who have a significant role in the Fund's internal controls, including
disclosure controls and procedures (as defined in Rule 30a-2(c) under the
Investment Company Act of 1940) that has come to the attention of the
Adviser or the officers of the Fund, including its President and
Treasurer.
b) There were no significant changes in the Fund and the II's internal
controls, including disclosure controls and procedures (as defined in Rule
30a-2(c) under the Investment Company Act of 1940) that apply to the Fund
or in other factors with respect to the Fund that could have significantly
affected the Fund's or the II's internal controls during the period
covered by this Form N-CSR, and no corrective actions with regard to
significant deficiencies or material weaknesses were taken by the Fund or
the RI during such period.
ITEM 12. EXHIBITS.
(a)(1) Code of Ethics.
(a)(2) Certification of principal executive officer and principal financial
officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certification of principal executive officer and principal financial officer
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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) The Valiant Fund
By (Signature and Title) /s/ Richard F. Curcio
------------------------------------------------------
Richard F. Curcio, Chairman of the Board and President
Date November 7, 2006
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/ Richard F. Curcio
------------------------------------------------------
Richard F. Curcio, Chairman of the Board and President
Date November 7, 2006
By (Signature and Title) /s/ Denis R. Curcio
------------------------------------------------------
Denis R. Curcio, Treasurer
Date November 7, 2006