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 811-08295
---------
New Providence Investment Trust
-------------------------------
(Exact name of registrant as specified in charter)
116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina 27802
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
C. Frank Watson III
116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina 27802
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 252-972-9922
------------
Date of fiscal year end: May 31, 2004
------------
Date of reporting period: November 30, 2003
-----------------
Item 1. REPORTS TO STOCKHOLDERS.
________________________________________________________________________________
WISDOM FUND
________________________________________________________________________________
a series of the New Providence Investment Trust
SEMI-ANNUAL REPORT
(Unaudited)
FOR THE PERIOD ENDED NOVEMBER 30, 2003
INVESTMENT ADVISOR
Atlanta Investment Counsel, LLC
3717 Haddon Hall Road, NW
Suite 200
Atlanta, Georgia 30327
WISDOM FUND
116 South Franklin Street
Post Office Drawer 4365
Rocky Mount, North Carolina 27803-0365
1-800-525-3863
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Wisdom Fund (the "Fund"). This
report is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus. Mutual fund shares
are not deposits or obligations of, or guaranteed by, any depository
institution. Shares are not insured by the FDIC, Federal Reserve Board or any
other agency, and are subject to investment risks, including possible loss of
principal amount invested. Neither the Fund nor the Fund's distributor is a
bank.
For more information about the Fund, including charges and expenses, call the
fund for a free prospectus. You should read the prospectus carefully before you
invest or send money.
Distributor: Capital Investment Group, Inc., Post Office Drawer 4365, Rocky
Mount, North Carolina 27803, Phone 1-800-773-3863
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2003
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 73.11%
Apparel - 0.43%
Jones Apparel Group, Inc. ............................................. 5,310 $ 183,195
-----------
Banks - 3.21%
M & T Bank Corporation ................................................ 2,030 190,556
SunTrust Banks, Inc. .................................................. 1,100 78,155
Wells Fargo Company ................................................... 18,922 1,084,798
-----------
1,353,509
-----------
Beverages - 7.66%
The Coca-Cola Company ................................................. 69,430 3,228,495
-----------
Building Materials - 0.85%
(a)American Standard Companies, Inc. ..................................... 3,230 322,031
(a)USG Corporation ....................................................... 2,400 36,168
-----------
358,199
-----------
Chemicals - 1.25%
Great Lakes Chemical Corporation ...................................... 3,220 73,126
The Sherwin-Williams Company .......................................... 13,970 453,047
-----------
526,173
-----------
Commercial Services - 2.52%
H&R Block, Inc. ....................................................... 3,320 180,243
(a)Iron Mountain Incorporated ............................................ 2,600 95,680
Moody's Corporation ................................................... 13,705 785,022
-----------
1,060,945
-----------
Cosmetics & Personal Care - 2.51%
The Gillette Company .................................................. 31,380 1,058,447
-----------
Diversified Financial Services - 4.02%
American Express Company .............................................. 37,050 1,693,556
-----------
Electric - 1.90%
Entergy Corporation ................................................... 4,550 240,513
FPL Group, Inc. ....................................................... 5,865 372,721
Progress Energy, Inc. ................................................. 4,250 186,235
-----------
799,469
-----------
Food - 1.56%
Sysco Corporation ..................................................... 18,166 659,789
-----------
Health Care Services - 0.32%
(a)Five Star Quality Care, Inc. .......................................... 4 11
HCA Inc. .............................................................. 3,200 134,112
-----------
134,123
-----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2003
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Holding Companies - Diversified - 0.70%
Leucadia National Corporation ......................................... 7,000 $ 297,500
-----------
Home Builders - 0.11%
(a)Champion Enterprises Inc. ............................................. 6,700 48,374
-----------
Home Furnishings - 0.57%
Ethan Allen Interiors, Inc. ........................................... 4,430 180,301
La-Z-Boy Incorporated ................................................. 3,000 60,600
-----------
240,901
-----------
Insurance - Multiline - 16.61%
Allstate Corporation .................................................. 24,750 999,405
Ambac Financial Group, Inc. ........................................... 7,680 528,000
American International Group, Inc. .................................... 26,450 1,532,777
Brown & Brown ......................................................... 7,330 230,529
Everest Re Group, Ltd. ................................................ 17,215 1,414,901
PartnerRe Ltd. ........................................................ 11,005 613,199
RenaissanceRe Holdings Ltd. ........................................... 32,478 1,556,671
Willis Group Holdings Limited ......................................... 3,800 125,590
-----------
7,001,072
-----------
Insurance - Property & Casualty - 15.43%
ACE Limited ........................................................... 12,847 468,273
Fidelity National Financial, Inc. ..................................... 26,921 951,119
Infinity Property & Casualty Corporation .............................. 6,900 227,838
(a)Markel Corporation .................................................... 7,200 1,852,200
(a)ProAssurance Corporation .............................................. 6,900 213,210
The Chubb Corporation ................................................. 15,400 1,007,930
The Progressive Corporation ........................................... 5,460 426,426
Wesco Financial Corporation ........................................... 386 134,733
White Mountains Insurance Group Ltd. .................................. 2,800 1,223,600
-----------
6,505,329
-----------
Media - 2.20%
Gannett Company, Inc. ................................................. 1,698 147,047
The Washington Post Company ........................................... 970 779,345
-----------
926,392
-----------
Metal Fabrication & Hardware - 0.07%
(a)Mueller Industries, Inc. .............................................. 850 27,472
-----------
Miscellaneous Manufacturing - 0.11%
Dover Corporation ..................................................... 1,200 46,068
-----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2003
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Oil & Gas - 1.28%
(a)Evergreen Resources, Inc. ............................................. 4,800 $ 134,544
Exxon Mobil Corporation ............................................... 5,000 180,850
PetroChina Company Limited ............................................ 6,000 222,480
-----------
537,874
-----------
Packaging & Containers - 0.42%
(a)Sealed Air Corporation ................................................ 3,352 176,885
-----------
Pipelines - 1.51%
Kinder Morgan, Inc. ................................................... 11,700 637,650
-----------
Real Estate Investment Trusts - 0.46%
HRPT Properties Trust ................................................. 575 5,578
Tanger Factory Outlet Centers, Inc. ................................... 2,735 112,545
The Town & Country Trust .............................................. 3,156 74,797
-----------
192,920
-----------
Retail - 2.80%
Brown Shoe Company, Inc. .............................................. 3,300 115,269
Lowe's Companies, Inc. ................................................ 4,530 264,099
(a)P.F. Chang's China Bistro, Inc. ....................................... 1,000 53,980
Wendy's International, Inc. ........................................... 5,150 199,975
(a)Yum! Brands, Inc. ..................................................... 5,150 177,624
(a)Zale Corporation ...................................................... 6,800 368,220
-----------
1,179,167
-----------
Software - 1.11%
Automatic Data Processing, Inc. ....................................... 4,900 187,327
First Data Corporation ................................................ 7,470 282,740
-----------
470,067
-----------
Textiles - 3.50%
(a)Mohawk Industries, Inc. ............................................... 20,495 1,477,280
-----------
Total Common Stocks (Cost $26,812,377) ........................................................ 30,820,851
-----------
MUTUAL FUNDS - 4.83%
New America High Income Fund Inc. .......................................... 20,000 41,200
PIMCO High Yield Fund ...................................................... 188,453 1,805,380
PIMCO High Income Fund ..................................................... 5,600 81,088
Templeton Global Income Fund Inc. .......................................... 12,000 107,520
-----------
Total Mutual Funds (Cost $1,943,144) .......................................................... 2,035,188
-----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2003
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANY - 0.43%
Evergreen Institutional Municipal Money Market Fund ........................ 180,561 $ 180,561
(Cost $180,561) -----------
Principal
---------
U.S. GOVERNMENT OBLIGATIONS - 21.34%
United States Treasury Bill due 12/11/03 .................................... $9,000,000 8,997,777
(Cost $8,997,360) -----------
Total Value of Investments (Cost $37,933,442 (b)) ................................. 99.71 % $42,034,377
Other Assets Less Liabilities ..................................................... 0.29 % 123,908
------ -----------
Net Assets .................................................................. 100.00 % $42,158,285
====== ===========
(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation/
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation ................................................................................. $ 4,557,270
Unrealized depreciation ................................................................................. (456,335)
-----------
Net unrealized appreciation ................................................................... $ 4,100,935
===========
See accompanying notes to financial statements
WISDOM FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003
(Unaudited)
ASSETS
Investments, at value (cost $37,933,442) ........................................................ $42,034,377
Income receivable ............................................................................... 57,568
Receivable for fund shares sold ................................................................. 154,403
Prepaid expenses ................................................................................ 11,821
-----------
Total assets ............................................................................... 42,258,169
-----------
LIABILITIES
Accrued expenses ................................................................................ 48,952
Payable for fund shares redeemed ................................................................ 48,575
Disbursements in excess of cash on demand deposit ............................................... 2,357
-----------
Total liabilities .......................................................................... 99,884
-----------
NET ASSETS ............................................................................................ $42,158,285
===========
NET ASSETS CONSIST OF
Paid-in capital ................................................................................. $38,096,603
Accumulated net investment loss ................................................................. (75,441)
Undistributed net realized gain on investments .................................................. 36,188
Net unrealized appreciation on investments ...................................................... 4,100,935
-----------
$42,158,285
===========
INSTITUTIONAL CLASS SHARES
Net asset value, redemption and offering price per share
($4,254,173 / 362,610 shares) .............................................................. $ 11.73
===========
INVESTOR CLASS SHARES
Net asset value, redemption and offering price per share
($17,428,154 / 1,489,878 shares) ........................................................... $ 11.70
===========
Maximum offering price per share (100 / 94.25 of $11.70) ........................................ $ 12.41
===========
CLASS B SHARES
Net asset value, redemption and offering price per share
($13,847,785 / 1,202,478 shares) ........................................................... $ 11.52
===========
CLASS C SHARES
Net asset value, redemption and offering price per share
($6,628,173 / 573,083 shares) .............................................................. $ 11.57
===========
See accompanying notes to financial statements
WISDOM FUND
STATEMENT OF OPERATIONS
Period ended November 30, 2003
(Unaudited)
NET INVESTMENT LOSS
Income
Interest ...................................................................................... $ 28,512
Dividends ..................................................................................... 276,817
-----------
Total income .............................................................................. 305,329
-----------
Expenses
Investment advisory fees (note 2) ............................................................. 98,353
Fund administration fees (note 2) ............................................................. 24,588
Distribution and service fees - Investor Class Shares (note 3) ................................ 19,428
Distribution and service fees - Class B Shares (note 3) ....................................... 66,801
Distribution and service fees - Class C Shares (note 3) ....................................... 30,904
Custody fees .................................................................................. 6,189
Registration and filing administration fees (note 2) .......................................... 13,074
Fund accounting fees (note 2) ................................................................. 28,967
Audit fees .................................................................................... 8,261
Legal fees .................................................................................... 13,732
Securities pricing fees ....................................................................... 2,755
Shareholder recordkeeping fees (note 2) ....................................................... 23,772
Shareholder servicing expenses ................................................................ 5,023
Registration and filing expenses .............................................................. 25,148
Printing expenses ............................................................................. 6,685
Trustee fees and meeting expenses ............................................................. 1,951
Other operating expenses ...................................................................... 5,139
-----------
Total expenses ............................................................................ 380,770
-----------
Net investment loss .................................................................. (75,441)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions ..................................................... 449,312
Change in unrealized appreciation (depreciation) on investments .................................... 1,668,386
-----------
Net realized and unrealized gain on investments ............................................... 2,117,698
-----------
Net increase in net assets resulting from operations ...................................... $ 2,042,257
===========
See accompanying notes to financial statements
WISDOM FUND
STATEMENTS OF CHANGES IN NET ASSETS
----------------------------------------------------
Period ended Year ended
November 30, May 31,
2003 (a) 2003
----------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss ............................................................... $ (75,441) $ (212,866)
Net realized gain (loss) from investment transactions ............................. 449,312 (179,255)
Change in unrealized appreciation (depreciation) on investments ................... 1,668,386 1,023,603
----------- -----------
Net increase in net assets resulting from operations ......................... 2,042,257 631,482
----------- -----------
Capital share transactions
Increase in net assets resulting from capital share transactions (b) .............. 3,631,973 23,073,111
----------- -----------
Total increase in net assets .......................................... 5,674,230 23,704,593
NET ASSETS
Beginning of period ................................................................... 36,484,055 12,779,462
----------- -----------
End of period ......................................................................... $42,158,285 $36,484,055
=========== ===========
(a) Unaudited.
(b) A summary of capital share activity follows:
------------------------------------------------------------------------
Period ended Year ended
November 30, 2003 (a) May 31, 2003
Shares Value Shares Value
- ---------------------------------------------------- ------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
- ----------------------------------------------------
Shares sold ........................................ 15,723 $ 177,479 59,533 $ 629,968
Shares redeemed .................................... (33,544) (376,695) (19,266) (200,123)
----------- ----------- ----------- -----------
Net (decrease) increase ....................... (17,821) $ (199,216) 40,267 $ 429,845
=========== =========== =========== ===========
- ----------------------------------------------------
INVESTOR CLASS SHARES
- ----------------------------------------------------
Shares sold ........................................ 388,694 $ 4,398,083 1,186,944 $12,484,955
Shares redeemed .................................... (144,608) (1,637,435) (178,198) (1,844,784)
----------- ----------- ----------- -----------
Net increase .................................. 244,086 $ 2,760,648 1,008,746 $10,640,171
=========== =========== =========== ===========
- ----------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------
Shares sold ........................................ 141,361 $ 1,568,855 869,053 $ 9,061,351
Shares redeemed .................................... (105,841) (1,181,114) (76,569) (796,003)
----------- ----------- ----------- -----------
Net increase .................................. 35,520 $ 387,741 792,484 $ 8,265,348
=========== =========== =========== ===========
- ----------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------
Shares sold ........................................ 74,822 $ 833,955 401,147 $ 4,218,789
Shares redeemed .................................... (13,405) (151,155) (46,073) (481,042)
----------- ----------- ----------- -----------
Net increase .................................. 61,417 $ 682,800 355,074 $ 3,737,747
=========== =========== =========== ===========
- ----------------------------------------------------
FUND SUMMARY
- ----------------------------------------------------
Shares sold ........................................ 620,600 $ 6,978,372 2,516,677 $26,395,063
Shares redeemed .................................... (297,398) (3,346,399) (320,106) (3,321,952)
----------- ----------- ----------- -----------
Net increase .................................. 323,202 $ 3,631,973 2,196,571 $23,073,111
=========== =========== =========== ===========
See accompanying notes to financial statements
WISDOM FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INSTITUTIONAL CLASS SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 30,
2003 (a) 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................... $ 11.12 $ 11.54 $ 10.80 $ 9.90 $ 9.91
Income (loss) from investment operations
Net investment income (loss) ................... 0.01 (0.03) (0.02) 0.17 0.18
Net realized and unrealized gain (loss)
on investments........................... 0.60 (0.39) 0.85 0.90 (0.01)
----------- ----------- ----------- ----------- -----------
Total from investment operations ........... 0.61 (0.42) 0.83 1.07 0.17
----------- ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income .......................... 0.00 0.00 0.00 (0.17) (0.18)
Net realized gain from investment transactions 0.00 0.00 (0.09) 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions ........................ 0.00 0.00 (0.09) (0.17) (0.18)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............................ $ 11.73 $ 11.12 $ 11.54 $ 10.80 $ 9.90
=========== =========== =========== =========== ===========
Total return .............................................. 5.49 % (3.64)% 7.78 % 10.70 % 1.64 %
=========== =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ........................... $ 4,254,173 $ 4,228,602 $ 3,924,962 $ 3,164,763 $ 2,710,312
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 1.34 %(b) 1.67 % 3.19 % 3.30 % 5.05 %
After expense reimbursements and waived fees 1.34 %(b) 1.62 % 1.71 % 0.26 % 0.00 %
Ratio of net investment income (loss) to average net assets
Before expense reimbursements and waived fees 0.22 %(b) (0.30)% (1.65)% (1.47)% (2.87)%
After expense reimbursements and waived fees 0.22 %(b) (0.25)% (0.17)% 1.57 % 2.18 %
Portfolio turnover rate .............................. 12.55 % 9.28 % 6.78 % 15.46 % 41.69 %
(a) Unaudited.
(b) Annualized.
(Continued)
WISDOM FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INVESTOR CLASS SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 30,
2003 (a) 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................... $ 11.10 $ 11.56 $ 10.84 $ 9.93 $ 9.92
Income (loss) from investment operations
Net investment income (loss) ................... 0.00 (0.04) (0.04) 0.13 0.12
Net realized and unrealized gain (loss)
on investments........................... 0.60 (0.42) 0.85 0.91 0.01
----------- ----------- ----------- ----------- -----------
Total from investment operations ........... 0.60 (0.46) 0.81 1.04 0.13
----------- ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income .......................... 0.00 0.00 0.00 (0.13) (0.12)
Net realized gain from investment transactions 0.00 0.00 (0.09) 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions ........................ 0.00 0.00 (0.09) (0.13) (0.12)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............................ $ 11.70 $ 11.10 $ 11.56 $ 10.84 $ 9.93
=========== =========== =========== =========== ===========
Total return (c) .......................................... 5.41 % (3.98)% 7.57 % 10.41 % 1.36 %
=========== =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ........................... $17,428,154 $13,824,651 $ 2,739,727 $ 1,253,515 $ 656,212
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 1.59 %(b) 1.91 % 3.39 % 3.86 % 4.29 %
After expense reimbursements and waived fees 1.59 %(b) 1.87 % 1.96 % 0.68 % 0.25 %
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees (0.04)%(b) (0.56)% (1.91)% (1.97)% (1.96)%
After expense reimbursements and waived fees (0.04)%(b) (0.53)% (0.48)% 1.21 % 2.08 %
Portfolio turnover rate ............................... 12.55 % 9.28 % 6.78 % 15.46 % 41.69 %
(a) Unaudited.
(b) Annualized.
(c) Total return does not reflect payment of a sales charge.
(Continued)
WISDOM FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
CLASS B SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31, Period ended
November 30, May 31,
2003 (a) 2003 2002 2001 2000 (b)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................... $ 10.97 $ 11.50 $ 10.87 $ 9.97 $ 10.20
Income (loss) from investment operations
Net investment (loss) income ................... (0.04) (0.10) (0.07) 0.06 0.04
Net realized and unrealized gain (loss)
on investments........................... 0.59 (0.43) 0.79 0.90 (0.23)
----------- ----------- ----------- ----------- -----------
Total from investment operations ........... 0.55 (0.53) 0.72 0.96 (0.19)
----------- ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income .......................... 0.00 0.00 0.00 (0.06) (0.04)
Net realized gain from investment transactions 0.00 0.00 (0.09) 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions ........................ 0.00 0.00 (0.09) (0.06) (0.04)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............................ $ 11.52 $ 10.97 $ 11.50 $ 10.87 $ 9.97
=========== =========== =========== =========== ===========
Total return (d) .......................................... 5.01 % (4.61)% 6.72 % 9.60 % (1.85)%
=========== =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ........................... $13,847,785 $12,795,975 $ 4,307,197 $ 1,796,569 $ 1,168,374
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 2.34 %(c) 2.66 % 4.14 % 4.33 % 4.09 %(c)
After expense reimbursements and waived fees 2.34 %(c) 2.62 % 2.71 % 1.28 % 1.00 %(c)
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees (0.79)%(c) (1.31)% (2.66)% (2.50)% (1.78)%(c)
After expense reimbursements and waived fees (0.79)%(c) (1.27)% (1.23)% 0.56 % 1.31 %(c)
Portfolio turnover rate ............................. 12.55 % 9.28 % 6.78 % 15.46 % 41.69 %
(a) Unaudited.
(b) For the period from November 16, 1999 (commencement of operations) to May 31, 2000.
(c) Annualized.
(d) Total return does not reflect payment of a sales charge.
(Continued)
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
CLASS C SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31, Period ended
November 30, May 31,
2003 (a) 2003 2002 2001 2000 (b)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................... $ 11.01 $ 11.54 $ 10.91 $ 9.98 $ 10.20
Income (loss) from investment operations
Net investment (loss) income ................... (0.04) (0.09) (0.10) 0.03 0.03
Net realized and unrealized gain (loss)
on investments........................... 0.60 (0.44) 0.82 0.93 (0.22)
----------- ----------- ----------- ----------- -----------
Total from investment operations ........... 0.56 (0.53) 0.72 0.96 (0.19)
----------- ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income .......................... 0.00 0.00 0.00 (0.03) (0.03)
Net realized gain from investment transactions 0.00 0.00 (0.09) 0.00 0.00
----------- ----------- ----------- ----------- -----------
Total distributions ........................ 0.00 0.00 (0.09) (0.03) (0.03)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............................ $ 11.57 $ 11.01 $ 11.54 $ 10.91 $ 9.98
=========== =========== =========== =========== ===========
Total return (d) ........................................... 5.09 % (4.59)% 6.69 % 9.64 % (1.86)%
=========== =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ............................$ 6,628,173 $ 5,634,827 $ 1,807,576 $ 987,119 $ 173,395
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees 2.34 %(c) 2.66 % 4.18 % 4.44 % 4.07 %(c)
After expense reimbursements and waived fees 2.34 %(c) 2.62 % 2.71 % 1.41 % 1.00 %(c)
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees (0.79)%(c) (1.31)% (2.66)% (2.62)% (1.77)%(c)
After expense reimbursements and waived fees (0.79)%(c) (1.27)% (1.19)% 0.40 % 1.30 %(c)
Portfolio turnover rate .............................. 12.55 % 9.28 % 6.78 % 15.46 % 41.69 %
(a) Unaudited.
(b) For the period from November 16, 1999 (commencement of operations) to May 31, 2000.
(c) Annualized.
(d) Total return does not reflect payment of a sales charge.
See accompanying notes to financial statements
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2003
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Wisdom Fund (the "Fund") is a non-diversified series of shares of
beneficial interest of the New Providence Investment Trust (the "Trust"),
an open-ended management investment company. The Trust was organized on
July 9, 1997 as a Massachusetts Business Trust and is registered under the
Investment Company Act of 1940, as amended (the "Act"). The Fund began
operations on February 16, 1999. The investment objective of the Fund is to
seek maximum total return consisting of any combination of capital
appreciation, realized and unrealized, and income under the constantly
varying market conditions. The Board of Trustees of the Trust (the
"Trustees") approved, on October 7, 1999, a plan to authorize two new
classes of shares designated as Class B Shares and Class C Shares. On
November 16, 1999, the Class B Shares and Class C Shares commenced
operations. The Fund has an unlimited number of authorized shares, which
are divided into four classes - Institutional Class Shares, Investor Class
Shares, Class B shares and Class C shares.
Each class of shares has equal rights as to assets of the Fund, and the
classes are identical except for differences in their sales charge
structures and ongoing distribution and service fees. Income, expenses
(other than distribution and service fees, which are not attributable to
the Institutional Class Shares), and realized and unrealized gains or
losses on investments are allocated to each class of shares based upon its
relative net assets. All classes have equal voting privileges, except where
otherwise required by law or when the Trustees determine that the matter to
be voted on affects only the interests of the shareholders of a particular
class. The following is a summary of significant accounting policies
followed by the Fund.
A. Security Valuation - The Fund's investments in securities are carried
at value. Securities listed on an exchange or quoted on a national
market system are valued at the close of normal trading on the New
York Stock Exchange, generally 4:00 p.m. Eastern Time. Other
securities traded in the over-the-counter market and listed securities
for which no sale was reported on that date are valued at the most
recent bid price. Securities for which market quotations are not
readily available, if any, are valued by using an independent pricing
service or by following procedures approved by the Trustees.
Short-term investments are valued at cost, which approximates value.
B. Federal Income Taxes - No provision has been made for federal income
taxes since substantially all taxable income has been distributed to
shareholders. It is the policy of the Fund to comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies and to make sufficient distributions of taxable
income to relieve it from all federal income taxes.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and income tax purposes primarily
because of losses incurred subsequent to October 31, which are
deferred for income tax purposes. The character of distributions made
during the year from net investment income or net realized gains may
differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the year
that the income or realized gains were recorded by the Fund.
The Fund has capital loss carryforwards for federal income tax
purposes of $339,603, of which $174,661 expires in the year 2010 and
$164,942 expires in the year 2011. It is the intention of the Trustees
not to distribute any realized gains until the carryforwards have been
offset or expire.
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2003
(Unaudited)
C. Investment Transactions - Investment transactions are recorded on
trade date. Realized gains and losses are determined using the
specific identification cost method. Interest income is recorded daily
on an accrual basis. Dividend income is recorded on the ex-dividend
date.
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September, and December on a date
selected by the Trustees. Distributions to shareholders are recorded
on the ex-dividend date. In addition, distributions may be made
annually in December out of net realized gains through October 31 of
that year. Distributions to shareholders are recorded on the
ex-dividend date. The Fund may make a supplemental distribution
subsequent to the end of its fiscal year ending May 31.
E. Use of Estimates - The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
assumptions that affect the amounts of assets, liabilities, expenses
and revenues reported in the financial statements. Actual results
could differ from those estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, Atlanta Investment Counsel,
LLC (the "Advisor") provides the Fund with a continuous program of
supervision of the Fund's assets, including the composition of its
portfolio, and furnishes advice and recommendations with respect to
investments, investment policies, and the purchase and sale of securities.
As compensation for its services, the Advisor receives a fee at the annual
rate of 0.50% of the first $500 million of the Fund's average daily net
assets and 0.40% of all assets over $500 million.
The Advisor currently intends to voluntarily waive all or a portion of its
fee and to reimburse expenses of the Fund to limit total Fund operating
expenses to a maximum of 1.75% of the average daily net assets of the
Fund's Institutional Class Shares, a maximum of 2.00% of the average daily
net assets of the Fund's Investor Class Shares, and a maximum of 2.75% of
the average daily net assets of the Fund's Class B Shares and Class C
Shares. There can be no assurance that the foregoing voluntary fee waivers
or reimbursements will continue. The Advisor did not waive any fees or
reimburse operating expenses incurred by the Fund for the period ended
November 30, 2003.
The Fund's administrator, The Nottingham Company (the "Administrator"),
provides administrative services to and is generally responsible for the
overall management and day-to-day operations of the Fund pursuant to an
accounting and administrative agreement with the Trust. As compensation for
its services, the Administrator receives a fee at the annual rate of 0.125%
of the Fund's first $50 million of average daily net assets, 0.100% of the
next $50 million, and 0.075% of average daily net assets over $100 million.
The Administrator also receives a monthly fee of $2,250 for accounting and
record-keeping services for the initial class of shares and $750 per month
for each additional class of shares, plus 0.01% of the average annual net
assets. The contract with the Administrator provides that the aggregate
fees for the aforementioned administration shall not be less than $2,000
per month. The Administrator also receives the following to procure and pay
the custodian for the Trust: 0.02% on the first $100 million of the Fund's
net assets and 0.009% on all assets over $100 million, plus transaction
fees, with a minimum annual fee of $4,800. The Administrator also charges
the Fund for certain expenses involved with the daily valuation of
portfolio securities, which are believed to be immaterial in amount.
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2003
(Unaudited)
NC Shareholder Services, LLC (the "Transfer Agent") serves as the Fund's
transfer, dividend paying, and shareholder servicing agent. The Transfer
Agent maintains the records of each shareholder's account, answers
shareholder inquiries concerning accounts, processes purchases and
redemptions of the Fund's shares, acts as dividend and distribution
disbursing agent, and performs other shareholder servicing functions. The
Transfer Agent is compensated for its services based upon a $15 per
shareholder per year, subject to a minimum fee of $1,500 per month, plus a
$500 per month minimum fee for each additional class of shares. For the
period ended November 30, 2003, the Transfer Agent received $23,772 in such
shareholder recordkeeping fees.
Capital Investment Group, Inc. (the "Distributor") serves as the Fund's
principal underwriter and distributor. The Distributor receives any sales
charges imposed on purchases of shares and re-allocates a portion of such
charges to dealers through whom the sale was made, if any. For the period
ended November 30, 2003, the Distributor retained sales charges in the
amount of $11,672.
Certain Trustees and officers of the Trust are also officers or directors
of the Advisor or the Administrator.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
The Trustees, including the Trustees who are not "interested persons" of
the Trust as defined in the Act, adopted distribution and service plans
pursuant to Rule 12b-1 of the Act (the "Plans") applicable to the Investor
Class Shares, Class B Shares, and Class C Shares. The Act regulates the
manner in which a regulated investment company may assume costs of
distributing and promoting the sales of its shares and servicing of its
shareholder accounts.
The Plans provide that the Fund may incur certain costs, which may not
exceed 0.25% per annum of the Investor Class Shares' average daily net
assets or 1.00% per annum of the Class B Shares or Class C Shares for each
year elapsed subsequent to adoption of the Plans, for payment to the
Distributor and others for items such as advertising expenses, selling
expenses, commissions, travel, or other expenses reasonably intended to
result in sales of Investor Class Shares, Class B Shares and Class C Shares
in the Fund or support servicing of those classes' shareholder accounts.
The Fund incurred $19,428, $66,801, and $30,904, in distribution and
service fees under the Plans with respect to Investor Class Shares, Class B
Shares, and Class C Shares, respectively, for the period ended November 30,
2003.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, excluding long-term U.S. government
securities and short-term obligations, aggregated $8,409,409 and
$4,601,187, respectively, for the period ended November 30, 2003. Purchases
and sales of long-term U.S. government securities aggregated $45,978,964
and $45,011,000, respectively, for the period ended November 30, 2003.
PROXY VOTING POLICY
A copy of the Trust's Proxy Voting and Disclosure Policy and the Advisor's
Proxy Voting and Disclosure Policy are included as Appendix B to the Fund's
Statement of Additional Information and is available, without charge, upon
request, by calling 1-800-773-3863. After June 30, 2004, information
regarding how the Fund voted proxies relating to portfolio securities
during the most recent 12-month period ended June 30 will be available (1)
without charge, upon request, by calling the Fund at the number above and
(2) on the SEC's website at http://www.sec.gov.
________________________________________________________________________________
WISDOM FUND
________________________________________________________________________________
a series of the New Providence Investment Trust
This report has been prepared for shareholders
and may be distributed to others only if preceded
or accompanied by a current prospectus.
Item 2. CODE OF ETHICS.
Not applicable.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
Items 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
Items 6. [RESERVED]
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
Item 8. [RESERVED]
Item 9. CONTROLS AND PROCEDURES.
(a) The Principal Executive Officer and the Principal Financial Officer have
concluded that the registrant's disclosure controls and procedures are
effective based on their evaluation of the disclosure controls and
procedures as of a date within 90 days of the filing of this report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications required by Item 10.(a)(2) of Form N-CSR are filed
herewith as Exhibit 10.(a)(2).
(b) Certifications required by Item 10.(b) of Form N-CSR are filed herewith
as Exhibit 10.(b).
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.
New Providence Investment Trust
By: (Signature and Title) /s/ C. Douglas Davenport
________________________________
C. Douglas Davenport
President, Treasurer, Principal Executive
Officer and Principal Financial Officer
Date: January 20, 2004
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/ C. Douglas Davenport
________________________________
C. Douglas Davenport
President, Treasurer, Principal Executive
Officer and Principal Financial Officer
New Providence Investment Trust
Date: January 20, 2004