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
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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
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(Address of principal executive offices) (Zip code)
Julian G. Winters
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, 2005
------------
Date of reporting period: November 30, 2004
-----------------
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, 2004
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
DISTRIBUTOR
Capital Investment Group, Inc.
Post Office Drawer 4365
Rocky Mount, North Carolina 27803
1-800-773-3863
- --------------------------------------------------------------------------------
Investment in the Fund is subject to investment risks, including, without
limitation, tracking risks (an investor in the Fund should not expect that the
investment performance of the Fund will be able to track the investment
performance of Berkshire Hathaway, Inc.), industry concentration risk and other
risks as set forth in the Fund's prospectus. More information about these risks
and other risks can be found in the Fund's prospectus.
The performance information quoted in this semi-annual report represents past
performance, which is not a guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance data quoted. An investor
may obtain performance data current to the most recent month-end by visiting
www.ncfunds.com.
An investor should consider the investment objectives, risks, and charges and
expenses of the Fund carefully before investing. The prospectus contains this
and other information about the Fund. A copy of the prospectus is available at
www.ncfunds.com or by calling Shareholder Services at 1-800-773-3863. The
prospectus should be read carefully before investing.
- --------------------------------------------------------------------------------
[BAR CHART HERE]
Asset Allocation as of November 30, 2004 (% of net assets)
Market Value
Industry (000's)
------------ -------------
Apparel - 0.27% 135,456
Banks - 2.85% 1,461,224
Beverages - 5.33% 2,729,293
Building Materials - 0.62% 318,919
Chemicals - 1.22% 623,062
Commercial Services - 3.01% 1,541,204
Cosmetics & Personal Care - 2.66% 1,364,716
Diversified Financial Services - 4.03% 2,064,056
Electric - 1.72% 881,295
Food - 3.29% 1,685,109
Health Care Services - 0.00% 25
Holding Companies - Diversified - 1.26% 645,810
Home Builders - 0.15% 76,916
Insurance - Multiline - 17.75% 9,093,760
Insurance - Property & Casualty - 17.02% 8,721,470
Media - 2.20% 1,125,028
Miscellaneous Manufacturing - 0.30% 153,710
Oil & Gas - 1.03% 527,800
Packaging & Containers - 0.43% 218,595
Pipelines - 1.81% 928,620
Real Estate Investment Trusts - 0.17% 88,999
Retail - 0.75% 384,166
Software - 1.34% 688,175
Textiles - 3.51% 1,797,412
Foreign Government Obligations - 5.85% 2,998,503
Mutual Funds - 3.52% 1,804,097
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2004
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 72.72%
Apparel - 0.27%
Nike, Inc. ................................................................ 1,600 $ 135,456
----------
Banks - 2.85%
M & T Bank Corporation .................................................... 2,030 213,982
SunTrust Banks, Inc. ...................................................... 1,100 78,430
Wells Fargo Company ....................................................... 18,922 1,168,812
----------
1,461,224
----------
Beverages - 5.33%
The Coca-Cola Company ..................................................... 69,430 2,729,293
----------
Building Materials - 0.62%
(a)American Standard Companies, Inc. ......................................... 8,190 318,919
----------
Chemicals - 1.22%
The Sherwin-Williams Company .............................................. 13,970 623,062
----------
Commercial Services - 3.01%
Cendant Corporation ....................................................... 9,000 204,030
(a)Iron Mountain Incorporated ................................................ 7,650 230,495
Moody's Corporation ....................................................... 13,705 1,106,679
----------
1,541,204
----------
Cosmetics & Personal Care - 2.66%
The Gillette Company ...................................................... 31,380 1,364,716
----------
Diversified Financial Services - 4.03%
American Express Company .................................................. 37,050 2,064,056
----------
Electric - 1.72%
FPL Group, Inc. ........................................................... 5,865 412,485
Great Plains Energy Inc. .................................................. 5,000 148,050
(a)Reliant Energy, Inc. ...................................................... 27,000 320,760
----------
881,295
----------
Food - 3.29%
Cadbury Schweppes PLC ..................................................... 11,500 414,000
Sysco Corporation ......................................................... 18,166 631,269
WM Wrigley Jr. Company .................................................... 9,300 639,840
----------
1,685,109
----------
Health Care Services - 0.00%
(a)Five Star Quality Care, Inc. .............................................. 4 25
----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2004
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Holding Companies - Diversified - 1.26%
Leucadia National Corporation ............................................. 10,300 $ 645,810
----------
Home Builders - 0.15%
(a)Champion Enterprises Inc. ................................................. 6,700 76,916
----------
Insurance - Multiline - 17.75%
Alleghany Corp. ........................................................... 1,000 282,570
Ambac Financial Group, Inc. ............................................... 8,380 681,545
American International Group, Inc. ........................................ 32,150 2,036,703
Everest Re Group, Ltd. .................................................... 20,015 1,686,664
Fairfax Financial Holding Ltd. ............................................ 1,500 252,975
Old Republic International Corp. .......................................... 10,000 249,900
PartnerRe Ltd. ............................................................ 11,005 673,726
Platinum Underwriters Holding Limited ..................................... 2,000 59,620
RenaissanceRe Holdings Ltd. ............................................... 36,978 1,861,842
The Allstate Corporation .................................................. 24,750 1,249,875
Transatlantic Holdings Inc. ............................................... 1,000 58,340
----------
9,093,760
----------
Insurance - Property & Casualty - 17.02%
ACE Limited ............................................................... 15,547 628,410
Fidelity National Financial, Inc. ......................................... 17,463 748,988
Infinity Property & Casualty Corporation .................................. 6,900 255,300
(a)Markel Corporation ........................................................ 7,200 2,318,400
(a)ProAssurance Corporation .................................................. 6,900 269,445
SAFECO Corporation ........................................................ 6,000 290,820
The Chubb Corporation ..................................................... 15,400 1,173,634
The Progressive Corporation ............................................... 9,360 851,666
Wesco Financial Corporation ............................................... 386 148,707
White Mountains Insurance Group Ltd. ...................................... 3,300 2,036,100
----------
8,721,470
----------
Media - 2.20%
(a)Comcast Corp. ............................................................. 2,500 75,100
Gannett Company, Inc. ..................................................... 1,698 140,068
The Washington Post Company ............................................... 970 909,860
----------
1,125,028
----------
Miscellaneous Manufacturing - 0.30%
Dover Corporation ......................................................... 3,800 153,710
----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2004
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Value
Shares (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Oil & Gas - 1.03%
Exxon Mobil Corporation ............................................. 7,000 $ 358,750
PetroChina Company Limited .......................................... 3,000 169,050
----------
527,800
---------
Packaging & Containers - 0.43%
(a)Sealed Air Corporation .............................................. 4,252 218,595
----------
Pipelines - 1.81%
Kinder Morgan, Inc. ................................................. 13,400 928,620
----------
Real Estate Investment Trusts - 0.17%
The Town & Country Trust ............................................ 3,156 88,999
----------
Retail - 0.75%
Brown Shoe Company, Inc. ............................................ 3,300 94,116
(a)P.F. Chang's China Bistro, Inc. ..................................... 1,000 56,240
(a)Yum! Brands, Inc. ................................................... 5,150 233,810
----------
384,166
----------
Software - 1.34%
Automatic Data Processing, Inc. ..................................... 7,200 327,816
First Data Corporation .............................................. 8,770 360,359
----------
688,175
----------
Textiles - 3.51%
(a)Mohawk Industries, Inc. ............................................. 20,495 1,797,412
----------
Total Common Stocks (Cost $29,647,151) .............................. 37,254,820
----------
MUTUAL FUNDS - 3.52%
Federation International Bond Fund ....................................... 127,381 1,607,551
Templeton Global Income Fund Inc. ........................................ 20,200 196,546
----------
Total Mutual Funds (Cost $1,683,735) ................................ 1,804,097
----------
(Continued)
WISDOM FUND
PORTFOLIO OF INVESTMENTS
November 30, 2004
(Unaudited)
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Interest Maturity Value
Principal Rate Date (note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS - 5.85%
(c) Bundesrepub, Deutschland......................... $ 327,000 5.250 01/04/11 $ 481,595
(c) Canadian Government Bond......................... 1,054,000 6.875 05/15/06 984,592
(c) New Zealand Government........................... 1,015,000 7.000 07/15/09 755,871
(c) New Zealand Government........................... 1,083,000 6.000 11/15/11 776,445
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Total Foreign Government Obligations (Cost $2,936,035) ................................................. 2,998,503
-----------
Total Value of Investments (Cost $34,266,921 (b)) .............................. 82.09 % $42,057,420
Other Assets Less Liabilities .................................................. 17.91 % 9,177,817
-------- -----------
Net Assets ............................................................... 100.00 % $51,235,237
======== ===========
(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:
Aggregate gross unrealized appreciation ............................................................. $ 8,577,049
Aggregrate gross unrealized depreciation ............................................................ (786,550)
-----------
Net unrealized appreciation .............................................................. $ 7,790,499
===========
(c) Expressed in United States dollars.
See accompanying notes to financial statements
WISDOM FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2004
(Unaudited)
ASSETS
Investments, at value (cost $34,266,921) ........................................................... $ 42,057,420
Cash ............................................................................................... 9,389,415
Income receivable (cost $143,003) .................................................................. 144,289
Receivable for investments sold .................................................................... 153,754
Receivable for fund shares sold .................................................................... 51,980
Other asset ........................................................................................ 11,272
------------
Total assets .................................................................................. 51,808,130
------------
LIABILITIES
Accrued expenses ................................................................................... 60,918
Payable for investment purchases ................................................................... 499,222
Payable for fund shares redeemed ................................................................... 12,204
Other liability .................................................................................... 549
------------
Total liabilities ............................................................................. 572,893
------------
NET ASSETS ............................................................................................... $ 51,235,237
============
NET ASSETS CONSIST OF
Paid-in capital .................................................................................... $ 42,275,002
Accumulated net investment loss .................................................................... (85,925)
Undistributed net realized gain on investments ..................................................... 1,254,375
Net unrealized appreciation on investments and translation of assets
and liabilities in foreign currencies ......................................................... 7,791,785
------------
$ 51,235,237
============
INSTITUTIONAL CLASS SHARES
Net asset value, redemption and offering price per share
($5,046,206 / 385,229 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ....................................... $ 13.10
============
INVESTOR CLASS SHARES
Net asset value, redemption and offering price per share
($21,347,161 / 1,638,540 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ....................................... $ 13.03
============
Maximum offering price per share (100 / 94.25 of $13.03) ........................................... $ 13.82
============
CLASS B SHARES
Net asset value, redemption and offering price per share
($15,425,947 / 1,211,792 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ....................................... $ 12.73
============
CLASS C SHARES
Net asset value, redemption and offering price per share
($9,415,923 / 736,496 shares outstanding; unlimited
shares of no par value beneficial interest authorized) ....................................... $ 12.78
============
See accompanying notes to financial statements
WISDOM FUND
STATEMENT OF OPERATIONS
Period ended November 30, 2004
(Unaudited)
NET INVESTMENT LOSS
Income
Interest ...................................................................................... $ 26,750
Dividends ..................................................................................... 337,932
------------
Total income .............................................................................. 364,682
------------
Expenses
Investment advisory fees (note 2) ............................................................. 123,587
Fund administration fees (note 2) ............................................................. 30,897
Distribution and service fees - Investor Class Shares (note 3) ................................ 26,064
Distribution and service fees - Class B Shares (note 3) ....................................... 74,158
Distribution and service fees - Class C Shares (note 3) ....................................... 44,591
Custody fees (note 2) ......................................................................... 6,448
Registration and filing administration fees (note 2) .......................................... 13,721
Fund accounting fees (note 2) ................................................................. 29,546
Audit and tax preparation fees ................................................................ 9,025
Legal fees .................................................................................... 15,041
Securities pricing fees ....................................................................... 2,707
Shareholder recordkeeping fees (note 2) ....................................................... 26,908
Shareholder servicing expenses ................................................................ 5,426
Registration and filing expenses .............................................................. 25,069
Printing expenses ............................................................................. 6,518
Compliance fees ............................................................................... 1,210
Trustee fees and meeting expenses ............................................................. 2,216
Other operating expenses ...................................................................... 7,475
------------
Total expenses ............................................................................ 450,607
------------
Net investment loss .................................................................. (85,925)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions ..................................................... 554,486
Change in unrealized appreciation on investments and translation
of assets and liabilities in foreign securities ............................................... 1,257,785
------------
Net realized and unrealized gain on investments ............................................... 1,812,271
------------
Net increase in net assets resulting from operations ...................................... $ 1,726,346
============
See accompanying notes to financial statements
WISDOM FUND
STATEMENTS OF CHANGES IN NET ASSETS
----------------------------------------------------
Period ended Year ended
November 30, May 31,
2004 (a) 2004
----------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss ..................................................... $ (85,925) $ (193,351)
Net realized gain from investment transactions .......................... 554,486 1,219,133
Change in unrealized appreciation on investments and translation
of assets and liabilities in foreign securities .................... 1,257,785 4,101,451
------------ ------------
Net increase in net assets resulting from operations ........ 1,726,346 5,127,233
------------ ------------
Capital share transactions
Increase in net assets resulting from capital share transactions (b) .... 1,355,996 6,541,607
------------ ------------
Total increase in net assets ................................ 3,082,342 11,668,840
NET ASSETS
Beginning of period ......................................................... 48,152,895 36,484,055
------------ ------------
End of period ............................................................... $ 51,235,237 $ 48,152,895
============ ============
(a) Unaudited
(b) A summary of capital share activity follows:
------------------------------------------------------------
Period ended Year ended
November 30, 2004 (a) May 31, 2004
Shares Value Shares Value
------------------------------------------------------------
- ----------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
- ----------------------------------------------------------------
Shares sold .................................................... 10,644 $ 132,531 50,016 $ 602,397
Shares redeemed ................................................ (6,592) (82,178) (49,270) (570,625)
------------ ------------ ------------ ------------
Net increase .............................................. 4,052 $ 50,353 746 $ 31,772
============ ============ ============ ============
- ----------------------------------------------------------------
INVESTOR CLASS SHARES
- ----------------------------------------------------------------
Shares sold .................................................... 209,161 $ 2,620,813 599,999 $ 7,013,977
Shares redeemed ................................................ (144,967) (1,815,892) (271,446) (3,202,206)
------------ ------------ ------------ ------------
Net increase .............................................. 64,194 $ 804,921 328,553 $ 3,811,771
============ ============ ============ ============
- ----------------------------------------------------------------
CLASS B SHARES
- ----------------------------------------------------------------
Shares sold .................................................... 51,226 $ 623,081 222,576 $ 2,562,201
Shares redeemed ................................................ (45,702) (557,939) (183,266) (2,123,336)
------------ ------------ ------------ ------------
Net increase .............................................. 5,524 $ 65,142 39,310 $ 438,865
============ ============ ============ ============
- ----------------------------------------------------------------
CLASS C SHARES
- ----------------------------------------------------------------
Shares sold .................................................... 84,979 $ 1,046,372 227,578 $ 2,712,247
Shares redeemed ................................................ (49,686) (610,792) (38,040) (453,048)
------------ ------------ ------------ ------------
Net increase .............................................. 35,293 $ 435,580 189,538 $ 2,259,199
============ ============ ============ ============
- ----------------------------------------------------------------
FUND SUMMARY
- ----------------------------------------------------------------
Shares sold .................................................... 356,010 $ 4,422,797 1,100,169 $ 12,890,822
Shares redeemed ................................................ (246,947) (3,066,801) (542,022) (6,349,215)
------------ ------------ ------------ ------------
Net increase .............................................. 109,063 $ 1,355,996 558,147 $ 6,541,607
============ ============ ============ ============
See accompanying notes to financial statements
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INSTITUTIONAL CLASS SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 31,
2004 (a) 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....................... $ 12.62 $ 11.12 $ 11.54 $ 10.80 $ 9.90
Income (loss) from investment operations
Net investment income (loss) ....................... 0.02 0.02 (0.03) (0.02) 0.17
Net realized and unrealized gain (loss)
on investments and translation of assets
and liabilities in foreign currencies........... 0.46 1.48 (0.39) 0.85 0.90
----------- ----------- ----------- ----------- -----------
Total from investment operations ............... 0.48 1.50 (0.42) 0.83 1.07
----------- ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income .............................. 0.00 0.00 0.00 0.00 (0.17)
Net realized gain from investment
transactions ................................... 0.00 0.00 0.00 (0.09) 0.00
----------- ----------- ----------- ----------- -----------
Total distributions ............................ 0.00 0.00 0.00 (0.09) (0.17)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ............................. $ 13.10 $ 12.62 $ 11.12 $ 11.54 $ 10.80
=========== =========== =========== =========== ===========
Total return ............................................... 3.80 % 13.49 % (3.64)% 7.78 % 10.70 %
=========== =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ............................ $ 5,046,206 $ 4,811,294 $ 4,228,602 $ 3,924,962 $ 3,164,763
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ...... 1.24 %(b) 1.29 % 1.67 % 3.19 % 3.30 %
After expense reimbursements and waived fees ....... 1.24 %(b) 1.29 % 1.62 % 1.71 % 0.26 %
Ratio of net investment income (loss) to average net assets
Before expense reimbursements and waived fees ...... 0.24 %(b) 0.14 % (0.30)% (1.65)% (1.47)%
After expense reimbursements and waived fees ....... 0.24 %(b) 0.14 % (0.25)% (0.17)% 1.57 %
Portfolio turnover rate .............................. 16.28 % 20.41 % 9.28 % 6.78 % 15.46 %
(a) Unaudited
(b) Annualized. (Continued)
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
INVESTOR CLASS SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 31,
2004 (a) 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................... $ 12.57 $ 11.10 $ 11.56 $ 10.84 $ 9.93
Income (loss) from investment operations
Net investment income (loss) .................... 0.00 (0.01) (0.04) (0.04) 0.13
Net realized and unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies........ 0.46 1.48 (0.42) 0.85 0.91
------------ ----------- ----------- ----------- -----------
Total from investment operations ............ 0.46 1.47 (0.46) 0.81 1.04
------------ ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income ........................... 0.00 0.00 0.00 0.00 (0.13)
Net realized gain from investment transactions .. 0.00 0.00 0.00 (0.09) 0.00
------------ ----------- ----------- ----------- -----------
Total distributions ......................... 0.00 0.00 0.00 (0.09) (0.13)
------------ ----------- ----------- ----------- -----------
Net asset value, end of period .......................... $ 13.03 $ 12.57 $ 11.10 $ 11.56 $ 10.84
============ =========== =========== =========== ===========
Total return (c) ........................................ 3.66 % 13.24 % (3.98)% 7.57 % 10.41 %
============ =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ......................... $ 21,347,161 $19,788,825 $13,824,651 $ 2,739,727 $ 1,253,515
============ =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ... 1.49 %(b) 1.54 % 1.91 % 3.39 % 3.86 %
After expense reimbursements and waived fees .... 1.49 %(b) 1.54 % 1.87 % 1.96 % 0.68 %
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees ... (0.01)%(b) (0.11)% (0.56)% (1.91)% (1.97)%
After expense reimbursements and waived fees .... (0.01)%(b) (0.11)% (0.53)% (0.48)% 1.21 %
Portfolio turnover rate ........................... 16.28 % 20.41 % 9.28 % 6.78 % 15.46 %
(a) Unaudited.
(b) Annualized
(c) Total return does not reflect payment of a sales charge. (Continued)
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
CLASS B SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 31,
2004 (a) 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................... $ 12.33 $ 10.97 $ 11.50 $ 10.87 $ 9.97
Income (loss) from investment operations
Net investment income (loss) .................... 0.00 (0.10) (0.10) (0.07) 0.06
Net realized and unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies........ 0.45 1.46 (0.43) 0.79 0.90
------------ ----------- ----------- ----------- -----------
Total from investment operations ............ 0.40 1.36 (0.53) 0.72 0.96
------------ ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income ........................... 0.00 0.00 0.00 0.00 (0.06)
Net realized gain from investment transactions .. 0.00 0.00 0.00 (0.09) 0.00
------------ ----------- ----------- ----------- -----------
Total distributions ......................... 0.00 0.00 0.00 (0.09) (0.06)
------------ ----------- ----------- ----------- -----------
Net asset value, end of period .......................... $ 12.73 $ 12.33 $ 10.97 $ 11.50 $ 10.87
============ =========== =========== =========== ===========
Total return............................................. 3.24 % 12.40 % (4.61)% 6.72 % 9.60 %
============ =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ......................... $ 15,425,947 $14,870,965 $12,795,975 $ 4,307,197 $ 1,796,569
============ =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ... 2.24 %(b) 2.29 % 2.66 % 4.14 % 4.33 %
After expense reimbursements and waived fees .... 2.24 %(b) 2.29 % 2.62 % 2.71 % 1.28 %
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees ... (0.76)%(b) (0.86)% (1.31)% (2.66)% (2.50)%
After expense reimbursements and waived fees .... (0.76)%(b) (0.86)% (1.27)% (1.23)% 0.56 %
Portfolio turnover rate ........................... 16.28 % 20.41 % 9.28 % 6.78 % 15.46 %
(a) Unaudited.
(b) Annualized (Continued)
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
CLASS C SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Period ended For the Years ended May 31,
November 31,
2004 (a) 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................... $ 12.38 $ 11.01 $ 11.54 $ 10.91 $ 9.98
Income (loss) from investment operations
Net investment income (loss) .................... (0.05) (0.09) (0.09) (0.10) 0.03
Net realized and unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies........ 0.45 1.46 (0.44) 0.82 0.93
------------ ----------- ----------- ----------- -----------
Total from investment operations ............ 0.40 1.37 (0.53) 0.72 0.96
------------ ----------- ----------- ----------- -----------
Distributions to shareholders from
Net investment income ........................... 0.00 0.00 0.00 0.00 (0.03)
Net realized gain from investment transactions .. 0.00 0.00 0.00 (0.09) 0.00
------------ ----------- ----------- ----------- -----------
Total distributions ......................... 0.00 0.00 0.00 (0.09) (0.03)
------------ ----------- ----------- ----------- -----------
Net asset value, end of period .......................... $ 12.78 $ 12.38 $ 11.01 $ 11.54 $ 10.91
============ =========== =========== =========== ===========
Total return............................................. 3.23 % 12.44 % (4.59)% 6.69 % 9.64 %
============ =========== =========== =========== ===========
Ratios/supplemental data
Net assets, end of period ......................... $ 9,415,923 $ 8,681,811 $ 5,634,827 $ 1,807,576 $ 987,119
============ =========== =========== =========== ===========
Ratio of expenses to average net assets
Before expense reimbursements and waived fees ... 2.24 %(b) 2.29 % 2.66 % 4.18 % 4.44 %
After expense reimbursements and waived fees .... 2.24 %(b) 2.29 % 2.62 % 2.71 % 1.41 %
Ratio of net investment (loss) income to average net assets
Before expense reimbursements and waived fees ... (0.76)%(b) (0.86)% (1.31)% (2.66)% (2.62)%
After expense reimbursements and waived fees .... (0.76)%(b) (0.86)% (1.27)% (1.19)% 0.40 %
Portfolio turnover rate ........................... 16.28 % 20.41 % 9.28 % 6.78 % 15.46 %
(a) Unaudited.
(b) Annualized
See accompanying notes to financial statements
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2004
(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 became effective.
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 last sales price as of 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 or which cannot be accurately
valued using the Fund's normal pricing procedures, if any, are valued
following procedures approved by the Trustees. Securities and assets
for which representative market quotations are not readily available
(e.g., if the exchange on which the portfolio security is principally
traded closes early or if trading of the particular portfolio security
is halted during the day and does not resume prior to the Fund's net
asset value calculation) or which cannot be accurately valued using
the Fund's normal pricing procedures are valued at fair value as
determined in good faith under policies approved by the Trustees. A
portfolio security's "fair value" price may differ from the price next
available for that portfolio security using the Fund's normal pricing
procedures. Instruments with maturities of 60 days or less are valued
at amortized cost, which approximates market value. 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.
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2004
(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.
F. Foreign Currency Translation - Portfolio securities and other assets
and liabilities denominated in foreign currencies are translated into
U.S. dollars based on the exchange rate of such currencies against
U.S. dollars on the date of valuation. Purchases and sales of
securities and income items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate effective the
transaction date.
The Fund does not separately report the effect of changes in foreign
exchange rates from changes in market prices on securities held. Such
changes are included in net realized and unrealized gain or loss from
investments.
Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between
the recorded amounts of dividends, interest, and foreign withholding
taxes, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from
changes in foreign exchange rates on foreign denominated assets and
liabilities other than investments in securities held at the end of
the reporting period.
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 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,
Investor Class Shares, Class B Shares, and Class C Shares. There can be no
assurance that the foregoing fee waivers or reimbursements will continue.
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2004
(Unaudited)
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 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 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 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, including
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.
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 fee per
shareholder per year, subject to a minimum fee of $1,500 per month, plus
$500 per month for each additional class of shares. In addition, the
Transfer Agent shall be entitled to reimbursement of actual out-of-pocket
expenses incurred by the Transfer Agent on behalf of the Trust or the Fund.
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, 2004, the Distributor retained sales charges in the
amount of $2,130.
Certain Trustees and officers of the Trust are also officers or directors
of the Advisor, the Distributor, 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 $26,064, $74,158, and
$44,591, 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, 2004.
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2004
(Unaudited)
NOTE 4 - INFORMATION ABOUT SHAREHOLDER EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, which may include sales charges (loads) on purchase payments and (2)
ongoing costs, including management fees; distribution (12b-1) fees; and
other Fund expenses. 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 for the entire period as indicated below.
A. Actual Expenses - The first line of the table below provides
information about the 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 entitled "Expenses Paid
During Period" to estimate the expenses you paid on your account
during this period.
B. Hypothetical Example for Comparison Purposes - The last line of the
table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an
assumed annual rate of return of 5% before expenses, which is not the
Fund's 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 Fund and other funds by comparing
this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads) on purchase payments. Therefore, the last line of 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
Account Value Account Value Expenses Paid
June 1, 2004 November 30, 2004 During Period*
-------------------- ------------------------ --------------------
Institutional Class Shares
Actual $ 1,000.00 $ 1,038.00 $ 6.34
Hypothetical (5% annual return before expenses) 1,000.00 1,018.85 6.28
Investor Class Shares
Actual 1,000.00 1,036.60 7.61
Hypothetical (5% annual return before expenses) 1,000.00 1,017.60 7.54
Class B Shares
Actual 1,000.00 1,032.40 11.41
Hypothetical (5% annual return before expenses) 1,000.00 1,013.84 11.31
Class C Shares
Actual 1,000.00 1,032.30 11.41
Hypothetical (5% annual return before expenses) 1,000.00 1,013.84 11.31
(Continued)
WISDOM FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 2004
(Unaudited)
* Expenses are equal to the Fund's annualized expense ratio (1.24%,
1.49%, 2.24%, and 2.24% for the Institutional Class Shares, Investor
Class Shares, Class B Shares, and Class C Shares, respectively)
multiplied by the average account value over the period, multiplied by
the number of days in the most recent fiscal half-year divided by 365
(to reflect the semi-annual period).
NOTE 5 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, excluding long-term U.S.
government securities and short-term obligations, aggregated
$9,190,278 and $6,648,966, respectively, for the year ended November
30, 2004. Purchases and sales of long-term U.S. government securities
aggregated $27,978,238 and $28,000,000, respectively, for the period
ended November 30, 2004.
PROXY VOTING POLICY
A copy of the Trust's Proxy Voting and Disclosure Policy and the
Adviser'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. Effective
with the 12-month period ended June 30, 2004, the Fund will file Form
N-PX stating how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 within
60 days after the end of such period. Information regarding how the
Fund voted proxies as set forth in its most recent filing of Form N-PX
will be available (i) without charge, upon request, by calling the
Fund at 1-800-773-3863; and (ii) on the SEC's website at
http://www.sec.gov.
PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the
SEC for the first and third quarters of each fiscal year on Form N-Q.
The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov. You may review and make copies at the SEC's Public
Reference Room in Washington, D.C. You may also obtain copies after
paying a duplicating fee by writing the SEC's Public Reference
Section, Washington, D.C. 20549-0102 or by electronic request to
publicinfo@sec.gov. Information on the operation of the Public
Reference Room may be obtained by calling the SEC at 202-942-8090.
________________________________________________________________________________
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.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
Item 6. SCHEDULE OF INVESTMENTS.
A copy of Schedule I - Investments in securities of unaffiliated
issuers as of the close of the reporting period is included as 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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
Item 10.SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS.
None.
Item 11.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 second fiscal
quarter of the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12.EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications required by Item 12.(a)(2) of Form N-CSR are filed
herewith as Exhibit 12.(a)(2).
(a)(3) Not applicable.
(b) Certifications required by Item 12.(b) of Form N-CSR are filed herewith
as Exhibit 12.(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 28, 2005
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 28, 2005