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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 811-06260
Quaker Investment Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
1288 Valley Forge Road
Suite 75
Valley Forge, PA 19482
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
CITCO-Quaker Fund Services, Inc.
1288 Valley Forge Road, Suite 88
Valley Forge, PA 19482
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-220-8888
Date of fiscal year end: 06/30/2003
Date of reporting period: 06/30/2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments
concerning the accuracy of the information collection burden estimate and any
suggestions for reducing the burden to Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has
reviewed this collection of information under the clearance requirements of 44
U.S.C. ss. 3507.
- 2 -
ITEM 1. ANNUAL REPORT
Annual Report
June 30, 2003
[LOGO]
Providing Entrepreneurial, Institutional Advisors Through Mutual Funds
June 30, 2003
DEAR FELLOW SHAREHOLDER:
We all know how volatile the markets were over the last 12 months. And yet,
on paper, not much happened at the Quaker Funds. Markets were flat and assets
under management remained unchanged. The market recovery is a tribute to the
strength of the U.S. financial system, and the Funds' ability to retain assets
through this turbulent time can be attributed to the strength of the stable of
managers we employ at the Quaker Funds.
o Total assets at Quaker Funds from June 30, 2002 to June 30, 2003
remain at the $265 million mark.
o Quaker Aggressive Growth continues to maintain a 5-star rating with
Morningstar.
o Manu Daftary made the Top 100 Fund Managers by BARRON's/Value Line for
the 4th straight year: 26th among the top 100 managers and first among
the "Best in Class" for his category.
o Ted Aronson and Quaker Small-Cap Value finished well above his index
(Russell 2000). In fact, he has doubled the index since fund
inception, November 26, 1996: the fund returned 11.13% compared to
5.11% as of June 30, 2003.
o Quaker Funds launched a Biotech fund (one of the few in the country)
with Sectoral Asset Management, LLC of Montreal, Quebec, Canada, as
the sub-advisor. Sectoral has the longest track record as a biotech
fund manager.
We are pleased that our philosophy of engaging only entrepreneurial money
managers to manager our Funds has met with the approval of so many new
shareholders. We continue to seek the `best and the brightest' money managers
and provide them the vehicle with which to bring their talent to the mutual fund
marketplace.
On the following pages, each of our managers has included a short review of
their Fund's performance over the past fiscal year along with their outlook for
the coming year. We hope you will take the time to familiarize yourself with
each of them.
As always, we appreciate the confidence you have shown by investing with us
and for your continued patronage.
Sincerely,
/s/ Jeffry H. King, Sr.
Jeffry H. King, Sr.
Chairman of the Board of Trustees
June 30, 2003
DEAR QUAKER AGGRESSIVE GROWTH FUND SHAREHOLDER:
The last fiscal year was a turbulent one for the stock market in that stock
prices gyrated violently all year. However, at the end of the fiscal year, all
that the S&P 500 Index was able to return was 0.25%. In comparison, our Fund
outperformed the S&P 500 Index with a return of 3.99% for Class A shares.*
During the year, in order to stave off deflationary pressures, the Federal
Reserve forced short-term interest rates down substantially. By doing so,
short-term interest rates at the end of the fiscal year stood at 1%. In
addition, the Federal Government enacted a major tax cut that was designed to
stimulate domestic job growth. This massive monetary and fiscal stimulus
(especially after the conclusion in March 2003 of military hostilities in Iraq)
has forced a large amount of liquidity, which was on the sidelines, back into
the stock market.
We are hopeful that the expansionary policies that have been enacted will
lead to a broad based sustainable economic recovery into the beginning of
calendar year 2004. Recent evidence indicates that the economy is slowly
reacting to the economic stimulus. Retail sales have been strong and business
spending is picking up. What is missing currently is job creation: since the
economy bottomed in November 2001, private non-farm payrolls have contracted by
1.2 million workers. By contrast, in the first 20 months of the past six
business cycle upswings, the private sector was able to add an average of 2.8
million workers. We do, however, expect job growth to pick up over the next few
months and this will surely boost investor confidence.
After being cautious on the stock market since early 2000, we moved the
Fund to a more fully invested position during the last fiscal year. This was due
to stock valuations becoming more attractive especially if one related them to
interest rates. However, overall valuations in the market continue to be above
historical norms and therefore stock selection remains key to out-performance
going forward. We continue to focus our stock picking on reasonably valued
growth equities that have visible sales and earnings growth, good balance
sheets, as well as motivated and strong management teams.
In closing, we would like to highlight that the Fund was recently ranked
#26 in Barron's Annual Survey of the Top 100 Mutual Fund Managers. In the same
survey, the Fund was also ranked #1 in the Aggressive Growth category. Finally,
The New York Times and The Wall Street Journal continue to rank the Fund amongst
the top mutual funds for longer-term performance.
I thank you for your continued support and confidence.
Respectfully submitted,
/s/ Manu P. Daftary
Manu P. Daftary
Portfolio Manager
* Class A performance shown is not reflective of sales charges. See Total
Return Table on the next page for performance with sales charges.
i
QUAKER AGGRESSIVE GROWTH FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM NOVEMBER 25, 1996
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
--------
Quaker Aggressive Growth Fund $29,717
Class A $ 8,000
Class B $ 8,237
Class C $ 8,357
Class I $14,192
S&P 500 Index
AVERAGE ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------------------------------------
Commencement of
operations
1 Year 5 Year through 06/30/03
with without with without with without
sales sales sales sales sales sales
charge charge charge charge charge charge
- -------------------------------------------------------------------------------------------------
Class A (inception date 11/25/1996) -1.73% 3.99% 15.80% 17.11% 17.95% 18.97%
Class B (inception date 08/01/2000) -1.95% 3.21% n/a n/a -7.37% -6.39%
Class C (inception date 07/11/2000) 2.19% 3.22% n/a n/a -6.32% -6.32%
Class I (inception date 07/20/2000) 4.23% 4.23% n/a n/a -5.90% -5.90%
S&P 500 Total Return Index n/a 0.25% n/a -1.61% n/a 5.45%
- -------------------------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
November 25, 1996 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The S&P 500 Total Return Index is a capitalization weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries.
ii
June 30, 2003
DEAR QUAKER CORE EQUITY FUND SHAREHOLDER:
For the fiscal year ended June 30, Class A shares* of your Portfolio
underperformed the Russell 1000 Growth Index**, 0.52% vs. 2.93%, but
outperformed the 0.25% return of the S&P 500 Index. During this time period,
stock market performance remained mixed. Large capitalization stocks
outperformed small capitalization stocks while growth stocks outperformed value
stocks in both large and small capitalization indices. Corporate profits
remained weak in the midst of vigorous fiscal and monetary policy stimulus.
However, the market being a forward discounting mechanism rallied sharply during
the second quarter of 2003 in anticipation of stronger profit growth for the
second half of the year.
The strongest sectors for the fiscal year were Telecomm Services and
Utilities with the weakest sectors being Consumer Staples and Financials.
Relative performance for the fiscal year slightly lagged that of the Russell
1000 Growth Index. This was mainly due to the market punishing higher financial
quality stocks and positive earnings revisions, which are emphasized within your
Portfolio. However, our focus on reasonable price-earnings valuations was
handsomely rewarded and nearly made up the entire difference.
As we begin the new fiscal year, the largest sector overweight in your
Portfolio is now Financials. Within Financials, significant positions have been
initiated in large capitalization banks including Bank of America, Citigroup and
Washington Mutual. Financials represent a relatively "cheap" way to participate
in a potential upswing in the economy with price-earnings multiples nearly half
of the underlying Index. Your Portfolio is underweight the Consumer
Discretionary and Consumer Staples sectors due to poor earnings revision trends
and high valuations, respectively. Finally, your Portfolio remains underweight
in Technology although signs of accelerating order growth have recently emerged.
We remain conservatively positioned in Technology relative to the Index since
the fundamental problem of overcapacity persists. On a positive note, there have
been signs of long-awaited consolidation within the Technology sector, which
could help alleviate overcapacity issues longer-term. In the meantime, your
Portfolio will continue to emphasize companies exhibiting high degrees of
financial quality and positive earnings revisions while selling at reasonable
price-earning valuations.
We look forward to reporting next fiscal year's performance. Thank you for
your continued confidence.
GEEWAX, TERKER & CO.
/s/ John Geewax /s/ Bruce Terker
John Geewax Bruce Terker
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
** TheFund has changed its benchmark to the Russell 1000 Growth Index as it
provides a more appropriate comparison to the Fund's holdings.
iii
QUAKER CORE EQUITY FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM NOVEMBER 25, 1996
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Core Equity Fund
Class A $ 9,920
Class B $ 5,538
Class C $ 4,866
Class I $ 4,626
Russell 1000 Growth Index Index $11,916
S & P 500 Total Return Index $14,192
AVERAGE ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------------------------------------
Commencement of
operations
1 Year 5 Year through 06/30/03
with without with without with without
sales sales sales sales sales sales
charge charge charge charge charge charge
- -------------------------------------------------------------------------------------------------
Class A (inception date 11/25/1996) -5.01% 0.52% -7.27% -6.22% -0.12% 0.74%
Class B (inception date 11/14/2000) -5.20% -0.21% n/a n/a -20.14% -19.21%
Class C (inception date 06/30/2000) -1.21% -0.21% n/a n/a -21.33% -21.33%
Class I (inception date 07/14/2000) 0.76% 0.76% n/a n/a -22.86% -22.86%
Russell 1000 Growth Index n/a 2.93% n/a -5.03% n/a 2.69%
S&P 500 Total Return Index n/a 0.25% n/a -1.61% n/a 5.45%
- -------------------------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
November 25, 1996 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values. The S&P 500 Total Return Index is a capitalization weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries.
iv
June 30, 2003
DEAR QUAKER SMALL-CAP GROWTH FUND SHAREHOLDER:
For the fiscal year ended June 30, Class A shares* of your Portfolio
underperformed the Russell 2000 Growth Index**, -12.97% vs. 0.69%, and the
- -1.64% return of the Russell 2000 Index. During this time period, stock market
performance remained mixed. Large capitalization stocks outperformed small
capitalization stocks while growth stocks outperformed value stocks in both
large and small capitalization indices. Corporate profits remained weak in the
midst of vigorous fiscal and monetary policy stimulus. However, the market being
a forward discounting mechanism rallied sharply during the second quarter of
2003 in anticipation of stronger profit growth for the second half of the year.
The strongest sectors for the fiscal year were Telecomm Services and Financials
with the weakest sectors being Consumer Staples and Materials. All of your
Portfolio's underperformance for the fiscal year resulted from the second
quarter. Therefore, it is important to understand what transpired during last
quarter as the Russell 2000 Growth Index rose over twenty-percent. Within the
small capitalization growth universe, the second quarter rally was fueled by
stocks with poor financial quality and micro-capitalizations. To illustrate,
stocks with no earnings returned over forty-percent, as did stocks with market
capitalization's less than $200 million. These areas are not emphasized within
your Portfolio since the financial markets do not reward them over the long run.
As we begin the new fiscal year, the largest sector overweights in your
Portfolio now reside in the Industrial, Energy and Financial sectors. Each
sector offers above average earnings growth relative to the Russell 2000 Growth
Index while also possessing beneath market price-earning multiples. These
sectors will also have a leveraged benefit to earnings growth from any economic
resurgence that may appear. Your Portfolio remains underweight in Health Care
mainly due to minimal exposure to Biotechnology companies. Finally, your
Portfolio recently increased its weight in higher financial quality Technology
stocks where signs of accelerating order growth have recently emerged. However,
we remain conservatively positioned relative to the Index since the fundamental
problem of overcapacity persists. On a positive note, there have been signs of
long-awaited consolidation within the Technology sector, which could help
alleviate overcapacity issues longer-term. In the meantime, your Portfolio will
continue to emphasize companies exhibiting high degrees of financial quality and
positive earnings revisions while selling at reasonable price-earning
valuations.
We look forward to reporting next fiscal year's performance. Thank you for
your continued confidence.
GEEWAX, TERKER & CO.
/s/ John Geewax /s/ Bruce Terker
John Geewax Bruce Terker
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
** The Fund has changed its benchmark to the Russell 2000 Growth Index as it
provides a more appropriate comparison to the Fund's holdings.
v
QUAKER SMALL-CAP GROWTH FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM SEPTEMBER 18, 2000
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
QUAKER SMALL-CAP GROWTH FUND
Class A $ 7,280
Class B $ 8,055
Class C $ 8,853
Class I $ 6,860
Russell 2000 Growth Index $ 6,098
Russell 2000 Index $ 9,032
AVERAGE ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Commencement of
operations
1 Year through 06/30/03
with without with without
sales sales sales sales
charge charge charge charge
- --------------------------------------------------------------------------------
Class A (inception date 06/14/2001) -17.76% -12.97% -14.38% -11.98%
Class B (inception date 03/16/2001) -18.13% -13.82% -9.00% -7.79%
Class C (inception date 10/17/2001) -14.30% -13.43% -6.91% -6.91%
Class I (inception date 09/18/2000) -11.71% -11.71% -13.03% -13.03%
Russell 2000 Growth Index n/a 0.69% n/a -16.30%
Russell 2000 Index n/a -1.64% n/a -3.60%
- --------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
September 18, 2000 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The Russell 2000 Growth Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted growth
values. The Russell 2000 Index is a widely recognized unmanaged index comprised
of the smallest 2000 companies represented in the Russell 3000 Index. The Index
currently represents approximately 8% of the market capitalization of the
Russell 3000 Index, with a market capitalization range from $128 million to $1.3
billion.
vi
June 30, 2003
DEAR QUAKER CAPITAL OPPORTUNITIES FUND SHAREHOLDER:
The stock market has enjoyed a strong rally since its mid-March low-point.
While the Capital Opportunities Fund participated with this uninterrupted
upsurge, our more cautious investment strategy and defensive holdings did not
match the hi-tech led leadership. For the fiscal year ended June 30, 2003, Class
A shares* of the Fund underperformed the S&P 500 Index -4.03% vs.0 25%. The Fund
was up 6.60% year-to-date vs. 11.7% for the S&P 500 Index.
OUR ENTIRE INVESTMENT PHILOSOPHY IS BASED ON RISK-AVERSE PRINCIPLES;
THEREFORE, WE CONTINUE TO ADHERE TO OUR CAUTIOUS INVESTMENT STANCE AS A
LONG-TERM STRATEGY. KCM's defensive stance is predicted on the combination of
three factors: the lack of a sustainable economic recovery, high valuations for
stock prices, and the lingering aftermath from "the bubbles" the Fed has
fostered. None of these factors have changed the potentially negative impact on
long-term equity portfolios. However, three factors have changed: an all-out
effort by the policymakers to revive the economy; a change in investor
psychology which has rejuvenated the upward momentum investment style that was
so evident in the late '90s; and the large shift of assets previously dedicated
to the bond market into higher yielding alternatives in the stock market, many
of which have dividends or capital gains that will qualify for a 15% tax
treatment. When the Fed's monetary policy combines with the Administration's
fiscal policies, a powerful "reflation" effort is mounted. While this endeavor
faces many headwinds, the public has chosen to embrace the policy makers'
positive actions and rhetoric as well as the massive increase in money supply
growth all of which have provided both the motivation and the means to fuel the
rally. Most money managers, fearing poor performance numbers, have become
willing accomplices to the buyers' panic.
While we have listed many reasons for caution, the total effort by both a
Fed, worried about a recovery, and a President, worried about re-election, means
that neither exertion will lack power. Thus, regardless of the lack of signs
indicating an economic rebound or the extreme over-valuations in stock prices,
THE RALLY COULD CONTINUE INTO THE SECOND HALF OF THE YEAR. For the record, we do
expect some better GDP numbers; however, we don't think they will meet consensus
expectations.
Our first priority remains the preservation of your capital. A disciplined
approach to investing and portfolio management has been recognized as the only
proven means to superior results. We do not predict the stock market: we are
risk-reward evaluators as opposed to fortune-tellers. As our superior long-term
performance numbers confirm, we have succeeded in producing an investment
process that produces value-added results.
We want to end on a positive tone. We continue to repeat the common sense
advice we first noted last July: "No one benefits from an ongoing bear market,
so the policymakers must do something if things don't improve." Let us close by
welcoming our new clients and stating that everyone at Knott Capital Management
appreciates your support and continued confidence in our abilities.
Respectfully submitted,
/s/ Charles Knott
/s/ Michael Barron
/s/ Warren Stone
Charles Knott, Michael Barron,
Warren Stone
Knott Capital Management
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
vii
QUAKER CAPITAL OPPORTUNITIES FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM JANUARY 31, 2002
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Capital Opportunities Fund
Class A $ 8,552
Class B $ 8,679
Class C $ 9,041
S & P 500 Total Return Index $ 8,835
AVERAGE ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Commencement of
operations
1 Year through 06/30/03
with without with without
sales sales sales sales
charge charge charge charge
- --------------------------------------------------------------------------------
Class A (inception date 01/31/2002) -9.31% -4.03% -10.45% -6.80%
Class B (inception date 05/02/2002) -9.50% -4.74% -11.48% -8.32%
Class C (inception date 05/02/2002) -5.69% -4.74% -8.32% -8.32%
S&P 500 Total Return Index n/a 0.25% n/a -8.41%
- --------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
January 31, 2002 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The S&P 500 Total Return Index is a capitalization weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries.
viii
June 30, 2003
DEAR QUAKER BIOTECH PHARMA-HEALTHCARE FUND SHAREHOLDER:
Since inception of the Quaker Biotech Pharma-Health Fund, Class A shares*
are up 18.30% compared with 53.33% for the Nasdaq Biotech Index. Year-to-date
the fund returned 24.13% compared with 31.24% for the index. This performance
was achieved with an average cash position of 35-40% and an average short
exposure of 5-10%.
The fund benefited from a substantial improvement in the biotech industry's
fundamentals. The regulatory environment is markedly better since FDA
Commissioner Mark McClellan took office in October 2002. The regulatory agency
has taken concrete steps to speed up the drug approval process, in particular
for drugs addressing significant unmet medical needs and generics. In parallel,
we have seen several drug approvals since the beginning of the year as well as
dramatic clinical trial results, particularly in the area of cancer therapy.
These all point towards an acceleration in biotech products sales and corporate
profits. The recent run up in share prices is hence based on very tangible
elements. Valuations are in the low to mid-range of historical averages. Large
cap biotech stocks are currently trading at 27x 2004 (estimate) Earnings Per
Share and at an Enterprise Value\Sales of 6x.
We anticipate further, although less dramatic, share price appreciation
over the next few quarters. Main beneficiaries will be emerging biotechnology
companies, with products due to hit the market in the short to medium-term. We
also anticipate solid performances from generic producers, which benefit from an
improved regulatory climate, the clear political will to favor adoption of
generics, a large number of branded products losing patent protection and
attractive valuations.
Consequently, the fund will focus on these issues while opportunistically
implementing short strategies.
Respectfully submitted,
/s/ Michael Sjostrom
Michael Sjostrom, CFA
Chief Investment Officer
Sectoral Asset Management
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
ix
QUAKER BIOTECH PHARMA-HEALTHCARE FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM SEPTEMBER 23, 2002
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Biotech Pharma-Healthcare Fund
Class A $11,179
Class B $11,182
Class C $11,639
Nasdaq Biotech Index $15,333
AVERAGE ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Commencement of
operations
through 06/30/03
with without
sales sales
charge charge
- --------------------------------------------------------------------------------
Class A (inception date 10/14/2002)* 11.79% 18.30%
Class B (inception date 09/23/2002)* 11.82% 17.70%
Class C (inception date 11/20/2002)* 16.39% 17.57%
Nasdaq Biotech Index** n/a 53.33%
- --------------------------------------------------------------------------------
*Aggregate return, class less than one year from inception
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The NASDAQ Biotechnology Index is a widely recognized, unmanaged index. It
contains companies primarily engaged in using biomedical research for the
discovery or development of novel treatments or cures for human disease which
also meet other eligibility criteria. The NASDAQ Biotechnology Index is
calculated under a modified capitalization-weighted methodology.
x
June 30, 2003
DEAR QUAKER MID-CAP VALUE FUND SHAREHOLDER:
The Quaker Mid-Cap Value Fund Class A shares* experienced a negative return
of -3.99% for the twelve months ended June 30, 2003 vs. a return of -0.64% for
the benchmark Russell Midcap Value Index. Year-to-date, Class A shares of the
Fund returned 18.26% vs. a return of 13.11% for the Russell MidCap Value Index.
Performance early in the fiscal year was significantly hampered by the fund's
exposure to cyclical companies whose earnings are correlated to the overall
health of the economy. Investors shunned economically sensitive stocks in the
summer of 2002 when it was feared that the U.S. economy might slip back into
recession.
We felt confident, however, that these undervalued companies possessed
strong earnings growth potential that would eventually be recognized once their
business fundamentals began to improve. Our patience and discipline were
rewarded when fund returns staged a strong comeback in recent months. Investors
became increasingly confident that corporate profits would continue to expand
during the second half of 2003 and carry on the momentum into 2004. As a result,
they bid up the prices of companies with modest valuations that are expected to
post the biggest future earnings gains.
The companies represented in the fund possess tremendous pent-up earnings
potential. Many of these firms in industries such as semiconductor and
semiconductor equipment, industrial commodities and trucking have come out of
the manufacturing-led downturn with a much lower cost structure and improved
liquidity. They should be able to boost earnings sharply with only modest
improvements in demand and pricing power. According to Wall Street estimates,
the companies in the fund are expected to post earnings growth in fiscal year
2004 of 21% versus a 12% increase for the benchmark Russell Midcap Value Index.
If the firms deliver on these higher growth expectations, we believe their stock
prices should respond accordingly.
Respectfully submitted,
/s/ Arnold Schneider
Arnold Schneider
Schneider Capital Management
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
xi
QUAKER MID-CAP VALUE FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM DECEMBER 31, 1997
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Mid-Cap Value Fund
Class A $11,318
Class B $10,720
Class C $11,462
Class I $11,684
Russell Mid-Cap Value Index $13,083
AVERAGE ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------------------------------------
Commencement of
operations
1 Year 5 Year through 06/30/03
with without with without with without
sales sales sales sales sales sales
charge charge charge charge charge charge
- -------------------------------------------------------------------------------------------------
Class A (inception date 12/31/1997) -9.28% -3.99% 0.72% 1.87% 2.28% 3.33%
Class B (inception date 01/05/2001) -9.33% -4.56% n/a n/a 2.93% 4.24%
Class C (inception date 07/31/2000) -5.64% -4.69% n/a n/a 4.78% 4.78%
Class I (inception date 11/21/2000) -3.70% -3.70% n/a n/a 6.15% 6.15%
Russell Midcap Value Index n/a -0.64% n/a 4.07% n/a 5.01%
- -------------------------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
December 31, 1997 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The Russell Midcap Value Index measures the performance of companies that
are part of the of the 1,000 largest U.S. companies based on total market
capitalization with lower price-to-book ratios and lower forecasted growth
values.
xii
June 30, 2003
DEAR QUAKER SMALL-CAP VALUE FUND SHAREHOLDER:
The Quaker Small-Cap Value Fund had another relatively good year -- and the
operative word here is relatively.
The Fund's official benchmark, the Russell 2000 Index (a broad-based
cross-section of the entire U.S. small-cap market) experienced a -1.64% total
return during the twelve months ended June 30, 2003, while the Quaker Small-Cap
Value Fund experienced a 2.28% total return. Excess return came from our
holdings in the Healthcare, Financial, and Capital goods sectors.
At Aronson+Johnson+Ortiz, our long-run expectation is to better our
benchmark by about 3% a year. Sometimes we'll do better (as we did this past
year, earning a 4.18% edge), and sometimes we won't (as in fiscal year 2000,
underperforming by 12.94% -- ouch!).
While investment returns can't be guaranteed, we can guarantee we'll make
every effort to outperform our benchmark by sticking to our value-oriented
investment philosophy and our disciplined investment process. You can count on
AJO to maintain a fully invested, diversified portfolio of attractive small-cap
stocks, and to continue to seize opportunities as they present themselves, while
keeping a keen eye on minimizing transaction costs.
Whether our approach outperforms the market in any given year is,
admittedly, to a depressing extent, in the hands of the investment Muses. We
hope they'll again smile on our Fund in the upcoming fiscal year!
Very truly yours,
/s/ Ted Aronson
Ted Aronson
/s/ Kevin Johnson
Kevin Johnson
/s/ Martha Ortiz
Martha Ortiz
ARONSON+JOHNSON+ORTIZ, LP
Portfolio Management Team
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
xiii
QUAKER SMALL-CAP VALUE FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM NOVEMBER 25, 1996
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Small-Cap Value Fund
Class A $18,952
Class B $11,482
Class C $12,940
Class I $11,911
Russell 2000 Index $13,895
AVERAGE ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------------------------------------
Commencement of
operations
1 Year 5 Year through 06/30/03
with without with without with without
sales sales sales sales sales sales
charge charge charge charge charge charge
- -------------------------------------------------------------------------------------------------
Class A (inception date 11/25/1996) -3.34% 2.28% 4.39% 5.58% 10.18% 11.13%
Class B (inception date 11/14/2000) -3.61% 1.46% n/a n/a 5.40% 6.63%
Class C (inception date 07/28/2000) 0.48% 1.49% n/a n/a 9.20% 9.20%
Class I (inception date 09/12/2000) 2.55% 2.55% n/a n/a 6.45% 6.45%
Russell 2000 Index n/a -1.64% n/a 0.96% n/a 5.11%
- -------------------------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
November 25, 1996 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The Russell 2000 Index is a widely recognized unmanaged index comprised of
the smallest 2000 companies represented in the Russell 3000 Index. The Index
currently represents approximately 8% of the market capitalization of the
Russell 3000 Index, with a market capitalization range from $128 million to $1.3
billion.
xiv
June 30, 2003
DEAR GEEWAX TERKER CORE VALUE FUND SHAREHOLDER:
For the fiscal year ended June 30, Class A shares* of your Portfolio
outperformed the Russell 1000 Value Index**, -0.11% vs. -1.02%, and the 0.95%
return of the Russell 1000 Index. During this time period, stock market
performance remained mixed. Large capitalization stocks outperformed small
capitalization stocks while growth stocks outperformed value stocks in both
large and small capitalization indices. Corporate profits remained weak in the
midst of vigorous fiscal and monetary policy stimulus. However, the market being
a forward discounting mechanism rallied sharply during the second quarter of
2003 in anticipation of stronger profit growth for the second half of the year.
The strongest sectors for the fiscal year were Technology and Health Care with
the weakest sectors being Materials and Energy. Relative performance for the
fiscal year solidly outpaced that of the benchmark. Although the market punished
higher financial quality stocks and positive earnings revisions, our focus on
reasonable price-earnings valuations was handsomely rewarded.
As we begin the new fiscal year, the largest sector overweight in your
Portfolio is now Industrials. Companies within the Industrials sector, such as
General Electric, Cendant and United Technologies, remain attractive due to
their ability to generate free cash flow enabling them to enhance shareholder
value by paying down debt, reducing pension liabilities or paying dividends. The
Portfolio also remains overweight within the Energy component as their earnings
provide a call option to an economic resurgence. Positions were trimmed within
the Consumer Discretionary sector due to poor earnings revision trends. Finally,
your Portfolio remains underweight in Technology although signs of accelerating
order growth have recently emerged. We remain conservatively positioned in
Technology relative to the Index since the fundamental problem of overcapacity
persists. On a positive note, there have been signs of long-awaited
consolidation within the Technology sector, which could help alleviate
overcapacity issues longer-term. In the meantime, your Portfolio will continue
to emphasize companies exhibiting high degrees of financial quality and positive
earnings revisions while selling at reasonable price-earning valuations.
We look forward to reporting next fiscal year's performance. Thank you for
your continued confidence.
GEEWAX, TERKER & CO.
/s/ John Geewax /s/ Bruce Terker
John Geewax Bruce Terker
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
** TheFund has changed its benchmark to the Russell 1000 Value Index as it
provides a more appropriate comparison to the Fund's holdings.
xv
GEEWAX TERKER CORE VALUE FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM MARCH 26, 2003
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Geewax Terker Core Value Fund
Class A $ 8,770
Russell 1000 Value Index $ 9,133
Russell 1000 Index $ 8,808
AVERAGE ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Commencement of
operations
1 Year through 06/30/03
with without with without
sales sales sales sales
charge charge charge charge
- --------------------------------------------------------------------------------
Class A (inception date 03/26/2002) -5.60% -0.11% -9.87% -5.74%
Russell 1000 Value Index n/a -1.02% n/a -6.93%
Russell 1000 Index n/a 0.95% n/a -9.56%
- --------------------------------------------------------------------------------
** The benchmark since inception returns are calculated since commencement of
March 26, 2002 through June 30, 2003.
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
Russell 1000 Index is a widely recognized unmanaged index of 1000 companies
in the U.S. It is generally considered to represent 90% of the publicly traded
companies as measured by market capitalization. The Russell 1000 Value Index
measures the performance of those Russell 1000 companies with lower
price-to-book ratios and lower forecasted growth values.
xvi
June 30, 2003
DEAR QUAKER FIXED INCOME FUND SHAREHOLDER:
For the fiscal year ended June 20, 2003, the Fund's total return for Class
A shares* was 2.52% vs. 10.53% for the Salomon Broad Investment Grade Index and
8.72% for the Lehman Intermediate Aggregate Index**, the Fund's new benchmark,
over the same period. The Fund's total return year-to-date for the Class A
shares was 2.79% vs. a 4.01% for the Salomon Broad Investment Grade Index and a
3.19% for the Lehman Intermediate U.S. Aggregate Index. As a new manager to the
Quaker Fund complex, we are very excited about the value we can add to the Fixed
Income Fund.
Since taking over the Fund on April 1st, 2003 we have repositioned the fund
to match our investment philosophy. We employ an active management approach that
seeks to provide our clients with enhanced returns while preserving both capital
and income under all market conditions. Our investment approach tends to
underweight treasury securities and overweight investment grade spread products
(e.g. mortgage-backed securities, agencies and corporates) while limiting
duration deviations in an attempt to achieve superior returns.
In the opening paragraph you will notice a new benchmark has been
introduced. We have selected the Lehman Intermediate Aggregate Index for two
primary reasons:
1. We feel it best represents our management style in that it includes
only investment grade taxable fixed income securities and includes all
of the asset classes that ACM considers when positioning a portfolio.
2. The average maturity of the intermediate index is shorter than the
Salomon Broad Based Investment Grade Index, which we feel provides
additional protection when entering periods of rising interest rates.
Over the coming year, our economic forecast focuses on stable to rising
interest rates with higher volatility from week to week. With this top down
interest rate call, we will focus our effort on the bottom-up search for value
in higher coupon spread products such as mortgage-backed securities that
typically provide protection and yield enhancement in this type of interest rate
environment.
We at Andres Capital Management are extremely excited to be a part of the
Quaker team and to bring our full investment resources to bear during the coming
year.
Respectfully submitted,
/s/ Robert P. Andres
Robert P. Andres
Andres Capital Management
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
** The Fund has changed its benchmark to the Lehman Intermediate Aggregate
Index as it provides a more appropriate comparison to the Fund's holdings.
xvii
QUAKER FIXED INCOME FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM NOVEMBER 25, 1996
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker Fixed Income Fund
Class A $13,478
Class B $10,505
Class C $11,168
Class I $11,170
Salomon Brothers Broad
Investment - Grade Index $16,311
Lehman U.S. Intermediate
Aggregate Index $15,952
AVERAGE ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------------------------------------
Commencement of
operations
1 Year 5 Year through 06/30/03
with without with without with without
sales sales sales sales sales sales
charge charge charge charge charge charge
- -------------------------------------------------------------------------------------------------
Class A (inception date 11/25/1996) -1.84% 2.52% 3.83% 4.74% 4.63% 5.32%
Class B (inception date 04/05/2001) -3.46% 1.62% n/a n/a 2.23% 3.63%
Class C (inception date 01/16/2001) 0.62% 1.64% n/a n/a 4.58% 4.58%
Class I (inception date 04/12/2001) 2.80% 2.80% n/a n/a 5.15% 5.15%
Lehman Brothers U.S. Intermediate
Aggregate Index** n/a 8.72% n/a 7.42% n/a 7.35%
Salomon Broad Investment Grade Index** n/a 10.53% n/a 7.53% n/a 7.70%
- -------------------------------------------------------------------------------------------------
** The Benchmark since inception returns are calculated since commencement of
November 25, 1996 through June 30, 2003
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
The Lehman Intermediate Aggregate Index a comprehensive benchmark that
measures the performance of intermediate maturity range (from 1 year up to, but
not including, 10 years) of U.S. domestic, taxable, investment grade fixed rate
government and corporate securities, mortgage pass-through securities, and
asset-backed securities. The Salomon Broad Investment Grade Index is an
unmanaged index composed of a broad variety of investment grade bonds.
xviii
June 30, 2003
DEAR QUAKER HIGH YIELD FUND SHAREHOLDER:
The total return for the High Yield Fund continued to underperform due to
continued weakness in high yield spreads and adverse issue-specific events. The
total return for the Quaker High Yield fund's Class A shares* was -27.07% for
the Fund's fiscal year ended June 30, 2003, as compared to the 22.77% return in
the Lehman U.S. Corporate High Yield index, the Fund's performance benchmark,
over the same time period.
The prolonged adverse events in the high yield debt market, combined with a
lack of demand from Quaker's current client base has led Quaker to solicit
current shareholders for a change in the Fund's strategy to an intermediate
municipal bond mandate. We at ACM are excited by the opportunity to manage this
Fund with its new municipal bond mandate. ACM plans to use our depth of
experience in municipal bond management to find value across the national
spectrum and position the portfolio for yield/income advantages and capital
preservation in the intermediate segment of the yield curve.
The change in the Fund's investment objective and strategy received
shareholder approval on August 8, 2003. We will be actively engaged in
transforming the Fund's portfolio holdings to match the new investment objective
and strategy over the coming weeks. Andres Capital Management is excited about
the value proposition of the new Intermediate Municipal Bond Fund for Quaker
investors and look forward to applying our proprietary research techniques to
add value to the municipal bond investment process.
Respectfully submitted,
/s/ Robert P. Andres
Robert P. Andres
Andres Capital Management
* Class A performance shown is not reflective of sales charges. See Total
Return Table on next page for performance with sales charges.
xix
QUAKER HIGH YIELD FUND
PERFORMANCE UPDATE - $10,000 INVESTMENT
FOR THE PERIOD FROM JULY 6,2000
(COMMENCEMENT OF OPERATIONS) TO JUNE 30, 2003
[GRAPH]
06/30/03
Quaker High Yield Fund
Class A $ 6,288
Class B $ 6,426
Class C $ 6,066
Class I $ 6,499
Lehman Corporate High Yield Index $11,724
AVERAGE ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------
Commencement of
operations
1 Year through 06/30/03
with without with without
sales sales sales sales
charge charge charge charge
- --------------------------------------------------------------------------------
Class A (inception date 09/05/2000) -30.17% -27.07% -15.17% -13.86%
Class B (inception date 10/17/2000) -31.26% -27.64% -15.08% -14.12%
Class C (inception date 05/30/2001) -28.34% -27.62% -21.31% -21.31%
Class I (inception date 07/06/2000) -26.85% -26.85% -13.45% -13.45%
Lehman U.S. Corporate High Yield Index n/a 22.77% n/a 5.45%
- --------------------------------------------------------------------------------
** The Benchmark since inception returns are calculated since commencement of
July 6, 2000 through June 30, 2003
Past performance is no guarantee of future results and investment results
and principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Total return includes reinvestment of
dividends and capital gains.
The line graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Total return calculations reflect expense reimbursements and fee waivers
in the applicable periods. See financial highlights for periods where fees were
waived or reimbursed.
The Fund's portfolio holdings may differ significantly from the securities
held in the index and, unlike a mutual fund, an unmanaged index assumes no
transaction costs, taxes, management fees or other expenses.
xx
QUAKER AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 94.76%
AEROSPACE & DEFENSE - 1.31%
L-3 Communications Holdings, Inc.* ......... 55,100 $ 2,396,299
------------
AIRLINES - 2.29%
Continental Airlines, Inc.* ................ 100,800 1,508,976
Delta Air Lines, Inc. ...................... 183,200 2,689,376
------------
4,198,352
------------
BANKS - 3.06%
Bank of America Corp. ...................... 37,700 2,979,431
Greater Bay Bancorp ........................ 46,400 953,056
Wachovia Corp. ............................. 41,900 1,674,324
------------
5,606,811
------------
COMMERCIAL SERVICES - 3.85%
Cendant Corp.* ............................. 205,300 3,761,096
H&R Block, Inc. ............................ 76,200 3,295,650
------------
7,056,746
------------
COMPUTER SOFTWARE & SERVICES - 1.18%
Veritas Software Corp.* .................... 75,400 2,173,028
------------
COMPUTERS - 3.65%
Network Appliance, Inc.* ................... 109,700 1,778,237
Sandisk Corp.* ............................. 67,000 2,703,450
Seagate Technology ......................... 125,600 2,216,840
------------
6,698,527
------------
ELECTRONICS & ELECTRICAL EQUIPMENT - 2.38%
Fisher Scientific International, Inc.* ..... 125,400 4,376,460
------------
ENERGY - ALTERNATE SOURCES - 0.43%
Ballard Power Systems, Inc.* ............... 58,100 790,160
------------
ENTERTAINMENT & LEISURE - 3.66%
GTECH Holdings Corp. ....................... 75,000 2,823,750
International Game Technology .............. 16,600 1,698,678
Polaris Industries, Inc. ................... 35,600 2,185,840
------------
6,708,268
------------
FINANCIAL SERVICES - 9.57%
Bear Stearns Cos., Inc. .................... 20,000 1,448,400
Citigroup, Inc. ............................ 99,700 4,267,160
E*TRADE Group, Inc.* ....................... 256,200 2,177,700
Goldman Sachs Group, Inc. .................. 20,500 1,716,875
Janus Capital Group, Inc. .................. 125,600 2,059,840
Knight Trading Group, Inc.* ................ 162,800 1,012,616
Lehman Brothers Holdings, Inc. ............. 21,900 1,455,912
Merrill Lynch & Co., Inc. .................. 37,700 1,759,836
Morgan Stanley ............................. 38,700 1,654,425
------------
17,552,764
------------
HEALTHCARE - PRODUCTS - 0.60%
Ocular Sciences, Inc.* ..................... 55,100 1,093,735
------------
HEALTHCARE - SERVICES - 6.88%
Aetna, Inc. ................................ 68,900 $ 4,147,780
Anthem, Inc.* .............................. 33,400 2,576,810
Quest Diagnostics, Inc.* ................... 20,900 1,333,420
WellChoice, Inc.* .......................... 60,700 1,777,296
WellPoint Health Networks, Inc.* ........... 33,000 2,781,900
------------
12,617,206
------------
INSURANCE - 2.38%
Hartford Financial Services Group, Inc. .... 41,900 2,110,084
Infinity Property & Casualty Corp. ......... 95,600 2,259,984
------------
4,370,068
------------
INTERNET SOFTWARE & SERVICES - 4.95%
Check Point Software Technologies Ltd.* .... 129,900 2,539,545
Checkfree Corp.* ........................... 41,900 1,166,496
InterActiveCorp.* .......................... 67,400 2,667,018
SonicWALL, Inc.* ........................... 83,700 401,760
VeriSign, Inc.* ............................ 139,100 1,923,753
WatchGuard Technologies, Inc.* ............. 83,800 385,480
------------
9,084,052
------------
MULTIMEDIA - 3.56%
Clear Channel Communications, Inc.* ........ 94,300 3,997,377
COX Communications, Inc.* .................. 79,300 2,529,670
------------
6,527,047
------------
OIL & GAS - 6.81%
Burlington Resources, Inc. ................. 38,900 2,103,323
Devon Energy Corp. ......................... 41,900 2,237,460
National-Oilwell, Inc.* .................... 83,700 1,841,400
Rowan Cos., Inc.* .......................... 94,000 2,105,600
Smith International, Inc.* ................. 61,100 2,244,814
BJ Services Co.* ........................... 52,400 1,957,664
------------
12,490,261
------------
PHARMACEUTICALS - 5.53%
Abbott Laboratories ........................ 50,300 2,201,128
ICN Pharmaceuticals, Inc. .................. 83,800 1,404,488
Merck & Co., Inc. .......................... 50,200 3,039,610
Pfizer, Inc. ............................... 102,700 3,507,205
------------
10,152,431
------------
RETAIL - 11.51%
Best Buy Co., Inc.* ........................ 56,000 2,459,520
Blockbuster, Inc. .......................... 145,200 2,446,620
CBRL Group, Inc. ........................... 33,500 1,301,810
CEC Entertainment, Inc.* ................... 21,000 775,530
Chico's FAS, Inc.* ......................... 106,700 2,246,035
Costco Wholesale Corp.* .................... 62,900 2,302,140
Hollywood Entertainment Corp.* ............. 141,200 2,428,640
Michaels Stores, Inc. ...................... 62,900 2,393,974
Ross Stores, Inc. .......................... 62,200 2,658,428
Ruby Tuesday, Inc. ......................... 36,300 897,699
Wendy's International, Inc. ................ 41,900 1,213,843
------------
21,124,239
------------
The accompanying notes are an integral part of the financial statements.
1
QUAKER AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - (CONTINUED)
SEMICONDUCTORS - 6.31%
Analog Devices, Inc.* ...................... 28,300 $ 985,406
ATMI, Inc.* ................................ 41,900 1,046,243
Emulex Corp.* .............................. 71,300 1,623,501
Genus, Inc.* ............................... 66,900 180,630
International Rectifier Corp.* ............. 46,100 1,236,402
Intersil Corp.* ............................ 93,100 2,477,391
LTX Corp.* ................................. 121,500 1,047,330
Marvell Technology Group Ltd.* ............. 48,600 1,670,382
Skyworks Solutions, Inc.* .................. 192,800 1,305,256
------------
11,572,541
------------
TELECOMMUNICATIONS - 11.87%
Amdocs Ltd.* ............................... 83,600 2,006,400
AT&T Wireless Services, Inc.* .............. 184,400 1,513,924
Extreme Networks, Inc.* .................... 167,600 888,280
Nextel Communications, Inc.* ............... 192,600 3,482,208
NII Holdings, Inc.* ........................ 157,800 6,039,006
Sprint Corp. - PCS Group* .................. 481,600 2,769,200
TEKELEC* ................................... 41,900 473,470
UTStarcom, Inc.* ........................... 83,900 2,984,323
Viasat, Inc.* .............................. 62,900 901,986
Westell Technologies, Inc.* ................ 83,800 724,870
------------
21,783,667
------------
TOYS & HOBBIES - 0.58%
RC2 Corp.* ................................. 62,800 1,068,228
------------
TRANSPORTATION SERVICES - 2.40%
OMI Corp.* ................................. 306,800 1,889,887
Teekay Shipping Corp. ...................... 58,700 2,518,230
------------
TOTAL COMMON STOCK (COST $153,240,965) ..... 4,408,117
------------
173,849,007
------------
PUT OPTIONS PURCHASED - 0.01%
Blue Rhino Corp., September Strike 10 ...... 314 12,560
------------
TOTAL PUT OPTIONS PURCHASED (COST $72,742) . 12,560
------------
SHORT-TERM INVESTMENTS - 6.58%
Merrill Lynch Master EBP Repo
Money Market Fund ........................ 12,075,493 12,075,493
------------
TOTAL SHORT-TERM INVESTMENTS (COST $12,075,493) 12,075,493
------------
TOTAL VALUE OF INVESTMENTS (COST $165,389,200)(101.35%) 185,937,060
LIABILITIES IN EXCESS OF OTHER ASSETS, NET (-1.35%) (2,483,142)
------------
NET ASSETS (100.00%) .................... $183,453,918
============
* Non-income producing investment
The accompanying notes are an integral part of the financial statements.
2
QUAKER CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 93.29%
AEROSPACE & DEFENSE - 0.73%
United Technologies Corp. .................. 1,100 $ 77,913
------------
APPAREL - 0.49%
Liz Claiborne, Inc. ........................ 1,200 42,300
Reebok International Ltd.* ................. 300 10,089
------------
52,389
------------
AUTO MANUFACTURERS - 0.25%
Paccar, Inc. ............................... 400 26,968
------------
AUTO PARTS & EQUIPMENT - 0.24%
Johnson Controls, Inc. ..................... 300 25,680
------------
BANKS - 5.73%
Bank of America Corp. ...................... 3,700 292,411
First Tennessee National Corp. ............. 1,100 48,301
MB Financial Corp. ......................... 100 4,004
National City Corp. ........................ 3,200 104,672
Pacific Capital Bancorp .................... 500 17,525
Popular, Inc. .............................. 1,300 50,167
Prosperity Bancshares, Inc. ................ 1,260 24,255
SouthTrust Corp. ........................... 1,500 40,800
Texas Regional Bancshares, Inc. ............ 200 6,940
Wells Fargo & Co. .......................... 400 20,160
------------
609,235
------------
BIOTECHNOLOGY - 2.87%
Amgen, Inc.* ............................... 4,300 283,542
Genentech, Inc.* ........................... 300 21,636
------------
305,178
------------
BUILDING MATERIALS - 0.21%
American Standard Cos., Inc.* .............. 300 22,179
------------
CHEMICALS - 1.96%
Ecolab, Inc. ............................... 2,000 51,200
PPG Industries, Inc. ....................... 600 30,444
Praxair, Inc. .............................. 900 54,090
Sherwin-Williams Co. ....................... 500 13,440
Sigma-Aldrich Corp. ........................ 200 10,836
Valspar Corp. .............................. 1,150 48,553
------------
208,563
------------
COMMERCIAL SERVICES - 1.41%
Cendant Corp.* ............................. 4,200 76,944
Pharmaceutical Product Development, Inc.* .. 2,000 57,460
Rent-A-Center, Inc.* ....................... 200 15,162
------------
149,566
------------
COMPUTER SOFTWARE & SERVICES - 5.51%
Documentum, Inc.* .......................... 700 13,769
Fair Isaac Corp. ........................... 600 30,870
Micromuse, Inc.* ........................... 1,200 9,588
Microsoft Corp. ............................ 20,340 521,518
Progress Software Corp.* ................... 500 10,365
------------
586,110
------------
COMPUTERS - 5.83%
Dell Computer Corp.* ....................... 7,800 $ 249,288
Diebold, Inc. .............................. 500 21,625
EMC Corp.* ................................. 6,100 63,867
Hewlett-Packard Co. ........................ 12,700 270,510
Western Digital Corp.* ..................... 1,400 14,420
------------
619,710
------------
COSMETICS & TOILETRIES - 3.11%
Colgate-Palmolive Co. ...................... 5,700 330,315
------------
ELECTRONICS & ELECTRICAL COMPONENTS - 0.99%
Fisher Scientific International, Inc.* ..... 880 30,712
Mettler Toledo International, Inc.* ........ 1,500 54,975
Thermo Electron Corp.* ..................... 500 10,510
Trimble Navigation Ltd.* ................... 400 9,172
------------
105,369
------------
ENTERTAINMENT & LEISURE - 1.35%
International Game Technology, Inc. ........ 1,400 143,262
------------
ENVIRONMENTAL CONTROL - 0.40%
Waste Connections, Inc.* ................... 1,200 42,060
------------
FINANCIAL SERVICES - 7.45%
Citigroup, Inc. ............................ 8,200 350,960
Doral Financial Corp. ...................... 2,450 109,393
Fannie Mae ................................. 3,700 249,528
Friedman Billings Ramsey Group, Inc. ....... 500 6,700
Legg Mason, Inc. ........................... 300 19,485
New Century Financial Corp. ................ 200 8,730
SLM Corp. .................................. 1,200 47,004
------------
791,800
------------
FOOD & BEVERAGES - 1.00%
General Mills, Inc. ........................ 2,250 106,672
------------
HEALTHCARE - PRODUCTS - 5.59%
Becton Dickinson & Co. ..................... 600 23,310
CR Bard, Inc. .............................. 200 14,262
Inamed Corp.* .............................. 200 10,738
Medtronic, Inc. ............................ 7,900 378,963
Stryker Corp. .............................. 2,400 166,488
------------
593,761
------------
HEALTHCARE - SERVICES - 1.26%
Coventry Health Care, Inc.* ................ 200 9,232
DaVita, Inc.* .............................. 400 10,712
WellPoint Health Networks, Inc.* ........... 1,230 103,689
Mid Atlantic Medical Services, Inc.* ....... 200 10,460
------------
134,093
------------
HOME BUILDERS - 0.81%
Centex Corp. ............................... 700 54,453
KB Home .................................... 100 6,198
Lennar Corp. ............................... 100 7,150
Pulte Homes, Inc. .......................... 300 18,498
------------
86,299
------------
The accompanying notes are an integral part of the financial statements.
3
QUAKER CORE EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - (CONTINUED)
HOUSEHOLD PRODUCTS - 1.22%
Church & Dwight, Inc. ...................... 950 $ 31,094
Clorox Co. ................................. 600 25,590
Fortune Brands, Inc. ....................... 500 26,100
Jarden Corp.* .............................. 1,700 47,039
------------
129,823
------------
INSURANCE - 2.40%
Progressive Corp. .......................... 1,700 124,270
Prudential Financial, Inc. ................. 3,900 131,235
------------
255,505
------------
INTERNET SOFTWARE & SERVICES - 1.69%
Amazon.Com, Inc.* .......................... 1,900 69,331
eBay, Inc.* ................................ 100 10,418
Expedia, Inc.* ............................. 600 46,008
InterActiveCorp.* .......................... 1,370 54,211
------------
179,968
------------
MINING - 0.79%
Freeport-McMoran Copper & Gold, Inc. ....... 3,400 83,300
------------
MISCELLANEOUS MANUFACTURING - 6.64%
Eaton Corp. ................................ 300 23,583
General Electric Co. ....................... 23,790 682,297
------------
705,880
------------
MULTIMEDIA - 1.92%
COX Communications, Inc.* .................. 670 21,373
Comcast Corp.* ............................. 600 18,108
Fox Entertainment Group, Inc.* ............. 400 11,512
Gannett Co., Inc. .......................... 1,400 107,534
Liberty Media Corp.* ....................... 3,900 45,084
------------
203,611
------------
OIL & GAS - 3.29%
Burlington Resources, Inc. ................. 400 21,628
Devon Energy Corp. ......................... 200 10,680
Pogo Producing Co. ......................... 3,400 145,350
Varco International, Inc.* ................. 4,300 84,280
XTO Energy, Inc. ........................... 3,373 67,831
Chesapeake Energy Corp. .................... 2,000 20,200
------------
349,969
------------
PACKAGING & CONTAINERS - 0.09%
Bemis Co. .................................. 200 9,360
------------
PHARMACEUTICALS - 10.20%
Abbott Laboratories ........................ 4,600 201,296
Endo Pharmaceuticals Holdings, Inc.* ....... 600 10,152
Forest Laboratories, Inc.* ................. 1,200 65,700
Mylan Laboratories, Inc. ................... 1,500 52,155
Pfizer, Inc. ............................... 22,040 752,666
Priority Healthcare Corp.* ................. 150 2,782
------------
1,084,751
------------
PIPELINES - 0.00%
Enbridge Energy Management, LLC.* .......... 1 26
Kinder Morgan Management, LLC.* ............ 1 22
------------
48
------------
RETAIL - 3.11%
Claire's Stores, Inc. ...................... 200 $ 5,072
PETsMART, Inc. ............................. 1,300 21,671
Wal-Mart Stores, Inc. ...................... 5,670 304,309
------------
331,052
------------
SAVINGS & LOANS - 2.49%
Washington Mutual, Inc. .................... 6,400 264,330
------------
SEMICONDUCTORS - 3.02%
Cree, Inc.* ................................ 500 8,140
GlobespanVirata, Inc.* ..................... 1,100 9,075
Intel Corp. ................................ 14,600 303,446
------------
320,661
------------
TELECOMMUNICATIONS - 6.69%
Cisco Systems, Inc.* ....................... 27,460 455,561
Citizens Communications Co.* ............... 1,100 14,179
Foundry Networks, Inc.* .................... 1,100 15,840
Interdigital Communications Corp.* ......... 700 16,359
Nextel Communications, Inc.* ............... 11,200 202,496
Utstarcom, Inc.* ........................... 200 7,114
------------
711,549
------------
TOYS & HOBBIES - 0.09%
Marvel Enterprises, Inc.* .................. 500 9,550
------------
TRANSPORTATION SERVICES - 2.46%
CSX Corp. .................................. 800 24,072
Union Pacific Corp. ........................ 1,900 110,238
United Parcel Service, Inc. ................ 2,000 127,400
------------
261,710
------------
TOTAL COMMON STOCK (COST $9,570,308) ....... 9,918,189
------------
EQUITY FUND - 5.61%
iShares S&P MidCap 400/BARRA Growth Index Fund 820 83,845
iShares Russell 1000 Growth Index Fund ..... 12,500 513,125
------------
TOTAL EQUITY FUND (COST $600,806) .......... 596,970
------------
SHORT-TERM INVESTMENTS - 0.58%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service
Shares ................................... 60,953 60,953
------------
TOTAL SHORT-TERM INVESTMENTS (COST $60,953) 60,953
------------
TOTAL VALUE OF INVESTMENTS (COST $10,232,067)(99.48%) 10,576,112
OTHER ASSETS LESS LIABILITIES, NET (0.52%) . 55,009
------------
NET ASSETS (100.00%) .................... $ 10,631,121
============
* Non-income producing investment
The accompanying notes are an integral part of the financial statements.
4
QUAKER SMALL-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 88.27%
AEROSPACE & DEFENSE - 0.97%
Engineered Support Systems, Inc. ........... 470 $ 19,670
------------
AIRLINES - 0.82%
Airtran Holdings, Inc.* .................... 1,600 16,752
------------
BANKS - 10.41%
Bank of the Ozarks, Inc. ................... 310 12,016
Capitol Bancorp Ltd. ....................... 600 16,260
First Community Bancshares, Inc. ........... 400 14,120
Great Southern Bancorp, Inc. ............... 240 9,250
Independent Bank Corp. ..................... 600 15,414
MB Financial Corp. ......................... 300 12,012
Nara Bancorp, Inc. ......................... 800 15,200
Pacific Capital Bancorp .................... 1,100 38,555
PrivateBancorp, Inc. ....................... 500 13,635
Prosperity Bancshares, Inc. ................ 730 14,052
R&G Financial Corp. ........................ 600 17,820
Sterling Financial Corp. ................... 700 16,275
Texas Regional Bancshares, Inc. ............ 500 17,350
------------
211,959
------------
BUILDING MATERIALS - 0.66%
ElkCorp .................................... 600 13,500
------------
CHEMICALS - 0.49%
Georgia Gulf Corp. ......................... 500 9,900
------------
COMMERCIAL SERVICES - 1.16%
Navigant Consulting, Inc.* ................. 2,000 23,700
------------
COMPUTER SOFTWARE & SERVICES - 11.77%
Avid Technology, Inc.* ..................... 800 28,056
Borland Software Corp.* .................... 790 7,718
CCC Information Services Group, Inc.* ...... 1,230 17,835
Datastream Systems, Inc.* .................. 1,300 13,767
Documentum, Inc.* .......................... 1,500 29,505
Group 1 Software, Inc.* .................... 360 6,599
Hyperion Solutions Corp.* .................. 1,000 33,760
Inter-Tel, Inc. ............................ 820 17,400
Micromuse, Inc.* ........................... 2,600 20,774
Omnicell, Inc.* ............................ 1,100 11,264
Packeteer, Inc.* ........................... 1,100 17,127
Progress Software Corp.* ................... 1,100 22,803
Serena Software, Inc.* ..................... 620 12,946
------------
239,554
------------
COMPUTERS - 5.65%
Anteon International Corp.* ................ 500 13,955
Maxtor Corp.* .............................. 1,600 12,016
NetScreen Technologies, Inc.* .............. 700 15,785
Sandisk Corp.* ............................. 1,000 40,350
Western Digital Corp.* ..................... 3,200 32,960
------------
115,066
------------
DISTRIBUTION & WHOLESALE - 0.42%
Central European Distribution Corp.* ....... 430 8,660
------------
ELECTRONICS & ELECTRICAL COMPONENTS - 4.02%
Analogic Corp. ............................. 160 $ 7,802
Dionex Corp.* .............................. 500 19,875
II-VI, Inc.* ............................... 700 16,156
Technitrol, Inc.* .......................... 600 9,030
Trimble Navigation Ltd.* ................... 900 20,637
Wilson Greatbatch Technologies, Inc.* ...... 230 8,303
------------
81,803
------------
ENTERTAINMENT & LEISURE - 0.74%
Alliance Gaming Corp.* ..................... 800 15,128
------------
ENVIRONMENTAL CONTROL - 2.97%
Casella Waste Systems, Inc.* ............... 3,090 27,903
Waste Connections, Inc.* ................... 930 32,596
------------
60,499
------------
FINANCIAL SERVICES - 1.80%
Friedman Billings Ramsey Group, Inc. ....... 1,100 14,740
New Century Financial Corp. ................ 500 21,825
------------
36,565
------------
HAND & MACHINE TOOLS - 0.52%
Franklin Electric Co., Inc. ................ 190 10,573
------------
HEALTHCARE - PRODUCTS - 2.80%
Alaris Medical Systems, Inc.* .............. 1,100 14,245
Inamed Corp.* .............................. 500 26,845
SonoSite, Inc.* ............................ 800 15,960
------------
57,050
------------
HEALTHCARE - SERVICES - 2.34%
AMERIGROUP Corp.* .......................... 280 10,416
Odyssey HealthCare, Inc.* .................. 400 14,800
Select Medical Corp.* ...................... 900 22,347
------------
47,563
------------
HOME FURNISHINGS - 1.35%
Emerson Radio* ............................. 940 6,477
TiVo, Inc.* ................................ 1,700 20,995
------------
27,472
------------
HOUSEHOLD PRODUCTS - 1.85%
Jarden Corp.* .............................. 710 19,646
New England Business Services, Inc. ........ 600 18,000
------------
37,646
------------
INTERNET SOFTWARE & SERVICES - 3.96%
Centillium Communications, Inc.* ........... 1,700 16,847
eResearch Technology, Inc.* ................ 900 19,944
NetFlix, Inc.* ............................. 600 15,330
RSA Security, Inc.* ........................ 1,200 12,900
United Online, Inc.* ....................... 620 15,711
------------
80,732
------------
LODGING - 0.59%
Boyd Gaming Corp.* ......................... 700 12,082
------------
MACHINERY - DIVERSIFIED - 1.22%
Albany International Corp. ................. 500 13,700
Wabtec Corp. ............................... 800 11,128
------------
24,828
------------
The accompanying notes are an integral part of the financial statements.
5
QUAKER SMALL-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - (CONTINUED)
METAL FABRICATE & HARDWARE - 0.75%
NN, Inc. ................................... 1,200 $ 15,192
------------
MISCELLANEOUS MANUFACTURING - 2.81%
Acuity Brands, Inc. ........................ 700 12,719
Clarcor, Inc. .............................. 480 18,504
Matthews International Corp. ............... 1,050 25,998
------------
57,221
------------
OIL & GAS - 5.82%
Chesapeake Energy Corp. .................... 4,400 44,440
Energy Partners Ltd.* ...................... 1,160 13,398
Remington Oil & Gas Corp.* ................. 2,040 37,495
St. Mary Land & Exploration Co. ............ 410 11,193
Tetra Technologies, Inc.* .................. 400 11,860
------------
118,386
------------
PHARMACEUTICALS - 1.93%
Endo Pharmaceuticals Holdings, Inc.* ....... 1,200 20,304
MIM Corp.* ................................. 1,500 9,795
Priority Healthcare Corp.* ................. 500 9,275
------------
39,374
------------
PIPELINES - 0.35%
Enbridge Energy Management, LLC.* .......... 158 7,209
------------
PUBLISHING - 0.58%
Courier Corp. .............................. 230 11,845
------------
RETAIL - 5.82%
7-Eleven, Inc.* ............................ 1,400 14,770
Big 5 Sporting Goods Corp.* ................ 170 2,130
Claire's Stores, Inc. ...................... 500 12,680
Guitar Center, Inc.* ....................... 1,200 34,800
Pacific Sunwear of California, Inc.* ....... 1,400 33,712
Rare Hospitality International, Inc.* ...... 300 9,804
Tractor Supply Co.* ........................ 220 10,505
------------
118,401
------------
SAVINGS & LOANS - 2.02%
Flagstar Bancorp, Inc. ..................... 600 14,670
Flushing Financial Corp. ................... 500 11,085
WSFS Financial Corp. ....................... 400 15,360
------------
41,115
------------
SEMICONDUCTORS - 1.97%
Cree, Inc.* ................................ 1,200 19,536
GlobespanVirata, Inc.* ..................... 2,500 20,625
------------
40,161
------------
TELECOMMUNICATIONS - 7.25%
Foundry Networks, Inc.* .................... 2,500 36,000
General Communication, Inc.* ............... 2,030 17,762
Interdigital Communications Corp.* ......... 1,600 37,392
Sonus Networks, Inc.* ...................... 6,400 32,192
Western Wireless Corp.* .................... 2,100 24,213
------------
147,559
------------
TOYS & HOBBIES - 1.03%
Marvel Enterprises, Inc.* .................. 1,100 21,010
------------
TRANSPORTATION SERVICES - 1.43%
Kirby Corp.* ............................... 850 $ 23,970
Old Dominion Freight Line, Inc.* ........... 235 5,081
------------
29,051
------------
TOTAL COMMON STOCK (COST $1,744,682) ....... 1,797,226
------------
EQUITY FUND - 9.83%
iShares Russell 2000 Growth Index Fund ..... 2,100 99,960
iShares S&P MidCap 400/BARRA Growth Index Fund 980 100,205
------------
TOTAL EQUITY FUND (COST $201,528) .......... 200,165
------------
SHORT-TERM INVESTMENTS - 1.63%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service
Shares ................................. 33,129 33,129
------------
TOTAL SHORT-TERM INVESTMENTS (COST $33,129) 33,129
------------
TOTAL VALUE OF INVESTMENTS (COST $1,979,339)(99.73%) 2,030,520
OTHER ASSETS LESS LIABILITIES, NET (0.27%) . 5,459
------------
NET ASSETS (100.00%) .................... $ 2,035,979
============
* NON-INCOME PRODUCING INVESTMENT
The accompanying notes are an integral part of the financial statements.
6
QUAKER CAPITAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 97.57%
AEROSPACE & DEFENSE 3.85%
Lockheed Martin Corp. ...................... 6,500 309,205
Northrop Grumman Corp. ..................... 2,000 172,580
------------
481,785
------------
AGRICULTURAL PRODUCTS - 3.23%
Loews Corp. - Carolina Group ............... 15,000 405,000
------------
AUTO PARTS & EQUIPMENT - 0.98%
IMPCO Technologies, Inc.* .................. 20,000 123,000
------------
BIOTECHNOLOGY - 4.77%
Gene Logic, Inc.* .......................... 40,000 238,800
Millennium Pharmaceuticals, Inc.* .......... 15,000 235,950
Praecis Pharmaceuticals, Inc.* ............. 25,000 122,500
------------
597,250
------------
CHEMICALS - 3.46%
Sigma-Aldrich Corp. ........................ 8,000 433,440
------------
COMMERCIAL SERVICES - 3.85%
McKesson Corp. ............................. 13,500 482,490
------------
COMPUTER SOFTWARE & SERVICES - 3.83%
D&B Corp.* ................................. 8,500 349,350
Eclipsys Corp.* ............................ 12,500 130,500
------------
479,850
------------
ENERGY - ALTERNATE SOURCES - 1.80%
AstroPower, Inc.* .......................... 15,000 49,350
Ballard Power Systems, Inc.* ............... 8,000 108,800
Hydrogenics Corp.* ......................... 15,000 66,900
------------
225,050
------------
HEALTHCARE - PRODUCTS - 9.77%
Edwards Lifesciences Corp.* ................ 12,000 385,680
Idexx Laboratories, Inc.* .................. 12,000 404,160
Rita Medical Systems, Inc.* ................ 70,000 245,000
Synovis Life Technologies, Inc.* ........... 5,000 99,500
Zimmer Holdings, Inc.* ..................... 2,000 90,100
------------
1,224,440
------------
INSURANCE - 3.96%
Loews Corp. ................................ 10,500 496,545
------------
INTERNET SOFTWARE & SERVICES - 3.73%
EDGAR Online, Inc.* ........................ 40,000 43,200
Gric Communications, Inc.* ................. 15,000 58,350
InterActiveCorp.* .......................... 7,000 276,990
Net2Phone, Inc.* ........................... 7,500 32,775
Zix Corp.* ................................. 15,000 56,550
------------
467,865
------------
LODGING - 0.76%
Mandalay Resort Group ...................... 3,000 95,550
------------
MINING - 11.33%
Anglogold Ltd. ADR - South Africa .......... 9,000 287,100
Gold Fields Ltd. ADR - South Africa ........ 40,000 487,200
Newmont Mining Corp. ....................... 13,000 421,980
Northgate Exploration Ltd.* ................ 75,000 81,750
PAN American Silver Corp.* ................. 20,000 141,000
------------
1,419,030
------------
MULTIMEDIA - 8.11%
Charter Communications, Inc.* .............. 75,000 $ 279,750
Comcast Corp.* ............................. 15,500 446,865
Liberty Media Corp.* ....................... 25,000 289,000
------------
1,015,615
------------
OIL & GAS - 14.52%
Chesapeake Energy Corp. .................... 66,000 666,600
EnCana Corp. ............................... 10,000 383,700
Marathon Oil Corp. ......................... 2,000 52,700
Royal Dutch Petroleum Co. .................. 1,650 76,923
Suncor Energy, Inc. ........................ 28,000 525,000
Mitcham Industries, Inc.* .................. 75,000 114,750
------------
1,819,673
------------
PHARMACEUTICALS - 0.66%
Pharmacopeia, Inc.* ........................ 10,000 82,500
------------
REAL ESTATE - 7.10%
Hospitality Properties Trust ............... 12,500 390,625
The St. Joe Co. ............................ 16,000 499,200
------------
889,825
------------
RETAIL - 1.77%
Ruby Tuesday, Inc. ......................... 500 12,365
Smith & Wollensky Restaurant Group, Inc.* .. 41,000 209,510
------------
221,875
------------
TELECOMMUNICATIONS - 9.56%
3Com Corp.* ................................ 25,000 117,000
Aether Systems, Inc.* ...................... 15,000 73,500
BCE, Inc. .................................. 15,000 346,650
IDT Corp.* ................................. 27,500 492,250
JDS Uniphase Corp.* ........................ 7,500 26,325
Motorola, Inc. ............................. 15,000 141,450
------------
1,197,175
------------
UTILITIES - 0.53%
Ameren Corp. ............................... 1,500 66,150
------------
TOTAL COMMON STOCK (COST $11,514,693) ...... 12,224,108
------------
TOTAL VALUE OF INVESTMENTS (COST $11,514,693)(97.57%) 12,224,108
OTHER ASSETS LESS LIABILITIES, NET (2.43%) . 304,493
------------
NET ASSETS (100.00%) ....................... $ 12,528,601
============
* Non-income producing investment
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
7
QUAKER BIOTECH PHARMA-HEALTHCARE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
DOMESTIC COMMON STOCK - 54.92%
BIOTECHNOLOGY - 20.12%
Alexion Pharmaceuticals, Inc.* ............. 6,875 $ 117,219
Amgen, Inc.* ............................... 4,900 323,106
Genzyme Corp. - General Division* .......... 4,200 175,560
Human Genome Sciences, Inc.* ............... 11,000 139,920
InterMune, Inc.* ........................... 7,540 122,073
Millennium Pharmaceuticals, Inc.* .......... 8,000 125,840
Regeneron Pharmaceuticals, Inc.* ........... 9,900 155,925
------------
1,159,643
------------
DRUG DELIVERY SYSTEMS - 1.66%
Alkermes, Inc.* ............................ 8,900 95,675
------------
PHARMACEUTICALS - 15.57%
Celgene Corp.* ............................. 9,220 280,288
King Pharmaceuticals, Inc.* ................ 7,500 110,700
Ligand Pharmaceuticals, Inc.* .............. 7,700 104,643
Roche Holding Ltd. ADR - Switzerland ....... 2,351 184,553
Sepracor, Inc.* ............................ 5,500 99,165
Teva Pharmaceutical Industries Ltd. ........
ADR - Israel ............................. 2,080 118,414
------------
897,763
------------
THERAPEUTICS - 17.57%
Connetics Corp.* ........................... 7,000 104,790
Gilead Sciences, Inc.* ..................... 2,810 156,180
Ilex Oncology, Inc.* ....................... 7,000 135,590
Medicines Co.* ............................. 10,030 199,798
NPS Pharmaceuticals, Inc.* ................. 8,100 197,154
United Therapeutics Corp.* ................. 5,010 109,118
Vicuron Pharmaceuticals, Inc.* ............. 7,750 109,895
------------
1,012,525
------------
TOTAL COMMON STOCK (COST $2,919,039) ....... 3,165,606
------------
FOREIGN COMMON STOCK - 2.81%
CANADA - 0.77%
BIOTECHNOLOGY - 0.77%
Gensci Regeneration Sciences, Inc.* (a) .... 89,050 44,254
------------
SWITZERLAND - 2.04%
PHARMACEUTICALS - 2.04%
Serono SA(b) ............................... 200 117,795
------------
TOTAL FOREIGN COMMON STOCK (COST $177,903) . 162,049
------------
PUT OPTIONS PURCHASED - 0.17%
iShares Nasdaq Biotechnology Index Fund,
July Strike 65 ........................... 24 2,880
iShares Nasdaq Biotechnology Index Fund,
September Strike 66 ...................... 36 6,840
------------
TOTAL PUT OPTIONS PURCHASED (COST $12,780) . 9,720
------------
SHORT-TERM INVESTMENT - 34.17%
Merrill Lynch Master EBP Repo
Money Market Fund ........................ 1,969,144 $ 1,969,144
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,969,144) 1,969,144
------------
TOTAL VALUE OF INVESTMENTS (COST $5,078,866)(92.07%) 5,306,519
OTHER ASSETS LESS LIABILITIES, NET (7.93%) . 457,108
------------
NET ASSETS (100.00%) ....................... $ 5,763,627
============
SECURITIES SOLD SHORT
COMMON STOCK
Cephalon, Inc.* ............................ 2,000 $ 82,320
Cubist Pharmaceuticals, Inc.* .............. 6,000 63,960
Neurocrine Biosciences, Inc.* .............. 2,000 99,880
------------
TOTAL (PROCEEDS $232,768) .................. $ 246,160
------------
* Non-income producing investment
(a) Canadian security denominated in U.S. dollars
(b) Swiss security denominated in U.S. dollars
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
8
QUAKER MID-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 87.88%
AIRLINES - 0.59%
Delta Air Lines, Inc. ...................... 6,500 $ 95,420
------------
AUTO MANUFACTURERS - 4.76%
Navistar International Corp.* .............. 18,400 600,392
Paccar, Inc. ............................... 2,550 171,921
------------
772,313
------------
AUTO PARTS & EQUIPMENT - 1.48%
Visteon Corp. .............................. 34,900 239,763
------------
BUILDING MATERIALS - 0.66%
York International Corp. ................... 4,550 106,470
------------
CHEMICALS - 4.66%
IMC Global, Inc. ........................... 71,650 480,772
Lyondell Chemical Co. ...................... 20,400 276,012
------------
756,784
------------
COAL PRODUCTION - 2.96%
Consol Energy, Inc. ........................ 21,100 479,814
------------
COMPUTERS - 1.16%
Electronic Data Systems Corp. .............. 8,750 187,687
------------
ELECTRONICS & ELECTRICAL COMPONETS - 11.80%
Agilent Technologies, Inc.* ................ 35,000 684,250
Avnet, Inc.* ............................... 47,400 601,032
Sanmina-SCI Corp.* ......................... 87,600 552,756
Symbol Technologies, Inc. .................. 5,950 77,409
------------
1,915,447
------------
ENTERTAINMENT & LEISURE - 1.16%
Brunswick Corp. ............................ 7,500 187,650
------------
FINANCIAL SERVICES - 3.28%
AmeriCredit Corp.* ......................... 32,200 275,310
CIT Group, Inc. ............................ 10,450 257,592
------------
532,902
------------
FOOD & BEVERAGES - 7.73%
Archer-Daniels-Midland Co. ................. 23,260 299,356
Smithfield Foods, Inc.* .................... 10,175 233,211
Tate & Lyle PLC ADR - United Kingdom ....... 30,550 687,375
Tyson Foods, Inc. .......................... 3,253 34,547
------------
1,254,489
------------
FOREST PRODUCTS & PAPER - 1.19%
Bowater, Inc. .............................. 5,150 192,867
------------
HEALTHCARE - SERVICES - 0.14%
Tenet Healthcare Corp.* .................... 2,000 23,300
------------
HOME BUILDERS - 1.71%
Clayton Homes, Inc. ........................ 22,100 277,355
------------
INSURANCE - 5.73%
American Financial Group, Inc. ............. 9,350 $ 213,180
AON Corp. .................................. 12,100 291,368
Cigna Corp. ................................ 2,300 107,962
Loews Corp. ................................ 3,300 156,057
PartnerRe Ltd. ............................. 3,150 160,996
------------
929,563
------------
IRON & STEEL PRODUCTION - 1.28%
United States Steel Corp. .................. 12,700 207,899
------------
LODGING - 3.84%
Mandalay Resort Group ...................... 5,400 171,990
Starwood Hotels & Resorts Worldwide, Inc. .. 15,800 451,722
------------
623,712
------------
MINING - 5.09%
Alcan, Inc. ................................ 6,900 215,901
Freeport-McMoRan Copper & Gold, Inc. ....... 24,900 610,050
------------
825,951
------------
OIL & GAS - 2.66%
Patterson-UTI Energy, Inc.* ................ 4,550 147,420
Premcor, Inc.* ............................. 13,200 284,460
------------
431,880
------------
REAL ESTATE - 1.01%
The St. Joe Co. ............................ 5,275 164,580
------------
RETAIL - 4.09%
JC Penney Co., Inc. Holding Co. ............ 31,250 526,563
Toys R Us, Inc.* ........................... 11,350 137,562
------------
664,125
------------
SEMICONDUCTORS - 8.78%
Agere Systems, Inc.* ....................... 110,750 258,047
Micron Technology, Inc.* ................... 17,700 205,851
Teradyne, Inc.* ............................ 55,550 961,571
------------
1,425,469
------------
TELECOMMUNICATIONS - 1.99%
Sprint Corp. - PCS Group* .................. 56,050 322,288
------------
TRANSPORTATION SERVICES - 6.43%
CSX Corp. .................................. 18,350 552,152
Swift Transportation Co., Inc.* ............ 1,100 20,460
Werner Enterprises, Inc. ................... 22,200 470,640
------------
1,043,252
------------
UTILITIES - 3.70%
Edison International, Inc.* ................ 7,000 115,010
PG&E Corp.* ................................ 22,950 485,393
------------
600,403
------------
TOTAL COMMON STOCK (COST $13,030,590) ...... 14,261,383
------------
The accompanying notes are an integral part of the financial statements.
9
QUAKER MID-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
PREFERRED BONDS - 2.08%
TELECOMMUNICATIONS - 2.08%
Corning, Inc. 3.50%, 11/01/2008 ............ 315,000 $ 338,231
------------
TOTAL PREFERRED BONDS (COST $255,840) ...... 338,231
------------
PREFERRED STOCKS - 1.67%
UTILITIES - 1.67%
Calpine Capital Trust Corp. ................ 6,150 271,369
------------
TOTAL PREFERRED STOCKS (COST $222,624) ..... 271,369
------------
EQUITY FUNDS - 4.51%
iShares Russell Midcap Value Index Fund .... 9,450 732,281
------------
TOTAL EQUITY FUNDS (COST $737,406) ......... 732,281
------------
SHORT-TERM INVESTMENTS - 3.37%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 546,357 546,357
------------
TOTAL SHORT-TERM INVESTMENTS (COST $546,357) 546,357
------------
TOTAL VALUE OF INVESTMENTS (COST $14,792,817)(99.51%) 16,149,621
OTHER ASSETS LESS LIABILITIES, NET (0.49%) . 78,941
------------
NET ASSETS (100.00%) ....................... $ 16,228,562
============
* Non-income producing investment
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
10
QUAKER SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 98.13%
AEROSPACE & DEFENSE - 0.39%
Engineered Support Systems, Inc. ........... 2,300 $ 96,255
------------
AGRICULTURAL PRODUCTS - 0.70%
Universal Corp. ............................ 4,100 173,430
------------
AIRLINES - 0.86%
ExpressJet Holdings, Inc.* ................. 14,100 212,910
------------
APPAREL - 2.38%
Columbia Sportswear Co.* ................... 1,900 97,679
K-Swiss, Inc. .............................. 3,400 117,368
Russell Corp. .............................. 9,600 182,400
Timberland Co.* ............................ 3,600 190,296
------------
587,743
------------
AUTO PARTS & EQUIPMENT - 1.17%
American Axle & Manufacturing
Holdings, Inc.* .......................... 4,800 114,720
Autoliv, Inc. .............................. 5,300 143,524
Dura Automotive Systems, Inc.* ............. 3,300 31,218
------------
289,462
------------
BANKS - 3.03%
Associated Banc-Corp ....................... 1,600 59,392
Fremont General Corp. ...................... 14,400 197,280
Hibernia Corp. ............................. 10,700 194,312
R&G Financial Corp. ........................ 7,100 210,870
Silicon Valley Bancshares* ................. 3,700 88,097
------------
749,951
------------
BIOTECHNOLOGY - 1.60%
Bio-Rad Laboratories, Inc.* ................ 3,500 193,725
Invitrogen Corp.* .......................... 2,600 99,762
Martek Biosciences Corp.* .................. 2,400 103,056
------------
396,543
------------
CHEMICALS - 2.80%
Cytec Industries, Inc.* .................... 5,900 199,420
MacDermid, Inc. ............................ 7,600 199,880
Minerals Technologies, Inc. ................ 2,500 121,650
Wellman, Inc. .............................. 15,300 171,360
------------
692,310
------------
COMMERCIAL SERVICES - 5.25%
Aaron Rents, Inc. .......................... 7,200 186,048
Convergys Corp.* ........................... 10,700 171,200
Corrections Corporation of America* ........ 7,700 195,041
Deluxe Corp. ............................... 2,700 120,960
ITT Educational Services, Inc.* ............ 6,100 178,425
MAXIMUS, Inc.* ............................. 7,700 212,751
Rent-A-Center, Inc.* ....................... 1,900 144,039
Watson Wyatt & Co., Holdings* .............. 3,900 90,402
------------
1,298,866
------------
COMPUTER SOFTWARE & SERVICES - 5.21%
Acxiom Corp.* .............................. 6,000 $ 91,500
American Management Systems, Inc.* ......... 4,500 64,260
Ansys, Inc.* ............................... 5,100 158,610
Barra, Inc.* ............................... 3,000 107,100
Citrix Systems, Inc.* ...................... 6,500 132,340
Cognos, Inc.* .............................. 3,800 102,600
Inter-Tel, Inc. ............................ 4,900 103,978
Open Text Corp.* ........................... 2,700 76,275
Progress Software Corp.* ................... 4,100 84,993
Sybase, Inc.* .............................. 12,600 175,266
Take-Two Interactive Software, Inc.* ....... 6,800 192,712
------------
1,289,634
------------
COMPUTERS - 1.88%
Hutchinson Technology, Inc.* ............... 3,200 105,248
Iomega Corp.* .............................. 12,000 127,200
Quantum Corp.* ............................. 7,600 30,780
Sandisk Corp.* ............................. 5,000 201,750
------------
464,978
------------
COSMETICS & TOILETRIES - 0.39%
Elizabeth Arden, Inc.* ..................... 7,400 97,458
------------
DISTRIBUTION & WHOLESALE - 2.66%
Handleman Co.* ............................. 9,700 155,200
Owens & Minor, Inc. ........................ 8,800 196,680
United Stationers, Inc.* ................... 5,700 206,169
Watsco, Inc. ............................... 6,100 101,016
------------
659,065
------------
ELECTRONICS & ELECTRICAL COMPONENTS - 1.88%
Analogic Corp. ............................. 2,900 141,404
Benchmark Electronics, Inc.* ............... 4,500 138,420
C&D Technologies, Inc. ..................... 4,600 66,056
CTS Corp. .................................. 11,500 120,175
------------
466,055
------------
ENTERTAINMENT & LEISURE - 2.04%
Callaway Golf Co. .......................... 6,100 80,642
Macrovision Corp.* ......................... 5,000 99,600
Polaris Industries, Inc. ................... 1,500 92,100
Shuffle Master, Inc.* ...................... 7,900 232,181
------------
504,523
------------
FINANCIAL SERVICES - 5.25%
Affiliated Managers Group, Inc.* ........... 2,800 170,660
AG Edwards, Inc. ........................... 4,800 164,160
Doral Financial Corp. ...................... 5,500 245,575
E*TRADE Group, Inc.* ....................... 12,100 102,850
IndyMac Bancorp, Inc. ...................... 8,400 213,528
Janus Capital Group, Inc. .................. 6,500 106,600
Jefferies Group, Inc. ...................... 2,000 99,580
New Century Financial Corp. ................ 4,500 196,425
------------
1,299,378
------------
FOOD & BEVERAGES - 2.06%
Chiquita Brands International, Inc.* ....... 7,200 104,400
Fresh Del Monte Produce, Inc. .............. 7,400 190,106
International Multifoods Corp.* ............ 5,600 128,296
Winn-Dixie Stores, Inc. .................... 7,000 86,170
------------
508,972
------------
The accompanying notes are an integral part of the financial statements.
11
QUAKER SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - (CONTINUED)
HEALTHCARE - PRODUCTS - 3.79%
Advanced Medical Optics, Inc.* ............. 7,400 $ 126,170
Cytyc Corp.* ............................... 6,100 64,172
IDEXX Laboratories, Inc.* .................. 4,700 158,296
PolyMedica Corp. ........................... 3,100 141,949
Respironics, Inc.* ......................... 2,500 93,075
Sola International, Inc.* .................. 5,000 87,000
Steris Corp.* .............................. 3,000 69,270
VISX, Inc.* ................................ 11,400 197,790
------------
937,722
------------
HEALTHCARE - SERVICES - 3.10%
Beverly Enterprises, Inc.* ................. 9,900 34,650
Health Net, Inc.* .......................... 4,400 144,980
Pacificare Health Systems, Inc.* ........... 4,100 202,253
Pediatrix Medical Group, Inc.* ............. 2,400 85,560
Sierra Health Services, Inc.* .............. 7,900 158,000
US Oncology, Inc.* ......................... 19,200 141,888
------------
767,331
------------
HOME BUILDERS - 5.22%
Beazer Homes USA, Inc.* .................... 1,900 158,650
Hovnanian Enterprises, Inc.* ............... 3,300 194,535
KB Home .................................... 3,200 198,336
M/I Schottenstein Homes, Inc. .............. 4,700 200,596
MDC Holdings, Inc. ......................... 2,090 100,905
NVR, Inc.* ................................. 300 123,300
Pulte Homes, Inc. .......................... 1,500 92,490
Ryland Group, Inc. ......................... 3,200 222,080
------------
1,290,892
------------
HOUSEHOLD PRODUCTS - 0.73%
Harland John H. Co. ........................ 6,900 180,504
------------
INSURANCE - 7.23%
Arch Capital Group Ltd.* ................... 2,400 83,352
Delphi Financial Group, Inc. ............... 2,500 117,000
Fidelity National Financial, Inc. .......... 7,750 238,390
First American Corp. ....................... 7,600 200,260
LandAmerica Financial Group, Inc. .......... 4,100 194,750
Old Republic International Corp. ........... 7,000 239,890
RenaissanceRe Holdings Ltd. ................ 4,200 191,184
Stancorp Financial Group, Inc. ............. 3,500 182,770
Stewart Information Services Corp.* ........ 6,000 167,100
UICI* ...................................... 11,600 174,812
------------
1,789,508
------------
INTERNET SOFTWARE & SERVICES - 0.88%
Digital River, Inc.* ....................... 4,800 92,640
VeriSign, Inc.* ............................ 9,100 125,853
------------
218,493
------------
IRON & STEEL PRODUCTION - 0.54%
Steel Dynamics, Inc.* ...................... 9,700 132,890
------------
LODGING - 1.05%
Choice Hotels International, Inc.* ......... 9,500 259,445
------------
MACHINERY - DIVERSIFIED - 0.33%
NACCO Industries, Inc. ..................... 1,400 82,516
------------
METAL FABRICATE & HARDWARE - 0.47%
Commercial Metals Co. ...................... 6,600 $ 117,414
------------
MINING - 0.42%
Freeport-McMoran Copper & Gold, Inc. ....... 4,200 102,900
------------
OFFICE & BUSINESS EQUIPMENT - 1.07%
IKON Office Solutions, Inc. ................ 11,000 97,900
HON Industries, Inc. ....................... 5,500 167,750
------------
265,650
------------
OIL & GAS - 4.03%
Chesapeake Energy Corp. .................... 9,200 92,920
Houston Exploration Co.* ................... 2,800 97,160
Patina Oil & Gas Corp. ..................... 3,900 125,385
Sunoco, Inc. ............................... 2,400 90,576
Valero Energy Corp. ........................ 2,100 76,293
Veritas DGC, Inc.* ......................... 12,000 138,000
Oceaneering International, Inc.* ........... 3,700 94,535
Southwestern Energy Co.* ................... 10,100 151,601
Tesoro Petroleum Corp.* .................... 19,200 132,096
------------
998,566
------------
PACKAGING & CONTAINERS - 0.34%
Owens-Illinois, Inc.* ...................... 6,200 85,374
------------
PHARMACEUTICALS - 3.00%
Alpharma, Inc. ............................. 8,800 190,080
American Pharmaceutical Partners, Inc.* .... 6,700 227,130
Bradley Pharmaceuticals, Inc.* ............. 6,800 112,200
Cell Therapeutics, Inc.* ................... 3,000 29,190
King Pharmaceuticals, Inc.* ................ 6,500 95,940
QLT, Inc.* ................................. 6,900 87,623
------------
742,163
------------
REAL ESTATE - 0.88%
LNR Property Corp. ......................... 5,800 216,920
------------
RETAIL - 6.44%
Barnes & Noble, Inc.* ...................... 4,100 94,505
Brown Shoe Co., Inc. ....................... 5,400 160,920
CBRL Group, Inc. ........................... 3,200 124,352
Claire's Stores, Inc. ...................... 7,400 187,664
Footstar, Inc.* ............................ 13,800 179,400
Movie Gallery, Inc.* ....................... 10,100 186,345
Pacific Sunwear Of California, Inc.* ....... 5,500 132,440
Papa John's International, Inc.* ........... 5,700 160,113
ShopKo Stores, Inc.* ....................... 11,200 145,600
Stage Stores, Inc.* ........................ 3,800 89,300
Zale Corp.* ................................ 3,300 132,000
------------
1,592,639
------------
SAVINGS & LOANS - 4.25%
Dime Community Bancshares, Inc. ............ 6,900 175,605
FirstFed Financial Corp.* .................. 4,800 169,392
Flagstar Bancorp, Inc. ..................... 9,200 224,940
Independence Community Bank Corp. .......... 6,200 174,964
Sovereign Bancorp, Inc. .................... 7,600 118,940
Webster Financial Corp. .................... 5,000 189,000
------------
1,052,841
------------
The accompanying notes are an integral part of the financial statements.
12
QUAKER SMALL-CAP VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - (CONTINUED)
SEMICONDUCTORS - 2.72%
Cree, Inc.* ................................ 8,000 $ 130,240
Integrated Circuit Systems, Inc.* .......... 7,500 235,725
Silicon Laboratories, Inc.* ................ 2,900 77,256
Vitesse Semiconductor Corp.* ............... 46,900 230,748
------------
673,969
------------
TELECOMMUNICATIONS - 6.13%
Adtran, Inc.* .............................. 4,300 219,386
American Tower Corp.* ...................... 10,400 92,040
Black Box Corp. ............................ 2,200 79,640
C-COR.net Corp.* ........................... 5,900 28,910
Citizens Communications Co.* ............... 15,700 202,373
Foundry Networks, Inc.* .................... 9,300 133,920
Interdigital Communications Corp.* ......... 6,300 147,231
Plantronics, Inc.* ......................... 10,000 216,700
Scientific-Atlanta, Inc. ................... 10,500 250,320
Utstarcom, Inc.* ........................... 4,100 145,837
------------
1,516,357
------------
TEXTILES - 0.43%
Mohawk Industries, Inc.* ................... 1,900 105,507
------------
TOYS & HOBBIES - 0.35%
Marvel Enterprises, Inc.* .................. 4,500 85,950
------------
TRANSPORTATION SERVICES - 2.32%
Offshore Logistics, Inc.* .................. 4,300 93,525
OMI Corp.* ................................. 17,100 105,336
Ryder System, Inc. ......................... 7,600 194,712
Teekay Shipping Corp. ...................... 4,200 180,180
------------
573,753
------------
UTILITIES - 2.86%
Avista Corp. ............................... 6,000 84,900
Calpine Corp.* ............................. 15,200 100,320
El Paso Electric Co.* ...................... 4,000 49,320
Oneok, Inc. ................................ 9,900 194,337
Pinnacle West Capital Corp. ................ 3,500 131,076
Unisource Energy Corp. ..................... 7,900 148,520
------------
708,473
------------
TOTAL COMMON STOCK (COST $20,489,914) ...... 24,285,310
------------
SHORT-TERM INVESTMENTS - 1.93%
Evergreen Money Market Institutional Treasury
Money Market Fund Institutional Service Shares 478,567 478,567
------------
TOTAL SHORT-TERM INVESTMENTS (COST $478,567) 478,567
------------
TOTAL VALUE OF INVESTMENTS (COST $20,968,481)(100.06%) 24,763,877
LIABILITIES IN EXCESS OF OTHER ASSETS, NET (-0.06%) (15,389)
------------
NET ASSETS (100.00%) ....................... $ 24,748,488
============
* Non-income producing investment
The accompanying notes are an integral part of the financial statements.
13
GEEWAX TERKER CORE VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
NUMBER MARKET
OF SHARES VALUE
---------- ------------
COMMON STOCK - 99.70%
AEROSPACE & DEFENSE - 2.04%
United Technologies Corp. .................. 300 $ 21,249
------------
BANKS - 8.47%
Bank of the Ozarks, Inc. ................... 700 27,132
First Bancorp .............................. 800 21,960
Great Southern Bancorp, Inc. ............... 500 19,270
Wells Fargo & Co. .......................... 400 20,160
------------
88,522
------------
BIOTECHNOLOGY - 2.65%
Bio-Rad Laboratories, Inc.* ................ 500 27,675
------------
CHEMICALS - 2.89%
Airgas, Inc. ............................... 1,800 30,150
------------
COMMERCIAL SERVICES - 4.39%
Cendant Corp. .............................. 2,500 45,800
------------
COMPUTERS - 2.07%
Diebold, Inc. .............................. 500 21,625
------------
COSMETICS & TOILETRIES - 7.04%
Colgate-Palmolive Co. ...................... 500 28,975
Procter & Gamble Co. ....................... 500 44,590
------------
73,565
------------
ELECTRONICS & ELECTRICAL COMPONENTS - 3.45%
American Power Conversion Corp. ............ 900 14,031
Ametek, Inc. ............................... 600 21,990
------------
36,021
------------
FINANCIAL SERVICES - 12.22%
Doral Financial Corp. ...................... 1,650 73,673
Fannie Mae ................................. 800 53,952
------------
127,625
------------
FOOD & BEVERAGES - 3.68%
General Mills, Inc. ........................ 600 28,446
Pepsi Bottling Group, Inc. ................. 500 10,010
------------
38,456
------------
HEALTHCARE - SERVICES - 2.95%
Anthem, Inc.* .............................. 400 30,860
------------
HOUSEHOLD PRODUCTS - 1.59%
Jarden Corp.* .............................. 600 16,602
------------
MISCELLANEOUS MANUFACTURING - 6.86%
General Electric Co. ....................... 2,500 71,700
------------
MULTIMEDIA - 2.94%
Gannett Co., Inc. .......................... 400 30,724
------------
OIL & GAS - 11.97%
ConocoPhillips ............................. 500 27,400
Devon Energy Corp. ......................... 600 32,040
Evergreen Resources, Inc.* ................. 500 27,155
Pogo Producing Co. ......................... 900 38,475
------------
125,070
------------
PHARMACEUTICALS - 1.63%
Pfizer, Inc. ............................... 500 $ 17,075
------------
PIPELINES - 4.99%
Enbridge Energy Management, LLC.* .......... 1,143 52,146
------------
RETAIL - 8.06%
Guitar Center, Inc.* ....................... 880 25,520
Party City Corp.* .......................... 600 6,162
Regis Corp. ................................ 700 20,335
Wal-Mart Stores, Inc. ...................... 600 32,202
------------
84,219
------------
TELECOMMUNICATIONS - 4.67%
Nextel Communications, Inc.* ............... 2,700 48,816
------------
TRANSPORTATION SERVICES - 3.44%
Genesee & Wyoming, Inc.* ................... 900 18,513
Union Pacific Corp. ........................ 300 17,406
------------
35,919
------------
UTILITIES - 1.70%
New Jersey Resources Corp. ................. 500 17,750
------------
TOTAL COMMON STOCK (COST $933,828) ......... 1,041,569
------------
SHORT-TERM INVESTMENTS - 0.36%
Merrill Lynch Master EBP Repo Money Market Fund 3,770 3,770
------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,770) . 3,770
------------
TOTAL VALUE OF INVESTMENTS (COST $937,598)(100.06%) 1,045,339
LIABILITIES IN EXCESS OF OTHER ASSETS, NET (-0.06%) (571)
------------
NET ASSETS (100.00%) ....................... $ 1,044,768
============
* Non-income producing investment
The accompanying notes are an integral part of the financial statements.
14
QUAKER FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
PRINCIPAL VALUE
---------- ------------
AGENCY OBLIGATIONS - 64.27%
FEDERAL HOME LOAN MORTGAGE CORP. - 1.20%
Freddie Mac 22 C, 9.50%, 04/15/2020 ........ 94,359 95,009
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 42.22%
Fannie Mae 1993-152 K, P.O., 0.00%, 08/25/2023 83,625 78,933
Fannie Mae 2003-33 LD, 4.25%, 09/25/2022 ... 983,549 1,004,809
Fannie Mae 2003-38 TC, 5.00%, 03/25/2023 ... 494,370 508,088
Fannie Mae Pool #701122, 5.00%, 04/01/2018 . 338,627 350,218
Fannie Mae Pool #705538, 5.00%, 05/01/2018 . 646,110 668,225
Fannie Mae Pool #709288, 6.00%, 07/01/2033(a) 688,282 725,223
------------
3,335,496
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 20.85%
Ginnie Mae I pool #585083, 5.00%, 01/15/2018 177,786 186,039
Ginnie Mae I pool #585131, 5.00%, 12/15/2017 179,539 187,915
Ginnie Mae I pool #585141, 5.00%, 01/15/2018 179,719 188,061
Ginnie Mae I pool #603374, 5.00%, 01/15/2018 183,921 192,458
Ginnie Mae I pool #603378, 5.00%, 10/15/2018 185,505 194,116
GNMA, 2002-41, 6.00%, 07/20/2027 ........... 690,000 698,811
------------
1,647,400
------------
TOTAL AGENCY OBLIGATIONS (COST $5,036,910) . 5,077,905
------------
ASSET BACKED SECURITIES - 15.33%
FINANCIAL SERVICES - 15.33%
Asset Securitization Corp. 1997-MD7 A1A, 7.32%, 01/13/2030 ................... 33,735 35,769
Chase Commercial Mortgage Securities Corp. 1996-1 A1, 7.60%, 07/18/2028 ..... 8,708 8,708
Chase Commercial Mortgage Securities Corp. 1996-2 A2, 6.90%, 11/19/2028 ...... 68,581 75,882
Chase Commercial Mortgage Securities Corp. 1999-2 A1, 7.032%, 01/15/2032 ..... 59,851 66,958
Commercial Mortgage Acceptance Corp. 1999-C1 A2, 7.03%, 06/15/2031 ........... 20,000 23,719
Conseco Finance Securitizations Corp. 2000-1 M2, 9.08%, 05/01/2031 ........... 25,000 5,875
CS First Boston Mortgage Securities Corp. 1997-C1 A1B, 7.15%, 06/20/2029 ..... 57,227 59,094
CS First Boston Mortgage Securities Corp. 1998-C1 A1A, 6.26%, 05/17/2040 ..... 33,249 35,562
CS First Boston Mortgage Securities Corp. 1998-C1 A1B, 6.48%, 05/17/2040 ..... 90,000 103,302
Deutsche Mortgage and Asset Receiving Corp. 1998-C1 A2, 6.538%, 06/15/2031 ... 65,000 $ 73,421
DLJ Commercial Mortgage Corp. 1998-CF1 A1B, 6.41%, 02/18/2031 ................ 25,000 28,438
DLJ Commercial Mortgage Corp. 1998-CG1 A1B, 6.41%, 06/10/2031 ................ 105,000 120,407
First Union Commercial Mortgage Securities, Inc. 1997-C1 A3, 7.38%, 04/18/2029 110,000 126,378
GMAC Commercial Mortgage Securities, Inc. 1997-C2 A3, 6.566%, 04/15/2029 ..... 45,000 50,903
JP Morgan Commercial Mortgage Finance Corp. 1999-C7 A1, 6.18%, 10/15/2035 .... 29,273 32,032
Lehman Large Loan 1997-LLI A1, 6.79%, 10/12/2034 ............................. 14,373 14,932
Merrill Lynch Mortgage Investors, Inc. 1995-C2 A1, 6.9258%, 06/15/2021 ....... 31,294 32,460
Merrill Lynch Mortgage Investors, Inc. 1997-C1 A3, 7.12%, 06/18/2029 ......... 20,000 22,483
Merrill Lynch Mortgage Investors, Inc. 1998-C1 A1, 6.31%, 11/15/2026 ......... 15,974 16,785
Merrill Lynch Mortgage Investors, Inc. 1998-C2 A2, 6.39%, 02/15/2030 ......... 65,000 73,185
Morgan Stanley Capital I 11998-HF1 A1, 6.19%, 03/15/2030 ..................... 18,687 19,726
Mortgage Capital Funding, Inc. 1998-MC1 A1, 6.417%, 03/18/2030 ............... 37,225 39,906
Mortgage Capital Funding, Inc. 1998-MC3 A1 6.001%, 11/18/2031 ................ 14,070 15,169
Nomura Asset Securities Corp. 1998-D6 A2, 7 0324%, 03/15/2030 ................ 50,000 60,396
Salomon Brothers Mortgage Securities VI 1986-1 A, 6.00%, 12/25/2011 .......... 69,832 69,758
------------
TOTAL ASSET BACKED SECURITIES (COST $1,060,203) ................................ 1,211,248
------------
CORPORATE BONDS - 17.49%
BANKS - 2.84%
Bank One Corp., 7.625%, 08/01/2005 ......... 200,000 224,102
------------
CHEMICALS - 2.44%
CNA Holdings, Inc., 6.125%, 02/01/2004 ..... 25,000 25,665
CNA Holdings, Inc., 7.125%, 03/15/2009 ..... 150,000 167,088
------------
192,753
------------
FINANCIAL SERVICES - 5.70%
General Electric Capital Corp.,
6.50%, 12/10/2007 ........................ 200,000 230,219
Morgan Stanley, 6.30%, 01/15/2006 .......... 200,000 220,337
------------
450,556
------------
MEDICAL PRODUCTS - 3.55%
Bard (C.R.) Inc., 6.70%, 12/01/2026 ........ 250,000 280,545
------------
The accompanying notes are an integral part of the financial statements.
15
QUAKER FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
PRINCIPAL VALUE
---------- ------------
CORPORATE BONDS - (CONTINUED)
TELECOMMUNICATIONS - 2.96%
Verizon Global Funding Corp.,
7.60%, 03/15/2007 ........................ 200,000 233,694
------------
TOTAL CORPORATE BONDS (COST $1,291,905) .... 1,381,650
------------
SHORT-TERM INVESTMENTS - 11.65%
Merrill Lynch Master EBP Repo Money Market Fund
TOTAL SHORT-TERM INVESTMENTS (COST $920,079) 92,079 920,079
------------
920,079
------------
TOTAL VALUE OF INVESTMENTS (COST $8,309,097)(108.74%) 8,590,882
LIABILITIES IN EXCESS OF OTHER ASSETS, NET (-8.74%) (690,399)
------------
NET ASSETS (100.00%) ....................... $ 7,900,483
============
(a) Securities for which market quotations are not readily available are valued
at fair market value as determined by the Advisor using independent third
party sources. Such values are approved on a quarterly basis by the Board
of Trustees. The total fair value of such securities at June 30, 2003 is
$725,223 which represents 9.18% of total net assets.
The accompanying notes are an integral part of the financial statements
16
QUAKER HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
MARKET
PRINCIPAL VALUE
---------- ------------
CORPORATE BONDS - 5.26%
INSURANCE - 5.26%
Conseco Financing, 8.70%, 11/15/26* ........ 1,600,000 $ 28,000
------------
TOTAL CORPORATE BONDS (COST $472,470) ...... 28,000
------------
TOTAL VALUE OF INVESTMENTS (COST $472,470)(5.26%) 28,000
OTHER ASSETS LESS LIABILITIES, NET (94.74%) 504,508
------------
NET ASSETS (100.00%) ....................... $ 532,508
============
* Non-income producing investment
The accompanying notes are an integral part of the financial statements.
17
QUAKER INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2003
GROWTH FUNDS
---------------------------------------------------------------------------------
CAPITAL BIOTECH PHARMA-
AGGRESSIVE CORE EQUITY SMALL-CAP OPPORTUNITIES HEALTHCARE
GROWTH FUND FUND GROWTH FUND FUND FUND
---------------------------------------------------------------------------------
ASSETS:
Investments, at value $ 185,937,060 $ 10,576,112 $ 2,030,520 $ 12,224,108 $ 5,306,519
Cash -- -- -- -- --
Deposits with brokers for securities
sold short 76,053 -- -- -- 464,966
Receivables:
Dividends and interest 58,899 8,261 988 7,419 1,259
Fund shares sold 1,339,832 849 10,000 236,273 203,519
Investment securities sold 3,222,423 367,444 -- 445,466 201,626
Prepaid expenses and other assets 96,249 15,102 2,153 6,488 4,081
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS 190,730,516 10,967,768 2,043,661 12,919,754 6,181,970
------------- ------------- ------------- ------------- -------------
LIABILITIES:
Payables:
Securities sold short, at value -- -- -- -- 246,160
Fund shares redeemed 733,715 -- -- 16,330 80
Investment securities purchased 6,172,671 316,333 -- 336,564 160,836
Distributions -- -- -- -- --
Due to custodian -- -- -- 17,839 --
Accrued expenses 175,637 11,115 5,941 14,634 6,046
Due to advisor (note 2) 194,575 9,199 1,741 5,786 5,221
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES 7,276,598 336,647 7,682 391,153 418,343
------------- ------------- ------------- ------------- -------------
NET ASSETS $ 183,453,918 $ 10,631,121 $ 2,035,979 $ 12,528,601 $ 5,763,627
============= ============= ============= ============= =============
NET ASSETS CONSIST OF:
Paid-in capital $ 197,539,189 $ 18,022,317 $ 3,113,050 $ 12,408,221 $ 5,127,862
Accumulated net realized gain
(loss) on investments (34,633,131) (7,735,241) (1,128,252) (589,035) 421,551
Net unrealized appreciation
(depreciation) on investments 20,547,860 344,045 51,181 709,415 214,214
------------- ------------- ------------- ------------- -------------
TOTAL NET ASSETS $ 183,453,918 $ 10,631,121 $ 2,035,979 $ 12,528,601 $ 5,763,627
============= ============= ============= ============= =============
INVESTMENTS, AT COST $ 165,389,200 $ 10,232,067 $ 1,979,339 $ 11,514,693 $ 5,078,866
PROCEEDS FROM SECURITIES SOLD SHORT -- -- -- -- 232,768
CLASS A SHARES:
Net Assets $ 149,676,898 $ 7,686,550 $ 116,961 $ 2,867,595 $ 2,611,049
------------- ------------- ------------- ------------- -------------
Shares of Beneficial interest outstanding 8,980,828 793,312 17,421 316,977 220,784
------------- ------------- ------------- ------------- -------------
Net Asset Value per share $ 16.67 $ 9.69 $ 6.71 $ 9.05 $ 11.83
============= ============= ============= ============= =============
Offering price per share $ 17.64 $ 10.25 $ 7.10 $ 9.58 $ 12.52
============= ============= ============= ============= =============
CLASS B SHARES:
Net Assets $ 14,054,061 $ 123,990 $ 65,233 $ 925,847 $ 1,564,789
------------- ------------- ------------- ------------- -------------
Shares of Beneficial interest outstanding 856,233 13,053 9,870 102,329 132,908
------------- ------------- ------------- ------------- -------------
Net Asset Value, offering and
redemption(1) price per share $ 16.41 $ 9.50 $ 6.61 $ 9.05 $ 11.77
============= ============= ============= ============= =============
CLASS C SHARES:
Net Assets $ 15,047,120 $ 309,679 $ 173,559 $ 8,735,159 $ 1,587,789
------------- ------------- ------------- ------------- -------------
Shares of Beneficial interest outstanding 919,842 32,797 26,150 965,744 134,813
------------- ------------- ------------- ------------- -------------
Net Asset Value, offering and
redemption(1) price per share $ 16.36 $ 9.44 $ 6.64 $ 9.05 $ 11.78
============= ============= ============= ============= =============
CLASS I SHARES:
Net Assets $ 4,675,839 $ 2,510,902 $ 1,680,226
------------- ------------- -------------
Shares of Beneficial interest outstanding 278,963 271,894 244,909
------------- ------------- -------------
Net Asset Value, offering and
redemption price per share $ 16.76 $ 9.23 $ 6.86
============= ============= =============
(1) Redemption price per share may be reduced for any applicable contingent
defered sales charge.
The accompanying notes are in integral part of the financial statements.
18
QUAKER INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2003
VALUE FUNDS FIXED INCOME FUNDS
-------------------------------------------- ----------------------------
MID-CAP SMALL-CAP GEEWAX TERKER FIXED INCOME HIGH YIELD
VALUE FUND VALUE FUND CORE VALUE FUND FUND FUND
-------------------------------------------- ----------------------------
ASSETS:
Investments, at value $ 16,149,621 $ 24,763,877 $ 1,045,339 $ 8,590,882 $ 28,000
Cash -- -- -- -- 504,525
Deposits with brokers for
securities sold short -- -- -- -- --
Receivables:
Dividends and interest 5,410 3,965 942 48,418 --
Fund shares sold 27,854 94,794 -- 5,320 --
Investment securities sold 183,996 -- -- -- --
Prepaid expenses and other assets 18,760 23,912 382 14,938 1,397
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 16,385,641 24,886,548 1,046,663 8,659,558 533,922
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payables:
Securities sold short, at value -- -- -- -- --
Fund shares redeemed 6,740 140 -- 16,195 --
Investment securities purchased 117,510 49,757 -- 726,784 --
Distributions -- -- -- 1,905 --
Due to custodian -- -- -- -- --
Accrued expenses 18,779 19,192 991 10,246 1,126
Due to advisor (note 2) 14,050 68,971 904 3,945 288
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES 157,079 138,060 1,895 759,075 1,414
------------ ------------ ------------ ------------ ------------
NET ASSETS $ 16,228,562 $ 24,748,488 $ 1,044,768 $ 7,900,483 $ 532,508
============ ============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-in capital $ 17,673,745 $ 22,372,892 $ 1,097,567 $ 8,631,010 $ 4,050,386
Accumulated net realized gain (loss)
on investments (2,801,987) (1,419,800) (160,540) (1,012,312) (3,073,408)
Net unrealized appreciation
(depreciation) on investments 1,356,804 3,795,396 107,741 281,785 (444,470)
------------ ------------ ------------ ------------ ------------
TOTAL NET ASSETS $ 16,228,562 $ 24,748,488 $ 1,044,768 $ 7,900,483 $ 532,508
============ ============ ============ ============ ============
INVESTMENTS, AT COST $ 14,792,817 $ 20,968,481 $ 937,598 $ 8,309,097 $ 472,470
PROCEEDS FROM SECURITIES SOLD SHORT -- -- -- -- --
CLASS A SHARES:
Net Assets $ 8,142,678 $ 7,393,072 $ 1,044,768 $ 2,621,283 $ 109,737
------------ ------------ ------------ ------------ ------------
Shares of Beneficial interest outstanding 757,401 521,618 112,544 267,251 21,945
------------ ------------ ------------ ------------ ------------
Net Asset Value per share $ 10.75 $ 14.17 $ 9.28 $ 9.81 $ 5.00
============ ============ ============ ============ ============
Offering price per share $ 11.38 $ 14.99 $ 9.82 $ 10.25 $ 5.22
============ ============ ============ ============ ============
CLASS B SHARES:
Net Assets $ 2,211,125 $ 758,825 $ 1,634,426 $ 54,768
------------ ------------ ------------ ------------
Shares of Beneficial interest outstanding 208,585 54,628 167,231 11,013
------------ ------------ ------------ ------------
Net Asset Value, offering and
redemption(1) price per share $ 10.60 $ 13.89 $ 9.77 $ 4.97
============ ============ ============ ============
CLASS C SHARES:
Net Assets $ 4,814,872 $ 1,382,562 $ 3,332,620 $ 226,186
------------ ------------ ------------ ------------
Shares of Beneficial interest outstanding 459,978 101,924 340,921 45,514
------------ ------------ ------------ ------------
Net Asset Value, offering and
redemption(1) price per share $ 10.47 $ 13.56 $ 9.78 $ 4.97
============ ============ ============ ============
CLASS I SHARES:
Net Assets $ 1,059,887 $ 15,214,029 $ 312,154 $ 141,817
------------ ------------ ------------ ------------
Shares of Beneficial interest outstanding 97,416 1,065,210 31,842 28,329
------------ ------------ ------------ ------------
Net Asset Value, offering and
redemption price per share $ 10.88 $ 14.28 $ 9.80 $ 5.01
============ ============ ============ ============
(1) Redemption price per share may be reduced for any applicable contingent
defered sales charge.
The accompanying notes are in integral part of the financial statements.
19
QUAKER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
GROWTH FUNDS
------------------------------------------------------------------------------
CAPITAL
AGGRESSIVE CORE SMALL-CAP OPPORTUNITIES BIOTECH PHARMA-
GROWTH FUND EQUITY FUND GROWTH FUND FUND HEALTHCARE FUND
------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends $ 1,024,179 $ 89,020 $ 10,496 $ 127,034 $ 1,803
Interest 519,943 914 366 4,161 5,153
------------ ------------ ------------ ------------ ------------
TOTAL INCOME 1,544,122 89,934 10,862 131,195 6,956
------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees (note 2) 2,176,377 113,182 26,261 73,466 20,236
Fund administration, accounting, and
transfer agent fees (note 2) 571,219 37,041 13,341 26,010 5,347
Custody fees 34,830 8,175 11,935 7,575 3,073
Trustee fees and meeting expenses 42,155 2,709 622 1,878 409
Legal fees 9,664 643 143 469 127
Audit fees 42,211 2,709 621 1,306 411
Distribution fees- Class A 358,522 20,405 278 5,670 2,164
Distribution fees- Class B 105,448 1,061 439 5,854 3,644
Distribution fees- Class C 92,064 2,979 1,354 45,442 4,012
President's expense 36,677 2,345 600 1,630 354
Registration and filing expenses 40,474 8,486 1,135 8,302 1,346
Printing expenses 117,153 6,326 1,449 5,475 1,584
Amortization of deferred organizational
expenses (note 3) -- -- -- -- --
Other operating expenses 134,564 8,806 3,444 7,234 3,562
------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES 3,761,358 214,867 61,622 190,311 46,269
------------ ------------ ------------ ------------ ------------
Less:
Investment advisory fees
waived (note 2) -- -- -- -- 660
NET EXPENSES 3,761,358 214,867 61,622 190,311 45,609
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) (2,217,236) (124,933) (50,760) (59,116) (38,653)
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
(EXCLUDING SHORT SECURITIES) (17,061,076) (1,336,731) (430,607) (515,214) 487,308
NET REALIZED GAIN (LOSS) FROM
SHORT SECURITIES 1,095,545 -- -- -- (31,644)
NET REALIZED GAIN (LOSS) FROM OPTIONS 4,463,149 -- -- -- 5,951
NET REALIZED GAIN (LOSS) FROM
CURRENCY TRANSACTIONS -- -- -- -- (1,411)
NET UNREALIZED APPRECIATION (DEPRECIATION)
ON INVESTMENTS 20,248,232 1,286,453 (44,601) 825,871 214,214
------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS 8,745,850 (50,278) (475,208) 310,657 674,418
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 6,528,614 $ (175,211) $ (525,968) $ 251,541 $ 635,765
============ ============ ============ ============ ============
The accompanying notes are in integral part of the financial statements.
20
QUAKER INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
VALUE FUNDS FIXED INCOME FUNDS
-------------------------------------------- ----------------------------
MID-CAP SMALL-CAP GEEWAX TERKER FIXED INCOME HIGH YIELD
VALUE FUND VALUE FUND CORE VALUE FUND FUND FUND
-------------------------------------------- ----------------------------
INVESTMENT INCOME
INCOME:
Dividends $ 228,164 $ 171,065 $ 9,929 $ -- $ --
Interest 72,595 4,473 78 725,327 131,757
------------ ------------ ------------ ---------- ----------
TOTAL INCOME 300,759 175,538 10,007 725,327 131,757
------------ ------------ ------------ ---------- ----------
EXPENSES:
Investment advisory fees (note 2) 148,338 369,718 9,478 95,631 17,181
Fund administration, accounting, and
transfer agent fees (note 2) 50,411 73,653 3,017 33,256 5,557
Custody fees 11,870 8,418 1,435 4,863 1,700
Trustee fees and meeting expenses 3,531 5,544 228 2,484 414
Legal fees 850 1,259 56 558 60
Audit fees 3,531 5,542 228 2,484 414
Distribution fees- Class A 12,637 16,273 2,257 15,952 721
Distribution fees- Class B 19,377 5,483 -- 13,435 2,298
Distribution fees- Class C 44,316 9,958 -- 19,639 2,400
President's expense 3,072 4,805 198 2,153 359
Registration and filing expenses 16,293 19,406 774 9,456 872
Printing expenses 8,979 14,496 549 5,792 --
Amortization of deferred organizational
expenses (note 3) 1,425 -- -- -- --
Other operating expenses 14,180 20,255 876 9,328 2,278
------------ ------------ ------------ ---------- ----------
TOTAL EXPENSES 338,810 554,810 19,096 215,031 34,254
Less:
Investment advisory fees
waived (note 2) -- 10,439 -- -- --
NET EXPENSES 338,810 544,371 19,096 215,031 34,254
------------ ------------ ------------ ---------- ----------
NET INVESTMENT INCOME (LOSS) (38,051) (368,833) (9,089) 510,296 97,503
------------ ------------ ------------ ---------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
(EXCLUDING SHORT SECURITIES) (2,520,445) (1,419,220) (160,540) (524,505) (1,698,973)
NET REALIZED GAIN (LOSS) FROM
SHORT SECURITIES -- -- -- -- --
NET REALIZED GAIN (LOSS) FROM OPTIONS -- -- -- -- --
NET REALIZED GAIN (LOSS) FROM
CURRENCY TRANSACTIONS -- -- -- -- --
NET UNREALIZED APPRECIATION (DEPRECIATION)
ON INVESTMENTS 1,180,131 1,767,613 178,577 60,751 859,934
------------ ------------ ------------ ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (1,340,314) 348,393 18,037 (463,754) (839,039)
------------ ------------ ------------ ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ (1,378,365) $ (20,440) $ 8,948 $ 46,542 $ (741,536)
============ ============ ============ ============ ============
The accompanying notes are in integral part of the financial statements.
21
QUAKER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
GROWTH FUNDS
----------------------------------------------------------------------------------
CAPITAL
AGGRESSIVE CORE EQUITY SMALL-CAP OPPORTUNITIES BIOTECH PHARMA-
GROWTH FUND FUND GROWTH FUND FUND HEALTHCARE FUND
----------------------------------------------------------------------------------
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
INCREASE IN NET ASSETS
OPERATIONS
Net investment income (loss) $ (2,217,236) $ (124,933) $ (50,760) $ (59,116) $ (38,653)
Net realized gain (loss) on from
investment transactions (11,502,382) (1,336,731) (430,607) (515,214) 460,204
Net unrealized appreciation
(depreciation) on investments 20,248,232 1,286,453 (44,601) 825,871 214,214
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 6,528,614 $ (175,211) $ (525,968) $ 251,541 $ 635,765
------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - Class A -- -- -- -- --
Net investment income - Class B -- -- -- -- --
Net investment income - Class C -- -- -- -- --
Net investment income - Class I -- -- -- -- --
Net realized capital gain - Class A -- -- -- -- --
Net realized capital gain - Class B -- -- -- -- --
Net realized capital gain - Class C -- -- -- -- --
Net realized capital gain - Class I -- -- -- -- --
------------- ------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS -- -- -- -- --
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets from
Fund share transactions (note 9) (2,022,720) (2,581,506) (1,271,507) 7,750,655 5,127,862
------------- ------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 4,505,894 (2,756,717) (1,797,475) 8,002,196 5,763,627
NET ASSETS
Beginning of period 178,948,024 13,387,838 3,833,454 4,526,405 --
------------- ------------- ------------- ------------- -------------
End of period $ 183,453,918 $ 10,631,121 $ 2,035,979 $ 12,528,601 $ 5,763,627
============= ============= ============= ============= =============
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
INCREASE IN NET ASSETS
OPERATIONS
Net investment income (loss) $ (1,234,326) $ (209,009) $ (81,032) $ (8,350)
Net realized gain (loss) on from
investment transactions (21,048,270) (2,355,496) (310,778) (73,821)
Net unrealized appreciation
(depreciation) on investments 624,207 (1,581,877) (146,428) (116,456)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (21,658,389) $ (4,146,382) $ (538,238) $ (198,627)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - No Load-Class (260,388) -- -- --
Net realized capital gain - No Load-Class -- -- -- --
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS (260,388) -- -- --
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets from
Fund share transactions (note 9) 128,509,304 (1,267,891) 335,760 4,725,032
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 106,590,527 (5,414,273) (202,478) 4,526,405
NET ASSETS
Beginning of period 72,357,497 18,802,111 4,035,932 --
------------- ------------- ------------- -------------
End of period $ 178,948,024 $ 13,387,838 $ 3,833,454 $ 4,526,405
============= ============= ============= =============
The accompanying notes are in integral part of the financial statements.
22
QUAKER INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS - (CONTINUED)
VALUE FUNDS FIXED INCOME FUNDS
-------------------------------------------- ----------------------------
MID-CAP SMALL-CAP GEEWAX TERKER FIXED INCOME HIGH YIELD
VALUE FUND VALUE FUND CORE VALUE FUND FUND FUND
-------------------------------------------- ----------------------------
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
INCREASE IN NET ASSETS
OPERATIONS
Net investment income (loss) $ (38,051) $ (368,833) $ (9,089) $ 510,296 $ 97,503
Net realized gain (loss) on from
investment transactions (2,520,445) (1,419,220) (160,540) (524,505) (1,698,973)
Net unrealized appreciation
(depreciation) on investments 1,180,131 1,767,613 178,577 60,751 859,934
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (1,378,365) $ (20,440) $ 8,948 $ 46,542 $ (741,536)
------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - Class A -- -- -- (342,901) (19,896)
Net investment income - Class B -- -- -- (60,621) (13,204)
Net investment income - Class C -- -- -- (86,750) (10,851)
Net investment income - Class I -- -- -- (20,024) (53,552)
Net realized capital gain - Class A (234,664) (452,591) -- -- --
Net realized capital gain - Class B (99,527) (39,453) -- -- --
Net realized capital gain - Class C (238,039) (64,894) -- -- --
Net realized capital gain - Class I (44,211) (1,005,418) -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS (616,441) (1,562,356) -- (510,296) (97,503)
------------ ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets from
Fund share transactions (note 9) (1,466,876) 14,171 79,052 (4,405,344) (6,786,425)
------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (3,461,682) (1,568,625) 88,000 (4,869,098) (7,625,464)
NET ASSETS
Beginning of period 19,690,244 26,317,113 956,768 12,769,581 8,157,972
------------ ------------ ------------ ------------ ------------
End of period $ 16,228,562 $ 24,748,488 $ 1,044,768 $ 7,900,483 $ 532,508
============ ============ ============ ============ ============
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
INCREASE IN NET ASSETS
OPERATIONS
Net investment income (loss) $ (134,611) $ (319,441) $ (3,028) $ 812,660 $ 827,182
Net realized gain (loss) on from
investment transactions 474,759 1,772,423 632 (42,480) (1,078,921)
Net unrealized appreciation
(depreciation) on investments (364,559) (1,494,648) (70,836) (16,243) (1,279,337)
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (24,411) $ (41,666) $ (73,232) $ 753,937 $ (1,531,076)
------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income - No Load-Class -- -- -- (814,060) (827,182)
Net realized capital gain - No Load-Class (315,563) (1,206,713) -- -- --
------------ ------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS (315,563) (1,206,713) -- (814,060) (827,182)
------------ ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets from
Fund share transactions (note 9) 11,096,615 2,509,271 1,030,000 4,771,844 1,039,541
------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 10,756,641 1,260,892 956,768 4,711,721 (1,318,717)
NET ASSETS
Beginning of period 8,933,603 25,056,221 -- 8,057,860 9,476,689
------------ ------------ ------------ ------------ ------------
End of period $ 19,690,244 $ 26,317,113 $ 956,768 $ 12,769,581 $ 8,157,972
============ ============ ============ ============ ============
The accompanying notes are in integral part of the financial statements.
23
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
AGGRESSIVE GROWTH FUND
---------------------------------------------
CLASS A
---------------------------------------------
FOR THE
PERIOD FROM
JULY 6, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.03 $ 18.69 $ 22.64
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.16) 0.17
Net realized and unrealized gain
on investments 0.83 (2.46) (1.24)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.64 (2.62) (1.07)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (0.04)
Net realized capital gain -- -- (2.54)
Distribution in excess of
net realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- (0.04) (2.88)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 16.67 $ 16.03 $ 18.69
========== ========== ==========
TOTAL RETURN 3.99% (14.03)% (5.06)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 149,677 $ 159,755 $ 64,637
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.16% 2.20% 2.32%
After expense reimbursements and
waived fees 2.16% 2.20% 2.32%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.24)% (0.93)% 0.88%
After expense reimbursements and
waived fees (1.24)% (0.93)% 0.88%
PORTFOLIO TURNOVER RATE 401.43% 523.87% 641.59%
AGGRESSIVE GROWTH FUND
---------------------------------------------
CLASS B
---------------------------------------------
FOR THE
PERIOD FROM
AUGUST 1, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.90 $ 18.66 $ 22.89
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.31) (0.31) (0.06)
Net realized and unrealized gain
on investments 0.82 (2.43) (1.32)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.51 (2.74) (1.38)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.34) -- (0.02)
Net realized capital gain -- -- (2.54)
Distribution in excess of
net realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- (0.02) (2.85)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 16.41 $ 15.90 $ 18.66
========== ========== ==========
TOTAL RETURN 3.21% (14.69)% (6.33)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 14,054 $ 9,077 $ 2,023
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.91% 2.95% 3.07%
After expense reimbursements and
waived fees 2.91% 2.95% 3.07%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.99)% (1.68)% 0.13%
After expense reimbursements and
waived fees (1.99)% (1.68)% 0.13%
PORTFOLIO TURNOVER RATE 401.43% 523.87% 641.59%
AGGRESSIVE GROWTH FUND
---------------------------------------------
CLASS C
---------------------------------------------
FOR THE
PERIOD FROM
JULY 11, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.85 $ 18.59 $ 22.83
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.31) (0.30) (0.01)
Net realized and unrealized gain
on investments 0.82 (2.42) (1.39)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.51 (2.72) (1.40)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.31) -- (0.02)
Net realized capital gain -- -- (2.54)
Distribution in excess of
net realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- (0.02) (2.84)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 16.36 $ 15.85 $ 18.59
========== ========== ==========
TOTAL RETURN 3.22% (14.66)% (6.49)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 15,047 $ 5,376 $ 1,469
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.91% 2.95% 3.07%
After expense reimbursements and
waived fees 2.91% 2.95% 3.07%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.99)% (1.68)% 0.13%
After expense reimbursements and
waived fees (1.99)% (1.68)% 0.13%
PORTFOLIO TURNOVER RATE 401.43% 523.87% 641.59%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
24
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
AGGRESSIVE GROWTH FUND (CONTINUED)
----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS NO LOAD CLASS
------------------------------------------- -------------------------------------------
FOR THE
PERIOD FROM
JULY 20, 2000
YEAR YEAR (COMMENCEMENT OF YEAR YEAR YEAR
ENDED ENDED OPERATIONS) TO ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001 JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.08 $ 18.72 $ 23.16 $ 14.10 $ 12.01 $ 11.16
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.15) (0.09) 0.28 0.24 0.12 --
Net realized and unrealized gain
on investments 0.83 (2.50) (1.82) 9.88 5.54 2.69
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.68 (2.59) (1.54) 10.12 5.66 2.69
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.30) -- (0.05) (0.36) (0.06) (0.12)
Net realized capital gain -- -- (2.54) (1.52) (3.45) (1.38)
Distribution in excess of
net realized gain
-- -- -- -- -- (0.46)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS -- (0.05) (2.90) (1.58) (3.57) (1.84)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 16.76 $ 16.08 $ 18.72 $ 22.64 $ 14.10 $ 12.01
========== ========== ========== ========== ========== ==========
TOTAL RETURN 4.23% (13.86)% (6.92)%(b) 73.68% 49.44% 26.57%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 4,676 $ 4,740 $ 4,229 $ 18,463 $ 3,865 $ 1,714
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.91% 1.95% 2.07% (a) 2.02% 2.84% 8.09%
After expense reimbursements and
waived fees 1.91% 1.95% 2.07% (a) 1.57% 1.35% 1.35%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.32)% (0.99)% 1.13% (a) 1.40% (0.45)% (6.72)%
After expense reimbursements and
waived fees (1.32)% (0.99)% 1.13% (a) 1.84% 1.04% (0.04)%
PORTFOLIO TURNOVER RATE 401.43% 523.87% 641.59% 886.14% 1696.00% 887.13%
The accompanying notes are in integral part of the financial statements.
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
25
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CORE EQUITY FUND
--------------------------------------------
CLASS A
--------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.64 $ 12.48 $ 20.31
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.11) (0.15) (0.25)
Net realized and unrealized gain
on investments 0.16 (2.69) (7.28)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 (2.84) (7.53)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income --
Net realized capital gain -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- (0.30)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.69 $ 9.64 $ 12.48
========== ========== ==========
TOTAL RETURN 0.52% (22.76)% (37.33)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 7,687 $ 10,504 $ 13,888
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.02% 2.21% 2.11%
After expense reimbursements and
waived fees 2.02% 2.21% 2.11%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.18)% (1.32)% (1.58)%
After expense reimbursements and
waived fees (1.18)% (1.32)% (1.58)%
PORTFOLIO TURNOVER RATE 223.82% 124.48% 127.53%
CORE EQUITY FUND
--------------------------------------------
CLASS B
--------------------------------------------
FOR THE
PERIOD FROM
NOVEMBER 14, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.52 $ 12.42 $ 16.97
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.17) (0.23) (0.19)
Net realized and unrealized gain
on investments 0.15 (2.67) (4.06)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.02) (2.90) (4.25)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.30) -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- (0.30)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.50 $ 9.52 $ 12.42
========== ========== ==========
TOTAL RETURN (0.21)% (23.35)% (25.36)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 124 $ 89 $ 112
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.77% 2.96% 2.86%
After expense reimbursements and
waived fees 2.77% 2.96% 2.86%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.93)% (2.07)% (2.33)%
After expense reimbursements and
waived fees (1.93)% (2.07)% (2.33)%
PORTFOLIO TURNOVER RATE 223.82% 124.48% 127.53%
CORE EQUITY FUND
---------------------------------------------------------
CLASS C
---------------------------------------------------------
FOR THE
PERIOD FROM
JUNE 30, 2000
YEAR YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED OPERATIONS)
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001 JUNE 30, 2000
---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.46 $ 12.34 $ 20.33 $ 19.79
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.18) (0.23) (0.34) (0.08)
Net realized and unrealized gain
on investments 0.16 (2.65) (7.35) 0.54
---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.02) (2.88) (7.69) 0.54
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- --
Net realized capital gain (0.30) -- -- (0.30)
Distribution in excess of net
realized gain -- -- -- --
---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- (0.30) --
---------- ---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.44 $ 9.46 $ 12.34 $ 20.33
========== ========== ========== ==========
TOTAL RETURN (0.21)% (23.34)% (38.09)% 2.73%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 310 $ 408 $ 550 $ 5
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.77% 2.96% 2.86% 28.51%(a)
After expense reimbursements and
waived fees 2.77% 2.96% 2.86% 0.00%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.93)% (2.07)% (2.34)% (28.51)%(a)
After expense reimbursements and
waived fees (1.93)% (2.07)% (2.34)% 0.00%(a)
PORTFOLIO TURNOVER RATE 223.82% 124.48% 127.53% 82.54%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
26
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CORE EQUITY FUND (CONTINUED)
----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS NO LOAD CLASS
-------------------------------------------- ------------------------------------------
FOR THE
PERIOD FROM
JULY 14, 2000
YEAR YEAR (COMMENCEMENT OF YEAR YEAR YEAR
ENDED ENDED OPERATIONS) TO ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001 JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.16 $ 11.83 $ 20.37 $ 17.78 $ 14.42 $ 11.61
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.11) (0.18) (0.18) (0.06) --
Net realized and unrealized gain
on investments 0.15 (2.56) (8.06) 3.09 4.10 2.81
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.07 (2.67) (8.24) 2.91 4.04 2.81
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- -- -- --
Net realized capital gain -- -- (0.30) (0.38) (0.68) --
Distribution in excess of net
realized gain -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- (0.30) (0.38) (0.68) --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.23 $ 9.16 $ 11.83 $ 20.31 $ 17.78 $ 14.42
========== ========== ========== ========== ========== ==========
TOTAL RETURN 0.76% (22.57)% (40.71)%(b) 16.34% 28.16% 24.20%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 2,511 $ 2,387 $ 4,252 $ 30,275 $ 25,407 $ 4,777
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.77% 1.96% 1.86% (a) 1.70% 1.44% 3.48%
After expense reimbursements and
waived fees 1.77% 1.96% 1.86% (a) 1.48% 1.29% 1.35%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.93)% (1.07)% (1.33)%(a) (1.17)% (0.73)% (2.10)%
After expense reimbursements and
waived fees (0.93)% (1.07)% (1.33)%(a) (0.95)% (0.58)% 0.03%
PORTFOLIO TURNOVER RATE 223.82% 124.48% 127.53% 82.54% 78.45% 64.36%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
27
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SMALL-CAP GROWTH FUND
--------------------------------------------
CLASS A
--------------------------------------------
FOR THE
PERIOD FROM
JUNE 14, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.71 $ 8.89 $ 8.71
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.15) (0.20) (0.01)
Net realized and unrealized gain
on investments (0.85) (0.98) 0.19
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.00) (1.18) 0.18
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain -- -- --
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- --
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 6.71 $ 7.71 $ 8.89
========== ========== ==========
TOTAL RETURN (12.97)% (13.27)% 2.07%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 117 $ 140 $ 31
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.63% 2.61% 2.86%
After expense reimbursements and
waived fees 2.63% 2.61% 2.26%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.20)% (2.35)% (2.49)%
After expense reimbursements and
waived fees (2.20)% (2.35)% (2.02)%
PORTFOLIO TURNOVER RATE 250.36% 154.51% 151.73%
SMALL-CAP GROWTH FUND
--------------------------------------------
CLASS B
--------------------------------------------
FOR THE
PERIOD FROM
MARCH 15, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.67 $ 8.90 $ 7.96
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.25) (0.06)
Net realized and unrealized gain
on investments (0.87) (0.98) 1.00
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.06) (1.23) 0.94
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain -- -- --
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- --
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 6.61 $ 7.67 $ 8.90
========== ========== ==========
TOTAL RETURN (13.82)% (13.82)% 11.81%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 65 $ 34 $ 27
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 3.38% 3.36% 3.61%
After expense reimbursements and
waived fees 3.38% 3.36% 3.01%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.95)% (3.10)% (3.24)%
After expense reimbursements and
waived fees (2.95)% (3.10)% (2.77)%
PORTFOLIO TURNOVER RATE 250.36% 154.51% 151.73%
SMALL-CAP GROWTH FUND
-------------------------------------------------------------------------------
CLASS C INSTITUTIONAL CLASS
------------------------------ -----------------------------------------------
FOR THE FOR THE
PERIOD FROM PERIOD FROM
OCTOBER 17, 2001 SEPTEMBER 18, 2001
YEAR (COMMENCEMENT OF YEAR YEAR (COMMENCEMENT OF
ENDED OPERATIONS) TO ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.67 $ 7.50 $ 7.77 $ 8.93 $ 10.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.20) (0.12) (0.17) (0.11)
Net realized and unrealized gain
on investments (0.84) 0.37 (0.79) (0.99) (0.96)
---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.03) 0.17 (0.91) (1.16) (1.07)
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- -- --
Net realized capital gain -- -- -- -- --
Distribution in excess of net
realized gain -- -- -- -- --
---------- ---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 6.64 $ 7.67 $ 6.86 $ 7.77 $ 8.93
========== ========== ========== ========== ==========
TOTAL RETURN (13.43)% 2.27% (11.71)% (12.99)% (10.70)%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 174 $ 66 $ 1,680 $ 3,593 $ 3,978
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 3.38% 3.36% 2.38% 2.36% 2.61%(a)
After expense reimbursements and
waived fees 3.38% 3.36% 2.38% 2.36% 2.01%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.95)% (3.10)% (1.95)% (2.10)% (2.24)%(a)
After expense reimbursements and
waived fees (2.95)% (3.10)% (1.95)% (2.10)% (1.77)%(a)
PORTFOLIO TURNOVER RATE 250.36% 154.51% 250.36% 154.51% 151.73%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
28
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
CAPITAL OPPORTUNITIES FUND
-----------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------------------- ---------------------------- ----------------------------
FOR THE FOR THE FOR THE
PERIOD FROM PERIOD FROM PERIOD FROM
JANUARY 31, 2002 MAY 2, 2002 MAY 2, 2002
YEAR (COMMENCEMENT OF YEAR (COMMENCEMENT OF YEAR (COMMENCEMENT OF
ENDED OPERATIONS) TO ENDED OPERATIONS) TO ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2003 JUNE 30, 2002
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.43 $ 10.00 $ 9.50 $ 10.01 $ 9.50 $ 10.01
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03) (0.04) (0.08) (0.03) (0.09) (0.03)
Net realized and unrealized gain
on investments (0.35) (0.53) (0.37) (0.48) (0.36) (0.48)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.38) (0.57) (0.45) (0.51) (0.45) (0.51)
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- -- -- --
Net realized capital gain -- -- -- -- -- --
Distribution in excess of net
realized gain -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.05 $ 9.43 $ 9.05 $ 9.50 $ 9.05 $ 9.50
========== ========== ========== ========== ========== ==========
TOTAL RETURN (4.03)% (5.70)% (4.74)% (5.10)% (4.74)% (5.10)%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 2,868 $ 2,044 $ 926 $ 374 $ 8,735 $ 2,108
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.05% 2.53% 2.80% 3.28% 2.80% 3.28%(a)
After expense reimbursements and
waived fees 2.05% 2.53% 2.80% 3.28% 2.80% 3.28%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.28)% (1.09)% (1.03)% (1.84)% (1.03)% (1.84)%(a)
After expense reimbursements and
waived fees (0.28)% (1.09)% (1.03)% (1.84)% (1.03)% (1.84)%(a)
PORTFOLIO TURNOVER RATE 692.80% 180.94% 692.80% 180.94% 692.80% 180.94%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
29
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
BIOTECH PHARMA-HEALTHCARE FUND
---------------------------------------------------------
CLASS A CLASS B CLASS C
---------- ---------- ----------
FOR THE FOR THE FOR THE
PERIOD FROM PERIOD FROM PERIOD FROM
OCTOBER 14, 2002 SEPTEMBER 23, 2002 NOVEMBER 20, 2002
(COMMENCEMENT OF (COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) TO OPERATIONS) TO OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2003 JUNE 30, 2003
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.02
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.08) (0.08) (0.09)
Net realized and unrealized gain
on investments 1.91 1.85 1.85
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 1.83 1.77 1.76
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain -- -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- -- --
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 11.83 $ 11.77 $ 11.78
========== ========== ==========
TOTAL RETURN 18.30%(b) 17.70%(b) 17.57%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 2,611 $ 1,565 $ 1,588
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.68%(a) 3.43%(a) 3.43%(a)
After expense reimbursements and
waived fees 2.64%(a) 3.39%(a) 3.39%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.22)%(a) (2.97)%(a) (2.97)%(a)
After expense reimbursements and
waived fees (2.18)%(a) (2.93)%(a) (2.93)%(a)
PORTFOLIO TURNOVER RATE 108.76% 108.76% 108.76%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
30
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
MID-CAP VALUE FUND
-------------------------------------------
CLASS A
-------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.80 $ 11.41 $ 10.75
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01) (0.11) (0.13)
Net realized and unrealized gain
on investments (0.54) 0.84 0.87
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.55) 0.73 0.74
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Net realized capital gain (0.50) (0.34) (0.08)
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.50) (0.34) (0.08)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 10.75 $ 11.80 $ 11.41
========== ========== ==========
TOTAL RETURN (3.99)% 6.45% 6.95%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 8,143 $ 5,168 $ 1,405
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.11% 2.14% 2.63%
After expense reimbursements and
waived fees 2.11% 2.14% 2.63%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 0.02% (0.83)% (1.05)%
After expense reimbursements and
waived fees 0.02% (0.83)% (1.05)%
PORTFOLIO TURNOVER RATE 122.76% 106.60% 195.06%
MID-CAP VALUE FUND
-------------------------------------------
CLASS B
-------------------------------------------
FOR THE
PERIOD FROM
JANUARY 4, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.71 $ 11.38 $ 10.41
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.07) (0.21) (0.07)
Net realized and unrealized gain
on investments (0.54) 0.88 1.04
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.61) 0.67 0.97
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.50) (0.34) --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.50) (0.34) --
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 10.60 $ 11.71 $ 11.38
========== ========== ==========
TOTAL RETURN (4.56)% 5.93% 0.89%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 2,211 $ 2,515 $ 520
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.86% 2.89% 3.38%
After expense reimbursements and
waived fees 2.86% 2.89% 3.38%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.73)% (1.58)% (1.80)%
After expense reimbursements and
waived fees (0.73)% (1.58)% (1.80)%
PORTFOLIO TURNOVER RATE 122.76% 106.60% 195.06%
MID-CAP VALUE FUND
-------------------------------------------
CLASS C
-------------------------------------------
FOR THE
PERIOD FROM
JULY 31, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.59 $ 11.31 $ 10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.07) (0.20) (0.18)
Net realized and unrealized gain
on investments (0.55) 0.82 1.57
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.62) 0.62 1.39
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.50) (0.34) (0.08)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.50) (0.34) (0.08)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 10.47 $ 11.59 $ 11.31
========== ========== ==========
TOTAL RETURN (4.69)% 5.52% 13.96%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 4,815 $ 5,508 $ 1,523
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.86% 2.89% 3.38%
After expense reimbursements and
waived fees 2.86% 2.89% 3.38%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.73)% (1.58)% (1.80)%
After expense reimbursements and
waived fees (0.73)% (1.58)% (1.80)%
PORTFOLIO TURNOVER RATE 122.76% 106.60% 195.06%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
31
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
MID-CAP VALUE FUND (CONTINUED)
-------------------------------------------
INSTITUTIONAL CLASS
-------------------------------------------
FOR THE
PERIOD FROM
NOVEMBER 21, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.90 $ 11.49 $ 10.17
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.04 (0.06) (0.04)
Net realized and unrealized gain
on investments (0.56) 0.81 1.44
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.52) 0.75 1.40
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.50) (0.34) (0.08)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.50) (0.34) (0.08)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 10.88 $ 11.90 $ 11.49
========== ========== ==========
TOTAL RETURN (3.70)% 6.58% 13.83%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 1,060 $ 6,499 $ 5,485
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.86% 1.89% 2.38%(a)
After expense reimbursements and
waived fees 1.86% 1.89% 2.38%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 0.27% (0.58)% (0.80)%(a)
After expense reimbursements and
waived fees 0.27% (0.58)% (0.80)%(a)
PORTFOLIO TURNOVER RATE 122.76% 106.60% 195.06%
MID-CAP VALUE FUND
-------------------------------------------
NO LOAD CLASS
-------------------------------------------
FOR THE
PERIOD FROM
JANUARY 6, 1998
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.00 $ 10.93 $ 10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03) (0.02)
Net realized and unrealized gain
on investments (0.22) 0.23 0.95
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.25) 0.23 0.93
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain -- (0.16) --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS -- (0.16) --
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 10.75 $ 11.00 $ 10.93
========== ========== ==========
TOTAL RETURN (2.27)% 2.68% 9.30%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 8,391 $ 12,155 $ 9,033
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.99% 1.63% 1.97%(a)
After expense reimbursements and
waived fees 1.43% 1.35% 1.35%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.78)% (0.33)% (0.93)%(a)
After expense reimbursements and
waived fees (0.22)% (0.05)% (0.31)%(a)
PORTFOLIO TURNOVER RATE 38.59% 69.59% 13.86%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
32
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SMALL-CAP VALUE FUND
-------------------------------------------
CLASS A
-------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 15.63 $ 12.57
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.22) (0.22) (0.16)
Net realized and unrealized gain
on investments 0.38 0.26 3.83
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.16 0.04 3.67
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Net realized capital gain (0.90) (0.76) (0.61)
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.90) (0.76) (0.61)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 14.17 $ 14.91 $ 15.63
========== ========== ==========
TOTAL RETURN 2.28% 0.54% 29.67%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 7,393 $ 7,885 $ 5,522
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.63% 2.72% 2.65%
After expense reimbursements and
waived fees 2.58% 2.60% 2.65%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.83)% (1.60)% (1.46)%
After expense reimbursements and
waived fees (1.78)% (1.48)% (1.46)%
PORTFOLIO TURNOVER RATE 89.57% 82.66% 124.37%
SMALL-CAP VALUE FUND
-------------------------------------------
CLASS B
-------------------------------------------
FOR THE
PERIOD FROM
NOVEMBER 14, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.75 $ 15.59 $ 13.90
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.31) (0.35) (0.26)
Net realized and unrealized gain
on investments 0.35 0.27 2.56
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.04 (0.08) 2.30
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.90) (0.76) (0.61)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.90) (0.76) (0.61)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 13.89 $ 14.75 $ 15.59
========== ========== ==========
TOTAL RETURN 1.46% (0.26)% 16.96%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 759 $ 540 $ 104
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 3.38% 3.47% 3.48%
After expense reimbursements and
waived fees 3.33% 3.35% 3.48%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.58)% (2.35)% (2.29)%
After expense reimbursements and
waived fees (2.53)% (2.23)% (2.29)%
PORTFOLIO TURNOVER RATE 89.57% 82.66% 124.37%
SMALL-CAP VALUE FUND
-------------------------------------------
CLASS C
-------------------------------------------
FOR THE
PERIOD FROM
JULY 28, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.42 $ 15.25 $ 12.46
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.31) (0.33) (0.37)
Net realized and unrealized gain
on investments 0.35 0.26 3.77
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.04 (0.07) 3.40
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.90) (0.76) (0.61)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.90) (0.76) (0.61)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 13.56 $ 14.42 $ 15.25
========== ========== ==========
TOTAL RETURN 1.49% (0.20)% 27.82%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 1,383 $ 973 $ 273
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 3.38% 3.47% 3.48%
After expense reimbursements and
waived fees 3.33% 3.35% 3.48%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (2.58)% (2.35)% (2.29)%
After expense reimbursements and
waived fees (2.53)% (2.23)% (2.29)%
PORTFOLIO TURNOVER RATE 89.57% 82.66% 124.37%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
33
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
SMALL-CAP VALUE FUND
-------------------------------------------
INSTITUTIONAL CLASS
-------------------------------------------
FOR THE
PERIOD FROM
SEPTEMBER 12, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.98 $ 15.67 $ 14.17
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.19) (0.18) (0.17)
Net realized and unrealized gain
on investments 0.39 0.25 2.28
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.20 0.07 2.11
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.90) (0.76) (0.61)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.90) (0.76) (0.61)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 14.28 $ 14.98 $ 15.67
========== ========== ==========
TOTAL RETURN 2.55% 0.73% 15.31%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 15,214 $ 16,919 $ 19,158
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.38% 2.47% 2.48%(a)
After expense reimbursements and
waived fees 2.33% 2.35% 2.48%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.58)% (1.35)% (1.29)%(a)
After expense reimbursements and
waived fees (1.53)% (1.23)% (1.29)%(a)
PORTFOLIO TURNOVER RATE 89.57% 82.66% 124.37%
SMALL-CAP VALUE FUND
-------------------------------------------
NO LOAD CLASS
-------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.81 $ 13.47 $ 11.53
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02) (0.04) (0.01)
Net realized and unrealized gain
on investments 0.19 (0.40) 2.99
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.17 (0.44) 2.98
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- --
Net realized capital gain (0.41) (0.22) (1.04)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.41) (0.22) (1.04)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 12.57 $ 12.81 $ 13.47
========== ========== ==========
TOTAL RETURN 1.38% (2.96)% 27.04%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 11,214 $ 13,020 $ 3,792
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.58% 1.78% 4.20%
After expense reimbursements and
waived fees 1.35% 1.35% 1.35%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (0.37)% (0.82)% (3.03)%
After expense reimbursements and
waived fees (0.14)% (0.40)% (0.18)%
PORTFOLIO TURNOVER RATE 138.59% 113.99% 129.58%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
34
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
GEEWAX TERKER CORE VALUE FUND
-----------------------------
CLASS A
-----------------------------
FOR THE
PERIOD FROM
MARCH 26, 2002
YEAR (COMMENCEMENT OF
ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002
---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.29 $ 10.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.09) (0.03)
Net realized and unrealized gain
on investments 0.08 (0.68)
---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.01) (0.71)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- --
Net realized capital gain -- --
Distribution in excess of net
realized gain -- --
---------- ----------
TOTAL DISTRIBUTIONS -- --
---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.28 $ 9.29
========== ==========
TOTAL RETURN (0.11)% (7.10)%(b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000'S OMITTED) $ 1,045 $ 957
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.12% 2.21%(a)
After expense reimbursements and
waived fees 2.12% 2.21%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees (1.01)% (1.14)%(a)
After expense reimbursements and
waived fees (1.01)% (1.14)%(a)
PORTFOLIO TURNOVER RATE 151.69% 19.31%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
35
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FIXED INCOME FUND
--------------------------------------------
CLASS A
--------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.09 $ 10.06 $ 9.85
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.52 0.86 0.55
Net realized and unrealized gain
on investments (0.28) 0.03 0.21
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.24 0.89 0.76
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.52) (0.86) (0.55)
Net realized capital gain --
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.52) (0.86) (0.55)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.81 $ 10.09 $ 10.06
========== ========== ==========
TOTAL RETURN 2.52% 9.06% 2.46%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 2,621 $ 10,818 $ 7,991
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.91% 2.04% 2.08%
After expense reimbursements and
waived fees 1.91% 2.04% 2.08%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 5.35% 8.48% 5.43%
After expense reimbursements and
waived fees 5.35% 8.48% 5.43%
PORTFOLIO TURNOVER RATE 600.89% 163.40% 180.47%
FIXED INCOME FUND
--------------------------------------------
CLASS B
--------------------------------------------
FOR THE
PERIOD FROM
APRIL 5, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.07 $ 10.06 $ 10.33
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.45 0.80 0.09
Net realized and unrealized gain
on investments (0.30) 0.01 (0.25)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.15 0.81 (0.16)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.45) (0.80) (0.11)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.45) (0.80) (0.11)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.77 $ 10.07 $ 10.06
========== ========== ==========
TOTAL RETURN 1.62% 8.24% (1.55)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 1,634 $ 716 $ 1
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.66% 2.79% 2.90%
After expense reimbursements and
waived fees 2.66% 2.79% 2.90%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 4.60% 7.73% 5.61%
After expense reimbursements and
waived fees 4.60% 7.73% 5.61%
PORTFOLIO TURNOVER RATE 600.89% 163.40% 180.47%
FIXED INCOME FUND
--------------------------------------------
CLASS C
--------------------------------------------
FOR THE
PERIOD FROM
JANUARY 12, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.08 $ 10.06 $ 10.14
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.45 0.80 0.20
Net realized and unrealized gain
on investments (0.30) 0.02 (0.05)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.15 0.82 0.15
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.45) (0.80) (0.23)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain
-
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.45) (0.80) (0.23)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.78 $ 10.08 $ 10.06
========== ========== ==========
TOTAL RETURN 1.64% 8.30% 1.46%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 3,333 $ 1,208 $ 32
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.66% 2.79% 2.90%
After expense reimbursements and
waived fees 2.66% 2.79% 2.90%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 4.60% 7.73% 5.61%
After expense reimbursements and
waived fees 4.60% 7.73% 5.61%
PORTFOLIO TURNOVER RATE 600.89% 163.40% 180.47%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
36
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
FIXED INCOME FUND (CONTINUED)
--------------------------------------------
INSTITUTIONAL CLASS
--------------------------------------------
FOR THE
PERIOD FROM
APRIL 16, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.08 $ 10.06 $ 10.25
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.55 0.89 0.11
Net realized and unrealized gain
on investments (0.28) 0.02 (0.16)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.27 0.91 (0.05)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.55) (0.89) (0.14)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain
- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.55) (0.89) (0.14)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.80 $ 10.08 $ 10.06
========== ========== ==========
TOTAL RETURN 2.80% 9.23% (0.52)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 312 $ 29 $ 34
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.66% 1.79% 1.90%(a)
After expense reimbursements and
waived fees 1.66% 1.79% 1.90%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 5.60% 8.73% 5.61%(a)
After expense reimbursements and
waived fees 5.60% 8.73% 5.61%(a)
PORTFOLIO TURNOVER RATE 600.89% 163.40% 180.47%
FIXED INCOME FUND
--------------------------------------------
NO LOAD CLASS
--------------------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 1998
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.13 $ 10.41 $ 9.89
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.25 0.48 0.47
Net realized and unrealized gain
on investments (0.28) (0.27) 0.50
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (0.03) 0.21 0.97
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.25) (0.48) (0.45)
Net realized capital gain -- -- (0.01)
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.25) (0.49) (0.45)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 9.85 $ 10.13 $ 10.41
========== ========== ==========
TOTAL RETURN (0.33)% 1.84% 9.97%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 6,601 $ 7,675 $ 5,682
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.41% 1.41% 2.53%
After expense reimbursements and
waived fees 0.90% 0.90% 0.90%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 4.41% 4.03% 2.96%
After expense reimbursements and
waived fees 4.92% 4.54% 4.59%
PORTFOLIO TURNOVER RATE 98.83% 276.94% 81.55%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
37
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
HIGH YIELD FUND
---------------------------------------------
CLASS A
---------------------------------------------
FOR THE
PERIOD FROM
SEPTEMBER 5, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.32 $ 9.46 $ 9.68
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.37 0.74 0.92
Net realized and unrealized gain
on investments (2.32) (2.14) (0.35)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.95) (1.40) 0.57
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.37) (0.74) (0.79)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.37) (0.74) (0.79)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 5.00 $ 7.32 $ 9.46
========== ========== ==========
TOTAL RETURN (27.07)% (15.28)% 6.29%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 110 $ 505 $ 212
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.98% 1.92% 2.35%
After expense reimbursements and
waived fees 1.98% 1.92% 2.35%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 5.91% 9.01% 10.23%
After expense reimbursements and
waived fees 5.91% 9.01% 10.23%
PORTFOLIO TURNOVER RATE 0.00% 231.10% 622.75%
HIGH YIELD FUND
---------------------------------------------
CLASS B
---------------------------------------------
FOR THE
PERIOD FROM
OCTOBER 17, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.31 $ 9.45 $ 9.34
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.36 0.68 0.65
Net realized and unrealized gain
on investments (2.34) (2.14) 0.15
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.98) (1.46) 0.80
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.36) (0.68) (0.69)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.36) (0.68) (0.69)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 4.97 $ 7.31 $ 9.45
========== ========== ==========
TOTAL RETURN (27.64)% (15.94)% 8.92%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 55 $ 359 $ 122
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.73% 2.67% 3.10%
After expense reimbursements and
waived fees 2.73% 2.67% 3.10%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 5.16% 8.26% 9.48%
After expense reimbursements and
waived fees 5.16% 8.26% 9.48%
PORTFOLIO TURNOVER RATE 0.00% 231.10% 622.75%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
38
QUAKER INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
HIGH YIELD FUND
---------------------------------------------
CLASS C
---------------------------------------------
FOR THE
PERIOD FROM
MAY 30, 2001
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.31 $ 9.44 $ 9.65
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.36 0.68 0.06
Net realized and unrealized gain
on investments (2.34) (2.13) (0.11)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.98) (1.45) (0.05)
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.36) (0.68) (0.16)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.36) (0.68) (0.16)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 4.97 $ 7.31 $ 9.44
========== ========== ==========
TOTAL RETURN (27.62)% (15.77)% (0.40)%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 226 $ 173 $ 30
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 2.73% 2.67% 3.10%
After expense reimbursements and
waived fees 2.73% 2.67% 3.10%
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 5.16% 8.26% 9.48%
After expense reimbursements and
waived fees 5.16% 8.26% 9.48%
PORTFOLIO TURNOVER RATE 0.00% 231.10% 622.75%
HIGH YIELD FUND
---------------------------------------------
INSTITUTIONAL CLASS
---------------------------------------------
FOR THE
PERIOD FROM
JULY 6, 2000
YEAR YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2001
---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.32 $ 9.46 $ 10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.38 0.76 0.98
Net realized and unrealized gain
on investments (2.31) (2.14) (0.57)
---------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS (1.93) (1.38) 0.41
---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.38) (0.76) (0.95)
Net realized capital gain -- -- --
Distribution in excess of net
realized gain -- -- --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.38) (0.76) (0.95)
---------- ---------- ----------
NET ASSET VALUE- END OF PERIOD $ 5.01 $ 7.32 $ 9.46
========== ========== ==========
TOTAL RETURN (26.85)% (15.08)% 4.59% (b)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 142 $ 7,121 $ 9,112
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 1.73% 1.67% 2.10%(a)
After expense reimbursements and
waived fees 1.73% 1.67% 2.10%(a)
RATIO OF NET INVESTMENT INCOME (LOSS)
TO AVERAGE NET ASSETS:
Before expense reimbursements and
waived fees 6.16% 9.26% 10.48%(a)
After expense reimbursements and
waived fees 6.16% 9.26% 10.48%(a)
PORTFOLIO TURNOVER RATE 0.00% 231.10% 622.75%
(a) Annualized
(b) Aggregate total return, not annualized
The accompanying notes are in integral part of the financial statements.
39
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The Quaker Investment Trust (the "TRUST"), a diversified, open-end
management investment company, was organized as a Massachusetts Business Trust
on October 24, 1990, and is registered under the Investment Company Act of 1940,
as amended as an open-end management investment company. The Trust's amended and
restated Agreement and Declaration of Trust permits the Trustees to issue an
unlimited number of shares of beneficial interest. The Trust has established ten
series: the Quaker Core Equity Fund, the Quaker Aggressive Growth Fund, the
Quaker Mid-Cap Value Fund, the Quaker Small-Cap Value Fund, the Quaker Small-Cap
Growth Fund, the Quaker Fixed Income Fund, the Quaker High Yield Fund, the
Quaker Biotech Pharma-Healthcare Fund, the Quaker Capital Opportunities Fund,
and the Geewax Terker Core Value Fund (each a "Fund" and collectively, the
"FUNDS"). The Investment objectives of each Fund are set forth below.
The Quaker Core Equity Fund ("CORE EQUITY"), the Quaker Aggressive Growth
Fund ("AGGRESSIVE GROWTH"), and the Quaker Small-Cap Value Fund ("SMALL-CAP
VALUE") all commenced operations on November 25, 1996. The Quaker Mid-Cap Value
Fund (MID-CAP VALUE") commenced operations on January 6, 1998. The Quaker
Small-Cap Growth Fund (the "SMALL-CAP GROWTH") commenced operations on September
18, 2000. The investment objective of these Funds is to provide shareholders
with long-term capital growth by investing primarily in equity securities of
domestic U.S. companies.
The Quaker Fixed Income Fund ("FIXED INCOME") commenced operations on
November 25, 1996. The investment objective of this Fund is to generate current
income, preserve capital and maximize total returns through active management of
investment grade fixed income securities.
The Quaker High Yield Fund ("HIGH YIELD") commenced operations on July 6,
2000. The investment objective of this fund is to generate current income and
maximize total returns through active management of non-investment grade fixed
income securities.
The Quaker Capital Opportunities Fund ("CAPITAL OPPORTUNITIES") commenced
operations on January 31, 2002. The investment objective of this fund is to
build shareholder wealth through the achievement of capital growth.
The Geewax Terker Core Value Fund ("CORE VALUE") commenced operations on
March 26, 2002. The fund seeks to achieve long capital appreciation through the
prudent investment of securities issued by companies considered by the Advisor
to be "value" oriented companies.
The Quaker Biotech Pharma-Healthcare Fund ("BIOTECH") commenced operations
on September 23, 2002. The investment objective of this fund is to build
shareholder wealth through long-term capital appreciation.
Prior to June 23, 2000, each existing Fund of the Trust offered only
No-Load shares. As of June 23, 2000, the shareholders of all Funds except the
Small-Cap Value and Fixed Income Funds approved the conversion of all existing
No-Load shares to Class A shares. On August 7, 2000 and October 10, 2000,
respectively, the Small-Cap Value and Fixed Income Funds' shareholders also
approved the conversion of their No-Load shares to Class A shares. As a result
of the conversion, each Fund currently offers four classes of shares; Class A
shares with a front-end sales charge, Class B shares with an additional
distribution and servicing fee and contingent deferred sales charge ("CDSC")
that declines to zero over a period of years, Class C shares with an additional
distribution and servicing fee and a CDSC of 1% for a period of thirteen months,
and Institutional Class shares, with no front-end sales charges or CDSC's, but
higher minimum investment limitations.
A. SECURITY VALUATION. The Funds' investments in securities are carried at
market value. Securities listed on an exchange or quoted on a national market
system are valued at the last quoted sales price at the time of valuation. 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 valued at fair value as
determined in good faith using methods approved by the Board of Trustees of the
Trust. Short-term investments are valued at amortized cost, which approximates
fair market value.
B. FEDERAL INCOME TAXES. It is the Funds' policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provision is required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and income tax purposes primarily due to investments which
have a different basis for financial statement and 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
40
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
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 each Fund.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Security transactions are
recorded on the trade date. Realized gains and losses are determined using the
specific identification cost method. Interest income on debt securities is
recorded daily on the accrual basis. Discounts and premiums on debt securities
are amortized to income over their respective lives. Dividend income is recorded
on the ex-dividend date, or as soon as information is available to the Fund.
The Aggressive Growth Fund and the Biotech Pharma-Healthcare Fund make
short sales of investments, which are transactions in which the Fund sells a
security it does not own. To complete such a transaction, the Fund must borrow
the security to make delivery to the buyer. The Fund is then obligated to
replace the security borrowed by purchasing it at the market price at the time
of replacement. The broker retains the proceeds of short sales to the extent
necessary to meet margin requirements until the short position is closed out.
D. OPTION WRITING. The Aggressive Growth Fund, the Capital Opportunities
Fund and the Biotech Pharma-Healthcare Fund write options. When the Fund writes
an option, an amount equal to the premium received by the Fund is recorded as a
liability and is subsequently adjusted to the current fair value of the option
written. Premiums received from writing options that expire unexercised are
treated by the Fund on the expiration date as realized gains from investments.
The difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the closing
purchase transaction, as a realized loss. If a call option is exercised, the
premium is added to the proceeds from the sale of the underlying security or
currency in determining whether the Fund has realized a gain or loss. If a put
option is exercised, the premium reduces the cost basis of the securities
purchased by the Fund. The Fund as writer of an option bears the market risk of
an unfavorable change in the price of the security underlying the written
option.
E. FOREIGN CURRENCY TRANSLATION. Securities and other assets and
liabilities denominated in foreign currencies are converted each business day
into U.S. dollars based on the prevailing rates of exchange. Purchases and sales
of portfolio securities and income and expenses are converted into U.S. dollars
on the respective dates of such transactions.
Gains and losses resulting from changes in exchange rates applicable to
foreign securities are not reported separately from gains and losses arising
from movements in securities prices.
Net realized foreign exchange gains and losses include gains and losses
from sales and maturities of foreign currency exchange contracts, gains and
losses realized between the trade and settlement dates of foreign securities
transactions, and the difference between the amount of net investment income
accrued on foreign securities and the U.S. dollar amount actually received. Net
unrealized foreign exchange gains and losses include gains and losses from
changes in the value of assets and liabilities other than portfolio securities,
resulting from changes in exchange rates.
F. MULTIPLE CLASS ALLOCATIONS. Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
G. DISTRIBUTIONS TO SHAREHOLDERS. Except for the Fixed Income Fund and the
High Yield Fund, which declare dividends monthly, each Fund generally declares
dividends annually, payable in December, on a date selected by the Trust's Board
of Trustees. In addition, distributions may be made annually in December out of
net realized gains through October 31 of that calendar year. Distributions to
shareholders are recorded on the ex-dividend date. Each Fund may make a
supplemental distribution subsequent to the end of its fiscal year ending June
30.
H. 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 reported
amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
revenue and expenses during the reporting period. Actual results could differ
from those estimates.
41
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS
Quaker Funds, Inc. ("QFI") serves as Investment Advisor to each Fund.
Pursuant to separate investment sub-advisory agreements, QFI has selected the
following persons to serve as sub-advisors; Geewax, Terker & Co., Inc. for the
Core Equity Fund, Small-Cap Growth Fund and Geewax Terker Core Value Fund,
Aronson + Partners for the Small-Cap Value Fund, Schneider Capital Management,
Inc. for the Mid-Cap Value Fund, ALM Advisors, Inc. for the Fixed Income Fund
and the High Yield Fund, Knott Capital Management for the Capital Opportunities
Fund and Sectoral Asset Management, Inc. for the Biotech Pharma-Healthcare Fund
to provide each 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. The Board of Trustees appointed Andres Capital
Management as the interim sub-advisor for the Fixed Income and High Yield Funds
effective March 13, 2003. Andres Capital Management was approved as the
sub-advisor for the Fixed Income and High Yield Funds at a special meeting of
the shareholders on August 8, 2003. At the shareholder meeting approval was
received to change the name of the High Yield Fund to the Quaker Intermediate
Municipal Bond Fund ("INTERMEDIATE BOND FUND").
As compensation for its services, QFI receives a fee, computed daily and
paid monthly, based on an annual rate of 1.05%, 1.30%, 1.05%, 1.05%, 1.00%,
1.05%, 1.05% and 1.25% for the Core Equity, Aggressive Growth, Mid-Cap Value,
Small-Cap Growth, Fixed Income, High Yield, Core Value and Biotech,
respectively. Effective August 8, 2003, QFI will receive 0.65% and 0.65% for the
Fixed Income and Intermediate Bond Funds, respectively. QFI receives a
performance-based fee from the Small-Cap Value Fund. The fee is based on the
Fund's performance as measured against the Russell 2000 Index. The base fee is
1.20%. It can reach as high as 1.80% and can be reduced as low as 0.60% of the
average daily net assets. For the fiscal year ended June 30, 2003, the QFI
received a fee of 1.63%, which included the performance-based fee of 1.38% of
the Fund's average daily net assets. QFI receives a performance-based fee from
the Capital Opportunities Fund. The fee is based on the Fund's performance as
measured against the S&P 500 Index. The base fee is 1.05%. It can reach as high
as 1.55% and can be reduced as low as 0.6416% of the average daily net assets.
For the fiscal year ended June 30, 2003, QFI received a fee of 0.99%, which
included the performance-based fee amounted to 0.69% of the Fund's average daily
net assets. QFI voluntarily agreed to waive its management fee to the extent
that the total operating expenses of the Small-Cap Value Fund (exclusive of
interest, taxes, brokerage commissions and other costs incurred in connection
with the purchase or sale of portfolio securities, and extraordinary items)
exceed the annual rate of 2.60% for Class A, 3.35% for Classes B and C, and
2.35% for Class I of the average net assets of each class, respectively. For the
fiscal year ended June 30, 2003, QFI waived $10,439 of expenses for Small-Cap
Value Fund.
QFI pays each Sub-advisor a fee, computed daily and paid monthly, based on
an annual rate of .75%, 1.00%, .75%, .75%, .70%, .75%, .75% and .95% for the
Core Equity, Aggressive Growth, Mid-Cap Value, Small-Cap Growth, Fixed Income,
High Yield, Core Value and Biotech, respectively. QFI pays the Sub-advisor for
the Small-Cap Value Fund a performance-based fee, computed daily and paid
quarterly. The fee is based on the Fund's performance as measured against the
Russell 2000 Index. The base fee is 0.90%. It can reach as high as 1.50% and can
be reduced as low as 0.30% of the average daily net assets. For the fiscal year
ended June 30, 2003, the Sub-advisor received a fee of 1.38 %. QFI pays the
Sub-advisor for the Capital Opportunities Fund a performance-based fee, computed
daily and paid monthly. The fee is based on the Fund's performance as measured
against the S&P 500 Index. The base fee is 0.75%. It can reach as high as 1.25%
and can be reduced as low as 0.3416% of the average daily net assets. For the
fiscal year ended June 30, 2003, the Sub-advisor received a fee of 0.69%.
CITCO-Quaker Fund Services, Inc. (the "ADMINISTRATOR") (the "TRANSFER
AGENT") serves as the Administrator and Transfer Agent for the Trust. The
Administrator provides administrative services to and is generally responsible
for the overall management and day-to-day operations of each Fund pursuant to an
accounting and administrative agreement with the Trust. The Transfer Agent
maintains the records of each shareholder's account, answers shareholder
inquiries concerning accounts, processes purchases and redemptions of Fund
shares, acts as dividend and distribution disbursing agent, and performs other
shareholder servicing functions. As compensation for its services, the
Administrator receives a fee at the annual rate of 0.40% of the aggregate of the
TRUST'S first $100 million of average daily net assets, 0.30% of the next $100
million of average daily net assets, 0.25% of the next $100 million of average
daily net assets, 0.20% of the next $200 million and 0.15% of the net assets in
excess of $500 million.
Citco-Quaker Fund Distributor, Inc. (the "DISTRIBUTOR") serves as principle
underwriter for the Trust.
The Trust has adopted distribution and shareholder servicing plans pursuant
to Rule 12b-1 of the Investment Company Act of 1940 for each class for each Fund
with the exception of Class I. The Class A Plan provides that each Fund may pay
a servicing or Rule 12b-1 fee at an annual rate of 0.25% of the Funds average
net assets on a monthly basis to persons or institutions for performing certain
ser-
42
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS -
(Continued)
vicing functions for the Funds shareholders. The Plan also allows the Fund to
pay or reimburse expenditures in connection with sales and promotional services
related to distribution of the Funds shares, including personal services
provided to prospective and existing shareholders. The Class B and C Plans
provide that each Fund may compensate Quaker Funds, Inc. (the "QFI") and others
for services provided and expenses incurred in the distribution of shares at an
annual rate of 1.00% on a monthly basis.
QFI has informed the Trust that for the fiscal year June 30, 2003 it
received contingent deferred sales charges from certain redemptions of the
Funds' Class B shares and Class C shares of $80,845 and $14,763, respectively.
The respective shareholders pay such charges, which are not an expense of the
Fund.
For the fiscal year ended June 30, 2003, Aggressive Growth, Core Equity,
Small-Cap Growth, Capital Opportunities, Biotech Pharma-Healthcare, Small-Cap
Value, and Core Value Funds incurred $2,678,130, $7,856, $826, $227,976, $2,473,
$420, and $4,104, respectively in brokerage commissions with the Quaker
Securities, Inc., an affiliate of QFI, for portfolio transactions executed on
behalf of the Funds.
Certain Trustees and officers of the Trust are also officers of QFI, the
Distributor and/or the Administrator.
NOTE 3 - DEFERRED ORGANIZATION EXPENSES
The Mid-Cap Value Fund incurred $10,000 in connection with its organization
and registration of shares and has assumed that amount. The organization
expenses are being amortized using the straight-line method over a period of
sixty months. Investors purchasing shares of the Fund bear such expenses only as
they are amortized against the Fund's investment income.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
For the fiscal year ended June 30, 2003, aggregate purchases and sales of
investment securities (excluding short-term investments) for each fund were as
follows:
FUND PURCHASES SALES
---- ------------ ------------
Aggressive Growth .................. $512,128,899 $427,173,715
Core Equity ........................ 24,237,571 27,055,917
Small-Cap Growth ................... 6,395,697 7,748,183
Capital Opportunities .............. 39,978,918 31,909,371
Biotech Pharma-Healthcare Fund ..... 4,411,837 2,003,327
Mid-Cap Value ...................... 17,281,459 19,807,046
Small-Cap Value .................... 19,711,282 21,635,465
Geewax Core Value .................. 1,441,381 1,370,628
Fixed Income ....................... 42,358,318 47,472,866
High Yield ......................... -- 5,010,953
NOTE 5 - OPTIONS WRITTEN
A summary of option contracts written by the trust during the year is as
follows:
QUAKER AGGRESSIVE GROWTH FUND
CALLS
-----------------------------
Number of Option
Options Premiums
------------ ------------
Options outstanding at beginning of year ..... 2,313 $ 274,507
Options written .............................. 31,297 4,479,565
Options closed ............................... (11,708) (1,918,503)
Options exercised ............................ (14,491) (2,062,544)
Options expired .............................. (7,411) (773,025)
------------ ------------
Options outstanding at end of year ........... -- $ --
============ ============
As of June 30, 2003, there are no portfolio securities subject to covered call
options written by the trust.
43
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 6 - TAX MATTERS
For U.S. federal income tax purposes, the cost of securities owned, gross
appreciation, gross depreciation, and net unrealized appreciation/
(depreciation) of investments at June 30, 2003 for each fund were as follows:
NET
GROSS GROSS APPRECIATION/
FUND COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ ------------ ------------
Aggressive Growth ............ $168,102,608 $ 19,665,481 $ (1,831,029) $ 17,834,452
Core Equity .................. 10,286,270 624,258 (334,416) 289,842
Small-Cap Growth ............. 1,982,192 119,431 (71,103) 48,328
Capital Opportunities ........ 12,042,365 493,603 (311,860) 181,743
Biotech Pharma-Healthcare Fund 4,876,616 345,108 (161,365) 183,743
Mid-Cap Value ................ 15,406,431 1,928,219 (1,185,029) 743,190
Small-Cap Value .............. 20,968,481 4,600,150 (804,754) 3,795,396
Geewax Core Value ............ 937,598 127,082 (19,341) 107,741
Fixed Income ................. 8,310,710 307,555 (27,383) 280,172
High Yield ................... 472,470 -- (444,470) (444,470)
The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
AS OF JUNE 30, 2003, THE COMPONENTS OF DISTRIBUTABLE EARNINGS ON A TAX BASIS
WERE AS FOLLOWS:
AGGRESSIVE GROWTH
Unrealized appreciation ............... 17,834,452
Capital loss carryforward ............. (27,101,689)
Post-October capital loss ............. (4,818,034)
------------
(14,085,271)
============
SMALL-CAP GROWTH
Unrealized appreciation ............... 48,328
Capital loss carryforward ............. (1,114,314)
Post-October capital loss ............. (11,085)
------------
(1,077,071)
============
BIOTECH PHARMA-HEALTHCARE
Unrealized appreciation ............... 183,743
Undistributed gain .................... 452,069
Post-October capital loss ............. --
------------
635,812
============
SMALL-CAP VALUE
Unrealized appreciation ............... 3,795,396
Capital loss carryforward ............. (375,667)
Post-October capital loss ............. (1,044,133)
------------
2,375,596
============
FIXED INCOME
Unrealized appreciation ............... 280,172
Capital loss carryforward ............. (481,877)
Post-October capital loss ............. (528,822)
------------
(730,527)
============
CORE EQUITY
Unrealized appreciation ............... 289,842
Capital loss carryforward ............. (7,578,139)
Post-October capital loss ............. (102,899)
------------
(7,391,196)
============
CAPITAL OPPORTUNITIES
Unrealized appreciation ............... 181,743
Capital loss carryforward ............. (61,363)
Post-October capital loss ............. --
------------
120,380
============
MID-CAP VALUE
Unrealized appreciation ............... 743,190
Capital loss carryforward ............. (1,786,832)
Post-October capital loss ............. (401,541)
------------
(1,445,183)
============
GEEWAX CORE VALUE
Unrealized appreciation ............... 107,741
Capital loss carryforward ............. (129,441)
Post-October capital loss ............. (31,099)
------------
(52,799)
============
HIGH YIELD
Unrealized depreciation ............... (444,470)
Capital loss carryforward ............. (2,555,290)
Post-October capital loss ............. (518,118)
------------
(3,517,878)
============
Net investment income and realized gains and losses for federal income tax
purposes differ from that reported in the financial statements because of
permanent and temporary book and tax differences.
44
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
The chart below indicates the capital loss carryovers for the funds at June
30, 2003.
Under current tax law, foreign currency and net capital losses realized
after October 31 may be deferred and treated as occurring on the first day of
the following fiscal year. The funds elected to defer net capital losses as
indicated in the chart below.
CAPITAL LOSS CARRYOVERS EXPIRING POST-OCTOBER LOSSES
---------------------------------------------------- --------------------------------------
2008 2009 2010 2011 TOTAL DEFERRED UTILIZED
---------- ---------- ---------- ---------- ---------- ---------- ----------
FUND
Aggressive Growth ............ -- 415,845 4,476,455 22,209,389 27,101,689 4,818,034 16,867,635
Core Equity .................. -- 283,117 4,936,522 2,358,500 7,578,139 102,899 1,178,871
Small-Cap Growth ............. -- 17 621,267 493,030 1,114,314 11,085 65,035
Capital Opportunities ........ -- -- 687 60,676 61,363 -- --
Biotech Pharma-Healthcare Fund -- -- -- -- -- -- --
Mid-Cap Value ................ -- -- -- 1,786,832 1,786,832 401,541 367
Small-Cap Value .............. -- -- -- 375,667 375,667 1,044,133 --
Geewax Core Value ............ -- -- -- 129,441 129,441 31,099 --
Fixed Income ................. 235,673 1,998 -- 244,206 481,877 528,822 250,136
High Yield ................... 0 66,162 408,182 2,080,946 2,555,290 518,118 900,091
NOTE 7 - RECLASSIFICATIONS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, each fund has recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Funds and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of June 30, 2003, the
Funds recorded the following reclassification to increase (decrease) the
accounts listed below:
UNDISTRIBUTED ACCUMULATED CAPITAL PAID IN
NET INVESTMENT NET REALIZED ON SHARES OF
FUND INCOME GAIN (LOSS) BENEFICIAL INTEREST
- ---- ------------ ------------ ------------
Aggressive Growth ............ $ 2,217,236 $ -- $ (2,217,236)
Core Equity .................. 124,933 -- (124,933)
Small-Cap Growth ............. 50,760 (50,760)
Capital Opportunities ........ 59,116 (59,116)
Biotech Pharma-Healthcare Fund 38,653 (38,653) --
Mid-Cap Value ................ 38,051 (38,051)
Small-Cap Value .............. 368,833 (368,833)
Geewax Core Value ............ 9,089 (9,089)
NOTE 8 - DISTRIBUTIONS TO SHAREHOLDERS
Income and long-term capital gain distributions are determined
in accordance with Federal income tax regulations, which may differ from
accounting principles generally accepted in the United States.
The tax character of dividends and distributions paid during
the fiscal year of 2003 were as follows:
MID-CAP VALUE
Distributions paid from:
Short-term capital gain ...... 391,633
Long-term capital gain ....... 224,808
------------
$ 616,441
============
FIXED INCOME
Distributions paid from:
Ordinary income .............. 510,296
------------
$ 510,296
============
SMALL-CAP VALUE
Distributions paid from:
Long-term capital gain ....... 1,562,356
------------
$ 1,562,356
============
HIGH YIELD
Distributions paid from:
Ordinary income .............. 97,503
------------
$ 97,503
============
45
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9- FUND SHARE TRANSACTIONS
At June 30, 2003, there were an unlimited number of shares of beneficial
interest with a $0.01 par value, authorized. The following table summarizes the
activity in shares of each Fund:
AGGRESSIVE GROWTH FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 4,702,873 (5,689,417) -- 8,980,828
Value ........ $ 72,126,295 $(87,065,260) --
Class B
Shares ....... 427,160 (141,866) -- 856,233
Value ........ $ 6,533,112 $ (2,098,583) --
Class C
Shares ....... 658,591 (77,955) -- 919,842
Value ........ $ 9,886,083 $ (1,159,388) --
Class I
Shares ....... 10,726 (26,520) -- 278,963
Value ........ $ 163,376 $ (408,355) --
JUNE 30, 2002
Class A
Shares ....... 9,511,441 (3,015,019) 13,000 9,967,372
Value ........ $166,787,919 $(52,210,556) $ 235,173
Class B
Shares ....... 526,396 (64,118) 221 570,939
Value ........ $ 9,116,374 $ (1,105,460) $ 3,985
Class C
Shares ....... 292,770 (32,690) 127 339,206
Value ........ $ 5,049,623 $ (557,712) $ 2,287
Class I
Shares ....... 82,269 (14,136) 686 294,757
Value ........ $ 1,414,821 $ (239,583) $ 12,433
46
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9- FUND SHARE TRANSACTIONS (CONTINUED)
CORE EQUITY FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 9,558 (306,209) -- 793,312
Value ........ $ 82,662 $ (2,706,219) --
Class B
Shares ....... 3,699 (48) -- 13,053
Value ........ $ 31,479 $ (400) --
Class C
Shares ....... 12,028 (22,327) -- 32,797
Value ........ $ 111,866 $ (195,272) --
Class I
Shares ....... 13,328 (1,995) -- 271,894
Value ........ $ 111,374 $ (16,996) --
JUNE 30, 2002
Class A
Shares ....... 149,986 (172,706) -- 1,089,963
Value ........ $ 1,682,614 $ (1,923,302) --
Class B
Shares ....... 1,120 (749) -- 9,402
Value ........ $ 11,989 $ (7,993) --
Class C
Shares ....... 5,438 (6,897) -- 43,096
Value ........ $ 58,825 $ (73,703) --
Class I
Shares ....... 19,194 (117,941) -- 260,561
Value ........ $ 204,074 $ (1,220,395) --
47
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
SMALL-CAP GROWTH FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 9,154 (9,895) -- 17,421
Value ........ $ 57,910 $ (62,252) --
Class B
Shares ....... 6,560 (1,205) -- 9,870
Value ........ $ 42,546 $ (7,488) --
Class C
Shares ....... 18,103 (576) -- 26,150
Value ........ $ 116,946 $ (3,531) --
Class I
Shares ....... 251,365 (468,863) -- 244,909
Value ........ $ 1,614,302 $ (3,029,940) --
JUNE 30, 2002
Class A
Shares ....... 14,792 (74) -- 18,162
Value ........ $ 117,866 $ (640) --
Class B
Shares ....... 1,938 (501) -- 4,515
Value ........ $ 15,525 $ (4,264) --
Class C
Shares ....... 8,623 -- -- 8,623
Value ........ $ 69,558 -- --
Class I
Shares ....... 25,407 (8,681) -- 462,407
Value ........ $ 208,718 $ (71,003) --
48
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
CAPITAL OPPORTUNITIES FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 166,402 (66,227) -- 316,977
Value ........ $ 1,416,947 $ (550,773) --
Class B
Shares ....... 71,477 (8,523) -- 102,329
Value ........ $ 602,598 $ (75,190) --
Class C
Shares ....... 820,001 (76,145) -- 965,744
Value ........ $ 6,993,653 $ (636,580) --
JUNE 30, 2002
Class A
Shares ....... 216,802 -- -- 216,802
Value ........ $ 2,164,832 -- --
Class B
Shares ....... 39,375 -- -- 39,375
Value ........ $ 392,404 -- --
Class C
Shares ....... 223,888 (2,000) -- 221,888
Value ........ $ 2,186,996 $ (19,200) --
BIOTECH PHARMA-HEALTHCARE FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 222,480 (1,696) -- 220,784
Value ........ $ 2,312,935 $ (16,439) --
Class B
Shares ....... 135,233 (2,325) -- 132,908
Value ........ $ 1,449,656 $ (25,264) --
Class C
Shares ....... 137,400 (2,587) -- 134,813
Value ........ $ 1,432,673 $ (25,699) --
49
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
MID-CAP VALUE FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 585,569 (291,166) 24,917 757,401
Value ........ $ 5,387,844 $ (2,651,022) $ 231,729
Class B
Shares ....... 72,264 (89,247) 10,744 208,585
Value ........ $ 715,531 $ (832,859) $ 98,952
Class C
Shares ....... 149,472 (190,254) 25,429 459,978
Value ........ $ 1,417,250 $ (1,687,558) $ 231,146
Class I
Shares ....... 15,430 (468,729) 4,703 97,416
Value ........ $ 146,289 $ (4,568,389) $ 44,211
JUNE 30, 2002
Class A
Shares ....... 387,208 (76,479) 4,211 438,081
Value ........ $ 4,854,193 $ (907,647) $ 49,019
Class B
Shares ....... 171,550 (4,532) 2,109 214,824
Value ........ $ 2,152,125 $ (55,564) $ 24,490
Class C
Shares ....... 377,914 (44,478) 7,152 475,331
Value ........ $ 4,558,373 $ (537,257) $ 82,182
Class I
Shares ....... 94,379 (39,420) 13,569 546,012
Value ........ $ 1,215,235 $ (497,693) $ 159,159
50
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
SMALL-CAP VALUE FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 149,703 (194,137) 37,212 521,618
Value ........ $ 1,907,793 $ (2,345,693) $ 440,598
Class B
Shares ....... 23,349 (8,676) 3,319 54,628
Value ........ $ 312,426 $ (109,429) $ 38,701
Class C
Shares ....... 50,583 (21,207) 5,108 101,924
Value ........ $ 625,070 $ (245,427) $ 58,130
Class I
Shares ....... 13,652 (162,003) 84,347 1,065,210
Value ........ $ 165,233 $ (1,838,648) $ 1,005,417
JUNE 30, 2002
Class A
Shares ....... 300,626 (142,563) 17,534 528,840
Value ........ $ 4,541,523 $ (2,080,241) $ 246,525
Class B
Shares ....... 31,194 (1,829) 629 36,636
Value ........ $ 477,362 $ (26,488) $ 8,787
Class C
Shares ....... 48,629 (315) 1,226 67,440
Value ........ $ 734,965 $ (4,534) $ 16,754
Class I
Shares ....... 43,536 (202,191) 65,142 1,129,214
Value ........ $ 663,899 $ (2,988,442) $ 919,161
GEEWAX CORE VALUE FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 9,553 (49) -- 112,544
Value ........ $ 79,472 $ (420) --
June 30, 2002
Class A
Shares ....... 103,040 -- -- 103,040
Value ........ $ 1,030,000 -- --
51
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
FIXED INCOME FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 203,279 (1,041,893) 34,352 267,251
Value ........ $ 2,000,675 $(10,166,223) $ 336,760
Class B
Shares ....... 144,322 (54,334) 6,149 167,231
Value ........ $ 1,423,075 $ (530,945) $ 59,856
Class C
Shares ....... 269,611 (53,909) 5,368 340,921
Value ........ $ 2,646,640 $ (526,838) $ 52,288
Class I
Shares ....... 70,627 (43,721) 2,050 31,842
Value ........ $ 703,543 $ (424,199) $ 20,024
JUNE 30, 2002
Class A
Shares ....... 546,185 (340,033) 71,227 1,071,513
Value ........ $ 5,584,240 $ (3,467,095) $ 728,351
Class B
Shares ....... 72,494 (3,062) 1,564 71,094
Value ........ $ 738,545 $ (31,133) $ 15,840
Class C
Shares ....... 121,457 (7,755) 2,950 119,851
Value ........ $ 1,249,461 $ (78,933) $ 30,009
Class I
Shares ....... 38,320 (39,884) 1,096 2,886
Value ........ $ 399,068 $ (407,837) $ 11,328
52
QUAKER INVESTMENT TRUST
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
NOTE 9 -- FUND SHARE TRANSACTIONS -- (CONTINUED)
HIGH YIELD FUND
ENDING
SOLD REDEEMED REINVESTED SHARES
------------ ------------ ------------ ------------
FOR THE FISCAL YEAR ENDED:
JUNE 30, 2003
Class A
Shares ....... 7,700 (58,534) 3,702 21,945
Value ........ $ 36,495 $ (305,206) $ 20,942
Class B
Shares ....... 20,481 (61,272) 2,715 11,013
Value ........ $ 103,981 $ (311,260) $ 15,355
Class C
Shares ....... 35,016 (15,771) 2,592 45,514
Value ........ $ 205,071 $ (82,717) $ 14,579
Class I
Shares ....... -- (957,030) 12,450 28,329
Value ........ -- $ (6,555,799) $ 72,134
JUNE 30, 2002
Class A
Shares ....... 55,344 (12,097) 3,384 69,077
Value ........ $ 480,342 $ (99,627) $ 27,012
Class B
Shares ....... 47,843 (13,394) 1,688 49,089
Value ........ $ 399,795 $ (111,709) $ 13,545
Class C
Shares ....... 21,497 (1,987) 1,001 23,677
Value ........ $ 171,578 $ (15,659) $ 7,904
Class I
Shares ....... 178,154 (262,785) 93,960 972,909
Value ........ $ 1,509,086 $ (2,103,415) $ 760,689
53
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees of
The Quaker Investment Trust
Valley Forge, Pennsylvania
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of The Quaker Investment Trust (comprising,
respectively, Aggressive Growth Fund, Core Equity Fund, Small-Cap Growth Fund,
Capital Opportunities Fund, Biotech Pharma-Healthcare Fund, Mid-Cap Value Fund,
Small-Cap Value Fund, GeeWax Terker Core Value Fund, Fixed Income Fund and High
Yield Fund) as of June 30, 2003, and the related statements of operations for
the year then ended and changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the respective
periods from commencement of operations to June 30, 2003. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with U.S. generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 2003, by correspondence with the custodian and brokers or by other
appropriate auditing procedures where replies for brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the portfolios constituting The Quaker Investment Trust, as of June 30, 2003,
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended, and their
financial highlights for each of the periods from commencement of operations to
June 30, 2003, in conformity with U.S. generally accepted accounting principles.
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
August 22, 2003
54
QUAKER INVESTMENT TRUST
PROXY VOTING
JUNE 30,2003
- --------------------------------------------------------------------------------
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
Special meetings of the Shareholders of the Quaker Investment Trust were
held on July 31, 2003 and August 22, 2003 to approve the following matters:
1. Approve an increase in the investment advisory fee paid to Quaker Funds,
Inc. for its services to the Quaker Biotech Pharma-Healthcare Fund.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
383,088 60.51% 190,732 27,352 13,739
---------------------------------------------------------------------
2. Approve a new sub-investment advisory agreement for the Quaker Aggressive
Growth Fund with DG Capital Management.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
10,915,766 50.60% 4,735,240 177,448 610,813
---------------------------------------------------------------------
3. Approve a new sub-investment advisory agreement for the Quaker Fixed Income
Fund with Andres Capital Management.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
731,064 60.64% 387,267 21,596 34,480
---------------------------------------------------------------------
4. Approve a new sub-investment advisory agreement for the High Yield Fund
with Andres Capital Management.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
113,290 53.30% 51,885 -- 8,501
---------------------------------------------------------------------
5. Approve changes to the investment objective and investment
strategies/restrictions for the Quaker High Yield Fund.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
113,290 53.30% 51,885 -- 8,501
---------------------------------------------------------------------
6. Approve a name change for the Quaker High Yield Fund.
---------------------------------------------------------------------
PERCENTAGE NUMBER OF VOTES
SHARES PRESENT BY
OUTSTANDING PROXY FOR AGAINST ABSTAIN
---------------------------------------------------------------------
113,290 53.30% 51,885 -- 8,501
---------------------------------------------------------------------
55
QUAKER INVESTMENT TRUST
TRUSTEE DATA
JUNE 30, 2003
- --------------------------------------------------------------------------------
FUNDS IN
POSITION(S) TERM OF OFFICE & TRUST OTHER
NAME, ADDRESS & DATE OF HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
BIRTH THE TRUST SERVED(1) PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
===================================================================================================================================
MR. JEFFRY H. KING SR. Interested Since Nov., 1996 Chairman of the Board of Ten Director &
Trustee, Directors of Quaker Securities, Chairman,
1288 Valley Forge Road, Chairman of Inc., 1288 Valley Forge Road, Citco-Quaker
Suite 75, Valley Forge, the Board of Suite 75, Valley Forge, Pa Fund Services,
PA 19482 Trustees 19482, an institutional Inc., Director
broker/dealer firm, since 2002. & Chairman,
(12-06-42) President & CEO of Quaker Quaker Funds,
Securities, Inc. from 1990 to Inc., Director
2002. Chairman of the Board of and Chairman,
Directors of Quaker Funds, Inc., Quaker
1288 Valley Forge Road, Suite Securities, Inc.
71, Valley Forge, Pa 19482,
currently Fund Manager to the
Quaker Family of Funds, since
1996. Chairman of the Board
Citco-Quaker Fund Services,
Inc., 1288 Valley Forge Road,
Suite 88, Valley Forge, Pa
19482, transfer agent to the
Trust, since May, 2001.
- -----------------------------------------------------------------------------------------------------------------------------------
MS. LAURIE KEYES Interested Since Nov., 1996 Chief Financial Officer of Ten None
Trustee, Quaker Funds, Inc., currently
1288 Valley Forge Road, Secretary Fund Manager to the Quaker
Suite 75, Valley Forge, Family of Funds, since 1996.
PA 19482
(12-10-49)
- -----------------------------------------------------------------------------------------------------------------------------------
MR. EVERETT T. KEECH Trustee, Since Nov., 1996 Chairman-Executive Committee, Ten Director,
Vice Technology Development Corp., Technology
One Tower Bridge, Suite Chairman of Norristown, PA, a technology Development
501, West Conshohocken, the Board, development and manufacturing Corp.;
Pennsylvania 19428 President, firm, since 1997; President, Director,
Treasurer Quaker Investment Trust since Advanced Training
(02-23-40) January 2002; Lecturer, Systems
University of Pennsylvania since International,
1988 Inc.; Director,
Phoenix Data
Systems, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
56
QUAKER INVESTMENT TRUST
TRUSTEE DATA - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF TRUST
PORTFOLIOS OTHER
POSITION(S) TERM OF OFFICE & OVERSEEN DIRECTORSHIPS
NAME, ADDRESS & DATE OF HELD WITH THE LENGTH OF TIME PRINCIPAL OCCUPATION(S) BY TRUSTEE HELD BY TRUSTEE
BIRTH TRUST SERVED(1) DURING PAST 5 YEARS OR NOMINEE OR NOMINEE
===================================================================================================================================
MR. KEVIN J. MAILEY Interested Since Feb., 2002 Principal of Quaker Funds, Ten Director,
Trustee Inc. since May, 2000. Quaker Funds,
1288 Valley Forge Road, Elected president of Quaker Inc.
Suite 71, Valley Forge, Funds, Inc. in September, Director,
PA 19482 2001. Director, Citco-Quaker
Citco-Quaker Fund Services, Fund Services,
(09-06-52) Inc. Marketing Director of Inc.
Meridian Investments from
October, 1997 to June,
1999. Principal and
Marketing Director of the
William Penn Funds from
December, 1989 to June,
1997. Graduate of Notre
Dame University.
- -----------------------------------------------------------------------------------------------------------------------------------
MR. LOUIS P. PEKTOR, Independent Since Nov., 1996 President, Ashley Ten None
III Trustee Development Company, 559
Main Street, Suite 300,
559 Main Street, Suite Bethlehem, PA, 18018, a
300, Bethlehem, PA, commercial real estate
18018 development company, since
1989. Previously,
Executive Vice President,
(01-18-51) Wall Street Mergers &
Acquisitions, Allentown,
Pennsylvania. Graduate of
Moravian College with BA
and Lehigh University with
a MBA in Business
Management.
- -----------------------------------------------------------------------------------------------------------------------------------
MR. MARK S. SINGEL Independent Since Feb., 2002. Managing Director , Public Ten Director,
Trustee Affairs Management, 305 GoInternet
305 North Front Street, North Front Street, Corp.,
Harrisburg, PA 17108 Harrisburg, PA 17108, a Philadelphia,
political consulting firm, PA, Trustee,
(09-12-53) since 1999. President and St. Francis
CEO of Singel Associates, University
1995-1999. Formerly
Lieutenant Governor and
Acting Governor of the
Commonwealth of
Pennsylvania; also served
as a State Senator for
Pennsylvania and Chairman
of the Pennsylvania
Democratic Party.
- -----------------------------------------------------------------------------------------------------------------------------------
57
QUAKER INVESTMENT TRUST
TRUSTEE DATA - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
===================================================================================================================================
NUMBER OF TRUST
PORTFOLIOS OTHER
POSITION(S) TERM OF OFFICE & OVERSEEN DIRECTORSHIPS
NAME, ADDRESS & DATE OF HELD WITH THE LENGTH OF TIME PRINCIPAL OCCUPATION(S) BY TRUSTEE HELD BY TRUSTEE
BIRTH TRUST SERVED(1) DURING PAST 5 YEARS OR NOMINEE OR NOMINEE
===================================================================================================================================
AMBASSADOR ADRIAN A. Independent Since Feb., 2002. President of Eisenhower Ten Governor of
BASORA (RET.) Trustee Fellowships ("EF"), the Philadelphia
Philadelphia, PA, since Stock Exchange
256 South 16th Street, 1996. EF's mission is to
Philadelphia, PA enhance progress and mutual
19102, since 1996 understanding through
linkages among leaders in
(07-18-38) key fields throughout the
world. Previously served
as U.S. Ambassador to the
Czech Republic from 1992
through 1995. Served as
National Security Council
Director for European
Affairs at the White House
from 1989 to 1991.
Ambassador Basora's
affiliations include the
Council on Foreign
Relations, the Foreign
Policy Research Institute
and the Foundation for a
Civil Society. Ambassador
Basora holds an MPA degree
from Princeton University
and undergraduate degrees
from the Institut d'Etudes
Politiques in Paris and
from Fordham University.
- -----------------------------------------------------------------------------------------------------------------------------------
MR. G. MICHAEL MARA Independent Since Feb., 2002. Managing Director, Ten Director, Penn
Trustee Millennium Bank, Malvern, Street Funds,
30 Valley Stream PA, since 2000. Previously Inc.
Parkway, Malvern, PA principal, Vanguard
19355 Fiduciary Trust Company,
The Vanguard Group, Valley
(05-05-55) Forge, PA, from 1997 to
1999. District Manager and
Senior Vice President,
Merrill Lynch Trust
Company, 1995 to 1997.
Served in various
increasingly responsible
roles within Merrill Lynch
from 1986 to 1997. Mr.
Mara also served in the
U.S. Army Intelligence and
Security Command in
Augsburg, Germany from
1976-1980. Mr. Mara holds
an MBA in management from
The American University,
Washington, DC and a BA in
Business Communications
from Emerson College,
Boston, MA
- -----------------------------------------------------------------------------------------------------------------------------------
58
QUAKER INVESTMENT TRUST
TRUSTEE DATA - (CONTINUED)
JUNE 30, 2003
- --------------------------------------------------------------------------------
===================================================================================================================================
NUMBER OF TRUST
PORTFOLIOS OTHER
POSITION(S) TERM OF OFFICE & OVERSEEN DIRECTORSHIPS
NAME, ADDRESS & DATE OF HELD WITH THE LENGTH OF TIME PRINCIPAL OCCUPATION(S) BY TRUSTEE HELD BY TRUSTEE
BIRTH TRUST SERVED(1) DURING PAST 5 YEARS OR NOMINEE OR NOMINEE
===================================================================================================================================
MR. JAMES R. BRINTON Independent Each Trustee serves Principal and Senior Ten None
Trustee for an indefinite Insurance Broker for Robert
123 West Lancaster period of time. J. McAllister Agency, Inc.,
Avenue, Wayne PA 19087 Mr. Brinton is 123 West Lancaster Avenue,
standing for Wayne PA 19087, a commercial
(07-03-54) election for the insurance commercial
first time. brokerage firm, since
1979. Mr. Brinton holds
a BA in business from
Marietta College and
licenses as a property and
casualty broker and life,
accident and health agent.
===================================================================================================================================
----------------------------------------------------------
TAX NOTICE (UNAUDITED)
For the fiscal year ended June 30, 2003 the following
funds distributed long-term capital gains dividents:
Mid-Cap Value Fund $ 224,808
Small-Cap Value Fund 1,562,356
----------------------------------------------------------
59
[LOGO]
The Quaker Funds
www.quakerfunds.com
800-220-8888
Distributed by Citco-Quaker Fund Distributors, Inc. (member, NASD), for the
Quaker Investment Trust.
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 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.
Not applicable.
ITEM 10. EXHIBITS
(a) Not applicable at this time.
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
are attached hereto as EX-99.CERT. Certifications pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-906CERT.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Quaker Investment Trust
By (Signature and Title)* /s/ Everett T. Keech PRESIDENT AND TREASURER
-----------------------------------------------------
- 4 -
Date 09/08/2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Everett T. Keech PRESIDENT
-----------------------------------------------------
Date 09/08/2003
By (Signature and Title)* /s/ Everett T. Keech TREASURER
-----------------------------------------------------
Date 09/08/2003
* Print the name and title of each signing officer under his or her
signature.
- 5-