UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------
FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-8549
Oak Associates Funds
(Exact name of registrant as specified in charter)
--------
3875 Embassy Parkway, Suite 250
Akron, OH 44333-8334
(Address of principal executive offices) (Zip code)
Oak Associates Funds
P.O. Box 219441
Kansas City, MO 64121-9441
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-462-5386
Date of fiscal year end: October 31, 2003
Date of reporting period: April 30, 2003
Item 1. Report to Stockholders
SEMI-ANNUAL REPORT
April 30, 2003
White Oak Growth Stock Fund
Pin Oak Aggressive Stock Fund
Red Oak Technology Select Fund
Black Oak Emerging Technology Fund
Live Oak Health Sciences Fund
[LOGO] OAK ASSOCIATES FUNDS
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Table of Contents
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Shareholder Letter ............................ 1
Financial Highlights .......................... 2
Statements of Net Assets ...................... 4
Statements of Operations ...................... 14
Statements of Changes
in Net Assets ................................. 16
Notes to
Financial Statements .......................... 18
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Contact Us
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BY MAIL Oak Associates Funds
P.O. Box 219441
Kansas City, MO 64121-9441
BY TELEPHONE 1-888-462-5386
ON THE WEB www.oakassociates.com
Click on the MY OAK ACCOUNT
section to take advantage of
these features:
o Trade Online
o Access and Update Account Information
o Go Paperless with E-Delivery
To Our Shareholders
Dear Fellow Shareholder:
We are pleased to send you the Oak Associates Funds' Semi-Annual Report, which
contains information on the holdings of each of the Funds, along with the
Financial Highlights and Statements of Operations for the six-month period ended
April 30, 2003. We encourage you to read the report to help you stay informed
about your mutual fund investment.
The markets have been shown a broad-based recovery over the past six months, and
recent performance in our concentrated fund portfolios has been strong. The
market appears to have hit a bottom in early October, and we believe the
backdrop is set for a sustained recovery.
As we look at the economy today, things actually look quite good. The war in
Iraq is evolving towards a new phase, and U.S. policy has taken a greater focus
toward economic stimulus. We believe the tax cut plan will provide positive
effects for both the stock market and the economy. From a historical
perspective, our economy is better-positioned than it was during other
post-war/post-recession periods. The consumer has remained strong, and business
is starting to show signs of capital spending improvements. Furthermore,
cost-conscious company managements, low interest rates, low inflation and
falling oil prices all set the stage for what we believe will be a solid
recovery.
We are optimistic about the future and believe that our investors will be
rewarded for their commitment to a long-term investment strategy. As always, we
appreciate the trust you have placed in us and thank you for your investment.
Sincerely,
/S/ JAMES D. OELSCHLAGER
James D. Oelschlager
Chief Investment Officer
1
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS ENDED APRIL 30, 2003 (UNAUDITED) AND OCTOBER 31,
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET GAINS OR FROM NET FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END OF
OF PERIOD LOSS SECURITIES INCOME GAINS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
WHITE OAK GROWTH STOCK FUND
2003* $23.22 $ (0.05) $ 2.58 $ -- $ -- $25.75
2002 34.54 (0.12) (11.20) -- -- 23.22
2001 77.05 (0.15) (42.08) -- (0.28) 34.54
2000 53.28 (0.19) 23.96 -- -- 77.05
1999 34.04 (0.13) 19.37 -- -- 53.28
1998(1) 29.29 (0.05) 4.86 -- (0.06) 34.04
PIN OAK AGGRESSIVE STOCK FUND
2003* $11.63 $ (0.04) $ 1.65 $ -- $ -- $13.24
2002 21.61 (0.20) (9.78) -- -- 11.63
2001 69.45 (0.32) (47.27) -- (0.25) 21.61
2000 41.85 (0.20) 29.33 -- (1.53) 69.45
1999 21.96 (0.13) 20.02 -- -- 41.85
1998(1) 19.46 (0.15) 2.65 -- -- 21.96
RED OAK TECHNOLOGY SELECT FUND
2003* $ 4.23 $ (0.02) $ 0.62 $ -- $ -- $ 4.83
2002 8.45 (0.08) (4.14) -- -- 4.23
2001 33.85 (0.14) (25.26) -- -- 8.45
2000 16.94 (0.13) 17.04 -- -- 33.85
1999(2) 10.00 (0.05) 6.99 -- -- 16.94
BLACK OAK EMERGING TECHNOLOGY FUND
2003* $ 1.23 $ (0.01) $ 0.25 $ -- $ -- $ 1.47
2002 2.98 (0.02) (1.73) -- -- 1.23
2001(3) 10.00 (0.02) (7.00) -- -- 2.98
LIVE OAK HEALTH SCIENCES FUND
2003* $ 7.83 $ (0.03) $ (0.47) $ -- $ -- $ 7.33
2002 10.24 (0.05) (2.36) -- -- 7.83
2001(4) 10.00 (0.01) 0.25 -- -- 10.24
<FN>
* FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2003. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
+ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF
TAXES THE SHAREHOLDER WILL PAY ON FUND DISTRIBUTIONS OR REDEMPTION OF FUND SHARES.
(1) THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS PRIOR TO FEBRUARY 27, 1998 IS THE FINANCIAL DATA OF THE
WHITE OAK GROWTH STOCK FUND AND THE PIN OAK AGGRESSIVE STOCK FUND, RESPECTIVELY, EACH A SERIES OF THE ADVISORS'
INNER CIRCLE FUND.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386 2
<page>
RATIO OF
EXPENSES
TO AVERAGE
NET ASSETS
RATIO OF (EXCLUDING
NET ASSETS RATIO OF NET INVESTMENT WAIVERS
END OF EXPENSES TO LOSS AND DIRECTED
TOTAL PERIOD AVERAGE TO AVERAGE BROKERAGE
RETURN+ (000) NET ASSETS NET ASSETS ARRANGEMENTS)
- --------------------------------------------------------------------------------------------------------------------------------
WHITE OAK GROWTH STOCK FUND
2003* 10.90% $1,624,971 1.03% (0.34)% 1.11%
2002 (32.77) 1,593,995 1.00 (0.32) 1.01
2001 (54.99) 3,188,358 0.95 (0.31) 0.95
2000 44.61 6,219,080 0.96 (0.38) 0.96
1999 56.52 2,196,364 1.00 (0.34) 1.04
1998(1) 16.48 830,219 1.00 (0.22) 1.07
PIN OAK AGGRESSIVE STOCK FUND
2003* 13.84% $ 167,305 1.05% (0.76)% 1.25%
2002 (46.18) 143,775 1.00 (0.87) 1.09
2001 (68.75) 363,083 0.99 (0.82) 0.99
2000 71.36 1,219,288 1.00 (0.59) 1.02
1999 90.57 131,755 1.00 (0.57) 1.10
1998(1) 12.85 41,444 1.00 (0.79) 1.14
RED OAK TECHNOLOGY SELECT FUND
2003* 14.18% $ 256,095 1.05% (0.96)% 1.26%
2002 (49.94) 217,390 1.00 (0.97) 1.10
2001 (75.04) 531,663 0.98 (0.84) 0.98
2000 99.82 2,220,110 0.99 (0.79) 1.01
1999(2) 69.40 168,562 1.00 (0.81) 1.20
BLACK OAK EMERGING TECHNOLOGY FUND
2003* 19.51% $ 49,031 1.05% (1.01)% 1.62%
2002 (58.72) 40,583 1.00 (0.86) 1.20
2001(3) (70.20) 104,191 1.00 (0.52) 1.12
LIVE OAK HEALTH SCIENCES FUND
2003* (6.39)% $ 16,478 1.05% (0.61)% 1.31%
2002 (23.54) 18,686 1.00 (0.56) 1.18
2001(4) 2.40 21,134 1.00 (0.49) 1.23
RATIO OF NET
INVESTMENT
LOSS TO AVERAGE
NET ASSETS
(EXCLUDING
WAIVERS
AND DIRECTED PORTFOLIO
BROKERAGE TURNOVER
ARRANGEMENTS) RATE
- ---------------------------------------------------------
WHITE OAK GROWTH STOCK FUND
2003* (0.42)% 1.71%
2002 (0.33) 10.76
2001 (0.31) 15.44
2000 (0.38) 13.86
1999 (0.38) 6.27
1998(1) (0.29) 6.16
PIN OAK AGGRESSIVE STOCK FUND
2003* (0.96)% 19.65%
2002 (0.96) 17.68
2001 (0.82) 20.91
2000 (0.61) 13.16
1999 (0.67) 26.47
1998(1) (0.93) 10.04
RED OAK TECHNOLOGY SELECT FUND
2003* (1.17)% 34.71%
2002 (1.07) 47.80
2001 (0.84) 53.98
2000 (0.81) 40.13
1999(2) (1.01) 16.54
BLACK OAK EMERGING TECHNOLOGY FUND
2003* (1.58)% 21.96%
2002 (1.06) 57.15
2001(3) (0.64) 5.99
LIVE OAK HEALTH SCIENCES FUND
2003* (0.87)% 4.69%
2002 (0.74) 31.00
2001(4) (0.72) --
(2) THE RED OAK TECHNOLOGY SELECT FUND COMMENCED OPERATIONS ON DECEMBER 31,
1998. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(3) THE BLACK OAK EMERGING TECHNOLOGY FUND COMMENCED OPERATIONS ON DECEMBER 29,
2000. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(4) THE LIVE OAK HEALTH SCIENCES FUND COMMENCED OPERATIONS ON JUNE 29, 2001. ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
3 www.oakassociates.com
Statement of Net Assets
APRIL 30, 2003 (UNAUDITED)
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White Oak Growth Stock Fund
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MARKET
DESCRIPTION SHARES VALUE (000)
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COMMON STOCK -- 98.8%
COMMERCIAL BANKS -- 4.4%
Citigroup 1,810,000 $ 71,042
----------
71,042
----------
COMPUTER COMMUNICATIONS EQUIPMENT -- 12.4%
Cisco Systems* 8,950,000 134,608
Juniper Networks* 6,520,000 66,634
----------
201,242
----------
DATA STORAGE -- 7.0%
Brocade Communications
Systems* 5,650,000 32,601
EMC* 8,845,000 80,401
----------
113,002
----------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 6.1%
Medtronic 2,070,000 98,822
----------
98,822
----------
ELECTRONIC COMPUTERS -- 3.2%
Dell Computer* 1,825,000 52,761
----------
52,761
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FIRE, MARINE & CASUALTY INSURANCE -- 4.5%
American International
Group 1,275,500 73,915
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73,915
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MARKET
DESCRIPTION SHARES VALUE (000)
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PHARMACEUTICAL PREPARATIONS -- 9.9%
Eli Lilly 1,140,000 $ 72,755
Pfizer 2,870,000 88,252
----------
161,007
----------
SECURITY BROKERS, DEALERS &
FLOTATION COMPANIES -- 8.5%
Charles Schwab 7,250,000 62,568
Morgan Stanley 1,700,000 76,075
----------
138,643
----------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 6.8%
Applied Materials* 7,533,000 109,982
----------
109,982
----------
SEMICONDUCTORS & RELATED DEVICES -- 11.2%
Intel 3,100,000 57,040
Linear Technology 2,235,000 77,040
PMC-Sierra* 5,750,000 47,437
----------
181,517
----------
SERVICES -- COMPUTER PROCESSING -- 2.7%
First Data 1,120,000 43,938
----------
43,938
----------
SERVICES -- PREPACKAGED SOFTWARE -- 12.1%
Microsoft 3,835,000 98,061
Veritas Software* 4,465,000 98,275
----------
196,336
----------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS-- 6.9%
MBNA 5,950,000 112,455
----------
112,455
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1-888-462-5386 4
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White Oak Growth Stock Fund (CONTINUED)
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SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
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WHOLESALE -- DRUGS PROPRIETARIES & DRUGGISTS'
SUNDRIES -- 3.1%
Cardinal Health 925,000 $ 51,134
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51,134
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TOTAL COMMON STOCK
(Cost $2,935,032) 1,605,796
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REPURCHASE AGREEMENT -- 0.8%
ABN AMRO (A)
1.220%, dated 04/30/03, matures
05/01/03, repurchase price
$12,503,315 (collateralized
by U.S. Government
obligations, total market
value: $12,753,954) $12,503 12,503
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $12,503) 12,503
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TOTAL INVESTMENTS -- 99.6%
(Cost $2,947,535) 1,618,299
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OTHER ASSETS AND LIABILITIES, NET -- 0.4%
Investment Advisory Fees Payable (922)
Administration Fees Payable (50)
Other Assets and Liabilities 7,644
---------------
6,672
---------------
VALUE (000)
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NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 63,102,389
outstanding shares of
beneficial interest $ 4,584,994
Accumulated net investment loss (2,592)
Accumulated net realized loss
on investments (1,628,195)
Net unrealized depreciation
on investments (1,329,236)
---------------
TOTAL NET ASSETS-- 100.0% $1,624,971
===============
Net Asset Value, Offering and Redemption
Price Per Share $25.75
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5 www.oakassociates.com
Statement of Net Assets
APRIL 30, 2003 (UNAUDITED)
Pin Oak Aggressive Stock Fund
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MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 97.3%
ACCOUNTING -- BOOKKEEPING -- 4.9%
Paychex 265,000 $ 8,252
---------------
8,252
---------------
COMPUTER COMMUNICATIONS EQUIPMENT -- 16.5%
Cisco Systems* 1,180,000 17,747
Juniper Networks* 965,000 9,862
---------------
27,609
---------------
DATA STORAGE -- 5.2%
Brocade Communications
Systems* 540,000 3,116
McData, Cl A* 525,000 5,555
---------------
8,671
---------------
E-COMMERCE -- SERVICES -- 4.7%
eBay* 85,000 7,885
---------------
7,885
---------------
LABORATORY ANALYTICAL INSTRUMENTS -- 4.9%
Waters* 345,000 8,284
---------------
8,284
---------------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 5.2%
Charles Schwab 1,015,000 8,759
---------------
8,759
---------------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 4.9%
Applied Materials* 557,000 8,132
---------------
8,132
---------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 21.1%
Linear Technology 225,000 $ 7,756
Maxim Integrated Products 350,000 13,752
PMC-Sierra* 485,000 4,001
Xilinx* 360,000 9,745
---------------
35,254
---------------
SERVICES -- COMPUTER PROGRAMMING
SERVICES -- 4.2%
Cognizant Technology
Solutions* 390,000 7,004
---------------
7,004
---------------
SERVICES -- HOME HEALTH CARE SERVICES -- 4.9%
Express Scripts, Cl A* 140,000 8,254
---------------
8,254
---------------
SERVICES -- PREPACKAGED SOFTWARE -- 11.2%
Advent Software* 450,000 5,666
Cerner* 255,000 5,095
Veritas Software* 360,000 7,924
---------------
18,685
---------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS -- 6.2%
MBNA 550,000 10,395
---------------
10,395
---------------
WEB PORTALS/ISP -- 3.4%
Yahoo!* 229,000 5,675
---------------
5,675
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TOTAL COMMON STOCK
(Cost $332,469) 162,859
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1-888-462-5386 6
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Pin Oak Aggressive Stock Fund (CONTINUED)
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FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
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REPURCHASE AGREEMENT -- 2.7%
ABN AMRO (A)
1.220%, dated 04/30/03, matures
05/01/03, repurchase price
$4,486,535 (collateralized
by U.S. Government
obligations, total market
value: $4,576,852) $4,486 $ 4,486
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $4,486) 4,486
---------------
TOTAL INVESTMENTS -- 100.0%
(Cost $336,955) 167,345
---------------
OTHER ASSETS AND LIABILITIES, NET -- 0.0%
Investment Advisory Fees Payable (86)
Administration Fees Payable (5)
Other Assets and Liabilities 51
---------------
(40)
---------------
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VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 12,632,907
outstanding shares of
beneficial interest $ 1,084,613
Accumulated net investment loss (586)
Accumulated net realized loss
on investments (747,112)
Net unrealized depreciation
on investments (169,610)
---------------
TOTAL NET ASSETS-- 100.0% $ 167,305
===============
Net Asset Value, Offering and
Redemption Price Per Share $13.24
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7 www.oakassociates.com
Statement of Net Assets
APRIL 30, 2003 (UNAUDITED)
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Red Oak Technology Select Fund
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MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.2%
COMPUTER COMMUNICATIONS EQUIPMENT -- 9.7%
Cisco Systems* 939,900 $ 14,136
Juniper Networks* 1,045,500 10,685
--------------
24,821
--------------
COMPUTER PERIPHERAL -- 4.0%
Symbol Technologies 930,000 10,165
--------------
10,165
--------------
CONTRACT MANUFACTURERS -- 3.6%
Flextronics International* 1,070,000 9,363
--------------
9,363
--------------
DATA STORAGE -- 21.6%
Brocade Communications
Systems* 1,742,600 10,055
EMC* 1,237,200 11,246
Emulex* 548,000 11,229
McData, Cl A* 1,185,500 12,542
QLogic* 231,900 10,201
--------------
55,273
--------------
E-COMMERCE -- SERVICES -- 4.2%
eBay* 116,800 10,836
--------------
10,836
--------------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 10.8%
Applied Materials* 858,700 12,537
Novellus* 252,000 7,066
Qualcomm 250,000 7,972
--------------
27,575
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 9.9%
Intersil, Cl A* 861,000 $ 15,929
Maxim Integrated
Products 158,600 6,231
Semtech* 195,400 3,107
--------------
25,267
--------------
SERVICES -- COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 3.0%
Affymetrix* 415,000 7,698
--------------
7,698
--------------
SERVICES -- COMPUTER PROGRAMMING
SERVICES -- 3.0%
Cognizant Technology
Solutions* 429,000 7,705
--------------
7,705
--------------
SERVICES -- PREPACKAGED SOFTWARE -- 28.4%
Cerner* 284,142 5,677
Check Point Software
Technologies* 839,000 13,197
Intuit* 195,500 7,581
Microsoft 596,200 15,245
Tibco Software* 1,351,500 6,663
Veritas Software* 769,000 16,926
webMethods* 753,500 7,580
--------------
72,869
--------------
TOTAL COMMON STOCK
(Cost $380,201) 251,572
--------------
1-888-462-5386 8
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Red Oak Technology Select Fund (CONTINUED)
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- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.6%
ABN AMRO (A)
1.220%, dated 04/30/03, matures
05/01/03, repurchase price
$1,374,597 (collateralized
by U.S. Government
obligations, total market
value: $1,402,115) $1,375 $ 1,375
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,375) 1,375
---------------
TOTAL INVESTMENTS -- 98.8%
(Cost $381,576) 252,947
---------------
OTHER ASSETS AND LIABILITIES, NET -- 1.2%
Investment Advisory Fees Payable (136)
Administration Fees Payable (8)
Other Assets and Liabilities 3,292
---------------
3,148
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 52,973,971
outstanding shares of
beneficial interest $ 2,013,199
Accumulated net investment loss (1,156)
Accumulated net realized loss
on investments (1,627,319)
Net unrealized depreciation
on investments (128,629)
---------------
TOTAL NET ASSETS-- 100.0% $256,095
===============
Net Asset Value, Offering and Redemption
Price Per Share $4.83
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9 www.oakassociates.com
Statement of Net Assets
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.1%
COMPUTER COMMUNICATIONS EQUIPMENT -- 3.6%
NetScreen Technologies* 88,000 $ 1,785
----------------
1,785
----------------
DATA STORAGE -- 13.0%
Brocade Communications
Systems* 294,600 1,700
Emulex* 96,700 1,981
McData, Cl A* 254,100 2,688
----------------
6,369
----------------
E-COMMERCE -- SERVICES -- 4.0%
eBay* 21,000 1,948
----------------
1,948
----------------
INDUSTRIAL INSTRUMENTS FOR MEASUREMENT,
DISPLAY & CONTROL -- 3.2%
Photon Dynamics* 73,100 1,601
----------------
1,601
----------------
PHOTOGRAPHIC EQUIPMENT -- 0.8%
Pinnacle Systems* 39,300 371
----------------
371
----------------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 4.5%
Rudolph Technologies* 147,000 2,221
----------------
2,221
----------------
SEMICONDUCTORS & RELATED DEVICES -- 29.8%
Broadcom, Cl A* 135,800 2,429
Cree* 169,800 3,388
DSP Group* 70,300 1,469
Intersil, Cl A* 78,600 1,454
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Ixia* 118,200 $ 720
Marvell Technology
Group* 143,500 3,312
Skyworks Solutions* 345,400 1,848
----------------
14,620
----------------
SERVICES -- ALLIED TO MOTION PICTURE
PRODUCTION -- 4.4%
Avid Technology* 78,700 2,162
----------------
2,162
----------------
SERVICES -- COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 4.5%
Affymetrix* 118,100 2,191
----------------
2,191
----------------
SERVICES -- COMPUTER INTEGRATED
SYSTEMS DESIGN -- 6.4%
AtRoad* 129,600 831
Neoware Systems* 55,000 561
Websense* 122,200 1,744
----------------
3,136
----------------
SERVICES -- COMPUTER PROGRAMMING
SERVICES -- 2.3%
Cognizant Technology
Solutions* 62,100 1,115
----------------
1,115
----------------
SERVICES -- PREPACKAGED SOFTWARE -- 15.7%
Cerner* 68,700 1,373
Concord
Communications* 156,000 1,970
Packeteer* 332,700 4,352
----------------
7,695
----------------
1-888-462-5386 10
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Black Oak Emerging Technology Fund (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TESTING LABS -- 2.9%
eResearch Technology* 47,400 $ 1,413
---------------
1,413
---------------
TOTAL COMMON STOCK
(Cost $48,209) 46,627
---------------
REPURCHASE AGREEMENT -- 5.2%
Salomon Smith Barney (A) 1.210%,
dated 04/30/03, matures 05/01/03,
repurchase price $2,572,543
(collateralized by U.S. Government
obligations, total market
value: $2,628,533) $2,572 2,572
---------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,572) 2,572
---------------
TOTAL INVESTMENTS -- 100.3%
(Cost $50,781) 49,199
---------------
OTHER ASSETS AND LIABILITIES, NET -- (0.3)%
Investment Advisory Fees Payable (12)
Administration Fees Payable (2)
Other Assets and Liabilities (154)
---------------
(168)
---------------
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 33,311,955
outstanding shares of
beneficial interest $ 354,276
Accumulated net investment loss (228)
Accumulated net realized loss
on investments (303,435)
Net unrealized depreciation
on investments (1,582)
---------------
TOTAL NET ASSETS-- 100.0% $49,031
===============
Net Asset Value, Offering and Redemption
Price Per Share $1.47
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11 www.oakassociates.com
Statement of Net Assets
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.9%
BIOLOGICAL PRODUCTS -- 14.5%
Amgen* 13,000 $ 797
Genentech* 14,400 547
Invitrogen* 32,000 1,047
----------------
2,391
----------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 8.1%
Medtronic 28,100 1,341
----------------
1,341
----------------
LABORATORY ANALYTICAL INSTRUMENTS -- 13.5%
Applied Biosystems Group -
Applera 46,300 812
Bruker Daltonics* 75,900 259
Molecular Devices* 26,700 335
Waters* 34,000 816
----------------
2,222
----------------
PHARMACEUTICAL PREPARATIONS -- 27.7%
Eli Lilly 10,700 683
Johnson & Johnson 12,300 693
Medicis Pharmaceutical,
Cl A* 13,500 778
Pfizer 44,800 1,378
Teva Pharmaceutical
Industries ADR 22,100 1,032
----------------
4,564
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 1.7%
Caliper Technologies* 81,000 $ 276
----------------
276
----------------
SERVICES -- COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 8.7%
Affymetrix* 76,900 1,427
----------------
1,427
----------------
SERVICES -- HOME HEALTH CARE SERVICES -- 4.7%
Express Scripts, Cl A* 13,200 778
----------------
778
----------------
SERVICES -- PREPACKAGED SOFTWARE -- 4.3%
Cerner* 35,000 699
----------------
699
----------------
SURGICAL & MEDICAL INSTRUMENTS &
APPARATUS -- 4.6%
Techne* 34,400 764
----------------
764
----------------
WHOLESALE -- DRUGS PROPRIETARIES & DRUGGISTS'
SUNDRIES -- 9.1%
Cardinal Health 27,200 1,504
----------------
1,504
----------------
TOTAL COMMON STOCK
(Cost $19,375) 15,966
----------------
1-888-462-5386 12
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.4%
Morgan Stanley (A) 1.050%,
dated 04/30/03, matures
05/01/03, repurchase price
$393,267 (collateralized by
U.S. Government obligations,
total market value: $401,121) $393 $ 393
----------------
TOTAL REPURCHASE AGREEMENT
(Cost $393) 393
----------------
TOTAL INVESTMENTS -- 99.3%
(Cost $19,768) 16,359
----------------
OTHER ASSETS AND LIABILITIES, NET -- 0.7%
Investment Advisory Fees Payable (8)
Administration Fees Payable (1)
Other Assets and Liabilities 128
----------------
119
----------------
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 2,247,659
outstanding shares of
beneficial interest $ 23,038
Accumulated net investment loss (52)
Accumulated net realized loss
on investments (3,099)
Net unrealized depreciation
on investments (3,409)
----------------
TOTAL NET ASSETS-- 100.0% $16,478
================
Net Asset Value, Offering and Redemption
Price Per Share $7.33
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13 www.oakassociates.com
Statements of Operations (000)
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2003 (UNAUDITED)
WHITE OAK
GROWTH STOCK
FUND
- ----------------------------------------------------------------------------------------------
Investment Income:
Dividends .................................................... $ 5,315
Interest ..................................................... 31
- ----------------------------------------------------------------------------------------------
Total Investment Income ................................... 5,346
- ----------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ..................................... 5,702
Administration Fees .......................................... 308
Transfer Agent Fees .......................................... 1,944
Printing Fees ................................................ 339
Professional Fees ............................................ 64
Trustee Fees ................................................. 60
Custodian Fees ............................................... 39
Registration Fees ............................................ 39
Insurance and Other Fees ..................................... 42
- ----------------------------------------------------------------------------------------------
Total Expenses ............................................ 8,537
- ----------------------------------------------------------------------------------------------
Less: Investment Advisory Fees Waived ........................ (578)
Directed Brokerage ..................................... (21)
- ----------------------------------------------------------------------------------------------
Net Expenses .............................................. 7,938
- ----------------------------------------------------------------------------------------------
Net Investment Loss ....................................... (2,592)
- ----------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Securities Sold .................. (159,180)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities .................................. 322,799
- ----------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments ................................ 163,619
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations ........................................... $161,027
==============================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE
ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386 14
PIN OAK RED OAK
AGGRESSIVE STOCK TECHNOLOGY SELECT
FUND FUND
- ----------------------------------------------------------------------------------------------------------
Investment Income:
Dividends .................................................... $ 200 $ 82
Interest ..................................................... 25 32
- ----------------------------------------------------------------------------------------------------------
Total Investment Income ................................... 225 114
- ----------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ..................................... 571 894
Administration Fees .......................................... 31 48
Transfer Agent Fees .......................................... 301 481
Printing Fees ................................................ 37 60
Professional Fees ............................................ 7 10
Trustee Fees ................................................. 6 9
Custodian Fees ............................................... 4 6
Registration Fees ............................................ 4 6
Insurance and Other Fees ..................................... 4 7
- ----------------------------------------------------------------------------------------------------------
Total Expenses ............................................ 965 1,521
- ----------------------------------------------------------------------------------------------------------
Less: Investment Advisory Fees Waived ........................ (145) (251)
Directed Brokerage ..................................... (9) --
- ----------------------------------------------------------------------------------------------------------
Net Expenses .............................................. 811 1,270
- ----------------------------------------------------------------------------------------------------------
Net Investment Loss ....................................... (586) (1,156)
- ----------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Securities Sold .................. (160,500) (211,398)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities .................................. 180,134 242,713
- ----------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments ................................ 19,634 31,315
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations ........................................... $ 19,048 $ 30,159
==========================================================================================================
BLACK OAK LIVE OAK
EMERGING TECHNOLOGY HEALTH SCIENCES
FUND FUND
- ------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends .................................................... $ -- $ 34
Interest ..................................................... 10 3
- ------------------------------------------------------------------------------------------------------------
Total Investment Income ................................... 10 37
- ------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ..................................... 168 63
Administration Fees .......................................... 9 3
Transfer Agent Fees .......................................... 173 39
Printing Fees ................................................ 11 4
Professional Fees ............................................ 2 1
Trustee Fees ................................................. 2 1
Custodian Fees ............................................... 1 --
Registration Fees ............................................ 1 --
Insurance and Other Fees ..................................... 1 --
- ------------------------------------------------------------------------------------------------------------
Total Expenses ............................................ 368 111
- ------------------------------------------------------------------------------------------------------------
Less: Investment Advisory Fees Waived ........................ (130) (22)
Directed Brokerage ..................................... -- --
- ------------------------------------------------------------------------------------------------------------
Net Expenses .............................................. 238 89
- ------------------------------------------------------------------------------------------------------------
Net Investment Loss ....................................... (228) (52)
- ------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on Securities Sold .................. (15,186) 29
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities .................................. 23,227 (1,133)
- ------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments ................................ 8,041 (1,104)
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations ........................................... $ 7,813 $(1,156)
============================================================================================================
15 www.oakassociates.com
Statements of Changes in Net Assets (000)
FOR PERIOD ENDED APRIL 30, 2003 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31, 2002
WHITE OAK
GROWTH STOCK
FUND
- ------------------------------------------------------------------------------------------------------------------------------------
11/01/02 11/01/01
TO 04/30/03 TO 10/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Loss ......................................................... $ (2,592) $ (8,453)
Net Realized Gain (Loss) on Securities Sold ................................. (159,180) (719,946)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities ................................................. 322,799 (162,630)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ................................................ 161,027 (891,029)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ............................................................... 177,220 629,770
Shares Redeemed ............................................................. (307,271) (1,333,104)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ....................................... (130,051) (703,334)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............................ 30,976 (1,594,363)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ......................................................... 1,593,995 3,188,358
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period ............................................................... $1,624,971 $ 1,593,995
====================================================================================================================================
Shares Issued and Redeemed:
Issued ...................................................................... 7,365 18,684
Redeemed .................................................................... (12,917) (42,333)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ....................... (5,552) (23,649)
====================================================================================================================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386 16
PIN OAK
AGGRESSIVE STOCK
FUND
- -------------------------------------------------------------------------------------------------------------------------
11/01/02 11/01/01
TO 04/30/03 TO 10/31/02
- -------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Loss ......................................................... $ (586) $ (2,412)
Net Realized Gain (Loss) on Securities Sold ................................. (160,500) (435,617)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities ................................................. 180,134 304,193
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ................................................ 19,048 (133,836)
- -------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ............................................................... 38,724 122,969
Shares Redeemed ............................................................. (34,242) (208,441)
- -------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ....................................... 4,482 (85,472)
- -------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ............................ 23,530 (219,308)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ......................................................... 143,775 363,083
- -------------------------------------------------------------------------------------------------------------------------
End of Period ............................................................... $ 167,305 $ 143,775
=========================================================================================================================
Shares Issued and Redeemed:
Issued ...................................................................... 3,023 5,912
Redeemed .................................................................... (2,748) (10,358)
- -------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ....................... 275 (4,446)
=========================================================================================================================
RED OAK
TECHNOLOGY
SELECT FUND
- ------------------------------------------------------------------------------------------
11/01/02 11/01/01
TO 04/30/03 TO 10/31/02
- ------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Loss ...................................$ (1,156) $ (4,224)
Net Realized Gain (Loss) on Securities Sold ........... (211,398) (734,657)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities ........................... 242,713 495,846
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations .......................... 30,159 (243,035)
- ------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ......................................... 70,353 306,081
Shares Redeemed ....................................... (61,807) (377,319)
- ------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ................. 8,546 (71,238)
- ------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ...... 38,705 (314,273)
- ------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................... 217,390 531,663
- ------------------------------------------------------------------------------------------
End of Period ......................................... $256,095 $ 217,390
==========================================================================================
Shares Issued and Redeemed:
Issued ................................................ 14,930 37,931
Redeemed .............................................. (13,348) (49,492)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions . 1,582 (11,561)
==========================================================================================
BLACK OAK LIVE OAK
EMERGING TECHNOLOGY HEALTH SCIENCES
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
11/01/02 11/01/01 11/01/02 11/01/01
TO 04/30/03 TO 10/31/02 TO 04/30/03 TO 10/31/02
- -----------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Loss ................................... $ (228) $ (802) $ (52) $ (116)
Net Realized Gain (Loss) on Securities Sold ........... (15,186) (212,719) 29 (3,128)
Net Change in Unrealized Appreciation (Depreciation)
of Investment Securities ........................... 23,227 148,461 (1,133) (2,790)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations .......................... 7,813 (65,060) (1,156) (6,034)
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ......................................... 14,595 142,264 2,290 26,007
Shares Redeemed ....................................... (13,960) (140,812) (3,342) (22,421)
- -----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ................. 635 1,452 (1,052) 3,586
- -----------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ...... 8,448 (63,608) (2,208) (2,448)
- -----------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................... 40,583 104,191 18,686 21,134
- -----------------------------------------------------------------------------------------------------------------------
End of Period ......................................... $ 49,031 $ 40,583 $16,478 $18,686
=======================================================================================================================
Shares Issued and Redeemed:
Issued ................................................ 10,489 47,905 302 2,936
Redeemed .............................................. (10,195) (49,876) (439) (2,615)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions . 294 (1,971) (137) 321
=======================================================================================================================
17 www.oakassociates.com
Notes to Financial Statements
APRIL 30, 2003, (UNAUDITED)
1. ORGANIZATION:
- --------------------------------------------------------------------------------
The Oak Associates Funds (the "Trust") is organized as a Massachusetts business
trust under an Agreement and Declaration of Trust dated November 6, 1997. The
Trust is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company with five funds: White Oak Growth Stock
Fund, Pin Oak Aggressive Stock Fund (diversified funds), Red Oak Technology
Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences
Fund (non-diversified funds) (the "Funds"). The assets of each Fund are
segregated, and a shareholder's interest is limited to the Fund in which shares
are held. The Funds' prospectus provides a description of each Fund's investment
objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
- --------------------------------------------------------------------------------
The following is a summary of the significant accounting policies followed by
the Funds.
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 disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION--Investments in equity securities, which are traded on a
national exchange, are stated at the last quoted sales price if readily
available for such equity securities on each business day. Investment in
equity securities, which are reported on the NASDAQ national market system are
valued at the official closing price; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt
obligations exceeding sixty days to maturity for which market quotations are
readily available are valued at the most recently quoted bid price. Debt
obligations with sixty days or less remaining until maturity may be valued at
their amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by, or in accordance with procedures
approved by the Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INCOME--Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend
income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis. Costs used in determining realized gains and
losses on the sales of investment securities are those of the specific
securities sold.
NET ASSET VALUE PER SHARE--The net asset value per share of each Fund is
calculated on each business day by dividing the total value of each
1-888-462-5386 18
Fund's assets, less liabilities, by the number of shares outstanding.
EXPENSES--Expenses that are directly related to one of the Funds are charged
to that Fund. Other operating expenses of the Trust are prorated to the Funds
on the basis of relative daily net assets.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian bank until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Board of Trustees require that the market value of the collateral,
including accrued interest thereon, is sufficient in the event of default by
the counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization
of the collateral by the Funds may be delayed or limited.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income are
declared and paid to shareholders on an annual basis, as applicable. Any net
realized capital gains on sales of securities are distributed to shareholders
at least annually.
DIRECTED BROKERAGE--The Funds may direct certain investment trades to brokers
who pay a portion of the commissions for those trades to the Funds. The
commissions paid are used to offset a portion of the total annual operating
expenses of the respective Fund after expense waivers. During the six-month
period ended April 30, 2003, the White Oak Growth Stock and Pin Oak Aggressive
Stock Funds' expenses were reduced by $21,433 and $8,833, respectively, under
this arrangement. The effect on the Funds' expense ratios, as a percentage of
the average net assets of the Funds on an annualized basis for the six-month
period ended April 30, 2003, were 0.00% and 0.01% for the White Oak Growth
Stock and Pin Oak Aggressive Stock Funds, respectively.
3. TRANSACTIONS WITH AFFILIATES:
- --------------------------------------------------------------------------------
Certain officers of the Trust are also officers of Oak Associates, ltd., SEI
Investments Global Funds Services (the "Administrator") and/or SEI Investments
Distribution Co. (the "Distributor"). Such officers are paid no fees by the
Trust for serving as officers of the Trust.
The Trust has entered into an agreement with the Distributor to act as an
agent in placing repurchase agreements for the Funds. For the period ended
April 30, 2003, the Funds paid the Distributor $4,278 through a reduction in
the yield earned by the Funds.
4. ADMINISTRATION, SHAREHOLDER
SERVICING AND DISTRIBUTION
AGREEMENTS:
- --------------------------------------------------------------------------------
The Trust and the Administrator are parties to an Administrative Agreement dated
February 27, 1998, as amended April 1, 2001, under which the Administrator
provides management and administrative services for an annual fee of 0.04% of
the average daily net assets of each of the Funds up to $10 billion, 0.0175% on
the next $5 billion, and 0.015% of such assets in excess of $15 billion. There
is a minimum annual administration fee of $475,000 for the complex.
19 www.oakassociates.com
Notes to Financial Statements (continued)
APRIL 30, 2003, (UNAUDITED)
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for
the Funds under a transfer agency agreement with the Trust. The Funds pay
amounts to third parties that provide sub-transfer agency and other
administrative services relating to the Funds.
The Trust and the Distributor are parties to a Distribution Agreement dated
February 27, 1998. The Distributor receives no fees for its distribution
services under this agreement.
5. INVESTMENT ADVISORY AND
CUSTODIAN AGREEMENTS:
- --------------------------------------------------------------------------------
The Trust and Oak Associates, ltd. (the "Adviser") are parties to an Investment
Advisory Agreement dated February 27, 1998, as amended February 21, 2001, under
which the Adviser receives an annual fee equal to 0.74% of the average daily net
assets of each Fund. Effective March 1, 2003, the Adviser has agreed to
voluntarily waive all or a portion of its fees (and to reimburse the Funds'
expenses if necessary) in order to limit operating expenses to not more than
1.15% of the average daily net assets of each of the Funds. Prior to March 1,
2003, the Adviser contractually waived all or a portion of its fees to limit the
Funds' expenses to 1.00% of the average daily net assets of each of the Funds.
Wachovia Bank, N.A. acts as custodian (the "Custodian") for the Funds. The
Custodian plays no role in determining the investment policies of the Funds or
which securities are to be purchased or sold by the Funds.
6. INVESTMENT TRANSACTIONS:
- --------------------------------------------------------------------------------
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six-month period ended April 30, 2003, were as
follows (000):
PURCHASES SALES
-------- -------
White Oak Growth Stock Fund ..... $26,273 $154,832
Pin Oak Aggressive Stock Fund ... 31,914 29,681
Red Oak Technology Select Fund .. 89,437 82,032
Black Oak Emerging Technology
Fund .......................... 9,680 10,113
Live Oak Health Sciences Fund ... 785 1,044
7. FEDERAL INCOME TAXES:
- --------------------------------------------------------------------------------
Each of the Funds is classified as a separate taxable entity for Federal income
tax purposes. Each of the Funds intends to continue to qualify as a separate
"regulated investment company" under the Internal Revenue Code and make the
requisite distributions to shareholders that will be sufficient to relieve it
from Federal income tax and Federal excise tax. Therefore, no Federal tax
provision is required. To the extent that distributions from net investment
income and net realized capital gains exceed amounts reported in the financial
statements, such amounts are reported separately.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with Federal income tax regulations, which
may differ from those amounts determined under accounting principles generally
accepted in the United States of America. These book/tax differences are either
temporary or permanent in
1-888-462-5386 20
nature. These differences are primarily due to wash sales as well as net
operating losses which may be carried forward for Federal income tax purposes.
The character of distributions made during the year from net investment income
or net realized gains, and the timing of distributions where the fiscal year in
which the amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the Funds. To the extent these
differences are permanent, adjustments are made to the appropriate equity
accounts in the period that the differences arise.
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At October 31, 2002, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING OCTOBER 31,
-----------------------------------------------
2007 2008 2009 2010 TOTAL
----- ------ ------ ------- -------
White Oak
Growth
Stock Fund ...... $ -- $-- $749,069 $712,972 $1,462,041
Pin Oak Aggressive
Stock Fund ...... -- -- 137,533 436,197 573,730
Red Oak
Technology
Select Fund ..... 1,366 56,063 610,821 726,266 1,394,516
Black Oak
Emerging
Technology
Fund ............ -- -- 75,404 212,845 288,249
Live Oak Health
Sciences Fund ... -- -- -- 3,128 3,128
At April 30, 2003, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for securities
held by the Funds were as follows (000):
FEDERAL AGGREGATE AGGREGATE
TAX GROSS GROSS
COST APPRECIATION DEPRECIATION NET
----------- ------------- -------------- ---------------
White Oak
Growth
Stock Fund ................. $2,954,508 $272,392 $(1,608,601) $(1,336,209)
Pin Oak
Aggressive
Stock Fund ................. 346,365 28,780 (207,800) (179,020)
Red Oak
Technology
Select Fund ................ 387,254 14,804 (149,111) (134,307)
Black Oak
Emerging
Technology
Fund ....................... 50,781 7,702 (9,284) (1,582)
Live Oak Health
Sciences Fund .............. 19,768 1,496 (4,905) (3,409)
8. CONCENTRATION OF CREDIT RISK
- --------------------------------------------------------------------------------
The Red Oak Technology Select Fund and the Black Oak Emerging Technology Fund
invest a substantial portion of their assets in securities in the technology
industry. The Live Oak Health Sciences Fund invests a substantial portion of its
assets in securities in the health care, medicine and life sciences industries.
Therefore, the Funds may be more affected by economic and political developments
in those industries than a general equity fund would be.
21 www.oakassociates.com
Oak Associates Funds PRSRT STD
P.O. Box 219441 U.S. POSTAGE
Kansas City, MO 64121-9441 PAID
OAK
WWW.OAKASSOCIATES.COM ASSOCIATES
OAK-F-023-0400
Item 2. Code of Ethics.
Not applicable - only effective for annual reports with periods ending on or
after July 15, 2003.
Item 3. Audit Committee Financial Expert.
Not applicable - only effective for annual reports with periods ending on or
after July 15, 2003.
Item 4. Principal Accountant Fees and Services.
Not applicable - only effective for annual reports with periods ending on or
after December 15, 2003.
Items 5-6. (Reserved)
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. (Reserved)
Item 9. Controls and Procedures.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that material information relating to the
registrant, including its consolidated subsidiaries, is made known to them by
others within those entities, particularly during the period in which this
report is being prepared. Further, in their opinion, the registrant's disclosure
controls and procedures are adequately designed, and are operating effectively
to ensure, that information required to be disclosed by the registrant in the
reports it files or submits under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Items 10. Exhibits.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Oak Associates Funds
By (Signature and Title)* \s\ William E. White
--------------------------
William E. White, President
Date 6/16/03
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\ William E. White
---------------------------
William E. White, President
Date 6/16/03
By (Signature and Title)* \s\ Jennifer E. Spratley
--------------------------------
Jennifer E. Spratley, Controller
and CFO
Date 6/16/03
* Print the name and title of each signing officer under his or her signature.