UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------
FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08549
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, 2005
Date of reporting period: April 30, 2005
Item 1. Reports to Stockholders.
Semi-Annual Report
April 30, 2005
White Oak Select Growth
Pin Oak Aggressive Stock
Rock Oak Core Growth
Red Oak Technology Select
Black Oak Emerging Technology
Live Oak Health Sciences
Introducing Small Cap Growth Investing with
RIVER OAK DISCOVERY FUND
[OAK LOGO OMITTED]
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, Statements of Operations and Statements of Changes for the
six-month period ended April 30, 2005. We encourage you to read the report
carefully to help you stay informed about your investments.
We are pleased to introduce two additions to the family of Oak Associates Funds:
ROCK OAK CORE GROWTH FUND-- opened 12/31/2004
This new large cap Fund is a diversified portfolio of larger, established
growth companies (usually greater than $5 billion in size) who seek to
capitalize on demographic, productivity and globalization trends. This
Fund has a broader array of sectors and holdings than our other, more
focused funds.
RIVER OAK DISCOVERY FUND-- opens June 30, 2005
This new Fund will invest in smaller companies (usually under $3 billion
in size) who are in the early stages of product or business growth, and
have not yet been fully discovered by Wall Street. River Oak Discovery
looks for companies with cutting edge products, visionary management, and
the ability to bring innovation to both new and established industries.
For more information about these new Funds, including detailed sector and
portfolio holdings and a prospectus, call us toll-free at 1-888-462-5386 or
visit www.oakfunds.com.
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
Oak Associates Funds
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TABLE OF CONTENTS
Financial Highlights ................................................... 2
Statements of Net Assets ............................................... 6
Statements of Operations ............................................... 22
Statements of Changes in Net Assets .................................... 24
Notes to Financial Statements .......................................... 26
Disclosure of Fund Expenses ............................................ 31
Approval of Investment Advisory Agreements ............................. 33
A New Small Cap Growth Fund
RIVER OAK DISCOVERY FUND
opens June 30, 2005
Uncovering Small Company Growth Opportunities
o Seeks smaller companies, whose intense focus on innovation drives
long-term growth
o A research-driven investment process leads to small, rapidly growing
businesses, undiscovered by Wall Street
o Invests in companies that have cutting edge products, visionary
management, and the ability to bring innovation to both new and
established industries
RIVER OAK DISCOVERY FUND will invest primarily in equity securities of small
companies with equity market capitalizations less than $3 billion.
Portfolio Management Team:
ROBERT D. STIMPSON, CFA
BRANDI K. ALLEN
TO LEARN MORE OR INVEST TODAY, VISIT OAKFUNDS.COM.
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Mutual fund investing involves risk, including loss of principal. In addition to
the normal risks associated with investing, investments in smaller companies
typically exhibit higher volatility. The River Oak Discovery Fund is distributed
by SEI Investments Distribution Co., which is not affiliated with Oak
Associates, Ltd. or any other affiliate.
To determine if this Fund is an appropriate investment for you, carefully
consider the Fund's investment objectives, risk factors, charges and expenses
before investing. This and other information can be found in the Fund's
prospectus, which may be obtained by calling 1-888-462-5386 or by visiting our
website at www.oakfunds.com. Please read the prospectus carefully before
investing.
- --------------------------------------------------------------------------------
1
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED APRIL 30, 2005
(UNAUDITED) AND YEARS OR PERIODS ENDED OCTOBER 31,
REALIZED AND NET
NET ASSET NET UNREALIZED DISTRIBUTIONS ASSET
VALUE INVESTMENT GAINS OR TOTAL FROM VALUE
BEGINNING INCOME (LOSSES) ON FROM CAPITAL END OF
OF PERIOD (LOSS) SECURITIES OPERATIONS GAINS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
WHITE OAK SELECT GROWTH FUND
2005* $ 31.41 $ 0.06# $ (2.65) $ (2.59) $ -- $ 28.82
2004 34.05 (0.19) (2.45) (2.64) -- 31.41
2003 23.22 (0.10) 10.93 10.83 -- 34.05
2002 34.54 (0.12) (11.20) (11.32) -- 23.22
2001 77.05 (0.15) (42.08) (42.23) (0.28) 34.54
2000 53.28 (0.19) 23.96 23.77 -- 77.05
PIN OAK AGGRESSIVE STOCK FUND
2005* $19.02 $(0.08)# $ (0.23) $ (0.31) $ -- $18.71
2004 19.13 (0.17) 0.06 (0.11) -- 19.02
2003 11.63 (0.12) 7.62 7.50 -- 19.13
2002 21.61 (0.20) (9.78) (9.98) -- 11.63
2001 69.45 (0.32) (47.27) (47.59) (0.25) 21.61
2000 41.85 (0.20) 29.33 29.13 (1.53) 69.45
ROCK OAK CORE GROWTH FUND
2005(1)* $10.00 $(0.02)# $ (0.85) $ (0.87) $ -- $ 9.13
RED OAK TECHNOLOGY SELECT FUND
2005* $ 6.30 $ --# $ (0.33) $ (0.33) $ -- $ 5.97
2004 6.56 (0.08) (0.18) (0.26) -- 6.30
2003 4.23 (0.05) 2.38 2.33 -- 6.56
2002 8.45 (0.08) (4.14) (4.22) -- 4.23
2001 33.85 (0.14) (25.26) (25.40) -- 8.45
2000 16.94 (0.13) 17.04 16.91 -- 33.85
BLACK OAK EMERGING TECHNOLOGY FUND
2005* $ 2.08 $(0.01)# $ (0.12) $ (0.13) $ -- $ 1.95
2004 2.21 (0.03) (0.10) (0.13) -- 2.08
2003 1.23 (0.02) 1.00 0.98 -- 2.21
2002 2.98 (0.02) (1.73) (1.75) -- 1.23
2001(2) 10.00 (0.02) (7.00) (7.02) -- 2.98
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
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<page>
RATIO OF
EXPENSES
RATIO OF TO AVERAGE
RATIO OF EXPENSES NET ASSETS
NET TO AVERAGE (EXCLUDING WAIVER,
NET ASSETS RATIO OF INVESTMENT NET ASSETS REIMBURSEMENT
END OF EXPENSES INCOME (LOSS) (EXCLUDING AND/OR PORTFOLIO
TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER
RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
WHITE OAK SELECT GROWTH FUND
2005* (8.25)% $1,051,335 1.10% 0.37% 1.10% 1.10% 26.02%
2004 (7.75) 1,569,899 1.07 (0.47) 1.07 1.07 15.83
2003 46.64 2,136,891 1.07 (0.36) 1.08 1.11 4.28
2002 (32.77) 1,593,995 1.00 (0.32) 1.01 1.01 10.76
2001 (54.99) 3,188,358 0.95 (0.31) 0.95 0.95 15.44
2000 44.61 6,219,080 0.96 (0.38) 0.96 0.96 13.86
PIN OAK AGGRESSIVE STOCK FUND
2005* (1.63)% $ 153,505 1.15% (0.83)% 1.15% 1.19% 20.24%
2004 (0.58) 190,839 1.15 (0.80) 1.15 1.17 21.10
2003 64.49 233,503 1.11 (0.83) 1.12 1.23 21.67
2002 (46.18) 143,775 1.00 (0.87) 1.09 1.09 17.68
2001 (68.75) 363,083 0.99 (0.82) 0.99 0.99 20.91
2000 71.36 1,219,288 1.00 (0.59) 1.02 1.02 13.16
ROCK OAK CORE GROWTH FUND
2005(1)* (8.70)% $ 9,629 1.15% (0.58)% 1.15% 2.04% 9.96%
RED OAK TECHNOLOGY SELECT FUND
2005* (5.24)% $ 181,250 1.15% (0.12)% 1.15% 1.23% 26.07%
2004 (3.96) 244,848 1.15 (1.01) 1.15 1.20 38.44
2003 55.08 327,853 1.11 (0.98) 1.11 1.24 60.35
2002 (49.94) 217,390 1.00 (0.97) 1.10 1.10 47.80
2001 (75.04) 531,663 0.98 (0.84) 0.98 0.98 53.98
2000 99.82 2,220,110 0.99 (0.79) 1.01 1.01 40.13
BLACK OAK EMERGING TECHNOLOGY FUND
2005* (6.25)% $ 56,225 1.15% (1.13)% 1.15% 1.36% 20.70%
2004 (5.88) 72,093 1.15 (1.14) 1.15 1.33 33.71
2003 79.67 86,414 1.11 (1.08) 1.11 1.50 33.62
2002 (58.72) 40,583 1.00 (0.86) 1.20 1.20 57.15
2001(2) (70.20)+ 104,191 1.00 (0.52) 1.12 1.12 5.99
3
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Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED APRIL 30, 2005
(UNAUDITED) AND YEARS OR PERIODS ENDED OCTOBER 31,
REALIZED AND NET
NET ASSET UNREALIZED DISTRIBUTIONS ASSET
VALUE NET GAINS OR TOTAL FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON FROM CAPITAL END OF
OF PERIOD LOSS SECURITIES OPERATIONS GAINS PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
LIVE OAK HEALTH SCIENCES FUND
2005* $ 9.44 $(0.04)# $ 1.03 $ 0.99 $ -- $10.43
2004 9.24 (0.07) 0.27 0.20 -- 9.44
2003 7.83 (0.05) 1.46 1.41 -- 9.24
2002 10.24 (0.05) (2.36) (2.41) -- 7.83
2001(3) 10.00 (0.01) 0.25 0.24 -- 10.24
* FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005. ALL RATIOS FOR THE PERIOD
HAVE BEEN ANNUALIZED.
# PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES FOR THE PERIOD.
+ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FIGURES
DO NOT REFLECT THE DEDUCTION OF TAXES THE SHAREHOLDER WILL PAY ON FUND
DISTRIBUTIONS OR REDEMPTION OF FUND SHARES.
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004. ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) THE BLACK OAK EMERGING TECHNOLOGY FUND COMMENCED OPERATIONS ON DECEMBER 29,
2000. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(3) 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
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RATIO OF
RATIO OF EXPENSES
RATIO OF EXPENSES TO AVERAGE
NET TO AVERAGE NET ASSETS
NET ASSETS RATIO OF INVESTMENT NET ASSETS (EXCLUDING WAIVER,
END OF EXPENSES LOSS (EXCLUDING AND/OR PORTFOLIO
TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER
RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
LIVE OAK HEALTH SCIENCES FUND
2005* 10.49% $25,887 1.15% (0.72)% 1.15% 1.22% 2.98%
2004 2.16 26,226 1.15 (0.75) 1.15 1.19 4.05
2003 18.01 22,520 1.10 (0.66) 1.10 1.28 12.55
2002 (23.54) 18,686 1.00 (0.56) 1.18 1.18 31.00
2001(3) 2.40+ 21,134 1.00 (0.49) 1.23 1.23 --
5
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Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
White Oak Select Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Pharmaceutical Preparations 11.1%
Computer Communications Equipment 10.5%
Semiconductors & Related Devices 7.5%
Security Brokers, Dealers & Flotation Companies 6.5%
Services - Prepackaged Software 6.0%
Data Storage 6.0%
Semiconductor Capital Equipment 5.6%
E-Commerce - Services 5.3%
Services - Allied to Motion Picture Production 5.4%
Commercial Banks 4.8%
Electromedical & Electrotherapeutic Apparatus 4.9%
Electronic Computers 4.7%
Short-Term Business Credit Institutions 4.5%
Motor Vehicle Parts & Accessories 4.2%
Machinery - Construction & Mining 3.9%
Services - Tracking Courier 3.4%
Services - Commercial Physical & Biological Research 1.8%
Services - Computer Programming Services 1.5%
Computer Peripheral 1.4%
Repurchase Agreement 0.6%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of 0.4%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.0%
COMMERCIAL BANKS-- 4.8%
Citigroup 1,080,000 $ 50,717
---------
50,717
---------
COMPUTER COMMUNICATIONS EQUIPMENT -- 10.5%
Cisco Systems* 3,470,000 59,962
Juniper Networks* 2,225,000 50,263
---------
110,225
---------
COMPUTER PERIPHERAL-- 1.4%
Symbol Technologies 1,065,000 14,239
---------
14,239
---------
DATA STORAGE-- 6.0%
EMC* 4,800,000 62,976
---------
62,976
---------
E-COMMERCE - SERVICES-- 5.3%
eBay* 1,770,000 56,162
---------
56,162
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 4.9%
Medtronic 970,000 $ 51,119
---------
51,119
---------
ELECTRONIC COMPUTERS-- 4.7%
Dell Computer* 1,425,000 49,633
---------
49,633
---------
MACHINERY - CONSTRUCTION & MINING -- 3.9%
Caterpillar 460,000 40,503
---------
40,503
---------
MOTOR VEHICLE PARTS & ACCESSORIES-- 4.2%
Rockwell Automation 950,000 43,918
---------
43,918
---------
PHARMACEUTICAL PREPARATIONS-- 11.1%
Amgen* 872,000 50,759
Pfizer 2,445,000 66,431
---------
117,190
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White Oak Select Growth Fund (CONTINUED)
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MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 6.5%
Charles Schwab 6,575,000 $ 68,051
------------
68,051
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-- 5.6%
Applied Materials* 3,950,000 58,736
------------
58,736
------------
SEMICONDUCTORS & RELATED DEVICES-- 7.5%
Linear Technology 1,700,000 60,758
Maxim Integrated
Products 485,000 18,139
------------
78,897
------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 5.4%
Avid Technology* 280,000 13,863
Harmon International 170,000 13,359
Qualcomm 845,000 29,482
------------
56,704
------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 1.8%
Affymetrix* 415,000 19,136
------------
19,136
------------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 1.5%
Cognizant Technology
Solutions* 380,000 15,964
------------
15,964
------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - PREPACKAGED SOFTWARE-- 6.0%
Electronic Arts* 760,000 $ 40,576
Symantec* 1,225,000 23,005
------------
63,581
------------
SERVICES - TRACKING COURIER-- 3.4%
United Parcel Service,
Cl B 500,000 35,655
------------
35,655
------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS-- 4.5%
MBNA 2,400,000 47,400
------------
47,400
------------
TOTAL COMMON STOCK
(Cost $965,359)(000) 1,040,806
------------
REPURCHASE AGREEMENT-- 0.6%
Morgan Stanley (A)
2.000%, dated 04/29/05, to be
repurchased on 05/02/05, repurchase
price $6,310,759 (collateralized
by a U.S. Treasury Note, 3.625%,
01/15/28, total market
value: $6,437,098) $6,311 6,311
------------
TOTAL REPURCHASE AGREEMENT
(Cost $6,311)(000) 6,311
------------
TOTAL INVESTMENTS-- 99.6%
(Cost $971,670)(000) 1,047,117
------------
OTHER ASSETS AND LIABILITIES -- 0.4%
Payable for Capital Shares
Redeemed (2,348)
Investment Advisory Fees Payable (596)
Administration Fees Payable (36)
Other Assets and Liabilities, Net 7,198
------------
4,218
------------
Net Assets-- 100.0% $ 1,051,335
============
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White Oak Select Growth Fund (CONCLUDED)
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VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 36,479,978 outstanding
shares of beneficial interest $ 3,726,736
Undistributed net investment income 2,514
Accumulated net realized loss
on investments (2,753,362)
Net unrealized appreciation on
investments 75,447
------------
NET ASSETS $ 1,051,335
============
Net Asset Value, Offering and Redemption
Price Per Share $28.82
=======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
8
Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
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Pin Oak Aggressive Stock Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Semiconductors & Related Devices 13.4%
Web Portals/ISP 12.7%
Computer Communications Equipment 11.2%
E-Commerce - Services 10.3%
Security Brokers, Dealers & Flotation Companies 6.9%
Services - Computer Programming Services 6.4%
Services - Allied to Motion Picture Production 6.1%
Services - Prepackaged Software 4.8%
Services - Commercial Physical & Biological Research 4.8%
Motor Vehicle Parts & Accessories 4.8%
Computer Peripheral 4.4%
Short-Term Business Credit Institutions 4.2%
Retail - Jewelry Stores 3.4%
Semiconductor Capital Equipment 2.9%
Building - Residential/Commercial 2.5%
Repurchase Agreement 1.5%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of (0.3)%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.8%
BUILDING - RESIDENTIAL/COMMERCIAL-- 2.5%
Toll Brothers* 50,000 $ 3,790
------------
3,790
------------
COMPUTER COMMUNICATIONS EQUIPMENT-- 11.2%
Cisco Systems* 565,000 9,763
Juniper Networks* 330,000 7,455
------------
17,218
------------
COMPUTER PERIPHERAL-- 4.4%
Symbol Technologies 510,000 6,819
------------
6,819
------------
E-COMMERCE - SERVICES-- 10.3%
Amazon.com* 200,000 6,472
eBay* 295,000 9,360
------------
15,832
------------
MOTOR VEHICLE PARTS & ACCESSORIES-- 4.8%
Rockwell Automation 160,000 7,397
------------
7,397
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL - JEWELRY STORES-- 3.4%
Tiffany 175,000 $ 5,276
------------
5,276
------------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 6.9%
Charles Schwab 1,015,000 10,505
------------
10,505
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-- 2.9%
Applied Materials* 300,000 4,461
------------
4,461
------------
SEMICONDUCTORS & RELATED DEVICES-- 13.4%
Linear Technology 210,000 7,505
Maxim Integrated
Products 195,000 7,293
Xilinx 215,000 5,792
------------
20,590
------------
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Pin Oak Aggressive Stock Fund (CONCLUDED)
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SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 6.1%
Avid Technology* 188,000 $ 9,308
------------
9,308
------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 4.8%
Affymetrix* 160,000 7,378
------------
7,378
------------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 6.4%
Cognizant Technology
Solutions* 235,000 9,872
------------
9,872
------------
SERVICES - PREPACKAGED SOFTWARE-- 4.8%
Cerner* 126,000 7,316
------------
7,316
------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS-- 4.2%
MBNA 325,000 6,419
------------
6,419
------------
WEB PORTALS/ISP-- 12.7%
Google* 37,000 8,140
Yahoo!* 330,000 11,388
------------
19,528
------------
TOTAL COMMON STOCK
(Cost $125,615)(000) 151,709
------------
REPURCHASE AGREEMENT-- 1.5%
Morgan Stanley (A)
2.000%, dated 04/29/05, to be
repurchased on 05/02/05, repurchase
price $2,295,971 (collateralized
by a U.S. Treasury Note, 3.625%,
01/15/28, total market
value: $2,341,997) $2,296 2,296
------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,296)(000) $ 2,296
------------
TOTAL INVESTMENTS-- 100.3%
(Cost $127,911)(000) 154,005
------------
OTHER ASSETS AND LIABILITIES -- (0.3)%
Payable for Investment Securities
Purchased (5,239)
Payable for Capital Shares
Redeemed (311)
Investment Advisory Fees Payable (86)
Administration Fees Payable (5)
Other Assets and Liabilities, Net 5,141
------------
(500)
------------
Net Assets-- 100.0% $ 153,505
============
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 8,202,843 outstanding
shares of beneficial interest $ 996,969
Accumulated net investment loss (751)
Accumulated net realized loss
on investments (868,807)
Net unrealized appreciation
on investments 26,094
------------
NET ASSETS $ 153,505
============
Net Asset Value, Offering and Redemption
Price Per Share $18.71
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT THE
ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
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10
Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Services - Allied to Motion Picture Production 8.6%
Petroleum Products 8.2%
Commercial Banks 6.3%
Repurchase Agreement 5.3%
Building - Residential/Commercial 5.3%
Services - Computer Programming Services 5.0%
Services - Commercial Physical & Biological Research 4.7%
Services - Transport 4.2%
Security Brokers, Dealers & Flotation Companies 3.6%
Services - Prepackaged Software 3.3%
Web Portals/ISP 3.1%
Retail - Restaurants 3.0%
Retail - Building Products 2.9%
E-Commerce - Services 2.9%
Computer Communications Equipment 2.9%
Radio Broadcasting Stations 2.7%
Apparel Manufacturers 2.6%
Electronic Computers 2.6%
Biological Products 2.2%
Data Storage 2.3%
Machinery - Construction & Mining 2.3%
Motor Vehicle Parts & Accessories 2.1%
Analytical Instruments 2.0%
Search, Detection, Navigation, Guidance, Aeronautical Systems 1.9%
Computer Peripheral 1.7%
Semiconductor Capital Equipment 1.7%
Surgical & Medical Instruments & Apparatus 1.7%
Universities/Colleges 1.6%
Services - Tracking Courier 1.5%
Pharmaceutical Preparations 1.0%
Semiconductors & Related Devices 0.9%
Short-Term Business Credit Institutions 0.7%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of (0.8)%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.5%
ANALYTICAL INSTRUMENTS-- 2.0%
Thermo Electron* 7,900 $ 197
------------
197
------------
APPAREL MANUFACTURERS-- 2.6%
Coach* 9,400 252
------------
252
------------
BIOLOGICAL PRODUCTS-- 2.2%
Amgen* 3,600 210
------------
210
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BUILDING - RESIDENTIAL/COMMERCIAL-- 5.3%
Ryland Group 4,400 $ 270
Toll Brothers* 3,200 243
------------
513
------------
COMMERCIAL BANKS-- 6.3%
Citigroup 1,600 75
East West Bancorp 5,700 183
Silicon Valley
Bancshares* 7,400 351
------------
609
------------
COMPUTER COMMUNICATIONS EQUIPMENT-- 2.9%
Cisco Systems* 9,000 156
Juniper Networks* 5,300 120
------------
276
------------
11
www.oakfunds.com
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER PERIPHERAL-- 1.7%
Symbol Technologies 12,600 $ 168
------------
168
------------
DATA STORAGE-- 2.3%
EMC* 16,500 217
------------
217
------------
E-COMMERCE - SERVICES-- 2.9%
eBay* 8,700 276
------------
276
------------
ELECTRONIC COMPUTERS-- 2.6%
Dell Computer* 7,100 247
------------
247
------------
MACHINERY - CONSTRUCTION & MINING-- 2.3%
Caterpillar 800 71
Joy Global 4,350 147
------------
218
------------
MOTOR VEHICLE PARTS & ACCESSORIES-- 2.1%
Rockwell Automation 4,400 203
------------
203
------------
PETROLEUM PRODUCTS-- 8.2%
Headwaters* 10,000 320
Schlumberger 4,100 280
Ultra Petroleum* 2,400 121
XTO Energy 2,133 64
------------
785
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
PHARMACEUTICAL PREPARATIONS -- 1.0%
Teva Pharmaceutical
Industries ADR 3,200 $ 100
------------
100
------------
RADIO BROADCASTING STATIONS-- 2.7%
XM Satellite Radio,
Cl A* 9,500 264
------------
264
------------
RETAIL - BUILDING PRODUCTS-- 2.9%
Lowe's 5,400 281
------------
281
------------
RETAIL - RESTAURANTS-- 3.0%
Starbucks* 5,900 292
------------
292
------------
SEARCH, DETECTION, NAVIGATION, GUIDANCE,
AERONAUTICAL SYSTEMS -- 1.9%
Navteq* 5,000 182
------------
182
------------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 3.6%
Goldman Sachs 3,200 342
------------
342
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-- 1.7%
Applied Materials* 11,100 165
------------
165
------------
1-888-462-5386
12
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES-- 0.9%
Maxim Integrated
Products 2,400 $ 90
------------
90
------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 8.6%
Avid Technology* 8,500 421
Qualcomm 11,600 405
------------
826
------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 4.7%
Affymetrix* 5,600 258
Charles River Labs* 4,000 190
------------
448
------------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 5.0%
Cognizant Technology
Solutions* 11,500 483
------------
483
------------
SERVICES - PREPACKAGED SOFTWARE-- 3.3%
Electronic Arts* 4,600 246
Symantec* 4,000 75
------------
321
------------
SERVICES - TRACKING COURIER-- 1.6%
United Parcel Service,
Cl B 2,200 157
------------
157
------------
SERVICES - TRANSPORT-- 4.2%
Expeditors International 6,300 309
Omi 5,300 96
------------
405
------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS-- 0.7%
MBNA 3,400 $ 67
------------
67
------------
SURGICAL & MEDICAL INSTRUMENTS &
APPARATUS -- 1.7%
Given Imaging* 6,000 161
------------
161
------------
UNIVERSITIES/COLLEGES-- 1.5%
Apollo Group, Cl A* 2,000 144
------------
144
------------
WEB PORTALS/ISP-- 3.1%
Yahoo!* 8,700 300
------------
300
------------
TOTAL COMMON STOCK
(Cost $9,976)(000) 9,199
------------
REPURCHASE AGREEMENT-- 5.3%
Morgan Stanley (A)
2.000%, dated 04/29/05,
to be repurchased on 05/02/05,
repurchase price $513,088
(collateralized by a U.S.
Treasury Note, 3.625%,
01/15/28, total market
value: $523,360) $513 513
------------
TOTAL REPURCHASE AGREEMENT
(Cost $513)(000) 513
------------
TOTAL INVESTMENTS-- 100.8%
(Cost $10,489)(000) 9,712
------------
13
www.oakfunds.com
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- (0.8)%
Payable for Investment Securities
Purchased $ (169)
Payable for Capital Shares
Redeemed (10)
Investment Advisory Fees Payable (2)
Other Assets and Liabilities 98
------------
(83)
------------
Net Assets-- 100.0% $ 9,629
============
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par
value) based on 1,054,925
outstanding shares of
beneficial interest $ 10,389
Accumulated net investment loss (14)
Accumulated net realized gain
on investments 31
Net unrealized depreciation
on investments (777)
------------
NET ASSETS $ 9,629
============
Net Asset Value, Offering and
Redemption Price Per Share $9.13
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
14
Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Services - Computer Programming Services 11.9%
Semiconductors & Related Devices 11.5%
Services - Allied to Motion Picture Production 10.6%
Computer Peripheral 10.2%
Services - Prepackaged Software 10.0%
Computer Communications Equipment 9.5%
E-Commerce - Services 7.5%
Services - Commercial Physical & Biological Research 6.1%
Search, Detection, Navigation, Guidance, Aeronautical Systems 5.9%
Data Storage 5.8%
Web Portals/ISP 5.4%
Universities/Colleges 4.6%
Repurchase Agreement 0.4%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of 0.6%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.0%
COMPUTER COMMUNICATIONS
EQUIPMENT -- 9.5%
Cisco Systems* 379,900 $ 6,565
Juniper Networks* 470,840 10,636
------------
17,201
------------
COMPUTER PERIPHERAL-- 10.2%
Symbol Technologies 775,000 10,362
Zebra Technologies,
Cl A* 168,700 8,057
------------
18,419
------------
DATA STORAGE-- 5.8%
EMC* 797,200 10,459
------------
10,459
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
E-COMMERCE - SERVICES-- 7.5%
Amazon.com* 235,000 $ 7,605
eBay* 191,200 6,067
------------
13,672
------------
SEARCH, DETECTION, NAVIGATION, GUIDANCE,
AERONAUTICAL SYSTEMS -- 5.9%
Navteq* 294,000 10,707
------------
10,707
------------
SEMICONDUCTORS & RELATED DEVICES-- 11.5%
Formfactor* 295,000 6,738
Marvell Technology* 244,000 8,169
Maxim Integrated
Products 160,600 6,006
------------
20,913
------------
15
www.oakfunds.com
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION-- 10.6%
Harmon International 91,000 $ 7,151
Qualcomm 345,800 12,065
------------
19,216
------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 6.1%
Affymetrix* 123,000 5,672
Cognex 247,000 5,394
------------
11,066
------------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 11.9%
Cogent* 220,000 4,950
Cognizant Technology
Solutions* 254,600 10,696
Macromedia* 150,000 5,942
------------
21,588
------------
SERVICES - PREPACKAGED SOFTWARE-- 10.0%
Electronic Arts* 162,000 8,649
Pixar* 206,000 9,422
------------
18,071
------------
UNIVERSITIES/COLLEGES-- 4.6%
Apollo Group, Cl A* 114,404 8,251
------------
8,251
------------
WEB PORTALS/ISP-- 5.4%
Google, Cl A* 44,500 9,790
------------
9,790
------------
TOTAL COMMON STOCK
(Cost $149,540)(000) 179,353
------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT-- 0.4%
Morgan Stanley (A)
2.000%, dated 04/29/05, to be
repurchased on 05/02/05, repurchase
price $685,983 (collateralized
by a U.S. Treasury Note, 3.625%,
01/15/28, total market
value: $699,716) $686 $ 686
------------
TOTAL REPURCHASE AGREEMENT
(Cost $686)(000) 686
------------
TOTAL INVESTMENTS-- 99.4%
(Cost $150,226)(000) 180,039
------------
OTHER ASSETS AND LIABILITIES-- 0.6%
Investment Advisory Fees Payable (92)
Payable for Capital Shares
Redeemed (99)
Administration Fees Payable (6)
Other Assets and Liabilities, Net 1,408
------------
1,211
------------
Net Assets-- 100.0% $ 181,250
============
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par value)
based on 30,346,976 outstanding
shares of beneficial interest $ 1,862,033
Accumulated net investment loss (132)
Accumulated net realized loss
on investments (1,710,464)
Net unrealized appreciation
on investments 29,813
------------
NET ASSETS $ 181,250
============
Net Asset Value, Offering and Redemption
Price Per Share $5.97
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
16
Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Semiconductors & Related Devices 20.1%
Services - Prepackaged Software 18.5%
Services - Computer Programming Services 10.9%
Industrial Instruments for Measurement, Display & Control 6.9%
E-Commerce - Services 6.6%
Search, Detection, Navigation, Guidance, Aeronautical Systems 6.4%
Services - Commercial Physical & Biological Research 5.8%
Services - Allied to Motion Picture Production 5.6%
Radio Broadcasting Stations 3.3%
Services - Computer Integrated Systems Design 3.1%
Chemicals 2.9%
Surgical & Medical Instruments & Apparatus 2.4%
Testing Labs 2.0%
Semiconductor Capital Equipment 1.7%
Services - Business Services 1.6%
Repurchase Agreement 1.2%
Lighting Products & Systems 1.0%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of 0.0%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.8%
- --------------------------------------------------------------------------------
CHEMICALS -- 2.9%
Symyx Technologies* 67,300 $ 1,640
------------
1,640
------------
E-COMMERCE - SERVICES-- 6.6%
Audible* 150,900 1,935
eBay* 55,800 1,771
------------
3,706
------------
INDUSTRIAL INSTRUMENTS FOR MEASUREMENT,
DISPLAY & CONTROL -- 6.9%
Flir Systems* 88,900 2,365
Photon Dynamics* 79,100 1,531
------------
3,896
------------
LIGHTING PRODUCTS & SYSTEMS-- 1.0%
Color Kinetics* 57,200 573
------------
573
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RADIO BROADCASTING STATIONS-- 3.3%
XM Satellite Radio,
Cl A* 66,500 $ 1,845
------------
1,845
------------
SEARCH, DETECTION, NAVIGATION, GUIDANCE,
AERONAUTICAL SYSTEMS -- 6.4%
Navteq* 99,000 3,606
------------
3,606
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-- 1.7%
Rudolph Technologies* 74,300 958
------------
958
------------
SEMICONDUCTORS & RELATED DEVICES-- 20.1%
Cree* 114,400 2,767
DSP Group* 130,300 3,140
Marvell Technology
Group* 132,000 4,419
Skyworks Solutions* 190,000 996
------------
11,322
------------
17
www.oakfunds.com
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION
PICTURE PRODUCTION -- 5.6%
Avid Technology* 63,900 $ 3,164
------------
3,164
------------
SERVICES - BUSINESS SERVICES-- 1.6%
Lionbridge
Technologies* 214,000 909
------------
909
------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 5.8%
Affymetrix* 70,000 3,228
------------
3,228
------------
SERVICES - COMPUTER INTEGRATED
SYSTEMS DESIGN -- 3.1%
Electronic Arts* 32,500 1,735
------------
1,735
------------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 10.9%
Cogent* 75,000 1,687
Cognizant Technology
Solutions* 105,000 4,411
------------
6,098
------------
SERVICES - PREPACKAGED SOFTWARE-- 18.5%
Macrovision* 105,000 2,147
Packeteer* 229,200 2,677
Ultimate Software* 200,500 3,108
Verint Systems* 77,600 2,469
------------
10,401
------------
SHARES/FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SURGICAL & MEDICAL INSTRUMENTS &
APPARATUS -- 2.4%
Given Imaging Ltd.* 50,000 $ 1,338
------------
1,338
------------
TESTING LABS-- 2.0%
eResearch Technology* 100,000 1,136
------------
1,136
------------
TOTAL COMMON STOCK
(Cost $43,243)(000) 55,555
------------
REPURCHASE AGREEMENT-- 1.2%
Morgan Stanley (A)
2.000%, dated 04/29/05,
to be repurchased on
05/02/05, repurchase
price $643,331 (collateralized
by a U.S. Treasury Note,
3.625%, 01/15/28, total
market value: $656,210) $643 643
------------
TOTAL REPURCHASE AGREEMENT
(Cost $643)(000) 643
------------
TOTAL INVESTMENTS-- 100.0%
(Cost $43,886)(000) 56,198
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.0%
Payable for Capital Shares
Redeemed (42)
Investment Advisory Fees Payable (24)
Administration Fees Payable (2)
Other Assets and Liabilities 95
------------
27
------------
Net Assets-- 100.0% $ 56,225
============
1-888-462-5386
18
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par
value) based on 28,829,455
outstanding shares of
beneficial interest $ 342,578
Accumulated net investment loss (395)
Accumulated net realized loss
on investments (298,270)
Net unrealized appreciation
on investments 12,312
------------
NET ASSETS $ 56,225
============
Net Asset Value, Offering and Redemption
Price Per Share $1.95
=====
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
19
www.oakfunds.com
Statement of Net Assets
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
Biological Products 22.5%
Pharmaceutical Preparations 17.0%
Services - Commercial Physical & Biological Research 15.8%
Electromedical & Electrotherapeutic Apparatus 9.5%
Laboratory Analytical Instruments 9.4%
Wholesale - Drugs, Proprietaries & Druggists' Sundries 5.8%
Surgical & Medical Instruments & Apparatus 5.0%
Services - Prepackaged Software 4.9%
Services - Home Health Care Services 3.7%
Repurchase Agreement 2.6%
Semiconductors & Related Devices 1.8%
In Vitro & In Vivo Diagnostic Substances 1.4%
+ Percentages are based on net assets. Included in net assets are Other Assets
and Liabilities of 0.6%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.8%
- - BIOLOGICAL PRODUCTS-- 22.5%
Amgen* 21,700 $ 1,263
Genentech* 12,000 851
Invitrogen* 29,000 2,125
Medimmune* 55,800 1,416
Rigel Pharmaceuticals* 10,100 173
------------
5,828
------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 9.5%
Corcept Therapeutics* 93,100 441
Medtronic 38,200 2,013
------------
2,454
------------
IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES-- 1.4%
Epix Medical* 54,013 366
------------
366
------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LABORATORY ANALYTICAL INSTRUMENTS -- 9.4%
Applied Biosystems
Group - Applera 60,100 $ 1,274
Bruker BioSciences* 81,100 264
Waters* 22,500 892
------------
2,430
------------
PHARMACEUTICAL PREPARATIONS-- 17.0%
Eli Lilly 8,900 520
Johnson & Johnson 7,200 494
Medicis Pharmaceutical,
Cl A 27,000 759
Pfizer 46,400 1,261
Teva Pharmaceutical
Industries ADR 44,200 1,381
------------
4,415
------------
SEMICONDUCTORS & RELATED DEVICES-- 1.8%
Caliper Technologies* 81,000 469
------------
469
------------
1-888-462-5386
20
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund (CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 15.8%
Affymetrix* 88,600 $ 4,085
------------
4,085
------------
SERVICES - HOME HEALTH
CARE SERVICES -- 3.7%
Express Scripts* 10,800 968
------------
968
------------
SERVICES - PREPACKAGED SOFTWARE-- 4.9%
Cerner* 21,900 1,272
------------
1,272
------------
SURGICAL & MEDICAL INSTRUMENTS &
APPARATUS -- 5.0%
Techne* 30,700 1,283
------------
1,283
------------
WHOLESALE - DRUGS, PROPRIETARIES &
DRUGGISTS' SUNDRIES -- 5.8%
AmerisourceBergen 24,300 1,489
------------
1,489
------------
TOTAL COMMON STOCK
(Cost $21,138)(000) 25,059
------------
REPURCHASE AGREEMENT-- 2.6%
Morgan Stanley (A)
2.000%, dated 04/29/05,
to be repurchased on
05/02/05, repurchase price
$663,191 (collateralized
by a U.S. Treasury Note,
3.625%, 01/15/28, total
market value:
$676,458) $663 $ 663
------------
VALUE (000)
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $663)(000) $ 663
------------
TOTAL INVESTMENTS-- 99.4%
(Cost $21,801)(000) 25,722
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.6%
Payable for Investment Securities
Purchased (29)
Investment Advisory Fees Payable (13)
Payable for Capital Shares
Redeemed (12)
Administration Fees Payable (1)
Other Assets and Liabilities 220
------------
165
------------
Net Assets-- 100.0% $ 25,887
============
NET ASSETS:
Portfolio Shares (unlimited
authorization-- no par
value) based on 2,482,966
outstanding shares of
beneficial interest $ 24,985
Accumulated net investment loss (93)
Accumulated net realized loss
on investments (2,926)
Net unrealized appreciation
on investments 3,921
------------
NET ASSETS $ 25,887
============
Net Asset Value, Offering and
Redemption Price Per Share $10.43
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
21
www.oakfunds.com
Statements of Operations (000)
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2005 (UNAUDITED)
WHITE OAK PIN OAK
SELECT GROWTH AGGRESSIVE STOCK
FUND FUND
- ----------------------------------------------------------------------------------------
Investment Income:
Dividends $ 9,931 $ 283
Interest 55 11
Less: Foreign Withholding Tax -- --
- ----------------------------------------------------------------------------------------
Total Investment Income 9,986 294
- ----------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 5,038 673
Administration Fees 272 36
Trustee Fees 46 6
Transfer Agent Fees 1,634 300
Printing Fees 232 34
Professional Fees 72 10
Registration Fees 49 6
Custodian Fees 37 5
Offering Fees -- --
Insurance and Other Fees 92 11
- ----------------------------------------------------------------------------------------
Total Expenses 7,472 1,081
- ----------------------------------------------------------------------------------------
Less: Investment Advisory
Fees Waived -- (36)
Reimbursement from Advisor -- --
- ----------------------------------------------------------------------------------------
Net Expenses 7,472 1,045
- ----------------------------------------------------------------------------------------
Net Investment Income (Loss) 2,514 (751)
- ----------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold (334,614) (19,777)
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities 247,784 20,152
- ----------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments (86,830) 375
- ----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting From Operations $ (84,316) $ (376)
========================================================================================
* THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE
ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
1-888-462-5386
ROCK OAK RED OAK BLACK OAK LIVE OAK
CORE GROWTH TECHNOLOGY SELECT EMERGING TECHNOLOGY HEALTH SCIENCES
FUND* FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 9 $ 1,140 $ -- $ 54
Interest 5 10 7 3
Less: Foreign Withholding Tax -- -- -- (1)
- -------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 14 1,150 7 56
- -------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 18 825 259 95
Administration Fees 1 45 14 5
Trustee Fees -- 7 2 1
Transfer Agent Fees 11 416 176 47
Printing Fees 2 40 13 5
Professional Fees 1 12 4 2
Registration Fees -- 7 2 1
Custodian Fees -- 8 2 1
Offering Fees 17 -- -- --
Insurance and Other Fees -- 13 4 2
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 50 1,373 476 159
- -------------------------------------------------------------------------------------------------------------------------------
Less: Investment Advisory
Fees Waived (18) (91) (74) (10)
Reimbursement from Advisor (4) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net Expenses 28 1,282 402 149
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (14) (132) (395) (93)
- -------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold 31 11,961 3,251 (21)
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities (777) (19,743) (5,820) 2,722
- -------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments (746) (7,782) (2,569) 2,701
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting From Operations $(760) $ (7,914) $(2,964) $2,608
===============================================================================================================================
23
www.oakfunds.com
<page>
Statements of Changes in Net Assets (000)
FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2005 (UNAUDITED) AND THE YEAR ENDED
OCTOBER 31, 2004
WHITE OAK PIN OAK
SELECT GROWTH AGGRESSIVE STOCK
FUND FUND
- ------------------------------------------------------------------------------------------------------
11/01/04 11/01/03 11/01/04 11/01/03
TO 04/30/05 TO 10/31/04 TO 04/30/05 TO 10/31/04
- ------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ........ $ 2,514 $ (9,379) $ (751) $ (1,733)
Net Realized Gain (Loss) on
Securities Sold .................. (334,614) (743,131) (19,777) (84,984)
Net Unrealized Appreciation (Depreciation)
of Investment Securities ......... 247,784 589,854 20,152 84,934
- ------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ........ (84,316) (162,656) (376) (1,783)
- ------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ....................... 42,751 386,344 8,539 42,583
Shares Redeemed ..................... (476,999) (790,680) (45,497) (83,464)
- ------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions .. (434,248) (404,336) (36,958) (40,881)
- ------------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets ........... (518,564) 566,992) (37,334) (42,664)
- ------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 1,569,899 2,136,891 190,839 233,503
- ------------------------------------------------------------------------------------------------------
End of Period ....................... $1,051,335 $1,569,899 $153,505 $ 190,839
======================================================================================================
Undistributed Net Investment Income
(Accumulated Net Investment Loss) ...... $ 2,514 $ -- $ (751) $ --
======================================================================================================
Shares Issued and Redeemed:
Issued .............................. 1,337 11,012 427 2,151
Redeemed ............................ (14,840) (23,781) (2,255) (4,328)
======================================================================================================
Net Increase (Decrease) in
Share Transactions ............ (13,503) (12,769) (1,828) (2,177)
======================================================================================================
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004.
AMOUNTS DESIGNATED AS"_" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE
ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
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<page>
ROCK OAK RED OAK
CORE GROWTH TECHNOLOGY
FUND SELECT FUND
- --------------------------------------------------------------------------------------------
12/31/04 11/01/04 11/01/03
TO 04/30/05(1) TO 04/30/05 TO 10/31/04
- --------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ........ $ (14) $ (132) $ (2,933)
Net Realized Gain (Loss) on
Securities Sold .................. 31 11,961 (34,196)
Net Unrealized Appreciation (Depreciation)
of Investment Securities ......... (777) (19,743) 25,982
- --------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ........ (760) (7,914) (11,147)
- --------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ....................... 10,702 6,304 38,199
Shares Redeemed ..................... (313) (61,988) (110,057)
- --------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions .. 10,389 (55,684) (71,858)
- --------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets ........... 9,629 (63,598) (83,005)
- --------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. -- 244,848 327,853
- --------------------------------------------------------------------------------------------
End of Period ....................... $ 9,629 $181,250 $244,848
============================================================================================
Undistributed Net Investment Income
(Accumulated Net Investment Loss) ...... $ (14) $ (132) $--
============================================================================================
Shares Issued and Redeemed:
Issued .............................. 1,088 947 5,746
Redeemed ............................ (33) (9,453) (16,848)
============================================================================================
Net Increase (Decrease) in
Share Transactions ............ 1,055 (8,506) (11,102)
============================================================================================
BLACK OAK LIVE OAK
EMERGING TECHNOLOGY HEALTH SCIENCES
FUND FUND
- -----------------------------------------------------------------------------------------------------
1/01/04 11/01/03 11/01/04 1/01/03
TO 04/30/05 TO 10/31/04 TO 04/30/05 TO 10/31/04
- -----------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ........ $ (395) $ (907) $ (93) $ (202)
Net Realized Gain (Loss) on
Securities Sold .................. 3,251 1,812 (21) (71)
Net Unrealized Appreciation (Depreciation)
of Investment Securities ......... (5,820) (6,665) 2,722 383
- -----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ........ (2,964) (5,760) 2,608 110
- -----------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ....................... 5,532 30,978 2,067 10,868
Shares Redeemed ..................... (18,436) (39,539) (5,014) (7,272)
- -----------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions .. (12,904) (8,561) (2,947) 3,596
- -----------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets ........... (15,868) (14,321) (339) 3,706
- -----------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................. 72,093 86,414 26,226 22,520
- -----------------------------------------------------------------------------------------------------
End of Period ....................... $56,225 $ 72,093 $25,887 $26,226
=====================================================================================================
Undistributed Net Investment Income
(Accumulated Net Investment Loss) ...... $ (395) $ -- $ (93) $ --
=====================================================================================================
Shares Issued and Redeemed:
Issued .............................. 2,469 14,366 205 1,080
Redeemed ............................ (8,300) (18,730) (500) (739)
=====================================================================================================
Net Increase (Decrease) in
Share Transactions ............ (5,831) (4,364) (295) 341
=====================================================================================================
25
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Notes to Financial Statements
APRIL 30, 2005 (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 six funds: White Oak Select Growth
Fund, Pin Oak Aggressive Stock Fund and Rock Oak Core Growth Fund (diversified
funds); Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and
Live Oak Health Sciences Fund (non-diversified funds) (collectively referred to
as "Funds" and individually referred to as a "Fund"). 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. Investments 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 prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Funds' Board of
Trustees. The Funds' Fair Value Procedures are implemented through a Fair
Value Committee (the "Committee") designated by the Funds' Board of Trustees.
Some of the more common reasons that may necessitate that a security be
valued using Fair Value Procedures include: the security's trading has been
halted or suspended; the security has been de-listed from a national
exchange; the security's primary
1-888-462-5386
26
trading market is temporarily closed at a time when under normal conditions
it would be open; the security has not been traded for an extended period of
time; the security's primary pricing source is not able or willing to provide
a price; or trading of the security is subject to local government-imposed
restrictions. When a security is valued in accordance with the Fair Value
Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
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.
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.
OFFERING FEES--Offering Fees, which include registration fees, typesetting
and prospectus printing, and preparation of the initial registration
statement will be amortized over a twelve-month period. Offering Fees for the
Rock Oak Core Growth Fund were $52,063. As of April 30, 2005, $35,403 remains
to be amortized.
REPURCHASE AGREEMENTS--The Funds invest in tri-party repurchase agreements.
Securities held as collateral for tri-party repurchase agreements are
maintained by the broker's custodian bank in a segregated account until
maturity of the repurchase agreement. 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.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--Dividends 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.
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.
27
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Notes to Financial Statements (continued)
APRIL 30, 2005 (UNAUDITED)
4. ADMINISTRATION, TRANSFER AGENT AND DISTRIBUTION AGREEMENTS:
- --------------------------------------------------------------------------------
The Trust and the Administrator are parties to an Administration Agreement dated
February 27, 1998, last amended February 16, 2004, under which the Administrator
provides management and administration services for an annual fee of 0.04% of
the average daily net assets of each of the Funds up to $2.5 billion, 0.03% on
the next $2.5 billion, 0.02% on the next $5 billion, and 0.015% of such assets
in excess of $10 billion. There is a minimum annual administration fee of
$475,000 for the trust.
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for
the Funds under an Agency Agreement with the Trust dated February 27, 1998. The
Funds pay amounts to third parties that provide sub-transfer agency and other
administration services relating to the Funds.
The Trust and the Distributor are parties to an Amended and restated
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 last 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. The Adviser has agreed to contractually 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 for a period of one year.
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 period ended April 30, 2005, were as follows
(000):
PURCHASES SALES
-------- ----
White Oak Select Growth Fund ... $349,844 $725,851
Pin Oak Aggressive Stock Fund .. 36,427 73,019
Rock Oak Core Growth Fund ...... 10,734 789
Red Oak Technology Select Fund . 57,690 113,782
Black Oak Emerging Technology
Fund ......................... 14,330 26,178
Live Oak Health Sciences Fund .. 761 3,940
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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 Subchapter M of 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 dividends from net investment
income and distributions from net realized capital gains exceed amounts reported
in the financial statements, such amounts are reported separately.
The amounts of dividends from net investment income and distributions from 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 nature. These differences are
primarily due to wash sales as well as net operating losses. The character of
dividends from net investment income or distributions from net realized gains
made during the year, and the timing of dividends and 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.
There were no dividends or distributions declared during the fiscal years ended
October 31, 2004 and October 31, 2003.
As of October 31, 2004, the components of accumulated losses on a tax basis were
as follows (000):
NET
CAPITAL UNREALIZED TOTAL
LOSS APPRECIATION ACCUMULATED
CARRYFORWARD (DEPRECIATION) LOSSES
------------ ------------- -----------
White Oak
Select Growth
Fund ............ $(2,412,900) $(178,185) $(2,591,085)
Pin Oak
Aggressive
Stock Fund ...... (844,099) 1,011 (843,088)
Red Oak
Technology
Select Fund ..... (1,722,424) 49,555 (1,672,869)
Black Oak
Emerging
Technology
Fund ............ (301,521) 18,132 (283,389)
Live Oak Health
Sciences
Fund ............ (2,905) 1,199 (1,706)
29
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Notes to Financial Statements (concluded)
APRIL 30, 2005 (UNAUDITED)
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At October 31, 2004, 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 2011 2012 TOTAL
----- ----- ----- ----- ----- ----- -----
White Oak Select Growth
Fund ........... $ -- $ -- $749,069 $712,973 $206,602 $744,256 $2,412,900
Pin Oak Aggressive
Stock Fund ..... -- -- 137,532 436,197 180,087 90,283 844,099
Red Oak Technology
Select Fund .... 1,366 56,063 610,821 726,266 293,675 34,233 1,722,424
Black Oak Emerging
Technology Fund -- -- 73,591 212,845 15,085 -- 301,521
Live Oak Health
Sciences Fund .. -- -- -- 2,834 -- 71 2,905
During the year ended October 31, 2004, the Black Oak Emerging Technology Fund
utilized $1,812,425 of capital loss carryforwards.
At April 30, 2005, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for securities
held by the Funds are as follows (000):
NET
FEDERAL AGGREGATE AGGREGATE UNREALIZED
TAX GROSS GROSS APPRECIATION/
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------- ------------ ------------ --------------
White Oak
Select Growth
Fund ........... $971,670 $ 219,522 $ (144,075) $75,447
Pin Oak
Aggressive
Stock Fund ..... 127,911 44,435 (18,341) 26,094
Rock Oak Core
Growth Fund .... 10,489 199 (976) (777)
Red Oak
Technology
Select Fund .... 150,362 42,309 (12,632) 29,677
Black Oak
Emerging
Technology
Fund ........... 43,886 18,516 (6,204) 12,312
Live Oak Health
Sciences Fund .. 21,801 7,098 (3,177) 3,921
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 developments in those
industries than a general equity fund would be.
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Disclosure of Fund Expenses (unaudited)
All mutual funds have operating expenses. As a shareholder of a fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, and shareholder reports
like this one. It is important for you to understand the impact of these costs
on your investment returns.
Operating expenses such as these are deducted from the fund's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the fund's average net assets; this percentage is known as the
fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table on the next page illustrates your Fund's costs in two ways:
o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses
after fee waivers that your Fund incurred over the period. The "Expenses Paid
During Period" column shows the actual dollar expense cost incurred by a $1,000
investment in the Fund, and the "Ending Account Value" number is derived from
deducting that expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = $8.6), then multiply that ratio by the number
shown for your Fund under "Expenses Paid During Period".
o HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with
those of other mutual funds. It assumes that the Fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your Fund's comparative cost by comparing the
hypothetical result for your Fund in the "Expense Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
funds.
31
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Disclosure of Fund Expenses (unaudited)
NOTE: Because the return is set at 5% for comparison purposes -- NOT your fund's
actual return -- the account values shown may not apply to your specific
investment.
- ------------------------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/31/04 04/30/05 RATIOS PERIOD*
- ------------------------------------------------------------------------------------------------
White Oak Select Growth Fund
- ------------------------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $ 917.50 1.10% $5.23
Hypothetical Fund Return 1,000.00 1,019.34 1.10 5.51
- ------------------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund
- ------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 983.70 1.15 5.66
Hypothetical Fund Return 1,000.00 1,019.09 1.15 5.76
- ------------------------------------------------------------------------------------------------
Rock Oak Core Growth Fund**
- ------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 913.00 1.15 3.65
Hypothetical Fund Return 1,000.00 1,012.76 1.15 3.84
- ------------------------------------------------------------------------------------------------
Red Oak Technology Select Fund
- ------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 947.60 1.15 5.55
Hypothetical Fund Return 1,000.00 1,019.09 1.15 5.76
- ------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- ------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 937.50 1.15 5.52
Hypothetical Fund Return 1,000.00 1,019.09 1.15 5.76
- ------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- ------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,104.90 1.15 6.00
Hypothetical Fund Return 1,000.00 1,019.09 1.15 5.76
- ------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
** Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 121/365 (to reflect the
period since the Fund's inception).
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32
Approval of Investment Advisory Agreements (unaudited)
BOARD CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT. The advisory agreement
between the Trust and the Adviser (the "Advisory Agreement") must be approved
for an initial term no greater than two years, and renewed at least annually
thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of
the Fund, and (ii) by the vote of a majority of the Trustees who are not parties
to the Advisory Agreement or "interested persons" of any party thereto (the
"Independent Trustees"), cast in person at a meeting called for the purpose of
voting on such approval. On February 21, 2005, the Trustees met in person to
decide whether to renew the Advisory Agreement with respect to each Fund for an
additional one-year term, effective March 1, 2005. In preparation for the
meeting, the Board requested and reviewed a wide variety of information from the
Adviser to assist in its deliberations (the "Adviser Materials"). The
Independent Trustees met with Jim Oelschlager prior to their February 21, 2005
meeting to discuss the renewal of the Advisory Agreement, and also discussed the
renewal in a separate meeting of the Independent Trustees. In addition, the
Trustees received information from other representatives of the Adviser at their
February 21, 2005 meeting.
Based on the Board's deliberations and its evaluation of the information
described above, the Board, including all of the independent Trustees,
unanimously voted to renew the Advisory Agreement for an additional one-year
term. In determining to approve the Agreement for the Portfolio, the Board of
Trustees, including the Independent Trustees, did not identify any single factor
as determinative but took into account a number of factors.
The Trustees considered the nature, extent, and quality of the services to be
provided to each of the Funds by the Adviser. In this regard, the Trustees
considered presentations by Fund officers and representatives of the Adviser.
The Trustees also reviewed and considered the Adviser Materials. These
presentations and the Adviser Materials contained information that assisted the
Trustees in assessing the Adviser's organizational structure, personnel,
investment capacity, investment process, and regulatory/compliance capabilities
and record, as well as the Adviser's investment philosophy, performance record,
and trade execution capabilities. The Trustees concluded that they were
satisfied with the nature, extent and quality of the services to be provided to
the Funds by the Adviser.
The Trustees considered the investment performance of the Adviser. The Trustees
reviewed presentations by Fund officers as well as a report prepared by the
Administrator that provided performance information for of each of the Funds and
performance information for various benchmarks and peer mutual funds as
categorized by Lipper, Inc. The Adviser also discussed its analysis of the
performance data and reviewed the various factors contributing to each Fund's
long-term and more recent performance. The Trustees considered performance of
the Adviser in managing the Funds and compared it to both benchmark and various
peer group data. Taking note of the Adviser's discussion of (i) the various
factors contributing to each Fund's performance, (ii) its continuing commitment
to each Fund's current investment strategy and portfolio holdings, respectively,
and (iii) measures it was undertaking designed to improve the Funds'
performance, the Trustees determined that they would continue to closely monitor
the Adviser's investment performance.
The Trustees considered the advisory fees to be paid to the Adviser, the total
expenses of each Fund, and the Adviser's commitment to waive its advisory fees
and/or reimburse Fund expenses in order to maintain stated caps on Fund
operating expenses. The Trustees reviewed presentations by Fund officers and
comparative information on fees paid and
33
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Approval of Investment Advisory Agreements (unaudited)
expenses incurred by peer mutual funds as categorized by Lipper, Inc. The
Trustees further considered the profits derived by the Adviser from its
relationship with the Fund, based on information reported by the Adviser. The
Trustees concluded that the advisory fees to be paid to the Adviser were
reasonable and the result of arm's-length negotiations, and that the Adviser's
expected profits from the advisory fees would not be excessive.
The Trustees considered the extent to which economies of scale would be realized
if the one or more Funds grow and whether fee levels reflect these possible
economies of scale for the benefit of shareholders in the Portfolio. In this
regard, the Trustees primarily considered current Fund asset levels of each and
the Adviser's representation that economies of scale did not exist at this time.
The Adviser represented that, in the event that one or more Fund's asset levels
increased in the future, it would consider how any benefits from economies of
scale would be realized by the various parties, including the implementation of
breakpoints in the Fund's advisory fee schedule. The Trustees concluded that
they were satisfied with the extent to which economies of scale would be shared
for the benefit of shareholders in the Portfolio.
In addition, the Trustees considered the Adviser's policies with respect to
obtaining benefits from their use of the Funds' brokerage commissions to obtain
research that could be used for the Adviser's other clients, and the Trustees
concluded that the Adviser's policies were reasonable. The Trustees further
considered the Adviser's report on the administration of its compliance program,
and the Trustees concluded that the Adviser's policies were reasonable.
Based on their evaluation of these factors described above, the Trustees,
including the Independent Trustees, concluded it was appropriate and desirable
for the Adviser to continue its management of each of the Funds and approved the
continuance of the Advisory Agreement.
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Contact Us
BY MAIL Oak Associates Funds
P.O. Box 219441
Kansas City, MO 64121-9441
BY TELEPHONE 1-888-462-5386
ON THE WEB www.oakfunds.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
The Trust files its complete schedule of portfolio holdings of each Fund with
the Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q within sixty days after the end of the period. The
Trust's Forms N-Q is available on the Commission's website at
HTTP://WWW.SEC.GOV, and may be reviewed and copied at the Commission's Public
Reference Room in Washington DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities, as well as information
relating to how a Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30, is available (i) without charge, upon
request, by calling 1-866-462-5386; and (ii) on the Commission's website at
HTTP://WWW.SEC.GOV.
[OAK LOGO OMITTED]
1-888-462-5386
P.O. Box 219441
Kansas City, MO 64121-9441
www.oakfunds.com
OAK-F-023-06000
Item 2. Code of Ethics.
Not applicable for semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end management investment companies.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005
Item 9. Purchases of Equity Securities by Closed-End Management Company and
Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. 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 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 control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting.
Items 12. Exhibits.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
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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: June 16, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ William E. White
-----------------------------------
William E. White, President
Date: June 16, 2005
By (Signature and Title)* /s/ Eric Kleinschmidt
-----------------------------------
Eric Kleinschmidt, Controller & CFO
Date: June 16, 2005
* Print the name and title of each signing officer under his or her signature.