UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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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)
William E. White
Oak Associates, ltd.
3875 Embassy Parkway, Suite 250
Akron, OH 44333-8334
(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: OCTOBER 31, 2005
OAK ASSOCIATES FUNDS
RIVER OAK DISCOVERY FUND
SUPPLEMENT DATED JANUARY 20, 2006 TO THE ANNUAL REPORT DATED OCTOBER 31, 2005
THIS SUPPLEMENT PROVIDES ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE
ANNUAL REPORT AND SHOULD BE READ IN CONJUNCTION WITH THE ANNUAL REPORT.
- --------------------------------------------------------------------------------
THE FOLLOWING IS HEREBY INSERTED AS A NEW SECTION IMMEDIATELY BEFORE THE SECTION
ENTITLED "DISCLOSURE OF FUND EXPENSES":
APPROVAL OF THE RIVER OAK DISCOVERY FUND'S INVESTMENT ADVISORY AGREEMENT
(UNAUDITED)
The investment advisory agreement between the Oak Associates Funds (the "Trust")
and Oak Associates, ltd. (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 a 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.
In May 2005, the Board of Trustees called and held a meeting to decide whether
to amend the Advisory Agreement for the purpose of including the River Oak
Discovery Fund (the "Fund"). In connection with this meeting, the Board
requested and received written materials from the Adviser regarding: (a) the
nature, extent and quality of the services to be provided by the Adviser to the
Fund; and (b) the costs of the services to be provided by the Adviser and its
affiliates from the relationship with the Fund, as discussed in further detail
below.
At the meeting, representatives from the Adviser, along with other service
providers of the Fund, presented additional oral and written information to help
the Board evaluate the Adviser's fee and other aspects of the Advisory
Agreement. Among other things, the representatives provided an overview of the
Adviser by reviewing key staff members and overall investment philosophy. The
Trustees then discussed the written materials that the Board received before the
meeting and the Adviser's oral presentation and any other information that the
Board received at the meeting, and deliberated on amending the Advisory
Agreement for the purpose of adding the Fund in light of this information.
Nature, Extent and Quality of Advisory and Other Services. In considering the
nature, extent and quality of the services to be provided by the Adviser, the
Board reviewed the portfolio management services to be provided by the Adviser
to the Fund, including the quality and continuity of the Adviser's portfolio
management personnel, and the Board concluded that it was satisfied with the
services to be provided to the Fund.
Costs of Advisory Services and Economies of Scale. The Trustees reviewed reports
comparing the expense ratio and advisory fee to be paid by the Fund to those
paid by other comparable mutual funds and concluded that the advisory fee was
reasonable and the result of arm's length negotiations, and the advisory fees to
be paid by the Fund were comparable to those of peer funds. The Trustees also
considered the Adviser's commitment to waive its advisory fees and/or reimburse
Fund expenses in order to maintain a stated cap on Fund operating expenses. In
addition, the Trustees considered the Adviser's policies with respect to
obtaining benefits from their use of the Fund's 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. Because it was not
possible to determine the profitability that the Adviser might achieve with
respect to the Fund, the Trustees did not make any conclusions regarding the
Adviser's profitability. For the same reason, the Board did not make any
conclusions regarding the extent to which economies of scale would be realized
by the Adviser as the assets of the Fund grow. In this regard, during future
considerations of the Advisory Agreement, the Board will consider whether any
economies of scale are being realized by the Adviser and, if so, an appropriate
mechanism for sharing the benefits of such economies of scale.
Based on the Board's deliberation and its evaluation of the information
described above, the Board, including all of the Independent Trustees,
unanimously (i) concluded that the terms of the Advisory Agreement are fair and
reasonable; (ii) concluded the Adviser's fees are reasonable in light of the
services that the Adviser will provide to the Fund; and (iii) agreed to amend
the Advisory Agreement for the purpose of adding the Fund. In its deliberations,
the Board did not identify any single piece of information discussed above that
was all-important, controlling or determinative of its decision but took into
account a number of factors.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
ITEM 1. REPORTS TO STOCKHOLDERS.
Annual Report
October 31, 2005
White Oak Select Growth
Rock Oak Core Growth
Pin Oak Aggressive Stock
River Oak Discovery
Red Oak Technology Select
Black Oak Emerging Technology
Live Oak Health Sciences
O SMALL CAP GROWTH INVESTING
NOW AVAILABLE WITH
RIVER OAK DISCOVERY FUND
[LOGO OMITTED] OAK ASSOCIATES FUNDS
To Our Shareholders
Dear Fellow Shareholders:
We are pleased to send you the latest Annual Report for the Oak Associates Funds
covering the fiscal year ended October 31, 2005, which includes discussions of
the individual Funds' performance, details of the Fund holdings, a report from
the Funds' independent auditors, and other important financial data. We
encourage you to read it carefully to stay abreast of your investments.
Over the past year, we have added two new mutual funds to increase shareholder
investment options:
RIVER OAK DISCOVERY FUND (RIVSX) -- This small-cap growth fund seeks
undiscovered companies with cutting-edge products, visionary management,
and the ability to bring innovation to both new and established
industries.
ROCK OAK CORE GROWTH FUND (RCKSX) -- This large-cap growth fund seeks a
diversified portfolio of larger, established growth companies who seek to
capitalize on demographic, productivity and globalization growth trends.
We encourage you to visit www.oakfunds.com to learn more about these new
investment options, and get up-to-date commentaries and information about each
of the seven Oak Associates Funds.
As always, we look forward to serving your investment needs and thank you for
the trust you have placed in us.
Sincerely,
Oak Associates Funds
TABLE OF CONTENTS
Fund Profiles ...................... 2
Financial Highlights ............... 16
Statements of Net Assets ........... 20
Statements of Operations ........... 40
Statements of Changes
in Net Assets ...................... 42
Notes to Financial Statements ...... 44
Report of Independent Registered
Public Accounting Firm ............. 50
Trustees and Officers
of the Trust ....................... 51
Disclosure of Fund Expenses ........ 54
<page>
TWO NEW INVESTMENT OPTIONS NOW AVAILABLE
SMALL CAP GROWTH
RIVER OAK DISCOVERY FUND (RIVSX)
Opened June 30, 2005
o The River Oak Discovery Fund 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 The Fund invests in companies that have cutting edge products, visionary
management, and the ability to bring innovation to both new and
established industries
MORE INFORMATION ON RIVER OAK DISCOVERY FUND CAN BE FOUND ON PAGE 8 OF THIS
REPORT.
LARGE CAP GROWTHLARGE CAP GROWTH
ROCK OAK CORE GROWTH FUND (RCKSX)
Opened December 31, 2004
o The Rock Oak Core Growth Fund seeks a diversified portfolio of larger,
established growth companies
o Demographic, productivity and globalization trends are providing
tomorrow's growth opportunities
o The Fund invests in innovative companies that seek to capitalize on
these dominant growth themes
MORE INFORMATION ON ROCK OAK CORE GROWTH FUND CAN BE FOUND ON PAGE 4 OF THIS
REPORT.
TO LEARN MORE OR INVEST TODAY, VISIT WWW.OAKFUNDS.COM.
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 Oak Associates Funds are 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
White Oak Select Growth Fund
OCTOBER 31, 2005
WHITE OAK SELECT GROWTH FUND
The Fund invests primarily in common stocks of large capitalization companies
(in excess of $5 billion) that are key performers within growing industries.
The White Oak Select Growth Fund (the "Fund") eased (0.19)% for the one year
period ending October 31, 2005. The comparative index, the S&P 500 Composite
Index gained 8.72%, and the Lipper Large-Cap Growth Funds Average returned
10.06%. Since its inception, the Fund has gained 9.22% on an annualized basis,
versus 10.30% for the S&P 500 Composite Index and 8.15% for the Lipper Large-Cap
Growth Funds Average.
The performance of the Fund in 2005 mimicked that of 2004. For the second
straight year, commodity-related sectors drove much of the return for the
comparative indices. Not owning the sectors or stocks tied to the rise in
commodity prices hurt the Fund. The big story in 2005 was energy. Crude oil
surged 16% and peaked at over $70 a barrel in August. The rise in oil was
exacerbated by two devastating hurricanes that hit the Gulf Coast and tight
excess supply world-wide. We view these factors as temporary issues that should
resolve themselves. Nevertheless, energy and technology stocks are often
inversely correlated and a strong energy market hampered the performance of the
Fund.
The Fund remains concentrated in 24 holdings and four sectors. While this
concentration can increase volatility in the short-term, we believe it is
essential to long-term out-performance. The largest overweight sector is
Technology due to the productivity enhancing nature of the group and attractive
relative valuation. Healthcare is the second largest position and a prime
beneficiary of demographics and innovation. Financials and Industrials round out
the remaining sectors.
Within the portfolio, Charles Schwab, the second largest individual position,
climbed more than 65% over the past year. The stock, which had been a laggard in
2004, recovered strongly after founder Charles Schwab returned to the CEO role
in late 2004. The company continues to attract new assets and has refocused the
business on its core competencies. Both steps have been well received by Wall
Street.
Within the technology sector, Symbol Technologies fell sharply after the
scanning equipment producer lowered earnings expectations and suffered from
upper management turnover. Additionally, semiconductor stocks weighed on the
tech sector performance as the cyclical nature of the sector is typically the
first to respond to concerns over the economy. More recently however, the group
has been showing signs that a sustained recovery may be underway.
Several new additions to the portfolio contributed strongly to the performance.
Gene-chip producer Affymetrix gained 49%; biotech-leader Amgen rose 33%;
Caterpillar climbed 31%; IT-services provider Cognizant Technology Solutions
added 29%; and Electronic Arts jumped 27%.
1-888-462-5386
2
<page>
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns
---------------------------------------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date
- ---------------------------------------------------------------------------------------------------------------------------
White Oak Select Growth Fund (0.19)% 10.52% (16.39)% 5.80% 9.22%*
- ---------------------------------------------------------------------------------------------------------------------------
S&P 500 Composite Index 8.72% 12.85% (1.74)% 9.34% 10.30%**
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Large-Cap Growth Funds
Average 10.06% 10.26% (7.15)% 6.48% 8.15%**
- ---------------------------------------------------------------------------------------------------------------------------
* Since 8/3/92
**Since 7/31/92
- ----------------------------
FUND DATA
- ----------------------------
Ticker Symbol WOGSX
Share Price $31.35
Total Net Assets $879M
Portfolio Turnover 36.46%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Medtronic 6.25%
2. Charles Schwab 6.10%
3. Cisco Systems 6.10%
4. eBay 5.57%
5. Caterpillar 5.51%
6. Qualcomm 5.45%
7. Electronic Arts 4.92%
8. Amgen 4.85%
9. Symantec 4.82%
10. United Parcel Service 4.77%
+ Percentages are based on net assets.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
WHITE OAK SELECT GROWTH FUND, VERSUS THE S&P 500
COMPOSITE INDEX AND THE LIPPER LARGE-CAP GROWTH FUNDS
AVERAGE, SINCE 10/31/95
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
WHITE OAK SELECT GROWTH FUND S&P 500 COMPOSITE INDEX LIPPER LARGE-CAP GROWTH FUNDS AVERAGE
10/31/95 10000 10000 10000
10/1996 12133 12410 11912
10/1997 16314 16395 15262
10/1998 19003 20000 17867
10/1999 29743 25134 24594
10/2000 43011 26665 28689
10/2001 19359 20025 18134
10/2002 13015 16999 14892
10/2003 19086 20535 17706
10/2004 17606 22470 18197
10/2005 17573 24429 20027
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
3
<page>
Rock Oak Core Growth Fund
OCTOBER 31, 2005
ROCK OAK CORE GROWTH FUND
The Fund invests primarily in common stocks of established U.S. companies with
large market capitalization (larger than $5 billion) that stand to benefit from
long-term themes such as globalization, demographics, productivity and
innovation.
The Rock Oak Core Growth Fund (the "Fund") rose 1.00% since its inception on
December 31, 2004. This return compares to a 1.05% gain in the S&P 500 Composite
Index and 1.77% gain in the Lipper Large-Cap Growth Funds Average. The Fund's
performance was driven by sectors heavily exposed to commodity prices.
Specifically, energy and industrial stocks were strong contributors to the
absolute return, while weakness in the technology sector weighed on overall
performance.
Rising oil and natural gas prices drove strong performance throughout the U.S.
stock market in 2005. Within the S&P 500 Composite Index, the Energy and
Utilities sectors gained an impressive 26.8%, and 12.6%, respectively, since
December 31, 2004. The performance of both sectors reflects the rise in
commodity prices and inflationary concerns that higher energy prices bring. The
Fund has exposure to energy companies through its investment in late stage
equipment suppliers to the oil and gas industry. While the best gains in energy
are probably behind the market, the significant underinvestment in energy
infrastructure bodes well for certain equipment suppliers to the industry.
Throughout 2005 the Federal Reserve continued its series of interest rate
increases, raising rates 7 times to 4%. Higher interest rates and fears over
inflation hampered the performance of many growth sectors, including Technology.
Higher interest rates lower the present value of future earnings and thus caused
valuations for tech stocks to decline despite very strong earnings growth. Going
forward, we expect earnings growth to remain the primary driver of stock returns
and valuations to benefit from the end of interest rate tightening.
Within the portfolio, three of the top five best performing stocks were energy
related. Coal supplier Joy Global gained 60% in the first 10 calendar months of
2005 as higher oil prices make coal a much more attractive option for power
companies. Ultra Petroleum, a natural gas producer in Wyoming, climbed 118% on
rising gas prices and strong reserves. In the Healthcare sector, chip supplier
Affymetrix rose nearly 25%. The semiconductor company provides equipment with
genomics information already imbedded within its chip to pharmaceutical and
biotechnology companies. We continue to believe Affymetrix will benefit from the
shift to targeted drug discovery using genomics information.
Technology stocks weighed on the performance of the Fund due to the
overweighting in this sector. While this was disappointing, the sector offers an
excellent combination of strong earnings growth and productivity gains that
historically has driven stock prices higher over the long-run.
1-888-462-5386
4
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Cummulative
Inception to Date*
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund 1.00%
- --------------------------------------------------------------------------------
S&P 500 Composite Index 1.05%
- --------------------------------------------------------------------------------
Lipper Large-Cap Growth Funds Average 1.77%
- --------------------------------------------------------------------------------
* Since 12/31/04
- ----------------------------
FUND DATA
- ----------------------------
Ticker Symbol RCKSX
Share Price $10.10
Total Net Assets $11M
Portfolio Turnover 44.73%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Cognizant Technology Solutions 4.79%
2. Goldman Sachs Group 4.31%
3. Qualcomm 3.99%
4. Expeditors International Washington 3.73%
5. Schlumberger 3.52%
6. Starbucks 3.48%
7. Electronic Arts 3.23%
8. Symantec 3.07%
9. Yahoo! 2.97%
10. Lowe's 2.82%
+ Percentages are based on net assets.
Comparison of Change in the Value of a $10,000 Investment in the
Rock Oak Core Growth Fund, versus the S&P 500 Composite Index and the
Lipper Large-Cap Growth Funds Average since inception (12/31/04)
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
ROCK OAK CORE GROWTH FUND S&P 500 COMPOSITE INDEX LIPPER LARGE-CAP GROWTH FUNDS AVERAGE
12/31/2004 10000 10000 10000
10/2005 10100 10105 10177
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
5
Pin Oak Aggressive Stock Fund
OCTOBER 31, 2005
PIN OAK AGGRESSIVE STOCK FUND
The Fund invests primarily in common stocks of U.S. companies with small to
medium market capitalizations (between $500 million and $5 billion) that are key
performers within growing industries.
The Pin Oak Aggressive Stock Fund (the "Fund") gained 11.09% for the year, while
the comparative index, the S&P MidCap 400 Index gained 17.65% and the Lipper
Multi-Cap Growth Funds Average returned 12.95%. For the three years ended
October 31, 2005, on an annualized basis, the Fund has returned 22.02%, versus
19.53% for the S&P MidCap 400 Index and 15.26% for the Lipper Multi-Cap Growth
Funds Average. Since its inception and on an annualized basis, the Fund has
returned 6.10%, versus 14.11% for the S&P MidCap 400 Index and 10.20% for the
Lipper Multi-Cap Growth Funds Average.
The Energy and Technology sectors often trade inversely, and the dramatic
outperformance by the former and underperformance of the latter worked against
the Fund. We have been surprised by the magnitude and duration of strong
performance of the energy sector, but believe that the best long-term growth
ideas generally lie outside that area.
Standout performers over the past year included Internet search company Google,
whose results continue to exceed expectations; health care information
technology company Cerner, who is benefiting from the move by hospitals to
electronic medical records; discount brokerage firm Charles Schwab, an
asset-gathering machine that has improved margins; and homebuilder Toll
Brothers, which has since been sold, who has seen strong demand for its homes.
Laggards included scanning device company Symbol Technologies, whose results
disappointed investors, and semiconductor companies Xilinx and Maxim Integrated
Products, who ratcheted down expectations for growth. We believe the slowdown in
the semiconductor market is temporary - as chips get cheaper to make, they are
going into more and more devices, which bodes well for long-term growth.
We added six new stocks to the Fund during the year: Affymetrix, Amazon.com,
Blue Nile, Google, Kla-Tencor, and Rockwell Automation. Amazon.com, Blue Nile,
and Google are all taking advantage of the growth in ecommerce, and perhaps less
obviously, they all improve the efficiency of their product markets by matching
buyers and sellers. Affymetrix manufactures and sells gene-chip microarrays that
assist scientists in conducting genetic research - an area that we believe could
be enormous. Kla-Tencor makes equipment that helps semiconductor manufacturers
improve yields, which becomes increasingly important as the feature size of
semiconductors shrinks. With its automation equipment, Rockwell Automation is
positioned to take advantage of the need - due to increasing competition and
globalization - of industrial companies to improve efficiency.
Along with these additions, we culled a few stocks from the Fund, thereby
ensuring that the portfolio remains concentrated in our best ideas.
1-888-462-5386
6
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns
------------------------------------------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date
- ------------------------------------------------------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund 11.09% 22.02% (21.11)% 2.38% 6.10%*
- ------------------------------------------------------------------------------------------------------------------------------------
S&P MidCap 400 Index 17.65% 19.53% 7.32% 14.19% 14.11%**
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Multi-Cap Growth Funds
Average 12.95% 15.26% (6.85)% 7.94% 10.20%**
- ------------------------------------------------------------------------------------------------------------------------------------
* Since 8/3/92
**Since 7/31/92
- ---------------------------
FUND DATA
- ---------------------------
Ticker Symbol POGSX
Share Price $21.13
Total Net Assets $139M
Portfolio Turnover 28.02%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Google 9.42%
2. Charles Schwab 7.42%
3. eBay 7.01%
4. Avid Technology 6.15%
5. Yahoo! 6.02%
6. Amazon.com 5.72%
7. Affymetrix 5.22%
8. Cisco Systems 4.88%
9. Juniper Networks 4.85%
10. Cerner 4.67%
+ Percentages are based on net assets.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
PIN OAK AGGRESSIVE STOCK FUND, VERSUS THE S&P MIDCAP 400 INDEX
AND THE LIPPER MULTI-CAP GROWTH FUNDS AVERAGE, SINCE 10/31/95
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
PIN OAK AGGRESSIVE STOCK FUND S&P MIDCAP 400 INDEX LIPPER MULTI-CAP GROWTH FUNDS AVERAGE
10/31/95 10000 10000 10000
10/1996 9861 11735 11830
10/1997 11235 15566 14714
10/1998 12678 16609 15922
10/1999 24161 20109 24035
10/2000 41402 26474 30904
10/2001 12938 23178 18187
10/2002 6963 22070 14768
10/2003 11454 28852 19152
10/2004 11388 32037 20102
10/2005 12650 37691 22705
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
7
River Oak Discovery Fund
OCTOBER 31, 2006
RIVER OAK DISCOVERY FUND
The Fund invests primarily in smaller companies (less than $3 billion) that are
rapidly growing and have cutting edge products, visionary management, and the
ability to bring innovation to both new and established industries.
The River Oak Discovery Fund (the "Fund") is off to a solid start. The small-cap
fund has risen 1.00% since inception on June 30, 2005. This return compares to a
2.06% gain in the Lipper Small-Cap Growth Funds Average and a 2.39% gain in the
Russell 2000 Growth Index.
The performance of small-cap stocks has been rather resilient given the
inflation concerns and interest rate tightening enacted by the Federal Reserve.
Small-cap stocks tend to underperform in periods of rising rates given the
higher funding costs and risk profile of smaller companies. However, strong
earnings growth and healthy capital spending have buoyed many sectors. One area
of weakness had been consumer-related holdings. This group weighed on
performance in the third quarter ending September 30, but has since rebounded
strongly.
Consumer-related sectors within the Fund were moderately affected by the two
hurricanes that hit the Gulf Coast region. More specifically, concerns over
consumer spending and the impact of higher energy prices hurt holdings exposed
to consumer discretionary spending. Owning several energy stocks helped dampen
the weakness from consumer stocks, which have since recovered. However, the
sector's weakness did weigh on the Fund given the difference in exposure to the
groups.
Within the portfolio, Healthcare stocks were both strong performers and
laggards. Healthcare information technology holdings Quality Systems and Cerner
rose 41% and 24%, respectively. Both companies are beneficiaries of the need to
improve information systems at hospitals. Conversely, medical equipment
suppliers Kinetic Concepts and Invitrogen both fell sharply on company specific
issues. We continue to believe healthcare provides excellent growth
opportunities and stands to benefit from both an increase in innovation and
spending trends.
Software was another bright area of performance for the Fund. On-demand software
service pioneer Salesforce.com rose 22%, while IT-services provider Satyam
Computer Services climbed 31%. Both companies offer a strong value proposition
of increasing productivity at a lower cost. Technology as a sector continues to
garner an overweight position within the Fund due to the high levels of
innovation the sector tends to generate and its ability to produce long-term
earnings growth.
While the Fund is still very young, we're excited about its prospects and
believe the small-cap sector remains a robust area for innovative companies.
1-888-462-5386
8
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Cummulative Inception to Date*
- --------------------------------------------------------------------------------
River Oak Discovery Fund 1.00%
- --------------------------------------------------------------------------------
Russell 2000 Growth Index 2.39%
- --------------------------------------------------------------------------------
Lipper Small-Cap Growth Funds Average 2.06%
- --------------------------------------------------------------------------------
*Since 6/30/05
- ----------------------------
FUND DATA
- ----------------------------
Ticker Symbol RIVSX
Share Price $10.10
Total Net Assets $3M
Portfolio Turnover 15.68%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Verint Systems 3.00%
2. Station Casinos 2.94%
3. Anteon International 2.94%
4. Salesforce.com 2.94%
5. Satyam Computer Services 2.91%
6. SVB Financial Group 2.91%
7. Viasat 2.91%
8. Charles River Laboratories
International 2.87%
9. East West Bancorp 2.87%
10. Quality Systems 2.84%
+ Percentages are based on net assets.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
RIVER OAK DISCOVERY FUND, VERSUS THE RUSSELL 2000 GROWTH INDEX
AND THE LIPPER SMALL-CAP GROWTH FUNDS AVERAGE SINCE INCEPTION (6/30/05)
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
RIVER OAK DISCOVERY FUND RUSSELL 2000 GROWTH INDEX LIPPER SMALL-CAP GROWTH FUNDS AVERAGE
6/30/2005 10000 10000 10000
10/2005 10100 10239 10206
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
9
Red Oak Technology Select Fund
OCTOBER 31, 2005
RED OAK TECHNOLOGY SELECT FUND
The Fund primarily invests in common stocks of companies which rely extensively
on technology in their product development or operations, or are expected to
benefit from technological advances and improvements.
The Red Oak Technology Select Fund (the "Fund") returned 3.97% for the year,
while the comparative index, the Lipper Science & Technology Average returned
8.47%, and the NASDAQ 100 Index, which includes holdings within sectors beyond
just technology, gained 6.63%. Since its inception and on an annualized basis,
the Fund returned (6.00)%, versus (1.45)% for the Lipper Science & Technology
Average and (2.03)% for the NASDAQ 100 Index.
The best performing stocks for the Fund for the twelve months ended October 31,
2005 included the web-based search provider Google, integrated circuit maker
Marvell Technology Group, GeneChip manufacturer Affymetrix and Cognizant
Technology Solutions which is an off-shore IT web consultant. Google's success
has come from the enormous growth in the paid search advertising market which
still has room to grow, particularly in international markets. Marvell
Technology Group's success during the year has been driven by the growth in
consumer electronics such as Apple's iPod, where they supply semi-conductors.
Affymetrix provides drug makers DNA chip technology that is used in the
intensifying market for personalized medicine. Cognizant Technology Solutions
continues to profit from the strong trend toward outsourcing and the cost
benefits that it provides.
Symbol Technologies, Maxim Integrated Products, and eBay were the biggest
underperformers for the twelve months. Symbol Technologies suffered several set
backs during the year including lowered near-term growth expectations. We still
believe the opportunity in the rapidly growing radio frequency identification
(RFID) market makes this company one to own within the portfolio. Maxim
Integrated Products missed numbers in the last quarter of the year causing
significant pressure on the stock, but the company continues to be one of the
best ways to invest in the growth in semiconductors over the long term. Early in
the year, eBay announced plans to increase its capital spending budget for 2005
which worried investors initially. The stock price improved throughout the
remainder of the year as these concerns subsided and the company continued to
show strong operating results.
As the price of oil appears to have peaked, and as the Federal Reserve's
interest rate tightening cycle comes to an end, we believe technology is poised
for strong growth in the coming year.
1-888-462-5386
10
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns
-----------------------------------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return Inception to Date*
- ---------------------------------------------------------------------------------------------------------------------------
Red Oak Technology Select Fund 3.97% 15.69% (28.00)% (6.00)%
- ---------------------------------------------------------------------------------------------------------------------------
NASDAQ 100 Index 6.63% 17.19% (13.45)% (2.03)%
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Science & Technology Average 8.47% 17.45% (15.66)% (1.45)%
- ---------------------------------------------------------------------------------------------------------------------------
*Since 12/31/98
- ---------------------------
FUND DATA
- ---------------------------
Ticker Symbol ROGSX
Share Price $6.55
Total Net Assets $161M
Portfolio Turnover 40.47%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Google 8.79%
2. Qualcomm 6.92%
3. EMC 6.51%
4. Marvell Technology Group 5.63%
5. Electronic Arts 5.13%
6. Juniper Networks 5.08%
7. Yahoo! 4.85%
8. eBay 4.71%
9. Amazon.com 4.46%
10. Cognizant Technology Solutions 4.46%
+ Percentages are based on net assets.
Comparison of Change in the Value of a $10,000 Investment in the
Red Oak Technology Select Fund, versus the NASDAQ 100 Index
and the Lipper Science & Technology Average since inception (12/31/98)
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
Red Oak Technology Select Fund NASDAQ 100 Index Lipper Science & Technology Average
12/31/98 10000 10000 10000
10/1999 16939 14373 15656
10/2000 33848 17894 20969
10/2001 8448 7444 8698
10/2002 4229 5401 5830
10/2003 6559 7749 9063
10/2004 6299 8152 8828
10/2005 6549 8692 9576
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
11
Black Oak Emerging Technology Fund
OCTOBER 31, 2005
BLACK OAK EMERGING TECHNOLOGY FUND
The Fund primarily invests in common stocks of companies that are considered to
be well-positioned to become market leaders among "emerging" technology
companies.
The Black Oak Emerging Technology Fund (the "Fund") was down (1.44)% for the
year, while the comparative index, the Lipper Science & Technology Average
returned 8.47%, and the NASDAQ 100 Index, which includes holdings within sectors
beyond just technology, gained 6.63%. Since its inception and on an annualized
basis, the Fund was down (27.93)%, versus (10.33)% for the Lipper Science &
Technology Average and (7.63)% for the NASDAQ 100 Index.
The best performing stocks for the Fund for the twelve months ended October 31,
2005 included integrated circuit maker Marvell Technology Group, GeneChip
manufacturer Affymetrix and Ultimate Software Group which is a web-based
provider of human resource management and payroll software solutions. Marvell
Technology Group's success during the year has been driven by the growth in
consumer electronics; Marvell Technology Group makes semiconductors which are
embedded in fast growing devices such as Apple's iPod. Affymetrix provides drug
makers DNA chip technology that is used in the intensifying market for
personalized medicine. Ultimate Software Group has benefited from the trend in
smaller companies lowering costs by moving human resources and payroll
operations online.
Packeteer, Given Imaging, and Cree were the biggest underperformers for the
twelve months. Packeteer's end markets continue to grow, but the company failed
to meet growth expectations during the year due to company specific execution
issues which we believe have been corrected. Given Imaging is a young,
innovative medical device maker whose product roll-out has taken longer than
expected, but whose outlook continues to be promising. Cree's stock suffered
earlier in 2005 as the company's transition to a next generation manufacturing
facility was delayed. The transition to their new facilities is back on track
and should allow the company to better leverage the opportunities within the
light emitting diodes (LED) market.
During fiscal year 2005, the Technology sector underperformed the broad markets
as sectors such as Energy and Utilities were strong. The performance of these
sectors was driven by rising commodity costs throughout the year, oil
particularly. However, with the price of oil appearing to have peaked coupled
with the Federal Reserve's tightening cycle nearing an end, we believe the
coming year should bode well for growth in the Technology sector.
1-888-462-5386
12
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns
-----------------------------------------------------------------------------------
1 Year Return 3 Year Return Inception to Date
- ---------------------------------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (1.44)% 18.56% (27.93)%*
- ---------------------------------------------------------------------------------------------------------------------------
NASDAQ 100 Index 6.63% 17.19% (7.63)%**
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Science & Technology Average 8.47% 17.45% (10.33)%**
- ---------------------------------------------------------------------------------------------------------------------------
*Since 12/29/00
**Since 12/31/00
- ----------------------------
FUND DATA
- ----------------------------
Ticker Symbol BOGSX
Share Price $2.05
Total Net Assets $49M
Portfolio Turnover 30.22%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Marvell Technology Group 7.12%
2. Avid Technology 6.43%
3. Cognizant Technology Solutions 6.12%
4. Verint Systems 6.08%
5. DSP Group 6.03%
6. NAVTEIQ 5.80%
7. Cree 5.62%
8. Ultimate Software Group 5.45%
9. Cogent 4.07%
10. Macrovision 4.04%
+ Percentages are based on net assets.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
BLACK OAK EMERGING TECHNOLOGY FUND, VERSUS THE NASDAQ 100 INDEX
AND THE LIPPER SCIENCE & TECHNOLOGY AVERAGE, SINCE 12/31/00
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
BLACK OAK EMERGING TECHNOLOGY FUND NASDAQ 100 INDEX LIPPER SCIENCE & TECHNOLOGY AVERAGE
12/31/2000 10000 10000 10000
10/2001 2980 5832 5561
10/2002 1230 4231 3728
10/2003 2210 6070 5794
10/2004 2080 6386 5644
10/2005 2050 6809 6122
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
13
Live Oak Health Sciences Fund
OCTOBER 31, 2005
LIVE OAK HEALTH SCIENCES FUND
The Fund primarily invests in common stocks of companies engaged in the
research, development, production, or distribution of products or services
related to health care, medicine, or the life sciences.
The Live Oak Health Sciences Fund (the "Fund") returned 23.52% for the year
ended October 31, 2005, while the comparative index, the S&P 500 Health Care
Index, gained 9.57%, and the Lipper Health & Biotechnology Average returned
15.03%. Since its inception and on an annualized basis, the Fund has provided a
return of 3.61%, versus 0.18% for the S&P 500 Health Care Index and 1.60% for
the Lipper Health & Biotechnology Average for the same time period.
Drug development can be a high-risk/high-reward proposition, and this was
illustrated in the past year by the happenings at biotech giants Biogen Idec,
which is not a Fund holding, and Genentech, currently a Fund holding. The former
withdrew from the market its new Multiple Sclerosis drug Tysabri due to multiple
cases of a fatal disease in patients taking the drug. This had been a highly
anticipated breakthrough therapy, and news of its withdrawal sent Biogen Idec's
stock down over 40%. On the other hand, Genentech's cancer drug Avastin, which
at one point in its development had low expectations, surpassed a $1 billion
annual sales run-rate during the year and gained FDA approval for new uses in
cancer treatment. The stock rose 99% during the year. We will continue to manage
the portfolio with a focus on risk-reward, acknowledging that there is no
fail-safe way to avoid the disappointments that will inevitably occur on
occasion in this sector.
Strong contributors to performance included pharmacy benefit manager Express
Scripts, which will help administer the new Medicare drug benefit; gene-chip
microarray manufacturer Affymetrix and health care information technology
company Cerner, both of which are at the forefront of long-term growth trends
(genetic research and electronic medical records, respectively); and the
aforementioned Genentech.
Laggards included pharmaceutical companies Medicis Pharmaceutical, which dealt
with uncertainty about its pending merger with Inamed, and Pfizer, whose pain
drug sales have declined dramatically given concerns over cardiovascular side
effects.
The Fund established new positions in Charles River Laboratories International,
a provider of animal research models, and biotech companies Cell Genesis and
Rigel Pharmaceuticals.
We continue to focus on industries and companies that innovate and/or possess
competitive advantages and avoid those that do not. Our long-term, low-turnover,
concentrated approach also remains in place. We believe this long-term view
gives us an edge, especially in a time when other managers are reacting (and
often overreacting) to every short-term data point.
1-888-462-5386
14
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns
-----------------------------------------------------------------------------------
1 Year Return 3 Year Inception to Date
- ---------------------------------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund 23.52% 14.19% 3.61%*
- ---------------------------------------------------------------------------------------------------------------------------
S&P 500 Health Care Index 9.57% 5.70% 0.18%**
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Health & Biotechnology Average 15.03% 13.77% 1.60%**
- ---------------------------------------------------------------------------------------------------------------------------
*Since 6/29/01
**Since 6/30/01
- ----------------------------
FUND DATA
- ----------------------------
Ticker Symbol LOGSX
Share Price $11.66
Total Net Assets $36M
Portfolio Turnover 15.69%
2005 Capital Gain
Distribution None
TOP 10 HOLDINGS+
1. Affymetrix 10.12%
2. Medtronic 6.48%
3. Teva Pharmaceutical Industries 6.19%
4. Invitrogen 5.61%
5. Medimmune 5.59%
6. AmerisourceBergen 5.10%
7. Applied Biosystems Group - Applera 5.08%
8. Amgen 5.01%
9. Cerner 4.93%
10. Techne 4.91%
+ Percentages are based on net assets.
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
LIVE OAK HEALTH SCIENCES FUND, VERSUS THE S&P 500 HEALTH CARE INDEX
AND THE LIPPER HEALTH & BIOTECHNOLOGY AVERAGE, SINCE 6/30/01
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
LIVE OAK HEALTH SCIENCES FUND S&P 500 HEALTH CARE INDEX LIPPER HEALTH & BIOTECHNOLOGY AVERAGE
6/30/2001 10000 10000 10000
10/2001 10239 10263 9476
10/2002 7829 8536 7382
10/2003 9239 9042 8915
10/2004 9439 9200 9479
10/2005 11658 10080 10904
These figures represent past performance, which is no guarantee of future
results. The performance in the above graph does not reflect the deduction of
taxes the shareholder will pay on fund distributions or redemption of fund
shares. Fee waivers are in effect; if they had not been in effect, performance
would have been lower. See Note 5 in the Notes to Financial Statements for
additional information on fee waivers.
www.oakfunds.com
15
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE 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 $ 0.01#++ $ (0.07)## $ (0.06) $ -- $31.35
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
ROCK OAK CORE GROWTH FUND
2005(1) $10.00 $(0.05)# $ 0.15 $ 0.10 $ -- $10.10
PIN OAK AGGRESSIVE STOCK FUND
2005 $19.02 $(0.16)# $ 2.27 $ 2.11 $ -- $21.13
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
RIVER OAK DISCOVERY FUND
2005(2) $10.00 $(0.03)# $ 0.13 $ 0.10 $ -- $10.10
RED OAK TECHNOLOGY SELECT FUND
2005 $ 6.30 $(0.03)#+++ $ 0.28 $ 0.25 $ -- $ 6.55
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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
16
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 (0.19)% $ 878,709 1.14% 0.04% 1.14% 1.14% 36.46%
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
ROCK OAK CORE GROWTH FUND
2005(1) 1.00% $ 10,560 1.15% (0.67)% 1.15% 1.89% 44.73%
PIN OAK AGGRESSIVE STOCK FUND
2005 11.09% $ 139,379 1.15% (0.78)% 1.15% 1.22% 28.02%
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
RIVER OAK DISCOVERY FUND
2005(2) 1.00% $ 3,063 1.35% (0.79)% 1.35% 4.05% 15.68%
RED OAK TECHNOLOGY SELECT FUND
2005 3.97% $ 160,881 1.15% (0.50)% 1.15% 1.27% 40.47%
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
www.oakfunds.com
17
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT THE 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
- ------------------------------------------------------------------------------------------------------------------------------------
BLACK OAK EMERGING TECHNOLOGY FUND
2005 $ 2.08 $(0.02)# $(0.01)## $(0.03) $ -- $ 2.05
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(3) 10.00 (0.02) (7.00) (7.02) -- 2.98
LIVE OAK HEALTH SCIENCES FUND
2005 $ 9.44 $(0.07)# $ 2.29 $ 2.22 $ -- $11.66
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(4) 10.00 (0.01) 0.25 0.24 -- 10.24
# PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES FOR THE PERIOD.
## THE AMOUNT SHOWN FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD DOES NOT
ACCORD WITH THE AGGREGATE NET GAINS ON INVESTMENTS FOR THE PERIOD BECAUSE OF
THE SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUE OF THE INVESTMENTS OF THE FUND.
+ 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.
++ NET INVESTMENT INCOME PER SHARE AND THE NET INVESTMENT INCOME RATIO INCLUDE
$0.13 AND 0.40%, RESPECTIVELY, RESULTING FROM A SPECIAL DIVIDEND FROM
MICROSOFT IN NOVEMBER 2004.
+++ NET INVESTMENT INCOME PER SHARE AND THE NET INVESTMENT INCOME RATIO INCLUDE
$0.03 AND 0.51%, RESPECTIVELY, RESULTING FROM A SPECIAL DIVIDEND FROM
MICROSOFT IN NOVEMBER 2004.
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004. ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005. 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
18
RATIO OF
RATIO OF EXPENSES
RATIO OF EXPENSES TO AVERAGE
NET TO AVERAGE NET ASSETS
NET ASSETS RATIO OF INVESTMENT NET ASSETS (EXCLUDING
END OF EXPENSES LOSS (EXCLUDING WAIVER AND/OR PORTFOLIO
TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER
RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
BLACK OAK EMERGING TECHNOLOGY FUND
2005 (1.44)% $48,901 1.15% (1.13)% 1.15% 1.41% 30.22%
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(3) (70.20)+ 104,191 1.00 (0.52) 1.12 1.12 5.99
LIVE OAK HEALTH SCIENCES FUND
2005 23.52% $36,304 1.15% (0.66)% 1.15% 1.22% 15.69%
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(4) 2.40+ 21,134 1.00 (0.49) 1.23 1.23 --
www.oakfunds.com
19
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
White Oak Select Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
AUDIO/VISUAL EQUIPMENT - 1.9%
BIOLOGICAL PRODUCTS - 4.8%
COMMERCIAL BANKS - 4.7%
COMPUTER COMMUNICATIONS EQUIPMENT - 10.7%
COMPUTER PERIPHERAL EQUIPMENT - 1.0%
CONSTRUCTION MACHINARY & EQUIPMENT - 5.5%
E-COMMERCE - SERVICES - 5.6%
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS - 6.3%
ELECTRONIC COMPUTERS - 4.0%
MEASURING & CONTROLLING DEVICES - 3.8%
PHARMACEUTICAL PREPARATIONS - 7.7%
SECURITY BROKERS, DEALERS & FLOTATION COMPANIES - 6.1%
SEMICONDUCTOR CAPITAL EQUIPMENT - 4.5%
SEMICONDUCTORS & RELATED DEVICES - 13.4%
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION - 1.6%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH - 2.1%
SERVICES - COMPUTER PROGRAMMING 1.2%
SERVICES - PREPACKAGED SOFTWARE - 9.7%
TRACKING & COURIER SERVICES - 4.8%
REPURCHASE AGREEMENT - 0.6%
+ Percentages are based on net assets.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.4%
AUDIO/VISUAL EQUIPMENT -- 1.9%
Harman International
Industries 170,000 $ 16,976
---------
16,976
---------
BIOLOGICAL PRODUCTS -- 4.8%
Amgen* 562,000 42,577
---------
42,577
---------
COMMERCIAL BANKS -- 4.7%
Citigroup 895,000 40,973
---------
40,973
---------
COMPUTER COMMUNICATIONS EQUIPMENT -- 10.7%
Cisco Systems* 3,070,000 53,572
Juniper Networks* 1,725,000 40,244
---------
93,816
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMPUTER PERIPHERAL EQUIPMENT -- 1.0%
Symbol Technologies 1,065,000 $ 8,840
---------
8,840
---------
CONSTRUCTION MACHINARY & EQUIPMENT -- 5.5%
Caterpillar 920,000 48,383
---------
48,383
---------
E-COMMERCE - SERVICES -- 5.6%
eBay* 1,235,000 48,906
---------
48,906
---------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 6.3%
Medtronic 970,000 54,960
---------
54,960
---------
1-888-462-5386
20
- --------------------------------------------------------------------------------
White Oak Select Growth Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRONIC COMPUTERS -- 4.0%
Dell* 1,115,000 $ 35,546
---------
35,546
---------
MEASURING & CONTROLLING DEVICES -- 3.8%
Rockwell Automation 635,000 33,750
---------
33,750
---------
PHARMACEUTICAL PREPARATIONS -- 7.7%
Pfizer 1,800,000 39,132
Teva Pharmaceutical
Industries ADR 750,000 28,590
---------
67,722
---------
SECURITY BROKERS, DEALERS &
FLOTATION COMPANIES -- 6.1%
Charles Schwab 3,525,000 53,580
---------
53,580
---------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 4.5%
Applied Materials 2,410,000 39,476
---------
39,476
---------
SEMICONDUCTORS & RELATED DEVICES -- 13.4%
Linear Technology 1,200,000 39,852
Maxim Integrated
Products 865,000 29,998
Qualcomm 1,205,200 47,919
---------
117,769
---------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 1.6%
Avid Technology* 280,000 13,784
---------
13,784
---------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 2.1%
Affymetrix* 415,000 $ 18,853
---------
18,853
---------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 1.2%
Cognizant Technology
Solutions, Cl A* 230,000 10,115
---------
10,115
---------
SERVICES - PREPACKAGED SOFTWARE -- 9.7%
Electronic Arts* 760,000 43,229
Symantec* 1,776,300 42,365
---------
85,594
---------
TRACKING & COURIER SERVICES -- 4.8%
United Parcel Service,
Cl B 575,000 41,941
---------
41,941
---------
TOTAL COMMON STOCK
(Cost $723,070)(000) 873,561
---------
REPURCHASE AGREEMENT -- 0.6%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $5,174,464,
(collateralized by a
U.S. Treasury Note,
5.625%, 02/15/06,
total market value:
$5,277,540) $5,174 5,174
---------
TOTAL REPURCHASE AGREEMENT
(Cost $5,174)(000) 5,174
---------
TOTAL INVESTMENTS -- 100.0%
(Cost $728,244)(000) 878,735
---------
www.oakfunds.com
21
- --------------------------------------------------------------------------------
White Oak Select Growth Fund (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (0.0)%
Payable for Fund Shares Redeemed $ (1,562)
Investment Advisory Fees Payable (562)
Administration Fees Payable (39)
Trustees' Fees Payable (20)
Other Assets and Liabilities, Net 2,157
-------------
(26)
-------------
NET ASSETS -- 100.0% $ 878,709
=============
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 28,025,268 outstanding
shares of beneficial interest $ 3,462,564
Undistributed net investment
income 498
Accumulated net realized loss
on investments (2,734,844)
Net unrealized appreciation
on investments 150,491
-------------
NET ASSETS $ 878,709
=============
Net Asset Value, Offering and Redemption
Price Per Share $31.35
======
* 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
22
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED PLOT POINTS FOLLOWS]
REPURCHASE AGREEMENT 4.7%
WEB PORTALS/ISP 3.7%
TRUCKING & COURIER SERVICES 3.7%
TRANSPORTATION - RAILROADS 1.0%
TELECOM - WIRELESS PROVIDER 2.0%
STATE COMMERCIAL BANKS 1.6%
SERVICES - PREPACKAGED SOFTWARE 7.1%
SERVICES - COMPUTER PROGRAMMING SERVICES 6.9%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 1.3%
SERVICES - BUSINESS SERVICES 1.4%
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 2.4%
SEMICONDUCTORS & RELATED DEVICES 4.8%
SEMICONDUCTOR CAPITAL EQUIPMENT 1.9%
SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 4.3%
RETAIL - EATING PLACES 3.5%
RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS 2.8%
RETAIL - HANDBAGS 1.3%
RADIO BROADCASTING STATIONS 2.3%
PHARMACEUTICAL PREPARATIONS 2.3%
PATENT OWNERS & LESSORS 1.4%
OPERATIVE BUILDERS 0.8%
OIL, GAS FIELD SERVICES 3.5%
MINING MACHINERY & EQUIPMENT 2.1%
MEASURING & CONTROLLING DEVICES 4.8%
GENERAL BUILDING CONTRACTORS - RESIDENTIAL BUILDINGS 2.6%
ENERGY - WELL EQUIPMENT 2.2%
ELECTRONIC COMPUTERS 1.7%
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 1.0%
E-COMMERCE - SERVICES 2.6%
DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT 1.0%
DATA STORAGE 2.1%
CRUDE PERTROLEUM NATURAL GAS 3.0%
CONSTRUCTION MACHINERY & EQUIPMENT 1.6%
COMPUTER COMMUNICATIONS EQUIPMENT 3.1%
COMMERCIAL BANKS 0.9%
BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) 6.1%
+ Percentages are based on net assets. Included in net assets are other assets
and liabilities of 0.5%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 94.8%
BIOLOGICAL PRODUCTS
(NO DIAGNOSTIC SUBSTANCES) -- 6.1%
Amgen* 2,600 $ 197
Genzyme* 2,600 188
Charles River Laboratories
International* 6,000 263
---------
648
---------
COMMERCIAL BANKS -- 0.9%
Citigroup 2,100 96
---------
96
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMPUTER COMMUNICATIONS EQUIPMENT -- 3.1%
Cisco Systems* 10,000 $ 175
Juniper Networks* 6,500 152
---------
327
---------
CONSTRUCTION MACHINERY & EQUIPMENT -- 1.6%
Caterpillar 3,100 163
---------
163
---------
CRUDE PERTROLEUM NATURAL GAS -- 3.0%
Ultra Petroleum* 3,600 189
XTO Energy 3,033 132
---------
321
---------
www.oakfunds.com
23
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DATA STORAGE -- 2.1%
EMC* 15,700 $ 219
---------
219
---------
DEEP SEA FOREIGN TRANSPORTATION OF
FREIGHT -- 1.0%
OMI 6,000 108
---------
108
---------
E-COMMERCE -- SERVICES -- 2.6%
eBay* 6,900 273
---------
273
---------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 1.0%
Medtronic 1,800 102
---------
102
---------
ELECTRONIC COMPUTERS -- 1.7%
Dell* 5,600 179
---------
179
---------
ENERGY - WELL EQUIPMENT -- 2.2%
National Oilwell Varco* 3,800 237
---------
237
---------
GENERAL BUILDING CONTRACTORS -- RESIDENTIAL
BUILDINGS -- 2.6%
Toll Brothers* 7,400 273
---------
273
---------
MEASURING & CONTROLLING DEVICES -- 4.8%
Rockwell Automation 4,400 234
Thermo Electron* 9,100 275
---------
509
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MINING MACHINERY & EQUIPMENT -- 2.1%
Joy Global 4,850 $ 222
---------
222
---------
OIL, GAS FIELD SERVICES -- 3.5%
Schlumberger 4,100 372
---------
372
---------
OPERATIVE BUILDERS -- 0.8%
Ryland Group 1,300 87
---------
87
---------
PATENT OWNERS & LESSORS -- 1.4%
Headwaters* 4,700 150
---------
150
---------
PHARMACEUTICAL PREPARATIONS -- 2.3%
Teva Pharmaceutical
Industries ADR 6,400 244
---------
244
---------
RADIO BROADCASTING STATIONS -- 2.3%
XM Satellite Radio, Cl A* 8,500 245
---------
245
---------
RETAIL - HANDBAGS -- 1.3%
Coach* 4,200 135
---------
135
---------
RETAIL -- LUMBER & OTHER BUILDING,
MATERIALS DEALERS -- 2.8%
Lowe's 4,900 298
---------
298
---------
1-888-462-5386
24
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL - EATING PLACES -- 3.5%
Starbucks* 13,000 $ 368
---------
368
---------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 4.3%
Goldman Sachs Group 3,600 455
---------
455
---------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 1.9%
Applied Materials 11,900 195
---------
195
---------
SEMICONDUCTORS & RELATED DEVICES -- 4.8%
Maxim Integrated
Products 2,400 83
Qualcomm 10,600 421
---------
504
---------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 2.4%
Avid Technology* 5,200 256
---------
256
---------
SERVICES - BUSINESS SERVICES -- 1.4%
Ctrip.com International
ADR 2,500 144
---------
144
---------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 1.3%
Affymetrix* 3,100 141
---------
141
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - COMPUTER PROGRAMMING SERVICES -- 6.9%
Cognizant Technology
Solutions, Cl A* 11,500 $ 506
Satyam Computer Services
ADR 6,500 222
---------
728
---------
SERVICES PREPACKAGED SOFTWARE -- 7.1%
Electronic Arts* 6,000 341
NAVETQ* 2,200 86
Symantec* 13,600 324
---------
751
---------
STATE COMMERCIAL BANKS -- 1.6%
SVB Financial Group* 3,300 164
---------
164
---------
TELECOM - WIRELESS PROVIDER -- 2.0%
Vimpel-Communications
ADR* 5,300 212
---------
212
---------
TRANSPORTATION - RAILROADS -- 1.0%
Norfolk Southern 2,500 101
---------
101
---------
TRUCKING & COURIER SERVICES -- 3.7%
Expeditors International
Washington 6,500 394
---------
394
---------
www.oakfunds.com
25
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WEB PORTALS/ISP -- 3.7%
Shanda Interactive
Entertainment ADS* 3,000 $ 74
Yahoo!* 8,500 314
---------
388
---------
TOTAL COMMON STOCK
(Cost $9,473)(000) 10,009
---------
REPURCHASE AGREEMENT -- 4.7%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $493,737
(collateralized by a
U.S. Treasury Note,
5.625%, 02/15/06,
total market value:
$503,572) $494 494
---------
TOTAL REPURCHASE AGREEMENT
(Cost $494)(000) 494
---------
TOTAL INVESTMENTS -- 99.5%
(Cost $9,967)(000) 10,503
---------
OTHER ASSETS AND LIABILITIES -- 0.5%
Payable for Investment
Securities Purchased (40)
Payable for Fund Shares Redeemed (2)
Investment Advisory Fees Payable (1)
Other Assets and Liabilities,
Net 100
---------
57
---------
NET ASSETS -- 100.0% $ 10,560
=========
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,045,913 outstanding
shares of beneficial interest $10,301
Accumulated net realized loss
on investments (277)
Net unrealized appreciation on
investments 536
---------
NET ASSETS $ 10,560
=========
Net Asset Value, Offering and
Redemption Price
Per Share $10.10
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
ADS -- AMERICAN DEPOSITORY SHARES
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
26
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
COMPUTER COMMUNICATIONS EQUIPMENT 9.7%
COMPUTER PERIPHERAL EQUIPMENT 3.0%
E-COMMERCE - SERVICES 12.7%
MEASURING & CONTROLLING DEVICES 4.0%
RETAIL - JEWELRY STORES 7.5%
SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 7.4%
SEMICONDUCTOR CAPITAL EQUIPMENT 7.7%
SEMICONDUCTORS & RELATED DEVICES 11.9%
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 6.2%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 5.2%
SERVICES - COMPUTER PROGRAMMING SERVICES 4.0%
SERVICES - PREPACKAGED SOFTWARE 4.7%
WEB PORTALS/ISP 15.4%
REPURCHASE AGREEMENT 0.6%
+ Percentages are based on net assets.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK - 99.4%
COMPUTER COMMUNICATIONS EQUIPMENT -- 9.7%
Cisco Systems* 390,000 $ 6,806
Juniper Networks* 290,000 6,766
--------
13,572
--------
COMPUTER PERIPHERAL EQUIPMENT -- 3.0%
Symbol Technologies 510,000 4,233
--------
4,233
--------
E-COMMERCE - SERVICES -- 12.7%
Amazon.com* 200,000 7,976
eBay* 246,700 9,769
--------
17,745
--------
MEASURING & CONTROLLING DEVICES -- 4.0%
Rockwell Automation 105,000 5,581
--------
5,581
--------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL - JEWELRY STORES -- 7.5%
Blue Nile* 120,500 $ 4,322
Tiffany 155,000 6,107
--------
10,429
--------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 7.4%
Charles Schwab 680,000 10,336
--------
10,336
--------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 7.7%
Applied Materials 300,000 4,914
Kla-Tencor 125,000 5,786
--------
10,700
--------
SEMICONDUCTORS & RELATED DEVICES -- 11.9%
Linear Technology 185,000 6,144
Maxim Integrated
Products 153,500 5,323
Xilinx 215,000 5,149
--------
16,616
--------
www.oakfunds.com
27
- --------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund (CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 6.2%
Avid Technology* 174,000 $ 8,566
--------
8,566
--------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 5.2%
Affymetrix* 160,000 7,269
--------
7,269
--------
SERVICES - COMPUTER PROGRAMMING SERVICES -- 4.0%
Cognizant Technology
Solutions* 125,000 5,497
--------
5,497
--------
SERVICES - PREPACKAGED SOFTWARE -- 4.7%
Cerner* 77,000 6,503
--------
6,503
--------
WEB PORTALS/ISP -- 15.4%
Google* 35,300 13,137
Yahoo!* 227,000 8,392
--------
21,529
--------
TOTAL COMMON STOCK
(Cost $99,729)(000) 138,576
--------
REPURCHASE AGREEMENT -- 0.6%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $780,650,
(collateralized by
a U.S. Treasury Note,
5.625%, 02/15/06,
total market value:
$796,201) $781 781
--------
TOTAL REPURCHASE AGREEMENT
(Cost $781)(000) 781
--------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
(Cost $100,510)(000) $139,357
--------
OTHER ASSETS AND LIABILITIES -- 0.0%
Payable for Investment
Securities Purchased (177)
Payable for Fund Shares
Redeemed (337)
Investment Advisory Fees
Payable (62)
Administration Fees Payable (6)
Trustees' Fees Payable (3)
Other Assets and Liabilities,
Net 607
--------
22
--------
NET ASSETS -- 100.0% $139,379
========
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 6,597,380
outstanding shares of
beneficial interest $962,387
Accumulated net realized loss
on investments (861,855)
Net unrealized appreciation
on investments 38,847
--------
NET ASSETS $139,379
========
Net Asset Value, Offering and
Redemption Price Per Share $21.13
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
1-888-462-5386
28
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
River Oak Discovery Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
REPURCHASE AGREEMENT 6.7%
WEB PORTALS/ISP 3.2%
TELEGRAPH & OTHER MESSAGE COMMUNICATIONS 2.8%
TELECOM - COMMUNICATIONS EQUIPMENT 2.9%
SYSTEMS - COMPUTER INTEGRATED
SYSTEMS DESIGN 10.2%
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS 1.2%
STATE COMMERCIAL BANKS 5.8%
SERVICES - PREPACKAGED SOFTWARE 11.3%
SERVICES - HOTELS & MOTELS 2.9%
SERVICES - COMPUTER PROGRAMMING SERVICES 2.9%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 5.1%
SERVICES - BUSINESS SERVICES 2.3%
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 2.4%
SEMICONDUCTORS & RELATED DEVICES 2.6%
SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 2.5%
RETAIL - EATING PLACES 0.8%
RETAIL - AUTOMOTIVE & HOME SUPPLY STORES 1.3%
PUMPS & PUMPING EQUIPMENT 2.7%
PATENT OWNERS & LESSORS 2.0%
OPERATIVE BUILDERS 2.9%
MINING MACHINERY & EQUIPMENT 4.7%
MEASURING & CONTROLLING DEVICES 0.6%
ENERGY - WELL EQUIPMENT 2.0%
ELECTRONIC COMPONENTS 2.3%
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 1.9%
DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT 2.2%
CRUDE PETROLEUM NATURAL GAS 2.4%
BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) 4.7%
+ Percentages are based on net assets. Included in net assets are other assets
and liabilities of 4.7%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 88.6%
BIOLOGICAL PRODUCTS
(NO DIAGNOSTIC SUBSTANCES) -- 4.7%
Charles River Laboratories
International* 2,000 $ 88
Invitrogen* 900 57
---------
145
---------
CRUDE PETROLEUM NATURAL GAS -- 2.4%
Encore Acquisition* 2,150 74
---------
74
---------
DEEP SEA FOREIGN TRANSPORTATION OF
FREIGHT -- 2.2%
OMI 3,700 67
---------
67
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 1.9%
Palomar Medical
Technologies* 2,200 $ 60
---------
60
---------
ELECTRONIC COMPONENTS -- 2.3%
Color Kinetics* 4,600 70
---------
70
---------
ENERGY - WELL EQUIPMENT -- 2.0%
Hydril* 900 60
---------
60
---------
MEASURING & CONTROLLING DEVICES -- 0.6%
Thermo Electron* 600 18
---------
18
---------
www.oakfunds.com
29
- --------------------------------------------------------------------------------
River Oak Discovery Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MINING MACHINERY & EQUIPMENT -- 4.7%
Bucyrus International,
Cl A 1,800 $ 75
Joy Global 1,500 69
---------
144
---------
OPERATIVE BUILDERS -- 2.9%
Meritage* 700 44
Ryland Group 650 44
---------
88
---------
PATENT OWNERS & LESSORS -- 2.0%
Headwaters* 1,900 60
---------
60
---------
PUMPS & PUMPING EQUIPMENT -- 2.7%
Roper Industries 2,200 83
---------
83
---------
RETAIL - AUTOMOTIVE & HOME
SUPPLY STORES -- 1.3%
O'Reilly Automotive* 1,400 39
---------
39
---------
RETAIL - EATING PLACES -- 0.8%
PF Chang's China Bistro* 550 25
---------
25
---------
SECURITY BROKERS, DEALERS & FLOTATION
COMPANIES -- 2.5%
Nuveen Investments, Cl A 1,900 77
---------
77
---------
SEMICONDUCTORS & RELATED DEVICES -- 2.6%
Formfactor* 3,200 79
---------
79
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 2.4%
Avid Technology* 1,500 $ 74
---------
74
---------
SERVICES - BUSINESS SERVICES -- 2.3%
Ctrip.com Intermational
ADR 1,200 69
---------
69
---------
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL
RESEARCH -- 5.1%
Affymetrix* 1,700 77
Senomyx* 2,200 31
Symyx Technologies* 1,800 48
---------
156
---------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 2.9%
Satyam Computer Services
ADR 2,600 89
---------
89
---------
SERVICES - HOTELS & MOTELS -- 2.9%
Station Casinos 1,400 90
---------
90
---------
SERVICES - PREPACKAGED SOFTWARE -- 11.3%
Ansys* 2,000 74
Cerner* 950 80
NAVTEQ* 1,200 47
Packeteer* 7,000 55
Verint Systems* 2,400 92
---------
348
---------
1-888-462-5386
30
- --------------------------------------------------------------------------------
River Oak Discovery Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
STATE COMMERCIAL BANKS -- 5.8%
East West Bancorp 2,300 $ 88
SVB Financial Group* 1,800 89
---------
177
---------
SURGICAL & MEDICAL INSTRUMENTS &
APPARATUS -- 1.2%
Kinetic Concepts* 1,000 36
---------
36
---------
SYSTEMS - COMPUTER INTEGRATED SYSTEMS
DESIGN -- 10.2%
Anteon
International* 2,000 90
Quality Systems 1,300 87
Salesforce.com* 3,600 90
Sapient* 8,600 45
---------
312
---------
TELECOM - COMMUNICATIONS EQUIPMENT -- 2.9%
Viasat* 3,600 89
---------
89
---------
TELEGRAPH & OTHER MESSAGE
COMMUNICATIONS -- 2.8%
Global Payments 2,000 86
---------
86
---------
WEB PORTALS/ISP -- 3.2%
Factset Research Systems 1,300 46
Sify ADR* 10,500 53
---------
99
---------
TOTAL COMMON STOCK
(Cost $2,688)(000) 2,714
---------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.7%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $204,593
(collateralized by a
U.S. Treasury Note,
5.625%, 02/15/06,
total market
value: $208,668) $205 $ 205
---------
TOTAL REPURCHASE AGREEMENT
(Cost $205)(000) 205
---------
TOTAL INVESTMENTS -- 95.3%
(Cost $2,893)(000) 2,919
---------
OTHER ASSETS AND LIABILITIES -- 4.7%
Receivable from Investment
Adviser 3
Other Assets and Liabilities,
Net 141
---------
144
---------
NET ASSETS -- 100.0% $ 3,063
=========
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 303,321 outstanding
shares of beneficial
interest $ 3,055
Accumulated net realized loss
on investments (18)
Net unrealized appreciation
on investments 26
---------
NET ASSETS $ 3,063
=========
Net Asset Value, Offering and
Redemption Price Per
Share $10.10
======
* 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.
www.oakfunds.com
31
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
REPURCHASE AGREEMENT 1.0%
WEB PORTALS/ISP 13.6%
SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN 4.5%
SERVICES - PREPACKAGED SOFTWARE 19.2%
SERVICES - COMPUTER PROGRAMMING SERVICES 4.5%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 2.1%
SEMICONDUCTORS & RELATED DEVICES 17.8%
SEMICONDUCTOR CAPITAL EQUIPMENT 2.2%
ELECTRONIC COMPUTERS 3.8%
E-COMMERCE - SERVICES 9.2%
DATA STORAGE 6.5%
COMPUTER PERIPHERAL EQUIPMENT 4.8%
COMPUTER COMMUNICATIONS EQUIPMENT 9.1%
AUDIO/VISUAL EQUIPMENT 1.9%
+ Percentages are based on net assets. Included in net assets are other assets
and liabilities of (0.2)%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.2%
AUDIO/VISUAL EQUIPMENT -- 1.9%
Harman International
Industries 30,000 $ 2,996
---------
2,996
---------
COMPUTER COMMUNICATIONS EQUIPMENT -- 9.1%
Cisco Systems* 375,000 6,544
Juniper Networks* 350,000 8,165
---------
14,709
---------
COMPUTER PERIPHERAL EQUIPMENT -- 4.8%
Symbol Technologies 375,000 3,112
Zebra Technologies,
Cl A* 105,000 4,527
---------
7,639
---------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DATA STORAGE -- 6.5%
EMC* 750,000 $ 10,470
---------
10,470
---------
E-COMMERCE - SERVICES -- 9.2%
Amazon.com* 180,000 7,178
eBay* 191,200 7,571
---------
14,749
---------
ELECTRONIC COMPUTERS -- 3.8%
Dell* 191,100 6,092
---------
6,092
---------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 2.2%
Kla-Tencor 75,000 3,472
---------
3,472
---------
1-888-462-5386
32
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 17.8%
Formfactor* 120,000 $ 2,954
Marvell Technology
Group* 195,000 9,050
Maxim Integrated
Products 160,600 5,570
Qualcomm 280,000 11,133
---------
28,707
---------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 2.1%
Affymetrix* 75,000 3,407
---------
3,407
---------
SERVICES - COMPUTER PROGRAMMING SERVICES -- 4.5%
Cognizant Technology
Solutions, Cl A* 163,187 7,177
---------
7,177
---------
SERVICES - PREPACKAGED SOFTWARE -- 19.2%
Electronic Arts* 145,000 8,248
Macromedia* 150,000 6,588
NAVTEQ* 130,000 5,086
Pixar* 140,000 7,102
Symantec* 165,000 3,935
---------
30,959
---------
SYSTEMS - COMPUTER INTEGRATED SYSTEMS
DESIGN -- 4.5%
Cogent* 120,300 3,194
Cognex 140,000 4,001
---------
7,195
---------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WEB PORTALS/ISP -- 13.6%
Google, Cl A* 38,000 $ 14,141
Yahoo!* 211,000 7,801
---------
21,942
---------
TOTAL COMMON STOCK
(Cost $121,141)(000) 159,514
---------
REPURCHASE AGREEMENT -- 1.0%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on 11/01/05,
repurchase price $1,676,664
(collateralized by a U.S.
Treasury Note, 5.625%,
02/15/06, total
market value:
$1,710,063) $1,677 1,677
---------
TOTAL REPURCHASE AGREEMENT
(Cost $1,677)(000) 1,677
---------
TOTAL INVESTMENTS -- 100.2%
(Cost $122,818)(000) 161,191
---------
OTHER ASSETS AND LIABILITIES -- (0.2)%
Payable for Fund Shares
Redeemed (165)
Investment Advisory Fees Payable (67)
Administration Fees Payable (7)
Trustees' Fees Payable (4)
Other Assets and Liabilities,
Net (67)
---------
(310)
---------
NET ASSETS -- 100.0% $ 160,881
=========
www.oakfunds.com
33
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 24,564,193
outstanding shares of
beneficial interest $ 1,823,637
Accumulated net realized
loss on investments (1,701,129)
Net unrealized appreciation
on investments 38,373
-----------
NET ASSETS $ 160,881
===========
Net Asset Value, Offering
and Redemption
Price Per Share $ 6.55
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS.
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Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
REPURCHASE AGREEMENT 0.3%
TESTING LABS 2.9%
SERVICES - PREPACKAGED SOFTWARE 28.3%
SERVICES - COMPUTER PROGRAMMING SERVICES 6.1%
SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN 4.1%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 7.7%
SERVICES - BUSINESS SERVICES 5.0%
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 6.4%
SEMICONDUCTORS & RELATED DEVICES 21.6%
SEARCH, DETECTION, NAVIGATION, GUIDANCE, AURONAUTICAL SYSTEMS 3.8%
SEARCH AND NAVIGATION EQUIPMENT 2.3%
RADIO BROADCASTING STATIONS 3.9%
ELECTRONIC COMPONENTS 2.2%
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 2.3%
COMPUTER SYSTEMS & SOFTWARE - COMPUTER INTEGRATED SYSTEMS DESIGN 3.2%
+ Percentages are based on net assets. Included in net assets are other assets
and liabilities of (0.1)%.
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.8%
COMPUTER SYSTEMS & SOFTWARE - COMPUTER
INTEGRATED SYSTEMS DESIGN -- 3.2%
F5 Networks* 30,000 $ 1,561
-----------
1,561
-----------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 2.3%
Given Imaging* 50,000 1,110
-----------
1,110
-----------
ELECTRONIC COMPONENTS -- 2.2%
Color Kinetics* 70,000 1,067
-----------
1,067
-----------
RADIO BROADCASTING STATIONS -- 3.9%
XM Satellite Radio,
Cl A* 66,500 1,917
-----------
1,917
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SEARCH AND NAVIGATION EQUIPMENT -- 2.3%
DRS Technologies 22,500 $ 1,108
-----------
1,108
-----------
SEARCH, DETECTION, NAVIGATION, GUIDANCE,
AURONAUTICAL SYSTEMS -- 3.8%
Flir Systems* 88,900 1,863
-----------
1,863
-----------
SEMICONDUCTORS & RELATED DEVICES -- 21.6%
Cree* 114,400 2,750
DSP Group* 120,000 2,950
Formfactor* 57,000 1,403
Marvell Technology
Group* 75,000 3,481
-----------
10,584
-----------
www.oakfunds.com
35
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - ALLIED TO MOTION PICTURE
PRODUCTION -- 6.4%
Avid Technology* 63,900 $ 3,146
-----------
3,146
-----------
SERVICES - BUSINESS SERVICES -- 5.0%
Ctrip.com
International ADR 15,000 863
Audible* 150,900 1,577
-----------
2,440
-----------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 7.7%
Affymetrix* 43,000 1,954
Symyx Technologies* 67,300 1,800
-----------
3,754
-----------
SYSTEMS - COMPUTER INTEGRATED SYSTEMS
DESIGN -- 4.1%
Cogent* 75,000 1,991
-----------
1,991
-----------
SERVICES - COMPUTER PROGRAMMING
SERVICES -- 6.1%
Cognizant Technology Solutions,
Cl A* 68,000 2,991
-----------
2,991
-----------
SERVICES - PREPACKAGED SOFTWARE -- 28.3%
Electronic Arts* 32,500 1,849
Macrovision* 105,000 1,978
NAVTEQ* 72,500 2,836
Packeteer* 195,000 1,539
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Ultimate Software
Group* 157,000 $ 2,667
Verint Systems* 77,600 2,971
-----------
13,840
-----------
TESTING LABS -- 2.9%
eResearch
Technology* 100,000 1,433
-----------
1,433
-----------
TOTAL COMMON STOCK
(Cost $37,743)(000) 48,805
-----------
REPURCHASE AGREEMENT -- 0.3%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $156,304
(collateralized by
a U.S. Treasury Note,
5.625%, 02/15/06,
total market
value: $159,418) $156 156
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $156)(000) 156
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $37,899)(000) 48,961
-----------
OTHER ASSETS AND LIABILITIES -- (0.1)%
Payable for Fund Shares Redeemed (41)
Investment Advisory Fees Payable (14)
Administration Fees Payable (2)
Trustees' Fees Payable (1)
Other Assets and Liabilities,
Net (2)
-----------
(60)
-----------
NET ASSETS -- 100.0% $ 48,901
===========
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36
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 23,880,762
outstanding shares of
beneficial interest $ 331,214
Accumulated net realized
loss on investments (293,375)
Net unrealized appreciation
on investments 11,062
-----------
NET ASSETS $ 48,901
===========
Net Asset Value, Offering
and Redemption
Price Per Share $ 2.05
======
* 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.
www.oakfunds.com
37
Statement of Net Assets
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (Unaudited)
[PIE CHART OMITTED, PLOT POINTS FOLLOWS]
REPURCHASE AGREEMENT 4.1%
WHOLESALE - DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES 5.1%
SURGICAL & MEDICAL INSTRUMENTS & APPARATES 4.9%
SERVICES - PREPACKAGED SOFTWARE 4.9%
SERVICES - HOME HEALTH CARE SERVICES 4.5%
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 10.1%
SEMICONDUCTORS & RELATED DEVICES 1.7%
PHARMACEUTICAL PREPARATIONS 20.8%
LABORATORY ANALYTICAL INSTRUMENTS 10.5%
IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES 1.6%
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 6.5%
BIOLOGICAL PRODUCTS 25.0%
+ 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 -- 95.6%
BIOLOGICAL PRODUCTS -- 25.0%
Amgen* 24,000 $ 1,818
Cell Genesys* 190,000 1,024
Charles River
Laboratories
International* 25,000 1,094
Genentech* 12,000 1,087
Invitrogen* 32,000 2,035
Medimmune* 58,000 2,029
-----------
9,087
-----------
ELECTROMEDICAL & ELECTROTHERAPEUTIC
APPARATUS -- 6.5%
Medtronic 41,500 2,352
-----------
2,352
-----------
IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES -- 1.6%
EPIX Pharmaceuticals* 84,713 593
-----------
593
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LABORATORY ANALYTICAL INSTRUMENTS -- 10.5%
Applied Biosystems
Group - Applera 76,000 $ 1,845
Bruker BioSciences* 81,100 337
Waters* 45,000 1,629
-----------
3,811
-----------
PHARMACEUTICAL PREPARATIONS -- 20.8%
Corcept
Therapeutics* 131,552 651
Eli Lilly 23,000 1,145
Johnson & Johnson 11,500 720
Medicis
Pharmaceutical,
Cl A 46,000 1,357
Pfizer 46,400 1,009
Rigel
Pharmaceuticals* 17,700 397
Teva Pharmaceutical
Industries ADR 59,000 2,249
-----------
7,528
-----------
SEMICONDUCTORS & RELATED DEVICES -- 1.7%
Caliper Life Sciences* 91,200 595
-----------
595
-----------
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38
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund (CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SERVICES - COMMERCIAL PHYSICAL &
BIOLOGICAL RESEARCH -- 10.1%
Affymetrix* 80,900 $ 3,675
-----------
3,675
-----------
SERVICES - HOME HEALTH CARE SERVICES -- 4.5%
Express Scripts* 21,600 1,629
-----------
1,629
-----------
SERVICES - PREPACKAGED SOFTWARE -- 4.9%
Cerner* 21,200 1,790
-----------
1,790
-----------
SURGICAL & MEDICAL INSTRUMENTS & APPARATES -- 4.9%
Techne* 32,900 1,784
-----------
1,784
-----------
WHOLESALE - DRUGS, PROPRIETARIES &
DRUGGISTS' SUNDRIES -- 5.1%
AmerisourceBergen 24,300 1,853
-----------
1,853
-----------
TOTAL COMMON STOCK
(Cost $27,860)(000) 34,697
-----------
REPURCHASE AGREEMENT -- 4.1%
Morgan Stanley (A)
3.50%, dated 10/31/05,
to be repurchased on
11/01/05, repurchase
price $1,486,909
(collateralized by a
U.S. Treasury Note,
5.625%, 02/15/06, total
market value:
$1,516,528) $1,487 1,487
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,487)(000) 1,487
-----------
TOTAL INVESTMENTS -- 99.7%
(Cost $29,347)(000) 36,184
-----------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.3%
Payable for Investment Securities
Purchased $ (93)
Payable for Fund Shares Redeemed (19)
Investment Advisory Fees Payable (18)
Administration Fees Payable (2)
Trustees' Fees Payable (1)
Other Assets and Liabilities,
Net 253
-----------
120
-----------
NET ASSETS -- 100.0% $ 36,304
===========
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 3,113,884
outstanding shares of
beneficial interest $ 32,120
Accumulated net realized
loss on investments (2,653)
Net unrealized appreciation
on investments 6,837
-----------
NET ASSETS $ 36,304
===========
Net Asset Value, Offering
and Redemption
Price Per Share $11.66
======
* 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.
www.oakfunds.com
39
Statements of Operations (000)
FOR THE YEAR OR PERIOD ENDED OCTOBER 31, 2005
WHITE OAK ROCK OAK
SELECT GROWTH CORE GROWTH
FUND FUND(1)
- ------------------------------------------------------------------------------------------
Investment Income:
Dividends ...................................... $ 13,787 $ 27
Interest ....................................... 111 9
Less: Foreign Withholding Tax .................. -- --
- ------------------------------------------------------------------------------------------
Total Investment Income ..................... 13,898 36
- ------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ....................... 8,733 56
Administration Fees ............................ 498 3
Transfer Agent Fees ............................ 3,038 27
Printing Fees .................................. 504 5
Professional Fees .............................. 163 1
Trustees' Fees ................................. 95 1
Registration Fees .............................. 91 --
Custodian Fees ................................. 65 1
Offering Fees .................................. -- 48
Insurance and Other Fees ....................... 213 1
- ------------------------------------------------------------------------------------------
Total Expenses .............................. 13,400 143
- ------------------------------------------------------------------------------------------
Less: Investment Advisory
Fees Waived .................................... -- (56)
Reimbursement from Adviser ............... -- --
- ------------------------------------------------------------------------------------------
Net Expenses ................................ 13,400 87
- ------------------------------------------------------------------------------------------
Net Investment Income (Loss) ................ 498 (51)
- ------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold ............................. (316,096) (277)
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities .................... 322,828 536
- ------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain on Investments .................... 6,732 259
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting From Operations ................... $ 7,230 $208
==========================================================================================
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004.
(2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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<page>
PIN OAK RIVER OAK RED OAK BLACK OAK LIVE OAK
AGGRESSIVE STOCK DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES
FUND FUND(2) SELECT FUND TECHNOLOGY FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends ............................... $ 608 $ 2 $ 1,271 $ -- $ 113
Interest ................................ 19 3 31 10 32
Less: Foreign Withholding Tax ........... -- -- -- -- (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income .............. 627 5 1,302 10 143
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ................ 1,240 8 1,482 469 217
Administration Fees ..................... 71 -- 85 27 13
Transfer Agent Fees ..................... 567 10 778 334 99
Printing Fees ........................... 77 1 89 29 15
Professional Fees ....................... 24 -- 29 9 5
Trustees' Fees .......................... 14 -- 16 5 3
Registration Fees ....................... 11 -- 14 4 1
Custodian Fees .......................... 10 -- 13 4 2
Offering Fees ........................... -- 18 -- -- --
Insurance and Other Fees ................ 27 -- 33 10 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses ....................... 2,041 37 2,539 891 360
- ------------------------------------------------------------------------------------------------------------------------------------
Less: Investment Advisory
Fees Waived ............................. (114) (8) (236) (162) (22)
Reimbursement from Adviser ........ -- (17) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses ......................... 1,927 12 2,303 729 338
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) ......... (1,300) (7) (1,001) (719) (195)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) on
Securities Sold ...................... (12,825) (18) 21,296 8,146 252
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities ............. 32,905 26 (11,183) (7,070) 5,638
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain on Investments ............. 20,080 8 10,113 1,076 5,890
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting From Operations ............ $18,780 $ 1 $ 9,112 $ 357 $ 5,695
====================================================================================================================================
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41
<page>
Statements of Changes in Net Assets (000)
FOR THE YEARS OR PERIODS ENDED OCTOBER 31,
WHITE OAK ROCK OAK PIN OAK
SELECT GROWTH CORE GROWTH AGGRESSIVE STOCK
FUND FUND(1) FUND
2005 2004 2005 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ................. $ 498 $ (9,379) $ (51) $ (1,300) $ (1,733)
Net Realized Gain (Loss)
on Securities Sold ........................ (316,096) (743,131) (277) (12,825) (84,984)
Net Unrealized Appreciation
(Depreciation) of
Investment Securities ..................... 322,828 589,854 536 32,905 84,934
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ................. 7,230 (162,656) 208 18,780 (1,783)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ................................ 64,348 386,344 12,581 13,722 42,583
Shares Redeemed .............................. (762,768) (790,680) (2,229) (83,962) (83,464)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ........ (698,420) (404,336) 10,352 (70,240) (40,881)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets .................... (691,190) (566,992) 10,560 (51,460) (42,664)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .......................... 1,569,899 2,136,891 -- 190,839 233,503
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period ................................ $ 878,709 $1,569,899 $10,560 $139,379 $ 190,839
====================================================================================================================================
Undistributed Net Investment Income .......... $ 498 $ -- $ -- $ -- $ --
====================================================================================================================================
Shares Issued and Redeemed:
Issued ....................................... 2,024 11,012 1,277 678 2,151
Redeemed ..................................... (23,982) (23,781) (231) (4,112) (4,328)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in
Share Transactions ..................... (21,958) (12,769) 1,046 (3,434) (2,177)
====================================================================================================================================
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004.
(2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005.
AMOUNTS DESIGNATED AS"_" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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<page>
RIVER OAK RED OAK BLACK OAK LIVE OAK
DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES
FUND(2) SELECT FUND TECHNOLOGY FUND FUND
2005 2005 2004 2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ................. $ (7) $ (1,001) $ (2,933) $ (719) $ (907) $ (195) $ (202)
Net Realized Gain (Loss)
on Securities Sold ........................ (18) 21,296 (34,196) 8,146 1,812 252 (71)
Net Unrealized Appreciation
(Depreciation) of
Investment Securities ..................... 26 (11,183) 25,982 (7,070) (6,665) 5,638 383
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ................. 1 9,112 (11,147) 357 (5,760) 5,695 110
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares Issued ................................ 3,079 8,937 38,199 7,881 30,978 17,909 10,868
Shares Redeemed .............................. (17) (102,016) (110,057) (31,430) (39,539) (13,526) (7,272)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
from Capital Share Transactions ........ 3,062 (93,079) (71,858) (23,549) (8,561) 4,383 3,596
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets .................... 3,063 (83,967) (83,005) (23,192) (14,321) 10,078 3,706
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .......................... -- 244,848 327,853 72,093 86,414 26,226 22,520
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period ................................ $3,063 $160,881 $244,848 $48,901 $ 72,093 $36,304 $26,226
====================================================================================================================================
Undistributed Net Investment Income .......... $ -- $ -- $ -- $ -- $ -- $ -- $ --
====================================================================================================================================
Shares Issued and Redeemed:
Issued ....................................... 305 1,357 5,746 3,571 14,366 1,587 1,080
Redeemed ..................................... (2) (15,646) (16,848) (14,350) (18,730) (1,251) (739)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in
Share Transactions ..................... 303 (14,289) (11,102) (10,779) (4,364) 336 341
====================================================================================================================================
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43
<page>
Notes to Financial Statements
OCTOBER 31, 2005
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 seven funds: White Oak Select Growth
Fund, Rock Oak Core Growth Fund, Pin Oak Aggressive Stock Fund and River Oak
Discovery 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
generally accepted accounting principles 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 increases and decreases in net assets from operations 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
44
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; a significant event with respect to a security or securities has
occurred after the close of the market or exchange on which the security or
securities principally trades and before the time the Fund calculates net
asset value; 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 are being amortized over a twelve-month period. Offering Fees for
the Rock Oak Core Growth Fund and the River Oak Discovery Fund were $57,063
and $53,538, respectively. As of October 31, 2005, $9,511 and $35,904,
respectively 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. Net realized capital gains on sales of securities, if any, 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
www.oakfunds.com
45
Notes to Financial Statements (continued)
OCTOBER 31, 2005
(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.
4. ADMINISTRATION, TRANSFER AGENT
AND DISTRIBUTION AGREEMENTS:
- --------------------------------------------------------------------------------
The Trust and the Administrator are parties to an Administration Agreement dated
February 27, 1998, last amended May 4, 2005, 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
$665,000 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
following Funds reimbursed Oak Associates, ltd. (the "Adviser") for amounts paid
to third parties that provide sub-transfer agency and other administration
services relating to the Funds:
AMOUNT (000)
-----------
White Oak Select Growth Fund ........ $1,787
Rock Oak Core Growth Fund ........... 3
Pin Oak Aggressive Stock Fund ....... 217
Red Oak Technology Select Fund ...... 237
Black Oak Energing Technology Fund .. 61
Live Oak Health Sciences Fund ....... 28
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 the Adviser are parties to an Investment Advisory Agreement dated
February 27, 1998, as last amended May 4, 2005, under which the Adviser receives
an annual fee equal to 0.74% of the average daily net assets of each Fund,
except for the River Oak Discovery Fund for which the Adviser receives 0.90% of
the average daily net assets of the 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 the White Oak Select Growth, Rock Oak
Core Growth, Pin Oak Aggressive Stock, Red Oak Technology Select, Black Oak
Emerging Technology and Live Oak Health Sciences Funds, and 1.35% of the average
daily net assets of the River Oak Discovery Fund, 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.
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6. INVESTMENT TRANSACTIONS:
- --------------------------------------------------------------------------------
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the period ended October 31, 2005, were as follows
(000):
PURCHASES SALES
-------- ---------
White Oak Select Growth Fund .... $426,881 $1,063,696
Rock Oak Core Growth Fund ....... 13,829 4,078
Pin Oak Aggressive Stock Fund ... 46,602 116,030
River Oak Discovery Fund ........ 3,124 417
Red Oak Technology Select Fund .. 80,679 174,504
Black Oak Emerging Technology
Fund .......................... 19,068 41,312
Live Oak Health Sciences Fund ... 7,728 4,457
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.
Accordingly, the following permanant differences have been reclassified to/from
the following accounts (000):
ACCUMULATED
NET INVESTMENT PAID-IN
LOSS CAPITAL
---------- -------
Rock Oak Core
Growth Fund ........... $ 51 $ (51)
Pin Oak Aggressive
Stock Fund ............ 1,300 (1,300)
River Oak Discovery Fund 7(7)
Red Oak Technology
Select Fund ........... 1,001 (1,001)
Black Oak Emerging
Technology
Fund .................. 719 (719)
Live Oak Health
Sciences Fund ......... 195 (195)
There were no dividends or distributions declared during the fiscal periods
ended October 31, 2005 and October 31, 2004.
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47
Notes to Financial Statements (concluded)
OCTOBER 31, 2005
As of October 31, 2005, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED CAPITAL NET EARNINGS
ORDINARY LOSS UNREALIZED (ACCUMULATED
INCOME CARRYFORWARD APPRECIATION LOSSES)
---------- ------------ ------------ ---------
White Oak Select Growth Fund ............ $498 $(2,734,844) $150,491 $(2,583,855)
Rock Oak Core Growth Fund ............... -- (196) 455 259
Pin Oak Aggressive Stock Fund ........... -- (861,855) 38,847 (823,008)
River Oak Discovery Fund ................ -- (16) 24 8
Red Oak Technology Select Fund .......... -- (1,700,993) 38,237 (1,662,756)
Black Oak Emerging Technology Fund ...... -- (293,375) 11,062 (282,313)
Live Oak Health Sciences Fund ........... -- (2,653) 6,837 4,184
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At October 31, 2005, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING OCTOBER 31,
---------------------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 TOTAL
----- ----- ----- ----- ----- ----- -----
White Oak Select Growth
Fund ................... $ -- $749,069 $712,973 $206,602 $744,256 $321,944 $2,734,844
Rock Oak Core Growth
Fund ................... -- -- -- -- -- 196 196
Pin Oak Aggressive
Stock Fund ............. -- 137,532 436,197 180,087 90,283 17,756 861,855
River Oak Discovery Fund -- -- -- -- -- 16 16
Red Oak Technology
Select Fund ............ 35,997 610,821 726,266 293,676 34,233 -- 1,700,993
Black Oak Emerging
Technology Fund ........ -- 65,445 212,845 15,085 -- -- 293,375
Live Oak Health
Sciences Fund .......... -- -- 2,582 -- 71 -- 2,653
During the period ended October 31, 2005, the Red Oak Technology Select Fund,
Black Oak Emerging Technology Fund and the Live Oak Health Sciences Fund
utilized $21,432,154, $8,146,064 and $251,618 of capital loss carryforwards to
offset capital gains, respectively.
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At October 31, 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 were as follows (000):
FEDERAL AGGREGATE AGGREGATE NET
TAX GROSS GROSS UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
------------ -------------- -------------- --------------
White Oak Select Growth Fund ........ $ 728,244 $ 205,219 $ (54,728) $ 150,491
Rock Oak Core Growth Fund ........... 10,048 895 (440) 455
Pin Oak Aggressive Stock Fund ....... 100,510 47,718 (8,871) 38,847
River Oak Discovery Fund ............ 2,895 205 (181) 24
Red Oak Technology Select Fund ...... 122,954 44,217 (5,980) 38,237
Black Oak Emerging Technology Fund .. 37,899 15,426 (4,364) 11,062
Live Oak Health Sciences Fund ....... 29,347 10,507 (3,670) 6,837
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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49
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders
Oak Associates Funds:
We have audited the accompanying statements of net assets of the White Oak
Select Growth Fund (formerly the "White Oak Growth Stock Fund"), Rock Oak Core
Growth Fund, Pin Oak Aggressive Stock Fund, River Oak Discovery Fund, Red Oak
Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health
Sciences Fund, each a series of the Oak Associates Funds (the "Trust") as of
October 31, 2005, and the related statements of operations for the year then
ended or period from inception through October 31, 2005 (inception for the Rock
Oak Core Growth Fund is December 31, 2004 and inception for the River Oak
Discovery Fund is June 30, 2005), the statements of changes in net assets for
each of the years or period since inception (see above) in the two years then
ended, and the financial highlights for each of the years or period since
inception (see above) in the four-year period then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the year ended October 31, 2001, were audited by other auditors
who have ceased operations. Those auditors expressed an unqualified opinion on
those financial highlights in their report dated December 4, 2001.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with custodians and
brokers. As to securities purchased or sold but not yet received or delivered,
we performed other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
White Oak Select Growth Fund (formerly the "White Oak Growth Stock Fund"), Rock
Oak Core Growth Fund, Pin Oak Aggressive Stock Fund, River Oak Discovery Fund,
Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak
Health Sciences Fund, as of October 31, 2005, the results of their operations,
the changes in their net assets, and the financial highlights for the years or
periods described in the first paragraph above, in conformity with U.S.
generally accepted accounting principles.
/S/ KPMG LLP
Philadelphia, Pennsylvania
December 22, 2005
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50
Trustees of the Trust (unaudited)
NUMBER OF
PORTFOLIOS
IN FUND OTHER
POSITION LENGTH COMPLEX PRINCIPAL DIRECTORSHIPS
HELD OF TIME OVERSEEN OCCUPATION(S) HELD
WITH SERVED BY BOARD DURING BY BOARD
NAME & AGE(1) TRUST (YRS.)(2) MEMBER(3) PAST FIVE YEARS MEMBER(4)
- ------------------------------------------------------------------------------------------------------------------------------------
J. John Canon Trustee 5 7 President and Chairman of the Trustee of Proconex.
(70) Board, Synergistic Partners,
Inc., 1975-1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Stanford N. Phelps Trustee 5 7 Chairman, Clear Springs Land Chairman of: S.N. Phelps
(71) Company, LLC since 1999; Realty LLC, S.N. Phelps &
Chairman, S.N. Phelps Realty Co., Clear Springs Land
LLC since 1994; Chairman, S.N. Company LLC, Investors
Phelps & Co. since 1986. Life Insurance Corp,
Chairman, InvestorsLife Wyatt Energy, Inc.,
Insurance Corp. since 1994; Commonwealth Oil Refining
Chairman, Wyatt Energy, Inc. Company, Realmark
since 1994; Chairman, Holdings.
Commonwealth Oil Refining
Company since 1984; Chairman
Realmark Holdings since 1983.
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas E. Trustee 4 7 Physician, Cleveland Clinic None
Gretter, MD (Health Care) since 1966.
(70)
- ------------------------------------------------------------------------------------------------------------------------------------
James D. Trustee, 5 7 Managing Member, President, CIO None
Oelschlager(5) Chairman and Founder of Oak Associates,
(63) ltd. since 1985.
- ------------------------------------------------------------------------------------------------------------------------------------
John G. Stimpson(5) Trustee 5 7 Director of International Equity Board of Directors,
(63) Sales and Equity Sales Manager, Morgan Stanley Trust
Salomon Brothers (New York) Company from 1988-1993.
from 1985-1993.
- ------------------------------------------------------------------------------------------------------------------------------------
1. Each Trustee may be contacted in writing to the Trustee c/o Oak Associates
Funds, 3875 Embassy Parkway, Suite 250, Akron, OH 44333. Each Officer may be
contacted in writing to the Officer c/o SEI Investments, One Freedom Valley
Drive, Oaks,PA 19456.
2. Each Trustee shall hold office during the lifetime of this Trust until the
election and qualification of his successor, or until he sooner dies, resigns
or is removed in accordance with the Trust's Declaration of Trust.
3. The "Oak Associates Funds Complex" consists of all registered investment
companies for which Oak Associates, ltd. serves as investment adviser. As of
October 31, 2005, the Oak Associates Funds Complex consisted of 7 Funds.
4. Directorships of companies are required to report to the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public
companies") or other investment companies registered under the Investment
Company Act of 1940.
5. Messrs. Oelschlager and Stimpson are considered "interested" persons of the
Trust as that term is defined in the Investment Company Act of 1940. Mr.
Oelschlager is interested by virtue of his controlling ownership interest in
the Adviser. Mr. Stimpson is considered interested because of his family
relationship with an employee of the Adviser.
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51
<page>
Officers of the Trust (unaudited)
NUMBER OF
POSITION LENGTH PORTFOLIOS PRINCIPAL
HELD OF TIME IN FUND OCCUPATION(S) OTHER
WITH SERVED COMPLEX DURING DIRECTORSHIPS
NAME & AGE(1) TRUST (YRS.) OVERSEEN PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
William E. White(2) President 5 N/A Mutual Fund Product Manager of N/A
(40) Oak Associates, ltd. since 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Sandra Noll(2) Vice President 5 N/A Director of Client Services at N/A
(41) and Oak Associates, ltd. since 1998
Assistant and Compliance Officer of Oak
Secretary Associates, ltd., since 1994.
- ------------------------------------------------------------------------------------------------------------------------------------
Leslie Manna(2) Vice President 5 N/A Mutual Fund Coordinator of Oak N/A
(43) and Associates, ltd. since 1995.
Assistant
Secretary
- ------------------------------------------------------------------------------------------------------------------------------------
Eric Kleinschmidt Treasurer and 1 N/A Director, SEI Fund Accounting N/A
(37) Chief Financial since 2004; Manager, SEI Fund
Officer Accounting since 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice President 5 N/A Employed by SEI Investments N/A
(37) and Global Funds Services and SEI
Assistant Investments Distribution Co.
Secretary since 1999; General Counsel,
Vice President and Secretary of
the Administrator since 2001
and Assistant Secretary of the
Distributor since December 1999.
Associate, Dechert (law firm)
from 1997-1999; Associate,
Richter, Miller & Finn (law firm)
from 1994-1997.
- ------------------------------------------------------------------------------------------------------------------------------------
1. Each Officer may be contacted in writing to the Officer c/o SEI Investments,
One Freedom Valley Drive, Oaks,PA 19456.
2. Mr. White and Mmes. Noll and Manna are considered to be "affiliates" of the
Adviser by virtue of their employment by the Adviser.
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<page>
NUMBER OF
POSITION LENGTH PORTFOLIOS PRINCIPAL
HELD OF TIME IN FUND OCCUPATION(S) OTHER
WITH SERVED COMPLEX DURING DIRECTORSHIPS
NAME & AGE(1) TRUST (YRS.) OVERSEEN PAST FIVE YEARS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
James Ndiaye Vice President 1 N/A Employed by SEI Investments N/A
(37) and since 2004. Vice President,
Assistant Deutsche Asset Management
Secretary (2003-2004); Associate,
Morgan, Lewis & Bockius
LLP (2002-2003); Assistant
Vice President, ING Variable
Annuities Group (1999-2000).
- ------------------------------------------------------------------------------------------------------------------------------------
Philip T. Masterson Vice President 1 N/A Employed by SEI Investments N/A
(41) and since 2004. General Counsel,
Assistant CITCO Mutual Fund Services
Secretary (2003-2004); Vice President
and Associate Counsel,
Oppenheimer Funds
(1998-2003).
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Pang Vice President 1 N/A Employed by SEI Investments N/A
(32) and since January 2005. Counsel,
Assistant Caledonian Bank and Trust's
Secretary Mutual Funds Group in 2004;
Counsel, Permal Asset Management
(2001-2004); Associate, Schulte,
Roth and Zabel's Investment
Management Group (2000-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
Sofia A. Rosala Vice President 1 N/A Vice President and Assistant N/A
(31) and Secretary of SEI Investments
Secretary Management Corporation and Vice
President and Assistant Secretary
of SEI Investments Global Funds
Services. Compliance Officer
of SEI Investments (2001-2004).
Account and Product Consultant,
SEI Private Trust Company
(1998-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
For more information regarding the Trustees, please refer to the Statement of
Additional Information, which is available upon request by calling
1-888-462-5386.
www.oakfunds.com
53
<page>
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.
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<page>
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
05/01/05 10/31/05 RATIOS PERIOD*
- ------------------------------------------------------------------------------------------------------------------------------------
White Oak Select Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $ 1,087.80 1.19% $6.26
Hypothetical Fund Return 1,000.00 1,019.21 1.19 6.06
- ------------------------------------------------------------------------------------------------------------------------------------
Rock Oak Core Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,106.20 1.15 6.11
Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85
- ------------------------------------------------------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,129.30 1.15 6.17
Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85
- ------------------------------------------------------------------------------------------------------------------------------------
River Oak Discovery Fund**
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,010.00 1.35 4.53
Hypothetical Fund Return 1,000.00 1,012.20 1.35 4.54
- ------------------------------------------------------------------------------------------------------------------------------------
Red Oak Technology Select Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,097.20 1.15 6.08
Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85
- ------------------------------------------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,051.30 1.15 5.95
Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85
- ------------------------------------------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,117.90 1.15 6.14
Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85
- ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184/365 (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 122/365 (to reflect the
period since the Fund's inception).
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55
<page>
[THIS PAGE INTENTIONALLY LEFT BLANK]
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<page>
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.
<page>
[LOGO OMITTED] OAK ASSOCIATES FUNDS
1-888-462-5386
P.O. Box 219441
Kansas City, MO 64121-9441
www.oakfunds.com
OAK-F-022-13000
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, the principal financial officer, controller or
principal accounting officer, and any other person who performs a similar
function.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant has
at least one audit committee financial expert serving on the audit
committee.
(a)(2) The audit committee financial expert is Stanford Phelps. He is
independent as defined in Form N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fees billed by KPMG LLP Related to the Trust
KPMG LLP billed the Trust aggregate fees for services rendered to the Trust for
the last two fiscal years as follows:
- ------------------ ----------------------------------------------------- -----------------------------------------------------
2005 2004
- ------------------ ----------------------------------------------------- -----------------------------------------------------
All fees and All fees and All other fees All fees and All fees and All other fees
services to the services to and services to services to the services to and services
Trust that were service service Trust that were service to service
pre-approved affiliates affiliates that pre-approved affiliates affiliates that
that were did not require that were did not require
pre-approved pre-approval pre-approved pre-approval
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(a) Audit $ 101,500 N/A N/A $ 72,500 N/A N/A
Fees(1)
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(b) Audit-Related N/A N/A N/A N/A N/A N/A
Fees
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(c) Tax Fees N/A N/A N/A N/A N/A N/A
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(d) All N/A N/A N/A N/A N/A N/A
Other
Fees
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
Notes:
(1) Audit fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided by the
accountant in connection with statutory and regulatory filings.
(e)(1) Not applicable
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to
waiver of pre-approval requirement were as follows:
---------------------------- ----------------- ----------------
2005 2004
---------------------------- ----------------- ----------------
Audit-Related Fees 0% 0%
---------------------------- ----------------- ----------------
Tax Fees 0% 0%
---------------------------- ----------------- ----------------
All Other Fees 0% 0%
---------------------------- ----------------- ----------------
(f) Not applicable
(g) The aggregate non-audit fees and services billed by KPMG LLP for the
last two fiscal years were $0 and $0 for 2005 and 2004, respectively.
(h) Not applicable
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.
The Trust's Nominating Committee will review shareholder recommendations for
nominations to fill vacancies on the Trust's Board of Trustees if such
recommendations are submitted in writing and addressed to the Nominating
Committee at the Trust's office.
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) Code of Ethics attached hereto.
(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: January 20, 2006
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: January 20, 2006
By (Signature and Title)* /S/ ERIC KLEINSCHMIDT
---------------------
Eric Kleinschmidt, Treasurer & CFO
Date: January 20, 2006
* Print the name and title of each signing officer under his or her signature.