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)
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101 Federal Street
Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Leslie Manna
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: 1-888-462-5386
DATE OF FISCAL YEAR END: OCTOBER 31, 2008
DATE OF REPORTING PERIOD: OCTOBER 31, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
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Annual Report
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October 31, 2008
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
[LOGO] OAK ASSOCIATES FUNDS
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[GRAPHIC] To Our Shareholders
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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, 2008, 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.
Many of our shareholders utilize our systematic investment tool, which allows
automatic monthly (or other periodic) investments into the Funds of your choice.
This is a great way to regularly and conveniently dollar cost average
investments in the Funds, while also reducing the impact of market ups and downs
on investment decision-making. A systematic investment plan of $50 or more can
be invested as frequently as you wish.
Our website is a useful tool for setting up a systematic investment plan, as
well as a resource for other account management activities, up-to-date
commentaries and information about each of the seven Oak Associates Funds. Log
on to WWW.OAKFUNDS.COM to use any of these features:
o Access your account balances and transaction history
o Open a new account online
o Make purchases, sales and exchanges in your funds
o Switch to electronic delivery of all documents and go paperless
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
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TABLE OF CONTENTS
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Fund Profiles ............................................................. 2
Financial Highlights ...................................................... 16
Schedules of Investments .................................................. 20
Statements of Assets and Liabilities ...................................... 36
Statements of Operations .................................................. 38
Statements of Changes in Net Assets ....................................... 40
Notes to Financial Statements ............................................. 43
Report of Independent Registered Public Accounting Firm ................... 51
Trustees and Officers of the Trust ........................................ 52
Disclosure of Fund Expenses ............................................... 54
Notice to Shareholders .................................................... 56
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[GRAPHIC] White Oak Select Growth Fund
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OCTOBER 31, 2008
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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.
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White Oak Select Growth Fund ("The Fund") declined 39.50% for the year, while
the comparative index, the S&P 500 Index, declined 36.10%, and the Lipper
Large-Cap Growth Average fell 38.55%.
In last year's report we noted, "We keep thinking the price of oil (and of many
other commodities) will correct as supply and demand adjust -- as they always
have. But the price just keeps moving higher, along with the stocks." The
crowded commodity trade finally did reverse in 2008, sending many of the global
cyclicals -- an area we had largely avoided -- into freefall. We also managed to
steer clear of many of the disasters in the financial sector, such as Bear
Stearns, Lehman Brothers, Washington Mutual, Fannie Mae, and Freddie Mac. We
briefly owned AIG, but suffered minimal damage by exiting the position after new
information about its balance sheet that concerned us was revealed.
Unfortunately, White Oak's heavy weighting in information technology hurt
returns. While we weren't surprised by the global slowdown, we were surprised by
the magnitude of it and the strength of the link between the foreign economies
and U.S. technology stocks.
The Fund's investment in health care provided some nice stability in the
turbulent market. Strong performers for the year included biotech company Amgen,
which saw stabilization in its erythropoietin franchise after safety concerns
had affected sales. The company also had positive clinical trial data in a
promising late-stage drug. Another biotech holding that performed well is
Genzyme, as fears of heightened competition faded and the company posted
consistently strong growth. Pharmacy benefit manager Express Scripts also
performed well on a relative basis, as it continued to benefit from the move
toward generic drugs.
Laggards included networking king Cisco Systems and Internet search giant
Google, both of which had a large weighting in the portfolio and declined due to
concerns about slowing economic growth. Brokerage firm Merrill Lynch also
weighed on performance, as the company reported severe write-downs of mortgage
assets.
Anyone in this business will tell you that this is the most harrowing time they
have experienced in their careers. There are valid reasons that many companies
have seen their market values sharply reduced, but for virtually the entire
market to be marked down by the magnitude it has, suggests to us that the future
of capitalism and our market economy is being called into question. This has
never been a winning bet, and we do not believe it will be this time either.
While there are certainly issues to be concerned about, our bet is that the
system will survive, and that eventually stock prices will reconnect with
company fundamentals.
Jim Oelschlager
Portfolio Manager
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1-888-462-5386 2
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PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
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Average Annual Total Returns
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1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date
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White Oak Select Growth Fund (39.50)% (8.64)% (6.83)% (3.44)% 5.67%*
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S&P 500 Composite Index (36.10)% (5.21)% 0.26% 0.40% 7.25%**
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Lipper Large-Cap Growth
Funds Average (38.55)% (6.97)% (1.58)% (0.71)% 5.54%**
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* Since 8/3/92
** Since 7/31/92
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FUND DATA
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Ticker Symbol WOGSX
Share Price $23.89
Total Net Assets $ 216M
Portfolio Turnover 25%
2008 Capital Gain Distribution None
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TOP 10 HOLDINGS+
1. Charles Schwab 11.07%
2. Amgen 10.40%
3. Cisco Systems 9.47%
4. Amazon.com 7.69%
5. Google, Cl A 7.16%
6. Teva Pharmaceutical Industries ADR 4.87%
7. International Business Machines 4.85%
8. Express Scripts 4.77%
9. Juniper Networks 4.69%
10. Broadcom, Cl A 4.63%
+ Percentages are based on net assets.
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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 10/31/98
[LINE GRAPH]
Initial Investment Date 10/31/98 OCT 99 OCT 00 OCT 01 OCT 02 OCT 03 OCT 04 OCT 05 OCT 06 OCT 07 OCT 08
-------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
White Oak Growth Stock Fund $10,000 $15,652 $22,635 $10,187 $6,848 $10,042 $ 9,264 $ 9,246 $ 9,417 $11,654 $ 7,050
S&P 500 Index $10,000 $12,567 $13,332 $10,012 $8,500 $10,267 $11,235 $12,214 $14,210 $16,279 $10,403
Lipper Large Cap Growth Classification $10,000 $13,587 $15,848 $10,374 $8,606 $10,246 $10,619 $11,753 $12,678 $15,453 $ 9,496
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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.
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3 www.oakfunds.com
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[GRAPHIC] Rock Oak Core Growth Fund
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OCTOBER 31, 2008
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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.
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The Rock Oak Core Growth Fund ("The Fund") fell 43.43% for the fiscal year
ending 10/31/2008. The Fund underperformed the benchmark S&P 500 Index and the
Lipper Large-Cap Growth Funds Average, which declined 36.10% and 38.55%
respectively.
The fiscal year 2008 was an extremely challenging period for the stock market.
Throughout the year, the landscape of Wall Street was changed forever. The
slowing housing market and resultant credit crisis led to the bankruptcy of
Lehman Brothers, the acquisitions of Merrill Lynch, Wachovia Bank and Bear
Stearns, as well as the Federal bailouts of AIG, Freddie Mac and Fannie Mae. At
the root of this financial meltdown was the collapse of the housing market, with
its loose lending standards, aggressive securitization of mortgages and the
leveraging of these assets. The problems transcended both Wall Street and Main
Street. The economic crisis was not contained to the U.S. markets. The unusually
sharp and persistent decline in equities drove major U.S. market indexes down
30% or more, while international markets lost 50%-70%.
Given the bear market that developed in 2008, the performance of the Fund is to
be expected. Its focus on growth stocks, and the relative concentration of the
portfolio compared to the benchmark, can cause the Fund to underperform in
periods of high volatility. Throughout much of the year, the Fund pursued
several risk reduction steps, such as raising cash, reducing outsized positions,
and avoiding high-flying stocks. Despite this, the bear market weighed on the
Fund and its performance.
Exposure to the financial services industry led to much of the underperformance
of the Fund versus the benchmark. Despite trimming shares of investment bank
Goldman Sachs in July, the stock negatively impacted performance, falling 62%
over the last fiscal year. With its rivals disappearing and the global economy
faltering, weakness in Goldman was expected, but the firm remains the best
positioned to not only survive the turmoil on Wall Street, but also to thrive
once stability has returned. In September, investment guru Warren Buffet
purchased a sizable stake in the investment bank. Cognizant Technology Solutions
also fell 54% during the year due to its exposure to the financial services
industry. The IT services company, which receives 50% of its revenues from
financial institutions, suffered from concern over its client base. However, the
company rose to prominence during the last recession and its value proposition
remains strong. Despite the uncertainty surrounding future revenue growth, the
company's valuation and outlook remain attractive.
Going forward, Rock Oak remains focused on growth investing, recognizing that
the markets are likely to be difficult for some time. While this will affect the
near-term volatility, these environments also create excellent long-term buying
opportunities.
Robert Stimpson, CFA
Portfolio Manager
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1-888-462-5386 4
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PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
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Average Annual Total Returns
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1 Year Return 3 Year Return Inception to Date*
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Rock Oak Core Growth Fund (43.43)% (9.01)% (6.88)%
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S&P 500 Composite Index (36.10)% (5.21)% (3.84)%
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Lipper Large-Cap Growth Funds Average (38.55)% (6.97)% (4.80)%
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* Since 12/31/04
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FUND DATA
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Ticker Symbol RCKSX
Share Price $7.28
Total Net Assets $5M
Portfolio Turnover 92%
2008 Capital Gain Distribution $0.57
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TOP 10 HOLDINGS+
1. Genzyme 6.37%
2. Qualcomm 5.45%
3. Apple 4.70%
4. Baxter International 4.22%
5. Cognizant Technology Solutions, Cl A 4.11%
6. Gilead Sciences 3.92%
7. Broadcom, Cl A 3.89%
8. Archer-Daniels-Midland 3.85%
9. Expeditors International Washington 3.63%
10.Oracle 3.52%
+ Percentages are based on net assets.
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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 GRAPH]
Initial Investment Date 12/31/04 OCT 05 OCT 06 OCT 07 OCT 08
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Rock Oak Core Growth Fund $10,000 $10,100 $10,680 $13,450 $7,609
S&P 500 Index $10,000 $10,105 $11,756 $13,468 $8,607
Lipper Large-Cap Growth Funds Classification $10,000 $10,250 $11,057 $13,477 $8,282
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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.
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5 www.oakfunds.com
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[GRAPHIC] Pin Oak Aggressive Stock Fund
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OCTOBER 31, 2008
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PIN OAK AGGRESSIVE STOCK FUND
The Fund invests primarily in common stocks of U.S. companies with medium to
large market capitalizations that are key performers within growing industries.
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Pin Oak Aggressive Stock Fund ("The Fund") declined 43.26% for the year ended
October 31, 2008, while the comparative index, the S&P 500 Index, lost 36.10%
and the Lipper Multi-Cap Growth Average declined 40.47%.
2008 saw the subprime credit crisis turn into an economy-wide credit crunch and
global economic slowdown. Stocks, bonds, real estate, and commodities all
suffered sharp declines. No area has been immune, with the exception of Treasury
paper. While we successfully avoided many of the landmines in the financial
sector and didn't get caught in the commodity bubble that eventually burst, the
aggressive nature of the Fund weighed on performance, as one might expect in
such a difficult environment. As we manage through this historically challenging
period, we have focused on positioning the portfolio to excel when conditions
improve, as they always do eventually. Importantly, the market is forward
looking, which means that stocks will turn long before the economy does.
For the year, relative performance of the Fund was helped by positions in
regional banks TCF Financial and M&T Bank, which were purchased during the year
when the market was not differentiating between financial companies with major
problems and those with minor ones. Also contributing was electronics
manufacturing services company Jabil Circuit, which was added late in the year
and held up relatively well during the market correction.
Underperformers included online travel company Expedia, which suffered from a
sharp decline in travel; Internet portal Yahoo!, which experienced decelerating
advertising revenue and saw Microsoft walk away from a potential merger; and
online auction site eBay, where strong growth in its PayPal unit failed to
offset concerns about slowing growth in its core auction business.
The current market is one of extremes, whether we are talking about returns,
volatility, valuations, valuation spreads or investor sentiment. In our view,
while times are tough and the global and domestic economies have serious issues
to deal with, the world is not ending, and those managers and investors who keep
their head and try to take advantage of the opportunities presented by these
extreme circumstances will be the long-term winners. While some of its actions
have been misplaced, the government is aggressively dealing with the financial
problems we face. The Federal Reserve has dramatically expanded the monetary
base, which should help the economy eventually get back on its feet. Right now,
given the period we are in, few people are thinking about the possibility of a
multi-year period of strong stock returns. While we don't believe in market
timing, we think it is important to remember that bull markets don't start when
everything looks great; they generally start when things look bleak.
Mark Oelschlager, CFA
Portfolio Manager
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1-888-462-5386 6
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PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
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Average Annual Total Returns
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1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date
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Pin Oak Aggressive Stock Fund (43.26)% (9.66)% (4.02)% (3.02)% 3.00%*
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S&P 500 Composite Index (36.10)% (5.21)% 0.26% 0.40% 7.25%**
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Lipper Multi-Cap Growth
Funds Average (40.47)% (6.45)% (0.44)% 1.10% 7.01%**
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* Since 8/3/92
** Since 7/31/92
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FUND DATA
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Ticker Symbol POGSX
Share Price $15.58
Total Net Assets $36M
Portfolio Turnover 38%
2008 Capital Gain Distribution None
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TOP 10 HOLDINGS+
1. Charles Schwab 8.45%
2. Amazon.com 6.48%
3. Broadcom, Cl A 5.92%
4. Yahoo! 5.70%
5. KLA-Tencor 5.38%
6. Interval Leisure Group 5.09%
7. Novellus Systems* 5.06%
8. Cisco Systems 5.06%
9. Expedia 4.78%
10.Jabil Circuit 4.74%
+ Percentages are based on net assets.
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE PIN OAK
AGGRESSIVE STOCK FUND, VERSUS THE S&P 500 COMPOSITE INDEX AND THE LIPPER
MULTI-CAP GROWTH FUNDS AVERAGE, SINCE 10/31/98
[LINE GRAPH]
Initial Investment Date 10/31/98 OCT 99 OCT 00 OCT 01 OCT 02 OCT 03 OCT 04 OCT 05 OCT 06 OCT 07 OCT 08
-------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Pin Oak Aggressive Stock Fund $10,000 $19,057 $32,657 $10,205 $ 5,492 $ 9,034 $ 8,982 $ 9,978 $10,002 $12,967 $ 7,357
S&P 500 Index $10,000 $12,567 $13,332 $10,012 $ 8,500 $10,267 $11,235 $12,214 $14,210 $16,279 $10,403
Lipper Multi-Cap Growth Funds Classification $10,000 $14,736 $18,906 $11,782 $ 9,710 $12,484 $13,183 $14,884 $16,636 $20,583 $12,253
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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.
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7 www.oakfunds.com
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[GRAPHIC] River Oak Discovery Fund
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OCTOBER 31, 2008
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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.
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The River Oak Discovery Fund ("The Fund") fell 45.31% for the fiscal year ending
October 31, 2008. The Fund's performance compares to the benchmark Russell 2000
Growth Index's loss of 37.87% and Lipper Small-Cap Growth peer group category's
42.01% decline.
Small-cap stocks, which are considered to have greater risk, succumbed to higher
levels of risk aversion that developed in the volatile market environment.
Significant monetary action by the Federal Reserve and fiscal stimulus from
Congress failed to thwart the decline and markets remain turbulent. Adding
selling pressure to small-cap stocks was the massive liquidation by hedge funds,
which needed to raise cash levels to meet withdrawals and margin calls. While
the lower interest rate environment and domestic focus of small-cap stocks
insulate the segment somewhat from global issues, the ongoing credit crisis and
economic slowdown create a difficult near-term investment climate.
Strong performance from a handful of holdings helped offset the effects of weak
markets. Their impact to returns, however, was small relative to the broad-based
stock market decline. Emergent Biosolutions rose 38% and was the top contributor
to returns. The maker of biological weapon vaccines has received additional
grants and contracts to supply the US government. It also has a promising
pipeline and is a niche player in the biologics industry. Netease.com gained 9%
over the last year. The China-based Internet company continues to benefit from
the adoption of broadband and the Internet in China. Despite risks to the global
economy, the company remains attractively valued.
Elsewhere in the portfolio, energy-related holdings fell with the rapid decline
in the price of oil. Helix Energy Solutions dropped 77% as spot prices for crude
oil fell 60% from the mid-July high of over $147 per barrel. Despite their small
positions, other energy companies also weighed on performance. Enernoc Inc. fell
85% over the year. In February, the company stated its progress toward
profitability would be delayed. The company, which provides technology to
industrial companies to better regulate and utilize power, remains the leader in
an important technological industry, but concedes its customers will be slow to
spend on new technology due to worsening economic conditions and lower energy
prices.
The global economic slowdown and credit crisis have caused high levels of risk
aversion to persist. When this occurs, small-cap stocks are often out of favor.
Despite attractive valuations and higher exposure to the domestic economy, there
is negative sentiment toward the group; however, this will not last forever and
2008 may well be remembered as an excellent opportunity to buy small-cap stocks.
In the meantime, the Fund will continue to seek innovative companies with a
niche focus, whose futures are predominately independent from the broader
economy.
Robert Stimpson, CFA
Portfolio Manager
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1-888-462-5386 8
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PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
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Average Annual Total Returns
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1 Year Return 3 Year Return Inception to Date*
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River Oak Discovery Fund (45.31)% (7.11)% (6.15)%
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Russell 2000 Growth Index (37.87)% (5.31)% (4.11)%
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Lipper Small-Cap Growth Funds Average (42.01)% (7.64)% (6.14)%
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* Since 6/30/05
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FUND DATA
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Ticker Symbol RIVSX
Share Price $7.86
Total Net Assets $4M
Portfolio Turnover 145%
2008 Capital Gain Distribution $0.40
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TOP 10 HOLDINGS+
1. Illumina 4.22%
2. Factset Research Systems 4.01%
3. Neogen 3.96%
4. Netease.com ADR 3.94%
5. Omniture 3.91%
6. F5 Networks 3.86%
7. Team 3.86%
8. Raven Industries 3.86%
9. Sina 3.82%
10.Emergent Biosolutions 3.77%
+ Percentages are based on net assets.
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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 GRAPH]
Initial Investment Date 6/30/05 OCT 05 OCT 06 OCT 07 OCT 08
------- ------ ------ ------ ------
River Oak Discovery Fund $10,000 $10,100 $11,560 $14,800 $8,094
Russell 2000 Growth Index $10,000 $10,239 $11,986 $13,991 $8,693
Lipper Small-Cap Growth Funds Classification $10,000 $10,228 $11,587 $13,956 $8,093
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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.
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9 www.oakfunds.com
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[GRAPHIC] Red Oak Technology Select Fund
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OCTOBER 31, 2008
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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.
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Red Oak Technology Fund ("The Fund") declined 43.77% for the year ended October
31, 2008, while the comparative index, the NASDAQ 100 Index, which includes
holdings within sectors beyond just technology, lost 40.08%, and the Lipper
Science and Technology Average declined 43.09%.
Tech stocks held up relatively well for much of the year, until it became
apparent that we were headed for a global economic slowdown and investors were
reminded of the sector's cyclicality and volatility. The good news is that
technology companies' capital spending during the up-cycle was restrained,
which, along with their healthy balance sheets, should provide a benefit during
this retrenchment period. In addition, valuations in the sector are compelling,
not only on an absolute basis, but on a relative one as well. Relative free cash
flow yields for tech stocks as a group are at multi-decade highs.
Top performers in the Fund included services and consulting company Accenture
and IT giant IBM, as operational improvement continued at both companies and the
services businesses weathered the economic storm better than did most tech
segments. Another technology services company, Electronic Data Systems,
contributed positively to performance as it was acquired at a premium by
Hewlett-Packard.
Laggards included online travel company Expedia, which suffered from a sharp
decline in travel; online auction site eBay, where strong growth in its PayPal
unit failed to offset concerns about slowing growth in its core auction
business; and Internet portal Yahoo!, which experienced decelerating advertising
revenue and saw Microsoft walk away from a potential merger.
Red Oak has increased its exposure to the semiconductor area, whose secular
growth is currently being obscured by cyclical pressures. Due to its economic
sensitivity, the semi group is usually one of the hardest hit when signs of
economic deceleration appear, but it also tends to be one of the strongest when
the market begins to discount a recovery. The Internet area is also a focus of
the Fund, given the continued migration of commerce online as well as the
structural advantages, strong cash flow, and high returns on capital the
companies enjoy.
Mark Oelschlager, CFA
Portfolio Manager
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1-888-462-5386 10
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PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
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Average Annual Total Returns
-----------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return Inception to Date*
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Red Oak Technology Select Fund (43.77)% (9.10)% (5.59)% (6.96)%
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NASDAQ 100 Index (40.08)% (4.99)% (0.77)% (2.94)%
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Lipper Science & Technology Average (43.09)% (7.67)% (3.21)% (7.85)%
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* Since 12/31/98
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FUND DATA
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Ticker Symbol ROGSX
Share Price $4.92
Total Net Assets $44M
Portfolio Turnover 17%
2008 Capital Gain Distribution None
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TOP 10 HOLDINGS+
1. Accenture, Cl A 6.61%
2. Amazon.com 5.97%
3. Broadcom, Cl A 5.39%
4. Novellus Systems 5.09%
5. Google, Cl A 5.05%
6. National Semiconductor 4.81%
7. eBay 4.78%
8. Cisco Systems 4.56%
9. Yahoo! 4.51%
10.Expedia 4.42%
+ Percentages are based on net assets.
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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 GRAPH]
Initial Investment Date 12/31/98 Oct 99 Oct 00 Oct 01 Oct 02 Oct 03 Oct 04 Oct 05 Oct 06 Oct 07 Oct 08
-------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Red Oak Technology Select Fund $10,000 $16,940 $33,850 $8,450 $4,230 $6,560 $6,300 $6,550 $ 6,900 $ 8,750 $4,920
NASDAQ 100 Index $10,000 $14,374 $17,895 $7,445 $5,402 $7,750 $8,152 $8,693 $ 9,581 $12,441 $7,455
Lipper Science & Technology Funds Objectve $10,000 $15,904 $21,620 $9,022 $6,109 $9,219 $9,185 $9,947 $10,871 $13,743 $7,821
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
11 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Black Oak Emerging Technology Fund
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
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") fell 44.56% during the
fiscal year ending October 31, 2008. The performance bettered the Lipper Global
Science and Technology Average's decline of 47.08%. The NASDAQ 100 Index, which
includes holdings within sectors beyond just technology, fell 40.08%. The
Russell Small-Cap Completeness Growth Technology Index fell 46.40%.
The 2008 credit crisis and global economic slowdown caused high levels of risk
aversion in the market. Given Black Oak's focus on small growth companies with
nascent technologies in emerging fields, it suffered as investors shunned higher
risk strategies. When economic uncertainty increases, more defensive investments
are preferred to higher risk assets. To limit risk, the Fund undertook several
risk reduction steps during the year by increasing its cash position and
market-cap exposure, reducing outsized positions, and avoiding unprofitable
companies. However, in such a difficult market environment, there was really
nowhere to hide. Despite avoiding housing-related sectors and financial
companies, problems in these areas spread throughout the entire market and
dragged nearly every asset class sharply lower.
Over the past year, most of the small-cap growth technology market was down
sharply. A few stocks within Black Oak, along with its risk reduction steps,
helped the Fund outperform the Russell Small-Cap Completeness Growth Technology
Index and its Lipper peer group. Nuance Communications, a communications
software company, gained 21% while held. Activision Inc. gained 15% after the
company was acquired by Vivendi and merged with its gaming division. The
position was then sold to capture the gain, but also to avoid merger integration
issues with the French multimedia company.
Core holdings within the Fund weighed on performance due to their above average
weightings in the portfolio. In particular, Cognizant Technology Solutions
dropped 54% on fears over the sustainability of its 30% growth rate. The
technology-services company receives 50% of its revenues from financial
institutions. Given the sub-prime mortgage problems and global credit crisis,
the stock suffered from its exposure to these clients. However, the company rose
to prominence during the last recession and its value proposition remains
strong. Despite the uncertainty surrounding future revenue growth, the company's
valuation and outlook remain attractive.
Going forward, the Fund will continue to seek emerging technology companies with
strong earnings prospects, while also limiting risk wherever possible. We expect
the near-term investment environment will remain challenging due to the current
global economic slowdown. The lower appetite for risk, which can weigh on the
technology sector and could last for several quarters, may limit near-term
returns. But it also provides excellent long-term buying opportunities for
attractively valued companies.
Robert Stimpson, CFA
Portfolio Manager
- --------------------------------------------------------------------------------
1-888-462-5386 12
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
- --------------------------------------------------------------------------------
Average Annual Total Returns
-------------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return Inception to Date
- ---------------------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (44.56)% (7.36)% (5.91)% (20.66)%*
- ---------------------------------------------------------------------------------------------------------------
NASDAQ 100 Index (40.08)% (4.99)% (0.77)% (6.63)%**
- ---------------------------------------------------------------------------------------------------------------
Russell Small-Cap Completeness
Growth Technology Index++ (46.40)% (5.84)% (5.33)% (13.82)%**
- ---------------------------------------------------------------------------------------------------------------
Lipper Global Science & Technology Average (47.08)% (7.71)% (3.75)% (8.11)%**
- ---------------------------------------------------------------------------------------------------------------
* Since 12/29/00
** Since 12/31/00
- --------------------------------------------------------------------------------
FUND DATA
- --------------------------------------------------------------------------------
Ticker Symbol BOGSX
Share Price $1.63
Total Net Assets $ 19M
Portfolio Turnover 79%
2008 Capital Gain Distribution None
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS+
1. Cerner 5.58%
2. Qualcomm 5.42%
3. Apple 5.41%
4. Cognizant Technology Solutions, Cl A 4.71%
5. F5 Networks 4.61%
6. Formfactor 4.47%
7. Illumina 4.42%
8. Salesforce.com 4.26%
9. Citrix Systems 4.21%
10. Netease.com ADR 4.17%
+ 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,
THE RUSSELL SMALL-CAP COMPLETENESS GROWTH TECHNOLOGY INDEX AND THE
LIPPER GLOBAL SCIENCE & TECHNOLOGY AVERAGE, SINCE 12/29/00
[LINE GRAPH]
Initial Investment Date 12/29/00 OCT 01 OCT 02 OCT 03 OCT 04 OCT 05 OCT 06 OCT 07 OCT 08
-------- ------ ------ ------ ------ ------ ------ ------ ------
Black Oak Emerging Technology Fund $10,000 $2,980 $1,230 $2,210 $2,080 $2,050 $2,210 $2,940 $1,630
NASDAQ 100 Index $10,000 $5,831 $4,231 $6,070 $6,385 $6,809 $7,504 $9,744 $5,839
Russell Small Cap Completeness Growth Technology Index $10,000 $4,341 $2,391 $4,099 $3,528 $3,735 $4,347 $5,816 $3,118
Lipper Global Science & Technology Funds $10,000 $5,676 $3,866 $6,159 $5,960 $6,547 $7,347 $9,737 $5,153
- --------------------------------------------------------------------------------
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.
++ In August 2008, the board approved the index to be added as a secondary
benchmark for the Fund.
- --------------------------------------------------------------------------------
13 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Live Oak Health Sciences Fund
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund ("The Fund") declined 23.61% for the year ended
October 31, 2008, while the comparative index, the S&P 500 Health Care Index,
lost 23.95%, and the Lipper Health & Biotechnology Average declined 24.40%.
In last year's annual report we wrote, "If the U.S. economy moves into
recession, health care companies may draw increased investor interest due to
their stability." While not completely insulated from a slowing economy and the
carnage in the market over the past year, the health care sector weathered the
storm better than did the majority of the market. This is to be expected in
times of stress, as investors flock to the greater predictability and stability
inherent in the earnings streams of businesses such as pharmaceuticals,
services, and even large biotech.
The Fund's commitment to the biopharmaceutical area benefitted performance, as
did our avoidance of health care facilities, which suffered a severe drubbing.
Unfortunately, our life science tools holdings weighed on performance as
concerns arose over shrinking research budgets. We still believe this is an area
with strong long-term fundamentals.
Top performers included institutional pharmacy services company PharMerica,
which improved margins in its first full year following its spinoff from its
parent; biotech titan Amgen, which stabilized the erosion in its anti-anemia
franchise and announced positive clinical data on its osteoarthritis drug in
late-stage development; and life science tools provider Techne, whose hematology
products, purified proteins and other reagents remained in high demand by
researchers.
Laggards included gene-chip microarray company Affymetrix, who lost market share
in its core business; managed care company UnitedHealth Group, which, along with
its competitors, suffered from slowing enrollment growth and higher claims; and
life science tools company Invitrogen, which agreed to acquire equipment maker
Applied Biosystems.
If the market continues to struggle, health care should perform well on a
relative basis. Health care is a broad sector, and we have positioned the
portfolio so that it combines the stability of certain segments with the upside
of the stronger growth areas. The political environment is always a
consideration, and with the change in administration there may be legislative
changes in the next year or two that affect some companies. Of course this has
been largely discounted, so effects on stock prices will come to the degree the
new legislation differs from what is expected.
Mark Oelschlager, CFA
Portfolio Manager
- --------------------------------------------------------------------------------
1-888-462-5386 14
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2008.
- --------------------------------------------------------------------------------
Average Annual Total Returns
--------------------------------------------------------------------
1 Year Return 3 Year Return 5 Year Return Inception to Date
- --------------------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund (23.61)% (6.67)% 0.51% (0.73)%*
- --------------------------------------------------------------------------------------------------------------
S&P 500 Health Care Index (23.95)% (2.21)% 0.84% (0.80)%**
- --------------------------------------------------------------------------------------------------------------
Lipper Health & Biotechnology Average (24.40)% (2.77)% 2.72% 0.48%**
- --------------------------------------------------------------------------------------------------------------
* Since 6/29/01
** Since 6/30/01
- --------------------------------------------------------------------------------
FUND DATA
- --------------------------------------------------------------------------------
Ticker Symbol LOGSX
Share Price $9.48
Total Net Assets $ 14M
Portfolio Turnover 25%
2008 Capital Gain Distribution None
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS+
1. Amgen 8.76%
2. Watson Pharmaceuticals 5.86%
3. Teva Pharmaceutical Industries ADR 5.81%
4. Covidien 5.18%
5. AmerisourceBergen 5.00%
6. Invitrogen 4.75%
7. PharMerica 4.53%
8. Cardinal Health 4.53%
9. Pfizer 4.42%
10. WellPoint 4.38%
+ 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 6/29/01
[LINE GRAPH]
Initial Investment Date 6/29/01 OCT 01 OCT 02 OCT 03 OCT 04 OCT 05 OCT 06 OCT 07 OCT 08
------- ------ ------ ------ ------ ------ ------ ------ ------
Live Oak Health Sciences Fund $10,000 $10,240 $7,830 $9,240 $9,440 $11,660 $11,180 $12,410 $ 9,480
S&P 500 Health Care Index $10,000 $10,263 $8,536 $9,042 $9,200 $10,080 $11,224 $12,396 $ 9,428
Lipper Health & Biotechnology Funds Objective $10,000 $ 9,448 $7,319 $9,011 $9,682 $11,265 $12,178 $13,705 $10,361
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
15 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Financial Highlights
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS OR PERIODS ENDED OCTOBER 31,
REALIZED AND DIVIDENDS
NET ASSET NET UNREALIZED FROM DISTRIBUTIONS TOTAL
VALUE INVESTMENT GAINS OR TOTAL NET FROM DIVIDENDS
BEGINNING INCOME (LOSSES) ON FROM INVESTMENT CAPITAL AND
OF PERIOD (LOSS) SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
WHITE OAK SELECT GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------
2008 $ 39.49 $ (0.23)# $ (15.37) $ (15.60) $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------
2007 31.91 (0.12)# 7.70 7.58 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2006 31.35 (0.13)# 0.71 0.58 (0.02) -- (0.02)
- ------------------------------------------------------------------------------------------------------------------------
2005 31.41 0.01#++ (0.07)## (0.06) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2004 34.05 (0.19) (2.45) (2.64) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
ROCK OAK CORE GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------
2008 $ 13.45 $ (0.06)# $ (5.54) $ (5.60) $ -- $ (0.57) $ (0.57)
- ------------------------------------------------------------------------------------------------------------------------
2007 10.68 (0.07)# 2.84 2.77 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2006 10.10 (0.06)# 0.64 0.58 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2005(1) 10.00 (0.05)# 0.15 0.10 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
PIN OAK AGGRESSIVE STOCK FUND
- ------------------------------------------------------------------------------------------------------------------------
2008 $ 27.46 $ (0.08)# $ (11.80) $ (11.88) $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------
2007 21.18 (0.12)# 6.40 6.28 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2006 21.13 (0.16)# 0.21 0.05 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2005 19.02 (0.16)# 2.27 2.11 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2004 19.13 (0.17) 0.06 (0.11) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
RIVER OAK DISCOVERY FUND
- ------------------------------------------------------------------------------------------------------------------------
2008 $ 14.80 $ (0.08)# $ (6.46) $ (6.54) $ -- $ (0.40) $ (0.40)
- ------------------------------------------------------------------------------------------------------------------------
2007 11.56 (0.12)# 3.36 3.24 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2006 10.10 (0.09)# 1.55 1.46 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2005(2) 10.00 (0.03)# 0.13 0.10 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
RED OAK TECHNOLOGY SELECT FUND
- ------------------------------------------------------------------------------------------------------------------------
2008 $ 8.75 $ (0.06)# $ (3.77) $ (3.83) $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------
2007 6.90 (0.03)# 1.88 1.85 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2006 6.55 (0.06)# 0.41 0.35 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2005 6.30 (0.03)#+++ 0.28 0.25 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
2004 6.56 (0.08) (0.18) (0.26) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
1-888-462-5386 16
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIO OF
EXPENSES
RATIO OF RATIO OF TO AVERAGE
NET EXPENSES NET ASSETS
NET NET INVESTMENT TO AVERAGE (EXCLUDING
ASSET ASSETS RATIO OF INCOME NET ASSETS WAIVERS
VALUE END OF EXPENSES (LOSS) (EXCLUDING AND/OR PORTFOLIO
END OF TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER
PERIOD RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE
- -----------------------------------------------------------------------------------------------------------------------------
WHITE OAK SELECT GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------
2008 $23.89 (39.50)% $ 215,862 1.25% (0.70)% 1.25% 1.41% 25%
- -----------------------------------------------------------------------------------------------------------------------------
2007 39.49 23.75 439,978 1.25 (0.34) 1.25 1.28 29
- -----------------------------------------------------------------------------------------------------------------------------
2006 31.91 1.85 538,516 1.19 (0.42) 1.20 1.20 52
- -----------------------------------------------------------------------------------------------------------------------------
2005 31.35 (0.19) 878,709 1.14 0.04++ 1.14 1.14 36
- -----------------------------------------------------------------------------------------------------------------------------
2004 31.41 (7.75) 1,569,899 1.07 (0.47) 1.07 1.07 16
- -----------------------------------------------------------------------------------------------------------------------------
ROCK OAK CORE GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------------------
2008 $ 7.28 (43.43)% $ 4,571 1.25% (0.53)% 1.25% 1.56% 92%
- -----------------------------------------------------------------------------------------------------------------------------
2007 13.45 25.94 8,389 1.25 (0.57) 1.25 1.46 86
- -----------------------------------------------------------------------------------------------------------------------------
2006 10.68 5.74 9,688 1.22 (0.54) 1.22 1.44 88
- -----------------------------------------------------------------------------------------------------------------------------
2005(1) 10.10 1.00 10,560 1.15 (0.67) 1.15 1.89 45
- -----------------------------------------------------------------------------------------------------------------------------
PIN OAK AGGRESSIVE STOCK FUND
- -----------------------------------------------------------------------------------------------------------------------------
2008 $15.58 (43.26)% $ 36,198 1.25% (0.34)% 1.25% 1.51% 38%
- -----------------------------------------------------------------------------------------------------------------------------
2007 27.46 29.65 90,901 1.25 (0.50) 1.25 1.35 18
- -----------------------------------------------------------------------------------------------------------------------------
2006 21.18 0.24 92,549 1.21 (0.74) 1.21 1.27 20
- -----------------------------------------------------------------------------------------------------------------------------
2005 21.13 11.09 139,379 1.15 (0.78) 1.15 1.22 28
- -----------------------------------------------------------------------------------------------------------------------------
2004 19.02 (0.58) 190,839 1.15 (0.80) 1.15 1.17 21
- -----------------------------------------------------------------------------------------------------------------------------
RIVER OAK DISCOVERY FUND
- -----------------------------------------------------------------------------------------------------------------------------
2008 $ 7.86 (45.31)% $ 4,168 1.35% (0.68)% 1.35% 1.76% 145%
- -----------------------------------------------------------------------------------------------------------------------------
2007 14.80 28.03 7,823 1.35 (0.92) 1.35 1.72 148
- -----------------------------------------------------------------------------------------------------------------------------
2006 11.56 14.46 5,943 1.35 (0.81) 1.35 2.74 72
- -----------------------------------------------------------------------------------------------------------------------------
2005(2) 10.10 1.00 3,063 1.35 (0.79) 1.35 4.05 16
- -----------------------------------------------------------------------------------------------------------------------------
RED OAK TECHNOLOGY SELECT FUND
- -----------------------------------------------------------------------------------------------------------------------------
2008 $ 4.92 (43.77)% $ 44,079 1.35% (0.80)% 1.35% 1.58% 17%
- -----------------------------------------------------------------------------------------------------------------------------
2007 8.75 26.81 115,005 1.35 (0.40) 1.35 1.40 11
- -----------------------------------------------------------------------------------------------------------------------------
2006 6.90 5.34 116,449 1.27 (0.89) 1.27 1.34 93
- -----------------------------------------------------------------------------------------------------------------------------
2005 6.55 3.97 160,881 1.15 (0.50)+++ 1.15 1.27 40
- -----------------------------------------------------------------------------------------------------------------------------
2004 6.30 (3.96) 244,848 1.15 (1.01) 1.15 1.20 38
- -----------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
17 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Financial Highlights
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED OCTOBER 31,
REALIZED AND DIVIDENDS NET
NET ASSET UNREALIZED FROM TOTAL ASSET
VALUE NET GAINS OR TOTAL NET DIVIDENDS VALUE
BEGINNING INVESTMENT (LOSSES) ON FROM INVESTMENT AND END OF
OF PERIOD LOSS SECURITIES OPERATIONS INCOME DISTRIBUTIONS PERIOD
- ---------------------------------------------------------------------------------------------------------------------------------
BLACK OAK EMERGING TECHNOLOGY FUND
- ---------------------------------------------------------------------------------------------------------------------------------
2008 $ 2.94 $ (0.02)# $ (1.29) $(1.31) $ -- $ -- $ 1.63
- ---------------------------------------------------------------------------------------------------------------------------------
2007 2.21 (0.03)# 0.76 0.73 -- -- 2.94
- ---------------------------------------------------------------------------------------------------------------------------------
2006 2.05 (0.02)# 0.18 0.16 -- -- 2.21
- ---------------------------------------------------------------------------------------------------------------------------------
2005 2.08 (0.02)# (0.01)## (0.03) -- -- 2.05
- ---------------------------------------------------------------------------------------------------------------------------------
2004 2.21 (0.03) (0.10) (0.13) -- -- 2.08
- ---------------------------------------------------------------------------------------------------------------------------------
LIVE OAK HEALTH SCIENCES FUND
- ---------------------------------------------------------------------------------------------------------------------------------
2008 $ 12.41 $ (0.04)# $ (2.89) $(2.93) $ -- $ -- $ 9.48
- ---------------------------------------------------------------------------------------------------------------------------------
2007 11.18 (0.01)# 1.24 1.23 -- -- 12.41
- ---------------------------------------------------------------------------------------------------------------------------------
2006 11.66 (0.07)# (0.41) (0.48) -- -- 11.18
- ---------------------------------------------------------------------------------------------------------------------------------
2005 9.44 (0.07)# 2.29 2.22 -- -- 11.66
- ---------------------------------------------------------------------------------------------------------------------------------
2004 9.24 (0.07) 0.27 0.20 -- -- 9.44
- ---------------------------------------------------------------------------------------------------------------------------------
# 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 INVESTMENT 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 INVESMENT INCOME RATION
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.
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 WAIVERS 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
- -------------------------------------------------------------------------------------------------------------------------------
2008 (44.56)% $ 19,478 1.35% (0.94)% 1.35% 1.76% 79%
- -------------------------------------------------------------------------------------------------------------------------------
2007 33.03 39,810 1.35 (1.04) 1.35 1.62 76
- -------------------------------------------------------------------------------------------------------------------------------
2006 7.80 39,617 1.28 (1.13) 1.28 1.53 97
- -------------------------------------------------------------------------------------------------------------------------------
2005 (1.44) 48,901 1.15 (1.13) 1.15 1.41 30
- -------------------------------------------------------------------------------------------------------------------------------
2004 (5.88) 72,093 1.15 (1.14) 1.15 1.33 34
- -------------------------------------------------------------------------------------------------------------------------------
LIVE OAK HEALTH SCIENCES FUND
- -------------------------------------------------------------------------------------------------------------------------------
2008 (23.61)% $ 14,013 1.35% (0.36)% 1.35% 1.52% 25%
- -------------------------------------------------------------------------------------------------------------------------------
2007 11.00 21,354 1.35 (0.11) 1.35 1.37 28
- -------------------------------------------------------------------------------------------------------------------------------
2006 (4.12) 25,263 1.21 (0.59) 1.21 1.23 57
- -------------------------------------------------------------------------------------------------------------------------------
2005 23.52 36,304 1.15 (0.66) 1.15 1.22 16
- -------------------------------------------------------------------------------------------------------------------------------
2004 2.16 26,226 1.15 (0.75) 1.15 1.19 4
- -------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
19 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
White Oak Select Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Computer Systems & Software 37.1%
Health Care 21.0%
Telecommunications & Data Communications Equipment 15.3%
Financials 12.8%
Semiconductors & Electronics 12.8%
Repurchase Agreement 0.9%
+ 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 -- 99.0%++
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE -- 37.1%
- --------------------------------------------------------------------------------
Amazon.com* 290,000 $ 16,600
Cognizant Technology Solutions, Cl A* 500,000 9,600
Dell* 400,000 4,860
eBay* 535,000 8,169
Google, Cl A* 43,000 15,452
International Business Machines 112,500 10,459
Salesforce.com* 295,000 9,133
Yahoo!* 450,000 5,769
-----------
80,042
-----------
- --------------------------------------------------------------------------------
FINANCIALS -- 12.8%
- --------------------------------------------------------------------------------
Charles Schwab 1,250,000 23,900
Legg Mason 165,000 3,661
-----------
27,561
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
HEALTH CARE -- 21.0%
- --------------------------------------------------------------------------------
Amgen* 375,000 $ 22,459
Express Scripts* 170,000 10,304
Teva Pharmaceutical Industries ADR 245,000 10,506
UnitedHealth Group 90,000 2,136
-----------
45,405
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & ELECTRONICS -- 12.8%
- --------------------------------------------------------------------------------
Applied Materials 665,000 8,585
Broadcom, Cl A* 585,000 9,992
KLA-Tencor 390,000 9,067
-----------
27,644
-----------
- --------------------------------------------------------------------------------
1-888-462-5386 20
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
White Oak Select Growth Fund (CONCLUDED)
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS & DATA
COMMUNICATIONS EQUIPMENT -- 15.3%
- --------------------------------------------------------------------------------
Cisco Systems* 1,150,000 $ 20,436
Juniper Networks* 540,000 10,120
Sprint Nextel 800,000 2,504
-----------
33,060
-----------
TOTAL COMMON STOCK
(Cost $243,632)(000) 213,712
-----------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.9%
- --------------------------------------------------------------------------------
Morgan Stanley (A)
0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$1,990,395 (collateralized by a U.S. Treasury
Bond, par value $1,501,533, 8.500%, 02/15/20;
total market value: $2,030,076) $ 1,990 1,990
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,990)(000) 1,990
-----------
TOTAL INVESTMENTS -- 99.9%
(Cost $245,622)(000) $ 215,702
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $215,861,942.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
++ MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
21 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Computer Systems & Software 25.3%
Health Care 18.9%
Semiconductors & Electronics 11.8%
Financials 10.8%
Telecommunications & Data Communications Equipment 6.5%
Transportation 5.4%
Energy 5.0%
Industrials 4.8%
Basic Materials 3.9%
Consumer Cyclicals 3.3%
Capital Goods 3.3%
Repurchase Agreement 1.5%
+ 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 -- 99.0%++
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 3.9%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 8,500 $ 176
-----------
176
-----------
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 3.3%
- --------------------------------------------------------------------------------
ITT 3,300 147
Nucor 100 4
-----------
151
-----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE -- 25.3%
- --------------------------------------------------------------------------------
Amazon.com* 2,500 143
Apple* 2,000 215
Cerner* 3,000 112
Cognizant Technology Solutions, Cl A* 9,800 188
eBay* 5,300 81
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE (CONTINUED)
- --------------------------------------------------------------------------------
Google, Cl A* 300 $ 108
Oracle* 8,800 161
Salesforce.com* 4,800 149
-----------
1,157
-----------
- --------------------------------------------------------------------------------
CONSUMER CYCLICALS -- 3.3%
- --------------------------------------------------------------------------------
International Game Technology 10,700 150
-----------
150
-----------
- --------------------------------------------------------------------------------
ENERGY -- 5.0%
- --------------------------------------------------------------------------------
National Oilwell Varco* 1,800 54
Schlumberger 1,700 88
Weatherford International* 2,800 47
XTO Energy 1,100 39
-----------
228
-----------
- --------------------------------------------------------------------------------
1-888-462-5386 22
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Rock Oak Core Growth Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIALS -- 10.8%
- --------------------------------------------------------------------------------
American Express 4,800 $ 132
CME Group 400 113
Goldman Sachs Group 1,200 111
Legg Mason 6,200 138
-----------
494
-----------
- --------------------------------------------------------------------------------
HEALTH CARE -- 18.9%
- --------------------------------------------------------------------------------
Baxter International 3,200 193
Genzyme* 4,000 291
Gilead Sciences* 3,900 179
Intuitive Surgical* 750 130
UnitedHealth Group 3,000 71
-----------
864
-----------
- --------------------------------------------------------------------------------
INDUSTRIALS -- 4.8%
- --------------------------------------------------------------------------------
Jacobs Engineering Group* 2,500 91
Thermo Fisher Scientific* 3,200 130
-----------
221
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & ELECTRONICS -- 11.8%
- --------------------------------------------------------------------------------
Applied Materials 500 6
Broadcom, Cl A* 10,400 178
Corning 9,700 105
Qualcomm 6,500 249
-----------
538
-----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS & DATA
COMMUNICATIONS EQUIPMENT -- 6.5%
- --------------------------------------------------------------------------------
Cisco Systems* 8,200 146
Research In Motion* 3,000 151
-----------
297
-----------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRANSPORTATION -- 5.4%
- --------------------------------------------------------------------------------
Expeditors International Washington 5,100 $ 166
Kansas City Southern* 2,700 83
-----------
249
-----------
TOTAL COMMON STOCK
(Cost $5,480)(000) 4,525
-----------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.5%
- --------------------------------------------------------------------------------
Morgan Stanley (A)
0.750%, dated 10/31/08, to be repurchased on
11/03/08, repurchase price $67,639
(collateralized by a U.S. Treasury Bond, par
value $51,026, 8.500%, 02/15/20; total market
value: $68,988) $ 68 68
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $68)(000) 68
-----------
TOTAL INVESTMENTS -- 100.5%
(Cost $5,548)(000) $ 4,593
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $4,570,604.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
++ MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
23 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Computer Systems & Software 32.2%
Semiconductors & Electronics 29.7%
Consumer Discretionary 13.1%
Financials 12.0%
Consumer Cyclicals 6.8%
Retail 5.5%
Repurchase Agreement 1.0%
Health Care 0.1%
+ Percentages are based on net assets. Included in net assets are other
assets and liabilities of (0.4)%.
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.4%++
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE -- 32.2%
- --------------------------------------------------------------------------------
Amazon.com* 41,000 $ 2,347
eBay* 112,000 1,710
Expedia* 182,000 1,731
Google, Cl A* 4,530 1,628
HSN* 168,940 1,039
IAC/InterActive* 67,350 1,129
Yahoo!* 161,000 2,064
-----------
11,648
-----------
- --------------------------------------------------------------------------------
CONSUMER CYCLICALS -- 6.8%
- --------------------------------------------------------------------------------
Interval Leisure Group* 254,021 1,844
Ticketmaster Entertainment* 64,940 628
-----------
2,472
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 13.1%
- --------------------------------------------------------------------------------
Gannett 112,000 $ 1,232
Cisco Systems* 103,000 1,830
Juniper Networks* 89,000 1,668
-----------
4,730
-----------
- --------------------------------------------------------------------------------
FINANCIALS -- 12.0%
- --------------------------------------------------------------------------------
Charles Schwab 160,000 3,059
Morgan Stanley 15,000 262
TCF Financial 57,225 1,015
Tree.com* 4,490 12
-----------
4,348
-----------
- --------------------------------------------------------------------------------
HEALTH CARE -- 0.1%
- --------------------------------------------------------------------------------
Cell Genesys* 47,083 11
-----------
11
-----------
- --------------------------------------------------------------------------------
1-888-462-5386 24
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RETAIL -- 5.5%
- --------------------------------------------------------------------------------
Blue Nile* 33,718 $ 1,031
Tiffany 35,000 961
-----------
1,992
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & ELECTRONICS -- 29.7%
- --------------------------------------------------------------------------------
Applied Materials 91,000 1,175
Broadcom, Cl A* 125,500 2,143
Jabil Circuit 204,000 1,716
KLA-Tencor 83,700 1,946
Novellus Systems* 116,000 1,833
PMC-Sierra* 81,000 379
Xilinx 85,000 1,566
-----------
10,758
-----------
TOTAL COMMON STOCK
(Cost $40,200)(000) 35,959
-----------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.0%
- --------------------------------------------------------------------------------
Morgan Stanley (A) 0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$371,080 (collateralized by a U.S. Treasury
Bond, par value $279,939, 8.500%, 02/15/20;
total market value: $378,478) $ 371 $ 371
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $371)(000) 371
-----------
TOTAL INVESTMENTS -- 100.4%
(Cost $40,571)(000) $ 36,330
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $36,198,375.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
++ MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
25 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
River Oak Discovery Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Computer Systems & Software 31.1%
Health Care 20.7%
Industrials 8.1%
Semiconductors & Electronics 7.4%
Retail 6.2%
Capital Goods 6.1%
Telecommunications & Data Communications Equipment 5.0%
Energy 5.0%
Consumer Cyclicals 2.7%
Financials 2.4%
Repurchase Agreement 2.0%
Basic Materials 1.9%
+ Percentages are based on net assets. Included in net assets are other
assets and liabilities of 1.4%.
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.6%++
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 1.9%
- --------------------------------------------------------------------------------
Polypore International* 9,400 $ 80
-----------
80
-----------
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
- --------------------------------------------------------------------------------
Alliant Techsystems* 1,400 116
Greif, Cl A 3,400 138
-----------
254
-----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE -- 31.1%
- --------------------------------------------------------------------------------
F5 Networks* 6,500 161
Factset Research Systems 4,300 167
Gmarket ADR* 8,600 150
Itron* 2,900 141
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS & SOFTWARE (CONTINUED)
- --------------------------------------------------------------------------------
MercadoLibre* 7,000 $ 96
Netease.com ADR* 7,300 164
Omniture* 14,200 163
Patni Computer Systems ADR 16,400 95
Sina* 4,900 159
-----------
1,296
-----------
- --------------------------------------------------------------------------------
CONSUMER CYCLICALS -- 2.7%
- --------------------------------------------------------------------------------
WMS Industries* 4,500 113
-----------
113
-----------
- --------------------------------------------------------------------------------
ENERGY -- 5.0%
- --------------------------------------------------------------------------------
CARBO Ceramics 1,200 52
Helix Energy Solutions Group* 4,000 42
- --------------------------------------------------------------------------------
1-888-462-5386 26
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
River Oak Discovery Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ENERGY (CONTINUED)
- --------------------------------------------------------------------------------
Oceaneering International* 1,900 $ 54
Willbros Group* 4,000 62
-----------
210
-----------
- --------------------------------------------------------------------------------
FINANCIALS -- 2.4%
- --------------------------------------------------------------------------------
Morningstar* 2,700 101
-----------
101
-----------
- --------------------------------------------------------------------------------
HEALTH CARE -- 20.7%
- --------------------------------------------------------------------------------
Conceptus* 6,200 100
Emergent Biosolutions* 8,700 157
Icon ADR* 4,500 114
Illumina* 5,700 176
Integra Lifesciences* 4,000 150
Neogen* 5,600 165
-----------
862
-----------
- --------------------------------------------------------------------------------
INDUSTRIALS -- 8.1%
- --------------------------------------------------------------------------------
OYO Geospace* 500 14
Raven Industries 5,000 161
Team* 5,800 161
-----------
336
-----------
- --------------------------------------------------------------------------------
RETAIL -- 6.2%
- --------------------------------------------------------------------------------
Blue Nile* 4,400 135
Gymboree* 4,700 122
-----------
257
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & ELECTRONICS -- 7.4%
- --------------------------------------------------------------------------------
Evergreen Solar* 10,700 41
Formfactor* 8,000 139
Varian Semiconductor Equipment Associates* 6,650 130
-----------
310
-----------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS & DATA COMMUNICATIONS EQUIPMENT -- 5.0%
- --------------------------------------------------------------------------------
Ctrip.com International ADR 4,200 $ 128
EnerNOC* 6,200 41
Viasat* 2,100 38
-----------
207
-----------
TOTAL COMMON STOCK
(Cost $5,392)(000) 4,026
-----------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.0%
- --------------------------------------------------------------------------------
Morgan Stanley (A) 0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$83,071 (collateralized by a U.S. Treasury
Bond, par value $62,668, 8.500%, 02/15/20; total
market value: $84,728) $ 83 83
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $83)(000) 83
-----------
TOTAL INVESTMENTS -- 98.6%
(Cost $5,475)(000) $ 4,109
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $4,168,351.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
++ MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
27 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Semiconductors & Related Devices 20.2%
E-Commerce - Services 15.6%
Semiconductor Capital Equipment 11.9%
Web Portals/ISP 9.6%
Electronic Computers 9.2%
Computer Communications Equipment 8.0%
Consulting Services 6.6%
Computer Peripheral Equipment 4.3%
Services - Prepackaged Software 3.7%
Television Broadcasting Stations 2.7%
Retail - Jewelry Stores 2.2%
Computer Storage Devices 1.8%
Date Storage 1.6%
Consumer Wireless Devices 1.0%
Repurchase Agreement 0.7%
Amusement & Recreation Services 0.6%
Membership Organizations 0.5%
+ 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 -- 99.5%
- --------------------------------------------------------------------------------
AMUSEMENT & RECREATION SERVICES -- 0.6%
- --------------------------------------------------------------------------------
Ticketmaster Entertainment* 28,400 $ 275
-----------
275
-----------
- --------------------------------------------------------------------------------
COMPUTER COMMUNICATIONS EQUIPMENT -- 8.0%
- --------------------------------------------------------------------------------
Cisco Systems* 113,000 2,008
Juniper Networks* 82,000 1,537
-----------
3,545
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER PERIPHERAL EQUIPMENT -- 4.3%
- --------------------------------------------------------------------------------
Lexmark International, Cl A* 73,000 $ 1,886
-----------
1,886
-----------
- --------------------------------------------------------------------------------
COMPUTER STORAGE DEVICES -- 1.8%
- --------------------------------------------------------------------------------
Seagate Technology 117,000 792
-----------
792
-----------
- --------------------------------------------------------------------------------
CONSULTING SERVICES -- 6.6%
- --------------------------------------------------------------------------------
Accenture, Cl A 88,200 2,915
-----------
2,915
-----------
- --------------------------------------------------------------------------------
1-888-462-5386 28
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSUMER WIRELESS DEVICES -- 1.0%
- --------------------------------------------------------------------------------
Motorola 81,000 $ 435
-----------
435
-----------
- --------------------------------------------------------------------------------
DATA STORAGE -- 1.6%
- --------------------------------------------------------------------------------
NetApp* 53,000 717
-----------
717
-----------
- --------------------------------------------------------------------------------
E-COMMERCE - SERVICES -- 15.6%
- --------------------------------------------------------------------------------
Amazon.com* 46,000 2,633
eBay* 138,000 2,107
Expedia* 205,000 1,950
HSN* 28,400 175
-----------
6,865
-----------
- --------------------------------------------------------------------------------
ELECTRONIC COMPUTERS -- 9.2%
- --------------------------------------------------------------------------------
Apple* 12,000 1,291
Dell* 70,000 851
International Business Machines 20,500 1,906
-----------
4,048
-----------
- --------------------------------------------------------------------------------
MEMBERSHIP ORGANIZATIONS -- 0.5%
- --------------------------------------------------------------------------------
Interval Leisure Group* 28,400 206
-----------
206
-----------
- --------------------------------------------------------------------------------
PERSONAL CREDIT INSTITUTIONS -- 0.0%
- --------------------------------------------------------------------------------
Tree.com* 4,733 13
-----------
13
-----------
- --------------------------------------------------------------------------------
RETAIL - JEWELRY STORES -- 2.2%
- --------------------------------------------------------------------------------
Blue Nile* 31,506 963
-----------
963
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMICONDUCTOR CAPITAL EQUIPMENT -- 11.9%
- --------------------------------------------------------------------------------
Applied Materials 90,000 $ 1,162
KLA-Tencor 80,000 1,860
Novellus Systems* 142,000 2,244
-----------
5,266
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 20.2%
- --------------------------------------------------------------------------------
Broadcom, Cl A* 139,000 2,374
Intersil, Cl A 22,000 301
National Semiconductor 161,000 2,120
Taiwan Semiconductor Manufacturing ADR 117,310 969
Texas Instruments 72,000 1,408
Xilinx 94,000 1,731
-----------
8,903
-----------
- --------------------------------------------------------------------------------
SERVICES - PREPACKAGED SOFTWARE -- 3.7%
- --------------------------------------------------------------------------------
BMC Software* 26,700 689
Symantec* 75,000 944
-----------
1,633
-----------
- --------------------------------------------------------------------------------
TELEVISION BROADCASTING STATIONS -- 2.7%
- --------------------------------------------------------------------------------
IAC/InterActive* 71,000 1,190
-----------
1,190
-----------
- --------------------------------------------------------------------------------
WEB PORTALS/ISP -- 9.6%
- --------------------------------------------------------------------------------
Google, Cl A* 6,200 2,228
Yahoo!* 155,100 1,988
-----------
4,216
-----------
TOTAL COMMON STOCK
(Cost $58,289)(000) 43,868
-----------
- --------------------------------------------------------------------------------
29 www.oakfunds.com
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Red Oak Technology Select Fund (CONCLUDED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.7%
- --------------------------------------------------------------------------------
Morgan Stanley (A) 0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$287,821 (collateralized by a U.S. Treasury
Bond, par value $217,129, 8.500%, 02/15/20;
total market value: $293,559) $ 288 $ 288
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $288)(000) 288
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $58,577)(000) $ 44,156
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $44,079,468.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
ISP -- INTERNET SERVICE PROVIDER
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
1-888-462-5386 30
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Semiconductors & Related Devices 16.1%
Services - Prepackaged Software 13.0%
Systems - Computer Integrated Systems Design 12.4%
Services - Computer Programming Services 10.8%
Web Portals/ISP 8.0%
E-Commerce - Services 5.9%
Electronic Computers 5.4%
Amusement and Recreational Services 5.4%
Laboratory Analytical Instruments 4.4%
Consumer Wireless Devices 3.7%
Surgical & Medical Instruments & Apparatus 3.6%
Fiber Optic Components 3.5%
Services - Business Services 3.0%
In Vitro & In Vivo Diagnostic Substances 2.7%
Repurchase Agreement 2.4%
+ 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 -- 97.9%
- --------------------------------------------------------------------------------
AMUSEMENT AND RECREATIONAL SERVICES -- 5.4%
- --------------------------------------------------------------------------------
International Game Technology 35,300 $ 494
WMS Industries* 22,300 558
-----------
1,052
-----------
- --------------------------------------------------------------------------------
CONSUMER WIRELESS DEVICES -- 3.7%
- --------------------------------------------------------------------------------
Research In Motion* 14,100 711
-----------
711
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
E-COMMERCE - SERVICES -- 5.9%
- --------------------------------------------------------------------------------
Gmarket ADR* 35,400 $ 618
MercadoLibre* 38,100 521
-----------
1,139
-----------
- --------------------------------------------------------------------------------
ELECTRONIC COMPUTERS -- 5.4%
- --------------------------------------------------------------------------------
Apple* 9,800 1,054
-----------
1,054
-----------
- --------------------------------------------------------------------------------
FIBER OPTIC COMPONENTS -- 3.5%
- --------------------------------------------------------------------------------
Corning 63,500 688
-----------
688
-----------
- --------------------------------------------------------------------------------
31 www.oakfunds.com
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONTINUED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES -- 2.7%
- --------------------------------------------------------------------------------
Neogen* 18,100 $ 533
-----------
533
-----------
- --------------------------------------------------------------------------------
LABORATORY ANALYTICAL INSTRUMENTS -- 4.4%
- --------------------------------------------------------------------------------
Illumina* 27,900 860
-----------
860
-----------
- --------------------------------------------------------------------------------
SEMICONDUCTORS & RELATED DEVICES -- 16.1%
- --------------------------------------------------------------------------------
Evergreen Solar* 34,500 131
Formfactor* 50,000 871
MEMC Electronic Materials* 20,300 373
Qualcomm 27,600 1,056
Varian Semiconductor Equipment Associates* 35,850 703
-----------
3,134
-----------
- --------------------------------------------------------------------------------
SERVICES - BUSINESS SERVICES -- 3.0%
- --------------------------------------------------------------------------------
Ctrip.com International ADR 18,900 578
-----------
578
-----------
- --------------------------------------------------------------------------------
SERVICES - COMPUTER PROGRAMMING SERVICES -- 10.8%
- --------------------------------------------------------------------------------
Cognizant Technology Solutions, Cl A* 47,800 918
Infosys Technologies ADR 21,000 616
Wipro ADR 74,700 578
-----------
2,112
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SERVICES - PREPACKAGED SOFTWARE -- 13.0%
- --------------------------------------------------------------------------------
ANSYS* 21,900 $ 627
Cerner* 29,200 1,087
Citrix Systems* 31,800 820
-----------
2,534
-----------
- --------------------------------------------------------------------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS -- 3.6%
- --------------------------------------------------------------------------------
Intuitive Surgical* 4,000 691
-----------
691
-----------
- --------------------------------------------------------------------------------
SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN -- 12.4%
- --------------------------------------------------------------------------------
F5 Networks* 36,200 898
Itron* 14,300 693
Salesforce.com* 26,800 830
-----------
2,421
-----------
- --------------------------------------------------------------------------------
WEB PORTALS/ISP -- 8.0%
- --------------------------------------------------------------------------------
Netease.com ADR* 36,100 812
Sina* 23,200 752
-----------
1,564
-----------
TOTAL COMMON STOCK
(Cost $24,869)(000) 19,071
-----------
- --------------------------------------------------------------------------------
1-888-462-5386 32
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Black Oak Emerging Technology Fund (CONCLUDED)
- --------------------------------------------------------------------------------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 2.4%
- --------------------------------------------------------------------------------
Morgan Stanley (A) 0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$474,965 (collateralized by a U.S. Treasury
Bond, par value $358,308, 8.500%, 02/15/20;
total market value: $484,434) $ 475 $ 475
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $475)(000) 475
-----------
TOTAL INVESTMENTS -- 100.3%
(Cost $25,344)(000) $ 19,546
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $19,477,805.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
ISP -- INTERNET SERVICE PROVIDER
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
33 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Schedules of Investments
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- --------------------------------------------------------------------------------
INDUSTRY WEIGHTING+ (UNAUDITED)
- --------------------------------------------------------------------------------
[BAR CHART]
Pharmaceutical Preparations 34.5%
Biological Products (No Diagnostic Substances) 24.5%
Wholesale - Drugs, Proprietaries & Druggists' Sundries 14.0%
Surgical & Medical Instruments & Apparatus 11.8%
Hospital & Medical Service Plans 4.4%
Electromedical & Electrotherapeutic Apparatus 4.2%
Laboratory Analytical Instruments 4.0%
Services - Computer Processing 2.0%
Services - Commercial Physical & Biological Research 0.8%
Repurchase Agreement 0.1%
+ 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 -- 100.2%++
- --------------------------------------------------------------------------------
BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) -- 24.5%
- --------------------------------------------------------------------------------
Amgen* 20,500 $ 1,228
Biogen Idec* 10,800 460
Cell Genesys* 51,995 12
Genentech* 7,100 589
Genzyme* 6,500 474
Invitrogen* 23,100 665
-----------
3,428
-----------
- --------------------------------------------------------------------------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 4.2%
- --------------------------------------------------------------------------------
Medtronic 14,500 585
-----------
585
-----------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
HOSPITAL & MEDICAL SERVICE PLANS -- 4.4%
- --------------------------------------------------------------------------------
WellPoint* 15,800 $ 614
-----------
614
-----------
- --------------------------------------------------------------------------------
LABORATORY ANALYTICAL INSTRUMENTS -- 4.0%
- --------------------------------------------------------------------------------
Waters* 13,000 569
-----------
569
-----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL PREPARATIONS -- 34.5%
- --------------------------------------------------------------------------------
AstraZeneca ADR 8,000 340
Corcept Therapeutics* 64,244 80
Eli Lilly 16,000 541
GlaxoSmithKline ADR 2,700 104
Johnson & Johnson 3,000 184
King Pharmaceuticals* 42,000 369
Medicis Pharmaceutical, Cl A 37,400 534
- --------------------------------------------------------------------------------
1-888-462-5386 34
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Live Oak Health Sciences Fund (CONCLUDED)
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PHARMACEUTICAL PREPARATIONS (CONTINUED)
- --------------------------------------------------------------------------------
Pfizer 35,000 $ 620
Sanofi-Aventis ADR 13,500 427
Teva Pharmaceutical Industries ADR 19,000 815
Watson Pharmaceuticals* 31,400 822
-----------
4,836
-----------
- --------------------------------------------------------------------------------
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 0.8%
- --------------------------------------------------------------------------------
Affymetrix 31,000 114
-----------
114
-----------
- --------------------------------------------------------------------------------
SERVICES - COMPUTER PROCESSING -- 2.0%
- --------------------------------------------------------------------------------
IMS Health 19,500 280
-----------
280
-----------
- --------------------------------------------------------------------------------
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS -- 11.8%
- --------------------------------------------------------------------------------
Boston Scientific* 51,000 461
Covidien 16,400 726
Techne* 6,700 462
-----------
1,649
-----------
- --------------------------------------------------------------------------------
WHOLESALE - DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES -- 14.0%
- --------------------------------------------------------------------------------
AmerisourceBergen 22,400 700
Cardinal Health 16,600 634
PharMerica* 30,942 635
-----------
1,969
-----------
TOTAL COMMON STOCK
(Cost $14,265)(000) 14,044
-----------
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.1%
- --------------------------------------------------------------------------------
Morgan Stanley (A) 0.750%, dated 10/31/08, to be
repurchased on 11/03/08, repurchase price
$11,011 (collateralized by a U.S. Treasury Bond,
par value $8,306, 8.500%, 02/15/20; total market
value: $11,230) $ 11 $ 11
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $11)(000) 11
-----------
TOTAL INVESTMENTS -- 100.3%
(Cost $14,276)(000) $ 14,055
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $14,012,714.
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
++ MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD
SECTORS ARE UTILIZED FOR REPORTING PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
35 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Statements of Assets and Liabilities (000)
- --------------------------------------------------------------------------------
AS OF OCTOBER 31, 2008
---------------------------
WHITE OAK ROCK OAK
SELECT GROWTH CORE GROWTH
FUND FUND
- ----------------------------------------------------------------------------------------------
Investments at cost ......................................... $ 243,632 $ 5,480
Repurchase agreements at cost ............................... 1,990 68
==============================================================================================
ASSETS:
Investments at market value ................................. $ 213,712 $ 4,525
Repurchase agreements at market value ....................... 1,990 68
Receivable for investment securities sold ................... 6,468 --
Prepaid expenses ............................................ 49 1
Receivable for capital shares sold .......................... 7 --
Dividends and interest receivable ........................... -- 2
Reimbursement from investment adviser ....................... -- --
Reclaim receivable .......................................... -- --
- ----------------------------------------------------------------------------------------------
Total Assets ................................................ 222,226 4,596
- ----------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securtities purchased ................ 5,659 --
Payable for fund shares redeemed ............................ 209 --
Investment advisory fees payable ............................ 53 --
Administration fees payable ................................. 36 1
Trustees' fees payable ...................................... 24 --
Other accrued expenses ...................................... 383 24
- ----------------------------------------------------------------------------------------------
Total Liabilites ............................................ 6,364 25
- ----------------------------------------------------------------------------------------------
Total Net Assets ............................................ $ 215,862 $ 4,571
==============================================================================================
NET ASSETS:
Paid-in capital
(unlimited authorization -- no par value)................. $ 2,837,882 $ 5,722
Accumulated net realized loss on investments ................ (2,592,100) (196)
Net unrealized depreciation on investments .................. (29,920) (955)
- ----------------------------------------------------------------------------------------------
Total Net Assets ............................................ $ 215,862 $ 4,571
==============================================================================================
Portfolio Shares:
Net assets .................................................. $ 215,862 $ 4,571
Total shares outstanding at end of year ..................... 9,037 628
Net asset value, offering and redemption price
per share (net assets / shares outstanding) .............. $ 23.89 $ 7.28
==============================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
1-888-462-5386 36
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PIN OAK RIVER OAK RED OAK BLACK OAK LIVE OAK
AGGRESSIVE STOCK DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES
FUND FUND SELECT FUND TECHNOLOGY FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Investments at cost ............................ $ 40,200 $ 5,392 $ 58,289 $ 24,869 $ 14,265
Repurchase agreements at cost .................. 371 83 288 475 11
====================================================================================================================================
ASSETS:
Investments at market value .................... $ 35,959 $ 4,026 $ 43,868 $ 19,071 $ 14,044
Repurchase agreements at market value .......... 371 83 288 475 11
Receivable for investment securities sold ...... 106 139 45 -- 9
Prepaid expenses ............................... 8 1 11 5 3
Receivable for capital shares sold ............. -- -- 2 1 --
Dividends and interest receivable .............. 20 6 52 -- 6
Reimbursement from investment adviser .......... -- -- -- 2
Reclaim receivable ............................. -- -- -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets ................................... 36,464 4,255 44,266 19,554 14,074
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securtities purchased ... 104 62 -- -- --
Payable for fund shares redeemed ............... 57 -- 50 4 16
Investment advisory fees payable ............... 8 1 6 -- 1
Administration fees payable .................... 6 1 7 3 2
Trustees' fees payable ......................... 4 -- 5 2 2
Other accrued expenses ......................... 87 23 119 67 40
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilites ............................... 266 87 187 76 61
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets ............................... $ 36,198 $ 4,168 $ 44,079 $ 19,478 $ 14,013
====================================================================================================================================
NET ASSETS:
Paid-in capital
(unlimited authorization -- no par value) ... $ 868,664 $ 5,634 $ 1,710,251 $ 302,863 $ 14,253
Accumulated net realized loss on investments ... (828,225) (100) (1,651,751) (277,587) (19)
Net unrealized depreciation on investments ..... (4,241) (1,366) (14,421) (5,798) (221)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets ............................... $ 36,198 $ 4,168 $ 44,079 $ 19,478 $ 14,013
====================================================================================================================================
Portfolio Shares:
Net assets ..................................... $ 36,198 $ 4,168 $ 44,079 $ 19,478 $ 14,013
Total shares outstanding at end of year ........ 2,324 530 8,951 11,950 1,479
Net asset value, offering and redemption
price per share (net assets / shares
outstanding) ................................ $ 15.58 $ 7.86 $ 4.92 $ 1.63 $ 9.48
====================================================================================================================================
- --------------------------------------------------------------------------------
37 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Statements of Operations (000)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2008
----------------------------
WHITE OAK ROCK OAK
SELECT GROWTH CORE GROWTH
FUND FUND
- --------------------------------------------------------------------------------
Investment Income:
Dividends .................................... $ 1,941 $ 46
Interest ..................................... 29 7
Less: Foreign withholding tax ................ (112) (2)
- --------------------------------------------------------------------------------
Total Investment Income ...................... 1,858 51
- --------------------------------------------------------------------------------
Expenses:
Investment advisory fees ..................... 2,473 52
Administration fees .......................... 415 9
Trustees' fees ............................... 138 3
Transfer agent fees .......................... 1,187 19
Printing fees ................................ 162 3
Professional fees ............................ 138 20
Registration fees ............................ 79 2
Custodian fees ............................... 16 --
Insurance and other fees ..................... 106 2
- --------------------------------------------------------------------------------
Total Expenses ............................... 4,714 110
- --------------------------------------------------------------------------------
Less: Investment advisory fees waived ........ (537) (22)
- --------------------------------------------------------------------------------
Net Expenses ................................. 4,177 88
- --------------------------------------------------------------------------------
Net Investment Loss .......................... (2,319) (37)
- --------------------------------------------------------------------------------
Net realized gain (loss) on securities sold .. (23,071) (189)
Net change in unrealized depreciation
of investment securities .................. (131,452) (3,363)
- --------------------------------------------------------------------------------
Net Realized and Unrealized
Loss on Investments ....................... (154,523) (3,552)
- --------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting
From Operations ........................... $(156,842) $(3,589)
================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
1-888-462-5386 38
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PIN OAK RIVER OAK RED OAK BLACK OAK LIVE OAK
AGGRESSIVE STOCK DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES
FUND FUND SELECT FUND TECHNOLOGY FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends .............................. $ 520 $ 29 $ 409 $ 90 $ 182
Interest ............................... 24 15 26 46 7
Less: Foreign withholding tax .......... -- (1) (2) (8) (7)
- -----------------------------------------------------------------------------------------------------------------------------
Total Investment Income ................ 544 43 433 128 182
- -----------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees ............... 445 58 585 233 137
Administration fees .................... 74 8 97 39 23
Trustees' fees ......................... 25 3 33 13 8
Transfer agent fees .................... 260 18 404 207 67
Printing fees .......................... 25 3 33 15 10
Professional fees ...................... 38 20 44 28 24
Registration fees ...................... 15 1 20 7 4
Custodian fees ......................... 2 -- 3 1 1
Insurance and other fees ............... 20 2 26 10 6
- -----------------------------------------------------------------------------------------------------------------------------
Total Expenses ......................... 904 113 1,245 553 280
- -----------------------------------------------------------------------------------------------------------------------------
Less: Investment advisory fees waived .. (153) (26) (178) (129) (31)
- -----------------------------------------------------------------------------------------------------------------------------
Net Expenses ........................... 751 87 1,067 424 249
- -----------------------------------------------------------------------------------------------------------------------------
Net Investment Loss .................... (207) (44) (634) (296) (67)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
securities sold ..................... 3,072 (111) 4,209 1,689 478
Net change in unrealized depreciation
of investment securities ............ (35,675) (3,337) (44,166) (18,045) (5,154)
- -----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Loss on Investments ................. (32,603) (3,448) (39,957) (16,356) (4,676)
- -----------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting
From Operations ..................... $(32,810) $(3,492) $(40,591) $(16,652) $(4,743)
=============================================================================================================================
- --------------------------------------------------------------------------------
39 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Statements of Changes in Net Assets (000)
- --------------------------------------------------------------------------------
FOR THE YEARS ENDED OCTOBER 31,
-----------------------------------------------
WHITE OAK ROCK OAK
SELECT GROWTH CORE GROWTH
FUND FUND
-----------------------------------------------
2008 2007 2008 2007
- ----------------------------------------------------------------------------------------------------------
Investment Activities:
Net investment loss ................................. $ (2,319) $ (1,552) $ (37) $ (48)
Net realized gain (loss) on securities sold ......... (23,071) 73,135 (189) 664
Net unrealized appreciation (depreciation) of
investment securities ............................. (131,452) 23,700 (3,363) 1,255
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations ........................................ (156,842) 95,283 (3,589) 1,871
- ----------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Realized capital gains .............................. -- -- (357) --
- ----------------------------------------------------------------------------------------------------------
Total Distributions ........................... -- -- (357) --
- ----------------------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares issued ....................................... 14,894 21,469 687 454
Shares issued in lieu of cash distributions ......... -- -- 350 --
Shares redeemed ..................................... (82,168) (215,290) (909) (3,624)
- ----------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Capital
Share Transactions .............................. (67,274) (193,821) 128 (3,170)
- ----------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ....... (224,116) (98,538) (3,818) (1,299)
- ----------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Year ................................... 439,978 538,516 8,389 9,688
- ----------------------------------------------------------------------------------------------------------
End of Year ......................................... $ 215,862 $ 439,978 $ 4,571 $ 8,389
==========================================================================================================
Shares Issued and Redeemed:
Issued .............................................. 453 616 60 40
Issued in lieu of cash distributions ................ -- -- 28 --
Redeemed ............................................ (2,559) (6,347) (84) (323)
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ..... (2,106) (5,731) 4 (283)
==========================================================================================================
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 40
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
PIN OAK RIVER OAK RED OAK BLACK OAK
AGGRESSIVE STOCK DISCOVERY TECHNOLOGY EMERGING
FUND FUND SELECT FUND TECHNOLOGY FUND
--------------------------------------------------------------------------------------------
2008 2007 2008 2007 2008 2007 2008 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net investment loss .............. $ (207) $ (418) $ (44) $ (60) $ (634) $ (459) $ (296) $ (382)
Net realized gain (loss)
on securities sold ............. 3,072 11,766 (111) 341 4,209 9,990 1,689 4,281
Net unrealized appreciation
(depreciation) of investment
securities ..................... (35,675) 10,407 (3,337) 1,388 (44,166) 17,531 (18,045) 6,576
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations ..................... (32,810) 21,755 (3,492) 1,669 (40,591) 27,062 (16,652) 10,475
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Realized capital gains ........... -- -- (210) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions ........ -- -- (210) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (in
dollars):
Shares issued .................... 1,917 17,313 513 2,016 2,981 10,604 4,602 2,824
Shares issued in lieu of cash
distributions .................. -- -- 205 -- -- -- -- --
Shares redeemed .................. (23,810) (40,716) (671) (1,805) (33,316) (39,110) (8,282) (13,106)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net
Assets from Capital Share
Transactions ................. (21,893) (23,403) 47 211 (30,335) (28,506) (3,680) (10,282)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in
Net Assets ............... (54,703) (1,648) (3,655) 1,880 (70,926) (1,444) (20,332) 193
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Year ................ 90,901 92,549 7,823 5,943 115,005 116,449 39,810 39,617
- ------------------------------------------------------------------------------------------------------------------------------------
End of Year ...................... $ 36,198 $ 90,901 $ 4,168 $ 7,823 $ 44,079 $ 115,005 $ 19,478 $ 39,810
====================================================================================================================================
Shares Issued and Redeemed:
Issued ........................... 88 674 41 159 416 1,341 1,881 1,139
Issued in lieu of cash
distributions .................. -- -- 15 -- -- -- -- --
Redeemed ......................... (1,075) (1,732) (55) (144) (4,602) (5,091) (3,470) (5,504)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share
Transactions ................. (987) (1,058) 1 15 (4,186) (3,750) (1,589) (4,365)
====================================================================================================================================
- --------------------------------------------------------------------------------
41 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Statements of Changes in Net Assets (000)
- --------------------------------------------------------------------------------
FOR THE YEARS ENDED OCTOBER 31,
--------------------
LIVE OAK
HEALTH SCIENCES
FUND
--------------------
2008 2007
- ----------------------------------------------------------------------------------------------
Investment Activities:
Net investment loss ................................................ $ (67) $ (25)
Net realized gain on securities sold ............................... 478 2,524
Net unrealized depreciation of investment securities ............... (5,154) (347)
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations .... (4,743) 2,152
- ----------------------------------------------------------------------------------------------
Capital Share Transactions (in dollars):
Shares issued ...................................................... 1,091 3,916
Shares redeemed .................................................... (3,689) (9,977)
- ----------------------------------------------------------------------------------------------
Decrease in Net Assets from Capital Share Transactions .......... (2,598) (6,061)
- ----------------------------------------------------------------------------------------------
Total Decrease in Net Assets ................................. (7,341) (3,909)
- ----------------------------------------------------------------------------------------------
Net Assets:
Beginning of Year .................................................. 21,354 25,263
- ----------------------------------------------------------------------------------------------
End of Year ........................................................ $ 14,013 $ 21,354
==============================================================================================
Shares Issued and Redeemed:
Issued ............................................................. 94 333
Redeemed ........................................................... (335) (872)
- ----------------------------------------------------------------------------------------------
Net Decrease in Share Transactions .............................. (241) (539)
==============================================================================================
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 42
- --------------------------------------------------------------------------------
[GRAPHIC] Notes to Financial Statements
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
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 accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of increases and decreases in net assets from
operations and expenses during the reporting period. Actual results could
differ from those estimates, and could have a material impact to the
Funds.
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.
- --------------------------------------------------------------------------------
43 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
Securities for which market prices are not "readily available" (of which
there were none as of October 31, 2008) 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 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 INVESTMENT 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.
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
- --------------------------------------------------------------------------------
1-888-462-5386 44
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 (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 2, 2007, 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.
During the year ended October 31, 2008, 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 .................................... $ 544
Rock Oak Core Growth Fund ....................................... 2
Pin Oak Aggressive Stock Fund ................................... 69
River Oak Discovery Fund ........................................ 2
Red Oak Technology Select Fund .................................. 89
Black Oak Energing Technology Fund .............................. 35
Live Oak Health Sciences Fund ................................... 15
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.
- --------------------------------------------------------------------------------
45 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
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. Effective March 1, 2006, the Adviser
has agreed to contractually waive all or a portion of its fees (and to reimburse
the Funds' expenses if necesssary) in order to limit operating expenses to not
more than 1.25% of the average daily net assets of the White Oak Select Growth,
Rock Oak Core Growth and Pin Oak Aggressive Stock Funds, and 1.35% of the
average daily net assets of the River Oak Discovery, Red Oak Technology Select,
Black Oak Emerging Technology and Live Oak Health Sciences Funds for a period of
one year. Effective March 1, 2008 the Adviser has contractually agreed to
continue this arrangement for a period of one year.
U.S. Bank N.A. acts as custodian (the "Custodian") for the Funds. The Custodian
plays no role in determining the investment policies of the Funds or which
securities are to be purchased or sold by the Funds.
6. INVESTMENT TRANSACTIONS:
- --------------------------------------------------------------------------------
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the year ended October 31, 2008, were as follows
(000):
PURCHASES SALES
--------- ---------
White Oak Select Growth Fund .......................... $ 82,447 $ 151,384
Rock Oak Core Growth Fund ............................. 6,380 6,418
Pin Oak Aggressive Stock Fund ......................... 22,752 43,791
River Oak Discovery Fund .............................. 8,778 8,780
Red Oak Technology Select Fund ........................ 13,521 42,109
Black Oak Emerging Technology Fund .................... 24,017 28,285
Live Oak Health Sciences Fund ......................... 4,504 6,585
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.
- --------------------------------------------------------------------------------
1-888-462-5386 46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. 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. These differences are
primarily due to the reclass of distributions on net operating losses and the
investment in master limited partnerships.
Accordingly, the following permanent differences have been reclassified to/from
the following accounts (000):
ACCUMULATED ACCUMULATED
NET NET
INVESTMENT REALIZED PAID-IN-
INCOME GAIN CAPITAL
----------- ------------ --------
White Oak Select Growth Fund ............ $ 2,319 $ -- $ (2,319)
Rock Oak Core Growth Fund ............... 37 -- (37)
Pin Oak Aggressive Stock Fund ........... 207 -- (207)
River Oak Discovery Fund ................ 44 10 (54)
Red Oak Technology Select Fund .......... 634 -- (634)
Black Oak Emerging Technology Fund ...... 296 -- (296)
Live Oak Health Sciences Fund ........... 67 -- (67)
The tax character of dividends and distributions declared during the year ended
October 31, 2008, were as follows (000):
ORDINARY LONG-TERM
INCOME CAPITAL GAIN TOTAL
----------- ------------ --------
Rock Oak Core Growth Fund ............... $ -- $ 357 $ 357
River Oak Discovery Fund ................ 43 167 210
There were no dividends or distributions declared during the year ended October
31, 2007.
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47 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
As of October 31, 2008, the components of accumulated losses on a tax basis were
as follows (000):
CAPITAL NET TOTAL
LOSS UNREALIZED ACCUMULATED
CARRYFORWARD DEPRECIATON LOSSES
-------------- ----------- ------------
White Oak Select Growth Fund ........... $(2,591,576) $(30,444) $(2,622,020)
Rock Oak Core Growth Fund .............. (187) (964) (1,151)
Pin Oak Aggressive Stock Fund .......... (828,191) (4,275) (832,466)
River Oak Discovery Fund ............... (50) (1,416) (1,466)
Red Oak Technology Select Fund ......... (1,651,495) (14,677) (1,666,172)
Black Oak Emerging Technology Fund ..... (277,483) (5,902) (283,385)
Live Oak Health Sciences Fund .......... (19) (221) (240)
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At October 31, 2008, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING OCTOBER 31,
----------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2014 2016 TOTAL
-------- -------- -------- -------- -------- ---- ------- ----------
White Oak Select Growth Fund ......... $583,253 $712,973 $206,602 $744,257 $321,944 $ -- $22,547 $2,591,576
Rock Oak Core Growth Fund ............ -- -- -- -- -- -- 187 187
Pin Oak Aggressive Stock Fund ........ 103,868 436,197 180,087 90,283 17,756 -- -- 828,191
River Oak Discovery Fund ............. -- -- -- -- -- -- 50 50
Red Oak Technology Select Fund ....... 597,321 726,266 293,675 34,233 -- -- -- 1,651,495
Black Oak Emerging Technology Fund ... 49,553 212,845 15,085 -- -- -- -- 277,483
Live Oak Health Sciences Fund ........ -- -- -- -- -- 19 -- 19
- --------------------------------------------------------------------------------
1-888-462-5386 48
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
During the year ended October 31, 2008, the following Funds utilized capital
loss carry forwards to offset capital gains (000):
AMOUNT
------
Pin Oak Aggressive Stock Fund ........................................ $3,107
Red Oak Technology Select Fund ...................................... 4,429
Black Oak Emerging Technology Fund .................................. 1,792
Live Oak Health Sciences Fund ........................................ 478
At October 31, 2008, the total cost of securities for Federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation for
securities held by the Funds is as follows (000):
FEDERAL AGGREGATE AGGREGATE
TAX GROSS GROSS
COST APPRECIATION DEPRECIATION NET
-------- ------------ ------------ ---------
White Oak Select Growth Fund ............ $246,146 $36,486 $(66,930) $(30,444)
Rock Oak Core Growth Fund ............... 5,557 281 (1,245) (964)
Pin Oak Aggressive Stock Fund ........... 40,605 7,698 (11,973) (4,275)
River Oak Discovery Fund ................ 5,525 254 (1,670) (1,416)
Red Oak Technology Select Fund .......... 58,833 4,443 (19,120) (14,677)
Black Oak Emerging Technology Fund ...... 25,448 1,400 (7,302) (5,902)
Live Oak Health Sciences Fund ........... 14,276 2,619 (2,840) (221)
Management has analyzed the Funds' tax position taken on federal income tax
returns for all open tax years and has concluded that as of October 31, 2008, no
provision for income tax would be required in the Funds' financial statements.
The Funds' federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired are subject to
examination by the Internal Revenue Service and state departments of revenue.
8. CONCENTRATION OF CREDIT RISK AND OWNERSHIP
- --------------------------------------------------------------------------------
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, each of these Funds may be more affected by economic developments in
those industries than a general equity fund would be.
In the normal course of business, the Funds enter into contracts that provide
general indemnifications. The Funds' maximum exposure
- --------------------------------------------------------------------------------
49 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Notes to Financial Statements (concluded)
- --------------------------------------------------------------------------------
OCTOBER 31, 2008
under these arrangements is dependent on future claims that may be made against
the Funds and, therefore, cannot be established; however based on experience,
the risk of loss from such claims is considered remote.
From time to time, the Funds may have a concentration of several shareholders
holding a significant percentage of shares outstanding. Investment activities of
these shareholders could have a material impact on the Fund.
As of October 31, 2008, please refer to the below chart for Concentration of
Ownership:
NUMBER OF PERCENTAGE
SHAREHOLDERS OF OWNERSHIP
------------ -----------------
River Oak Discovery Fund ................... 2 22%, 20%
Rock Oak Core Growth Fund .................. 4 21%, 21%, 10%, 5%
9. ACCOUNTING PRONOUNCEMENT
- --------------------------------------------------------------------------------
In September 2006, the Financial Accounting Standards Board (FASB) issued
STATEMENT OF FINANCIAL ACCOUNTING STANDARDS (SFAS) NO. 157, "FAIR VALUE
MEASUREMENTS." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this Statement relate to the definition of fair value, the
methods used to measure fair value, and the expanded disclosures about fair
value measurements. As of October 31, 2008 the Funds' management does not
believe the adoption of SFAS No. 157 will impact the amounts reported in the
financial statements, however, additional disclosures may be required about the
inputs used to develop the measurements and the effect of certain of the
measurements reported in the financial statements for a fiscal period.
- --------------------------------------------------------------------------------
1-888-462-5386 50
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[GRAPHIC] Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Oak Associates Funds:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Oak Associates Funds (The "Trust"),
comprising the White Oak Select Growth 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, 2008, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
or periods since inception in the five-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.
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, 2008, by correspondence with custodians and
brokers or by 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
Oak Associate Funds as of October 31, 2008, the results of their operations for
the year then ended, the changes in their net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years or periods since inception in the five-year period then ended, in
conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP [LOGO]
Philadelphia, Pennsylvania
December 23, 2008
- --------------------------------------------------------------------------------
51 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Trustees of the Trust (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN OTHER
POSITION LENGTH FUND 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 (73) Trustee 8 7 President and Chairman of the Trustee of Proconex.
Board, Synergistic Partners,
Inc., 1975-1999.
- -----------------------------------------------------------------------------------------------------------------------------------
Thomas E. Gretter, MD (73) Trustee 7 7 Physician, Cleveland Clinic None
(Health Care) since 1966.
- -----------------------------------------------------------------------------------------------------------------------------------
James D. Oelschlager(5) Trustee, 8 7 Managing Member, President, CIO None
(66) Chairman and Founder of Oak Associates,
ltd. since 1985.
- -----------------------------------------------------------------------------------------------------------------------------------
John G. Stimpson(5) (66) Trustee 8 7 Director of International Equity Board of Directors,
Sales and Equity Sales Manager, Morgan Stanley
Salomon Brothers (New York) from Trust Company from
1985-1993. 1988-1993.
- -----------------------------------------------------------------------------------------------------------------------------------
Pauline F. Ramig (68) Trustee 1 7 Financial Planning Practitioner, Trustee of Opera
Ramig Financial Planning since Cleveland.
1991.
- -----------------------------------------------------------------------------------------------------------------------------------
Robert P. Stephans (65) Trustee 1 7 CPA for Stephans, Kun & Co., None
Certified Public Accountants
since 1980.
- -----------------------------------------------------------------------------------------------------------------------------------
Michael R. Shade (60) Trustee 1 7 Attorney at Law; Partner, Shade & None
Shade since December, 1979.
- -----------------------------------------------------------------------------------------------------------------------------------
(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, 2008, 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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1-888-462-5386 52
- --------------------------------------------------------------------------------
[GRAPHIC] 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(3) (43) President 7 N/A Mutual Fund Product Manager of N/A
Oak Associates, ltd. since 1997.
- -----------------------------------------------------------------------------------------------------------------------------
Sandra Noll(2) (44) Vice President 8 N/A Director of Client Services at N/A
and Assistant Oak Associates, ltd. since 1998
Secretary and Compliance Officer of Oak
Associates, ltd., since 1994.
- -----------------------------------------------------------------------------------------------------------------------------
Leslie Manna(2)(4) (46) President 8 N/A Mutual Fund Coordinator of Oak N/A
Associates, ltd. since 1995.
- -----------------------------------------------------------------------------------------------------------------------------
Eric Kleinschmidt (40)(5) Treasurer and 4 N/A Director, SEI Fund Accounting N/A
Chief Financial since 2004; Manager, SEI Fund
Officer Accounting since 1999.
- -----------------------------------------------------------------------------------------------------------------------------
Joseph M. Gallo(5) (35) Vice President 1 N/A Corporate counsel SEI, since N/A
and Assistant 2007; Associate counsel, ICMA
Secretary Retirement Corporation,
2004-2007; Federal Investigator,
U.S. Department of Labor,
2002-2004; U.S. Securities and
Exchange Commission - Division
of Investment Management, 2003.
- -----------------------------------------------------------------------------------------------------------------------------
Carolyn F. Mead(5) (52) Vice President (Since N/A Corporate Counsel, SEI (since N/A
and Assistant 2008) 2007); Associate Counsel,
Secretary Stradley, Ronan, Stevens & Young
LLP (2004-2007); ING Variable
Annuities (1999-2002).
- -----------------------------------------------------------------------------------------------------------------------------
Bernadette Sparling(5) (31) Vice President (Since N/A Corporate Counsel, SEI (since N/A
and Assistant 2008) 2005); Associate Counsel, Blank
Secretary Rome LLP (2001-2005).
- -----------------------------------------------------------------------------------------------------------------------------
(1.) Each Officer may be contacted in writing to the Officer c/o SEI
Investments, One Freedom Valley Drive, Oaks, PA 19456.
(2.) Mmes. Noll and Manna are considered to be "affiliates" of the Adviser by
virtue of their employment by the Adviser.
(3.) Mr. White resigned as President effective November 12, 2007.
(4.) Ms. Manna was elected President effective November 29, 2007.
(5.) The officers of the Trust also serve as officers to one or more mutual
funds for which SEI Investments Company ot its affiliates act as
investment manager, administrator, or distributor.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
53 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] 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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1-888-462-5386 54
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[GRAPHIC] Disclosure of Fund Expenses (unaudited)
- --------------------------------------------------------------------------------
NOTE: Because the return is set at 5% for comparison purposes -- NOT your Fund's
actual return -- the account values shown may not apply to your specific
investment.
- -------------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
05/01/08 10/31/08 RATIOS PERIOD*
- -------------------------------------------------------------------------------------
White Oak Select Growth Fund
- -------------------------------------------------------------------------------------
Actual Return $ 1,000 $ 707.60 1.25% $ 5.37
Hypothetical 5% Return 1,000 1,018.85 1.25 6.34
- -------------------------------------------------------------------------------------
Rock Oak Core Growth Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 624.40 1.25 5.10
Hypothetical 5% Return 1,000 1,018.85 1.25 6.34
- -------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 680.10 1.25 5.28
Hypothetical 5% Return 1,000 1,018.85 1.25 6.34
- -------------------------------------------------------------------------------------
River Oak Discovery Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 637.00 1.35 5.56
Hypothetical 5% Return 1,000 1,018.35 1.35 6.85
- -------------------------------------------------------------------------------------
Red Oak Technology Select Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 662.20 1.35 5.64
Hypothetical 5% Return 1,000 1,018.35 1.35 6.85
- -------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 619.80 1.35 5.50
Hypothetical 5% Return 1,000 1,018.35 1.35 6.85
- -------------------------------------------------------------------------------------
Live Oak Health Sciences Fund
- -------------------------------------------------------------------------------------
Actual Return 1,000 841.20 1.35 6.25
Hypothetical 5% Return 1,000 1,018.35 1.35 6.85
- -------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
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55 www.oakfunds.com
- --------------------------------------------------------------------------------
[GRAPHIC] Notice to Shareholders (unaudited)
- --------------------------------------------------------------------------------
For shareholders that do not have an October 31, 2008 tax year end, this notice
is for informational purposes only. For shareholders with an October 31, 2008
tax year end, please consult your tax advisor as to the pertinence of this
notice. For the fiscal year ended October 31, 2008, each fund is designating the
following items with regard to distributions paid during the year.
QUALIFYING
FOR CORPORATE
LONG-TERM ORDINARY DIVIDENDS
CAPITAL GAIN INCOME TOTAL RECEIVABLE
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION(1)
- ----------------------------------------------------------------------------------------------------
White Oak Select Growth Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Rock Oak Core Growth Fund 100.00% 0.00% 100.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
River Oak Discovery Fund 79.54% 20.46% 100.00% 19.31%
- ----------------------------------------------------------------------------------------------------
Red Oak Technology Select Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
FOREIGN INVESTORS
----------------------------
QUALIFYING U.S. INTEREST SHORT-TERM
DIVIDEND GOVERNMENT RELATED CAPITAL GAIN
INCOME(2) INTEREST(3) DIVIDENDS(4) DIVIDENDS(5)
- ----------------------------------------------------------------------------------------------------
White Oak Select Growth Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Rock Oak Core Growth Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Pin Oak Aggressive Stock Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
River Oak Discovery Fund 42.01% 0.00% 21.47% 100.00%
- ----------------------------------------------------------------------------------------------------
Red Oak Technology Select Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Black Oak Emerging Technology Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
Live Oak Health Sciences Fund 0.00% 0.00% 0.00% 0.00%
- ----------------------------------------------------------------------------------------------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of ordinary
income distributions (the total of short-term capital gain and net
investment income distributions).
(2) The percentage in this column represents the amount of "Qualifying
Dividend Income" as created by the Jobs and Growth Tax Relief
Reconciliation Act of 2003 and is reflected as a percentage of ordinary
income distributions (the total of short-term capital gain and net
investment income distributions). It is the intention of each of the
aforementioned funds to designate the maximum amount permitted by law.
(3) "U.S. Government Interest" represents the amount of interest that was
derived from direct U.S. Government obligations and distributed during the
fiscal year. This amount is reflected as a percentage of ordinary income.
Generally, interest from direct U.S. Government obligations is exempt from
state income tax. However, for shareholders of the Oak Associates Funds
who are residents of California, Connecticut, New Jersey and New York, the
statutory threshold requirements were not satisfied to permit exemption of
these amounts from state income.
(4) The percentage in this column represents the amount of "Interest Related
Dividends" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of net investment income distributions that is
exempt from U.S. withholding tax when paid to foreign investors. This
provision of the Internal Revenue Code ("IRC") will be expiring for years
beginning after January 1, 2010.
(5) The percentage in this column represents the amount of "Short-Term Capital
Gain Dividends" as created by the American Jobs Creation Act of 2004 and
is reflected as a percentage of short-term capital gain distributions that
is exempt from U.S. withholding tax when paid to foreign investors. This
provision of the IRC will be expiring for years beginning after January 1,
2010.
- --------------------------------------------------------------------------------
1-888-462-5386 56
- --------------------------------------------------------------------------------
- ---------------
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.
- --------------------------------------------------------------------------------
------------------
[LOGO] OAK ASSOCIATES FUNDS PRSRT STD
------------------------ U.S. POSTAGE
PAID
P.O. Box 219441 OAK
Kansas City, MO 64121-9441 ASSOCIATES
------------------
OAK-AR-001-0100
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.
The Registrant's board of trustees has determined that the Registrant has at
least one financial expert serving on the audit committee. The audit committee
financial expert serving on the audit committee is Robert Stephans and 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:
- ------------------ ----------------------------------------------------- -----------------------------------------------------
2008 2007
- ------------------ ----------------------------------------------------- -----------------------------------------------------
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 to
Trust that were service service Trust that were service service
pre-approved affiliates that affiliates that pre-approved affiliates that affiliates that
were did not require were did not require
pre-approved pre-approval pre-approved pre-approval
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(a) Audit $113,750 N/A N/A $116,250 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:
---------------------------- ----------------- ----------------
2008 2007
---------------------------- ----------------- ----------------
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 2008 and 2007, respectively.
(h) During the past fiscal year, the registrant's principal accountant did
not report to the registrant's audit committee the existence of any
non-audit services that were provided to either the registrant's
investment adviser or to any entity controlling, controlled by, or
under common control with the registrant's investment adviser that
provided ongoing services to the registrant.
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.
None.
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 registrant's 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/ Leslie Manna
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Leslie Manna, President
Date: December 31, 2008
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/ Leslie Manna
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Leslie Manna, President
Date: December 31, 2008
By (Signature and Title) /s/ Eric Kleinschmidt
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Eric Kleinschmidt, Treasurer & CFO
Date: December 31, 2008