UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21260
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CM Advisers Family of Funds
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(Exact name of registrant as specified in charter)
805 Las Cimas Parkway, Suite 430, Austin, Texas 74746
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(Address of principal executive offices) (Zip code)
Scott Van Den Berg, 850 Las Cimas Parkway, Suite 430, Austin, Texas 78746
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(Name and address of agent for service)
Registrant's telephone number, including area code: 512-329-0050
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Date of fiscal year end: February 29, 2004
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Date of reporting period: August 31, 2003
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ITEM 1. Reports to Stockholders.
________________________________________________________________________________
CM ADVISERS FUND
________________________________________________________________________________
a series of the CM Advisers Family of Funds
Semi-Annual Report
(Unaudited)
FOR THE PERIOD ENDED AUGUST 31, 2003
INVESTMENT ADVISOR
Van Den Berg Management, Inc.
(d/b/a CM Fund Advisers)
805 Las Cimas Parkway
Suite 430
Austin, Texas 78746
CM ADVISERS FUND
805 Las Cimas Parkway
Suite 430
Austin, Texas 78746
1-800-773-3863
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the CM Advisers Fund (the "Fund").
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus. Mutual fund
shares are not deposits or obligations of, or guaranteed by, any depository
institution. Shares are not insured by the FDIC, Federal Reserve Board or any
other agency, and are subject to investment risks, including possible loss of
principal amount invested. Neither the Fund nor the Fund's distributor is a
bank.
For more information about the Fund, including charges and expenses, call the
Fund's distributor for a free prospectus. You should read the prospectus
carefully before you invest or send money.
Distributor: Capital Investment Group, Inc., Post Office Drawer 4365, Rocky
Mount, North Carolina 27803, Phone 1-800-773-3863.
CM ADVISERS FUND
PORTFOLIO OF INVESTMENTS
August 31, 2003
(Unaudited)
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Value
Shares (note 1)
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COMMON STOCKS - 20.69%
Chemicals - 1.96%
Great Lakes Chemical Corporation ...................................... 12,270 $ 260,001
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Commercial Services - 1.55%
CPI Corporation ....................................................... 4,800 79,920
RR Donnelley & Sons Co. ............................................... 5,030 126,454
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206,374
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Computers - 0.50%
(a)Maxwell Technologies, Inc. ............................................ 7,340 65,686
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Engineering & Construction - 1.79%
(a)Layne Christensen Company ............................................. 25,455 237,979
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Home Furnishings - 1.12%
Maytag Corporation .................................................... 5,500 149,050
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Machinery - Construction & Mining - 0.69%
(a)Astec Industries, Inc. ................................................ 8,100 90,963
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Media - 1.95%
The Reader's Digest Association Inc. .................................. 21,210 258,126
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Metal Fabricate / Hardware - 2.96%
Ampco - Pittsburgh Corporation ........................................ 5,735 70,541
(a)NS Group, Inc. ........................................................ 40,265 322,120
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392,661
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Miscellaneous Manufacturing - 1.15%
Myers Industries, Inc. ................................................ 13,680 143,640
Trinity Industries, Inc. .............................................. 350 9,212
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152,852
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Oil & Gas - 2.13%
(a)Transocean Inc. ....................................................... 13,370 282,374
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Packaging & Containers - 2.44%
Sonoco Products Company ............................................... 14,220 323,789
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Retail - 2.45%
(a)Toys "R" Us, Inc. ..................................................... 23,810 324,292
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Total Common Stocks (Cost $2,570,274) ............................................. 2,744,147
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(Continued)
CM ADVISERS FUND
PORTFOLIO OF INVESTMENTS
August 31, 2003
(Unaudited)
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Interest Maturity Value
Principal Rate Date (note 1)
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U.S. GOVERNMENT OBLIGATION - 6.03%
United States Treasury Note ............................. $ 850,000 3.625% 05/15/13 $ 799,265
(Cost $793,650) -----------
CORPORATE OBLIGATION - 1.09%
AAR Corporation ......................................... 180,000 6.875% 12/15/07 145,125
(Cost $150,817) -----------
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Shares
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INVESTMENT COMPANY - 73.00%
Evergreen Institutional Treasury Money Market Fund Class I #497 .......... 9,679,066 9,679,066
(Cost $9,679,066) -----------
Total Value of Investments (Cost $13,193,807 (b)) ........................................... 100.81 % $13,367,603
Liabilities In Excess of Other Assets ....................................................... (0.81)% (107,495)
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Net Assets ............................................................................ 100.00 % $13,260,108
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(a) Non-income producing investment.
(b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation/
(depreciation) of investments for financial reporting and federal income tax purposes is as follows:
Unrealized appreciation ............................................................................ $ 190,262
Unrealized depreciation ............................................................................ (16,466)
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Net unrealized appreciation ............................................................. $ 173,796
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See accompanying notes to financial statements
CM ADVISERS FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2003
(Unaudited)
ASSETS
Investments, at value (cost $13,193,807) ............................................................ $ 13,367,603
Cash ................................................................................................ 5,654
Income receivable ................................................................................... 20,962
Receivable for fund shares sold ..................................................................... 51,345
Prepaid expenses .................................................................................... 39,950
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Total assets ................................................................................... 13,485,514
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LIABILITIES
Accrued expenses .................................................................................... 10,348
Payable for investment purchases .................................................................... 215,058
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Total liabilities .............................................................................. 225,406
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NET ASSETS
(applicable to 1,290,539 shares outstanding; unlimited number
of $0.001 per share par value beneficial interest shares are authorized) ............................ $ 13,260,108
============
NET ASSET VALUE, REDEMPTION AND OFFERING PRICE PER SHARE
($13,260,108 / 1,290,539 shares) .................................................................... $ 10.27
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NET ASSETS CONSIST OF
Paid-in capital ..................................................................................... $ 13,093,899
Accumulated net investment loss ..................................................................... (9,594)
Undistributed net realized gain on investments ...................................................... 2,007
Net unrealized appreciation on investments .......................................................... 173,796
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$ 13,260,108
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See accompanying notes to financial statements
CM ADVISERS FUND
STATEMENT OF OPERATIONS
For the Period from May 13, 2003
(Commencement of Operations)
through August 31, 2003 (a)
NET INVESTMENT LOSS
Income
Interest ...................................................................................... $ 6,975
Dividends ..................................................................................... 15,309
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Total income .............................................................................. 22,284
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Expenses
Investment advisory fees (note 2) ............................................................. 23,740
Fund administration fees (note 2) ............................................................. 2,391
Distribution and service fees (note 3) ........................................................ 3,985
Custody fees .................................................................................. 1,713
Registration and filing administration fees (note 2) .......................................... 2,285
Fund accounting fees (note 2) ................................................................. 8,215
Audit fees .................................................................................... 6,176
Legal fees .................................................................................... 4,877
Securities pricing fees ....................................................................... 392
Shareholder recordkeeping fees (note 2) ....................................................... 5,323
Other accounting fees (note 2) ................................................................ 3,122
Shareholder servicing expenses ................................................................ 1,438
Registration and filing expenses .............................................................. 9,573
Printing expenses ............................................................................. 432
Trustee fees and meeting expenses ............................................................. 5,093
Other operating expenses ...................................................................... 1,438
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Total expenses ............................................................................ 80,193
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Less:
Expense reimbursements (note 2) ...................................................... (21,647)
Investment advisory fees waived (note 2) ............................................. (22,683)
Distribution and service fees waived (note 3) ........................................ (3,985)
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Net expenses .............................................................................. 31,878
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Net investment loss .................................................................. (9,594)
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REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investment transactions ..................................................... 2,007
Increase in unrealized appreciation on investments ................................................. 173,796
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Net realized and unrealized gain on investments ............................................... 175,803
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Net increase in net assets resulting from operations ...................................... $ 166,209
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(a) Unaudited.
See accompanying notes to financial statements
CM ADVISERS FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Period from May 13, 2003
(Commencement of Operations)
through August 31, 2003 (a)
INCREASE IN NET ASSETS
Operations
Net investment loss .............................................................................. $ (9,594)
Net realized gain from investment transactions ................................................... 2,007
Increase in unrealized appreciation on investments ............................................... 173,796
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Net increase in net assets resulting from operations ........................................ 166,209
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Capital share transactions
Increase in net assets resulting from capital share transactions (b) ............................. 13,093,899
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Total increase in net assets ......................................................... 13,260,108
NET ASSETS
Beginning of period .................................................................................. 0
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End of period ........................................................................................ $ 13,260,108
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(a) Unaudited.
(b) A summary of capital share activity follows:
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Shares Value
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Shares sold ........................................................................ 1,293,637 $ 13,125,402
Shares redeemed .................................................................... (3,098) (31,503)
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Net increase .................................................................. 1,290,539 $ 13,093,899
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See accompanying notes to financial statements
CM ADVISERS FUND
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
For the Period from May 13, 2003
(Commencement of Operations)
through August 31, 2003 (a)
Net asset value, beginning of period ............................................................... $ 10.00
Income from investment operations
Net investment loss ..................................................................... (0.01)
Net realized and unrealized gain on investments ......................................... 0.28
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Total from investment operations .................................................... 0.27
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Net asset value, end of period ..................................................................... $ 10.27
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Total return ....................................................................................... 2.70 %
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Ratios/supplemental data
Net assets, end of period .................................................................... $ 13,260,108
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Ratio of expenses to average net assets (b)
Before expense reimbursements and waived fees ........................................... 5.03 %
After expense reimbursements and waived fees ............................................ 2.00 %
Ratio of net investment loss to average net assets (b)
Before expense reimbursements and waived fees ........................................... (3.63)%
After expense reimbursements and waived fees ............................................ (0.60)%
Portfolio turnover rate ...................................................................... 3.03 %
(a) Unaudited.
(b) Annualized.
See accompanying notes to financial statements
CM ADVISERS FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2003
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION
The CM Advisers Fund (the "Fund") is a non-diversified series of shares
of beneficial interest of the CM Advisers Family of Funds (the
"Trust"), a registered open-end management investment company. The
Trust was organized in 2002 as a Delaware Statutory Trust and is
registered under the Investment Company Act of 1940, as amended (the
"Act"). The Fund began operations on May 13, 2003. The investment
objective of the Fund is to provide long-term growth of capital through
investments in equity securities, consisting primarily of common and
preferred stocks and securities convertible into common stocks. The
Fund has an unlimited number of $0.001 par value beneficial interest
shares that are authorized. The following is a summary of significant
accounting policies followed by the Fund:
A. Security Valuation - The Fund's investments in securities are
carried at value. Securities listed on an exchange or quoted
on a national market system are valued at the last sales price
as of 4:00 p.m. Eastern Time. Other securities traded in the
over-the-counter market and listed securities for which no
sale was reported on that date are valued at the most recent
bid price. Securities for which market quotations are not
readily available or which cannot be accurately valued using
the Fund's normal pricing procedures, if any, are valued
following procedures approved by the Board of Trustees of the
Trust (the "Trustees"). Short-term investments are valued at
cost, which approximates value.
B. Federal Income Taxes - No provision has been made for federal
income taxes since the Fund intends to distribute
substantially all taxable income to shareholders. It is the
policy of the Fund to comply with the provisions of the
Internal Revenue Code applicable to regulated investment
companies and to make sufficient distributions of taxable
income to relieve it from all federal income taxes.
Net investment income (loss) and net realized gains (losses)
may differ for financial statement and income tax purposes
primarily because of losses incurred subsequent to October 31,
which are deferred for income tax purposes. The character of
distributions made during the year from net investment income
or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to
the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the
income or realized gains were recorded by the Fund.
C. Investment Transactions - Investment transactions are recorded
on the trade date. Realized gains and losses are determined
using the specific identification cost method. Interest income
is recorded daily on an accrual basis. Dividend income is
recorded on the ex-dividend date.
D. Distributions to Shareholders - The Fund may declare dividends
quarterly, payable in March, June, September and December, or
on a date selected by the Trustees. In addition, distributions
may be made annually in December out of net realized gains
through October 31 of that year. Distributions to shareholders
are recorded on the ex-dividend date.
E. 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 amounts of assets,
liabilities, expenses and revenues reported in the financial
statements. Actual results could differ from those estimates.
(Continued)
CM ADVISERS FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2003
(Unaudited)
NOTE 2 - INVESTMENT ADVISERY FEE AND OTHER RELATED PARTY TRANSACTIONS
Pursuant to an investment Advisory agreement, Van Den Berg Management,
Inc. (d/b/a CM Fund Advisers) (the "Adviser") provides the Fund with a
continuous program of supervision of the Fund's assets, including the
composition of its portfolio, and furnishes advice and recommendations
with respect to investments, investment policies, and the purchase and
sale of securities. As compensation for its services, the Adviser
receives a fee at the annual rate of 1.25% of the Fund's average daily
net assets. The Adviser has entered into a contractual agreement (the
"Expense Limitation Agreement") with the Fund under which it has agreed
to waive or reduce its fees and to assume other expenses of the Fund,
if necessary, in an amount that limits the Fund's total operating
expenses (exclusive of interest, taxes, brokerage fees and commissions,
extraordinary expenses, and payments, if any, under a Rule 12b-1 Plan)
to not more than 2.00% of the average daily net assets of the Fund for
the fiscal year ending February 29, 2004. The total annual Fund
operating expenses will be limited to 2.25% of the Fund's average daily
net assets, which includes 0.25% for distribution and service fees.
There can be no assurance that the Expense Limitation Agreement will
continue in the future. Pursuant to the Expense Limitation Agreement,
the Adviser has waived a portion of its fee amounting to $22,683 ($0.04
per share) and reimbursed $21,647 of the operating expenses incurred by
the Fund for the period ended August 31, 2003.
The Fund's administrator, The Nottingham Company (the "Administrator"),
provides administrative services to and is generally responsible for
the overall management and day-to-day operations of the Fund pursuant
to a fund accounting and compliance agreement with the Trust. As
compensation for its services, the Administrator receives a fee at the
annual rate of 0.15% of the Fund's first $50 million of average daily
net assets, 0.125% of the next $50 million, 0.100% of the next $50
million, and 0.075% of average daily net assets over $150 million, with
a minimum administration fee of $2,000 per month. The Administrator
also receives a monthly fund accounting fee of $2,250 for accounting
and recordkeeping services for the initial class of shares and $750 per
month for each additional class of shares, plus 0.01% of the annual net
assets. The Administrator will also receive the following to procure
and pay the custodian for the Trust: 0.02% on the first $100 million of
the Fund's net assets and 0.009% on all assets over $100 million plus
transaction fees with a minimum fee of $400 per month. The
Administrator will also charge the Fund for certain expenses involved
with the daily valuation of portfolio securities, which are believed to
be immaterial in amount.
NC Shareholder Services, LLC (the "Transfer Agent") serves as the
Fund's transfer, dividend paying, and shareholder servicing agent. The
Transfer Agent maintains the records of each shareholder's account,
answers shareholder inquiries concerning accounts, processes purchases
and redemptions of Fund shares, acts as dividend and distribution
disbursing agent, and performs other shareholder servicing functions.
The Transfer Agent will be compensated for its services based upon a
$15 fee per shareholder per year, subject to a minimum fee of $1,750
per month, plus $500 per month for each additional class of shares. In
addition, the Transfer Agent shall be entitled to reimbursement of
actual out-of-pocket expenses incurred by the Transfer Agent on behalf
of the Trust or the Fund.
Certain Trustees and officers of the Trust are also officers of the
Adviser or the Administrator.
NOTE 3 - DISTRIBUTION AND SERVICE FEES
The Trustees, including a majority of the Trustees who are not
"interested persons" of the Trust as defined in the Act, adopted a
distribution plan pursuant to Rule 12b-1 of the Act (the "Plan"). The
Act regulates the manner in which a regulated investment company may
assume expenses of distributing and promoting the sales of its shares
and servicing of its shareholder accounts.
(Continued)
CM ADVISERS FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2003
(Unaudited)
The Plan provides that the Fund may incur certain expenses, which may
not exceed 0.25% per annum of the Fund's average daily net assets for
each year elapsed subsequent to adoption of the Plan, for payment to
the Distributor and others for items such as advertising expenses,
selling expenses, commissions, travel or other expenses reasonably
intended to result in sales of shares of the Fund or support servicing
of shareholder accounts. Expenditures incurred as service fees may not
exceed 0.25% per annum of the Fund's average daily net assets. The
Distributor has voluntarily waived all of these fees amounting to
$3,985 for the period ended August 31, 2003.
NOTE 4 - PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, excluding long-term U.S. government
securities and short-term obligations, aggregated $3,558,661 and
$47,837, respectively, for the period ended August 31, 2003. Purchases
and sales of long-term U.S. government securities aggregated $793,156
and $0, respectively, for the period ended August 31, 2003.
________________________________________________________________________________
CM ADVISERS FUND
________________________________________________________________________________
a series of the CM Advisers Family of Funds
This Report has been prepared for shareholders and may be
distributed to others only if preceded or accompanied by a
current prospectus.
ITEM 2. Code of Ethics.
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Not applicable.
ITEM 3. Audit Committee Financial Expert.
---------------------------------
Not applicable.
ITEM 4. Principal Accountant Fees and Services.
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Not applicable.
ITEMS 5-6. [Reserved]
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ITEM 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
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Not applicable.
ITEM 8. [Reserved]
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ITEM 9. Controls and Procedures.
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(a) The Principal Executive Officer and the Principal Financial Officer have
concluded that the registrant's disclosure controls and procedures are
effective based on their evaluation of the disclosure controls and
procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls
subsequent to the date of their most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
ITEM 10. Exhibits.
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(a)(1) Not applicable.
(a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed
herewith as Exhibit (a)(2) attached as Exhibit 99.CERT.
(b) Certifications required by Item 10(b) of Form N-CSR are filed herewith
as Exhibit (b) attached as Exhibit 99.906CERT.
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.
CM Advisers Family of Funds
By: (Signature and Title) /s/ Arnold Van Den Berg
________________________________
Arnold Van Den Berg
Trustee, Chairman, President and
Principal Executive Officer
Date: October 28, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: (Signature and Title) /s/ Arnold Van Den Berg
________________________________
Arnold Van Den Berg
Trustee, Chairman, President and
Principal Executive Officer
CM Advisers Family of Funds
Date: October 28, 2003
By: (Signature and Title) /s/ James D. Brilliant
________________________________
James D. Brilliant
Trustee, Treasurer and Principal Financial Officer
CM Advisers Family of Funds
Date: October 28, 2003