-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EVIsaC170jxuAaLFqN/dVv13kYbY3FrbsJgcdmppanrv6qkkkjZb6HNBAMVUvsqp VVNKu/Yv/LVD3CHwLxacCQ== 0001144204-04-010696.txt : 20040729 0001144204-04-010696.hdr.sgml : 20040729 20040729151930 ACCESSION NUMBER: 0001144204-04-010696 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040531 FILED AS OF DATE: 20040729 EFFECTIVENESS DATE: 20040729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASHPORT MUTUAL FUNDS TRUST CENTRAL INDEX KEY: 0001135191 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-10301 FILM NUMBER: 04938930 BUSINESS ADDRESS: STREET 1: 800 BRICKELL AVE STREET 2: SUITE 103 CITY: MIAMI STATE: FL ZIP: 33131 MAIL ADDRESS: STREET 1: 800 BRICKELL AVE STREET 2: SUITE 103 CITY: MIAMI STATE: FL ZIP: 33131 N-CSRS 1 v05132_ncsrs.txt ------------------------------- OMB APPROVAL ------------------------------- OMB NUMBER 3235-0570 EXPIRES: NOV. 30, 2006 ESTIMATED AVERAGE BURDEN HOURS PER RESPONSE: 19.3 ------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERRTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number : 811-10301 -------------------- ASHPORT MUTUAL FUNDS -------------------- (Exact name of registrant as specified in charter) 800 Brickell Avenue, Suite 103 MIAMI, FLORIDA 33131 -------------------- (Address of principal executive offices) Jeffrey Cimbal StateTrust Capital, LLC 800 Brickell Avenue, Suite 103 MIAMI, FLORIDA 33131 -------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-305-921-8100 -------------- Date of fiscal year end: NOVEMBER 30 ------------- Date of reporting period: MAY 31, 2004 --------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. Item 1. Reports to Stockholders - Semi-Annual Report dated May 31, 2004. ASHPORT MUTUAL FUNDS - -------------------------------------------------------------------------------- FINANCIAL STATEMENTS MAY 31, 2004 SEMI-ANNUAL C O N T E N T S Page - -------------------------------------------------------------------------------- FINANCIAL STATEMENTS (UNAUDITED) Letter to Our Shareholders 2 Schedules of Investments 3 - 7 Statement of Assets and Liabilities 8 Statements of Operations 9 Statements of Changes in Net Assets 10 - 12 Financial Highlights 13 - 15 Notes to Financial Statements 16 - 24 ............................................................ ASHPORT MUTUAL FUNDS Dear Shareholders, July 12, 2004 During the first part of 2004, the economy shifted into high gear. Corporate earnings consistently beat Wall Street's expectations. Consumer spending continued to fuel the economy and after a multi-year drought companies began to ramp up their spending. The equity markets, however, had an ambivalent reaction to the positive economic data. Initially the markets rose steadily through February. Then, the difficult situation in Iraq, constant fear of terrorism, rising oil prices and the fear of rising interest rates led to a pullback this spring. Looking ahead, the 2004 presidential election and international security will dominate the headlines. It is likely that these events will continue to distract investors. Finally, we want to thank you for the confidence you have placed in Ashport. It is our goal not only to find the best investments for you, but also to continue to earn your trust in every aspect of our business. Respectfully submitted, Joseph Turnes David Vurgait StateTrust Capital, CEO & President Chief Investment Officer 2 ASHPORT MUTUAL FUNDS SCHEDULE OF INVESTMENTS (UNAUDITED) - LARGE CAP FUND MAY 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------ SHARES DESCRIPTION MARKET VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS -73 % US COMMON STOCK HOLDINGS-71% Energy - 3% 751 Pioneer Nat Res $23,243 Consumer-Cyclical - 13% 551 Amazon (a) 26,724 880 Home Depot 31,610 578 Bed Bath & Beyond (a) 21,536 481 DR Horton 13,901 429 Lowes 22,981 ------------------- 116,752 Financials - 23% 842 Bank of New York 25,319 1467 E*trade (a) 16,738 1179 MBNA 29,947 956 Morgan Stanley 51,156 599 Merrill Lynch 34,023 678 New Century Financial 29,568 336 Lehman Bros. 25,418 ------------------- 212,169 Health Care - 9% 424 Amgen (a) 23,193 612 Johnson & Johnson 34,095 791 USANA Health Sciences (a) 22,021 ------------------- 79,309 Capital Goods- 8% 979 General Electric 30,466 409 Johnson Controls Inc 22,053 1007 Louisiana Pac Corp 23,262 ------------------- 75,781 Technology - 15% 580 Cisco Systems (a) 12,975 990 Altera (a) 22,661 778 Intel 22,212 874 Texas Instruments 22,820 1579 Hewlett-Packard 33,538 951 Microsoft 24,944 ------------------- 139,150 Foreign-2% Financials - 2% 486 Montpelier Re Holding 16,952 TOTAL COMMON STOCKS (COST $688,331) -73% 663,356 - ------------------------------------------------------------------------------------------------------------------------------------ 250,097 Evergreen Institutional Money Market Fund-27% 250,097 - ------------------------------------------------------------------------------------------------------------------------------------ Other assets and liabilities-(0%) (516) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS- 100% $ 912,937 - ------------------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing. See accompanying notes. 3 ASHPORT MUTUAL FUNDS SCHEDULE OF INVESTMENTS (UNAUDITED) - SMALL/MID CAP FUND MAY 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------ SHARES DESCRIPTION MARKET VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCK -73% US COMMON STOCK HOLDINGS-67% Basic Materials - 3% 39 NVR (a) $ 17,852 Consumer-Cyclical -11% 224 Corinthian Colleges (a) 6,364 386 DR Horton 11,155 814 Dollar General 15,792 338 Hot Topic (a) 7,328 500 Ross Stores 13,095 314 Williams Sonoma (a) 10,032 63,766 ------------------ Consumer Staples - 2% 924 Del Monte Foods (a) 9,490 Transportation - 2% 2132 Atlantic Coast (a) 12,003 Energy - 7% 540 Cimarex Energy Co. (a) 15,223 456 Pioneer Nat Res 14,113 314 Sempra Energy 10,478 39,814 ------------------ Financials - 13% 317 Amerigroup (a) 13,368 455 Gallagher Arthur & Co 14,492 652 E Trade Financial (a) 7,439 211 New Century Financial 9,202 668 The First American 17,341 394 WR Berkley 16,450 78,292 ------------------ Health Care - 15% 632 Amphenol Corp (a) 20,603 810 Health Management Associates 17,812 272 Omnicare Inc. 11,696 476 Par Pharmaceuticals (a) 20,063 484 Sybron Dental (a) 13,185 347 USANA Health Sciences 9,660 93,019 Technology - 14% 360 Affiliated Computer Services (a) 17,935 257 Engineered 13,415 498 Intel 14,219 1026 UTSTARCOM Inc 31,929 223 Qlogic (a) 6,846 84,344 ------------------ Foreign - 6% Financials - 6% 335 Montpelier 11,685 497 Renaissancre 26,266 37,951 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL COMMON STOCKS (COST $463,628) - 73% 436,491 - ------------------------------------------------------------------------------------------------------------------------------------ 154,638 Evergreen Institutional Money Market Fund-26% 154,638 - ------------------------------------------------------------------------------------------------------------------------------------ Other assets and liabilities-1% 9,901 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS-100% $ 601,030 - ------------------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing. See accompanying notes. 4 ASHPORT MUTUAL FUNDS SCHEDULE OF INVESTMENTS (UNAUDITED) - GLOBAL FIXED INCOME FUND MAY 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------ PRINCIPAL AMOUNT DESCRIPTION MARKET VALUE - ------------------------------------------------------------------------------------------------------------------------------------ BONDS - 69% CORPORATE BONDS- 29% Capital Goods - 5% 10,000 McDonnell Douglas 6.875% Due 11/1/06 10,743 10,000 Raytheon 6.750% Due 8/15/07 10,851 ------------------- $21,594 Energy - 3% 10,000 Southwestern Electric Power 7.000% Due 9/1/07 10,929 Financials - 6% 20,000 Bank One Corp. 4.9% Due 04/30/15 18,660 7,000 GMAC Smartnote 7.000% Due 10/15/11 7,070 ------------------- 25,730 Consumer Staples - 5% 20,000 Hertz Corp 6.25% Due 03/15/09 20,212 Consumer Cyclical - 5% 20,000 General Motors 7.25% Due 03/02/11 20,876 Communication Services - 5% 20,000 AT&T Corp 7.3% Due 11/15/11 21,568 Foreign - 39% Russia - 5% 20,000 Russian Fed. 8.25% Due 03/31/10 21,600 Dominican- 3% 20,000 Dominican Republic 9.04% Due 01/23/13 13,200 Brazil - 4% 20,000 Fed. Brazil 10.0% Due 08/07/11 18,650 Colombia - 5% 20,000 Colombia 10.0% Due 01/23/12 20,250 Ecuador- 4% 20,000 Republic of Ecuador 12.0% 11/15/12 18,100 World-6% 25,000 European Bank 6.25% Due 05/09/18 25,098 Turkey- 5% 20,000 Turkey Republic 10.5% Due 01/13/08 21,200 Netherland - 7% 30,000 RaboBank 8.25% Due 11/14/18 28,800 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL BONDS (AMORTIZED COST $299,392) 287,807 - ------------------------------------------------------------------------------------------------------------------------------------ 161,020 Evergreen Institutional Money Market Fund-39% 161,020 - ------------------------------------------------------------------------------------------------------------------------------------ Other assets and liabilities - (8%) (32,085) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS - 100% $416,742 - ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes. 5 ASHPORT MUTUAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) AS OF MAY 31, 2004 - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------- ASSETS Large Cap Small/Mid Cap Global Fixed Fund Fund Income Fund - --------------------------------------------------------------------------------------------------------------------- Investment in securities, at value (cost $688,331, $463,628, & $299,392 respectively) (Note 4) $ 913,453 $ 591,129 $ 448,827 Cash 0 0 0 Dividends receivable 323 131 -- Interest receivable & accrued interest -- -- 4,647 Receivable for investment securities sold -- 9,767 -- Receivable for reimbursement (Note 3) 305 728 929 - --------------------------------------------------------------------------------------------------------------------- Total assets $ 914,081 601,755 454,403 - --------------------------------------------------------------------------------------------------------------------- LIABILITIES - --------------------------------------------------------------------------------------------------------------------- Due to distributor (Note 3) 1,144 725 1,063 Payable for securities purchased -- -- 36,598 - --------------------------------------------------------------------------------------------------------------------- Total liabilities 1,144 725 37,661 - --------------------------------------------------------------------------------------------------------------------- NET ASSETS 912,937 601,030 416,742 - --------------------------------------------------------------------------------------------------------------------- Net assets consist of the following: Paid-in Capital 895,537 621,582 432,055 Undistributed net investment loss (11,523) (11,493) (1,693) Undistributed realized gain (loss) 53,798 18,078 (994) Net unrealized gain (loss) on investments (24,975) (27,137) (12,626) - --------------------------------------------------------------------------------------------------------------------- Total 912,937 601,030 416,742 - --------------------------------------------------------------------------------------------------------------------- Class A Net Asset Value Per Share 8.56 9.41 9.40 Offering Price Per Share 8.99 9.88 9.87 Class C Net Asset Value Per Share 8.39 9.30 9.34 Offering Price Per Share 8.47 9.39 9.43
See accompanying notes. 6 ASHPORT MUTUAL FUNDS STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE PERIOD ENDED MAY 31, 2004 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------ Large Cap Small/Mid Global Fixed Fund Cap Fund Income Fund - ------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME Dividends1 4,332 2,016 $ 6,330 Interest -- -- 1,124 - ------------------------------------------------------------------------------------------------------------ Total revenues 4,332 2,016 7,454 - ------------------------------------------------------------------------------------------------------------ EXPENSES Investment advisory fees (Note 3) 4,941 3,460 1,032 Administration fees (Note 3) 998 699 516 Distribution (12b-1) fees (Note 3) Class A 316 276 207 Class C 2,737 1,702 1,209 Trustee fees (Note 3) 1,159 1,159 1,159 Custody fees 2,406 2,406 2,406 Insurance 596 596 596 Printing 500 500 500 Professional fees 15,312 15,312 15,312 - ------------------------------------------------------------------------------------------------------------ Total expenses 28,965 26,110 22,937 Fees waived/expenses reimbursed (Note 3) (18,173) (18,176) (18,003) - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ Net expenses 10,792 7,934 4,934 - ------------------------------------------------------------------------------------------------------------ NET INVESTMENT GAIN (LOSS) (6,460) (5,918) 2,520 - ------------------------------------------------------------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on investments 46,647 12,181 -- Change in unrealized gain (loss) on investments (15,025) (33,110) (13,308) - ------------------------------------------------------------------------------------------------------------ NET GAIN ON INVESTMENTS 31,622 (20,929) (13,308) - ------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 25,162 (26,847) (10,788) - ------------------------------------------------------------------------------------------------------------
1 Dividends include proceeds received from the money market dividends as well as cash dividends from stocks. See accompanying notes. 7 ASHPORT MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - LARGE CAP FUND - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------ SIX MONTHS Year Ended MAY 31, 2004 Nov. 30, 2003 - ------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) ($ 6,460) ($ 4,235) Net realized gain (loss) on investments 46,647 94,484 Change in unrealized gain (loss) on investments (15,025) (10,237) - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 25,162 80,012 CAPITAL GAIN DISTRIBUTION (80,294) CAPITAL SHARE TRANSACTIONS (NOTE 6) 362,717 491,013 - ------------------------------------------------------------------------------------------------------------------ TOTAL INCREASE IN NET ASSETS 307,585 571,025 NET ASSETS - BEGINNING 605,352 34,327 - ------------------------------------------------------------------------------------------------------------------ NET ASSETS - ENDING (including undistributed net investment loss of $6,460) 912,937 $ 605,352 - ------------------------------------------------------------------------------------------------------------------
See accompanying notes. 8 ASHPORT MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - SMALL/MID CAP FUND - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED Year Ended MAY 31, 2004 Nov. 30, 2003 - ------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment Income (loss) (5,918) ($ 4,529) Net realized gain on investments 12,181 20,805 Change in unrealized gain on investments (33,110) 5,420 - ------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting 26,847 21,696 from operations CAPITAL GAIN DISTRIBUTION (15,356) CAPITAL SHARE TRANSACTIONS (NOTE 6) 183,068 387,382 - ------------------------------------------------------------------------------------------------------- TOTAL INCREASE IN NET ASSETS 140,864 409,078 NET ASSETS - BEGINNING 460,166 51,088 - ------------------------------------------------------------------------------------------------------- NET ASSETS - ENDING (including undistributed net investment loss of $5,918) 601,030 $ 460,166 - -------------------------------------------------------------------------------------------------------
See accompanying notes. 9 ASHPORT MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) - GLOBAL FIXED INCOME FUND - --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED Year Ended MAY 31, 2004 Nov. 30, 2003 - --------------------------------------------------------------------------------------------------------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment Income (loss) 2,520 ($ 4,711) Net realized gain (loss) on investments -- 1,237 Change in unrealized gain (loss) on investments (13,308) 1,196 - --------------------------------------------------------------------------------------------------------- Net decrease in net assets resulting from operations (2,278) (10,788) CAPITAL SHARE TRANSACTIONS (NOTE 6) 22,113 376,609 - --------------------------------------------------------------------------------------------------------- TOTAL INCREASE IN NET ASSETS 11,325 374,331 NET ASSETS - BEGINNING 405,417 31,788 - --------------------------------------------------------------------------------------------------------- NET ASSETS - ENDING (including undistributed net investment (loss) income of ($2,520) 416,742 $ 405,417 - ---------------------------------------------------------------------------------------------------------
See accompanying notes. 10 ASHPORT MUTUAL FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED) - LARGE CAP FUND - --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- SIX MONTHS ENDED MAY31, 2004 Year Ended Nov. 30,2003 Dec. 18, 2001 - Nov. 30, 2002 -------------------------------------------------------------------------------- CLASS A CLASS C Class A Class C 2 Class A 3 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE (For a share of the fund outstanding throughout the period): Net asset value, beginning of period $ 9.26 $ 9.22 $ 7.53 $ 7.28 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Operations Net investment loss (0.07) (0.07) (0.12) (0.12) (0.16) Net realized and unrealized gain (loss) on investments 0.58 0.45 1.85 2.06 (2.31) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 0.51 0.38 1.73 1.94 (2.47) - ------------------------------------------------------------------------------------------------------------------------------------ Capital gain distribution (1.21) (1.21) Net asset value, end of period 8.56 8.39 $ 9.26 $ 9.22 $ 7.53 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS AND SUPPLEMENTAL DATA: Total return (loss)1 5.51% 4.12% 22.97% 26.65% (24.70%) Net Assets, end of period 287,112 625,825 $ 218,054 $ 387,298 $ 34,327 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS: - ------------------------------------------------------------------------------------------------------------------------------------ Expenses before fees waived and expenses reimbursed 7.19%2 7.33%2 13.88% 13.66%2 87.30%2 Fees waived and expenses reimbursed (4.512) (4.60 2 (11.20%) (11.02%2) (83.38%2) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 2.68%2 2.73%2 2.68% 2.64%2 3.92%2 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment loss (1.60%2) (1.63%2) (1.45%) (1.42%2) (2.73%2) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 231% 826% 298% - ------------------------------------------------------------------------------------------------------------------------------------
1 Sales fees are not reflected and total return is not annualized for periods less than one year. 2 Annualized. 3 As of November 30, 2002, no "Class C" shares had been issued. See accompanying notes. 11 ASHPORT MUTUAL FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED) - SMALL/MID CAP FUND - --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- SIX MONTHS ENDED MAY 31, 2004 Year Ended Nov. 30,2003 Dec. 18, 2001 - Nov. 30, 2002 -------------------------------------------------------------------------------- CLASS A CLASS C Class A Class C 2 Class A 3 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE (For a share of capital stock outstanding throughout the period): Net asset value, beginning of period $ 10.11 $ 10.07 $ 9.83 $ 8.71 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Operations Net investment loss (0.10) (0.10) (0.17) (0.16) (0.20) Net realized and unrealized gain (loss) on investments (0.27) (0.34) 0.45 1.52 0.03 - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations 0.28 1.36 (0.17) (0.37) (0.44) - ------------------------------------------------------------------------------------------------------------------------------------ Capital distribution (0.33) (0.33) Net asset value, end of period 9.41 9.30 $ 10.11 $ 10.07 $ 9.83 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS AND SUPPLEMENTAL DATA: Total return (loss)1 (3.66%) (4.37%) 2.85% 15.61% (1.70%) Net Assets, End of Period 223,291 377,739 $ 219,918 $ 240,248 $ 51,088 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS: - ------------------------------------------------------------------------------------------------------------------------------------ Expenses before fees waived and expenses reimbursed 9.33%2 9.45%2 18.74% 15.94%2 70.92%2 Fees waived and expenses reimbursed (6.49)2 (6.58)2 (15.76) (13.41%2) (67.01%2) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 2.83%2 2.87%2 2.98% 2.54%2 3.91%2 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment loss (2.11%2) (2.14%2) (2.21%) (1.88%2) (3.16%2) - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 84% 374% 9% - ------------------------------------------------------------------------------------------------------------------------------------
1 Sales fees are not reflected and total return is not annualized for periods less than one year. 2 Annualized. 3 As of November 30, 2002, no "Class C" shares had been issued. See accompanying notes. 12 ASHPORT MUTUAL FUNDS FINANCIAL HIGHLIGHTS (UNAUDITED) - GLOBAL FIXED INCOME FUND - --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- SIX MONTHS ENDED MAY31, 2004 Year Ended Nov. 30,2003 Dec. 18, 2001 - Nov. 30, 2002 -------------------------------------------------------------------------------- CLASS A CLASS C Class A Class C 2 Class A 3 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE (For a share of capital stock outstanding throughout the period): Net asset value, beginning of period $ 9.66 $ 9.60 $ 9.54 $ 9.65 $ 10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Operations Net investment income (loss) 0.06 0.06 0.04 (0.14) 0.21 Net realized and unrealized gain (loss) on investments (0.32) (0.32) 0.08 0.09 (0.67) - ------------------------------------------------------------------------------------------------------------------------------------ Total from investment operations (0.05) (0.46) (0.26) (0.26) 0.12 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period 9.40 9.34 $ 9.66 $ 9.60 $ 9.54 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS AND SUPPLEMENTAL DATA: Total return (loss)1 (2.69%) (2.71%) 1.26% (0.52%) (4.60%) Net Assets, End of Period 161,877 254,865 $ 166,334 $ 239,785 $ 31,788 - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS: - ------------------------------------------------------------------------------------------------------------------------------------ Expenses before fees waived and expenses 13.92% 13.90%2 75.61%2 reimbursed 11.13%2 11.20%2 Fees waived and expenses reimbursed (8.66 2 (8.712) (10.44) (10.422) (71.692) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 2.47% 2.49% 3.48% 3.48%2 3.92%2 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income (loss) 1.22% 1.23% (1.73%) (1.73%2) 2.33%2 - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 0% 196% 148% - ------------------------------------------------------------------------------------------------------------------------------------
1 Sales fees are not reflected and total return is not annualized for periods less than one year. 2 Annualized. 3 As of November 30, 2002, no "Class C" shares had been issued. 13 ASHPORT MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION AND RELATED MATTERS (UNAUDITED) - -------------------------------------------------------------------------------- FUNDS' ORGANIZATION Ashport Mutual Funds (the "Trust") was organized as a Massachusetts business trust on May 24, 2001 and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Ashport Large Cap Fund, Ashport Small/Mid Cap Fund, and Ashport Global Fixed Income Fund, formerly known as Ashport Fixed Income Fund (collectively the "Funds") are separate investment portfolios of the Trust. Each of the Funds operates as an independent mutual fund, issuing and redeeming shares for capital activity and investing in various types of financial instruments based on the respective Fund's investment objectives. The Large Cap Fund and Small/Mid Cap Fund normally invest primarily in equity securities and each has an investment objective of long-term capital appreciation. The Global Fixed Income Fund normally invests primarily in global fixed income securities and seeks current income. Prior to September 16, 2003, the Global Fixed Income Fund was known as the Fixed Income Fund and was managed under a different investment policy. All operations and activity for the year ended November 30, 2003, are reflected in these financial statements under the Global Fixed Income Fund name. - -------------------------------------------------------------------------------- NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - -------------------------------------------------------------------------------- The following is a summary of the significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted accounting principles (GAAP) in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. 14 - -------------------------------------------------------------------------------- NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (UNAUDITED) - -------------------------------------------------------------------------------- PORTFOLIO VALUATION Investments in securities traded on a national securities exchange are valued at the last quoted sales price on the securities exchange on which such securities are primarily traded; 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 last quoted bid price. Securities and other assets listed on a foreign exchange or through any system providing for same day publication of actual prices are valued at the last quoted sale price available before the time when assets are valued. Securities for which quotations are not readily available are valued at fair value as determined by the Investment Adviser under the direction of the Board of Trustees. Fixed Income securities available are valued at fair value as determined by the Investment Advisor purchased with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, or by reference to other factors (e.g., pricing services or dealer quotations). SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Security transactions are accounted for on a trade date plus one basis. Net realized gains or losses on sales of securities are determined by the first in first out method (FIFO). Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities where the ex-dividend date may have past are recorded as soon as the Fund is informed of such a dividend in the exercise of reasonable diligence. Interest income is recognized on an accrual basis. Market discounts, premiums, and original issue discounts on fixed-income securities are amortized daily over the expected life of the security. SHARE CLASS ALLOCATIONS Income, fees, and expenses (other than class-specific fees and expenses), realized and unrealized gains and losses are allocated daily among the various share classes based on their relative outstanding shares. Class specific fees and expenses are charged directly to the applicable share class. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends and distributions paid to shareholders, if any, are recorded on the ex-dividend date. INCOME TAXES OF THE FUNDS Each Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986 as amended. By so qualifying, each Fund will not be subject to federal income taxes to the extent that it distributes a majority of taxable or tax-exempt income, if any, for its tax year-end. Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes. 15 - -------------------------------------------------------------------------------- NOTE 3. RELATED PARTY TRANSACTIONS - -------------------------------------------------------------------------------- StateTrust Capital, LLC, a registered investment adviser, (the Investment Adviser), also serves as the administrator and transfer agent for all of the Funds. Additionally, StateTrust Investments, Inc., a registered broker-dealer, has been engaged to be the distributor of the Funds' shares. Both of these entities are related to the Trust and Funds by virtue of common management. Each Fund is responsible for its own direct expenses; however, the Investment Adviser has agreed to absorb all start-up and organizational costs of the Funds and to bear operating expenses of the Funds to the extent necessary to limit each Fund's annualized expenses to 3.5% in accordance with the Expense Waiver and Reimbursement Agreement, as disclosed below. Effective March 1, 2004, the Investment Adviser has agreed to lower the expense cap to 3.0%. Effective June 1, 2004, the Investment Adviser has agreed to lower the expense cap to 2.5%. The expense cap is calculated at the fund level. Since the funds are multi-class funds, the expenses for a particular class maybe higher or lower than the expense cap. INVESTMENT ADVISORY AGREEMENT StateTrust Capital, LLC will earn investment advisory fees calculated daily and payable monthly, for performing investment advisory services for each Fund and each class of shares of the Funds as follows: Large Cap Fund - 1.25% of average daily net assets Small/Mid Cap Fund - 1.25% of average daily net assets Global Fixed Income Fund - 0.50% of average daily net assets For the period ended May 31, 2004, investment advisory fees for the Large Cap Fund, Small / Mid Cap Fund and the Global Fixed Income Fund amounted to $4,941, $3,460 and $1,032, respectively. ADMINISTRATION AGREEMENT Each Fund will pay StateTrust Capital, LLC 0.25% of the average net assets, calculated daily and paid on a monthly basis. For the period ended May 31, 2004, administrative fees for the Large Cap Fund, Small / Mid Cap Fund and the Global Fixed Income Fund amounted to $998, $699, and $516, respectively, and were included as administration fees in the accompanying statements of operations EXPENSE WAIVER AND REIMBURSEMENT AGREEMENT Pursuant to the Expense Waiver and Reimbursement Agreement (the "Agreement") and the Investment Advisory Agreement, the Investment Adviser has agreed to reduce all or a portion of its management fee and, if necessary, reimburse expenses associated with operating the Funds to the extent necessary to limit annualized expenses of each Fund to 3.5%. Effective March 1, 2004, the Investment Adviser agreed to reduce the expense cap to 3.0% of the average daily net assets calculated at the fund level. Effective June 1, 2004, the Investment Adviser agreed to reduce the expense cap to 2.5% of the average daily net assets calculated at the fund level. Since the funds are multi-class funds, the expenses for a particular class may be higher or lower than the 2.5% expense cap. The Agreement is effective for the period of one year from the effective date of the Funds and shall continue in effect thereafter provided each such continuance is specifically approved by a majority of the Trustees of the Trust. The Agreement shall automatically terminate upon the termination of the Investment Advisory Agreement. 16 Each Fund agrees to reimburse the Investment Adviser on a monthly basis such deferred fees, including any expenses borne by the Investment Adviser in later periods provided however, that a Fund is not obligated to pay any such fees more than three years after the end of the fiscal year in which the fee or expense was deferred. As of May 31, 2004, cumulative fees waived and expenses reimbursed amounted to $65,940, $68,169, and $64,829, for the Large Cap Fund, Small/Mid Cap Fund and Global Fixed Income Fund, respectively. Should the Fund achieve and maintain a sufficient asset level to support repayment of these deferred amounts, an expense would be recorded in future periods to the extent that amount will not cause the Funds to exceed the stated percentage expense and time frame limitations. Below is a chart with the time frame on the expiration of expenses.
------------------------------------------------------------------------------------------------------------- AMOUNT OF EXPENSES TO EXPIRE AS OF MAY 31, 2004 ------------------------------------------------------------------------------------------------------------- December 1, 2005 December 1, 2006 December 1, 2007 Total ------------------------------------------------------------------------------------------------------------- Ashport Large Cap - 33,726 32,214 65,940 ------------------------------------------------------------------------------------------------------------- Ashport Small/Mid Cap 121 37,317 30,731 68,169 ------------------------------------------------------------------------------------------------------------- Ashport Fixed Income - 36,100 28,729 64,829 ------------------------------------------------------------------------------------------------------------- Total $121 107,143 91,674 198,938 -------------------------------------------------------------------------------------------------------------
For the period ended May 31, 2004, expenses reimbursed amounted to $15,669, $16,659, and $16,191, for the Large Cap Fund, Small/Mid Cap Fund and Global Fixed Income Fund, respectively. These respectively combined amounts are included as fees waived/expenses reimbursed in the accompanying statements of operations. TRANSFER AGENT AGREEMENT StateTrust Capital, LLC serves as the Trust's transfer agent for no additional cost. Its services include shareholder recordkeeping, communications, and transaction processing. 17 - -------------------------------------------------------------------------------- NOTE 3. RELATED PARTY TRANSACTIONS (CONTINUED) (UNAUDITED) - -------------------------------------------------------------------------------- DISTRIBUTION PLAN StateTrust Investment, Inc. serves as the Trust's distributor (the "Distributor"). The Funds' "Class A" shares are subject to a sales charge ranging from 2.25% up to 4.75% depending on the amount of purchase, and the Funds' "Class C" shares are subject to a sales charge of 1.00%. Additionally, all "Class A" shares and "Class C" shares for each Fund will be charged a 12b-1 distribution fee of .25% and 1.00% of the average daily net assets, respectively. Amounts owed to the distributor for 12b-1 fees are reduced by the net amount of sales fees retained by the distributor. Upon the termination of this agreement, the Funds shall pay to the distributor such compensation that is prorated for that part of the month in which the agreement is in effect, as may be payable for the period prior to the effective date of such termination. Distribution fees for the period ended May 31, 2004 amounted to $3,053 $1,978, and $1,416, for the Large Cap Fund, Small/Mid Cap Fund and Global Fixed Income Fund, respectively and are included as distribution (12b-1) fees in the accompanying statements of operations. At May 31, 2004, distribution fees due to the distributor amounted to $1,144, $725, and $1,063, for the Large Cap Fund, Small/Mid Cap Fund and Global Fixed Income Fund, respectively and are included in the accompanying statements of assets and liabilities. See Note 6 for disclosures of sales charges earned by this affiliated distributor. TRUSTEES FEES Each independent Trustee of the Trust receives $500 for each regular meeting. For the period ended May 31, 2004, trustee fees expensed amounted to $1,159 for each Fund, and these amounts are included as trustee fees in the accompanying statements of operations. BROKERAGE COMMISSIONS The Distributor charged all three Funds a broker commission ranging from $23 to $25 per transaction. These commissions charged amounted to $3,600 $2,125 and $0 for the period ended May 31, 2004 for the Large Cap Fund, Small / Mid Cap Fund and the Global Fixed Income Fund, respectively. 18 - -------------------------------------------------------------------------------- NOTE 4. INVESTMENT TRANSACTIONS (UNAUDITED) - -------------------------------------------------------------------------------- Purchases and sales of investment securities were as follows for each Fund:
Large Cap Fund Small/Mid Cap Fund Global Fixed Income Fund ---------------------------------------------------------------------------------------------- Purchase $1,696,747 572,027 346,211 Sales $1,451,162 358,017 - ----------------------------------------------------------------------------------------------
The Funds' cost basis in investments at May 31, 2004, were the same for both U.S. federal income tax and financial statement purposes, and amounted to $688,331, $463,628, and $299,392, for the Large Cap Fund, Small/Mid Cap Fund and Global Fixed Income Fund, respectively. The net unrealized gain (loss) and gross unrealized gain and gross unrealized loss for U.S. federal income tax and financial statement purposes, were as follows for each Fund:
Global Fixed Large Cap Fund Small/Mid Cap Fund Income Fund ---------------------------------------------------------------------------------------------- Gross unrealized gain $9,821 7,265 1,839 Gross unrealized loss (34,796) (34,402) (13,424) ---------------------------------------------------------------------------------------------- Net unrealized gain (loss) (24,975) (27,137) (11,586) ----------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- NOTE 5. DISTRIBUTIONS - -------------------------------------------------------------------------------- For the year ended November 30, 2003, ordinary income distributions of $80,294 (or $1.21 per share) and $15,356 (or $0.33 per share), for the Large Cap Fund and Small/Mid Cap Fund, respectively, were declared on January 15, 2004, to be paid on January 20, 2004 to shareholders of record on November 30, 2003. As of November 30, 2003, the components of distributable earnings on an income tax basis, without giving effect to the January 15, 2004 distributions noted above, were as follows:
Global Fixed Large Cap Fund Small/Mid Cap Fund Income Fund -------------------------------------------------------------------------------------------------------- Undistributed ordinary income (loss) $ 44,879 $8,598 ($1,037) -------------------------------------------------------------------------------------------------------- Undistributed long-term capital losses - - -------------------------------------------------------------------------------------------------------- Capital loss carryforwards - ($1,003) ($2,231) -------------------------------------------------------------------------------------------------------- Unrealized gain (loss) ($ 24,975) ($27,137) ($11,586) --------------------------------------------------------------------------------------------------------
The capital loss carryforwards for the Small/Mid Cap Fund and the Global Fixed Income Fund will expire On November 30, 2008. 19 - -------------------------------------------------------------------------------- NOTE 6. CAPITAL STRUCTURES AND SHARE TRANSACTIONS - -------------------------------------------------------------------------------- Each Fund is comprised of an unlimited number of $0.01 par value "Class A" and "Class C" shares. Each class of shares is subject to varying fees as detailed in Note 3. Additionally, an investor's "Class C" shares are automatically converted to "Class A" shares, at no conversion cost 8 years after being purchased. Each Fund and class of shares has a $500 minimum initial investment and a $250 minimum on all subsequent investments. Shares of capital stock sold and redeemed for the Second Quarter ended May 31, 2004, were as follows:
----------------------------------------------------------------------------------------- LARGE CAP FUND ----------------------------------------------------------------------------------------- 2004 2003 -------------------------------------------------------------- SHARES AMOUNT Shares Amount ----------------------------------------------------------------------------------------- CLASS A ----------------------------------------------------------------------------------------- Shares Sold 10,255 $ 87,884 19,503 $ 157,830 Shares Redeemed (240) (2,060) (524) (4,606) ----------------------------------------------------------------------------------------- Net Increase 10,015 85,824 18,979 153,224 ----------------------------------------------------------------------------------------- CLASS C ----------------------------------------------------------------------------------------- Shares Sold 33,407 283,638 49,651 368,475 Shares Redeemed (801) (6,745) (7,632) (30,686) ----------------------------------------------------------------------------------------- Net Increase 32,606 276,893 42,019 337,789 -----------------------------------------------------------------------------------------
Sales charges paid to the Distributor, whom is disclosed in Note 3, on Class A and Class C shares amounted to $150 and $1,929 & $4,559 and $2,632, respectively for the second quarter ended May 31, 2004, year ended November 30, 2003 and $24 for the period ended November 30, 2002. 20 - -------------------------------------------------------------------------------- NOTE 6. CAPITAL STRUCTURES AND SHARE TRANSACTIONS (CONTINUED) (UNAUDITED) - --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------- SMALL/MID CAP FUND -------------------------------------------------------------------------------------------------------- 2004 2003 ----------------------------------------------------------------------------- SHARES AMOUNT Shares Amount -------------------------------------------------------------------------------------------------------- CLASS A -------------------------------------------------------------------------------------------------------- Shares Sold 2,292 $21,879 17,320 $164,635 Shares Redeemed (319) (3,079) (766) (7,469) -------------------------------------------------------------------------------------------------------- Net Increase 1,973 18,800 16,554 157,166 -------------------------------------------------------------------------------------------------------- CLASS C -------------------------------------------------------------------------------------------------------- Shares Sold 17,531 171,787 27,126 241,785 Shares Redeemed (764) (7,519) (3,272) (11,569) -------------------------------------------------------------------------------------------------------- Net Increase 16,767 165,611 23,854 230,216 --------------------------------------------------------------------------------------------------------
Sales charges paid to the Distributor, whom is disclosed in Note 3, on Class A and Class C shares amounted to $0 and $1,338 & $4,587 and $3,612, respectively for the first quarter ended May 31, 2004, year ended November 30, 2003. No sales charges were paid for the period ended November 30, 2002.
------------------------------------------------------------------------------------------------------- GLOBAL FIXED INCOME FUND ------------------------------------------------------------------------------------------------------- 2004 2003 ---------------------------------------------------------------------------- SHARES AMOUNT Shares Amount ------------------------------------------------------------------------------------------------------- CLASS A ------------------------------------------------------------------------------------------------------- Shares Sold - - 13,886 $134,493 Shares Redeemed - - - - ------------------------------------------------------------------------------------------------------- Net Increase - - 13,886 134,493 ------------------------------------------------------------------------------------------------------- CLASS C ------------------------------------------------------------------------------------------------------- Shares Sold 6,195 58,806 24,967 242,116 Shares Redeemed 3,866 36,693 - - ------------------------------------------------------------------------------------------------------- Net Increase 2,329 22,113 24,967 242,116 -------------------------------------------------------------------------------------------------------
Sales charges paid to the Distributor, whom is disclosed in Note 3. On Class A and Class C shares amounted to $0 and $594, respectively for the second quarter ended May 31, 2004 respectively for the year ended November 30, 2003. No sales charges were paid for the period ended November 30, 2002 21 - -------------------------------------------------------------------------------- PROXY VOTING POLICIES AND PROCEDURES (UNAUDITED) - -------------------------------------------------------------------------------- The Funds have adopted Proxy Voting Policies and Procedures under which the Funds vote proxies relating to securities ("portfolio proxies") held by a Fund. A description of the Funds' Proxy Voting Policies and Procedures is available without charge, upon request, by calling the Funds toll free at 888-282-2290. In addition, the Funds will be required to file new Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Funds' Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 888-282-2290 and (ii) on the SEC's website at WWW.SEC.GOV. - -------------------------------------------------------------------------------- TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) - -------------------------------------------------------------------------------- David Vurgait, President and Trustee Jeffrey Cimbal, CFO and Trustee Brian Barrett, Trustee Jaime Maya, Trustee Timothy Burch, Trustee Anthony Golden, Trustee - -------------------------------------------------------------------------------- PRIVACY INFORMATION STATEMENT (UNADUITED) - -------------------------------------------------------------------------------- As required by the Securities and Exchange Commission and the Federal Trade Commission, the Privacy Policy below explains our handling of information that we have in our records that is personal and private to you. It reiterates our commitment to keeping that information private. In the course of doing business with you, we collect nonpublic information about you from the following sources: o Information we receive from you on applications or other forms, such as social security numbers, personal financial information, occupation, and birth date; o Information about your transactions with us, our affiliates or others such as payment history, account balances, assets, past transactions; and o Information we collect from you through your account inquiries by mail, e-mail or telephone. We do not disclose any nonpublic personal information about our customers or former customers to any nonaffiliated third party, except with prior consent or as permitted by law. Disclosure permitted by law includes information to our service providers, such as the transfer agent, custodian, shareholder communication firms, consultants and clearing firms. We only share with these service providers the information they need to provide those services and they are required to use this information only to provide the services. We maintain physical, electronic and procedural safeguards to ensure the integrity and confidentiality of your nonpublic personal information in the manner described above. 22 Item 2. Code of Ethics (a). The Registrant's investment adviser as of the end of the period covered in this report has adopted a Code of Conduct Policy ("Code of Conduct") that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party. (b). There have been no amendments, during the period covered by the report, to a provision of its Code of Conduct that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party and that relates to any element of the Code of Conduct description. (c). There have been no waivers granted, during the period covered by the report, including an implicit waiver, from a provision of the Code of Conduct to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions. Item 3. Audit Committee Financial Expert. As of the end of the period covered in this report, the Registrant's Board of Trustees has determined that W. Brian Barrett is qualified to serve as an audit committee financial expert serving on it's audit committee and that he is "independent." Item 4. Principal Accountant Fees and Services 2002 2003 ---- ---- (a). Audit Fees - $15,000 $36,000 (b). Audit Related Fees - $______ $______ (c). Tax Fees - $3,600 $3,600 (d). All Other Fees - $______ $______ Item 5. Audit Committee of Listed Registrants. Not Applicable. Item 6. [Reserved] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not Applicable. 23 Item 8. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchases. Not Applicable. Item 9. Controls and Procedures. (a) The registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(c)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 10. Exhibits. Exhibit 1. Code of Ethics. Exhibit 2 (a). Certification required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. Exhibit 2 (b). Certification required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. 24 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) ASHPORT MUTUAL FUNDS -------------------- By (Signature and Title)* /S/JEFFREY CIMBAL, CHIEF FINANCIAL OFFICER ------------------------------------------ Date JULY 28, 2004 ------------- 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/DAVID VURGAIT, PRESIDENT --------------------------- Date JULY 28, 2004 ------------- 25 EX-99.CERT 2 v05132_ex2a.txt CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT CERTIFICATION OF DAVID VURGAIT I, David Vurgait, certify that: 1. I have reviewed this report on Form N-CSR of the Ashport Mutual Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the Registrant and have: (a) designed such disclosure controls and procedures to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) evaluated the effectiveness of the Registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and (c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The Registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the Registrant's auditors and the audit committee of the Registrant's Board of Trustees (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant's ability to record, process, summarize, and report financial data and have identified for the Registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls; and 6. The Registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: JULY 28, 2004 /S/DAVID VURGAIT, PRESIDENT - --------------------------- [Signature] [Title] 26 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT CERTIFICATION OF JEFFREY CIMBAL I, Jeffrey Cimbal, certify that: 1. I have reviewed this report on Form N-CSR of the Ashport Mutual Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the Registrant and have: a. designed such disclosure controls and procedures to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. evaluated the effectiveness of the Registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c. presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The Registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the Registrant's auditors and the audit committee of the Registrant's Board of Trustees (or persons performing the equivalent functions): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the Registrant's ability to record, process, summarize, and report financial data and have identified for the Registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal controls; and 6. The Registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: JULY 28, 2004 /S/JEFFREY CIMBAL, CHIEF FINANCIAL OFFICER - ------------------------------------------ [Signature] [Title] 27 EX-99.906 3 v05132_ex2b.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT I, David Vurgait, Principal Executive Officer and Principal Financial Officer of the Ashport Mutual Funds (the "Registrant") certify that: 1. Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents in all material respects, the financial conditions and results of operations of the Registrant. /s/ David Vurgait _____________________________ David Vurgait 28 -----END PRIVACY-ENHANCED MESSAGE-----