-----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, Dr/87oU3+3akXq9CxJAaqjQfhRT1VETXJJSj6XWgESJBKse9glFwybtXnzfvmcZY VIktYIV54NrbyTzHU2m/9w== /in/edgar/work/20000609/0001012709-00-000526/0001012709-00-000526.txt : 20000919 0001012709-00-000526.hdr.sgml : 20000919 ACCESSION NUMBER: 0001012709-00-000526 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000609 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMPACT MANAGEMENT INVESTMENT TRUST CENTRAL INDEX KEY: 0001030805 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 232873254 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08065 FILM NUMBER: 652770 BUSINESS ADDRESS: STREET 1: 1875 SKI TIME SQUARE DR STREET 2: STE ONE CITY: STEAMBOAT SPRINGS STATE: CO ZIP: 80487 BUSINESS PHONE: 9708791189 MAIL ADDRESS: STREET 1: ARROTT BUILDING STREET 2: 401 WOOD ST 3RD FL CITY: PITTSBURGH STATE: PA ZIP: 15222 N-30D 1 0001.txt IMPACT MANAGEMENT INVESTMENT TRUST - SEMI-ANNUAL IMPACT MANAGEMENT INVESTMENT TRUST TABLE OF CONTENTS SECTION PAGE - ------- ---- A Message From Your Chairman 1 Financial Highlights 2 Statement of Assets and Liabilities 4 Schedule of Investments in Securities 5 Statement of Operations 7 Statements of Changes in Net Assets 8 Notes to Financial Statements 9 IMPACT MANAGEMENT INVESTMENT TRUST - -------------------------------------------------------------------------------- 2155 RESORT DRIVE, SUITE 108 STEAMBOAT SPRINGS, CO 80487 1.800.556.5856 A MESSAGE FROM YOUR CHAIRMAN.... Dear Shareholders, The IMPACT Total Return Portfolio achieved solid results for the first half of its fiscal year, October 1, 1999 through March 31, 2000. Volatility and uncertainty were the primary characteristics associated with the U.S. stock market during that same period of time. In 1999, the uncertainties centered around concerns over Y2K and then beginning in 2000, the focus shifted to Federal Reserve Board policy regarding interest rates. Though Fed policy has many investors wondering how far the Federal Open Market Committee will go with rates and the resulting restriction on the U.S. economy, the fund's investment advisor has a different perspective on their activity. Rather than having an objective of restriction on the U.S. economy, the Fed may very well be simply supplying the necessary uncertainty to keep the rising market trend intact. In other words, rather than the market getting so far ahead of itself that a reactionary debacle ensues, uncertainty is having the effect of keeping the party under control. The volatility that the market has seen has also been difficult, at times, for investors. Much commotion was raised early in the first part of 2000 regarding margin debt reaching excessive levels. Shortly thereafter, the market in general and NASDAQ in particular set about adjusting out much of that excess. The significant sell-off in NASDAQ served to bring an increased awareness of the need for revenues and earnings, not just great ideas and hopeful business plans. The resulting rise in the price structure of the "old economy" stocks following the sell-off indicates that value and companies with proven track records are not entirely a thing of the past. However, selectivity still dominates the market condition overall, so careful stock selection is crucial. The time appears to be right for a well-timed, value-oriented portfolio of securities to be part of an investor's core holdings. The IMPACT Total Return Portfolio has just such a focus. We look forward to strength in the second half of the year 2000 as the presidential election unfolds. Sincerely, Charles R. Clark Chairman Impact Management Investment Trust 1 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO FINANCIAL HIGHLIGHTS
Six Months Ended, March 31, 2000 Unaudited -------------------------------------------------- Retail Wholesale Traditional -------------------------------------------------- Per Share Data* Investment Income ....................................... $ 0.11 $ 0.26 $ 0.22 Expenses ................................................ (0.11) (0.15) (0.12) ------------ ------------ ------------ Net investment income ................................... 0.00 0.11 0.10 Distributions from net investment income ................ 0.00 0.00 0.00 Net realized and unrealized gain on investments ......... 0.71 0.60 0.39 Distributions from realized gain on investments ......... (0.48) 0.00 0.00 ------------ ------------ ------------ Net increase (decrease) in net asset value ............ 0.23 0.71 0.49 Net asset value: Beginning of period .............................. 8.46 8.45ss 10.00<< ------------ ------------ ------------ End of period .................................... $ 8.69 $ 9.16 $ 10.49 ============ ============ ============ Ratios and Supplemental Data Total return ........................................... 8.10%~ 8.40%~ 4.90%~ Ratio of expenses to average net assets ................ 2.52%+ 2.57%+ 2.12%+ Ratio of net investment income to average net assets ... 0.14%+ 2.56%+ 1.92%+ Portfolio turnover rate ................................ 205.69% 205.69% 205.69% Net assets, end of period .............................. $ 2,486,938 $ 1,081,556 $ 989 Shares of beneficial interest outstanding, end of period 286,256 118,040 94 Number of shareholder accounts, end of period .......... 96 37 1
* Selected data for a share of beneficial interest outstanding throughout each period. ~ Not annualized. + Annualized ss Wholesale Class began trading October 5, 1999 at $ 8.45 per share << Traditional Class began trading February 3, 2000 at $ 10.00 per share. See accompanying notes to financial statements. 2 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO FINANCIAL HIGHLIGHTS
For the Year Ended ------------------------------ June 17, 1997++ to September 30, September 30, September 30, 1999 1998 1997 Retail Retail Retail ------------ ------------ ------------ Per Share Data* Investment Income $ 0.26 $ 0.29 $ 0.01 Expenses (0.22) (0.21) (0.01) ------------ ------------ ------------ Net investment income 0.04 0.08 0.00 Distributions from net investment income (0.08) (0.01) 0.00 Net realized and unrealized gain (loss) on investments 0.86 (1.66) (0.08) Distributions from realized gain (loss) on investments (0.69) 0.00 0.00 ------------ ------------ ------------ Net increase (decrease) in net asset value 0.13 (1.59) (0.08) Net asset value: Beginning of period 8.33 9.92 10.00 ------------ ------------ ------------ End of period $ 8.46 $ 8.33 $ 9.92 ============ ============ ============ Ratios and Supplemental Data Total return 11.50% (15.93)% (0.80)% Ratio of expenses to average net assets 2.47% 2.25% 2.25% Ratio of net investment income to average net assets 0.42% 0.88% 0.00% Portfolio turnover rate 254.79% 221.45% 0.00% Net assets, end of period $ 6,270,819 $ 3,925,928 $ 501,758 Shares of beneficial interest outstanding, end of period 741,369 471,512 50,567 Number of shareholder accounts, end of period 156 136 17
++ Commencement of operations. * Selected data for a share of beneficial interest outstanding throughout each period. See accompanying notes to financial statements. 3 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES March 31, 2000 Unaudited
ASSETS Investments in securities, at value - identified cost $3,491,542 $ 3,111,215 Cash 477,713 Interest and dividends receivable 11,806 Receivable from securities sold 69,798 ------------ Total assets 3,670,532 ------------ LIABILITIES Payable for investment securities purchased 92,185 Investment advisory fee payable 4,704 Distribution expenses payable 2,843 Administrative Fee Payable 1,317 ------------ Total liabilities 101,049 ------------ NET ASSETS $ 3,569,483 ============ NET ASSETS CONSIST OF: Accumulated net investment income - net of distributions $ 7,647 Accumulated net realized gain 75,651 Net unrealized (depreciation) (380,327) Paid-in capital applicable to 404,390 no par value shares of beneficial interest outstanding; unlimited number of shares Authorized 3,866,512 ------------ NET ASSETS $ 3,569,483 ============ NET ASSET VALUE PER SHARE: RETAIL CLASS $ 8.69 TRADITIONAL CLASS 10.49 WHOLESALE CLASS 9.16
See accompanying notes to financial statements. 4 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO SCHEDULE OF INVESTMENTS IN SECURITIES March 31, 2000 Unaudited Shares Value Convertible Bonds - 4.4% Consumer Products Asia Pulp & Paper Company Conv. (cost $136,627) $ 156,244 ------------ Total convertible bonds 156,244 ------------ Common Stock - 82.0% Consumer Products - 11.5% Archer-Daniels-Midland Co. 6,200 64,325 Homestake Mining Co.* 5,400 32,400 Tate & Lyle PLC 12,000 168,655 Tupperware Corporation 6,000 94,875 Tyson Foods, Inc. 4,500 50,063 Communications - 1.9% Loral Space & Communications LTD * 6,500 66,219 Computers and Technology - 2.4% Arrow Electronics, Inc.* 2,400 84,600 Utilities - 10.1% CMS Energy Corporation 2,600 47,125 Edision International 2,000 33,125 Niagra Mohawk Holdings, Inc.* 11,500 155,250 P G & E Corporation 6,000 126,000 Insurance - 10.6% Aetna, Inc. 3,500 194,906 Foundation Health Systems, Inc.* 17,400 139,200 UNUMProvident Corp 2,500 42,500 Capital Goods - 3.7% The Boeing Company 1,000 37,938 Fluor Corporation 1,700 52,700 Metso Corporation 3,100 41,850 Basic Materials - 9.4% IMC Global Inc 12,300 180,656 International Paper Co. 1,800 76,950 Smurfit-Stone Container Corporation* 4,700 79,606 5 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO SCHEDULE OF INVESTMENTS IN SECURITIES March 31, 2000 Unaudited (continued) Services - 1.1% Nabors Industries, Inc* 1,000 38,813 Energy - 6.7% Petroleo Brasileiro SA* 2,000 54,441 R & B Falcon Corp* 6,000 118,125 Utlramar Diamond Shamrock 2,600 65,975 Financial - 23.0% Aon Corp 2,800 90,300 Golden State Bancorp, Inc.* 3,200 47,800 Loews Corporation 1,300 65,000 The St. Paul Companies 2,000 68,250 Sovereign Bancorp Inc. 12,500 94,531 Washington Mutual Inc. 2,000 53,000 Ace Limited 8,500 194,437 CHN Global N V 21,100 208,362 Healthcare -1.7% Tenet Healthcare Corporation 2,600 59,800 ------------ Total common stocks (cost $3,327,722) 2,927,777 ------------ Short-Term Investments - .8% Rydex Series Trust - U.S. Government Money Market Fund (4.90% seven day yield, cost $27,194) 27,194 27,194 ------------ Total investments in securities - 87.2% of net assets (cost $3,491,543) $ 3,111,215 ============ * Non-income producing security See accompanying notes to financial statements. 6 IMPACT MAMAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF OPERATIONS For the Six Months Ended March 31, 2000 Unaudited INVESTMENT INCOME Interest income $ 40,068 Dividend income 48,258 ---------- Total income 88,326 ---------- EXPENSES Investment advisory fee 37,163 Distribution expenses 26,581 Administrative fee 10,406 ---------- Total expenses 74,150 ---------- Net investment income 14,176 ---------- REALIZED AND UNREALIZED GAIN Net realized gain on securities 69,122 Change in net unrealized appreciation on securities 266,370 ---------- Net realized and unrealized gain 335,492 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 349,668 ========== See accompanying notes to financial statements. 7 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS For the Six Months Ended March 31, 2000 Unaudited
Six Months Ended Year Ended March 31, 2000 September 30, (Unaudited) 1999 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS Operations Net investment income gain $ 14,176 $ 30,248 Net realized gain on securities 69,122 1,082,431 Change in net unrealized appreciation (depreciation) on securities 266,370 (331,051) ------------ ------------ Increase (decrease) in net assets resulting from operations 349,668 781,628 ------------ ------------ Distributions to shareholders From net investment income -- (61,540) From net realized gains on investments (302,987) (552,154) ------------ ------------ Total distributions to shareholders (302,987) (613,694) ------------ ------------ Beneficial interest share transactions* Shares sold 710,933 5,244,694 Shares redeemed (3,761,937) (3,681,431) Shares issued for reinvestment of distributions 302,987 613,694 ------------ ------------ (Decrease) Increase in net assets from share transactions (2,748,017) 2,176,957 ------------ ------------ Total (decrease) increase in net assets (2,701,336) 2,344,891 Net assets Beginning of period 6,270,819 3,925,928 ------------ ------------ End of period (including undistributed net investment income of $14,176 and $6,529, respectively) $ 3,569,483 $ 6,270,819 ============ ============ Share information Shares sold 81,869 606,390 Shares redeemed (435,392) (400,831) Change in shares resulting from transfers between classes (16,388) -- Shares issued for reinvestment of distributions 32,933 64,298 ------------ ------------ Increase (decrease) in shares outstanding (336,978) 269,857 ============ ============
See accompanying notes to financial statements. 8 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO NOTES TO FINANCIAL STATEMENTS Unaudited Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ----------------------------------------------------------- A. General Description IMPACT Management Investment Trust (the "Trust") was organized as a Massachusetts business trust on December 18, 1996. The Trust is registered under the Investment Company Act of 1940 (the "1940 Act") as a diversified, open-end management investment company. Impact Total Return Portfolio, f/k/a IMPACT Management Growth Portfolio (the "Fund") is the initial Series of the Trust. The Trust commenced operations on June 17, 1997, with the sale of 10,000 shares of beneficial interest of the Fund to Jordan American Holdings, Inc., d/b/a Equity Assets Management (the "Investment Advisor"), for cash in the amount of $100,000. The Trust commenced investing in securities on September 16, 1997. Effective May 1, 1999, the Trust changed the name of the Portfolio to the Impact Total Return Portfolio consistent with the changes made to the investment objective and policies. Effective May 1, 1999, the Trust offers four classes of shares of beneficial interest. B. Security Valuation Investments in securities listed or traded on a securities exchange are valued at the last quoted sales price on the security's principal exchange on that day. Listed securities not traded on an exchange that day, and other securities, which are traded in the over-the-counter market, are valued at the mean between the last closing bid and asked prices in the market on that day. C. Method of Reporting The financial statements are presented in accordance with generally accepted accounting principles, which require the use of certain estimates made by the Fund's management. The Fund follows industry practice and records security transactions on the trade date. Realized gains and losses are reported on the identified cost basis. Dividend income is recognized on the ex-dividend date, and interest income is recorded on the accrual basis. D. Federal Income Taxes No provision for federal income taxes is required since the Fund intends to continue to qualify as a regulated investment company and distribute all its taxable income to its shareholders Note 2. INVESTMENT TRANSACTIONS ----------------------- Purchases and sales of investment securities, other than short-term investments, during the period were $6,343,571 and $9,439,100, respectively. At March 31, 2000, the aggregate cost of investments for federal income tax and financial reporting purposes was $3,491,542 and net unrealized depreciation aggregated $(380,327). 9 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO NOTES TO FINANCIAL STATEMENTS Unaudited Note 3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES --------------------------------------------------------------- The Trust has entered into an investment advisory agreement with the Investment Advisor. The Investment Advisor makes investment decisions with respect to the assets of the Fund and reviews, supervises and administers the investment program of the Fund. As compensation for services rendered, the Investment Advisor receives an annual investment advisory fee equal to 1.25% of the Fund's average daily net assets. The investment advisory fee is calculated daily and paid monthly. Effective May 1, 1999, the Trust and the Investment Advisor entered into a sub-investment advisory agreement with Schneider Capital Management in which the sub-advisor receives from the advisor an annual investment advisory fee equal to .60% of the Fund's average daily net assets. Effective May 5, 1998, a Distribution Plan was adopted by the Trust pursuant to Rule 12b-1 of the 1940 Act. Under the provisions of the Distribution Plan, the Fund pays or reimburses the Investment Advisor affiliates or other third parties for expenses incurred in connection with the promotion and distribution of the Fund's shares in an amount up to 1% per annum for Retail Class shares of the average daily net assets of each Class. Effective May 1, 1999, this plan was amended to change the name of the Portfolio to Impact Total Return Portfolio, Retail Class. Also, effective May 1, 1999, a Distribution Plan was adopted by the Trust for the Traditional Class and Wholesale Class pursuant to Rule 12b-1 of the 1940 Act. Under the provisions of the Distribution Plan, the Fund pays or reimburses the Investment Advisor affiliates or other third parties for expenses incurred in connection with the promotion and distribution of the Fund's shares in an amount up to .25% per annum of the average daily net assets of each class. A wholly-owned subsidiary of the Investment Advisor, IMPACT Financial Network, Inc., a broker and dealer in securities registered with the Securities and Exchange Commission and a member of the National Association of Securities Dealers, Inc., earned brokerage fees on the Fund's purchases and sales of investment securities aggregating approximately $0 and was reimbursed $26,581 pursuant to the provisions of the Distribution Plan for the six months ended March 31, 2000. Certain officers of the Trust and members of the Board of Trustees are also officers and directors of the Investment Advisor. Note 4. ADMINISTRATIVE SERVICES ----------------------- Effective May 5, 1998, the Trust entered into an administrative service agreement with Impact Administrative Services, Inc. ("IASI"), a wholly owned subsidiary of the Investment Advisor. Under the agreement, IASI provides administrative personnel and services necessary to operate the Fund including transfer agent and dividend disbursing agent services. IASI bears substantially all operating expenses of the Fund, excluding brokerage fees, interest charges and taxes Effective May 1, 1999, the Trust amended the administrative service agreement with IASI that changes the fee structure. Effective May 1, 1999, IASI is paid a fee equal to .35% of the Fund's average daily net assets. Total fees incurred by the Trust for the six-months ended, March 31, 2000 amounted to $10,406.. 10 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO NOTES TO FINANCIAL STATEMENTS Unaudited In addition, when a shareholder closes an account, IASI is paid a fee of $2.00 which is charged to the shareholder as redemption of shares of beneficial interest. Note 5. CHANGES IN NET ASSETS --------------------- The net assets of the fund have dropped from $6,270,819 at September 30, 1999 to $3,569,483 at March 31, 2000. This is predominantly due to redemptions that were made by investors who, at the direction of their advisers, repositioned their assets into various other investment vehicles over the period. It is anticipated that this type of repositioning, as a percentage of the overall fund assets, will be less significant in the future as the fund has been recharacterized to be consistent with its investment objective as a more conservative, core holding by those who are presently marketing the fund to prospective investors. -----END PRIVACY-ENHANCED MESSAGE-----