-----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, DkJpX1rSGvMnWsxtPXuwnZnTHQz5Rwuy93Vs8ksKlelqE2yeBRjNfeRplKgFlpTP 3laT771uQ8kX8Od9cotidA== 0001012709-99-000352.txt : 19990603 0001012709-99-000352.hdr.sgml : 19990603 ACCESSION NUMBER: 0001012709-99-000352 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990602 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMPACT MANAGEMENT INVESTMENT TRUST CENTRAL INDEX KEY: 0001030805 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 99638909 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 IMPACT MANAGEMENT INVESTMENT TRUST - SEMI-ANNUAL TABLE OF CONTENTS SECTION PAGE - ------- ---- A Message From Your Chairman 1 Financial Highlights 2 Statement of Assets and Liabilities 3 Schedule of Investments in Securities 4 Statement of Operations 5 Statements of Changes in Net Assets 6 Notes to Financial Statements 7 A MESSAGE FROM YOUR CHAIRMAN.... Dear Shareholders, The first half of the Impact Management Investment Trust's 1999 fiscal year included a market bottom in October followed by a significant advance in the various market indices that was, in some ways characterized by a sub-surface condition that can only be compared to the late 1920's. Of course we all know how that period of stock market history ended in 1929, followed by the Great Depression of the 1930's. Though there are similarities, today's world has so much more interconnectedness in it, it would likely be a bit naive to assume that the 1920's and `30's are about to repeat themselves exactly. What the similarities do suggest however is that, as before, the stock market has been embraced by the general public in a way that tends to occur very infrequently and usually ends up in a less than "Everyone's Getting Rich" result, (see the cover of the May 1999 edition of Money Magazine). Long-term takes a long time when you're living it out one day at a time. However, every investor should try to keep in mind that many invest for a lifetime and that the stock market may be positioning itself for a lower risk, higher potential opportunity in the next few years than anyone has seen in nearly three decades. In the meantime, the Fund's Trustees want you to know that they continue to seek ways to bring you the best quality money management team in order to find the balance between taking advantage of stock market opportunities and protection of your hard earned money. Sincerely, Charles R. Clark Chairman Impact Management Investment Trust 1 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO FINANCIAL HIGHLIGHTS
Six Months Ended Year Ended March 31, 1999 September 30, (Unaudited) 1998 ------------- ------------- PER SHARE DATA* Investment Income $ 0.15 $ 0.29 Expenses (0.10) (0.21) ------------- ------------- Net investment income 0.05 0.08 Distributions from net investment income (0.05) (0.01) Net realized and unrealized gain (loss) on investment 0.94 (1.66) Distributions from realized gain on investments 0.00 0.00 ------------- ------------- Net increase (decrease) in net asset value 0.94 (1.59) Net asset value: Beginning of period 8.33 9.92 ------------- ------------- End of period $ 9.27 $ 8.33 ============= ============= RATIOS AND SUPPLEMENTAL DATA Total return^ 11.28%~ (15.93)% Ratio of expenses to average net assets^ 2.25%+ 2.25% Ratio of net investment income to average net assets^ 1.04%+ 0.88% Portfolio turnover rate 81.64% 221.45% Average commission rate paid $ 0.1636 $ 0.1296 Net assets, end of period $ 8,396,323 $ 3,925,928 Shares of beneficial interest outstanding, end of period 905,312 471,512 Number of shareholder accounts, end of period 182 136
- --------------------------------------------------------------- * Selected data for a share of beneficial interest outstanding throughout each period. ~ Not annualized. + Annualized ^ Excludes administrative fee and account closing fee charged directly to shareholder accounts (see Note 4 to financial statements). See accompanying notes to financial statements. 2 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES March 31, 1999 Unaudited ASSETS Investments in securities, at value - identified cost $3,333,891 $ 3,812,457 Cash 4,607,155 Interest Receivable 90 ----------- Total assets 8,419,702 ----------- LIABILITIES Payable for investment securities purchased 4,881 Investment advisory fee payable 8,879 Distribution expenses payable 7,104 Administrative Fee Payable 2,515 ----------- Total liabilities 23,379 ----------- NET ASSETS $ 8,396,323 =========== NET ASSETS CONSIST OF: Accumulated net investment income - net of distributions $ 21,552 Accumulated net realized (loss) (220,761) Net unrealized appreciation 478,566 Paid-in capital applicable to 905,312 no par value shares of beneficial interest outstanding; unlimited number of shares authorized 8,116,966 ----------- NET ASSETS $ 8,396,323 =========== NET ASSET VALUE PER SHARE $ 9.27 =========== See accompanying notes to financial statements. 3 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO SCHEDULE OF INVESTMENTS IN SECURITIES March 31, 1999 Unaudited Shares Value ------ ----- COMMON STOCK - 45.0% Communications - 16.0% Associated Group Inc. - Class A* 5,440 $ 269,620 Scientific Atlanta Inc. 13,500 367,875 Teligent Inc. - Class A* 6,000 249,750 MCI Worldcom Inc. 5,250 464,953 Computers and Technology - 15.0% Cisco Systems Inc.* 2,250 246,516 Micron Technology Inc. 6,300 303,975 America Online* 4,800 700,800 Internet Advisory Company* 2,000 19,375 Medical - 3.3% Atlantic Pharmaceuticals Inc.* 6,000 8,250 Interneuron Pharmaceuticals* 7,200 20,700 LCA-Vision Inc.* 1,725 6,900 Sunrise Technologies International Inc.* 22,000 242,000 Restaurants - 1.2% Nathan's Famous Inc.* 29,500 103,250 Transportation - 4.2% Noble International Ltd.* 33,500 355,938 Insurance - 4.3% Aetna Inc. 4,400 365,200 Other - 1.0% Harris & Harris Group Inc. 33,250 61,306 ---------- Total common stocks (cost $3,307,842) 3,786,408 ---------- SHORT-TERM INVESTMENTS - 03% Rydex Series Trust - U.S. Government Money Market Fund (seven day yield, cost $26,049) 26,049 26,049 ---------- Total investments in securities - 45.3% of net assets (cost $3,333,891) $3,812,457 ========== - ---------------------------------------------- * Non-income producing security See accompanying notes to financial statements. 4 IMPACT MAMAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1999 Unaudited INVESTMENT INCOME Interest income $ 100,978 Dividend income 12,855 ---------- Total income 113,833 ---------- EXPENSES Investment advisory fee 43,106 Distribution expenses 34,484 ---------- Total expenses 77,590 ---------- Net investment income 36,243 ---------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on securities 0 Change in net unrealized appreciation on securities 794,213 ---------- Net realized and unrealized gain 794,213 ---------- Net increase in net assets resulting from operations $ 830,456 ========== See accompanying notes to financial statements. 4 MPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS For the Six Months Ended March 31, 1999 Unaudited
Six Months Ended Year Ended March 31, 1999 September 30, (Unaudited) 1998 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS Operations Net investment income gain (loss) $ 36,243 $ 27,949 Net realized gain (loss) on securities 0 (220,761) Change in net unrealized appreciation (depreciation) on securities 794,213 (312,975) ----------- ----------- Increase (decrease) in net assets resulting from operations 830,456 (505,787) ----------- ----------- Distributions to shareholders from net investment income (39,454) (3,170) ----------- ----------- Beneficial interest share transactions* Shares sold 4,865,972 4,615,307 Shares redeemed (1,226,033) (685,350) Shares issued for reinvestment of distributions 39,454 3,170 ----------- ----------- Increase in net assets from share transactions 3,679,393 3,933,127 ----------- ----------- Total increase in net assets 4,470,395 3,424,170 ----------- ----------- Net assets Beginning of period 3,925,928 501,758 ----------- ----------- End of period (including undistributed net investment income (loss) of $195,502 and $24,762, respectively) $ 8,396,323 $ 3,925,928 =========== =========== * Share information Shares sold 567,852 495,928 Shares redeemed (138,576) (75,342) Shares issued for reinvestment of distributions 4,524 359 ----------- ----------- Increase in shares outstanding 433,800 420,945 =========== ===========
See accompanying notes to financial statements. 6 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 $2,573,221 and $0.00, respectively. At March 31, 1999, the aggregate cost of investments for federal income tax and financial reporting purposes was $3,333,891. 7 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 of the average daily net assets of the Fund. 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 $7,695 and was reimbursed $34,484 pursuant to the provisions of the Distribution Plan for the six months ended March 31, 1999. 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. For these services, IASI is paid a fee of $165.00 per account, per year. One twelfth of the annual fee paid to IASI is charged to shareholder accounts at each month end as redemption of shares of beneficial interest. 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. Prior to May 5, 1998, the Trust had an administrative service agreement with Impact Management Services, Inc. ("IMSI") 8 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT TOTAL RETURN PORTFOLIO NOTES TO FINANCIAL STATEMENTS Unaudited with substantially the same terms and an identical fee structure. Total fees charged to shareholder accounts under these agreements amounted to $14,500 for the period ended March 31, 1999. 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. -----END PRIVACY-ENHANCED MESSAGE-----