-----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, OFUP8LtCqB2GtBD3jcJy5ohfky03Yw6PlAc3JifvBWZmvXk9VAK0M7cxI6PRIZ/F +G5JcTHQXaRe9Z2pZ0SI1g== 0001030805-98-000007.txt : 19980601 0001030805-98-000007.hdr.sgml : 19980601 ACCESSION NUMBER: 0001030805-98-000007 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980529 SROS: NONE 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: 98633604 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 SEMIANNUAL REPORT TO SHAREHOLDERS 3/31/98 IMPACT MANAGEMENT INVESTMENT TRUST SEMIANNUAL REPORT March 31, 1998 THE GROWTH PORTFOLIO TABLE OF CONTENTS SECTION PAGE A Message from Your Chairman 1 A Letter from the Portfolio Manager 2 Financial Highlights 3 Statement of Assets and Liabilities 4 Schedule of Investments in Securities 5 Statement of Operations 6 Statement of Changes in Net Assets 7 Notes to Financial Statements 8
Dear Shareholders: The general trend and increased volatility of the U.S. stock market turned out as we expected for the first half of the fiscal year through March 31, 1998. With the Federal Reserve Board in a generally accomodative posture with regard to interest rates and money supply, the market averages continued to be strong. There are, however, some things that have occurred during this time which should not be overlooked. Most significantly was the stock market's ability to drop some 554 Dow Jones points in a single day, as triggered by a sell-off in the Asian markets that could be characterized as somewhat "out of the blue." In spite of the increased volatility, 1997 ended with consumer confidence at the highest level in 28 years. Not since 1969 had public been as optimistic about the general economic environment. It is important to remember that what followed in the stock market AFTER 1969 was a period of downward adjustment in equity prices that culminated at the "Watergate Bottom" in 1974. In a study published recently by the Investment Company Institute, 37.4% of U.S. households owned mutual funds in 1997. That percentage figure does not include those who own stocks or bonds directly rather than through mutual funds. The percentage of Americans involved in the stock market is at an all-time high. With these things in mind, Neal Jordan, Senior Portfolio Manager of Jordan American Holdings, Inc., the advisor to the Fund, continues to keep a strong eye on the exit. /s/Charles R. Clark Charles R. Clark Chairman 1 My primary objective in managing the Impact Management Growth Portfolio is to attempt to control the Fund's assets in such a way that the Fund will be consistently the beneficiary of both bull and bear market trends. I believe that our proactive management of the Fund allows us to take full advantage of the Fund's range of investment policies as market conditions warrant, and allows us to remain poised to act quickly in response to changes in the trend of the market to benefit from major downward movements by the market, rather than being victimized by them. The times of highest potential in the stock market always follow important declines by the market. We believe that nothing in stock market investing is more important than taking maximum advantage of the major opportunities which are created when important bottoms are made and new rising trends follow. Our goal at all times is to remain in harmony with the long-term market trend, thereby benefiting from major movements in both directions. We expect 1998 to provide an excellent buying opportunity, followed by a powerfully rising trend in the two years approaching the Presidential Election in the year 2000. /s/W. Neal Jordan W. Neal Jordan Senior Portfolio Manager 2 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO FINANCIAL HIGHLIGHTS Six Months Ended March 31, June 17, 1997+ to 1998 September 30, (Unaudited) 1997 Per Share Data* Investment income $ .11 $ .01 Expenses (.11) (.01) -------- -------- Net investment income (loss) .00 .00 Distributions from net investment income (.01) .00 Net realized and unrealized gain (loss) on investments (.45) (.08) Distributions from realized gains on investments .00 .00 -------- -------- Net decrease in net asset value (.46) (.08) Net asset value: Beginning of period 9.92 10.00 -------- -------- End of period $ 9.46 $ 9.92 ======== ======== Ratios and Supplemental Data Total return (not annualized)# (4.54)% (.80)% Ratio of expenses to average net assets**# 2.25% 2.25% Ratio of net investment income to average net assets**# 0.00% 0.00% Portfolio turnover rate (not annualized) 76.01% 0.00% Average commission rate paid $ .1242 $ .1437 Net assets, end of period $ 3,790,335 $ 501,758 Shares of beneficial interest outstanding, end of period 400,621 50,567 Number of shareholder accounts, end of period 114 17
_____________________ + Commencement of operations. * Selected data for a share of beneficial interest outstanding throughout each period. ** Annualized. # Excludes administrative fee charged directly to shareholder accounts (see Note 4 to financial statements). See accompanying notes to financial statements. 3 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES March 31, 1998 Unaudited ASSETS Investments in securities, at value - identified cost $2,496,740 $2,433,380 Cash and cash equivalents 1,359,218 Receivable for shares of beneficial interest sold 6,100 --------- Total assets 3,798,698 --------- LIABILITIES Investment advisory fee payable 6,836 Administrative fee payable 1,527 --------- Total liabilities 8,363 --------- NET ASSETS $3,790,335 ========= NET ASSETS CONSIST OF: Accumulated net investment income (loss) - net of distributions $ (3,280) Accumulated net realized gain (loss) 92,205 Net unrealized appreciation (depreciation) (63,360) Paid-in capital applicable to 400,621 no par value shares of beneficial interest outstanding; unlimited number of shares authorized 3,764,770 --------- NET ASSETS $3,790,335 ========= NET ASSET VALUE PER SHARE $ 9.46 =========
See accompanying notes to financial statements. 4 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO SCHEDULE OF INVESTMENTS IN SECURITIES March 31, 1998 Unaudited Shares Value Common Stocks - 64.2% Computers and Technology - 18.2% Cisco Systems Inc.* 2,000 $ 136,750 Intel Corp. 1,600 124,900 Intergraph Corp.* 3,000 25,406 Micron Technology Inc. 3,700 107,531 Microsoft Corp.* 1,800 161,100 Sun Microsystems Inc.* 3,240 135,169 Communications - 16.7% Associated Group Inc. - Class A* 4,440 170,940 Lucent Technologies Inc. 1,600 204,600 Plantronics Inc.* 2,000 81,875 Scientific Atlanta Inc. 9,000 176,063 Medical - 19.8% Amgen Inc.* 2,500 152,188 Atlantic Pharmaceuticals Inc.* 3,000 19,500 Interneuron Pharmaceuticals* 5,100 53,231 LCA-Vision Inc.* 1,725 3,073 Lifecore Biomedical Inc.* 4,500 105,187 Summit Technology Inc.* 25,000 135,938 Sunrise Technologies International Inc.* 7,000 49,219 Vivus Inc.* 7,020 82,485 Zonagen Inc.* 6,800 149,600 Transportation - 4.2% Noble International Ltd.* 15,000 157,500 Restaurants - 3.1% Nathan's Famous Inc.* 29,500 118,000 Other - 2.2% Harris & Harris Group Inc.* 33,250 83,125 --------- Total investments in securities - 64.2% of net assets (cost $2,496,740) $2,433,380 =========
_____________________ * Non-income producing security See accompanying notes to financial statements. 5 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1998 Unaudited Investment income Interest income $ 25,382 Dividend income 193 ------ Total income 25,575 ------ Expenses Investment advisory fee 25,668 ------ Net investment income (loss) (93) ------ Realized and unrealized gain (loss) Net realized gain on securities 92,205 Change in net unrealized appreciation or depreciation on securities (60,689) ------ Net gain (loss) on investments 31,516 ------ Net increase in net assets resulting from operations $ 31,423 ======
See accompanying notes to financial statements. 6 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS For the Six Months Ended March 31, 1998 (Unaudited), and For the Period June 17, 1997 (commencement of operations) to September 30, 1997 Six Months Ended March 31, June 17, 1997 to 1998 September 30, (Unaudited) 1997 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ (93) $ (17) Net realized gain on securities 92,205 0 Change in net unrealized appreciation or depreciation on securities (60,689) (2,671) --------- --------- Increase (decrease) in net assets resulting from operations 31,423 (2,688) --------- --------- Distributions to shareholders from net investment income (3,170) 0 --------- --------- Beneficial interest share transactions* Shares sold 3,348,628 504,560 Shares redeemed (91,474) (114) Shares issued for reinvestment of distributions 3,170 0 --------- --------- Increase in net assets from share transactions 3,260,324 504,446 --------- --------- Total increase in net assets 3,288,577 501,758 Net assets Beginning of period 501,758 0 --------- --------- End of period (including undistributed net investment income (loss) of $(3,280) and $(17), respectively) $3,790,335 $ 501,758 ========= ========= * Share information Shares sold 359,825 50,579 Shares redeemed (10,130) (12) Shares issued for reinvestment of distributions 359 0 --------- --------- Increase in shares outstanding 350,054 50,567 ========= =========
See accompanying notes to financial statements. 7 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH 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 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. The Trust's fiscal year end is September 30th. B. Security Valuation Investments in securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. 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 during the period were $3,155,133 and $916,022, respectively. At March 31, 1998, the aggregate cost of investments for federal income tax and financial reporting purposes was $2,496,740 and net unrealized depreciation aggregated $63,360, of which $149,630 related to appreciated investments and $212,990 to depreciated investments. 8 IMPACT MANAGEMENT INVESTMENT TRUST IMPACT MANAGEMENT GROWTH PORTFOLIO NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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 2.25% of the Fund's average daily net assets. The investment advisory fee, which may be voluntarily waived in whole or in part by the Investment Advisor, is paid on a monthly basis. Certain officers of the Trust and members of the Board of Trustees are also officers and directors of the Investment Advisor. Effective May 5, 1998, the investment advisory fee was reduced to an annual fee of 1.25% of the Fund's average daily net assets. Additionally, the Fund may now pay up to 1% of its average daily net assets per year for expenses incurred in the distribution and servicing of shares pursuant to Rule 12b-1 of the 1940 Act. 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 $23,000 for the six months ended March 31, 1998. Note 4. ADMINISTRATIVE SERVICES The Trust has entered into an administrative services agreement with IMPACT Administrative Services, Inc. (the "Administrator"), a wholly- owned subsidiary of the Investment Advisor. Under the agreement, the Administrator provides administrative personnel and services necessary to operate the Fund and provides transfer agent and dividend disbursing agent services. The Administrator bears substantially all operating expenses of the Fund, excluding brokerage fees, interest charges and taxes. For these services, the Administrator is paid a fee of $165.00 per account, per year. One twelfth of the annual fee paid to the Administrator is charged to shareholder accounts at each month end as a redemption of shares of beneficial interest. Total fees charged to shareholder accounts amounted to $6,188 for the six months ended March 31, 1998. 9 -----END PRIVACY-ENHANCED MESSAGE-----