-----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, DQFIq8goP/u6mwTSz3+dSTDan5nw/1JMIOek8xi7BJhtK15fgkx7v19npGJ3hVb9 XUHZb5ZHHE5ndnPc+5rPcA== 0001041994-06-000002.txt : 20060202 0001041994-06-000002.hdr.sgml : 20060202 20060201213039 ACCESSION NUMBER: 0001041994-06-000002 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051130 FILED AS OF DATE: 20060202 DATE AS OF CHANGE: 20060201 EFFECTIVENESS DATE: 20060202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW PROVIDENCE INVESTMENT TRUST CENTRAL INDEX KEY: 0001041994 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08295 FILM NUMBER: 06571446 BUSINESS ADDRESS: STREET 1: 116 SOUTH FRANKLIN STREET STREET 2: PO BOX 69 CITY: ROCKYMOUNT STATE: NC ZIP: 27802-0069 BUSINESS PHONE: 2529729922 MAIL ADDRESS: STREET 1: 116 SOUTH FRANKLIN STREET STREET 2: PO BOX 69 CITY: ROCKY MOUNT STATE: NC ZIP: 27802-0069 N-CSRS 1 ncsrs1105.txt NEW PROVIDENCE INVESTMENT TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08295 --------- New Providence Investment Trust ------------------------------- (Exact name of registrant as specified in charter) 116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina 27802 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Julian G. Winters 116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina 27802 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 252-972-9922 ------------ Date of fiscal year end: May 31 ------ Date of reporting period: November 30, 2005 ----------------- Item 1. REPORTS TO STOCKHOLDERS. Semi-Annual Report 2005 WISDOM FUND November 30, 2005 (Unaudited) INSTITUTIONAL CLASS SHARES INVESTOR CLASS SHARES CLASS B SHARES CLASS C SHARES This report and the financial statements contained herein are submitted for the general information of the shareholders of the Wisdom Fund (the "Fund"). This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus. Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested. Neither the Fund nor the Fund's distributor is a bank. Distributor: Capital Investment Group, Inc., 116 S. Franklin Street, Rocky Mount, NC 27804, Phone 1-800-773-3863 - -------------------------------------------------------------------------------- Statements in this Semi-Annual Report that reflect projections or expectations of future financial or economic performance of the Wisdom Fund ("Fund") and of the market in general and statements of the Fund's plans and objectives for future operations are forward-looking statements. No assurance can be given that actual results or events will not differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include, without limitation, general economic conditions such as inflation, recession and interest rates. Past performance is not a guarantee of future results. Investments in the Fund are subject to investment risks, including, without limitation, tracking risks (an investor in the Fund should not expect that the investment performance of the Fund will be able to track the investment performance of Berkshire Hathaway, Inc.), industry concentration risk and other risks as set forth in the Fund's prospectus. More information about these risks and other risks can be found in the Fund's prospectus. The performance information quoted in this annual report represents past performance, which is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. An investor may obtain performance data current to the most recent month-end by visiting www.nottinghamco.com. An investor should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available by calling Shareholder Services at 1-800-773-3863. The prospectus should be read carefully before investing. - -------------------------------------------------------------------------------- This Semi-Annual Report was first distributed to shareholders on or about January 29, 2006. For More Information on Your Wisdom Fund: See Our Web site @ www.wisdomfund.com or Call Our Shareholder Services Group Toll-Free at 1-800-773-3863. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below. Actual Expenses - The first line of the table below provides information about the actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes - The last line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments. Therefore, the last line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Beginning Ending Account Value Account Value Expenses Paid Institutional Class Shares June 1, 2005 November 30, 2005 During Period* - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Actual $1,000.00 $1,023.60 $6.54 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Hypothetical (5%annual return before expenses) $1,000.00 $1,018.60 $6.53 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Beginning Ending Expenses Paid Account Value Account Value Investor Class Shares June 1, 2005 November 30, 2005 During Period* - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Actual $1,000.00 $1,022.20 $7.81 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Hypothetical (5%annual return before expenses) $1,000.00 $1,017.35 $7.79 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Beginning Ending Expenses Paid Account Value Account Value Class B Shares June 1, 2005 November 30, 2005 During Period* - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Actual $1,000.00 $1,018.90 $11.59 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Hypothetical (5%annual return before expenses) $1,000.00 $1,013.59 $11.56 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Beginning Ending Expenses Paid Account Value Account Value Class C Shares June 1, 2005 November 30, 2005 During Period* - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Actual $1,000.00 $1,018.00 $11.58 - ----------------------------------------------------- ----------------------- ----------------------- ---------------------- Hypothetical (5%annual return before expenses) $1,000.00 $1,013.59 $11.56 - ----------------------------------------------------- ----------------------- ----------------------- ----------------------
* Expenses are equal to the Fund's annualized expense ratio (1.29% for the Institutional Class, 1.54% for the Investor Class, 2.29% for Class B and Class C) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by 365 (to reflect the semi-annual period). WISDOM FUND Schedule of Investments (Unaudited) As of November 30, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ Shares or Market Value Shares or Market Value Principal (Note 1) Principal (Note 1) - ------------------------------------------------------------------ --------------------------------------------------------------- COMMON STOCKS - 92.10% Foods - 4.69% Cadbury Schweppes PLC 15,500 $ 597,990 Apparel - 0.33% * Dean Foods Company 2,000 76,380 Nike, Inc. 1,600 $ 136,480 Sysco Corporation 18,666 603,285 ------------ WM Wrigley Jr. Company 9,800 672,182 ------------ Banks - 4.26% 1,949,837 M & T Bank Corporation 2,030 219,687 ------------ Wells Fargo Company 24,722 1,553,778 Health Care Services - 0.00% ------------ * Five Star Quality Care, Inc. 4 27 1,773,465 ------------ ------------ Home Builders - 0.23% Beverages - 8.92% * Champion Enterprises, Inc. 6,700 96,949 Anheuser-Busch ------------ Companies, Inc. 7,300 319,302 Coca-Cola Company 79,430 3,390,867 Insurance - Multiline - 7.27% ------------ American International 3,710,169 Group, Inc. 12,150 815,751 ------------ Aspen Insurance Holdings Ltd. 2,000 50,060 Endurance Specialty Building Materials - 1.21% Holdings, Ltd. 8,500 292,825 American Standard Comp. Inc. 13,190 502,275 The Allstate Corporation 33,250 1,865,325 ------------ ------------ 3,023,961 Chemicals - 1.47% ------------ The Sherwin-Williams Company 13,970 612,445 Insurance - Property & Casualty - 17.26% ------------ Fidelity National Financial, Inc. 17,463 660,451 * Markel Corporation 8,400 2,664,900 Commercial Services - 6.27% The Chubb Corporation 16,400 1,588,176 Aaron Rents, Inc. 6,000 124,620 Wesco Financial Corporation 386 138,574 Cendant Corporation 10,000 177,700 White Mountains Insurance * Iron Mountain, Inc. 11,650 480,562 Group, Ltd. 3,500 2,129,400 Moody's Corporation 29,410 1,769,011 ------------ The ServiceMaster Company 4,600 54,786 7,181,501 ------------ ------------ 2,606,679 ------------ Investment Company - 4.15% American Capital Strategies Ltd. 3,000 115,080 Computers - 0.23% Federated International * Lexmark International, Inc. 2,000 95,240 Bond Fund 148,354 1,612,612 ------------ ------------ 1,727,692 Cosmetics & Personal Care - 5.65% ------------ Proctor & Gamble 41,095 2,350,223 ------------ Media - 3.89% * Comcast Corporation 12,500 330,000 Diversified Financial Services - 4.83% Gannett Company, Inc. 2,698 166,251 American Express Company 39,050 2,007,951 The Washington Post Company 1,520 1,120,240 ------------ ------------ 1,616,491 ------------ Electric - 2.83% * Allegheny Energy, Inc. 8,400 233,772 Miscellaneous Manufacturer - 0.38% Constellation Energy Group, Inc. 3,800 201,362 Tyco International Ltd. 5,500 156,860 Duke Energy Corporation 12,500 335,750 ------------ FPL Group, Inc. 4,800 203,472 The Southern Company 5,800 201,318 ------------ 1,175,674 ------------ (Continued)
WISDOM FUND Schedule of Investments (Unaudited) As of November 30, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ Shares or Market Value Shares or Market Value Principal (Note 1) Principal (Note 1) - ------------------------------------------------------------------ --------------------------------------------------------------- COMMON STOCKS - (Continued) PRIVATE INVESTMENT COMPANY - 1.30% (B)Pamlico Short-Term Income Fund Oil & Gas - 1.92% (Cost $540,961) 540,961 $ 540,961 Burlington Resources, Inc. 3,000 $ 216,750 ------------ Chesapeake Energy Corp. 6,000 173,700 PetroChina Company Ltd. 3,000 236,100 Superior Energy Services, Inc. 8,000 174,160 Total Investments (Cost $33,224,252) - 96.99% $ 40,347,525 ------------ Other Assets less Liabilities - 3.01% 1,252,349 800,710 ------------ ------------ Packaging & Containers - 0.65% * Sealed Air Corporation (a) 5,252 271,581 Net Assets - 100.00% $ 41,599,874 ------------ ============ Pipelines - 2.92% SECURITY SOLD SHORT - COMMON STOCKS Kinder Morgan, Inc. 13,400 1,214,040 ------------ Insurance - Property & Casualty Retail - 5.28% The Progressive Corporation Costco Wholesale (Proceeds $484,717) 4,000 $ 491,961 Corporation (a) 4,000 199,920 ------------ Home Depot Inc. 10,500 438,690 Lowe's Companies, Inc. 1,500 101,220 McDonald's Corporation 7,000 236,950 * Non-income producing investment. Outback Steakhouse, Inc. 1,800 72,504 (B) Restricted security - A restricted security cannot be * Payless Shoesource, Inc. 6,000 137,100 resold to the general public without prior registration Pier 1 Imports, Inc. 1,000 12,700 under the Securities Act of 1933. Restricted securities * Red Robin Gourmet are valued according to the guidelines and procedures Burgers, Inc. 1,500 82,350 adopted by the Board of Trustees. The Fund currently The Gap, Inc. 10,000 173,800 holds 540,961 shares of Pamlico Short-Term Income Fund Wal-Mart Stores, Inc. 10,100 490,456 at a cost of $540,961. The sale of this investment has Yum! Brands, Inc. (a) 5,150 251,268 been restricted and has been valued in accordance with ------------ the guidelines adopted by the Board of Trustees. The 2,196,958 total fair value of this security at November 30, 2005 ------------ is $540,961, which represents 1.30% of the net assets. Software - 2.91% (a) All or a portion of this investment is subject to call Automatic Data Processing, Inc. 12,200 573,400 options written. First Data Corporation 14,770 639,098 ------------ 1,212,498 ------------ Textiles - 4.55% * Mohawk Industries, Inc. 21,495 1,891,130 ------------ Total Common Stocks (Cost $31,209,830) 38,310,836 ------------ FOREIGN GOVERNMENT OBLIGATIONS - 3.59% New Zealand Government 7.000%, 07/15/09 $ 1,015,000 733,447 6.000%, 11/15/11 1,083,000 762,281 ------------ Total Foreign Government Obligations (Cost $1,473,461) 1,495,728 ------------ (Continued)
WISDOM FUND Call Options Written (Unaudited) As of November 30, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------ --------------------------------------------------------------- Shares Summary of Investments by Industry Subject to Market Value % of Net Call (Note 1) Industry Assets Value - ------------------------------------------------------------------ --------------------------------------------------------------- Common Stocks, Expiration Date, Exercise Price Apparel 0.33% $ 136,480 Banks 4.26% 1,773,465 Costco Wholesale Corporation, 01/21/2006 Beverages 8.92% 3,710,169 Strike $47.50 1,500 $ 5,550 Building Materials 1.21% 502,275 Sealed Air Corporation, 01/21/2006 Chemicals 1.47% 612,445 Strike $50.00 3,000 7,950 Commercial Services 6.27% 2,606,679 Yum! Brands, Inc., 01/21/2006 Computers 0.23% 95,240 Strike $55.00 2,000 500 Cosmetics & Personal Care 5.65% 2,350,223 ------------ Diversified Financial Services 4.83% 2,007,951 Electric 2.83% 1,175,674 Total (Premiums Received $6,961) $ 14,000 Foods 4.69% 1,949,837 ------------ Foreign Government Obligations 3.59% 1,495,728 Health Care Services 0.00% 27 Home Builders 0.23% 96,949 Insurance - Multiline 7.27% 3,023,961 Insurance - Property & Casualty 17.26% 7,181,501 Investment Company 4.15% 1,727,692 Media 3.89% 1,616,491 Miscellaneous Manufacturer 0.38% 156,860 Oil & Gas 1.92% 800,710 Packaging & Containers 0.65% 271,581 Pipelines 2.92% 1,214,040 Private Investment Company 1.30% 540,961 Retail 5.28% 2,196,958 Software 2.91% 1,212,498 Textiles 4.55% 1,891,130 -------------------------------------------------------------- Total 96.99% $ 40,347,525
See Notes to Financial Statements WISDOM FUND Statement of Assets and Liabilities (Unaudited) As of November 30, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ Assets: Investments, at value (cost $33,224,252) .................................................................. $ 40,347,525 Cash ...................................................................................................... 884 Receivables: Investments sold ....................................................................................... 1,660,136 Fund shares sold ....................................................................................... 48,237 Interest and dividends ................................................................................. 119,603 Prepaid expenses .......................................................................................... 19,708 ------------ Total assets .............................................................................................. 42,196,093 ------------ Liabilities: Securities sold short, at value (proceeds $484,717) ....................................................... 491,961 Call options written, at value (premiums received $6,961) ................................................. 14,000 Payables: Fund shares repurchased ................................................................................ 28,157 Accrued expenses .......................................................................................... 61,517 Other liabilities ......................................................................................... 584 ------------ Total liabilities ......................................................................................... 596,219 ------------ Net Assets ................................................................................................... $ 41,599,874 ============ Net Assets Consist of: Capital (par value and paid in surplus) ................................................................... $ 31,805,265 Undistributed net investment income ....................................................................... 47,709 Undistributed net realized gain on investments and foreign currency transactions .......................... 2,637,649 Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies .................................................................. 7,109,251 ------------ Total Net Assets .......................................................................................... $ 41,599,874 ============ Institutional Class Shares Outstanding, no par value (unlimited shares authorized) ........................... 341,612 Net Assets - Institutional Class Shares ................................................................... $ 4,590,781 ------------ Net Asset Value, Offering Price and Redemption Price Per Share ............................................ $ 13.44 ============ Investor Class Shares Outstanding, no par value (unlimited shares authorized) ................................ 1,032,789 Net Assets - Investor Class Shares ........................................................................ $ 13,768,914 ------------ Net Asset Value, Offering Price and Redemption Price Per Share ............................................ $ 13.33 ------------ Maximum Offering Price Per Share (100 / 94.25 of $13.33) .................................................. $ 14.14 ============ Class B Shares Outstanding, no par value (unlimited shares authorized) ....................................... 1,074,348 Net Assets - Class B Shares ............................................................................... $ 13,887,706 ------------ Net Asset Value, Offering Price and Redemption Price Per Share ............................................ $ 12.93 ============ Class C Shares Outstanding, no par value (unlimited shares authorized) ....................................... 720,333 Net Assets - Class C Shares ............................................................................... $ 9,352,473 ------------ Net Asset Value, Offering Price and Redemption Price Per Share ............................................ $ 12.98 ============ See Notes to Financial Statements
WISDOM FUND Statement of Operations (Unaudited) For the six month period ended November 30, 2005 - ------------------------------------------------------------------------------------------------------------------------------------ Investment Income: Interest ................................................................................................. $ 47,928 Dividends ................................................................................................ 418,385 ------------ Total Income ............................................................................................. 466,313 ------------ Expenses: Advisory fees (note 2) ................................................................................... 109,844 Administration fees (note 2) ............................................................................. 27,461 Transfer agent fees (note 2) ............................................................................. 23,170 Fund accounting fees (note 2) ............................................................................ 29,197 Compliance service fees (note 2) ......................................................................... 3,875 Custody fees (note 2) .................................................................................... 5,898 Distribution and service fees - Investor Class Shares (note 3) ........................................... 18,830 Distribution and service fees - Class B Shares (note 3) .................................................. 71,653 Distribution and service fees - Class C Shares (note 3) .................................................. 47,604 Legal fees ............................................................................................... 15,041 Audit and tax preparation fees ........................................................................... 7,772 Registration and filing administration fees .............................................................. 13,749 Registration and filing expenses ......................................................................... 17,548 Shareholder servicing expenses ........................................................................... 7,521 Printing expenses ........................................................................................ 6,268 Trustee fees and meeting expenses ........................................................................ 2,507 Securities pricing fees .................................................................................. 2,758 Other operating expenses ................................................................................. 10,027 ------------ Total Expenses ........................................................................................... 420,723 ------------ Net Investment Income .......................................................................................... 45,590 ------------ Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain from investment and foreign securities transactions .................................... 782,340 Change in unrealized appreciation on investments and foreign currency translations ....................... (41,571) ------------ Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions .............................. 740,769 ------------ Net Increase in Net Assets Resulting from Operations ........................................................... $ 786,359 ============ See Notes to Financial Statements
WISDOM FUND Statements of Changes in Net Assets November 30, May 31, For the six month period and fiscal year ended, 2005 (a) 2005 - ---------------------------------------------------------------------------------------------------------------------------------- Operations: Net investment income ......................................................... $ 45,590 $ 2,119 Net realized gain from investment and foreign securities transactions ......... 782,340 1,837,541 Change in unrealized appreciation on investments and foreign currency translations ............................................. (41,571) 616,822 ------------ ------------ Net Increase in Net Assets Resulting from Operations ................................ 786,359 2,456,482 ------------ ------------ Distributions to Shareholders: (note 6) Net realized gain from investment transactions - Institutional Class Shares ... -- (66,528) Net realized gain from investment transactions - Investor Class Shares ........ -- (279,815) Net realized gain from investment transactions - Class B Shares ............... -- (209,450) Net realized gain from investment transactions - Class C Shares ............... -- (126,328) ------------ ------------ Decrease in Net Assets Resulting from Distributions ................................. -- (682,121) ------------ ------------ Capital Share Transactions: (note 7) Institutional Class Shares Shares sold ............................................................... 60,954 229,150 Reinvested dividends and distributions .................................... -- 66,296 Shares repurchased ........................................................ (665,814) (225,257) ------------ ------------ Investor Class Shares Shares sold ............................................................... 564,794 3,663,038 Reinvested dividends and distributions .................................... -- 264,457 Shares repurchased ........................................................ (6,273,696) (5,337,005) ------------ ------------ Class B Shares Shares sold ............................................................... 172,167 1,093,890 Reinvested dividends and distributions .................................... -- 203,679 Shares repurchased ........................................................ (1,168,802) (1,984,011) ------------ ------------ Class C Shares Shares sold ............................................................... 336,640 1,818,621 Reinvested dividends and distributions .................................... -- 121,045 Shares repurchased ........................................................ (821,077) (1,232,810) ------------ ------------ Decrease in Net Assets Resulting from Capital Share Transactions .................... (7,794,834) (1,318,907) ------------ ------------ Net (Decrease) Increase in Net Assets ............................................... (7,008,475) 455,454 ============ ============ Net Assets: Beginning of period ........................................................... 48,608,349 48,152,895 End of period ................................................................. $ 41,599,874 $ 48,608,349 ------------ ------------ Undistributed Net Investment Income ................................................. $ 47,709 $ 2,119 ============ ============ (a) Unaudited See Notes to Financial Statements
WISDOM FUND Financial Highlights Institutional Class Shares May 31, For a share outstanding during the November 30, ------------------------------------------------------------------ six month period or fiscal year ended 2005 (a) 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 13.16 $ 12.62 $ 11.12 $ 11.54 $ 10.80 $ 9.90 Income (Loss) from Investment Operations Net investment income (loss) 0.07 0.08 0.02 (0.03) (0.02) 0.17 Net realized and unrealized gain (loss) on investment and foreign currency translations 0.21 0.63 1.48 (0.39) 0.85 0.90 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 0.28 0.71 1.50 (0.42) 0.83 1.07 ------------ ------------ ------------ ------------ ------------ ------------ Less Distributions: Dividends (from net investment income) - - - - - (0.17) Distributions (from capital gains) - (0.17) - - (0.09) - ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions - (0.17) - - (0.09) (0.17) ------------ ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 13.44 $ 13.16 $ 12.62 $ 11.12 $ 11.54 $ 10.80 ============ ============ ============ ============ ============ ============ Total return 2.13 % 5.65 % 13.49 % (3.64)% 7.78 % 10.70 % ============ ============ ============ ============ ============ ============ Net Assets, End of Period (in thousands) $ 4,591 $ 5,090 $ 4,811 $ 4,229 $ 3,925 $ 3,165 Average Net Assets for the Period (in thousands) $ 5,008 $ 4,953 $ 4,452 $ 3,862 $ 3,444 $ 2,983 Ratios of: Gross Expenses to Average Net Assets 1.29 %(c) 1.23 % 1.29 % 1.67 % 3.19 % 3.30 % Net Expenses to Average Net Assets 1.29 %(c) 1.23 % 1.29 % 1.62 % 1.71 % 0.26 % Net Investment Income (Loss) to Average Net Assets 0.84 %(c) 0.60 % 0.14 % (0.25)% (0.17)% 1.57 % Portfolio turnover rate 5.33 % 41.99 % 20.41 % 9.28 % 6.78 % 15.46 % Investor Class Shares May 31, For a share outstanding during the November 30, ------------------------------------------------------------------ six month period or fiscal year ended 2005 (a) 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 13.07 $ 12.57 $ 11.10 $ 11.56 $ 10.84 $ 9.93 Income (Loss) from Investment Operations Net investment income (loss) 0.06 0.05 (0.01) (0.04) (0.04) 0.13 Net realized and unrealized gain (loss) on investment and foreign currency translations 0.20 0.62 1.48 (0.42) 0.85 0.91 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 0.26 0.67 1.47 (0.46) 0.81 1.04 ------------ ------------ ------------ ------------ ------------ ------------ Less Distributions: Dividends (from net investment income) - - - - - (0.13) Distributions (from capital gains) - (0.17) - - (0.09) - ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions - (0.17) - - (0.09) (0.13) ------------ ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 13.33 $ 13.07 $ 12.57 $ 11.10 $ 11.56 $ 10.84 ============ ============ ============ ============ ============ ============ Total return (b) 1.99 % 5.36 % 13.24 % (3.98)% 7.57 % 10.41 % ============ ============ ============ ============ ============ ============ Net Assets, End of Period (in thousands) $ 13,769 $ 19,177 $ 19,789 $ 13,825 $ 2,740 $ 1,254 Average Net Assets for the Period (in thousands) $ 15,023 $ 20,625 $ 17,326 $ 8,861 $ 1,794 $ 675 Ratios of: Gross Expenses to Average Net Assets 1.54 %(c) 1.48 % 1.54 % 1.91 % 3.39 % 3.86 % Net Expenses to Average Net Assets 1.54 %(c) 1.48 % 1.54 % 1.87 % 1.96 % 0.68 % Net Investment Income (Loss) to Average Net Assets 0.59 %(c) 0.34 % (0.11)% (0.53)% (0.48)% 1.21 % Portfolio turnover rate 5.33 % 41.99 % 20.41 % 9.28 % 6.78 % 15.46 % (a) Unaudited. (b) Total return does not reflect payment of a sales charge. (c) Annualized. (Continued)
WISDOM FUND Financial Highlights Class B Shares May 31, For a share outstanding during the November 30, ------------------------------------------------------------------ six month period or fiscal year ended 2005 (a) 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 12.72 $ 12.33 $ 10.97 $ 11.50 $ 10.87 $ 9.97 Income (Loss) from Investment Operations Net investment (loss) income (0.02) (0.05) (0.10) (0.10) (0.07) 0.06 Net realized and unrealized gain (loss) on investment and foreign currency translations 0.23 0.61 1.46 (0.43) 0.79 0.90 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 0.21 0.56 1.36 (0.53) 0.72 0.96 ------------ ------------ ------------ ------------ ------------ ------------ Less Distributions: Dividends (from net investment income) - - - - - (0.06) Distributions (from capital gains) - (0.17) - - (0.09) - ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions - (0.17) - - (0.09) (0.06) ------------ ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 12.93 $ 12.72 $ 12.33 $ 10.97 $ 11.50 $ 10.87 ============ ============ ============ ============ ============ ============ Total return (b) 1.65 % 4.56 % 12.40 % (4.61)% 6.72 % 9.60 % ============ ============ ============ ============ ============ ============ Net Assets, End of Period (in thousands) $ 13,888 $ 14,660 $ 14,871 $ 12,796 $ 4,307 $ 1,797 Average Net Assets for the Period (in thousands) $ 14,292 $ 15,060 $ 14,097 $ 8,738 $ 2,146 $ 1,817 Ratios of: Gross Expenses to Average Net Assets 2.29 %(c) 2.23 % 2.29 % 2.66 % 4.14 % 4.33 % Net Expenses to Average Net Assets 2.29 %(c) 2.23 % 2.29 % 2.62 % 2.71 % 1.28 % Net Investment (Loss) Income to Average Net Assets (0.16)%(c) (0.41)% (0.86)% (1.27)% (1.23)% 0.56 % Portfolio turnover rate 5.33 % 41.99 % 20.41 % 9.28 % 6.78 % 15.46 % Class C Shares May 31, For a share outstanding during the November 30, ------------------------------------------------------------------ six month period or fiscal year ended 2005 (a) 2005 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $ 12.78 $ 12.38 $ 11.01 $ 11.54 $ 10.91 $ 9.98 Income (Loss) from Investment Operations Net investment (loss) income (0.01) (0.05) (0.09) (0.09) (0.10) 0.03 Net realized and unrealized gain (loss) on investment and foreign currency translations 0.21 0.62 1.46 (0.44) 0.82 0.93 ------------ ------------ ------------ ------------ ------------ ------------ Total from Investment Operations 0.20 0.57 1.37 (0.53) 0.72 0.96 ------------ ------------ ------------ ------------ ------------ ------------ Less Distributions: Dividends (from net investment income) - - - - - (0.03) Distributions (from capital gains) - (0.17) - - (0.09) - ------------ ------------ ------------ ------------ ------------ ------------ Total Distributions - (0.17) - - (0.09) (0.03) ------------ ------------ ------------ ------------ ------------ ------------ Net Asset Value, End of Period $ 12.98 $ 12.78 $ 12.38 $ 11.01 $ 11.54 $ 10.91 ============ ============ ============ ============ ============ ============ Total return (b) 1.56 % 4.63 % 12.44 % (4.59)% 6.69 % 9.64 % ============ ============ ============ ============ ============ ============ Net Assets, End of Period (in thousands) $ 9,352 $ 9,681 $ 8,682 $ 5,635 $ 1,808 $ 987 Average Net Assets for the Period (in thousands) $ 9,495 $ 9,212 $ 6,972 $ 3,560 $ 1,274 $ 531 Ratios of: Gross Expenses to Average Net Assets 2.29 %(c) 2.23 % 2.29 % 2.66 % 4.18 % 4.44 % Net Expenses to Average Net Assets 2.29 %(c) 2.23 % 2.29 % 2.62 % 2.71 % 1.41 % Net Investment (Loss) Income to Average Net Assets (0.16)%(c) (0.39)% (0.86)% (1.27)% (1.19)% 0.40 % Portfolio turnover rate 5.33 % 41.99 % 20.41 % 9.28 % 6.78 % 15.46 % (a) Unaudited. (b) Total return does not reflect payment of a sales charge. (c) Annualized.
See Notes to Financial Statements WISDOM FUND Notes to Financial Statements (Unaudited) ________________________________________________________________________________ 1. Organization and Significant market quotations are not readily Accounting Policies available (e.g., if the exchange on which the portfolio security is The Wisdom Fund (the "Fund") is a principally traded closes early or if series fund. The Fund is part of The trading of the particular portfolio New Providence Investment Trust (the security is halted during the day and "Trust"), which was organized as a does not resume prior to the Fund's Massachusetts business trust and is net asset value calculation) or which registered under the Investment cannot be accurately valued using the Company Act of 1940 (the "1940 Act"), Fund's normal pricing procedures are as amended, as an open-ended valued at fair value as determined in management investment company. The good faith under policies approved by Fund is classified as diversified as the Trustees. A portfolio security's defined in the 1940 Act. "fair value" price may differ from the price next available for that The Wisdom Fund commenced operations portfolio security using the Fund's February 16, 1999. The investment normal pricing procedures. Investment objective of the Fund is to seek companies are valued at net asset maximum total returns consisting of value. Instruments with maturities of any combination of capital 60 days or less are valued at appreciation, realized and unrealized, amortized cost, which approximates and income under the constantly market value. varying market conditions. Investment Transactions and Investment The Board of Trustees of the Trust Income (the "Trustees") approved, on October Investment transactions are accounted 7, 1999, a plan to authorize two new for as of the date purchased or sold classes of shares designated as Class (trade date). Dividend income is B Shares and Class C Shares. On recorded on the ex-dividend date. November 16, 1999, the Class B Shares Certain dividends from foreign and Class C Shares became effective. securities will be recorded as soon as The Fund has an unlimited number of the Trust is informed of the dividend authorized shares, which are divided if such information is obtained into four classes - Institutional subsequent to the ex-dividend date. Class Shares, Investor Class Shares, Interest income is recorded on the Class B Shares and Class C Shares. accrual basis and includes amortization of discounts and Each class of shares has equal rights premiums. Gains and losses are as to assets of the Fund, and the determined on the identified cost classes are identical except for basis, which is the same base used for differences in their sales charge federal income tax purposes. structures and ongoing distribution and service fees. Income, expenses Expenses (other than distribution and service The Fund bears expenses incurred fees, which are not attributable to specifically on its behalf as well as the Institutional Class Shares), and a portion of general expenses, which realized and unrealized gains or are allocated according to methods losses on investments are allocated to approved annually by the Trustees. each class of shares based upon its relative net assets. All classes have Foreign Currency Translation equal voting privileges, except where Portfolio securities and other assets otherwise required by law or when the and liabilities denominated in foreign Trustees determine that the matter to currencies are translated into U.S. be voted on affects only the interests dollars based on the exchange rate of of the shareholders of a particular such currencies against U.S. dollars class. on the date of valuation. Purchases and sales of securities and income The following accounting policies have items denominated in foreign been consistently followed by the Fund currencies are translated into U.S. and are in conformity with accounting dollars at the exchange rate in effect principles generally accepted in the on the transaction date. United States of America in the investment company industry. The Fund does not separately report the effect of changes in foreign Investment Valuation exchange rates from changes in market The Fund's investments in securities prices on securities held. Such are carried at value. Securities changes are included in net realized listed on an exchange or quoted on a and unrealized gain or loss from national market system are valued at investments and foreign currency the last sales price as of 4:00 p.m. transactions. Eastern Time. Securities traded in the NASDAQ over-the-counter market are Realized foreign exchange gains or generally valued at the NASDAQ losses arise from sales of foreign Official Closing Price. Other currencies, currency gains or losses securities traded in the realized between the trade and over-the-counter market and listed settlement dates on securities securities for which no sale was transactions and the difference reported on that date are valued at between the recorded amounts of the most recent bid price. Securities dividends, interest, and foreign and assets for which representative (Continued) WISDOM FUND Notes to Financial Statements (Unaudited) ________________________________________________________________________________ withholding taxes, and the U.S. dollar into contracts with their vendors and equivalent of the amounts actually others that provide for general received or paid. Net unrealized indemnifications. The Fund's maximum foreign exchange gains and losses exposure under these arrangements is arise from changes in foreign exchange unknown, as this would involve future rates on foreign denominated assets claims that may be made against the and liabilities other than investments Fund. The Fund expects the risk of in securities held at the end of the loss to be remote. reporting period. 2. Transactions with Affiliates Restricted Security Transactions Restricted securities held by the Fund Advisor may not be sold unless registered The Fund pays a monthly advisory fee pursuant to an effective registration to Atlanta Investment Counsel, LLC statement filed under the Securities (the "Advisor") based upon the annual Act of 1933, as amended (the rate of 0.50% of the first $500 "Securities Act") or offered pursuant million of the Fund's average daily to an exemption from, or in a net assets and 0.40% of all assets transaction not subject to, the over $500 million. registration requirements of the Securities Act. The risk of investing The Advisor currently intends to in such securities is generally voluntarily waive all or a portion of greater than the risk of investing in its fee and to reimburse expenses of the securities of publicly traded the Fund to limit total Fund operating companies. Lack of a secondary market expenses to a maximum of 1.75% of the and resale restrictions may result in average daily net assets of the Fund's the inability of the Fund to sell a Institutional Class Shares, Investor security at a fair price and may Class Shares, Class B Shares and Class substantially delay the sale of the C Shares, exclusive of interest, security it seeks to sell. In taxes, brokerage fees and commissions, addition, restricted securities may extraordinary expenses, and payments, exhibit greater price volatility than if any, under a Rule 12b-1 Plan. There securities for which secondary markets can be no assurances that the exist. foregoing voluntary fee waivers or reimbursements will continue. The Fund Dividend Distributions may, at a later date, reimburse the The Fund may declare and distribute Advisor for the management fees waived dividends from net investment income or limited, and/or other expenses (if any) quarterly. Distributions from assumed and paid by the Advisor capital gains (if any) are generally pursuant to the Expense Limitation declared and distributed annually. The Agreement during any of the previous Fund may also make a supplemental three fiscal year provided that the distribution subsequent to the end of Fund has reached a sufficient asset its fiscal year. size to permit such reimbursement to be made without causing the total Estimates annual expense ratio of the Fund to The preparation of financial exceed 1.75%, as stated above. statements in conformity with accounting principles generally Administrator accepted in the United States of The Fund pays a monthly administration America requires management to make fee to The Nottingham Company (the estimates and assumptions that affect "Administrator") based upon the the amount of assets, liabilities, average daily net assets of the expenses and revenues reported in the respective share class and calculated financial statements. Actual results at the annual rates as shown in the could differ from those estimates. schedule provided below. The Administrator also receives a fee to Federal Income Taxes procure and pay the custodian for the No provision for income taxes is funds, additional compensation for included in the accompanying financial fund accounting and recordkeeping statements, as the Fund intends to service and additional compensation distribute to shareholders all taxable for certain costs involved with the investment income and realized gains daily valuation of securities and as and otherwise comply with the reimbursement for out-of-pocket requirements of Subchapter M of the expenses (which are immaterial in Internal Revenue Code applicable to amount). A breakdown of these is regulated investment companies. provided on the following page. Indemnifications Compliance Services Under the Fund's organizational The Nottingham Compliance Services, documents, its officers and Trustees LLC, a fully owned affiliate of the are indemnified against certain Nottingham Company, provides services liabilities arising out of the which assists the Trust's Chief performance of their duties to the Compliance Officer in monitoring and Fund. In addition, in the normal testing the policies and procedures of course of business, the Fund enters the Trust in relation to requirements (Continued) WISDOM FUND Notes to Financial Statements (Unaudited) ________________________________________________________________________________ under Rule 38a-1 of the Securities and transfer, dividend paying, and Exchange Commission. It receives shareholder servicing agent for the compensation for this service at an Fund. It receives compensation for its annual rate of $7,750. services based upon a $15 per shareholder per year, subject to a Transfer Agent minimum fee of $1,500 per month, plus North Carolina Shareholder Services, $500 per month for each additional LLC ("Transfer Agent") serves as class of shares. - --------------------------------- -------------------------------- ---------------- ---------------------------- ------------------- Fund Accounting Administration Fees (a) Custody Fees Fund Asset Based Fees Accounting Blue Sky Average Net Annual Average Net Annual Fees Average Net Annual Administration Assets Rate Assets Rate (monthly) Assets Rate Fees (annual) - ---------------------- ---------- --------------------- ---------- ---------------- ----------------- ---------- ------------------- First $50 Million 0.125% First $100 Million 0.02% $4,500 All Assets 0.01% $150 per state Next $50 Million 0.100% Over $100 Million 0.009% Over $100 Million 0.075% - ---------------------- ---------- --------------------- ---------- ---------------- ----------------- ---------- ------------------- (a) Subject to a minimum fee of $2,000 per month. Distributor Investor Class Shares, Class B Shares, Capital Investment Group, Inc. (the and Class C Shares, respectively, for "Distributor") serves as the Fund's the period ended November 30, 2005. principal underwriter and distributor. The Distributor receives any sales 4. Purchases and Sales of Investment charges imposed on purchases of shares Securities and re-allocates a portion of such charges to dealers through whom the For the six month period ended sale was made, if any. For the period November 30, 2005, the aggregate cost ended November 30, 2005, the of purchases and proceeds from sales Distributor retained sales charges in of investment securities (excluding the amount of $2,224. short-term securities) are shown in the table below: Certain Trustees and officers of the Trust are also officers of the --------------- --------------------- Advisor, the Distributor or the Purchases Proceeds from Administrator. of Sales of Securities Securities 3. Distribution and Service Fees --------------- --------------------- $2,203,742 $5,037,210 The Trustees, including a majority of --------------- --------------------- the Trustees who are not "interested persons" of the Trust as defined in There were no purchases or sales of the Act, adopted distribution and long-term U.S. Government Obligations service plans pursuant to Rule 12b-1 during the six month period ended of the Act (the "Plans") applicable to November 30, 2005. the Investor Class Shares, Class B Shares and Class C Shares. The Act 5. Options Written regulates the manner in which a regulated investment company may --------------------- ----------- ---------- assume costs of distributing and Option Contracts promoting the sales of its shares and Written for the servicing of its shareholder accounts. Period from Number The Plan provides that the Fund may June 1, 2005 to of Premiums incur certain costs, which may not November 30, 2005. Contracts Received exceed 0.25% per annum of the average --------------------- ----------- ---------- daily net assets of the Investor Class Options Outstanding, - $ - Shares or 1.00% per annum of the Beginning of Period average daily net assets of the Class --------------------- ----------- ---------- B or Class C Shares for each year Options written 147 31,407 elapsed subsequent to adoption of the Options exercised (60) (20,490) Plans, for payment to the Distributor Options expired (22) (3,956) and others for items such as --------------------- ----------- ---------- advertising expenses, selling Options Outstanding, expenses, commissions, travel, or End of Period 65 $6,961 other expenses reasonably intended to --------------------- ----------- ---------- result in sales of Investor Class The aggregate market value of Shares, Class B Shares and Class C securities subject to call options is Shares in the Fund or support $722,769 or approximately 1.74% of net servicing of those classes' assets at November 30, 2005. shareholder accounts. The fund incurred $18,830, $71,653, and $47,604, in distribution and service fees under the Plans with respect to (Continued)
WISDOM FUND Notes to Financial Statements (Unaudited) ________________________________________________________________________________ 6. Federal Income Tax Accumulated capital losses represent net capital loss carryovers as of May The tax components of capital shown in 31, 2005 that may be available to the table on the following page offset future realized capital gains represent: (1) distribution and thereby reduce future taxable gain requirements the Fund must satisfy distributions. For the year ended May under the income tax regulations, (2) 31, 2005, there are no accumulated losses or deductions the Fund may be capital losses. able to offset against income and gains realized in future years, and Other book tax differences in the (3) unrealized appreciation or current year primarily consist of post depreciation of investments for October loss deferrals. federal income tax purposes. - ----------------------------- ----------------------- ----------------------- ----------------------- ------------------------------ Undistributed Ordinary Undistributed Accumulated Capital Other Book to Tax Income Long-Term Gains Losses Differences Net Tax Appreciation - ----------------------------- ----------------------- ----------------------- ----------------------- ------------------------------ $ - $1,866,461 $ - $8,175 $7,109,251 - ----------------------------- ----------------------- ----------------------- ----------------------- ------------------------------ The aggregate cost of investments and 2005 are noted below. The primary the composition of unrealized difference between book and tax appreciation and depreciation of appreciation or depreciation of investment securities for federal investments is wash sale loss income tax purposes as of November 30, deferrals. - ---------------------------------- ----------------------------------------------- ------------------------------------------------- Federal Tax Cost Aggregate Gross Unrealized Appreciation Aggregate Gross Unrealized Depreciation - ---------------------------------- ----------------------------------------------- ------------------------------------------------- $32,725,330 $8,185,477 $(1,069,243) - ---------------------------------- ----------------------------------------------- ------------------------------------------------- The amount of dividends and items such as net short-term gains, distributions from net investment deferral of wash sale losses, foreign income and net realized capital gains currency transactions, net investment are determined in accordance with losses and capital loss federal income tax regulations which carry-forwards. Certain permanent may differ from accounting principles differences such as tax returns of generally accepted in the United capital and net investment losses, if States of America. These differences any, would be re-classified against are due to differing treatments for capital. - ----------------------------------- ----------------------------------------------------------------------- ------------------------ Distributions from Long-Term Capital Tax Return of Net Investment For the fiscal year ended Ordinary Income Gains Capital Loss - ----------------------------------- ----------------------- ----------------------- ----------------------- ------------------------ May 31, 2005 $ - $682,121 $ - $ - - ----------------------------------- ----------------------- ----------------------- ----------------------- ------------------------ May 31, 2004 $ - $ - $ - $ - - ----------------------------------- ----------------------- ----------------------- ----------------------- ------------------------ 7. Capital Share Transactions - -------------------------------------------------- ---------------------------------------- ---------------------------------------- Institutional Class Investor Class For the six month period and November 30, May 31, November 30, May 31, fiscal year ended: 2005 2005 2005 2005 - -------------------------------------------------- ------------------- -------------------- -------------------- ------------------- Transactions in Fund Shares Shares sold 4,625 18,062 42,994 289,599 Reinvested distributions - 5,065 - 20,312 Shares repurchased (49,755) (17,562) (477,118) (417,343) Net (Decrease) Increase in Capital Share Transactions (45,130) 5,565 (434,124) (107,432) Shares Outstanding, Beginning of Period 386,742 381,177 1,466,913 1,574,345 Shares Outstanding, End of Period 341,612 386,742 1,032,789 1,466,913 - -------------------------------------------------- ------------------- -------------------- -------------------- ------------------- (Continued)
7. Capital Share Transactions (continued) - -------------------------------------------------- ---------------------------------------- ---------------------------------------- Class B Class C For the six month period and November 30, May 31, November 30, May 31, fiscal year ended: 2005 2005 2005 2005 - -------------------------------------------------- ------------------- -------------------- -------------------- ------------------- Transactions in Fund Shares Shares sold 13,410 88,251 26,254 145,631 Reinvested distributions - 16,025 - 9,479 Shares repurchased (91,442) (158,165) (63,583) (98,651) Net Decrease (Increase) in Capital Share Transactions (78,032) (53,889) (37,329) 56,459 Shares Outstanding, Beginning of Period 1,152,380 1,206,269 757,662 701,203 Shares Outstanding, End of Period 1,074,348 1,152,380 720,333 757,662 - -------------------------------------------------- ------------------- -------------------- -------------------- -------------------
8. Change in Independent Registered Public Accounting Firm On July 19, 2005, the Board of Trustees engaged Briggs, Bunting & Dougherty, LLP ("BBD") as its new independent registered public accounting firm. At no time preceding the engagement of BBD did the Fund consult the firm regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Fund's financial statements, or (ii) any matter that was either subject of a disagreement or a reportable event, as such terms are defined in Item 304 of Regulation S-K. Prior to this date, Deloitte & Touche LLP ("Deloitte") served as the independent registered public accounting firm for the Trust and issued reports on the Fund's financial statements as of May 31, for the years 1999 through 2005. Such reports did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. At no time preceding the removal of Deloitte & Touche LLP were there any disagreements with Deloitte & Touche LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Deloitte & Touche LLP, would have caused it to make reference to the subject matter of the disagreements in connection with its report. At not time preceding the removal of Deloitte & Touche LLP did any of the events enumerated in paragraphs (1)(v)(A) through (D) of Item 304(a) of Regulation S-K occur. WISDOM FUND Additional Information (Unaudited) ________________________________________________________________________________ 1. Approval of Investment Advisory Agreement coordination of services for the Fund Atlanta Investment Counsel, LLC among the Fund's service providers, ("Investment Advisor") supervises the and its efforts to promote the Fund, investments of the Wisdom Fund grow the Fund's assets, and assist in ("Fund") pursuant to an Investment the distribution of Fund shares. The Advisory Agreement. During the Fund's Board noted that the Trust's principal most recent fiscal half-year, the executive officer, principal financial Investment Advisory Agreement came up officer, president, treasurer, and for renewal. The Board unanimously chief compliance officer is an approved the renewal of the Investment employee of the Investment Advisor who Advisory Agreement for another year at serves the Trust without additional the Board's Annual Meeting on October compensation. After reviewing the 18, 2005. foregoing information and further information in the Investment Advisor At the meeting, Trust Counsel Memorandum (e.g., descriptions of the ("Counsel") reviewed with the Board a Investment Advisor's business, the memorandum from Counsel dated October Fund's and the Investment Advisor's 11, 2005 and addressed to the Trustees compliance programs, and the that summarized the Board's fiduciary Investment Advisor's Form ADV), the duties and responsibilities in Board concluded that the nature, reviewing and approving the Investment extent, and quality of the services Advisory Agreement for the Fund. provided by the Investment Advisor Counsel discussed with the Board's were satisfactory and adequate for the independent trustees ("Independent Fund. Trustees") the types of information and factors that should be reviewed by (ii) Considering the investment the Board and their responsibilities performance of the Fund and the in making an informed decision Investment Advisor. In this regard, regarding the approval of the the Board compared the short and continuation of the Investment long-term performance of the Fund with Advisory Agreement. the performance of its benchmark index, comparable funds with similar The Investment Advisor then reviewed objectives and size managed by other with the Board its response to a investment advisors, and comparable memorandum from Counsel dated peer group indices (e.g., Morningstar September 6, 2005 and addressed to the category averages). The Board also Investment Advisor that contained considered the consistency of the information relating to the Investment Advisor's management of the continuation of the Investment Fund with the Fund's investment Advisory Agreement ("Investment objective and policies. After Advisor Memorandum"). The Investment reviewing the short and long-term Advisor reviewed its Form ADV, investment performance of the Fund, experience, profitability with respect the Investment Advisor's experience to the Fund, financial strength, managing the Fund and whether the financial capability, its personnel, Investment Advisor manages other its services to the Fund, comparative advisory accounts, the Investment expense ratio information for other Advisor's historical investment mutual funds with strategies similar performance, and other factors, the to those of the Fund, and other Board concluded that the investment information contained in its performance of the Fund and the Investment Advisor Memorandum. Investment Advisor were satisfactory. In deciding whether to approve the (iii) Considering the costs of the renewal of the Investment Advisory services to be provided and profits to Agreements between the Trust and the be realized by the Investment Advisor Investment Advisor, with respect to and its affiliates from the the Fund, the Trustees considered relationship with the Fund. In this numerous factors, including: regard, the Board considered the Investment Advisor's staffing, (i) Considering the nature, extent, personnel, and methods of operating; and quality of the services provided the education and experience of the by the Investment Advisor. In this Investment Advisor's personnel; the regard, the Board considered the Investment Advisor's compliance responsibilities the Investment policies and procedures; the financial Advisor would have under its condition of the Investment Advisor, Investment Advisory Agreement. The and the level of commitment to the Board reviewed the services being Fund and the Investment Advisor by the provided by the Investment Advisor to principals of the Investment Advisor; the Fund including, without the asset levels of the Fund; and the limitation, the quality of its overall expenses of the Fund, investment advisory services since the including certain prior fee waivers Fund's inception (including research and reimbursements by the Investment and recommendations with respect to Advisor on behalf of the Fund and the portfolio securities), its procedures nature and frequency of advisory fee for formulating investment payments. The Board reviewed the recommendations and assuring financial statements for the compliance with the Fund's investment Investment Advisor and discussed the objectives and limitations, its financial stability and profitability (Continued) WISDOM FUND Additional Information (Unaudited) ________________________________________________________________________________ of the firm. The Board reviewed the were fair and reasonable in relation Fund's Expense Limitation Agreement to the nature and quality of the with the Investment Advisor, and services to be provided by the discussed the Investment Advisor's Investment Advisor. prior fee waivers under the Expense Limitation Agreement in detail, (v) Considering brokerage and including the nature and scope of cost portfolio transactions. In this allocation for such fees. The Board regard, the Board considered the noted that the Expense Limitation Investment Advisor's standards and Agreement for the Fund had been performance in utilizing those modified to change the recoupment standards to seek best execution for period for reimbursements from five to Fund portfolio transactions, including three years under the agreement. the use of alternative markets (e.g., direct purchases from issuers or The Board considered potential underwriters or, as to equity benefits for the Investment Advisor in securities, "third market" for listed managing the Fund, including promotion securities and principal market makers of the Investment Advisor's name, the for over-the-counter securities). The ability for the Investment Advisor to Board noted that the Fund's fixed place small accounts into the Fund, income portfolio transactions are and the potential for the Investment normally principal transactions Advisor to generate soft dollars from executed in over-the-counter markets certain of the Fund's trades that may on a "net" basis. The Board also benefit the Investment Advisor's other considered the anticipated portfolio clients as well. The Board then turnover rate for the Fund; the compared the fees and expenses of the process by which evaluations are made Fund (including the management fee) to of the overall reasonableness of other funds comparable to the Fund in commissions paid; the method and basis terms of the type of fund, the style for selecting and evaluating the of investment management, the size of broker-dealers used; any anticipated the fund, and the nature of its allocation of portfolio business to investment strategy, among other persons affiliated with the Investment factors. The Board determined that the Advisor; and the opportunities for the management fee was lower than Investment Advisor to recapture comparable funds and that, while the brokerage or related fees (e.g. tender net expense ratio was higher than the offer fees, underwriting fees, etc.) industry average and comparable funds, and credit them against Fund expenses. the size of the Fund was much smaller After further review and discussion, than the industry average and the Board determined that the comparable funds. Following this Investment Adviser's practices comparison and upon further regarding brokerage and portfolio consideration and discussion of the transactions were satisfactory. foregoing, the Board concluded that the fees to be paid to the Investment (vi) Considering possible conflicts of Advisor by the Fund were fair and interest. In evaluating the reasonable in relation to the nature possibility for conflicts of interest, and quality of the services to be the Board considered such matters as provided by the Investment Advisor. the experience and ability of the advisory personnel assigned to the (iv) Considering the extent to which Fund, which was currently a single economies of scale would be realized individual; the basis of decisions to as the Fund grows and whether advisory buy or sell securities for the Fund fee levels reflect these economies of and/or the Investment Advisor's other scale for the benefit of the Fund's accounts should the Investment Advisor investors. In this regard, the Board accumulate other accounts; the method considered that the Fund's fee for bunching of portfolio securities arrangements with the Investment transactions; and the substance and Advisor involved both the management administration of the Investment fee and an Expense Limitation Advisor's code of ethics. Following Agreement. The Board noted that the further consideration and discussion, Fund utilizes breakpoints in its the Board indicated that the advisory fee schedule and determined Investment Advisor's standards and that the Fund's shareholders would practices relating to the benefit from economies of scale as the identification and mitigation of Fund grows. The Board noted that the potential conflicts of interests were Fund's shareholders would receive satisfactory. benefits from the Expense Limitation Agreement if the Fund's assets were to Based upon all of the foregoing decrease or the Fund's expenses were considerations, the Board, including a to increase beyond the cap set by the majority of the Trust's Independent Expense Limitation Agreement. The Trustees, approved the renewal of the Board noted that the Fund's Investment Advisory Agreement for the shareholders benefited from economies Fund. of scale under the Fund's agreements with service providers other than the 2. Proxy Voting Policies and Voting Investment Advisor. Following further Record discussion of the Fund's asset levels, expectations for growth, and levels of A copy of the Trust's Proxy Voting and fees, the Board determined that, at Disclosure Policy and the Advisor's the Fund's current and projected asset Proxy Voting and Disclosure Policy are levels, the Fund's fee arrangements included as Appendix B to the Fund's (Continued) WISDOM FUND Additional Information (Unaudited) ________________________________________________________________________________ Statement of Additional Information and is available, without charge, upon request, by calling 1-800-773-3863. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 will be available (1) without charge, upon request, by calling the Fund at the number above and (2) on the SEC's website at http://www.sec.gov. 3. Quarterly Portfolio Holdings The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at http://www.sec.gov. You may review and make copies at the SEC's Public Reference Room in Washington, D.C. You may also obtain copies after paying a duplicating fee by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102 or by electronic request to publicinfo@sec.gov, or is available, without charge, upon request, by calling the fund at 1-800-773-3863. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 202-942-8090. Wisdom Fund is a series of The New Providence Investment Trust For Shareholder Service Inquiries: For Investment Advisor Inquiries: Documented: Documented: NC Shareholder Services Atlanta Investment Counsel, LLC 116 South Franklin Street 3717 Haddon Hall Road, NW Post Office Drawer 4365 Suite 200 Rocky Mount, North Carolina 27803-0365 Atlanta, Georgia 30327 Toll-Free Telephone: Toll-Free Telephone: 1-800-773-3863 1-877-352-0020 World Wide Web @: World Wide Web @: nottinghamco.com wisdomfund.com Item 2. CODE OF ETHICS. Not applicable. Item 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. Item 6. SCHEDULE OF INVESTMENTS. A copy of Schedule I - Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this Form. Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. Item 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. Item 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS. None. Item 11. CONTROLS AND PROCEDURES. (a) The Principal Executive Officer and the Principal Financial Officer have concluded that the registrant's disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing of this report. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications required by Item 12.(a)(2) of Form N-CSR are filed herewith as Exhibit 12.(a)(2). (a)(3) Not applicable. (b) Certifications required by Item 12.(b)of Form N-CSR are filed herewith as Exhibit 12.(b). 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. New Providence Investment Trust By: (Signature and Title) /s/ C. Douglas Davenport ________________________________ C. Douglas Davenport President, Treasurer, Principal Executive Officer and Principal Financial Officer Date: January 20, 2006 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/ C. Douglas Davenport ________________________________ C. Douglas Davenport President, Treasurer, Principal Executive Officer and Principal Financial Officer New Providence Investment Trust Date: January 20, 2006 EX-99.CERT 2 cert302.txt SECTION 302 OFFICER CERTIFICATIONS EXHIBIT 12.(a)(2) ----------------- CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002 I, C. Douglas Davenport, certify that: 1. I have reviewed this report on Form N-CSR of New Providence Investment Trust; 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 20, 2006 /s/ C. Douglas Davenport _________________________________________________ C. Douglas Davenport President, Treasurer, Principal Executive Officer and Principal Financial Officer New Providence Investment Trust EX-99.906CERT 3 cert906.txt SECTION 906 OFFICER CERTIFICATIONS EXHIBIT 12.(b) -------------- NEW PROVIDENCE INVESTMENT TRUST CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the semi-annual report of the Wisdom Fund (the "Fund") of the New Providence Investment Trust on Form N-CSR for the period ended November 30, 2005, as filed with the Securities and Exchange Commission (the "Report"), the undersigned, C. Douglas Davenport, chief executive officer (or equivalent thereof) and chief financial officer (or equivalent thereof) of the Fund, does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: January 20, 2006 By: /s/ C. Douglas Davenport _________________________________________________ C. Douglas Davenport President, Treasurer, Principal Executive Officer and Principal Financial Officer New Providence Investment Trust A signed original of this written statement required by Section 906 has been provided to the Wisdom Fund and will be retained by the Wisdom Fund and furnished to the Securities and Exchange Commission or its staff upon request. This certification is being furnished to the Commission pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----