N-CSR 1 oak_ncsr.txt 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 811-08549 OAK ASSOCIATES FUNDS (Exact name of registrant as specified in charter) -------- 3875 Embassy Parkway, Suite 250 Akron, OH 44333-8334 (Address of principal executive offices) (Zip code) William E. White Oak Associates, ltd. 3875 Embassy Parkway, Suite 250 Akron, OH 44333-8334 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-462-5386 DATE OF FISCAL YEAR END: OCTOBER 31, 2005 DATE OF REPORTING PERIOD: OCTOBER 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. Annual Report October 31, 2005 White Oak Select Growth Rock Oak Core Growth Pin Oak Aggressive Stock River Oak Discovery Red Oak Technology Select Black Oak Emerging Technology Live Oak Health Sciences O SMALL CAP GROWTH INVESTING NOW AVAILABLE WITH RIVER OAK DISCOVERY FUND [LOGO OMITTED] OAK ASSOCIATES FUNDS To Our Shareholders Dear Fellow Shareholders: We are pleased to send you the latest Annual Report for the Oak Associates Funds covering the fiscal year ended October 31, 2005, which includes discussions of the individual Funds' performance, details of the Fund holdings, a report from the Funds' independent auditors, and other important financial data. We encourage you to read it carefully to stay abreast of your investments. Over the past year, we have added two new mutual funds to increase shareholder investment options: RIVER OAK DISCOVERY FUND (RIVSX) -- This small-cap growth fund seeks undiscovered companies with cutting-edge products, visionary management, and the ability to bring innovation to both new and established industries. ROCK OAK CORE GROWTH FUND (RCKSX) -- This large-cap growth fund seeks a diversified portfolio of larger, established growth companies who seek to capitalize on demographic, productivity and globalization growth trends. We encourage you to visit www.oakfunds.com to learn more about these new investment options, and get up-to-date commentaries and information about each of the seven Oak Associates Funds. As always, we look forward to serving your investment needs and thank you for the trust you have placed in us. Sincerely, Oak Associates Funds TABLE OF CONTENTS Fund Profiles ...................... 2 Financial Highlights ............... 16 Statements of Net Assets ........... 20 Statements of Operations ........... 40 Statements of Changes in Net Assets ...................... 42 Notes to Financial Statements ...... 44 Report of Independent Registered Public Accounting Firm ............. 50 Trustees and Officers of the Trust ....................... 51 Disclosure of Fund Expenses ........ 54 TWO NEW INVESTMENT OPTIONS NOW AVAILABLE SMALL CAP GROWTH RIVER OAK DISCOVERY FUND (RIVSX) Opened June 30, 2005 o The River Oak Discovery Fund seeks smaller companies, whose intense focus on innovation drives long-term growth o A research-driven investment process leads to small, rapidly growing businesses, undiscovered by Wall Street o The Fund invests in companies that have cutting edge products, visionary management, and the ability to bring innovation to both new and established industries MORE INFORMATION ON RIVER OAK DISCOVERY FUND CAN BE FOUND ON PAGE 8 OF THIS REPORT. LARGE CAP GROWTHLARGE CAP GROWTH ROCK OAK CORE GROWTH FUND (RCKSX) Opened December 31, 2004 o The Rock Oak Core Growth Fund seeks a diversified portfolio of larger, established growth companies o Demographic, productivity and globalization trends are providing tomorrow's growth opportunities o The Fund invests in innovative companies that seek to capitalize on these dominant growth themes MORE INFORMATION ON ROCK OAK CORE GROWTH FUND CAN BE FOUND ON PAGE 4 OF THIS REPORT. TO LEARN MORE OR INVEST TODAY, VISIT WWW.OAKFUNDS.COM. Mutual fund investing involves risk, including loss of principal. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. The Oak Associates Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Oak Associates, ltd. or any other affiliate. TO DETERMINE IF THIS FUND IS AN APPROPRIATE INVESTMENT FOR YOU, CAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISK FACTORS, CHARGES AND EXPENSES BEFORE INVESTING. THIS AND OTHER INFORMATION CAN BE FOUND IN THE FUND'S PROSPECTUS, WHICH MAY BE OBTAINED BY CALLING 1-888-462-5386 OR BY VISITING OUR WEBSITE AT WWW.OAKFUNDS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. 1 White Oak Select Growth Fund OCTOBER 31, 2005 WHITE OAK SELECT GROWTH FUND The Fund invests primarily in common stocks of large capitalization companies (in excess of $5 billion) that are key performers within growing industries. The White Oak Select Growth Fund (the "Fund") eased (0.19)% for the one year period ending October 31, 2005. The comparative index, the S&P 500 Composite Index gained 8.72%, and the Lipper Large-Cap Growth Funds Average returned 10.06%. Since its inception, the Fund has gained 9.22% on an annualized basis, versus 10.30% for the S&P 500 Composite Index and 8.15% for the Lipper Large-Cap Growth Funds Average. The performance of the Fund in 2005 mimicked that of 2004. For the second straight year, commodity-related sectors drove much of the return for the comparative indices. Not owning the sectors or stocks tied to the rise in commodity prices hurt the Fund. The big story in 2005 was energy. Crude oil surged 16% and peaked at over $70 a barrel in August. The rise in oil was exacerbated by two devastating hurricanes that hit the Gulf Coast and tight excess supply world-wide. We view these factors as temporary issues that should resolve themselves. Nevertheless, energy and technology stocks are often inversely correlated and a strong energy market hampered the performance of the Fund. The Fund remains concentrated in 24 holdings and four sectors. While this concentration can increase volatility in the short-term, we believe it is essential to long-term out-performance. The largest overweight sector is Technology due to the productivity enhancing nature of the group and attractive relative valuation. Healthcare is the second largest position and a prime beneficiary of demographics and innovation. Financials and Industrials round out the remaining sectors. Within the portfolio, Charles Schwab, the second largest individual position, climbed more than 65% over the past year. The stock, which had been a laggard in 2004, recovered strongly after founder Charles Schwab returned to the CEO role in late 2004. The company continues to attract new assets and has refocused the business on its core competencies. Both steps have been well received by Wall Street. Within the technology sector, Symbol Technologies fell sharply after the scanning equipment producer lowered earnings expectations and suffered from upper management turnover. Additionally, semiconductor stocks weighed on the tech sector performance as the cyclical nature of the sector is typically the first to respond to concerns over the economy. More recently however, the group has been showing signs that a sustained recovery may be underway. Several new additions to the portfolio contributed strongly to the performance. Gene-chip producer Affymetrix gained 49%; biotech-leader Amgen rose 33%; Caterpillar climbed 31%; IT-services provider Cognizant Technology Solutions added 29%; and Electronic Arts jumped 27%. 1-888-462-5386 2 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns --------------------------------------------------------------------------------------------- 1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date --------------------------------------------------------------------------------------------------------------------------- White Oak Select Growth Fund (0.19)% 10.52% (16.39)% 5.80% 9.22%* --------------------------------------------------------------------------------------------------------------------------- S&P 500 Composite Index 8.72% 12.85% (1.74)% 9.34% 10.30%** --------------------------------------------------------------------------------------------------------------------------- Lipper Large-Cap Growth Funds Average 10.06% 10.26% (7.15)% 6.48% 8.15%** ---------------------------------------------------------------------------------------------------------------------------
* Since 8/3/92 **Since 7/31/92 ---------------------------- FUND DATA ---------------------------- Ticker Symbol WOGSX Share Price $31.35 Total Net Assets $879M Portfolio Turnover 36.46% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Medtronic 6.25% 2. Charles Schwab 6.10% 3. Cisco Systems 6.10% 4. eBay 5.57% 5. Caterpillar 5.51% 6. Qualcomm 5.45% 7. Electronic Arts 4.92% 8. Amgen 4.85% 9. Symantec 4.82% 10. United Parcel Service 4.77% + Percentages are based on net assets. COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE WHITE OAK SELECT GROWTH FUND, VERSUS THE S&P 500 COMPOSITE INDEX AND THE LIPPER LARGE-CAP GROWTH FUNDS AVERAGE, SINCE 10/31/95 [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
WHITE OAK SELECT GROWTH FUND S&P 500 COMPOSITE INDEX LIPPER LARGE-CAP GROWTH FUNDS AVERAGE 10/31/95 10000 10000 10000 10/1996 12133 12410 11912 10/1997 16314 16395 15262 10/1998 19003 20000 17867 10/1999 29743 25134 24594 10/2000 43011 26665 28689 10/2001 19359 20025 18134 10/2002 13015 16999 14892 10/2003 19086 20535 17706 10/2004 17606 22470 18197 10/2005 17573 24429 20027
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 3 Rock Oak Core Growth Fund OCTOBER 31, 2005 ROCK OAK CORE GROWTH FUND The Fund invests primarily in common stocks of established U.S. companies with large market capitalization (larger than $5 billion) that stand to benefit from long-term themes such as globalization, demographics, productivity and innovation. The Rock Oak Core Growth Fund (the "Fund") rose 1.00% since its inception on December 31, 2004. This return compares to a 1.05% gain in the S&P 500 Composite Index and 1.77% gain in the Lipper Large-Cap Growth Funds Average. The Fund's performance was driven by sectors heavily exposed to commodity prices. Specifically, energy and industrial stocks were strong contributors to the absolute return, while weakness in the technology sector weighed on overall performance. Rising oil and natural gas prices drove strong performance throughout the U.S. stock market in 2005. Within the S&P 500 Composite Index, the Energy and Utilities sectors gained an impressive 26.8%, and 12.6%, respectively, since December 31, 2004. The performance of both sectors reflects the rise in commodity prices and inflationary concerns that higher energy prices bring. The Fund has exposure to energy companies through its investment in late stage equipment suppliers to the oil and gas industry. While the best gains in energy are probably behind the market, the significant underinvestment in energy infrastructure bodes well for certain equipment suppliers to the industry. Throughout 2005 the Federal Reserve continued its series of interest rate increases, raising rates 7 times to 4%. Higher interest rates and fears over inflation hampered the performance of many growth sectors, including Technology. Higher interest rates lower the present value of future earnings and thus caused valuations for tech stocks to decline despite very strong earnings growth. Going forward, we expect earnings growth to remain the primary driver of stock returns and valuations to benefit from the end of interest rate tightening. Within the portfolio, three of the top five best performing stocks were energy related. Coal supplier Joy Global gained 60% in the first 10 calendar months of 2005 as higher oil prices make coal a much more attractive option for power companies. Ultra Petroleum, a natural gas producer in Wyoming, climbed 118% on rising gas prices and strong reserves. In the Healthcare sector, chip supplier Affymetrix rose nearly 25%. The semiconductor company provides equipment with genomics information already imbedded within its chip to pharmaceutical and biotechnology companies. We continue to believe Affymetrix will benefit from the shift to targeted drug discovery using genomics information. Technology stocks weighed on the performance of the Fund due to the overweighting in this sector. While this was disappointing, the sector offers an excellent combination of strong earnings growth and productivity gains that historically has driven stock prices higher over the long-run. 1-888-462-5386 4 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005. Cummulative Inception to Date* -------------------------------------------------------------------------------- Rock Oak Core Growth Fund 1.00% -------------------------------------------------------------------------------- S&P 500 Composite Index 1.05% -------------------------------------------------------------------------------- Lipper Large-Cap Growth Funds Average 1.77% -------------------------------------------------------------------------------- * Since 12/31/04 ---------------------------- FUND DATA ---------------------------- Ticker Symbol RCKSX Share Price $10.10 Total Net Assets $11M Portfolio Turnover 44.73% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Cognizant Technology Solutions 4.79% 2. Goldman Sachs Group 4.31% 3. Qualcomm 3.99% 4. Expeditors International Washington 3.73% 5. Schlumberger 3.52% 6. Starbucks 3.48% 7. Electronic Arts 3.23% 8. Symantec 3.07% 9. Yahoo! 2.97% 10. Lowe's 2.82% + Percentages are based on net assets. Comparison of Change in the Value of a $10,000 Investment in the Rock Oak Core Growth Fund, versus the S&P 500 Composite Index and the Lipper Large-Cap Growth Funds Average since inception (12/31/04) [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
ROCK OAK CORE GROWTH FUND S&P 500 COMPOSITE INDEX LIPPER LARGE-CAP GROWTH FUNDS AVERAGE 12/31/2004 10000 10000 10000 10/2005 10100 10105 10177
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 5 Pin Oak Aggressive Stock Fund OCTOBER 31, 2005 PIN OAK AGGRESSIVE STOCK FUND The Fund invests primarily in common stocks of U.S. companies with small to medium market capitalizations (between $500 million and $5 billion) that are key performers within growing industries. The Pin Oak Aggressive Stock Fund (the "Fund") gained 11.09% for the year, while the comparative index, the S&P MidCap 400 Index gained 17.65% and the Lipper Multi-Cap Growth Funds Average returned 12.95%. For the three years ended October 31, 2005, on an annualized basis, the Fund has returned 22.02%, versus 19.53% for the S&P MidCap 400 Index and 15.26% for the Lipper Multi-Cap Growth Funds Average. Since its inception and on an annualized basis, the Fund has returned 6.10%, versus 14.11% for the S&P MidCap 400 Index and 10.20% for the Lipper Multi-Cap Growth Funds Average. The Energy and Technology sectors often trade inversely, and the dramatic outperformance by the former and underperformance of the latter worked against the Fund. We have been surprised by the magnitude and duration of strong performance of the energy sector, but believe that the best long-term growth ideas generally lie outside that area. Standout performers over the past year included Internet search company Google, whose results continue to exceed expectations; health care information technology company Cerner, who is benefiting from the move by hospitals to electronic medical records; discount brokerage firm Charles Schwab, an asset-gathering machine that has improved margins; and homebuilder Toll Brothers, which has since been sold, who has seen strong demand for its homes. Laggards included scanning device company Symbol Technologies, whose results disappointed investors, and semiconductor companies Xilinx and Maxim Integrated Products, who ratcheted down expectations for growth. We believe the slowdown in the semiconductor market is temporary - as chips get cheaper to make, they are going into more and more devices, which bodes well for long-term growth. We added six new stocks to the Fund during the year: Affymetrix, Amazon.com, Blue Nile, Google, Kla-Tencor, and Rockwell Automation. Amazon.com, Blue Nile, and Google are all taking advantage of the growth in ecommerce, and perhaps less obviously, they all improve the efficiency of their product markets by matching buyers and sellers. Affymetrix manufactures and sells gene-chip microarrays that assist scientists in conducting genetic research - an area that we believe could be enormous. Kla-Tencor makes equipment that helps semiconductor manufacturers improve yields, which becomes increasingly important as the feature size of semiconductors shrinks. With its automation equipment, Rockwell Automation is positioned to take advantage of the need - due to increasing competition and globalization - of industrial companies to improve efficiency. Along with these additions, we culled a few stocks from the Fund, thereby ensuring that the portfolio remains concentrated in our best ideas. 1-888-462-5386 6 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns ------------------------------------------------------------------------------------------------ 1 Year Return 3 Year Return 5 Year Return 10 Year Return Inception to Date ------------------------------------------------------------------------------------------------------------------------------------ Pin Oak Aggressive Stock Fund 11.09% 22.02% (21.11)% 2.38% 6.10%* ------------------------------------------------------------------------------------------------------------------------------------ S&P MidCap 400 Index 17.65% 19.53% 7.32% 14.19% 14.11%** ------------------------------------------------------------------------------------------------------------------------------------ Lipper Multi-Cap Growth Funds Average 12.95% 15.26% (6.85)% 7.94% 10.20%** ------------------------------------------------------------------------------------------------------------------------------------
* Since 8/3/92 **Since 7/31/92 --------------------------- FUND DATA --------------------------- Ticker Symbol POGSX Share Price $21.13 Total Net Assets $139M Portfolio Turnover 28.02% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Google 9.42% 2. Charles Schwab 7.42% 3. eBay 7.01% 4. Avid Technology 6.15% 5. Yahoo! 6.02% 6. Amazon.com 5.72% 7. Affymetrix 5.22% 8. Cisco Systems 4.88% 9. Juniper Networks 4.85% 10. Cerner 4.67% + Percentages are based on net assets. COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE PIN OAK AGGRESSIVE STOCK FUND, VERSUS THE S&P MIDCAP 400 INDEX AND THE LIPPER MULTI-CAP GROWTH FUNDS AVERAGE, SINCE 10/31/95 [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
PIN OAK AGGRESSIVE STOCK FUND S&P MIDCAP 400 INDEX LIPPER MULTI-CAP GROWTH FUNDS AVERAGE 10/31/95 10000 10000 10000 10/1996 9861 11735 11830 10/1997 11235 15566 14714 10/1998 12678 16609 15922 10/1999 24161 20109 24035 10/2000 41402 26474 30904 10/2001 12938 23178 18187 10/2002 6963 22070 14768 10/2003 11454 28852 19152 10/2004 11388 32037 20102 10/2005 12650 37691 22705
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 7 River Oak Discovery Fund OCTOBER 31, 2006 RIVER OAK DISCOVERY FUND The Fund invests primarily in smaller companies (less than $3 billion) that are rapidly growing and have cutting edge products, visionary management, and the ability to bring innovation to both new and established industries. The River Oak Discovery Fund (the "Fund") is off to a solid start. The small-cap fund has risen 1.00% since inception on June 30, 2005. This return compares to a 2.06% gain in the Lipper Small-Cap Growth Funds Average and a 2.39% gain in the Russell 2000 Growth Index. The performance of small-cap stocks has been rather resilient given the inflation concerns and interest rate tightening enacted by the Federal Reserve. Small-cap stocks tend to underperform in periods of rising rates given the higher funding costs and risk profile of smaller companies. However, strong earnings growth and healthy capital spending have buoyed many sectors. One area of weakness had been consumer-related holdings. This group weighed on performance in the third quarter ending September 30, but has since rebounded strongly. Consumer-related sectors within the Fund were moderately affected by the two hurricanes that hit the Gulf Coast region. More specifically, concerns over consumer spending and the impact of higher energy prices hurt holdings exposed to consumer discretionary spending. Owning several energy stocks helped dampen the weakness from consumer stocks, which have since recovered. However, the sector's weakness did weigh on the Fund given the difference in exposure to the groups. Within the portfolio, Healthcare stocks were both strong performers and laggards. Healthcare information technology holdings Quality Systems and Cerner rose 41% and 24%, respectively. Both companies are beneficiaries of the need to improve information systems at hospitals. Conversely, medical equipment suppliers Kinetic Concepts and Invitrogen both fell sharply on company specific issues. We continue to believe healthcare provides excellent growth opportunities and stands to benefit from both an increase in innovation and spending trends. Software was another bright area of performance for the Fund. On-demand software service pioneer Salesforce.com rose 22%, while IT-services provider Satyam Computer Services climbed 31%. Both companies offer a strong value proposition of increasing productivity at a lower cost. Technology as a sector continues to garner an overweight position within the Fund due to the high levels of innovation the sector tends to generate and its ability to produce long-term earnings growth. While the Fund is still very young, we're excited about its prospects and believe the small-cap sector remains a robust area for innovative companies. 1-888-462-5386 8 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005. Cummulative Inception to Date* -------------------------------------------------------------------------------- River Oak Discovery Fund 1.00% -------------------------------------------------------------------------------- Russell 2000 Growth Index 2.39% -------------------------------------------------------------------------------- Lipper Small-Cap Growth Funds Average 2.06% -------------------------------------------------------------------------------- *Since 6/30/05 ---------------------------- FUND DATA ---------------------------- Ticker Symbol RIVSX Share Price $10.10 Total Net Assets $3M Portfolio Turnover 15.68% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Verint Systems 3.00% 2. Station Casinos 2.94% 3. Anteon International 2.94% 4. Salesforce.com 2.94% 5. Satyam Computer Services 2.91% 6. SVB Financial Group 2.91% 7. Viasat 2.91% 8. Charles River Laboratories International 2.87% 9. East West Bancorp 2.87% 10. Quality Systems 2.84% + Percentages are based on net assets. COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE RIVER OAK DISCOVERY FUND, VERSUS THE RUSSELL 2000 GROWTH INDEX AND THE LIPPER SMALL-CAP GROWTH FUNDS AVERAGE SINCE INCEPTION (6/30/05) [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
RIVER OAK DISCOVERY FUND RUSSELL 2000 GROWTH INDEX LIPPER SMALL-CAP GROWTH FUNDS AVERAGE 6/30/2005 10000 10000 10000 10/2005 10100 10239 10206
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 9 Red Oak Technology Select Fund OCTOBER 31, 2005 RED OAK TECHNOLOGY SELECT FUND The Fund primarily invests in common stocks of companies which rely extensively on technology in their product development or operations, or are expected to benefit from technological advances and improvements. The Red Oak Technology Select Fund (the "Fund") returned 3.97% for the year, while the comparative index, the Lipper Science & Technology Average returned 8.47%, and the NASDAQ 100 Index, which includes holdings within sectors beyond just technology, gained 6.63%. Since its inception and on an annualized basis, the Fund returned (6.00)%, versus (1.45)% for the Lipper Science & Technology Average and (2.03)% for the NASDAQ 100 Index. The best performing stocks for the Fund for the twelve months ended October 31, 2005 included the web-based search provider Google, integrated circuit maker Marvell Technology Group, GeneChip manufacturer Affymetrix and Cognizant Technology Solutions which is an off-shore IT web consultant. Google's success has come from the enormous growth in the paid search advertising market which still has room to grow, particularly in international markets. Marvell Technology Group's success during the year has been driven by the growth in consumer electronics such as Apple's iPod, where they supply semi-conductors. Affymetrix provides drug makers DNA chip technology that is used in the intensifying market for personalized medicine. Cognizant Technology Solutions continues to profit from the strong trend toward outsourcing and the cost benefits that it provides. Symbol Technologies, Maxim Integrated Products, and eBay were the biggest underperformers for the twelve months. Symbol Technologies suffered several set backs during the year including lowered near-term growth expectations. We still believe the opportunity in the rapidly growing radio frequency identification (RFID) market makes this company one to own within the portfolio. Maxim Integrated Products missed numbers in the last quarter of the year causing significant pressure on the stock, but the company continues to be one of the best ways to invest in the growth in semiconductors over the long term. Early in the year, eBay announced plans to increase its capital spending budget for 2005 which worried investors initially. The stock price improved throughout the remainder of the year as these concerns subsided and the company continued to show strong operating results. As the price of oil appears to have peaked, and as the Federal Reserve's interest rate tightening cycle comes to an end, we believe technology is poised for strong growth in the coming year. 1-888-462-5386 10 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns ----------------------------------------------------------------------------------------- 1 Year Return 3 Year Return 5 Year Return Inception to Date* --------------------------------------------------------------------------------------------------------------------------- Red Oak Technology Select Fund 3.97% 15.69% (28.00)% (6.00)% --------------------------------------------------------------------------------------------------------------------------- NASDAQ 100 Index 6.63% 17.19% (13.45)% (2.03)% --------------------------------------------------------------------------------------------------------------------------- Lipper Science & Technology Average 8.47% 17.45% (15.66)% (1.45)% ---------------------------------------------------------------------------------------------------------------------------
*Since 12/31/98 --------------------------- FUND DATA --------------------------- Ticker Symbol ROGSX Share Price $6.55 Total Net Assets $161M Portfolio Turnover 40.47% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Google 8.79% 2. Qualcomm 6.92% 3. EMC 6.51% 4. Marvell Technology Group 5.63% 5. Electronic Arts 5.13% 6. Juniper Networks 5.08% 7. Yahoo! 4.85% 8. eBay 4.71% 9. Amazon.com 4.46% 10. Cognizant Technology Solutions 4.46% + Percentages are based on net assets. Comparison of Change in the Value of a $10,000 Investment in the Red Oak Technology Select Fund, versus the NASDAQ 100 Index and the Lipper Science & Technology Average since inception (12/31/98) [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
Red Oak Technology Select Fund NASDAQ 100 Index Lipper Science & Technology Average 12/31/98 10000 10000 10000 10/1999 16939 14373 15656 10/2000 33848 17894 20969 10/2001 8448 7444 8698 10/2002 4229 5401 5830 10/2003 6559 7749 9063 10/2004 6299 8152 8828 10/2005 6549 8692 9576
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 11 Black Oak Emerging Technology Fund OCTOBER 31, 2005 BLACK OAK EMERGING TECHNOLOGY FUND The Fund primarily invests in common stocks of companies that are considered to be well-positioned to become market leaders among "emerging" technology companies. The Black Oak Emerging Technology Fund (the "Fund") was down (1.44)% for the year, while the comparative index, the Lipper Science & Technology Average returned 8.47%, and the NASDAQ 100 Index, which includes holdings within sectors beyond just technology, gained 6.63%. Since its inception and on an annualized basis, the Fund was down (27.93)%, versus (10.33)% for the Lipper Science & Technology Average and (7.63)% for the NASDAQ 100 Index. The best performing stocks for the Fund for the twelve months ended October 31, 2005 included integrated circuit maker Marvell Technology Group, GeneChip manufacturer Affymetrix and Ultimate Software Group which is a web-based provider of human resource management and payroll software solutions. Marvell Technology Group's success during the year has been driven by the growth in consumer electronics; Marvell Technology Group makes semiconductors which are embedded in fast growing devices such as Apple's iPod. Affymetrix provides drug makers DNA chip technology that is used in the intensifying market for personalized medicine. Ultimate Software Group has benefited from the trend in smaller companies lowering costs by moving human resources and payroll operations online. Packeteer, Given Imaging, and Cree were the biggest underperformers for the twelve months. Packeteer's end markets continue to grow, but the company failed to meet growth expectations during the year due to company specific execution issues which we believe have been corrected. Given Imaging is a young, innovative medical device maker whose product roll-out has taken longer than expected, but whose outlook continues to be promising. Cree's stock suffered earlier in 2005 as the company's transition to a next generation manufacturing facility was delayed. The transition to their new facilities is back on track and should allow the company to better leverage the opportunities within the light emitting diodes (LED) market. During fiscal year 2005, the Technology sector underperformed the broad markets as sectors such as Energy and Utilities were strong. The performance of these sectors was driven by rising commodity costs throughout the year, oil particularly. However, with the price of oil appearing to have peaked coupled with the Federal Reserve's tightening cycle nearing an end, we believe the coming year should bode well for growth in the Technology sector. 1-888-462-5386 12 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns ----------------------------------------------------------------------------------- 1 Year Return 3 Year Return Inception to Date --------------------------------------------------------------------------------------------------------------------------- Black Oak Emerging Technology Fund (1.44)% 18.56% (27.93)%* --------------------------------------------------------------------------------------------------------------------------- NASDAQ 100 Index 6.63% 17.19% (7.63)%** --------------------------------------------------------------------------------------------------------------------------- Lipper Science & Technology Average 8.47% 17.45% (10.33)%** ---------------------------------------------------------------------------------------------------------------------------
*Since 12/29/00 **Since 12/31/00 ---------------------------- FUND DATA ---------------------------- Ticker Symbol BOGSX Share Price $2.05 Total Net Assets $49M Portfolio Turnover 30.22% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Marvell Technology Group 7.12% 2. Avid Technology 6.43% 3. Cognizant Technology Solutions 6.12% 4. Verint Systems 6.08% 5. DSP Group 6.03% 6. NAVTEIQ 5.80% 7. Cree 5.62% 8. Ultimate Software Group 5.45% 9. Cogent 4.07% 10. Macrovision 4.04% + Percentages are based on net assets. COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE BLACK OAK EMERGING TECHNOLOGY FUND, VERSUS THE NASDAQ 100 INDEX AND THE LIPPER SCIENCE & TECHNOLOGY AVERAGE, SINCE 12/31/00 [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
BLACK OAK EMERGING TECHNOLOGY FUND NASDAQ 100 INDEX LIPPER SCIENCE & TECHNOLOGY AVERAGE 12/31/2000 10000 10000 10000 10/2001 2980 5832 5561 10/2002 1230 4231 3728 10/2003 2210 6070 5794 10/2004 2080 6386 5644 10/2005 2050 6809 6122
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 13 Live Oak Health Sciences Fund OCTOBER 31, 2005 LIVE OAK HEALTH SCIENCES FUND The Fund primarily invests in common stocks of companies engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences. The Live Oak Health Sciences Fund (the "Fund") returned 23.52% for the year ended October 31, 2005, while the comparative index, the S&P 500 Health Care Index, gained 9.57%, and the Lipper Health & Biotechnology Average returned 15.03%. Since its inception and on an annualized basis, the Fund has provided a return of 3.61%, versus 0.18% for the S&P 500 Health Care Index and 1.60% for the Lipper Health & Biotechnology Average for the same time period. Drug development can be a high-risk/high-reward proposition, and this was illustrated in the past year by the happenings at biotech giants Biogen Idec, which is not a Fund holding, and Genentech, currently a Fund holding. The former withdrew from the market its new Multiple Sclerosis drug Tysabri due to multiple cases of a fatal disease in patients taking the drug. This had been a highly anticipated breakthrough therapy, and news of its withdrawal sent Biogen Idec's stock down over 40%. On the other hand, Genentech's cancer drug Avastin, which at one point in its development had low expectations, surpassed a $1 billion annual sales run-rate during the year and gained FDA approval for new uses in cancer treatment. The stock rose 99% during the year. We will continue to manage the portfolio with a focus on risk-reward, acknowledging that there is no fail-safe way to avoid the disappointments that will inevitably occur on occasion in this sector. Strong contributors to performance included pharmacy benefit manager Express Scripts, which will help administer the new Medicare drug benefit; gene-chip microarray manufacturer Affymetrix and health care information technology company Cerner, both of which are at the forefront of long-term growth trends (genetic research and electronic medical records, respectively); and the aforementioned Genentech. Laggards included pharmaceutical companies Medicis Pharmaceutical, which dealt with uncertainty about its pending merger with Inamed, and Pfizer, whose pain drug sales have declined dramatically given concerns over cardiovascular side effects. The Fund established new positions in Charles River Laboratories International, a provider of animal research models, and biotech companies Cell Genesis and Rigel Pharmaceuticals. We continue to focus on industries and companies that innovate and/or possess competitive advantages and avoid those that do not. Our long-term, low-turnover, concentrated approach also remains in place. We believe this long-term view gives us an edge, especially in a time when other managers are reacting (and often overreacting) to every short-term data point. 1-888-462-5386 14 PERFORMANCE UPDATE ALL DATA BELOW AS OF OCTOBER 31, 2005.
Average Annual Total Returns ----------------------------------------------------------------------------------- 1 Year Return 3 Year Inception to Date --------------------------------------------------------------------------------------------------------------------------- Live Oak Health Sciences Fund 23.52% 14.19% 3.61%* --------------------------------------------------------------------------------------------------------------------------- S&P 500 Health Care Index 9.57% 5.70% 0.18%** --------------------------------------------------------------------------------------------------------------------------- Lipper Health & Biotechnology Average 15.03% 13.77% 1.60%** ---------------------------------------------------------------------------------------------------------------------------
*Since 6/29/01 **Since 6/30/01 ---------------------------- FUND DATA ---------------------------- Ticker Symbol LOGSX Share Price $11.66 Total Net Assets $36M Portfolio Turnover 15.69% 2005 Capital Gain Distribution None TOP 10 HOLDINGS+ 1. Affymetrix 10.12% 2. Medtronic 6.48% 3. Teva Pharmaceutical Industries 6.19% 4. Invitrogen 5.61% 5. Medimmune 5.59% 6. AmerisourceBergen 5.10% 7. Applied Biosystems Group - Applera 5.08% 8. Amgen 5.01% 9. Cerner 4.93% 10. Techne 4.91% + Percentages are based on net assets. COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE LIVE OAK HEALTH SCIENCES FUND, VERSUS THE S&P 500 HEALTH CARE INDEX AND THE LIPPER HEALTH & BIOTECHNOLOGY AVERAGE, SINCE 6/30/01 [LINE CHART OMITTED, PLOT POINTS FOLLOWS]
LIVE OAK HEALTH SCIENCES FUND S&P 500 HEALTH CARE INDEX LIPPER HEALTH & BIOTECHNOLOGY AVERAGE 6/30/2001 10000 10000 10000 10/2001 10239 10263 9476 10/2002 7829 8536 7382 10/2003 9239 9042 8915 10/2004 9439 9200 9479 10/2005 11658 10080 10904
These figures represent past performance, which is no guarantee of future results. The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower. See Note 5 in the Notes to Financial Statements for additional information on fee waivers. www.oakfunds.com 15 Financial Highlights FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS OR PERIODS ENDED OCTOBER 31,
REALIZED AND NET NET ASSET NET UNREALIZED DISTRIBUTIONS ASSET VALUE INVESTMENT GAINS OR TOTAL FROM VALUE BEGINNING INCOME (LOSSES) ON FROM CAPITAL END OF OF PERIOD (LOSS) SECURITIES OPERATIONS GAINS PERIOD ------------------------------------------------------------------------------------------------------------------------------------ WHITE OAK SELECT GROWTH FUND 2005 $31.41 $ 0.01#++ $ (0.07)## $ (0.06) $ -- $31.35 2004 34.05 (0.19) (2.45) (2.64) -- 31.41 2003 23.22 (0.10) 10.93 10.83 -- 34.05 2002 34.54 (0.12) (11.20) (11.32) -- 23.22 2001 77.05 (0.15) (42.08) (42.23) (0.28) 34.54 ROCK OAK CORE GROWTH FUND 2005(1) $10.00 $(0.05)# $ 0.15 $ 0.10 $ -- $10.10 PIN OAK AGGRESSIVE STOCK FUND 2005 $19.02 $(0.16)# $ 2.27 $ 2.11 $ -- $21.13 2004 19.13 (0.17) 0.06 (0.11) -- 19.02 2003 11.63 (0.12) 7.62 7.50 -- 19.13 2002 21.61 (0.20) (9.78) (9.98) -- 11.63 2001 69.45 (0.32) (47.27) (47.59) (0.25) 21.61 RIVER OAK DISCOVERY FUND 2005(2) $10.00 $(0.03)# $ 0.13 $ 0.10 $ -- $10.10 RED OAK TECHNOLOGY SELECT FUND 2005 $ 6.30 $(0.03)#+++ $ 0.28 $ 0.25 $ -- $ 6.55 2004 6.56 (0.08) (0.18) (0.26) -- 6.30 2003 4.23 (0.05) 2.38 2.33 -- 6.56 2002 8.45 (0.08) (4.14) (4.22) -- 4.23 2001 33.85 (0.14) (25.26) (25.40) -- 8.45
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 16
RATIO OF EXPENSES RATIO OF TO AVERAGE RATIO OF EXPENSES NET ASSETS NET TO AVERAGE (EXCLUDING WAIVER, NET ASSETS RATIO OF INVESTMENT NET ASSETS REIMBURSEMENT END OF EXPENSES INCOME (LOSS) (EXCLUDING AND/OR PORTFOLIO TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE ------------------------------------------------------------------------------------------------------------------------------------ WHITE OAK SELECT GROWTH FUND 2005 (0.19)% $ 878,709 1.14% 0.04% 1.14% 1.14% 36.46% 2004 (7.75) 1,569,899 1.07 (0.47) 1.07 1.07 15.83 2003 46.64 2,136,891 1.07 (0.36) 1.08 1.11 4.28 2002 (32.77) 1,593,995 1.00 (0.32) 1.01 1.01 10.76 2001 (54.99) 3,188,358 0.95 (0.31) 0.95 0.95 15.44 ROCK OAK CORE GROWTH FUND 2005(1) 1.00% $ 10,560 1.15% (0.67)% 1.15% 1.89% 44.73% PIN OAK AGGRESSIVE STOCK FUND 2005 11.09% $ 139,379 1.15% (0.78)% 1.15% 1.22% 28.02% 2004 (0.58) 190,839 1.15 (0.80) 1.15 1.17 21.10 2003 64.49 233,503 1.11 (0.83) 1.12 1.23 21.67 2002 (46.18) 143,775 1.00 (0.87) 1.09 1.09 17.68 2001 (68.75) 363,083 0.99 (0.82) 0.99 0.99 20.91 RIVER OAK DISCOVERY FUND 2005(2) 1.00% $ 3,063 1.35% (0.79)% 1.35% 4.05% 15.68% RED OAK TECHNOLOGY SELECT FUND 2005 3.97% $ 160,881 1.15% (0.50)% 1.15% 1.27% 40.47% 2004 (3.96) 244,848 1.15 (1.01) 1.15 1.20 38.44 2003 55.08 327,853 1.11 (0.98) 1.11 1.24 60.35 2002 (49.94) 217,390 1.00 (0.97) 1.10 1.10 47.80 2001 (75.04) 531,663 0.98 (0.84) 0.98 0.98 53.98
www.oakfunds.com 17 Financial Highlights FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS OR PERIODS ENDED OCTOBER 31,
REALIZED AND NET NET ASSET UNREALIZED DISTRIBUTIONS ASSET VALUE NET GAINS OR TOTAL FROM VALUE BEGINNING INVESTMENT (LOSSES) ON FROM CAPITAL END OF OF PERIOD LOSS SECURITIES OPERATIONS GAINS PERIOD ------------------------------------------------------------------------------------------------------------------------------------ BLACK OAK EMERGING TECHNOLOGY FUND 2005 $ 2.08 $(0.02)# $(0.01)## $(0.03) $ -- $ 2.05 2004 2.21 (0.03) (0.10) (0.13) -- 2.08 2003 1.23 (0.02) 1.00 0.98 -- 2.21 2002 2.98 (0.02) (1.73) (1.75) -- 1.23 2001(3) 10.00 (0.02) (7.00) (7.02) -- 2.98 LIVE OAK HEALTH SCIENCES FUND 2005 $ 9.44 $(0.07)# $ 2.29 $ 2.22 $ -- $11.66 2004 9.24 (0.07) 0.27 0.20 -- 9.44 2003 7.83 (0.05) 1.46 1.41 -- 9.24 2002 10.24 (0.05) (2.36) (2.41) -- 7.83 2001(4) 10.00 (0.01) 0.25 0.24 -- 10.24
# PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES FOR THE PERIOD. ## THE AMOUNT SHOWN FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD DOES NOT ACCORD WITH THE AGGREGATE NET GAINS ON INVESTMENTS FOR THE PERIOD BECAUSE OF THE SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUE OF THE INVESTMENTS OF THE FUND. + RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FIGURES DO NOT REFLECT THE DEDUCTION OF TAXES THE SHAREHOLDER WILL PAY ON FUND DISTRIBUTIONS OR REDEMPTION OF FUND SHARES. ++ NET INVESTMENT INCOME PER SHARE AND THE NET INVESTMENT INCOME RATIO INCLUDE $0.13 AND 0.40%, RESPECTIVELY, RESULTING FROM A SPECIAL DIVIDEND FROM MICROSOFT IN NOVEMBER 2004. +++ NET INVESTMENT INCOME PER SHARE AND THE NET INVESTMENT INCOME RATIO INCLUDE $0.03 AND 0.51%, RESPECTIVELY, RESULTING FROM A SPECIAL DIVIDEND FROM MICROSOFT IN NOVEMBER 2004. (1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED. (2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED. (3) THE BLACK OAK EMERGING TECHNOLOGY FUND COMMENCED OPERATIONS ON DECEMBER 29, 2000. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED. (4) THE LIVE OAK HEALTH SCIENCES FUND COMMENCED OPERATIONS ON JUNE 29, 2001. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 18
RATIO OF RATIO OF EXPENSES RATIO OF EXPENSES TO AVERAGE NET TO AVERAGE NET ASSETS NET ASSETS RATIO OF INVESTMENT NET ASSETS (EXCLUDING END OF EXPENSES LOSS (EXCLUDING WAIVER AND/OR PORTFOLIO TOTAL PERIOD TO AVERAGE TO AVERAGE FEES PAID FEES PAID TURNOVER RETURN+ (000) NET ASSETS NET ASSETS INDIRECTLY) INDIRECTLY) RATE ------------------------------------------------------------------------------------------------------------------------------------ BLACK OAK EMERGING TECHNOLOGY FUND 2005 (1.44)% $48,901 1.15% (1.13)% 1.15% 1.41% 30.22% 2004 (5.88) 72,093 1.15 (1.14) 1.15 1.33 33.71 2003 79.67 86,414 1.11 (1.08) 1.11 1.50 33.62 2002 (58.72) 40,583 1.00 (0.86) 1.20 1.20 57.15 2001(3) (70.20)+ 104,191 1.00 (0.52) 1.12 1.12 5.99 LIVE OAK HEALTH SCIENCES FUND 2005 23.52% $36,304 1.15% (0.66)% 1.15% 1.22% 15.69% 2004 2.16 26,226 1.15 (0.75) 1.15 1.19 4.05 2003 18.01 22,520 1.10 (0.66) 1.10 1.28 12.55 2002 (23.54) 18,686 1.00 (0.56) 1.18 1.18 31.00 2001(4) 2.40+ 21,134 1.00 (0.49) 1.23 1.23 --
www.oakfunds.com 19 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- White Oak Select Growth Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] AUDIO/VISUAL EQUIPMENT - 1.9% BIOLOGICAL PRODUCTS - 4.8% COMMERCIAL BANKS - 4.7% COMPUTER COMMUNICATIONS EQUIPMENT - 10.7% COMPUTER PERIPHERAL EQUIPMENT - 1.0% CONSTRUCTION MACHINARY & EQUIPMENT - 5.5% E-COMMERCE - SERVICES - 5.6% ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS - 6.3% ELECTRONIC COMPUTERS - 4.0% MEASURING & CONTROLLING DEVICES - 3.8% PHARMACEUTICAL PREPARATIONS - 7.7% SECURITY BROKERS, DEALERS & FLOTATION COMPANIES - 6.1% SEMICONDUCTOR CAPITAL EQUIPMENT - 4.5% SEMICONDUCTORS & RELATED DEVICES - 13.4% SERVICES - ALLIED TO MOTION PICTURE PRODUCTION - 1.6% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH - 2.1% SERVICES - COMPUTER PROGRAMMING 1.2% SERVICES - PREPACKAGED SOFTWARE - 9.7% TRACKING & COURIER SERVICES - 4.8% REPURCHASE AGREEMENT - 0.6% + Percentages are based on net assets. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 99.4% AUDIO/VISUAL EQUIPMENT -- 1.9% Harman International Industries 170,000 $ 16,976 --------- 16,976 --------- BIOLOGICAL PRODUCTS -- 4.8% Amgen* 562,000 42,577 --------- 42,577 --------- COMMERCIAL BANKS -- 4.7% Citigroup 895,000 40,973 --------- 40,973 --------- COMPUTER COMMUNICATIONS EQUIPMENT -- 10.7% Cisco Systems* 3,070,000 53,572 Juniper Networks* 1,725,000 40,244 --------- 93,816 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMPUTER PERIPHERAL EQUIPMENT -- 1.0% Symbol Technologies 1,065,000 $ 8,840 --------- 8,840 --------- CONSTRUCTION MACHINARY & EQUIPMENT -- 5.5% Caterpillar 920,000 48,383 --------- 48,383 --------- E-COMMERCE - SERVICES -- 5.6% eBay* 1,235,000 48,906 --------- 48,906 --------- ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 6.3% Medtronic 970,000 54,960 --------- 54,960 --------- 1-888-462-5386 20 -------------------------------------------------------------------------------- White Oak Select Growth Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- ELECTRONIC COMPUTERS -- 4.0% Dell* 1,115,000 $ 35,546 --------- 35,546 --------- MEASURING & CONTROLLING DEVICES -- 3.8% Rockwell Automation 635,000 33,750 --------- 33,750 --------- PHARMACEUTICAL PREPARATIONS -- 7.7% Pfizer 1,800,000 39,132 Teva Pharmaceutical Industries ADR 750,000 28,590 --------- 67,722 --------- SECURITY BROKERS, DEALERS & FLOTATION COMPANIES -- 6.1% Charles Schwab 3,525,000 53,580 --------- 53,580 --------- SEMICONDUCTOR CAPITAL EQUIPMENT -- 4.5% Applied Materials 2,410,000 39,476 --------- 39,476 --------- SEMICONDUCTORS & RELATED DEVICES -- 13.4% Linear Technology 1,200,000 39,852 Maxim Integrated Products 865,000 29,998 Qualcomm 1,205,200 47,919 --------- 117,769 --------- SERVICES - ALLIED TO MOTION PICTURE PRODUCTION -- 1.6% Avid Technology* 280,000 13,784 --------- 13,784 --------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 2.1% Affymetrix* 415,000 $ 18,853 --------- 18,853 --------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 1.2% Cognizant Technology Solutions, Cl A* 230,000 10,115 --------- 10,115 --------- SERVICES - PREPACKAGED SOFTWARE -- 9.7% Electronic Arts* 760,000 43,229 Symantec* 1,776,300 42,365 --------- 85,594 --------- TRACKING & COURIER SERVICES -- 4.8% United Parcel Service, Cl B 575,000 41,941 --------- 41,941 --------- TOTAL COMMON STOCK (Cost $723,070)(000) 873,561 --------- REPURCHASE AGREEMENT -- 0.6% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $5,174,464, (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $5,277,540) $5,174 5,174 --------- TOTAL REPURCHASE AGREEMENT (Cost $5,174)(000) 5,174 --------- TOTAL INVESTMENTS -- 100.0% (Cost $728,244)(000) 878,735 --------- www.oakfunds.com 21 -------------------------------------------------------------------------------- White Oak Select Growth Fund (CONCLUDED) -------------------------------------------------------------------------------- DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES -- (0.0)% Payable for Fund Shares Redeemed $ (1,562) Investment Advisory Fees Payable (562) Administration Fees Payable (39) Trustees' Fees Payable (20) Other Assets and Liabilities, Net 2,157 ------------- (26) ------------- NET ASSETS -- 100.0% $ 878,709 ============= NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 28,025,268 outstanding shares of beneficial interest $ 3,462,564 Undistributed net investment income 498 Accumulated net realized loss on investments (2,734,844) Net unrealized appreciation on investments 150,491 ------------- NET ASSETS $ 878,709 ============= Net Asset Value, Offering and Redemption Price Per Share $31.35 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 22 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- Rock Oak Core Growth Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED PLOT POINTS FOLLOWS] REPURCHASE AGREEMENT 4.7% WEB PORTALS/ISP 3.7% TRUCKING & COURIER SERVICES 3.7% TRANSPORTATION - RAILROADS 1.0% TELECOM - WIRELESS PROVIDER 2.0% STATE COMMERCIAL BANKS 1.6% SERVICES - PREPACKAGED SOFTWARE 7.1% SERVICES - COMPUTER PROGRAMMING SERVICES 6.9% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 1.3% SERVICES - BUSINESS SERVICES 1.4% SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 2.4% SEMICONDUCTORS & RELATED DEVICES 4.8% SEMICONDUCTOR CAPITAL EQUIPMENT 1.9% SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 4.3% RETAIL - EATING PLACES 3.5% RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS 2.8% RETAIL - HANDBAGS 1.3% RADIO BROADCASTING STATIONS 2.3% PHARMACEUTICAL PREPARATIONS 2.3% PATENT OWNERS & LESSORS 1.4% OPERATIVE BUILDERS 0.8% OIL, GAS FIELD SERVICES 3.5% MINING MACHINERY & EQUIPMENT 2.1% MEASURING & CONTROLLING DEVICES 4.8% GENERAL BUILDING CONTRACTORS - RESIDENTIAL BUILDINGS 2.6% ENERGY - WELL EQUIPMENT 2.2% ELECTRONIC COMPUTERS 1.7% ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 1.0% E-COMMERCE - SERVICES 2.6% DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT 1.0% DATA STORAGE 2.1% CRUDE PERTROLEUM NATURAL GAS 3.0% CONSTRUCTION MACHINERY & EQUIPMENT 1.6% COMPUTER COMMUNICATIONS EQUIPMENT 3.1% COMMERCIAL BANKS 0.9% BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) 6.1% + Percentages are based on net assets. Included in net assets are other assets and liabilities of 0.5%. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 94.8% BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) -- 6.1% Amgen* 2,600 $ 197 Genzyme* 2,600 188 Charles River Laboratories International* 6,000 263 --------- 648 --------- COMMERCIAL BANKS -- 0.9% Citigroup 2,100 96 --------- 96 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMPUTER COMMUNICATIONS EQUIPMENT -- 3.1% Cisco Systems* 10,000 $ 175 Juniper Networks* 6,500 152 --------- 327 --------- CONSTRUCTION MACHINERY & EQUIPMENT -- 1.6% Caterpillar 3,100 163 --------- 163 --------- CRUDE PERTROLEUM NATURAL GAS -- 3.0% Ultra Petroleum* 3,600 189 XTO Energy 3,033 132 --------- 321 --------- www.oakfunds.com 23 -------------------------------------------------------------------------------- Rock Oak Core Growth Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- DATA STORAGE -- 2.1% EMC* 15,700 $ 219 --------- 219 --------- DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT -- 1.0% OMI 6,000 108 --------- 108 --------- E-COMMERCE -- SERVICES -- 2.6% eBay* 6,900 273 --------- 273 --------- ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 1.0% Medtronic 1,800 102 --------- 102 --------- ELECTRONIC COMPUTERS -- 1.7% Dell* 5,600 179 --------- 179 --------- ENERGY - WELL EQUIPMENT -- 2.2% National Oilwell Varco* 3,800 237 --------- 237 --------- GENERAL BUILDING CONTRACTORS -- RESIDENTIAL BUILDINGS -- 2.6% Toll Brothers* 7,400 273 --------- 273 --------- MEASURING & CONTROLLING DEVICES -- 4.8% Rockwell Automation 4,400 234 Thermo Electron* 9,100 275 --------- 509 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- MINING MACHINERY & EQUIPMENT -- 2.1% Joy Global 4,850 $ 222 --------- 222 --------- OIL, GAS FIELD SERVICES -- 3.5% Schlumberger 4,100 372 --------- 372 --------- OPERATIVE BUILDERS -- 0.8% Ryland Group 1,300 87 --------- 87 --------- PATENT OWNERS & LESSORS -- 1.4% Headwaters* 4,700 150 --------- 150 --------- PHARMACEUTICAL PREPARATIONS -- 2.3% Teva Pharmaceutical Industries ADR 6,400 244 --------- 244 --------- RADIO BROADCASTING STATIONS -- 2.3% XM Satellite Radio, Cl A* 8,500 245 --------- 245 --------- RETAIL - HANDBAGS -- 1.3% Coach* 4,200 135 --------- 135 --------- RETAIL -- LUMBER & OTHER BUILDING, MATERIALS DEALERS -- 2.8% Lowe's 4,900 298 --------- 298 --------- 1-888-462-5386 24 -------------------------------------------------------------------------------- Rock Oak Core Growth Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- RETAIL - EATING PLACES -- 3.5% Starbucks* 13,000 $ 368 --------- 368 --------- SECURITY BROKERS, DEALERS & FLOTATION COMPANIES -- 4.3% Goldman Sachs Group 3,600 455 --------- 455 --------- SEMICONDUCTOR CAPITAL EQUIPMENT -- 1.9% Applied Materials 11,900 195 --------- 195 --------- SEMICONDUCTORS & RELATED DEVICES -- 4.8% Maxim Integrated Products 2,400 83 Qualcomm 10,600 421 --------- 504 --------- SERVICES - ALLIED TO MOTION PICTURE PRODUCTION -- 2.4% Avid Technology* 5,200 256 --------- 256 --------- SERVICES - BUSINESS SERVICES -- 1.4% Ctrip.com International ADR 2,500 144 --------- 144 --------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 1.3% Affymetrix* 3,100 141 --------- 141 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 6.9% Cognizant Technology Solutions, Cl A* 11,500 $ 506 Satyam Computer Services ADR 6,500 222 --------- 728 --------- SERVICES PREPACKAGED SOFTWARE -- 7.1% Electronic Arts* 6,000 341 NAVETQ* 2,200 86 Symantec* 13,600 324 --------- 751 --------- STATE COMMERCIAL BANKS -- 1.6% SVB Financial Group* 3,300 164 --------- 164 --------- TELECOM - WIRELESS PROVIDER -- 2.0% Vimpel-Communications ADR* 5,300 212 --------- 212 --------- TRANSPORTATION - RAILROADS -- 1.0% Norfolk Southern 2,500 101 --------- 101 --------- TRUCKING & COURIER SERVICES -- 3.7% Expeditors International Washington 6,500 394 --------- 394 --------- www.oakfunds.com 25 -------------------------------------------------------------------------------- Rock Oak Core Growth Fund (CONCLUDED) -------------------------------------------------------------------------------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- WEB PORTALS/ISP -- 3.7% Shanda Interactive Entertainment ADS* 3,000 $ 74 Yahoo!* 8,500 314 --------- 388 --------- TOTAL COMMON STOCK (Cost $9,473)(000) 10,009 --------- REPURCHASE AGREEMENT -- 4.7% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $493,737 (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $503,572) $494 494 --------- TOTAL REPURCHASE AGREEMENT (Cost $494)(000) 494 --------- TOTAL INVESTMENTS -- 99.5% (Cost $9,967)(000) 10,503 --------- OTHER ASSETS AND LIABILITIES -- 0.5% Payable for Investment Securities Purchased (40) Payable for Fund Shares Redeemed (2) Investment Advisory Fees Payable (1) Other Assets and Liabilities, Net 100 --------- 57 --------- NET ASSETS -- 100.0% $ 10,560 ========= DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 1,045,913 outstanding shares of beneficial interest $10,301 Accumulated net realized loss on investments (277) Net unrealized appreciation on investments 536 --------- NET ASSETS $ 10,560 ========= Net Asset Value, Offering and Redemption Price Per Share $10.10 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT ADR -- AMERICAN DEPOSITARY RECEIPT ADS -- AMERICAN DEPOSITORY SHARES CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 26 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- Pin Oak Aggressive Stock Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] COMPUTER COMMUNICATIONS EQUIPMENT 9.7% COMPUTER PERIPHERAL EQUIPMENT 3.0% E-COMMERCE - SERVICES 12.7% MEASURING & CONTROLLING DEVICES 4.0% RETAIL - JEWELRY STORES 7.5% SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 7.4% SEMICONDUCTOR CAPITAL EQUIPMENT 7.7% SEMICONDUCTORS & RELATED DEVICES 11.9% SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 6.2% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 5.2% SERVICES - COMPUTER PROGRAMMING SERVICES 4.0% SERVICES - PREPACKAGED SOFTWARE 4.7% WEB PORTALS/ISP 15.4% REPURCHASE AGREEMENT 0.6% + Percentages are based on net assets. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK - 99.4% COMPUTER COMMUNICATIONS EQUIPMENT -- 9.7% Cisco Systems* 390,000 $ 6,806 Juniper Networks* 290,000 6,766 -------- 13,572 -------- COMPUTER PERIPHERAL EQUIPMENT -- 3.0% Symbol Technologies 510,000 4,233 -------- 4,233 -------- E-COMMERCE - SERVICES -- 12.7% Amazon.com* 200,000 7,976 eBay* 246,700 9,769 -------- 17,745 -------- MEASURING & CONTROLLING DEVICES -- 4.0% Rockwell Automation 105,000 5,581 -------- 5,581 -------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- RETAIL - JEWELRY STORES -- 7.5% Blue Nile* 120,500 $ 4,322 Tiffany 155,000 6,107 -------- 10,429 -------- SECURITY BROKERS, DEALERS & FLOTATION COMPANIES -- 7.4% Charles Schwab 680,000 10,336 -------- 10,336 -------- SEMICONDUCTOR CAPITAL EQUIPMENT -- 7.7% Applied Materials 300,000 4,914 Kla-Tencor 125,000 5,786 -------- 10,700 -------- SEMICONDUCTORS & RELATED DEVICES -- 11.9% Linear Technology 185,000 6,144 Maxim Integrated Products 153,500 5,323 Xilinx 215,000 5,149 -------- 16,616 -------- www.oakfunds.com 27 -------------------------------------------------------------------------------- Pin Oak Aggressive Stock Fund (CONCLUDED) -------------------------------------------------------------------------------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- SERVICES - ALLIED TO MOTION PICTURE PRODUCTION -- 6.2% Avid Technology* 174,000 $ 8,566 -------- 8,566 -------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 5.2% Affymetrix* 160,000 7,269 -------- 7,269 -------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 4.0% Cognizant Technology Solutions* 125,000 5,497 -------- 5,497 -------- SERVICES - PREPACKAGED SOFTWARE -- 4.7% Cerner* 77,000 6,503 -------- 6,503 -------- WEB PORTALS/ISP -- 15.4% Google* 35,300 13,137 Yahoo!* 227,000 8,392 -------- 21,529 -------- TOTAL COMMON STOCK (Cost $99,729)(000) 138,576 -------- REPURCHASE AGREEMENT -- 0.6% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $780,650, (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $796,201) $781 781 -------- TOTAL REPURCHASE AGREEMENT (Cost $781)(000) 781 -------- DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.0% (Cost $100,510)(000) $139,357 -------- OTHER ASSETS AND LIABILITIES -- 0.0% Payable for Investment Securities Purchased (177) Payable for Fund Shares Redeemed (337) Investment Advisory Fees Payable (62) Administration Fees Payable (6) Trustees' Fees Payable (3) Other Assets and Liabilities, Net 607 -------- 22 -------- NET ASSETS -- 100.0% $139,379 ======== NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 6,597,380 outstanding shares of beneficial interest $962,387 Accumulated net realized loss on investments (861,855) Net unrealized appreciation on investments 38,847 -------- NET ASSETS $139,379 ======== Net Asset Value, Offering and Redemption Price Per Share $21.13 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 28 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- River Oak Discovery Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] REPURCHASE AGREEMENT 6.7% WEB PORTALS/ISP 3.2% TELEGRAPH & OTHER MESSAGE COMMUNICATIONS 2.8% TELECOM - COMMUNICATIONS EQUIPMENT 2.9% SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN 10.2% SURGICAL & MEDICAL INSTRUMENTS & APPARATUS 1.2% STATE COMMERCIAL BANKS 5.8% SERVICES - PREPACKAGED SOFTWARE 11.3% SERVICES - HOTELS & MOTELS 2.9% SERVICES - COMPUTER PROGRAMMING SERVICES 2.9% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 5.1% SERVICES - BUSINESS SERVICES 2.3% SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 2.4% SEMICONDUCTORS & RELATED DEVICES 2.6% SECURITY BROKERS, DEALERS & FLOTATION COMPANIES 2.5% RETAIL - EATING PLACES 0.8% RETAIL - AUTOMOTIVE & HOME SUPPLY STORES 1.3% PUMPS & PUMPING EQUIPMENT 2.7% PATENT OWNERS & LESSORS 2.0% OPERATIVE BUILDERS 2.9% MINING MACHINERY & EQUIPMENT 4.7% MEASURING & CONTROLLING DEVICES 0.6% ENERGY - WELL EQUIPMENT 2.0% ELECTRONIC COMPONENTS 2.3% ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 1.9% DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT 2.2% CRUDE PETROLEUM NATURAL GAS 2.4% BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) 4.7% + Percentages are based on net assets. Included in net assets are other assets and liabilities of 4.7%. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 88.6% BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) -- 4.7% Charles River Laboratories International* 2,000 $ 88 Invitrogen* 900 57 --------- 145 --------- CRUDE PETROLEUM NATURAL GAS -- 2.4% Encore Acquisition* 2,150 74 --------- 74 --------- DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT -- 2.2% OMI 3,700 67 --------- 67 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 1.9% Palomar Medical Technologies* 2,200 $ 60 --------- 60 --------- ELECTRONIC COMPONENTS -- 2.3% Color Kinetics* 4,600 70 --------- 70 --------- ENERGY - WELL EQUIPMENT -- 2.0% Hydril* 900 60 --------- 60 --------- MEASURING & CONTROLLING DEVICES -- 0.6% Thermo Electron* 600 18 --------- 18 --------- www.oakfunds.com 29 -------------------------------------------------------------------------------- River Oak Discovery Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- MINING MACHINERY & EQUIPMENT -- 4.7% Bucyrus International, Cl A 1,800 $ 75 Joy Global 1,500 69 --------- 144 --------- OPERATIVE BUILDERS -- 2.9% Meritage* 700 44 Ryland Group 650 44 --------- 88 --------- PATENT OWNERS & LESSORS -- 2.0% Headwaters* 1,900 60 --------- 60 --------- PUMPS & PUMPING EQUIPMENT -- 2.7% Roper Industries 2,200 83 --------- 83 --------- RETAIL - AUTOMOTIVE & HOME SUPPLY STORES -- 1.3% O'Reilly Automotive* 1,400 39 --------- 39 --------- RETAIL - EATING PLACES -- 0.8% PF Chang's China Bistro* 550 25 --------- 25 --------- SECURITY BROKERS, DEALERS & FLOTATION COMPANIES -- 2.5% Nuveen Investments, Cl A 1,900 77 --------- 77 --------- SEMICONDUCTORS & RELATED DEVICES -- 2.6% Formfactor* 3,200 79 --------- 79 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- SERVICES - ALLIED TO MOTION PICTURE PRODUCTION -- 2.4% Avid Technology* 1,500 $ 74 --------- 74 --------- SERVICES - BUSINESS SERVICES -- 2.3% Ctrip.com Intermational ADR 1,200 69 --------- 69 --------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 5.1% Affymetrix* 1,700 77 Senomyx* 2,200 31 Symyx Technologies* 1,800 48 --------- 156 --------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 2.9% Satyam Computer Services ADR 2,600 89 --------- 89 --------- SERVICES - HOTELS & MOTELS -- 2.9% Station Casinos 1,400 90 --------- 90 --------- SERVICES - PREPACKAGED SOFTWARE -- 11.3% Ansys* 2,000 74 Cerner* 950 80 NAVTEQ* 1,200 47 Packeteer* 7,000 55 Verint Systems* 2,400 92 --------- 348 --------- 1-888-462-5386 30 -------------------------------------------------------------------------------- River Oak Discovery Fund (CONCLUDED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- STATE COMMERCIAL BANKS -- 5.8% East West Bancorp 2,300 $ 88 SVB Financial Group* 1,800 89 --------- 177 --------- SURGICAL & MEDICAL INSTRUMENTS & APPARATUS -- 1.2% Kinetic Concepts* 1,000 36 --------- 36 --------- SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN -- 10.2% Anteon International* 2,000 90 Quality Systems 1,300 87 Salesforce.com* 3,600 90 Sapient* 8,600 45 --------- 312 --------- TELECOM - COMMUNICATIONS EQUIPMENT -- 2.9% Viasat* 3,600 89 --------- 89 --------- TELEGRAPH & OTHER MESSAGE COMMUNICATIONS -- 2.8% Global Payments 2,000 86 --------- 86 --------- WEB PORTALS/ISP -- 3.2% Factset Research Systems 1,300 46 Sify ADR* 10,500 53 --------- 99 --------- TOTAL COMMON STOCK (Cost $2,688)(000) 2,714 --------- FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 6.7% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $204,593 (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $208,668) $205 $ 205 --------- TOTAL REPURCHASE AGREEMENT (Cost $205)(000) 205 --------- TOTAL INVESTMENTS -- 95.3% (Cost $2,893)(000) 2,919 --------- OTHER ASSETS AND LIABILITIES -- 4.7% Receivable from Investment Adviser 3 Other Assets and Liabilities, Net 141 --------- 144 --------- NET ASSETS -- 100.0% $ 3,063 ========= NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 303,321 outstanding shares of beneficial interest $ 3,055 Accumulated net realized loss on investments (18) Net unrealized appreciation on investments 26 --------- NET ASSETS $ 3,063 ========= Net Asset Value, Offering and Redemption Price Per Share $10.10 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. www.oakfunds.com 31 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- Red Oak Technology Select Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] REPURCHASE AGREEMENT 1.0% WEB PORTALS/ISP 13.6% SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN 4.5% SERVICES - PREPACKAGED SOFTWARE 19.2% SERVICES - COMPUTER PROGRAMMING SERVICES 4.5% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 2.1% SEMICONDUCTORS & RELATED DEVICES 17.8% SEMICONDUCTOR CAPITAL EQUIPMENT 2.2% ELECTRONIC COMPUTERS 3.8% E-COMMERCE - SERVICES 9.2% DATA STORAGE 6.5% COMPUTER PERIPHERAL EQUIPMENT 4.8% COMPUTER COMMUNICATIONS EQUIPMENT 9.1% AUDIO/VISUAL EQUIPMENT 1.9% + Percentages are based on net assets. Included in net assets are other assets and liabilities of (0.2)%. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 99.2% AUDIO/VISUAL EQUIPMENT -- 1.9% Harman International Industries 30,000 $ 2,996 --------- 2,996 --------- COMPUTER COMMUNICATIONS EQUIPMENT -- 9.1% Cisco Systems* 375,000 6,544 Juniper Networks* 350,000 8,165 --------- 14,709 --------- COMPUTER PERIPHERAL EQUIPMENT -- 4.8% Symbol Technologies 375,000 3,112 Zebra Technologies, Cl A* 105,000 4,527 --------- 7,639 --------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- DATA STORAGE -- 6.5% EMC* 750,000 $ 10,470 --------- 10,470 --------- E-COMMERCE - SERVICES -- 9.2% Amazon.com* 180,000 7,178 eBay* 191,200 7,571 --------- 14,749 --------- ELECTRONIC COMPUTERS -- 3.8% Dell* 191,100 6,092 --------- 6,092 --------- SEMICONDUCTOR CAPITAL EQUIPMENT -- 2.2% Kla-Tencor 75,000 3,472 --------- 3,472 --------- 1-888-462-5386 32 -------------------------------------------------------------------------------- Red Oak Technology Select Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- SEMICONDUCTORS & RELATED DEVICES -- 17.8% Formfactor* 120,000 $ 2,954 Marvell Technology Group* 195,000 9,050 Maxim Integrated Products 160,600 5,570 Qualcomm 280,000 11,133 --------- 28,707 --------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 2.1% Affymetrix* 75,000 3,407 --------- 3,407 --------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 4.5% Cognizant Technology Solutions, Cl A* 163,187 7,177 --------- 7,177 --------- SERVICES - PREPACKAGED SOFTWARE -- 19.2% Electronic Arts* 145,000 8,248 Macromedia* 150,000 6,588 NAVTEQ* 130,000 5,086 Pixar* 140,000 7,102 Symantec* 165,000 3,935 --------- 30,959 --------- SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN -- 4.5% Cogent* 120,300 3,194 Cognex 140,000 4,001 --------- 7,195 --------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- WEB PORTALS/ISP -- 13.6% Google, Cl A* 38,000 $ 14,141 Yahoo!* 211,000 7,801 --------- 21,942 --------- TOTAL COMMON STOCK (Cost $121,141)(000) 159,514 --------- REPURCHASE AGREEMENT -- 1.0% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $1,676,664 (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $1,710,063) $1,677 1,677 --------- TOTAL REPURCHASE AGREEMENT (Cost $1,677)(000) 1,677 --------- TOTAL INVESTMENTS -- 100.2% (Cost $122,818)(000) 161,191 --------- OTHER ASSETS AND LIABILITIES -- (0.2)% Payable for Fund Shares Redeemed (165) Investment Advisory Fees Payable (67) Administration Fees Payable (7) Trustees' Fees Payable (4) Other Assets and Liabilities, Net (67) --------- (310) --------- NET ASSETS -- 100.0% $ 160,881 ========= www.oakfunds.com 33 -------------------------------------------------------------------------------- Red Oak Technology Select Fund (CONCLUDED) -------------------------------------------------------------------------------- DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 24,564,193 outstanding shares of beneficial interest $ 1,823,637 Accumulated net realized loss on investments (1,701,129) Net unrealized appreciation on investments 38,373 ----------- NET ASSETS $ 160,881 =========== Net Asset Value, Offering and Redemption Price Per Share $ 6.55 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 34 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- Black Oak Emerging Technology Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] REPURCHASE AGREEMENT 0.3% TESTING LABS 2.9% SERVICES - PREPACKAGED SOFTWARE 28.3% SERVICES - COMPUTER PROGRAMMING SERVICES 6.1% SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN 4.1% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 7.7% SERVICES - BUSINESS SERVICES 5.0% SERVICES - ALLIED TO MOTION PICTURE PRODUCTION 6.4% SEMICONDUCTORS & RELATED DEVICES 21.6% SEARCH, DETECTION, NAVIGATION, GUIDANCE, AURONAUTICAL SYSTEMS 3.8% SEARCH AND NAVIGATION EQUIPMENT 2.3% RADIO BROADCASTING STATIONS 3.9% ELECTRONIC COMPONENTS 2.2% ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 2.3% COMPUTER SYSTEMS & SOFTWARE - COMPUTER INTEGRATED SYSTEMS DESIGN 3.2% + Percentages are based on net assets. Included in net assets are other assets and liabilities of (0.1)%. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 99.8% COMPUTER SYSTEMS & SOFTWARE - COMPUTER INTEGRATED SYSTEMS DESIGN -- 3.2% F5 Networks* 30,000 $ 1,561 ----------- 1,561 ----------- ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 2.3% Given Imaging* 50,000 1,110 ----------- 1,110 ----------- ELECTRONIC COMPONENTS -- 2.2% Color Kinetics* 70,000 1,067 ----------- 1,067 ----------- RADIO BROADCASTING STATIONS -- 3.9% XM Satellite Radio, Cl A* 66,500 1,917 ----------- 1,917 ----------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- SEARCH AND NAVIGATION EQUIPMENT -- 2.3% DRS Technologies 22,500 $ 1,108 ----------- 1,108 ----------- SEARCH, DETECTION, NAVIGATION, GUIDANCE, AURONAUTICAL SYSTEMS -- 3.8% Flir Systems* 88,900 1,863 ----------- 1,863 ----------- SEMICONDUCTORS & RELATED DEVICES -- 21.6% Cree* 114,400 2,750 DSP Group* 120,000 2,950 Formfactor* 57,000 1,403 Marvell Technology Group* 75,000 3,481 ----------- 10,584 ----------- www.oakfunds.com 35 -------------------------------------------------------------------------------- Black Oak Emerging Technology Fund (CONTINUED) -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- SERVICES - ALLIED TO MOTION PICTURE PRODUCTION -- 6.4% Avid Technology* 63,900 $ 3,146 ----------- 3,146 ----------- SERVICES - BUSINESS SERVICES -- 5.0% Ctrip.com International ADR 15,000 863 Audible* 150,900 1,577 ----------- 2,440 ----------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 7.7% Affymetrix* 43,000 1,954 Symyx Technologies* 67,300 1,800 ----------- 3,754 ----------- SYSTEMS - COMPUTER INTEGRATED SYSTEMS DESIGN -- 4.1% Cogent* 75,000 1,991 ----------- 1,991 ----------- SERVICES - COMPUTER PROGRAMMING SERVICES -- 6.1% Cognizant Technology Solutions, Cl A* 68,000 2,991 ----------- 2,991 ----------- SERVICES - PREPACKAGED SOFTWARE -- 28.3% Electronic Arts* 32,500 1,849 Macrovision* 105,000 1,978 NAVTEQ* 72,500 2,836 Packeteer* 195,000 1,539 SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- Ultimate Software Group* 157,000 $ 2,667 Verint Systems* 77,600 2,971 ----------- 13,840 ----------- TESTING LABS -- 2.9% eResearch Technology* 100,000 1,433 ----------- 1,433 ----------- TOTAL COMMON STOCK (Cost $37,743)(000) 48,805 ----------- REPURCHASE AGREEMENT -- 0.3% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $156,304 (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $159,418) $156 156 ----------- TOTAL REPURCHASE AGREEMENT (Cost $156)(000) 156 ----------- TOTAL INVESTMENTS -- 100.1% (Cost $37,899)(000) 48,961 ----------- OTHER ASSETS AND LIABILITIES -- (0.1)% Payable for Fund Shares Redeemed (41) Investment Advisory Fees Payable (14) Administration Fees Payable (2) Trustees' Fees Payable (1) Other Assets and Liabilities, Net (2) ----------- (60) ----------- NET ASSETS -- 100.0% $ 48,901 =========== 1-888-462-5386 36 -------------------------------------------------------------------------------- Black Oak Emerging Technology Fund (CONCLUDED) -------------------------------------------------------------------------------- DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 23,880,762 outstanding shares of beneficial interest $ 331,214 Accumulated net realized loss on investments (293,375) Net unrealized appreciation on investments 11,062 ----------- NET ASSETS $ 48,901 =========== Net Asset Value, Offering and Redemption Price Per Share $ 2.05 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. www.oakfunds.com 37 Statement of Net Assets OCTOBER 31, 2005 -------------------------------------------------------------------------------- Live Oak Health Sciences Fund -------------------------------------------------------------------------------- INDUSTRY WEIGHTING+ (Unaudited) [PIE CHART OMITTED, PLOT POINTS FOLLOWS] REPURCHASE AGREEMENT 4.1% WHOLESALE - DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES 5.1% SURGICAL & MEDICAL INSTRUMENTS & APPARATES 4.9% SERVICES - PREPACKAGED SOFTWARE 4.9% SERVICES - HOME HEALTH CARE SERVICES 4.5% SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH 10.1% SEMICONDUCTORS & RELATED DEVICES 1.7% PHARMACEUTICAL PREPARATIONS 20.8% LABORATORY ANALYTICAL INSTRUMENTS 10.5% IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES 1.6% ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS 6.5% BIOLOGICAL PRODUCTS 25.0% + Percentages are based on net assets. Included in net assets are other assets and liabilities of 0.3%. MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK -- 95.6% BIOLOGICAL PRODUCTS -- 25.0% Amgen* 24,000 $ 1,818 Cell Genesys* 190,000 1,024 Charles River Laboratories International* 25,000 1,094 Genentech* 12,000 1,087 Invitrogen* 32,000 2,035 Medimmune* 58,000 2,029 ----------- 9,087 ----------- ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS -- 6.5% Medtronic 41,500 2,352 ----------- 2,352 ----------- IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES -- 1.6% EPIX Pharmaceuticals* 84,713 593 ----------- 593 ----------- MARKET DESCRIPTION SHARES VALUE (000) -------------------------------------------------------------------------------- LABORATORY ANALYTICAL INSTRUMENTS -- 10.5% Applied Biosystems Group - Applera 76,000 $ 1,845 Bruker BioSciences* 81,100 337 Waters* 45,000 1,629 ----------- 3,811 ----------- PHARMACEUTICAL PREPARATIONS -- 20.8% Corcept Therapeutics* 131,552 651 Eli Lilly 23,000 1,145 Johnson & Johnson 11,500 720 Medicis Pharmaceutical, Cl A 46,000 1,357 Pfizer 46,400 1,009 Rigel Pharmaceuticals* 17,700 397 Teva Pharmaceutical Industries ADR 59,000 2,249 ----------- 7,528 ----------- SEMICONDUCTORS & RELATED DEVICES -- 1.7% Caliper Life Sciences* 91,200 595 ----------- 595 ----------- 1-888-462-5386 38 -------------------------------------------------------------------------------- Live Oak Health Sciences Fund (CONCLUDED) -------------------------------------------------------------------------------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH -- 10.1% Affymetrix* 80,900 $ 3,675 ----------- 3,675 ----------- SERVICES - HOME HEALTH CARE SERVICES -- 4.5% Express Scripts* 21,600 1,629 ----------- 1,629 ----------- SERVICES - PREPACKAGED SOFTWARE -- 4.9% Cerner* 21,200 1,790 ----------- 1,790 ----------- SURGICAL & MEDICAL INSTRUMENTS & APPARATES -- 4.9% Techne* 32,900 1,784 ----------- 1,784 ----------- WHOLESALE - DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES -- 5.1% AmerisourceBergen 24,300 1,853 ----------- 1,853 ----------- TOTAL COMMON STOCK (Cost $27,860)(000) 34,697 ----------- REPURCHASE AGREEMENT -- 4.1% Morgan Stanley (A) 3.50%, dated 10/31/05, to be repurchased on 11/01/05, repurchase price $1,486,909 (collateralized by a U.S. Treasury Note, 5.625%, 02/15/06, total market value: $1,516,528) $1,487 1,487 ----------- TOTAL REPURCHASE AGREEMENT (Cost $1,487)(000) 1,487 ----------- TOTAL INVESTMENTS -- 99.7% (Cost $29,347)(000) 36,184 ----------- DESCRIPTION VALUE (000) -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES -- 0.3% Payable for Investment Securities Purchased $ (93) Payable for Fund Shares Redeemed (19) Investment Advisory Fees Payable (18) Administration Fees Payable (2) Trustees' Fees Payable (1) Other Assets and Liabilities, Net 253 ----------- 120 ----------- NET ASSETS -- 100.0% $ 36,304 =========== NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 3,113,884 outstanding shares of beneficial interest $ 32,120 Accumulated net realized loss on investments (2,653) Net unrealized appreciation on investments 6,837 ----------- NET ASSETS $ 36,304 =========== Net Asset Value, Offering and Redemption Price Per Share $11.66 ====== * NON-INCOME PRODUCING SECURITY (A) TRI-PARTY REPURCHASE AGREEMENT ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTERGRAL PART OF THE FINANCIAL STATEMENTS. www.oakfunds.com 39 Statements of Operations (000) FOR THE YEAR OR PERIOD ENDED OCTOBER 31, 2005
WHITE OAK ROCK OAK SELECT GROWTH CORE GROWTH FUND FUND(1) ------------------------------------------------------------------------------------------ Investment Income: Dividends ...................................... $ 13,787 $ 27 Interest ....................................... 111 9 Less: Foreign Withholding Tax .................. -- -- ------------------------------------------------------------------------------------------ Total Investment Income ..................... 13,898 36 ------------------------------------------------------------------------------------------ Expenses: Investment Advisory Fees ....................... 8,733 56 Administration Fees ............................ 498 3 Transfer Agent Fees ............................ 3,038 27 Printing Fees .................................. 504 5 Professional Fees .............................. 163 1 Trustees' Fees ................................. 95 1 Registration Fees .............................. 91 -- Custodian Fees ................................. 65 1 Offering Fees .................................. -- 48 Insurance and Other Fees ....................... 213 1 ------------------------------------------------------------------------------------------ Total Expenses .............................. 13,400 143 ------------------------------------------------------------------------------------------ Less: Investment Advisory Fees Waived .................................... -- (56) Reimbursement from Adviser ............... -- -- ------------------------------------------------------------------------------------------ Net Expenses ................................ 13,400 87 ------------------------------------------------------------------------------------------ Net Investment Income (Loss) ................ 498 (51) ------------------------------------------------------------------------------------------ Net Realized Gain (Loss) on Securities Sold ............................. (316,096) (277) Net Change in Unrealized Appreciation (Depreciation) of Investment Securities .................... 322,828 536 ------------------------------------------------------------------------------------------ Net Realized and Unrealized Gain on Investments .................... 6,732 259 ------------------------------------------------------------------------------------------ Net Increase in Net Assets Resulting From Operations ................... $ 7,230 $208 ==========================================================================================
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004. (2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 40
PIN OAK RIVER OAK RED OAK BLACK OAK LIVE OAK AGGRESSIVE STOCK DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES FUND FUND(2) SELECT FUND TECHNOLOGY FUND FUND ------------------------------------------------------------------------------------------------------------------------------------ Investment Income: Dividends ............................... $ 608 $ 2 $ 1,271 $ -- $ 113 Interest ................................ 19 3 31 10 32 Less: Foreign Withholding Tax ........... -- -- -- -- (2) ------------------------------------------------------------------------------------------------------------------------------------ Total Investment Income .............. 627 5 1,302 10 143 ------------------------------------------------------------------------------------------------------------------------------------ Expenses: Investment Advisory Fees ................ 1,240 8 1,482 469 217 Administration Fees ..................... 71 -- 85 27 13 Transfer Agent Fees ..................... 567 10 778 334 99 Printing Fees ........................... 77 1 89 29 15 Professional Fees ....................... 24 -- 29 9 5 Trustees' Fees .......................... 14 -- 16 5 3 Registration Fees ....................... 11 -- 14 4 1 Custodian Fees .......................... 10 -- 13 4 2 Offering Fees ........................... -- 18 -- -- -- Insurance and Other Fees ................ 27 -- 33 10 5 ------------------------------------------------------------------------------------------------------------------------------------ Total Expenses ....................... 2,041 37 2,539 891 360 ------------------------------------------------------------------------------------------------------------------------------------ Less: Investment Advisory Fees Waived ............................. (114) (8) (236) (162) (22) Reimbursement from Adviser ........ -- (17) -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net Expenses ......................... 1,927 12 2,303 729 338 ------------------------------------------------------------------------------------------------------------------------------------ Net Investment Income (Loss) ......... (1,300) (7) (1,001) (719) (195) ------------------------------------------------------------------------------------------------------------------------------------ Net Realized Gain (Loss) on Securities Sold ...................... (12,825) (18) 21,296 8,146 252 Net Change in Unrealized Appreciation (Depreciation) of Investment Securities ............. 32,905 26 (11,183) (7,070) 5,638 ------------------------------------------------------------------------------------------------------------------------------------ Net Realized and Unrealized Gain on Investments ............. 20,080 8 10,113 1,076 5,890 ------------------------------------------------------------------------------------------------------------------------------------ Net Increase in Net Assets Resulting From Operations ............ $18,780 $ 1 $ 9,112 $ 357 $ 5,695 ====================================================================================================================================
www.oakfunds.com 41 Statements of Changes in Net Assets (000) FOR THE YEARS OR PERIODS ENDED OCTOBER 31,
WHITE OAK ROCK OAK PIN OAK SELECT GROWTH CORE GROWTH AGGRESSIVE STOCK FUND FUND(1) FUND 2005 2004 2005 2005 2004 ------------------------------------------------------------------------------------------------------------------------------------ Investment Activities: Net Investment Income (Loss) ................. $ 498 $ (9,379) $ (51) $ (1,300) $ (1,733) Net Realized Gain (Loss) on Securities Sold ........................ (316,096) (743,131) (277) (12,825) (84,984) Net Unrealized Appreciation (Depreciation) of Investment Securities ..................... 322,828 589,854 536 32,905 84,934 ------------------------------------------------------------------------------------------------------------------------------------ Net Increase (Decrease) in Net Assets Resulting from Operations ................. 7,230 (162,656) 208 18,780 (1,783) ------------------------------------------------------------------------------------------------------------------------------------ Capital Share Transactions (in dollars): Shares Issued ................................ 64,348 386,344 12,581 13,722 42,583 Shares Redeemed .............................. (762,768) (790,680) (2,229) (83,962) (83,464) ------------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets from Capital Share Transactions ........ (698,420) (404,336) 10,352 (70,240) (40,881) ------------------------------------------------------------------------------------------------------------------------------------ Total Increase (Decrease) in Net Assets .................... (691,190) (566,992) 10,560 (51,460) (42,664) ------------------------------------------------------------------------------------------------------------------------------------ Net Assets: Beginning of Period .......................... 1,569,899 2,136,891 -- 190,839 233,503 ------------------------------------------------------------------------------------------------------------------------------------ End of Period ................................ $ 878,709 $1,569,899 $10,560 $139,379 $ 190,839 ==================================================================================================================================== Undistributed Net Investment Income .......... $ 498 $ -- $ -- $ -- $ -- ==================================================================================================================================== Shares Issued and Redeemed: Issued ....................................... 2,024 11,012 1,277 678 2,151 Redeemed ..................................... (23,982) (23,781) (231) (4,112) (4,328) ------------------------------------------------------------------------------------------------------------------------------------ Net Increase (Decrease) in Share Transactions ..................... (21,958) (12,769) 1,046 (3,434) (2,177) ====================================================================================================================================
(1) THE ROCK OAK CORE GROWTH FUND COMMENCED OPERATIONS ON DECEMBER 31, 2004. (2) THE RIVER OAK DISCOVERY FUND COMMENCED OPERATIONS ON JUNE 30, 2005. AMOUNTS DESIGNATED AS"_" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 1-888-462-5386 42
RIVER OAK RED OAK BLACK OAK LIVE OAK DISCOVERY TECHNOLOGY EMERGING HEALTH SCIENCES FUND(2) SELECT FUND TECHNOLOGY FUND FUND 2005 2005 2004 2005 2004 2005 2004 ------------------------------------------------------------------------------------------------------------------------------------ Investment Activities: Net Investment Income (Loss) ................. $ (7) $ (1,001) $ (2,933) $ (719) $ (907) $ (195) $ (202) Net Realized Gain (Loss) on Securities Sold ........................ (18) 21,296 (34,196) 8,146 1,812 252 (71) Net Unrealized Appreciation (Depreciation) of Investment Securities ..................... 26 (11,183) 25,982 (7,070) (6,665) 5,638 383 ------------------------------------------------------------------------------------------------------------------------------------ Net Increase (Decrease) in Net Assets Resulting from Operations ................. 1 9,112 (11,147) 357 (5,760) 5,695 110 ------------------------------------------------------------------------------------------------------------------------------------ Capital Share Transactions (in dollars): Shares Issued ................................ 3,079 8,937 38,199 7,881 30,978 17,909 10,868 Shares Redeemed .............................. (17) (102,016) (110,057) (31,430) (39,539) (13,526) (7,272) ------------------------------------------------------------------------------------------------------------------------------------ Increase (Decrease) in Net Assets from Capital Share Transactions ........ 3,062 (93,079) (71,858) (23,549) (8,561) 4,383 3,596 ------------------------------------------------------------------------------------------------------------------------------------ Total Increase (Decrease) in Net Assets .................... 3,063 (83,967) (83,005) (23,192) (14,321) 10,078 3,706 ------------------------------------------------------------------------------------------------------------------------------------ Net Assets: Beginning of Period .......................... -- 244,848 327,853 72,093 86,414 26,226 22,520 ------------------------------------------------------------------------------------------------------------------------------------ End of Period ................................ $3,063 $160,881 $244,848 $48,901 $ 72,093 $36,304 $26,226 ==================================================================================================================================== Undistributed Net Investment Income .......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- ==================================================================================================================================== Shares Issued and Redeemed: Issued ....................................... 305 1,357 5,746 3,571 14,366 1,587 1,080 Redeemed ..................................... (2) (15,646) (16,848) (14,350) (18,730) (1,251) (739) ------------------------------------------------------------------------------------------------------------------------------------ Net Increase (Decrease) in Share Transactions ..................... 303 (14,289) (11,102) (10,779) (4,364) 336 341 ====================================================================================================================================
www.oakfunds.com 43 Notes to Financial Statements OCTOBER 31, 2005 1. ORGANIZATION: -------------------------------------------------------------------------------- The Oak Associates Funds (the "Trust") is organized as a Massachusetts business trust under an Agreement and Declaration of Trust dated November 6, 1997. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with seven funds: White Oak Select Growth Fund, Rock Oak Core Growth Fund, Pin Oak Aggressive Stock Fund and River Oak Discovery Fund (diversified funds); Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund (non-diversified funds) (collectively referred to as "Funds" and individually referred to as a "Fund"). The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectus provides a description of each Fund's investment objectives, policies and strategies. 2. SIGNIFICANT ACCOUNTING POLICIES: -------------------------------------------------------------------------------- The following is a summary of the significant accounting policies followed by the Funds. USE OF ESTIMATES--The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations and expenses during the reporting period. Actual results could differ from those estimates. SECURITY VALUATION--Investments in equity securities, which are traded on a national exchange, are stated at the last quoted sales price if readily available for such equity securities on each business day. Investments in equity securities, which are reported on the NASDAQ national market system are valued at the official closing price; other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding sixty days to maturity for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost, which approximates market value. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Funds' Board of Trustees. The Funds' Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") designated by the Funds' Board of Trustees. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary 1-888-462-5386 44 trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; a significant event with respect to a security or securities has occurred after the close of the market or exchange on which the security or securities principally trades and before the time the Fund calculates net asset value; or trading of the security is subject to local government-imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. SECURITY TRANSACTIONS AND RELATED INCOME--Security transactions are accounted for on the date the security is purchased or sold (trade date). Dividend income is recognized on the ex-dividend date, and interest income is recognized on the accrual basis. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities sold. EXPENSES--Expenses that are directly related to one of the Funds are charged to that Fund. Other operating expenses of the Trust are prorated to the Funds on the basis of relative daily net assets. OFFERING FEES--Offering Fees, which include registration fees, typesetting and prospectus printing, and preparation of the initial registration statement are being amortized over a twelve-month period. Offering Fees for the Rock Oak Core Growth Fund and the River Oak Discovery Fund were $57,063 and $53,538, respectively. As of October 31, 2005, $9,511 and $35,904, respectively remains to be amortized. REPURCHASE AGREEMENTS--The Funds invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained by the broker's custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the repurchase agreements and procedures adopted by the Board of Trustees require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--Dividends from net investment income are declared and paid to shareholders on an annual basis, as applicable. Net realized capital gains on sales of securities, if any, are distributed to shareholders at least annually. 3. TRANSACTIONS WITH AFFILIATES: -------------------------------------------------------------------------------- Certain officers of the Trust are also officers of Oak Associates, ltd., SEI Investments Global Funds Services www.oakfunds.com 45 Notes to Financial Statements (continued) OCTOBER 31, 2005 (the "Administrator") and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. 4. ADMINISTRATION, TRANSFER AGENT AND DISTRIBUTION AGREEMENTS: -------------------------------------------------------------------------------- The Trust and the Administrator are parties to an Administration Agreement dated February 27, 1998, last amended May 4, 2005, under which the Administrator provides management and administration services for an annual fee of 0.04% of the average daily net assets of each of the Funds up to $2.5 billion, 0.03% on the next $2.5 billion, 0.02% on the next $5 billion, and 0.015% of such assets in excess of $10 billion. There is a minimum annual administration fee of $665,000 for the trust. DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for the Funds under an Agency Agreement with the Trust dated February 27, 1998. The following Funds reimbursed Oak Associates, ltd. (the "Adviser") for amounts paid to third parties that provide sub-transfer agency and other administration services relating to the Funds: AMOUNT (000) ----------- White Oak Select Growth Fund ........ $1,787 Rock Oak Core Growth Fund ........... 3 Pin Oak Aggressive Stock Fund ....... 217 Red Oak Technology Select Fund ...... 237 Black Oak Energing Technology Fund .. 61 Live Oak Health Sciences Fund ....... 28 The Trust and the Distributor are parties to an Amended and restated Distribution Agreement dated February 27, 1998. The Distributor receives no fees for its distribution services under this agreement. 5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS: -------------------------------------------------------------------------------- The Trust and the Adviser are parties to an Investment Advisory Agreement dated February 27, 1998, as last amended May 4, 2005, under which the Adviser receives an annual fee equal to 0.74% of the average daily net assets of each Fund, except for the River Oak Discovery Fund for which the Adviser receives 0.90% of the average daily net assets of the Fund. The Adviser has agreed to contractually waive all or a portion of its fees (and to reimburse the Funds' expenses if necessary) in order to limit operating expenses to not more than 1.15% of the average daily net assets of the White Oak Select Growth, Rock Oak Core Growth, Pin Oak Aggressive Stock, Red Oak Technology Select, Black Oak Emerging Technology and Live Oak Health Sciences Funds, and 1.35% of the average daily net assets of the River Oak Discovery Fund, for a period of one year. Wachovia Bank, N.A. acts as custodian (the "Custodian") for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased or sold by the Funds. 1-888-462-5386 46 6. INVESTMENT TRANSACTIONS: -------------------------------------------------------------------------------- The cost of security purchases and the proceeds from security sales, other than short-term investments, for the period ended October 31, 2005, were as follows (000): PURCHASES SALES -------- --------- White Oak Select Growth Fund .... $426,881 $1,063,696 Rock Oak Core Growth Fund ....... 13,829 4,078 Pin Oak Aggressive Stock Fund ... 46,602 116,030 River Oak Discovery Fund ........ 3,124 417 Red Oak Technology Select Fund .. 80,679 174,504 Black Oak Emerging Technology Fund .......................... 19,068 41,312 Live Oak Health Sciences Fund ... 7,728 4,457 7. FEDERAL INCOME TAXES: -------------------------------------------------------------------------------- Each of the Funds is classified as a separate taxable entity for Federal income tax purposes. Each of the Funds intends to continue to qualify as a separate "regulated investment company" under Subchapter M of the Internal Revenue Code and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required. To the extent that dividends from net investment income and distributions from net realized capital gains exceed amounts reported in the financial statements, such amounts are reported separately. The amounts of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. These differences are primarily due to wash sales as well as net operating losses. The character of dividends from net investment income or distributions from net realized gains made during the year, and the timing of dividends and distributions where the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. Accordingly, the following permanant differences have been reclassified to/from the following accounts (000): ACCUMULATED NET INVESTMENT PAID-IN LOSS CAPITAL ---------- ------- Rock Oak Core Growth Fund ........... $ 51 $ (51) Pin Oak Aggressive Stock Fund ............ 1,300 (1,300) River Oak Discovery Fund 7(7) Red Oak Technology Select Fund ........... 1,001 (1,001) Black Oak Emerging Technology Fund .................. 719 (719) Live Oak Health Sciences Fund ......... 195 (195) There were no dividends or distributions declared during the fiscal periods ended October 31, 2005 and October 31, 2004. www.oakfunds.com 47 Notes to Financial Statements (concluded) OCTOBER 31, 2005 As of October 31, 2005, the components of distributable earnings (accumulated losses) on a tax basis were as follows (000):
TOTAL DISTRIBUTABLE UNDISTRIBUTED CAPITAL NET EARNINGS ORDINARY LOSS UNREALIZED (ACCUMULATED INCOME CARRYFORWARD APPRECIATION LOSSES) ---------- ------------ ------------ --------- White Oak Select Growth Fund ............ $498 $(2,734,844) $150,491 $(2,583,855) Rock Oak Core Growth Fund ............... -- (196) 455 259 Pin Oak Aggressive Stock Fund ........... -- (861,855) 38,847 (823,008) River Oak Discovery Fund ................ -- (16) 24 8 Red Oak Technology Select Fund .......... -- (1,700,993) 38,237 (1,662,756) Black Oak Emerging Technology Fund ...... -- (293,375) 11,062 (282,313) Live Oak Health Sciences Fund ........... -- (2,653) 6,837 4,184
For Federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. At October 31, 2005, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates (000):
EXPIRING OCTOBER 31, --------------------------------------------------------------------------------------------------------- 2008 2009 2010 2011 2012 2013 TOTAL ----- ----- ----- ----- ----- ----- ----- White Oak Select Growth Fund ................... $ -- $749,069 $712,973 $206,602 $744,256 $321,944 $2,734,844 Rock Oak Core Growth Fund ................... -- -- -- -- -- 196 196 Pin Oak Aggressive Stock Fund ............. -- 137,532 436,197 180,087 90,283 17,756 861,855 River Oak Discovery Fund -- -- -- -- -- 16 16 Red Oak Technology Select Fund ............ 35,997 610,821 726,266 293,676 34,233 -- 1,700,993 Black Oak Emerging Technology Fund ........ -- 65,445 212,845 15,085 -- -- 293,375 Live Oak Health Sciences Fund .......... -- -- 2,582 -- 71 -- 2,653
During the period ended October 31, 2005, the Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and the Live Oak Health Sciences Fund utilized $21,432,154, $8,146,064 and $251,618 of capital loss carryforwards to offset capital gains, respectively. 1-888-462-5386 48 At October 31, 2005, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Funds were as follows (000):
FEDERAL AGGREGATE AGGREGATE NET TAX GROSS GROSS UNREALIZED COST APPRECIATION DEPRECIATION APPRECIATION ------------ -------------- -------------- -------------- White Oak Select Growth Fund ........ $ 728,244 $ 205,219 $ (54,728) $ 150,491 Rock Oak Core Growth Fund ........... 10,048 895 (440) 455 Pin Oak Aggressive Stock Fund ....... 100,510 47,718 (8,871) 38,847 River Oak Discovery Fund ............ 2,895 205 (181) 24 Red Oak Technology Select Fund ...... 122,954 44,217 (5,980) 38,237 Black Oak Emerging Technology Fund .. 37,899 15,426 (4,364) 11,062 Live Oak Health Sciences Fund ....... 29,347 10,507 (3,670) 6,837
8. CONCENTRATION OF CREDIT RISK -------------------------------------------------------------------------------- The Red Oak Technology Select Fund and the Black Oak Emerging Technology Fund invest a substantial portion of their assets in securities in the technology industry. The Live Oak Health Sciences Fund invests a substantial portion of its assets in securities in the health care, medicine and life sciences industries. Therefore, the Funds may be more affected by economic developments in those industries than a general equity fund would be. www.oakfunds.com 49 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Trustees and Shareholders Oak Associates Funds: We have audited the accompanying statements of net assets of the White Oak Select Growth Fund (formerly the "White Oak Growth Stock Fund"), Rock Oak Core Growth Fund, Pin Oak Aggressive Stock Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund, each a series of the Oak Associates Funds (the "Trust") as of October 31, 2005, and the related statements of operations for the year then ended or period from inception through October 31, 2005 (inception for the Rock Oak Core Growth Fund is December 31, 2004 and inception for the River Oak Discovery Fund is June 30, 2005), the statements of changes in net assets for each of the years or period since inception (see above) in the two years then ended, and the financial highlights for each of the years or period since inception (see above) in the four-year period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the year ended October 31, 2001, were audited by other auditors who have ceased operations. Those auditors expressed an unqualified opinion on those financial highlights in their report dated December 4, 2001. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2005, by correspondence with custodians and brokers. As to securities purchased or sold but not yet received or delivered, we performed other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the White Oak Select Growth Fund (formerly the "White Oak Growth Stock Fund"), Rock Oak Core Growth Fund, Pin Oak Aggressive Stock Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund, as of October 31, 2005, the results of their operations, the changes in their net assets, and the financial highlights for the years or periods described in the first paragraph above, in conformity with U.S. generally accepted accounting principles. /S/ KPMG LLP Philadelphia, Pennsylvania December 22, 2005 1-888-462-5386 50 Trustees of the Trust (unaudited)
NUMBER OF PORTFOLIOS IN FUND OTHER POSITION LENGTH COMPLEX PRINCIPAL DIRECTORSHIPS HELD OF TIME OVERSEEN OCCUPATION(S) HELD WITH SERVED BY BOARD DURING BY BOARD NAME & AGE(1) TRUST (YRS.)(2) MEMBER(3) PAST FIVE YEARS MEMBER(4) ------------------------------------------------------------------------------------------------------------------------------------ J. John Canon Trustee 5 7 President and Chairman of the Trustee of Proconex. (70) Board, Synergistic Partners, Inc., 1975-1999. ------------------------------------------------------------------------------------------------------------------------------------ Stanford N. Phelps Trustee 5 7 Chairman, Clear Springs Land Chairman of: S.N. Phelps (71) Company, LLC since 1999; Realty LLC, S.N. Phelps & Chairman, S.N. Phelps Realty Co., Clear Springs Land LLC since 1994; Chairman, S.N. Company LLC, Investors Phelps & Co. since 1986. Life Insurance Corp, Chairman, InvestorsLife Wyatt Energy, Inc., Insurance Corp. since 1994; Commonwealth Oil Refining Chairman, Wyatt Energy, Inc. Company, Realmark since 1994; Chairman, Holdings. Commonwealth Oil Refining Company since 1984; Chairman Realmark Holdings since 1983. ------------------------------------------------------------------------------------------------------------------------------------ Thomas E. Trustee 4 7 Physician, Cleveland Clinic None Gretter, MD (Health Care) since 1966. (70) ------------------------------------------------------------------------------------------------------------------------------------ James D. Trustee, 5 7 Managing Member, President, CIO None Oelschlager(5) Chairman and Founder of Oak Associates, (63) ltd. since 1985. ------------------------------------------------------------------------------------------------------------------------------------ John G. Stimpson(5) Trustee 5 7 Director of International Equity Board of Directors, (63) Sales and Equity Sales Manager, Morgan Stanley Trust Salomon Brothers (New York) Company from 1988-1993. from 1985-1993. ------------------------------------------------------------------------------------------------------------------------------------
1. Each Trustee may be contacted in writing to the Trustee c/o Oak Associates Funds, 3875 Embassy Parkway, Suite 250, Akron, OH 44333. Each Officer may be contacted in writing to the Officer c/o SEI Investments, One Freedom Valley Drive, Oaks,PA 19456. 2. Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his successor, or until he sooner dies, resigns or is removed in accordance with the Trust's Declaration of Trust. 3. The "Oak Associates Funds Complex" consists of all registered investment companies for which Oak Associates, ltd. serves as investment adviser. As of October 31, 2005, the Oak Associates Funds Complex consisted of 7 Funds. 4. Directorships of companies are required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the Investment Company Act of 1940. 5. Messrs. Oelschlager and Stimpson are considered "interested" persons of the Trust as that term is defined in the Investment Company Act of 1940. Mr. Oelschlager is interested by virtue of his controlling ownership interest in the Adviser. Mr. Stimpson is considered interested because of his family relationship with an employee of the Adviser. www.oakfunds.com 51 Officers of the Trust (unaudited)
NUMBER OF POSITION LENGTH PORTFOLIOS PRINCIPAL HELD OF TIME IN FUND OCCUPATION(S) OTHER WITH SERVED COMPLEX DURING DIRECTORSHIPS NAME & AGE(1) TRUST (YRS.) OVERSEEN PAST FIVE YEARS HELD ------------------------------------------------------------------------------------------------------------------------------------ William E. White(2) President 5 N/A Mutual Fund Product Manager of N/A (40) Oak Associates, ltd. since 1997. ------------------------------------------------------------------------------------------------------------------------------------ Sandra Noll(2) Vice President 5 N/A Director of Client Services at N/A (41) and Oak Associates, ltd. since 1998 Assistant and Compliance Officer of Oak Secretary Associates, ltd., since 1994. ------------------------------------------------------------------------------------------------------------------------------------ Leslie Manna(2) Vice President 5 N/A Mutual Fund Coordinator of Oak N/A (43) and Associates, ltd. since 1995. Assistant Secretary ------------------------------------------------------------------------------------------------------------------------------------ Eric Kleinschmidt Treasurer and 1 N/A Director, SEI Fund Accounting N/A (37) Chief Financial since 2004; Manager, SEI Fund Officer Accounting since 1999. ------------------------------------------------------------------------------------------------------------------------------------ Timothy D. Barto Vice President 5 N/A Employed by SEI Investments N/A (37) and Global Funds Services and SEI Assistant Investments Distribution Co. Secretary since 1999; General Counsel, Vice President and Secretary of the Administrator since 2001 and Assistant Secretary of the Distributor since December 1999. Associate, Dechert (law firm) from 1997-1999; Associate, Richter, Miller & Finn (law firm) from 1994-1997. ------------------------------------------------------------------------------------------------------------------------------------
1. Each Officer may be contacted in writing to the Officer c/o SEI Investments, One Freedom Valley Drive, Oaks,PA 19456. 2. Mr. White and Mmes. Noll and Manna are considered to be "affiliates" of the Adviser by virtue of their employment by the Adviser. 1-888-462-5386 52
NUMBER OF POSITION LENGTH PORTFOLIOS PRINCIPAL HELD OF TIME IN FUND OCCUPATION(S) OTHER WITH SERVED COMPLEX DURING DIRECTORSHIPS NAME & AGE(1) TRUST (YRS.) OVERSEEN PAST FIVE YEARS HELD ------------------------------------------------------------------------------------------------------------------------------------ James Ndiaye Vice President 1 N/A Employed by SEI Investments N/A (37) and since 2004. Vice President, Assistant Deutsche Asset Management Secretary (2003-2004); Associate, Morgan, Lewis & Bockius LLP (2002-2003); Assistant Vice President, ING Variable Annuities Group (1999-2000). ------------------------------------------------------------------------------------------------------------------------------------ Philip T. Masterson Vice President 1 N/A Employed by SEI Investments N/A (41) and since 2004. General Counsel, Assistant CITCO Mutual Fund Services Secretary (2003-2004); Vice President and Associate Counsel, Oppenheimer Funds (1998-2003). ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Pang Vice President 1 N/A Employed by SEI Investments N/A (32) and since January 2005. Counsel, Assistant Caledonian Bank and Trust's Secretary Mutual Funds Group in 2004; Counsel, Permal Asset Management (2001-2004); Associate, Schulte, Roth and Zabel's Investment Management Group (2000-2001). ------------------------------------------------------------------------------------------------------------------------------------ Sofia A. Rosala Vice President 1 N/A Vice President and Assistant N/A (31) and Secretary of SEI Investments Secretary Management Corporation and Vice President and Assistant Secretary of SEI Investments Global Funds Services. Compliance Officer of SEI Investments (2001-2004). Account and Product Consultant, SEI Private Trust Company (1998-2001). ------------------------------------------------------------------------------------------------------------------------------------
For more information regarding the Trustees, please refer to the Statement of Additional Information, which is available upon request by calling 1-888-462-5386. www.oakfunds.com 53 Disclosure of Fund Expenses (unaudited) All mutual funds have operating expenses. As a shareholder of a fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from the fund's gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the fund's average net assets; this percentage is known as the fund's expense ratio. The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table on the next page illustrates your Fund's costs in two ways: o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return. You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = $8.6), then multiply that ratio by the number shown for your Fund under "Expenses Paid During Period". o HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expense Paid During Period" column with those that appear in the same charts in the shareholder reports for other funds. 1-888-462-5386 54 NOTE: Because the return is set at 5% for comparison purposes -- NOT your Fund's actual return -- the account values shown may not apply to your specific investment. --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 05/01/05 10/31/05 RATIOS PERIOD* ------------------------------------------------------------------------------------------------------------------------------------ White Oak Select Growth Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return $1,000.00 $ 1,087.80 1.19% $6.26 Hypothetical Fund Return 1,000.00 1,019.21 1.19 6.06 ------------------------------------------------------------------------------------------------------------------------------------ Rock Oak Core Growth Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,106.20 1.15 6.11 Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85 ------------------------------------------------------------------------------------------------------------------------------------ Pin Oak Aggressive Stock Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,129.30 1.15 6.17 Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85 ------------------------------------------------------------------------------------------------------------------------------------ River Oak Discovery Fund** ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,010.00 1.35 4.53 Hypothetical Fund Return 1,000.00 1,012.20 1.35 4.54 ------------------------------------------------------------------------------------------------------------------------------------ Red Oak Technology Select Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,097.20 1.15 6.08 Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85 ------------------------------------------------------------------------------------------------------------------------------------ Black Oak Emerging Technology Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,051.30 1.15 5.95 Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85 ------------------------------------------------------------------------------------------------------------------------------------ Live Oak Health Sciences Fund ------------------------------------------------------------------------------------------------------------------------------------ Actual Fund Return 1,000.00 1,117.90 1.15 6.14 Hypothetical Fund Return 1,000.00 1,019.41 1.15 5.85 ------------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). ** Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 122/365 (to reflect the period since the Fund's inception). www.oakfunds.com 55 [THIS PAGE INTENTIONALLY LEFT BLANK] 1-888-462-5386 56 CONTACT US BY MAIL Oak Associates Funds P.O. Box 219441 Kansas City, MO 64121-9441 BY TELEPHONE 1-888-462-5386 ON THE WEB www.oakfunds.com Click on the MY OAK ACCOUNT section to take advantage of these features: o Trade Online o Access and Update Account Information o Go Paperless with E-Delivery The Trust files its complete schedule of portfolio holdings of each Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Trust's Forms N-Q is available on the Commission's website at HTTP://WWW.SEC.GOV, and may be reviewed and copied at the Commission's Public Reference Room in Washington DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-866-462-5386; and (ii) on the Commission's website at HTTP://WWW.SEC.GOV. [LOGO OMITTED] OAK ASSOCIATES FUNDS 1-888-462-5386 P.O. Box 219441 Kansas City, MO 64121-9441 www.oakfunds.com OAK-F-022-13000 ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, the principal financial officer, controller or principal accounting officer, and any other person who performs a similar function. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The registrant's board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee. (a)(2) The audit committee financial expert is Stanford Phelps. He is independent as defined in Form N-CSR Item 3(a)(2). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Fees billed by KPMG LLP Related to the Trust KPMG LLP billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years as follows:
------------------ ----------------------------------------------------- ----------------------------------------------------- 2005 2004 ------------------ ----------------------------------------------------- ----------------------------------------------------- All fees and All fees and All other fees All fees and All fees and All other fees services to the services to and services to services to the services to and services Trust that were service service Trust that were service to service pre-approved affiliates affiliates that pre-approved affiliates affiliates that that were did not require that were did not require pre-approved pre-approval pre-approved pre-approval ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (a) Audit $ 101,500 N/A N/A $ 72,500 N/A N/A Fees(1) ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (b) Audit-Related N/A N/A N/A N/A N/A N/A Fees ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (c) Tax Fees N/A N/A N/A N/A N/A N/A ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (d) All N/A N/A N/A N/A N/A N/A Other Fees ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
Notes: (1) Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. (e)(1) Not applicable (e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows: ---------------------------- ----------------- ---------------- 2005 2004 ---------------------------- ----------------- ---------------- Audit-Related Fees 0% 0% ---------------------------- ----------------- ---------------- Tax Fees 0% 0% ---------------------------- ----------------- ---------------- All Other Fees 0% 0% ---------------------------- ----------------- ---------------- (f) Not applicable (g) The aggregate non-audit fees and services billed by KPMG LLP for the last two fiscal years were $0 and $0 for 2005 and 2004, respectively. (h) Not applicable ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to open-end management investment companies. ITEM 6. SCHEDULE OF INVESTMENTS Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to open-end management investment companies. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005 ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to open-end management investment companies. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Trust's Nominating Committee will review shareholder recommendations for nominations to fill vacancies on the Trust's Board of Trustees if such recommendations are submitted in writing and addressed to the Nominating Committee at the Trust's office. ITEM 11. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 12. EXHIBITS. (a)(1) Code of Ethics attached hereto. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Oak Associates Funds By (Signature and Title)* /S/ WILLIAM E. WHITE -------------------- William E. White, President Date: December 29, 2005 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/ WILLIAM E. WHITE -------------------- William E. White, President Date: December 29, 2005 By (Signature and Title)* /S/ ERIC KLEINSCHMIDT --------------------- Eric Kleinschmidt, Treasurer & CFO Date: December 29, 2005 * Print the name and title of each signing officer under his or her signature.