-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OL8pdLITUl+a4kZZ2xE1gypnReZRjJspVEMx5SkH4W84toGVOLbnE6fxg1jKOIui KMBcPaprT06OlGxNmY0wdg== 0001122649-03-000005.txt : 20030603 0001122649-03-000005.hdr.sgml : 20030603 20030603165213 ACCESSION NUMBER: 0001122649-03-000005 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030603 EFFECTIVENESS DATE: 20030603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HILLMAN CAPITAL MANAGEMENT INVESTMENT TRUST CENTRAL INDEX KEY: 0001122649 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10085 FILM NUMBER: 03730810 BUSINESS ADDRESS: STREET 1: 116 SOUTH FRANKLIN STREET STREET 2: PO BOX 69 CITY: ROCKY MOUNT STATE: NC ZIP: 27802-0069 BUSINESS PHONE: 2529729922 MAIL ADDRESS: STREET 1: 116 SOUTH FRANKLIN STREET STREET 2: PO BOX 69 CITY: ROCKY MOUNT STATE: NC ZIP: 27802-0069 N-CSR 1 ncsr0303.txt HILLMAN CAPITAL MANAGEMENT INVESTMENT TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-10085 --------- Hillman Capital Management Investment Trust -------------------------------------------- (Exact name of registrant as specified in charter) 116 South Franklin Street, P.O. Box 69, Rocky Mount, North Carolina 27802 ------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) C. Frank Watson III 116 South Franklin Street, P.O. Box 69, Rocky Mount, North Carolina 27802 ------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 252-972-9922 ------------ Date of fiscal year end: September 30, 2003 ------------------ Date of reporting period: March 31, 2003 -------------- Item 1. Reports to Stockholders. ________________________________________________________________________________ THE HILLMAN AGGRESSIVE EQUITY FUND ________________________________________________________________________________ a series of the Hillman Capital Management Investment Trust Semi-Annual Report (Unaudited) FOR THE PERIOD ENDED MARCH 31, 2003 INVESTMENT ADVISOR Hillman Capital Management, Inc. 613 Third Street Eastport Maritime Building Annapolis, Maryland 21403 THE HILLMAN AGGRESSIVE EQUITY FUND 116 South Franklin Street Post Office Drawer 4365 Rocky Mount, North Carolina 27803-0365 1-800-773-3863 This report and the financial statements contained herein are submitted for the general information of the shareholders of The Hillman Aggressive Equity Fund (the "Fund"). This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus. Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested. Neither the Fund nor the Fund's distributor is a bank. For more information about the Fund, including charges and expenses, call the Fund for a free prospectus. You should read the prospectus carefully before you invest or send money. Distributor: Capital Investment Group, Inc., Post Office Drawer 4365, Rocky Mount, North Carolina 27803, Phone 1-800-773-3863. THE HILLMAN AGGRESSIVE EQUITY FUND PORTFOLIO OF INVESTMENTS March 31, 2003 (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Value Shares (note 1) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 92.29% Aerospace & Defense - 5.95% The B.F. Goodrich Company ................................................. 7,400 $ 104,044 The Boeing Company ........................................................ 4,000 100,240 ---------- 204,284 ---------- Auto & Trucks - 7.70% Ford Motor Company ........................................................ 18,200 136,864 General Motors Corporation ................................................ 3,800 127,756 ---------- 264,620 ---------- Commercial Services - 4.43% (a)Cendant Corporation ....................................................... 12,000 152,400 ---------- Computer Hardware - 4.17% (a)Sun Microsystems, Inc. .................................................... 44,000 143,440 ---------- Electrical Equipment - 5.05% American Electric Power Company, Inc. ..................................... 7,600 173,660 ---------- Entertainment - 4.39% (a)AOL Time Warner Inc. ...................................................... 13,900 150,954 ---------- Financial - Banks, Commercial - 5.56% FleetBoston Financial Corporation ......................................... 8,000 191,040 ---------- Financial Services - 14.64% Citigroup Inc. ............................................................ 5,000 172,250 J.P. Morgan Chase & Company ............................................... 7,000 165,970 Morgan Stanley ............................................................ 4,300 164,905 ---------- 503,125 ---------- Insurance - Life & Health - 5.74% Aetna Inc. ................................................................ 4,000 197,200 ---------- Lodging - Hotels - 3.38% (a)Host Marriott Corporation ................................................. 16,800 116,256 ---------- Real Estate Investment Trust - 4.14% Apartment Investment & Management Company ................................. 3,900 142,272 ---------- Retail - Department Stores - 3.30% The May Department Stores Company ......................................... 5,700 113,373 ---------- Retail - General Merchandise - 5.20% Sears, Roebuck and Company ................................................ 7,400 178,710 ---------- (Continued)
THE HILLMAN AGGRESSIVE EQUITY FUND PORTFOLIO OF INVESTMENTS March 31, 2003 (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Value Shares (note 1) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - (Continued) Retail - Jewelry - 7.37% (a)Finlay Enterprises, Inc. ................................................ 20,000 $ 253,200 ---------- Telecommunications - 11.27% (a)Corning Incorporated .................................................... 31,200 182,208 Verizon Communications Inc. ............................................. 5,800 205,030 ---------- 387,238 ---------- Total Common Stocks (Cost $3,999,409) ........................................................... 3,171,772 ---------- INVESTMENT COMPANY - 4.62% Evergreen Select Money Market Fund Class I #495 .............................. 158,761 158,761 (Cost $158,761) ---------- Total Value of Investments (Cost $4,158,170 (b)) ................................... 96.91 % $3,330,533 Other Assets Less Liabilities ...................................................... 3.09 % 106,360 -------- ---------- Net Assets ................................................................... 100.00 % $3,436,893 ======== ========== (a) Non-income producing investment. (b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation/ (depreciation) of investments for financial reporting and federal income tax purposes is as follows: Unrealized appreciation......................................................................... $ 287,635 Unrealized depreciation......................................................................... (1,115,272) ------------ Net unrealized depreciation........................................................... $ (827,637) ============ See accompanying notes to financial statements
THE HILLMAN AGGRESSIVE EQUITY FUND STATEMENT OF ASSETS AND LIABILITIES March 31, 2003 (Unaudited) ASSETS Investments, at value (cost $4,158,170) ......................................................... $ 3,330,533 Cash ............................................................................................ 111,967 Income receivable ............................................................................... 6,141 Other asset ..................................................................................... 1,849 ----------- Total assets ............................................................................... 3,450,490 ----------- LIABILITIES Accrued expenses ................................................................................ 13,597 ----------- NET ASSETS (applicable to 487,129 shares outstanding; unlimited shares of no par value beneficial interest authorized) ......................................... $ 3,436,893 =========== NET ASSET VALUE, REDEMPTION AND OFFERING PRICE PER SHARE ($3,436,893 / 487,129 shares) ................................................................... $ 7.06 =========== NET ASSETS CONSIST OF Paid-in capital ................................................................................. $ 4,379,852 Undistributed net investment income ............................................................. 10,725 Accumulated net realized loss on investments .................................................... (126,047) Net unrealized depreciation on investments ...................................................... (827,637) ----------- $ 3,436,893 =========== See accompanying notes to financial statements
THE HILLMAN AGGRESSIVE EQUITY FUND STATEMENT OF OPERATIONS Period ended March 31, 2003 (Unaudited) NET INVESTMENT INCOME Income Dividends ..................................................................................... $ 47,894 --------- Expenses Investment advisory fees (note 2) ............................................................. 16,750 Fund administration fees (note 2) ............................................................. 2,094 Distribution and service fees (note 3) ........................................................ 4,187 Custody fees .................................................................................. 3,993 Fund accounting fees (note 2) ................................................................. 13,668 Audit fees .................................................................................... 6,981 Legal fees .................................................................................... 5,738 Securities pricing fees ....................................................................... 870 Other accounting fees (note 2) ................................................................ 9,906 Shareholder servicing expenses ................................................................ 979 Registration and filing expenses .............................................................. 1,720 Printing expenses ............................................................................. 1,624 Trustee fees and meeting expenses ............................................................. 1,936 Other operating expenses ...................................................................... 968 --------- Total expenses ............................................................................ 71,414 --------- Less: Investment advisory fees waived (note 2) ............................................. (8,577) Fund administration fees waived (note 2) ............................................. (2,094) Fund accounting fees waived (note 2) ................................................. (13,668) Other accounting fees waived (note 2) ................................................ (9,906) --------- Net expenses .............................................................................. 37,169 --------- Net investment income ................................................................ 10,725 --------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized loss from investment transactions ..................................................... (36,008) Decrease in unrealized depreciation on investments ................................................. 247,274 --------- Net realized and unrealized gain on investments ............................................... 211,266 --------- Net increase in net assets resulting from operations ...................................... $ 221,991 ========= See accompanying notes to financial statements
THE HILLMAN AGGRESSIVE EQUITY FUND STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------------ Period ended Year ended March 31, September 30, 2003 (a) 2002 - ------------------------------------------------------------------------------------------------------------------------------------ INCREASE IN NET ASSETS Operations Net investment income (loss) ................................................. $ 10,725 $ (16,847) Net realized (loss) gain from investment transactions ........................ (36,008) 80,363 Decrease (increase) in unrealized depreciation on investments ................ 247,274 (617,720) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......... 221,991 (554,204) ---------- ---------- Capital share transactions Increase in net assets resulting from capital share transactions (b).......... 237,561 667,637 ---------- ---------- Total increase in net assets ..................................... 459,552 113,433 NET ASSETS Beginning of period .............................................................. 2,977,341 2,863,908 ---------- ---------- End of period (including undistributed net investment income of $10,725 in 2003) $3,436,893 $2,977,341 ========== ========== (a) Unaudited. (b) A summary of capital share activity follows: --------------------------------------------------------------------- Period ended Year ended March 31, 2003 (a) September 30, 2002 Shares Value Shares Value --------------------------------------------------------------------- Shares sold ....................................... 51,587 $ 374,109 93,205 $ 841,466 Shares redeemed ................................... (19,334) (136,548) (19,904) (173,829) -------- --------- ------- ---------- Net increase.................................. 32,253 $ 237,561 73,301 $ 667,637 ======== ========= ======= ========== See accompanying notes to financial statements
THE HILLMAN AGGRESSIVE EQUITY FUND FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - ------------------------------------------------------------------------------------------------------------------------------------ Period ended Year ended Period ended March 31, September 30, September 30, 2003 (a) 2002 2001 (b) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period ............................ $ 6.55 $ 7.51 $ 10.00 Income (loss) from investment operations Net investment income (loss) ......................... 0.02 (0.04) (0.12) Net realized and unrealized gain (loss) on investments 0.49 (0.92) (2.37) ----------- ----------- ----------- Total from investment operations ................. 0.51 (0.96) (2.49) ----------- ----------- ----------- Net asset value, end of period .................................. $ 7.06 $ 6.55 $ 7.51 =========== =========== =========== Total return .................................................... 7.79 % (12.67)% (25.00)% =========== =========== =========== Ratios/supplemental data Net assets, end of period ................................. $ 3,436,893 $ 2,977,341 $ 2,863,908 =========== =========== =========== Ratio of expenses to average net assets Before expense reimbursements and waived fees ........ 4.27 %(c) 4.06 % 6.32 %(c) After expense reimbursements and waived fees ......... 2.22 %(c) 2.12 % 3.90 %(c) Ratio of net investment (loss) income to average net assets Before expense reimbursements and waived fees ........ (1.40)%(c) (2.41)% (4.96)%(c) After expense reimbursements and waived fees ......... 0.64 %(c) (0.46)% (2.53)%(c) Portfolio turnover rate ................................... 6.28 % 67.29 % 52.56 % (a) Unaudited. (b) For the period from December 29, 2000 (date of initial public investment) to September 30, 2001. (c) Annualized. See accompanying notes to financial statements
THE HILLMAN AGGRESSIVE EQUITY FUND NOTES TO FINANCIAL STATEMENTS March 31, 2003 (Unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION The Hillman Aggressive Equity Fund (the "Fund") is a non-diversified series of shares of beneficial interest of the Hillman Capital Management Investment Trust (the "Trust"), an open-ended management investment company. The Trust was organized on July 14, 2000 as a Delaware Business Trust and is registered under the Investment Company Act of 1940, as amended (the "Act"). The Fund received its initial public investment on December 29, 2000 and began operations on January 2, 2001. The investment objective of the Fund is to seek capital appreciation principally through investments in equity securities, such as common and preferred stocks and securities convertible into common stocks. The following is a summary of significant accounting policies followed by the Fund. A. Security Valuation - The Fund's investments in securities are carried at value. Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern time on the day of valuation. Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities for which market quotations are not readily available, if any, are valued by using an independent pricing service or by following procedures approved by the Board of Trustees (the "Trustees"). Short-term investments are valued at cost, which approximates value. B. Federal Income Taxes - No provision has been made for federal income taxes since substantially all taxable income has been distributed to shareholders. It is the policy of the Fund to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to make sufficient distributions of taxable income to relieve it from all federal income taxes. The Fund has a capital loss carryforward for federal income tax purposes of $62,365, which expires in the year 2009. It is the intention of the Trustees not to distribute any realized gains until the carryforwards have been offset or expire. C. Investment Transactions - Investment transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification cost method. Interest income is recorded daily on an accrual basis. Dividend income is recorded on the ex-dividend date. D. Distributions to Shareholders - The Fund may declare dividends quarterly, payable in March, June, September and December, on a date selected by the Trustees. In addition, distributions may be made annually in December out of net realized gains through October 31 of that year. Distributions to shareholders are recorded on the ex-dividend date. The Fund may make a supplemental distribution subsequent to the end of its fiscal year. E. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimates. (Continued) THE HILLMAN AGGRESSIVE EQUITY FUND NOTES TO FINANCIAL STATEMENTS March 31, 2003 (Unaudited) NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS Pursuant to an investment advisory agreement, Hillman Capital Management, Inc. (the "Advisor") provides the Fund with a continuous program of supervision of the Fund's assets, including the composition of its portfolio, and furnishes advice and recommendations with respect to investments, investment policies and the purchase and sale of securities. As compensation for its services, the Advisor receives a fee at the annual rate of 1.00% of the Fund's average daily net assets. The Advisor has voluntarily waived a portion of its fee in the amount of $8,577 ($0.02 per share) for the period ended March 31, 2003. There can be no assurance that the foregoing voluntary fee waiver will continue. The Fund's administrator, The Nottingham Company (the "Administrator"), provides administrative services to and is generally responsible for the overall management and day-to-day operations of the Fund pursuant to a fund accounting and compliance agreement with the Trust. As compensation for its services, the Administrator receives a fee at the annual rate of 0.125% of the Fund's first $50 million of average daily net assets, 0.10% of the next $50 million of average daily net assets, and 0.075% of average daily net assets over $100 million. The contract with the Administrator provides that the aggregate fees for the aforementioned administration services shall not be less than $2,000 per month. The Administrator also receives a monthly fee of $2,250 for accounting and record-keeping services, plus 0.01% of the average annual net assets. The Administrator also charges the Fund for certain expenses involved with the daily valuation of portfolio securities. The Administrator has voluntarily waived all of these fees amounting to $25,668 ($0.05 per share) for the period ended March 31, 2003. There can be no assurance that the foregoing voluntary fee waivers will continue. NC Shareholder Services, LLC (the "Transfer Agent") serves as the Fund's transfer, dividend paying, and shareholder servicing agent. The Transfer Agent maintains the records of each shareholder's account, answers shareholder inquiries concerning accounts, processes purchases and redemptions of the Fund shares, acts as dividend and distribution disbursing agent, and performs other shareholder servicing functions. Certain Trustees and officers of the Trust are also officers of the Advisor, the distributor or the Administrator. NOTE 3 - DISTRIBUTION AND SERVICE FEES The Trustees, including a majority of the Trustees who are not "interested persons" of the Trust as defined in the Act, adopted a distribution plan with respect to all shares pursuant to Rule 12b-1 of the Act (the "Plan"). Rule 12b-1 regulates the manner in which a regulated investment company may assume costs of distributing and promoting the sales of its shares and servicing of its shareholder accounts. The Plan provides that the Fund may incur certain costs, which may not exceed 0.25%, for each year elapsed subsequent to adoption of the Plan, for payment to the distributor and others for items such as advertising expenses, selling expenses, commissions, travel or other expenses reasonably intended to result in sales of shares of the Fund or support servicing of shareholder accounts. The Fund incurred $4,187 in distribution and service fees under the Plan for the period ended March 31, 2003. (Continued) THE HILLMAN AGGRESSIVE EQUITY FUND NOTES TO FINANCIAL STATEMENTS March 31, 2003 (Unaudited) NOTE 4 - PURCHASES AND SALES OF INVESTMENTS Purchases and sales of investments, other than short-term investments, aggregated $200,742 and $201,812, respectively, for the period ended March 31, 2003. ________________________________________________________________________________ THE HILLMAN AGGRESSIVE EQUITY FUND ________________________________________________________________________________ a series of the Hillman Capital Management Investment Trust This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus. ________________________________________________________________________________ THE HILLMAN TOTAL RETURN FUND ________________________________________________________________________________ a series of the Hillman Capital Management Investment Trust Semi-Annual Report (Unaudited) FOR THE PERIOD ENDED MARCH 31, 2003 INVESTMENT ADVISOR Hillman Capital Management, Inc. 613 Third Street Eastport Maritime Building Annapolis, Maryland 21403 THE HILLMAN TOTAL RETURN FUND 116 South Franklin Street Post Office Drawer 4365 Rocky Mount, North Carolina 27803-0365 1-800-773-3863 This report and the financial statements contained herein are submitted for the general information of the shareholders of The Hillman Total Return Fund (the "Fund"). This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus. Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested. Neither the Fund nor the Fund's distributor is a bank. For more information about the Fund, including charges and expenses, call the Fund for a free prospectus. You should read the prospectus carefully before you invest or send money. Distributor: Capital Investment Group, Inc., Post Office Drawer 4365, Rocky Mount, North Carolina 27803, Phone 1-800-773-3863. THE HILLMAN TOTAL RETURN FUND PORTFOLIO OF INVESTMENTS March 31, 2003 (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Value Shares (note 1) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 62.62% Aerospace & Defense - 1.98% The B.F. Goodrich Company .................................................. 5,000 $ 70,300 The Boeing Company ......................................................... 3,100 77,686 ----------- 147,986 ----------- Auto & Trucks - 1.87% Ford Motor Company ......................................................... 9,700 72,944 General Motors Corporation ................................................. 2,000 67,240 ----------- 140,184 Chemicals - 1.82% E.I. Du Pont de Nemours & Company .......................................... 3,500 136,010 ----------- Commercial Services - 1.32% (a)Cendant Corporation ........................................................ 7,800 99,060 ----------- Computer Hardware - 0.70% (a)Sun Microsystems, Inc. ..................................................... 16,200 52,812 ----------- Computers - 1.25% (a)EMC Corporation ............................................................ 13,000 93,990 ----------- Electric Companies - 2.09% The Southern Company ....................................................... 5,500 156,420 ----------- Electrical Equipment ............................................................ - 3.65 (a)American Power Conversion Corporation ...................................... 9,700 138,128 General Electric Company ................................................... 5,300 135,150 ----------- 273,278 ----------- Entertainment - 1.16% (a)AOL Time Warner Inc. ....................................................... 8,000 86,880 ----------- Financial - Banks, Commercial - 1.27% FleetBoston Financial Corporation .......................................... 4,000 95,520 ----------- Financial Services - 4.65% Allied Capital Corporation ................................................. 11,865 237,063 Morgan Stanley Dean Witter & Co. ........................................... 2,900 111,215 ----------- 348,278 ----------- Hardware & Tools - 1.40% The Black & Decker Corporation ............................................. 3,000 104,580 ----------- Household Products - Non-Durables - 1.90% The Procter & Gamble Company ............................................... 1,600 142,480 ----------- (Continued)
THE HILLMAN TOTAL RETURN FUND PORTFOLIO OF INVESTMENTS March 31, 2003 (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Value Shares (note 1) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - (Continued) Insurance - Life & Health - 2.63% Aetna Inc. ................................................................. 4,000 $ 197,200 ----------- Lodging - Hotels - 1.19% (a)Host Marriott Corporation .................................................. 12,900 89,268 ----------- Manufacturing - Diversified - 2.08% 3M Co. ..................................................................... 1,200 156,036 ----------- Photography / Imaging - 1.94% Eastman Kodak Company ...................................................... 4,900 145,040 ----------- Real Estate Investment Trust - 7.26% Apartment Investment & Management Company .................................. 2,800 102,144 Correctional Properties Trust .............................................. 9,400 194,016 Equity Office Properties Trust ............................................. 5,000 127,250 Equity Residential ......................................................... 5,000 120,350 ----------- 543,760 ----------- Restaurants & Food Service - 4.95% (a)Outback Steakhouse, Inc. ................................................... 4,300 152,134 (a)Starbucks Corporation ...................................................... 5,300 136,528 Wendy's International, Inc. ................................................ 3,000 82,530 ----------- 371,192 ----------- Retail - General Merchandise - 0.97% Sears, Roebuck & Company ................................................... 3,000 72,450 ----------- Retail - Grocery - 2.45% (a)Whole Foods Market, Inc. ................................................... 3,300 183,612 ----------- Retail - Jewelry - 3.78% (a)Finlay Enterprises, Inc. ................................................... 22,400 283,584 ----------- Retail - Specialty Line - 1.79% (a)Staples, Inc. .............................................................. 7,300 133,809 ----------- Retirement / Aged Care - 2.24% (a)Sunrise Assisted Living, Inc. .............................................. 7,000 168,000 ----------- Telecommunications - 4.91% (a)Corning Incorporated ....................................................... 18,800 109,792 SBC Communications Inc. .................................................... 5,300 106,318 Verizon Communications Inc. ................................................ 4,300 152,005 ----------- 368,115 ----------- (Continued)
THE HILLMAN TOTAL RETURN FUND PORTFOLIO OF INVESTMENTS March 31, 2003 (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------------ Value Shares (note 1) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - (Continued) Utilities - Electric - 1.37% American Electric Power Company ............................................ 4,500 $ 102,825 ----------- Total Common Stocks (Cost $5,569,301) ................................................................. 4,692,369 ----------- Interest Maturity Principal Rate Date --------- ---- ---- U.S. GOVERNMENT OBLIGATIONS - 0.76% United States Treasury Note ................... $ 50,000 6.875% 05/15/06 57,244 (Cost $52,657) ----------- FEDERAL AGENCY OBLIGATIONS - 1.63% Federal National Mortgage Association ......... 122,548 6.000% 12/25/31 122,423 (Cost $121,497) ----------- CORPORATE OBLIGATIONS - 14.84% DaimlerChrysler NA Holdings ................... 140,000 8.500% 01/18/31 165,153 Ford Motor Credit Co. ......................... 420,000 6.875% 02/01/06 412,727 General Motors Acceptance ..................... 200,000 7.500% 07/15/05 212,201 Motorola Inc. ................................. 200,000 6.750% 02/01/06 211,000 Weatherford International Inc. ................ 2,200 5.000% 11/01/27 110,825 ----------- Total Corporate Obligations (Cost $1,083,650)..................................................... 1,111,906 ----------- INVESTMENT COMPANIES - 6.12% Shares ------ BlackRock Broad Investment Grade 2009 Term Trust ........................... 20,000 326,800 Putnam Master Income Trust ................................................. 20,600 131,428 ----------- Total Investment Companies (Cost $432,267) ............................ 458,228 ----------- Total Value of Investments (Cost $7,259,372 (b)) ................................. 85.97 % $ 6,442,170 Other Assets Less Liabilities .................................................... 14.03 % 1,051,219 -------- ----------- Net Assets ................................................................. 100.00 % $ 7,493,389 ======== =========== (a) Non-income producing investment. (b) Aggregate cost for financial reporting and federal income tax purposes is the same. Unrealized appreciation/ (depreciation) of investments for financial reporting and federal income tax purposes is as follows: Unrealized appreciation................................................ $ 653,289 Unrealized depreciation................................................ (1,470,491) ----------- Net unrealized depreciation............................................................ $ (817,202) =========== See accompanying notes to financial statements
THE HILLMAN TOTAL RETURN FUND STATEMENT OF ASSETS AND LIABILITIES March 31, 2003 (Unaudited) ASSETS Investments, at value (cost $7,259,372) ......................................................... $ 6,442,170 Cash ............................................................................................ 1,037,885 Income receivable ............................................................................... 24,855 Other assets .................................................................................... 2,107 ----------- Total assets ............................................................................... 7,507,017 ----------- LIABILITIES Accrued expenses ................................................................................ 13,628 ----------- NET ASSETS (applicable to 854,362 shares outstanding; unlimited shares of no par value beneficial interest authorized) ......................................... $ 7,493,389 =========== NET ASSET VALUE, REDEMPTION AND OFFERING PRICE PER SHARE ($7,493,389 / 854,362 shares) ................................................................... $ 8.77 =========== NET ASSETS CONSIST OF Paid-in capital ................................................................................. $ 8,269,191 Undistributed net investment income ............................................................. 3,197 Undistributed net realized gain on investments .................................................. 38,203 Net unrealized depreciation on investments ...................................................... (817,202) ----------- $ 7,493,389 =========== See accompanying notes to financial statements
THE HILLMAN TOTAL RETURN FUND STATEMENT OF OPERATIONS Period ended March 31, 2003 (Unaudited) NET INVESTMENT INCOME Income Interest ...................................................................................... $ 46,073 Dividends ..................................................................................... 91,718 ----------- Total income .............................................................................. 137,791 ----------- Expenses Investment advisory fees (note 2) ............................................................. 36,079 Fund administration fees (note 2) ............................................................. 4,510 Distribution and service fees (note 3) ........................................................ 9,020 Custody fees .................................................................................. 1,809 Fund accounting fees (note 2) ................................................................. 13,861 Audit fees .................................................................................... 7,092 Legal fees .................................................................................... 4,404 Securities pricing fees ....................................................................... 2,181 Other accounting fees (note 2) ................................................................ 7,490 Shareholder servicing expenses ................................................................ 976 Registration and filing expenses .............................................................. 2,219 Printing expenses ............................................................................. 1,414 Trustee fees and meeting expenses ............................................................. 1,937 Other operating expenses ...................................................................... 1,307 ----------- Total expenses ............................................................................ 94,299 ----------- Less: Investment advisory fees waived (note 2) ............................................. (10,478) Fund administration fees waived (note 2) ............................................. (4,510) Fund accounting fees waived (note 2) ................................................. (13,861) Other accounting fees waived (note 2) ................................................ (7,490) ----------- Net expenses .............................................................................. 57,960 ----------- Net investment income ................................................................ 79,831 ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain from investment transactions ..................................................... 38,727 Decrease in unrealized depreciation on investments ................................................. 195,721 ----------- Net realized and unrealized gain on investments ............................................... 234,448 ----------- Net increase in net assets resulting from operations ...................................... $ 314,279 =========== See accompanying notes to financial statements
THE HILLMAN TOTAL RETURN FUND STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------------ Period ended Year ended March 31, September 30, 2003 (a) 2002 - ------------------------------------------------------------------------------------------------------------------------------------ INCREASE IN NET ASSETS Operations Net investment income ................................................................ $ 79,831 $ 74,773 Net realized gain from investment transactions ....................................... 38,727 65,196 Decrease (increase) in unrealized depreciation on investments ........................ 195,721 (368,388) ----------- ----------- Net increase (decrease) in net assets resulting from operations ................. 314,279 (228,419) ----------- ----------- Distributions to shareholders from Net investment income ................................................................ (80,781) (78,487) Net realized gain from investment transactions ....................................... (65,194) (1,499) ----------- ----------- Decrease in net assets resulting from distributions ............................. (145,975) (79,986) ----------- ----------- Capital share transactions Increase in net assets resulting from capital share transactions (b) ................. 1,037,515 670,179 ----------- ----------- Total increase in net assets........................................ 1,205,819 361,774 NET ASSETS Beginning of period................................................................. 6,287,570 5,925,796 ----------- ----------- End of period (including undistributed net investment income $ 7,493,389 $ 6,287,570 of $3,197 in 2003 and $4,147 in 2002) =========== =========== (a) Unaudited. (b) A summary of capital share activity follows: --------------------------------------------------------------------- Period ended Year ended March 31, 2003 (a) September 30, 2002 Shares Value Shares Value --------------------------------------------------------------------- Shares sold........................................ 145,884 $ 1,299,350 153,200 $ 1,557,781 Shares issued for reinvestment of distributions.... 11,147 98,792 1,549 14,149 -------- ----------- ------- ----------- 157,031 1,398,142 154,749 1,571,930 Shares redeemed.................................... (41,407) (360,627) (92,005) (901,751) -------- ----------- -------- ----------- Net increase.................................. 115,624 $ 1,037,515 62,744 $ 670,179 ========= =========== ======== =========== See accompanying notes to financial statements
THE HILLMAN TOTAL RETURN FUND FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period) - ------------------------------------------------------------------------------------------------------------------------------------ Period ended Year ended Period ended March 31, September 30, September 30, 2003 (a) 2002 2001 (b) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period ............................ $ 8.51 $ 8.77 $ 10.00 Income (loss) from investment operations Net investment income ................................ 0.09 0.10 0.01 Net realized and unrealized gain (loss) on investments 0.35 (0.25) (1.24) ---------- ---------- ----------- Total from investment operations ................. 0.44 (0.15) (1.23) ---------- ---------- ----------- Distributions to shareholders from Net investment income ................................ (0.10) (0.11) 0.00 Net realized gain from investment transactions ....... (0.08) 0.00 0.00 ---------- ---------- ----------- Total distributions .............................. (0.18) (0.11) 0.00 ---------- ---------- ----------- Net asset value, end of period .................................. $ 8.77 $ 8.51 $ 8.77 ========== ========== =========== Total return .................................................... 5.10 % (1.56)% (12.50)% ========== ========== =========== Ratios/supplemental data Net assets, end of period ................................. $7,493,389 $6,287,570 $ 5,925,796 ========== ========== =========== Ratio of expenses to average net assets Before expense reimbursements and waived fees ........ 2.61 %(c) 2.83 % 4.22 %(c) After expense reimbursements and waived fees ......... 1.61 %(c) 1.80 % 2.78 %(c) Ratio of net investment income (loss) to average net assets Before expense reimbursements and waived fees ........ 1.20 %(c) 0.08 % (1.17)%(c) After expense reimbursements and waived fees ......... 2.21 %(c) 1.11 % 0.27 %(c) Portfolio turnover rate ................................... 3.95 % 40.37 % 6.03 % (a) Unaudited. (b) For the period from December 29, 2000 (date of initial public investment) to September 30, 2001. (c) Annualized. See accompanying notes to financial statements
THE HILLMAN TOTAL RETURN FUND NOTES TO FINANCIAL STATEMENTS March 31, 2003 (Unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION The Hillman Total Return Fund (the "Fund"), is a diversified series of shares of beneficial interest of the Hillman Capital Management Investment Trust (the "Trust"), an open-ended management investment company. The Trust was organized on July 14, 2000 as a Delaware Business Trust and is registered under the Investment Company Act of 1940, as amended (the "Act"). The Fund received its initial public investment on December 29, 2000 and began operations on January 2, 2001. The investment objective of the Fund is to seek capital appreciation principally through investments in equity securities, such as common and preferred stocks and securities convertible into common stocks. The following is a summary of significant accounting policies followed by the Fund. A. Security Valuation - The Fund's investments in securities are carried at value. Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern time on the day of valuation. Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities for which market quotations are not readily available, if any, are valued by using an independent pricing service or by following procedures approved by the Board of Trustees (the "Trustees"). Short-term investments are valued at cost, which approximates value. B. Federal Income Taxes - No provision has been made for federal income taxes since substantially all taxable income has been distributed to shareholders. It is the policy of the Fund to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to make sufficient distributions of taxable income to relieve it from all federal income taxes. C. Investment Transactions - Investment transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification cost method. Interest income is recorded daily on an accrual basis. Dividend income is recorded on the ex-dividend date. D. Distributions to Shareholders - The Fund may declare dividends quarterly, payable in March, June, September and December, on a date selected by the Trustees. In addition, distributions may be made annually in December out of net realized gains through October 31 of that year. Distributions to shareholders are recorded on the ex-dividend date. The Fund may make a supplemental distribution subsequent to the end of its fiscal year. E. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimates. NOTE 2 - INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS Pursuant to an investment advisory agreement, Hillman Capital Management, Inc. (the "Advisor") provides the Fund with a continuous program of supervision of the Fund's assets, including the composition of its portfolio, and furnishes advice and recommendations with respect to investments, investment policies and the purchase and sale of securities. As compensation for its services, the Advisor receives a fee at the annual rate of 1.00% of the Fund's average daily net assets. (Continued) THE HILLMAN TOTAL RETURN FUND NOTES TO FINANCIAL STATEMENTS March 31, 2003 (Unaudited) The Advisor has voluntarily waived a portion of its fee in the amount of $10,478 ($0.01 per share) for the period ended March 31, 2003. There can be no assurance that the foregoing voluntary fee waiver will continue. The Fund's administrator, The Nottingham Company (the "Administrator"), provides administrative services to and is generally responsible for the overall management and day-to-day operations of the Fund pursuant to a fund accounting and compliance agreement with the Trust. As compensation for its services, the Administrator receives a fee at the annual rate of 0.125% of the Fund's first $50 million of average daily net assets, 0.10% of the next $50 million of average daily net assets, and 0.075% of average daily net assets over $100 million. The contract with the Administrator provides that the aggregate fees for the aforementioned administration services shall not be less than $2,000 per month. The Administrator also received a monthly fee of $2,250 for accounting and record-keeping services, plus 0.01% of the average annual net assets. The Administrator also charges the Fund for certain expenses involved with the daily valuation of portfolio securities. The Administrator has voluntarily waived all of these fees amounting to $25,861 ($0.03 per share) for the period ended March 31, 2003. There can be no assurance that the foregoing voluntary fee waivers will continue. NC Shareholder Services, LLC (the "Transfer Agent") serves as the Fund's transfer, dividend paying, and shareholder servicing agent. The Transfer Agent maintains the records of each shareholder's account, answers shareholder inquiries concerning accounts, processes purchases and redemptions of the Fund shares, acts as dividend and distribution disbursing agent, and performs other shareholder servicing functions. Certain Trustees and officers of the Trust are also officers of the Advisor, the distributor or the Administrator. NOTE 3 - DISTRIBUTION AND SERVICE FEES The Trustees, including a majority of the Trustees who are not "interested persons" of the Trust as defined in the Act, adopted a distribution plan with respect to all shares pursuant to Rule 12b-1 of the Act (the "Plan"). Rule 12b-1 regulates the manner in which a regulated investment company may assume costs of distributing and promoting the sales of its shares and servicing of its shareholder accounts. The Plan provides that the Fund may incur certain costs, which may not exceed 0.25%, for each year elapsed subsequent to adoption of the Plan, for payment to the distributor and others for items such as advertising expenses, selling expenses, commissions, travel or other expenses reasonably intended to result in sales of shares of the Fund or support servicing of shareholder accounts. The Fund incurred $9,020 in distribution and service fees under the Plan for the period ended March 31, 2003. NOTE 4 - PURCHASES AND SALES OF INVESTMENTS Purchases and sales of investments, other than short-term investments, aggregated $365,567 and $258,643, respectively, for the period ended March 31, 2003. ________________________________________________________________________________ THE HILLMAN TOTAL RETURN FUND ________________________________________________________________________________ a series of the Hillman Capital Management Investment Trust This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus. Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Items 5-6. [Reserved] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. [Reserved] Item 9. Controls and Procedures. (a) Not applicable. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10. Exhibits. (a)(1) Not applicable. (a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed herewith as Exhibit (a)(2). (b) Certifications required by Item 10(b) of Form N-CSR are filed herewith as Exhibit (b). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Hillman Capital Management Investment Trust By: (Signature and Title) /s/ Mark A. Hillman ________________________________ Mark A. Hillman, Trustee, President and Principal Executive Officer Date: June 2, 2003 ____________ 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/ Mark A. Hillman ________________________________ Mark A. Hillman, Trustee, President and Principal Executive Officer Date: June 2, 2003 ____________ By: (Signature and Title) /s/ Fletcher D. Perkins ________________________________ Fletcher D. Perkins, Treasurer and Principal Financial Officer Date: June 2, 2003 ____________ EX-99.CERT 3 cert302.txt SECTION 302 OFFICER CERTIFICATIONS EXHIBIT (a)(2) -------------- CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002 I, Mark A. Hillman, certify that: 1. I have reviewed this report on Form N-CSR of Hillman Capital Management Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: June 2, 2003 ____________ /s/ Mark A. Hillman ________________________________________ Mark A. Hillman, Trustee, President and Principal Executive Officer, Hillman Capital Management Investment Trust I, Fletcher D. Perkins, certify that: 1. I have reviewed this report on Form N-CSR of Hillman Capital Management Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: June 2, 2003 ____________ /s/ Fletcher D. Perkins _____________________________________ Fletcher D. Perkins, Treasurer and Principal Financial Officer, Hillman Capital Management Investment Trust EX-99.906CERT 4 cert906.txt SECTION 906 OFFICER CERTIFICATIONS EXHIBIT (b) ----------- HILLMAN CAPITAL MANAGEMENT INVESTMENT TRUST CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the semi-annual reports of The Hillman Aggressive Equity Fund and The Hillman Total Return Fund (the "Funds") of the Hillman Capital Management Investment Trust on Form N-CSR for the period ended March 31, 2003, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Mark A. Hillman, chief executive officer (or equivalent thereof) of the Funds, does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Funds. Date: June 2, 2003 By: /s/ Mark A. Hillman ____________ _________________________________ Mark A. Hillman Trustee, President, and Principal Executive Officer of the Hillman Capital Management Investment Trust A signed original of this written statement required by Section 906 has been provided to The Hillman Aggressive Equity Fund and The Hillman Total Return Fund and will be retained by The Hillman Aggressive Equity Fund and The Hillman Total Return Fund and furnished to the Securities and Exchange Commission or its staff upon request. HILLMAN CAPITAL MANAGEMENT INVESTMENT TRUST CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the semi-annual reports of The Hillman Aggressive Equity Fund and The Hillman Total Return Fund (the "Funds") on Form N-CSR for the period ended March 31, 2003, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Fletcher D. Perkins, chief financial officer (or equivalent thereof) of the Funds, does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Funds. Date: June 2, 2003 By: /s/ Fletcher D. Perkins ____________ _________________________________ Fletcher D. Perkins Treasurer and Principal Financial Officer of the Hillman Capital Management Investment Trust A signed original of this written statement required by Section 906 has been provided to The Hillman Aggressive Equity Fund and The Hillman Total Return Fund and will be retained by The Hillman Aggressive Equity Fund and The Hillman Total Return Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----