-----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, IvgYHVkmpTtboGgCaxQ2h+fXZE+OqQZT1IZqn4JO0oNzNdNPR3K7Sge6E3Noi2uZ rTxJviVIGlf5I0bqqjNqxA== 0000950131-96-000835.txt : 19960304 0000950131-96-000835.hdr.sgml : 19960304 ACCESSION NUMBER: 0000950131-96-000835 CONFORMED SUBMISSION TYPE: N-30D/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960301 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OMNI INVESTMENT FUND CENTRAL INDEX KEY: 0000765924 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363344166 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-04273 FILM NUMBER: 96529830 BUSINESS ADDRESS: STREET 1: 53 W JACKSON BLVD STREET 2: STE 818 CITY: CHICAGO STATE: IL ZIP: 60604 BUSINESS PHONE: 3129220355 N-30D/A 1 OMNI INVESTMENT FUND - ANNUAL REPORT The OMNI Investment Fund ANNUAL REPORT 1995 - -------------------------------------------------------------------------------- The Omni Investment Fund's (the "Fund") performance in 1995 was 26.1%. The table below describes the Fund's average annual return for one year, five years, and since inception. The graph below depicts the Fund's performance versus the Russell 2000 Index, a broad market index of small to mid-sized companies with no undue weighting to a particular industry sector. Past performance is not predictive of future performance. The Omni Investment Fund Average Annual Total Return for periods ended December 31, 1995 One Year 5 Years Since 2/14/85* 26.1% 18.5% 14.7%
*The Fund's inception date [GRAPH APPEARS HERE] Omni Russell -------------------------------- 2/14/85 $10,000 $10,000 12/31/85 $12,703 $11,153 12/31/86 $14,738 $11,786 12/31/87 $15,985 $10,753 12/31/88 $19,196 $13,429 12/31/89 $24,272 $15,610 12/31/90 $18,946 $12,565 12/31/91 $23,685 $18,351 12/31/92 $28,325 $21,729 12/31/93 $32,926 $25,838 12/31/94 $35,144 $25,368 12/31/95 $44,307 $32,582
The Fund's performance was largely impacted by the fact that large capitalization stocks and, more specifically, technology equities were the market leaders. Technology equities usually carry high price earnings ratios that do not lead to sufficient risk/reward protection. Consequently, the Fund's exposure to this group was quite small. Analysis of the Fund's performance in 1995 leads us to the following conclusions. As in 1994, the area of particular strength was among small financial institutions that continued to benefit from favorable interest rate spreads and industry consolidation. In the last two years, eight of the Fund's holdings announced merger agreements which is indicative of the advantage of the value investment concept. The Fund continued to avoid any large declines in specific stocks. This is one of the benefits of value investing; minimizing the downside risk. The stock market has enjoyed an almost unprecedented growth in the last five years without a meaningful correction. Basically, this has resulted from corporate earnings exceeding expectations and declining long-term interest rates--an almost ideal environment. With profit margins and returns on investment near all-time highs, and with growing evidence of increasing commodity price pressures, the very favorable scenario for stocks in general has diminished. The fact that the economy is largely driven by consumer spending and that the consumer has been retrenching will also exert downward pressure. As the market has a tendency to over-react to both positives and negatives, the Fund intends to take advantage of the over-reaction of the market to short-term negatives. We would much prefer to commit our dollars to situations that have suffered large price declines due to temporary problems rather than pay excessive prices for companies where all the good news is out. Given the factors described above, we expect to continue to expand our exposure in the consumer area. The group lagged the market throughout 1995 as consumers cleaned up their balance sheets. The slowdown in demand was exacerbated by the over capacity of retail space. Consequently, the retail group is now in the midst of forced cutbacks. When the consumers resume a more normal spending pattern, the surviving merchants should greatly benefit leading to superior investment results. Specifically, we will continue to buy stocks that have declined 50% to 70%, that exhibit strong "survival" fundamentals, and that have large upside potential with minimum downside risk from current price levels. Respectfully, /s/ Bob Perkins Bob Perkins President 2 THE OMNI INVESTMENT FUND . PORTFOLIO OF INVESTMENTS . December 31, 1995
Number of Shares Value - -------------------------------------------------------------------------------- COMMON STOCKS: - -------------------------------------------------------------------------------- BANKS--8.8% - -------------------------------------------------------------------------------- (a) Benson Financial Corp.............................. 34,000 $ 637,500 Dime Financial Corp................................ 38,000 513,000 First Commerce Corp. cum. pfd...................... 6,500 242,938 First Commerce Corp................................ 20,000 640,000 Walden Bancorp Inc................................. 39,500 750,500 ----------- TOTAL BANKS........................................ 2,783,938 CAPITAL GOODS--12.8% - -------------------------------------------------------------------------------- Fleetwood Enterprises Inc.......................... 29,000 746,750 (a) ILC Technology Inc................................. 52,000 481,000 (a) Intel Corp. warrants exp. 3/14/98.................. 22,000 588,500 (a) Kaneb Services Inc................................. 250,000 562,500 (a) M.C. Shipping Inc.................................. 44,000 148,500 Masland Corp....................................... 11,000 154,000 Simpson Industries Inc............................. 70,000 630,000 Walbro Corp........................................ 42,000 756,000 ----------- TOTAL CAPITAL GOODS................................ 4,067,250 COMMUNICATIONS--8.7% - -------------------------------------------------------------------------------- Allen Group Inc.................................... 20,200 451,975 (a) Applied Digital Access Inc......................... 49,000 575,750 (a) Centennial Cellular Corp........................... 32,000 548,000 (a) International Cabletel Inc......................... 23,600 578,200 (a) Jones Intercable Inc............................... 50,000 625,000 ----------- TOTAL COMMUNICATIONS............................... 2,778,925 CONSUMER GOODS AND SERVICES--12.4% - -------------------------------------------------------------------------------- (a) Best Buy Inc....................................... 30,000 487,500 (a) Buttrey Food & Drug Stores Inc..................... 78,700 541,062 (a) Congoleum Corp..................................... 89,000 956,750 (a) Designs Inc........................................ 85,000 595,000 (a) Perrigo Co......................................... 30,400 361,000 Rival Co........................................... 30,000 663,750 (a) Steck-Vaughn Publishing Corp....................... 47,600 351,050 ----------- TOTAL CONSUMER GOODS AND SERVICES.................. 3,956,112 FINANCE--2.3% - -------------------------------------------------------------------------------- Templeton Dragon Fund Inc.......................... 55,000 735,625 ----------- TOTAL FINANCE...................................... 735,625 HEALTH CARE--1.6% - -------------------------------------------------------------------------------- (a) H & Q Healthcare Fund.............................. 25,500 519,563 ----------- TOTAL HEALTH CARE.................................. 519,563 INSURANCE--6.7% - -------------------------------------------------------------------------------- Allied Group Inc................................... 13,500 486,000 (a) American Re Corp................................... 10,000 408,750 Old Republic Int'l Corp............................ 34,800 1,235,400 ----------- TOTAL INSURANCE.................................... 2,130,150 NATURAL RESOURCES--7.4% - -------------------------------------------------------------------------------- Cabot Oil & Gas Co................................. 40,000 585,000 (a) Chieftain Int'l Inc................................ 23,400 415,350 Pogo Producing Co.................................. 18,000 508,500 (a) Seagull Energy Corp................................ 16,000 356,000 Snyder Oil Corp.................................... 39,000 472,875 ----------- TOTAL NATURAL RESOURCES............................ 2,337,725
Number of Shares or Principal Amount Value - -------------------------------------------------------------------------------- REAL ESTATE--4.4% - -------------------------------------------------------------------------------- Eastgroup Properties SBI......................... 11,940 $ 255,217 IRT Property Co.................................. 72,000 666,000 Town & Country Trust............................. 36,500 474,500 ----------- TOTAL REAL ESTATE................................ 1,395,717 THRIFTS--20.4% - -------------------------------------------------------------------------------- AMFED Financial Inc.............................. 17,500 595,000 American Bank of Connecticut..................... 20,000 545,000 Andover Bancorp Inc.............................. 16,000 338,000 (a) California Federal Savings Bank.................. 64,400 1,014,300 (a) California Federal Savings--goodwill............. 5,600 27,653 (a) Commercial Federal Corp.......................... 25,200 951,300 First Financial Corp............................. 34,225 787,175 Interwest Bancorp Inc............................ 31,000 631,625 Medford Savings Bank............................. 41,000 881,500 Mid Continent Bancshares Inc..................... 39,500 730,750 ----------- TOTAL THRIFTS.................................... 6,502,303 ----------- TOTAL COMMON STOCKS--85.5% (cost: $22,958,448)............................. 27,207,308 CORPORATE BONDS: - -------------------------------------------------------------------------------- Chock Full O' Nuts 7% Due 4/1/12................................... $ 184,000 158,240 ----------- TOTAL CORPORATE BONDS--0.5% (cost: $174,760)................................ 158,240 SHORT-TERM TREASURY SECURITIES: - -------------------------------------------------------------------------------- U.S. Treasury Bills 5.01% Due 02/01/96.............................. $1,000,000 995,720 U.S. Treasury Bills 5.14% Due 02/08/96.............................. 900,000 895,194 U.S. Treasury Bills 5.06% Due 02/15/96.............................. 500,000 496,900 U.S. Treasury Bills 5.13% Due 02/22/96.............................. 1,200,000 1,191,312 U.S. Treasury Bills 5.09% Due 02/29/96.............................. 1,000,000 991,890 U.S. Treasury Bills 5.28% Due 03/21/96.............................. 200,000 197,736 ----------- TOTAL SHORT-TERM TREASURY SECURITIES--15.0% (cost: $4,741,411).............................. 4,768,752 ----------- TOTAL INVESTMENTS--101% (cost: $27,874,619)............................. 32,134,300 Liabilities less other assets--(1.0%)............ (301,776) ----------- Net assets--100%................................. $31,832,524 ===========
Notes to Portfolio of Investments: (a) Non-income producing security. (b) Based on the cost of investments of $27,874,619 for Federal income tax purposes at December 31, 1995, the aggregate gross unrealized appreciation was $4,974,183, the aggregate gross unrealized depreciation was $714,502 and the net unrealized appreciation of investments was $4,259,681. See accompanying Notes to Financial Statements. 3 THE OMNI INVESTMENT FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 ASSETS Investments, at value (Cost: $27,874,619).......................... $32,134,300 Cash............................................................... 60,242 Receivables for investments sold................................... 157,629 Due from adviser................................................... 1,396 Dividends receivable............................................... 56,233 Interest receivable................................................ 3,455 ----------- Total assets................................................... 32,413,255 LIABILITIES Payable for investments purchased.................................. 534,633 Payable for capital shares redeemed................................ 10,602 Accrued expenses................................................... 7,000 Advisory fees payable.............................................. 26,964 Dividends payable.................................................. 1,532 ----------- Total liabilities.............................................. 580,731 ----------- Net assets applicable to 2,184,458 shares outstanding, equivalent to $14.57 per share............................................... $31,832,524 =========== Net assets consist of: Shares of beneficial interest, $.01 par value.................... $ 21,845 Additional paid-in capital....................................... 27,515,986 Undistributed net realized gains on sales of investments......... 35,012 Net unrealized appreciation of investments....................... 4,259,681 ----------- Net assets applicable to shares outstanding........................ $31,832,524 ===========
See accompanying Notes to Financial Statements. 4 THE OMNI INVESTMENT FUND
Year ended December 31, 1995 STATEMENT OF OPERATIONS ------------ Investment income: Dividends........................................................ $ 449,089 Interest......................................................... 172,139 ----------- Total investment income........................................ 621,228 Expenses: Investment advisory fees......................................... 275,236 Custodian fees................................................... 12,610 Regulatory fees.................................................. 34,736 Legal fees....................................................... 48,213 Auditing fees.................................................... 17,500 Other expenses................................................... 57,587 ----------- Total expenses................................................. 445,882 ----------- Net investment income.............................................. 175,346 Net realized and unrealized gain on investments: Net realized gain on sales of investments........................ 2,781,540 Change in net unrealized appreciation of investments............. 3,049,072 ----------- Net gain on investments........................................ 5,830,612 ----------- Net increase in net assets resulting from operations............... $ 6,005,958 ===========
Year ended Year ended December 31, December 31, 1995 1994 STATEMENT OF CHANGES IN NET ASSETS ------------ ------------ Operations: Net investment income (loss)....................... $ 175,346 $ (6,426) Net realized gain on investments................... 2,781,540 2,656,725 Change in net unrealized appreciation of investments....................................... 3,049,072 (1,642,402) ----------- ----------- Net increase in net assets resulting from operations. 6,005,958 1,007,897 Dividends to shareholders from: Net investment income.............................. (175,346) -- Net realized gains................................. (2,804,377) (2,605,660) Net increase from capital share transactions......... 10,536,459 3,558,114 ----------- ----------- Net increase in net assets........................... 13,562,694 1,960,351 Net assets: Beginning of year.................................. 18,269,830 16,309,479 ----------- ----------- End of year........................................ $31,832,524 $18,269,830 =========== ===========
See accompanying Notes to Financial Statements. 5 THE OMNI INVESTMENT FUND . NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES The Omni Investment Fund (the "Fund") is registered under the Investment Company Act of 1940 as a nondiversified, open-end management investment company. The investment objective of the Fund is to seek capital appreciation by investing primarily in the common stocks of companies that the Fund's investment adviser believes are experiencing, or have the potential to experience, growth in revenues, earnings or assets or companies that are undervalued relative to their assets. Security valuation-- Investments are stated at value. Investments in securities traded on a national securities exchange or reported on the NASDAQ System for which last sale information is regularly reported are valued at the last reported sales prices on their primary exchange or the NASDAQ System that day. Unlisted securities and securities traded on the NASDAQ System for which last sales prices are not regularly reported but for which over-the-counter market quotations are readily available are valued at the mean of the last quoted bid price and the last quoted asked price at the time of valuation, or if no quoted bid or asked price is reported, on the basis of the mean of bid and asked prices obtained from a dealer who maintains an active market in that security. Unlisted debt securities or debt securities having an inactive market are valued based upon the mean of bid and offered prices obtained from dealers maintaining an active market in the security. Securities not having readily available market quotations are valued at fair value determined in good faith by the Board of Trustees. Other short-term debt securities with a remaining maturity of more than 60 days are valued at the mean of the bid and offered price obtained from a dealer which maintains an active market in that security; and other short-term debt securities (having a remaining maturity of 60 days or less) are valued at cost, adjusted for amortization of premiums and accretion of discounts, which approximates value. Federal income taxes-- The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and, in the manner provided therein, to distribute all of its taxable income to its shareholders. Such provisions are being complied with and therefore no federal income tax provision is required. Distributions to shareholders-- Distributions to shareholders are recorded by the Fund on the ex-dividend date. Distributions of net investment income and capital gains are determined in accordance with income tax regulations. Fund share valuation-- Fund shares are sold and redeemed on a continuous basis at net asset value. On each day the New York Stock Exchange is open for trading, the net asset value per share is determined as of 3:00 p.m. (Chicago time) by dividing the total value of the Fund's investments and other assets, less liabilities, by the number of Fund shares outstanding. Other-- The Fund records security transactions on the trade date. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Discounts on fixed income securities are amortized over the life of the respective securities. Realized gains and losses from investment transactions are reported on an identified cost basis. 2. INVESTMENTS Purchases and proceeds from sales of investments (excluding short-term obligations) for the year ended December 31, 1995 were $24,318,543 and $20,880,261, respectively. 3. CAPITAL SHARE TRANSACTIONS On September 30, 1994, the Fund's shares were split 10 shares for 1 share. In the following table, the December 31, 1994 amounts reflect the activity in capital shares of the Fund after adjustment for the split:
Year ended Year ended December 31, 1995 December 31, 1994 ------------------- ------------------ Shares Amount Shares Amount ------- ----------- ------- ---------- Shares sold............................. 677,474 $ 9,507,691 161,231 $2,430,821 Shares issued in reinvestment of dividends from net investment income and net realized gains.......... 192,870 2,798,929 204,537 2,563,666 ------- ----------- ------- ---------- 870,344 12,306,620 365,768 4,994,487 Less shares redeemed.................... 118,518 1,770,161 99,096 1,436,373 ------- ----------- ------- ---------- Net increase in shares outstanding...... 751,826 $10,536,459 266,672 $3,558,114 ======= =========== ======= ==========
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund pays advisory fees for investment management and advisory services under a management agreement with Perkins, Wolf, McDonnell & Co. (PWM) that provides for fees at an annual rate of 1% of average daily net assets, payable monthly. During the year ended December 31, 1995 the Fund incurred advisory fees of $275,236. Portfolio transactions for the Fund have been executed through PWM, consistent with the Fund's policy of obtaining the best price and execution. PWM also acts as custodian for the Fund's investments. For the year ended December 31, 1995, PWM received commissions of $342,121 from purchases and sales of the Fund's portfolio investments and received custodian fees of $12,610. During the year ended December 31, 1995, the Fund paid fees to its unaffiliated trustees of $3,600. 6 THE OMNI INVESTMENT FUND FINANCIAL HIGHLIGHTS
Year ended December 31, Eleven mos. ------------------------------------------------------------- ended Dec. 31, 1995 1994 1993 1992 1991 1990 1989 1988 1987(a) ------ ------ ------ ------ ------ ------ ------ ----- -------------- Per share operating peformance(b): NET ASSET VALUE AT BEGINNING OF PERIOD.... $12.75 13.99 13.39 11.39 9.23 12.19 11.21 10.06 11.33 INCOME (LOSS) FROM INVESTMENT OPERATIONS: Net investment income (loss)................ 0.09 (0.01) 0.03 0.09 0.14 0.28 0.23 0.24 0.21 Net realized and urealized gain (loss) on investments........ 3.23 0.91 2.14 2.14 2.16 (2.95) 2.71 1.77 (0.29) ------ ------ ------ ------ ------ ------ ------ ----- ----- Total from investment operations............ 3.32 0.90 2.17 2.23 2.30 (2.67) 2.94 2.01 (0.08) DIVIDENDS: Dividends from net investment income..... (0.09) -- (0.03) (0.10) (0.14) (0.29) (0.22) (0.24) (0.20) Dividends from net realized gain on investments........... (1.41) (2.14) (1.54) (0.13) -- -- (1.74) (0.62) (0.99) ------ ------ ------ ------ ------ ------ ------ ----- ----- Total dividends........ (1.50) (2.14) (1.57) (0.23) (0.14) (0.29) (1.96) (0.86) (1.19) ------ ------ ------ ------ ------ ------ ------ ----- ----- NET ASSET VALUE AT END OF PERIOD.............. $14.57 12.75 13.99 13.39 11.39 9.23 12.19 11.21 10.06 ====== ====== ====== ====== ====== ====== ====== ===== ===== TOTAL RETURN (%): 26.07 6.74 16.25 19.59 25.01 (21.94) 26.44 20.09 (0.68) ------ ------ ------ ------ ------ ------ ------ ----- ----- Ratios to average net assets (%)(c): Expenses............... 1.64 1.43 1.31 1.41 1.52 1.84 1.78 1.44 1.69 Net investment income (loss)................ 0.64 (0.04) 0.18 0.73 1.24 2.34 1.85 2.33 1.87 Portfolio turnover rate (%)(c)................. 90 125 108 105 130 146 118 103 189 Net assets at end of period (in thousands)......... 31,833 18,270 16,309 14,007 11,940 9,839 13,576 9,976 6,748
- ------- Note: (a) Effective October 20, 1987 the Fund became publicly registered under the Investment Company Act of 1940. Prior thereto, its shares were not publicly offered. (b) All per share amounts prior to December 31, 1994 have been adjusted for a 10 for 1 share split which occurred September 30, 1994. (c) Annualized. 7 REPORT OF INDEPENDENT AUDITORS The Board of Trustees and Shareholders The Omni Investment Fund We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of The Omni Investment Fund as of December 31, 1995, and the related statements of operations for the year then ended and changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the fiscal periods since 1989. These financial statements and financial highlights are the responsibility of the Fund'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 periods ended December 31, 1988 and 1987 were audited by other auditors whose report dated February 23, 1989, expressed an unqualified opinion. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits 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 investments owned as of December 31, 1995, by correspondence with the central depositories and brokers. 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 Omni Investment Fund at December 31, 1995, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the fiscal periods since 1989, in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois February 16, 1996 8 NAMES AND ADDRESSES TRUSTEES AND OFFICERS OF THE FUND ROBERT H. PERKINS, PRESIDENT AND TRUSTEE GREGORY E. WOLF, TREASURER AND TRUSTEE BURT W. ENGLEBERG, TRUSTEE JOHN R. HALL, TRUSTEE KEITH L. COOK, TRUSTEE N. TED HANS, SECRETARY INVESTMENT ADVISER PERKINS, WOLF, MCDONNELL & COMPANY 53 WEST JACKSON BOULEVARD SUITE 818 CHICAGO, ILLINOIS 60604 CUSTODIAN OF PORTFOLIO SECURITIES PERKINS, WOLF, MCDONNELL & COMPANY 53 WEST JACKSON BOULEVARD SUITE 818 CHICAGO, ILLINOIS 60604 INDEPENDENT AUDITORS ERNST & YOUNG LLP SEARS TOWER 233 SOUTH WACKER DRIVE CHICAGO, ILLINOIS 60606 LEGAL COUNSEL BLACKWELL SANDERS MATHENY WEARY & LOMBARDI 1100 TWO PERSHING SQUARE 2300 MAIN STREET KANSAS CITY, MISSOURI 64108 LOGO Annual Report December 31, 1995 -----END PRIVACY-ENHANCED MESSAGE-----