-----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, Vy2uDWLjn0nkxtIIVHZudooOyEVVe/ZB9mlt6hgW7BhEypUHavf1xFj36WwLluix b/bSxCan6/F4Laq11QxXLg== 0000916641-96-000357.txt : 19960515 0000916641-96-000357.hdr.sgml : 19960515 ACCESSION NUMBER: 0000916641-96-000357 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960513 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NOTTINGHAM INVESTMENT TRUST/ CENTRAL INDEX KEY: 0000891522 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 566331601 STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07160 FILM NUMBER: 96562303 BUSINESS ADDRESS: STREET 1: 105 N WASHINGTON ST PO BOX 69 STREET 2: C/O NOTTINGHAM CO CITY: ROCKY MOUNT STATE: NC ZIP: 27802-0069 BUSINESS PHONE: 3133347300 MAIL ADDRESS: STREET 1: C/O NOTTINGHAM CO STREET 2: 105 N WASHINGTON ST P O BOX 69 CITY: ROCKY MOUNT STATE: NC ZIP: 27802-0069 FORMER COMPANY: FORMER CONFORMED NAME: EARHART AMELIA EAGLE INVESTMENTS DATE OF NAME CHANGE: 19930714 N-30D 1 NIT MISSISSIPPI OPPORTUNITY CLASS C N-30D [Vector Money Management, Inc. Letterhead] 1 May 1996 Dear Fellow Shareholders, As the investment advisor to The Mississippi Opportunity Fund, Vector Money Management is pleased to provide you with the first annual report for the fund. Due to a February 29 1996 fiscal year end for our fund family, the annual report covers only the 10.5 months in which the fund was operational. For this period ending February 29, 1996 the raw performance numbers of 13.77% for Class A shares and 13.07% for Class C Shares compare with the S&P Index returns of 23.43%. Our primary concern during the start up phase of the fund was to identify companies we felt were undervalued by the markets and deploy funds as investment opportunities presented themselves. As a consequence, the fund was not fully invested until the fall of 1995. The groundwork laid during the initial investment process has begun to bear fruit during the first four months of 1996. The fund, on a year to date basis, was up 13.23% versus the S&P Index performance of 6.98% through April 30, 1996. The companies which provided the largest gains during our first year were Delta & Pine Land, Gulf South Medical Supply, WorldCom, Microtek Medical, First Mississippi and Belmont Homes. Additionally, in an effort to improve shareholder services, the Trustees of the fund have elected to change fund administrators to MGF Services Corp. You will notice a new statement format at the end of the June quarter. Thanks for your continued support. Sincerely, /s/ ASHBY M. FOOTE III Ashby M. Foote III President Vector Money Management Portfolio Manager - The Mississippi Opportunity Fund MISSISSIPPI OPPORTUNITY FUND CLASS C SHARES Performance Update - $10,000 Investment For the period from April 4, 1995 (commencement of operations) to February 29, 1996 [GRAPH APPEARS HERE] MISSISSIPPI OPPORTUNITY FUND Class C S&P 500 04-Apr-95 10000 10000 31-May-95 9898 10557 31-Aug-95 11046 11121 30-Nov-95 10775 11982 29-Feb-96 11186 12676 THIS GRAPH DEPICTS THE PERFORMANCE OF THE CLASS C SHARES OF THE MISSISSIPPI OPPORTUNITY FUND VERSUS THE S&P 500 INDEX. IT IS IMPORTANT TO NOTE THAT THE MISSISSIPPI OPPORTUNITY FUND IS A PROFESSIONALLY MANAGED MUTUAL FUND WHILE THE INDEXES ARE NOT AVAILABLE FOR INVESTMENT AND ARE UNMANAGED. THE COMPARISON IS SHOWN FOR ILLUSTRATIVE PURPOSES ONLY. ANNUALIZED TOTAL RETURN Commencement of operations through 2/29/96 13.15% (bullet) The graph assumes an initial $10,000 investment at April 4, 1995. All dividends and distributions are reinvested. (bullet) At February 29, 1996, the Class C Shares of the Fund would have grown to $11,186 - total investment return of 11.86% since April 4, 1995. (bullet) At February 29, 1995, a similar investment in the S&P 500 Index would have grown to $12,676 - total investment return of 26.76% since April 4, 1995. (bullet) Past performance is not a guarantee of future results. A mutual fund's share price and investment return will vary with market conditions, and the principal value of shares, when redeemed, may be worth more or less than the original cost. Average annual returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends. MISSISSIPPI OPPORTUNITY FUND PORTFOLIO OF INVESTMENTS February 29, 1996
Number of Value Shares (note 1) ----------- ----------------- COMMON STOCKS - 91.51% Agriculture - 6.38% Delta & Pine Land Company 2,666 $125,302 ----------------- Building Materials - 0.87% Masco Corporation 600 17,100 ----------------- Chemicals - 9.91% First Mississippi Corporation 4,500 117,562 Mississippi Chemical Corporation 3,500 77,000 ----------------- 194,562 ----------------- Electrical Equipment - 0.36% (a) MagneTek, Inc. 1,000 7,000 ----------------- Entertainment - 1.15% (a) Boyd Gaming Corporation 2,000 22,500 ----------------- Financial Services - 2.99% (a) MS Financial, Inc. 10,000 58,750 ----------------- Financial-Banks, Commercial - 7.95% BancorpSouth, Inc. 1,400 33,075 Deposit Guaranty Corporation 500 23,625 Hancock Holding Company 1,000 37,250 Trustmark Corporation 1,500 31,125 Union Planters Corporation 1,000 30,875 ----------------- 155,950 ----------------- Financial- Savings/Loans/Thrift - 2.22% Magna Bancorp, Inc. 1,500 43,500 ----------------- Food-Processing - 2.42% Sanderson Farms, Inc. 2,000 21,500 Sara Lee Corporation 800 25,900 ----------------- 47,400 ----------------- Forest Products & Paper - 2.26% Georgia Pacific Corporation 250 15,781 International Paper Company 800 28,600 ----------------- 44,381 ----------------- Furniture & Home Appliances - 2.99% (a) Chromcraft Revington, Inc. 1,000 23,000 National Presto Industries, Inc. 500 20,625 (a) River Oaks Furniture, Inc. 3,000 15,000 ----------------- 58,625 -----------------
(Continued) MISSISSIPPI OPPORTUNITY FUND PORTFOLIO OF INVESTMENTS February 29, 1996
Number of Value Shares (note 1) ----------- ----------------- COMMON STOCKS (Continued) Household Products & Housewares - 1.82% (a) National Picture & Frame Company 2,000 $19,625 Sunbeam Company, Inc. 1,000 16,125 ----------------- 35,750 ----------------- Computer Software & Services - 0.52% (a) Netscape Communications Corporation 200 10,200 ----------------- Manufactured Housing - 4.46% (a) Belmont Homes, Inc. 5,000 87,500 ----------------- Medical Supplies - 12.37% (a) American Medical Response, Inc. 1,500 50,625 Baxter International, Inc. 500 22,875 (a) Gulf South Medical Supply, Inc. 3,500 118,125 (a) Microtek Medical, Inc. 5,000 51,250 ----------------- 242,875 ----------------- Miscellaneous - Manufacturing - 0.86% Standex International Corporation 600 16,950 ----------------- Oil & Gas - Domestic - 3.48% (a) Callon Petroleum Company 7,000 68,250 ----------------- Real Estate - 1.64% Parkway Company 1,500 32,250 ----------------- Real Estate Investment Trust - 1.15% Eastgroup Properties 1,000 22,500 ----------------- Retail - Department Stores - 6.14% (a) Proffitt's, Inc. 3,000 78,750 Fred's, Inc. 4,000 29,500 (a) Stein Mart, Inc. 1,000 12,250 ----------------- 120,500 ----------------- Iron & Steel - 1.52% Birmingham Steel Corporation 2,000 29,750 ----------------- Telecommunications - 5.86% (a) Mobile Telecommunication Technologies Corp. 8,000 115,000 ----------------- Tire & Rubber - 1.30% Cooper Tire and Rubber Company 1,000 25,500 -----------------
(Continued) MISSISSIPPI OPPORTUNITY FUND PORTFOLIO OF INVESTMENTS February 29, 1996
Number of Value Shares (note 1) ----------- ----------------- COMMON STOCKS (Continued) Transportation - Air - 1.77% (a) ValuJet, Inc. 1,500 $34,688 ----------------- Trucking & Leasing - 0.78% (a) KLLM Transport Services, Inc. 1,500 15,375 ----------------- Utilities - Telecommunications - 6.02% (a) WorldCom, Inc. 3,000 118,125 ----------------- Transportation - Marine - 2.32% (a) Kirby Corporation 2,500 45,625 ----------------- Total Common Stocks (Cost $1,674,204) 1,795,908 ----------------- PREFERRED STOCK - 1.40% Oil & Gas - Domestic Callon Petroleum Company 1,000 27,500 ----------------- (Cost $25,000) INVESTMENT COMPANY - 3.77% Performance Funds Trust Money Market Fund "B" 73,986 73,986 ----------------- (Cost $73,986) Total Value of Investments (Cost $1,773,190 (b)) 96.68% 1,897,394 Other Assets Less Liabilities 3.32% 65,223 ------------- ----------------- Net Assets 100.00% $1,962,617 ============= ================= (a) Non-income producing investment. (b) Aggregate cost for federal income tax purposes is the same as for financial reporting purposes. Unrealized appreciation (depreciation) of investments for financial reporting and federal income tax purposes is as follows: Unrealized appreciation $304,876 Unrealized depreciation (180,672) ----------------- Net unrealized appreciation $124,204 =================
See accompanying notes to financial statements MISSISSIPPI OPPORTUNITY FUND STATEMENT OF ASSETS AND LIABILITIES February 29, 1996 ASSETS Investments at value (cost $1,773,190) $1,897,394 Dividends receivable 2,137 Receivable for fund shares sold 7,140 Due from advisor (note 2) 37,460 Deferred organization expenses, net (note 4) 37,117 Other asset 51 ------------- Total assets 1,981,299 ------------- LIABILITIES Accrued professional fees 8,500 Accrued expenses 8,847 Disbursements in excess of cash on demand deposit 1,335 ------------- Total liabilities 18,682 ------------- NET ASSETS $1,962,617 ============= NET ASSETS CONSIST OF Paid-in capital $1,816,678 Undistributed net realized gain on investments 21,735 Net unrealized appreciation on investments 124,204 ------------- $1,962,617 ============= CLASS A Net asset value ($1,448,527 / 129,131 shares outstanding) $11.22 ============= Maximum offering price per share (100 / 96.5 of $11.22) $11.63 ============= CLASS C Net asset value and offering price per share ($514,090 / 46,039 shares outstanding) $11.17 =============
See accompanying notes to financial statements MISSISSIPPI OPPORTUNITY FUND STATEMENT OF OPERATIONS For the period from April 4, 1995 (commencement of operations) to February 29, 1996 INVESTMENT INCOME Income Dividends $22,916 ------------ Expenses Fund accounting fees (note 2) 27,250 Professional fees 13,137 Investment advisory fees (note 2) 11,633 Distribution and service fees - Class A (note 3) 4,891 Distribution and service fees - Class C (note 3) 3,437 Fund administration fees (note 2) 3,892 Securities pricing fees 2,561 Custody fees 1,476 Registration and filing administration fees 952 Shareholder recordkeeping fees 906 Amortization of deferred organization expenses (note 4) 8,333 Trustee fees and meeting expenses 4,454 Shareholder servicing expenses 3,593 Registration and filing expenses 2,938 Printing expenses 897 Other operating expenses 2,867 ------------ Total expenses 93,217 ------------ Less: Expense reimbursements (note 2) (50,193) Investment advisory fees waived (note 2) (11,633) Distribution and service fees waived (note 3) (1,958) ------------ Net expenses 29,433 ------------ Net investment loss (6,517) ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain from investment transactions 30,359 Increase in unrealized appreciation on investments 124,204 ------------ Net realized and unrealized gain on investments 154,563 ------------ Net increase in net assets resulting from operations $148,046 ============
See accompanying notes to financial statements MISSISSIPPI OPPORTUNITY FUND STATEMENT OF CHANGES IN NET ASSETS For the period from April 4, 1995 (commencement of operations) to February 29, 1996 INCREASE IN NET ASSETS Operations Net investment loss $ (6,517) Net realized gain from investment transactions 30,359 Increase in unrealized appreciation on investments 124,204 ------------ Net increase in net assets resulting from operations 148,046 ------------ Distributions to shareholders from Net realized gain from investment transactions - Class A (1,707) Net realized gain from investment transactions - Class C (400) ------------ Decrease in net assets resulting from distributions (2,107) ------------ Capital share transactions Increase in net assets resulting from capital share transactions (a) 1,816,678 ------------ Total increase in net assets 1,962,617 NET ASSETS Beginning of period 0 ------------ End of period $ 1,962,617 ============
(a) A summary of capital share activity follows:
CLASS A CLASS C ---------------------------------- --------------------------------- Forthe period from April 4, 1995 For the period from April 4, 1995 (commencement of operations) (commencement of operations) to February 29, 1996 to February 29, 1996 Shares Value Shares Value -------------- --------------- ------------ ----------- Shares sold 132,050 $1,369,689 47,103 $490,650 Shares issued for reinvestment of distributions 162 1,707 38 400 ------------- -------------- ------------ ------------ 132,212 1,371,396 47,141 491,050 Shares redeemed (3,081) (33,640) (1,102) (12,128) ------------- -------------- ------------ ------------ Net increase 129,131 $1,337,756 46,039 $478,922 ============= ============== ============ ============
See accompanying notes to financial statements MISSISSIPPI OPPORTUNITY FUND FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
CLASS A CLASS C ------------- -------------- For the For the period from period from April 4, 1995 April 4, 1995 (commencement (commencement of operations) to of operations) to February 29, February 29, 1996 1996 ------------- -------------- Net asset value, beginning of period (initial offering price) $10.00 $10.00 Income (loss) from investment operations Net investment loss (0.03) (0.05) Net realized and unrealized gain on investments 1.27 1.24 ------------- -------------- Total from investment operations 1.24 1.19 ------------- -------------- Distributions to shareholders from Net realized gain from investment transactions (0.02) (0.02) ------------- -------------- Net asset value, end of period $11.22 $11.17 ============= ============== Total return 12.41%(a) 11.86%(b) ============= ============== Ratios/supplemental data Net assets, end of period $1,448,527 $514,090 ============== ============== Ratio of expenses to average net assets Before expense reimbursements and waived fees 6.00% (c) 7.40% (c) After expense reimbursements and waived fees 2.12% (c) 2.49% (c) Ratio of net investment loss to average net assets Before expense reimbursements and waived fees (5.20%) (c) (5.60%) (c) After expense reimbursements and waived fees (0.42%) (c) (0.69%) (c) Portfolio turnover rate 7.11% 7.11%
(a) Total return does not reflect payment of a sales charge. Annualized total return is 13.77%. (b) Annualized total return is 13.15%. (c) Annualized. See accompanying notes to financial statements MISSISSIPPI OPPORTUNITY FUND NOTES TO FINANCIAL STATEMENTS February 29, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER INFORMATION The Mississippi Opportunity Fund (the "Fund") is a non-diversified series of shares of beneficial interest of The Nottingham Investment Trust (the "Trust"). The Trust, an open-end investment company, was organized on August 12, 1992 as a Massachusetts Business Trust and is registered under the Investment Company Act of 1940. The Fund began operations on April 4, 1995. The Fund has an unlimited number of authorized shares, which are divided into two classes - Class A shares and Class C shares. Each class of shares has equal rights as to assets of the Fund, and the classes are identical except for differences in their sales charge structures and ongoing distribution and service fees. Income, expenses (other than distribution and service fees, which are attributable to each class based upon a set percentage of its net assets), and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Class A shares purchased are subject to a maximum sales charge of 3.50 percent. Both classes have equal voting privileges, except where otherwise required by law or when the Board of Trustees determines that the matter to be voted on affects only the interests of the shareholders of a particular class. 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. New York time. 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. Short-term investments are valued at cost which approximates value. B. Federal Income Taxes - No provision has been made for federal income taxes since 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. As a result of the Fund's ability to offset short-term capital gains with its operating net investment loss for income tax purposes, a reclassification adjustment has been made to decrease accumulated net investment loss, bringing it to zero, and to decrease undistributed net realized gain on investments by $6,517. 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 the accrual basis. Dividend income and distributions to shareholders are 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 Trust's Trustees. In addition, distributions may be made annually out of net realized gains through October 31 of that year. The Fund may make a supplemental distribution subsequent to the end of its fiscal year ended February 29, 1996. (Continued) MISSISSIPPI OPPORTUNITY FUND NOTES TO FINANCIAL STATEMENTS February 29, 1996 E. Use of Estimates - Management makes a number of estimates in the preparation of the Fund's financial statements. Actual results could differ significantly from these estimates. NOTE 2- INVESTMENT ADVISORY FEE AND OTHER RELATED PARTY TRANSACTIONS Pursuant to an investment advisory agreement, Vector Money Management, Inc. (the "Advisor") provides the Fund with a continuous program of supervision of the Fund's assets, including the composition of its investment 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 0.875% of the Fund's average daily net assets. The Advisor has voluntarily agreed to reimburse expenses of the Fund to limit total Fund operating expenses, exclusive of interest, taxes, brokerage commissions, sales charges and extraordinary expenses, to a maximum of 2.125% of the Class A shares' average daily net assets and 2.625% of the Class C shares' average daily net assets for any fiscal year, or the limits set by applicable state securities laws or other applicable laws if such limits are lower. Currently, the Fund does not offer its shares for sale in states which require limitations to be placed on its expenses. The Advisor has voluntarily waived its fee amounting to $11,633 ($0.11 per share) and agreed to reimburse $50,193 of the Fund's operating expenses for the period from April 4, 1995 to February 29, 1996. 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 an accounting and administrative agreement with the Trust. As compensation for its services, the Administrator receives a fee at the annual rate of 0.20% of the Fund's first $50 million of average daily net assets, 0.175% of the next $50 million of average daily net assets, and 0.15% of average daily net assets over $100 million. The Administrator also receives a monthly fee of $2,750 for accounting and recordkeeping services. Additionally, the Administrator charges the Fund for servicing of shareholder accounts and registration of the Fund's shares. The contract with the Administrator provides that the aggregate fees for the aforementioned administration, accounting and recordkeeping services shall not be less than $3,000 per month. The Administrator also charges the Fund for certain expenses involved with the daily valuation of portfolio securities. Capital Investment Group, Inc. (the "Distributor") serves as the Fund's principal underwriter and distributor. The Distributor receives any sales charges imposed on purchases of shares and re-allocates a portion of such charges to dealers through whom the sale was made, if any. For the period from April 4, 1995 to February 29, 1996, the Distributor retained sales charges in the amount of $7,050. Certain Trustees and officers of the Trust are also officers or directors of the Advisor or the Administrator. (Continued) MISSISSIPPI OPPORTUNITY FUND NOTES TO FINANCIAL STATEMENTS February 29, 1996 NOTE 3 - DISTRIBUTION AND SERVICE FEES The Board of Trustees, including a majority of the Trustees who are not "interested persons" of the Trust as defined in the Investment Company Act of 1940 (the "Act"), adopted separate distribution plans with respect to Class A and Class C shares of the Fund pursuant to Rule 12b-1 of the Act. 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. Under both distribution plans, the Fund may incur certain costs for payment to the Distributor and others for items such as advertising expenses, selling expenses or other expenses reasonably intended to result in sales of Class A and Class C shares of the Fund or support servicing of shareholder accounts. Expenditures of the Fund pursuant to the distribution plans are accrued based upon the Class A and Class C shares' average daily net assets and may not exceed 0.50% per annum of the Class A shares' average daily net assets and 1.00% per annum of the Class C shares' average daily net assets, for each year elapsed subsequent to adoption of the plans. Expenditures paid as service fees to any person who sells Fund shares may not exceed 0.25% per annum of the Class A and Class C shares' average daily net assets. Expenditures incurred for distribution activities as an asset-based sales charge may not exceed 0.75% per annum of the Class C shares' average daily net assets. Pursuant to the Class A and Class C distribution plans, the Fund incurred $4,891 and $3,437, respectively, for the period from April 4, 1995 to February 29, 1996, of which $1,958 ($0.02 per share) has been voluntarily waived by the Distributor. NOTE 4 - DEFERRED ORGANIZATION EXPENSES All expenses of the Fund incurred in connection with its organization and the registration of its shares have been assumed by the Fund. Included in deferred organization expenses is a $45,000 organization fee paid to the Administrator. The organization expenses are being amortized over a period of sixty months. Investors purchasing Class A and Class C shares of the Fund bear such expenses only as they are amortized against the Fund's investment income. In the event any of the initial shares of the Fund are redeemed during the amortization period, the redemption proceeds will be reduced by a pro rata portion of any unamortized organization expenses in the same proportion as the number of initial shares being redeemed bears to the number of initial shares of the Fund outstanding at the time of the redemption. NOTE 5 - PURCHASES AND SALES OF INVESTMENTS Purchases and sales of investments, other than short-term investments, aggregated $1,758,827 and $89,982, respectively, for the period from April 4, 1995 to February 29, 1996. NOTE 6 - DISTRIBUTIONS TO SHAREHOLDERS All distributions from net realized gain from investment transactions for the period from April 4, 1995 to February 29, 1996 represent short-term capital gain distributions, and are taxable as ordinary income to shareholders for federal income tax purposes. Shareholders should consult a tax advisor on how to report distributions for state and local income tax purposes. -----END PRIVACY-ENHANCED MESSAGE-----