-----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, MdxuahE1vs20e8Qb7MkkAy8VszM4vj6v8PUPtrIDdJZB9K/WyUtM78SgCA0ZAp+/ oAAUyOhJiAw8hjT4vcl7cg== 0000950123-04-005935.txt : 20040507 0000950123-04-005935.hdr.sgml : 20040507 20040507124252 ACCESSION NUMBER: 0000950123-04-005935 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040507 EFFECTIVENESS DATE: 20040507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VALIANT FUND CENTRAL INDEX KEY: 0000899090 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07582 FILM NUMBER: 04787900 BUSINESS ADDRESS: STREET 1: 1776 HERITAGE DRIVE CITY: NORTH QUINCY STATE: MA ZIP: 02171 BUSINESS PHONE: 5088551000 MAIL ADDRESS: STREET 1: 1776 HERITAGE DR CITY: NORTH QUINCY STATE: MA ZIP: 02171 N-CSRS 1 y96724nvcsrs.txt THE VALIANT FUND 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 811-7582 The Valiant Fund -------------------------------------------------- (Exact name of registrant as specified in charter) 871 Venetia Bay Boulevard, Venice, FL, 34292 -------------------------------------------------- (Address of principal executive offices) (Zip code) Denis R. Curcio 871 Venetia Bay Boulevard, Venice, FL, 34292 -------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-242-9340 Date of fiscal year end: 8/31/04 Date of reporting period: 2/29/04 The registrant, an open-end investment company registered pursuant to Section 8(b) of the Investment Company Act of 1940 (the "Act"), has not filed a registration statement that has gone effective under the Securities Act of 1933 (the "1933 Act") because beneficial interests in the registrant are issued and sold solely in private transactions that do not involve any public offering within the meaning of Section 4(2) of the 1933 Act. Accordingly, this report is not filed under Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934. ITEM 1. REPORTS TO STOCKHOLDERS. THE VALIANT FUND SEMI-ANNUAL REPORT FEBRUARY 29, 2004 THE VALIANT FUND Annual Report - August 31, 2003 Table of Contents
PAGE ---- U.S. TREASURY MONEY MARKET PORTFOLIO Schedule of Portfolio Investments 1 Statement of Assets and Liabilities 2 Statement of Operations 2 Statements of Changes in Net Assets 3 Financial Highlights 4 GENERAL MONEY MARKET PORTFOLIO Schedule of Portfolio Investments 6 Statement of Assets and Liabilities 8 Statement of Operations 8 Statements of Changes in Net Assets 9 Financial Highlights 10 TAX-EXEMPT MONEY MARKET PORTFOLIO Schedule of Portfolio Investments 12 Statement of Assets and Liabilities 14 Statement of Operations 14 Statements of Changes in Net Assets 15 Financial Highlights 16 U.S. TREASURY INCOME PORTFOLIO Statement of Assets and Liabilities 17 Statement of Changes in Net Assets 18 Financial Highlights 19 Notes to Financial Statements 20 Management of the Trust 24
VALIANT U.S. TREASURY MONEY MARKET PORTFOLIO Schedule of Portfolio Investments February 29, 2004 (unaudited)
MATURITY PRINCIPAL RATE DATE AMOUNT VALUE ---- -------- ------------- ------------- U.S. TREASURY OBLIGATIONS - 52.3% U.S. TREASURY BILL - 27.7% 3/4/04 $ 120,000,000 $ 119,991,333 ------------- U.S. TREASURY NOTES - 24.6% 3.38% 4/30/04 10,000,000 10,034,080 3.25 5/31/04 15,000,000 15,075,895 2.88 6/30/04 35,000,000 35,210,248 6.00 8/15/04 10,000,000 10,222,390 5.88 11/15/04 35,000,000 36,111,154 ------------- 106,653,767 ------------- TOTAL U.S. TREASURY OBLIGATIONS (AMORTIZED COST $226,645,100) 226,645,100 ------------- REPURCHASE AGREEMENTS - 47.5% Bank of America, Inc., 1.02%, due 3/1/04, with a maturity value of $45,003,638 (Collateralized by various 0.0% - 6.0% GNMA bonds valued at $45,900,000 with maturity dates 2/20/2030 - 2/20/2034) 45,000,000 45,000,000 Citigroup, Inc., 0.97%, due 3/1/04, with a maturity value of $45,003,825 (Collateralized by various 2.875% - 8.0% GNMA bonds valued at $45,900,000 with maturity dates 6/15/2014 - 2/20/2034) 45,000,000 45,000,000 J.P. Morgan Chase & Co., 1.01%, due 3/1/04, with a maturity value of $60,505,092 (Collateralized by various 4.0%-8.0% GNMA bonds valued at $61,712,610 with maturity dates 2/15/2008 - 3/15/2045) 60,500,000 60,500,000 UBS Paine Webber, 1.01%, due 3/1/04, with a maturity value of $55,004,629 (Collateralized by various 3.0% - 4.0% GNMA bonds valued at $56,101,406 with maturity dates 8/20/2032 -10/20/2033) 55,000,000 55,000,000 ------------- TOTAL REPURCHASE AGREEMENTS (AMORTIZED COST $205,500,000) 205,500,000 ------------- TOTAL INVESTMENTS (AMORTIZED COST $432,145,100) (a) - 99.8% 432,145,100 OTHER ASSETS LESS LIABILITIES - 0.2% 726,722 ------------- TOTAL NET ASSETS - 100% $ 432,871,822 =============
- ----------------- (a) Cost and value for federal income tax and financial reporting purposes are the same. GNMA - Government National Mortgage Association See notes to financial statements. 1 THE VALIANT FUND U.S. TREASURY MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED) ASSETS: Investments, at value $ 226,645,100 Repurchase agreements 205,500,000 ------------- Total investments 432,145,100 Cash 26,479 Receivables: Interest 1,050,645 Other 3,825 ------------- TOTAL ASSETS 433,226,049 LIABILITIES: Payables: Dividends $ 142,773 Accrued expenses and other liabilities: Investment manager 66,635 Distribution and shareholder servicing 144,819 ------------- TOTAL LIABILITIES 354,227 ------------- NET ASSETS $ 432,871,822 ============= COMPOSITION OF NET ASSETS: Capital $ 433,075,885 Undistributed net investment income 47,615 Accumulated net realized loss from investment transactions (251,678) ------------- NET ASSETS $ 432,871,822 ============= Class A Shares Net assets $ 1,172,372 Shares outstanding 1,171,208 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class B Shares Net assets $ 142,022,575 Shares outstanding 142,091,638 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class D Shares Net assets $ 262,448,202 Shares outstanding 262,570,275 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class E Shares Net assets $ 27,228,673 Shares outstanding 27,242,770 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 =============
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) INVESTMENT INCOME: Interest $ 2,414,640 Securities lending income 24,795 ----------- TOTAL INVESTMENT INCOME 2,439,435 EXPENSES: Investment manager $ 458,860 Distribution and shareholder servicing: Class A Shares 11,288 Class B Shares 235,866 Class D Shares 689,578 Class E Shares 104,246 ----------- Total expenses before contractual fee reimbursements 1,499,838 Contractual fee reimbursements (59,224) ----------- NET EXPENSES 1,440,614 NET INVESTMENT INCOME 998,821 ----------- NET REALIZED GAIN FROM INVESTMENT TRANSACTIONS 406 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 999,227 ===========
See notes to financial statements. 2 THE VALIANT FUND U.S. TREASURY MONEY MARKET PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2004 YEAR ENDED (UNAUDITED) AUGUST 31, 2003 ----------------- --------------- INVESTMENT ACTIVITIES: OPERATIONS: Net investment income $ 998,821 $ 4,051,122 Net realized gain from investment transactions 406 1,110 ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 999,227 4,052,232 ------------- ------------- DIVIDENDS: Net investment income: Class A Shares (27,971) (88,008) Class B Shares (460,866) (1,304,296) Class D Shares (501,162) (2,299,594) Class E Shares (8,822) (359,224) ------------- ------------- TOTAL DIVIDENDS TO SHAREHOLDERS (998,821) (4,051,122) ------------- ------------- DECREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS (15,532,403) (136,255,956) ------------- ------------- NET DECREASE IN NET ASSETS (15,531,997) (136,254,846) NET ASSETS: Beginning of period 448,403,819 584,658,665 ------------- ------------- End of period (including undistributed net investment income of $47,615 at February 29, 2004 and August 31, 2003) $ 432,871,822 $ 448,403,819 ============= =============
See notes to financial statements. 3 THE VALIANT FUND U.S. TREASURY MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS,CLASS A SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 -------------------- -------- -------- ------- -------- ------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ---------- -------- -------- ------- -------- ------- INVESTMENT ACTIVITIES Net investment income 0.005 0.012 0.021 0.05 0.06 0.05 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * (0.00) * (0.00) * (0.00) * ---------- -------- -------- ------- -------- ------- Total from investment activities 0.005 0.012 0.021 0.05 0.06 0.05 ---------- -------- -------- ------- -------- ------- DIVIDENDS Net investment income (0.005) (0.012) (0.021) (0.05) (0.06) (0.05) ---------- -------- -------- ------- -------- ------- Total dividends (0.005) (0.012) (0.021) (0.05) (0.06) (0.05) ---------- -------- -------- ------- -------- ------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ========== ======== ======== ======= ======== ======= TOTAL RETURN (a) 0.43% 1.22% 2.05% 5.30% 5.66% 4.77% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 1,172 $ 7,159 $ 7,260 $10,355 $ 15,725 $15,088 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55%(b) 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of expenses to average net assets 0.20%(b) 0.20% 0.20% 0.20% 0.20% 0.20% Ratio of net investment income to average net assets 0.87%(b) 1.21% 2.12% 5.13% 5.55% 4.69%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 ----------------- -------- -------- -------- ------- ------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ------------ -------- -------- -------- ------- ------- INVESTMENT ACTIVITIES Net investment income 0.004 0.010 0.018 0.05 0.05 0.04 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * (0.00) * (0.00) * (0.00) * ------------ -------- -------- -------- ------- ------- Total from investment activities 0.004 0.010 0.018 0.05 0.05 0.04 ------------ -------- -------- -------- ------- ------- DIVIDENDS Net investment income (0.004) (0.01) (0.02) (0.05) (0.05) (0.04) ------------ -------- -------- -------- ------- ------- Total dividends (0.004) (0.01) (0.02) (0.05) (0.05) (0.04) ------------ -------- -------- -------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ============ ======== ======== ======== ======= ======= TOTAL RETURN (a) 0.31% 0.96% 1.80% 5.04% 5.39% 4.51% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 142,023 $126,617 $146,246 $117,213 $41,893 $64,266 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55%(b) 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of expenses to average net assets 0.45%(b) 0.45% 0.45% 0.45% 0.45% 0.45% Ratio of net investment income to average net assets 0.62%(b) 0.95% 1.77% 4.44% 5.20% 4.42%
* Less than $0.005 per share. (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends. Total returns for periods less than one full year are not annualized. (b) Annualized See notes to financial statements. 4 THE VALIANT FUND U.S. TREASURY MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS, CLASS D SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 -------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 ----------------- -------- -------- -------- -------- -------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ---------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income 0.002 0.008 0.015 0.05 0.05 0.04 Net realized gain (loss) from investment transactions 0.000* 0.000* 0.000* (0.00)* (0.00)* (0.00)* ---------- -------- -------- -------- -------- -------- Total from investment activities 0.002 0.008 0.015 0.05 0.05 0.04 ---------- -------- -------- -------- -------- -------- DIVIDENDS Net investment income (0.002) (0.008) (0.015) (0.05) (0.05) (0.04) ---------- -------- -------- -------- -------- -------- Total dividends (0.002) (0.008) (0.015) (0.05) (0.05) (0.04) ---------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ========== ======== ======== ======== ======== ======== TOTAL RETURN (b) 0.18% 0.71% 1.54% 4.77% 5.13% 4.25% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 262,448 $286,191 $325,896 $339,659 $269,929 $204,713 Ratio of expenses to average net assets 0.70%(c) 0.70% 0.70% 0.70% 0.70% 0.70% Ratio of net investment income to average net assets 0.36%(c) 0.71% 1.54% 4.55% 5.04% 4.16%
FINANCIAL HIGHLIGHTS, CLASS E SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FOR THE PERIOD FEBRUARY 29, 2004 ----------------------------------------- APRIL 6, 1999 TO (UNAUDITED) 2003 2002 2001 2000 AUGUST 31, 1999(a) ----------------- ------- -------- -------- -------- ------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ---------- ------- -------- -------- -------- ------------ INVESTMENT ACTIVITIES Net investment income 0.000** 0.005 0.013 0.04 0.05 0.02 Net realized gain (loss) from investment transactions 0.000** 0.000** 0.000** (0.00)* (0.00)* (0.00)* ---------- ------- -------- -------- -------- ------------ Total from investment activities 0.000 0.005 0.013 0.04 0.05 0.02 ---------- ------- -------- -------- -------- ------------ DIVIDENDS Net investment income 0.000** (0.005) (0.013) (0.04) (0.05) (0.02) ---------- ------- -------- -------- -------- ------------ Total dividends (0.000) (0.005) (0.013) (0.04) (0.05) (0.02) ---------- ------- -------- -------- -------- ------------ NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ========== ======= ======== ======== ======== ============ TOTAL RETURN (b) 0.04% 0.41% 1.24% 4.46% 4.82% 1.54%(b) RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 27,229 $28,437 $105,257 $220,850 $141,693 $ 13,086 Ratio of expenses to average net assets 1.00%(c) 1.00% 1.00% 1.00% 1.00% 0.99%(c) Ratio of net investment income to average net assets 0.07%(c) 0.48% 1.32% 4.19% 5.31% 3.81%(c)
* Less than $0.001 per share. ** Less than $0.005 per share. (a) Commencement of operations. (b) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends. Total returns for periods less than one full year are not annualized. (c) Annualized. See notes to financial statements. 5 VALIANT GENERAL MONEY MARKET PORTFOLIO Schedule of Portfolio Investments February 29, 2004 (unaudited)
MATURITY PRINCIPAL RATE DATE AMOUNT VALUE ---- -------- ------------- ------------ COMMERCIAL PAPER - 52.6% BANKING - 22.7% Alliance & Leicester PLC 1.24% 10/12/04 $ 25,000,000 $ 24,807,812 Banco Bradesco SA 1.25 6/14/04 20,000,000 19,927,667 Banco Continental de Panama SA 1.08 4/5/04 27,500,000 27,471,125 Banco Cuscatlan, SA 1.08 4/5/04 20,000,000 19,979,000 Banco Rio de La Plata SA 0.97 3/18/04 5,000,000 4,997,710 HBOS Treasury 1.04 5/28/04 15,000,000 14,961,867 ------------ 112,145,181 ------------ BROKER / DEALERS - 4.7% Goldman Sachs Group, Inc. 1.23 9/1/04 23,000,000 23,000,000 ------------ EDUCATION - 4.2% Johns Hopkins University 1.05 4/7/04 21,000,000 21,000,000 ------------ SPECIAL PURPOSE ENTITY - 21.0% Danske Corp. 1.08 7/9/04 30,000,000 29,884,083 FCAR Owner Trust 1.08 6/2/04 15,000,000 14,958,537 Greyhawk Funding 1.04 5/27/04 15,000,000 14,962,300 Lockhart Funding 1.09 5/25/04 24,139,000 24,076,876 SPARC LLC 1.05 3/10/04 20,000,000 19,994,750 ------------ 103,876,546 ------------ TOTAL COMMERCIAL PAPER (AMORTIZED COST $260,021,727) 260,021,727 ------------ CORPORATE OBLIGATIONS - 10.8% FINANCIAL SERVICES - 1.0% Labelle Capital Funding LLC* 1.18 9/1/26 1,330,000 1,330,000 Wyoming Steel Investment * 1.16 4/1/21 3,700,000 3,700,000 ------------ 5,030,000 ------------ FOOD - 0.3% Jacksons Food Stores Inc.* 1.15 7/1/09 1,238,000 1,238,000 ------------ HEALTH SERVICES - 0.9% Physicians Center, LP* 1.10 10/1/29 3,570,000 3,570,000 Riverview Medical Office Building* 1.15 11/1/17 900,000 900,000 ------------ 4,470,000 ------------ LEISURE - 0.9% Commonwealth Country Club, Ltd.* 1.24 11/1/21 3,360,000 3,360,000 Sandusky Yacht Club* 1.15 12/1/21 1,250,000 1,250,000 ------------ 4,610,000 ------------ REAL ESTATE - 4.6% 208 Associates LLC* 1.15 10/1/13 965,000 965,000 Aztec Properties LLC* 1.16 8/1/20 2,168,000 2,168,000 Baird Properties LLC* 1.20 12/1/26 2,210,000 2,210,000 CMW Real Estate LLC* 1.15 6/1/20 2,325,000 2,325,000 El Dorado Enterprises of Miami FL* 1.16 11/1/14 2,000,000 2,000,000 El Dorado Enterprises of Miami FL* 1.11 6/1/20 10,525,000 10,525,000 G & J Properties II* 1.12 9/1/23 1,000,000 1,000,000 Ordeal Properties LLC* 1.15 10/1/12 1,600,000 1,600,000 ------------ 22,793,000 ------------ SPECIAL PURPOSE ENTITY - 3.1% Barry-Wehmiller Group* 1.12 5/1/18 1,270,000 1,270,000 Best One Tire & Service* 1.12 2/1/18 955,000 955,000 Butler County, Surgical Properties* 1.12 3/1/23 1,440,000 1,440,000 Exal Corp.* 1.12 3/1/09 1,500,000 1,500,000 GCG Portage LLC* 1.23 2/1/26 1,285,000 1,285,000 IHA Capital Development* 1.12 7/1/28 1,500,000 1,500,000 ISO Building LLC* 1.12 3/1/23 1,000,000 1,000,000 MMR Development Co.* 1.12 5/1/23 1,080,000 1,080,000 Taylor Steel, Inc.* 1.15 2/1/23 2,390,000 2,390,000 Village Enterprises* 1.15 4/1/34 1,000,000 1,000,000 Wellington Green LLC* 1.15 4/1/29 1,890,000 1,890,000 ------------ 15,310,000 ------------ TOTAL CORPORATE OBLIGATIONS (AMORTIZED COST $53,451,000) 53,451,000 ------------
See notes to financial statements. 6 VALIANT GENERAL MONEY MARKET PORTFOLIO Schedule of Portfolio Investments February 29, 2004 (unaudited)
MATURITY PRINCIPAL RATE DATE AMOUNT VALUE ---- -------- ------------- ------------ CERTIFICATE OF DEPOSIT - 5.7% BANKING - 5.7% Harris Trust Bank of Chicago (AMORTIZED COST $28,000,000) 1.32% 3/1/04 $ 28,000,000 $ 28,000,000 ------------ MUNICIPAL NOTES AND BONDS - 7.9% ALABAMA - 3.9% Auburn Taxable Revenue, Series B* 1.11 5/1/20 6,755,000 6,755,000 Meadow Brook* 1.10 3/1/31 12,300,000 12,300,000 ------------ 19,055,000 ------------ ILLINOIS - 0.9% Upper Illinois River Valley Development Authority* 1.15 12/1/21 4,595,000 4,595,000 ------------ MICHIGAN -0.4% Michigan City Industrial Economic Development Revenue* 1.12 10/1/13 1,705,000 1,705,000 ------------ NEW YORK - 1.2% Approach Partnership* 1.15 2/1/19 1,125,000 1,125,000 Cotswold Village Associates LLC* 1.10 6/1/31 5,000,000 5,000,000 ------------ 6,125,000 ------------ OHIO - 0.6% Hopkins Waterhouse LLC* 1.15 6/1/20 1,000,000 1,000,000 Mercer County, HealthCare Facilities* 1.12 4/1/23 1,960,000 1,960,000 ------------ 2,960,000 ------------ TENNESSEE - 0.9% Tennessee School Board Authority 1.12 3/8/04 4,500,000 4,500,000 ------------ TOTAL MUNICIPAL NOTES AND BONDS (AMORTIZED COST $38,940,000) 38,940,000 ------------ UNITED STATES GOVERNMENT AGENCY - 8.1% Federal National Mortgae Association 1.50 11/16/04 15,000,000 15,000,000 Federal National Mortgae Association 1.62 12/8/04 25,000,000 25,000,000 ------------ TOTAL UNITED STATES GOVERNMENT AGENCY (AMORTIZED COST $40,000,000) 40,000,000 ------------ REPURCHASE AGREEMENT - 14.8% Bank of America, Inc., 1.02%, due 3/01/04 with a maturity value of $73,006,205 (Collateralized by various 0.0% - 6.00%, GNMA bonds valued at $74,460,001) (AMORTIZED COST $73,000,000) 73,000,000 73,000,000 ------------ TOTAL INVESTMENTS (AMORTIZED COST $493,412,727) (a) - 99.9% 493,412,727 OTHER ASSETS LESS LIABILITIES - 0.1% 288,436 ------------ TOTAL NET ASSETS - 100% $493,701,163 ============
- ----------------- * Variable rate investment. Securities payable on demand at par including accrued interest (usually within seven days notice) and unconditionally secured as to principal and interest by letters of credit or other credit support agreements from major banks. The interest rates are adjustable and are based on bank prime rates or other interest rate adjustment indeces. The rate shown represents the rate in effect at February 29, 2004. The maturity date shown reflects next rate change date. (a) Cost and value for federal income tax and financial reporting purposes are the same. GNMA - Government National Mortgage Association LLC - Limited Liability Corporation LP - Limited Partnership PLC - Public Limited Company SA - Sociedad Anonyma (French, Spanish) See notes to financial statements 7 THE VALIANT FUND GENERAL MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED) ASSETS: Investments, at value $ 420,412,727 Repurchase agreements 73,000,000 ------------- Total investments 493,412,727 Cash 16,572 Receivables: Interest 729,142 ------------- TOTAL ASSETS 494,158,441 LIABILITIES: Payables: Investments purchased $ - Dividends 321,124 Accrued expenses and other liabilities: Investment manager 78,692 Distribution and shareholder servicing 57,462 ----------- TOTAL LIABILITIES 457,278 ------------- NET ASSETS $ 493,701,163 ============= COMPOSITION OF NET ASSETS: Capital $ 493,783,584 Accumulated net realized loss from investment transactions (82,421) ------------- NET ASSETS $ 493,701,163 ============= Class A Shares Net assets $ 377,093,612 Shares outstanding 377,150,985 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class B Shares Net assets $ 2,017,227 Shares outstanding 2,017,816 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class D Shares Net assets $ 67,150,371 Shares outstanding 67,161,356 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ============= Class E Shares Net assets $ 47,439,953 Shares outstanding 47,453,428 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 =============
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) INVESTMENT INCOME: Interest $ 3,264,593 ----------- TOTAL INVESTMENT INCOME 3,264,593 EXPENSES: Investment manager $ 565,755 Distribution and shareholder servicing: Class A Shares 764,016 Class B Shares 11,723 Class D Shares 176,635 Class E Shares 199,081 ----------- Total expenses before contractual fee reimbursements 1,717,210 Contractual fee waivers and expense reimbursements (765,146) ----------- NET EXPENSES 952,064 ----------- NET INVESTMENT INCOME 2,312,529 ----------- NET REALIZED LOSS FROM INVESTMENT TRANSACTIONS (1,354) ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,311,175 ===========
See notes to financial statements. 8 THE VALIANT FUND GENERAL MONEY MARKET PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2004 YEAR ENDED (UNAUDITED) AUGUST 31, 2003 ----------------- --------------- INVESTMENT ACTIVITIES: OPERATIONS: Net investment income $ 2,312,529 $ 7,740,349 Net realized gain (loss) from investment transactions (1,354) 14,510 ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,311,175 7,754,859 ------------- ------------- DIVIDENDS: Net investment income: Class A Shares (2,082,814) (6,870,152) Class B Shares (29,782) (126,461) Class D Shares (161,243) (327,768) Class E Shares (38,690) (415,968) ------------- ------------- TOTAL DIVIDENDS TO SHAREHOLDERS (2,312,529) (7,740,349) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL TRANSACTIONS (14,257,855) 10,146,226 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS (14,259,209) 10,160,736 NET ASSETS: Beginning of period 507,960,372 497,799,636 ------------- ------------- End of period $ 493,701,163 $ 507,960,372 ============= =============
See notes to financial statements. 9 THE VALIANT FUND GENERAL MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 ------------------------------------------------------ (UNAUDITED) 2003 2002 2001 2000 1999 ----------------- -------- -------- -------- -------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ------------ -------- -------- -------- -------- --------- INVESTMENT ACTIVITIES Net investment income 0.005 0.013 0.022 0.05 0.06 0.05 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * 0.00 * (0.00) * (0.00) * ------------ -------- -------- -------- -------- --------- Total from investment activities 0.005 0.013 0.022 0.05 0.06 0.05 ------------ -------- -------- -------- -------- --------- DIVIDENDS Net investment income (0.005) (0.013) (0.022) (0.05) (0.06) (0.05) ------------ -------- -------- -------- -------- --------- Total dividends (0.005) (0.013) (0.022) (0.05) (0.06) (0.05) ------------ -------- -------- -------- -------- --------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ============ ======== ======== ======== ======== ========= TOTAL RETURN (a) 0.48% 1.29% 2.24% 5.52% 5.97% 5.00% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 377,094 $364,392 $357,676 $380,513 $394,118 $ 254,808 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of expenses to average net assets 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% Ratio of net investment income to average net assets 0.95% 1.28% 2.22% 5.36% 5.89% 4.91%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 ------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 ----------------- -------- -------- ------- ------- ------ NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ----------- -------- -------- ------- ------- ------ INVESTMENT ACTIVITIES Net investment income 0.004 0.010 0.019 0.05 0.06 0.05 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * 0.00 * (0.00) * (0.00) * ----------- -------- -------- ------- ------- ------ Total from investment activities 0.004 0.010 0.019 0.05 0.06 0.05 ----------- -------- -------- ------- ------- ------ DIVIDENDS Net investment income (0.004) (0.010) (0.019) (0.05) (0.06) (0.05) ----------- -------- -------- ------- ------- ------ Total dividends (0.004) (0.010) (0.019) (0.05) (0.06) (0.05) ----------- -------- -------- ------- ------- ------ NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 =========== ======== ======== ======= ======= ====== TOTAL RETURN (a) 0.35% 1.04% 1.98% 5.25% 5.71% 4.74% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 2,017 $ 10,620 $ 15,719 $ 9,169 $ 4,793 $1,569 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55%(b) 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of expenses to average net assets 0.45%(b) 0.45% 0.45% 0.45% 0.45% 0.45% Ratio of net investment income to average net assets 0.70%(b) 1.03% 1.91% 4.91% 5.61% 4.72%
* Less than $0.005 per share. (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends. Total returns for periods less than one full year are not annualized. (b) Annualized See notes to financial statements. 10 THE VALIANT FUND GENERAL MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS, CLASS D SHARES
FOR THE SIX MONTHS ENDED FOR THE FOR THE FOR THE FOR THE PERIOD FEBRUARY 29, 2004 YEAR ENDED YEAR ENDED YEAR ENDED SEPTEMBER 27, 1999 (UNAUDITED) AUGUST 31, 2003 AUGUST 31, 2002 AUGUST 31, 2001 TO AUGUST 31, 2000 (c) ----------------- --------------- --------------- --------------- ---------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 ----------- ----------- ----------- ----------- ----------- INVESTMENT ACTIVITIES Net investment income 0.002 0.007 0.016 0.05 0.05 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * 0.00 ** (0.00) ** ----------- ----------- ----------- ----------- ----------- Total from investment activities 0.002 0.007 0.016 0.05 0.05 ----------- ----------- ----------- ----------- ----------- DIVIDENDS Net investment income (0.002) (0.007) (0.02) (0.05) (0.05) ----------- ----------- ----------- ----------- ----------- Total dividends (0.002) (0.007) (0.02) (0.05) (0.05) ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 =========== =========== =========== =========== =========== TOTAL RETURN (b) 0.23% 0.79% 1.73% 4.99% 5.10% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 67,150 $ 74,943 $ 40,662 $ 16,861 $ 10,121 Ratio of expenses to average net assets 0.70%(c) 0.70% 0.70% 0.70% 0.70%(c) Ratio of net investment income to average net assets 0.46%(c) 0.73% 1.55% 4.81% 5.53%(c)
FINANCIAL HIGHLIGHTS, CLASS E SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FOR THE PERIOD FEBRUARY 29, 2004 --------------------------------------- MAY 5, 1999 TO (UNAUDITED) 2003 2002 2001 2000 AUGUST 31, 1999(c) ----------------- ------- ------- ------- ------- ------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ----------- ------- ------- ------- ------- ----------- INVESTMENT ACTIVITIES Net investment income 0.001 0.005 0.014 0.05 0.05 0.01 Net realized gain (loss) from investment transactions 0.000 * 0.000 * 0.000 * 0.00 ** (0.00) ** (0.00) ** ----------- ------- ------- ------- ------- ----------- Total from investment activities 0.001 0.005 0.014 0.05 0.05 0.01 ----------- ------- ------- ------- ------- ----------- DIVIDENDS Net investment income (0.001) (0.005) (0.014) (0.05) (0.05) (0.01) ----------- ------- ------- ------- ------- ----------- Total dividends (0.001) (0.005) (0.014) (0.05) (0.05) (0.01) ----------- ------- ------- ------- ------- ----------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 =========== ======= ======= ======= ======= =========== TOTAL RETURN (b) 0.08% 0.49% 1.42% 4.68% 5.13% 1.31% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 47,440 $58,005 $83,742 $99,984 $89,270 $ 30,159 Ratio of expenses to average net assets 1.00%(c) 1.00% 1.00% 1.00% 1.00% 0.99%(c) Ratio of net investment income to average net assets 0.16%(c) 0.51% 1.45% 4.23% 5.18% 4.00%(c)
* Less than $0.001 per share. ** Less than $0.005 per share. (a) Commencement of operations. (b) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends. Total returns for periods less than one full year are not annualized. See notes to financial statements. 11 VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO Schedule of Portfolio Investments February 29, 2004 (unaudited)
MATURITY PRINCIPAL RATE DATE AMOUNT VALUE ---- -------- ----------- ----------- COMMERCIAL PAPER - 12.5% FLORIDA - 12.5% City of Gainesville, Series C 0.95% 5/10/04 $ 5,000,000 $ 5,000,000 Miami-Dade County 0.95 4/8/04 2,012,000 2,012,000 Sarasota County Public Hospital, LOC Suntrust Bank 1.03 3/10/04 7,150,000 7,150,000 Sunshine State 0.97 5/14/04 1,100,000 1,100,000 Sunshine State 1.02 4/8/04 2,000,000 2,000,000 Sunshine State 1.01 4/2/04 1,000,000 1,000,000 ----------- TOTAL COMMERCIAL PAPER (AMORTIZED COST $18,262,000) 18,262,000 ----------- MUNICIPAL BONDS AND NOTES - 14.4% FLORIDA - 4.4% Kissimmee Utility Authority Electric System Revenue 2.00 10/1/04 1,910,000 1,920,964 Manatee County HFA 2.00 10/1/04 1,000,000 1,005,740 Seminole County School District TAN 2.00 8/20/04 3,500,000 3,516,279 ----------- 6,442,983 ----------- NEW HAMPSHIRE - 2.8% Strafford County TAN 1.75 12/30/04 4,000,000 4,022,636 ----------- SOUTH CAROLINA - 2.8% Charleston County School District 2.00 11/4/04 4,000,000 4,028,042 ----------- TEXAS - 4.4% Houston Independent School District 1.05 6/15/33 5,000,000 4,999,617 Richardson Independent School District General Obligation Note 1.35 8/15/24 1,500,000 1,500,000 ----------- 6,499,617 ----------- TOTAL MUNICIPAL BONDS AND NOTES (AMORTIZED COST $20,993,278) 20,993,278 ----------- VARIABLE MUNICIPAL BONDS* - 73.6% ALASKA - 5.2% Valdez Marine Term Revenue, Exxon Pipeline Co. Project 0.95 3/5/04 1,100,000 1,100,000 Valdez Marine Term Revenue, BP Pipelines Project, Series B 0.99 3/4/04 6,500,000 6,500,000 ----------- 7,600,000 ----------- CONNECTICUT - 0.8% Connecticut State Health & Educational Facilities Authority Revenue 0.95 3/4/04 1,200,000 1,200,000 ----------- FLORIDA - 48.5% Bradford County HFA, Series B 0.92 3/3/04 5,000,000 5,000,000 Broward County HFA, Multi-Family, LOC Bank One 1.00 3/3/04 2,600,000 2,600,000 Capital Projects Finance Authority, LOC Bank of Scotland 0.98 3/4/04 950,000 950,000 Collier County Health Care Facilities IDR 0.95 3/4/04 4,000,000 4,000,000 Collier County Health Care Facilities IDR, LOC Fifth Third Bank 0.94 3/5/04 2,000,000 2,000,000 Dade County, Water & Sewer Systems Revenue 0.91 3/3/04 4,600,000 4,600,000 Florida Housing Finance Agency, Buena Vista, Multi-Family 0.89 3/3/04 1,000,000 1,000,000 Florida Housing Finance Agency, Hampton Lakes, Multi-Family, LOC Credit Suisse First Boston 0.99 3/3/04 2,000,000 2,000,000 Florida Housing Finance Agency, Multi-Family, LOC Credit Suisse First Boston 0.99 3/3/04 2,400,000 2,400,000 Florida Housing Finance Corp., Charleston, Series I-A, Multi-Family Revenue 0.95 3/4/04 2,375,000 2,375,000 Florida Housing Finance Corp., Cypress Lake, Multi-Family Revenue 0.95 3/4/04 3,500,000 3,500,000 Florida State Municipal Power Agency Revenue, Stanton Project 0.94 3/3/04 1,000,000 1,000,000 Florida Gulf Coast University Financing Corp., LOC Wachovia Bank N.A 0.96 3/4/04 2,250,000 2,250,000 Halifax Hospital Medical Center, Health Care Facilities Revenue 1.00 3/3/04 1,200,000 1,200,000 Jacksonville Health Facilities Authority Hospital Revenue 0.95 3/3/04 2,600,000 2,600,000 Lakeland Energy Systems Revenue 0.95 3/3/04 8,000,000 8,000,000 Palm Beach County Revenue, Norton Gallery, Inc. Project 0.95 3/3/04 4,000,000 4,000,000 Polk County School Board COP 0.92 3/4/04 2,000,000 2,000,000 Port Orange Palmer College Project Revenue 0.95 3/4/04 6,500,000 6,500,000 St. Johns County HFA Multi-Family 0.95 3/3/04 7,600,000 7,600,000 Tampa Health Care Facilities Revenue (Adj-Lifelink Foundation, Inc. Project) 0.95 3/3/04 1,600,000 1,600,000 University North Florida Foundation Income Revenue 0.99 3/4/04 1,800,000 1,800,000 Volusia County Health Facilities Authority Revenue 0.96 3/4/04 1,700,000 1,700,000 ----------- 70,675,000 -----------
See notes to financial statements. 12 VALIANT TAX-EXEMPT MONEY MARKET PORTFOLIO Schedule of Portfolio Investments February 29, 2004 (unaudited)
MATURITY PRINCIPAL RATE DATE AMOUNT VALUE ---- -------- ----------- ------------ MASSACHUSETTS - 0.7% Massachusetts State Central Artery, Series A 0.99% 3/4/04 $ 1,000,000 $ 1,000,000 ------------ MICHIGAN - 0.9% Macomb County Hospital Finance Authority Revenue 0.98 3/5/04 1,345,000 1,345,000 ------------ MISSISSIPPI - 3.4% Jackson County Chevron USA, Inc. Project, Port Facility Revenue 0.99 3/4/04 5,000,000 5,000,000 ------------ NEW YORK - 4.8% Puttable Floating Option Tax-Exempt Receipts(a) 0.95 6/17/04 2,625,000 2,625,000 New York State Energy Research & Development Authority PCR 0.95 3/5/04 4,400,000 4,400,000 ------------ 7,025,000 PENNSYLVANIA - 1.2% Delaware County Industrial Development Authority PCR, LOC Bank One N.A 0.97 4/5/04 1,700,000 1,700,000 ------------ PUERTO RICO - 5.3% Commonwealth of Puerto Rico 0.95 5/26/04 6,295,000 6,295,000 Commonwealth Infrastructure Financing Authority 0.93 3/4/04 1,495,000 1,495,000 ------------ 7,790,000 ------------ TEXAS - 0.7% Angelina & Neches River Authority Solid Waste Revenue, Series C 0.99 3/5/04 1,000,000 1,000,000 ------------ UTAH - 2.1% Intermountain Power Supply Revenue, Series F(a) 0.90 3/15/04 3,000,000 3,000,000 ------------ TOTAL VARIABLE MUNICIPAL BONDS (AMORTIZED COST $107,335,000) 1 07,335,000 ------------ TOTAL INVESTMENTS (AMORTIZED COST $146,590,278) (b) - 100.5% 1 46,590,278 LIABILITIES IN EXCESS OF OTHER ASSETS - 0.5% (796,971) ------------ TOTAL NET ASSETS - 100% $ 45,793,307 ============
- ----------------- * Variable rate investment. Securities payable on demand at par including accrued interest (usually within seven days notice) and unconditionally secured as to principal and interest by letters of credit or other credit support agreements from major banks. The interest rates are adjustable and are based on bank prime rates or other interest rate adjustment indeces. The rate shown represents the rate in effect at February 29, 2004. The maturity date shown reflects next rate change date. (a) These instruments are payable on demand and are secured by letters of credit or other credit support agreements from major banks. (b) Cost and value for federal income tax and financial reporting purposes are the same. COP - Certificates of Participation HFA - Housing Finance Authority IDR - Industrial Development Revenue LOC - Letter of Credit PCR - Pollution Control Revenue TAN - Tax Anticipation Note See notes to financial statements. 13 THE VALIANT FUND TAX-EXEMPT MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 (UNAUDITED) ASSETS: Investments, at value $ 146,590,278 Receivables: Interest 223,461 --------------- TOTAL ASSETS 146,813,739 --------------- LIABILITIES: Payables: Due to custodian $ 918,980 Dividends 83,536 Accrued expenses and other liabilities: Investment manager 17,557 Distribution and shareholder servicing 359 --------------- TOTAL LIABILITIES 1,020,432 --------------- NET ASSETS $ 145,793,307 =============== COMPOSITION OF NET ASSETS: Capital $ 145,906,983 Accumulated net realized loss from investment transactions (113,676) --------------- NET ASSETS $ 145,793,307 =============== Class A Shares Net Assets $ 135,036,663 Shares outstanding 135,183,910 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 =============== Class B Shares Net Assets $ 10,756,644 Shares outstanding 10,756,644 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ===============
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2004 (UNAUDITED) INVESTMENT INCOME: Interest $ 872,394 ----------- TOTAL INVESTMENT INCOME 872,394 EXPENSES: Investment manager $ 173,932 Distribution and shareholder servicing: Class A Shares 302,720 Class B Shares 503 ----------- Total expenses before contractual fee reimbursements 477,155 Contractual fee waivers and expense reimbursements (302,864) ----------- NET EXPENSES 174,291 ----------- NET INVESTMENT INCOME 698,103 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 698,103 ===========
See notes to financial statements. 14 THE VALIANT FUND TAX-EXEMPT MONEY MARKET PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2004 YEAR ENDED (UNAUDITED) AUGUST 31, 2003 ----------------- ----------------- INVESTMENT ACTIVITIES: OPERATIONS: Net investment income $ 698,103 $ 1,954,685 ----------------- ----------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 698,103 1,954,685 ----------------- ----------------- DIVIDENDS: Net investment income: Class A Shares (697,355) (1,953,468) Class B Shares (748) - Class D Shares - (1,217) ----------------- ----------------- TOTAL DIVIDENDS TO SHAREHOLDERS (698,103) (1,954,685) ----------------- ----------------- INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS 3,274,268 (32,299,508) ----------------- ----------------- NET INCREASE IN NET ASSETS 3,274,268 (32,299,508) NET ASSETS: Beginning of period 142,519,039 174,818,547 ----------------- ----------------- End of period $ 145,793,307 $ 142,519,039 ================= =================
See notes to financial statements. 15 THE VALIANT FUND TAX-EXEMPT MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED AUGUST 31, FEBRUARY 29, 2004 --------------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 ----------------- --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ------------ --------- --------- --------- --------- --------- INVESTMENT ACTIVITIES Net investment income 0.004 0.014 0.015 0.03 0.04 0.03 Net realized gain (loss) from investment transactions 0.000 ** 0.000 ** 0.000 ** (0.00) * (0.00) * 0.00 * ------------ --------- --------- --------- --------- --------- Total from investment activities 0.004 0.014 0.015 0.03 0.04 0.03 ------------ --------- --------- --------- --------- --------- DIVIDENDS Net investment income (0.004) (0.014) (0.015) (0.03) (0.04) (0.03) ------------ --------- --------- --------- --------- --------- Total dividends (0.004) (0.014) (0.015) (0.03) (0.04) (0.03) ------------ --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ============ ========= ========= ========= ========= ========= TOTAL RETURN 0.40% 1.03% 1.49% 3.42% 3.67% 3.01% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 135,037 $ 142,519 $ 174,104 $ 141,464 $ 207,183 $ 288,343 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55%(b) 0.55% 0.55% 0.55% 0.55% 0.55% Ratio of expenses to average net assets 0.20%(b) 0.20% 0.20% 0.20% 0.20% 0.20% Ratio of net investment income to average net assets 0.81%(b) 1.02% 1.47% 3.39% 3.57% 2.96%
FINANCIAL HIGHLIGHTS, CLASS B SHARES
FOR THE PERIOD FEBRUARY 25, 2004(c) THROUGH FEBRUARY 29, 2004 (c) ---------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 ------------- INVESTMENT ACTIVITIES Net investment income 0.000 ** Net realized gain (loss) from investment transactions 0.000 ** ------------- Total from investment activities 0.000 ------------- DIVIDENDS Net investment income (0.000) ** ------------- Total dividends (0.000) ------------- NET ASSET VALUE, END OF PERIOD $ 1.000 ============= TOTAL RETURN 0.01% RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 10,757 Ratio of expenses to average net assets, before fee waivers and / or expense reimbursements 0.55% (b) Ratio of expenses to average net assets 0.45% (b) Ratio of net investment income to average net assets 0.52% (b)
* Less than $0.001 per share. ** Less than $0.005 per share. (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends. Total returns for periods less than one full year are not annualized. (b) Annualized. (c) Commencement of share class. See notes to financial statements. 16 THE VALIANT FUND U.S. TREASURY INCOME PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 2004 ASSETS: Cash $ 985 ---------- TOTAL ASSETS 985 LIABILITIES: Accrued expenses and other liabilities: Investment manager $ 364 ---------- TOTAL LIABILITIES 364 ---------- NET ASSETS $ 621 ========== COMPOSITION OF NET ASSETS: Capital $ 622 Undistributed net investment income 84 Accumulated net realized loss from investment transactions (85) ---------- NET ASSETS $ 621 ========== Class A Shares Net Assets $ 621 Shares outstanding 622 Net Asset Value, Offering Price and Redemption Price per share $ 1.00 ==========
See notes to financial statements. 17 THE VALIANT FUND U.S. TREASURY INCOME PORTFOLIO STATEMENTS OF CHANGES IN NET ASSETS
FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 2004 (a) AUGUST 31, 2003 (b) --------------------- ------------------- INVESTMENT ACTIVITIES: OPERATIONS: Net investment income - - --------------------- ------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS - - --------------------- ------------------- DIVIDENDS: Net investment income - - --------------------- ------------------- INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS - - --------------------- ------------------- NET INCREASE IN NET ASSETS NET ASSETS Beginning of period 621 621 --------------------- ------------------- End of year $ 621 $ 621 ===================== ===================
(a) The Portfolio did not operate during the six months ended February 29, 2004. (b) The Portfolio did not operate during the year ended August 31, 2003. See notes to financial statements. 18 THE VALIANT FUND U.S. TREASURY INCOME PORTFOLIO FINANCIAL HIGHLIGHTS, CLASS A SHARES
FOR THE FOR THE YEARS ENDED SIX MONTHS ENDED ------------------------------------------------------------- FEBRUARY 29,2004(a) 2003 (b) 2002 (c) 2001 (d) 2000 (e) 1999 (f) ------------------- --------- --------- --------- --------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 --------- --------- --------- --------- --------- --------- INVESTMENT ACTIVITIES Net investment income - - - 0.01 0.01 0.00 * Net realized gain from investment transactions - - - - - - --------- --------- --------- --------- --------- --------- Total from investment activities - - - 0.01 0.01 0.00 * --------- --------- --------- --------- --------- --------- DIVIDENDS Net investment income - - - (0.01) (0.01) (0.00) * --------- --------- --------- --------- --------- --------- Total dividends - - - (0.01) (0.01) (0.00) * --------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.00 $ 1.00 $ 1.00 ========= ========= ========= ========= ========= ========= TOTAL RETURN - - - 0.68%(g) 0.51%(g) 0.40%(g) RATIOS/SUPPLEMENTARY DATA: Net Assets at end of period (000) $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 Ratio of expenses to average net assets - - - 0.20%(h) 0.20%(h) 0.20%(h) Ratio of net investment income to average net assets - - - 5.11%(h) 4.21%(h) 3.69%(h)
* Less than $0.005 per share. (a) The Portfolio did not operate during the six months ended February 29, 2004. (b) The Portfolio did not operate during the year ended August 31, 2003. (c) The Portfolio did not operate during the year ended August 31, 2002. (d) The Portfolio operated from December 6, 2000 to January 24, 2001. (e) The Portfolio operated from December 7, 1999 to January 19, 2000. (f) The Portfolio operated from December 14, 1998 to January 22, 1999. (g) Not Annualized. (h) Annualized. See notes to financial statements. 19 THE VALIANT FUND NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2004 1. ORGANIZATION: The U.S. Treasury Money Market Portfolio, General Money Market Portfolio and Tax-Exempt Money Market Portfolio (referred to individually as a "Portfolio" and collectively as the "Portfolios") are separate portfolios of The Valiant Fund. The Valiant Fund (the "Trust") is a Massachusetts business trust, organized on January 29, 1993 and is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is authorized to offer five classes of shares: Class A, Class B, Class C (has not commenced operations), Class D and Class E. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. SECURITY VALUATION: Investments of the Portfolios are valued at amortized cost, which approximates value. Under the amortized cost method, discount or premium, if any, is accreted or amortized, respectively, on a straight-line basis to the maturity of the security. SECURITIES TRANSACTIONS AND RELATED INCOME: Securities transactions are recorded on trade date. Security gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of a premium or a discount. REPURCHASE AGREEMENTS: Each Portfolio may enter into repurchase agreements with an entity whose creditworthiness has been reviewed and found satisfactory by the Portfolios' Sub-Advisor, Reich & Tang Asset Management L.P. The repurchase price generally equals the price paid by a Portfolio plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Portfolios' custodian, either physically or in book entry form. EXPENSE ALLOCATION: Expenses directly attributable to a Portfolio are charged to that Portfolio. Trust expenses are allocated proportionately among each Portfolio within the Trust in relation to the net assets of each Portfolio or another reasonable basis. Expenses specific to a class are charged to that class. DIVIDENDS TO SHAREHOLDERS: The Portfolios' declare all net investment income daily as dividends to their shareholders and distribute such dividends monthly. Additional dividends are also paid to the Portfolios' shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net realized gains of registered investment companies. 20 THE VALIANT FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2004 The amount of dividends from net investment income and net realized gains are determined in accordance with U.S. income tax regulations, which may differ from the U.S. generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified among the components of net assets; temporary differences do not require reclassification. FEDERAL TAXES: Each Portfolio is a separate taxable entity for federal tax purposes. Each Portfolio has qualified and intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and distribute substantially all of its taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income excise tax is required. 3. RELATED PARTY TRANSACTIONS: INVESTMENT ADVISER: Integrity Management & Research, Inc. (the "Manager"), a wholly owned subsidiary of Integrity Investments, Inc., serves as the Investment Adviser to the Trust. The Trust pays the Manager a fee, computed daily and paid monthly, at the annual rate of 0.20% of the average daily net assets of each Portfolio. Under terms of the Management Agreement, all expenses incurred by the Portfolios are paid directly by the Manager, except for distribution and shareholder servicing fees, Trustee fees and other miscellaneous non-recurring fees. DISTRIBUTION AND SHAREHOLDER SERVICING PLAN: Integrity Investments, Inc. (the "Distributor"), an affiliate of the manager, acts as exclusive distributor of the Trust's shares. The Trust has adopted distribution and shareholder servicing plans for each class of shares offered (together, the "Plans") pursuant to Rule 12b-1 of the 1940 Act. For its services, the Distributor is authorized to receive a fee, computed daily and paid monthly, based on the average daily net assets of each class, at the following annual percentage rates:
CLASS FEE RATE ----- -------- Class A Shares 0.35% Class B Shares 0.35 Class C Shares 0.65 Class D Shares 0.50 Class E Shares 0.80
EXPENSE LIMITATIONS: The Portfolios' Adviser and Distributor have contractually agreed to reimburse expenses and waive certain distribution fees necessary to limit total expenses to the following rates until December 31, 2003:
DISTRIBUTION AND CLASS SERVICING FEES WAIVER EXPENSE LIMITATION ----- --------------------- ------------------ Class A Shares 0.35% 0.20% Class B Shares 0.10 0.45 Class C Shares 0.00 0.85 Class D Shares 0.00 0.70 Class E Shares 0.00 1.00
21 THE VALIANT FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2004 FEE REIMBURSEMENTS: Expenses reimbursed and fees waived by the Adviser and Distributor are set forth on each Portfolio's Statement of Operations. 4. CAPITAL SHARE TRANSACTIONS: Each class is authorized to issue an unlimited number of shares with no par value. Transactions in capital and shares of beneficial interest by class for the Portfolios for the six months ended February 29, 2004 and year ended August 31,2003 are listed below (amounts represent shares and dollars):
U.S. TREASURY MONEY MARKET GENERAL MONEY MARKET TAX-EXEMPT MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO ---------------------------------- ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 29, 2004 YEAR ENDED FEBRUARY, 29,2004 YEAR ENDED FEBRUARY 29, 2004 YEAR ENDED (UNAUDITED) AUGUST 31, 2003 (UNAUDITED) AUGUST 31, 2003 (UNAUDITED) AUGUST 31, 2003 ---------------------------------- ---------------------------------- ---------------------------------- SHARE TRANSACTIONS: CLASS A SHARES: Issued 5,117,416 12,459,045 1,354,423,,494 2,785,649,642 409,809,752 642,984,337 Reinvested 24 86 190 23,362 4 11 Redeemed (11,107,978) (12,558,975) (1,341,716,653) (2,778,968,659) (417,292,132) (674,568,798) --------------------------------- --------------------------------- -------------------------------- Net increase (decrease) in Class A Shares (5,990,538) (99,844) 12,707,031 6,704,345 (7,482,376) (31,584,450) --------------------------------- --------------------------------- -------------------------------- CLASS B SHARES: Issued 221,440,849 1,092,082,247 21,354,849 39,818,413 10,756,644 - 22,963 2,061 - - - - Redeemed (206,048,273) (1,111,710,396) (29,959,786) (44,917,766) - - --------------------------------- --------------------------------- -------------------------------- Net increase (decrease) in Class B Shares 15,415,539 (19,626,088) (8,604,937) (5,099,353) 10,756,644 - --------------------------------- --------------------------------- -------------------------------- CLASS D SHARES: Issued 391,112,080 981,056,095 29,158,099 210,163,036 - 1,500,791 Reinvested - - 7,008 102,115 - - Redeemed (414,859,728) (1,020,736,681) (36,958,275) (175,979,968) - (2,215,849) --------------------------------- --------------------------------- -------------------------------- Net increase (decrease) in Class D Shares (23,747,648) (39,680,586) (7,793,168) 34,285,183 - (715,058) --------------------------------- --------------------------------- -------------------------------- CLASS E SHARES: Issued 95,130,413 1,661,501,323 33,578,731 132,955,657 - - Reinvested - 5 - 6 - - Redeemed (96,340,169) (1,738,350,766) (44,145,512) (158,699,611) - - --------------------------------- --------------------------------- -------------------------------- Net increase (decrease) in Class E Shares (1,209,756) (76,849,438) (10,566,781) (25,743,948) - - --------------------------------- --------------------------------- -------------------------------- NET INCREASE (DECREASE) IN SHARE TRANSACTIONS (15,532,403) (136,255,956) (14,257,855) 10,146,227 3,274,268 (32,299,508) ================================= ================================= ================================
22 THE VALIANT FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2004 5. CONCENTRATION OF CREDIT RISK: As of February 29, 2004, approximately 65.4% of the Tax-Exempt Money Market Portfolio was invested in obligations of political subdivisions of the State of Florida and, accordingly, is subject to the credit risk associated with the non-performance of such issuers. Approximately 50% of these investments are further secured, as to principal and interest, by credit enhancements such as letters of credit, municipal bond insurance, and guarantees issued by financial institutions. 6. FEDERAL TAX INFORMATION: All of the dividends paid for the six months ended February, 29, 2004 and the year ended August 31, 2003 by the General Money Market Portfolio and the U.S. Treasury Money Market Portfolio are ordinary income for federal income tax purposes. During the six months ended February 29, 2004 and fiscal year ended August 31, 2003, all of the distributions paid by the Tax-Exempt Money Market Portfolio have been designated tax-exempt income distributions. Undistributed net investment income differs from financial statement and tax purposes primarily due to the timing of dividend payments. For federal income tax purposes, the following Portfolios have capital loss carryforwards as of August 31, 2003, which are available to offset future realized gains, if any:
NAME AMOUNT EXPIRES - -------------------------- ------------ ------- U.S. Treasury Money Market $ 230,225 2008 21,859 2009 ------------ $ 252,084 ============ General Money Market $ 29,268 2005 51,799 2008 ------------ $ 81,067 ============ Tax-Exempt Money Market $ 54,799 2004 1,943 2005 12,059 2006 2,545 2008 42,330 2009 ------------ $ 113,676 ============
23 MANAGEMENT OF THE TRUST The trustees and officers of the Trust and their principal occupations during the past five years are as follows: RICHARD F. CURCIO PRESIDENT, TRUSTEE, CHAIRMAN OF THE BOARD Founded Integrity Investments, Inc. (a broker/dealer) and Integrity Management & Research, Inc.(an investment adviser) in 1992, and is currently President and Director of each. Senior Vice President/Regional Manager for Fidelity Institutional Services Company from 1987 to 1992. Associated with Fidelity Distributors from 1979 to 1992. JOHN S. CULBERTSON TRUSTEE Retired. Trust Consultant with Fidelity Investments Institutional Services Co. from 1990 to 1993. RUFUS C. CUSHMAN JR. TRUSTEE Retired. Money Manager with Fidelity Management & Research Corp. From 1968 through 1994. H. WILLIS DAY TRUSTEE Retired. Former Senior Vice President of Southeast Bank, FLA, N.A. ROGER F. DUMAS TRUSTEE Private investor since 1987. KENNETH J. PHELPS TRUSTEE President, Principal and Director of Reliance Trust Company, Atlanta, GA since 1992. Chairman, Chief Executive Officer and Director, C&S/Sovran Trust Company, Inc. from 1987 to 1992. DENIS R. CURCIO VICE PRESIDENT, SECRETARY AND TREASURER Mr. Curcio joined Integrity Investments, Inc. the distributor of The Valiant Fund in June of 1998 after graduating from Jacksonville University with a BS in Finance. Aged 27, Denis is responsible for oversight and administration of The Valiant Fund. 24 BRENDEN R. CURCIO VICE PRESIDENT Mr. Curcio joined Integrity Investments, Inc., the distributor of The Valiant Fund in June of 1994 after graduating from Stetson University with a BBA in Finance. Aged 31, Brenden is responsible for institutional sales of The Valiant Fund in the Northeast and Midwest. 25 Insert a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).] ITEM 2. CODE OF ETHICS. Not applicable with semi annual filing.. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable with semi annual filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable with semi annual filing. ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable with semi annual filing. ITEM 8. [RESERVED] ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS: NONE ITEM 10. CONTROLS AND PROCEDURES. a) The President and Treasurer of the registrant have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) within 90 days from the date hereof. Based on that evaluation, they have concluded that the registrant's disclosure controls and procedures were effective. b) There has been no change in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's last fiscal half-year that has materially affected, or is likely to materially affect, the registrant's internal control over financial reporting. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) The Valiant Fund ------------------------------------------------------------------- By (Signature and Title) /s/ Richard F. Curcio ------------------------------------------------------- Richard F. Curcio, Chairman of the Board and President Date 2/29/04 --------------------------------------------------------------------------- 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/ Richard F. Curcio ------------------------------------------------------- Richard F. Curcio, Chairman of the Board and President Date 2/29/04 --------------------------------------------------------------------------- By (Signature and Title) /s/ Denis R. Curcio ------------------------------------------------------- Denis R. Curcio, Treasurer Date 2/29/04 --------------------------------------------------------------------------- EX-99.CERT 2 y96724exv99wcert.txt CERTIFICATIONS EX.-10(b)(i) CERTIFICATIONS I, Richard F. Curcio, certify that: 1) I have reviewed this report on Form N-CSR of The Valiant Fund; 2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Paragraph (b) is not required until the first annual report is filed on Form N-CSR for the fiscal year ending on or after June 30, 2004. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5) The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 2/29/04 /s/ Richard F. Curcio ------------------------------------------ Richard F. Curcio President, Chairman of the Board EX.-10(b)(ii) CERTIFICATION I, Denis R. Curcio, certify that: 1) I have reviewed this report on Form N-CSR of The Valiant Fund; 2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Paragraph (b) is not required until the first annual report is filed on Form N-CSR for the fiscal year ending on or after June 30, 2004. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5) The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 2/29/04 /s/ Denis R. Curcio ------------------------------------------ Denis R. Curcio Treasurer EX-99.906CERT 3 y96724exv99w906cert.txt CERTIFICATIONS EX. -99.9906CERT(i) CERTIFICATIONS I, Richard F. Curcio, Chairman of the Board and President of The Valiant Fund,. (the "Registrant"), certify to the best of my knowledge: (1) The Form N-CSR of Registrant (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 Registrant. Date: 2/29/04 /s/ Richard F. Curcio --------------------------------------- Richard F. Curcio Chairman of the Board and President EX. -99.9906CERT(ii) CERTIFICATIONS I, Denis R. Curcio, Treasurer of The Valiant Fund (the "Registrant"), certify to the best of my knowledge: (1) The Form N-CSR of Registrant (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 Registrant. Date: 2/29/04 /s/ Denis R. Curcio ------------------------------------------- Denis R. Curcio Treasurer -----END PRIVACY-ENHANCED MESSAGE-----