-----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, HlxyT+yDECRNiNTowMH0qxxRJsDgLwrs33ZyhRdZyNZ77sMfpvIuNtsKGv3Syk6V a5NoOWFWSRaxusUntfD4oQ== 0001036050-00-000370.txt : 20000320 0001036050-00-000370.hdr.sgml : 20000320 ACCESSION NUMBER: 0001036050-00-000370 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000317 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TIMOTHY PLAN CENTRAL INDEX KEY: 0000916490 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 597016828 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08228 FILM NUMBER: 572242 BUSINESS ADDRESS: STREET 1: 1304 W FAIRBANKS AVE CITY: WINTER PARK STATE: FL ZIP: 32789 BUSINESS PHONE: 4076441986 MAIL ADDRESS: STREET 1: 1304 W FAIRBANKS AVE CITY: WINTER PARK STATE: FL ZIP: 32789 N-30D 1 TIMOTHY PLAN ANNUAL REPORT REPORT TO SHAREHOLDERS December 31, 1999 ARTHUR D. ALLY - -------------------------------------------------------------------------------- Dear Shareholder: The year 1999 was certainly an eventful one for us. Our original fund, the Timothy Plan, was renamed the Timothy Plan Small Cap Value Fund as we added three new funds to our family on July 1st: a Large/Mid Cap Value Fund, a Fixed Income Fund, and a Money Market Fund. I am pleased to report that each of the firms we selected to manage these funds have well-established histories in the money management industry and meet or even exceed the stringent quality standards we have set for each of our funds. As you review each manager's report in this document, I believe you will come to understand that, over the past five years, we have experienced one of the most unusual markets in recent history. As you probably know, both the small cap and the value segments of the market were nearly ignored over that period. In fact, our small cap value fund was actually down in 1998, a condition that continued through part of 1999. I am pleased to report that the trend apparently reversed itself in November and we closed the year of 1999 in pretty strong fashion. We expect this to continue in the year 2000 and beyond; however, since no human being (even us) can predict the future, this expectation must not be misconstrued as a guarantee of future performance. Isn't it interesting to see how we get drawn into speaking, writing, and even acting according to the world's standards? Here I have been primarily addressing performance while we believe, especially with the quality of our money management firms, that performance will take care of itself. The thing that sets Timothy apart is our commitment to applying biblical principles to our investing philosophy. Our culture is experiencing moral meltdown and, in a number of cases, certain corporations are either directly involved or indirectly funding this disintegration of our foundational Judeo-Christian principles. Timothy's unchanging commitment is that we will not invest any of our shareholders' money in such companies! We believe our Lord is far more concerned with this kind of obedience than He is with investment returns. Please do not misunderstand, we are committed to achieving competitive investment returns but let's all agree to keep our priorities straight. Thank you for being a faithful member of the growing Timothy Plan family. Sincerely, /s/ Arthur D. Ally Arthur D. Ally President THE TIMOTHY PLAN small-cap value fund Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 3 INVESTMENT UPDATE December 31, 1999 SMALL-CAP VALUE FUND - -------------------------------------------------------------------------------- The Timothy Small-Cap Value Fund finished 1999 with good momentum and the year as a whole ended up being productive for our clients, as we improved our position vis a vis earlier in the year. Looking to 2000, we are humbly confident that we should be able to provide good absolute and risk-adjusted return for Timothy: 1. Our research team is stronger than ever and is performing well. 2. The environment surrounding the equity markets remains stable: A strong economy, growing profits, stable inflation, tolerable interest rates and high demand for equities matrixed against a shrinking pool of available equities in which to invest. 3. The markets have been broadening out since March 1999. 1998 and early 1999 were dominated by a small number of high momentum stocks; while these issues have continued to do well, investor interest has become more broad-based. 4. The portfolios are filled with companies showing good earning growth, which sell at moderate valuations. In terms of risks to the portfolios: 1. Interest rates have been rising. They must stabilize in early 2000 to sustain additional gains in the prices of many securities. 2. A small number of stocks that have dominated investor interest over the last few years are no longer cheaply valued. Any correction in the prices of these issues must be watched to monitor any impact on the prices of other sectors. We will continue to work hard for Timothy in 2000. The valuations of our stocks are attractive and the prices have demonstrated positive momentum. This combination should benefit the Fund. We are off to a good start and we will work hard to make further progress in growing the fund. James D. Awad Awad Asset Management, Inc. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 4 SCHEDULE OF INVESTMENTS As of December 31, 1999
COMMON STOCKS - 85.40% - -------------------------------------------------------------------------------- number of shares market value - -------------------------------------------------------------------------------- BANKS - 3.24% 20,000 Capital Crossing Bank *......................... $ 250,000 20,000 North Fork Bancorp.............................. 347,500 17,000 Staten Island Bancorp, Inc...................... 306,000 ---------- 903,500 ---------- BROADCASTING - 2.19% 20,000 American Tower Corp, Class A *.................. 611,250 ---------- COMPUTER HARDWARE - 1.25% 50,000 Quantum Corp-Hard Disk Drive Group *............ 346,875 ---------- COMPONENTS - 1.93% 20,000 Kaydon Corp..................................... 536,250 ---------- COMPUTER SERVICES AND SOFTWARE - 7.59% 21,900 Comdisco, Inc................................... 815,775 35,000 New Horizons Worldwide, Inc. *.................. 415,625 28,000 Sterling Software, Inc. *....................... 882,000 ---------- 2,113,400 ---------- COMPUTER SYSTEMS - 2.52% 17,000 Silicon Storage *............................... 701,250 ---------- COMMERCIAL SERVICES - 10.59% 31,000 Cunningham Graphics Intl, Inc. *................ 432,062 69,500 Health Mgmt. Systems Inc. *..................... 438,719 20,000 Iron Mountain *................................. 786,250 15,000 Nova Corp/Georgia *............................. 473,438 4,000 StarTek, Inc. *................................. 145,000 20,000 Teletech *...................................... 674,062 ---------- 2,949,531 ---------- CONSULTING SERVICES - 0.74% 6,500 BARRA, Inc. *................................... 206,375 ---------- ELECTRONIC EQUIPMENT - 6.06% 16,000 C-Cube Microsystems *........................... 996,000 15,000 Research in Motion *............................ 692,813 ---------- 1,688,812 ----------
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 5 SCHEDULE OF INVESTMENTS As of December 31, 1999
COMMON STOCKS - 85.40% (cont.) - -------------------------------------------------------------------------------- number of shares market value - -------------------------------------------------------------------------------- FINANCIAL SERVICES - 6.51% 53,900 Doral Financial Corp.......................... $ 663,644 25,000 Investor's Financial Services Corp............ 1,150,000 ---------- 1,813,644 ---------- FOOD & BEVERAGE - 6.13% 23,000 Corn Products Intl............................ 753,250 24,000 Smithfield Foods, Inc. *...................... 576,000 23,200 Smucker (J.M.) Co. Class B.................... 377,000 ---------- 1,706,250 ---------- HEALTHCARE SERVICES - 3.36% 31,325 Eclypsys Corp. *.............................. 802,703 15,800 LTC Properties, Inc........................... 133,312 ---------- 936,015 ---------- INSURANCE - 3.53% 20,000 Annuity and Life Reinsurance (HLDGS) Ltd...... 522,500 25,000 Presidential Life Corp........................ 459,375 ---------- 981,875 ---------- INTERNET SERVICES - 1.56% 29,000 Audible, Inc. *............................... 435,000 ---------- INVESTMENT SERVICES - 3.10% 30,000 Investment Technology Group................... 862,500 ---------- MACHINERY, GENERAL INDUSTRIAL - 1.47% 7,000 Zebra Tech Class A*........................... 409,500 ---------- MEDICAL PRODUCTS - 4.76% 10,000 Beckman Coulter, Inc.......................... 508,750 27,100 Cooper Co..................................... 816,388 ---------- 1,325,138 ---------- PHARMECEUTICAL - 2.16% 20,000 Emisphere Technologies, Inc. *................ 601,250 ---------- PRINTING - 1.49% 18,300 Printronix, Inc.*............................. 416,325 ----------
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 6 SCHEDULE OF INVESTMENTS As of December 31, 1999
COMMON STOCKS - 85.40% (cont.) - ---------------------------------------------------------------------------------------------- number of shares market value - ---------------------------------------------------------------------------------------------- PUBLISHING - 8.01% 15,500 Houghton Mifflin Co......................................... $ 653,906 35,000 Penton Media, Inc........................................... 840,000 44,000 Wiley (John) & Sons, Inc. Class A........................... 737,000 ----------- 2,230,906 ----------- RETAIL STORES - 3.15% 60,000 Bradlees Inc. *............................................. 510,000 35,000 Shoe Carnival *............................................. 352,188 6,000 U.S. Vision *............................................... 15,375 ----------- 877,563 ----------- SEMI CONDUCTORS - 4.06% 35,000 LTX Corp. *................................................. 783,125 30,000 S3 Incorporated *........................................... 346,875 ----------- 1,130,000 ----------- Total Common Stocks (cost $18,251,421)...................... $23,783,209 ----------- WARRANTS - 0.00% 53 Morrison Knuesen............................................ 123 ----------- BONDS - 1.29% 500,000 American Retirement Corp (5.75%, 10/01/2002 - cost $512,275) 360,000 ----------- SHORT-TERM INVESTMENTS - 12.40% 3,452,175 Firstar Bank Treasury Fund (cost $3,452,175)................ 3,452,175 ----------- TOTAL INVESTMENTS - 99.09% (identified cost $22,215,871).... $27,595,507 ----------- OTHER ASSETS AND LIABILITIES, NET - 0.91%................... 252,418 NET ASSETS - 100%........................................... $27,847,925 ===========
* Non-income producing securities. The accompanying notes are an integral part of these financial statements. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 7 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
ASSETS - ------------------------------------------------------------------------------------------------------------------------------- amount - ------------------------------------------------------------------------------------------------------------------------------- Investments in Securities at Market at Value (identified cost $22,215,871) [NOTE 1]........................ $27,595,507 Cash....................................................................................................... 84,947 Receivables: Interest................................................................................................. 28,523 Dividends................................................................................................ 7,709 Fund Shares Sold......................................................................................... 12,031 Due from Advisor......................................................................................... 153,489 Other.................................................................................................... 111 Other Assets............................................................................................... 60,895 Capital Stock Sold......................................................................................... 28,252 ----------- Total Assets............................................................................................... $27,971,464 =========== LIABILITIES - ------------------------------------------------------------------------------------------------------------------------------- amount - ------------------------------------------------------------------------------------------------------------------------------- Payable for Shares Purchased............................................................................... 47,249 Accrued Expenses........................................................................................... 61,475 Accrued Service Fee........................................................................................ 1,682 Other Payable.............................................................................................. 13,133 ----------- Total Liabilities.......................................................................................... $ 123,539 =========== NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------- amount - ------------------------------------------------------------------------------------------------------------------------------- Class A Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 1,091,427 shares outstanding).. 13,376,897 Net Asset Value and Redemption Price Per Class A Share ($13,376,897/1,091,427 shares).................... 12.26 Offering Price Per Share ($12.26/0.945).................................................................. 12.97 Class B Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 1,207,799 shares outstanding).. 14,350,941 Net Asset Value and Offering Price Per Class B Share ($14,350,941/1,207,799 shares)...................... 11.88 Redemption Price Per Share ($11.88 x 0.95)............................................................... 11.29 Class C Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 11,184 shares outstanding)..... 120,087 Net Asset Value and Offering Price Per Class C Share ($120,087/11,184 shares)............................ 10.74 Net Assets................................................................................................. $27,847,925 =========== SOURCES OF NET ASSETS - ------------------------------------------------------------------------------------------------------------------------------- amount - ------------------------------------------------------------------------------------------------------------------------------- At December 31, 1999, Net Assets Consisted of: Paid-in Capital.......................................................................................... 25,814,592 Net Accumulated Realized Loss on Investment.............................................................. (3,346,303) Net Unrealized Appreciation in Value of Investments...................................................... 5,379,636 ----------- Net Assets................................................................................................. $27,847,925 ===========
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 8 STATEMENT OF OPERATIONS For Year Ended December 31, 1999
INVESTMENT INCOME - -------------------------------------------------------------------------------------------------- amount - -------------------------------------------------------------------------------------------------- Interest...................................................................... $ 181,866 Dividends..................................................................... 178,418 ------------ Total Investment Income....................................................... $ 360,284 ------------ EXPENSES - -------------------------------------------------------------------------------------------------- amount - -------------------------------------------------------------------------------------------------- Investment Advisory Fees [NOTE 3]............................................. 220,068 Transfer Agent Fees (Class A=$23,335, Class B=$25,353, Class C=$166).......... 48,854 Administration Fees........................................................... 26,646 12b-1 Fees (Class A=$30,883, Class B=$100,606, Class C=$232) [NOTE 3]......... 131,721 Accounting Fees............................................................... 34,879 Registration Fees............................................................. 22,155 Custodian Fees................................................................ 6,943 Printing Expense.............................................................. 4,227 Out of Pocket Expense......................................................... 33,436 Amortization of Organization Cost [NOTE 1].................................... 2,707 Services Fees (Class A=$15,890, Class B=$17,264, Class C=$113) [NOTE 3]....... 33,267 Auditing Fees................................................................. 18,728 Insurance Expense............................................................. 7,898 Legal Expense................................................................. 26,301 Miscellaneous Expense......................................................... 25,645 ------------ Total Expenses................................................................ $ 643,475 ============ Expenses Waived and Reimbursed by Advisor [NOTE 3]............................ (129,595) ------------ Total Net Expenses............................................................ $ 513,880 ============ Net Investment Loss........................................................... $ (153,596) ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS - -------------------------------------------------------------------------------------------------- amount - -------------------------------------------------------------------------------------------------- Net Realized Loss on Investments.............................................. (2,321,822) Change in Unrealized Appreciation of Investments.............................. 5,469,363 ------------ Net Realized and Unrealized Gain (Loss) on Investments........................ 3,147,541 ============ Increase in Net Assets Resulting from Operations.............................. $ 2,993,945 ============
The accompanying notes are an integral part of these statements. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 9 STATEMENT OF CHANGES IN NET ASSETS For Years Ended December 31, 1999 and 1998
INCREASE (DECREASE) IN NET ASSETS - ------------------------------------------------------------------------------------------------------------- year ended year ended Dec. 31, 1999 Dec. 31, 1998 - ------------------------------------------------------------------------------------------------------------- Operations: Net Investment Loss........................................................... $ (153,596) $ (104,389) Net Change in Unrealized Appreciation of Investments.......................... 5,469,363 (1,805,419) Net Realized Loss on Investments.............................................. (2,321,822) (1,024,293) ----------- ----------- Increase (Decrease) in Net Assets (resulting from operations)................. 2,993,945 (2,934,101) ----------- ----------- Distributions to Shareholders: Net Capital Gains: Class A..................................................................... ----- (89,117) Class B..................................................................... ----- (98,253) Class C..................................................................... ----- ----- ----------- ----------- Total Net Decrease............................................................ ----- (187,370) ----------- ----------- Capital Share Transaction: Proceeds from Shares Sold: Class A..................................................................... 3,121,258 5,917,565 Class B..................................................................... 2,412,768 6,088,477 Class C..................................................................... 157,951 ----- Dividend Reinvested: Class A..................................................................... ----- 88,440 Class B..................................................................... ----- 92,993 Class C..................................................................... ----- ----- Cost of Shares Redeemed: Class A..................................................................... (4,460,818) (2,464,485) Class B..................................................................... (3,732,982) (1,796,707) Class C..................................................................... (45,938) ----- Increase (Decrease) in Net Assets (resulting from capital share transactions). $(2,547,761) $ 7,926,283 ----------- ----------- Total Increase in Net Assets.................................................. $ 446,184 $ 4,804,812 =========== =========== Net Assets: Beginning of Year............................................................. 27,401,741 22,596,929 End of Year................................................................... $27,847,925 $27,401,741 =========== =========== Shares of Capital Stock of the Fund Sold and Redeemed: Shares Sold: Class A..................................................................... 293,144 514,690 Class B..................................................................... 251,060 535,115 Class C..................................................................... 16,311 ----- Shares Reinvested: Class A..................................................................... ----- 8,122 Class B..................................................................... ----- 8,699 Class C..................................................................... ----- ----- Shares Redeemed: Class A..................................................................... (421,383) (217,873) Class B..................................................................... (362,823) (163,152) Class C..................................................................... (5,127) ----- ----------- ----------- Net Increase (Decrease) in Number of Shares Outstanding....................... $ (225,818) $ 685,601 =========== ===========
Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 10 FINANCIAL HIGHLIGHTS The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.
SMALL-CAP VALUE FUND - CLASS A SHARES - ------------------------------------------------------------------------------------------------------------------ year year year year year ended ended ended ended ended 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95 - ------------------------------------------------------------------------------------------------------------------ Per Share Operating Performance: Net Asset Value, Beginning................................ $ 10.89 $ 12.25 $ 11.24 $10.07 $ 9.66 Income from Investment Operations: Net Investment Income................................... (0.02) 0.01 0.02 0.10 0.11 Net Realized and Unrealized Gain (Loss) on Investments.. 1.39 (1.30) 2.37 1.17 0.66 ------- ------- ------- ------ ------ Total from Investment Operations........................ 1.37 (1.29) 2.39 1.27 0.77 ------- ------- ------- ------ ------ Less Distributions: Dividends from Realized Gains........................... ----- (0.07) (1.38) ----- (0.25) Dividends from Net Investment Income.................... ----- ----- ----- (0.10) (0.11) ------- ------- ------- ------ ------ Total Distribution...................................... ----- (0.07) (1.38) (0.10) (0.36) ------- ------- ------- ------ ------ Net Asset Value at End of Year............................ $ 12.26 $ 10.89 $ 12.25 $11.24 $10.07 ======= ======= ======= ====== ====== Total Return (A).......................................... 12.58% (10.50%) 21.35% 12.59% 7.93% Ratios/Supplemental Data: Net Assets, End of Period (in 000s)....................... $13,377 $13,287 $11,208 $7,760 $6,133 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor............. 2.22% 2.09% 2.75% 3.70% 5.84% After Reimbursement of Expenses by Advisor.............. 1.60% 1.60% 1.60% 1.60% 1.60% Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor............. (0.82%) (1.15%) (0.90%) (1.05%) (2.96%) After Reimbursement of Expenses by Advisor.............. (0.20%) (0.66%) 0.25% 1.05% 1.28% Portfolio Turnover........................................ 78.79% 69.42% 136.36% 93.08% 34.12%
(A) Total Return Calculation Does Not Reflect Sales Load. The accompanying notes are an integral part of these financial statements. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 11 FINANCIAL HIGHLIGHTS The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.
- --------------------------------------------------------------------------------------------------------------------- SMALL-CAP VALUE FUND - CLASS B SHARES year year year year year ended ended ended ended ended 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95* - ---------------------------------------------------------------------------------------------------------------------- Per Share Operating Performance: Net Asset Value, Beginning................................ $ 10.70 $ 12.13 $ 11.22 $10.08 $ 10.49 Income from Investment Operations: Net Investment Income................................... (0.11) (0.07) (0.03) 0.07 0.11 Net Realized and Unrealized Gain (Loss) on Investments.. .29 (1.29) 2.32 1.14 (0.16) ------- ------- ------- ------ -------- Total from Investment Operations........................ 1.18 (1.36) 2.29 1.21 (0.05) ------- ------- ------- ------ -------- Less Distributions: Dividends from Realized Gains........................... ----- (0.07) (1.38) ----- (0.25) Dividend from Net Investment Income..................... ----- ----- ----- (0.07) (0.11) ------- ------- ------- ------ -------- Total Distribution...................................... ----- (0.07) (1.38) (0.07) (0.36) ------- ------- ------- ------ -------- Net Asset Value at End of Period.......................... $ 11.88 $ 10.70 $ 12.13 $11.22 $ 10.08 ======= ======= ======= ====== ======== Total Return (A).......................................... 11.03% (11.18%) 20.50% 11.98% (0.46%) Ratios/Supplemental Data: Net Assets, End of Period (in 000s)....................... $14,351 $14,114 $11,389 $3,929 $ 620 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor............. 2.72% 2.84% 3.41% 4.30% 6.44% (B) After Reimbursement of Expenses by Advisor.............. 2.35% 2.35% 2.26% 2.20% 2.20% (B) Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor............. (1.34%) (1.90%) (1.56%) 1.65% 3.56% (B) After Reimbursement of Expenses by Advisor.............. (0.97%) (1.41%) (0.41%) 0.45% 0.68% (B) Portfolio Turnover........................................ 78.79% 69.42% 136.36% 93.08% 34.12%
* Class B Shares Commenced Investment Operations on August 25, 1995. (A) Total Return Calculation Does Not Reflect Redemption Fee. (B) Annualized. The accompanying notes are an integral part of these financial statements. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 12 FINANCIAL HIGHLIGHTS The table below sets forth financial data for one share of capital stock outstanding throughout each period presented.
SMALL-CAP VALUE FUND - CLASS C SHARES - ------------------------------------------------------------------------------- year ended 12/31/99 - ------------------------------------------------------------------------------- Per Share Operating Performance: Net Asset Value, Beginning................................ $10.00 Income from Investment Operations: Net Investment Income................................... 0.05 Net Realized and Unrealized Gain (Loss) on Investments.. 0.69 -------- Total from Investment Operations.......................... 0.74 -------- Less Distributions: Dividends from Realized Gains........................... ----- Dividend from Net Investment Income..................... ----- -------- Total Distribution........................................ ----- -------- Net Asset Value at End of Period.......................... $10.74 ======== Total Return.............................................. 7.40% Ratios/Supplemental Data: Net Assets, End of Period (in 000s)....................... $ 120 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor (A) 7.16% After Reimbursement of Expenses by Advisor (A) 2.35% Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor (A) (3.53%) After Reimbursement of Expenses by Advisor (A) 1.28% Portfolio Turnover 78.79%
(A) Annualized. The accompanying notes are an integral part of these financial statements. Timothy Plan Small-Cap Value Fund 1999 Annual Report - page 13 THE TIMOTHY PLAN large/mid-cap value fund Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 14 INVESTMENT UPDATE February 16, 2000 LARGE/MID-CAP VALUE FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- As we enter a new century and approach the real millennium, the market environment is one characterized by an excess of greed versus fear. Writing as long-term value investors, it is important to remember that investing is a long-distance endeavor. There are two critical parts to wealth and managing money. The first is to accumulate sufficient assets. The second is to hold on to them. Today, too many investors have lost perspective of the difficulty of maintaining wealth and the risk levels that they face. The market valuation levels of the past several years in particular have reflected an exceptionally positive backdrop for equity investment, and this has led to the emotion of greed dominating fear. Put another way, the confidence of achieving reward has overcome the uncertainty of risk. It is not surprising the four-letter words of risk and fear have seemingly disappeared from many investors' lexicon, and bonds are being thought of as confiscatory assets because they do not return 20% per year. Despite the risks of high valuations in certain sectors of the market and higher interest rates, we again find compelling values in many traditional value stocks. If anything, the supply/demand fundamentals for economically sensitive companies are better than they were at the beginning of 1999, yet the stock prices of many such companies are lower than or the same as they were a year ago. Fox intends to continue to use its head and follow its proven investment discipline, not emotion, in pursuing investment opportunities. Although the divergence of growth and value during the last two years has not been fun for a firm known for its strong performance, we continue to believe that successful investing requires intelligence and discipline and we will retain a healthy dose of skepticism. To be sure, the basic human emotions of fear and greed have not changed. There is no doubt that the current mania will end badly for those who ignore market history, and chasing fantasy valuations is not the way to preserve assets. Jim O'Mealia (for Peter Skirkanich) Fox Asset Management Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 15 SCHEDULE OF INVESTMENTS As of December 31, 1999
COMMON STOCKS - 91.51% - ----------------------------------------------------------------------------------- number of shares market value - ----------------------------------------------------------------------------------- AUTO PARTS & EQUIP - 8.93% 2,000 Dana Corp............................... $ 59,875 1,000 Genuine Parts Co........................ 24,812 1,000 TRW Corp................................ 51,938 -------- 136,625 -------- BANKS - 8.83% 1,000 Keycorp................................. 22,125 1,200 National City Corp...................... 28,425 1,200 U.S. Bancorp............................ 28,575 500 Union Planters Corp..................... 19,719 1,400 Washington Mutual Financial Services.... 36,225 -------- 135,069 -------- CHEMICALS - 13.43% 1,500 Air Products & Chemicals Inc............ 50,344 500 E I Du Pont De Nemours & Co............. 32,937 2,200 Hercules................................ 61,325 400 Praxair Inc............................. 20,125 1,000 Rohm & Haas Company..................... 40,687 -------- 205,418 -------- COMPONENTS - 2.68% 800 Parker Hannifin Corporation............. 41,050 -------- COMPUTER SERVICES AND SOFTWARE - 3.33% 400 3 Com Corp. *........................... 18,800 1,000 Keane Inc. *............................ 32,125 -------- 50,925 -------- CONTAINERS - 3.51% 2,400 Crown Cork & Seal Co Inc................ 53,700 -------- COSMETIC & TOILETRIES - 1.71% 400 Kimberly Clark Corp..................... 26,175 -------- ELECTRONIC EQUIPMENT - 7.92% 1,000 Emerson Electric Co..................... 57,375 2,000 Thomas & Betts Corp..................... 63,750 -------- 121,125 -------- FOOD & BEVERAGE - 7.37% 700 Best Foods.............................. 36,794 2,000 Conagra Inc............................. 45,375 1,500 Universal Foods Corp.................... 30,562 -------- 112,731 -------- INSURANCE - 5.53% 400 American General Financial Group........ 30,350 1,200 Everest Reinsurance Holdings Inc........ 26,775 800 Travelers Prop Casualty ClA............. 27,400 -------- 84,525 --------
Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 16 SCHEDULE OF INVESTMENTS As of December 31, 1999
COMMON STOCKS - 91.51% (Cont.) - ------------------------------------------------------------------------------------- number of shares market value - ------------------------------------------------------------------------------------- MACHINERY, GENERAL INDUSTRIAL - 4.56% 900 Ingersoll-Rand Company................................. $ 49,556 600 Kennametal Inc......................................... 20,175 ---------- 69,731 ---------- MEDICAL PRODUCTS - 2.37% 1,000 Abbott Labs............................................ 36,313 ---------- OIL AND GAS - 5.89% 2,500 Conoco Inc............................................. 61,875 600 Phillips Petroleum..................................... 28,200 ---------- 90,075 ---------- PIPELINES - 3.55% 1,400 El Paso Energy Corp.................................... 54,338 ---------- TELECOMMUNICATIONS - 2.77% 800 Cable & Wireless ADR................................... 42,350 ---------- TRANSPORTATION - 3.38% 1,500 CNF Energy Corp........................................ 51,750 ---------- UTILITIES - 3.95% 800 CMS Energy Corp........................................ 24,950 1,000 Texas Utilities Co..................................... 35,563 ---------- 60,513 ---------- WASTE MANAGEMENT - 1.80% 1,600 Waste Management Inc................................... 27,500 ---------- Total Common Stocks (cost $1,400,353).................. $1,399,913 ---------- SHORT-TERM INVESTMENTS - 5.42% 82,868 Firstar Bank Treasury Fund (cost $82,868).............. 82,868 ---------- TOTAL INVESTMENTS - 96.93% (identified cost $1,483,221) $1,482,781 ---------- OTHER ASSETS AND LIABILITIES, NET - 3.07%.............. 46,882 ---------- NET ASSETS - 100%...................................... $1,529,663 ==========
* Non-income producing securities. The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 17 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
ASSETS - ---------------------------------------------------------------------------------------------------------------------------- amount - ---------------------------------------------------------------------------------------------------------------------------- Investments, at Value (cost $1,483,221).................................................................... $1,482,781 Receivables: Interest................................................................................................. 508 Dividends................................................................................................ 1,775 Fund Shares Sold......................................................................................... 114,073 Due from Advisor........................................................................................... 9,299 Other Assets............................................................................................... 1,267 ---------- Total Assets............................................................................................... $1,609,703 ========== LIABILITIES - ---------------------------------------------------------------------------------------------------------------------------- amount - ---------------------------------------------------------------------------------------------------------------------------- Cash Overdraft............................................................................................. 18,226 Accrued Expenses........................................................................................... 6,825 Payables for Investments Purchased......................................................................... 42,428 Payable for Fund Shares Redeemed........................................................................... 425 Other Payable.............................................................................................. 12,136 ---------- Total Liabilities.......................................................................................... $ 80,040 ========== NET ASSETS - ---------------------------------------------------------------------------------------------------------------------------- amount - ---------------------------------------------------------------------------------------------------------------------------- Class A Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 87,406 shares outstanding)..... 845,879 Net Asset Value and Redemption Price Per Class A Share ($845,879/87,406 shares).......................... 9.68 Offering Price Per Share ($9.68 x 1.055)................................................................. 10.21 Class B Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 56,057 shares outstanding)..... 524,605 Net Asset Value and Offering Price Per Class B Share ($524,605/56,057 shares)............................ 9.36 Redemption Price Per Share ($9.36 x 0.95)................................................................ 8.89 Class C Shares: Net Assets (unlimited shares of $0.001par beneficial interest authorized; 16,331 shares outstanding)..... 159,179 Net Asset Value, Offering and Redemption Price Per Class C Share ($159,179/16,331 shares)................ 9.75 ---------- Net Assets................................................................................................. $1,529,663 ========== SOURCES OF NET ASSETS - ---------------------------------------------------------------------------------------------------------------------------- amount - ---------------------------------------------------------------------------------------------------------------------------- At December 31, 1999, Net Assets Consisted of: Paid-in Capital.......................................................................................... 1,544,734 Net Unrealized Depreciation in Value of Investments...................................................... (440) Accumulated Loss on Investments.......................................................................... (14,631) ---------- Net Assets................................................................................................. $1,529,663 ==========
The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 18 STATEMENT OF OPERATIONS For the Period Ended December 31, 1999 (A)
INVESTMENT INCOME - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Dividend.............................................................. $ 7,624 Interest.............................................................. 2,569 -------- Total Investment Income............................................... $ 10,193 -------- EXPENSES - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Investment Advisory Fees [NOTE 3]..................................... 3,228 Transfer Agent Fees (Class A=$3,669, Class B=$1,564, Class C=$781).... 6,014 Administration Fees................................................... 1,697 12b-1 Fees (Class A=$585, Class B=$841, Class C=$402) [NOTE 3]........ 1,828 Accounting Fees....................................................... 6,047 Out of Pocket Fees.................................................... 491 Service Fees (Class A=$115, Class B=$71, Class C=$21) [NOTE 3]........ 207 Miscellaneous Expense................................................. 317 -------- Total Expenses........................................................ $ 19,829 ======== Expenses Waived and Reimbursement by Advisor [NOTE 3]................. (12,527) -------- Net Expenses.......................................................... $ 7,302 ======== Net Investment Income................................................. $ 2,891 ======== REALIZED AND UNREALIZED LOSS ON INVESTMENTS - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Net Realized Loss on Investments...................................... (11,165) Change in Unrealized Depreciation of Investments...................... (440) -------- Net Realized and Unrealized Loss on Investments....................... (11,605) -------- Decrease in Net Assets Resulting from Operations...................... $ (8,714) ========
(A) For the Period July 14, 1999 (Commencement of OPerations) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 19 STATEMENT OF CHANGES IN NET ASSETS For the Period Ended December 31, 1999 (A)
INCREASE (DECREASE) IN NET ASSETS - --------------------------------------------------------------------------------------- period ended Dec. 31, 1999 (A) - --------------------------------------------------------------------------------------- Operations: Net Investment Income............................................... $ 2,891 Net Change in Unrealized Depreciation of Investments................ (440) Net Realized Loss on Investments.................................... (11,165) ---------- Decrease in Net Assets (resulting from operations).................. (8,714) ---------- Distributions to Shareholders: Net Realized Gains.................................................. (3,466) Class A........................................................... 1,913 Class B........................................................... 1,196 Class C........................................................... 357 Net Income.......................................................... (3,060) ---------- Class A........................................................... 1,689 Class B........................................................... 1,056 Class C........................................................... 315 Total Net Decrease.................................................. (15,240) ---------- Capital Share Transactions: Proceeds from Shares Sold........................................... 1,576,810 Class A........................................................... 885,073 Class B........................................................... 531,293 Class C........................................................... 160,444 Dividend Reinvested................................................. 6,422 Class A........................................................... 3,566 Class B........................................................... 2,188 Class C........................................................... 668 Cost of Shares Redeemed............................................. (38,329) Class A........................................................... 34,525 Class B........................................................... 3,804 Class C........................................................... 0 Increase in Net Assets (resulting from capital share transactions).. 1,544,903 ---------- Total Increase in Net Assets........................................ 1,529,663 ========== Net Assets: Beginning of Period................................................. ----- End of Period....................................................... $1,529,663 ==========
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 20 STATEMENT OF CHANGES IN NET ASSETS For the Period Ended December 31, 1999 (A)
INCREASE (DECREASE) IN NET ASSETS (cont.) - --------------------------------------------------------------------------- period ended Dec. 31, 1999 (A) - --------------------------------------------------------------------------- Shares of Capital Stock of The Fund Sold and Redeemed: Shares Sold: Class A................................................ 90,654 Class B................................................ 56,227 Class C................................................ 16,260 Shares Reinvested: Class A................................................ 375 Class B................................................ 234 Class C................................................ 71 Shares Redeemed: Class A................................................ (3,623) Class B................................................ (404) Class C................................................ --- ------- Net Increase in Number of Shares Outstanding............. 159,794 =======
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 21 FINANCIAL HIGHLIGHTS
LARGE/MID-CAP VALUE FUND - CLASSES A, B & C - --------------------------------------------------------------------------------------------------------- CLASS A CLASS B CLASS C period ended period ended period ended 12/31/99 (A) 12/31/99 (B) 12/31/99 (C) - --------------------------------------------------------------------------------------------------------- Per Share Operating Performance: Net Asset Value, Beginning.................... $ 10.00 $ 10.00 $ 10.00 Income from Investment Operations: Net Investment Income....................... 0.02 0.02 --- Net Realized and Unrealized Gain (Loss) on Investments...................... (0.30) (0.62) (0.21) -------- -------- -------- Total from Investment Operations.............. (0.28) (0.60) (0.21) -------- -------- -------- Less Distributions: Dividends from Realized Gains............... (0.02) (0.02) (0.02) Dividend from Net Investment Income..................................... (0.02) (0.02) (0.02) -------- -------- -------- Total Distribution.......................... (0.04) (0.04) (0.04) -------- -------- -------- Net Asset Value At End of Period.............. $ 9.68 $ 9.36 $ 9.75 ======== ======== ======== Total Return.................................. (3.28)% (D) (4.78)% (E) (3.68)% Ratios/Supplemental Data: Net Assets, End of Period..................... $845,879 $524,605 $159,179 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor (F)............................. 4.69% 5.87% 5.80% After Reimbursement of Expenses by Advisor (F)............................. 1.60% 2.35% 2.35% Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor (F)............................. (2.34)% (2.34)% (3.58)% After Reimbursement of Expenses by Advisor (F)............................. 0.75% 1.15% (0.13)% Portfolio Turnover............................ 8.02% 8.02% 8.02%
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31, 1999. (B) For the Period July 15, 1999 (Commencement of Operations) to December 31, 1999. (C) For the Period August 5, 1999 (Commencement of Operations) to December 31, 1999. (D) Total Return Calculation Does Not Reflect Sales Load. (E) Total Return Calculation Does Not Reflect Redemption Fees. (F) Annualized. The accompanying notes are an integral part of these financial statements. Timothy Plan Large/Mid-Cap Value Fund 1999 Annual Report - page 22 THE TIMOTHY PLAN fixed income fund Timothy Plan Fixed Income Fund 1999 Annual Report - page 23 INVESTMENT UPDATE YEAR-END REVIEW December 31, 1999 FIXED INCOME FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Timothy Plan Fixed-Income Fund is designed to provide the safety and income most investors seek, while conforming to the moral principles that investors claim to be their guiding light. The managers of the fund use all of the conventional measures of credit analysis, determine the nature and direction of Federal Reserve policy and formulate a strategy that should protect the investors assets and take advantage of the broad trends of interest rate moves seen in the economy. While there are always some risks inherent in any diversified portfolio, notably price volatility due to market forces, changes in government policies and credit risk issues, the managers have over forty years of experience on Wall Street and have dealt with these problems with a large measure of success. The policy of the funds is to first eliminate as much risk as reasonably possible and then make decisions to reflect the best opportunities and values as their judgment permits. Moral constraints should in no way limit the opportunities for return or add to the investment risk. Michael Carr Carr & Associates, Inc. Timothy Plan Fixed Income Fund 1999 Annual Report - page 24 SCHEDULE OF INVESTMENTS As of December 31, 1999
BONDS - 76.44% - ------------------------------------------------------------------------------------ par value market value - ------------------------------------------------------------------------------------ CORPORATE BONDS - 65.33% $10,000 Allegiance Corp. 7.30% 10/15/2006..................... $ 9,910 30,000 Computer Science Corp. 6.25% 03/15/2009............... 27,438 40,000 CSX Transportation 7.33% 06/01/2005................... 39,696 20,000 Donaldson Lufkin Jenrette 5.875% 04/01/2002........... 19,424 30,000 Florida Power & Light 6.00% 06/01/2008................ 27,453 10,000 Household Finance 7.30% 07/30/2012.................... 9,503 30,000 National Rural Utilities 6.00% 01/15/2004............. 28,826 50,000 Pep Boys Manny Moe & Jack 7.00% 06/01/2005............ 45,934 11,000 Public Service Electric and Gas 6.25% 01/01/2007...... 10,276 40,000 TRW, Inc. 6.25% 01/15/2010............................ 35,344 25,000 US Leasing International 5.95% 10/15/2003............. 23,788 -------- 277,592 -------- MUNICIPAL BONDS - 11.11% 50,000 Texas State University 6.41% 03/15/2009............... 47,209 -------- Total Bonds (cost $332,723)........................... 324,801 -------- SHORT-TERM INVESTMENTS - 30.95% 131,535 Firstar Bank Treasury Fund............................ 131,535 -------- Total Short-Term Investments (cost $131,535).......... 131,535 -------- TOTAL INVESTMENTS - 107.39% (identified cost $464,258) $456,336 -------- OTHER ASSETS AND LIABILITIES, NET - (7.39)%........... (31,361) -------- NET ASSETS - 100%..................................... $424,975 ========
The accompanying notes are an integral part of these financial statements. Timothy Plan Fixed Income Fund 1999 Annual Report - page 25 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
ASSETS - ----------------------------------------------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------------------------------------------- Investments, at Value (Cost $464,258).................................................................... $456,336 Receivables: Interest............................................................................................... 6,073 Fund Shares Sold....................................................................................... 4,614 Due from Advisor......................................................................................... 13,667 Other Assets............................................................................................. 1,193 -------- Total Assets............................................................................................. $481,883 ======== LIABILITIES - ----------------------------------------------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------------------------------------------- Cash Overdraft........................................................................................... 1,595 Accrued Expenses......................................................................................... 6,949 Payables for Investments Purchased....................................................................... 48,179 Payable for Fund Shares Redeemed......................................................................... 75 Other Payable............................................................................................ 110 -------- Total Liabilities........................................................................................ $ 56,908 ======== NET ASSETS - ----------------------------------------------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------------------------------------------- Class A Shares: Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 12,650 Shares Outstanding).. 124,062 Net Asset Value and Redemption Price Per Share (124,062/12,650 Shares)................................. 9.81 Offering Price Per Share ($9.81/0.9575)................................................................ 10.25 Class B Shares: Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 24,808 Shares Outstanding).. 243,086 Net Asset Value and Offering Price Per Share (243,086/24,808 Shares)................................... 9.80 Redemption Price Per Share ($9.80 x 0.95).............................................................. 9.31 Class C Shares: Net Assets (Unlimited Shares of $.0001 Par Beneficial Interest Authorized; 5,927 Shares Outstanding)... 57,827 Net Asset Value, Offering and Redemption Price Per Share (57,827/5,927 Shares)......................... 9.76 -------- Net Assets............................................................................................... $424,975 ======== SOURCES OF NET ASSETS - ----------------------------------------------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------------------------------------------- At December 31, 1999, Net Assets Consisted of: Paid-in Capital........................................................................................ 433,165 Net Undistributed Investment Income.................................................................... 107 Net Unrealized Depreciation in Value of Investments.................................................... (7,922) Accumulated Net Realized Loss on Investments........................................................... (375) -------- Net Assets............................................................................................... $424,975 ========
The accompanying notes are an integral part of these financial statements. Timothy Plan Fixed Income Fund 1999 Annual Report - page 26 STATEMENT OF OPERATIONS For the Period Ended December 31, 1999
INVESTMENT INCOME - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Interest................................................................ $ 7,580 -------- Total Investment Income................................................. $ 7,580 -------- EXPENSES - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Investment Advisory Fees [NOTE 3]....................................... 689 Transfer Agent Fees (Class A=$3,067, Class B=$1,878, Class C=$1,314).... 6,259 Administration Fees..................................................... 1,784 12b-1 Fees (Class A=$139, Class B=$343, Class C=$262)................... 744 Accounting Fees......................................................... 6,303 Out of pocket Fees...................................................... 145 Service Fees (Class A=$20, Class B=$39, Class C=$10).................... 69 Miscellaneous Expense................................................... 382 -------- Total Expenses.......................................................... $ 16,375 ======== Expenses Waived and Reimbursed by Advisor [NOTE 3]...................... (14,356) -------- Net Expenses............................................................ $ 2,019 ======== Net Investment Income................................................... $ 5,561 ======== REALIZED AND UNREALIZED LOSS ON INVESTMENTS - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Net Realized Loss on Investments........................................ (375) Change in Unrealized Depreciation of Investments........................ (7,922) -------- Net Realized and Unrealized Loss on Investments......................... (8,297) ======== Decrease in Net Assets Resulting from Operations........................ $ (2,736)
(A) For the Period July 14, 1999 (Commencement of Operations ) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Fixed Income Fund 1999 Annual Report - page 27 STATEMENT OF CHANGES IN NET ASSETS For the Period Ended December 31, 1999
INCREASE (DECREASE) IN NET ASSETS - ------------------------------------------------------------------------------------------- period ended Dec. 31, 1999 (A) - ------------------------------------------------------------------------------------------- Operations: Net Investment Income $ 5,561 Net Change in Unrealized Depreciation of Investments.................... (7,922) Net Realized Loss on Investments........................................ (375) -------- Decrease in Net Assets (resulting from operations)...................... (2,736) -------- Distributions to Shareholders: Net Income.............................................................. (5,454) -------- Class A............................................................... (1,608) Class B............................................................... (3,093) Class C............................................................... (753) Total Net Decrease...................................................... (8,190) -------- Capital Share Transactions: Proceeds from Shares Sold............................................... 507,531 Class A............................................................... 203,065 Class B............................................................... 245,990 Class C............................................................... 58,476 Dividend Reinvested..................................................... 5,454 Class A............................................................... 1,608 Class B............................................................... 3,093 Class C............................................................... 753 Cost of Shares Redeemed................................................. (79,820) Class A............................................................... 78,042 Class B............................................................... 1,778 Class C............................................................... 0 Increase in Net Assets (resulting from capital share transactions)...... $433,165 -------- Total Increase in Net Assets............................................ $424,975 ======== Net Assets: Beginning of Period..................................................... --- End of Period (Including Undistributed Net Investment Income of $1.07).. $424,975 ======== Shares of Capital Stock of The Fund Sold and Redeemed: Shares Sold: Class A............................................................... 20,270 Class B............................................................... 24,671 Class C............................................................... 5,850 Shares Reinvested: Class A............................................................... 163 Class B............................................................... 316 Class C............................................................... 77 Shares Redeemed: Class A............................................................... (7,783) Class B............................................................... (179) Class C............................................................... 0 -------- Net Increase in Number of Shares Outstanding............................ $ 43,385 ========
Timothy Plan Fixed Income Fund 1999 Annual Report - page 28 FINANCIAL HIGHLIGHTS
FIXED INCOME FUND - CLASSES A, B & C - -------------------------------------------------------------------------------------------------------------- CLASS A CLASS B CLASS C period ended period ended period ended 12/31/99 (A) 12/31/99 (B) 12/31/99 (C) - -------------------------------------------------------------------------------------------------------------- Per Share Operating Performance: Net Asset Value, Beginning................................ $ 10.00 $ 10.00 $ 10.00 Income from Investment Operations: Net Investment Income................................... 0.12 0.15 0.09 Net Realized and Unrealized Gain (Loss) on Investments.. (0.18) (0.22) (0.20) -------- -------- ------- Total from Investment Operations........................ (0.06) (0.07) (0.11) -------- -------- ------- Less Distributions: Dividend from Net Investment Income..................... (0.13) (0.13) (0.13) -------- -------- ------- Total Distribution...................................... (0.13) (0.13) (0.13) -------- -------- ------- Net Asset Value At End of Period.......................... $ 9.81 $ 9.80 $ 9.76 ======== ======== ======= Total Return.............................................. (0.42)% (D) (0.92)% (E) (1.01)% Ratios/Supplemental Data: Net Assets, End of Period................................. $124,062 $243,086 $57,827 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor (F)......... 13.92% 14.73% 13.77% After Reimbursement of Expenses by Advisor (F).......... 1.35% 2.10% 2.10% Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor (F)......... (9.88)% (2.20)% (9.78)% After Reimbursement of Expenses by Advisor (F).......... 2.70% 10.42% 1.88% Portfolio Turnover........................................ 21.25% 21.25% 21.25%
(A) For the Period July 14, 1999 (Commencement of Operations) to December 31, 1999. (B) For the Period August 5, 1999 (Commencement of Operations) to December 31, 1999. (C) For the Period July 20, 1999 (Commencement of Operations) to December 31, 1999. (D) Total Return Calculation Does Not Reflect Sales Load. (E) Total Return Calculation Does Not Reflect Redemption Fees. (F) Annualized. The accompanying notes are an integral part of these financial statements. Timothy Plan Money Fund 1999 Annual Report - page 29 THE TIMOTHY PLAN money market fund Timothy Plan Money Fund 1999 Annual Report - page 30 INVESTMENT UPDATE YEAR-END REVIEW December 31, 1999 MONEY MARKET FUND - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Timothy Plan Money-Market Fund contains only those issues that have the highest ratings or guarantees and conform to the rules that govern money- market investments. The low costs of the fund and the policy of risk avoidance make this fund appropriate for the most conservative investors seeking liquidity and a moderate return. In an uncertain investment climate, or when funds are needed for the immediate future, the Money Market Fund is an ideal and very appropriate vehicle. There should be no fluctuation in the day-to-day value of your investment, with a goal to provide an inflation-beating current yield that build for you every day. Whether this is a core investment for emergencies or a temporary refuge from other securities markets, our strategy is to give you the safety and income you desire to protect your well being. Michael Carr Carr & Associates, Inc. Timothy Plan Money Fund 1999 Annual Report - page 31 SCHEDULE OF INVESTMENTS As of December 31, 1999
SHORT-TERM INVESTMENTS - 97.47% - -------------------------------------------------------------------------------------- par value market value - -------------------------------------------------------------------------------------- Federal Home Loan Bank - 71.25% $150,000 FHLB Discount Note 5.616% 05/19/2000................. $146,839 100,000 FHLB Discount Note 5.625% 04/28/00................... 98,200 100,000 FHLB Discount Note 5.634% 03/10/00................... 98,932 100,000 FHLB Discount Note 5.412% 02/08/00................... 99,426 100,000 FHLB Discount Note 5.607% 04/24/00................... 98,265 -------- 541,662 -------- Freddie Home Loan Mortgage Corp. - 26.22% 25,000 FMC Discount Note 5.406% 03/02/00.................... 24,773 25,000 FMC Discount Note 5.324% 02/03/00.................... 24,877 25,000 FMC Discount Note 5.433% 01/28/00.................... 24,896 25,000 FMC Discount Note 5.263% 01/27/00.................... 24,903 100,000 FMC Discount Note 5.115% 01/12/00.................... 99,832 -------- 199,281 -------- TOTAL INVESTMENTS - 97.47% (identified cost $740,943) $740,943 -------- OTHER ASSETS AND LIABILITIES, NET - 2.53%............ $ 19,241 -------- NET ASSETS - 100%.................................... $760,184 ========
The accompanying notes are an integral part of these financial statements. Timothy Plan Money Fund 1999 Annual Report - page 32 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 1999
ASSETS - ------------------------------------------------------------------------------------------------ amount - ------------------------------------------------------------------------------------------------ Investments, At Value (cost $740,943).............................................. $740,943 Receivables: Interest......................................................................... 443 Fund Shares Sold................................................................. 45,498 Due from Advisor................................................................... 5,781 Due from Administrator............................................................. 1,271 -------- Total Assets....................................................................... $793,936 ======== LIABILITIES - ------------------------------------------------------------------------------------------------ amount - ------------------------------------------------------------------------------------------------ Cash Overdraft..................................................................... $ 26,950 Income Distribution Payable........................................................ 345 Payable for Fund Shares Redeemed................................................... 5,000 Accrued Expenses................................................................... 1,457 -------- Total Liabilities.................................................................. $ 33,752 -------- NET ASSETS - ------------------------------------------------------------------------------------------------ amount - ------------------------------------------------------------------------------------------------ Shares of Capital Stock Outstanding (par value .001, unlimited shares authorized).. 760,184 Net Asset Value, Offering and Redemption Price Per Share (760,184/760,184 Shares).. 1.00 Net Assets......................................................................... $760,184 ======== SOURCES OF NET ASSETS - ------------------------------------------------------------------------------------------------ amount - ------------------------------------------------------------------------------------------------ At December 31, 1999, Net Assets Consisted of: Paid-in Capital.................................................................... 760,184 -------- Net Assets......................................................................... $760,184 ========
The accompanying notes are an integral part of these financial statements. Timothy Plan Money Fund 1999 Annual Report - page 33 STATEMENT OF OPERATIONS For the Period Ended December 31, 1999 (A)
INVESTMENT INCOME - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Interest.......................................................... $8,219 ------ Total Investment Income........................................... $8,219 ------ EXPENSES - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Investment Advisory Fees [NOTE 3]................................. 973 Administration Fees............................................... 1,742 Transfer Agent Fees............................................... 2,905 Accounting Fees................................................... 3,484 Miscellaneous Expense............................................. 313 ------- Total Expenses.................................................... $ 9,417 ------- Expenses Waived and Reimbursement by Advisor [NOTE 3]............. (8,025) ------- Net Expenses...................................................... $ 1,392 ------- Net Investment Income............................................. $ 6,827 ------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS - ----------------------------------------------------------------------------------------- amount - ----------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations.................. $6,827 ======
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Money Market Fund 1999 Annual Report - page 34 STATEMENT OF CHANGES IN NET ASSETS For the Period Ended December 31, 1999
INCREASE (DECREASE) IN NET ASSETS - ----------------------------------------------------------------------------------------- period ended Dec. 31, 1999 (A) - ----------------------------------------------------------------------------------------- Operations: Net Investment Income................................................. $ 6,827 ---------- Increase in Net Assets (resulting from operations).................... 6,827 ---------- Distributions to Shareholders: Net Income............................................................ (6,827) ---------- Capital Share Transactions: Proceeds from Shares Sold............................................. 1,049,384 Dividend Reinvested................................................... 6,827 Cost of Shares Redeemed............................................... (296,027) Increase in Net Assets (resulting from capital share transactions).... 760,184 ---------- Total Increase in Net Assets.......................................... 760,184 ========== Net Assets: Beginning of Period................................................... 0 End of Period......................................................... $ 760,184 ========== Shares of Capital Stock of The Fund Sold and Redeemed: Shares Sold........................................................... 1,049,384 Shares Reinvested..................................................... 6,827 Shares Redeemed....................................................... (296,027) Net Increase in Number of Shares Outstanding.......................... $ 760,184 ==========
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31, 1999. The accompanying notes are an integral part of these financial statements. Timothy Plan Money Market Fund 1999 Annual Report - page 35 FINANCIAL HIGHLIGHTS
MONEY MARKET FUND - CLASS A - -------------------------------------------------------------------------------- period ended Dec. 31, 1999 (A) - -------------------------------------------------------------------------------- Per Share Operating Performance: Net Asset Value, Beginning.............................. $ 1.00 Income from Investment Operations: Net Investment Income................................... 0.02 Net Realized and Unrealized Gain (Loss) on Investments.. 0.00 -------- Total from Investment Operations 0.02 -------- Less Distributions: Dividend from Net Investment Income..................... (0.02) -------- Total Distribution...................................... (0.02) -------- Net Asset Value At End of Period........................ $ 1.00 ======== Total Return (B)........................................ 1.78% Ratios/Supplemental Data: Net Assets, End of Period............................... $760,184 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor (C)....... 5.75% After Reimbursement of Expenses by Advisor (C) 0.85% Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor (C)....... (0.73)% After Reimbursement of Expenses by Advisor (C) 4.17%
(A) For the Period July 9, 1999 (Commencement of Operations) to December 31, 1999. (B) Not Annualized (C) Annualized The accompanying notes are an integral part of these financial statements. Timothy Plan Money Market Fund 1999 Annual Report - page 36 NOTES TO FINANCIAL STATEMENTS December 31, 1999 TIMOTHY PLAN FAMILY OF FUNDS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Note 1 - Significant Accounting Policies The Timothy Plan (the "Trust") is organized as a series of a Delaware business trust pursuant to a trust agreement dated December 16, 1993. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end diversified management investment company. The Trust currently consists of four series consisting of The Timothy Small-Cap Value Fund, The Timothy Large/Mid-Cap Value Fund, The Timothy Fixed Income Fund and The Timothy Money Market Fund, ("the Funds"). The Timothy Small-Cap Value Fund's primary objective is long-term capital growth, with a secondary objective of current income. The Fund seeks to achieve its investment objective by investing primarily in common stocks and ADRs while abiding by ethical standards established for investments by the Fund. The Timothy Large/Mid-Cap Value Fund's investment objective is long term capital growth. Its secondary objective is current income. The Fund seeks to achieve its objectives by primarily investing in common stocks and ADRs. The Large/Mid-Cap Value Fund will invest in the common stock of companies whose total market capitalization generally exceeds $1 billion. The Timothy Fixed Income Fund seeks to generate a high level of current income consistent with prudent investment risk. To achieve its goal, the Fund normally invests in a diversified portfolio of debt securities. These include corporate bonds, convertible stocks, U.S. Government and agency securities and preferred securities. The Fund will only purchase high quality securities. The Timothy Money Market Fund seeks to generate a high level of current income consistent with the preservation of capital. To achieve its goal, the Fund normally invests in short-term debt instruments, such as obligations of the U.S. Government and its agencies, certificates of deposit, bankers acceptances, commercial paper and short-term corporate notes. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles for investment companies. A. Security Valuation. Investments in securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the period. Unlisted securities or listed securities, in which there were no sales, are valued at the mean of the closing bid and ask prices. Short-term obligations with remaining maturities of 60 days or less are valued at cost plus accrued interest, which approximates market value. B. Investment Income and Securities Transactions. Security transactions are accounted for on the date the securities are purchased or sold (trade date). Cost is determined and gains and losses are based on the identified cost basis for both financial statement and federal income tax purposes. Dividend income and distributions to shareholders are reported on the ex-dividend date. Interest income and expenses are accrued daily. The Timothy Small-Cap Value Fund has made certain investments in real estate investment trusts ("REITs") which pay dividends to their shareholders based upon available funds from operations. It is quite common for these dividends to exceed the REIT's taxable earnings and profits resulting in the excess portion of such dividends being designated as a return of capital. C. Net Asset Value Per Share. Net assets per share of the capital stock of the Funds is determined daily as of the close of trading on the New York Stock Exchange by dividing the value of its net assets by the number of Fund shares outstanding. Net Asset Value is calculated separately for each class of the three Funds, The Timothy Small-Cap Value Fund, The Timothy Large/Mid-Cap Fund and The Timothy Fixed Income Fund, based on expenses applicable to a particular class. The net asset value of the classes may differ because of different fees and expenses charged to each class. NOTES TO FINANCIAL STATEMENTS December 31, 1999 TIMOTHY PLAN FAMILY OF FUNDS (cont.) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- D. Organization Costs. Organization costs of The Timothy Plan Small-Cap Value Fund are being amortized on a straight-line basis over five years from inception. E. Federal Income Taxes. It is the policy of the Funds to comply with all requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. The Timothy Small-Cap Value Fund has a capital loss carryover available to offset future capital gains, if any, of approximately $3,300,000 of which $1,000,000 expires in 2006 and $2,300,000 expires in 2008. The Timothy Large/Mid-Cap Value Fund has approximately $14,600 in capital losses available to offset future gains which expire in 2008. F. Use of Estimates. In preparing financial statements in conformity with generally accepted accounting principles, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2 - Purchases and Sales of Securities The following is a summary of purchases and sales of securities, other than short-term investments, for the period ended December 31, 1999: funds purchases sales Small-Cap Value Fund $15,022,115 $18,919,256 Large/Mid-Cap Value Fund $ 1,469,194 $ 68,842 Fixed Income Fund $ 375,531 $ 42,919 Note 3 - Investment Management Fee and Other Transactions with Affiliates Timothy Partners, LTD., ("TPL") is the investment advisor for the Funds pursuant to an investment advisory agreement (the "Agreement") effective May 1, 1998. Under the terms of the Agreement, TPL receives a fee, accrued daily and paid monthly, at an annual rate of 0.85% of the average daily net assets of The Small-Cap Value and The Large/Mid-Cap Value Funds; 0.60% of the average daily net assets of The Fixed Income and Money Market Funds. TPL has voluntarily agreed to reduce fees payable to it by the Funds and reimburse other expenses to the extent necessary to limit the Funds' aggregate annual operating expenses, excluding brokerage commissions and other portfolio transaction expenses, interest, taxes, capital expenditures and extraordinary expenses, to 1.60%, 1.60% and 1.35% with respect to Class A, and 2.35%, 2.35% and 2.10%, with respect to Classes B and C, of the Fund's average daily net assets for the Small-Cap Value, Large/Mid-Cap Value and Fixed Income Funds, respectively; 0.85% with regards to the Money Market Fund. For the period ended December 31, 1999, TPL reimbursed the Funds as follows: funds reimbursements Small-Cap Value Fund $129,595 Large/Mid-Cap Value Fund $ 12,527 Fixed Income Fund $ 14,206 Money Market Fund $ 8,025 NOTES TO FINANCIAL STATEMENTS December 31, 1999 TIMOTHY PLAN FAMILY OF FUNDS (cont.) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Timothy Small-Cap Value, The Timothy Large/Mid-Cap Value and The Timothy Fixed Income Funds have adopted shareholder services plans (the "Plans") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Plans provide that the Fund will reimburse TPL or others for expenses actually incurred in the promotion of distribution of shares. Under the Class A Plan, the Funds will reimburse TPL a fee at an annual rate of 0.25%, payable monthly, of the average daily net assets attributable to such class of shares. Under the Class B and Class C Plans, the Fund will reimburse TPL a fee at an annual rate of 1.00%, payable monthly, of which, 0.25% may be a service fee and 0.75% may be payable to outside broker/dealers, of the average daily net assets attributable to such class of shares. For the periods ended December 31, 1999, the Funds reimbursed TPL $164,988, $2,035 and $813, respectively, for distribution costs incurred. Note 4 - Unrealized Appreciation (Depreciation) At December 31, 1999, the cost for federal income tax purposes is and the composition of gross unrealized appreciation (depreciation) of investment securities is as follows:
------------------------------------------------------------------------------------------- funds cost appreciation depreciation net app. (dep.) ------------------------------------------------------------------------------------------- Small-Cap Value Fund $22,215,871 $6,315,406 ($935,770) $5,379,636 Large/Mid-Cap Value Fund 1,483,221 64,502 (64,942) (440) Fixed Income Fund 464,258 0 (7,922) (7,922)
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTS February 25, 2000 TIMOTHY PLAN FAMILY OF FUNDS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- To the Shareholders and Board of Trustees The Timothy Plan Winter Park, Florida We have audited the accompanying statement of assets and liabilities of The Timothy Plan (comprising, respectively, the Timothy Plan Large/Mid Cap Value Fund, The Timothy Plan Small-Cap Value Fund, The Timothy Plan Fixed Income Fund and The Timothy Plan Money Market Fund), including the portfolios of investments as of December 31, 1999, and the related statements of operations for the periods then ended, the changes in net assets and the financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1999, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Timothy Plan as of December 31, 1999, the results of its operations for the periods then ended, and the changes in its net assets and the financial highlights for the periods indicated thereon, in conformity with generally accepted accounting principles. /s/ Tait, Weller & Baker Tait, Weller & Baker Philadelphia, Pennsylvania February 25, 2000 THE TIMOTHY PLAN 1304 West Fairbanks Avenue Winter Park, FL 32789 BOARD OF TRUSTEES Arthur D. Ally Joseph E. Boatwright W. Thomas Fyler, Jr. Wesley W. Pennington Jock M. Sneddon OFFICERS Arthur D. Ally, President Joseph E. Boatwright, Secretary Wesley W. Pennington, Treasurer INVESTMENT ADVISOR Timothy Partners, LTD. 1304 West Fairbanks Avenue Winter Park, FL 32789 DISTRIBUTOR Timothy Partners, LTD. 1304 West Fairbanks Avenue Winter Park, FL 32789 TRANSFER AGENT Unified Fund Services, Inc. 431 N Pennsylvania Street Indianapolis, IN 46204 AUDITORS Tait, Weller & Baker Eight Penn Center Plaza, Suite 800 Philadelphia, PA 19103 LEGAL COUNSEL The Law Offices of David D. Jones, P.C. Suite 180, Box 303 The Woodlands, TX 77381 For additional information or a prospectus, please call: 1-800-846-7526 Visit the Timothy Plan web site on the internet at: www.timothyplan.com This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus which includes details regarding the Fund's objectives, policies, expenses and other information. Distributed by Timothy Partners, Ltd. [LOGO OF THE TIMOTHY PLAN APPEARS HERE] Family of Funds ANNUAL REPORT December 31, 1999 -----END PRIVACY-ENHANCED MESSAGE-----