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Blue Chip Investor Funds – ‘N-30D’ for 6/30/02

On: Wednesday, 8/28/02, at 1:05pm ET · For: 6/30/02 · Accession #: 1162044-2-112 · File #: 811-10571

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 8/28/02  Blue Chip Investor Funds          N-30D       6/30/02    1:18K                                    Mutual Sharehold… LLC/FA

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                 8     37K 
                          Shareholders                                           

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BLUE CHIP INVESTOR FUND                                                         

Semi-Annual Report                                                              
June 30, 2002                                                                   

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================================================================================
BLUE CHIP INVESTOR FUND                                                         
================================================================================

PERFORMANCE INFORMATION                                                         

Total Returns for six month period ended 6/30/02                                

6/30/03 NAV $96.76                                                              

                                 Cumulative(A)
--------------------------------------------------------------------------------
Blue Chip Investor Fund                               -3.24%                    
Standard & Poor's 500 Index(B)                       -13.14%                    
--------------------------------------------------------------------------------

(A)Cumulative  return  includes change in share prices and in each case includes
reinvestment of any dividends and capital gain distributions (not annualized).  

(B)The S&P 500 is a broad market-weighted  average dominated by blue-chip stocks
and is an unmanaged  group of stocks  whose  composition  is different  from the
Fund.                                                                           

Past  Performance  Does Not  Guarantee  Future  Results.  Investment  Return And
Principal Value Will Fluctuate So That Shares, When Redeemed,  May Be Worth More
Or Less Than Their Original Cost.  Returns Do Not Reflect The Deduction Of Taxes
That A Shareholder  Would Pay On Fund  Distributions  Or The  Redemption Of Fund
Shares.                                                                         

                                                                       Unaudited
                                                         Schedule of Investments
                                                                   June 30, 2002
--------------------------------------------------------------------------------
 Shares/Principal Amount                             Market Value    % of Assets
--------------------------------------------------------------------------------

COMMON STOCKS                                                                 
Computer Services                                                             
          8,600 Electronic Data Systems            $ 319,490           4.34%
                                   ---------

Conglomerates                                                                 
         11,300 General Electric Company             328,265           4.46%
                                     -------

Consumer Financial Services                                                   
32,000 Household International            1,590,400       
11,000 Federal Home Loan Mortgage           673,200       
4,700 Federal National Mortgage                         
 Association                         346,625
                                     -------
                                                   2,610,225          35.46%

Food Processing                                                               
         16,300 Sara Lee Corp.                       336,432           4.57%
                                     -------

Insurance                                                                     
8,400.00 Aflac, Inc.                          268,800         
155 Berkshire Hathaway Class B*          346,270    
                                     -------
                                                     615,070           8.35%
Medical Drugs                                                                 
          6,600 Merck & Co., Inc.                    334,224           4.54%
                                     -------

Money Center Banks                                                            
9,400 Citicorp                             364,250      
7,100 Wells Fargo And Company              355,426      
                                     -------
                                                     719,676           9.78%
Regional Banks                                                                
6,220 Zion Bancorp.                        324,062      
9,600 Mbna Corp                            317,472      
                                     -------
                                                     641,534           8.71%

*Non-Income producing securities.                                               

The accompanying notes are an integral part of the financial statements.

2002 Semi-Annual Report 1                                                       

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================================================================================
BLUE CHIP INVESTOR FUND                                                         
================================================================================
                                                                       Unaudited
                                             (Continued) Schedule of Investments
                                                                   June 30, 2002
--------------------------------------------------------------------------------
 Shares/Principal Amount                             Market Value    % of Assets
--------------------------------------------------------------------------------

Retail                                                                          
         22,400 Safeway, Inc.                        653,856           8.88%
                                     -------

Savings & Loans/Savings Banks                                                 
          6,900 Washington Mutual                    256,059           3.48%
                                     -------

Software & Programming                                                        
          4,900 MGIC Investments                     332,220           4.51%
                                     -------

Total for Common Stock                              7,147,051          97.08% 
                                   =========

Shorted Call Options                                                          
Computer Services                                                             
(5,000)Electronic Data Systems                            
                 August 2002 Call @ 40. *            (12,000)         -0.16%
                                      --------

Conglomerates                                                                 
(6,000)General Electric Company                           
                 September 2002 Call @ 30. *         (11,400)         -0.15%
                                      --------

Consumer Financial Services                                                   
(12,000)Household International                             
                 October 2002 Call @ 50. *           (66,000)         -0.90%
                                      --------

Money Center Banks                                                            
(2,000)Citigroup July 2002 Call                           
  @ 42.50. *                             (700)
(2,000)Citigroup September 2002                           
  Call @ 40. *                         (5,100)
(1,500)Wells Fargo October 2002                           
  Call @ 50. *                         (4,350)
                                       -------
                                                     (10,150)         -0.14%

Total for Call Options                                (99,550)         -1.35% 
                                      ========

Cash and Equivalents                                                          
3,585,863 Dreyfus Cash Management                               
                 Class-A   Rate 1.78%              3,585,863          48.71%
                                   ---------

                Total Investments                 10,633,364         144.44%
(Identified Cost        
-$ 10,975,764)      

                Assets less other Liabilities     (3,271,417)        -44.44%
                                   -----------

                Net Assets                       $ 7,361,947         100.00%
                                 ===========

*Non-Income producing securities.                                               

The accompanying notes are an integral part of the financial statements.

2002 Semi-Annual Report 2                                                       

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================================================================================
Blue Chip Investor Fund                                                         
================================================================================

Statement of Assets and Liabilities - June 30 2002 (Unaudited)                  

Assets:                                                                         
Investment Securities at Market Value                 $ 10,633,364    
(Identified Cost -$ 10,975,764)                             
Cash                                                        16,886    
Dividends Receivable                                         7,345    
Interest Receivable                                          1,957    
Receivable from Advisor                                     11,519    
Receivable for Securities Sold                              25,695    
                                                        ------
      Total Assets                                  10,696,766
Liabilities                                                                     
Accrued Expenses                                            11,404    
Payable for Securities Purchased                         3,323,415    
                                                     ---------
      Total Liabilities                              3,334,819
                                                     ---------
Net Assets                                                  $ 7,361,947         
Net Assets Consist of:                                                          
Capital Paid In                                          7,698,791    
Undistributed Net Investment Income                         20,871    
Realized Gain (Loss) on Investments - Net                  (15,315)   
Unrealized Depreciation in Value                                      
  of Investments Based on Identified Cost - Net        (342,400)
                                                       ---------
Net Assets, for 76,085 Shares Outstanding                   $ 7,361,947         
                                                   ===========
Net Asset Value and Redemption Price                                            
Per Share ($7,361,947/76,085 shares)                       $ 96.76    

================================================================================
Blue Chip Investor Fund                                                       
================================================================================

Statement of Operations                                                       
For the six months ending June 30, 2002                                       
Investment Income:                                                              
Dividends                                                 $ 12,899    
Interest                                                     7,972    
                                                         -----
 Total Investment Income                                20,871
Expenses: (Note 2)                                                              
Investment Management Fees                                  11,983    
Transfer agent fees & accounting                            14,548    
Administration fees                                         11,634    
Audit fees                                                   5,819    
Registration fees                                            4,850    
Custody fees                                                 4,655    
Legal fees                                                   2,425    
Printing and postage expense                                 1,947    
Other fees                                                   1,770    
Directors fee                                                  970    
Insurance expense                                              487    
                                                           ---
 Total Expenses                                         67,080
Less:                                                       
 Management fee waiver (Note 2)                         (11,983)
 Reimbursed expenses                                    (49,105)
Net Expenses                                                - 
                                                           -
Net Investment Income                                            20,871         

Realized and Unrealized Gain (Loss) on Investments:                             
Realized Gain (Loss) on Investments                        (15,315)   
Unrealized Appreciation (Depreciation) on Investments     (342,400)   
                                                       ---------
Net Realized and Unrealized Gain (Loss) on Investments         (357,715)        

Net Increase (Decrease) in Net Assets from Operations        $ (336,844)        
                                                     ===========

The accompanying notes are an integral part of the financial statements.

2002 Semi-Annual Report 3                                                       

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================================================================================
Blue Chip Investor Fund                                                         
================================================================================

Statement of Changes in Net Assets (Unaudited)                                  
                                                              1/1/2002**
                                                              to
                                                             6/30/2002
                                                             ---------
From Operations:                                                                
Net Investment Income                                        $ 20,871 
Net Realized Gain (Loss) on Investments                       (15,315)
Net Unrealized Appreciation (Depreciation)                   (342,400)
                                                             ---------
Increase (Decrease) in Net Assets from Operations            (336,844)
From Capital Share Transactions:                                                
Proceeds From Sale of Shares                                7,598,791 
Shares Issued on Reinvestment of Dividends                          0 
Cost of Shares Redeemed                                             0 
                                                                   -
Net Increase from Shareholder Activity                           7,598,791      

Net Increase (Decrease) in Net Assets                            7,261,947      

Net Assets at Beginning of Period                                  100,000      
Net Assets at End of Period                                    $ 7,361,947      
                                                         ===========

Share Transactions:                                                             
Issued                                                         75,085 
Reinvested                                                          - 
Redeemed                                                            - 
                                                                   -
Net increase (decrease) in shares                                   75,085      
Shares outstanding beginning of period                               1,000      
                                                               -----
Shares outstanding end of period                                    76,085      
                                                              ======

================================================================================
Blue Chip Investor Fund                                                       
================================================================================

Financial Highlights (Unaudited)                                                
Selected data for a share outstanding throughout the period:                    

                                                            1/1/2002**
                                                          to
                                                           6/30/2002
                                                           ---------
Net Asset Value -                                                               
Beginning of Period                                        $ 100.00   
Net Investment Income                                               0.20        
Net Gains or Losses on Securities                                               
(realized and unrealized)                                     (3.44)  
                                                            ------
Total from Investment Operations                                   (3.24)       
Net Asset Value -                                                               
End of Period                                               $ 96.76   
Total Return                                                       (3.24)%      
Ratios/Supplemental Data                                                        
Net Assets - End of Period (Thousands)                             7,362        

Before Reimbursement                                                            
Ratio of Expenses to Average Net Assets                         4.85% * 
Ratio of Net Income to Average Net Assets                      -3.20% * 
After Reimbursement                                                             
Ratio of Expenses to Average Net Assets                         0.00% * 
Ratio of Net Income to Average Net Assets                       1.66% * 

Portfolio Turnover Rate                                            31.96% *     

* Annualized                                                                    
** commencement of operations.                                                  

The accompanying notes are an integral part of the financial statements.

2002 Semi-Annual Report 4                                                       

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Notes to Financial Statements (Unaudited)                                       

Blue Chip Investor Fund                                                         

June 30, 2002                                                                   

1.) SIGNIFICANT ACCOUNTING POLICIES                                             

Blue Chip  Investor  Fund (the "Fund") is a  non-diversified  series of the Blue
Chip Investor Fund (the "Trust"), a management investment company. The Trust was
organized  in Ohio as a business  trust on November 1, 2001 and may offer shares
of beneficial  interest in a number of separate series, each series representing
a distinct fund with its own investment objectives and policies. At present, the
Fund is the only series  authorized by the Trust. The Fund's primary  investment
objective  is to  seek  long-term  growth  of  capital.  Significant  accounting
policies of the Fund are presented below:                                       

SECURITY VALUATION:                                                             

Securities  that are traded on any  exchange  or on the NASDAQ  over-the-counter
market are valued at the last quoted sale  price.  Lacking a last sale price,  a
security is valued at its last bid price except when, in the Adviser's  opinion,
the  last bid  price  does  not  accurately  reflect  the  current  value of the
security. All other securities for which over-the-counter  market quotations are
readily available are valued at their last bid price. When market quotations are
not readily  available,  when the Adviser determines the last bid price does not
accurately  reflect the current value or when  restricted  securities  are being
valued,  such  securities are valued as determined in good faith by the Adviser,
in conformity with  guidelines  adopted by and subject to review of the Board of
Trustees.                                                                       

Fixed income securities generally are valued by using market quotations, but may
be valued on the basis of prices furnished by a pricing service when the Adviser
believes  such  prices  accurately   reflect  the  fair  market  value  of  such
securities.  A pricing service  utilizes  electronic data processing  techniques
based on yield spreads  relating to securities with similar  characteristics  to
determine prices for normal institutional-size  trading units of debt securities
without  regard  to sale or bid  prices.  If the  Adviser  decides  that a price
provided  by the pricing  service  does not  accurately  reflect the fair market
value of the  securities,  when prices are not readily  available from a pricing
service or when restricted or illiquid  securities are being valued,  securities
are  valued  at fair  value  as  determined  in good  faith by the  Adviser,  in
conformity  with  guidelines  adopted  by and  subject to review of the Board of
Trustees.  Short term investments in fixed income  securities with maturities of
less than 60 days when  acquired,  or which  subsequently  are within 60 days of
maturity, are valued by using the amortized cost method of valuation,  which the
Board of Trustees has determined will represent fair value.                     

SHARE  VALUATION:  The net asset value per share of the Fund is calculated daily
by  dividing  the total value of the Fund's  assets,  less  liabilities,  by the
number of shares  outstanding,  rounded to the nearest  cent.  The  offering and
redemption price per share is equal to the net asset value per share.           

SECURITY  TRANSACTION  TIMING:  Security  transactions are recorded on the dates
transactions   are  entered  into  (the  trade  dates).   Dividend   income  and
distributions  to shareholders  are recorded on the ex-dividend  date.  Interest
income is  recorded  as  earned.  The Fund  uses the  identified  cost  basis in
computing gain or loss on sale of investment securities.  Discounts and premiums
on  securities   purchased  are  amortized  over  the  life  of  the  respective
securities.                                                                     

INCOME TAXES: It is the Fund's policy to distribute  annually,  prior to the end
of the calendar year, dividends sufficient to satisfy excise tax requirements of
the Internal  Revenue  Service.  This Internal  Revenue Service  requirement may
cause an excess of distributions over the book year-end  accumulated  income. In
addition,  it is the Fund's policy to distribute annually,  after the end of the
fiscal year, any remaining net investment income and net realized capital gains.

2002 Semi-Annual Report 5                                                       

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Notes to the Financial Statements (Unaudited) - continued                       

ESTIMATES:  The preparation of financial statements in conformity with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting  period.  Actual  results  could differ from those  estimates.  OTHER:
Generally  accepted  accounting  principles  require  that  permanent  financial
reporting tax differences relating to shareholder  distributions be reclassified
to paid in capital.                                                             

2.)      INVESTMENT ADVISORY AGREEMENT                                          

The Fund has entered into an investment  advisory  agreement  with Check Capital
Management,  Inc. (the  "Adviser").  For its services,  the Adviser  receives an
annual investment management fee from the Fund of 1.00% of the average daily net
assets of the Fund. As a result of the above  calculation,  for the period since
inception  on January  1, 2002 and ended June 30,  2002,  the  Adviser  received
management fees totaling $11,983. The Adviser has agreed to waive all management
fees and reimburse all expenses to maintain total annual  operating  expenses of
the Fund at 0.00% of its average daily net assets through December 31, 2002. For
calendar  years 2003 and 2004, the adviser has agreed to waive  management  fees
and  reimburse  expenses  to the  extent  necessary  to  maintain  total  annual
operating expenses of the Fund at 1.50% of its average daily net assets. For the
period from  January 1, 2002 to and ended June 30,  2002 the Adviser  reimbursed
management  fees of $11,983 and  expenses of $49,105 to  maintain  total  annual
operating expenses of the Fund at 0.00%.                                        

3.)      RELATED PARTY TRANSACTIONS                                             

Steve Check is the control  person of the Adviser of the Fund.  This  individual
receives  benefits from the Adviser  resulting from  management fees paid to the
Adviser of the Fund.                                                            

4.)      CAPITAL STOCK                                                          

The Trust is  authorized  to issue an  unlimited  number of shares  without  par
value.  Paid in  capital at June 30,  2002 was  $7,698,791  representing  76,085
shares outstanding.                                                             

5.)      PURCHASES AND SALES OF SECURITIES                                      

For the period of January 1, 2002 to the period ended June 30,  2002,  purchases
and sales of investment  securities other than U.S.  Government  obligations and
short-term  investments   aggregated  $7,885,830  and  $375,136,   respectively.
Purchases  and  sales  of  U.S.  Government  obligations  aggregated  $0 and $0,
respectively.                                                                   

6.)      SECURITY TRANSACTIONS                                                  

For Federal income tax purposes,  the cost of investments owned at June 30, 2002
was  $10,975,764.  At June 30, 2002, the composition of unrealized  appreciation
(the  excess of value over tax cost) and  depreciation  (the  excess of tax cost
over value) was as follows:                                                     

Appreciation         (Depreciation)      Net Appreciation (Appreciation)        
$96,750              ($439,150)                  ($342,400)                 

7.)      CONTROL OWNERSHIP                                                      

The beneficial ownership, either directly or indirectly, of more than 25% of the
voting  securities of a fund creates a presumption of control of the fund, under
Section  2(a)(9) of the  Investment  Company Act of 1940.  As of June 30,  2002,
Charles  Schwab & Co. Inc. held for the benefit of others,  in  aggregate,  more
than 93% of the Blue Chip Investor Fund.Semi-Annual Report 6                    

2002 Semi-Annual Report 6                                                       

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Board of Trustees                                                               
George Cossolias, CPA                                                           
Allen C. Brown                                                                  
Ross C. Provence                                                                
Jeffrey R. Provence                                                             

Investment Adviser                                                              
Check Capital Management Inc.                                                   
575 Anton Boulevard, Suite 570                                                  
Costa Mesa, CA 92626-7169                                                       

Counsel                                                                         
Thompson Hine LLP                                                               
312 Walnut Street, 14th Floor                                                   
Cincinnati, OH 45202                                                            

Custodian                                                                       
Custodial Trust Co.                                                             
101 Carnegie Center                                                             
Princeton, New Jersey 08540-6231                                                

Dividend Paying Agent,                                                          
Shareholders' Servicing Agent,                                                  
Transfer Agent                                                                  
Mutual Shareholder Services                                                     
8869 Brecksville Rd., Suite C                                                   
Brecksville, Ohio 44141                                                         

Fund Administrator                                                              
Premier Fund Solutions, Inc.                                                    
480 N. Magnolia Avenue, Suite 103                                               
El Cajon, CA 92020                                                              

Independent Auditors                                                            
McCurdy & Associates CPA's, Inc.                                                
27955 Clemens Rd.                                                               
Westlake, Ohio 44145                                                            

BLUE CHIP INVESTOR FUND                                                         
575 Anton Boulevard, Suite 570                                                  
Costa Mesa, California 92626                                                    

This report is provided for the general information of the shareholders of the
Blue Chip Investor Fund. This report is not intended for distribution to
prospective investors in the funds, unless preceded or accompanied by an
effective prospectus.

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘N-30D’ Filing	Date	First	Last	Other Filings

	12/31/02	7		24F-2NT, N-CSR, NSAR-B
Filed on:	8/28/02			NSAR-A
For Period End:	6/30/02	1	7	NSAR-A
	1/1/02	7
	11/1/01	6
				List all Filings

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Filing Submission 0001162044-02-000112 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Blue Chip Investor Funds – ‘N-30D’ for 6/30/02

On: Wednesday, 8/28/02, at 1:05pm ET · For: 6/30/02 · Accession #: 1162044-2-112 · File #: 811-10571

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1Filing Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents