N-Q 1 nq1209.htm THE NOTTINGHAM INVESTMENT TRUST II nq1209.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number 811-06199


The Nottingham Investment Trust II
(Exact name of registrant as specified in charter)


116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina  27802
(Address of principal executive offices)                    (Zip code)


A. Vason Hamrick
 116 South Franklin Street, Post Office Box 69, Rocky Mount, North Carolina  27802
 (Name and address of agent for service)


with a copy to:
The Law Offices of John H. Lively & Associates, Inc.
 A Member Firm of the 1940 Act Law Group
 2041 West 141st Terrace, Suite 119
 Leawood, KS 66224


Registrant’s telephone number, including area code: 252-972-9922

Date of fiscal year end: March 31


Date of reporting period: December 31, 2009
 

 
 

ITEM 1. SCHEDULE OF INVESTMENTS
 
EARNEST Partners Fixed Income Trust
                
                         
Schedule of Investments
                
(Unaudited)
                  
                         
As of December 31, 2009
                
           
 Shares or
  
Coupon /
  
Maturity
  
 Value
           
 Principal
  
Discount Rate
Date
  
 (Note 1)
                         
UNITED STATES AGENCY & RELATED OBLIGATIONS - 42.52%
            
 
*
Alter Barge Line Title XI
  
215,000
  
6.000%
  
3/1/2026
$
     236,330
 
*
Ecuador Government AID Bond
  
26,829
  
7.050%
  
5/1/2015
  
       30,325
   
JPMorgan Chase TLGP
  
250,000
  
2.125%
  
6/22/2012
  
     252,870
   
Matson Navigation Co Inc Title XI
  
494,000
  
5.337%
  
9/4/2028
  
     510,114
   
Morgan Stanley TLGP
  
250,000
  
1.950%
  
6/20/2012
  
     252,314
   
Perforadora Central SA de CV Title XI
  
270,066
  
5.240%
  
12/15/2018
  
     290,833
   
Reinauer Maritime Co LLC Title XI
  
560,000
  
5.875%
  
11/30/2026
  
     609,661
   
Rowan Cos Inc Title XI
  
285,709
  
2.800%
  
10/20/2013
  
     290,711
   
SBA Series 1992-20H
  
49,475
  
7.400%
  
8/1/2012
  
       50,901
   
SBA Series 1995-20L
    
52,870
  
6.450%
  
12/1/2015
  
       57,193
   
SBA Series 1997-20A
  
46,755
  
7.150%
  
1/1/2017
  
       51,016
   
SBA Series 1998-20B
  
143,405
  
6.150%
  
2/1/2018
  
     154,504
   
SBA Series 2000-20K
  
304,510
  
7.220%
  
11/1/2020
  
     332,215
   
SBA Series 2001-20A
  
237,213
  
6.290%
  
1/1/2021
  
     254,671
   
SBA Series 2001-20K
  
395,393
  
5.340%
  
11/1/2021
  
     416,772
   
SBA Series 2002-10B
  
182,514
  
5.300%
  
3/1/2012
  
     187,182
   
SBA Series 2003-10B
  
198,519
  
3.390%
  
3/1/2013
  
     202,600
   
SBA Series 2004-20D
  
150,001
  
4.770%
  
4/1/2024
  
     156,006
   
SBA Series 2005-20B
  
229,093
  
4.625%
  
2/1/2025
  
     237,303
   
SBA Series 2005-20L
  
135,091
  
5.390%
  
12/1/2025
  
     143,238
   
SBA Series 2006-20H
  
154,830
  
5.700%
  
8/1/2026
  
     166,728
   
SBA Series 2006-20K
  
481,846
  
5.360%
  
11/1/2026
  
     512,625
   
SBA Series 2007-20G
  
34,712
  
5.820%
  
7/1/2027
  
       37,712
   
SBA Series 2007-20I
    
128,588
  
5.560%
  
9/1/2027
  
     138,200
   
SBA Series 2008-20A
  
178,631
  
5.170%
  
1/1/2028
  
     189,222
   
SBA Series 2008-20C
  
90,025
  
5.490%
  
3/1/2028
  
       95,388
   
SBA Series 2008-20D
  
177,337
  
5.370%
  
4/1/2028
  
     187,916
   
SBA Series 2008-20E
  
112,035
  
5.490%
  
5/1/2028
  
     119,333
   
SBA Series 2008-20I
    
131,238
  
5.600%
  
9/1/2028
  
     139,881
   
SBA Series 2009-20C
  
97,179
  
4.660%
  
3/1/2029
  
     100,432
   
SBA Series 2009-20F
  
147,090
  
4.950%
  
6/1/2029
  
     153,281
   
Sterling Equipment Title XI
  
218,706
  
6.125%
  
9/28/2019
  
     240,898
   
Tennessee Valley Authority
  
150,000
  
4.650%
  
6/15/2035
  
     134,133
                         
Total United States Agency & Related Obligations (Cost $6,724,896)
          
  6,932,508
                         
ASSET-BACKED SECURITIES - 0.46%
                
   
Consumer Funding 2001-A4
  
34,547
  
4.980%
  
4/20/2012
  
       34,711
   
Massachusetts RRB Trust 1999-1 A5
  
40,357
  
7.030%
  
3/15/2012
  
       40,901
                         
Total Asset-Backed Securities (Cost $77,018)
            
       75,612
                         
                         
                         
                         
                         
                       
  (Continued)
 
EARNEST Partners Fixed Income Trust
                
                         
Schedule of Investments
                
(Unaudited)
                  
                         
As of December 31, 2009
                
           
Shares or
  
Coupon /
  
Maturity
  
 Value
           
Principal
  
Discount Rate
Date
  
 (Note 1)
                         
MORTGAGE-BACKED SECURITIES - 16.00%
              
   
Fannie Mae Grantor Trust 2001-T2 A
  
151,584
  
5.780%
  
11/25/2010
$
     151,584
   
Fannie Mae Pool #958736
  
156,102
  
4.940%
  
5/1/2019
  
     160,997
 
*
Fannie Mae Pool #AD0166
  
149,446
  
4.874%
  
8/1/2019
  
     153,249
 
*
Fannie Mae Pool #AD0342
  
149,711
  
4.639%
  
10/1/2019
  
     151,626
   
Fannie Mae Pool #745275
  
222,707
  
5.000%
  
2/1/2036
  
     228,982
   
Fannie Mae Pool #926050
  
215,269
  
5.000%
  
4/1/2038
  
     221,154
   
Fannie Mae Pool #931293
  
148,975
  
6.000%
  
6/1/2039
  
     157,563
 
*
Federal Agricultural Mortgage Corp
  
271,745
  
6.763%
  
4/25/2013
  
     294,212
   
Federal Home Loan Mortgage Corp
  
150,000
  
3.750%
  
3/27/2019
  
     147,063
 
*
FHA Downtowner Apartments
  
27,142
  
0.084%
  
11/1/2011
  
       27,276
 
*
FHA Reilly #046
    
11,598
  
0.065%
  
12/1/2008
  
       11,085
 
*
FHA USGI #87
    
32,941
  
0.074%
  
8/1/2023
  
       32,873
   
Ginnie Mae II Pool #3665
  
412,273
  
5.500%
  
1/20/2035
  
     433,676
 
*
Ginnie Mae II Pool #4441
  
238,296
  
5.000%
  
5/20/2039
  
     251,677
   
Ginnie Mae Trust 2002-36
  
32,090
  
3.261%
  
12/16/2021
  
       32,164
   
Ginnie Mae Trust 2004-6A
  
7,373
  
5.864%
  
10/16/2023
  
         7,400
   
Ginnie Mae Trust 2009-27 B
  
150,000
  
4.353%
  
2/16/2041
  
     146,166
                         
Total Mortgage-Backed Securities (Cost $2,554,746)
            
  2,608,747
                         
COMMERCIAL MORTGAGE-BACKED SECURITIES - 5.72%
            
   
Citigroup/Deutsche Bank CMT 2006-CD3 AJ
655,000
  
5.688%
  
10/15/2048
  
     378,986
   
JP Morgan Chase CMS Corp Trust 2006-CB17 A3
300,000
  
5.450%
  
12/12/2043
  
     307,763
   
Merrill Lynch/Countrywide CMT 2006-3 AM
320,000
  
5.456%
  
7/12/2046
  
     245,712
                         
Total Commercial Mortgage-Backed Securities (Cost $1,178,003)
          
     932,461
                         
CORPORATE OBLIGATIONS - 32.11%
                
                         
 
Financials - 9.52%
                  
   
GMAC Inc
      
175,000
  
6.875%
  
8/28/2012
  
     171,248
   
Provident Cos Inc
    
375,000
  
7.000%
  
7/15/2018
  
     360,085
   
USB Capital IX
    
650,000
  
6.189%
  
12/29/2049
  
     522,437
   
Wachovia Capital Trust III
  
650,000
  
5.800%
  
3/15/2042
  
     497,250
                       
  1,551,020
 
Industrials - 16.35%
                  
   
American Airlines Pass Through Trust 2001-01
387,973
  
6.977%
  
5/23/2021
  
     312,319
 
*
Burlington Northern and Santa Fe Railway 1998-CTR
240,413
  
6.230%
  
7/2/2018
  
     268,253
   
Continental Airlines Inc
  
273,093
  
7.707%
  
4/2/2021
  
     263,535
   
CSXT TRUST 1998 A
    
300,000
  
6.550%
  
6/15/2013
  
     329,481
   
CVS Pass-Through Trust
  
185,613
  
6.036%
  
12/10/2028
  
     175,653
 
*
Federal Express Corp 1999 Pass Through Trust
109,694
  
7.650%
  
1/15/2022
  
     130,851
   
Ford Motor Credit Co LLC
  
250,000
  
7.375%
  
2/1/2011
  
     255,097
                         
                         
                         
                       
  (Continued)
 
EARNEST Partners Fixed Income Trust
                
                         
Schedule of Investments
                
(Unaudited)
                  
                         
As of December 31, 2009
                
           
Shares or
  
Coupon /
  
Maturity
  
 Value
           
Principal
  
Discount Rate
Date
  
 (Note 1)
                         
 
Industrials - (continued)
                  
   
GATX Financial Corp
    
500,000
  
6.273%
  
6/15/2011
$
     515,519
   
Pulte Homes Inc
    
325,000
  
5.250%
  
1/15/2014
  
     319,313
 
*
Union Pacific Railroad Co 2001 Pass Through Trust
83,783
  
6.630%
  
1/27/2022
  
       95,689
                       
  2,665,710
 
Utilities - 6.24%
                  
   
Commonwealth Edison Co
  
200,000
  
5.900%
  
3/15/2036
  
     198,897
   
FPL Group Capital Inc
  
450,000
  
6.350%
  
10/1/2066
  
     416,250
   
Nevada Power Co
    
375,000
  
5.875%
  
1/15/2015
  
     402,430
                       
  1,017,577
                         
Total Corporate Obligations (Cost $5,499,972)
            
  5,234,307
                         
INVESTMENT COMPANY - 1.40%
                
 
§
Dreyfus Treasury Cash Management, 0.08%
       228,525
          
     228,525
                         
Total Investment Company (Cost $228,525)
              
     228,525
                         
Total Value of Investments (Cost $16,263,160) - 98.21%
          
$
 16,012,160
                         
Other Assets Less Liabilities - 1.79%
              
     291,416
                         
Net Assets - 100%
              
$
 16,303,576
                         
§
Represents 7 day effective yield
                
*
Securities valued using Matrix System (note 1)
              
                         
                         
                         
 
Aggregate cost for financial reporting and federal income tax purposes is the same.  Unrealized
    
 
appreciation / (depreciation) of investments for financial reporting and federal income tax purposes is as follows:
                         
 
Aggregate gross unrealized appreciation
            
$
     426,159
 
Aggregate gross unrealized depreciation
              
    (677,159)
                         
   
Net unrealized depreciation
            
$
    (251,000)
                         
     
Summary of Investments by Category
              
               
% of Net
        
     
Category
        
Assets
  
Value
    
     
United States Agency & Related Obligations
  
42.52%
$
    6,932,508
    
     
Asset-Backed Securities
      
0.46%
  
         75,612
    
     
Mortgage-Backed Securities
      
16.00%
  
    2,608,747
    
     
Commercial Mortgage-Backed Securities
  
5.72%
  
       932,461
    
     
Corporate Obligations
      
32.11%
  
    5,234,307
    
     
Investment Company
      
1.40%
  
       228,525
    
     
Total
        
98.21%
$
  16,012,160
    
                       
  (Continued)
 
 
EARNEST Partners Fixed Income Trust
            
                         
Schedule of Investments
                
(Unaudited)
                  
                         
As of December 31, 2009
                
                         
Note 1 - Investment Valuation
                
                         
The Fund’s investments in securities are carried at value.  Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time.  Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.  Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available or which cannot be accurately valued using the Fund’s normal pricing procedures are valued at fair value as determined  in   good  faith   under  policies  approved   by the   Trustees.
 
Fair value pricing  may be used, for  example,  in situations  where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures.  Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value.
 
This Schedule of Investments includes securities valued at $1,683,446 (10.33% of net assets) whose values have been estimated using a matrix pricing system approved by the Trust’s Board of Trustees.  When a security is valued using the matrix pricing system, the value for the security is determined by considering the yields of securities of comparable price, yield, yield curve, maturity, and relative risk, especially the current market yields of U.S. Treasury securities with similar remaining years to maturity.  The value for the security is then periodically recalibrated by use of an observable input such as a dealer quote.  The values estimated using the matrix pricing system may differ from the values that would have resulted from actual purchase and sale transactions.
 
The Fund has adopted ASC Topic 820, Fair Value Measurements.  ASC Topic 820 defines fair value, establishes a frame work for measuring fair value and expands disclosure about fair value measurements.
 
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1: quoted prices in active markets for identical securities
Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)
Level 3: significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
 
The Fund has adopted FASB guidance updating ASC Topic 820 titled, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly” which provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction that is not orderly, and how that information must be incorporated into fair value measurement.  The guidance emphasizes that even if there has been a significant decrease in volume and level of activity for an asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.
 
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement.
                         
                         
                         
                         
                         
                         
                       
  (Continued)

 
EARNEST Partners Fixed Income Trust
                
                         
Schedule of Investments
                
(Unaudited)
                  
                         
As of December 31, 2009
                
                         
Note 1 - Investment Valuation - continued
                
                         
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used in valuing the Fund's assets:
                         
   
Assets
      
Total
  
 Level 1
  
Level 2
  
Level 3
US Agency Obligations
    
 $ 6,932,508
  
 $          -
  
 $ 6,932,508
  
 $           -
Asset-Backed Securities
    
         75,612
  
             -
  
         75,612
  
              -
Mortgage-Backed Securities
  
    2,608,747
  
             -
  
    2,537,513
  
       71,234
Commercial Mortgage-Backed Securities
  
       932,461
  
             -
  
       932,461
  
              -
Corporate Obligations
    
    5,234,307
  
             -
  
    5,234,307
  
              -
Investment Company
    
       228,525
  
             -
  
       228,525
  
              -
Total
      
 $16,012,160
  
 $          -
  
 $15,940,926
  
 $    71,234
                         
The following is a reconciliation of the Fund's Level 3 investments in securities:
        
                         
     
Balance, beginning of fiscal year
      
$
         91,224
    
       
Accrued discounts / (premiums)
      
              (35)
    
       
Realized gain (loss)
        
            (105)
    
       
Change in unrealized appreciation (depreciation)
  
            (496)
    
       
Net purchases (sales)
        
        (19,354)
    
     
Balance, end of current period
      
$
         71,234
    
                         
                         
The Brown Capital Management Small Company Fund
          
                     
Schedule of Investments
              
(Unaudited)
                
                     
As of December 31, 2009
              
               
Shares
Value (Note 1)
                     
COMMON STOCKS - 92.35%
            
                     
 
Business Services - 18.95%
            
 
*
ACI Worldwide, Inc.
        
         676,133
 $
       11,595,681
   
Balchem Corp.
          
         426,237
  
       14,283,202
 
*
Concur Technologies, Inc.
      
         389,052
  
       16,631,973
 
*
Diodes, Inc.
          
         973,756
  
       19,913,310
 
ß
Dynamic Materials Corp.
      
         922,127
  
       18,488,646
 
*ß
IRIS International, Inc.
        
      1,504,138
  
       18,591,146
 
*
Nuance Communications, Inc.
      
         780,420
  
       12,127,727
 
*ß
PROS Holdings, Inc.
        
      1,730,877
  
       17,914,577
                   
      129,546,262
 
Consumer Related - 7.89%
            
 
*
Dolby Laboratories, Inc.
      
         304,400
  
       14,529,012
 
*
DTS, Inc.
          
         510,467
  
       17,463,076
 
*
Green Mountain Coffee Roasters, Inc.
      
         269,067
  
       21,920,888
                   
       53,912,976
 
Industrial Products & Systems - 19.94%
            
 
*
ANSYS, Inc.
          
         383,396
  
       16,662,390
   
CARBO Ceramics, Inc.
      
         371,825
  
       25,347,310
   
Cognex Corp.
          
         787,700
  
       13,958,044
 
*
Dionex Corp.
          
         138,540
  
       10,233,950
 
*
FEI Co.
          
         751,883
  
       17,563,987
 
*
FLIR Systems, Inc.
        
         618,963
  
       20,252,469
 
*ß
Measurement Specialties, Inc.
      
      1,104,580
  
       11,101,029
   
Sun Hydraulics Corp.
        
         392,505
  
       10,303,256
 
*ß
Symyx Technologies, Inc.
      
      1,974,708
  
       10,860,894
                   
      136,283,329
 
Information/Knowledge Management - 19.38%
            
 
*
Accelrys, Inc.
          
         615,738
  
         3,528,179
 
ß
American Software, Inc.
      
      1,128,693
  
         6,772,158
   
Blackbaud, Inc.
        
         789,197
  
       18,648,725
 
*
Manhattan Associates, Inc.
      
         605,903
  
       14,559,849
 
*
Netscout Systems, Inc.
      
      1,215,895
  
       17,800,703
   
NIC, Inc.
          
      1,059,222
  
         9,681,289
   
Quality Systems, Inc.
        
         300,673
  
       18,879,258
 
*
Rovi Corp.
          
         715,045
  
       22,788,484
 
*
Tyler Technologies, Inc.
      
         994,838
  
       19,807,225
                   
      132,465,870
                     
                     
                     
                     
                     
                   
 (Continued)
 
The Brown Capital Management Small Company Fund
          
                     
Schedule of Investments
              
(Unaudited)
                
                     
As of December 31, 2009
              
               
 Shares
 Value (Note 1)
                     
COMMON STOCKS - (Continued)
            
                     
 
Medical/Health Care - 18.86%
            
 
*
Abaxis, Inc.
          
         850,767
 $
       21,737,097
 
*
Affymetrix, Inc.
          
         780,360
  
         4,557,302
 
*
Bruker Corp.
          
         568,600
  
         6,857,316
 
*
Gen-Probe, Inc.
        
         307,168
  
       13,177,507
 
*
Immucor, Inc.
          
         896,516
  
       18,145,484
 
*ß
Kensey Nash Corp.
        
         726,597
  
       18,528,223
 
*
MedAssets, Inc.
        
         458,012
  
         9,714,435
   
Meridian Bioscience, Inc.
      
         862,796
  
       18,593,254
 
*
Palomar Medical Technologies, Inc.
      
         417,270
  
         4,206,082
   
Techne Corp.
          
         196,098
  
       13,444,479
                   
      128,961,179
 
Pharmaceuticals - 7.33%
              
 
*
Albany Molecular Research, Inc.
      
         381,293
  
         3,462,140
 
*
Human Genome Sciences, Inc.
      
         130,874
  
         4,004,744
 
*
Incyte Corp Ltd.
        
         431,570
  
         3,931,603
 
*
Kendle International, Inc.
      
         568,810
  
       10,414,911
   
Medicis Pharmaceutical Corp.
      
         262,570
  
         7,102,519
 
*
Neogen Corp.
          
         896,938
  
       21,176,706
                   
       50,092,623
                     
   
Total Common Stocks (Cost $468,771,428)
        
      631,262,239
                     
INVESTMENT COMPANY - 6.69%
            
 
§
Dreyfus Cash Management, 0.08%
          
       30,901,958
 
§
Fidelity Institutional Money Market Funds, 0.25%
        
       14,859,813
                     
   
Total Investment Company (Cost $45,761,771)
        
       45,761,771
                     
Total Value of Investments (Cost $514,533,199) - 99.04%
      
$
      677,024,010
                     
Other Assets Less Liabilities  - 0.96%
          
         6,579,547
                     
 
Net Assets - 100%
            
$
      683,603,557
                     
*
Non-income producing investment
            
§
Represents 7 day effective yield.
            
ß
Affiliated company - The Fund owns greater than 5% of this security.  See Note 1 for more information.
                     
                     
                     
                     
                   
(Continued)
 
The Brown Capital Management Small Company Fund
          
                     
Schedule of Investments
              
(Unaudited)
                
                     
As of December 31, 2009
              
                   
Value (Note 1)
                     
 
Aggregate cost for financial reporting and federal income tax purposes is the same.  Unrealized
 
appreciation / (depreciation) of investments for financial reporting and federal income tax purposes is as follows:
                     
 
Aggregate gross unrealized appreciation
        
$
      179,834,340
 
Aggregate gross unrealized depreciation
          
      (17,343,529)
                     
   
Net unrealized appreciation
        
$
      162,490,811
                     
                     
       
Summary of Investments by Sector
        
           
% of Net
        
       
Sector
  
Assets
  
Value
    
       
Business Services
  
18.95%
$
  129,546,262
    
       
Consumer Related
  
7.89%
  
    53,912,976
    
       
Industrial Products & Systems
19.94%
  
  136,283,329
    
       
Information/Knowledge
          
       
         Management
  
19.38%
  
  132,465,870
    
       
Medical/Health Care
18.86%
  
  128,961,179
    
       
Pharmaceuticals
  
7.33%
  
    50,092,623
    
       
Other
  
6.69%
  
    45,761,771
    
       
Total
  
99.04%
$
  677,024,010
    
                     
                     
Note 1 - Investment Valuation
            
                     
The Fund’s investments in securities are carried at value.  Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time.  Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.  Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available or which cannot be accurately valued using the Fund’s normal pricing procedures are valued at fair value as determined  in   good  faith   under  policies  approved   by the   Trustees.
 
Fair value pricing  may be used, for  example,  in situations  where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures.  Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value.
 
The Fund has adopted ASC Topic 820, Fair Value Measurements.  ASC Topic 820 defines fair value, establishes a frame work for measuring fair value and expands disclosure about fair value measurements.
                     
                     
                     
                   
(Continued)
 
The Brown Capital Management Small Company Fund
          
                     
Schedule of Investments
              
(Unaudited)
                
                     
As of December 31, 2009
              
                     
Note 1 - Investment Valuation - continued
            
                     
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1: quoted prices in active markets for identical securities
Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)
Level 3: significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
 
The Fund has adopted FASB guidance updating ASC Topic 820 titled, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly” which provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction that is not orderly, and how that information must be incorporated into fair value measurement.  The guidance emphasizes that even if there has been a significant decrease in volume and level of activity for an asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.
 
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used in valuing the Fund's assets:
                     
Assets
    
Total
  
Level 1
  
 Level 2
  
 Level 3
Common Stocks
  
$    631,262,239
$     631,262,239
  
 $                   -
  
 $                  -
Investment Company
  
45,761,771
                          -
    
 45,761,771
  
                    -
Total
    
$    677,024,010
$     631,262,239
   $        45,761,771 
  
 $                  -
                     
Affiliated Companies
                
An affiliated company is one that can have direct or indirect common ownership.  The Fund owns greater than 5% of the companies listed in the table below as of December 31, 2009.
                     
Security
  
Number of Shares
Net Profit (Loss)
  
Dividends or Interest
Value
                     
American Software, Inc.
1,128,693
-
    
-
  
 $      6,772,158
Dynamic Materials Corp.
922,127
-
    
-
  
       18,488,646
IRIS International, Inc.
  
1,504,138
-
    
-
  
       18,591,146
Kensey Nash Corp.
  
726,597
-
    
-
  
       18,528,223
Measurement Specialties, Inc.
1,104,580
-
    
-
  
       11,101,029
Pros Holdings, Inc.
  
1,730,877
-
    
-
  
       17,914,577
Symix Technologies, Inc.
1,974,708
-
    
-
  
       10,860,894
TOTAL
    
9,091,720
-
    
-
  
 $   102,256,673
                     

 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
             
Shares
Value (Note 1)
                   
COMMON STOCKS - 99.48%
            
                   
 
Australian Equity - 1.59%
            
 
 
Redflex Holdings Ltd
      
           93,528
 $
           173,900
                 
           173,900
 
Austrian Equity - 1.89%
            
 
 
Raiffeisen International Bank Holding AG
    
             3,674
  
           207,758
                 
           207,758
 
Bermuda Equities - 3.90%
            
 
*
Nabors Industries Ltd
      
             9,182
  
           200,994
 
*
Tyco International Ltd
      
             6,358
  
           226,853
                 
           427,847
 
Canadian Equities - 3.72%
            
 
 
Canadian Natural Resources Ltd
      
             2,826
  
           204,296
 
 
Le Chateau Inc
        
           15,700
  
           203,848
                 
           408,144
 
Chinese Equities - 3.85%
            
 
 
China Shineway Pharmaceutical Group Ltd
    
          112,310
  
           210,605
 
 
Ping An Insurance Group Co of China Ltd
    
           24,100
  
           211,354
                 
           421,959
 
Egyptian Equity - 1.27%
            
 
Ω
Orascom Telecom Holding SAE
      
             6,045
  
           138,975
                 
           138,975
 
Finland Equity - 2.58%
            
 
 
Kone OYJ
        
             6,600
  
           283,079
                 
           283,079
 
French Equities - 5.33%
            
 
*µ
Flamel Technologies SA
      
             6,026
  
             44,592
 
 
Neopost SA
        
             2,803
  
           231,416
 
 
Sanofi-Aventis SA
      
             3,911
  
           308,280
                 
           584,288
 
German Equity - 1.55%
            
 
*
Bayerische Motoren Werke AG
      
             3,705
  
           169,730
                 
           169,730
 
Hong Kong Equities - 5.46%
            
 
 
Chaoda Modern Agriculture Holdings Ltd
    
          288,000
  
           308,288
 
 
Esprit Holdings Ltd
      
           34,804
  
           232,287
 
 
Vitasoy International Holdings Ltd
      
           83,215
  
             58,383
                 
           598,958
 
Indian Equity - 1.85%
            
 
Ω
LIC Housing Finance Ltd
      
             5,866
  
           202,395
                 
           202,395
                   
                   
                 
(Continued)
 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
             
Shares
Value (Note 1)
                   
COMMON STOCKS - (Continued)
            
                   
 
Irish Equities - 6.19%
            
 
 
C&C Group PLC
      
           45,363
 $
           195,474
 
 
DCC Plc
        
             8,627
  
           240,833
 
*µ
ICON PLC
        
             7,924
  
           172,189
 
 
Total Produce PLC
      
          145,371
  
             70,758
                 
           679,254
 
Israeli Equity - 2.47%
            
 
µ
Teva Pharmaceutical Industries Ltd
      
             4,814
  
           270,451
                 
           270,451
 
Italian Equity - 2.45%
            
 
 
Azimut Holding SpA
      
           20,014
  
           268,756
                 
           268,756
 
Japanese Equities - 16.46%
            
 
 
Asatsu-DK Inc
        
             7,072
  
           139,925
 
 
Daibiru Corp
        
           20,400
  
           146,975
 
 
Japan Tobacco Inc
      
                127
  
           430,019
 
 
Mitsubishi Estate Co Ltd
      
           10,700
  
           171,080
 
 
Nissin Healthcare Food Service Co Ltd
    
             8,387
  
           104,338
 
*
Rakuten Inc
        
                254
  
           194,264
 
 
Sapporo Holdings Ltd
      
           31,000
  
           170,695
 
 
Suruga Bank Ltd
      
           18,800
  
           163,920
 
*
Yamaha Motor Co Ltd
      
           22,490
  
           283,680
                 
        1,804,896
 
Korean Equity - 1.76%
            
 
µ
SK Telecom Co Ltd
      
           11,903
  
           193,543
                 
           193,543
 
Mexican Equities - 3.63%
            
 
µ
Fomento Economico Mexicano SAB de CV
    
             4,788
  
           229,249
 
 
Wal-Mart de Mexico SAB de CV
      
           37,518
  
           168,436
                 
           397,685
 
Netherlands Equity - 1.85%
            
 
 
Wolters Kluwer NV
      
             9,281
  
           203,286
                 
           203,286
 
Singapore Equity - 2.45%
            
 
 
UOB-Kay Hian Holdings Ltd
      
          249,962
  
           268,623
                 
           268,623
 
South African Equity - 2.15%
            
 
µ
Sasol Ltd
        
             5,911
  
           236,085
                 
           236,085
                   
                   
                   
                 
(Continued)
 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
             
Shares
Value (Note 1)
                   
COMMON STOCKS - (Continued)
            
                   
 
Swiss Equities - 9.86%
            
 
 
Nestle SA
        
             7,781
 $
           376,815
 
 
Nobel Biocare Holding AG
      
             7,376
  
           247,480
 
 
Roche Holding AG
      
             1,502
  
           254,729
 
 
The Swatch Group AG
      
                799
  
           201,870
                 
        1,080,894
 
United Kingdom Equities - 15.27%
            
 
 
BP PLC
        
           20,311
  
           196,958
 
 
Diageo PLC
        
           15,435
  
           270,413
 
 
International Personal Finance PLC
    
           68,204
  
           229,279
 
 
Management Consulting Group PLC
    
          359,431
  
           103,111
 
 
Reed Elsevier PLC
      
           40,508
  
           334,872
 
*
Southern Cross Healthcare Ltd
      
          101,770
  
           228,626
 
 
United Business Media Ltd
      
           23,448
  
           175,991
 
 
The Vitec Group PLC
      
           21,409
  
           134,598
                 
        1,673,848
 
United States Equity - 1.95%
            
 
 
Invesco Ltd
        
             9,106
  
           213,900
                 
           213,900
                   
   
Total Common Stocks (Cost $9,272,836)
        
       10,908,254
                   
INVESTMENT COMPANY - 0.24%
            
 
§
Dreyfus Cash Management, 0.08%
        
             26,545
                   
   
Total Investment Company (Cost $26,545)
        
             26,545
                   
Total Value of Investments (Cost $9,299,381) - 99.72%
      
 $
       10,934,799
                   
Other Assets Less Liabilities - 0.28%
          
             30,314
                   
 
Net Assets - 100%
          
 $
       10,965,113
                   
*
Non-income producing investment.
            
µ
American Depositary Receipt.
            
Ω
Global Depositary Receipts.
            
§
Represents 7 day effective yield.
            
                   
                   
                   
                   
                   
                 
(Continued)
 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
                 
Value (Note 1)
                   
 
The following acronyms and abbreviations are used in this portfolio:
      
                   
 
AG - Aktiengesellschaft (Austrian, German, & Switzerland)
        
 
NV - Naamloze Vennootschap (Dutch)
            
 
OYJ - Julkinen Osakeyhtiö (Finland)
            
 
PLC - Public Limited Company (Ireland & United Kingdom)
        
 
SA - Societe Anonyme (French & Switzerland)
          
 
SAB de CV - Convertible Securities (Mexican)
          
 
SAE - Societe Anonyme Egyptienne (Egyptian)
          
 
SpA - Societa Per Azioni (Italian)
            
                   
                   
                   
 
Aggregate cost for financial reporting and federal income tax purposes is the same.  Unrealized
 
appreciation / (depreciation) of investments for financial reporting and federal income tax purposes is as follows:
                   
 
Aggregate gross unrealized appreciation
      
 $
        2,425,724
 
Aggregate gross unrealized depreciation
        
          (790,306)
                   
   
Net unrealized appreciation
        
 $
        1,635,418
                   
     
Summary of Investments by Sector
        
         
% of Net
        
     
Sector
  
Assets
  
Value
    
     
Consumer Discretionary
21.69%
$
       2,378,688
    
     
Consumer Staples
  
20.78%
  
       2,278,531
    
     
Energy
  
7.64%
  
          838,333
    
     
Financials
  
19.01%
  
       2,084,041
    
     
Health Care
  
15.84%
  
       1,736,951
    
     
Industrials
  
7.79%
  
          853,876
    
     
Information Technology
3.70%
  
          405,317
    
     
Telecommunication Services
3.03%
  
          332,517
    
     
Other
  
0.24%
  
           26,545
    
     
Total
  
99.72%
$
     10,934,799
    
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                 
(Continued)
 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
                   
Note 1 - Investment Valuation
            
                   
The Fund’s investments in securities are carried at value.  Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time.  Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.  Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available or which cannot be accurately valued using the Fund’s normal pricing procedures are valued at fair value as determined  in   good  faith   under  policies  approved   by the   Trustees.
 
Fair value pricing  may be used, for  example,  in situations  where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures.  Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value.
 
The Fund has adopted ASC Topic 820, Fair Value Measurements.  ASC Topic 820 defines fair value, establishes a frame work for measuring fair value and expands disclosure about fair value measurements.
 
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1: quoted prices in active markets for identical securities
Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)
Level 3: significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
 
The Fund has adopted FASB guidance updating ASC Topic 820 titled, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly” which provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction that is not orderly, and how that information must be incorporated into fair value measurement.  The guidance emphasizes that even if there has been a significant decrease in volume and level of activity for an asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.
 
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used in valuing the Fund's assets:
                   
Assets
     Total  
Level 1
 Level 2
 
 Level 3
Common Stocks
$     10,908,254
  
$  10,908,254
        $
 -
 $                 -
Investment Company
26,545
  
                  -
  
26,545
  
                    -
Total
  
$     10,934,799
  
$  10,908,254
$      26,545
  
 $                 -
                   
                   
                 
(Continued)
 
The Brown Capital Management International Equity Fund
        
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
                   
Note 2 - Foreign Currency Translation
            
                   
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation.  Purchases and sales of securities and income items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.  The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held.  Such changes are included in net realized and unrealized gain or loss from investments.
 
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes, and the U.S. dollar equivalent of the amounts actually received or paid.  Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
                   
                   
 
 

The Brown Capital Management Mid-Cap Fund
          
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
             
Shares
  
 Value (Note 1)
                   
COMMON STOCKS - 99.56%
            
                   
 
Consumer Discretionary - 14.55%
            
 
 
Coach, Inc.
        
            9,528
$
           348,058
 
*
Dick's Sporting Goods, Inc.
      
           11,196
  
           278,445
 
 
Family Dollar Stores, Inc.
      
            4,298
  
           119,613
 
 
Staples, Inc.
        
            6,333
  
           155,728
 
*
Starbucks Corp.
      
            8,231
  
           189,807
 
*
Tractor Supply Co.
      
            5,583
  
           295,676
                 
        1,387,327
 
Consumer Staples - 3.41%
            
 
*
Hansen Natural Corp.
      
            3,902
  
           149,837
 
*
Whole Foods Market, Inc.
      
            6,381
  
           175,158
                 
           324,995
 
Energy - 7.78%
              
 
*
Cameron International Corp.
      
            6,560
  
           274,208
 
 
Diamond Offshore Drilling, Inc.
      
            3,418
  
           336,400
 
 
Smith International, Inc.
      
            4,855
  
           131,910
                 
           742,518
 
Financials - 3.98%
              
 
*
Stifel Financial Corp.
      
            2,942
  
           174,284
 
 
T Rowe Price Group, Inc.
      
            3,862
  
           205,651
                 
           379,935
 
Health Care - 25.49%
            
 
*
Allscripts-Misys Healthcare Solutions, Inc.
    
           12,587
  
           254,635
 
*
Celgene Corp.
        
            6,773
  
           377,121
 
*
Covance, Inc.
        
            4,864
  
           265,429
 
*
IDEXX Laboratories, Inc.
      
            4,018
  
           214,722
 
 
Meridian Bioscience, Inc.
      
            8,959
  
           193,066
 
*
Myriad Genetics, Inc.
      
            6,790
  
           177,219
 
*
Parexel International Corp.
      
           13,410
  
           189,081
 
μ
Shire PLC
        
            4,367
  
           256,343
 
*
St Jude Medical, Inc.
      
            7,789
  
           286,479
 
*
Waters Corp.
        
            3,513
  
           217,665
                 
        2,431,760
                   
                   
                   
                   
                   
                   
                   
                   
                   
                 
 (Continued)
 
The Brown Capital Management Mid-Cap Fund
          
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
             
 Shares
  
 Value (Note 1)
                   
COMMON STOCKS - (Continued)
            
                   
 
Industrials - 14.29%
            
 
*
Copart, Inc.
        
            6,489
$
           237,692
 
 
Expeditors International of Washington, Inc.
    
            6,032
  
           209,491
 
 
Fastenal Co.
        
            4,185
  
           174,264
 
*
Iron Mountain, Inc.
      
            8,606
  
           195,873
 
 
JB Hunt Transport Services, Inc.
      
            4,497
  
           145,118
 
 
MSC Industrial Direct Co.
      
            2,775
  
           130,425
 
*
Old Dominion Freight Line, Inc.
      
            2,842
  
             87,249
 
*
Quanta Services, Inc.
      
            8,795
  
           183,288
                 
        1,363,400
 
Information Technology - 26.14%
            
 
*
Akamai Technologies, Inc.
      
            8,394
  
           212,620
 
*
ANSYS, Inc.
        
            2,289
  
             99,480
 
 
Blackbaud, Inc.
        
            9,515
  
           224,839
 
*
Citrix Systems, Inc.
      
            4,766
  
           198,313
 
*
Concur Technologies, Inc.
      
            2,573
  
           109,996
 
*
Diodes, Inc.
        
            6,357
  
           130,001
 
 
Factset Research Systems, Inc.
      
            2,877
  
           189,508
 
*
FLIR Systems, Inc.
      
           14,673
  
           480,100
 
*
NetApp, Inc.
        
            6,461
  
           222,194
 
*
Rovi Corp.
        
            5,354
  
           170,632
 
 
The Western Union Co.
      
           11,896
  
           224,240
 
*
Trimble Navigation Ltd.
      
            9,176
  
           231,235
                 
        2,493,158
 
Materials - 3.92%
              
 
 
Ecolab, Inc.
        
            4,961
  
           221,162
 
 
Sigma-Aldrich Corp.
      
            3,025
  
           152,853
                 
           374,015
                   
   
Total Common Stocks (Cost $7,313,752)
        
        9,497,108
                   
INVESTMENT COMPANY - 6.54%
            
 
§
Dreyfus Cash Management, 0.08%
        
           460,202
 
§
Fidelity Institutional Money Market Funds, 0.25%
      
           163,150
                   
   
Total Investment Company (Cost $623,352)
        
           623,352
                   
Total Value of Investments (Cost $7,937,104) - 106.10%
    
$
       10,120,460
                   
Liabilities in Excess of Other Assets  - (6.10)%
        
          (582,197)
                   
 
Net Assets - 100%
          
$
        9,538,263
                 
 (Continued)
 
The Brown Capital Management Mid-Cap Fund
          
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
                 
 Value (Note 1)
                   
 
*
Non-income producing investment
            
 
§
Represents 7 day effective yield
            
 
μ
American Depositary Receipt
            
                   
 
The following acronym is used in this portfolio:
          
 
PLC - Public Limited Company (British)
            
                   
                   
                   
 
Aggregate cost for financial reporting and federal income tax purposes is the same.  Unrealized
 
appreciation / (depreciation) of investments for financial reporting and federal income tax purposes is as follows:
                   
 
Aggregate gross unrealized appreciation
      
 $
        2,219,855
 
Aggregate gross unrealized depreciation
        
            (36,499)
                   
   
Net unrealized appreciation
        
 $
        2,183,356
                   
                   
     
Summary of Investments by Sector
        
         
% of Net
        
     
Sector
  
Assets
  
Value
    
     
Consumer Discretionary
14.55%
$
      1,387,327
    
     
Consumer Staples
  
3.41%
  
         324,995
    
     
Energy
  
7.78%
  
         742,518
    
     
Financials
  
3.98%
  
         379,935
    
     
Health Care
  
25.49%
  
      2,431,760
    
     
Industrials
  
14.29%
  
      1,363,400
    
     
Information Technology
26.14%
  
      2,493,158
    
     
Materials
  
3.92%
  
         374,015
    
     
Other
  
6.54%
  
         623,352
    
     
Total
  
106.10%
$
    10,120,460
    
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                 
 (Continued)
 
The Brown Capital Management Mid-Cap Fund
          
                   
Schedule of Investments
            
(Unaudited)
              
                   
As of December 31, 2009
            
                   
Note 1 - Investment Valuation
            
                   
The Fund’s investments in securities are carried at value.  Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time.  Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.  Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available or which cannot be accurately valued using the Fund’s normal pricing procedures are valued at fair value as determined  in   good  faith   under  policies  approved   by the   Trustees.
 
Fair value pricing  may be used, for  example,  in situations  where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures.  Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value.
 
The Fund has adopted ASC Topic 820, Fair Value Measurements.  ASC Topic 820 defines fair value, establishes a frame work for measuring fair value and expands disclosure about fair value measurements.
 
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
 
Level 1: quoted prices in active markets for identical securities
Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.)
Level 3: significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
 
The Fund has adopted FASB guidance updating ASC Topic 820 titled, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly” which provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction that is not orderly, and how that information must be incorporated into fair value measurement.  The guidance emphasizes that even if there has been a significant decrease in volume and level of activity for an asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.
 
An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used in valuing the Fund's assets:
                   
Assets
     Total  
Level 1
 Level 2
 
 Level 3
Common Stocks
$     9,497,108
  
$  9,497,108
                        -
  
 $                 -
Investment Company
623,352
  
                    -
  
$     623,352
  
                    -
Total
  
$   10,120,460
  
$  9,497,108
$     623,352
  
 $                 -
                   
                   



ITEM 2. CONTROLS AND PROCEDURES
 
(a)
The Principal Executive Officers and the Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing of this report.
 
(b)
There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.



ITEM 3. EXHIBITS

Certifications required pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit A.






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
The Nottingham Investment Trust II
 
By: (Signature and Title) /s/ Angela D. Mincher
 
Angela D. Mincher
Treasurer, Assistant Secretary, and Principal
Financial Officer
Date: February 26, 2010  
 
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 

By: (Signature and Title) /s/ Douglas S. Folk
 
Douglas S. Folk
President and Principal Executive Officer,
EARNEST Partners Fixed Income Trust
Date: February 26, 2010  
 
 

By: (Signature and Title) /s/ Keith A. Lee
 
 Keith A. Lee
Trustee, The Nottingham Investment Trust II
Vice President and Principal Executive Officer,
The Brown Capital Management Small Company
Fund, The Brown Capital Management
International Equity Fund, and The Brown
Capital Management Mid-Cap Fund
 Date: February 28, 2010  
 
 

 
By:  (Signature and Title) /s/ Angela D. Mincher
 
 
Angela D. Mincher
Treasurer, Assistant Secretary, and Principal
Financial Officer, The Nottingham Investment
Trust II
Date: February 26, 2010