N-CSRS 1 jhaverincsrs1204.htm Jhaveri Value Fund  







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

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-8974


The Jhaveri Trust

(Exact name of registrant as specified in charter)


18820 High Parkway, Cleveland, Ohio 44116

(Address of principal executive offices)

(Zip code)


Ramesh C. Jhaveri, 18820 High Parkway, Cleveland, Ohio 44116

(Name and address of agent for service)


With copy to:

Donald S. Mendelsohn, Thompson Hine LLP.

312 Walnut St., 14th Floor, Cincinnati, Ohio 45202



Registrant's telephone number, including area code: (440) 356-1565


Date of fiscal year end: March 31


Date of reporting period: September 30, 2004


Form N-CSRS is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSRS in its regulatory, disclosure review, inspection and policymaking roles.


A registrant is required to disclose the information specified by Form N-CSRS, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSRS unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1.  Reports to Stockholders.













SEMI-ANNUAL REPORT







Jhaveri Value Fund




A No-Load Capital Appreciation Fund




















September 30, 2004








December 3, 2004



Dear Fellow Shareholders:


In 2004 the market was in a cyclical trading range.  In such a market, active investment management becomes increasingly important.  JVF’s NAV as of 11/30/04 was $9.01 for a year-to-date return of 3.92%*.  With the recent market rise, we feel the market is overbought in the near term and subsequently we have accumulated a sizeable cash position.  The long term prospects for the market continue to be positive and we believe this cash position will allow us to take advantage of the strong sectors for the coming year.


Market Outlook


The seemingly endless presidential campaign and the uncertainty of the election outcome is finally over.  With the prospects for solid post-election gains, the money poured in and the market made a strong advance.  With a Republican majority in both houses, investors are optimistic about a pro-growth environment.  The privatization of social security, tort reform, and reduction in the deficit are all on the agenda.  Under this favorable economic and political climate, the prospect for a market advance has significantly improved.  Here are some highlights:


-

Oil made a new high of $55 in November.  However, with supply increasing moderately, demand leveling off, and prospects for less frequent supply interruptions, oil declined below $45 and the trend appears to be downward.

-

The US dollar is at a multi-year low against the Canadian dollar, Euro, Pound, and the major Asian currencies.  If the US dollar is at a trend reversal point, this should have a favorable impact on trade and current account deficits.

-

The trend for interest rates is up and the yield curve is expected to be less steep.  However, the Federal Reserve intimates that a rise in interest rates will be at a measured pace to accommodate economic growth and price stability.

-

Inflation should remain moderate with US productivity still improving.

-

Institutional investors are increasing asset allocation to equities, and individual investors are continuing to pour money into Mutual Funds.


All these factors point to a long term uptrend; however, insurgencies in Iraq and the Middle East, and other global terrorist threats may moderate the market advance and increase market volatility.  We continue to be on guard for these geopolitical events and manage investments in the direction of short, medium, and long term trends.  The Jhaveri Value Fund is a diversified portfolio invested in primarily high quality, large capitalization stocks.  We diligently take profit in fully priced or extended stocks and look for bargains in good quality undervalued securities.  We believe our combination of short and long cycle investment strategies will continue to perform well through the upcoming market conditions.  We thank you for your continued support.


Sincerely,

[jhaverincsrs1204001.jpg]

          [jhaverincsrs1204002.jpg]

Ramesh C. Jhaveri - CEO

Saumil R. Jhaveri – President



*JVF Performance – 9/30/04

1-year  =  9.08%

5-year  = - 2.49%

Since Inception  =  2.32%

Past performance is not predictive of future performance.  The value of shares will fluctuate and will be worth more or less than their original cost at the time of redemption.  The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.






 

The following chart gives a visual breakdown of the Fund by the industry sectors

  
 

the underlying securities represent as a percentage of the portfolio of investments.

  



[jhaverincsrs1204004.jpg]



Jhaveri Value Fund  

 

 

 

 

 

       
     

Schedule of Investments

     

September 30, 2004 (Unaudited)

 Shares/Principal Amt- % of Assets

 

 

 

 

       Market Value

       

 COMMON STOCKS

 

 

 

 

 

       

 Beverages - 1.88%

 

 

 Radio Broadcasting Stations - 0.68%

 

        1,500

Diageo PLC

    75,645

 

 2,000

Clear Channel Communications

62,340

        2,000

Pepsico, Inc.

    97,300

 

 

 

 
  

  172,945

 

 Retail-Auto Dealers & Gasoline Satations - 0.35%

 

 Bottled & Canned Soft Drinks - 1.52%

 

 

 1,500

Carmax, Inc. *

32,325

        3,500

Coca Cola Co.

  140,175

    

 

 

 

 

 Retail-Drug Stores and Proprietary Stores - 0.71%

 

 Cable & Other Pay Television Services - 0.97%

  

 1,000

Express Scripts, Inc. *

65,340

        2,000

Comcast Corp. *

    55,840

 

 

 

 

        1,000

Viacom Inc., CL B

    33,560

 

 Retail-Eating Places - 0.67%

 

 

 

    89,400

 

 1,000

Mcdonalds Corp.

28,030

    

 1,000

Wendy's International, Inc.

33,600

 Communications Equipment - 1.31%

 

 

 

 

61,630

        7,500

UT Starcom, Inc. *

  120,825

 

 Retail-Family Clothing Stores - 0.41%

 

 

 

 

 

 2,000

Gap, Inc.

37,400

 Computer & Office Equipment - 4.72%

     

        1,000

Hitachi Ltd.

    60,350

 

 Retail-Grocery Stores - 0.21%

 

        8,500

Hewlett-Packard Co.

  159,375

 

 1,000

Safeway, Inc. *

19,310

        2,500

Intl Business Machines, Inc.

  214,350

 

 

 

 

  

  434,075

 

 Retail-Jewelry Stores - 0.17%

 

 Computer Communications Equipment - 1.77%

 

 

    500

Tiffany & Co.

15,370

        9,000

Cisco Systems, Inc. *

  162,900

    

 

 

 

 

 Retail-Variety Stores - 0.87%

 

 Computer Storage Devices - 0.13%

  

 1,500

Wal-Mart Stores, Inc.

79,800

        1,000

EMC Corp. *

    11,540

 

 

 

 

    

 Security & Commodity Brokers - 0.19%

 

 Dolls & Stuffed Toys - 1.08%

 

 

    500

Edwards, A.G., Inc.

17,310

        5,500

Mattel, Inc.

    99,715

    

 

 

 

 

 Security Brokers, Dealers & Flotation Companies - 2.49%

 

 Electric & Other Services Combined - 0.69%

  

 6,000

Schwab (Charles) Corp.

55,140

        1,500

Public Services Enterprises

    63,900

 

 3,500

Merrill Lynch & Co., Inc.

       174,020

      

       229,160

 Electric Services - 0.33%

 

 

 Semiconductors & Related Devices - 9.62%

 

        1,000

Southern Co.

    29,980

 

 8,000

Applied Materials, Inc. *

       131,920

 

 

 

 

21,200

Intel Corp.

       425,272

 Electrical Industrial Apparatus - 0.09%

  

 1,000

National Semiconductor Corp.

15,490

  500

American Power Conversion Corp.

     8,695

 

 1,000

Nvidia Corp. *

14,520

    

 6,000

STMicroelectronics

       103,680

 Electronic & Other Electrical - 0.55%

 

 

 2,000

Taiwan Semiconductor

14,283

        1,500

General Electric Co.

    50,370

 

 8,500

Texas Instruments, Inc.

       180,880

 

 

 

 

 

 

       886,045

 Electronic Computers - 0.77%

  

 Services-Computer Integrated Systems Design - 0.15%

 

        2,000

Dell Computer Corp. *

    71,200

 

 1,000

Titan Corp. *

13,970

       

 Finance Services - 0.15%

 

 

 Services-Educational Services - 0.93%

 

        1,000

Janus Capital Group

    13,610

 

 3,000

Career Education Corp. *

85,290

 

 

 

 

 

 

 

 Federal & Federally-Sponsored Credit Agencies - 0.69%

  

 Services-Engineering, Accounting, Research, Management - 0.49%

 

        1,000

Federal National Mortgage Assoc.

    63,400

 

 1,500

Paychex, Inc.

45,225

       

 Food And Kindred Products - 0.31%

 

 

 Services-General Medical & Surgical Hospitals - 1.02%

 

  500

Unilever NV

    28,900

 

 3,000

Health Management Assoc, Inc. CL A

61,290

 

 

 

 

 3,000

Tenet Healthcare *

32,370

 Games, Toys & Children's Vehicles (No Dolls & Bicycles) - 1.10%

   

93,660

        5,000

Leapfrog Enterprises, Inc. *

  101,250

 

 Services-Health Services - 0.34%

 
    

    500

Henry Schein, Inc. *

31,155

 Heavy Construction Other Than Building Construction - 0.21%

 

 

 

 

 

  500

Jacobs Engineering Group, Inc. *

    19,145

 

 Services-Miscellaneous Health & Allied - 0.34%

 

 

 

 

 

 1,000

Davita, Inc. *

31,150

 Household Appliances - 0.80%

     

        4,000

Maytag Corp.

    73,480

 

 Services-Miscellaneous Amusement & Recreation - 0.98%

 

    

 4,000

The Walt Disney Co.

90,200

 Household Audio & Video Equipment - 1.12%

 

 

 

 

 

        3,000

Sony Corp.

  103,170

 

 Services-Prepackaged Software - 6.20%

 

 

 

 

 

 4,000

Sybase, Inc. *

55,160

 Ice Cream & Frozen Desserts - 0.49%

  

        14,900

Microsoft Corp.

       411,985

        1,500

Dean Foods Co. *

    45,030

 

 6,000

Oracle Corp. *

67,680

    

 2,000

Veritas Software *

35,600

 Investment Services - 0.25%

 

 

 

 

       570,425

        2,000

E Trade Financial Corp. *

    22,840

    

 

 

 

 

 Services-Video Tape Rental - 0.25%

 

 Industrial Inorganic Chemicals - 0.15%

  

 3,000

Blockbuster, Inc.

22,770

  500

Engelhard Corp.

    14,175

 

 

 

 
    

 Special Industry Machinery - 0.87%

 

 Malt Beverages - 0.54%

 

 

 3,000

Novellus Systems, Inc. *

79,920

        1,000

Anheuser Busch Co., Inc.

    49,950

    

 

 

 

 

 Sporting & Athletic Goods - 0.46%

 

 Metalworking Machinery & Equipment - 0.96%

  

 4,000

Callaway Golf

42,280

        2,500

SPX Corporation

    88,500

 

 

 

 
    

 State Commercial Banks - 0.46%

 

 Miscellaneous Manufacturing Industries - 0.39%

 

 

 1,000

State Street

42,710

        1,000

International Game Technology

    35,950

    

 

 

 

 

 Surgical & Medical Instruments - 0.87%

 

 Motor Vehicle Parts & Accessories - 0.32%

  

 2,500

Baxter Labs

80,400

        1,000

American Axle and Manufacturing

    29,260

 

 

 

 
    

 Telephone Communications - 0.47%

 

 Motor Vehicles & Passenger Car - 0.41%

 

 

 3,000

American Telephone & Telegraph

42,960

  500

Toyota Motor Corp.

    38,190

    

 

 

 

 

 Transportation Services - 1.08%

 

 National Commercial Banks - 1.44%

  

 4,500

Interactive Corp. *

99,090

        3,000

Citigroup

  132,360

 

 

 

 

    

 Wholesale-Drugs, Proprietaries - 1.19%

 

 Newspapers: Publishing or Publishing & Printing - 0.89%

 

 

 2,500

Cardinal Health, Inc.

       109,425

        2,000

Tribune Co.

    82,300

    

 

 

 

 

 Wholesale-Groceries & Related - 0.33%

 

 Paper Mills - 0.44%

  

 1,000

Sysco Corp.

29,920

        1,000

International Paper

    40,410

 

 

 

 

       

 Perfumes, Cosmetics & Other Toilet Preparations - 2.45%

 

 

 Total for Common Stock -  82.76%

    7,618,680

        5,000

Colgate-Palmolive Co.

  225,900

    

 

 

 

 

 Cash - Equivalents -  17.42%

 

 Petroleum Refining - 0.24%

  

    1,603,725

First American Treasury Obligation FD CL S .93% **

    1,603,725

  500

Shell Transport & Trading Co.

    22,255

 

 

 

 

       

 Pharmaceutical Preparations - 17.61%

 

 

 

Total Investments   100.18%

    9,222,405

        3,000

Bristol Myers Squibb Co.

    71,010

  

 (Cost  $10,130,539)

 

      11,500

Pfizer, Inc.

  351,900

 

 

 

 

        4,000

Schering-Plough Corp.

    76,240

  

Liabilities In Excess of  Other Assets -0.18%

       (16,434)

        6,500

Forest Laboratories, Inc. CL. A *

  292,370

 

 

 

 

        1,500

Lilly, Eli & Co.

    90,075

  

Net Assets   100.00%

    9,205,971

        1,000

Barr Labs *

    41,430

 

 

 

 

        2,000

Merck & Co., Inc.

    66,000

    

        3,500

Glaxosmithkline

  218,650

 

 

 

 

        7,000

Mylan Laboratories, Inc.

  126,000

    

        1,500

Astrazeneca PLC

    41,130

 

 

 

 

        2,000

Watson Pharamaceuticals *

    58,920

    

        5,000

Wyeth

  187,000

 

 

 

 

  

        1,620,725

    

 Photographic Equipment & Supplies - 0.52%

 

 

 

 

 

        1,500

Eastman Kodak Co.

    48,330

    

 

 

 

 

 

 

 

 Plastic Mail, Synth Resin/Rubber, Cellulos (No Glass) - 0.70%

     

        1,500

Dupont E.I. Denemours & Co.

    64,200

 

 

 

 

       

 Plastics Products - 0.54%

 

 

 

 

 

        2,500

Newell Rubbermaid, Inc.

    50,100

    

 

 

 

 

 

 

 

 Poultry Slaughtering and Processing - 0.35%

     

        2,000

Tyson Foods, Inc.

    32,040

 

 

 

 

       

 Printed Circuit Boards - 0.14%

 

 

 

 

 

        1,000

Flextronics *

    13,250

    

 

 

 

 

 

 

 

 Radio & TV Broadcasting & Communications Equipment - 0.95%

     

        4,500

Nokia Corp.

    61,740

 

 

 

 

        1,000

Scientific-Atlanta, Inc.

    25,920

    

 

 

    87,660

 

 

 

 



Jhaveri Value Fund  

 

  

 Statement of Assets and Liabilities

 

    September 30, 2004 (Unaudited)

 
  

Assets:

 

     Investment Securities at Market Value

 $   9,222,405

 ( Cost  $10,130,539)

 

     Cash

1,827

     Receivables:

 

 Dividends and Interest

9,484

 Receivable for securities sold

       74,268

      Total Assets

  9,307,984

Liabilities:

 

     Accrued Management Fees

       18,783

     Payable for securities purchased

       83,230

      Total Liabilities

     102,013

Net Assets

 $        9,205,971

Net Assets Consist of:

 

     Paid-In Capital

12,624,824

     Accumulated Undistributed Net Investment Loss

     (43,295)

     Accumulated Realized Loss on Investments - Net

(2,467,424)

     Unrealized Depreciation in Value

 

 of Investments Based on Identified Cost - Net

   (908,134)

Net Assets, for 1,066,692 Shares Outstanding

 $  9,205,971

Net Asset Value and Redemption Price

 

     Per Share ($9,205,971/1,066,692 shares)

 $        8.63

 

 



Jhaveri Value Fund  

 

  

 Statement of Operations

 

    September 30, 2004 (Unaudited)

 

Investment Income:

 

     Dividends

 $    66,087

     Interest

2,162

 Total Investment Income

       68,249

Expenses

 

     Management Fees (Note 3)

     111,544

 Total Expenses

     111,544

  

Net Investment Loss

     (43,295)

  

Realized and Unrealized Gain (Loss) on Investments:

 

     Realized Gain on Investments

     181,643

     Unrealized Depreciation on Investments

   (187,515)

Net Realized and Unrealized Loss on Investments

       (5,872)

 

 

Net Decrease in Net Assets from Operations

     (49,167)

 

 



Jhaveri Value Fund  

 

 

   

Statements of Changes in Net Assets

(Unaudited)

 
 

4/1/2004

4/1/2003

 

to

to

 

9/30/2004

3/31/2004

From Operations:

 

 

     Net Investment Loss

 $   (43,295)

 $   (84,107)

     Net Realized Gain on Investments

      181,643

      831,485

     Net Realized Gain on Securities Sold Short

       0  

      393,379

     Net Unrealized Appreciation (Depreciation)

    (187,515)

      988,716

     Increase (Decrease) in Net Assets from Operations

      (49,167)

   2,129,473

From Distributions to Shareholders

 

 

     Net Realized Gain from Security Transactions

       0  

       0  

     Net Decrease from Distributions

       0  

       0  

From Capital Share Transactions:

  

     Proceeds From Sale of Shares

      528,672

      903,472

     Shares Issued on Reinvestment of Dividends

       0  

       0  

     Cost of Shares Redeemed

      (82,025)

    (135,565)

Net Increase from Shareholder Activity

      446,647

      767,907

 

 

 

Net Increase in Net Assets

      397,480

   2,897,380

 

 

 

Net Assets at Beginning of Period  

   8,808,491

   5,911,111

 

 

 

Net Assets at End of Period

 $9,205,971

 $8,808,491

 

 

 

Share Transactions:

  

     Issued

        61,362

      109,818

     Reinvested

       0  

       0  

     Redeemed

        (9,463)

      (16,361)

Net increase in shares

        51,900

        93,457

Shares outstanding beginning of period

   1,014,792

      921,335

Shares outstanding end of period

   1,066,692

   1,014,792

 

 

 



Jhaveri Value Fund  

 

 

 

 

 

 

       

Financial Highlights

      

Selected data for a share outstanding throughout the period:

 (Unaudited)

     
 

4/1/2004

4/1/2003

4/1/2002

4/1/2001

4/1/2000

4/1/1999

 

to

to

to

to

to

to

 

9/30/2004

3/31/2004

3/31/2003

3/31/2002

3/31/2001

3/31/2000

Net Asset Value -

 

 

 

 

 

 

     Beginning of Period

 $   8.68

 $   6.42

 $   8.31

 $ 10.02

 $ 12.52

 $ 11.36

Net Investment Loss

(0.04)

(0.09)

(0.07)

(0.14)

(0.07)

(0.13)

Net Gains or Losses on Securities

      

     (realized and unrealized)

(0.01)

2.35

(1.82)

(0.97)

(1.34)

2.25

Total from Investment Operations

(0.05)

2.26

(1.89)

(1.11)

(1.41)

2.12

 

 

 

 

 

 

 

Dividends (from net investment income)

0.00

0.00

0.00

0.00

0.00

0.00

Distributions (from capital gains)

0.00

0.00

0.00

(0.60)

(1.09)

(0.96)

     Total Distributions

0.00

0.00

0.00

(0.60)

(1.09)

(0.96)

Net Asset Value -

 

 

 

 

 

 

     End of Period

 $   8.63

 $   8.68

 $   6.42

 $   8.31

 $ 10.02

 $ 12.52

Total Return

(0.58)%

35.20 %

(22.74)%

(11.43)%

(11.88)%

19.08 %

Ratios/Supplemental Data

      

Net Assets - End of Period (Thousands)

9,206

8,808

5,911

8,330

11,633

13,231

       

Ratio of Expenses to Average Net Assets Before Reimbursement

2.50 %

2.50 %

2.55 %

2.51 %

2.50 %

2.50 %

Ratio of Net Income (Loss) to Average Net Assets Before Reimbursement

(0.97)%

(1.10)%

(1.11)%

(1.52)%

(0.79)%

(1.03)%

Ratio of Expenses to Average Net Assets After Reimbursement

2.50 %

2.50 %

2.50 %

2.50 %

2.50 %

2.50 %

Ratio of Net Income (Loss) to Average Net Assets After Reimbursement

(0.97)%

(1.10)%

(1.06)%

(1.51)%

(0.79)%

(1.03)%

Portfolio Turnover Rate

323.06 %

367.21 %

283.93 %

80.17 %

126.66 %

130.85 %

       

* Annualized

      




JHAVERI VALUE FUND

       

 ADDITIONAL DISCLOSURE

SEPTEMBER 30, 2004 (UNAUDITED)


Proxy Voting

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the twelve month period ended June 30, 2004, are available without charge upon request by (1) by calling the Fund at 1-877-59-FUNDS or visiting our website at  www.mutualss.com and on the SEC’s website at www.sec.gov.



JHAVERI VALUE FUND

       

 

SEPTEMBER 30, 2004 (UNAUDITED)



Expense Example

As a shareholder of the Jhaveri Value Fund, you incur one type of cost: management fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.


The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2004 through September 30, 2004.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in these Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


Jhaveri Value Fund

   
    
 

Beginning Account Value

Ending Account Value

Expenses Paid During the Period*

 

April 1, 2004

September 30, 2004

April 1,2004 to September 30,2004

    

Actual

$1,000.00

$994.24

$12.50

Hypothetical

   

 (5% Annual Return before expenses)

$1,000.00

$1,012.53

$12.61

    
    
    

* Expenses are equal to the Fund's annualized expense ratio of 2.50%, multiplied by the average account value over the period, multiplied by

    183/365 (to reflect the one-half year period).

  



JHAVERI VALUE FUND

       

 NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2004 (UNAUDITED)


Note 1. Organization

The Jhaveri Trust  (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company.  The Trust was established under the laws of Ohio by an Agreement and Declaration of Trust dated January 18, 1995 (the “Trust Agreement”).  The Trust Agreement permits the Board of Trustees to issue an unlimited number of shares of beneficial interest of separate series.  Shares of one series have been authorized, which shares constitute the interests in the Jhaveri Value Fund (the “Fund”). The Fund commenced operations May 1, 1995.  The Fund’s investment objective is to provide long term capital appreciation.  The Fund seeks to achieve its objective by investing primarily in a broad range of common stocks believed by its adviser to have above average prospects for appreciation, based on a proprietary investment model developed by the adviser. The investment adviser to the Fund is Investments Technology, Inc. (The “Adviser”).


Note 2.  Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.


Security Valuation-Securities which 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.


Federal Income Taxes-The Fund intends to qualify each year as a “Regulated Investment Company” under the Internal Revenue Code of 1986, as amended.  By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. Capital loss carryforwards as of March 31, 2004 total $2,570,228 of which $1,103,074 expire in 2010, and $1,467,154 expire in 2011. Capital loss carryforwards are available to offset future capital gains. To the extent that these carry forwards are used to offset future capital gains, it is probable that the amount which is offset will not be distributed to shareholders.


Dividends and Distributions-The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis.  The Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. The amounts of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from those amounts determined under generally accepted accounting principles. To the extent these book/tax differences are permanent, they are charged or credited to paid-in capital in the period that the difference arises.  Distributions to shareholders are recorded on the ex-dividend date.


Estimates-The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported period. Actual results could differ from those estimates.


Short Sales-The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale.  A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale.


Other-The Fund follows industry practice and records security transactions on the trade date.  The specific identification method is used for determining gains or losses for financial statement and income tax purposes.  Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis.  Discounts and premiums on securities purchased are amortized over the life of the respective securities. Generally accepted accounting principles require that permanent financial reporting tax differences relating to shareholder distributions be reclassified to paid in capital.


Note 3. Investment Advisory Agreement

The Trust has an investment advisory agreement with Investments Technology, Inc. Ramesh C. Jhaveri and Saumil R. Jhaveri may be deemed to be controlling persons and affiliates of the Fund due to their ownership of its shares and their positions as officers and directors of both the Fund and Adviser. Because of such affiliation, they may receive benefits from the management fees paid to the Adviser.


Under the terms of the management agreement (the “Agreement”), the Adviser manages the Fund’s investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage fees and commissions, taxes, interest, expenses incurred in connection with the organization and initial registration of its shares and extraordinary expenses.  As compensation for its management services and agreement to pay the Fund’s expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 2.50% of the average daily net assets of the Fund.  In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund’s expenses, except those specified above, are paid by the Adviser.  For the six months ended September 30, 2004, the Adviser earned a fee of $111,544 from the Fund.  


Note 4. Investments

For the six months ended September 30, 2004, purchases and sales of investment securities, other than short-term investments, aggregated $13,036,334 and $13,813,295, respectively.  The gross unrealized appreciation for all securities totaled $79,379 and the gross unrealized depreciation for all securities totaled $987,513, or a net unrealized depreciation for federal income tax purposes of $908,134. The aggregate cost of securities for federal income tax purposes at September 30, 2004 was $10,130,539.


Note 5. Control

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 September 30, 2004, Nalini R. Jhaveri, M.D. and Ramesh C. Jhaveri collectively owned over 47% of the Fund.






Board of Trustees

Ramesh C. Jhaveri

Saumil R. Jhaveri

Mukul M. Mehta

James F. Mueller

David R. Zavagno


Investment Adviser

Investments Technology, Inc.

18820 High Parkway

Cleveland, OH 44116


Dividend Paying Agent,

Shareholders’ Servicing Agent,

Transfer Agent

Mutual Shareholder Services

8869 Brecksville Rd, Ste. C

Brecksville, Ohio 44141


Custodian

U.S. Bank

P.O. Box 640994

Cincinnati, Ohio 45264-0994


Counsel

Thompson Hine LLP

312 Walnut Street

14th Floor

Cincinnati, OH  45202-4089


Independent Auditors

Cohen McCurdy Ltd.

27955 Clemens Rd

Westlake, Ohio 44145



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







Item 2. Code of Ethics.  Not applicable.


Item 3. Audit Committee Financial Expert.  Not applicable.


Item 4. Principal Accountant Fees and Services.  Not applicable.


Item 5. Audit Committee of Listed Companies.  Not applicable.


Item 6.  Schedule of Investments.  Not applicable – schedule filed with Item 1.


Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.  Not applicable.


Item 8.  Purchases of Equity Securities by Closed-End Funds.  Not applicable.


Item 9.  Submission of Matters to a Vote of Security Holders.  


Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.  The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant's board of trustees


Item 10.  Controls and Procedures.  


(a)

Based on an evaluation of the registrant’s disclosure controls and procedures as of May 25, 2004, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSRS is recorded, processed, summarized, and reported on a timely basis.


(b)

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 11.  Exhibits.  


(a)(1)

EX-99.CODE ETH.  Not applicable..


(a)(2)

EX-99.CERT.  Filed herewith.


(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.  Not applicable.


(b)

EX-99.906CERT.  Filed herewith.



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 Jhaveri Trust


By /s/Ramesh C. Jhaveri

*Ramesh C. Jhaveri

 Chief Executive Officer


Date December 10, 2004



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 /s/Ramesh C. Jhaveri

*Ramesh C. Jhaveri

 Chief Executive Officer


Date December 10, 2004


By /s/Saumil R. Jhaveri

*Saumil R. Jhaveri

 Chief Financial Officer


Date December 10, 2004


* Print the name and title of each signing officer under his or her signature.