NOTES TO FINANCIAL STATEMENTS
American Pension Investors Trust (the "Trust") is organized as a Massachu- setts business trust and is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. It is comprised of six separate portfolios. The accom- panying financial
statements include only the Growth Fund (the "Fund").
The Fund's investment objective is growth of capital. The Fund seeks to achieve its objective by investing
primarily in mutual funds ("underlying funds") that invest primarily in common stock or securities convertible into
or exchangeable for common stock (such as convertible preferred stock, convertible debentures or warrants) and
that seek long-term capital growth or appreciation.
2. Significant Accounting Policies:
a. Portfolio Valuation
The investments of the Fund consist primarily of mutual funds that are valued daily at their respective closing net
asset values in accordance with the 1940 Act. Equity securities listed or regularly traded on a se- curities
exchange are valued at the last quoted sales price on the ex- change where they are principally traded.
b. Security Transactions and Investment Income
Security transactions are accounted for on the trade date. Realized gains and losses from security transactions are
reported on an identified-cost basis for both financial statement and federal income tax purposes. Divi- dend
income and distributions to shareholders are recorded on the ex-div- idend date. Interest income and expenses
are recorded on an accrual ba- sis.
c. Federal Income Taxes
The Trust's policy is for the Funds to comply with the requirements of the Internal Revenue Code that are
applicable to regulated investment companies and to distribute substantially all of its investment company taxable
income to its shareholders. Therefore, no federal income tax pro- vision is required.
As of May 31, 2000, the aggregate cost of investments for federal income