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APRIL 30, 1996
SEMI-ANNUAL
REPORT
(UNAUDITED)
THE CRABBE HUSON
SPECIAL FUND, INC.
CRABBE HUSON
SMALL CAP FUND
THE CRABBE HUSON
EQUITY FUND, INC.
THE CRABBE HUSON
REAL ESTATE FUND, INC.
THE CRABBE HUSON
ASSET ALLOCATION FUND, INC.
THE CRABBE HUSON
INCOME FUND, INC.
THE CRABBE HUSON
U.S. GOVERNMENT
INCOME FUND, INC.
THE CRABBE HUSON
U.S. GOVERNMENT
MONEY MARKET FUND, INC.
THE OREGON MUNICIPAL
BOND FUND, INC.
CRABBE HUSON FUNDS
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APRIL 30, 1996
SEMI-ANNUAL
REPORT
(UNAUDITED)
TABLE OF CONTENTS
PAGE 1 To our Shareholders
SCHEDULE OF INVESTMENTS
PAGE 20 The Crabbe Huson Special Fund, Inc.
PAGE 23 Crabbe Huson Small Cap Fund
PAGE 25 The Crabbe Huson Asset Allocation Fund, Inc.
PAGE 29 The Crabbe Huson Equity Fund, Inc.
PAGE 32 The Crabbe Huson Real Estate
Investment Fund, Inc.
PAGE 34 The Oregon Municipal Bond Fund, Inc.
PAGE 38 The Crabbe Huson Income Fund, Inc.
PAGE 40 The Crabbe Huson U.S. Government
Income Fund, Inc.
PAGE 41 The Crabbe Huson U.S. Government
Money Market Fund, Inc.
PAGE 44 Statements of Assets & Liabilities
PAGE 48 Statements of Operations
PAGE 52 Statements of Changes in Net Assets
PAGE 57 Notes to Financial Statements
PAGE 72 Financial Highlights
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June 1, 1996
To Our Shareholders:
The table of Investment Results on the following page shows both Fund and Index
returns for the first six months of the Funds' fiscal year ended April 30, 1996.
The Funds' returns were influenced by their investment objectives and the nature
of the securities in which they were invested. Please note the Funds' returns
assume all dividends and capital gains (if any) were reinvested. For more
detailed information on each Fund and its performance and share prices, please
refer to the appropriate section of this annual report.
The various market indices listed in the table are to give you some feel for
comparative returns. There are some substantial differences that should be
mentioned however. Indices are un-managed "baskets" of securities that do not
reflect fees or other expenses, while Fund performance is stated after the
expenses outlined in this report. Additionally, one cannot invest "directly" in
an index, although it may be possible to emulate one by investing in an index
fund. The Crabbe Huson Funds do not attempt to emulate an index in any respect.
This may result in substantial differences in Fund performance versus the
indices from time to time.
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INVESTMENT RESULTS
-----------------------------
FISCAL YEAR-TO-DATE: 11/01/95 TO 04/30/96
FUND'S TOTAL RETURN(1)
The Crabbe Huson U.S. Government Money Market Fund, Inc.(2) 2.41%
The Crabbe Huson U.S. Government Income Fund, Inc.(3) 1.14%
The Oregon Municipal Bond Fund, Inc. 0.29%
The Crabbe Huson Income Fund, Inc. -0.10%
The Crabbe Huson Asset Allocation Fund, Inc. 6.85%
The Crabbe Huson Real Estate Investment Fund, Inc. 10.93%
The Crabbe Huson Equity Fund, Inc. 13.96%
Crabbe Huson Small Cap Fund 10.70%(4)
The Crabbe Huson Special Fund, Inc. 10.93%
STOCK MARKET INDICES
Standard & Poor's 500 Index(5) 13.73%
Dow Jones Industrials(5) 18.48%
Russell 2000 Index(5) 17.56%
Standard & Poor's 400 Mid-cap Index(5) 12.94%
NASDAQ/OTC Composite(5) 14.91%
Morgan Stanley REIT Index(6) 9.90%
BOND AND MONEY MARKET INDICES
IBC/Donoghue's MONEY FUND REPORT AVERAGES(Trademark)- All Taxable(7) 2.49%
Ryan Lab's Three Year Treasury Index(6) 1.50%
Lehman Brothers' Government/Corporate Bond Index(5) 0.04%
Lehman Brothers' Municipal Bond Index(6) 1.11%
CONSUMER PRICE INDEX 1.50%
(1) DATA QUOTED REPRESENTS PAST PERFORMANCE. FUTURE RETURNS AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THE ORIGINAL COST.
(2) ALTHOUGH THE FUND INTENDS TO MAINTAIN A CONSTANT ONE DOLLAR PER SHARE NET
ASSET VALUE, THERE IS NO ASSURANCE THE FUND WILL BE ABLE TO DO SO. AN INVESTMENT
IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT.
(3)AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
(4) INCEPTION DATE: 2/16/96.
(5) SOURCE: SEI FUNDS EVALUATION SERVICE
(6) SOURCE: BLOOMBERG LTD.
(7) SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT (Registered trademark), A SERVICE
OF IBC/DONOGHUE, INC. HOLLISTON, MA 01746
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INVESTMENT OUTLOOK
------------------
As indicated in the table of Investment Results, the first six months of the
fiscal year were kind to the stock market but less so to the bond market. Bonds
came under pressure beginning in January with interest rates on 30-year U. S.
Treasury bonds rising from about 6.0% to nearly 6.9% at the end of April. In
the world of bonds and interest rates, this was quite a dramatic increase--in
fact, one of the sharpest on record.
Since several of our Funds invest in bonds of varying maturities on a regular
basis, we, along with other investors, are trying to figure out whether this was
just a temporary setback or one with more staying power. Predicting interest
rate trends is well nigh impossible in most environments--this being no
exception. But, we can draw some general conclusions from past occurrences and
current data. Our analysis leads us to believe that the major portion of the
rate increase has, most likely, already occurred. The next several months will,
however, be quite uncertain with the possibility of further, moderate weakness
in bond prices. But, as long as inflation stays subdued, this current period of
higher rates will likely set up the conditions for a slower economy as we move
into 1997. This in turn, would allow interest rates to decline.
We were surprised by the severity of the rise in yields over the last three
months. As nearly as can be determined, we believe the fixed income markets
were primarily reacting to a number of factors: (1) stronger than expected
economic growth; (2) apprehension of inflation; and (3) politics. Let's see
where we are now on each of these factors.
1. Stronger than expected economic growth. The economy has been more resilient
than most observers expected at the turn of the year. Many thought economic
conditions were slow enough at that time to warrant another cut in
short-term rates by the Federal Reserve (Fed). And, while the Fed did
reduce rates at the end of January, subsequent strength in business
activity has many economists expecting a nudge higher by the Fed in July or
August. The numbers do look strong. The first quarter increase in real
Gross Domestic Product (GDP) is now estimated at 2.3%, not inordinately
high in our opinion; however, the early line for the second quarter is
being set somewhat north of 4.0% by most forecasters. This is a hot pace
according to most economists' views.
We think it is premature to expect the Fed to raise rates in July or
August. One of the things this economy is capable of is fooling "most of
the people most of the time". Today's "growth scare" can quickly shift to a
"slowdown scare" with the release of a few economic statistics. While the
Fed may
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justify a rate increase based on today's numbers, July is a month away;
and, in an election year, the evidence probably needs to be a bit more
persuasive than normal.
Taken by itself, a strong economy does not have to result in higher
interest rates and lower bond prices, at least in its early phases. The
fear and trembling bond investors have shown in this latest "growth scare,"
however, has us searching for the real spook. That thing that goes bump in
the night may be inflation.
2. Apprehension of inflation. The signs are still tentative, but there does
seem to be some inflationary pressures building. The Commodity Research
Bureau (CRB) Index, which tracks an array of commodity prices including
agricultural products and energy prices, has been rising strongly since the
third quarter of 1995 (Chart 1). This increase was dismissed in its early
phases as a function of poor-crop results and rising energy prices brought
on by a colder than normal winter. Based on the analysis of "core"
inflation (inflation less the impact of food and energy), the conclusion by
some observers of inflation trends is not to worry.
CHART 1
We have always wondered how the average person lives "less food and
energy". In any event, we believe bond investors are justified in their
concern over price trends. If prices were to continue higher in food and
energy, then workers would likely need to seek higher wage increases to
offset their impact. While prices seem to be stabilizing, the uncertainty
here is one of the reasons we are mildly cautious over the near-term.
Longer term, inflation trends can be materially influenced by government
policies-- which leads us to the next investor concern.
3. Politics. We suspect there are as many Democratic bond buyers as
Republicans. Nevertheless, since winter, the disarray of the Republican
Party has bond investors concerned that the goals of a balanced budget,
medicare/medicaid adjustments, and welfare reform will be jettisoned as
both parties--neither one controlling Congress and the White House--get
bogged down in political bickering. Will the resolve to control inflation
be as strong
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going forward as it has in the past? These are legitimate concerns for
which there is no clear answer at the present time.
Our observation is that both parties recognize the need to carry forward,
on some basis, the economic reforms already set in motion. It may not be
too bad that one party cannot call all of the shots. Compromise on many of
these issues may provide the most practicable solution. And, insofar as
resolve on long-term inflation is concerned, we do not need polls to show
us the way: the markets will pass judgment. If policies do not measure up,
the markets will decline in price--especially the bond markets which will
result in higher interest rates(1). Politicians running for re-election
cannot ignore the markets and expect to continue in office, especially as
stock and bond ownership broadens in the populace through 401-k plans and
increased direct holdings of mutual funds by individuals.
It is likely, with some lag, that the rise in rates that has already
occurred will bite into economic growth, but this may not take place for
several months. When it does, bond prices will likely rally, driving rates
lower. Inflation trends should be watched closely; but we are hopeful that
the current pressures will subside as we move through the year, especially
if the economy slows later. It is "politics as usual"; and, in an election
year there is no getting away from it. But, the markets will provide their
own governor. Most candidates are aware of this and want the markets to be
healthy as we move through the year.
We have spent a lot of time on bonds and interest rates so far in this report,
mainly because this will likely be the key to future behavior of the stock
market. Stock market investors have been having a good time of it, but we
should not ignore the recent woes of our bond brethren. We have learned in the
past that rising interest rates eventually will lower stock prices. This
happens for two reasons. First, higher interest rates can lead to a recession.
Stock investors hate recessions. Now, it's difficult to think in terms of
people actually selling stocks. After all, it has been so wonderful. Stocks
never go down do they? And, if they do go down, they always come right back,
don't they? Why, just last month the market declined for two, maybe three,
days; and it did, indeed, gain back its losses--again. Why would anyone ever
sell stocks? Well, recession is one
- ---------------
(1) Although many of our clients are well aware of the principles of bond
investing, we are asked frequently why this price/interest rate relationship
exists. Our reply can be steeped in higher mathematics, or it can be logical
and intuitive. For example, if you own a bond that pays 8% and the current rate
for new bonds is 6%, then you will likely want a premium price if someone comes
to buy your bond. Moreover, the longer your bond pays 8%, the more money you
will want for giving up this high rate of interest. Conversely, if you own a
bond that pays 6% and the current interest rate on new bonds is 8%, you will get
a lower price for your 6% bond should you decide to sell it. Additionally, if
under the terms of the bond you are stuck with a 6% return for 20 years, you
will get a lower price than if this below-market-rate (6%) were going to persist
for only 1 or 2 years.
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reason. In such an environment corporate profits fall, dividends are more
frequently cut, and business cash flow dissipates. It has been so long ago
(1990), we have almost forgotten; but all of these factors, plus fear in
general, led to stock price declines. Maybe it was just a bad memory. And maybe
history will not repeat itself. And maybe elephants can fly. Well, in our
opinion, Dumbo may be able fly, but he certainly will not do well in stocks if
he ignores interest rate trends.
Another reason the bond market and interest rates should be of concern to stock
investors is that bonds will provide more competition for the investment dollar
if bond rates are high enough. For example, if you could get a 10-year, zero-
coupon Treasury at a 10% yield, would you not divert some dollars to such an
investment? Sure, we know, stocks always return 15%, 20%, maybe even 30%; but,
come on now, 10% is not so bad, is it? Seriously though, we are not there yet,
and we hope we do not get to interest rate levels that would provide such
competition. But, as rates rise, gradually, at the margin, some investors will
opt for bonds rather than stocks.
Temporarily this relationship does not seem to exist. Bond prices have been
falling since the first of the year and stock prices have been rising. We
believe further deterioration in bond prices may lead to stock-price weakness.
This is one reason we will be watching bond price trends closely in the coming
months.
The stock market continues to be driven by mutual fund cash flows. Offsetting
this to some extent is the issuance of new stock by corporations; but as Chart 2
indicates, the pace of net new inflows into equity funds is breathtaking. And,
not only are equity fund assets growing, but so are money market fund assets and
aggressive growth mutual funds (Charts 3 and 4). The aggressive funds hit an
all time high in April with inflows of $7.6 billion. This suggests that
investors have ample liquidity; and, the money has to be invested somewhere
because we all know that "cash is trash." There is, indeed, a boom in the world
of stocks.
As this mania proceeds, risks increase; but investors' decisions are made with
less recognition to the risk side. Only reward seems to be important. The
signs of this happening are all around us. Hot new issues come to the market
daily, and they double in price before trading really gets started. Top
performing mutual fund managers are treated like rock stars. CNBC, Bloomberg
News, and other business news programs are increasing their number of viewers as
the "talking heads" drone on and on about this bit of corporate news or that
economic statistic.
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Our view is that the signs are unmistakable; but the driving force, the need to
save for retirement, is real. It may take years for this movement into stocks
to ultimately run its course. But, we don't believe the recent speculative
surge is healthy, and we think it could lead to severe price setbacks. We would
caution our shareholders not to increase risk at this time; but, with
consideration to their temperament and risk tolerance, maintain a conservative
program designed to, hopefully, achieve their economic goals.
Chart 2
Chart 3
Chart 4
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INVESTMENT PHILOSOPHY
---------------------
Since many reading this report are new investors in Crabbe Huson Funds, we would
like to review our investment philosophy. This philosophy influences nearly all
investment decisions made in the Funds.
We are contrarian investors. Our observation is that most investors consider an
asset rising in price as becoming more attractive, while an asset declining in
price is viewed as becoming less attractive. In the perverse world of
contrarian investing, we must take the opposite mind-set: that is, we must view
an asset rising in price as one which will eventually become over-valued and be
sold, while one declining in price, at some point will become under-valued and
therefore, an attractive purchase. The key in this process is to remember the
majority of investors are correct much of the time, market up-trends and down-
trends could not otherwise be established; however, at turning points, the
majority is incorrect.
We implement this philosophy with all the care and skill we can bring to bear.
Since the nature of this approach at times inclines us to go against the crowd,
you may see holdings and/or strategies in the portfolios that seemingly do not
match generally accepted investment trends. Nevertheless, this approach has
worked well for our clients over the years as can many philosophies when applied
with skill, diligence, and perseverance.
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-----------------------
FUND REVIEW AND OUTLOOK
-----------------------
As expected, the Funds' results were influenced by their investment objectives.
With this in mind, we use the following chart to help you position your
investment along a risk reward scale.
As indicated by the "risk/return" chart, income oriented Funds at the left side
generally have a greater degree of safety, but also, perhaps, lower reward
expectations. This, of course, is a premise for all investing: lower potential
risk suggests lower potential reward, and higher potential risk suggests higher
potential reward. As far as we are aware, no one has been able to consistently
surmount this basic maxim over the long pull. Therefore, as your Fund managers
we need to do two things: improve the equation as much as possible by applying
investment skills and maintaining the integrity of each Fund by managing them
according to their objectives.
As investors, your responsibility is to be aware of your objectives, invest in
the appropriate vehicle, and take a long enough view to allow your selected
investment vehicles to meet your objectives. With this as a backdrop, let us
discuss the progress of the individual Funds for the past year, as well as their
current portfolio position.
/ LOWER POTENTIAL----------VOLATILITY (PRICE FLUCTUATION)-----HIGHER POTENTIAL \
\ LONG-TERM RETURN LONG-TERM RETURN /
SHORT-TERM RISK SHORT-TERM RISK
- --------------------------------------------------------------------------------
| | | | | | |
U.S. GOV'T. U.S. GOV'T INCOME ASSET EQUITY SMALL CAP SPECIAL
MONEY INCOME FUND ALLOCATION FUND FUND FUND
MARKET FUND FUND
FUND
OREGON REAL
MUNICIPAL ESTATE
BOND INVESTMENT
FUND FUND
- --------------------------------------------------------------------------------
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[Box] Garth R. Nisbet, CFA
Funds Managed:
The Crabbe Huson U.S. Government Money Market Fund, Inc.
The Crabbe Huson U.S. Government Income Fund, Inc.
The Crabbe Huson Income Fund, Inc.
The Oregon Municipal Bond Fund, Inc.
THE CRABBE HUSON U.S. GOVERNMENT MONEY MARKET FUND, INC.
This Fund consists of U.S. Treasury securities and obligations issued by
agencies of the U.S. Government. Some of these "agency" agreements are not, in
all cases, obligations of the U.S. Government but are generally regarded as
among the highest grade securities available. This Fund is the most
conservative in our family of Funds. All securities within the Fund must have a
maturity of less than one year from the date of purchase, and the average
maturity of the portfolio shall not exceed 90 days. Currently, the Fund has a
relatively long (for a money market fund) average maturity of 82 days. For the
six months ended April 30, 1996, this Fund earned 2.41%.
This Fund is most appropriate for investors who cannot tolerate principal risk,
want immediate access to their funds, and are willing to accept lower returns
than potentially achievable in our other Funds. The fact that the Fund is
substantially exempt from state income tax enhances its attractiveness to
investors subject to state income tax.
Short term rates were mixed during the period as three-month Treasury bill
yields fell to 5.0% from 5.5% while two-year U.S. Treasuries rose from 5.5% to
6.0%. Most interest rates rose as investors became more cautious and signs of
economic activity increased in 1996. The Federal Reserve reduced short-term
lending rates twice during the most recent six month period (December 19, 1995
and January 31, 1996). However, the economic strength witnessed in the first
quarter of 1996 may persuade the Federal Reserve to increase short term rates as
early as the next Federal Open Market Committee (FOMC) meeting on July 2, 1996;
but, as we stated previously, because this is an election year, the Fed's
evidence will likely have to be persuasive.
THE CRABBE HUSON U.S. GOVERNMENT INCOME FUND, INC.
The U.S. Government Income Fund invests only in bonds of the U.S. Government,
its agencies, and its instrumentalities. Under terms of the
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prospectus, 75% of the holdings of this Fund must have maturities of five years
or less. On April 30, 1996, the average maturity of the Fund was 2.5 years. The
limited maturity flexibility of this Fund should result in lower potential price
volatility and lower potential returns over time. Therefore, we position it
towards the lower end of our risk spectrum.
The Fund returned 1.14% for the six months ended April 30, 1996, compared with
the Ryan Labs Three-Year Treasury Index which returned 1.50%. These returns
reflect the increase in intermediate-term interest rates. For example, rates on
three-year Treasuries increased from 5.7% at the end of fiscal 1995 to 6.2% on
April 30, 1996. The Fund during this time had a slightly longer average
maturity.
The Fund's results in 1996 will again reflect market changes in the short-term
interest rates. This Fund continues to be appropriate for investors who seek
the possibility of a somewhat higher return than money market funds with a
limited degree of price volatility.
THE CRABBE HUSON INCOME FUND, INC.
This Fund can invest in a broad cross-section of investments including, but not
limited to: bonds of the U.S. Government, its agencies and instrumentalities;
corporate bonds; mortgage-backed bonds; convertible bonds; convertible preferred
stock; and foreign bonds. Unlike the U.S. Government Income Fund, the Income
Fund can also own bonds that are rated less than AAA and even less than BBB in
limited amounts. Furthermore, there are no maturity restrictions in this Fund.
As a result of the greater investment latitude allowed, this Fund may be
appropriate for those investors seeking to invest in a more aggressive portfolio
of fixed income securities.
So far, 1996 has been a difficult year for bonds, as interest rates have
increased from 6.0% at the end of 1995 to about 6.9% at the end of April.
Remember that because bond coupons are fixed, prices of outstanding bonds will
fall if the level of current interest rates increase.
The primary reason for the increase in rates this year is that bond investors
have shifted their economic expectations from anticipating a recession to
anticipating strength. Bonds react negatively to strength as inflation often
accompanies an economic rebound.
Recent negative signs for bonds include the strong first quarter GDP and an
improvement in housing starts and factory orders. Employment growth during 1996
has surprised economists and has averaged over 160,000 new jobs per
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month during the first four months of 1996. Additionally, unemployment has
remained relatively low and stable and is currently 5.4%.
Going forward, the market will likely focus on changes in wage inflation,
employment growth, and consumer spending. We are somewhat cautious currently as
commodity prices and money supply have accelerated.
For the six months ended April 30, 1996, the Fund returned -0.10%, approximating
the return of 0.04% for the Lehman Brothers Government/Corporate Bond Index. In
this difficult bond environment, both returns are close to zero as income
returns were essentially offset by the decline in bond prices.
THE OREGON MUNICIPAL BOND FUND, INC.
This Fund is a diversified portfolio of municipal bonds which are exempt from
federal and, in most cases, state income tax. The Fund generally invests only
in bonds issued by the state of Oregon and political subdivisions within the
state. Occasionally the Fund will also invest in municipal bonds issued outside
of the state that are also exempt from federal and state income tax. Typically,
the only taxable income the Fund earns is overnight interest on temporary cash.
The Fund can invest in bonds of any maturity and, therefore, can show greater
potential price fluctuations and should show higher potential returns over time
than our Money Market Fund and Government Income Fund. This potential longer
maturity and the narrower investment focus (single state municipal bonds) lead
us to classify this Fund in the same position along our risk spectrum as our
Income Fund.
The Fund's average maturity has remained stable at approximately nine years.
Because of this intermediate maturity bias, the Fund should outperform in a
difficult environment of rising interest rates but lag during any significant
drop in rates.
The quality of the Fund continues to remain high with 60% of the bonds we own
being either AAA rated or pre-refunded in U.S. Treasury obligations. These
characteristics make the Fund appropriate for taxable investors seeking a high
quality, tax-exempt Oregon Bond Fund which currently has an intermediate-term
maturity.
For the six months ended April 30, 1996, the Fund returned 0.29%, which includes
both income (federal and state tax-free) and the change in the values of the
shares. This compares to the Lehman Brothers Municipal Bond Index return of
1.11%.
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RICHARD S. HUSON, CFA ROBERT E. ANTON
Funds Managed: Funds Managed:
The Crabbe Huson Asset The Crabbe Huson Asset
Allocation Fund, Inc. Allocation Fund, Inc.
The Crabbe Huson Equity Fund, Inc. The Crabbe Huson Equity Fund, Inc.
MARIAN L. KESSLER JOHN E. MAACK, JR., CFA
Funds Managed: Funds Managed:
The Crabbe Huson Asset The Crabbe Huson Asset
Allocation Fund, Inc. Allocation Fund, Inc.
The Crabbe Huson Equity Fund, Inc. The Crabbe Huson Equity Fund, Inc.
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
This Fund is a medium risk investment option, containing a combination of
stocks, bonds, and short-term reserves. The stocks in the Asset Allocation Fund
are the same as those described in our Equity Fund below, while the bond
portion of the portfolio is modeled after our Income Fund. The mix of assets
between these different securities is altered by the portfolio managers of the
Fund depending on our view of changing market and economic risk. The Fund can
hold a maximum of 75% of assets in stocks with a minimum position of 20%. Bonds
would typically make up the balance of the holdings of the Fund.
During the six months ended April 30, 1996, the Fund generated a return of
6.85%, compared with a 0.04% gain for the Lehman Brothers' Government Corporate
Index and a return of 13.73% for the Standard & Poor's 500. The
<PAGE>
return in an absolute sense was not bad. One can't help but notice a little bit
the equity investors whooping it up about stock returns, however. At times like
these it might pay to remember that asset allocation funds were designed to
provide greater stability of returns with increased preservation of capital. For
those that need some current income, but still desire potential growth in
principal, an asset allocation fund can be an excellent investment vehicle.
The Fund's asset mix was 55% stocks, 39% bonds, and 6% short-term reserves. The
bond weighting was down slightly from the prior period, while the level of
stocks was increased and the cash position reduced. Increasing the stock
allocation was positive for the portfolio given a very strong stock market
during this period. Subsequent to the end of the fiscal year 1995, we have
continued to reduce our exposure to bonds and cash, putting the money to work in
stocks as we have found suitable ideas. This has been beneficial as bonds have
continued to fall in price since that time. We also shortened our bond
maturities over the last few months. This makes our bond portfolio potentially
less volatile, and it may provide some protection to your investment should
prices of bonds continue to decline. Although we are growing somewhat more
cautious about both stocks and bonds, we will continue to closely watch economic
developments to determine the best asset mix for the Fund in 1996.
THE CRABBE HUSON EQUITY FUND, INC.
This Fund may have up to 100% of its assets invested in stocks. We seek to
provide shareholders with potential long-term capital appreciation by investing
in a diversified portfolio of medium to large companies. While our bias in this
Fund is towards a significant position in stocks, we may from time-to-time
invest up to 35% of the assets in reserves.
This Fund, which employs our usual contrarian stock-picking style, is run by a
team of four seasoned portfolio managers, with a mandate to find good companies
with stocks that have fallen out-of-favor yet offer the opportunity over an 18
to 24 month time horizon to improve their fortunes. By focusing on stocks that
have experienced problems and have already suffered a price decline, we hope to
put together a portfolio with good capital preservation characteristics and, at
the same time by identifying catalysts for positive change at these companies,
try to capture potential for long-term capital appreciation. We tend to view
our cash reserves opportunistically, either as a source of funds to buy new
ideas as they present themselves or as a cushion against the adverse effects of
occasional market declines.
The Equity Fund enjoyed a successful start to the first six months of the
fiscal-year ended April 30, 1996, gaining 13.96% versus a gain in the Standard
& Poor's 500 of 13.73%. The Fund portfolio was comprised of 91% stocks and
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9% cash reserves. Although most market indices climbed to new highs during this
period, equity markets were also characterized by a high degree of volatility
and rotation among stocks. During this period, as various companies have come
in- and out-of-favor, we have been presented with opportunities to employ our
stock-picking approach, which has allowed us to keep the portfolio relatively
fully invested. We believe it is in this kind of market environment that our
contrarian style works best.
The portfolio has a significant weighting in energy stocks and cyclical issues.
This is currently where we see the best opportunities in terms of valuations and
profit growth. A slowly growing economy with moderate but rising inflation
should favor these issues. We are underweighted in the areas of health care and
consumer non-durables (food and beverage) stocks. These were strong sectors of
the market in the past year, but we now believe they offer too high a level of
risk. These companies are experiencing more and more problems with pricing
power at a time when costs are beginning to rise faster and the value of the
U.S. Dollar is also rising, all of which should begin to squeeze profit margins
in 1996.
The past 18 months has been a period of outstanding returns for the equity
markets; and, in general, the past 14 to 15 years have seen extraordinary gains
for investors relative to the historical norm. There may be a sea change
occurring in the economy with increasing inflationary pressures and greater
political cross currents. If this is true, investors could see a bumpier ride
along the road to prosperity. This is at a time when most investors have
learned that cash is the last asset you want in a portfolio. As contrarians we
can't help but wonder if, perhaps, this isn't just the point in time to revisit
the value of a cash cushion in the portfolio from time to time. While we remain
constructive on equity investing for the long-term, we will continue to watch
short-term developments to see if occasional defensive action is warranted.
<PAGE>
JAMES E. CRABBE JOHN W. JOHNSON
Fund Managed: Fund Managed:
The Crabbe Huson Special Fund, Inc. The Crabbe Huson Special Fund, Inc.
Small Cap Fund Small Cap Fund
THE CRABBE HUSON SPECIAL FUND, INC.
This Fund invests, for the most part, in stocks of small- to medium-size
companies. Stocks of these companies are generally more volatile, but we
believe provide attractive potential long-term returns. This Fund may invest up
to 100% of its assets in stocks. Additionally, this Fund has the capability to
sell stocks short(2)--up to 25% of the portfolio, which it may from time to
time.
The Fund returned 10.93% for the six months ended April 31, 1996. This compares
to 12.94% for the S&P 400 Mid-Cap Index. Had it not been for the short-
position, the performance would have out-performed both indices. The Fund's
long-positions gained approximately 17.50% during this time frame. Some of our
earlier short positions have been covered with gains and other have stubbornly
remained overvalued. Overall, we have reduced the size of the short-position in
the first six months of the fiscal year.
Investor interest in small-to mid-capitalization companies has improved since
the Fund's fiscal year-end in October 1995--particularly in March and April of
1996. This is a marked improvement over calendar-year 1995 when the performance
of the market was dominated by the large-capitalization growth stocks with
current earnings momentum.
- ---------------
(2) SELLING SHORT IS AN INVESTMENT TECHNIQUE WHEREBY STOCKS ARE BORROWED AND
THEN SOLD AT CURRENT MARKET VALUE TO BE SUBSEQUENTLY PURCHASED AT A LOWER PRICE.
THIS WOULD BE DONE IF IT IS BELIEVED THAT PRICES ON THE SECURITIES ARE GOING TO
DECLINE. IF THEY DO DECLINE, THE SECURITIES WOULD BE PURCHASED AT THAT LOWER
PRICE RESULTING IN A GAIN. IF PRICES WERE TO SUBSEQUENTLY RISE, THE SECURITY
WOULD HAVE TO BE PURCHASED AT THE HIGHER PRICE RESULTING IN A LOSS
<PAGE>
Unless we experience further interest in interest rates or deterioration in the
economy, we expect the continuation of the trend of retirement savings being
directed towards equity mutual funds. In turn, these cash inflows should
provide an underpinning of buying interest for the market in general.
In an environment where undervalued small- to mid-capitalization stocks are
getting increasing attraction, the Special Fund should do well. Particularly,
the area of the portfolio in industrial equities which remains unrecognized.
CRABBE HUSON SMALL CAP FUND
This Fund was introduced in February 1996 to provide investors a pure small-cap
investment option. Accordingly, when compared with the Special Fund this Fund
has stricter investment guidelines intending to focus it on investments in
equity securities with market capitalizations of less than $1 billion. In
addition, the Fund's guidelines also prohibit the practice of short-selling
securities. This Fund is designed to be primarily fully-invested in equity
securities.
The Fund has had a strong start, returning 10.70% since its inception compared
to the S&P 400 Midcap's return of 4.22% for the same time period.
Although the Fund's inception coincided with the broadening of interest in
small- to mid-capitalization companies, the positive spread of performance over
the S&P 400 Midcap reflected investors' renewed interest in retail and energy
stocks in which the Fund was invested. We continue to gradually increase our
level of commitment to common stocks as additional investments are qualified.
We appreciate your early sponsorship of this Fund and hope to reward your
confidence with above average results through the ownership of smaller
capitalization companies.
<PAGE>
JAY L. WILLOUGHBY, CFA
Fund Managed:
The Crabbe Huson Real Estate Investment Fund, Inc.
THE CRABBE HUSON REAL ESTATE INVESTMENT FUND, INC.
This Fund is a diversified Fund that invests primarily in equity securities of
real estate investment trusts (REITs) and other real estate industry companies.
Under normal circumstances at least 75% of the Fund will be invested in such
shares. The goal of the Fund is to provide current income and potential capital
appreciation to its shareholders. The Fund provides investors the ability to
invest in real estate companies and to diversify their bond and stock positions
by adding this real estate option to their holdings.
Real estate investment trusts have begun to perform somewhat better. Fiscal
year-to-date this Fund was up 10.93% versus the Morgan Stanley REIT Index gain
of 9.90%. This stronger relative performance has been fueled by several things.
Those REITs with the greatest economic sensitivity (such as hotel, office, and
industrial companies) have performed much better. Retail REITs have begun to
rebound along with trends in retail sales and the hoped for end-of-retailer
bankruptcies. Finally, apartment and most other REITs have improved as
investors are increasingly comfortable that over building is generally not a
problem. In our view, fundamental supply and demand factors continue to look
favorable.
Within the stock market several additional trends are notable. Thus far in
fiscal year 1996, there have been no new equity REIT initial public offerings
(IPO's), and only twelve secondary offerings raising about $1.24 billion. We
think this is important for two reasons. First, the market seems much more
discriminating than it was in years past, and will only allow very high quality
new IPO's. We expect to see five to ten IPO's in the second half of this year,
mostly in the hotel and office sectors where additional investment options will
be welcome. Second, as quality companies continue to access the stock market
through secondary issues, we will see an increase in the liquidity and trading
volume of existing REITs. The ongoing consolidation within the REIT market (two
mergers closed and a third was announced) will also help to increase trading and
liquidity. Additionally, there have been increased inflows into the REIT
market. Several of America's largest pension plans have decided to begin
investing in real estate
<PAGE>
through REITs. We expect this trend will continue and that REIT share prices
should benefit as today's inflows into REIT's continue.
We appreciate the opportunity to continue to participate in your effort to
achieve your financial goals.
Sincerely,
Richard S. Huson
President
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ----------- ---------------------- ------------
COMMON STOCK - 67.4%
COMMON STOCK - 87.7%
BASIC MATERIALS - 6.8%
791,600 Battle Mountain Gold .............................. $ 7,025,450
182,200* Pegasus Gold, Inc ................................. 2,596,350
5,133,800* Rollins Environmental Services .................... 13,476,225
2,021,000* Sante Fe Pacific Gold Co .......................... 30,062,375
------------
53,160,400
------------
CONSUMER CYCLICALS - 14.4%
1,462,000* Ann Taylor ......................................... 25,036,750
2,307,800* Bombay Co, Inc .................................... 26,828,176
1,272,900* Burlington Coat Factory ........................... 13,842,788
1,407,600 Cato Corp - Class A ............................... 13,372,200
24,000* Dress Barn, Inc .................................... 261,000
2,379,700* Payless Cashways, Inc ............................. 9,816,264
1,692,600 Phillips-Van Heusen ............................... 22,426,950
------------
111,584,128
------------
CONSUMER STAPLES - 5.9%
963,200 Fleming Companies .................................. 13,244,000
352,400* Fred Meyer, Inc ................................... 10,131,500
679,200 Hudson Foods Inc - Class A ........................ 8,999,400
592,400* Paragon Trade Brands, Inc ......................... 13,847,350
------------
46,222,250
------------
ENERGY - 11.1%
243,500* Falcon Drilling Company, Inc ....................... 6,544,062
916,900* Forcenergy Gas Exploration ........................ 12,836,600
931,800* Forest Oil Corp .................................... 11,239,838
588,700 Holly Corp ........................................ 15,894,900
1,372,200* Oryx Energy Co .................................... 21,955,200
1,979,800 Snyder Oil Corp ................................... 17,818,200
------------
86,288,800
------------
FINANCIAL - 4.0%
397,100* Citation Insurance Group .......................... 1,638,037
620,700* Risk Capital Holdings, Inc ........................ 12,336,412
581,900* Zurich Reinsurance Centre ......................... 17,529,738
------------
31,504,187
------------
HEALTHCARE - 12.0%
1,452,800* Coventry Corp ..................................... 28,148,000
347,600* Grancare, Inc ..................................... 6,256,800
373,100* Horizon/CMS Healthcare Corp ........................ 4,943,575
1,145,500 Integrated Health Services ........................ 31,501,250
1,473,800* Sun Healthcare Group, Inc ........................ 22,291,225
------------
93,140,850
------------
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ----------- ---------------------- ------------
COMMON STOCK - (continued)
INDUSTRIALS - 19.2%
851,800* Century Aluminum Co ............................... $ 12,564,050
1,032,500 Crompton & Knowles Corp ........................... 15,874,688
810,800 Giddings & Lewis, Inc ............................. 15,050,475
509,600 Huntco, Inc ....................................... 8,981,700
749,300 Longview Fibre Co ................................. 13,206,412
2,331,800* Lytton Minerals, Ltd ............................... 6,795,057
1,557,000* MK Rail Corp ...................................... 7,785,000
1,465,100* Morrison Knudsen Corp ............................. 2,014,513
1,103,100 Oregon Steel Mills, Inc ........................... 17,511,713
635,500 Stewart & Stevenson Services ....................... 18,667,812
332,800 TJ International, Inc ............................. 5,740,800
1,246,300 Wabash National Corp .............................. 24,614,424
------------
148,806,644
------------
REAL ESTATE INVESTMENT TRUST - 2.4%
1,626,600* Catellus Development Corp ......................... 14,842,725
321,200 Crown American Realty ............................. 2,409,000
92,000 Prime Retail, Inc ................................. 1,035,000
------------
18,286,725
------------
TECHNOLOGY - 0.8%
58,600* Sequent Computer Systems ........................... 857,025
589,388* Zenith Electronics Corp ........................... 5,525,512
------------
6,382,537
------------
TRANSPORTATION - 11.1%
1,154,300 Airborne Freight Corp ............................. 30,444,662
707,100 Hunt (JB) Transportation Services, Inc ............ 14,407,163
620,800* Landstar System, Inc .............................. 17,072,000
308,900 Teekay Shipping Corp .............................. 8,571,975
115,900 TNT Freightways Corp .............................. 2,622,237
1,077,200* Yellow Corp ....................................... 13,195,700
------------
86,313,737
------------
Total Common Stocks 681,690,258
------------
OPTIONS - 1.0%
PUT OPTIONS - 1.0%
14,269,406 Morgan Stanley High Tech Index @ 350,
expiring 6/21/96................................... 2,278,824
15,804,779 Morgan Stanley High Tech Index @ 316,
expiring 6/21/96................................... 728,600
15,384,615 Morgan Stanley High Tech Index @ 325,
expiring 6/21/96................................... 1,089,231
45,839,300 Morgan Stanley High Tech Index @ 327,
expiring 6/21/96................................... 3,465,451
------------
7,562,106
------------
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ----------- ---------------------- ------------
SHORT TERM INVESTMENTS - 3.2%
DISCOUNT NOTE - 1.7%
$ 13,325,000 Federal Home Loan Bank 5.300%** 5/01/96 ............ $ 13,325,000
------------
INVESTMENT COMPANY - 1.5%
11,620,043 Seven Seas Money Market Fund 5.040%*** ............. 11,620,043
------------
Total Short Term Investments 24,945,043
------------
Total Investments - 91.9% 714,197,407
(Cost $684,495,304)
Cash - 0% 7,202
------------
SECURITIES SOLD SHORT - (12.8%)
COMMON STOCKS
TECHNOLOGY - (12.8%)
72,900 Micro Warehouse, Inc .............................. (3,134,700)
163,900 Sun Microsystems, Inc ............................. (8,891,575)
138,600 America Online, Inc ................................ (8,870,400)
203,900 Compaq Computers, Corp ............................. (9,506,838)
584,800 Cypress Semiconductor ............................. (8,260,300)
62,000 Microchip Technology, Inc ......................... (1,581,000)
695,800 Gartner Group, Inc - Class A ...................... (23,831,150)
636,700 Tellabs, Inc ...................................... (35,177,675)
------------
(99,253,638)
------------
Total Securities Sold Short - (12.8%) (99,253,638)
------------
(Proceeds $70,381,440)
Other Assets and (Liabilities), Net - 20.9% 162,537,517
------------
TOTAL NET ASSETS - 100.0% $777,488,488
------------
------------
**Rate reflects purchase yield to maturity
***Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON SMALL CAP FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- ---------------------- ------------
COMMON STOCK - 67.4%
BASIC MATERIALS - 3.6%
10,000* Battle Mountain Gold ................................ $ 88,750
3,300* Pegasus Gold, Inc ................................... 47,025
34,000* Rollins Environmental Services ...................... 89,250
------------
225,025
------------
CONSUMER CYCLICALS - 11.4%
16,000* Bombay Co, Inc ...................................... 186,000
7,400* Burlington Coat Factory ............................. 80,475
12,300 Cato Corp - Class A ................................. 116,850
4,800* Dress Barn, Inc ..................................... 52,200
28,100* Payless Cashways, Inc ............................... 115,913
12,600 Phillips-Van Heusen ................................. 166,950
------------
718,388
------------
CONSUMER STAPLES - 6.6%
14,500 Fleming Companies ................................... 199,375
6,500 Hudson Foods Inc - Class A ......................... 86,125
9,100* Suiza Foods Corp .................................... 129,675
------------
415,175
------------
ENERGY - 8.7%
8,400* Forcenergy Gas Exploration .......................... 117,600
8,500 Forest Oil Corp ..................................... 102,531
3,900 Holly Corp .......................................... 105,300
7,300* Oryx Energy Co ...................................... 116,800
11,900 Snyder Oil Corp ..................................... 107,100
------------
549,331
------------
FINANCIAL - 2.9%
4,600* Risk Capital Holdings, Inc ......................... 91,425
3,000* Zurich Reinsurance Centre .......................... 90,375
------------
181,800
------------
HEALTHCARE - 15.0%
5,700* Coventry Corp....................................... 110,438
5,700* Grancare, Inc ...................................... 102,600
15,500* Horizon/CMS Healthcare Corp ........................ 205,375
10,400* Integrated Health Services ......................... 286,000
15,800* Sun Healthcare Group, Inc ......................... 238,975
------------
943,388
------------
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON SMALL CAP FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- ---------------------- ------------
COMMON STOCK - (continued)
INDUSTRIALS - 11.5%
4,600* Century Aluminum Co................................. $ 67,850
6,600 Crompton & Knowles Corp ............................ 101,475
5,300 Giddings & Lewis, Inc .............................. 98,381
7,200 Oregon Steel Mills, Inc ............................ 114,300
3,400 Stewart & Stevenson Services ....................... 99,875
5,500 TJ International, Inc .............................. 94,875
7,300 Wabash National Corp ............................... 144,175
------------
720,931
------------
TECHNOLOGY - 3.2%
6,000* Sequent Computer Systems ........................... 87,750
12,200* Zenith Electronics Corp ............................ 114,375
------------
202,125
------------
TRANSPORTATION - 4.6%
4,600 Hunt (JB) Transportation Services., Inc ............ 93,725
3,600* Landstar System, Inc ............................... 99,000
300 TNT Freightways Corp ............................... 6,787
7,100* Yellow Corp......................................... 86,975
------------
286,487
------------
Total Common Stocks 4,242,650
------------
SHORT TERM INVESTMENTS - 27.0%
DISCOUNT NOTE - 26.6%
$1,675,000 Federal Home Loan Bank 5.300%** 5/01/96 ............ 1,675,000
------------
INVESTMENT COMPANY - 0.3%
19,468 Seven Seas Money Market Fund 5.040%*** ............. 19,468
------------
Total Short Term Investments 1,694,468
------------
Total Investments - 94.4% 5,937,118
(Cost $5,469,127)
Cash - 4.4% 275,474
Other Assets and (Liabilities), Net - 1.2% 77,539
------------
TOTAL NET ASSETS - 100.0% $ 6,290,131
------------
------------
*Non-income producing security.
**Rate reflects purchase yield to maturity.
***Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(UNAUDITED)
SHARES OR MARKET
FACE VALUE SECURITIES DESCRIPTION VALUE
- ---------- ----------------------------------------- -------
FIXED INCOME SECURITIES - 38.8%
AGENCIES - 5.5%
$ 420,000 International Bank For Reconstruction &
Development Floater 5.890%** 8/07/97................... $ 387,853
------------
1,500,000 Student Loan Marketing Association Treasury
Floater 3.840% 2/11/98 ............................... 1,469,985
900,000 Federal National Mortgage Association 6.080% 9/25/00... 883,179
1,200,000 Federal National Mortgage Association 8.250% 12/18/00.. 1,277,220
550,000 Tennessee Valley Authority 6.125% 7/15/03.............. 530,062
1,000,000 Federal Home Loan Bank 7.590% 3/10/05.................. 1,039,070
1,000,000 Federal National Mortgage Association 7.375% 3/28/05... 1,025,190
925,000 Federal National Mortgage Association 5.875% 2/02/06... 851,056
800,000 Interamerican Development Bank 6.125% 3/08/06.......... 751,000
------------
8,214,615
------------
CMO - 0.8%
1,324,091 Greenwich Capital Acceptance Inc. 1993 - PO1- B........ 1,230,577
------------
CORPORATE BONDS - 8.8%
600,000 Baxter International 7.500% 5/01/97.................... 606,000
500,000 Hertz Corp 8.300% 2/02/98.............................. 514,375
500,000 GMAC 8.000% 10/01/99................................... 519,375
550,000 Upjohn Co 5.875% 4/15/00............................... 533,500
550,000 Pepsico, Inc 5.875% 6/01/00............................ 533,500
400,000 American Express Credit 6.500% 8/01/00................. 393,500
700,000 Ford Motor Credit 6.250% 11/08/00...................... 683,375
725,000 GMAC 9.000% 10/15/02................................... 797,500
550,000 IBM Corp 7.250% 11/01/02............................... 559,625
550,000 JP Morgan & Company 7.625% 9/15/04..................... 564,438
550,000 Pacific Bell 6.250% 3/01/05............................ 519,750
550,000 Anheuser Busch 7.000% 9/01/05.......................... 544,500
700,000 US West Communications 6.625% 9/15/05.................. 676,375
550,000 Bear Stearns Co. 6.875% 10/01/05....................... 530,750
600,000 Snap-on, Inc 6.625% 10/01/05........................... 582,750
900,000 Walt Disney Company Global 6.750% 3/30/06.............. 876,375
550,000 Sysco Corp 7.000% 5/01/06.............................. 546,562
770,000 Dupont 8.250% 9/15/06.................................. 833,525
600,000 Wal-Mart Stores 8.000% 9/15/06 ........................ 636,000
550,000 Eli Lilly 8.375% 12/01/06.............................. 602,938
600,000 AT&T Corp 7.750% 3/01/07............................... 626,250
550,000 GTE South 6.000% 2/15/08............................... 496,375
------------
13,177,338
------------
**Zero-coupon bond rate reflects purchase yield to maturity.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(UNAUDITED)
SHARES OR MARKET
FACE VALUE SECURITIES DESCRIPTION VALUE
- ---------- ----------------------------------------- -------
FIXED INCOME SECURITIES - (CONTINUED)
FHLMC - 2.6%
$ 108,325 FHLMC Pool #281037 9.250% 11/01/16 .................... $ 114,077
988,377 FHLMC Pool #303033 9.000% 4/01/17 ..................... 1,032,904
1,376,268 FHLMC Pool #D65456 7.000% 11/01/25 .................... 1,329,172
1,336,751 FHLMC Pool #C80344 7.500% 9/01/25 ..................... 1,322,916
------------
3,799,069
------------
GOVERNMENT BONDS - 21.1%
2,430,000 U.S. Treasury Note 5.000% 1/31/98 ..................... 2,388,787
9,790,000 U.S. Treasury Note 5.125% 2/28/98 ..................... 9,634,731
4,380,000 U.S. Treasury Note 6.125% 3/31/98 ..................... 4,385,519
2,340,000 U.S. Treasury Note 6.250% 8/31/00 ..................... 2,325,141
4,600,000 U.S. Treasury Note 5.625% 2/28/01 ..................... 4,448,706
1,660,000 U.S. Treasury Note 6.500% 8/15/05 ..................... 1,636,063
725,000 U.S. Treasury Note 6.875% 8/15/25 ..................... 715,872
6,750,000 U.S. Treasury Note 6.000% 2/15/26 ..................... 5,996,565
------------
31,531,384
------------
Total Fixed Income Securities 57,952,983
------------
COMMON STOCK - 55.0%
BASIC MATERIALS - 4.7%
30,800 Browning-Ferris Industries ............................ 993,300
81,000 Hanson PLC, ADR ....................................... 1,225,125
65,300 Homestake Mining ...................................... 1,314,163
82,500 Laidlaw, Inc. - Class B .............................. 866,250
48,600* Methanex Corp ......................................... 384,243
65,900 WMX Technologies, Inc ................................. 2,290,025
------------
7,073,106
------------
CONSUMER CYCLICALS - 6.2%
9,800 Dayton-Hudson Corp ..................................... 935,900
39,000 General Motors Corp .................................... 2,115,750
41,400 Liz Claiborne, Inc ..................................... 1,505,925
6,900 Lowe's Companies ....................................... 223,388
81,900* Price/Costco, Inc ...................................... 1,556,100
2,000 Reebok International LTD ............................... 58,000
6,500 Singer Co .............................................. 168,188
72,800 Sunbeam Corp ........................................... 1,010,100
67,700 Wal-Mart Stores, Inc ................................... 1,616,337
------------
9,189,688
------------
CONSUMER STAPLES - 2.2%
53,900 American Greetings Corp - Class A ...................... 1,488,988
19,600 Dean Foods ............................................. 458,150
36,700 Quaker Oats ............................................ 1,261,562
------------
3,208,700
------------
ADR - American Depositary Receipt.
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(UNAUDITED)
SHARES OR MARKET
FACE VALUE SECURITIES DESCRIPTION VALUE
- ---------- ----------------------------------------- -------
COMMON STOCK - (CONTINUED)
ENERGY - 9.7%
31,900 Apache Corp ........................................... $ 925,100
77,800 Burlington Resources, Inc ............................. 2,898,050
44,000 Dresser Industries, Inc ............................... 1,402,500
33,700 Enron Oil & Gas ....................................... 893,050
76,500 Enserch Corp .......................................... 1,644,750
105,600* Enserch Exploration ................................... 1,148,400
103,700 Occidental Petroleum Corp ............................. 2,670,275
26,600 Tenneco, Inc .......................................... 1,459,675
52,300 Union Texas Petroleum Holdings, Inc ................... 1,013,313
9,800 Unocal Corp ........................................... 314,825
------------
14,369,938
------------
FINANCIAL - 4.3%
109,000 Equitable Companies ................................... 2,575,125
24,648* ITT Hartford Group, Inc ............................... 1,202,325
35,800 Salomon, Inc .......................................... 1,454,375
38,100 U.S. Bancorp .......................................... 1,233,487
------------
6,465,312
------------
HEALTHCARE - 1.1%
66,700* Humana, Inc ........................................... 1,642,488
------------
INDUSTRIALS - 12.2%
188,500* Bethlehem Steel Corp .................................. 2,568,312
18,400 Champion International Corp ........................... 887,800
60,200* Detroit Diesel Corp ................................... 1,151,325
165,700 Domtar, Inc ........................................... 1,263,463
50,000 J & L Specialty Steel ................................. 906,250
103,400 Louisiana Pacific Corp ................................ 2,597,925
31,900 Lubrizol Corp ......................................... 925,100
135,600* National Steel Corp - Class B ......................... 1,847,550
31,700 Nucor Corp ............................................ 1,783,125
26,100 Trinova Corp .......................................... 920,025
130,200* USG Corp .............................................. 3,401,475
------------
18,252,350
------------
REAL ESTATE INVESTMENT TRUST - 1.1%
38,200 First Industrial Realty Trust ......................... 912,025
31,100 Spieker Properties .................................... 808,600
------------
1,720,625
------------
TECHNOLOGY - 7.0%
72,200 Apple Computers, Inc .................................. 1,759,875
20,800* Dell Computer Corp .................................... 954,200
24,700 Intel Corp ............................................ 1,673,425
56,600* Silicon Graphics ...................................... 1,676,775
180,400* Tandem Computers, Inc ................................. 2,300,100
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(UNAUDITED)
SHARES OR MARKET
FACE VALUE SECURITIES DESCRIPTION VALUE
- ---------- ----------------------------------------- -------
COMMON STOCK - (CONTINUED)
TECHNOLOGY - (CONTINUED)
33,500 Texas Instruments ..................................... $ 1,892,750
26,165* Zenith Electronics Corp ............................... 245,297
------------
10,502,422
------------
TELECOMMUNICATIONS - 3.3%
11,300 Comcast Corp Special - Class A ........................ 197,750
51,703* Cox Communications, Inc - Class A ..................... 1,059,911
110,800* U.S. West Media Group ................................. 2,160,600
80,700 Westinghouse Electric Corp ............................ 1,523,212
------------
4,941,473
------------
TRANSPORTATION - 2.2%
7,000 Burlington Northern Santa Fe .......................... 612,500
101,900 Consolidated Freightways .............................. 2,662,138
------------
3,274,638
------------
UTILITIES - 1.0%
68,800 Pacificorp ............................................ 1,376,000
------------
Total Common Stocks 82,016,740
------------
SHORT TERM INVESTMENTS - 5.2%
AGENCY - 0.7%
$1,000,000 Federal Home Loan Bank 5.180%*** 5/24/96............... 996,703
------------
INVESTMENT COMPANY - 3.8%
5,707,648 Seven Seas Money Market Fund 5.040%**** ............... 5,707,648
------------
TREASURY BILLS - 0.7%
1,000,000 U.S. Treasury Bill 5.050%*** 10/17/96.................. 975,960
------------
Total Short Term Investments 7,680,311
------------
Total Investments - 99.0% 147,650,034
(Cost $140,507,606)
Cash - 0.9% 1,332,715
Other Assets and (Liabilities), Net - 0.1% 102,002
------------
TOTAL NET ASSETS - 100.0% $149,084,751
------------
------------
*Non-income producing security.
***Rates reflect purchase yield to maturity.
****Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE
OR SHARES SECURITIES DESCRIPTION MARKET VALUE
- ---------- ----------------------------------------------------- ------------
COMMON STOCK - 90.7%
BASIC MATERIALS - 7.8%
166,300 Browning-Ferris Industries .......................... $ 5,363,175
423,500 Hanson PLC, ADR ..................................... 6,405,438
356,100 Homestake Mining .................................... 7,166,513
477,300 Laidlaw, Inc - Class B .............................. 5,011,650
265,800 * Methanex Corp ....................................... 2,101,481
354,900 WMX Technologies, Inc ............................... 12,332,775
-----------
38,381,032
-----------
CONSUMER CYCLICALS - 10.1%
53,600 Dayton-Hudson Corp .................................. 5,118,800
213,300 General Motors Corp ................................. 11,571,525
239,000 Liz Claiborne, Inc .................................. 8,693,625
44,300 Lowe's Companies .................................... 1,434,212
419,100 * Price/Costco, Inc ................................... 7,962,900
9,000 Reebok International Ltd ............................ 261,000
35,400 Singer Co ........................................... 915,975
375,500 Sunbeam Corp ........................................ 5,210,063
343,200 Wal-Mart Stores, Inc ................................ 8,193,900
-----------
49,362,000
-----------
CONSUMER STAPLES - 3.4%
283,900 American Greetings Corp - Class A ................... 7,842,738
113,600 Dean Foods Co ....................................... 2,655,400
187,000 Quaker Oats ......................................... 6,428,125
-----------
16,926,263
-----------
ENERGY - 15.6%
151,400 Apache Corp ......................................... 4,390,600
413,100 Burlington Resources, Inc ........................... 15,387,975
241,600 Dresser Industries, Inc ............................. 7,701,000
176,800 Enron Oil & Gas ..................................... 4,685,200
594,100 Enserch Corp ........................................ 6,460,837
347,000 * Enserch Exploration ................................. 7,460,500
508,400 Occidental Petroleum Corp ........................... 13,091,300
160,900 Tenneco, Inc ........................................ 8,829,387
359,000 Union Texas Petroleum Holdings, Inc ................. 6,955,625
49,300 Unocal Corp ......................................... 1,583,762
-----------
76,546,186
-----------
FINANCIAL - 7.9%
588,200 Equitable Companies ................................. 13,896,225
151,900 * ITT Hartford Group, Inc ............................. 7,424,112
239,600 Salomon, Inc ........................................ 9,733,750
244,300 U.S. Bancorp ........................................ 7,909,213
-----------
38,963,300
-----------
ADR - American Depositary Receipt
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE
OR SHARES SECURITIES DESCRIPTION MARKET VALUE
- ---------- ----------------------------------------------------- ------------
COMMON STOCK - (continued)
HEALTHCARE - 1.7%
330,900 * Humana, Inc ......................................... $ 8,148,413
-----------
INDUSTRIALS - 19.3%
1,026,000 * Bethlehem Steel Corp ................................ 13,979,250
101,500 Champion International Corp ......................... 4,897,375
310,900 * Detroit Diesel Corp ................................. 5,945,962
889,000 Domtar, Inc ......................................... 6,778,625
277,400 J & L Specialty Steel ............................... 5,027,875
556,700 Louisiana Pacific Corp .............................. 13,987,087
73,000 Lubrizol Corp ....................................... 2,117,000
660,400 * National Steel Corp - Class B ....................... 8,997,950
164,100 Nucor Corp .......................................... 9,230,625
150,000 Trinova Corp ........................................ 5,287,500
700,000 * USG Corp ............................................ 18,287,500
-----------
94,536,749
-----------
REAL ESTATE INVESTMENT TRUST - 2.1%
169,300 First Industrial Realty Trust ....................... 4,042,038
248,100 Spieker Properties .................................. 6,450,600
-----------
10,492,638
-----------
TECHNOLOGY- 11.6%
387,600 Apple Computers, Inc ................................ 9,447,750
112,400 * Dell Computer Corp .................................. 5,156,350
139,600 Intel Corp .......................................... 9,457,900
287,800 * Silicon Graphics .................................... 8,526,075
983,900 * Tandem Computers, Inc ............................... 12,544,725
184,400 Texas Instruments ................................... 10,418,600
134,265 * Zenith Electronics Corp ............................. 1,258,734
-----------
56,810,134
-----------
TELECOMMUNICATIONS - 6.3%
92,000 BCE, Inc ............................................ 3,622,500
138,700 Comcast Corp Special - Class A ...................... 2,427,250
264,219 * Cox Communications, Inc - Class A ................... 5,416,490
596,200 * US West Media Group ................................. 11,625,900
406,800 Westinghouse Electric Corp .......................... 7,678,350
-----------
30,770,490
-----------
TRANSPORTATION - 5.0%
58,600 * AMR Corp ............................................ 5,230,050
51,700 Burlington Northern Santa Fe ........................ 4,523,750
553,200 Consolidated Freightways ............................ 14,452,350
-----------
24,206,150
-----------
Total Common Stocks 445,143,355
-----------
*Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE
OR SHARES SECURITIES DESCRIPTION MARKET VALUE
- ---------- ----------------------------------------------------- ------------
SHORT TERM INVESTMENTS - 8.9%%
DISCOUNT NOTES** - 7.2%
FEDERAL FARM CREDIT - 0.3%
$1,545,000 5.190% 5/30/96 ...................................... $ 1,538,541
-----------
FEDERAL HOME LOAN - 6.9%
5,820,000 5.300% 5/01/96 ...................................... 5,820,000
2,210,000 5.170% 5/02/96 ...................................... 2,209,683
100,000 5.180% 5/03/96 ...................................... 99,971
120,000 4.930% 5/07/96 ...................................... 119,901
960,000 5.240% 5/08/96 ...................................... 959,022
4,000,000 5.160% 5/09/96 ...................................... 3,995,413
705,000 4.960% 5/10/96 ....................................... 704,098
5,340,000 5.150% 5/13/96 ...................................... 5,330,789
5,000,000 5.180% 5/14/96 ...................................... 4,990,647
2,635,000 5.170% 5/15/96 ...................................... 2,629,651
255,000 4.980% 5/20/96 ...................................... 254,330
1,545,000 5.180% 5/24/96 ...................................... 1,539,907
885,000 5.060% 5/28/96 ...................................... 881,641
55,000 4.910% 6/03/96 ...................................... 54,753
1,370,000 5.560% 6/10/96 ...................................... 1,362,602
375,000 5.100% 7/01/96 ...................................... 371,759
290,000 5.150% 7/15/96 ...................................... 286,889
260,000 5.150% 7/17/96 ...................................... 257,136
180,000 4.890% 7/19/96 ...................................... 178,069
905,000 4.990% 7/22/96 ...................................... 894,714
625,000 4.850% 7/23/96 ...................................... 618,011
250,000 5.190% 8/12/96 ...................................... 246,288
230,000 5.180% 8/14/96 ...................................... 226,525
80,000 5.120% 9/18/96 ...................................... 78,407
-----------
34,110,206
-----------
INVESTMENT COMPANY - 1.6%
7,780,434 Seven Seas Money Market Fund 5.040%*** .............. 7,780,434
-----------
TREASURY BILLS & NOTES** - 0.0%
U. S. TREASURY BILL
175,000 5.260% 10/17/96 ..................................... 170,793
-----------
Total Short Term Investments 43,599,974
-----------
Total Investments - 99.6% 488,743,329
(Cost $441,995,516)
Cash - 0.3% 1,405,102
Other Assets and (Liabilities), Net - 0.1% 860,173
-----------
TOTAL NET ASSETS - 100.0% $491,008,604
-----------
-----------
**Rates reflect purchase yield to maturity.
***Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON REAL ESTATE INVESTMENT FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- -------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCK - 89.7%
REAL ESTATE INVESTMENT TRUST - 89.7%
APARTMENT - 32.2%
4,400 AMLI Residential Properties..................................................... $ 87,450
15,000 Camden Property Trust........................................................... 356,250
23,500 Columbus Realty Trust........................................................... 461,188
25,000 Equity Residential Properties Trust............................................. 806,250
8,500 Mid-America Apartment Communities............................................... 224,187
15,000 Oasis Residential, Inc.......................................................... 337,500
30,000 Pacific Gulf Properties, Inc.................................................... 525,000
22,500 Paragon Group, Inc.............................................................. 399,375
37,500 Prime Residential, Inc.......................................................... 679,688
21,000 Smith Charles Residential....................................................... 488,250
43,500 SouthWest Property Trust........................................................ 592,687
38,500 Town & Country Trust............................................................ 539,000
------------
5,496,825
------------
INDUSTRIAL - 12.7%
15,900 Carramerica Realty Corp......................................................... 385,575
5,000 Colonial Properties Trust....................................................... 120,000
15,500 Duke Realty Investments......................................................... 459,188
25,400 Security Capital Industrial..................................................... 438,150
5,000 Storage USA, Inc................................................................ 165,625
6,000 Trinet Corporate Realty Trust .................................................. 171,750
17,800 Weeks Corp...................................................................... 433,875
------------
2,174,163
------------
LODGING - 6.4%
23,150 Felcor Suite Hotels, Inc........................................................ 674,243
12,500 Starwood Lodging Trust.......................................................... 414,062
------------
MALLS - 9.7%
------------
62,800 DeBartolo Realty Corp........................................................... 973,400
15,000 General Growth Properties....................................................... 350,625
32,750 Taubman Centers, Inc............................................................ 323,406
------------
1,647,431
------------
OUTLET CENTERS - 8.2%
22,000 HGI Realty, Inc................................................................. 451,000
63,000 Prime Retail, Inc............................................................... 708,750
10,000 Tanger Factory Outlet Center.................................................... 245,000
------------
1,404,750
------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON REAL ESTATE INVESTMENT FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES OR
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- -------------------------------------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCK - (CONTINUED)
REAL ESTATE INVESTMENT TRUST - (CONTINUED)
SHOPPING CENTER - 20.5%
18,000 Bradley Real Estate............................................................. $ 265,500
10,700 Developers Diversified Realty................................................... 311,638
39,250 Glimcher Realty Trust........................................................... 672,156
52,000 Kranzco Realty Trust............................................................ 812,500
35,000 Malan Realty Investors, Inc..................................................... 498,750
11,750 Mark Centers Trust.............................................................. 126,313
9,500 New Plan Realty................................................................. 192,375
36,000 Regency Realty Corp............................................................. 625,500
------------
3,504,732
------------
Total Common Stock 15,316,206
------------
SHORT TERM INVESTMENTS - 8.5%
INVESTMENT COMPANY - 5.0%
$ 852,963 Seven Seas Money Market Fund 5.04%* ............................................ 852,963
------------
REPURCHASE AGREEMENT - 3.5%
603,906 State Street Bank & Trust Company** 4.00% 5/1/96 ............................... 603,906
------------
Total Short Term Investments 1,456,869
------------
Total Investments - 98.2% 16,773,075
(Cost $15,763,542)
Cash - 0% 4,179
Other Assets and (Liabilities), Net - 1.8% 304,601
------------
TOTAL NET ASSETS - 100.0% $ 17,081,855
------------
------------
</TABLE>
*Rate reflects 7 day yield as of April 30, 1996.
**The repurchase agreement, dated 4/30/96, $603,972 due 5/1/96 is collateralized
by $600,000 Federal Farm Credit Note, 6.64%, 5/18/98.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- -------------------------------------------------------------------------------- ------------
<S> <C> <C>
FIXED INCOME SECURITIES - 99.0%
AGENCIES - 14.9%
$ 320,000 International Bank For Reconstruction & Development Floater
6.170%* 8/7/97.................................................................. $ 295,507
300,000 FHLMC Strips 11/15/99 .......................................................... 238,815
100,000 Tennessee Valley Authority 6.125% 7/15/03 ...................................... 96,375
200,000 FNMA 5.875% 2/02/06 ............................................................ 184,012
50,000 Interamerican Development Bank 6.125% 3/08/06................................... 46,937
------------
861,646
------------
CORPORATE BONDS - 29.3%
100,000 Baxter International 7.500% 5/01/97 ........................................... 101,000
100,000 GMAC 8.000% 10/01/99 .......................................................... 103,875
100,000 Upjohn Company 5.875% 4/15/00 .................................................. 97,000
100,000 Pepsico, Inc 5.875% 6/01/00 .................................................... 97,000
100,000 American Express Credit 6.500% 8/01/00 ......................................... 98,375
100,000 IBM Corp 7.250% 11/01/02 ....................................................... 101,750
100,000 JP Morgan & Company 7.625% 9/15/04 ............................................. 102,625
100,000 Pacific Bell 6.250% 3/01/05 .................................................... 94,500
100,000 Anheuser Busch 7.000% 9/01/05 .................................................. 99,000
100,000 Bear Stearns Co 6.875% 10/01/05 ............................................... 96,500
100,000 Snap-on, Inc 6.625% 10/01/05 .................................................. 97,125
100,000 Walt Disney Company Global 6.750% 3/30/06....................................... 97,375
100,000 Sysco Corp 7.000% 5/01/06....................................................... 99,375
100,000 Wal-Mart Stores 8.000% 9/15/06 ................................................. 106,000
100,000 Eli Lilly 8.375% 12/01/06 ...................................................... 109,625
100,000 AT&T Corp 7.750% 3/01/07 ...................................................... 104,375
100,000 GTE South 6.000% 2/15/08 ....................................................... 90,250
------------
1,695,750
------------
GOVERNMENT BONDS - 36.0%
130,000 U.S. Treasury Note 5.000% 1/31/98 .............................................. 127,795
820,000 U.S. Treasury Note 5.125% 2/28/98 .............................................. 806,995
280,000 U.S. Treasury Note 6.125% 3/31/98 .............................................. 280,353
150,000 U.S. Treasury Note 5.625% 2/28/01 .............................................. 145,067
810,000 U.S. Treasury Note 6.000% 2/15/26 .............................................. 719,588
------------
2,079,798
------------
INSURED BONDS - 2.7%
160,000 City of Lincoln Oregon 5.800% 6/01/97 (AMBAC) ................................. 159,584
------------
</TABLE>
*Zero-coupon bond rate reflects purchase yield to maturity.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- -------------------------------------------------------------------------------- ------------
<S> <C> <C>
FIXED INCOME SECURITIES - (CONTINUED)
MORTGAGE PASS-THROUGH SECURITIES - 16.1%
$ 79,665 FNMA Pool #30333 9.250% 9/01/16 ............................................... $ 83,621
119,133 FHLMC Pool #302029 9.500% 10/01/16 ............................................ 126,516
169,497 FHLMC Pool #303033 9.000% 4/01/17 ............................................. 177,134
239,866 FHLMC Pool #301538 10.000% 7/01/17 ............................................ 261,032
142,630 FHLMC Pool #C80344 7.500% 09/01/25 ............................................ 141,155
147,457 FHLMC Pool #D65456 7.000% 11/01/25 ............................................ 142,411
------------
931,869
------------
Total Fixed Income Securities 5,728,647
------------
SHORT TERM INVESTMENTS - 1.9%
INVESTMENT COMPANY - 1.9%
108,115 Seven Seas U.S. Government Money Market Fund
4.980%** ....................................................................... 108,115
------------
Total Investments - 100.9% 5,836,762
(Cost $5,832,291)
Cash - 0% 402
Other Assets and (Liabilities), Net - (0.9)% (52,313)
------------
TOTAL NET ASSETS - 100.0% $ 5,784,851
------------
------------
</TABLE>
**Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
THE OREGON MUNICIPAL BOND FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ------------ -------------------------------------------------------------- ---------------
<C> <S> <C>
FIXED INCOME SECURITIES - 98.2%
CERTIFICATE OF PARTICIPATION BONDS - 1.0%
$ 250,000 City of Portland 6.950% 4/01/99. . . . . . . . . . . . . . . . $ 267,813
---------------
INSURED BONDS - 47.1%
200,000 Jackson County Oregon School District 6.000% 6/01/01 (FSA) . . 212,000
250,000 Clackamas County Hospital Facility Revenue
5.800% 3/01/02 (MBIA) . . . . . . . . . . . . . . . . . . . 260,937
1,000,000 Portland Hospital Facility Legacy Health System
6.400% 5/01/02 (AMBAC) . . . . . . . . . . . . . . . . . . 1,078,750
200,000 Yamhill County School District #29J
4.800% 6/01/02 (FSA) . . . . . . . . . . . . . . . . . . . 198,750
1,240,000 Hood River County Oregon School District
6.000% 6/01/03 (AMBAC). . . . . . . . . . . . . . . . . . . 1,323,700
250,000 Emerald Peoples Utility District 5.450% 11/01/03 (AMBAC) . . . 257,500
500,000 Deschutes/Jefferson County School District
5.300% 6/01/04 (MBIA) . . . . . . . . . . . . . . . . . . . 508,750
260,000 Hood River County Oregon School District
6.000% 6/01/04 (AMBAC) . . . . . . . . . . . . . . . . . . 277,225
545,000 Jefferson County School District #509J 6.500% 6/15/04 (FSA). . 597,456
400,000 University Puerto Rico 5.100% 6/01/05 (MBIA) . . . . . . . . . 403,000
350,000 Portland Oregon Sewer System 5.750% 10/01/05 (FGIC). . . . . . 367,500
500,000 Washington County Sewer System 5.800% 10/01/05 (AMBAC) . . . . 525,625
125,000 Marion County Oregon School District 6.000% 11/01/05 (FGIC). . 133,125
1,015,000 Crook County Oregon School District 4.700% 2/01/06 (FSA) . . . 969,325
435,000 Jefferson County Oregon School District 5.400% 6/15/06 (FSA) . 438,806
400,000 Oregon State Facility - Series A 6.100% 9/01/06 (AMBAC). . . . 421,000
350,000 Washington County Sewer System 5.900% 10/01/06 (AMBAC) . . . . 367,938
940,000 McMinnville Sewer System 4.700% 2/01/07 (FGIC) . . . . . . . . 900,050
335,000 Jackson County Oregon School District 5.200% 6/01/07 (FSA) . . 334,581
450,000 Josephine County Oregon School District 5.750% 6/01/07 (FGIC). 467,438
1,000,000 Salem Keizer School District #24-J 5.500% 6/01/07 (FGIC) . . . 1,012,500
1,100,000 Multnomah County School District 5.600% 12/01/07 (FGIC). . . . 1,134,375
160,000 Marion County Oregon School District 4.850% 6/01/08 (AMBAC). . 152,000
135,000 Bend County Library 5.375% 6/01/11 (AMBAC) . . . . . . . . . . 131,794
100,000 Washington County School District 6.100% 6/01/12 (FSA) . . . . 103,250
350,000 Portland Oregon Sewer System 6.000% 10/01/12 (FGIC). . . . . . 358,313
500,000 McMinnville Sewer System 5.000% 2/01/14 (FGIC) . . . . . . . . 461,875
---------------
13,397,563
---------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE OREGON MUNICIPAL BOND FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ------------ -------------------------------------------------------------- ---------------
<C> <S> <C>
FIXED INCOME SECURITIES - (continued)
STATE OF OREGON
GENERAL OBLIGATION - 9.3%
$ 240,000 State of Oregon G.O. 7.700% 3/01/02. . . . . . . . . . . . . . $ 249,893
100,000 State of Oregon G.O. 9.000% 4/01/03. . . . . . . . . . . . . . 123,500
205,000 State of Oregon G.O. 8.200% 7/01/04. . . . . . . . . . . . . . 248,819
150,000 State of Oregon G.O. 7.200% 7/01/04. . . . . . . . . . . . . . 172,125
110,000 State of Oregon G.O. 6.000% 8/01/04. . . . . . . . . . . . . . 117,563
200,000 State of Oregon G.O. 9.000% 10/01/04 . . . . . . . . . . . . . 225,250
355,000 State of Oregon G.O. 6.750% 5/01/05. . . . . . . . . . . . . . 397,600
250,000 State of Oregon G.O. (Veterans) 7.250% 7/01/06 . . . . . . . . 291,875
200,000 State of Oregon G.O. 7.250% 1/01/07. . . . . . . . . . . . . . 233,750
200,000 State of Oregon G.O. (Veterans) 8.250% 1/01/07 . . . . . . . . 247,500
100,000 State of Oregon G.O. (Alt Energy) 6.400% 1/01/08 . . . . . . . 104,500
180,000 State of Oregon G.O. 9.200% 4/01/08. . . . . . . . . . . . . . 240,300
---------------
2,652,675
---------------
PRE-REFUNDED BONDS* - 2.1%
250,000 Oregon State Revenue - Series B 6.250% 1/01/08. . . . . . . . 271,250
185,000 Oregon Economic Development Dept-Series B 6.350% 1/01/13 . . . 201,419
100,000 Oregon State Department General Services 7.200% 1/15/15. . . . 110,750
---------------
583,419
---------------
REVENUE BONDS - 4.7%
545,000 Oregon State Light Rail 7.000% 6/01/04 . . . . . . . . . . . . 610,400
220,000 Portland Oregon Sewer System Revenue 5.550% 6/01/04. . . . . . 227,700
125,000 Oregon State Fair & Expo Revenue 7.375% 10/01/06 . . . . . . . 126,323
100,000 Portland Oregon Sewer System Revenue 5.150% 3/01/08. . . . . . 97,750
160,000 Portland Oregon Building Service 4.750% 4/01/08. . . . . . . . 150,800
150,000 Metro Oregon Regional Center 5.000% 8/01/10. . . . . . . . . . 138,375
---------------
1,351,348
---------------
OTHER BONDS
GENERAL OBLIGATION - 13.3%
5,000 City of Portland Water G.O. 3.700% 12/01/00. . . . . . . . . . 4,854
330,000 Puerto Rico G.O. 7.125% 7/01/02. . . . . . . . . . . . . . . . 346,088
200,000 Multnomah County Oregon School District 4.250% 6/01/03 . . . . 191,250
210,000 Washington & Clackamas School District 5.250% 6/01/03. . . . . 212,362
300,000 Deschutes G.O. School District #1 5.800% 2/01/04 . . . . . . . 313,500
15,000 Washington & Clackamas School District 5.000% 1/01/05. . . . . 14,718
410,000 Washington & Clackamas School District 5.250% 6/01/05. . . . . 409,487
200,000 Clackamas Community College 5.100% 12/01/05. . . . . . . . . . 199,750
135,000 Portland Oregon Community College 5.800% 7/01/06 . . . . . . . 139,387
1,000,000 Tri-Met Light Rail 5.900% 7/01/06. . . . . . . . . . . . . . . 1,036,250
300,000 Salem Oregon - Series A 5.875% 1/01/07 . . . . . . . . . . . . 307,125
400,000 Metro Oregon Open Spaces Program 4.900% 9/01/07. . . . . . . . 386,500
240,000 Lane County Area Education District 4.850% 6/01/08 . . . . . . 229,800
---------------
3,791,071
---------------
</TABLE>
*Dates reflect pre-refunded dates.
See accompanying notes to financial statements.
<PAGE>
THE OREGON MUNICIPAL BOND FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ------------ -------------------------------------------------------------- ---------------
<C> <S> <C>
FIXED INCOME SECURITIES - (continued)
REVENUE BONDS - 9.3%
$ 335,000 Central Lincoln PUD 6.500% 1/01/02 . . . . . . . . . . . . . . $ 360,962
600,000 Clackamas County Hospital (Sisters of Providence)
6.200% 10/01/02. . . . . . . . . . . . . . . . . . . . . . . 633,000
350,000 City of Portland (Urban Renewal) 5.700% 6/01/04. . . . . . . . 362,686
435,000 Multnomah County School District 5.000% 3/01/07. . . . . . . . 421,950
100,000 Portland Oregon Water System 5.100% 8/01/08. . . . . . . . . . 97,750
765,000 Salem Educational Facility (Revenue) 6.000% 4/01/10. . . . . . 784,125
---------------
2,660,473
---------------
PRE-REFUNDED BONDS* - 11.4%
250,000 Clackamas & Washington County School
District #003 7.200% 10/01/99 . . . . . . . . . . . . . . 271,563
200,000 Clackamas & Washington County School
District #003 7.250% 10/01/99 . . . . . . . . . . . . . . 217,500
310,000 Emerald Peoples Utility District 6.300% 11/01/00 . . . . . . . 335,188
400,000 Metropolitan Service District 7.000% 7/01/01 . . . . . . . . . 439,500
250,000 Emerald Peoples Utility District 6.500% 11/01/03 . . . . . . . 272,812
250,000 Washington County School District 6.200% 9/01/04 . . . . . . . 268,750
125,000 Marion & Polk County School District 5.700% 10/01/05 . . . . . 131,875
328,000 Deschutes County (St. Charles Medical Center) 6.750% 1/01/06 . 354,240
150,000 Marion & Polk County Oregon School District 4.750% 10/01/06. . 141,938
270,000 Port of Morrow (Pollution Control) 6.375% 4/01/08. . . . . . . 292,950
225,000 Marion & Polk County School District #24-J 6.000% 10/01/10 . . 241,031
270,000 Metropolitan Service District 6.600% 7/01/11 . . . . . . . . . 292,613
---------------
3,259,960
---------------
Total Fixed Income Securities 27,964,322
---------------
</TABLE>
*Dates reflect pre-refunded dates.
See accompanying notes to financial statements.
<PAGE>
THE OREGON MUNICIPAL BOND FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ------------ -------------------------------------------------------------- ---------------
<C> <S> <C>
SHORT TERM INVESTMENTS - 0.7%
INVESTMENT COMPANY - 0.7%
$ 212,459 Dreyfus Tax-Exempt Cash Management Fund 3.710%** . . . . . . . $ 212,459
-----------
Total Investments - 98.9% 28,176,781
(Cost $27,392,239)
Cash - 0% 150
Other Assets and (Liabilities), Net - 1.1% 298,494
----------
TOTAL NET ASSETS - 100.0% $28,475,425
-----------
-----------
----------------------------------------------------------------------------------
Portfolio Allocation Table:
Education. . . . . . . . . . . . . . . . . . . . . . . . . . . 38.0%
Refunding Bonds. . . . . . . . . . . . . . . . . . . . . . . . 22.1
Sewer & Water. . . . . . . . . . . . . . . . . . . . . . . . . 11.9
Transportation . . . . . . . . . . . . . . . . . . . . . . . . 5.9
Health & Hospital. . . . . . . . . . . . . . . . . . . . . . . 3.6
Public Improvements. . . . . . . . . . . . . . . . . . . . . . 2.4
Electric Utility . . . . . . . . . . . . . . . . . . . . . . . 2.3
Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . 12.7
Total Investments. . . . . . . . . . . . . . . . . . . . . . . 98.9%
----------------------------------------------------------------------------------
</TABLE>
AMBAC - American Municipal Bond Assurance Corp.
FGIC - Financial Guaranty Insurance Corp.
FSA - Financial Security Assurance
G.O. - Government Obligation
MBIA - Municipal Bond Insurance Assoc.
PUD - Public Utility District
**Rate reflects 7 day yield as of April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON U.S. GOVERNMENT INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ------------ ----------------------------------------------------- ------------
FIXED INCOME SECURITIES - 98.0%
AGENCIES - 11.3%
$ 255,000 International Bank For Reconstruction & Development
Floater 5.390%* 08/07/97 ........................... $ 235,482
150,000 Federal National Mortgage 4.950% 9/30/98............. 145,683
120,000 Federal National Mortgage 6.080% 9/25/00............. 117,757
100,000 Federal National Mortgage 8.250% 12/18/00............ 106,435
50,000 Federal Home Loan Bank 7.590% 3/28/05................ 51,953
50,000 Federal National Mortgage 7.375% 3/28/05............. 51,261
200,000 Federal National Mortgage 5.875% 2/02/06............. 184,012
---------
892,583
---------
GOVERNMENT BONDS - 86.7%
5,765,000 U.S. Treasury Note 5.000% 1/31/98.................... 5,667,226
30,000 U.S. Treasury Note 5.125% 2/28/98.................... 29,524
585,000 U.S. Treasury Note 6.250% 8/31/00.................... 581,285
100,000 U.S. Treasury Note 5.625% 11/30/00.................. 96,894
500,000 U.S. Treasury Note 5.625% 2/28/01.................... 483,555
---------
6,858,484
---------
Total Fixed Income 7,751,067
---------
SHORT TERM INVESTMENTS - 1.0%
REPURCHASE AGREEMENT - 1.0%
78,873 State Street Bank and Trust Company** 4.00% 5/01/96.. 78,873
---------
Total Investments - 99.0% 7,829,940
(Cost $7,938,284)
Other Assets and (Liabilities), Net - 1.0% 76,733
---------
TOTAL NET ASSETS - 100.0% $7,906,673
---------
---------
*Zero-coupon bond-rate reflects purchase yield to maturity.
**The repurchase agreement, dated 4/30/96, $78,882 due 5/1/96, is
collateralized by $79,000 Federal Farm Credit Note, 6.640%, 5/18/98.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON U.S. GOVERNMENT MONEY MARKET FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- ---------------------- ------------
FIXED INCOME SECURITIES* - 101.5%
U.S. GOVERNMENT & AGENCY - 101.5%
TREASURY BILLS - 20.2%
$ 1,000,000 5.000% 7/25/96 ...................................... $ 986,919
3,000,000 4.780% 8/29/96 ...................................... 2,952,200
4,500,000 5.025% 12/12/96 ..................................... 4,358,672
-----------
8,297,791
-----------
DISCOUNT NOTES - 81.3%
FEDERAL FARM CREDIT
1,000,000 4.970% 5/06/96 ...................................... 999,310
455,000 5.190% 5/30/96 ...................................... 453,098
1,000,000 5.290% 5/31/96 ...................................... 995,592
FEDERAL HOME LOAN BANK
180,000 5.160% 5/01/96 ...................................... 180,000
1,095,000 5.170% 5/02/96 ...................................... 1,094,843
400,000 5.180% 5/03/96 ...................................... 399,885
500,000 5.210% 5/06/96 ...................................... 499,638
1,880,000 4.930% 5/07/96 ...................................... 1,878,455
1,040,000 5.240% 5/08/96 ...................................... 1,038,941
795,000 4.960% 5/10/96 ...................................... 794,014
660,000 5.150% 5/13/96 ...................................... 658,867
1,475,000 5.170% 5/15/96 ...................................... 1,472,027
745,000 4.980% 5/20/96 ...................................... 743,042
1,000,000 5.330% 5/21/96 ...................................... 997,039
455,000 5.180% 5/24/96 ...................................... 453,500
115,000 5.060% 5/28/96 ...................................... 114,564
845,000 4.910% 6/03/96 ...................................... 841,197
1,000,000 5.090% 6/04/96 ...................................... 995,193
630,000 4.860% 6/10/96 ...................................... 626,598
1,000,000 5.000% 6/17/96 ...................................... 993,472
2,000,000 5.170% 6/19/96 ...................................... 1,985,926
625,000 5.100% 7/01/96 ...................................... 619,598
2,710,000 5.150% 7/15/96 ...................................... 2,680,924
1,490,000 5.150% 7/17/96 ...................................... 1,473,587
1,420,000 4.890% 7/19/96 ...................................... 1,404,762
1,095,000 4.990% 7/22/96 ...................................... 1,082,554
125,000 4.850% 7/23/96 ...................................... 123,602
2,250,000 5.190% 8/12/96 ...................................... 2,216,589
770,000 5.180% 8/14/96 ...................................... 758,367
2,000,000 4.880% 9/04/96 ...................................... 1,965,840
920,000 5.120% 9/18/96 ...................................... 901,682
2,000,000 5.150% 10/21/96 ..................................... 1,950,503
-----------
33,393,209
-----------
*Rates reflect purchase yield to maturity.
See accompanying notes to financial statements.
<PAGE>
THE CRABBE HUSON U.S. GOVERNMENT MONEY MARKET FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
FACE VALUE SECURITIES DESCRIPTION MARKET VALUE
- ---------- ---------------------- ------------
FIXED INCOME SECURITIES* - (continued)
REPURCHASE AGREEMENT - 0.0%
$ 3,899 State Street Bank and Trust Company** 4.000% 5/1/96... $ 3,899
-----------
Total Investments - 101.5% 41,694,899
(Cost $41,694,899)
Cash - 0% 2,797
Other Assets and (Liabilities), Net - (1.5%) (636,621)
-----------
TOTAL NET ASSETS - 100.0% $41,061,075
-----------
-----------
*Rates reflect purchase yield to maturity.
**The repurchase agreement, dated 4/30/96, $3,899 due 5/1/96, is collateralized
by $4,000 Federal Farm Credit Note, 6.640%, 5/18/98.
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
THE THE CRABBE HUSON
THE CRABBE CRABBE HUSON CRABBE HUSON THE CRABBE REAL ESTATE
HUSON SPECIAL SMALL CAP ASSET ALLOCATION HUSON EQUITY INVESTMENT
FUND, INC. FUND FUND, INC. FUND, INC. FUND, INC.
--------------- --------------- ----------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment securities, at market (Note 6) $ 714,197,407 $ 5,937,118 $ 147,650,034 $488,743,329 $ 16,773,075
Cash 7,202 275,474 1,332,715 1,405,102 4,179
Deposits with brokers for securities sold short 100,785,425 -- -- -- --
Receivables:
Dividends and Interest 340,266 275 683,356 161,636 30,928
Fund shares sold 906,814 78,705 147,162 1,446,609 30,045
Investment securities sold 1,022,592 -- 514,173 1,905,624 239,392
Proceeds from securities sold short 70,381,440 -- -- -- --
Organization expenses (Note 1) 89,941 107,131 15,474 44,889 83,715
Prepaid Expenses 32,921 97 6,437 16,148 900
--------------- --------------- ----------------- -------------- --------------
$ 887,764,008 $ 6,398,800 $ 150,349,351 $ 493,723,337 $ 17,162,234
--------------- --------------- ----------------- -------------- --------------
LIABILITIES:
Securities sold short, at market
(proceeds $70,381,440) 99,253,638 -- -- -- --
Payables:
Investment securities payable 6,407,206 -- 922,320 1,956,329 --
Fund shares redeemed 4,121,176 -- 196,420 613,548 13,176
Payable to affiliates and directors (Note 2) 6,803 279 1,909 3,733 417
Income dividend -- -- 87,363 -- 64,993
Accrued liabilities 486,697 108,390 56,588 141,123 1,793
--------------- --------------- ----------------- -------------- --------------
110,275,520 108,669 1,264,600 2,714,733 80,379
--------------- --------------- ----------------- -------------- --------------
NET ASSETS: $ 777,488,488 $ 6,290,131 $ 149,084,751 $ 491,008,604 $17,081,855
--------------- --------------- ----------------- -------------- --------------
--------------- --------------- ----------------- -------------- --------------
NET ASSETS CONSIST OF:
Capital shares 53,160 568 11,225 25,142 1,640
Capital paid in 725,718,242 5,776,865 36,386,044 419,956,606 16,172,432
Undistributed accumulated net investment income 2,135,669 6,345 16,834 556,336 236,054
Undistributed accumulated net
realized gain (loss) on investments 48,751,512 38,362 5,528,220 23,722,707 (337,804)
Net unrealized appreciation (depreciation)
on investments and short sales (Note 6) 829,905 467,991 7,142,428 46,747,813 1,009,533
--------------- --------------- ----------------- -------------- --------------
$ 777,488,488 $ 6,290,131 $ 149,084,751 $ 491,008,604 $ 17,081,855
--------------- --------------- ----------------- -------------- --------------
--------------- --------------- ----------------- -------------- --------------
CAPITAL SHARES, PAR VALUE $.001
Authorized 100,000,000 1,000,000,000 100,000,000 100,000,000 1,000,000,000
Outstanding (Note 5) 53,160,298 568,155 11,225,021 25,141,606 1,640,148
--------------- --------------- ----------------- -------------- --------------
--------------- --------------- ----------------- -------------- --------------
NET ASSET VALUE PER SHARE $ 14.63 $ 11.07 $ 13.28 $ 19.53 $ 10.41
--------------- --------------- ----------------- -------------- --------------
--------------- --------------- ----------------- -------------- --------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
THE CRABBE HUSON
THE OREGON THE CRABBE THE CRABBE HUSON U.S. GOVERNMENT
MUNICIPAL BOND HUSON INCOME U.S. GOVERNMENT MONEY MARKET
FUND, INC. FUND, INC. INCOME FUND, INC. FUND, INC.
--------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities, at market (Note 6) $ 28,176,781 $ 5,836,762 $ 7,829,940 $ 41,694,899
Cash 150 402 -- 2,797
Receivables:
Dividends and Interest 476,273 65,350 93,752 --
Fund shares sold -- 13,999 176 908,146
Investment securities sold -- 2,113 -- --
Organization expenses 3,123 780 943 11,568
Prepaid Expenses 1,358 222 394 1,951
-------------- --------------- ----------------- ---------------
$ 28,657,685 $ 5,919,628 $ 7,925,205 $ 42,619,361
-------------- --------------- ----------------- ---------------
LIABILITIES:
Payables:
Investment securities payable 133,401 100,000 -- --
Fund shares redeemed 7,804 20,986 4,784 1,467,037
Payable to affiliates and directors (Note 2) 574 134 154 685
Income dividend 21,720 1,412 4,294 53,834
Accrued liabilities 18,761 12,245 9,300 36,730
-------------- --------------- ----------------- ---------------
182,260 134,777 18,532 1,558,286
-------------- --------------- ----------------- ---------------
NET ASSETS: $ 28,475,425 $ 5,784,851 $ 7,906,673 $ 41,061,075
-------------- --------------- ----------------- ---------------
-------------- --------------- ----------------- ---------------
NET ASSETS CONSIST OF:
Capital shares 2,298 580 750 41,060
Capital paid in 27,627,403 5,879,975 8,043,898 41,020,015
Undistributed accumulated net investment income -- 2,342 91 --
Undistributed accumulated net
realized gain (loss) on investments 61,182 (102,517) (29,722) --
Net unrealized appreciation (depreciation)
on investments and short sales (Note 6) 784,542 4,471 (108,344) --
-------------- --------------- ----------------- ---------------
$ 28,475,425 $ 5,784,851 $ 7,906,673 $ 41,061,075
-------------- --------------- ----------------- ---------------
-------------- --------------- ----------------- ---------------
CAPITAL SHARES, PAR VALUE $.001
Authorized 10,000,000 100,000,000 100,000,000 2,000,000,000
Outstanding (Note 5) 2,297,781 578,884 749,945 41,061,075
-------------- --------------- ----------------- ---------------
-------------- --------------- ----------------- ---------------
NET ASSET VALUE PER SHARE $ 12.39 $ 9.99 $ 10.54 $ 1.00
-------------- --------------- ----------------- ---------------
-------------- --------------- ----------------- ---------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
THE CRABBE CRABBE HUSON CRABBE HUSON THE CRABBE REAL ESTATE
HUSON SPECIAL SMALL CAP ASSET ALLOCATION HUSON EQUITY INVESTMENT
FUND, INC. FUND* FUND, INC. FUND, INC. FUND, INC.
------------- ------------ ---------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 6,634,552 $ 16,849 $ 2,083,796 $ 1,241,376 $ 17,907
Dividends (net of foreign taxes withheld of
$0; $0; $1,238; $20,378; and $0 respectively) 2,904,330 3,163 622,732 3,410,278 462,736
------------- ------------ ---------------- ------------ -----------
9,538,882 20,012 2,706,528 4,651,654 480,643
------------- ------------ ---------------- ------------ -----------
EXPENSES
Investment advisory fees (Note 2) 3,290,248 9,112 688,613 1,969,696 92,079
Transfer agent 570,330 2,910 71,032 164,291 14,318
Printing 133,744 264 15,633 37,351 2,438
Postage 105,547 481 16,210 32,279 2,527
Custody 153,602 2,707 31,589 71,629 5,827
Legal 40,449 121 5,428 16,961 749
Auditing 23,635 143 4,302 11,368 1,333
Insurance 13,716 43 1,921 5,993 239
Directors' fees 10,185 279 3,973 5,928 1,176
Registration fees 171,764 1,973 17,409 118,510 6,560
Amortization of organization expenses -- 1,319 -- -- 7,369
Miscellaneous 94,429 213 15,142 40,636 2,132
Distribution fees (Note 2) 1,080,864 2,278 180,595 557,384 23,020
Administration (Note 2) 146,554 582 21,479 65,240 2,779
Short sales dividends 22,649 -- -- -- --
------------- ------------ ---------------- ------------ -----------
5,857,716 22,425 1,073,326 3,097,266 162,546
Fees waived by investment advisor (Note 2) -- (7,506) -- -- (24,313)
Expenses reimbursed by investment advisor (Note 2) -- -- -- -- --
Fees paid indirectly (Note 2) (16,151) (1,252) (6,075) (27,477) (114)
------------- ------------ ---------------- ------------ -----------
NET EXPENSES 5,841,565 13,667 1,067,251 3,069,789 138,119
------------- ------------ ---------------- ------------ -----------
NET INVESTMENT INCOME 3,697,317 6,345 1,639,277 1,581,865 342,524
------------- ------------ ---------------- ------------ -----------
REALIZED AND UNREALIZED GAIN:
Net realized gain (loss) on investments 53,098,349 38,362 5,513,546 24,381,209 (332,627)
Net change in unrealized appreciation
or depreciation of investments and short sales 40,035,575 467,991 2,316,135 31,637,490 1,986,637
------------- ------------ ---------------- ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS 93,133,924 506,353 7,829,681 56,018,699 1,654,010
------------- ------------ ---------------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 96,831,241 $ 512,698 $ 9,468,958 $ 57,600,564 $1,996,534
------------- ------------ ---------------- ------------ -----------
------------- ------------ ---------------- ------------ -----------
</TABLE>
* For the period from February 20, 1996 (commencement of operations)
to April 30, 1996.
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF OPERATIONS (continued)
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
THE CRABBE HUSON
THE OREGON THE CRABBE THE CRABBE HUSON U.S. GOVERNMENT
MUNICIPAL BOND HUSON INCOME U.S. GOVERNMENT MONEY MARKET
FUND, INC. FUND, INC. INCOME FUND, INC. FUND, INC.
-------------- ------------ ---------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 748,555 $ 200,626 $ 221,433 $ 1,387,848
-------------- ------------ ---------------- ----------------
EXPENSES
Investment advisory fees (Note 2) 71,190 25,377 20,964 125,786
Transfer agent 14,466 14,073 13,119 42,591
Printing 3,189 2,165 2,165 7,928
Postage 4,382 2,007 2,007 11,231
Custody 8,815 4,907 4,553 14,558
Legal 1,158 589 609 2,520
Auditing 1,500 1,178 1,196 2,355
Insurance 472 226 230 931
Directors' fees 1,337 388 408 1,457
Registration fees 319 20,067 17,050 17,242
Miscellaneous 3,465 1,178 1,333 6,489
Distribution fees (Note 2) 35,595 8,459 10,482 62,893
Administration (Note 2) 4,749 1,807 1,942 9,527
-------------- ------------ ---------------- ----------------
150,637 82,421 76,058 305,508
Fees waived by investment advisor (Note 2) (11,106) (25,377) (20,964) (125,786)
Expenses reimbursed by investment advisor (Note 2) -- (29,870) (23,600) (3,471)
Fees paid indirectly (Note 2) -- (106) (48) (151)
-------------- ------------ ---------------- ----------------
NET EXPENSES 139,531 27,068 31,446 176,100
-------------- ------------ ---------------- ----------------
NET INVESTMENT INCOME 609,024 173,558 189,987 1,211,748
-------------- ------------ ---------------- ----------------
REALIZED AND UNREALIZED GAIN:
Net realized gain (loss) on investments 61,182 78,194 117,587 1,382
Net change in unrealized appreciation
or depreciation of investments and short sales (581,212) (218,839) (211,823) --
-------------- ------------ ---------------- ----------------
NET GAIN (LOSS) ON INVESTMENTS (520,030) (140,645) (94,236) 1,382
-------------- ------------ ---------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 88,994 $ 32,913 $ 95,751 $ 1,213,130
-------------- ------------ ---------------- ----------------
-------------- ------------ ---------------- ----------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
THE CRABBE HUSON CRABBE HUSON THE CRABBE HUSON
SPECIAL FUND, INC. SMALL CAP FUND ASSET ALLOCATION FUND, INC.
---------------------------------- -------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996* APRIL 30, 1996 OCTOBER 31, 1995
---------------------------------- --------------------------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 3,697,317 $ 13,282,908 $ 6,345 $ 1,639,277 $ 3,127,152
Net realized gain (loss)
on investments 53,098,349 31,170,355 38,362 5,513,546 11,435,123
Net change in unrealized
appreciation or depreciation
of investments and short
sales 40,035,575 (51,415,104) 467,991 2,316,135 20,021
--------------------------------- --------------------------------- ---------------- ----------------
Increase (decrease) in net
assets resulting from
operations 96,831,241 (6,961,841) 512,698 9,468,958 14,582,296
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (3,697,317) (1,107,597) -- (1,622,443) (3,090,031)
In excess of net investment
income (9,612,161) -- -- -- --
From net realized gain on
investments (36,164,306) (11,710,943) -- (5,513,546) (4,120,955)
In excess of net realized
gain on investments -- -- -- (5,924,875) --
CAPITAL SHARE TRANSACTIONS,
NET (Note 5) (148,428,803) 578,529,362 5,677,433 16,146,600 19,006,962
--------------------------------- --------------------------------- ---------------- ----------------
Total increase (decrease)
in net assets (101,071,346) 558,748,981 6,190,131 12,554,695 26,378,272
FUND NET ASSETS, BEGINNING
OF PERIOD 878,559,834 319,810,853 100,000 136,530,057 110,151,785
--------------------------------- --------------------------------- ---------------- ----------------
FUND NET ASSETS, END OF
PERIOD $777,488,488 $878,559,834 $6,290,131 $ 149,084,752 $ 136,530,057
--------------------------------- --------------------------------- ---------------- ----------------
--------------------------------- --------------------------------- ---------------- ----------------
THE CRABBE HUSON THE CRABBE HUSON
EQUITY FUND, INC. ESTATE INVESTMENT FUND, INC.
---------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
-----------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 1,581,865 $ 3,567,282 $ 342,524 $ 874,136
Net realized gain (loss)
on investments 24,381,209 19,596,449 (332,627) 51,165
Net change in unrealized
appreciation or
depreciation of investments 31,637,490 9,278,013 1,986,637 565,011
---------------------------------- ---------------------------------
Increase (decrease) in net
assets resulting from
operations 57,600,564 32,441,744 1,996,534 1,490,312
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,581,865) (1,413,080) (360,448) (862,995)
In excess of net investment
income (2,110,214) -- -- --
From net realized gain
on investments (20,585,296) (2,376,723) (238,357) (240,802)
In excess of net realized
gain on investments -- -- -- --
CAPITAL SHARE TRANSACTIONS,
NET (Note 5) 70,501,335 205,426,843 (3,301,388) 319,499
---------------------------------- ---------------------------------
Total increase (decrease)
in net assets 103,824,524 234,078,784 (1,903,659) 706,014
FUND NET ASSETS,
BEGINNING OF PERIOD 387,184,080 153,105,296 18,985,514 18,279,500
---------------------------------- ---------------------------------
FUND NET ASSETS,
END OF PERIOD $491,008,604 $387,184,080 $17,081,855 $18,985,514
---------------------------------- ---------------------------------
---------------------------------- ---------------------------------
* For the period from February 20, 1996
(commencement of operations) to April 30, 1996.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
THE OREGON THE CRABBE HUSON THE CRABBE HUSON U.S.
MUNICIPAL BOND FUND, INC. INCOME FUND, INC. GOVERNMENT INCOME FUND, INC.
--------------------------------- ----------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
---------------------------------- ----------------------------------- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 609,024 $ 1,192,507 $ 173,558 $ 357,527 $ 189,987 $ 422,501
Net realized gain (loss)
on investments 61,182 3,019 78,194 108,710 117,587 7,624
Net change in unrealized
appreciation or depreciation
of investments (581,212) 1,454,370 (218,839) 304,184 (211,823) 324,469
----------------------------- ------------------------------ --------------------------
Increase (decrease) in net
assets resulting from
operations 88,994 2,649,896 32,913 770,421 95,751 754,594
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (609,024) (1,192,507) (171,216) (357,527) (189,987) (422,501)
In excess of net investment
income -- -- -- (17,066) (599) (9,331)
From net realized gain on
investments (3,019) (151,835) -- -- -- --
In excess of net realized
gain on investments -- -- -- -- -- --
CAPITAL SHARE TRANSACTIONS,
NET (Note 5) 928,103 (2,280,911) (1,266,971) 1,520,890 (424,691) (1,145,775)
----------------------------- ----------------------------- ---------------------------
Total increase (decrease)
in net assets 405,054 (975,357) (1,405,274) 1,916,718 (519,526) (823,013)
FUND NET ASSETS, BEGINNING
OF PERIOD $28,070,371 29,045,728 7,190,125 5,273,407 8,426,199 9,249,212
----------------------------- ------------------------------ --------------------------
FUND NET ASSETS,
END OF PERIOD $28,475,425 $28,070,371 $ 5,784,851 $7,190,125 $7,906,673 $8,426,199
----------------------------- ------------------------------ ---------------------------
----------------------------- ------------------------------ ---------------------------
THE CRABBE HUSON U.S. GOVERNMENT
MONEY MARKET FUND, INC.
---------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 1,211,748 $ 2,635,831
Net realized gain (loss)
on investments 1,382 --
Net change in unrealized
appreciation or
depreciation of investments -- --
---------------------------------------
Increase (decrease) in net
assets resulting from
operations 1,213,130 2,635,831
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,211,748) (2,635,831)
In excess of net investment
income -- --
From net realized gain on
investments (1,382) --
In excess of net realized
gain on investments -- --
CAPITAL SHARE TRANSACTIONS,
NET (Note 5) (13,653,144) 22,331,667
---------------------------------------
Total increase (decrease)
in net assets (13,653,144) 22,331,667
FUND NET ASSETS, BEGINNING
OF PERIOD 54,714,219 32,382,552
---------------------------------------
FUND NET ASSETS, END
OF PERIOD $ 41,061,075 $54,714,219
---------------------------------------
---------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
THIS PAGE IS LEFT BLANK INTENTIONALLY.
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
April 30, 1996
(Unaudited)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION: The Oregon Municipal Bond Fund,
Inc. is registered under the Investment Company
Act of 1940, as amended, as an open-end non-
diversified investment company. The Crabbe
Huson Special Fund, Inc., Crabbe Huson Small Cap
Fund, The Crabbe Huson Asset Allocation Fund,
Inc., The Crabbe Huson Equity Fund, Inc., The
Crabbe Huson Income Fund, Inc., The Crabbe Huson
U.S. Government Income Fund, Inc., The Crabbe
Huson U.S. Government Money Market Fund, Inc.
and The Crabbe Huson Real Estate Investment
Fund, Inc. are registered under the Investment
Company Act of 1940, as amended, as open-end
diversified investment companies.
The following is a summary of significant
accounting policies consistently followed by the
Funds in preparation of financial statements.
SECURITY VALUATION--THE CRABBE HUSON U.S.
GOVERNMENT MONEY MARKET FUND, INC.: The Fund
seeks to maintain a constant net asset value of
$1.00 and values its assets using the amortized
cost method by adjusting the cost of each
security for accretion of discount or
amortization of premium.
SECURITY VALUATION--OTHER FUNDS: Securities
listed or traded on a registered securities
exchange are valued at the last price on the
date of the computation. This includes over-the-
counter securities for which last sale
information is available. Where last sale
information is not available, the best bid price
is used. Securities and assets for which market
quotations are not readily available are valued
at fair market value as determined in good faith
by or under the direction of the Board of
Directors of the Funds. Cash equivalents
relating to Firm Commitment Purchase Agreements
are segregated by the custodian and may not be
sold while the current commitment is
outstanding.
SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are accounted for on the
trade date, the date the order to buy or sell is
executed. Interest income is recorded daily on
the accrual basis. Interest income consists of
interest accrued plus the accretion of original
issue discount and minus the amortization of
investment premium, both calculated on an
effective interest basis. Dividend income and
distributions to shareholders are recorded on
the ex-dividend date. Net realized gains and
losses on investments are computed on the first-
in, first-out, method.
DIVIDENDS AND DISTRIBUTIONS: The Oregon
Municipal Bond Fund, Inc. declares dividends
from its net investment income each business
day. The net investment income for Saturdays,
Sundays and holidays is declared as a dividend
on the next business day. Declared dividends
are accrued through the last business day of
each month and are distributed on that date.
Net capital gains realized by the Fund, if any,
are declared and distributed on an annual basis,
usually in December.
The Crabbe Huson Special Fund, Inc., Crabbe
Huson Small Cap Fund and The Crabbe Huson Equity
Fund, Inc. expect to declare and distribute to
shareholders, in December, substantially all of
the net investment income and net realized
capital gains, if any.
<PAGE>
Dividends and Distributions - (continued): The
Crabbe Huson Asset Allocation Fund, Inc.
dividends from net investment income on the last
business day of each fiscal quarter. Net
capital gains realized by the Funds, if any, are
declared and distributed on an annual basis,
usually in December.
The Crabbe Huson Income Fund, Inc. and The
Crabbe Huson U.S. Government Income Fund, Inc.
declare and distribute dividends from net
investment income on the last business day of
each month. Net capital gains realized by the
Funds, if any, are declared and distributed on
an annual basis, usually in December.
The Crabbe Huson U.S. Government Money Market
Fund, Inc. declares dividends from its net
investment income each business day. The net
investment income for Saturdays, Sundays and
holidays is declared as a dividend on the prior
business day. Declared dividends are accrued
through the last business day of each month and
are distributed on that date. Net capital gains
realized by the Fund, if any, are declared and
distributed on an annual basis, usually in
December.
Short Sales: The Crabbe Huson Special Fund,
Inc. during the period sold securities short.
Outstanding short sales at April 30, 1996 are
listed in the schedule of investments. A short
sale is effected when it is believed that the
price of a particular security will decline, and
involves the sale of a security which the Fund
does not own in the hope of purchasing the same
security at a later date at a lower price. To
make delivery to the buyer, the Fund must borrow
the security. The Fund is then obligated to
return the security to the lender, and therefore
it must subsequently purchase the same security.
When the Special Fund makes a short sale, it
must leave the proceeds from the short sale with
the broker, and it must deposit with the broker
a certain amount of cash or government
securities to collateralize its obligation to
replace the borrowed securities which have been
sold. In addition, the Fund must put in a
segregated account (with the Fund's custodian)
an amount of cash or U.S. Government securities
equal to the difference between the market value
of the securities sold short at the time they
were sold short and any cash or government
securities deposited as collateral with the
broker in connection with the short sale (not
including the proceeds from the short sale).
Furthermore, until the Fund replaces the
borrowed security, it must daily maintain the
segregated account at a level so that (1) the
amount deposited in it plus the amount deposited
with the broker (not including the proceeds from
the short sale) will equal the current market
value of the securities sold short, (2) the
amount deposited in it plus the amount deposited
with the broker (not including the proceeds from
the short sale) will not be less than the market
value of the securities at the time they were
sold short. As a result of these requirements,
the Special Fund will not gain any leverage
merely by selling short, except to the extent
that it earns interest on the immobilized cash
or government securities while also being
subject to the possibility of gain or loss from
the securities sold short. The amount of the
Special Fund's net assets that will at any time
be in the type of deposits described above (that
is, collateral deposits or segregated accounts)
will not exceed 25%.
<PAGE>
Options: The Special, Small Cap, Real Estate,
Equity, Asset Allocation and Income Funds may
write call options on securities they own or
have the right to acquire, and may purchase put
and call options on individual securities and
indexes written by others. The purchase of any
of these instruments can result in the entire
loss on the investment in that particular
instrument or, in the case of writing covered
options, can limit the opportunity to earn a
profit on the underlying security.
When an option is written (sold), an amount
equal to the premium received is recorded as a
liability. The amount of liability is adjusted
daily to reflect the current market value of the
option written. When an option written by the
Fund, expires on its stipulated expiration date,
the Fund realizes a gain equal to the net
premium received for the option. When the Fund
enters into a closing purchase transaction, the
Fund realizes a gain or loss equal to the
difference between the cost of a closing
purchase transaction and the premium received
when the call option was written. In the case
of either expiration of a written option or a
closing purchase transaction, the liability
related to such option is extinguished.
Call or put options purchased are accounted for
in the same manner as marketable portfolio
securities. When a call or put option is
exercised, the proceeds from the underlying
securities bought or sold are decreased by the
premium paid in determining the gain or loss.
Options on stock indexes differ from options on
securities in that the exercise of an option on
a stock index does not involve delivery of the
actual underlying security and are settled in
cash only.
During the period the Crabbe Huson Special Fund,
Inc. purchased put options. Outstanding put
options at April 30, 1996 are disclosed in the
schedule of investments.
Organization Costs: Expenses incurred in
connection with the original organization of the
Funds are amortized over a sixty-month period.
The amortization is calculated based upon the
projected growth in net assets of the Funds. As
of April 30, 1996 the initial organization costs
for all Funds except for Crabbe Huson Small Cap
Fund and The Crabbe Huson Real Estate Investment
Fund, Inc. have been fully amortized. Crabbe
Huson Small Cap Fund and The Crabbe Huson Real
Estate Investment Fund, Inc. have amortized
$1,319 and $7,369, respectively, through April
30, 1996. The Crabbe Huson Group, Inc., the
Fund's investment advisor, has agreed that, in
the event any of the initial shares are redeemed
during the 60-month period for amortizing the
Fund's organization costs, the Fund will be
reimbursed by the investment advisor for the
unamortized balances of such costs in the same
proportion as the number of shares reduced bears
to the number of initial shares outstanding at
the time of redemption.
Reorganization Costs: On February 27, 1996 at a
joint annual meeting of the shareholders of
record at the close of business on December 20,
1995, shareholders approved the reorganization
of all Funds except for The Crabbe Huson Special
Fund, Inc. into a single Delaware business trust
which will operate as a series company. Crabbe
Huson Small Cap Fund was initially organized as
a Delaware business trust and therefore was not
subject to the reorganization proposal.
<PAGE>
Reorganization Costs - (continued): All of the
expenses connected with the reorganization will
be paid by each of the respective series' of the
Trust and will be amortized over a one year
period commencing on the expected effective
Reorganization date in August, 1996.
Federal Income Taxes: It is each Fund's policy
to distribute substantially all of its taxable
income to shareholders and otherwise comply with
the provisions of the Internal Revenue Code
applicable to regulated investment companies.
Therefore, no provision has been made for
Federal income or excise taxes. Due to the
timing of dividend distributions and the
differences in accounting for income and
realized gains (losses) for financial statement
and federal income tax purposes, the fiscal year
in which amounts are distributed may differ from
the year in which the income and realized gains
(losses) are recorded by the funds. The
differences between the income or gains
distributed on a book versus tax basis are shown
as excess distributions of net investment income
and net realized gain on sales of investments in
the Statement of Changes in Net Assets.
Estimates: The preparation of financial
statements in conformity with generally accepted
accounting principles requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities and
income and expenses at the date of the financial
statements. Actual results could differ from
these estimates.
NOTE 2. INVESTMENT ADVISOR AND OTHER
TRANSACTIONS WITH AFFILIATES
Investment Advisor: The Funds have entered into
an investment advisory agreement with The Crabbe
Huson Group, Inc. (the "Advisor"), an affiliated
company. The investment advisory fee of each
Fund is accrued daily and paid semi-monthly.
The annual investment advisory fee for each Fund
is described below:
The Crabbe Huson Asset Allocation Fund, Inc.
The Crabbe Huson Special Fund, Inc.
Crabbe Huson Small Cap Fund
The Crabbe Huson Equity Fund, Inc.
The Crabbe Huson Real Estate Investment Fund,
Inc.
1.00% of daily net assets up to $100,000,000
.85 of 1% of daily net assets between
$100,000,000 and $500,000,000
.60 of 1% of daily net assets over $500,000,000
The Crabbe Huson Income Fund, Inc.
.75 of 1% of daily net assets up to $100,000,000
.60 of 1% of daily net assets between
$100,000,000 and $500,000,000
.50 of 1% of daily nets assets over $500,000,000
<PAGE>
The Crabbe Huson U.S. Government Income Fund,
Inc.
The Crabbe Huson U.S. Government Money Market
Fund, Inc.
The Oregon Municipal Bond Fund, Inc.
.50 of 1% of daily net assets up to $500,000,000
.45 of 1% of daily net assets between
$500,000,000 and $1,000,000,000
.40 of 1% of daily net assets over
$1,000,000,000
Effective February 1, 1996 the Advisor ceased to
voluntarily waive its management fee and/or
reimburse The Crabbe Huson Special Fund, Inc.,
The Crabbe Huson Asset Allocation Fund, Inc.,
and The Crabbe Huson Equity Fund, Inc., for the
amount, if any, by which the total operating and
management expenses of each Fund (including the
Advisor's compensation and any amounts paid
pursuant to the participating Funds' Rule 12b-1
plan but excluding interest, taxes, brokerage
fees and commissions, and extraordinary
expenses) exceeded certain annual rates applied
to the average daily net assets of each Fund.
The Advisor has voluntarily agreed to waive its
management fee and/or reimburse, for each Fund
listed below for the amount, if any, by which
the total operating and management expenses of
such Fund (including the Advisor's compensation
and any amounts paid pursuant to the
participating Funds' Rule 12b-1 plan but
excluding interest, taxes, brokerage fees and
commissions, and extraordinary expenses) exceeds
its respective annual rate applied to the
average daily net assets of each Fund as
follows:
The Oregon Municipal Bond Fund, Inc.0.98%
Crabbe Huson Small Cap Fund. 1.50%
The Crabbe Huson Income Fund, Inc. 0.80%
The Crabbe Huson U.S. Government Income Fund,
Inc. 0.75%
The Crabbe Huson U.S. Government Money Market
Fund, Inc. 0.70%
The Crabbe Huson Real Estate Investment Fund,
Inc. 1.50%
Effective August 1, 1996, the Advisor will
change the way it reimburses the Fund's expenses
from an involuntary basis to a voluntary basis
by removing the annual expense limits of each
Fund. This will provide each of the Funds the
ability to reduce expenses through directed
brokerage agreements, securities lending and
other expense offset arrangements.
Distributor: The Funds have entered into a
distribution agreement with Crabbe Huson
Securities, Inc. (the "Distributor"), an
affiliated company. Under the Distribution
Plan, each of the participating Funds may pay up
to 1/4 of 1% of such Fund's average daily net
assets to the Distributor as reimbursement for
its actual expenses incurred in the distribution
and promotion of such Fund's shares.
Administrator: State Street Bank and Trust
Company (the "Administrator") serves as
administrator of the Funds. The Administrator
performs certain administrative services for the
Funds. The Funds pay the Administrator a fee at
the rate of 0.06% of the Fund's average net
assets up to $500 million, 0.03% of the next
$500 million, and 0.01% of those assets in
excess of $1 billion, plus certain out of pocket
costs.
<PAGE>
Directors/Trustees Fees: As of April 30, 1996,
fees payable to the disinterested
directors/trustees were $574, $6,803, $279,
$1,909, $3,733, $134, $154, $685 and $417 for
The Oregon Municipal Bond Fund, Inc., The Crabbe
Huson Special Fund, Inc., Crabbe Huson Small Cap
Fund, The Crabbe Huson Asset Allocation Fund,
Inc., The Crabbe Huson Equity Fund, Inc., The
Crabbe Huson Income Fund, Inc., The Crabbe Huson
U.S. Government Income Fund, Inc., The Crabbe
Huson U.S. Government Money Market Fund, Inc.
and The Crabbe Huson Real Estate Investment
Fund, Inc., respectively.
Fees Paid Indirectly: The Funds have entered
into a custodian, recordkeeping, and pricing
agreement with Investors Fiduciary Trust Company
("IFTC"). IFTC's fees for these services are
subject to reduction by credits earned by each
Fund, based on the cash balances of the Funds
held by IFTC as Custodian. As of April 30,
1996, credits earned were $0, $0, $1,252, $183,
$158, $106, $48, $151 and $114 for The Oregon
Municipal Bond Fund, Inc., The Crabbe Huson
Special Fund, Inc., Crabbe Huson Small Cap Fund,
The Crabbe Huson Asset Allocation Fund, Inc.,
The Crabbe Huson Equity Fund, Inc., The Crabbe
Huson Income Fund, Inc., The Crabbe Huson U.S.
Government Income Fund, Inc., The Crabbe Huson
U.S. Government Money Market Fund, Inc. and The
Crabbe Huson Real Estate Investment Fund, Inc.,
respectively.
The Crabbe Huson Special Fund, Inc., The Crabbe
Huson Asset Allocation Fund, Inc., The Crabbe
Huson Equity Fund, Inc., and The Crabbe Huson
Real Estate Investment Fund, Inc., have entered
into a directed brokerage agreement with State
Street Brokerage Services, Inc.("SSBSI"). Under
this arrangement, SSBSI will pay the Funds a
percentage of commissions generated as credits,
and used to offset all or a portion of certain
outside service providers fees incurred by the
Funds. For the period ended April 30, 1996
credits earned of $16,151, $5,891, $27,319 and
$0 for The Crabbe Huson Special Fund, Inc., The
Crabbe Huson Asset Allocation Fund, Inc., The
Crabbe Huson Equity Fund, Inc. and The Crabbe
Huson Real Estate Investment Fund, Inc.,
respectively, were used to offset transfer
agency fees.
<PAGE>
NOTE 3. DISTRIBUTIONS TO SHAREHOLDERS
On December 6, 1995 the following distributions
were declared from net realized capital gains
from investment transactions. The dividend was
paid on December 6, 1995, to shareholders of
record on December 5, 1995, as shown below:
PER SHARE DOLLARS
Short-TermLong-TermShort-term
Long-Term
Capital GainCapital GainCapital
Gain Capital Gain
Distribution (1)Distribution
Distribution (1) Distribution
The Oregon Municipal Bond Fund, Inc.
The Crabbe Huson Special Fund, Inc.0.37640.1983
$23,686,427 $12,479,000
Crabbe Huson Small Cap Fund (2)
The Crabbe Huson Asset Allocation
Fund, Inc. 0.5232 0.60465,306,597
6,131,818
The Crabbe Huson Equity Fund, Inc.0.60380.3385
13,191,040 7,394,039
The Crabbe Huson Income Fund, Inc.
The Crabbe Huson U.S. Government
Income Fund, Inc.
The Crabbe Huson Real Estate
Investment Fund, Inc. 0.1225 238,364
(1) Short-term capital gains are taxable to
shareholders as ordinary income dividends.
(2) Investment operations did not commence until
February 20, 1996.
NOTE 4. AGREEMENT AND PLAN OF REORGANIZATION
On February 27, 1996 at a joint annual meeting
of the shareholders of record at the close of
business on December 20, 1995, of all Funds
except for The Crabbe Huson Special Fund, Inc.,
shareholders approved an Agreement and Plan of
Reorganization and Liquidation (the
"Reorganization") in which each Fund would
become a separate series of the Crabbe Huson
Funds, a business trust organized under the laws
of the State of Delaware (the "Trust"). Crabbe
Huson Small Cap Fund was originally organized as
a series of the Delaware business trust, and was
not subject to the reorganization proposal. The
Crabbe Huson Special Fund, Inc. did not have the
required percentage of outstanding shares voted
to approve the reorganization. The Crabbe Huson
Special Fund, Inc. will remain an Oregon
corporation. The Agreement provided, among
other things, for the transfer of the assets and
liabilities of each Fund to a corresponding
series of the Trust. The Agreement provided
that in consideration thereof, the shareholders
of each Fund would receive an equal amount of
shares in the corresponding series of the Trust
in exchange for their shares of each Fund, which
would subsequently be liquidated and dissolved.
It is currently contemplated that the
Reorganization will become effective in August,
1996.
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1996
(Unaudited)
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in capital shares of the Funds were as follows:
<TABLE>
<CAPTION>
THE CRABBE HUSON CRABBE HUSON
SPECIAL FUND, INC. SMALL CAP FUND
---------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, APRIL 30,
1996 1995 1996 1995 1996* 1996*
---------- ---------- ------------ ------------ ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 12,158,476 65,374,197 $171,600,423 $928,135,711 558,500 $5,681,055
Shares issued in
reinvestment of dividends 3,307,900 78,213 45,474,908 1,030,774 0 0
---------- ---------- ------------ ------------ ------- ----------
15,466,376 65,452,410 217,075,331 929,166,485 558,500 5,681,055
Shares redeemed (25,976,262) (24,491,886) (365,504,134) (350,637,123) (345) (3,622)
---------- ---------- ------------ ------------ ------- ----------
Net increase (decrease) (10,509,886) 40,960,524 ($148,428,803) $578,529,362 558,155 $5,677,433
---------- ---------- ------------ ------------ ------- ----------
---------- ---------- ------------ ------------ ------- ----------
</TABLE>
<TABLE>
<CAPTION>
THE CRABBE HUSON THE CRABBE HUSON
ASSET ALLOCATION FUND, INC. EQUITY FUND, INC.
--------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 2,144,118 3,651,020 $28,461,808 $47,567,984 7,418,395 16,135,368 $137,761,438 $277,119,565
Shares issued in
reinvestment of
dividends 872,294 213,856 11,523,225 2,807,183 1,173,779 79,947 21,649,718 1,237,639
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
3,016,412 3,864,876 39,985,033 50,375,167 8,592,174 16,215,315 159,411,156 278,357,204
Shares redeemed (1,801,516) (2,415,859) (23,838,433) (31,368,205) (4,759,759) (4,218,957) (88,909,821) (72,930,361)
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
Net increase
(decrease) 1,214,896 1,449,017 $16,146,600 $19,006,962 3,832,415 11,996,358 $ 70,501,335 $205,426,843
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
</TABLE>
*For the period from February 20, 1996 (commencement of operations) to
April 30, 1996.
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1996
(Unaudited)
NOTE 5. CAPITAL SHARE TRANSACTIONS (continued)
Transactions in capital shares of the Funds were as follows:
<TABLE>
<CAPTION>
THE OREGON THE CRABBE HUSON
MUNICIPAL BOND FUND, INC. INCOME FUND, INC.
--------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 199,324 552,364 $2,523,909 $6,744,052 133,231 398,837 $1,372,352 $3,890,790
Shares issued in
reinvestment of
dividends 38,169 73,838 482,312 906,976 14,612 33,473 150,621 329,268
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
237,493 626,202 3,006,221 7,651,028 147,843 432,310 1,522,973 4,220,058
Shares redeemed (164,722) (822,850) (2,078,118) (9,931,939) (269,851) (274,572) (2,789,944) (2,699,168)
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
Net increase (decrease) 72,771 (196,648) $ 928,103 ($2,280,911) (122,008) 157,738 ($1,266,971) $1,520,890
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
--------- --------- ----------- ----------- --------- ---------- ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
THE CRABBE HUSON THE CRABBE HUSON
U.S. GOVERNMENT INCOME FUND, INC. U.S. GOVERNMENT MONEY MARKET FUND, INC.
--------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 1996 1995 1996 1995 1996 1995
--------- -------- ---------- ----------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 73,033 320,552 $784,163 $3,315,281 60,798,145 166,147,604 $60,798,146 $166,147,604
Shares issued in
reinvestment of
dividends 14,783 33,757 158,433 351,187 803,207 1,738,682 803,207 1,738,682
--------- -------- ---------- ----------- ---------- ----------- ------------ ------------
87,816 354,309 942,596 3,666,468 61,601,352 167,886,286 61,601,353 167,886,286
Shares redeemed (128,241) (464,645) (1,367,287) (4,812,243) (75,254,496) (145,554,619) (75,254,497) (145,554,619)
--------- -------- ---------- ----------- ---------- ----------- ------------ ------------
Net increase (decrease) (40,425) (110,336) ($424,691) ($1,145,775) (13,653,144) 22,331,667 ($13,653,144) $ 22,331,667
--------- -------- ---------- ----------- ---------- ----------- ------------ ------------
--------- -------- ---------- ----------- ---------- ----------- ------------ ------------
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1996
(Unaudited)
NOTE 5. CAPITAL SHARE TRANSACTIONS (continued)
Transactions in capital shares of the Funds were as follows:
<TABLE>
<CAPTION>
THE CRABBE HUSON REAL
ESTATE INVESTMENT FUND, INC.
-------------------------------------------------
SHARES AMOUNT
-------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 1996 1995
-------- ------- ---------- ----------
<S> <C> <C> <C> <C>
Shares sold 341,038 821,200 $3,484,363 $7,937,889
Shares issued in
reinvestment of dividends 30,284 36,962 302,147 357,391
-------- ------- ---------- ----------
371,322 858,162 3,786,510 8,295,280
Shares redeemed (691,105) (822,760) (7,087,898) (7,975,781)
-------- ------- ---------- ----------
Net increase (decrease) (319,783) 35,402 ($3,301,388) $ 319,499
-------- ------- ---------- ----------
-------- ------- ---------- ----------
</TABLE>
<PAGE>
THIS PAGE IS LEFT BLANK INTENTIONALLY.
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1996
(Unaudited)
NOTE 6. INVESTMENT TRANSACTIONS
For the period ended April 30, 1996, The Crabbe Huson U.S. Government Money
Market Fund, Inc. had aggregate security purchases and sales (including
maturities) of $126,198,604 and $140,386,021, respectively, with an
identified cost of $41,694,899 at April 30, 1996. Aggregate purchases, sales
and maturities for the period ended April 30, 1996 (excluding short-term
securities) for the remaining Funds, are as follows:
<TABLE>
<CAPTION>
THE CRABBE THE CRABBE
THE CRABBE HUSON ASSET THE CRABBE HUSON REAL
HUSON SPECIAL CRABBE HUSON ALLOCATION HUSON EQUITY ESTATE INVESTMENT
FUND, INC. SMALL CAP FUND FUND, INC. FUND, INC. FUND, INC.
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases: $171,783,069 $4,749,244 $214,737,892 $245,345,245 $ 8,538,608
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Sales and Maturities: 274,116,949 1,012,947 213,573,257 189,040,789 13,257,943
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Identified Cost and Gross Unrealized Appreciation (Depreciation) at April 30, 1996:
Identified Cost $684,495,304 $5,469,127 $140,507,606 $441,995,516 $15,763,542
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Appreciation 99,673,226 529,638 9,506,297 52,078,913 1,618,041
Depreciation (98,843,321) (61,647) (2,363,869) (5,331,100) (608,508)
-----------------------------------------------------------------------------
Net unrealized
appreciation (depreciation) $ 829,905 $ 467,991 $ 7,142,428 $ 46,747,813 $ 1,009,533
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THE CRABBE
THE OREGON HUSON THE CRABBE HUSON
MUNICIPAL BOND INCOME U.S. GOVERNMENT
FUND, INC. FUND, INC. INCOME FUND, INC.
------------------------------------------------
<S> <C> <C> <C>
Purchases: $ 3,280,647 $22,745,309 $16,432,396
------------------------------------------------
------------------------------------------------
Sales and Maturities: 2,333,637 23,827,417 16,872,361
------------------------------------------------
------------------------------------------------
Identified Cost and Gross Unrealized Appreciation (Depreciation) at April 30, 1996:
Identified Cost $ 27,392,239 $ 5,832,291 $ 7,938,284
------------------------------------------------
------------------------------------------------
Appreciation 950,734 83,387 34,415
Depreciation (166,192) (78,916) (142,759)
------------------------------------------------
Net unrealized
appreciation (depreciation) $ 784,542 $ 4,471 ($ 108,344)
------------------------------------------------
------------------------------------------------
</TABLE>
<PAGE>
THE OREGON MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Annual Report.
The calculations are based on average number of shares outstanding for each
period.
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93 10/31/92 10/31/91
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.62 $11.99 $12.80 $12.20 $12.14 $11.74
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.2688 0.5480 0.5418 0.5683 0.6168 0.6385
Net Realized & Unrealized
Gain (Loss) on Securities (0.2287) 0.6998 (0.8001) 0.6880 0.1521 0.4831
--------------------------------------------------------------------------
Total from Investment Operations 0.0401 1.2478 (0.2583) 1.2563 0.7689 1.1216
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.2688 0.5480 0.5419 0.5647 0.6168 0.6562
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0003 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.0013 0.0698 0.0090 0.0916 0.0921 0.0654
--------------------------------------------------------------------------
Total Distributions 0.2701 0.0698 0.0093 0.0916 0.7089 0.7216
--------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.39 $12.62 $11.99 $12.80 $12.20 $12.14
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL RETURN 0.29% 10.66% -2.06% 10.71% 6.51% 9.85%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $28,475 $28,070 $29,046 $29,408 $20,296 $18,383
Ratio of Expenses to Average Net Assets 0.98%(c)(d) 0.98% 0.98% 1.05% 1.11% 1.21%
Ratio of Net Investment Income to Average Net Assets 4.28%(c)(d) 4.45% 4.37% 4.51% 5.04% 5.36%
Portfolio Turnover Rate 8.28% 22.91% 20.58% 11.62% 25.30% 53.40%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.06%(c)(d) 1.08% 1.08% 1.09% 1.13% 1.24%
Ratio of Net Investment Income to Average Net Assets 4.20%(c)(d) 4.35% 4.26% 4.46% 5.01% 5.34%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 0.98%(d) -- -- -- -- --
Ratio of Net Investment Income to Average Net Assets 4.28%(d) -- -- -- -- --
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/90 10/31/89 10/31/88 10/31/87(a) 9/30/87 9/30/86
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.72 $11.72 $11.08 $12.15 $11.93 $10.43
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.6316 0.6794 0.6386 0.7311 0.7319 0.7720
Net Realized & Unrealized
Gain (Loss) on Securities 0.0522 0.0842 0.6411 (0.9983) (0.8051) 1.5265
---------------------------------------------------------------------------
Total from Investment Operations 0.6838 0.7636 1.2797 (0.2672) (0.0732) 2.2985
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.6401 0.6711 0.6386 0.7311 0.7319 0.7720
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.0237 0.0925 0.0000 0.0760 0.0760 0.0255
---------------------------------------------------------------------------
Total Distributions 0.6638 0.7636 0.6386 0.8071 0.8079 0.7975
---------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.74 $11.72 $11.72 $11.08 $11.05 $11.93
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TOTAL RETURN 6.00% 6.67% 12.02% -1.95% -0.95% 22.83%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $18,766 $19,173 $20,058 $14,277 $14,165 $8,861
Ratio of Expenses to Average Net Assets 1.38% 1.04% 1.21% 1.14% 1.31% 1.06%
Ratio of Net Investment Income to Average Net Assets 5.41% 5.82% 5.53% 5.66% 6.43% 6.34%
Portfolio Turnover Rate 58.52% 45.25% 31.44% 19.18% 18.73% 24.20%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.55% 1.16% 1.32% -- -- --
Ratio of Net Investment Income to Average Net Assets 5.23% 5.71% 5.42% -- -- --
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- -- -- --
</TABLE>
- ------------------------------------
(a) The Fund's Fiscal Year was changed from 9/30 to 10/31, effective 10/31/87,
which represents a conformed 12 month period.
(b) Disclosure of the average commission rate paid relates to the purchase and
sale of investment securities and is required for Funds that invest greater than
10% of average net assets in equity transactions. This disclosure is required
for fiscal periods beginning on or after September 1, 1995.
(c) Ratios include expenses paid indirectly through directed brokerage & certain
expense offset arrangements.
(d) Computed on an annualized basis.
(e) Commencement of operations - 4/9/87.
(f) Commencement of operations - 1/31/89.
(g) Commencement of operations - 4/4/94.
(h) Commencement of operations - 2/20/96.
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93 10/31/92 10/31/91
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.80 $14.08 $11.82 $ 8.36 $12.05 $8.78
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0611 0.2704 0.0513 (0.0774) (0.0211) 0.0353
Net Realized & Unrealized
Gain (Loss) on Securities 1.5866 (0.2894) 2.3026 3.5374 (1.6211) 4.0155
---------------------------------------------------------------------
Total from Investment Operations 1.6477 (0.0190) 2.3539 3.4600 (1.6422) 4.0508
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0611 0.0226 0.0000 0.0000 0.0260 0.1453
Distributions in Excess of Net Investment Income 0.1589 0.0000 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.5977 0.2384 0.0892 0.0000 2.0218 0.6355
---------------------------------------------------------------------
Total Distributions 0.8177 0.2610 0.0892 0.0000 2.0478 0.7808
Net Asset Value, End of Period $14.63 $13.80 $14.08 $11.82 $ 8.36 $12.05
---------------------------------------------------------------------
---------------------------------------------------------------------
Total Return 12.08% 1.78% 22.40% 41.39% 8.11% 49.58%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $777,488 $878,560 $319,811 $238,167 $5,857 $3,542
Ratio of Expenses to Average Net Assets 1.35% (c)(d) 1.40% 1.44% 1.57% 1.74% 1.92%
Ratio of Net Investment Income to Average Net Assets 0.85% (c)(d) 1.95% 0.39% (0.73)% (0.25)% 0.32%
Portfolio Turnover Rate 24.53% 122.97% 146.44% 73.29% 102.27% 256.68%
Average Commission Rate $0.0367 (b) -- -- -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.35% (c)(d) 1.40% 1.54% 1.59% 2.18% 2.40%
Ratio of Net Investment Income to Average Net Assets 0.85% (c)(d) 1.95% 0.29% (0.75)% (0.69)% (0.15)%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 1.35% (d) -- -- -- -- --
Ratio of Net Investment Income to Average Net Assets 0.86% (d) -- -- -- -- --
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/90 10/31/89 10/31/88 10/31/87(e)
------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.49 $9.69 $8.13 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.1546 0.2100 (0.0515) (0.0409)
Net Realized & Unrealized
Gain (Loss) on Securities (1.4317) 1.5900 1.6115 (1.8300)
------------------------------------------------------
Total from Investment Operations (1.2771) 1.8000 1.5600 (1.8709)
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.2240 0.0000 0.0000 0.0000
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 1.2089 0.0000 0.0000 0.0000
------------------------------------------------------
Total Distributions 1.4329 0.0000 0.0000 0.0000
------------------------------------------------------
Net Asset Value, End of Period $8.78 $11.49 $9.69 $8.13
------------------------------------------------------
------------------------------------------------------
Total Return (10.90)% 18.68% 19.63% (30.32)% (d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $2,926 $3,356 $4,393 $1,892
Ratio of Expenses to Average Net Assets 2.00% 2.00% 3.94% 2.60% (d)
Ratio of Net Investment Income to Average Net Assets 1.55% 1.96% 3.34% 0.05% (d)
Portfolio Turnover Rate 314.73% 275.62% 155.12% 3.90%
Average Commission Rate -- -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 2.86% 2.44% (d) -- --
Ratio of Net Investment Income to Average Net Assets 0.70% 1.53% (d) -- --
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON ASSET ALLOCATION FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93 10/31/92
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.64 $12.87 $13.52 $11.68 $11.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.1498 0.3361 0.2990 0.2323 0.3468
Net Realized & Unrealized
Gain (Loss) on Securities 0.6839 1.2090 (0.0817) 2.0889 0.8175
-----------------------------------------------------------------
Total from Investment Operations 0.8337 1.5451 0.2173 2.3212 1.1643
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.1483 0.3321 0.2879 0.2373 0.3463
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.5039 0.4430 0.5829 0.2439 0.1380
Distributions in excess of Capital Gains 0.5415 0.0000 0.0000 0.0000 0.0000
-----------------------------------------------------------------
Total Distributions 1.1937 0.7751 0.8708 0.4812 0.4843
-----------------------------------------------------------------
Net Asset Value, End of Period $13.28 $13.64 $12.87 $13.52 $11.68
-----------------------------------------------------------------
-----------------------------------------------------------------
Total Return 6.85% 13.00% 2.66% 20.93% 11.25%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $149,085 $136,530 $110,152 $85,390 $55,099
Ratio of Expenses to Average Net Assets 1.49% (c)(d) 1.48% 1.44% 1.46% 1.52%
Ratio of Net Investment Income to Average Net Assets 2.26% (c)(d) 2.57% 2.30% 1.85% 3.02%
Portfolio Turnover Rate 157.62% 225.70% 149.19% 116.10% 155.26%
Average Commission Rate $0.0461 (b) -- -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.49% (c)(d) 1.49% 1.52% 1.54% 1.62%
Ratio of Net Investment Income to Average Net Assets 2.26% (c)(d) 2.56% 2.22% 1.77% 2.92%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 1.48% (d) -- -- -- --
Ratio of Net Investment Income to Average Net Assets 2.27% (d) -- -- -- --
<CAPTION>
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/91 10/31/90 10/31/89(f)
-------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $9.24 $10.69 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.4143 0.4561 0.3990
Net Realized & Unrealized
Gain (Loss) on Securities 1.8208 (1.1200) 0.2910
-------------------------------------------------
Total from Investment Operations 2.2351 (0.6639) 0.6900
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.4335 0.7159 0.0000
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.0415 0.0702 0.0000
Distributions in excess of Capital Gains 0.0000 0.0000 0.0000
-------------------------------------------------
Total Distributions 0.4750 0.7861 0.0000
-------------------------------------------------
Net Asset Value, End of Period $11.00 $9.24 $10.69
-------------------------------------------------
-------------------------------------------------
Total Return 24.55% -6.40% 9.30% (d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $23,893 $13,174 $12,578
Ratio of Expenses to Average Net Assets 1.76% 1.90% 1.91% (d)
Ratio of Net Investment Income to Average Net Assets 3.97% 4.51% 5.02% (d)
Portfolio Turnover Rate 157.89% 161.72% 88.14%
Average Commission Rate -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.79% 1.93% 1.93% (d)
Ratio of Net Investment Income to Average Net Assets 3.94% 4.49% 5.00% (d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93
------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $18.17 $16.44 $16.08 $13.03
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0656 0.2223 0.1900 0.0981
Net Realized & Unrealized
Gain (Loss) on Securities 2.3018 1.7438 0.5668 3.4476
------------------------------------------------------
Total from Investment Operations 2.3674 1.9661 0.7568 3.5457
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0656 0.0880 0.0344 0.1099
Distributions in Excess of Net Investment Income 0.0876 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.8542 0.1481 0.3638 0.3858
------------------------------------------------------
Total Distributions 1.0074 0.2361 0.3982 0.4957
------------------------------------------------------
Net Asset Value, End of Period $19.53 $18.17 $16.44 $16.08
------------------------------------------------------
------------------------------------------------------
Total Return 13.96% 13.37% 7.89% 29.90%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $491,009 $387,184 $153,105 $34,520
Ratio of Expenses to Average Net Assets 1.39% (c)(d) 1.40% 1.45% 1.49%
Ratio of Net Investment Income to Average Net Assets 0.70% (c)(d) 1.30% 1.18% 0.67%
Portfolio Turnover Rate 47.06% 92.43% 106.49% 114.38%
Average Commission Rate $0.0464 (b) -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.39% (c)(d) 1.40% 1.56% 1.64%
Ratio of Net Investment Income to Average Net Assets 0.70% (c)(d) 1.30% 1.06% 0.52%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 1.38% (d) -- -- --
Ratio of Net Investment Income to Average Net Assets 0.71% (d) -- -- --
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89(f)
----------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.57 $8.54 $10.50 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.1980 0.1861 0.2533 0.3146
Net Realized & Unrealized
Gain (Loss) on Securities 0.9186 4.1511 (1.6764) 0.1854
----------------------------------------------------------
Total from Investment Operations 1.1166 4.3372 (1.4231) 0.5000
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0937 0.3072 0.3918 0.0000
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.5629 0.0000 0.1451 0.0000
----------------------------------------------------------
Total Distributions 0.6566 0.3072 0.5369 0.0000
----------------------------------------------------------
Net Asset Value, End of Period $13.03 $12.57 $8.54 $10.50
----------------------------------------------------------
----------------------------------------------------------
Total Return 12.48% 52.44% -14.97% 6.72% (d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $13,429 $5,930 $2,944 $5,018
Ratio of Expenses to Average Net Assets 1.55% 1.84% 1.93% 1.69% (d)
Ratio of Net Investment Income to Average Net Assets 1.57% 1.60% 2.56% 3.98% (d)
Portfolio Turnover Rate 180.72% 171.82% 265.25% 90.54%
Average Commission Rate -- -- -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.93% 2.41% 2.66% 1.97% (d)
Ratio of Net Investment Income to Average Net Assets 1.18% 1.03% 1.83% 3.68% (d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93
------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.26 $9.71 $10.75 $10.90
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.2687 0.5329 0.4995 0.4637
Net Realized & Unrealized
Gain (Loss) on Securities (0.2736) 0.5754 (0.7669) 0.3265
------------------------------------------------------------
Total from Investment Operations (0.0049) 1.1083 (0.2674) 0.7902
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.2651 0.5329 0.4995 0.4879
Distributions in Excess of Net Investment Income 0.0000 0.0254 0.0080 0.0000
Distributions from Capital Gains 0.0000 0.0000 0.2710 0.4523
------------------------------------------------------------
Total Distributions 0.2651 0.5583 0.7785 0.9402
------------------------------------------------------------
Net Asset Value, End of Period $9.99 $10.26 $9.71 $10.75
------------------------------------------------------------
------------------------------------------------------------
Total Return -0.10% 11.92% -2.71% 7.73%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $5,785 $7,190 $5,273 $5,697
Ratio of Expenses to Average Net Assets 0.80% (c)(d) 0.80% 0.80% 0.81%
Ratio of Net Investment Income to Average Net Assets 5.13% (c)(d) 5.47% 4.92% 4.34%
Portfolio Turnover Rate 341.85% 543.15% 306.79% 260.22%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 2.44% (c)(d) 1.95% 2.16% 1.96%
Ratio of Net Investment Income to Average Net Assets 3.49% (c)(d) 4.32% 3.56% 3.19%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 0.80% (d) -- -- --
Ratio of Net Investment Income to Average Net Assets 5.13% (d) -- -- --
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89(f)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.63 $10.01 $10.27 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.6583 0.7038 0.6869 0.5545
Net Realized & Unrealized
Gain (Loss) on Securities 0.3569 0.6218 (0.2407) 0.2761
---------------------------------------------------------------
Total from Investment Operations 1.0152 1.3256 0.4462 0.8306
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.6588 0.7056 0.6840 0.5606
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.0864 0.0000 0.0222 0.0000
---------------------------------------------------------------
Total Distributions 0.7452 0.7056 0.7062 0.5606
---------------------------------------------------------------
Net Asset Value, End of Period $10.90 $10.63 $10.01 $10.27
---------------------------------------------------------------
---------------------------------------------------------------
Total Return 9.74% 13.51% 4.43% 10.43%(d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $5,634 $5,486 $2,123 $1,356
Ratio of Expenses to Average Net Assets 0.90% 0.98% 1.51% 1.15%(d)
Ratio of Net Investment Income to Average Net Assets 6.09% 6.82% 6.89% 7.23%(d)
Portfolio Turnover Rate 227.45% 115.76% 73.76% 86.60%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.94% 2.42% 3.07% 4.56%(d)
Ratio of Net Investment Income to Average Net Assets 5.06% 5.38% 5.33% 3.81%(d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON U.S. GOVERNMENT INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93
------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.66 $10.27 $11.04 $10.91
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.2462 0.5097 0.4648 0.4755
Net Realized & Unrealized
Gain (Loss) on Securities (0.1192) 0.4013 (0.6515) 0.2159
------------------------------------------------
Total from Investment Operations 0.1270 0.9110 (0.1867) 0.6914
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.2462 0.5097 0.4647 0.4848
Distributions in Excess of Net Investment Income 0.0008 0.0113 0.0035 0.0000
Distributions from Capital Gains 0.0000 0.0000 0.1120 0.0766
------------------------------------------------
Total Distributions 0.2470 0.5210 0.5802 0.5614
------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.54 $10.66 $10.27 $11.04
------------------------------------------------
------------------------------------------------
TOTAL RETURN 1.14% 9.12% -1.78% 6.71%(d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $7,907 $8,426 $9,249 $11,218
Ratio of Expenses to Average Net Assets 0.75% (c)(d) 0.75% 0.75% 0.75% (d)
Ratio of Net Investment Income to Average Net Assets 4.53% (c)(d) 4.85% 4.39% 4.33% (d)
Portfolio Turnover Rate 198.14% 230.43% 76.09% 81.74%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.81% (c)(d) 1.46% 1.47% 1.26%
Ratio of Net Investment Income to Average Net Assets 3.47% (c)(d) 4.14% 3.66% 3.81%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 0.75% (d) -- -- --
Ratio of Net Investment Income to Average Net Assets 4.53% (d) -- -- --
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89(f)
------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.69 $10.24 $10.28 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.5801 0.6722 0.6768 0.5637
Net Realized & Unrealized
Gain (Loss) on Securities 0.2921 0.4542 (0.0326) 0.2852
Total from Investment Operations 0.8722 1.1264 0.6442 0.8489
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.5839 0.6746 0.6736 0.5689
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.0683 0.0018 0.0106 0.0000
------------------------------------------------
Total Distributions 0.6522 0.6764 0.6842 0.5689
------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.91 $10.69 $10.24 $10.28
------------------------------------------------
------------------------------------------------
TOTAL RETURN 8.70% 11.17% 6.40% 11.15% (d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $8,959 $3,748 $2,069 $1,717
Ratio of Expenses to Average Net Assets 0.80% 0.96% 1.42% 1.14% (d)
Ratio of Net Investment Income to Average Net Assets 5.35% 6.44% 6.72% 7.35% (d)
Portfolio Turnover Rate 105.52% 114.81% 87.71% 40.42%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.52% 2.15% 2.84% 3.40% (d)
Ratio of Net Investment Income to Average Net Assets 4.63% 5.25% 5.31% 5.09% (d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON U.S. GOVERNMENT MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94 10/31/93
------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0240 0.0521 0.0339 0.0250
Net Realized & Unrealized
Gain (Loss) on Securities 0.0000 0.0000 0.0000 0.0000
------------------------------------------------
Total from Investment Operations 0.0240 0.0521 0.0339 0.0250
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0240 0.0521 0.0339 0.0250
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
------------------------------------------------
Total Distributions 0.0240 0.0521 0.0339 0.0250
------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
------------------------------------------------
------------------------------------------------
Total Return 2.41% 5.30% 3.28% 2.53%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $41,061 $54,714 $32,383 $14,784
Ratio of Expenses to Average Net Assets 0.70% (c)(d) 0.70% 0.70% 0.70%
Ratio of Net Investment Income to Average Net Assets 4.82% (c)(d) 5.21% 3.39% 2.51%
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.21% (c)(d) 1.16% 1.29% 1.32%
Ratio of Net Investment Income to Average Net Assets 4.30% (c)(d) 4.75% 2.81% 1.88%
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 0.70% (d) -- -- --
Ratio of Net Investment Income to Average Net Assets 4.82% (d) -- -- --
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89(f)
-------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0332 0.0576 0.0737 0.0633
Net Realized & Unrealized
Gain (Loss) on Securities 0.0000 0.0000 0.0000 0.0000
-------------------------------------------------
Total from Investment Operations 0.0332 0.0576 0.0737 0.0633
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0332 0.0576 0.0737 0.0633
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000 0.0000
-------------------------------------------------
Total Distributions 0.0332 0.0576 0.0737 0.0633
-------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
-------------------------------------------------
-------------------------------------------------
Total Return 3.36% 13.76% 7.62% 10.05% (d)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $12,395 $14,907 $21,406 $10,735
Ratio of Expenses to Average Net Assets 0.75% 0.81% 0.80% 0.60% (d)
Ratio of Net Investment Income to Average Net Assets 3.32% 5.76% 7.57% 8.43% (d)
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.09% 1.18% 1.33% 1.34% (d)
Ratio of Net Investment Income to Average Net Assets 2.98% 5.38% 7.04% 7.69% (d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets -- -- -- --
Ratio of Net Investment Income to Average Net Assets -- -- -- --
</TABLE>
<PAGE>
THE CRABBE HUSON REAL ESTATE INVESTMENT FUND, INC.
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD YEAR PERIOD
ENDED ENDED ENDED
4/30/96 10/31/95 10/31/94(g)
----------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.69 $9.50 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.1897 0.4436 0.3664
Net Realized & Unrealized
Gain (Loss) on Securities 0.8619 0.3065 (0.6394)
Total from Investment Operations 1.0516 0.7501 (0.2730)
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.1996 0.4379 0.2287
Distributions in Excess of Net Investment Income 0.0000 0.0000 0.0000
Distributions from Capital Gains 0.1320 0.1222 0.0000
Total Distributions 0.3316 0.5601 0.2287
Net Asset Value, End of Period $10.41 $9.69 $9.50
Total Return 10.93% 8.31% -3.25%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $17,082 $18,986 $18,280
Ratio of Expenses to Average Net Assets 1.50% (c)(d) 1.50% 1.01% (b)(d)
Ratio of Net Investment Income to Average Net Assets 3.72% (c)(d) 4.59% 6.30% (b)(d)
Portfolio Turnover Rate 50.07% 59.53% 43.30%
Average Commission Rate $0.0518 (b) -- --
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 1.77% (c)(d) 1.89% 2.03% (b)(d)
Ratio of Net Investment Income to Average Net Assets 3.45% (c)(d) 4.20% 5.28% (b)(d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 1.50% (d) -- --
Ratio of Net Investment Income to Average Net Assets 3.72% (d) -- --
</TABLE>
<PAGE>
CRABBE HUSON SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(Continued)
<TABLE>
<CAPTION>
(Unaudited)
PERIOD
ENDED
4/30/96(h)
----------
<S> <C>
Net Asset Value, Beginning of Period $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.0138
Net Realized & Unrealized
Gain (Loss) on Securities 1.0562
--------
Total from Investment Operations 1.0700
LESS DISTRIBUTIONS
Distributions from Net Investment Income 0.0000
Distributions in Excess of Net Investment Income 0.0000
Distributions from Capital Gains 0.0000
--------
Total Distributions 0.0000
Net Asset Value, End of Period $11.07
--------
--------
Total Return 10.70%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period $6,290
Ratio of Expenses to Average Net Assets 1.64% (c)(d)
Ratio of Net Investment Income to Average Net Assets 0.56% (c)(d)
Portfolio Turnover Rate 40.65%
Average Commission Rate $0.0369 (b)
RATIOS IF FEES HAD NOT BEEN WAIVED AND/OR REIMBURSED
Ratio of Expenses to Average Net Assets 2.46% (c)(d)
Ratio of Net Investment Income to Average Net Assets -0.26% (c)(d)
RATIOS NET OF EXPENSES PAID INDIRECTLY
Ratio of Expenses to Average Net Assets 1.50% (d)
Ratio of Net Investment Income to Average Net Assets 0.70% (d)
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
PROXY VOTING RESULTS
The following proposals were voted upon at a joint annual meeting of
shareholders on February 27, 1996, with results shown below for each respective
proposal.
PROPOSAL 1.
To approve or disapprove for each Fund a reorganization (the "Reorganization")
in which each Fund would become a separate series of the Crabbe Huson Funds, a
business trust organized under the laws of the state of Delaware (the "Trust"),
pursuant to an Agreement and Plan of Reorganization and Liquidation whereby: (i)
all of the assets and liabilities of each Fund will be transferred to a
corresponding series of the Trust; (ii) shareholders of each Fund will receive
an equal amount of shares in the corresponding series of the Trust in exchange
for the shares of the Fund; and (iii) each Fund will subsequently be liquidated
and dissolved. The Reorganization is contingent upon approval of Proposals 3, 4
and 5 by the shareholders of the relevant Funds.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
-------------- ------------- -------------
<S> <C> <C> <C>
The Oregon Municipal Bond Fund, Inc. 1,639,376.510 52,639.820 78,890.490
The Crabbe Huson Special Fund, Inc. 36,213,976.644 1,560,874.874 1,922,565.929
The Crabbe Huson Asset Allocation
Fund, Inc. 7,656,336.267 215,048.225 271,606.637
The Crabbe Huson Equity Fund, Inc. 15,614,286.884 471,674.048 616,208.445
The Crabbe Huson Income Fund, Inc. 513,477.910 56,710.950 13,164.320
The Crabbe Huson U.S. Government
Income Fund, Inc. 575,492.290 3,941.070 7,599.100
The Crabbe Huson U.S. Government
Money Market Fund, Inc. 38,537,210.420 358,839.800 1,806,243.690
The Crabbe Huson Real Estate
Investment Fund, Inc. 1,505,410.179 10,108.902 16,345.792
</TABLE>
PROPOSAL 2.
To elect a Board of Directors for each Fund for the ensuing year or portion
thereof consisting of eight Directors and to authorize each Fund, prior to the
effective time of the Reorganization, to vote its beneficial interest in the
Trust for the election of the same eight individuals to serve as Trustees of the
Trust.
<TABLE>
<CAPTION>
THE OREGON MUNICIPAL THE CRABBE HUSON
BOND FUND, INC. SPECIAL FUND, INC.
------------------------------ -------------------------------
FOR WITHHOLD FOR WITHHOLD
------------- ---------- -------------- -------------
<S> <C> <C> <C> <C>
Gary L. Capps 1,808,215.996 28,518.825 51,993,670.530 1,371,925.654
James E. Crabbe 1,808,388.704 28,346.117 51,965,047.884 1,400,548.300
Richard S. Huson 1,808,388.704 28,346.117 52,013,104.973 1,352,491.211
Louis Scherzer 1,808,215.996 28,618.825 51,954,102.610 1,411,493.574
Bob L. Smith 1,808,215.996 28,618.825 51,995,751.282 1,369,844.902
Craig P. Stuvland 1,806,208.018 30,526.802 52,007,153.037 1,358,443.147
Richard P. Wollenberg 1,808,215.996 28,618.825 51,990,867.449 1,374,728.735
William Wendell Wyatt, Jr. 1,803,543.514 33,191.307 51,961,067.511 1,404,528.673
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
PROXY VOTING RESULTS (CONTINUED)
PROPOSAL 2 (CONTINUED).
<TABLE>
<CAPTION>
THE CRABBE HUSON ASSET THE CRABBE HUSON
ALLOCATION FUND, INC. EQUITY FUND, INC.
------------------------------ -------------------------------
FOR WITHHOLD FOR WITHHOLD
------------- ---------- -------------- -----------
<S> <C> <C> <C> <C>
Gary L. Capps 8,308,702.965 58,781.264 19,955,693.874 259,110.503
James E. Crabbe 8,311,222.417 56,261.812 19,963,556.842 251,247.535
Richard S. Huson 8,311,222.417 56,261.812 19,970,176.858 244,627.519
Louis Scherzer 8,294,677.892 72,606.337 19,942,263.184 272,541.193
Bob L. Smith 8,295,321.061 72,163.168 19,941,024.968 273,779.409
Craig P. Stuvland 8,293,474.456 74,009.773 19,950,702.141 264,102.236
Richard P. Wollenberg 8,295,321.061 72,163.168 19,950,243.668 264,560.709
William Wendell Wyatt, Jr. 8,283,793.192 83,691.037 19,945,693.356 269,111.021
</TABLE>
<TABLE>
<CAPTION>
THE CRABBE HUSON
THE CRABBE HUSON U.S. GOVERNMENT
INCOME FUND, INC. INCOME FUND, INC.
---------------------------- ----------------------------
FOR WITHHOLD FOR WITHHOLD
----------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Gary L. Capps 578,933.153 4,686.023 590,500.413 1,897.039
James E. Crabbe 578,933.153 4,686.023 590,500.413 1,897.039
Richard S. Huson 578,933.153 4,686.023 590,500.413 1,897.039
Louis Scherzer 578,933.153 4,686.023 590,500.413 1,897.039
Bob L. Smith 578,933.153 4,686.023 590,500.413 1,897.039
Craig P. Stuvland 578,933.153 4,686.023 590,500.413 1,897.039
Richard P. Wollenberg 578,933.153 4,686.023 590,500.413 1,897.039
William Wendell Wyatt, Jr. 578,933.153 4,686.023 590,500.413 1,897.039
</TABLE>
<TABLE>
<CAPTION>
THE CRABBE HUSON THE CRABBE HUSON
U.S. GOVERNMENT MONEY REAL ESTATE
MARKET FUND, INC. INVESTMENT FUND, INC.
------------------------------- ------------------------------
FOR WITHHOLD FOR WITHHOLD
-------------- ------------- ------------- ---------
<S> <C> <C> <C> <C>
Gary L. Capps 39,561,777.573 1,140,516.340 1,557,691.725 9,226.148
James E. Crabbe 40,503,879.313 198,414.600 1,556,970.298 9,947.575
Richard S. Huson 40,520,254.333 182,039.580 1,557,691.725 9,226.148
Louis Scherzer 39,505,430.643 1,196,863.270 1,557,691.725 9,226.148
Bob L. Smith 39,559,532.373 1,142,761.540 1,557,691.725 9,226.148
Craig P. Stuvland 39,549,273.593 1,153,020.320 1,557,471.983 9,445.890
Richard P. Wollenberg 39,557,705.673 1,144,588.240 1,557,691.725 9,226.148
William Wendell Wyatt, Jr. 39,547,587.113 1,154,706.800 1,557,691.725 9,226.148
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
PROXY VOTING RESULTS (CONTINUED)
PROPOSAL 3.
To authorize each Fund to vote its beneficial interest in the Trust to approve a
Master Investment Advisory Agreement between the Trust and The Crabbe Huson
Group, Inc., the Funds' current investment advisor ("Crabbe Huson Group").
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
------------- ---------- ----------
<S> <C> <C> <C>
The Oregon Municipal Bond Fund, Inc. 1,706,973.601 50,484.120 79,277.100
The Crabbe Huson Special Fund, Inc. 49,404,939.030 1,610,909.090 2,348,792.330
The Crabbe Huson Asset Allocation
Fund, Inc. 7,829,768.130 170,777.950 366,938.150
The Crabbe Huson Equity Fund, Inc. 19,018,985.580 442,045.630 753,773.170
The Crabbe Huson Income Fund, Inc. 514,410.950 57,138.090 12,070.140
The Crabbe Huson U.S. Government
Income Fund, Inc. 581,232.250 2,237.030 8,928.170
The Crabbe Huson U.S. Government
Money Market Fund, Inc. 39,376,032.440 388,134.140 938,127.300
The Crabbe Huson Real Estate
Investment Fund, Inc. 1,535,330.740 9,868.480 21,718.650
</TABLE>
PROPOSAL 4.
To authorize the Crabbe Huson Real Estate Investment Fund, Inc. to vote its
beneficial interest in the Real Estate Series of the Trust in favor of a Sub-
advisory Agreement among the Trust (on behalf of the Real Estate Series), Crabbe
Huson Group, and Aldrich, Eastman and Waltch, L.P.
FOR AGAINST ABSTAIN
------------- ---------- ----------
The Crabbe Huson Real Estate
Investment Fund, Inc. 1,537,226.654 12,045.781 17,645.438
PROPOSAL 5.
To authorize each Fund to vote its beneficial interest in the Trust to approve a
Distribution Plan pursuant to Rule 12b-1 of the Investment Company Act of 1940
and the rules and regulations thereunder.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
-------------- ------------- -------------
<S> <C> <C> <C>
The Oregon Municipal Bond Fund, Inc. 1,671,475.950 71,916.490 93,342.380
The Crabbe Huson Special Fund, Inc. 45,952,761.280 4,601,664.000 2,810,215.180
The Crabbe Huson Asset Allocation
Fund, Inc. 7,716,921.620 270,154.880 380,407.730
The Crabbe Huson Equity Fund, Inc. 18,047,142.480 1,346,025.700 821,636.200
The Crabbe Huson Income Fund, Inc. 511,552.120 59,696.550 12,370.510
The Crabbe Huson U.S. Government
Income Fund, Inc. 581,431.190 3,569.228 7,397.034
The Crabbe Huson U.S. Government
Money Market Fund, Inc. 37,445,943.850 1,165,562.850 2,090,787.210
The Crabbe Huson Real Estate
Investment Fund, Inc. 1,517,568.190 27,065.700 22,283.990
</TABLE>
<PAGE>
CRABBE HUSON FUNDS
PROXY VOTING RESULTS (CONTINUED)
PROPOSAL 6.
To ratify the appointment by the Board of Directors of each Fund of KPMG Peat
Marwick LLP as independent auditors of each Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
-------------- ----------- -------------
<S> <C> <C> <C>
The Oregon Municipal Bond Fund, Inc. 1,749,442.160 26,509.960 60,782.710
The Crabbe Huson Special Fund, Inc. 50,627,446.690 855,158.160 1,882,035.600
The Crabbe Huson Asset Allocation
Fund, Inc. 7,930,368.730 148,998.350 288,117.150
The Crabbe Huson Equity Fund, Inc. 19,487,063.800 248,478.900 479,261.680
The Crabbe Huson Income Fund, Inc. 518,248.692 56,625.592 8,744.892
The Crabbe Huson U.S. Government
Income Fund, Inc. 582,880.685 2,237.026 7,279.741
The Crabbe Huson U.S. Government
Money Market Fund, Inc. 38,632,586.030 1,295,656.200 774,051.680
The Crabbe Huson Real Estate
Investment Fund, Inc. 1,539,678.750 10,793.050 16,446.070
</TABLE>
<PAGE>
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NOTES
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<PAGE>
CRABBE HUSON FUNDS
MAILING ADDRESS
Crabbe Huson Funds
P.O. Box 8413
Boston, MA 02266-8413
INVESTMENT ADVISOR
The Crabbe Huson Group, Inc.
121 S.W. Morrison, Suite 1400
Portland, OR 97204
DISTRIBUTOR
Crabbe Huson Securities, Inc.
121 S.W. Morrison, Suite 1410
Portland, OR 97204
LEGAL COUNSEL
Davis Wright Tremaine
1300 S.W. Fifth Avenue, Suite 2300
Portland, OR 97201
TRANSFER AGENT &
INVESTOR SERVICES
State Street Bank and Trust Company
P.O. Box 8413
Boston, MA 02266-8413
FUND DIRECTORS
William W. Wyatt, Jr.
Louis Scherzer
Richard P. Wollenberg
Bob L. Smith
Gary L. Capps
Richard S. Huson
James E. Crabbe
Craig P. Stuvland
<PAGE>
FOR MORE INFORMATION:
1-800-541-9732
OR VISIT US ONLINE AT:
http://www.contrarian.com
CRABBE HUSON FUNDS
121 SW MORRISON, SUITE 1400
PORTLAND, OR 97204
BULK RATE
US POSTAGE
PAID
PORTLAND, OR
PERMIT NO. 1502
