1933 Act Registration No. 333-17255
1940 Act File No. 811-07955
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 [X]
Post-Effective Amendment No. 1 [X]
and
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 3 [X]
STEIN ROE ADVISOR TRUST
Registrant
One South Wacker Drive, Chicago, Illinois 60606
Telephone Number: 1-800-338-2550
Jilaine Hummel Bauer Cameron S. Avery
Executive Vice-President Bell, Boyd & Lloyd
& Secretary Three First National Plaza
Stein Roe Advisor Trust Suite 3300
One South Wacker Drive 70 W. Madison Street
Chicago, Illinois 60606 Chicago, Illinois 60602
(Agents for Service)
It is proposed that this filing will become effective (check
appropriate box):
[X] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ] on (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] on (date) pursuant to paragraph (a)(2) of rule 485
Registrant has previously elected to register under the Securities
Act of 1933 an indefinite number of its shares of beneficial
interest, without par value, of the series of shares designated
Stein Roe Advisor Growth & Income Fund, Stein Roe Advisor
International Fund, Stein Roe Advisor Young Investor Fund, Stein
Roe Advisor Special Venture Fund, Stein Roe Advisor Balanced Fund,
Stein Roe Advisor Growth Stock Fund, and Stein Roe Advisor Special
Fund.
This Registration Statement has also been signed by SR&F Base
Trust.
<PAGE>
STEIN ROE ADVISOR TRUST
CROSS REFERENCE SHEET
ITEM
NO. CAPTION
- ----- -------
PART A (PROSPECTUS)
1 Front cover
2 Fee Table; Summary
3 (a) Inapplicable
(b) Inapplicable
(c) Investment Return
(d) Inapplicable
4 Organization and Description of Shares; The Fund;
Investment Policies; Investment Restrictions; Risks
and Investment Considerations; Portfolio Investments and
Strategies; Summary--Investment Risks
5 (a) Management--Trustees and Investment Adviser
(b) Management--Trustees and Investment Adviser, Fees and
Expenses
(c) Management--Portfolio Managers
(d) Inapplicable
(e) Management--Transfer Agent
(f) Management--Fees and Expenses
(g) Inapplicable
5A Inapplicable
6 (a) Organization and Description of Shares; see statement of
additional information: General Information and History
(b) Inapplicable
(c) Organization and Description of Shares
(d) Organization and Description of Shares
(e) For More Information
(f) Distributions and Income Taxes
(g) Distributions and Income Taxes
(h) Special Considerations Regarding Master Fund/Feeder Fund
Structure
7 How to Purchase Shares
(a) Management--Distributor
(b) How to Purchase Shares; Net Asset Value
(c) Inapplicable
(d) How to Purchase Shares
(e) Inapplicable
(f) Management--Fees and Expenses
8 (a) How to Redeem Shares
(b) How to Purchase Shares
(c) How to Redeem Shares
(d) How to Redeem Shares
9 Inapplicable
PART B (STATEMENT OF ADDITIONAL INFORMATION)
10 Cover page
11 Table of Contents
12 General Information and History
13 Investment Policies; Portfolio Investments and Strategies;
Investment Restrictions
14 Management
15(a) Inapplicable
(b) Principal Shareholders
(c) Principal Shareholders
16(a) Investment Advisory Services; Management; see prospectus:
Management
(b) Investment Advisory Services
(c) Inapplicable
(d) Investment Advisory Services
(e) Inapplicable
(f) Distributor
(g) Inapplicable
(h) Custodian; Independent Auditors
(i) Transfer Agent and Shareholder Servicing
17(a) Portfolio Transactions
(b) Inapplicable
(c) Portfolio Transactions
(d) Portfolio Transactions
(e) Portfolio Transactions
18 General Information and History
19(a) Purchases and Redemptions; see prospectus: How to Purchase
Shares, How to Redeem Shares
(b) Purchases and Redemptions; see prospectus: Net Asset Value
(c) Purchases and Redemptions
20 Additional Income Tax Considerations; Portfolio Investments
and Strategies--Taxation of Options and Futures
21(a) Distributor
(b) Inapplicable
(c) Inapplicable
22 Investment Performance
23 Balance Sheet
PART C
24 Financial Statements and Exhibits
25 Persons Controlled By or Under Common Control with
Registrant
26 Number of Holders of Securities
27 Indemnification
28 Business and Other Connections of Investment Adviser
29 Principal Underwriters
30 Location of Accounts and Records
31 Management Services
32 Undertakings
<PAGE>
The Prospectuses and Statement of Additional Information
relating to Stein Roe Advisor Growth & Income Fund, Stein Roe
Advisor International Fund, Stein Roe Advisor Young Investor Fund,
Stein Roe Advisor Special Venture Fund, Stein Roe Advisor Balanced
Fund, Stein Roe Advisor Growth Stock Fund, and Stein Roe Advisor
Special Fund, each a series of Stein Roe Advisor Trust, are not
affected by the filing of this post-effective amendment No. 1.
<PAGE>
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.
(a) 1. Financial statements included in Part A of this
Registration Statement: None.
2. Financial statements included in Part B of this
Registration Statement:
(a) Balance sheet as of February 6, 1997.
(b) Report of independent public accountants.
(b) Exhibits: [Note: As used herein, the term "Registration
Statement" refers to the Registration Statement of the
Registrant on Form N-1A under the Securities Act of 1933, No.
333-17255. The terms "Pre-Effective Amendment" and "PEA"
refer, respectively, to a pre-effective amendment and a post-
effective amendment to the Registration Statement.]
1. Agreement and Declaration of Trust as amended through
December 13, 1996. (Exhibit 1 to Pre-Effective Amendment
#1.)*
2. By-Laws of Registrant. (Exhibit 2 to Registration
Statement.)*
3. None.
4. None.
5. None.
6. Underwriting agreement between Registrant and Liberty
Securities Corporation dated April 30, 1997.
7. None.
8. Custodian contract between Registrant and State Street
Bank and Trust Company dated February 13, 1997.
9. (a) Shareholder servicing and transfer agency agreement
between Registrant and SteinRoe Services Inc. dated
February 14, 1997.
(b) Administrative agreement between Registrant and Stein
Roe & Farnham Incorporated dated February 14, 1997.
(c) Accounting and bookkeeping agreement between Registrant
and Stein Roe & Farnham Incorporated dated February 14,
1997.
(d) Sub-transfer agent agreement between Registrant and
Colonial Investors Service Center as amended through
June 30, 1997.
10. Opinion and consent of Bell, Boyd & Lloyd. (Exhibit 10 to
Pre-Effective Amendment #1.)*
11. Consent of Arthur Andersen LLP.
12. Unaudited financial statements (schedules of
investments, balance sheets, statements of operations,
statements of changes in net assets, and notes thereto)
as of March 31, 1997, relating to the series Stein Roe
Advisor Growth & Income Fund, Stein Roe Advisor Balanced
Fund, Stein Roe Advisor International Fund, Stein Roe
Advisor Young Investor Fund, Stein Roe Advisor Special
Venture Fund, Stein Roe Advisor Growth Stock Fund, and
Stein Roe Advisor Special Fund.
13. Subscription agreements. (Exhibit 13 to Pre-Effective
Amendment No. 2.)*
14. None.
15. Form of 12b-1 plan and agreement. (Exhibit 15 to Pre-
Effective Amendment No. 2.)*
16. Inapplicable.
17 (a) Financial data schedule--Stein Roe Advisor Growth &
Income Fund
(b) Financial data schedule--Stein Roe Advisor
International Fund
(c) Financial data schedule--Stein Roe Advisor Young
Investor Fund
(d) Financial data schedule--Stein Roe Advisor Special
Venture Fund
(e) Financial data schedule--Stein Roe Advisor Balanced
Fund
(f) Financial data schedule--Stein Roe Advisor Growth
Stock Fund
(g) Financial data schedule--Stein Roe Advisor Special Fund
18. Inapplicable.
- -----------
*Incorporated by reference.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH
REGISTRANT.
The Registrant does not consider that it is directly or indirectly
controlling, controlled by, or under common control with other
persons within the meaning of this Item. See "Investment Advisory
Services," "Management," and "Transfer Agent" in the Statement of
Additional Information, each of which is incorporated herein by
reference.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
Number of Record Holders
Title of Series as of May 30, 1997
--------------- ------------------------
Stein Roe Advisor Growth & Income Fund 1
Stein Roe Advisor International Fund 1
Stein Roe Advisor Young Investor Fund 1
Stein Roe Advisor Special Venture Fund 1
Stein Roe Advisor Balanced Fund 1
Stein Roe Advisor Growth Stock Fund 1
Stein Roe Advisor Special Fund 1
ITEM 27. INDEMNIFICATION.
Article VIII of the Agreement and Declaration of Trust of
Registrant (Exhibit 1), which Article is incorporated herein by
reference, provides that Registrant shall provide indemnification
of its trustees and officers (including persons who serve or
have served at Registrant's request as directors, officers, or
trustees of another organization in which Registrant has any
interest as a shareholder, creditor or otherwise) ("Covered
Persons") under specified circumstances.
Section 17(h) of the Investment Company Act of 1940 ("1940 Act")
provides that neither the Agreement and Declaration of Trust nor
the By-Laws of Registrant, nor any other instrument pursuant to
which Registrant is organized or administered, shall contain any
provision which protects or purports to protect any trustee or
officer of Registrant against any liability to Registrant or its
shareholders to which he would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of his office. In
accordance with Section 17(h) of the 1940 Act, Article VIII shall
not protect any person against any liability to Registrant or its
shareholders to which he would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of his office.
Unless otherwise permitted under the 1940 Act,
(i) Article VIII does not protect any person against any
liability to Registrant or to its shareholders to which he would
otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in
the conduct of his office;
(ii) in the absence of a final decision on the merits by a
court or other body before whom a proceeding was brought that a
Covered Person was not liable to the Registrant or its
shareholders by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in the
conduct of his office, indemnification is permitted under Article
VIII if (a) approved as in the best interest of the Registrant,
after notice that it involves such indemnification, by at least a
majority of the Trustees who are disinterested persons are not
"interested persons" as defined in Section 2(a)(19) of the 1940
Act ("disinterested trustees"), upon determination, based upon a
review of readily available facts (but not a full trial-type
inquiry) that such Covered Person is not liable to the Registrant
or its shareholders by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in
the conduct of such Covered Person's office or (b) there has been
obtained a opinion in writing of independent legal counsel, based
upon a review of readily available facts (but not a full trial-
type inquiry) to the effect that such indemnification would not
protect such Covered Person against any liability to the Trust to
which such Covered Person would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his office; and
(iii) Registrant will not advance expenses, including
counsel fees(but excluding amounts paid in satisfaction of
judgments, in compromise or as fines or penalties), incurred by a
Covered Person unless Registrant receives an undertaking by or on
behalf of the Covered Person to repay the advance if it is
ultimately determined that indemnification of such expenses is not
authorized by Article VII and (a) the Covered Person provides
security for his undertaking, or (b) Registrant is insured against
losses arising by reason of such Covered Person's failure to
fulfill his undertaking, or (c) a majority of the disinterested
trustees of Registrant or an independent legal counsel as
expressed in a written opinion, determine, based on a review of
readily available facts (as opposed to a full trial-type inquiry),
that there is reason to believe that the Covered Person ultimately
will be found entitled to indemnification.
Any approval of indemnification pursuant to Article VIII does not
prevent the recovery from any Covered Person of any amount paid to
such Covered Person in accordance with Article VIII as
indemnification if such Covered Person is subsequently adjudicated
by a court of competent jurisdiction to have been liable to the
Trust or its shareholders by reason of willful misfeasance, bad
faith, gross negligence, or reckless disregard of the duties
involved in the conduct of such Covered Person's office.
Article VIII also provides that its indemnification provisions
are not exclusive.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to trustees, officers, and
controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, Registrant has been advised that in the
opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by Registrant of expenses incurred or paid by a trustee, officer,
or controlling person of Registrant in the successful defense of
any action, suit, or proceeding) is asserted by such trustee,
officer, or controlling person in connection with the securities
being registered, Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
Registrant, its trustees and officers, its investment adviser, the
other investment companies advised by the adviser, and persons
affiliated with them are insured against certain expenses in
connection with the defense of actions, suits, or proceedings, and
certain liabilities that might be imposed as a result of such
actions, suits, or proceedings. Registrant will not pay any
portion of the premiums for coverage under such insurance that
would (1) protect any trustee or officer against any liability to
Registrant or its shareholders to which he would otherwise be
subject by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in the
conduct of his office or (2) protect its investment adviser or
principal underwriter, if any, against any liability to Registrant
or its shareholders to which such person would otherwise be
subject by reason of willful misfeasance, bad faith, or gross
negligence, in the performance of its duties, or by reason of its
reckless disregard of its duties and obligations under its
contract or agreement with the Registrant; for this purpose the
Registrant will rely on an allocation of premiums determined by
the insurance company.
Registrant, its trustees, officers, employees and representatives
and each person, if any, who controls the Registrant within the
meaning of Section 15 of the Securities Act of 1933 are
indemnified by the distributor of Registrant's shares (the
"distributor"), pursuant to the terms of the distribution
agreement, which governs the distribution of Registrant's shares,
against any and all losses, liabilities, damages, claims and
expenses arising out of the acquisition of any shares of the
Registrant by any person which (i) may be based upon any wrongful
act by the distributor or any of the distributor's directors,
officers, employees or representatives or (ii) may be based upon
any untrue or alleged untrue statement of a material fact
contained in a registration statement, prospectus, statement of
additional information, shareholder report or other information
covering shares of the Registrant filed or made public by the
Registrant or any amendment thereof or supplement thereto or the
omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statement
therein not misleading if such statement or omission was made in
reliance upon information furnished to the Registrant by the
distributor in writing. In no case does the distributor's
indemnity indemnify an indemnified party against any liability to
which such indemnified party would otherwise be subject by reason
of willful misfeasance, bad faith, or negligence in the
performance of its or his duties or by reason of its or his
reckless disregard of its or his obligations and duties under the
distribution agreement.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
The Adviser is a wholly-owned subsidiary of SteinRoe Services Inc.
("SSI"), which in turn is a wholly-owned subsidiary of Liberty
Financial Companies, Inc., which is a majority owned subsidiary of
LFC Holdings, Inc., which in turn is a subsidiary of Liberty
Mutual Equity Corporation, which in turn is a subsidiary of
Liberty Mutual Insurance Company. The Adviser acts as investment
adviser to individuals, trustees, pension and profit-sharing
plans, charitable organizations, and other investors. In addition
to Registrant, it also acts as investment adviser to other
investment companies having different investment policies.
For a two-year business history of officers and directors of the
Adviser, please refer to the Form ADV of Stein Roe & Farnham
Incorporated and to the section of the statement of additional
information (part B) entitled "Investment Advisory Services."
Certain directors and officers of the Adviser also serve and have
during the past two years served in various capacities as
officers, directors, or trustees of SSI and of the Registrant,
Stein Roe Investment Trust, Stein Roe Municipal Trust, SR&F Base
Trust, Stein Roe Income Trust, Stein Roe Institutional Trust,
Stein Roe Trust, SteinRoe Variable Investment Trust and LFC
Utilities Trust, investment companies managed by the Adviser.
(The listed entities are located at One South Wacker Drive,
Chicago, Illinois 60606, except for SteinRoe Variable Investment
Trust, which is located at Federal Reserve Plaza, Boston, MA
02210 and LFC Utilities Trust, which is located at One Financial
Center, Boston, MA 02111.) A list of such capacities is given
below.
POSITION FORMERLY
HELD WITHIN
CURRENT POSITION PAST TWO YEARS
------------------- --------------
STEINROE SERVICES INC.
Gary A. Anetsberger Vice President
Timothy K. Armour Vice President
Jilaine Hummel Bauer Vice President; Secretary
Kenneth J. Kozanda Vice President; Treasurer
Kenneth R. Leibler Director
C. Allen Merritt, Jr. Director; Vice President
Hans P. Ziegler Director, President, Vice Chairman
Chairman
SR&F BASE TRUST
Gary A. Anetsberger Senior Vice-President Controller
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive Vice-President; Secy.
Thomas W. Butch Executive Vice-President
Michael T. Kennedy Vice-President
Lynn C. Maddox Vice-President
Jane M. Naeseth Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEIN ROE INCOME TRUST
Gary A. Anetsberger Senior Vice-President Controller
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive V-P; Secretary
Thomas W. Butch Executive Vice-President Vice-President
Philip J. Crosley Vice-President
Michael T. Kennedy Vice-President
Steven P. Luetger Vice-President
Lynn C. Maddox Vice-President
Anne E. Marcel Vice-President
Jane M. Naeseth Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEIN ROE INVESTMENT TRUST
Gary A. Anetsberger Senior Vice-President Controller
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive V-P; Secretary
Bruno Bertocci Vice-President
David P. Brady Vice-President
Thomas W. Butch Executive Vice-President Vice-President
Daniel K. Cantor Vice-President
Philip J. Crosley Vice-President
E. Bruce Dunn Vice-President
Erik P. Gustafson Vice-President
David P. Harris Vice-President
Harvey B. Hirschhorn Vice-President
Eric S. Maddix Vice-President
Lynn C. Maddox Vice-President
Anne E. Marcel Vice-President
Richard B. Peterson Vice-President
Gloria J. Santella Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEIN ROE MUNICIPAL TRUST
Gary A. Anetsberger Senior Vice-President Controller
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive V-P; Secretary Vice-President
Thomas W. Butch Executive Vice-President
Joanne T. Costopoulos Vice-President
Philip J. Crosley Vice-President
Lynn C. Maddox Vice-President
Anne E. Marcel Vice-President
M. Jane McCart Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEIN ROE ADVISOR TRUST
Gary A. Anetsberger Senior Vice-President
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive V-P; Secretary
Bruno Bertocci Vice-President
David P. Brady Vice-President
Thomas W. Butch Executive Vice-President Vice-President
Daniel K. Cantor Vice-President
Philip J. Crosley Vice-President
E. Bruce Dunn Vice-President
Erik P. Gustafson Vice-President
David P. Harris Vice-President
Harvey B. Hirschhorn Vice-President
Eric S. Maddix Vice-President
Lynn C. Maddox Vice-President
Anne E. Marcel Vice-President
Richard B. Peterson Vice-President
Gloria J. Santella Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEIN ROE INSTITUTIONAL TRUST and STEIN ROE TRUST
Gary A. Anetsberger Senior Vice-President
Timothy K. Armour President; Trustee
Jilaine Hummel Bauer Executive V-P; Secretary
Thomas W. Butch Executive Vice-President Vice-President
Philip J. Crosley Vice-President
Michael T. Kennedy Vice-President
Steven P. Luetger Vice-President
Lynn C. Maddox Vice-President
Anne E. Marcel Vice-President
Jane M. Naeseth Vice-President
Thomas P. Sorbo Vice-President
Hans P. Ziegler Executive Vice-President
STEINROE VARIABLE INVESTMENT TRUST
Gary A. Anetsberger Treasurer
Timothy K. Armour Vice President
Jilaine Hummel Bauer Vice President
E. Bruce Dunn Vice President
Erik P. Gustafson Vice President
Harvey B. Hirschhorn Vice President
Michael T. Kennedy Vice President
Jane M. Naeseth Vice President
Richard B. Peterson Vice President
LFC UTILITIES TRUST
Gary A. Anetsberger Vice President
Ophelia L. Barsketis Vice President
Deborah A. Jansen Vice President
ITEM 29. PRINCIPAL UNDERWRITERS.
Registrant's principal underwriter, Liberty Securities
Corporation, is a wholly owned subsidiary of Liberty Investment
Services, Inc., a wholly owned subsidiary of Liberty Financial
Services, Inc. which, in turn, is a wholly owned subsidiary of
Liberty Financial Companies, Inc. Liberty Financial Companies,
Inc. is a public corporation whose majority shareholder is LFC
Holdings, Inc., a wholly owned subsidiary of Liberty Mutual Equity
Corporation. Liberty Mutual Equity Corporation is a wholly owned
subsidiary of Liberty Mutual Insurance Company.
Liberty Securities Corporation is principal underwriter for the
following investment companies:
Stein Roe Income Trust
Stein Roe Municipal Trust
Stein Roe Investment Trust
Stein Roe Institutional Trust
Stein Roe Advisor Trust
Stein Roe Trust
Set forth below is information concerning the directors and
officers of Liberty Securities Corporation:
Positions
Positions and Offices and Offices
Name with Underwriter with Registrant
- ------------------ -------------------- ---------------
Porter P. Morgan Chairman of the Board; Director None
Frank L. Tarantino President; Chief Operating
Officer; Director None
Robert L. Spadafora Executive Vice President -
Sales and Marketing None
John T. Treece, Jr. Senior Vice President - Operations None
John W. Reading Senior Vice President and
Assistant Secretary None
Valerie A. Arendell Senior Vice President - Sales None
Gerald H. Stanney, Vice President and Compliance
Jr. Officer (Boston) None
Jilaine Hummel Bauer Vice President and Compliance Exec. V-P &
Officer (Chicago) Secretary
Bruce F. Ripepi Vice President, General Counsel None
and Assistant Secretary
Timothy K. Armour Vice President President,
Trustee
Lindsay Cook Vice President Trustee
Ralph E. Nixon Vice President None
Joyce B. Riegel Vice President None
Heidi J. Walter Vice President V-P
Glenn E. Williams Assistant Vice President None
Philip J. Iudice Treasurer None
John A. Benning Secretary None
John A. Davenport Assistant Secretary None
Marjorie M. Pluskota Assistant Secretary None
C. Allen Merritt, Jr. Assistant Treasurer; Assistant
Secretary; Director None
The principal business address of Mr. Armour, Ms. Bauer, Ms.
Pluskota, Ms. Riegel and Ms. Walter is One South Wacker Drive,
Chicago, IL 60606; that of Mr. Williams is Two Righter Parkway,
Wilmington, DE 19803; that of Mr. Ripepi is 100 Manhattanville
Road, Purchase, NY 10577; and that of the other officers is 600
Atlantic Avenue, Boston, MA 02210-2214.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
Jilaine Hummel Bauer
Executive Vice-President and Secretary
One South Wacker Drive, Suite 3500
Chicago, Illinois 60606
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it
meets all of the requirements for effectiveness of this
registration statement pursuant to Rule 485(b) under the Securities
Act of 1933 and has duly caused this amendment to the Registration
Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Chicago and State of Illinois on
the 11th day of June, 1997.
STEIN ROE ADVISOR TRUST
By TIMOTHY K. ARMOUR
Timothy K. Armour
President
Pursuant to the requirements of the Securities Act of 1933, this
amendment to the Registration Statement has been signed below by
the following persons in the capacities and on the dates indicated:
Signature* Title Date
- ------------------------ --------------------- --------------
TIMOTHY K. ARMOUR President and Trustee June 11, 1997
Timothy K. Armour
Principal Executive Officer
GARY A. ANETSBERGER Senior Vice-President June 11, 1997
Gary A. Anetsberger
Principal Financial Officer
SHARON R. ROBERTSON Controller June 11, 1997
Sharon R. Robertson
Principal Accounting Officer
______________________ Trustee ______________
Kenneth L. Block
WILLIAM W. BOYD Trustee June 11, 1997
William W. Boyd
LINDSAY COOK Trustee June 11, 1997
Lindsay Cook
DOUGLAS A. HACKER Trustee June 11, 1997
Douglas A. Hacker
JANET LANGFORD KELLY Trustee June 11, 1997
Janet Langford Kelly
FRANCIS W. MORLEY Trustee June 11, 1997
Francis W. Morley
CHARLES R. NELSON Trustee June 11, 1997
Charles R. Nelson
THOMAS C. THEOBALD Trustee June 11, 1997
Thomas C. Theobald
*This Registration Statement has also been signed by the above
persons in their capacities as trustees and officers of SR&F Base
Trust
<PAGE>
STEIN ROE ADVISOR TRUST
INDEX TO EXHIBITS FILED WITH THIS REGISTRATION STATEMENT
Exhibit
Number Description
- ------- -------------
6 Underwriting agreement
8 Custodian contract
9(a) Shareholder servicing and transfer agency agreement
(b) Administrative agreement
(c) Accounting and bookkeeping agreement
(d) Sub-transfer agent agreement
11 Consent of Arthur Andersen LLP
12 Unaudited financial statements as of March 31, 1997
17(a) Financial data schedule--Stein Roe Advisor Growth &
Income Fund
(b) Financial data schedule--Stein Roe Advisor International
Fund
(c) Financial data schedule--Stein Roe Advisor Young
Investor Fund
(d) Financial data schedule--Stein Roe Advisor Special
Venture Fund
(e) Financial data schedule--Stein Roe Advisor Balanced Fund
(f) Financial data schedule--Stein Roe Advisor Growth
Stock Fund
(g) Financial data schedule--Stein Roe Advisor Special Fund
EXHIBIT 6
UNDERWRITING AGREEMENT BETWEEN
STEIN ROE ADVISOR TRUST
AND LIBERTY SECURITIES CORPORATION
THIS UNDERWRITING AGREEMENT ("Agreement"), made as of
the 30th day of Arpil, 1997 by and between Stein Roe Advisor
Trust, a business trust organized and existing under the laws
of the Commonwealth of Massachusetts (hereinafter called the
"Fund"), and Liberty Securities Corporation, a corporation
organized and existing under the laws of the State of
Delaware (hereinafter call the "Distributor").
WITNESSETH:
WHEREAS, the Fund is engaged in business as an open-end
management investment company registered under the Investment
Company Act of 1940, as amended ("ICA-40"); and
WHEREAS, the Distributor is registered as a broker-
dealer under the Securities Exchange Act of 1934, as amended
("SEA-34") and, the laws of each state (including the
District of Columbia and Puerto Rico) in which it engages in
business to the extent such law requires, and is a member of
the National Association of Securities Dealers ("NASD") (such
registrations and membership are referred to collectively as
the "Registrations"); and
WHEREAS, the Fund desires the Distributor to act as the
distributor in the public offering of its shares of
beneficial interest (hereinafter called "Shares");
WHEREAS, the Fund shall pay all charges of its transfer,
shareholder recordkeeping, dividend disbursing and redemption
agents, if any; all expenses of notices, proxy solicitation
material and reports to shareholders; all expenses of
preparation and printing of annual or more frequent revisions
of the Fund's Prospectus and Statement of Additional
Information and of supplying copies thereof to shareholders;
all expenses of registering and maintaining the registration
of the Fund under ICA-40 and of the Fund's Shares under the
Securities Act of 1933, as amended ("SA-33"); all expenses of
qualifying and maintaining qualification of such Fund and of
the Fund's Shares for sale under securities laws of various
states or other jurisdictions and of registration and
qualification of the Fund under all laws applicable to the
Fund or its business activities;
WHEREAS, Stein Roe & Farnham Incorporated, investment
adviser to the Funds, shall pay all expenses incurred in the
sale and promotion of the Fund, except as provided in the
Fund's 12b-1 plan;
NOW, THEREFORE, in consideration of the premises and the
mutual promises hereinafter set forth, the parties hereto
agree as follows:
1. Appointment. The Fund appoints Distributor to act
as principal underwriter (as such term is defined in Sections
2(a)(29) of ICA-40) of its Shares.
2. Delivery of Fund Documents. The Fund has furnished
Distributor with properly certified or authenticated copies
of each of the following in effect on the date hereof and
shall furnish Distributor from time to time properly
certified or authenticated copies of all amendments or
supplements thereto:
(a) Agreement and Declaration of Trust;
(b) By-Laws;
(c) Resolutions of the Board of Trustees of the Fund
(hereinafter referred to as the "Board") selecting
Distributor as distributor and approving this form
of agreement and authorizing its execution.
The Fund shall furnish Distributor promptly with copies
of any registration statements filed by it with the
Securities and Exchange Commission ("SEC") under SA-33 or
ICA-40, together with any financial statements and exhibits
included therein, and all amendments or supplements thereto
hereafter filed.
The Fund also shall furnish Distributor such other
certificates or documents which Distributor may from time to
time, in its discretion, reasonably deem necessary or
appropriate in the proper performance of its duties.
3. Solicitation of Orders for Purchase of Shares.
(a) Subject to the provisions of Paragraphs 4, 5 and 7
hereof, and to such minimum purchase requirements as
may from time to time be indicated in the Fund's
Prospectus, Distributor is authorized to solicit, as
agent on behalf of the Fund, unconditional orders
for purchases of the Fund's Shares authorized for
issuance and registered under SA-33, provided that:
(1) Distributor shall act solely as a disclosed
agent on behalf of and for the account of the
Fund;
(2) The Fund or its transfer agent shall receive
directly from investors all payments for the
purchase of the Fund's Shares and also shall pay
directly to shareholders amounts due to them for
the redemption or repurchase of all the Fund's
Shares with Distributor having no rights or
duties to accept such payment or to effect such
redemptions or repurchases;
(3) Distributor shall confirm all orders received
for purchase of the Fund's Shares which
confirmation shall clearly state (i) that
Distributor is acting as agent of the Fund in
the transaction (ii) that all certificates for
redemption, remittances, and registration
instructions should be sent directly to the
Fund, and (iii) the Fund's mailing address;
(4) Distributor shall have no liability for payment
for purchases of the Fund's Shares it sells as
agent; and
(5) Each order to purchase Shares of the Fund
received by Distributor shall be subject to
acceptance by an officer of the Fund in Chicago
and entry of the order on the Fund's records or
shareholder accounts and is not binding until so
accepted and entered.
The purchase price to the public of the Fund's
Shares shall be the public offering price as defined
in Paragraph 6 hereof.
(b) In consideration of the rights granted to the
Distributor under this Agreement, Distributor will
use its best efforts (but only in states in which
Distributor may lawfully do so) to solicit from
investors unconditional orders to purchase Shares of
the Fund. The Fund shall make available to the
Distributor without cost to the Distributor such
number of copies of the Fund's currently effective
Prospectus and Statement of Additional Information
and copies of all information, financial statements
and other papers which the Distributor may
reasonably request for use in connection with the
distribution of Shares.
3.A. Selling Agreements. Distributor is authorized, as
agent on behalf of each Fund, to enter into agreements with
other broker-dealers providing for the solicitation of
unconditional orders for purchases of Fund's Shares
authorized for issuance and registered under SA-33. All such
agreements shall be either in the form of agreement attached
hereto or in such other form as may be approved by the
officers of the Fund ("Selling Agreement"). All
solicitations made by other broker-dealers pursuant to a
Selling Agreement shall be subject to the same terms of this
Agreement which apply to solicitations made by Distributor.
4. Solicitation of Orders to Purchase Shares by Fund.
The rights granted to the Distributor shall be non-exclusive
in that the Fund reserves the right to solicit purchases
from, and sell its Shares to, investors. Further, the Fund
reserves the right to issue Shares in connection with the
merger or consolidation of any other investment company,
trust or personal holding company with the Fund, or the
Fund's acquisition, by the purchase or otherwise, of all or
substantially all of the assets of an investment company,
trust or personal holding company, or substantially all of
the outstanding shares or interests of any such entity. Any
right granted to Distributor to solicit purchases of Shares
will not apply to Shares that may be offered by the Fund to
shareholders by virtue of their being shareholders of the
Fund.
5. Shares Covered by this Agreement. This Agreement
relates to the solicitation of orders to purchase Shares that
are duly authorized and registered and available for sale by
the Fund, including redeemed or repurchased Shares if and to
the extent that they may be legally sold and if, but only if,
the Fund authorizes the Distributor to sell them.
6. Public Offering Price. All solicitations by the
Distributor pursuant to this Agreement shall be for orders to
purchase Shares of the Fund at the public offering price.
The public offering price for each accepted subscription for
the Fund's Shares will be the net asset value per share next
determined by the Fund after it accepts such subscription.
The net asset value per share shall be determined in the
manner provided in the Fund's Agreement and Declaration of
Trust as now in effect or as they may be amended, and as
reflected in the Fund's then current Prospectus and Statement
of Additional Information.
7. Suspension of Sales. If and whenever the
determination of the Fund's net asset value is suspended and
until such suspension is terminated, no further orders for
Shares shall be accepted by the Fund except such
unconditional orders placed with the Fund and accepted by it
before the suspension. In addition, the Fund reserves the
right to suspend sales of Shares if, in the judgement of the
Board of the Fund, it is in the best interest of the Fund to
do so, such suspension to continue for such period as may be
determined by the Board of the Fund; and in that event, (i)
at the direction of the Fund, Distributor shall suspend its
solicitation of orders to purchase Shares of the Fund until
otherwise instructed by the Fund and (ii) no orders to
purchase Shares shall be accepted by the Fund while such
suspension remains in effect unless otherwise directed by its
Board.
8. Authorized Representations. No Fund is authorized
by the Distributor to give on behalf of the Distributor any
information or to make any representations other than the
information and representations contained in the Fund's
registration statement filed with the SEC under SA-33 and/or
ICA-40 as it may be amended from time to time.
Distributor is not authorized by the Fund to give on
behalf of the Fund any information or to make any
representations in connection with the sale of Shares other
than the information and representations contained in the
Fund's registration statement filed with the SEC under SA-33
and/or ICA-40, covering Shares, as such registration
statement or the Fund's prospectus may be amended or
supplemented from time to time, or contained in shareholder
reports or other material that may be prepared by or on
behalf of the Fund or approved by the Fund for the
Distributor's use. No person other than Distributor is
authorized to act as principal underwriter (as such term is
defined in ICA-40, as amended) for the Funds.
9. Registration of Additional Shares. The Fund hereby
agrees to register either (i) an indefinite number of Shares
pursuant to Rule 24f-2 under ICA-40, or (ii) a definite
number of Shares as the Fund shall deem advisable pursuant to
Rule 24e-2 under ICA-40, as amended. The Fund will, in
cooperation with the Distributor, take such action as may be
necessary from time to time to qualify the Shares (so
registered or otherwise qualified for sale under SA-33), in
any state mutually agreeable to the Distributor and the Fund,
and to maintain such qualification; provided, however, that
nothing herein shall be deemed to prevent the Fund from
registering its shares without approval of the Distributor in
any state it deems appropriate.
10. Conformity With Law. Distributor agrees that in
soliciting orders to purchase Shares it shall duly conform in
all respects with applicable federal and state laws and the
rules and regulations of the NASD. Distributor will use its
best efforts to maintain its Registrations in good standing
during the term of this Agreement and will promptly notify
the Fund and Stein Roe & Farnham Incorporated in the event of
the suspension or termination of any of the Registrations.
11. Independent Contractor. Distributor shall be an
independent contractor and neither the Distributor, nor any
of its officers, directors, employees, or representatives is
or shall be an employee of the Fund in the performance of
Distributor's duties hereunder. Distributor shall be
responsible for its own conduct and the employment, control,
and conduct of its agents and employees and for injury to
such agents or employees or to others through its agents and
employees and agrees to pay all employee taxes thereunder.
12. Indemnification. Distributor agrees to indemnify
and hold harmless the Fund and each of the members of its
Board and its officers, employees and representatives and
each person, if any, who controls the Fund within the meaning
of Section 15 of SA-33 against any and all losses,
liabilities, damages, claims and expenses (including the
reasonable costs of investigating or defending any alleged
loss, liability, damage, claim or expense and reasonable
legal counsel fees incurred in connection therewith) to which
the Fund or such of the members of its Board and of its
officers, employees, representatives, or controlling person
or persons may become subject under SA-33, under any other
statute, at common law, or otherwise, arising out of the
acquisition of any Shares of the Fund by any person which (i)
may be based upon any wrongful act by Distributor or any of
Distributor's directors, officers, employees or
representatives, or (ii) may be based upon any untrue
statement or alleged untrue statement of a material fact
contained in a registration statement, Prospectus, Statement
of Additional Information, shareholder report or other
information covering Shares of the Fund filed or made public
by the Fund or any amendment thereof or supplement thereto or
the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the
statements therein not misleading if such statement or
omission was made in reliance upon information furnished to
the Fund by Distributor in writing. In no case (i) is
Distributor's indemnity in favor of the Fund, or any person
indemnified, to be deemed to protect the Fund or such
indemnified person against any liability to which the Fund or
such person would otherwise be subject by reason of willful
misfeasance, bad faith, or negligence in the performance of
its or his duties or by reason of its or his reckless
disregard of its or his obligations and duties under this
Agreement or (ii) is Distributor to be liable under its
indemnity agreement contained in this paragraph with respect
to any claim made against the Fund or any person indemnified
unless the Fund or such person, as the case may be, shall
have notified Distributor in writing of the claim within a
reasonable time after the summons, or other first written
notification, giving information of the nature of the claim
served upon the Fund or upon such person (or after the Fund
or such person shall have received notice of such service on
any designated agent). However, failure to notify
Distributor of any such claim shall not relieve Distributor
from any liability which Distributor may have to the Fund or
any person against whom such action is brought otherwise than
on account of Distributor's indemnity agreement contained in
this Paragraph.
Distributor shall be entitled to participate, at its own
expense, in the defense, or, if Distributor so elects, to
assume the defense of any suit brought to enforce any such
claim but, if Distributor elects to assume the defense, such
defense shall be conducted by legal counsel chosen by
Distributor and satisfactory to the persons indemnified who
are defendants in the suit. In the event that Distributor
elects to assume the defense of any such suit and retain such
legal counsel, persons indemnified who are defendants in the
suit shall bear the fees and expenses of any additional legal
counsel retained by them. If Distributor does not elect to
assume the defense of any such suit, Distributor will
reimburse persons indemnified who are defendants in such suit
for the reasonable fees of any legal counsel retained by them
in such litigation.
The Fund agrees to indemnify and hold harmless
Distributor and each of its directors, officers, employees,
and representatives and each person, if any, who controls
Distributor within the meaning of Section 15 of SA-33 against
any and all losses, liabilities, damages, claims or expenses
(including the damage, claim or expense and reasonable legal
counsel fees incurred in connection therewith) to which
Distributor or such of its directors, officers, employees,
representatives or controlling person or persons may become
subject under SA-33, under any other statute, at common law,
or otherwise arising out of the acquisition of any Shares by
any person which (i) may be based upon any wrongful act by
the Fund or any of the members of the Fund's Board, or the
Fund's officers, employees or representatives other than
Distributor, or (ii) may be based upon any untrue statement
or alleged untrue statement of a material fact contained in a
registration statement, Prospectus, Statement of Additional
Information, shareholder report or other information covering
Shares filed or made public by the Fund or any amendment
thereof or supplement thereto, or the omission or alleged
omission to state therein a material fact required to be
stated therein or necessary to make the statements therein
not misleading unless such statement or omission was made in
reliance upon information furnished by Distributor to the
Fund. In no case (i) is the Fund's indemnity in favor of the
Distributor or any person indemnified to be deemed to protect
the Distributor or such indemnified person against any
liability to which Distributor or such indemnified person
would otherwise be subject by reason of willful misfeasance,
bad faith, or negligence in the performance of its or his
duties or by reason of its or his reckless disregard of its
or his obligations and duties under this Agreement, or (ii)
is the Fund to be liable under its indemnity agreement
contained in this Paragraph with respect to any claim made
against Distributor or any person indemnified unless
Distributor, or such person, as the case may be, shall have
notified the Fund in writing of the claim within a reasonable
time after the summons, or other first written notification,
giving information of the nature of the claim served upon
Distributor or upon such person (or after Distributor or such
person shall have received notice of such service on any
designated agent). However, failure to notify a Fund of any
such claim shall not relieve the Fund from any liability
which the Fund may have to Distributor or any person against
whom such action is brought otherwise than on account of the
Fund's indemnity agreement contained in this Paragraph.
The Fund shall be entitled to participate, at its own
expense, in the defense or, if the Fund so elects, to assume
the defense of any suit brought to enforce such claim but, if
the Fund elects to assume the defense, such defense shall be
conducted by legal counsel chosen by the Fund and
satisfactory to the persons indemnified who are defendants in
the suit. In the event that the Fund elects to assume the
defense of any such suit and retain such legal counsel, the
persons indemnified who are defendants in the suit shall bear
the fees and expenses of any additional legal counsel
retained by them. If the Fund does not elect to assume the
defense of any such suit, the Fund will reimburse the persons
indemnified who are defendants in such suit for the
reasonable fees and expenses of any legal counsel retained by
them in such litigation.
13. Duration and Termination of this Agreement. With
respect to the Fund and the Distributor, this Agreement shall
become effective upon its execution ("Effective Date") and
unless terminated as provided herein, shall remain in effect
through June 30, 1997, and from year to year thereafter, but
only so long as such continuance is specifically approved at
least annually (a) by a vote of majority of the members of
the Board of the Fund who are not interested persons of the
Distributor or of the Fund, voting in person at a meeting
called for the purpose of voting on such approval, and (b) by
the vote of either the Board of the Fund or a majority of the
outstanding shares of the Fund. This Agreement may be
terminated by and between an individual Fund and Distributor
at any time, without the payment of any penalty (a) on 60
days' written notice, by the Board of the Fund or by a vote
of a majority of the outstanding Shares of the Fund, or by
Distributor, or (b) immediately, on written notice by the
Board of the Fund, in the event of termination or suspension
of any of the Registrations. This Agreement will
automatically terminate in the event of its assignment. In
interpreting the provisions of this Paragraph 13, the
definitions contained in Section 2(a) of ICA-40 (particularly
the definitions of "interested person", "assignment", and
"majority of the outstanding shares") shall be applied.
14. Amendment of this Agreement. No provision of this
Agreement may be changed, waived, discharged, or terminated
orally, but only by an instrument in writing signed by each
party against which enforcement of the change, waiver,
discharge, or termination is sought. If the Fund should at
any time deem it necessary or advisable in the best interests
of the Fund that any amendment of this Agreement be made in
order to comply with the recommendations or requirements of
the SEC or any other governmental authority or to obtain any
advantage under state or Federal tax laws and notifies
Distributor of the form of such amendment, and the reasons
therefor, and if Distributor should decline to assent to such
amendment, the Fund may terminate this Agreement forthwith.
If Distributor should at any time request that a change be
made in the Fund's Agreement and Declaration of Trust or By-
Laws or in its methods of doing business, in order to comply
with any requirements of Federal law or regulations of the
SEC, or of a national securities association of which
Distributor is or may be a member, relating to the sale of
Shares, and the Fund should not make such necessary changes
within a reasonable time, Distributor may terminate this
Agreement forthwith.
15. Liability. It is understood and expressly
stipulated that neither the shareholders of the Fund nor the
members of the Board of the Fund shall be personally liable
hereunder. The obligations of the Fund are not personally
binding upon, nor shall resort to the private property of,
any of the members of the Board of the Fund, nor of the
shareholders, officers, employees or agents of the Fund, but
only the Fund's property shall be bound.
16. Miscellaneous. The captions in this Agreement are
included for convenience or reference only, and in no way
define or limit any of the provisions hereof or otherwise
affect their construction or effect. This Agreement may be
executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together
shall constitute one and the same instrument.
17. Notice. Any notice required or permitted to be
given by a party to this Agreement or to any other party
hereunder shall be deemed sufficient if delivered in person
or sent by registered or certified mail, postage prepaid,
addressed by the party giving notice to each such other party
at the address provided below or to the last address
furnished by each such other party to the party giving
notice.
If to the Fund: One South Wacker Drive
Chicago, Illinois 60606
Attn: Secretary
If to Distributor: 600 Atlantic Avenue
Boston, Massachusetts 02210
Attn: Secretary
If to Stein Roe & Farnham
Incorporated: One South Wacker Drive
Chicago, Illinois 60606
Attn: Secretary
LIBERTY SECURITIES CORPORATION
By: TIMOTHY K. ARMOUR
Vice President
ATTEST:
MARJORIE M. PLUSKOTA
Assistant Secretary
STEIN ROE ADVISOR TRUST
By: TIMOTHY K. ARMOUR
Timothy K. Armour
President
ATTEST:
NICOLETTE D. PARRISH
Nicolette D. Parrish
Assistant Secretary
ACKNOWLEDGED BY: STEIN ROE & FARNHAM INCORPORATED
By: HANS P. ZIEGLER
Hans P. Ziegler, Chief Executive Officer
ATTEST:
NICOLETTE D. PARRISH
Nicolette D. Parrish, Assistant Secretary
<PAGE>
EXHIBIT A TO DISTRIBUTION AGREEMENT
BETWEEN THE STEIN ROE ADVISOR TRUST AND
LIBERTY SECURITIES CORPORATION
The series of the Trust covered by this agreement are:
Name of Series Effective Date
- -------------------------------------- -----------------
Stein Roe Advisor Growth & Income Fund February 14, 1997
Stein Roe Advisor International Fund February 14, 1997
Stein Roe Advisor Young Investor Fund February 14, 1997
Stein Roe Advisor Special Venture Fund February 14, 1997
Stein Roe Advisor Balanced Fund February 14, 1997
Stein Roe Advisor Growth Stock Fund February 14, 1997
Stein Roe Advisor Special Fund February 14, 1997
Dated: April 30, 1997
<PAGE>
Date _____________
LIBERTY SECURITIES CORPORATION
STEIN ROE ____ FUND
SELLING AGREEMENT
Dear Sirs:
As the principal underwriter of Stein Roe ____ Fund (the
"Fund"), a series of Stein Roe Advisor Trust (the "Trust"), a
Massachusetts business trust registered under the Investment
Company Act of 1940 as an open-end investment company, we
invite you as agent for your customer to participate in the
distribution of shares of beneficial interest in the Fund
("Shares"), subject to the following terms and conditions:
1. We hereby grant to you the right to make Shares
available to, and to solicit orders to purchase Shares by,
the public, subject to applicable federal and state law, the
Agreement and Declaration of Trust and By-laws of the Trust,
and the current Prospectus and Statement of Additional
Information relating to the Fund attached hereto (the
"Prospectus"). You will forward to us or to the Trust's
transfer agent, as we may direct from time to time, all
orders for the purchase of Shares obtained by you, subject to
such terms and conditions as to the form of payment, minimum
initial and subsequent purchase and otherwise, and in
accordance with such procedures and directions, as we may
specify from time to time. All orders are subject to
acceptance by an authorized officer of the Trust in Chicago
and the Trust reserves the right in its sole discretion to
reject any order. Share purchases are not binding on the
Trust until accepted and entered on the books of the Fund.
No Share purchase shall be effective until payment is
received by the Trust in the form of Federal funds. If a
Share purchase by check is cancelled because the check does
not clear, you will be responsible for any loss to the Fund
or to us resulting therefrom.
2. The public offering price of the Shares shall be the
net asset value per share of the outstanding Shares
determined in accordance with the then current Prospectus.
No sales charge shall apply.
3. As used in this Agreement, the term "Registration
Statement" with regard to the Fund shall mean the
Registration Statement most recently filed by the Trust with
the Securities and Exchange Commission and effective under
the Securities Act of 1933, as such Registration Statement is
amended by any amendments thereto at the time in effect, and
the terms "prospectus" and "statement of additional
information" with regard to the Fund shall mean the form of
prospectus and statement of additional information relating
to the Fund as attached hereto filed by the Trust as part of
the Registration Statement, as such form of prospectus and
statement of additional information may be amended or
supplemented from time to time.
4. You hereby represent that you are and will remain
during the term of this Agreement duly registered as a
broker-dealer under the Securities Exchange Act of 1934 and
under the securities laws of each state where your activities
require such registration, and that you are and will remain
during the term of this Agreement a member in good standing
of the National Association of Securities Dealers, Inc.
("NASD"). In the conduct of your activities hereunder, you
will abide by all applicable rules and regulations of the
NASD, including, without limitation, Rule 26 of the Rules of
Fair Practice of the NASD as in effect form time to time, and
all applicable federal and state securities laws, including
without limitation, the prospectus delivery requirements of
the Securities Act of 1933.
5. This Agreement is subject to the right of the Trust
at any time to withdraw all offerings of the Shares by
written notice to us at our principal office. You
acknowledge that the Trust will not issue certificates
representing Shares.
6. Your obligations under this Agreement are not to be
deemed exclusive, and you shall be free to render similar
services to others so long as your services hereunder are not
impaired thereby.
7. You will sell Shares only to residents of states or
other jurisdictions where we have notified you that the
Shares have been registered or qualified for sale to the
public or are exempt from such qualification or registration.
Neither we nor the Trust will have any obligation to register
or qualify the Shares in any particular jurisdiction. We
shall not be liable or responsible for the issue, form
validity, enforceability or value of the Shares or for any
matter in connection therewith, except lack of good faith on
our part, and no obligation not expressly assumed by us in
this Agreement shall be implied therefrom. Nothing herein
contained, however, shall be deemed to be a condition,
stipulation or provision binding any person acquiring any
Shares to waive compliance with any provision of the
Securities Act of 1933, or to relieve the parties hereto from
any liability arising thereunder.
8. You are not authorized to make any representations
concerning the Fund, the Trust or the Shares except those
contained in the then current prospectus and statement of
additional information relating to the Fund, or printed
information issued by the Trust or by us as information
supplemental to such prospectus and statement of additional
information. We will supply you with a reasonable number of
copies of the then current prospectus and statement of
additional information of the Fund, and reasonable quantities
of any supplemental sales literature, sales bulletins, and
additional information as may be issued by us or the Trust.
You will not use any advertising or sales material relating
to the Fund other than materials supplied by the Trust or us,
unless such other material is approved in writing by us in
advance of such use.
9. You will not have any authority to act as agent for
the Trust, for us or for any other dealer. All transactions
between you and us contemplated by this Agreement shall be as
agents.
10. Either party to this Agreement may terminate this
Agreement by giving written notice to the other. Such notice
shall be deemed to have been given on the date on which it is
either delivered personally to the other party, is mailed
postpaid or delivered by telecopier to the other party at its
address listed below. This Agreement may be amended by us at
any time, and your placing of an order after the effective
date of any such amendment shall constitute your acceptance
thereof.
Liberty Securities Corporation Dealer
600 Atlantic Avenue ________________
Boston, Massachusetts 02210 ________________
Attention: ________________ ________________
Telecopier: _______________
with copy to:
Stein Roe Advisor Trust
One South Wacker Drive
Chicago, Illinois 60606
Attention: Secretary
Telecopier: ________
11. This Agreement constitutes the entire agreement
between you and us relating to the subject matter hereof and
supersedes all prior or written agreements between us. This
Agreement shall be construed in accordance with the laws of
the Commonwealth of Massachusetts and shall be binding upon
both parties hereto when signed by us and accepted by you in
the space provided below.
Very truly yours,
LIBERTY SECURITIES CORPORATION
BY: ____________________
The undersigned hereby accepts your invitation to
participate in the distribution of Shares and agrees to each
of the terms and conditions set forth in this letter.
___________________________
Dealer
Date: ____________________ By: _______________________
(Signature of Officer)
Pay Office of Dealer:
__________________________ ___________________________
Street Address (Print Name of Officer)
__________________________
City/State/Zip
__________________________
Telephone Number
EXHIBIT 8
CUSTODIAN CONTRACT
Between
STEIN ROE ADVISOR TRUST
and
STATE STREET BANK AND TRUST COMPANY
Global/Series/Trust
21E593
<PAGE>
TABLE OF CONTENTS
Page
1. Employment of Custodian and Property to be Held By
It......................................................1
2. Duties of the Custodian with Respect to Property
of the Fund Held by the Custodian in the United
States .................................................2
2.1 Holding Securities.................................2
2.2 Delivery of Securities.............................2
2.3 Registration of Securities.........................4
2.4 Bank Accounts......................................4
2.5 Availability of Federal Funds......................5
2.6 Collection of Income...............................5
2.7 Payment of Fund Monies.............................5
2.8 Liability for Payment in Advance of Receipt of
Securities Purchased...............................6
2.9 Appointment of Agents..............................7
2.10 Deposit of Fund Assets in U.S. Securities
System.............................................7
2.11 Fund Assets Held in the Custodian's Direct
Paper System.......................................8
2.12 Segregated Account.................................9
2.13 Ownership Certificates for Tax Purposes............9
2.14 Proxies...........................................10
2.15 Communications Relating to Portfolio Securities...10
3. Duties of the Custodian with Respect to Property of
the Fund Held Outside of the United States.............10
3.1 Appointment of Foreign Sub-Custodians.............10
3.2 Assets to be Held.................................10
3.3 Foreign Securities Systems........................11
3.4 Holding Securities................................11
3.5 Agreements with Foreign Banking Institutions......11
3.6 Access of Independent Accountants of the Fund.....11
3.7 Reports by Custodian..............................11
3.8 Transactions in Foreign Custody Account...........12
3.9 Liability of Foreign Sub-Custodians...............12
3.10 Liability of Custodian............................12
3.11 Reimbursement for Advances........................12
3.12 Monitoring Responsibilities.......................13
3.13 Branches of U.S. Banks............................13
3.14 Tax Law...........................................14
4. Payments for Sales or Repurchases or Redemptions
of Shares of the Fund..................................14
5. Proper Instructions....................................14
6. Actions Permitted Without Express Authority............15
7. Evidence of Authority..................................15
8 . Duties of Custodian With Respect to the Books of
Account and Calculation of Net Asset Value and Net
Income.................................................15
9. Records................................................16
10. Opinion of Fund's Independent Accountants..............16
11. Reports to Fund by Independent Public Accountants......16
12. Compensation of Custodian..............................16
13. Responsibility of Custodian............................17
14. Effective Period, Termination and Amendment............18
15. Successor Custodian....................................19
16. Interpretive and Additional Provisions.................19
17. Additional Funds.......................................20
18. Massachusetts Law to Apply.............................20
19. Prior Contracts........................................20
20. Reproduction of Documents..............................20
21. Shareholder Communications Election....................20
<PAGE>
CUSTODIAN CONTRACT
This Contract between Stein Roe Advisor Trust, a
business trust organized and existing under the laws of The
Commonwealth of Massachusetts, having its principal place of
business at One South Wacker Drive, Chicago, Illinois 60606
hereinafter called the "Fund", and State Street Bank and
Trust Company, a Massachusetts trust company, having its
principal place of business at 225 Franklin Street, Boston,
Massachusetts, 02110, hereinafter called the "Custodian",
WITNESSETH:
WHEREAS, the Fund is authorized to issue shares in
separate series, with each such series representing interests
in a separate portfolio of securities and other assets; and
WHEREAS, the Fund intends to initially offer shares in
seven series, Stein Roe Advisor Balanced Fund, Stein Roe
Advisor Growth & Income Fund, Stein Roe Advisor Growth Stock
Fund, Stein Roe Advisor Young Investor Fund, Stein Roe
Advisor Special Fund, Stein Roe Advisor Special Venture Fund,
Stein Roe Advisor International Fund (such series together
with all other series subsequently established by the Fund
and made subject to this Contract in accordance with
paragraph 17, being herein referred to as the
"Portfolio(s)");
NOW THEREFORE, in consideration of the mutual covenants
and agreements hereinafter contained, the parties hereto
agree as follows:
1. Employment of Custodian and Property to be Held by It
The Fund hereby employs the Custodian as the custodian
of the assets of the Portfolios of the Fund, including
securities which the Fund, on behalf of the applicable
Portfolio desires to be held in places within the United
States ("domestic securities") and securities it desires to
be held outside the United States ("foreign securities")
pursuant to the provisions of the Declaration of Trust. The
Fund on behalf of the Portfolio(s) agrees to deliver to the
Custodian all securities and cash of the Portfolios, and all
payments of income, payments of principal or capital
distributions received by it with respect to all securities
owned by the Portfolio(s) from time to time, and the cash
consideration received by it for such new or treasury shares
of beneficial interest of the Fund representing interests in
the Portfolios, ("Shares") as may be issued or sold from time
to time. The Custodian shall not be responsible for any
property of a Portfolio held or received by the Portfolio and
not delivered to the Custodian.
Upon receipt of "Proper Instructions" (within the
meaning of Article 5), the Custodian shall on behalf of the
applicable Portfolio(s) from time to time employ one or more
sub-custodians, located in the United States but only in
accordance with an applicable vote by the Board of Trustees
of the Fund on behalf of the applicable Portfolio(s), and
provided that the Custodian shall have no more or less
responsibility or liability to the Fund on account of any
actions or omissions of any sub-custodian so employed than
any such sub-custodian has to the Custodian. The Custodian
may employ as sub-custodian for the Fund's foreign
securities on behalf of the applicable Portfolio(s) the
foreign banking institutions and foreign securities
depositories designated in Schedule A hereto but only in
accordance with the provisions of Article 3.
2. Duties of the Custodian with Respect to Property of the
Fund Held By the Custodian in the United States
2.1 Holding Securities. The Custodian shall hold and
physically segregate for the account of each Portfolio
all non-cash property, to be held by it in the United
States including all domestic securities owned by such
Portfolio, other than (a) securities which are
maintained pursuant to Section 2.10 in a clearing agency
which acts as a securities depository or in a book-entry
system authorized by the U.S. Department of the Treasury
(each, a U.S. Securities System") and (b) commercial
paper of an issuer for which State Street Bank and Trust
Company acts as issuing and paying agent ("Direct
Paper") which is deposited and/or maintained in the
Direct Paper System of the Custodian (the "Direct Paper
System") pursuant to Section 2.11.
2.2 Delivery of Securities. The Custodian shall release and
deliver domestic securities owned by a Portfolio held by
the Custodian or in a U.S. Securities System account of
the Custodian or in the Custodian's Direct Paper book
entry system account ("Direct Paper System Account")
only upon receipt of Proper Instructions from the Fund
on behalf of the applicable Portfolio, which may be
continuing instructions when deemed appropriate by the
parties, and only in the following cases:
1) Upon sale of such securities for the account of the
Portfolio and receipt of payment therefor;
2) Upon the receipt of payment in connection with any
repurchase agreement related to such securities
entered into by the Portfolio;
3) In the case of a sale effected through a U.S.
Securities System, in accordance with the provisions
of Section 2.10 hereof;
4) To the depository agent in connection with tender or
other similar offers for securities of the Portfolio;
5) To the issuer thereof or its agent when such
securities are called, redeemed, retired or otherwise
become payable; provided that, in any such case, the
cash or other consideration is to be delivered to the
Custodian;
6) To the issuer thereof, or its agent, for transfer
into the name of the Portfolio or into the name of
any nominee or nominees of the Custodian or into the
name or nominee name of any agent appointed pursuant
to Section 2.9 or into the name or nominee name of
any sub-custodian appointed pursuant to Article 1; or
for exchange for a different number of bonds,
certificates or other evidence representing the same
aggregate face amount or number of units; provided
that, in any such case, the new securities are to be
delivered to the Custodian;
7) Upon the sale of such securities for the account of
the Portfolio, to the broker or its clearing agent,
against a receipt, for examination in accordance with
"street delivery" custom; provided that in any such
case, the Custodian shall have no responsibility or
liability for any loss arising from the delivery of
such securities prior to receiving payment for such
securities except as may arise from the Custodian's
own negligence or willful misconduct;
8) For exchange or conversion pursuant to any plan of
merger, consolidation, recapitalization,
reorganization or readjustment of the securities of
the issuer of such securities, or pursuant to
provisions for conversion contained in such
securities, or pursuant to any deposit agreement;
provided that, in any such case, the new securities
and cash, if any, are to be delivered to the
Custodian;
9) In the case of warrants, rights or similar
securities, the surrender thereof in the exercise of
such warrants, rights or similar securities or the
surrender of interim receipts or temporary securities
for definitive securities; provided that, in any such
case, the new securities and cash, if any, are to be
delivered to the Custodian;
10) For delivery in connection with any loans of
securities made by the Portfolio, but only against
receipt of adequate collateral as agreed upon from
time to time by the Custodian and the Fund on behalf
of the Portfolio, which may be in the form of cash or
obligations issued by the United States government,
its agencies or instrumentalities, except that in
connection with any loans for which collateral is to
be credited to the Custodian's account in the book-
entry system authorized by the U.S. Department of the
Treasury, the Custodian will not be held liable or
responsible for the delivery of securities owned by
the Portfolio prior to the receipt of such
collateral;
11) For delivery as security in connection with any
borrowings by the Fund on behalf of the Portfolio
requiring a pledge of assets by the Fund on behalf
of the Portfolio, but only against receipt of amounts
borrowed;
12) For delivery in accordance with the provisions of any
agreement among the Fund on behalf of the Portfolio,
the Custodian and a broker-dealer registered under
the Securities Exchange Act of 1934 (the "Exchange
Act") and a member of The National Association of
Securities Dealers, Inc. ("NASD"), relating to
compliance with the rules of The Options Clearing
Corporation and of any registered national securities
exchange, or of any similar organization or
organizations, regarding escrow or other arrangements
in connection with transactions by the Portfolio of
the Fund;
13) For delivery in accordance with the provisions of any
agreement among the Fund on behalf of the Portfolio,
the Custodian, and a Futures Commission Merchant
registered under the Commodity Exchange Act, relating
to compliance with the rules of the Commodity Futures
Trading Commission and/or any Contract Market, or any
similar organization or organizations, regarding
account deposits in connection with transactions by
the Portfolio of the Fund;
14) Upon receipt of instructions from the transfer agent
("Transfer Agent") for the Fund, for delivery to
such Transfer Agent or to the holders of shares in
connection with distributions in kind, as may be
described from time to time in the currently
effective prospectus and statement of additional
information of the Fund, related to the Portfolio
("Prospectus"), in satisfaction of requests by
holders of Shares for repurchase or redemption; and
15) For any other proper corporate purpose, but only upon
receipt of, in addition to Proper Instructions from
the Fund on behalf of the applicable Portfolio, a
certified copy of a resolution of the Board of
Trustees or of the Executive Committee signed by an
officer of the Fund and certified by the Secretary
or an Assistant Secretary, specifying the securities
of the Portfolio to be delivered, setting forth the
purpose for which such delivery is to be made,
declaring such purpose to be a proper corporate
purpose, and naming the person or persons to whom
delivery of such securities shall be made.
2.3 Registration of Securities. Domestic securities held by
the Custodian (other than bearer securities) shall be
registered in the name of the Portfolio or in the name
of any nominee of the Fund on behalf of the Portfolio
or of any nominee of the Custodian which nominee shall
be assigned exclusively to the Portfolio, unless the
Fund has authorized in writing the appointment of a
nominee to be used in common with other registered
investment companies having the same investment adviser
as the Portfolio, or in the name or nominee name of any
agent appointed pursuant to Section 2.9 or in the name
or nominee name of any sub-custodian appointed pursuant
to Article 1. All securities accepted by the Custodian
on behalf of the Portfolio under the terms of this
Contract shall be in "street name" or other good
delivery form. If, however, the Fund directs the
Custodian to maintain securities in "street name", the
Custodian shall utilize its best efforts only to timely
collect income due the Fund on such securities and to
notify the Fund on a best efforts basis only of
relevant corporate actions including, without
limitation, pendency of calls, maturities, tender or
exchange offers.
2.4 Bank Accounts. The Custodian shall open and maintain a
separate bank account or accounts in the United States
in the name of each Portfolio of the Fund, subject only
to draft or order by the Custodian acting pursuant to
the terms of this Contract, and shall hold in such
account or accounts, subject to the provisions hereof,
all cash received by it from or for the account of the
Portfolio, other than cash maintained by the Portfolio
in a bank account established and used in accordance
with Rule 17f-3 under the Investment Company Act of
1940. Funds held by the Custodian for a Portfolio may
be deposited by it to its credit as Custodian in the
Banking Department of the Custodian or in such other
banks or trust companies as it may in its discretion
deem necessary or desirable; provided, however, that
every such bank or trust company shall be qualified to
act as a custodian under the Investment Company Act of
1940 and that each such bank or trust company and the
funds to be deposited with each such bank or trust
company shall on behalf of each applicable Portfolio be
approved by vote of a majority of the Board of Trustees
of the Fund. Such funds shall be deposited by the
Custodian in its capacity as Custodian and shall be
withdrawable by the Custodian only in that capacity.
2.5 Availability of Federal Funds. Upon mutual agreement
between the Fund on behalf of each applicable Portfolio
and the Custodian, the Custodian shall, upon the receipt
of Proper Instructions from the Fund on behalf of a
Portfolio, make federal funds available to such
Portfolio as of specified times agreed upon from time to
time by the Fund and the Custodian in the amount of
checks received in payment for Shares of such Portfolio
which are deposited into the Portfolio's account.
2.6 Collection of Income. Subject to the provisions of
Section 2.3, the Custodian shall collect on a timely
basis all income and other payments with respect to
registered domestic securities held hereunder to which
each Portfolio shall be entitled either by law or
pursuant to custom in the securities business, and shall
collect on a timely basis all income and other payments
with respect to bearer domestic securities if, on the
date of payment by the issuer, such securities are held
by the Custodian or its agent thereof and shall credit
such income, as collected, to such Portfolio's custodian
account. Without limiting the generality of the
foregoing, the Custodian shall detach and present for
payment all coupons and other income items requiring
presentation as and when they become due and shall
collect interest when due on securities held hereunder.
Income due each Portfolio on securities loaned pursuant
to the provisions of Section 2.2 (10) shall be the
responsibility of the Fund. The Custodian will have no
duty or responsibility in connection therewith, other
than to provide the Fund with such information or data
as may be necessary to assist the Fund in arranging for
the timely delivery to the Custodian of the income to
which the Portfolio is properly entitled.
2.7 Payment of Fund Monies. Upon receipt of Proper
Instructions from the Fund on behalf of the applicable
Portfolio, which may be continuing instructions when
deemed appropriate by the parties, the Custodian shall
pay out monies of a Portfolio in the following cases
only:
1) Upon the purchase of domestic securities, options,
futures contracts or options on futures contracts for
the account of the Portfolio but only (a) against the
delivery of such securities or evidence of title to
such options, futures contracts or options on futures
contracts to the Custodian (or any bank, banking firm
or trust company doing business in the United States
or abroad which is qualified under the Investment
Company Act of 1940, as amended, to act as a
custodian and has been designated by the Custodian as
its agent for this purpose) registered in the name of
the Portfolio or in the name of a nominee of the
Custodian referred to in Section 2.3 hereof or in
proper form for transfer; (b) in the case of a
purchase effected through a U.S. Securities System,
in accordance with the conditions set forth in
Section 2.10 hereof; (c) in the case of a purchase
involving the Direct Paper System, in accordance with
the conditions set forth in Section 2.11; (d) in the
case of repurchase agreements entered into between
the Fund on behalf of the Portfolio and the
Custodian, or another bank, or a broker-dealer which
is a member of NASD, (i) against delivery of the
securities either in certificate form or through an
entry crediting the Custodian's account at the
Federal Reserve Bank with such securities or (ii)
against delivery of the receipt evidencing purchase
by the Portfolio of securities owned by the Custodian
along with written evidence of the agreement by the
Custodian to repurchase such securities from the
Portfolio or (e) for transfer to a time deposit
account of the Fund in any bank, whether domestic or
foreign; such transfer may be effected prior to
receipt of a confirmation from a broker and/or the
applicable bank pursuant to Proper Instructions from
the Fund as defined in Article 5;
2) In connection with conversion, exchange or surrender
of securities owned by the Portfolio as set forth in
Section 2.2 hereof;
3) For the redemption or repurchase of Shares issued by
the Portfolio as set forth in Article 4 hereof;
4) For the payment of any expense or liability incurred
by the Portfolio, including but not limited to the
following payments for the account of the Portfolio:
interest, taxes, management, accounting, transfer
agent and legal fees, and operating expenses of the
Fund whether or not such expenses are to be in whole
or part capitalized or treated as deferred expenses;
5) For the payment of any dividends on Shares of the
Portfolio declared pursuant to the governing
documents of the Fund;
6) For payment of the amount of dividends received in
respect of securities sold short;
7) For any other proper purpose, but only upon receipt
of, in addition to Proper Instructions from the Fund
on behalf of the Portfolio, a certified copy of a
resolution of the Board of Trustees or of the
Executive Committee of the Fund signed by an officer
of the Fund and certified by its Secretary or an
Assistant Secretary, specifying the amount of such
payment, setting forth the purpose for which such
payment is to be made, declaring such purpose to be a
proper purpose, and naming the person or persons to
whom such payment is to be made.
2.8 Liability for Payment in Advance of Receipt of
Securities Purchased. Except as specifically stated
otherwise in this Contract, in any and every case where
payment for purchase of domestic securities for the
account of a Portfolio is made by the Custodian in
advance of receipt of the securities purchased in the
absence of specific written instructions from the Fund
on behalf of such Portfolio to so pay in advance, the
Custodian shall be absolutely liable to the Fund for
such securities to the same extent as if the securities
had been received by the Custodian.
2.9 Appointment of Agents. The Custodian may at any time or
times in its discretion appoint (and may at any time
remove) any other bank or trust company which is itself
qualified under the Investment Company Act of 1940, as
amended, to act as a custodian, as its agent to carry
out such of the provisions of this Article 2 as the
Custodian may from time to time direct; provided,
however, that the appointment of any agent shall not
relieve the Custodian of its responsibilities or
liabilities hereunder.
2.10 Deposit of Fund Assets in U.S. Securities Systems.
The Custodian may deposit and/or maintain securities
owned by a Portfolio in a clearing agency registered
with the Securities and Exchange Commission under
Section 17A of the Securities Exchange Act of 1934,
which acts as a securities depository, or in the book-
entry system authorized by the U.S. Department of the
Treasury and certain federal agencies, collectively
referred to herein as "U.S. Securities System" in
accordance with applicable Federal Reserve Board and
Securities and Exchange Commission rules and
regulations, if any, and subject to the following
provisions:
1) The Custodian may keep securities of the Portfolio in
a U.S. Securities System provided that such
securities are represented in an account ("Account")
of the Custodian in the U.S. Securities System which
shall not include any assets of the Custodian other
than assets held as a fiduciary, custodian or
otherwise for customers;
2) The records of the Custodian with respect to
securities of the Portfolio which are maintained in a
U.S. Securities System shall identify by book-entry
those securities belonging to the Portfolio;
3) The Custodian shall pay for securities purchased for
the account of the Portfolio upon (i) receipt of
advice from the U.S. Securities System that such
securities have been transferred to the Account, and
(ii) the making of an entry on the records of the
Custodian to reflect such payment and transfer for
the account of the Portfolio. The Custodian shall
transfer securities sold for the account of the
Portfolio upon (i) receipt of advice from the U.S.
Securities System that payment for such securities
has been transferred to the Account, and (ii) the
making of an entry on the records of the Custodian to
reflect such transfer and payment for the account of
the Portfolio. Copies of all advices from the U.S.
Securities System of transfers of securities for the
account of the Portfolio shall identify the
Portfolio, be maintained for the Portfolio by the
Custodian and be provided to the Fund at its
request. Upon request, the Custodian shall furnish
the Fund on behalf of the Portfolio confirmation of
each transfer to or from the account of the Portfolio
in the form of a written advice or notice and shall
furnish to the Fund on behalf of the Portfolio
copies of daily transaction sheets reflecting each
day's transactions in the U.S. Securities System for
the account of the Portfolio;
4) The Custodian shall provide the Fund for the
Portfolio with any report obtained by the Custodian
on the U.S. Securities System's accounting system,
internal accounting control and procedures for
safeguarding securities deposited in the U.S.
Securities System;
5) The Custodian shall have received from the Fund on
behalf of the Portfolio the initial or annual
certificate, as the case may be, required by Article
14 hereof;
6) Anything to the contrary in this Contract
notwithstanding, the Custodian shall be liable to the
Fund for the benefit of the Portfolio for any loss
or damage to the Portfolio resulting from use of the
U.S. Securities System by reason of any negligence,
misfeasance or misconduct of the Custodian or any of
its agents or of any of its or their employees or
from failure of the Custodian or any such agent to
enforce effectively such rights as it may have
against the U.S. Securities System; at the election
of the Fund, it shall be entitled to be subrogated
to the rights of the Custodian with respect to any
claim against the U.S. Securities System or any other
person which the Custodian may have as a consequence
of any such loss or damage if and to the extent that
the Portfolio has not been made whole for any such
loss or damage.
2.11 Fund Assets Held in the Custodian's Direct Paper
System. The Custodian may deposit and/or maintain
securities owned by a Portfolio in the Direct Paper
System of the Custodian subject to the following
provisions:
1) No transaction relating to securities in the Direct
Paper System will be effected in the absence of
Proper Instructions from the Fund on behalf of the
Portfolio;
2) The Custodian may keep securities of the Portfolio in
the Direct Paper System only if such securities are
represented in an account ("Account") of the
Custodian in the Direct Paper System which shall not
include any assets of the Custodian other than assets
held as a fiduciary, custodian or otherwise for
customers;
3) The records of the Custodian with respect to
securities of the Portfolio which are maintained in
the Direct Paper System shall identify by book-entry
those securities belonging to the Portfolio;
4) The Custodian shall pay for securities purchased for
the account of the Portfolio upon the making of an
entry on the records of the Custodian to reflect such
payment and transfer of securities to the account of
the Portfolio. The Custodian shall transfer
securities sold for the account of the Portfolio upon
the making of an entry on the records of the
Custodian to reflect such transfer and receipt of
payment for the account of the Portfolio;
5) The Custodian shall furnish the Fund on behalf of
the Portfolio confirmation of each transfer to or
from the account of the Portfolio, in the form of a
written advice or notice, of Direct Paper on the next
business day following such transfer and shall
furnish to the Fund on behalf of the Portfolio
copies of daily transaction sheets reflecting each
day's transaction in the U.S. Securities System for
the account of the Portfolio;
6) The Custodian shall provide the Fund on behalf of
the Portfolio with any report on its system of
internal accounting control as the Fund may
reasonably request from time to time.
2.12 Segregated Account. The Custodian shall upon receipt
of Proper Instructions from the Fund on behalf of each
applicable Portfolio establish and maintain a segregated
account or accounts for and on behalf of each such
Portfolio, into which account or accounts may be
transferred cash and/or securities, including securities
maintained in an account by the Custodian pursuant to
Section 2.10 hereof, (i) in accordance with the
provisions of any agreement among the Fund on behalf of
the Portfolio, the Custodian and a broker-dealer
registered under the Exchange Act and a member of the
NASD (or any futures commission merchant registered
under the Commodity Exchange Act), relating to
compliance with the rules of The Options Clearing
Corporation and of any registered national securities
exchange (or the Commodity Futures Trading Commission or
any registered contract market), or of any similar
organization or organizations, regarding escrow or other
arrangements in connection with transactions by the
Portfolio, (ii) for purposes of segregating cash or
government securities in connection with options
purchased, sold or written by the Portfolio or commodity
futures contracts or options thereon purchased or sold
by the Portfolio, (iii) for the purposes of compliance
by the Portfolio with the procedures required by
Investment Company Act Release No. 10666, or any
subsequent release or releases of the Securities and
Exchange Commission relating to the maintenance of
segregated accounts by registered investment companies
and (iv) for other proper corporate purposes, but only,
in the case of clause (iv), upon receipt of, in addition
to Proper Instructions from the Fund on behalf of the
applicable Portfolio, a certified copy of a resolution
of the Board of Trustees or of the Executive Committee
signed by an officer of the Fund and certified by the
Secretary or an Assistant Secretary, setting forth the
purpose or purposes of such segregated account and
declaring such purposes to be proper corporate purposes.
2.13 Ownership Certificates for Tax Purposes. The Custodian
shall execute ownership and other certificates and
affidavits for all federal and state tax purposes in
connection with receipt of income or other payments with
respect to domestic securities of each Portfolio held by
it and in connection with transfers of securities.
2.14 Proxies. The Custodian shall, with respect to the
domestic securities held hereunder, cause to be promptly
executed by the registered holder of such securities, if
the securities are registered otherwise than in the name
of the Portfolio or a nominee of the Portfolio, all
proxies, without indication of the manner in which such
proxies are to be voted, and shall promptly deliver to
the Portfolio such proxies, all proxy soliciting
materials and all notices relating to such securities.
2.15 Communications Relating to Portfolio Securities.
Subject to the provisions of Section 2.3, the Custodian
shall transmit promptly to the Fund for each Portfolio
all written information (including, without limitation,
pendency of calls and maturities of domestic securities
and expirations of rights in connection therewith and
notices of exercise of call and put options written by
the Fund on behalf of the Portfolio and the maturity of
futures contracts purchased or sold by the Portfolio)
received by the Custodian from issuers of the securities
being held for the Portfolio. With respect to tender or
exchange offers, the Custodian shall transmit promptly
to the Portfolio all written information received by the
Custodian from issuers of the securities whose tender or
exchange is sought and from the party (or his agents)
making the tender or exchange offer. If the Portfolio
desires to take action with respect to any tender offer,
exchange offer or any other similar transaction, the
Portfolio shall notify the Custodian at least three
business days prior to the date on which the Custodian
is to take such action.
3. Duties of the Custodian with Respect to Property of the
Fund Held Outside of the United States
3.1 Appointment of Foreign Sub-Custodians. The Fund hereby
authorizes and instructs the Custodian to employ as sub-
custodians for the Portfolio's securities and other
assets maintained outside the United States the foreign
banking institutions and foreign securities depositories
designated on Schedule A hereto ("foreign sub-
custodians"). Upon receipt of "Proper Instructions", as
defined in Section 5 of this Contract, together with a
certified resolution of the Fund's Board of Trustees,
the Custodian and the Fund may agree to amend Schedule
A hereto from time to time to designate additional
foreign banking institutions and foreign securities
depositories to act as sub-custodian. Upon receipt of
Proper Instructions, the Fund may instruct the
Custodian to cease the employment of any one or more
such sub-custodians for maintaining custody of the
Portfolio's assets.
3.2 Assets to be Held. The Custodian shall limit the
securities and other assets maintained in the custody of
the foreign sub-custodians to: (a) "foreign
securities", as defined in paragraph (c)(1) of Rule 17f-
5 under the Investment Company Act of 1940, and (b) cash
and cash equivalents in such amounts as the Custodian
or the Fund may determine to be reasonably necessary to
effect the Portfolio's foreign securities transactions.
The Custodian shall identify on its books as belonging
to the Fund, the foreign securities of the Fund held
by each foreign sub-custodian.
3.3 Foreign Securities Systems. Except as may otherwise be
agreed upon in writing by the Custodian and the Fund,
assets of the Portfolios shall be maintained in a
clearing agency which acts as a securities depository or
in a book-entry system for the central handling of
securities located outside the United States (each a
"Foreign Securities System") only through arrangements
implemented by the foreign banking institutions serving
as sub-custodians pursuant to the terms hereof (Foreign
Securities Systems and U.S. Securities Systems are
collectively referred to herein as the "Securities
Systems"). Where possible, such arrangements shall
include entry into agreements containing the provisions
set forth in Section 3.5 hereof.
3.4 Holding Securities. The Custodian may hold securities
and other non-cash property for all of its customers,
including the Fund, with a Foreign Sub-custodian in a
single account that is identified as belonging to the
Custodian for the benefit of its customers, provided
however, that (i) the records of the Custodian with
respect to securities and other non-cash property of the
Fund which are maintained in such account shall
identify by book-entry those securities and other non-
cash property belonging to the Fund and (ii) the
Custodian shall require that securities and other non-
cash property so held by the foreign sub-custodian be
held separately from any assets of the foreign sub-
custodian or of others.
3.5 Agreements with Foreign Banking Institutions. Each
agreement with a foreign banking institution shall
provide that: (a) the assets of each Portfolio will not
be subject to any right, charge, security interest, lien
or claim of any kind in favor of the foreign banking
institution or its creditors or agent, except a claim of
payment for their safe custody or administration; (b)
beneficial ownership for the assets of each Portfolio
will be freely transferable without the payment of money
or value other than for custody or administration; (c)
adequate records will be maintained identifying the
assets as belonging to each applicable Portfolio; (d)
officers of or auditors employed by, or other
representatives of the Custodian, including to the
extent permitted under applicable law the independent
public accountants for the Fund, will be given access
to the books and records of the foreign banking
institution relating to its actions under its agreement
with the Custodian; and (e) assets of the Portfolios
held by the foreign sub-custodian will be subject only
to the instructions of the Custodian or its agents.
3.6 Access of Independent Accountants of the Fund. Upon
request of the Fund, the Custodian will use its best
efforts to arrange for the independent accountants of
the Fund to be afforded access to the books and records
of any foreign banking institution employed as a foreign
sub-custodian insofar as such books and records relate
to the performance of such foreign banking institution
under its agreement with the Custodian.
3.7 Reports by Custodian. The Custodian will supply to the
Fund from time to time, as mutually agreed upon,
statements in respect of the securities and other assets
of the Portfolio(s) held by foreign sub-custodians,
including but not limited to an identification of
entities having possession of the Portfolio(s)
securities and other assets and advices or notifications
of any transfers of securities to or from each custodial
account maintained by a foreign banking institution for
the Custodian on behalf of each applicable Portfolio
indicating, as to securities acquired for a Portfolio,
the identity of the entity having physical possession of
such securities.
3.8 Transactions in Foreign Custody Account. (a) Except as
otherwise provided in paragraph (b) of this Section 3.8,
the provision of Sections 2.2 and 2.7 of this Contract
shall apply, mutatis mutandis to the foreign securities
of the Fund held outside the United States by foreign
sub-custodians.
(b) Notwithstanding any provision of this Contract to
the contrary, settlement and payment for securities
received for the account of each applicable Portfolio
and delivery of securities maintained for the account of
each applicable Portfolio may be effected in accordance
with the customary established securities trading or
securities processing practices and procedures in the
jurisdiction or market in which the transaction occurs,
including, without limitation, delivering securities to
the purchaser thereof or to a dealer therefor (or an
agent for such purchaser or dealer) against a receipt
with the expectation of receiving later payment for such
securities from such purchaser or dealer.
(c) Securities maintained in the custody of a foreign
sub-custodian may be maintained in the name of such
entity's nominee to the same extent as set forth in
Section 2.3 of this Contract, and the Fund agrees to
hold any such nominee harmless from any liability as a
holder of record of such securities.
3.9 Liability of Foreign Sub-Custodians. Each agreement
pursuant to which the Custodian employs a foreign
banking institution as a foreign sub-custodian shall
require the institution to exercise reasonable care in
the performance of its duties and to indemnify, and hold
harmless, the Custodian and the Fund from and against
any loss, damage, cost, expense, liability or claim
arising out of or in connection with the institution's
performance of such obligations. At the election of the
Fund, it shall be entitled to be subrogated to the
rights of the Custodian with respect to any claims
against a foreign banking institution as a consequence
of any such loss, damage, cost, expense, liability or
claim if and to the extent that the Fund has not been
made whole for any such loss, damage, cost, expense,
liability or claim.
3.10 Liability of Custodian. The Custodian shall be liable
for the acts or omissions of a foreign banking
institution to the same extent as set forth with respect
to sub-custodians generally in this Contract and,
regardless of whether assets are maintained in the
custody of a foreign banking institution, a foreign
securities depository or a branch of a U.S. bank as
contemplated by paragraph 3.13 hereof, the Custodian
shall not be liable for any loss, damage, cost, expense,
liability or claim resulting from nationalization,
expropriation, currency restrictions, or acts of war or
terrorism or any loss where the sub-custodian has
otherwise exercised reasonable care. Notwithstanding
the foregoing provisions of this paragraph 3.10, in
delegating custody duties to State Street London Ltd.,
the Custodian shall not be relieved of any
responsibility to the Fund for any loss due to such
delegation, except such loss as may result from (a)
political risk (including, but not limited to, exchange
control restrictions, confiscation, expropriation,
nationalization, insurrection, civil strife or armed
hostilities) or (b) other losses (excluding a bankruptcy
or insolvency of State Street London Ltd. not caused by
political risk) due to Acts of God, nuclear incident or
other losses under circumstances where the Custodian and
State Street London Ltd. have exercised reasonable care.
3.11 Reimbursement for Advances. If the Fund requires the
Custodian to advance cash or securities for any purpose
for the benefit of a Portfolio including the purchase or
sale of foreign exchange or of contracts for foreign
exchange, or in the event that the Custodian or its
nominee shall incur or be assessed any taxes, charges,
expenses, assessments, claims or liabilities in
connection with the performance of this Contract, except
such as may arise from its or its nominee's own
negligent action, negligent failure to act or willful
misconduct, any property at any time held for the
account of the applicable Portfolio shall be security
therefor and should the Fund fail to repay the
Custodian promptly, the Custodian shall be entitled to
utilize available cash and to dispose of such
Portfolio's assets to the extent necessary to obtain
reimbursement.
3.12 Monitoring Responsibilities. The Custodian shall
furnish annually to the Fund, during the month of June,
information concerning the foreign sub-custodians
employed by the Custodian. Such information shall be
similar in kind and scope to that furnished to the Fund
in connection with the initial approval of this
Contract. In addition, the Custodian will promptly
inform the Fund in the event that the Custodian learns
of a material adverse change in the financial condition
of a foreign sub-custodian or any material loss of the
assets of the Fund or in the case of any foreign sub-
custodian not the subject of an exemptive order from the
Securities and Exchange Commission is notified by such
foreign sub-custodian that there appears to be a
substantial likelihood that its shareholders' equity
will decline below $200 million (U.S. dollars or the
equivalent thereof) or that its shareholders' equity has
declined below $200 million (in each case computed in
accordance with generally accepted U.S. accounting
principles).
3.13 Branches of U.S. Banks. (a) Except as otherwise set
forth in this Contract, the provisions hereof shall not
apply where the custody of the Portfolios assets are
maintained in a foreign branch of a banking institution
which is a "bank" as defined by Section 2(a)(5) of the
Investment Company Act of 1940 meeting the qualification
set forth in Section 26(a) of said Act. The appointment
of any such branch as a sub-custodian shall be governed
by paragraph 1 of this Contract.
(b) Cash held for each Portfolio of the Fund in the
United Kingdom shall be maintained in an interest
bearing account established for the Fund with the
Custodian's London branch, which account shall be
subject to the direction of the Custodian, State Street
London Ltd. or both.
3.14 Tax Law. The Custodian shall have no responsibility or
liability for any obligations now or hereafter imposed
on the Fund or the Custodian as custodian of the Fund
by the tax law of the United States of America or any
state or political subdivision thereof. It shall be the
responsibility of the Fund to notify the Custodian of
the obligations imposed on the Fund or the Custodian as
custodian of the Fund by the tax law of jurisdictions
other than those mentioned in the above sentence,
including responsibility for withholding and other
taxes, assessments or other governmental charges,
certifications and governmental reporting. The sole
responsibility of the Custodian with regard to such tax
law shall be to use reasonable efforts to assist the
Fund with respect to any claim for exemption or refund
under the tax law of jurisdictions for which the Fund
has provided such information.
4. Payments for Sales or Repurchases or Redemptions of
Shares of the Fund
The Custodian shall receive from the distributor for the
Shares or from the Transfer Agent of the Fund and deposit
into the account of the appropriate Portfolio such payments
as are received for Shares of that Portfolio issued or sold
from time to time by the Fund. The Custodian will provide
timely notification to the Fund on behalf of each such
Portfolio and the Transfer Agent of any receipt by it of
payments for Shares of such Portfolio.
From such funds as may be available for the purpose but
subject to the limitations of the Declaration of Trust and
any applicable votes of the Board of Trustees of the Fund
pursuant thereto, the Custodian shall, upon receipt of
instructions from the Transfer Agent, make funds available
for payment to holders of Shares who have delivered to the
Transfer Agent a request for redemption or repurchase of
their Shares. In connection with the redemption or
repurchase of Shares of a Portfolio, the Custodian is
authorized upon receipt of instructions from the Transfer
Agent to wire funds to or through a commercial bank
designated by the redeeming shareholders. In connection with
the redemption or repurchase of Shares of the Fund, the
Custodian shall honor checks drawn on the Custodian by a
holder of Shares, which checks have been furnished by the
Fund to the holder of Shares, when presented to the
Custodian in accordance with such procedures and controls as
are mutually agreed upon from time to time between the Fund
and the Custodian.
5. Proper Instructions
Proper Instructions as used throughout this Contract
means a writing signed or initialled by one or more person or
persons as the Board of Trustees shall have from time to time
authorized. Each such writing shall set forth the specific
transaction or type of transaction involved, including a
specific statement of the purpose for which such action is
requested. Oral instructions will be considered Proper
Instructions if the Custodian reasonably believes them to
have been given by a person authorized to give such
instructions with respect to the transaction involved. The
Fund shall cause all oral instructions to be confirmed in
writing. Upon receipt of a certificate of the Secretary or
an Assistant Secretary as to the authorization by the Board
of Trustees of the Trust accompanied by a detailed
description of procedures approved by the Board of Trustees,
Proper Instructions may include communications effected
directly between electro-mechanical or electronic devices
provided that the Board of Trustees and the Custodian are
satisfied that such procedures afford adequate safeguards for
the Portfolios' assets. For purposes of this Section, Proper
Instructions shall include instructions received by the
Custodian pursuant to any three-party agreement which
requires a segregated asset account in accordance with
Section 2.12.
6. Actions Permitted without Express Authority
The Custodian may in its discretion, without express
authority from the Fund on behalf of each applicable
Portfolio:
1) make payments to itself or others for minor expenses
of handling securities or other similar items
relating to its duties under this Contract, provided
that all such payments shall be accounted for to the
Fund on behalf of the Portfolio;
2) surrender securities in temporary form for securities
in definitive form;
3) endorse for collection, in the name of the Portfolio,
checks, drafts and other negotiable instruments; and
4) in general, attend to all non-discretionary details
in connection with the sale, exchange, substitution,
purchase, transfer and other dealings with the
securities and property of the Portfolio except as
otherwise directed by the Board of Trustees of the
Fund.
7. Evidence of Authority
The Custodian shall be protected in acting upon any
instructions, notice, request, consent, certificate or other
instrument or paper believed by it to be genuine and to have
been properly executed by or on behalf of the Fund. The
Custodian may receive and accept a certified copy of a vote
of the Board of Trustees of the Trust as conclusive evidence
(a) of the authority of any person to act in accordance with
such vote or (b) of any determination or of any action by the
Board of Trustees pursuant to the Declaration of Trust as
described in such vote, and such vote may be considered as
in full force and effect until receipt by the Custodian of
written notice to the contrary.
8. Duties of Custodian with Respect to the Books of Account
and Calculation of Net Asset Value and Net Income
The Custodian shall cooperate with and supply necessary
information to the entity or entities appointed by the Board
of Trustees of the Fund to keep the books of account of each
Portfolio and/or compute the net asset value per share of the
outstanding shares of each Portfolio or, if directed in
writing to do so by the Fund on behalf of the Portfolio,
shall itself keep such books of account and/or compute such
net asset value per share. If so directed, the Custodian
shall also calculate daily the net income of the Portfolio as
described in the Fund's currently effective prospectus
related to such Portfolio and shall advise the Fund and the
Transfer Agent daily of the total amounts of such net income
and, if instructed in writing by an officer of the Fund to
do so, shall advise the Transfer Agent periodically of the
division of such net income among its various components.
The calculations of the net asset value per share and the
daily income of each Portfolio shall be made at the time or
times described from time to time in the Fund's currently
effective prospectus related to such Portfolio.
9. Records
The Custodian shall with respect to each Portfolio
create and maintain all records relating to its activities
and obligations under this Contract in such manner as will
meet the obligations of the Fund under the Investment
Company Act of 1940, with particular attention to Section 31
thereof and Rules 31a-1 and 31a-2 thereunder. All such
records shall be the property of the Fund and shall at all
times during the regular business hours of the Custodian be
open for inspection by duly authorized officers, employees or
agents of the Fund and employees and agents of the
Securities and Exchange Commission. The Custodian shall, at
the Fund's request, supply the Fund with a tabulation of
securities owned by each Portfolio and held by the Custodian
and shall, when requested to do so by the Fund and for such
compensation as shall be agreed upon between the Fund and
the Custodian, include certificate numbers in such
tabulations.
10. Opinion of Fund's Independent Accountant
The Custodian shall take all reasonable action, as the
Fund on behalf of each applicable Portfolio may from time to
time request, to obtain from year to year favorable opinions
from the Fund's independent accountants with respect to its
activities hereunder in connection with the preparation of
the Fund's Form N-1A, and Form N-SAR or other annual reports
to the Securities and Exchange Commission and with respect to
any other requirements of such Commission.
11. Reports to Fund by Independent Public Accountants
The Custodian shall provide the Fund, on behalf of each
of the Portfolios at such times as the Fund may reasonably
require, with reports by independent public accountants on
the accounting system, internal accounting control and
procedures for safeguarding securities, futures contracts and
options on futures contracts, including securities deposited
and/or maintained in a Securities System, relating to the
services provided by the Custodian under this Contract; such
reports, shall be of sufficient scope and in sufficient
detail, as may reasonably be required by the Fund to provide
reasonable assurance that any material inadequacies would be
disclosed by such examination, and, if there are no such
inadequacies, the reports shall so state.
12. Compensation of Custodian
The Custodian shall be entitled to reasonable
compensation for its services and expenses as Custodian, as
agreed upon from time to time between the Fund on behalf of
each applicable Portfolio and the Custodian.
13. Responsibility of Custodian
So long as and to the extent that it is in the exercise
of reasonable care, the Custodian shall not be responsible
for the title, validity or genuineness of any property or
evidence of title thereto received by it or delivered by it
pursuant to this Contract and shall be held harmless in
acting upon any notice, request, consent, certificate or
other instrument reasonably believed by it to be genuine and
to be signed by the proper party or parties, including any
futures commission merchant acting pursuant to the terms of a
three-party futures or options agreement. The Custodian
shall be held to the exercise of reasonable care in carrying
out the provisions of this Contract, but shall be kept
indemnified by and shall be without liability to the Fund
for any action taken or omitted by it in good faith without
negligence. It shall be entitled to rely on and may act upon
advice of counsel (who may be counsel for the Fund) on all
matters, and shall be without liability for any action
reasonably taken or omitted pursuant to such advice.
Except as may arise from the Custodian's own negligence
or willful misconduct or the negligence or willful misconduct
of a sub-custodian or agent, the Custodian shall be without
liability to the Fund for any loss, liability, claim or
expense resulting from or caused by; (i) events or
circumstances beyond the reasonable control of the Custodian
or any sub-custodian or Securities System or any agent or
nominee of any of the foregoing, including, without
limitation, nationalization or expropriation, imposition of
currency controls or restrictions, the interruption,
suspension or restriction of trading on or the closure of any
securities market, power or other mechanical or technological
failures or interruptions, computer viruses or communications
disruptions, acts of war or terrorism, riots, revolutions,
work stoppages, natural disasters or other similar events or
acts; (ii) errors by the Fund or the Investment Advisor in
their instructions to the Custodian provided such
instructions have been in accordance with this Contract;
(iii) the insolvency of or acts or omissions by a Securities
System; (iv) any delay or failure of any broker, agent or
intermediary, central bank or other commercially prevalent
payment or clearing system to deliver to the Custodian's sub-
custodian or agent securities purchased or in the remittance
or payment made in connection with securities sold; (v) any
delay or failure of any company, corporation, or other body
in charge of registering or transferring securities in the
name of the Custodian, the Fund, the Custodian's sub-
custodians, nominees or agents or any consequential losses
arising out of such delay or failure to transfer such
securities including non-receipt of bonus, dividends and
rights and other accretions or benefits; (vi) delays or
inability to perform its duties due to any disorder in market
infrastructure with respect to any particular security or
Securities System; and (vii) any provision of any present or
future law or regulation or order of the United States of
America, or any state thereof, or any other country, or
political subdivision thereof or of any court of competent
jurisdiction.
The Custodian shall be liable for the acts or omissions
of a foreign banking institution to the same extent as set
forth with respect to sub-custodians generally in this
Contract.
If the Fund on behalf of a Portfolio requires the
Custodian to take any action with respect to securities,
which action involves the payment of money or which action
may, in the opinion of the Custodian, result in the Custodian
or its nominee assigned to the Fund being liable for the
payment of money or incurring liability of some other form,
the Fund, as a prerequisite to requiring the Custodian to
take such action, shall provide indemnity to the Custodian in
an amount and form satisfactory to it.
If the Fund requires the Custodian, its affiliates,
subsidiaries or agents, to advance cash or securities for any
purpose (including but not limited to securities settlements,
foreign exchange contracts and assumed settlement) or in the
event that the Custodian or its nominee shall incur or be
assessed any taxes, charges, expenses, assessments, claims or
liabilities in connection with the performance of this
Contract, except such as may arise from its or its nominee's
own negligent action, negligent failure to act or willful
misconduct, any property at any time held for the account of
the Fund shall be security therefor and should the Fund
fail to repay the Custodian promptly, the Custodian shall be
entitled to utilize available cash and to dispose of the
Fund assets to the extent necessary to obtain reimbursement.
In no event shall the Custodian be liable for indirect,
special or consequential damages.
14. Effective Period, Termination and Amendment
This Contract shall become effective as of its
execution, shall continue in full force and effect until
terminated as hereinafter provided, may be amended at any
time by mutual agreement of the parties hereto and may be
terminated by either party by an instrument in writing
delivered or mailed, postage prepaid to the other party, such
termination to take effect not sooner than thirty (30) days
after the date of such delivery or mailing; provided, however
that the Custodian shall not with respect to a Portfolio act
under Section 2.10 hereof in the absence of receipt of an
initial certificate of the Secretary or an Assistant
Secretary that the Board of Trustees of the Fund has
approved the initial use of a particular Securities System by
such Portfolio, as required by Rule 17f-4 under the
Investment Company Act of 1940, as amended and that the
Custodian shall not with respect to a Portfolio act under
Section 2.11 hereof in the absence of receipt of an initial
certificate of the Secretary or an Assistant Secretary that
the Board of Trustees has approved the initial use of the
Direct Paper System by such Portfolio; provided further,
however, that the Fund shall not amend or terminate this
Contract in contravention of any applicable federal or state
regulations, or any provision of the Declaration of Trust,
and further provided, that the Fund on behalf of one or more
of the Portfolios may at any time by action of its Board of
Trustees (i) substitute another bank or trust company for the
Custodian by giving notice as described above to the
Custodian, or (ii) immediately terminate this Contract in the
event of the appointment of a conservator or receiver for the
Custodian by the Comptroller of the Currency or upon the
happening of a like event at the direction of an appropriate
regulatory agency or court of competent jurisdiction.
Upon termination of the Contract, the Fund on behalf of
each applicable Portfolio shall pay to the Custodian such
compensation as may be due as of the date of such termination
and shall likewise reimburse the Custodian for its costs,
expenses and disbursements.
15. Successor Custodian
If a successor custodian for the Fund, of one or more
of the Portfolios shall be appointed by the Board of Trustees
of the Fund, the Custodian shall, upon termination, deliver
to such successor custodian at the office of the Custodian,
duly endorsed and in the form for transfer, all securities of
each applicable Portfolio then held by it hereunder and shall
transfer to an account of the successor custodian all of the
securities of each such Portfolio held in a Securities
System.
If no such successor custodian shall be appointed, the
Custodian shall, in like manner, upon receipt of a certified
copy of a vote of the Board of Trustees of the Fund, deliver
at the office of the Custodian and transfer such securities,
funds and other properties in accordance with such vote.
In the event that no written order designating a
successor custodian or certified copy of a vote of the Board
of Trustees shall have been delivered to the Custodian on or
before the date when such termination shall become effective,
then the Custodian shall have the right to deliver to a bank
or trust company, which is a "bank" as defined in the
Investment Company Act of 1940, doing business in Boston,
Massachusetts, of its own selection, having an aggregate
capital, surplus, and undivided profits, as shown by its
last published report, of not less than $25,000,000, all
securities, funds and other properties held by the Custodian
on behalf of each applicable Portfolio and all instruments
held by the Custodian relative thereto and all other property
held by it under this Contract on behalf of each applicable
Portfolio and to transfer to an account of such successor
custodian all of the securities of each such Portfolio held
in any Securities System. Thereafter, such bank or trust
company shall be the successor of the Custodian under this
Contract.
In the event that securities, funds and other
properties remain in the possession of the Custodian after
the date of termination hereof owing to failure of the Fund
to procure the certified copy of the vote referred to or of
the Board of Trustees to appoint a successor custodian, the
Custodian shall be entitled to fair compensation for its
services during such period as the Custodian retains
possession of such securities, funds and other properties
and the provisions of this Contract relating to the duties
and obligations of the Custodian shall remain in full force
and effect.
16. Interpretive and Additional Provisions
In connection with the operation of this Contract, the
Custodian and the Fund on behalf of each of the Portfolios,
may from time to time agree on such provisions interpretive
of or in addition to the provisions of this Contract as may
in their joint opinion be consistent with the general tenor
of this Contract. Any such interpretive or additional
provisions shall be in a writing signed by both parties and
shall be annexed hereto, provided that no such interpretive
or additional provisions shall contravene any applicable
federal or state regulations or any provision of the
Declaration of Trust of the Fund. No interpretive or
additional provisions made as provided in the preceding
sentence shall be deemed to be an amendment of this Contract.
17. Additional Funds
In the event that the Fund establishes one or more
series of Shares in addition to the Stein Roe Advisor
Balanced Fund, Stein Roe Advisor Growth & Income Fund, Stein
Roe Advisor Growth Stock Fund, Stein Roe Advisor Young
Investor Fund, Stein Roe Advisor Special Fund, Stein Roe
Advisor Special Venture Fund, Stein Roe Advisor International
Fund with respect to which it desires to have the Custodian
render services as custodian under the terms hereof, it shall
so notify the Custodian in writing, and if the Custodian
agrees in writing to provide such services, such series of
Shares shall become a Portfolio hereunder.
18. Massachusetts Law to Apply
This Contract shall be construed and the provisions
thereof interpreted under and in accordance with laws of The
Commonwealth of Massachusetts.
19. Prior Contracts
This Contract supersedes and terminates, as of the date
hereof, all prior contracts between the Fund on behalf of
each of the Portfolios and the Custodian relating to the
custody of the Fund's assets.
20. Reproduction of Documents
This Contract and all schedules, exhibits, attachments
and amendments hereto may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic or
other similar process. The parties hereto all/each agree
that any such reproduction shall be admissible in evidence as
the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and
whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement,
facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.
21. Shareholder Communications Election
Securities and Exchange Commission Rule 14b-2 requires
banks which hold securities for the account of customers to
respond to requests by issuers of securities for the names,
addresses and holdings of beneficial owners of securities of
that issuer held by the bank unless the beneficial owner has
expressly objected to disclosure of this information. In
order to comply with the rule, the Custodian needs the Fund
to indicate whether it authorizes the Custodian to provide
the Fund's name, address, and share position to requesting
companies whose securities the Fund owns. If the Fund
tells the Custodian "no", the Custodian will not provide this
information to requesting companies. If the Fund tells the
Custodian "yes" or does not check either "yes" or "no" below,
the Custodian is required by the rule to treat the Fund as
consenting to disclosure of this information for all
securities owned by the Fund or any Funds or accounts
established by the Fund. For the Fund's protection, the
Rule prohibits the requesting company from using the Fund's
name and address for any purpose other than corporate
communications. Please indicate below whether the Fund
consents or objects by checking one of the alternatives
below.
YES [ ] The Custodian is authorized to release the Fund's
name, address, and share positions.
NO [X] The Custodian is not authorized to release the
Fund's name, address, and share positions.
IN WITNESS WHEREOF, each of the parties has caused this
instrument to be executed in its name and behalf by its duly
authorized representative and its seal to be hereunder
affixed as of the 13th day of February, 1997.
STEIN ROE ADVISOR TRUST
ATTEST
NICOLETTE D. PARRISH By GARY A. ANETSBERGER
Assistant Secretary Senior Vice-President
STATE STREET BANK AND TRUST COMPANY
By CHARLES WHITTEWOOD, JR.
ATTEST Vice President
FRANCINE HAYES
<PAGE>
Schedule A
The following foreign banking institutions and foreign
securities depositories have been approved by the Board of
Trustees of Stein Roe Advisor Trust for use as sub-
custodians for the Fund's securities and other assets:
(Insert banks and securities depositories)
Certified:
GARY A. ANETSBERGER
Trust's Authorized Officer
Date 2/14/97
STATE STREET BANK AND TRUST COMPANY
GLOBAL CUSTODY NETWORK
FOR MUTUAL FUND CLIENTS
1997
<TABLE>
<CAPTION>
Country Subcustodian Central Depository
- --------- ---------------------------------- ------------------------------------------------------
<S> <C> <C>
Argentina Citibank, N.A. Caja de Valores S.A.
Australia Westpac Banking Corporation Austraclear Limited; Reserve Bank Information and
Transfer System (RITS)
Austria GiroCredit Bank Aktiengesellschaft Oesterreichische Kontrollbank AG
der Sparkassen (Wertpapiersammelbank Division)
Belgium Generale Bank Caisse Interprofessionnelle de Depots et de
Virements de Titres S.A. (CIK); Banque Nationale de
Belgique
Brazil Citibank, N.A. Bolsa de Valores de Sao Paulo (Bovespa); Banco
Central do Brasil, Systema Especial de Liquidacao e
Custodia (SELIC)
Canada Canada Trustco Mortgage Company The Canadian Depository for Securities Limited (CDS)
People's The Hongkong and Shanghai Banking Shanghai Securities Central Clearing and
Republic of Corporation Limited, Registration Corporation (SSCCRC); Shenzhen
China Shanghai and Shenzhen branches Securities Central Clearing Co., Ltd. (SSCC)
Colombia Cititrust Colombia S.A.; Sociedad None
Fiduciaria
Czech Republic Ceskoslovenska Obchodni Banka A.S. Stredisko Cennych Papiru (SCP); Czech National Bank (CNB)
Denmark Den Danske Bank Vaerdipapircentralen; The Danish Securities Center (VP)
Egypt National Bank of Egypt None
Finland Merita Bank Limited The Central Share Register of Finland
France Banque Paribas Societe Interprofessionnelle pour la Compensation des
Valeurs Mobilieres (SICOVAM); Banque de France, Saturne
System
Germany Dresdner Bank A.G. The Deutscher Kassenverein AG
Ghana Barclays Bank of Ghana Limited None
Greece National Bank of Greece S.A. The Central Securities Depository (Apothetirion Titlon
A.E.)
Hong Kong Standard Chartered Bank The Central Clearing and Settlement System (CCASS)
Hungary Citibank Budapest Rt. The Central Depository and Clearing House (Budapest) Ltd.
(KELER Ltd.)
India The Hongkong and Shanghai Banking None
Corporation Limited
Indonesia Standard Chartered Bank None
Ireland Bank of Ireland Central Bank of Ireland; The Gilts Settlement Office
(GSO)
Israel Bank Hapoalim B.M. The Clearing House of the Tel Aviv Stock Exchange
Italy Banque Paribas Monte Titoli S.p.A; Banca d'Italia
Japan The Sumitomo Trust & Banking Co., Japan Securities Depository Center (JASDEC); Bank of
Ltd. Japan Net System
Republic of SEOULBANK Korea Securities Depository (KSD)
Korea
Malaysia Standard Chartered Bank Malaysia Malaysian Central Depository Sdn. Bhd. (MCD)
Berhad
Mexico Citibank Mexico, S.A. S.D. INDEVAL, S.A. de C.V. (Instituto para el Deposito de
Valores); Banco de Mexico
Netherlands MeesPierson N.V. Nederlands Centraal Instituut voor Giraal Effectenverkeer
B.V. (NECIGEF)
New Zealand ANZ Banking Group (New Zealand) New Zealand Central Securities Depository Limited
Limited (NCZCSD)
Norway Christiania Bank og Kreditkasse Verdipapirsentralen; The Norwegian Registry of Securities
(VPS)
Pakistan Deutsche Bank AG None
Peru Citibank, N.A. Caja de Valores (CAVAL)
Philippines Standard Chartered Bank None
Poland Citibank Poland S.A. The National Depository of Securities (Centrum Krajowy
Depozytu Papierow Wartos'ciowych)
Portugal Banco Comercial Portugues Central de Valores Mobiliarios (Central)
Russia Credit Suisse, Zurich via Credit None
Suisse (Moscow) Limited
Singapore The Development Bank of Singapore The Central Depository (Pte) Limited (CDP)
Ltd.
South Africa Standard Bank of South Africa The Central Depository Limited
Limited
Spain Banco Santander, S.A. Servicio de Compensacion y Liquidacion de Valores (SCLV);
Banco de Espana, Anotaciones en Cuenta
Sweden Skandinaviska Enskilda Banken Vardepapperscentralen (VPC) AB - The Swedish Central
Securities Depository
Switzerland Union Bank of Switzerland Schweizerische Effekten-Giro AG (SEGA)
Taiwan-R.O.C. Central Trust of China The Taiwan Securities Central Depository Company, Ltd.
(TSCD)
Thailand Standard Chartered Bank Thailand Securities Depository Company Limited (TSD)
Turkey Citibank, N.A. Takas ve Saklama Bankasi A.S. (TAKASBANK); Central Bank
of Turkey
United Kingdom State Street Bank and Trust The Central Gilts Office (CGO); The Central Moneymarket
Company Office (CMO)
</TABLE>
<PAGE>
EXHIBIT 9(a)
SHAREHOLDER SERVICING
AND TRANSFER AGENCY AGREEMENT
This agreement is made this 14th day of February, 1997,
by and between STEIN ROE ADVISOR TRUST (the "Trust"), a
Massachusetts business trust, and STEINROE SERVICES INC.
(hereinafter referred to as "SSI"), a Massachusetts
corporation.
WITNESSETH:
1. APPOINTMENT. The Trust hereby appoints SSI,
effective as of the date hereof, as its agent in connection
with the issue, redemption, and transfer of shares of
beneficial interest of the Trust, including shares of each
respective series of the Trust (hereinafter called the
"Shares"), and to process investment income and capital
gain distributions with respect to such Shares, to perform
certain duties in connection with the Trust's withdrawal
and other plans, to mail proxy and other materials to the
Trust's shareholders and to provide additional services to
shareholders upon the terms and conditions set forth
herein, and to perform such other and further duties as are
agreed upon between the parties from time to time.
2. ACKNOWLEDGMENT. SSI acknowledges that it has
received from the Trust the following documents:
A. A certified copy of the Agreement and
Declaration of Trust and any amendments
thereto;
B. A certified copy of the By-Laws of Trust;
C. A certified copy of the resolution of its Board
of Trustees authorizing this Agreement;
D. Specimens of all forms of Share certificates as
approved by its Board of Trustees with a
statement of its Secretary certifying such
approval;
E. Samples of all account application forms and
other documents relating to shareholders
accounts, including terms of its Systematic
Withdrawal Plan;
F. Certified copies of any resolutions of the
Board of Trustees authorizing the issue of
authorized but unissued Shares;
G. An opinion of counsel for the Trust with
respect to the validity of the Shares, the
status of repurchased Shares and the number of
Shares with respect to which a Registration
Statement has been filed and is in effect;
H. A certificate of incumbency bearing the
signatures of the officers of the Trust who are
authorized to sign Share certificates, to sign
checks and to sign written instructions to SSI.
3. ADDITIONAL DOCUMENTATION. The Trust will also
furnish SSI from time to time with the following documents:
A. Certified copies of each amendment to its
Agreement and Declaration of Trust and By-Laws;
B. Each Registration Statement filed with the
Securities and Exchange Commission and
amendments thereto with respect to its Shares;
C. Certified copies of each resolution of the
Board of Trustees authorizing officers to give
instructions to SSI;
D. Specimens of all new Share certificates
accompanied by certified copies of Board of
Trustees resolutions approving such forms;
E. Forms and terms with respect to new plans that
may be instituted and such other certificates,
documents or opinions that SSI may from time to
time, in its discretion, deem necessary or
appropriate in the proper performance of its
duties.
4. AUTHORIZED SHARES. The Trust certifies to SSI
that, as of the date of this Agreement, it may issue
unlimited number of Shares of the same class in one or more
series as the Board of Trustees may authorize. The series
authorized as of the date of this Agreement are listed in
Schedule B.
5. REGISTRATION OF SHARES. SSI shall record
issuances of Shares based on the information provided by
the Trust. SSI shall have no obligation to a Trust, when
countersigning and issuing Shares, whether evidenced by
certificates or in uncertificated form, to take cognizance
of any law relating to the issuance and sale of Shares,
except as specifically agreed in writing between SSI and
the Trusts, and shall have no such obligation to any
shareholder except as specifically provided in Sections 8-
205, 8-208 and 8-406 of the Uniform Commercial Code. Based
on data provided by the Trust of Shares registered or
qualified for sale in various states, SSI will advise the
Trusts when any sale of Shares to a resident of a state
would result in total sales in that state in excess of the
amount registered or qualified in that state.
6. SHARE CERTIFICATES. The Trust shall supply SSI
with a sufficient supply of serially pre-numbered blank
Share certificates, which shall contain the appropriate
series designation, if applicable. Such blank certificates
shall be properly prepared and signed by authorized
officers of Trust manually or, if authorized by Trust, by
facsimile and shall bear the seal of Trust or a facsimile
thereof. Notwithstanding the death, resignation, or
removal of any officer authorized to sign certificates, SSI
may continue to countersign certificates which bear the
manual or facsimile signature of such officer as directed
by Trust.
7. CHECKS. The Trust shall supply SSI with a
sufficient supply of serially pre-numbered blank checks for
the dividend bank accounts and for the principal bank
accounts of Trust. SSI shall prepare and sign by facsimile
signature plates, bearing the facsimiles of the signatures
of authorized signatories, dividend account checks for
payment of ordinary income dividends and capital gain
distributions and principal account checks for payment of
redemptions of Shares, including those in connection with
the Trusts' Withdrawal Plans, refunds on subscriptions and
other capital payments on Shares, in accordance with this
Agreement. SSI shall hold signature facsimile plates for
this purpose and shall exercise reasonable care in their
transportation, storage or use. SSI may deliver such
signature facsimile plates to an agent or contractor to
perform the services described herein, but shall not be
relieved of its duties hereunder by any such delivery.
8. RECORDKEEPING. SSI shall maintain records showing
for each shareholder's account in the appropriate series of
the Trust, the following information and such other
information as may be mutually agreed to from time to time
by the Trusts and SSI:
A. To the extent such information is provided by
shareholders: name(s), address, alphabetical
sort key, client number, tax identification
number, account number, the existence of any
special service or transaction privilege
offered by the Trust and applicable to the
shareholder's account including but not limited
to the telephone exchange privilege, and other
similar information;
B. Number of Shares held;
C. Amount of accrued dividends;
D. Information for the current calendar year
regarding the account of the shareholder,
including transactions to date, date of each
transaction, price per share, amount and type
of each purchase and redemption, transfers,
amount of accrued dividends, the amount and
date of all distributions paid, price per
share, and amount of all distributions
reinvested;
E. Any stop order currently in effect against the
shareholder's account;
F. Information with respect to any withholding for
the calendar year as required under applicable
Federal and state laws, rules and regulations;
G. The certificate number and date of issuance of
each Share certificate outstanding, if any,
representing a shareholder's Shares in each
account, the number of Shares so represented,
and any stop legend on each certificate;
H. Information with respect to gross proceeds of
all sales transactions as required under
applicable Federal income tax laws, rules and
regulations; and
I. Such other information as may be agreed upon by
the Trusts and SSI from time to time.
SSI shall maintain for any account that is closed
("Closed Account") the aforesaid records through the June
of the calendar year following the year in which the
account is closed or such other period as may be mutually
agreed to from time to time by such Trust and SSI.
9. ADMINISTRATIVE SERVICES. SSI shall furnish the
following administrative services to the Trust:
A. Coordination of the printing and dissemination
of Prospectuses, financial reports, and other
shareholder information as are agreed to by SSI
and the Trust from time to time.
B Maintenance of data and statistics and
preparation of reports for internal use and for
distribution to the Board of Trustees
concerning shareholder transaction and service
activity.
C. Handling of requests from third parties
involving shareholder records, including, but
not limited to, record subpoenas, tax levies,
and orders issued by courts or administrative
or regulatory agencies.
D. Development and monitoring of shareholder
service programs that may be offered from time
to time, including, but not limited to,
individual retirement account and tax-qualified
retirement plan programs, checkwriting
redemption privileges, automatic purchase,
exchange and redemption programs, audio
response services, programs involving
electronic transfer of funds, and lock box
facilities.
E. Provision of facilities, hardware and software
systems, and equipment in Chicago (and other
locations mutually agreed to by SSI and the
Trusts) to meet the needs of shareholders and
prospective shareholders, including, but not
limited to, walk-in facilities, toll-free
telephone numbers, electronic audio and other
communication, accounting and recordkeeping
systems to handle shareholder transaction,
inquiry and other activity, and to provide
management and other personnel required to
staff such facilities and administer such
systems.
10. SHAREHOLDER SERVICES. SSI shall provide the
following services as are requested by a Trust in addition
to the transactional and recordkeeping services provided
for elsewhere herein:
A. Responding to communications from shareholders
or their representatives or agents concerning
any matters pertaining to shares registered in
their names, including, but not limited to, (i)
net asset value and average cost basis
information; (ii) shareholder services, plans,
options, and privileges; and (ii) with respect
to the series of the Trust represented by such
shares, information concerning investment
policies, portfolio holdings, performance, and
shareholder distributions and the
classification thereof for tax purposes.
B. Handling of shareholder complaints and
correspondence directed to or brought to the
attention of SSI.
C. Soliciting and tabulating proxies of
shareholders and answering questions concerning
the subject matter thereof.
D. Under the direction of the officers of the
Trust, administering a program whereby
shareholders whose mail from the Trust is
returned are identified, current address
information for such shareholders is solicited,
and shares and dividend or redemption proceeds
owned by shareholders who cannot be located are
escheated to the proper authorities in
accordance with applicable laws and
regulations.
E. Preparing and disseminating special data,
notices, reports, programs, and literature for
certain categories of shareholders based on
account characteristics, or for shareholders
generally in light of industry, market,
product, tax, or legal developments.
F. Assisting any institutional servicing or
recordkeeping agent engaged by SSI and approved
by the Trust in the development,
implementation, and maintenance of special
programs and systems to enhance overall
shareholder servicing capability, consisting
of:
(i) Product and system training for personnel
of the institutional servicing agent.
(ii) Joint programs with the institutional
servicing agent to develop customized
shareholder software systems, account
statements, and other information and
reports.
(iii) Electronic and telephonic systems and other
technological means by which shareholder
information, account data, and cost of
securities may be exchanged among SSI, the
institutional servicing agent, and their
respective agents or vendors.
G. Furnishing sub-accounting services for
retirement plan shareholders and other
shareholders representing group relationships
with special recordkeeping needs.
H. Providing and supervising the services of
employees whose principal responsibility and
function will be to preserve and strengthen the
Trust's relationships with its shareholders.
I. Such other shareholder and shareholder-related
services, whether similar to or different from
those described in this section as the parties
may from time to time agree in writing.
11. PURCHASES. Upon receipt of a request for purchase
of Shares containing data required by a Trust for
processing of a purchase transaction, SSI will:
A. Compute the number of Shares of the appropriate
series of the Trust to which the purchaser is
entitled and the dollar value of the
transaction according to the price of such
Shares as provided by the Trust for purchases
made at that time and date;
B. In the case of a new shareholder, establish an
account for the shareholder, including the
information specified in Section 8 hereof; in
the case of an Exchange as described in Section
14 below by telephone or telegraph, the account
shall have exactly the same registration as
that of the account of the other series of the
Trust or any other series of another Trust from
which the Exchange was made;
C. Transmit to the shareholder by mail or
electronically a confirmation of the purchase,
as directed by the Trust, in such format as
agreed to by SSI and the Trusts, including all
information called for thereby, and, in the
case of a purchase for a new account, shall
also furnish the shareholder a current
Prospectus of the applicable series;
D. If applicable, prepare a refund check in the
amount of any overpayment of the subscription
price and deliver it to the Trust for signing;
and
E. If a certificate is requested by the
shareholder, prepare, countersign, issue and
mail, not earlier than 30 days after the date
of purchase, to the shareholder at his address
of record a Share certificate for such full
Shares purchased.
12. REDEMPTIONS. Instructions to redeem Shares of any
series of a Trust, including instructions for an Exchange
as described in Section 14 below, may be furnished in
written form, or by other means, including but not limited
to telephonic or electronic transmission or by writing a
special form of check, as may be mutually agreed to from
time to time by the Trust and SSI. Upon receipt by SSI of
instructions to redeem which are in "good order," as
defined in the Prospectus of the applicable series and
satisfactory to SSI, SSI will:
A. Compute the amount due for the Shares and the
total number of all the Shares redeemed in
accordance with the price per Share as provided
by the Trust for redemptions of such Shares at
that time and date, and transmit to the
shareholder by mail or electronically a
confirmation of the redemption, as directed by
the Trust, in such format as agreed to by SSI
and the Trust, including all information called
for thereby;
B. Confirmations of redemptions that result in the
payment of accrued dividends shall indicate the
amount of such payment and any amounts
withheld;
C. In the case of a redemption in written form
other than by Exchange, SSI shall transmit to
the shareholder by check or, as may be mutually
agreed to by the Trust and SSI and requested by
the shareholder, electronic means, an amount
equal to the redemption price and any payment
of accrued dividends occasioned by the
redemption, net of any amounts withheld under
applicable Federal and state laws, rules and
regulations on or before the seventh calendar
day following the date on which instructions to
redeem in "good order" as defined in the
Prospectus of the applicable series, which
instructions are satisfactory to SSI as
received by SSI. In the case of an Exchange,
SSI shall use the proceeds of the redemption,
net of any amounts withheld under applicable
Federal and state laws, rules and regulations,
to purchase Shares of any other series of the
Trust or any other series of another Trust
selected by the person requesting the Exchange;
D. In the case of Exchanges by telephone or
telegraph, redemptions by telephone or
electronic transmission and redemptions by
writing a special form of check, SSI shall
deliver to the Trust, on the business day
following the effective date of such
transaction, a listing of such transaction data
in a format agreed to by the Trusts and SSI
from time to time;
E. If any Share certificate or instruction to
redeem tendered to SSI is not satisfactory to
SSI, it shall promptly notify the Trust of such
fact together with the reason therefor;
F. SSI shall cancel promptly Share certificates
received in proper form for redemption and
issue, countersign and mail new Share
certificates for the Shares represented by
certificates so cancelled which are not
redeemed;
G. SSI shall advise the Trust and refuse to
process any redemption by electronic
transmission or Exchange by telephone or
telegraph or redemptions by writing a special
form of check, if such transaction would result
in the redemption of Shares represented by
outstanding certificates, unless otherwise
instructed by an officer of the Trust.
13. ADMINISTRATION OF WITHDRAWAL PLANS. A redemption
made pursuant to a Withdrawal Plan offered by the Trusts
shall be effected by SSI at the net asset value per Share
of the appropriate series of the Trust on the twentieth day
or the next business day of the month in which the
recipient is scheduled to receive the withdrawal payment.
SSI shall prepare and mail to the recipient on or before
the seventh calendar day after the date of redemption a
check in the amount of each required payment, net of any
amounts withheld under applicable Federal and state laws,
rules and regulations, and also furnish the shareholder a
confirmation of the redemption as described in Section 12
above.
14. EXCHANGES. Upon receipt by SSI of a request to
exchange Shares of a series of a Trust held in a
shareholder's account for those of any other series of the
Trust or any other series of another Trust or vice versa in
written form, by telephone or telegraph or by other
electronic means, containing data required by the Trust for
processing such a transaction, SSI will:
A. If the request is by telephone, telegraph or
other electronic means, verify that the
shareholder has furnished both the series of a
Trust from and to which the Exchange is to be
made authorization, in a form acceptable to
such Trust, to accept Exchange instructions for
his account by such means.
B. Process a redemption of the Shares of the
series of the Trust to be redeemed in
connection with the Exchange and apply the
proceeds thereof, net of any amounts withheld
under applicable Federal and state laws, rules
and regulations, to purchase shares of any
other series of the Trust or any other series
of another Trust being acquired in accordance
with the respective Trust's redemption and
purchase policies and Sections 11 and 12 of
this Agreement.
Any redemption and purchase pursuant to an Exchange
shall be effected as of the time and prices applicable to
an order for redemption or purchase received at the time
the request for Exchange is received.
15. TRANSFER OF SHARES. Upon receipt by SSI of a
request for a transfer of Shares of any series of a Trust,
and receipt of a Share certificate for transfer or an order
for the transfer of Shares in the case of an uncertificated
account, in either case with such endorsements, instruments
of assignment or evidence of succession as may be required
by SSI and accompanied by payment of such transfer taxes,
if any, as may be applicable, and satisfaction of any other
conditions for registration of transfers contained in the
Trust's By-Laws, Prospectuses, and Statements of Additional
Information, SSI will verify the balance of Shares of such
series of the Trust in the account; record the transfer of
ownership of such Shares in its Share certificate and
shareholder records for such series; cancel Share
certificates for Shares surrendered for transfer; establish
an account pursuant to Section 8 for the transferee if a
new shareholder; prepare, countersign and mail new Share
certificates for a like number of Shares in the case of a
certificated account; and transmit to the shareholder by
mail or electronically confirmation of the transfer for
each account affected, in a format agreed to by SSI and the
Trust, including all information called for thereby. SSI
shall be responsible for determining that certificates,
orders for transfer, and supporting documents, if any, are
in proper legal form for the transfer of Shares.
16. CHANGES IN SHAREHOLDER RECORDS. Changes in items
of information specified in Section 8 not relating to
change in ownership of Shares will be made by SSI upon
receipt of a request for such change in a format agreed to
by SSI and the Trusts. In the case of any change that SSI
and the Trusts agree requires confirmation, a confirmation
of such change in a format agreed to by SSI and the Trusts
shall be transmitted to the shareholder by mail or
electronically.
17. REFUSAL TO REDEEM OR TRANSFER. SSI reserves the
right to refuse to redeem or transfer Shares until
reasonably satisfied that the endorsement on the Share
certificates or written request presented is valid and
genuine, and for such purpose may require where reasonably
necessary or appropriate a guarantee of signature. SSI
also reserves the right to refuse to redeem or transfer
Shares until satisfied that the requested transfer or
redemption is legally authorized, and it shall incur no
liability for the refusal in good faith to make transfers
or redemptions which it, in its judgment, deems improper or
unauthorized. Notwithstanding the foregoing, SSI shall
redeem or transfer Shares even though not satisfied as to
the endorsement or legal authority if it is first
indemnified to its reasonable satisfaction against all
expenses and liabilities to which it might, in its
judgment, be subjected by such action.
18. DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. The
Trust will promptly inform SSI of the declaration of any
dividend or other distribution with respect to Shares of
any series of the Trust, including the amount of
distribution, the amount of withholding under applicable
Federal and state laws, rules and regulations, if any,
dividend number, if any, record date, ex-dividend date,
payable date and price at which dividends or other
distributions are to be reinvested.
In the case of any series of a Trust for which
dividends shall be declared daily and paid monthly or
quarterly, SSI will credit the dividend payable to each
shareholder thereof to a dividend account of the
shareholder and will provide the Trust on each business day
with reports of the total amount of dividends credited and
such other data as are agreed upon by the Trust and SSI.
Promptly after the payable date for the Trust, SSI will
provide the Trust with reports showing the accounts which
have been paid a dividend or other distribution, the amount
received by each account, the amount withheld as required
under applicable Federal and state laws, rules and
regulations, if any, the amount of the dividend or
distribution paid in cash or reinvested in Shares, and the
total amount of cash and Shares required for payment of the
dividend or other distribution.
In the case of each other series of the Trust, SSI
will provide the Trust promptly following the record date
therefor with reports of the total amount of dividends
payable with respect thereto and such other data as are
agreed to by the Trusts and SSI. Promptly after the
payable date therefor, SSI will provide the Trust with
reports showing the accounts which are to be paid a
dividend or other distribution, the amount to be received
by each account, the amount to be withheld as required
under applicable Federal and state laws, rules and
regulations, if any, whether such dividend or distribution
is to be paid in cash or reinvested in Shares, and the
total amount of cash and Shares required for the payment of
such dividend or distribution.
At times agreed to by the Trusts and SSI, SSI will
transmit by mail or electronically to shareholders the
proceeds of such dividend or other distribution and
confirmation thereof. Where distributions are reinvested,
the price and date of reinvestment will be those supplied
by the Trusts. Confirmations will be prepared by SSI in a
format agreed to by SSI and the Trusts.
19. WITHHOLDING. Under applicable Federal and state
laws, rules and regulations requiring withholding from
dividends and other distributions and payments to
shareholders, SSI shall be responsible for determining the
amount to be withheld and the Trusts shall forward that
amount to SSI, which will deposit said amount with, and
report said amount to, the proper governmental agency as
required thereunder. Liability for any amounts withheld,
whether or not actually withheld, and for any penalties
which may be imposed upon the payor for failure to
withhold, report, or deposit the proper amount, and for any
interest due on said amount, shall be borne by the Trusts
and SSI as provided in Section 37 hereof.
Upon receipt of a certificate from a shareholder
pertaining to withholding (including exemptions therefrom)
containing such information as required by a Trust of the
shareholder under applicable Federal and state laws, rules
and regulations, SSI shall promptly process the
certificate, which shall become effective as soon as
reasonably possible after receipt by SSI, but no later than
may be required by applicable Federal and state laws, rules
and regulations.
At the time a shareholder account is established with
a Trust, the Trust shall be responsible for (i) soliciting
the shareholder's tax identification number in the manner
and form required under applicable Federal and state laws,
rules and regulations; (ii) identifying and rejecting an
obviously incorrect number (as defined under applicable
Federal and state laws, rules and regulations) and (iii)
furnishing to SSI the number and any related information
provided by or on behalf of the shareholder. SSI shall be
responsible for any subsequent communications to the
shareholder that may be required in this regard.
In the case of withholding an amount in excess of the
proper amount from a payment made by or on behalf of a
Trust to a shareholder except as otherwise provided by
applicable Federal and state laws, rules and regulations,
SSI, at the direction of the Trust, shall immediately
adjust the shareholder's account, as well as succeeding
deposits; provided, however, that when an adjustment would
result in an adjustment across calendar years, SSI shall
not be required to make such adjustment.
In the case of (i) a failure to withhold the proper
amount from a dividend or other distribution or payment
made by or on behalf of any series of a Trust to a
shareholder or (ii) any penalties attributable to (a) a
failure to withhold the proper amount or (b) the
shareholder's failure to provide the Trust or SSI with
correct information requested in order to comply with
withholding requirements under applicable Federal and state
laws, rules and regulations, SSI, at the direction of the
Trust, shall immediately cause the redemption of Shares
from the shareholder's account with such series having a
value not exceeding the sum of such deficit amount and
applicable penalties and apply the proceeds to reimburse
whomever has borne the expense resulting from the
shareholder's failure. If the value of the Shares in the
shareholder's account with the series is less than the sum
of the deficit amount and applicable penalties, SSI may
cause the redemption of Shares having a value not exceeding
such difference from any account, including a joint
account, of the shareholder with any other series of the
Trust or any other series of another Trust, subject to the
consent of the other Trust, and apply the proceeds to
reimburse whoever has borne the expense resulting from the
shareholder's failure.
20. MAILINGS. SSI shall take all steps required,
including the addressing of envelopes, to make the
following additional mailings to shareholders:
A. SSI shall mail financial reports furnished by
each series of a Trust to shareholders as
requested and will mail the current Prospectus
for each series of the Trust to shareholders of
such series once each year;
B. SSI shall mail to shareholders of each series
of a Trust proxy material for each duly
scheduled meeting of shareholders of that
series;
C. SSI shall include in any of the above mailings
such other enclosures as are compatible for
mailing purposes as reasonably requested by the
Trusts;
D. SSI shall make such other mailings upon such
terms and conditions and for such fees as are
agreed to by SSI and the Trust from time to
time.
The Trusts shall deliver all material required to be
furnished to SSI for any scheduled mailing sufficiently in
advance of the date for such mailing, so that SSI may
effect the scheduled mailing.
21. TAX INFORMATION RETURNS AND REPORTS. SSI will
prepare and file with the appropriate governmental
agencies, such information, returns and reports as are
required to be so filed for reporting (i) dividends and
other distributions made, (ii) amounts withheld on
dividends and other distributions and payments under
applicable Federal and state laws, rules and regulations,
and (iii) gross proceeds of sales transactions as required
and as the Trusts shall direct SSI. Further, SSI shall
prepare and deliver to the Trusts reports showing amounts
withheld from dividends and other distributions and
payments made for each series of the Trusts.
22. INFORMATION TO BE FURNISHED TO SHAREHOLDERS. SSI
will prepare and transmit to each shareholder of the Trust
annually in such format as is reasonably requested by the
Trust, and as agreed to by SSI, information returns and
reports for reporting dividends and other distribution and
payments, amounts withheld, if any, and gross proceeds of
sales transactions as required under applicable Federal and
state laws, rules and regulations.
23. STOP ORDERS. Upon receipt of a request from a
Trust or a shareholder that a "stop" should be placed on
the shareholder's account, SSI will maintain a record of
such "stop" and notify the Trust if any transaction request
is received from a shareholder which would reduce the
number of Shares in an account on which a "stop" has been
placed. SSI will inform the Trusts of any information SSI
receives relating to a "stop." SSI shall also maintain for
the Trusts the record of share certificates on which a
"stop" has been placed, it being understood that a
certificate "stop" does not mean a "stop" on the
shareholder's entire account to which a certificate may
relate.
24. SHARE SPLITS AND SHARE DIVIDENDS. If a Trust
elects to declare a Share dividend or split for any series,
the services and fees with respect thereto will be
negotiated by the Trust and SSI.
25. REPLACEMENT OF SHARE CERTIFICATES. SSI may issue
a new Share certificate in place of a Share certificate
represented as not having been received or as having been
lost, stolen, seized or destroyed, upon receiving
instructions from a Trust and indemnity satisfactory to
SSI, and may issue a new Share certificate in exchange for,
and upon surrender of, an identifiable mutilated Share
certificate. Such instructions from the Trust shall be in
such form as has been approved by its Board of Trustees and
shall be in accordance with the provisions of its By-Laws
governing such matters.
26. UNCLAIMED AND UNDELIVERED SHARE CERTIFICATES.
Where a Share certificate is in the possession of SSI for
any reason, and has not been claimed by the record holder
or cannot be delivered to the record holder, SSI shall
cancel said certificate and reflect as uncertificated
Shares on the shareholder's account record the Shares
represented by said cancelled certificate.
27. REPORTS AND FILES. SSI shall maintain the files
and furnish the statistical and other information listed on
Schedule C. However, SSI reserves the right to delete,
change or add to the files maintained and information
provided so long as such deletions, additions or changes do
not impair the receipt of services described elsewhere in
this Agreement. SSI shall also use its best efforts to
obtain such additional statistical and other information as
the Trusts may reasonably request within the capabilities
of SSI, for such additional consideration as may be agreed
to by SSI and the Trusts.
28. EXAMINATION OF DAILY TRANSACTIONS. The Trusts
will examine reports reflecting each day's transactions and
other data delivered to it for the accuracy of the
transactions reflected therein and failure to reflect
transactions that should have been reflected therein. If
SSI has not received from a Trust, within five (5) business
days after delivery of such reports to the Trust, written
notice, which may be in the form of an appropriate
transaction instruction submitted by the Trust for the
purpose of correcting the error or omission, as to any
errors or omissions which a reasonable inspection and
normal audit and control procedure would reveal, then all
transactions reflected in such reports shall be deemed to
be correct and accepted by the Trust, and SSI shall have no
further responsibility for the omission from or correction,
deletion, or inclusion of any transaction reflected or
which should have been reflected therein, or any liability
to the Trust or any third person on account of such error
or omission.
29. DISPOSITION OF BOOKS, RECORDS, AND CANCELLED SHARE
CERTIFICATES. SSI will periodically send to the Trust all
books, documents, and records of the Trust no longer needed
for current purposes and Share certificates which have been
cancelled in transfer or in redemption; such books,
documents, records, and Share certificates shall be safely
stored by the Trusts for future reference for such period
as is required and by any means permitted by the Investment
Company Act of 1940, or the rules and regulations issued
thereunder, or other relevant statutes. SSI shall have no
liability for loss or destruction of said books, documents,
records, or Share certificates after they are returned to
the Trusts.
30. INSPECTION OF SHARE BOOKS. In case of any request
or demand for inspection of the books of a Trust reflecting
ownership of the Shares therein ("Share books"), SSI will
make a reasonable effort to notify the Trust and to secure
instructions as to permitting or refusing such inspection.
SSI reserves the right, however, to exhibit the Share books
to any person in case it is advised by its counsel that it
may be held liable for the failure to exhibit the Share
books to such person.
31. FEES. The Trust shall pay to SSI for its
servicing function hereunder and its transfer agent
function hereunder fees computed as set forth in Schedule A
hereto.
32. OUT-OF-POCKET EXPENSES. The Trust shall reimburse
SSI for any and all out-of-pocket expenses and charges in
performing services under this Agreement (other than
charges for normal data processing services and related
software, equipment and facilities) including, but not
limited to, mailing service, postage, printing of
shareholder statements, the cost of any and all forms of
the Trust and other materials used by SSI in communicating
with shareholders of the Trust, the cost of any equipment
or service used for communicating with the Trust's
custodian bank or other agent of the Trust, and all costs
of telephone communication with or on behalf of
shareholders allocated in a manner mutually acceptable to
the Trust and SSI.
33. INSTRUCTIONS, OPINION OF COUNSEL, AND SIGNATURES.
At any time SSI may apply to a duly authorized agent of a
Trust for instructions regarding the Trust, and may consult
counsel for the Trust or its own counsel, in respect of any
matter arising in connection with this Agreement, and it
shall not be liable for any action taken or omitted by it
in good faith in accordance with such instructions or with
the advice or opinion of such counsel. SSI shall be
protected in acting upon any such instruction, advice, or
opinion and upon any other paper or document delivered by
the Trust or such counsel believed by SSI to be genuine and
to have been signed by the proper person or persons and
shall not be held to have notice of any change of authority
of any officer or agent of the Trust, until receipt of
written notice thereof from the Trust.
34. TRUSTS' LEGAL RESPONSIBILITY. The Trust assumes
full responsibility for the preparation, contents, and
distribution of each Prospectus and Statement of Additional
Information of the Trust, and for complying with all
applicable requirements of the Securities Act of 1933, as
amended, the Investment Company Act of 1940, as amended,
and any laws, rules, and regulations of government
authorities having jurisdiction over the Trust except that
SSI shall be responsible for all laws, rules and
regulations of government authorities having jurisdiction
over transfer agents and their activities. SSI assumes
full responsibility for complying with due diligence
requirements of payors of reportable dividends and of
brokers under the Internal Revenue Code with respect to
shareholder accounts.
35. REGISTRATION OF SSI AS TRANSFER AGENT. SSI
represents that it is registered with the Securities and
Exchange Commission as a transfer agent under Section 17A
of the Securities Exchange Act of 1934 and will notify the
Trusts promptly if such registration is revoked or if any
proceeding is commenced before the Securities and Exchange
Commission which may lead to such revocation.
36. CONFIDENTIALITY OF RECORDS. SSI agrees not to
disclose any information received from the Trusts to any
other customer of SSI or to any other person except SSI's
employees and agents, and shall use its best efforts to
maintain such information as confidential. Upon
termination of this Agreement, SSI shall return to the
Trusts all records in the possession and control of SSI
related to the Trusts' activities, other than SSI's own
business records, it being also understood that any
programs and systems used by SSI to provide the services
rendered hereunder will not be given to the Trusts.
Notwithstanding the foregoing, it is understood and
agreed that SSI may maintain with the Trusts' records
information and data to be utilized by SSI in providing
services to entities serving as trustees and/or custodians
of prototype Tax-Qualified Retirement Plans, IRA Plans,
plans for employees of public schools or tax-exempt
organizations, or other plans which invest in the Shares.
In the event that this Agreement is terminated, SSI may
transfer and retain from the records maintained for the
Trusts such information and data relating to participants
in such aforementioned plans as may be required for SSI to
continue providing its services to such trustees and/or
custodians.
37. LIABILITY AND INDEMNIFICATION. SSI shall not be
liable to the Trusts for any action taken or thing done by
it or its agents or contractors on behalf of a Trust in
carrying out the terms and provisions of this Agreement if
done in good faith and without negligence or misconduct on
the part of SSI, its agents or contractors.
The Trust shall indemnify and hold SSI, and its
controlling persons, if any, harmless from any and all
claims, actions, suits, losses, costs, damages, and
expenses, including reasonable expenses for counsel,
incurred by it in connection with its acceptance of this
Agreement, in connection with any action or omission by it
or its agents or contractors in the performance of its
duties hereunder to the Trusts, or as a result of acting
upon any instruction believed by it to have been executed
by a duly authorized agent of a Trust or as a result of
acting upon information provided by a Trust in form and
under policies agreed to by SSI and the Trusts provided
that: (i) to the extent such claims, actions, suits,
losses, costs, damages, or expenses relate solely to a
particular series or group of series of Shares, such
indemnification shall be only out of the assets of that
series or group of series; (ii) this indemnification shall
not apply to actions or omissions constituting negligence
or misconduct of SSI or its agents or contractors,
including but not limited to willful misfeasance, bad
faith, or gross negligence in the performance of their
duties, or reckless disregard of their obligations and
duties under this Agreement; and (iii) SSI shall give a
Trust prompt notice and reasonable opportunity to defend
against any such claim or action in its own name or in the
name of SSI.
SSI shall indemnify and hold harmless the Trust from
and against any and all claims, demands, expenses and
liabilities which the Trust may sustain or incur arising
out of, or incurred because of, the negligence or
misconduct of SSI or its agents or contractors, provided
that: (i) this indemnification shall not apply to actions
or omissions constituting negligence or misconduct of the
Trust or its other agents or contractors and (ii) the Trust
shall give SSI prompt notice and reasonable opportunity to
defend against any such claim or action in its own name or
in the name of the Trust.
38. INSURANCE. SSI represents that it has available
to it the insurance coverage set forth on Schedule D
hereto, and agrees to notify the Trusts in advance of any
proposed deletion or reduction in said insurance.
39. FURTHER ASSURANCES. Each party agrees to perform
such further acts and execute such further documents as are
necessary to effectuate the purposes hereof.
40. DUAL INTERESTS. It is understood that some person
or persons may be trustees, directors, officers, or
shareholders of both the Trusts and SSI, and that the
existence of any such dual interest shall not affect the
validity hereof or of any transactions hereunder except as
otherwise provided by specific provision of applicable law.
41. AMENDMENT AND TERMINATION. This Agreement may be
modified or amended from time to time by mutual agreement
between the parties hereto and may be terminated by at
least one hundred eighty (180) days' written notice given
by one party to the other. Upon termination hereof, the
Trust shall pay to SSI such compensation as may be due as
of the date of such termination and shall reimburse SSI for
its costs, expenses, and disbursements payable under this
Agreement to such date. In the event that in connection
with termination a successor to any of the duties or
responsibilities of SSI hereunder is designated by the
Trust by written notice to SSI, it shall promptly upon such
termination and at the expense of the Trust, transfer to
such successor a certified list of shareholders of each
series of the Trust (with name, address, and tax
identification number), a record of the account of each
shareholder and status thereof, and all other relevant
books, records, and data established or maintained by SSI
under this Agreement and shall cooperate in the transfer of
such duties and responsibilities, including provision, at
the expense of the Trust, for assistance from SSI personnel
in the establishment of books, records, and other data by
such successor.
42. ASSIGNMENT.
A. Except as provided below, neither this Agreement nor any
rights or obligations hereunder may be assigned by either
party without the written consent of the other party.
B. This Agreement shall inure to the benefit of and be
binding upon the parties and their respective permitted
successors and assigns.
C. SSI may subcontract for the performance of any of its
duties or obligations under this Agreement with any person
if such subcontract is approved by the Board of Trustees of
a Trust provided, however, that SSI shall be as fully
responsible to the Trust for the acts and omissions of any
subcontractor as it is for its own acts and omissions.
Notwithstanding the foregoing, SSI may subcontract with any
party who holds Shares in an omnibus account for that
party's customers, for the performance of duties or
obligations to the beneficial owners of such Shares without
approval of the Board of Trustees.
43. NOTICE. Any notice under this Agreement shall be
in writing, addressed and delivered or sent by registered
mail, postage prepaid to the other party at such address as
such other party may designate for the receipt of such
notices. Until further notice to the other parties, it is
agreed that the address of the Trusts is One South Wacker
Drive, Chicago, Illinois 60606, Attention: Secretary, and
that of SSI for this purpose is One South Wacker Drive,
Chicago, Illinois 60606, Attention: Secretary.
44. NON-LIABILITY OF TRUSTEES AND SHAREHOLDERS. Any
obligation of a Trust hereunder shall be binding only upon
the assets of that Trust (or the applicable series
thereof), as provided in its Agreement and Declaration of
Trust, and shall not be binding upon any Trustee, officer,
employee, agent or shareholder of the Trust or upon any
other Trust. Neither the authorization of any action by
the Trustees or the shareholders of a Trust, nor the
execution of this Agreement on behalf of the Trust shall
impose any liability upon any Trustee or any shareholder.
Nothing in this Agreement shall protect any Trustee against
any liability to which such Trustee would otherwise be
subject by willful misfeasance, bad faith or gross
negligence in the performance of his duties, or reckless
disregard of his obligations and duties under this
Agreement.
45. REFERENCES AND HEADINGS. In this Agreement and in
any such amendment, references to this Agreement and all
expressions such as "herein," "hereof," and "hereunder,"
shall be deemed to refer to this Agreement as amended or
affected by any such amendments. Headings are placed
herein for convenience of reference only and shall not be
taken as a part hereof or control or affect the meaning,
construction or effect of this Agreement. This Agreement
may be executed in any number of counterparts, each of
which shall be deemed an original.
IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed as of the day and year first above
written.
STEIN ROE ADVISOR TRUST
ATTEST: By: TIMOTHY K. ARMOUR
Timothy K. Armour, President
NICOLETTE D. PARRISH
Nicolette D. Parrish
Assistant Secretary
STEINROE SERVICES INC.
ATTEST: By: HANS P. ZIEGLER
Hans P. Ziegler
President
NICOLETTE D. PARRISH
Nicolette D. Parrish,
Assistant Secretary
<PAGE>
Schedule A
Stein Roe Advisor Trust
Shareholder Servicing and Transfer Agency Agreement
Fees pursuant to Section 31 of the Agency Agreement
shall be calculated in accordance with the following
schedule. For each series, the fee shall accrue on each
calendar day and shall be payable monthly on the first
business day of the next succeeding calendar month.
The daily fee accrual shall be computed by multiplying
the fraction of one divided by the number of days in the
calendar year by the applicable annual fee and multiplying
this product by the net assets of the series, determined in
the manner established by the Board of Trustees of the
applicable Trust, as of the close of business on the last
preceding business day on which the series' net asset value
was determined.
For SSI's shareholder servicing function:
Series Annual Fee
- ----------------------------------- -----------------------
Stein Roe Advisor Growth & Income 0.25% of average daily
Fund net assets
Stein Roe Advisor International Fund
Stein Roe Advisor Young Investor Fund
Stein Roe Advisor Special Venture Fund
Stein Roe Advisor Balanced Fund
Stein Roe Advisor Growth Stock Fund
Stein Roe Advisor Special Fund
For SSI's transfer agent function:
Series Annual Fee
- ----------------------------------- -----------------------
Stein Roe Advisor Growth & Income 0.05% of average daily
Fund net assets
Stein Roe Advisor International Fund
Stein Roe Advisor Young Investor Fund
Stein Roe Advisor Special Venture Fund
Stein Roe Advisor Balanced Fund
Stein Roe Advisor Growth Stock Fund
Stein Roe Advisor Special Fund
Dated: February 14, 1997
<PAGE>
Schedule B
Stein Roe Advisor Trust
Shareholder Servicing and Transfer Agency Agreement
The Series of the Trust covered by this agreement are as
follows:
Name of Series Effective Date
- -------------------------------------- -----------------
Stein Roe Advisor Growth & Income Fund February 14, 1997
Stein Roe Advisor International Fund February 14, 1997
Stein Roe Advisor Young Investor Fund February 14, 1997
Stein Roe Advisor Special Venture Fund February 14, 1997
Stein Roe Advisor Balanced Fund February 14, 1997
Stein Roe Advisor Growth Stock Fund February 14, 1997
Stein Roe Advisor Special Fund February 14, 1997
Dated: February 14, 1997
<PAGE>
SCHEDULE C
SYSTEM DESCRIPTION
TRANSACTION PROCESSING LOG - PROCESSING SPAN IN DAYS
EXPEDITED REDEMPTION FILE - BATCH MAINTENANCE
JOURNAL
DAILY CRT OPERATOR STATISTICS
DAILY BATCH MONITORING REPORT
ONLINE NEW ACCOUNT REPORT
DETAIL DAILY "AS OF" REPORT - BY ACCOUNTABILITY
SPECIAL HANDLING - DAILY CONFIRMATIONS
BANK ACCOUNT OUTSTANDING BALANCE VERIFICATION
MISCELLANEOUS FEE JOURNAL
BATCH ENTRY SUMMARY REPORT
ACCOUNT CLOSEOUT ADJUSTMENTS - SUMMARY REPORT
REDEMPTION CHECK REGISTER
WIRE INSTRUCTION REPORT FOR EXPEDITED REDEMPTIONS
DST INC. - DDPS DAILY CASH RECAP REPORT
DAILY UPDATE (MU100) ERROR LISTING
EXCHANGE DISTRIBUTION SUMMARY REPORT
BATCH TRANSMISSION ERRORS - TRANSACTION ID: DFUNP
DAILY CHECK RECONCILIATION UPDATE REGISTER UCHECK
UPDATES
WIRE INSTRUCTION REPORT FOR EXPEDITED REDEMPTIONS
WIRE INSTRUCTION REPORT FOR DIRECT REDEMPTIONS
TRANSFER RECORD DAILY DVND INCREASE JOURNAL
RECORD DATE JOURNAL
DAILY RECAP & SHARE CONTROL SHEET - SHARE AMOUNT
EXCHANGE CLOSE-OUT AUTOMATIC REINVESTMENT REPORT BY
EXCHANGE (FROM) FUND
DETAIL DAILY "AS OF" REPORT - BY REASON CODE
SHAREOWNER CHECK-CONFIRM RECONCILIATION
DAILY/FREE DAILY BALANCE LISTING - ALPHA CODE
SEQUENCE
CONSOLIDATED ERROR REPORTING
DAILY CONFIRMED UNPAID PURCHASE JOURNAL - NO LOAD
REQUESTS FOR DUPLICATE CONFIRMS
CALCULATED DAILY DIVIDEND RATE
EXTERNAL CHECK/INVESTMENT ISSUANCE REPORT
IN-HOUSE CHECK ISSUANCE REPORT
AUTOMATED CLEARING HOUSE REDEMPTION TRANSACTIONS
STEINROE FUNDS
ACH PURCHASE TRANSACTIONS REPORT
ACH MONTHLY REDEMPTION/PURCHASE - TRANSACTION REPORT
STEIN ROE & FARNHAM TRANSFER RECORD FOR DIRECT
PAYMENTS
REDEMPTION CHECK REGISTER
DAILY DIVIDEND ACCRUAL CLOSEOUTS COMBINED WITH
CLOSEOUT REDEMPTION WIRES
DAILY DIVIDEND ACCRUAL CLOSEOUTS UNMATCHED CLOSEOUT
ACCRUAL ERROR REPORT
AVERAGE COST ACCOUNT CALCULATION EXCEPTION REPORT
FOR DAILY AVERAGE COST FORMS REQUEST
NEW FOREIGN ACCOUNT REPORT
BATCH BALANCE LISTING
TRANSACTION TRACER REPORT
BATCH BALANCE LISTING - ACCOUNT DETAIL
TIMER - SWITCH UPDATE VERIFICATION
REDEMPTION & ADDRESS CHANGE PROCESSED SAME DAY
WARNING REPORT
AUTOMATE CLEARING HOUSE PRENOTE TRANSACTIONS
STEINROE FUNDS
EXRED WARNING REPORT
EXCHANGE WARNING REPORT UNLIKE TAX ID NUMBERS
INVESTOR TRANSFER TRANSACTIONS LISTING INVESTOR
DISTRIBUTOR CODE: STR
DETAIL DAILY "AS OF" REPORT BY TRANSACTION CODE
DAILY "AS OF" REPORT
DAILY FUND SHARE BALANCE ERROR LIST
DAILY BATCH BALANCE
DAILY SHAREOWNER MAINTENANCE ERROR LISTING
EXPEDITED REDEMPTION FILE STATUS JOURNAL
NEW ACCOUNT VERIFICATION QUALITY REPORT
SYSTEMATIC EXCHANGE DAILY MAINTENANCE ACTIVITY
ADDITIONAL MAIL MAINTENANCE JOURNAL
BATCH TRANSMISSION ERRORS TRANSACTION ID: ATRANS
DEALER FILE MAINTENANCE REPORT
CHECK-WRITING REDEMPTION REPORT
ASSET ALLOCATION - REALLOCATION
NEW ACCOUNT REPORT
SCHEDULE D
<TABLE>
SCHEDULE OF INSURANCE
STEIN ROE & FARNHAM INCORPORATED
ONE SOUTH WACKER DRIVE
CHICAGO, IL 60606-4685
<CAPTION>
CARRIER POLICY NO. TERM COVERAGE EXPOSURE/RATE LIMITS
PREMIUM
- --------- ------------ -------- --------- ---------------------------- -------------------------------- -----
<S> <C> <C> <C> <C> <C> <C>
Federal (96)7626-89 01/01/95 Workers' FL-8810 $213,000 .71 Workers' Compensation: Statutory $61,612
Insurance. -79 -96 Compensation NY-8810 $660,000 .57
Co sation Experience Mod. .97 Employers Liability:
Premium Disc. 10.1% Bodily Injury by Accident:
$100,000 each accident
IL-8810 $18,900,000 .42
IL-8742 $ 710,000 .92 Bodily Injury by Disease:
Experience Mod. .97 $500,000 policy limit
IL Schedule Credit 25%
Premium Discount 10.1% Bodily Injury by Disease:
$100,000 each employee
Flat Coverage Monopolistic
Fund States 50. x 6
Expense Constant 160
- ---------------------------------------------------------------------------------------------------------------------------------
Federal 681-26-32 01/01/95 Financial Blanket Personal $2,000,000 General Aggregate $21,686.92
Insurance -96 Package Property Limit $11,070,000 (other than Products Completed
Co. Policy Operations)
Two Scheduled Locations: $1,000,000 Products Completed
Puerto Rico $30,300 Operations Aggregate Limit
1510 Skokie Blvd. $600,000
$1,000,000 Personal & Advertising
Library Values: $80,000 Injury Limit
Fine Arts: $399,387 $1,000,000 Each Occurrence Limit
Inland Marine - Valuable $10,000 Medical Expense Limit
Papers
General Liability based on $100,000 Personal Property Damage
square feet to Rented Premises Limit
- ---------------------------------------------------------------------------------------------------------------------------------
Vigilant 7312-72-46 01/01/95 Foreign Liability & N.O. Auto $1,765 General Liability: $3,100
Insurance -96 Package Policy Workers' Compensation 1,335 $1,000,000 Commercial Liability
Co. for Bodily Injury or Property
General Damage Liability per occurrence
Liability $50 Per Person, per trip- & Personal Injury or Advertising
Flat. Based on: Injury caused by an offense
Automobile Total Employees - 20 $1,000,000 Annual Aggregate -
Liability-DIC/ No. of Trips 49 Products/Completed Operations
Excess Auto Total No. of Days 104
$250,000 Fire Legal Liability
Foreign Volun- $10,000 Medical Expense Per person
ary Workers'
Compensation $30,000 Medical Expense per accident
Automobile Liability - DIC/Excess Auto
$1,000,000 Bodily Injury per person
$1,000,000 Bodily Injury per occurrence
$1,000,000 Property damage per occurrence
$10,000 Medial Expense per person
$30,000 Medical Per Accident
Foreign Voluntary Workers'
Compensation - Statutory
$100,000 Employers Liability Limit
$20,000 Repatriation Expense for
any one Employee
- ---------------------------------------------------------------------------------------------------------------------------------
St. Paul IM01200804 01/01/95 Electronic Data/Media Flat $400 for Computer Equipment $4,132,731 $6,987
Insurance -96 Data $500,000 limit
Co. Processing
Business Interruption -
1,000,000 limit Valuable Papers & Records 600,000
Contingent Business Interrup-
tion: 1,000,000 - Kansas City Business Interruption 1,000,000
100,000 - Downers Grove
Deductible Contingent Business
Computer Equipment, Data and Interruption 1,100,000
Media and Extra Expense
Combined $1,000
Special Breakdown Deductible Extra Expense 500,000
$5,000
Transit
Computer Equipment $50,000
Data & Media $50,000
Valuable Papers $5,000
- ---------------------------------------------------------------------------------------------------------------------------------
Gulf GA5743948P 02/15/96 Excess Mutual $15,000,000 excess of $5,000,000 $540,935
Insurance -96 Fund D&O/E&O excess of underlying deductible
Company
- ---------------------------------------------------------------------------------------------------------------------------------
Federal 81391969-A 02/15/95 Investment Limits of Liability $25,000,000 $211,312
Insurance -96 Company Assets Extended Forgery 10,000,000
Co. Protection Bond Threats to Persons 5,000,000
Uncollectible items of Deposit 500,000
Audit Expense 100,000
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
EXHIBIT 9(b)
ADMINISTRATIVE AGREEMENT
BETWEEN
STEIN ROE ADVISOR TRUST
AND
STEIN ROE & FARNHAM INCORPORATED
STEIN ROE ADVISOR TRUST, a Massachusetts business trust
registered under the Securities Act of 1933 ("1933 Act") and
the Investment Company Act of 1940 ("1940 Act") (the
"Trust"), hereby appoints STEIN ROE & FARNHAM INCORPORATED, a
Delaware corporation, of Chicago, Illinois ("Administrator"),
to furnish certain administrative services with respect to
the Trust and the series of the Trust listed in Schedule A
hereto, as such schedule may be amended from time to time
(each such series hereinafter referred to as "Fund").
The Trust and Administrator hereby agree that:
1. ADMINISTRATIVE SERVICES. Subject to the terms of
this Agreement and the supervision and control of the Trust's
Board of Trustees ("Trustees"), Administrator shall provide
the following services with respect to the Trust:
(a) Preparation and maintenance of the Trust's registration
statement with the Securities and Exchange Commission
("SEC");
(b) Preparation and periodic updating of the prospectus and
statement of additional information for the Fund
("Prospectus");
(c) Preparation, filing with appropriate regulatory
authorities, and dissemination of various reports for the
Fund, including but not limited to semiannual reports to
shareholders under Section 30(d) of the 1940 Act, annual
and semiannual reports on Form N-SAR, and notices
pursuant to Rule 24f-2;
(d) Arrangement for all meetings of shareholders, including
the collection of all information required for
preparation of proxy statements, the preparation and
filing with appropriate regulatory agencies of such proxy
statements, the supervision of solicitation of
shareholders and shareholder nominees in connection
therewith, tabulation (or supervision of the tabulation)
of votes, response to all inquiries regarding such
meetings from shareholders, the public and the media, and
preparation and retention of all minutes and all other
records required to be kept in connection with such
meetings;
(e) Maintenance and retention of all Trust charter documents
and the filing of all documents required to maintain the
Trust's status as a Massachusetts business trust and as a
registered open-end investment company;
(f) Arrangement and preparation and dissemination of all
materials for meetings of the Board of Trustees and
committees thereof and preparation and retention of all
minutes and other records thereof;
(g) Preparation and filing of the Trust's Federal, state, and
local income tax returns and calculation of any tax
required to be paid in connection therewith;
(h) Calculation of all Trust and Fund expenses and
arrangement for the payment thereof;
(i) Calculation of and arrangement for payment of all income,
capital gain, and other distributions to shareholders of
each Fund;
(j) Determination, after consultation with the officers of
the Trust, of the jurisdictions in which shares of
beneficial interest of each Fund ("Shares") shall be
registered or qualified for sale, or may be sold pursuant
to an exemption from such registration or qualification,
and preparation and maintenance of the registration or
qualification of the Shares for sale under the securities
laws of each such jurisdiction;
(k) Provision of the services of persons who may be appointed
as officers of the Trust by the Board of Trustees (it is
agreed that some person or persons may be officers of
both the Trust and the Administrator, and that the
existence of any such dual interest shall not affect the
validity of this Agreement except as otherwise provided
by specific provision of applicable law);
(l) Preparation and, subject to approval of the Trust's Chief
Financial Officer, dissemination of the Trust's and each
Fund's quarterly financial information to the Board of
Trustees and preparation of such other reports relating
to the business and affairs of the Trust and each Fund as
the officers and Board of Trustees may from time to time
reasonably request;
(m) Administration of the Trust's Code of Ethics and periodic
reporting to the Board of Trustees of Trustee and officer
compliance therewith;
(n) Provision of internal legal, accounting, compliance,
audit, and risk management services and periodic
reporting to the Board of Trustees with respect to such
services;
(o) Negotiation, administration, and oversight of third party
services to the Trust including, but not limited to,
custody, tax, transfer agency, disaster recovery, audit,
and legal services;
(p) Negotiation and arrangement for insurance desired or
required of the Trust and administering all claims
thereunder;
(q) Response to all inquiries by regulatory agencies, the
press, and the general public concerning the business and
affairs of the Trust, including the oversight of all
periodic inspections of the operations of the Trust and
its agents by regulatory authorities and responses to
subpoenas and tax levies;
(r) Handling and resolution of any complaints registered with
the Trust by shareholders, regulatory authorities, and
the general public;
(s) Monitoring legal, tax, regulatory, and industry
developments related to the business affairs of the Trust
and communicating such developments to the officers and
Board of Trustees as they may reasonably request or as
the Administrator believes appropriate;
(t) Administration of operating policies of the Trust and
recommendation to the officers and the Board of Trustees
of the Trust of modifications to such policies to
facilitate the protection of shareholders or market
competitiveness of the Trust and Fund and to the extent
necessary to comply with new legal or regulatory
requirements;
(u) Responding to surveys conducted by third parties and
reporting of Fund performance and other portfolio
information; and
(v) Filing of claims, class actions involving portfolio
securities, and handling administrative matters in
connection with the litigation or settlement of such
claims.
2. USE OF AFFILIATED COMPANIES AND SUBCONTRACTORS. In
connection with the services to be provided by Administrator
under this Agreement, Administrator may, to the extent it
deems appropriate, and subject to compliance with the
requirements of applicable laws and regulations and upon
receipt of approval of the Trustees, make use of (i) its
affiliated companies and their directors, trustees, officers,
and employees and (ii) subcontractors selected by
Administrator, provided that Administrator shall supervise
and remain fully responsible for the services of all such
third parties in accordance with and to the extent provided
by this Agreement. All costs and expenses associated with
services provided by any such third parties shall be borne by
Administrator or such parties.
3. INSTRUCTIONS, OPINIONS OF COUNSEL, AND SIGNATURES.
At any time Administrator may apply to a duly authorized
agent of Trust for instructions regarding the Trust, and may
consult counsel for the Trust or its own counsel, in respect
of any matter arising in connection with this Agreement, and
it shall not be liable for any action taken or omitted by it
in good faith in accordance with such instructions or with
the advice or opinion of such counsel. Administrator shall
be protected in acting upon any such instruction, advice, or
opinion and upon any other paper or document delivered by the
Trust or such counsel believed by Administrator to be genuine
and to have been signed by the proper person or persons and
shall not be held to have notice of any change of authority
of any officer or agent of the Trust, until receipt of
written notice thereof from the Trust.
4. EXPENSES BORNE BY TRUST. Except to the extent
expressly assumed by Administrator herein or under a separate
agreement between the Trust and Administrator and except to
the extent required by law to be paid by Administrator, the
Trust shall pay all costs and expenses incidental to its
organization, operations and business. Without limitation,
such costs and expenses shall include but not be limited to:
(a) All charges of depositories, custodians and other
agencies for the safekeeping and servicing of its cash,
securities, and other property;
(b) All charges for equipment or services used for obtaining
price quotations or for communication between
Administrator or the Trust and the custodian, transfer
agent or any other agent selected by the Trust;
(c) All charges for investment advisory, portfolio
management, and accounting services provided to the Trust
by the Administrator, or any other provider of such
services;
(d) All charges for services of the Trust's independent
auditors and for services to the Trust by legal counsel;
(e) All compensation of Trustees, other than those affiliated
with Administrator, all expenses incurred in connection
with their services to the Trust, and all expenses of
meetings of the Trustees or committees thereof;
(f) All expenses incidental to holding meetings of
shareholders, including printing and of supplying each
record-date shareholder with notice and proxy
solicitation material, and all other proxy solicitation
expenses;
(g) All expenses of printing of annual or more frequent
revisions of the Trust's prospectus(es) and of supplying
each then-existing shareholder with a copy of a revised
prospectus;
(h) All expenses related to preparing and transmitting
certificates representing the Trust's shares;
(i) All expenses of bond and insurance coverage required by
law or deemed advisable by the Board of Trustees;
(j) All brokers' commissions and other normal charges
incident to the purchase, sale, or lending of Fund
securities;
(k) All taxes and governmental fees payable to Federal, state
or other governmental agencies, domestic or foreign,
including all stamp or other transfer taxes;
(l) All expenses of registering and maintaining the
registration of the Trust under the 1940 Act and, to the
extent no exemption is available, expenses of registering
the Trust's shares under the 1933 Act, of qualifying and
maintaining qualification of the Trust and of the Trust's
shares for sale under securities laws of various states
or other jurisdictions and of registration and
qualification of the Trust under all other laws
applicable to the Trust or its business activities;
(m) All interest on indebtedness, if any, incurred by the
Trust or a Fund; and
(n) All fees, dues and other expenses incurred by the Trust
in connection with membership of the Trust in any trade
association or other investment company organization.
5. ALLOCATION OF EXPENSES BORNE BY TRUST. Any expenses
borne by the Trust that are attributable solely to the
organization, operation or business of a Fund shall be paid
solely out of Fund assets. Any expense borne by the Trust
which is not solely attributable to a Fund, nor solely to any
other series of shares of the Trust, shall be apportioned in
such manner as Administrator determines is fair and
appropriate, or as otherwise specified by the Board of
Trustees.
6. EXPENSES BORNE BY ADMINISTRATOR. Administrator at
its own expense shall furnish all executive and other
personnel, office space, and office facilities required to
render the services set forth in this Agreement. However,
Administrator shall not be required to pay or provide any
credit for services provided by the Trust's custodian or
other agents without additional cost to the Trust.
In the event that Administrator pays or assumes any
expenses of the Trust or a Fund not required to be paid or
assumed by Administrator under this Agreement, Administrator
shall not be obligated hereby to pay or assume the same or
similar expense in the future; provided that nothing
contained herein shall be deemed to relieve Administrator of
any obligation to the Trust or a Fund under any separate
agreement or arrangement between the parties.
7. ADMINISTRATION FEE. For the services rendered,
facilities provided, and charges assumed and paid by
Administrator hereunder, the Trust shall pay to Administrator
out of the assets of each Fund fees at the annual rate for
such Fund as set forth in Schedule B to this Agreement. For
each Fund, the administrative fee shall accrue on each
calendar day, and shall be payable monthly on the first
business day of the next succeeding calendar month. The
daily fee accrual shall be computed by multiplying the
fraction of one divided by the number of days in the calendar
year by the applicable annual rate of fee, and multiplying
this product by the net assets of the Fund, determined in the
manner established by the Board of Trustees, as of the close
of business on the last preceding business day on which the
Fund's net asset value was determined.
8. STATE EXPENSE LIMITATION. If for any fiscal year of
a Fund, its aggregate operating expenses ("Aggregate
Operating Expenses") exceed the applicable percentage expense
limit imposed under the securities law and regulations of any
state in which Shares of the Fund are qualified for sale (the
"State Expense Limit"), the Administrator shall pay such Fund
the amount of such excess. For purposes of this State
Expense Limit, Aggregate Operating Expenses shall (a) include
(i) any fees or expense reimbursements payable to
Administrator pursuant to this Agreement and (ii) to the
extent the Fund invests all or a portion of its assets in
another investment company registered under the 1940 Act, the
pro rata portion of that company's operating expenses
allocated to the Fund, and (iii) any compensation payable to
Administrator pursuant to any separate agreement relating to
the Fund's investment operations and portfolio management,
but (b) exclude any interest, taxes, brokerage commissions,
and other normal charges incident to the purchase, sale or
loan of securities, commodity interests or other investments
held by the Fund, litigation and indemnification expense, and
other extraordinary expenses not incurred in the ordinary
course of business. Except as otherwise agreed to by the
parties or unless otherwise required by the law or regulation
of any state, any reimbursement by Administrator to a Fund
under this section shall not exceed the administrative fee
payable to Administrator by the Fund under this Agreement.
Any payment to a Fund by Administrator hereunder shall
be made monthly, by annualizing the Aggregate Operating
Expenses for each month as of the last day of the month. An
adjustment for payments made during any fiscal year of the
Fund shall be made on or before the last day of the first
month following such fiscal year of the Fund if the Annual
Operating Expenses for such fiscal year (i) do not exceed the
State Expense Limitation or (ii) for such fiscal year there
is no applicable State Expense Limit.
9. NON-EXCLUSIVITY. The services of Administrator to
the Trust hereunder are not to be deemed exclusive and
Administrator shall be free to render similar services to
others.
10. STANDARD OF CARE. Neither Administrator, nor any
of its directors, officers or stockholders, agents or
employees shall be liable to the Trust, any Fund, or its
shareholders for any action taken or thing done by it or its
subcontractors or agents on behalf of the Trust or the Fund
in carrying out the terms and provisions of this Agreement if
done in good faith and without negligence or misconduct on
the part of Administrator, its subcontractors, or agents.
11. INDEMNIFICATION. The Trust shall indemnify and
hold Administrator and its controlling persons, if any,
harmless from any and all claims, actions, suits, losses,
costs, damages, and expenses, including reasonable expenses
for counsel, incurred by it in connection with its acceptance
of this Agreement, in connection with any action or omission
by it or its agents or subcontractors in the performance of
its duties hereunder to the Trust, or as a result of acting
upon any instruction believed by it to have been executed by
a duly authorized agent of the Trust or as a result of acting
upon information provided by the Trust in form and under
policies agreed to by Administrator and the Trust, provided
that: (i) to the extent such claims, actions, suits, losses,
costs, damages, or expenses relate solely to a particular
Fund or group of Funds, such indemnification shall be only
out of the assets of that Fund or group of Funds; (ii) this
indemnification shall not apply to actions or omissions
constituting negligence or misconduct of Administrator or its
agents or subcontractors, including but not limited to
willful misfeasance, bad faith, or gross negligence in the
performance of their duties, or reckless disregard of their
obligations and duties under this Agreement; and (iii)
Administrator shall give the Trust prompt notice and
reasonable opportunity to defend against any such claim or
action in its own name or in the name of Administrator.
Administrator shall indemnify and hold harmless the
Trust from and against any and all claims, demands, expenses
and liabilities which such Trust may sustain or incur arising
out of, or incurred because of, the negligence or misconduct
of Administrator or its agents or subcontractors, provided
that such Trust shall give Administrator prompt notice and
reasonable opportunity to defend against any such claim or
action in its own name or in the name of such Trust.
12. EFFECTIVE DATE, AMENDMENT, AND TERMINATION. This
Agreement shall become effective as to any Fund as of the
effective date for that Fund specified in Schedule A hereto
and, unless terminated as hereinafter provided, shall remain
in effect with respect to such Fund thereafter from year to
year so long as such continuance is specifically approved
with respect to that Fund at least annually by a majority of
the Trustees who are not interested persons of Trust or
Administrator.
As to any Trust or Fund of that Trust, this Agreement
may be modified or amended from time to time by mutual
agreement between the Administrator and the Trust and may be
terminated by Administrator or Trust by at least sixty (60)
days' written notice given by the terminating party to the
other party. Upon termination as to any Fund, the Trust
shall pay to Administrator such compensation as may be due
under this Agreement as of the date of such termination and
shall reimburse Administrator for its costs, expenses, and
disbursements payable under this Agreement to such date. In
the event that, in connection with a termination, a successor
to any of the duties or responsibilities of Administrator
hereunder is designated by the Trust by written notice to
Administrator, upon such termination Administrator shall
promptly, and at the expense of the Trust or Fund with
respect to which this Agreement is terminated, transfer to
such successor all relevant books, records, and data
established or maintained by Administrator under this
Agreement and shall cooperate in the transfer of such duties
and responsibilities, including provision, at the expense of
such Fund, for assistance from Administrator personnel in the
establishment of books, records, and other data by such
successor.
13. ASSIGNMENT. Any interest of Administrator under
this Agreement shall not be assigned either voluntarily or
involuntarily, by operation of law or otherwise, without the
prior written consent of Trust.
14. BOOKS AND RECORDS. Administrator shall maintain,
or oversee the maintenance by such other persons as may from
time to time be approved by the Board of Trustees to
maintain, the books, documents, records, and data required to
be kept by the Trust under the 1940 Act, the laws of the
Commonwealth of Massachusetts or such other authorities
having jurisdiction over the Trust or the Fund or as may
otherwise be required for the proper operation of the
business and affairs of the Trust or the Fund (other than
those required to be maintained by any investment adviser
retained by the Trust on behalf of a Fund in accordance with
Section 15 of the 1940 Act).
Administrator will periodically send to the Trust all
books, documents, records, and data of the Trust and each of
its Funds listed in Schedule A that are no longer needed for
current purposes or required to be retained as set forth
herein. Administrator shall have no liability for loss or
destruction of said books, documents, records, or data after
they are returned to such Trust.
Administrator agrees that all such books, documents,
records, and data which it maintains shall be maintained in
accordance with Rule 31a-3 of the 1940 Act and that any such
items maintained by it shall be the property of the Trust.
Administrator further agrees to surrender promptly to the
Trust any such items it maintains upon request, provided that
the Administrator shall be permitted to retain a copy of all
such items. Administrator agrees to preserve all such items
maintained under Rule 31a-1 for the period prescribed under
Rule 31a-2 of the 1940 Act.
Trust shall furnish or otherwise make available to
Administrator such copies of the financial statements, proxy
statements, reports, and other information relating to the
business and affairs of each Fund of the Trust as
Administrator may, at any time or from time to time,
reasonably require in order to discharge its obligations
under this Agreement.
15. NON-LIABILITY OF TRUSTEES AND SHAREHOLDERS. Any
obligation of Trust hereunder shall be binding only upon the
assets of Trust (or the applicable Fund thereof) and shall
not be binding upon any Trustee, officer, employee, agent or
shareholder of Trust. Neither the authorization of any
action by the Trustees or shareholders of Trust nor the
execution of this Agreement on behalf of Trust shall impose
any liability upon any Trustee or any shareholder.
16. USE OF ADMINISTRATOR'S NAME. The Trust may use its
name and the names of its Funds listed in Schedule A or any
other name derived from the name "Stein Roe & Farnham" only
for so long as this Agreement or any extension, renewal, or
amendment hereof remains in effect, including any similar
agreement with any organization which shall have succeeded to
the business of Administrator as it relates to the services
it has agreed to furnish under this Agreement. At such time
as this Agreement or any extension, renewal or amendment
hereof, or such other similar agreement shall no longer be in
effect, Trust will cease to use any name derived from the
name "Stein Roe & Farnham" or otherwise connected with
Administrator, or with any organization which shall have
succeeded to Administrator's business herein described.
17. REFERENCES AND HEADINGS. In this Agreement and in
any such amendment, references to this Agreement and all
expressions such as "herein," "hereof," and "hereunder" shall
be deemed to refer to this Agreement as amended or affected
by any such amendments. Headings are placed herein for
convenience of reference only and shall not be taken as a
part hereof or control or affect the meaning, construction or
effect of this Agreement. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an
original.
Dated: February 14, 1997
STEIN ROE ADVISOR TRUST
ATTEST: By: TIMOTHY K. ARMOUR
Timothy K. Armour
President
NICOLETTE D. PARRISH
Nicolette D. Parrish
Assistant Secretary
STEIN ROE & FARNHAM INCORPORATED.
ATTEST: By: HANS P. ZIEGLER
Hans P. Ziegler
Chief Executive Officer
NICOLETTE D. PARRISH
Nicolette D. Parrish,
Assistant Secretary
<PAGE>
STEIN ROE ADVISOR TRUST
ADMINISTRATIVE AGREEMENT
SCHEDULE A
The Funds of the Trust currently subject to this Agreement
are as follows:
Name of Series Effective Date
- -------------------------------------- -----------------
Stein Roe Advisor Growth & Income Fund February 14, 1997
Stein Roe Advisor International Fund February 14, 1997
Stein Roe Advisor Young Investor Fund February 14, 1997
Stein Roe Advisor Special Venture Fund February 14, 1997
Stein Roe Advisor Balanced Fund February 14, 1997
Stein Roe Advisor Growth Stock Fund February 14, 1997
Stein Roe Advisor Special Fund February 14, 1997
Dated: February 14, 1997
<PAGE>
STEIN ROE ADVISOR TRUST
ADMINISTRATIVE AGREEMENT
SCHEDULE B
Compensation pursuant to Section 7 of this Agreement shall be
calculated with respect to each Fund in accordance with the
following schedule applicable to average daily net assets of
the Fund:
Fund Administrative Fee Schedule
- --------------------------- --------------------------------
Stein Roe Advisor Growth &
Income Fund 0.15% of the first $500 million,
0.125% of the next $500 million,
0.10% thereafter
Stein Roe Advisor Inter-
national Fund 0.15%
Stein Roe Advisor Young
Investor Fund 0.20% of the first $500 million,
0.15% of the next $500 million,
0.125% thereafter
Stein Roe Advisor Special
Venture Fund 0.15%
Stein Roe Advisor Balanced
Fund 0.15% of the first $500 million,
0.125% of the next $500 million,
0.10% thereafter
Stein Roe Advisor Growth
Stock Fund 0.15% of the first $500 million,
0.125% of the next $500 million,
0.10% thereafter
Stein Roe Advisor Special
Fund 0.15% of the first $500 million,
0.125% of the next $500 million,
0.10% of the next $500 million,
0.075% thereafter
Dated: February 14, 1997
<PAGE>
EXHIBIT 9(c)
ACCOUNTING AND BOOKKEEPING AGREEMENT
This Agreement is made this 14th day of February. 1997,
by and between STEIN ROE ADVISOR TRUST, a Massachusetts
business trust, (hereinafter referred to as the "Trust") and
STEIN ROE & FARNHAM INCORPORATED ("Stein Roe"), a Delaware
corporation.
1. Appointment. The Trust hereby appoints Stein Roe to act
as its agent to perform the services described herein with
respect to each series of shares of the Trust (the "Series")
identified in and beginning on the date specified on Appendix
I to this Agreement, as may be amended from time to time.
Stein Roe hereby accepts appointment as the Trust's agent and
agrees to perform the services described herein.
2. Accounting.
(a) Pricing. For each Series of the Trust, Stein Roe
shall value all securities and other assets of the
Series, and compute the net asset value per share of
such Series, at such times and dates and in the
manner and by such methodology as is specified in the
then currently effective prospectus and statement of
additional information for such Series, and pursuant
to such other written procedures or instructions
furnished to Stein Roe by the Trust. To the extent
procedures or instructions used to value securities
or other assets of a Series under this Agreement are
at any time inconsistent with any applicable law or
regulation, the Trust shall provide Stein Roe with
written instructions for valuing such securities or
assets in a manner which the Trust represents to be
consistent with applicable law and regulation.
(b) Net Income. Stein Roe shall calculate with such
frequency as the Trust shall direct, the net income
of each Series of the Trust for dividend purposes and
on a per share basis. Such calculation shall be at
such times and dates and in such manner as the Trust
shall instruct Stein Roe in writing. For purposes of
such calculation, Stein Roe shall not be responsible
for determining whether any dividend or interest
accruable to the Trust is or will be actually paid,
but will accrue such dividend and interest unless
otherwise instructed by the Trust.
(c) Capital Gains and Losses. Stein Roe shall calculate
gains or losses of each Series of the Trust from the
sale or other disposition of assets of that Series as
the Trust shall direct.
(d) Yields. At the request of the Trust, Stein Roe shall
compute yields for each Series of the Trust for such
periods and using such formula as shall be instructed
by the Trust.
(e) Communication of Information. Stein Roe shall
provide the Trust, the Trust's transfer agent and
such other parties as directed by the Trust with the
net asset value per share, the net income per share
and yields for each Series of the Trust at such time
and in such manner and format and with such frequency
as the parties mutually agree.
(f) Information Furnished by the Trust. The Trust shall
furnish Stein Roe with any and all instructions,
explanations, information, specifications and
documentation deemed necessary by Stein Roe in the
performance of its duties hereunder, including,
without limitation, the amounts and/or written
formula for calculating the amounts, and times of
accrual of liabilities and expenses of each Series of
the Trust. The Trust shall also at any time and from
time to time furnish Stein Roe with bid, offer and/or
market values of securities owned by the Trust if the
same are not available to Stein Roe from a pricing or
similar service designated by the Trust for use by
Stein Roe to value securities or other assets. Stein
Roe shall at no time be required to commence or
maintain any utilization of, or subscriptions to, any
such service which shall be the sole responsibility
and expense of the Trust.
3. Recordkeeping.
(a) Stein Roe shall, as agent for the Trust, maintain and
keep current and preserve the general ledger and
other accounts, books, and financial records of the
Trust relating to activities and obligations under
this Agreement in accordance with the applicable
provisions of Section 31(a) of the General Rules and
Regulations under the Investment Company Act of 1940,
as amended (the "Rules").
(b) All records maintained and preserved by Stein Roe
pursuant to this Agreement which the Trust is
required to maintain and preserve in accordance with
the Rules shall be and remain the property of the
Trust and shall be surrendered to the Trust promptly
upon request in the form in which such records have
been maintained and preserved.
(c) Stein Roe shall make available on its premises during
regular business hours all records of a Trust for
reasonable audit, use and inspection by the Trust,
its agents and any regulatory agency having authority
over the Trusts.
4. Instructions, Opinion of Counsel, and Signatures.
(a) At any time Stein Roe may apply to a duly authorized
agent of the Trust for instructions regarding the
Trust, and may consult counsel for such Trust or its
own counsel, in respect of any matter arising in
connection with this Agreement, and it shall not be
liable for any action taken or omitted by it in good
faith in accordance with such instructions or with
the advice or opinion of such counsel. Stein Roe
shall be protected in acting upon any such
instruction, advice, or opinion and upon any other
paper or document delivered by the Trust or such
counsel believed by Stein Roe to be genuine and to
have been signed by the proper person or persons and
shall not be held to have notice of any change of
authority of any officer or agent of the Trust, until
receipt of written notice thereof from such Trust.
(b) Stein Roe may receive and accept a certified copy of
a vote of the Board of Trustees of the Trust as
conclusive evidence of (i) the authority of any
person to act in accordance with such vote or (ii)
any determination or any action by the Board of
Trustees pursuant to its Agreement and Declaration of
Trust as described in such vote, and such vote may be
considered as in full force and effect until receipt
by Stein Roe of written notice to the contrary.
5. Compensation. The Trust shall reimburse Stein Roe from
the assets of the respective applicable Series of the Trust,
for any and all out-of-pocket expenses and charges in
performing services under this Agreement and such
compensation as is provided in Appendix II to this Agreement,
as amended from time to time. Stein Roe shall invoice the
Trust as soon as practicable after the end of each calendar
month, with allocation among the respective Series and full
detail, and the Trust shall promptly pay Stein Roe the
invoiced amount.
6. Confidentiality of Records. Stein Roe agrees not to
disclose any information received from the Trust to any other
client of Stein Roe or to any other person except its
employees and agents, and shall use its best efforts to
maintain such information as confidential. Upon termination
of this Agreement, Stein Roe shall return to the Trust all
records in the possession and control of Stein Roe related to
such Trust's activities, other than Stein Roe's own business
records, it being also understood and agreed that any
programs and systems used by Stein Roe to provide the
services rendered hereunder will not be given to any Trust.
7. Liability and Indemnification.
(a) Stein Roe shall not be liable to any Trust for any
action taken or thing done by it or its employees or
agents on behalf of the Trust in carrying out the
terms and provisions of this Agreement if done in
good faith and without negligence or misconduct on
the part of Stein Roe, its employees or agents.
(b) The Trust shall indemnify and hold Stein Roe, and its
controlling persons, if any, harmless from any and
all claims, actions, suits, losses, costs, damages,
and expenses, including reasonable expenses for
counsel, incurred by it in connection with its
acceptance of this Agreement, in connection with any
action or omission by it or its employees or agents
in the performance of its duties hereunder to the
Trust, or as a result of acting upon instructions
believed by it to have been executed by a duly
authorized agent of the Trust or as a result of
acting upon information provided by the Trust in form
and under policies agreed to by Stein Roe and the
Trust, provided that: (i) to the extent such claims,
actions, suits, losses, costs, damages, or expenses
relate solely to one or more Series, such
indemnification shall be only out of the assets of
that Series or group of Series; (ii) this
indemnification shall not apply to actions or
omissions constituting negligence or misconduct on
the part of Stein Roe or its employees or agents,
including but not limited to willful misfeasance, bad
faith, or gross negligence in the performance of
their duties, or reckless disregard of their
obligations and duties under this Agreement; and
(iii) Stein Roe shall give the Trust prompt notice
and reasonable opportunity to defend against any such
claim or action in its own name or in the name of
Stein Roe.
(c) Stein Roe shall indemnify and hold harmless the Trust
from and against any and all claims, demands,
expenses and liabilities which such Trust may sustain
or incur arising out of, or incurred because of, the
negligence or misconduct of Stein Roe or its agents
or contractors, or the breach by Stein Roe of its
obligations under this Agreement, provided that: (i)
this indemnification shall not apply to actions or
omissions constituting negligence or misconduct on
the part of such Trust or its other agents or
contractors and (ii) such Trust shall give Stein Roe
prompt notice and reasonable opportunity to defend
against any such claim or action in its own name or
in the name of such Trust.
8. Further Assurances. Each party agrees to perform such
further acts and execute such further documents as are
necessary to effectuate the purposes hereof.
9. Dual Interests. It is understood and agreed that some
person or persons may be trustees, officers, or shareholders
of both the Trusts and Stein Roe, and that the existence of
any such dual interest shall not affect the validity hereof
or of any transactions hereunder except as otherwise provided
by specific provision of applicable law.
10. Amendment and Termination. This Agreement may be
modified or amended from time to time, or terminated, by
mutual agreement between the parties hereto and may be
terminated by at least one hundred eighty (180) days' written
notice given by one party to the other. Upon termination
hereof, the Trust shall pay to Stein Roe such compensation as
may be due from it as of the date of such termination, and
shall reimburse Stein Roe for its costs, expenses, and
disbursements payable under this Agreement to such date. In
the event that, in connection with termination, a successor
to any of the duties or responsibilities of Stein Roe
hereunder is designated by a Trust by written notice to Stein
Roe, Stein Roe shall promptly upon such termination and at
the expense of such Trust, deliver to such successor all
relevant books, records, and data established or maintained
by Stein Roe under this Agreement and shall cooperate in the
transfer of such duties and responsibilities, including
provision, at the expense of such Trust, for assistance from
Stein Roe personnel in the establishment of books, records,
and other data by such successor.
11. Assignment. Any interest of Stein Roe under this
Agreement shall not be assigned or transferred either
voluntarily or involuntarily, by operation of law or
otherwise, without prior written notice to the Trust.
12. Notice. Any notice under this Agreement shall be in
writing, addressed and delivered or sent by registered mail,
postage prepaid to the other party at such address as such
other party may designate for the receipt of such notices.
Until further notice to the other parties, it is agreed that
the address of the Trust and Stein Roe is One South Wacker
Drive, Chicago, Illinois 60606, Attention: Secretary.
13. Non-Liability of Trustees and Shareholders. Any
obligation of the Trust hereunder shall be binding only upon
the assets of that Trust (or the applicable Series thereof),
as provided in the Agreement and Declaration of Trust of that
Trust, and shall not be binding upon any Trustee, officer,
employee, agent or shareholder of the Trust or upon any other
Trust. Neither the authorization of any action by the
Trustees or the shareholders of the Trust, nor the execution
of this Agreement on behalf of the Trust shall impose any
liability upon any Trustee or any shareholder. Nothing in
this Agreement shall protect any Trustee against any
liability to which such Trustee would otherwise be subject by
willful misfeasance, bad faith or gross negligence in the
performance of his duties, or reckless disregard of his
obligations and duties under this Agreement. In connection
with the discharge and satisfaction of any claim made by
Stein Roe against the Trust involving more than one Series,
the Trust shall have the exclusive right to determine the
appropriate allocations of liability for any such claim
between or among the Series.
14. References and Headings. In this Agreement and in any
such amendment, references to this Agreement and all
expressions such as "herein," "hereof," and "hereunder,"
shall be deemed to refer to this Agreement as amended or
affected by any such amendments. Headings are placed herein
for convenience of reference only and shall not be taken as
part hereof or control or affect the meaning, construction or
effect of this Agreement. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an
original.
15. Governing Law. This Agreement shall be governed by the
laws of the State of Illinois.
IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed as of the day and year first above
written.
STEIN ROE ADVISOR TRUST
ATTEST: By: TIMOTHY K. ARMOUR
Timothy K. Armour
President
NICOLETTE D. PARRISH
Nicolette D. Parrish
Assistant Secretary
STEIN ROE & FARNHAM INCORPORATED.
ATTEST: By: TIMOTHY K. ARMOUR
Timothy K. Armour
President, Mutual Funds Division
NICOLETTE D. PARRISH
Nicolette D. Parrish,
Assistant Secretary
<PAGE>
STEIN ROE ADVISOR TRUST
ACCOUNTING & BOOKKEEPING AGREEMENT
APPENDIX I
The series of Stein Roe Advisor Trust currently subject to
this Agreement are as follows:
Series Effective Date
- -------------------------------------- -----------------
Stein Roe Advisor Growth & Income Fund February 14, 1997
Stein Roe Advisor International Fund February 14, 1997
Stein Roe Advisor Young Investor Fund February 14, 1997
Stein Roe Advisor Special Venture Fund February 14, 1997
Stein Roe Advisor Balanced Fund February 14, 1997
Stein Roe Advisor Growth Stock Fund February 14, 1997
Stein Roe Advisor Special Fund February 14, 1997
Dated: February 14, 1997
<PAGE>
STEIN ROE ADVISOR TRUST
ACCOUNTING & BOOKKEEPING AGREEMENT
APPENDIX II
For the services provided under the Accounting &
Bookkeeping Agreement (the "Agreement"), the Trust shall pay
Stein Roe an annual fee with respect to each series,
calculated and paid monthly, equal to $25,000 plus .0025
percent per annum of the average daily net assets of the
series in excess of $50 million. Such fee shall be paid
within thirty days after receipt of monthly invoice.
<PAGE> 1
EXHIBIT 9(d)
SUB-TRANSFER AGENT AGREEMENT
Agreement dated as of July 3, 1996, between SteinRoe
Services Inc. ("SSI"), a Massachusetts corporation, for
itself and on behalf SteinRoe Municipal Trust, SteinRoe
Income Trust and SteinRoe Investment Trust, each a
Massachusetts business trust (all referred to herein as the
"Trust") comprised of the series of portfolios listed in
Schedule A (as the same may from time to time be amended to
add or to delete one or more series, all referred to herein
as the "Fund"), and Colonial Investors Service Center, Inc.
("CISC"), a Massachusetts corporation.
WHEREAS, the Trust has appointed SSI as Transfer Agent,
Registrar and Dividend Disbursing Agent for the Fund, a
registered investment company, pursuant to Restated Agency
Agreement dated August 1, 1995 ("Transfer Agent Agreement");
WHEREAS, SSI is a registered transfer agent duly
authorized to appoint CISC as its agent for purposes of
performing certain transfer agency, registration and dividend
disbursement services in respect of the Trust;
WHEREAS, CISC desires to accept such appointment and to
perform such services upon the terms and subject to the
conditions set forth herein; and
WHEREAS, Stein Roe & Farnham, Inc. ("SRF") is the
investment adviser to the Fund and Liberty Securities
Corporation is the principal underwriter of its shares.
NOW THEREFORE, in consideration of the mutual promises
and covenants set forth herein, the parties hereto agree as
follows:
1. Appointment. SSI hereby appoints CISC to act as its
agent in respect of the purchase, redemption and transfer of
Fund shares and dividend disbursing services in connection
with such shares other than with respect to Fund shares (a)
held under Stein Roe Counselor [service mark] for which SSI
shall perform such services and (b) held in omnibus accounts
with respect to which such services are performed by third
party financial institutions as described in the Fund's
Prospectus from time to time. CISC accepts such appointments
and will perform the duties and functions described herein in
the manner hereinafter set forth. In respect of its duties
and obligations pursuant to this Agreement, CISC will act as
agent of SSI and not as agent of the Trust nor the Fund.
CISC agrees to provide the necessary facilities,
equipment and personnel to perform its duties and obligations
hereunder in accordance with the practice of transfer agents
of investment companies registered with the Securities and
Exchange Commission and in compliance with all laws
applicable to mutual fund transfer agents and the Fund.
<PAGE> 2
CISC agrees that it shall perform usual and ordinary
services as transfer agent, registrar and dividend disbursing
agent, which are necessary and appropriate for investment
companies registered with the Securities and Exchange
Commission, except as otherwise specifically excluded herein,
including but not limited to: receiving and processing
payments for purchases of Fund shares, opening shareholder
accounts, receiving and processing requests for liquidation
of Fund shares , transferring and canceling stock
certificates, maintaining all shareholder accounts, preparing
annual shareholder meetings lists, corresponding with
shareholders regarding transaction rejections, providing
order room services to brokers, withholding taxes on
accounts, disbursing income dividends and capital gains
distributions, preparing and filing U.S. Treasury Department
Form 1099 for shareholders, preparing and mailing
confirmation forms to shareholders for all purchases and
liquidations of Fund shares and other confirmable
transactions in shareholder accounts, recording reinvestment
of dividends and distributions in Fund shares, and causing
liquidation of shares and disbursements to be made to
withdrawal plan holders. The services to be performed by
CISC under this Agreement may be set forth in a procedures
manual and other documents as mutually agreed to by CISC and
SSI. Specifically excluded from the services to be provided
by CISC are the following: mailing proxy materials,
receiving and tabulating proxies, mailing shareholder reports
and prospectuses, account research, shareholder
correspondence and telephone services regarding general
inquiries, information requests and all other matters except
transaction rejections, all of which SRS agrees to continue
to perform directly on behalf of the Trust and the Fund.
2. Fees and Charges. SSI will pay CISC for the services
provided hereunder in accordance with and in the manner set
forth in Schedule B to this Agreement.
3. Representations and Warranties of CISC. CISC
represents and warrants to SSI that:
(a) It is a corporation duly organized and existing in
good standing under the laws of the Commonwealth of
Massachusetts;
(b) It is duly qualified to carry on its business in the
Commonwealth of Massachusetts;
(c) It is empowered under applicable state and federal
laws and by its Articles of Organization and By-Laws
to enter into and perform the services contemplated
by this Agreement and it is in compliance and shall
continue during the term of this Agreement to be in
compliance with all such applicable laws;
(d) All requisite corporate proceedings have been taken
to authorize it to enter into and perform this
Agreement;
(e) It has and shall continue to have and maintain the
necessary facilities, equipment and personnel to
perform its duties and obligations under this
Agreement; and
<PAGE> 3
(f) It has filed a Registration Statement on SEC Form TA-
1 and will file timely an amendment to same
respecting this Sub-Transfer Agent Agreement with the
Securities and Exchange Commission, it is duly
registered as a transfer agent as provided in Section
17Ac of the Securities and Exchange Act of 1934, and
it will remain so registered and will comply with all
state and federal laws and regulations relating to
transfer agents throughout the term of this
Agreement.
4. Representations and Warranties of SSI. SSI
represents and warrants to CISC that:
(a) It is a corporation duly organized and existing in
good standing under the laws of the Commonwealth of
Massachusetts;
(b) It is duly qualified to carry on its business in the
State of Illinois;
(c) It is empowered under applicable state and federal
laws and by its Articles of Organization and By-Laws
to enter into and perform the services contemplated
in this Agreement and in the Transfer Agent Agreement
and it is in compliance and shall continue during the
term of this Agreement to be in compliance with the
Transfer Agent Agreement and all such applicable
laws;
(d) All requisite corporate proceedings have been taken
to authorize it to enter into and perform this
Agreement;
(e) It has and shall continue to have and maintain the
necessary facilities, equipment and personnel to
perform its duties and obligations under this
Agreement and the Transfer Agent Agreement; and
(f) It has filed a Registration Statement on SEC Form TA-
1 and will file timely an amendment to same
respecting this Sub-Transfer Agent Agreement with the
Securities and Exchange Commission; it is duly
registered as a Transfer Agent as provided in Section
17Ac of the Securities Exchange Act of 1934; and it
will remain so registered and comply with all state
and federal laws and regulations relating to transfer
agents throughout the term of this Agreement.
5. Representations and Warranties of the Trust. The
Trust represents and warrants to CISC that:
(a) It is a business trust duly organized and existing
and in good standing under the laws of the State of
Massachusetts;
(b) The Fund is an open-end diversified management
investment company registered under the Investment
Company Act of 1940;
<PAGE> 4
(c) Registration statements under the Securities Act of
1933 and applicable state laws are currently
effective and will remain effective at all times with
respect to all shares of the Fund being offered for
sale;
(d) The Trust is empowered under applicable laws and
regulations and by its Agreement and Declaration of
Trust and By-Laws to enter into and perform this
Agreement; and
(e) All requisite proceedings and actions have been
taken to authorize it to enter into and perform this
Agreement.
6. Copies of Documents. SSI promptly from time to time
will furnish CISC with copies of the following Trust and Fund
documents and all amendments or supplements thereto: the
Agreement and Declaration of Trust ; the By-Laws; and the
Registration Statement under Securities Act of 1933, as
amended, and the Investment Company Act of 1940, as amended,
together with any other information reasonably requested by
CISC. The Prospectus and Statement of Additional Information
contained in such Registration Statement, as from time to
time amended and supplemented, are herein collectively
referred to as the "Fund's Prospectus."
On or before the date of effectiveness of this
Agreement, or as soon thereafter as is reasonably
practicable, and from time-to-time thereafter, SSI will
furnish CISC with certified copies of the resolutions of the
Trustees of the Trust authorizing this Agreement and
designating authorized persons to give instructions to CISC;
if applicable, a specimen of the certificate for shares of
the Fund in the form approved by the Trustees of the Trust,
with a certificate of the Secretary of the Trust as to such
approval; and certificates as to any change in any officer,
director, or authorized person of the SSI and the Trust.
7. Share Certificates. The Fund has resolved that all
of the Fund's shares shall hereafter be issued in
uncertificated form. Thus, CISC shall not be responsible for
the issuance of certificates representing shares in the Fund.
However, CISC shall maintain a record of each certificate
previously issued and outstanding, the number of shares
represented thereby, and the holder of record of such shares.
8. Lost or Destroyed Certificates. In case of the
alleged loss or destruction of any share certificate, no new
certificate shall be issued in lieu thereof, unless there
shall first be furnished to CISC an affidavit of loss or non-
receipt by the holder of shares with respect to which a
certificate has been lost or destroyed, supported by an
appropriate bond paid for by the shareholder which is
satisfactory to CISC and issued by a surety company
satisfactory to CISC. CISC shall place and maintain stop
transfer instructions on all lost certificates as to which it
receives notice.
9. Receipt of Funds for Investment. CISC will maintain
one or more accounts with The First National Bank of Boston
("Bank"),in the name of SSI into which
<PAGE> 5
it will deposit funds payable to CISC or SSI as agent for, or
otherwise identified as being for the account of, the Trust
or the Fund.
10. Shareholder Accounts. Upon receipt of any funds
referred to in paragraph 9, CISC will compute the number of
shares purchased by the shareholder according to the net
asset value of Fund shares determined in accordance with
applicable federal laws and regulations and as described in
the Prospectus of the Fund and:
(a) In the case of a new shareholder, open and maintain
an open account for such shareholder in the name or
names set forth in the subscription application form;
(b) Send to the shareholder a confirmation indicating the
amount of full and fractional shares purchased (in
the case of fractional shares, rounded to three
decimal places) and the price per share;
(c) In the case of a request to establish a plan or
program being offered by the Fund's Prospectus, open
and maintain such plan or program for the shareholder
in accordance with the terms thereof; and
(d) Perform such other services and initiate and maintain
such other books and records as are customarily
undertaken by transfer agents in maintaining
shareholder accounts for registered investment
company investors;
all subject to requirements set forth in the Fund's
Prospectus with respect to rejection of orders.
For closed accounts, CISC will maintain account records
through June of the calendar year following the year in which
the account is closed, or such other period of time as CISC
and SSI shall mutually agree in writing from time to time.
11. Unpaid Checks; Accounts Assigned for Collection.
If any check or other order for payment of money on the
account of any shareholder or new investor is returned unpaid
for any reason, CISC will:
(a) Give prompt notification to SRS of such non-payment
by facsimile sent prior to 9 a.m. E.S.T.; and
(b) Upon SSI's written instruction, received by facsimile
delivery not later than 11 a.m. E.S.T., authorize
payment of such order notwithstanding insufficient
shareholder account funds, on the condition that SSI
shall indemnify CISC and payor bank in respect of
such payment.
12. Dividends and Distributions. SSI will promptly
notify CISC of the declaration of any dividend or
distribution with respect to Fund shares, the amount of
<PAGE> 6
such dividend or distribution, the date each such dividend or
distribution shall be paid, and the record date for
determination of shareholders entitled to receive such
dividend or distribution. As dividend disbursing agent, CISC
will, on or before the payment date of any such dividend or
distribution, notify the Trust's custodian of the estimated
amount of cash required to pay such dividend or distribution,
and the Trust agrees that on or before the mailing date of
such dividend or distribution it will instruct its custodian
to make available to CISC sufficient funds in the dividend
and distribution account maintained by CISC with the Bank.
As dividend disbursing agent, CISC will prepare and
distribute to shareholders any funds to which they are
entitled by reason of any dividend or distribution and, in
the case of shareholders entitled to receive additional
shares by reason of any such dividend or distribution, CISC
will make appropriate credits to their accounts and cause to
be prepared and mailed to shareholders confirmation
statements and, of such additional shares. CISC will maintain
all records necessary to reflect the crediting of dividends
and distributions which are reinvested in shares of the Fund.
13. Redemptions. CISC will receive and process for
redemption in accordance with the Fund's Prospectus, share
certificates and requests for redemption of shares as
follows:
(a) If such certificate or request complies with
standards for redemption, CISC will, in accordance
with the Fund's current Prospectus, pay to the
shareholder from funds deposited by the Fund from
time to time in the redemption account maintained by
CISC with the Bank, the appropriate redemption price
as set forth in the Fund's Prospectus; and
(b) If such certificate or request does not comply with
the standards for redemption, CISC will promptly
notify the shareholder and shall effect the
redemption at the price in effect at the time of
receipt of documents complying with the standard.
14. Transfer and Exchanges. CISC will review and
process transfers of shares of the Fund and to the extent, if
any, permitted in the Prospectus of the Fund, exchanges
between series of the Trust received by CISC. If shares to
be transferred are represented by outstanding certificates,
CISC will, upon surrender to it of the certificates in proper
form for transfer, credit the same to the transferee on its
books. If shares are to be exchanged for shares of another
Fund, CISC will process such exchange in the same manner as a
redemption and sale of shares, in accordance with the Fund's
Prospectus may in its.
15. Plans. CISC will process such plans or programs
for investing in shares, and such systematic withdrawal
plans, as are provided for in the Fund's Prospectus.
16. Tax Returns and Reports. CISC will prepare and
file tax returns and reports with the Internal Revenue
Service and any other federal, state or local governmental
agency which may require such filings, including state
abandoned
<PAGE> 7
property laws, and conduct appropriate communications
relating thereto, and, if required, mail to shareholders such
forms for reporting dividends and distributions paid by the
Fund as are required by applicable laws, rules and
regulations, and CISC will withhold such sums as are required
to be withheld under applicable Federal and state income tax
laws, rules and regulations. CISC will periodically provide
SSI with reports showing dividends and distributions paid and
any amounts withheld. CISC will also make reasonable attempt
to obtain such tax withholding information from shareholders
as is required to be obtained on behalf of the Trust under
applicable federal or state laws.
17. Record Keeping. CISC will maintain records, which
at all times will be the property of the Trust and available
for inspection by SSI, showing for each shareholder's account
the following information and such other information as CISC
and SSI shall mutually agree in writing from time to time:
(a) Name, address, and United States taxpayer
identification or Social Security number, if provided
(or amounts withheld with respect to dividends and
distributions on shares if a taxpayer identification
or Social Security number is not provided);
(b) Number of shares held for which certificates have not
been issued and for which certificates have been
issued;
(c) Historical information regarding the account of each
shareholder, including dividends and distributions
paid, if any, gross proceeds of sales transactions,
and the date and price for transactions on a
shareholder's account;
(d) Any stop or restraining order placed against a
shareholder's account of which SSI has notified CISI;
(e) Information with respect to withholdings of taxes as
required under applicable Federal and state laws and
regulations;
(f) Any capital gain or dividend reinvestment order and
plan application relating to the current maintenance
of a shareholder's account; and
(g) Any instructions as to record addresses and any
correspondence or instructions relating to the
current maintenance of a shareholder's account.
SSI hereby agrees that CISC shall have no liability or
obligation with respect to the accuracy or completeness of
shareholder account information received by CISC on or about
the Operational Date.
<PAGE> 8
By mutual agreement of CISC and SSI, CISC shall
administer a program whereby reasonable attempt is made to
identify current address information from shareholders whose
mail from the Trust is returned.
CISC shall maintain at its expense those records
necessary to carry out its duties under this Agreement. In
addition, CISC shall maintain at its expense for periods
prescribed by law all records which the Fund or CISC is
required to keep and maintain pursuant to any applicable
statute, rule or regulation, including without limitation
Rule 31(a)-1 under the Investment Company Act of 1940,
relating to the maintenance of records in connection with the
services to be provided hereunder. Upon mutual agreement of
CISC and SSI, CISC shall also maintain other records
requested from time to time by SSI, at SSI's expense.
At the end of the period in which records must be
retained by law, such records and documents will either be
provided to the Trust or destroyed in accordance with prior
written authorization from the Trust.
18. Retirement Plan Services. CISC shall provide sub-
accounting services for retirement plan shareholders
representing group relationships with special recordkeeping
needs.
19. Other Information Furnished. CISC will furnish to
SSI such other information, including shareholder lists and
statistical information as may be agreed upon from time to
time between CISC and SSI. CISC shall notify SSI and the
Trust of any request or demand to inspect the share records
of the Fund, and will not permit or refuse such inspection
until receipt of written instructions from the Trust as to
such permission or refusal unless required by law.
CISC shall provide to the Trust any results of studies
and evaluations of systems of internal accounting controls
performed for the purpose of meeting the requirements of
Regulation 240.17Ad-13(a) of the Securities Exchange Act of
1934.
20. Shareholder Inquiries. CISC will not respond to
written correspondence from fund shareholders or others
relating to the Fund other than those regarding transaction
rejections and clarification of transaction instructions, but
shall forward all such correspondence to SSI.
21. Communications to Shareholders and Meetings. CISC
will determine all shareholders entitled to receive, and will
cause to be addressed and mailed, all communications by the
Fund to its shareholders, including quarterly and annual
reports, proxy material for meetings, and periodic
communications. CISC will cause to be received, examined and
tabulated return proxy cards for meetings of shareholders and
certify the vote to the Trust Fund.
22. Other Services by CISC. CISC shall provide SSI,
with the following additional services:
<PAGE> 9
(a) All CTRAN, CIMAGE, Price Waterhouse Blue Sky 2, and
Pegashares functionality and enhancements (on a
remote basis) as they now exist and as they are
developed and made available to CISC clients;
(b) Initial programs and report enhancements to the CTRAN
System which are necessary to accommodate the Fund as
a no-load fund group;
(c) Development, systems training, technical support,
implementation, and maintenance of special programs
and systems to enhance overall shareholder servicing
capability;
(d) Product and system training for personnel of
institutional servicing agents.
23. Insurance. CISC will not reduce or allow to lapse
any of its insurance coverages from time to time in effect,
including but not limited to errors and omissions, fidelity
bond and electronic data processing coverage, without the
prior written consent of SSI. Attached as Schedule D to this
Agreement is a list of the insurance coverage which CISC has
in effect as of the date of execution of this Agreement and,
if different, will have in effect on the Operational Date.
24. Duty of Care and Indemnification. CISC will at all
times use reasonable care, due diligence and act in good
faith in performing its duties hereunder. CISC will not be
liable or responsible for delays or errors by reason of
circumstances beyond its control, including without
limitation acts of civil or military authority, national or
state emergencies, labor difficulties, fire, mechanical
breakdown, flood or catastrophe, acts of God, insurrection,
war, riots or failure of transportation, communication or
power supply.
CISC may rely on certifications of those individuals
designated as authorized persons to give instructions to CISC
as to proceedings or facts in connection with any action
taken by the shareholders of the Fund or Trustees of the
Trust, and upon instructions not inconsistent with this
Agreement from individuals who have been so authorized. Upon
receiving authorization from an individual designated as an
authorized person to give instructions to CISC, CISC may
apply to counsel for the Trust, or counsel for SSI or the
Fund's investment adviser, at the Fund's expense, for advice.
With respect to any action reasonably taken on the basis of
such certifications or instructions or in accordance with the
advice of counsel of the Trust, or counsel for SSI or the
Fund's investment adviser, the Fund will indemnify and hold
harmless CSC from any and all losses, claims, damages,
liabilities and expenses (including reasonable counsel fees
and expenses).
SSI will indemnify CISC against and hold CISC harmless
from any and all losses, claims, damages, liabilities and
expenses (including reasonable counsel fees and expenses) in
respect of any claim, demand, action or suit not resulting
from CISC's bad faith, negligence, lack of due diligence or
willful misconduct and arising out of, or in connection with
its duties under this Agreement.
<PAGE> 10
CISC shall indemnify SSI against and hold SSI harmless
from any and all losses, claims, damages, liabilities and
expenses (including reasonable counsel fees and expenses) in
respect to any claim, demand, action or suit resulting from
CISC's bad faith, negligence, lack of due diligence or
willful misconduct, and arising out of, or in connection
with, its duties under this Agreement. For purposes of this
Sub-Transfer Agent Agreement, "lack of due diligence" shall
mean the processing by CISC of a Fund share transaction in
accordance with a practice that is not substantially in
compliance with (1) a transaction processing practice of SSI
approved by Fund Trustees, (2) insurance coverages, or (3)
generally accepted industry practices of mutual fund agents.
CISC shall also be indemnified and held harmless by SSI
against any loss, claim, damage, liability and expenses
(including reasonable counsel fees and expenses) by reason of
any act done by it in good faith with due diligence and in
reasonable reliance upon any instrument or certificate for
shares reasonably believed by it (a) to be genuine and (b) to
be signed, countersigned or executed by any person or persons
authorized to sign, countersign, or execute such instrument
or certificate.
In addition, SSI will indemnify and hold CISC harmless
against any loss, claim, damage, liability and expense
(including reasonable counsel fees and expenses) in respect
of any claim, demand, action or suit as a result of the
negligence of the Fund, Trust SRF or SSI, or as a result of
CISC's acting upon any instructions reasonably believed by
CISC to have been executed or orally communicated by a duly
authorized officer or employee of the Fund, Trust SRF or SSI,
or as a result of acting in reliance upon written or oral
advice reasonably believed by CISC to have been given by
counsel for the Fund, Trust SRF or SSI.
In any case in which a party to this Agreement may be
asked to indemnify or hold harmless the other party hereto,
the party seeking indemnification shall advise the other
party of all pertinent facts concerning the situation giving
rise to the claim or potential claim for indemnification, and
each party shall use reasonable care to identify and notify
the other promptly concerning any situation which presents or
appears likely to present a claim for indemnification.
Prior to admitting to or agreeing to settle any claim subject
to this Section, each party shall give the other reasonable
opportunity to defend against said claim in either party's
name.
25. Employees. CISC and SSI are separately
responsible for the employment, control and conduct of their
respective agents and employees and for injury to such agents
or employees or to others caused by such agents or employees.
CISC and SSI severally assume full responsibility for their
respective agents and employees under applicable statues and
agree to pay all employer taxes thereunder. The conduct of
their respective agents and employees shall be included in
any reference to the conduct of CISC or SSI for all purposes
hereunder.
26. Termination and Amendment. This Agreement shall
continue in effect for eighteen (18) months from the
Operational Date, and will automatically be
<PAGE> 11
renewed for successive one year terms thereafter. After
eighteen (18) months from the Operational Date the Agreement
may be terminated at any time by not less than one hundred
eighty (180) days written notice. Upon termination hereof,
SSI shall pay CISC such compensation as may be due to CISC as
of the date of such termination for services rendered and
expenses incurred, as described in Schedule B. This
Agreement may be modified or amended from time to time by
mutual agreement between SSI and CISC.
27. Successors. In the event that in connection with
termination of this Agreement a successor to any of CISC's
duties or responsibilities hereunder is designated by SSI by
written notice to CISC, CISC shall promptly at the expense of
SSI, transfer to such successor, or if no successor is
designated, transfer to the Trust, a certificate list of the
shareholders of the Fund (with name, address and taxpayer
identification or Social Security number), a historical
record of the account of each shareholder and the status
thereof, all other relevant books, records, correspondence
and other data established or maintained by CISC under this
Agreement in machine readable form and will cooperate in the
transfer of such duties and responsibilities, and in the
establishment of books, records and other data by such
successor. CISC shall be entitled to reimbursement of its
reasonable out-of-pocket expenses in respect of assistance
provided in accordance with the preceding sentence.
28. Miscellaneous. This Agreement shall be construed
in accordance with and governed by the laws of The
Commonwealth of Massachusetts.
The captions in this Agreement are included for
convenience of reference only and in no way define or limit
any of the provisions of this Agreement or otherwise affect
their construction or effect. This Agreement may be executed
simultaneously in two or more counterparts, each of which
shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.
CISC shall keep confidential all records and information
provided to CISC by the Trust, SSI, SRF, and prior, present
or prospective shareholders of the Fund, except, after notice
to SSI , to the extent disclosures are required by this
Agreement, by the Fund's registration statement, or by a
reasonable request or a valid subpoena or warrant issued by a
court, state or federal agency or other governmental
authority.
Neither CISC nor SSI may use each other's name in any
written material without written consent of such other party,
provided , however, that such consent shall not unreasonably
withheld. CISC and SSI hereby consent to all uses of their
respective names which refer in accurate terms to appointment
and duties under this Agreement or which are required by any
governmental or regulatory authority including required
filings. SSI, SRF, the Trust and the Fund consent to use of
their respective names and logos by CISC for shareholder
correspondence and statements
This Agreement shall be binding upon and shall inure to
the benefit of SSI and CISC and their respective successors
and assigns. Neither SSI nor CISC shall assign this
<PAGE> 12
Agreement nor its rights and obligations under this Agreement
without the express written consent of the other party.
This Agreement may be amended only in writing by mutual
agreement of the parties.
Any notice and other instrument in writing authorized or
required by this Agreement t be given to SSI or CISC shall
sufficiently be given if addressed to that party and mailed
or delivered to it as its office set for the below or at such
other place as it may from time to time designate in writing.
SSI, the Trust and the Fund:
SteinRoe Services Inc.
One South Wacker Drive
Suite 3300
Chicago, Illinois 60606
Attn: Jilaine Hummel Bauer, Esq.
CISC:
Colonial Investors Service Center, Inc.
One Financial Center
Boston, Massachusetts 02111
Attn: Mary McKenzie; with a separate copy to
Attn: Nancy L. Conlin, Esq., Legal Department
<PAGE> 13
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and sealed as of the date first
above written.
STEINROE SERVICES INC.
By: TIMOTHY K. ARMOUR
Name:
Title: Vice President
COLONIAL INVESTORS SERVICE CENTER, INC.
By: D.S. SCOON
Name: Davey S. Scoon
Title: President
Assented to on behalf of Trust and Stein Roe Mutual Funds:
STEIN ROE INCOME TRUST
STEIN ROE INVESTMENT TRUST
STEIN ROE MUNICIPAL TRUST
By: TIMOTHY K. ARMOUR
Name: Timothy K. Armour
Title: President
<PAGE>
SCHEDULE A
Stein Roe Mutual Funds (the "Fund"), consists of the
following series of portfolios:
Stein Roe Investment Trust
- --------------------------
Stein Roe Growth & Income Fund
Stein Roe International Fund
Stein Roe Young Investor Fund
Stein Roe Balanced Fund
Stein Roe Growth Stock Fund
Stein Roe Capital Opportunities Fund
Stein Roe Special Fund
Stein Roe Special Venture Fund
Stein Roe Income Trust
- ----------------------
Stein Roe Income Fund
Stein Roe Government Income Fund
Stein Roe Intermediate Bond Fund
Stein Roe Cash Reserves Fund
Stein Roe Government Reserves Fund
Stein Roe Limited Maturity Income Fund
Stein Roe Municipal Trust
- -------------------------
Stein Roe Intermediate Municipals Fund
Stein Roe High-Yield Municipals Fund
Stein Roe Municipal Money Market Fund
Stein Roe Managed Municipals Fund
<PAGE>
SCHEDULE B
This Schedule B is attached to and is part of a certain
Sub-Transfer Agent Agreement ("Agreement") dated July 3, 1996
between SteinRoe Services Inc. ("SSI") and Colonial Investors
Center, Inc. ("CISC").
A. SSI will pay CISC for services rendered under the
Agreement and in accordance with a negotiated allocation of
revenues and reimbursement of costs as follows:
1. As of the Operational Date, CISC and SSI shall agree upon
a fixed monthly per account fee to be paid under the
Agreement, which shall be in an amount equal to 1/12 (a) the
estimated total, determined on an annualized basis, of (1)
all incremental costs incurred by CISC in connection with the
sub-transfer agency relationship, plus (2) 1/2 the net
economic benefit derived by Liberty Financial Companies, the
parent company of both CISC and SSI, as a result of the sub-
transfer agency relationship, (b) divided by the number of
shareholder accounts to be serviced by CISC pursuant to the
Agreement as of the Operational Date.
2. For the first eighteen (18) months of the Agreement, SSI
shall pay CISC, monthly in arrears, commencing with the first
day of August, 1996, and on the first day of each month
thereafter, the greater of (a) the product of the fixed per
account fee determined as provided in paragraph 1. above
multiplied by the number of shareholder accounts serviced by
CISC pursuant to the Agreement as of the end of the preceding
month, and (b) 1/12 the annualized estimated total costs and
benefit determined pursuant to (a) of paragraph 1. above.
All estimates under this paragraph shall be determined no
later than September 30, 1996. The annual fee for the first
eighteen months shall not be less than $1.4 million.
3. Commencing January 1, 1998, and during each calendar year
thereafter, SSI shall pay CISC a fee equal to CISC's budgeted
annual per account expense of providing services pursuant to
the Agreement. Said fee shall be paid monthly in arrears, on
the first day of each month, in an amount equal to the
product of 1/12 the budgeted annual per account fee
multiplied by the number of shareholder accounts serviced by
CISC pursuant to the Agreement as of the end of the preceding
month. All budgeted numbers under this paragraph shall be
determined no later than November 30 each year.
B. The Fund shall be credited each month with balance
credits earned on all Fund cash balances.
Upon thirty (30) days' notice to SSI, CISC may increase
the fees it charges to the extent the cost to CISC of
providing services increases (i) because of changes in the
Fund's Prospectus, or (ii) on account of any change after the
date hereof in law or regulations governing performance of
obligations hereunder.
Fees for any additional services not provided herein, ad
hoc reports or special programming requirements to be
provided by CISC shall be agreed upon by SSI and CISC at such
time as CISC agrees to provide any such services.
In addition to paying CISC fees as described herein, SSI
agrees to reimburse CISC for any and all out-of-pocket
expenses and charges in performing services under the
Agreement (other than charges for normal data processing
services and related software, equipment and facilities)
including, but not limited to, mailing service, postage,
printing of shareholder statements, the cost of any and all
forms of the Trust and other materials used in communicating
with shareholders of the Trust, the cost of any equipment or
service used for communicating with the Trust's custodian
bank or other agent of the Trust, and all costs of telephone
communication with or on behalf of shareholders allocated in
a manner mutually acceptable to CISC and SSI.
<PAGE>
SCHEDULE C
SRS and CSC hereby agree that the date on which the
complete services began ("Operational Date") under the Sub-
Transfer Agent Agreement between them dated July 3, 1996, is:
July , 1996
STEINROE SERVICES INC.
By:________________________________________
Name:
Title: Vice President
COLONIAL INVESTORS SERVICE CENTER, INC.
By:________________________________________
Name:
Title:
<PAGE>
AMENDMENT TO
SUB-TRANSFER AGENT AGREEMENT
This Amendment dated as of January 1, 1997, and
effective that date unless otherwise indicated below, amends
the agreement dated as of July 3, 1996 (the "Agreement"),
between SteinRoe Services Inc.("SSI"), Stein Roe Municipal
Trust, Stein Roe Income Trust and Stein Roe Investment Trust
(collectively the "Trust") and Colonial Investors Service
Center, Inc. ("CISC") to add Stein Roe Advisor Trust
(effective February 14, 1997), Stein Roe Institutional Trust
(effective January 2, 1997) and Stein Roe Trust (effective
February 14, 1997), comprised of the Series listed on
Schedule A, as amended, and assenting parties to the contract
and to add new series of the existing Trusts. The amended
Schedule A is as follows:
STEIN ROE INCOME TRUST
Stein Roe Income Fund
Stein Roe Government Income Fund
Stein Roe Intermediate Bond Fund
Stein Roe High Yield Fund
STEIN ROE MUNICIPAL TRUST
Stein Roe Intermediate Municipals Fund
Stein Roe High-Yield Municipals Fund
Stein Roe Managed Municipals Fund
STEIN ROE INVESTMENT TRUST
Stein Roe International Fund
Stein Roe Growth & Income Fund
Stein Roe Balanced Fund
Stein Roe Young Investor Fund
Stein Roe Growth Stock Fund
Stein Roe Special Fund
Stein Roe Special Venture Fund
Stein Roe Emerging Markets Fund
STEIN ROE ADVISOR TRUST
Stein Roe Advisor Balanced Fund
Stein Roe Advisor Growth & Income Fund
Stein Roe Advisor Growth Stock Fund
Stein Roe Advisor International Fund
Stein Roe Advisor Special Fund
Stein Roe Advisor Special Venture Fund
Stein Roe Advisor Young Investor Fund
STEIN ROE INSTITUTIONAL TRUST
Stein Roe Institutional High Yield Fund
STEIN ROE TRUST
Stein Roe Institutional Client High Yield Fund
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and sealed as of the date first
above written.
SteinRoe Services Inc.
By: HEIDI J. WALTER
Name:: Heidi J. Walter
Title: Vice President
Colonial Investors Service Center, Inc.
By: MARY DILLON MCKENZIE
Name: Mary Dillon McKenzie
Title: Senior Vice President
Assented to on behalf of Trust and Stein Roe Mutual Funds:
Stein Roe Income Trust
Stein Roe Investment Trust
Stein Roe Municipal Trust
Stein Roe Advisor Trust
Stein Roe Institutional Trust
Stein Roe Trust
By: JILAINE HUMMEL BAUER
Name: Jilaine Hummel Bauer
Title: Executive Vice President and Secretary
<PAGE>
AMENDMENT TO
SUB-TRANSFER AGENT AGREEMENT
This Amendment dated as of June 30, 1997, amends
the agreement dated as of July 3, 1996 (the "Agreement"),
between SteinRoe Services Inc.("SSI"), Stein Roe Municipal Trust,
Stein Roe Income Trust, Stein Roe Investment Trust, Stein Roe
Advisor Trust, Stein Roe Trust and Stein Roe Institutional
Trust (collectively the "Trust") and Colonial Investors Service
Center, Inc. ("CISC") to add additional series of the existing Trusts.
The amended Schedule A is as follows:
STEIN ROE INCOME TRUST
Stein Roe Income Fund
Stein Roe Government Income Fund
Stein Roe Intermediate Bond Fund
Stein Roe High Yield Fund
Stein Roe Cash Reserves Fund
Stein Roe Government Reserves Fund
STEIN ROE MUNICIPAL TRUST
Stein Roe Intermediate Municipals Fund
Stein Roe High-Yield Municipals Fund
Stein Roe Managed Municipals Fund
Stein Roe Municipal Money Market Fund
STEIN ROE INVESTMENT TRUST
Stein Roe International Fund
Stein Roe Growth & Income Fund
Stein Roe Balanced Fund
Stein Roe Young Investor Fund
Stein Roe Growth Stock Fund
Stein Roe Special Fund
Stein Roe Special Venture Fund
Stein Roe Emerging Markets Fund
Stein Roe Capital Opportunities Fund
Stein Roe Growth Opportunities Fund
STEIN ROE ADVISOR TRUST
Stein Roe Advisor Balanced Fund
Stein Roe Advisor Growth & Income Fund
Stein Roe Advisor Growth Stock Fund
Stein Roe Advisor International Fund
Stein Roe Advisor Special Fund
Stein Roe Advisor Special Venture Fund
Stein Roe Advisor Young Investor Fund
STEIN ROE INSTITUTIONAL TRUST
Stein Roe Institutional High Yield Fund
STEIN ROE TRUST
Stein Roe Institutional Client High Yield Fund
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and sealed as of the date first
above written.
SteinRoe Services Inc.
By: HEIDI J. WALTER
Name:: Heidi J. Walter
Title: Vice President
Colonial Investors Service Center, Inc.
By: JOHN W. BYRNE
Name: John W. Byrne
Title: Vice President
Assented to on behalf of Trust and Stein Roe Mutual Funds:
Stein Roe Income Trust
Stein Roe Investment Trust
Stein Roe Municipal Trust
Stein Roe Advisor Trust
Stein Roe Institutional Trust
Stein Roe Trust
By: HEIDI J. WALTER
Name: Heidi J. Walter
Title: Vice President
EXHIBIT 11
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
use of our report dated February 6, 1997, and to all
references to our Firm included in or made a part of this
Registration Statement on Form N-1A of the Stein Roe Advisor
Trust (comprising the Stein Roe Advisor Balanced Fund, Stein
Roe Advisor Growth & Income Fund, Stein Roe Advisor Growth
Stock Fund, Stein Roe Advisor Special Fund, Stein Roe Advisor
Special Venture Fund, Stein Roe Advisor International Fund
and Stein Roe Advisor Young Investor Fund).
ARTHUR ANDERSEN LLP
Chicago, Illinois
June 6, 1997
EXHIBIT 12
<PAGE> 1
Stein Roe Mutual Funds
Semiannual Report
March 31, 1997
Stein Roe Advisor Balanced Fund
Stein Roe Advisor Growth & Income Fund
<PAGE> 2
SR&F Balanced Portfolio
- -----------------------------------------------------------------------
Investments as of March 31, 1997
(Dollar Amounts In Thousands)
(Unaudited)
Number Market
EQUITY-RELATED SECURITIES (61.9%) of Shares Value
- -----------------------------------------------------------------------
COMMON STOCKS (51.3%)
AUTOMOTIVE (0.8%)
Honda Motor Company, Ltd. ADRs ....................33,000 $ 1,931
BANKS (6.8%)
BankAmerica Corporation .......................... 53,000 5,340
Citicorp ......................................... 53,000 5,737
Royal Bank of Scotland Group Plc .................233,710 2,061
Wells Fargo & Company ............................ 8,000 2,273
Westpac Banking Corporation Ltd. .................320,000 1,856
-------
17,267
CHEMICALS (1.3%)
CIBA Specialty Chemicals ADRs ................... 4,900 200
DuPont Company .................................. 30,000 3,180
-------
3,380
COMPUTERS (0.7%)
International Business Machines Corp. ............ 13,000 1,786
COMPUTER SOFTWARE AND SERVICES (1.0%)
Electronic Data Systems Corporation .............. 60,000 2,423
CONGLOMERATES AND MISCELLANEOUS (1.2%)
Harris Corporation ............................... 40,000 3,075
DATA PROCESSING & DUPLICATING (0.8%)
Canon, Inc. .......................................97,000 2,076
DRUGS AND HEALTH PRODUCTS (4.1%)
Bristol-Myers Squibb Company ......................56,000 3,304
Eli Lilly & Co. ...................................49,000 4,030
Novartis AG ADRs ..................................49,000 3,037
-------
10,371
ELECTRICAL EQUIPMENT (5.3%)
Emerson Electric Co. ............................. 97,000 4,365
General Electric Company ..................... 58,500 5,806
Hubbell Inc. Class B ......................... 78,000 3,296
-------
13,467
See accompanying notes to financial statements.
<PAGE> 3
SR&F Balanced Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
ELECTRONICS (3.7%)
*Analog Devices, Inc. ......................... 30,000 675
Intel Corporation ............................. 25,000 3,478
Motorola, Inc. ................................ 55,000 3,321
Sony Corporation Sponsored ADRs ............... 27,000 1,866
-------
9,340
ENGINEERING AND CONSTRUCTION (0.7%)
Fluor Corporation ................ 35,000 1,838
FERTILIZERS (0.7%)
Potash Corporation of Saskatchewan Inc. .... 22,000 1,672
FINANCIAL SERVICES (0.9%)
First USA, Inc. ............................ 55,000 2,331
FOOD, BEVERAGE & TOBACCO (2.6%)
Controladora Comercial Mexicana GDRs ............ 85,000 $ 1,201
General Mills, Inc. ............................. 26,000 1,615
PepsiCo, Inc. ................................... 45,000 1,468
Philip Morris Companies Inc. ................. .. 20,000 2,283
-------
6,567
HOLDING (0.7%)
Swire Pacific Ltd. Class A ...................... 240,000 1,889
INSURANCE (1.1%)
American States Financial Corporation ........... 85,500 2,854
MEDICAL SUPPLIES (1.0%)
Baxter International Inc. ....................... 60,000 2,588
OIL AND NATURAL GAS (7.2%)
Baker Hughes Inc. ............................... 70,000 2,686
British Petroleum Company Plc ADRs .............. 29,000 3,980
Elf Aquitaine Sponsored ADRs .................... 32,000 1,576
El Paso National Gas Company .................... 40,200 2,276
Enron Corp. ..................................... 76,000 2,888
Mobil Corporation ............................... 19,000 2,482
Tosco Corporation ............................... 43,000 1,226
*United Meridian Corporation .................... 40,000 1,205
-------
18,319
PAPER & FOREST PRODUCTS (1.0%)
Plum Creek Timber Company, L.P. ................. 90,000 2,509
See accompanying notes to financial statements.
<PAGE> 4
SR&F Balanced Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
REAL ESTATE (3.1%)
Kimco Realty Corporation ........................ 66,000 2,145
Reckson Associates Realty Corporation ........... 48,100 2,219
The Rouse Company ............................... 60,587 1,772
Security Capital Industrial Trust ............... 88,333 1,844
-------
7,980
RETAIL (2.1%)
Home Depot, Inc. ................................ 20,000 1,070
JUSCO Co. ....................................... 64,000 1,758
Wal-Mart Stores, Inc. ........................... 94,000 2,620
-------
5,448
TELECOMMUNICATIONS (2.4%)
*AirTouch Communications, Inc. ................... 80,000 1,840
GTE Corporation .................................. 45,000 2,098
Telefonica de Argentina S.A. ADRs ................ 78,000 2,291
-------
6,229
TRANSPORTATION (1.0%)
Canadian National Railway Company ................ 70,000 2,476
UTILITIES-ELECTRIC (1.1%)
Empresa Nacional de Electricidad, S.A. de C.V., ADRs 42,000 2,725
-------
TOTAL STOCKS (Cost $88,212) ................................ 130,541
PREFERRED STOCK (0.4%)
OIL & NATURAL GAS (0.4%)
**Tosco Corporation $2.875 Cv (Cost $937)........ 17,000 $ 895
- -----------------------------------------------------------------------
Principal
CONVERTIBLE SUBORDINATED DEBENTURES (10.2%) Amount
- -----------------------------------------------------------------------
ELECTRONICS (1.6%)
LM Ericsson 4.250% 6/30/00 ........................ $ 850 4,038
ENERGY (0.9%)
SFP Pipelines Holdings 11.160% 8/15/10 ............ 2,000 2,435
See accompanying notes to financial statements.
<PAGE> 5
SR&F Balanced Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
HEALTH CARE (2.9%)
Elan International Financial Ltd. Zero Coupon
(Effective Yield 4.652%) 10/16/12 .............. 3,500 2,621
Nationwide Health Properties 6.250% 1/01/99 ....... 2,700 2,707
**Roche Holdings Ltd. Zero Coupon
(Effective Yield 4.750%) 9/23/08 ................ 2,500 2,237
-------
7,565
INSURANCE (1.1%)
Fremont General Zero Coupon (Effective Yield 9.270%)
10/12/13 ......................................... 5,000 2,725
RETAIL (0.4%)
Home Depot Inc. 3.250% 10/01/01 ................... 950 944
SERVICES (2.6%)
Danka Business Systems Plc 6.750% 4/01/02 ......... 1,100 1,338
**U.S. Filter 6.000% 9/15/05 ...................... 1,700 3,013
Valhi, Inc. Zero Coupon (Effective Yield 8.693%)
(Convertible into shares of Dresser) 10/20/07 .. 5,000 2,250
-------
6,601
WASTE MANAGEMENT (0.7%)
WMX Technologies, Inc. 2.000% 1/24/05 ............. 2,000 1,780
------- -------
TOTAL CONVERTIBLE SUBORDINATED DEBENTURES (Cost $18,020) .... 26,088
- -----------------------------------------------------------------------
TOTAL EQUITY-RELATED SECURITIES (Cost $107,169).............. 157,524
- -----------------------------------------------------------------------
BONDS AND NOTES (36.8%)
U.S. GOVERNMENT OBLIGATIONS (20.8%)
U.S. Treasury Bonds
8.125% 8/15/19 .................................. $12,500 $13,713
7.250% 8/15/22 .................................. 9,700 9,711
U.S. Treasury Notes
5.750% 9/30/97 .................................. 1,800 1,800
6.125% 3/31/98 .................................. 1,700 1,701
5.125% 6/30/98 .................................. 2,000 1,975
5.875% 3/31/99 .................................. 6,000 5,942
7.875% 8/15/01 .................................. 6,850 7,140
5.750% 8/15/03 .................................. 2,000 1,888
7.500% 2/15/05 .................................. 5,250 5,430
6.500% 8/15/05 .................................. 3,750 3,645
-------
52,945
See accompanying notes to financial statements.
<PAGE> 6
SR&F Balanced Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES (4.4%)
Federal Home Loan Mortgage Corporation Gold
6.500% 2/01/11 .................................. 1,818 1,754
6.500% 4/01/11 .................................. 2,620 2,527
6.500% 10/01/11 ................................. 1,917 1,845
6.500% 4/01/26 .................................. 1,968 1,838
6.500% 6/01/26 .................................. 988 922
Government National Mortgage Association
8.000% 7/15/25 .................................. 1,369 1,376
8.000% 3/15/26 .................................. 934 939
-------
11,201
AIR TRANSPORTATION (2.4%)
Federal Express Corporation 1994 Pass-Through
Certificates Series A310-A1 7.530% 9/23/06 ...... 2,063 2,042
Lockheed Martin Corporation 6.550% 5/15/99 ......... 2,500 2,485
United Airlines Series 1991 9.200% 3/22/08 ......... 1,340 1,439
-------
5,966
CHEMICALS (0.9%)
BOC Group Plc 5.875% 1/29/01 ....................... 2,500 2,400
COMMERCIAL BANK (1.7%)
Den Danske Bank 6.550% 9/15/03 ..................... 2,250 2,142
Deutsche Ausgleichsbank 7.000% 9/24/01 ............. 2,250 2,249
-------
4,391
CONSTRUCTION & HOUSING (0.8%)
Hanson Overseas 6.750% 9/15/05 ..................... 2,250 2,139
FINANCIAL (2.2%)
ALPS Pass-Through Trust Series 1994-1 Class C2
9.350% 9/15/04 .................................. 2,487 2,501
Lehman Brothers Holdings, Inc. 8.375% 2/15/99 ...... 2,500 2,564
MDC Mortgage Funding Corporation Series Q Class 5
8.850% 3/20/18 .................................. 394 395
-------
5,460
FOREIGN GOVERNMENT REGIONAL BONDS (1.7%)
**Corporacion Andina de Fomento 6.625% 10/14/98 .... 1,500 1,494
**Republic of Slovenia 7.000% 8/06/01 .............. 2,750 2,725
-------
4,219
MORTGAGE-BACKED SECURITIES (1.1%)
American Mortgage Trust Series 1993-3 Class 3B
8.190% 9/27/22 .................................. 2,272 2,097
**Lennar 8.120% 9/15/02 ............................ 728 729
-------
2,826
<PAGE> 7
SR&F Balanced Portfolio CONTINUED
Principal Market
Amount Value
- -----------------------------------------------------------------------
UTILITIES - ELECTRIC (0.8%)
National Power Plc 7.125% 7/11/01................ $ 2,000 $ 1,987
- -----------------------------------------------------------------------
TOTAL BONDS AND NOTES (Cost $94,300)..................... 93,534
- -----------------------------------------------------------------------
SHORT TERM OBLIGATIONS (6.1%)
COMMERCIAL PAPER (6.1%)
UBS Finance 6.750% 4/01/97....................... 10,920 10,920
Windmill Funding 5.400% 4/01/97.................. 4,500 4,500
--------
TOTAL SHORT-TERM OBLIGATIONS (Amortized Cost $15,420).... 15,420
- -----------------------------------------------------------------------
TOTAL INVESTMENTS (104.8%)
(Cost $216,889).......................................... $266,478
OTHER ASSETS, LESS LIABILITIES (-4.8%)................... (12,195)
--------
TOTAL NET ASSETS (100.0%)................................ $254,283
=======
- -----------------------------------------------------------------------
SECURITIES SOLD SHORT AT MARCH 31, 1997, WERE AS FOLLOWS:
Market
Common Stocks Shares Value
------------- ------ -----
BankAmerica Corporation.................. 30,000 $ 3,023
British Petroleum Company Plc ADRs....... 29,000 3,980
Citicorp................................. 30,000 3,248
Eli Lilly & Co. ......................... 10,000 822
Emerson Electric Co. .................... 20,000 900
Enron Corp............................... 25,000 950
General Electric Company................. 35,000 3,474
Intel Corporation........................ 4,000 556
--------
TOTAL VALUE OF SECURITIES SOLD SHORT (Proceeds $17,831).. $ 16,953
=======
- -----------------------------------------------------------------------
* Non-income producing.
** These securities are subject to contractual or legal restrictions on
their resale. At March 31, 1997, the aggregate value of these
securities represented 4.4 percent of net assets.
See accompanying notes to financial statements.
<PAGE> 8
SR&F Growth & Income Portfolio
- -----------------------------------------------------------------------
Investments as of March 31, 1997
(Dollar Amounts in Thousands)
(Unaudited)
Number Market
COMMON STOCKS (77.9%) of Shares Value
- -----------------------------------------------------------------------
AIRCRAFT (2.0%)
McDonnell Douglas Corporation.................. 92,000 $ 5,612
AUTO/TRUCK PARTS & EQUIPMENT (1.6%)
*Lear Corporation.............................. 135,000 4,506
BANKS (8.7%)
Bankers Trust Company.......................... 60,000 4,920
Chase Manhattan Corporation.................... 60,400 5,655
Citicorp....................................... 60,616 6,561
Republic New York Corporation.................. 25,000 2,203
Wells Fargo & Company.......................... 15,666 4,451
-------
23,790
BROADCASTING & COMMUNICATIONS (0.8%)
The Interpublic Group of Companies, Inc........ 40,400 2,131
BUSINESS SERVICES (0.6%)
Ikon Office Solutions Inc...................... 49,000 1,642
COMPUTERS (1.5%)
International Business Machines Corp. ......... 30,000 4,121
COMPUTER SERVICES (1.2%)
Electronic Data Systems Corporation............ 79,000 3,190
CONSTRUCTION (1.7%)
Fluor Corp. ................................... 86,300 4,531
CONSUMER-RELATED (5.2%)
The Gillette Company........................... 72,200 5,243
Nike, Inc. Class B............................. 58,000 3,596
The Procter & Gamble Co. ...................... 48,000 5,520
-------
14,359
DISTRIBUTION (4.2%)
Albertson's Inc. .............................. 36,000 1,224
Wal-Mart Stores, Inc........................... 140,000 3,903
Walgreen Co. .................................. 150,000 6,281
-------
11,408
See accompanying notes to financial statements.
<PAGE> 9
SR&F Growth & Income Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
DRUGS (3.0%)
SmithKline Beecham Plc. ADRs................... 20,000 1,400
Warner-Lambert Company......................... 78,000 6,747
-------
8,147
ELECTRICAL EQUIPMENT (3.9%)
Emerson Electric Co. .......................... 104,000 4,680
Hubbell Incorporated, Class B.................. 140,400 5,932
-------
10,612
ENERGY (3.9%)
Amoco Corporation.............................. 36,500 3,162
British Petroleum Company Plc ADRs............. 36,552 5,016
Enron Corp. ................................... 62,500 2,375
-------
10,553
ENTERTAINMENT (0.6%)
The Walt Disney Co. ........................... 22,035 $ 1,609
FINANCIAL SERVICES (5.3%)
American Express Co. .......................... 104,000 6,227
Federal National Mortgage Association.......... 161,000 5,816
*Nationwide Financial Services, Inc............ 37,000 953
Washington Mutual, Inc......................... 32,000 1,546
-------
14,542
FOOD, BEVERAGE & TOBACCO (4.8%)
PepsiCo, Inc. ................................. 110,000 3,588
Philip Morris Companies Inc. .................. 61,000 6,961
Sara Lee Corporation........................... 67,000 2,713
-------
13,262
HEALTH CARE (4.1%)
Abbott Laboratories............................ 58,500 3,283
Baxter International Inc. ..................... 145,000 6,253
Roche Holdings Ltd. ........................... 200 1,728
-------
11,264
HOTELS (0.5%)
*Circus Circus Enterprises..................... 50,000 1,300
MEDIA (1.1%)
Tribune Company................................ 50,000 2,025
*Viacom, Inc., Class B......................... 27,190 901
-------
2,926
See accompanying notes to financial statements.
<PAGE> 10
SR&F Growth & Income Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
MULTI-INDUSTRY (6.3%)
General Electric Company....................... 54,000 5,360
Honeywell Inc. ................................ 110,000 7,466
Kansas City Southern Industries, Inc........... 52,300 2,615
Minnesota Mining & Manufacturing Company....... 20,000 1,690
-------
17,131
PAPER AND FOREST PRODUCTS (1.7%)
Champion International Corporation............. 20,000 910
Georgia Pacific Corporation.................... 45,000 3,262
Unisource Worldwide Inc. ...................... 24,500 377
-------
4,549
PRINTING (1.2%)
Deluxe Corp. .................................. 100,000 3,238
REAL ESTATE (0.4%)
Nationwide Health Properties, Inc.............. 50,000 1,069
RUBBER, PLASTICS, AND RELATED PRODUCTS (0.9%)
Goodyear Tire & Rubber Co. .................... 45,000 2,351
SCIENTIFIC INSTRUMENTS (0.7%)
Millipore Corporation.......................... 45,000 1,907
SPECIALTY CHEMICALS (7.0%)
Ecolab, Inc.................................... 160,000 6,080
Monsanto Co.................................... 200,000 7,650
Union Carbide Corporation ..................... 121,100 5,359
-------
19,089
TELECOMMUNICATIONS (2.4%)
AT & T......................................... 30,222 $ 1,050
Lucent Technologies, Inc....................... 9,794 517
Nynex Corp..................................... 110,000 5,019
--------
6,586
TRANSPORTATION-RAIL (2.6%)
Burlington Northern Santa Fe................... 59,000 4,366
Conrail Inc. .................................. 25,420 2,866
--------
7,232
--------
TOTAL COMMON STOCKS (Cost $149,619)....................... 212,657
- -----------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE> 11
SR&F Growth & Income Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- -----------------------------------------------------------------------
NOTE (1.1%)
U.S. GOVERNMENT OBLIGATION (1.1%)
U.S. Treasury Note 7.125% 9/30/99
(Cost $2,964)............................... $ 3,000 3,041
- -----------------------------------------------------------------------
SHORT-TERM OBLIGATIONS (21.1%)
COMMERCIAL PAPER (20.4%)
Marriott International 5.950% 4/02/97 ......... 10,000 9,998
Price/Costco 7.300% 4/01/97.................... 5,000 5,000
Rite Aid 6.000% 4/02/97........................ 10,000 9,998
Source One Mortgage 5.850% 4/03/97............. 10,000 9,997
UBS Finance 6.750% 4/01/97..................... 10,785 10,785
Windmill Funding 5.400% 4/01/97................ 10,000 10,000
--------
55,778
U.S. GOVERNMENT OBLIGATION (0.7%)
**U.S. Treasury Bill 4.940% 4/24/97............ 2,000 1,994
--------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized cost $57,772).................................. 57,772
- -----------------------------------------------------------------------
TOTAL INVESTMENTS (100.1%)
(Cost $210,355)........................................... 273,470
OTHER ASSETS, LESS LIABILITIES (-0.1%)................... (283)
--------
TOTAL NET ASSETS.......................................... $273,187
========
- -----------------------------------------------------------------------
* Non-income producing.
** Security was pledged to cover margin requirements for open futures
contracts.
Futures contracts which were open at March 31, 1997, were as follows:
Unrealized
Number of Contract Loss
Type Contracts Value Expiration at 3/31/97
- ---- --------- ------- --------- ---------
Standard & Poor's
500 Index (Long) 60 $24,260 June, 1997 $1,520
See accompanying notes to financial statements.
<PAGE> 12
Balance Sheets
March 31, 1997
(All amounts in thousands, except per-share amount)
(Unaudited)
Advisor
Advisor Growth
Balanced & Income
Fund Fund
-------- --------
Assets
Investment in Portfolio, at value $ 95 $ 93
Cash and other assets 24 24
-------- --------
Total Assets $ 119 $ 1
======== ========
Liabilities
Other liabilities $ 23 $ 23
-------- --------
Total Liabilities 23 23
-------- --------
Capital
Paid-in capital 100 100
Net unrealized depreciation of investments -- (6)
Accumulated undistributed net realized losses
on investments and foreign currency transactions (4) --
-------- --------
Total Capital (Net Assets) 96 94
-------- --------
Total Liabilities and Capital $ 119 $ 1
========= ========
Shares Outstanding (Unlimited Number Authorized) 10 10
========= ========
Net Asset Value (Capital) Per Share $ 9.58 $ 9.37
========= ========
See accompanying notes to financial statements.
<PAGE> 13
Statements of Operations
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Advisor
Advisor Growth
Balanced & Income
Fund Fund
-------- --------
Expenses
Amortization of organization expenses $ 4 $ 4
Accounting fees 3 3
Audit and legal fees 2 2
Other 1 1
-------- --------
10 10
Reimbursement of expenses by investment adviser (10) (10)
-------- --------
Total Expenses -- --
-------- --------
Net Investment Income -- --
-------- --------
Realized and Unrealized Losses on Investments
Net realized losses on investments allocated
from Portfolio (3) --
Net realized losses on foreign currency transactions
allocated from Portfolio (1) --
Net change in unrealized appreciation or depreciation
of investments -- (6)
-------- --------
Net Losses on Investments (4) (6)
-------- --------
Net Decrease in Net Assets Resulting
from Operations $ (4) $ (6)
======== ========
(a) The Fund commenced operations on February 14, 1997.
See accompanying notes to financial statements.
<PAGE> 14
Statements of Changes in Net Assets
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Advisor
Advisor Growth
Balanced & Income
Fund Fund
Operations
Net investment income $ -- $ --
Net realized losses on investments and
foreign currency transactions (4) --
Net change in unrealized appreciation
or depreciation of investments -- (6)
-------- --------
Net Decrease in Net Assets
Resulting from Operations (4) (6)
-------- --------
Share Transactions
Subscriptions to fund shares 100 100
-------- --------
Net Increase from Share Transactions 100 100
-------- --------
Net Increase in Net Assets 96 94
Total Net Assets
Beginning of Period -- --
-------- --------
End of Period $ 96 $94
======== ========
Analysis of Changes in Shares of Beneficial Interest
Subscriptions to fund shares 10 10
-------- --------
Net increase in fund shares 10 10
Shares outstanding at beginning of period -- --
-------- --------
Shares outstanding at end of period 10 10
======== ========
(a) The Fund commenced operations on February 14, 1997.
See accompanying notes to financial statements.
<PAGE> 15
SR&F Balanced Portfolio
- -----------------------------------------------------------------------
Balance Sheet
(All Amounts in Thousands)
(Unaudited)
MARCH 31,
1997
----------
ASSETS
Investments, at market value ............................ $266,478
Receivable for investments sold ......................... 7,673
Interest receivable ..................................... 1,169
Dividends receivable .................................... 142
Cash .................................................... 4
--------
Total Assets ......................................... $275,466
========
LIABILITIES
Securities sold short, at market value .................. $ 16,953
Payable for investments purchased ....................... 4,076
Payable to investment adviser ........................... 119
Other liabilities ....................................... 35
--------
Total Liabilities .................................... 21,183
--------
Net Assets Applicable to Investors' Beneficial Interest . $254,283
========
See accompanying notes to financial statements.
<PAGE> 16
SR&F Balanced Portfolio
- -----------------------------------------------------------------------
Statement of Operations
(All Amounts in Thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
--------
INVESTMENT INCOME
Interest ..................................................... $ 1,427
Dividends .................................................... 530
--------
Total Investment Income ................................... 1,957
---------
EXPENSES
Management fees .............................................. 221
Interest expense ............................................. 12
Accounting fees .............................................. 5
Trustees fees ................................................. 4
Audit and legal fees .......................................... 3
Custodian fees ................................................ 1
Transfer agent fees ........................................... 1
Other ......................................................... 3
--------
Total Expenses ............................................. 250
--------
Net Investment Income ......................................... 1,707
--------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains on investments ............................. 1,786
Net change in unrealized appreciation
or depreciation of investments ............................. (11,530)
--------
Net Losses on Investments ...................... ......... (9,744)
--------
Net Decrease in Net Assets Resulting from Operations .........$ (8,037)
========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 17
SR&F Balanced Portfolio
- -----------------------------------------------------------------------
Statement of Changes in Net Assets
(All Amounts in Thousands)
(Unaudited)
PERIODD
ENDED
MARCH 31,
1997 (A)
----------
OPERATIONS
Net investment income................................ $ 1,707
Net realized gains on investments ................... 1,786
Net change in unrealized appreciation
or depreciation of investments (11,530)
---------
Net Decrease in Net Assets Resulting from Operations..... (8,037)
----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions............................................... 267,417
Withdrawals................................................. (5,097)
----------
Net Increase from Transactions
in Investors' Beneficial Interest 262,320
----------
Net Increase in Net Assets........................ 254,283
TOTAL NET ASSETS
Beginning of Period.......................... --
----------
End of Period................................ $254,283
==========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 18
SR&F Growth & Income Portfolio
- -----------------------------------------------------------------------
Balance Sheet
(All Amounts in Thousands)
(Unaudited)
MARCH 31,
1997
----------
ASSETS
Investments, at market value......................... $273,470
Dividends receivables................................ 382
Cash and other receivables........................... 4
----------
Total Assets...................................... $273,856
==========
LIABILITIES
Variation margin payable............................. $ 525
Payable to investment adviser........................ 144
----------
Total Liabilities................................. 669
----------
Net Assets Applicable to Investors' Beneficial Interest $273,187
==========
See accompanying notes to financial statements.
<PAGE> 19
SR&F Growth & Income Portfolio
- -----------------------------------------------------------------------
Statement of Operations
(All Amounts in Thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
--------
INVESTMENT INCOME
Dividends............................................ $ 748
Interest ............................................ 544
--------
Total Investment Income........................... 1,292
--------
EXPENSES
Management fees .......................................... 258
Accounting fees .......................................... 5
Trustees fees............................................. 3
Audit and legal fees ..................................... 3
Custodian fees ........................................... 2
Transfer agent fees ...................................... 1
Other .................................................... 4
--------
Total Expenses ............................................ 276
--------
Net Investment Income..................................... $ 1,016
--------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS AND FUTURES TRANSACTIONS
Net realized gains on investments ........................... 414
Net realized gains on futures transactions .................. 1,736
Net change in unrealized appreciation or
depreciation of investments and utures transactions...... (12,342)
--------
Net Losses on Investments and Futures Transactions ...... (10,192)
--------
Net Decrease in Net Assets Resulting from Operations ....... $ (9,176)
========
(a) The Portfolio commenced operations on February 3, 1997
See accompanying notes to financial statements.
<PAGE> 20
SR&F Growth & Income Portfolio
- ------------------------------------------------------------------------
Statement of Changes in Net Assets
(All Amounts in Thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
OPERATIONS
Net investment income........................................ $ 1,016
Net realized gains on investments and futures transactions .. 2,150
Net change in unrealized appreciation
or depreciation of investments and futures transactions . (12,342)
-------
Net Decrease in Net Assets Resulting from Operations .... (9,176)
---------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions ............................................... 286,229
Withdrawls ................................................. (3,866)
---------
Net Increase from Transactions
in Investors' Beneficial Interest ..................... 282,363
---------
Net Increase in Net Assets ............................... 273,187
TOTAL NET ASSETS
Beginning of Period ........................................... --
---------
End of Period................................................ $ 273,187
=========
(a) The Portfolio commenced operations on February 3, 1997
See accompanying notes to financial statements.
<PAGE> 21
Notes to Financial Statements
Note 1. Organization of the Portfolios
SR&F Balanced Portfolio and SR&F Growth & Income Portfolio (the
"Portfolios") are separate series of the SR&F Base Trust, a Massachusetts
common law trust organized under an Agreement and Declaration of Trust
dated August 23, 1993. The Declaration of Trust permits the Trustees to
issue non-transferable interests in the Portfolios. The Portfolios
commenced operations February 3, 1997. At commencement, Stein Roe
Balanced Fund and Growth & Income Fund contributed $259,476 and $238,698
in securities and other assets, respectively, to their respective
portfolios. At February 14, 1997, Stein Roe Advisor Balanced Fund and
Advisor Growth & Income Fund each contributed cash of $100 to their
respective Portfolios.
The Portfolios allocate net asset value, income and expenses based on
respective percentage ownership of each investor on a daily basis. At
March 31, 1997, Balanced Fund and Advisor Balanced Fund owned 99.96
percent and .04 percent, respectively, of the SR&F Balanced Portfolio,
and Growth & Income Fund and Advisor Growth & Income Fund owned 99.96
percent and .04 percent, respectively, of SR&F Growth & Income Portfolio.
Note 2. Significant Accounting Policies
The following are the significant accounting policies of Stein Roe
Advisor Balanced Fund, and Stein Roe Advisor Growth & Income Fund (the
"Funds"), each a series of the Stein Roe Investment Trust (a
Massachusetts business trust) and the SR&F Balanced Portfolio and SR&F
Growth & Income Portfolio (the "Portfolios"), each a series of the SR&F
Base Trust (a Massachusetts common law trust). The policies are in
conformity with generally accepted accounting principles. The preparation
of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ from
those estimates.
Security Valuations
All securities are valued as of March 31, 1997. Securities are valued,
depending on the security involved, at the last reported sales price,
last bid or asked price, or the mean between last bid and asked price as
of the close of the appropriate exchange or other designated time. A
security which is listed or traded on more than one exchange is valued at
the quotation on the exchange determined to be the primary exchange for
such security. Other assets and securities of the Portfolio are valued by
a method that the Board of Trustees believes represents a fair value.
Futures Contracts
During the period ended March 31, 1997, Growth & Income Portfolio entered
into stock index futures contracts to either hedge against expected
declines of its portfolio securities or as a temporary substitute for the
purchase of individual stocks. Risks of entering into futures contracts
include the possibility that there may be an illiquid market at the time
the Portfolio seeks to close out a contract, and changes in the value of
the futures contract may not correlate with changes in the value of the
portfolio securities being hedged.
Upon entering into a futures contract, the Portfolio deposits with its
custodian cash or securities in an amount sufficient to meet the initial
margin requirements. Subsequent payments are made or received by the
Portfolio equal to the daily change in the contract value and are
recorded as unrealized gains or losses. The Portfolio recognizes a
realized gain or loss when the contract is closed or expires.
<PAGE> 22
Notes (Continued)
Securities Sold Short
During the period ended March 31, 1997, Balanced Portfolio engaged in
selling securities short, which obligates the Portfolio to replace a
security borrowed by purchasing the same security at the current market
value. The Portfolio may incur a gain or a loss between the date of the
short sale and the date on which the Portfolio replaces the borrowed
security. The Portfolio has established a margin account with the broker
lending the security sold short. While the short sale is outstanding,
the Portfolio must maintain in a separate account with the custodian an
equivalent amount of the securities sold short or convertible or
exchangeable into said securities.
Federal Income Taxes
No provision is made for federal income taxes since each Fund elects to
be taxed as a "regulated investment company" and makes such distributions
to its shareholders as to be relieved of all federal income taxes under
provisions of current federal tax law.
The Funds intend to utilize provisions of the federal income tax laws,
which allow them to carry a realized capital loss forward up to eight
years following the year of the loss, and offset such losses against any
future realized gains.
Distributions to Shareholders
The Funds intend to distribute income, if any, quarterly, and capital
gains, if any, annually.
Distributions in excess of tax basis earnings are reported in the
financial statements as a return of capital. Differences in the
recognition or classification of income between the financial statements
and tax earnings that result in temporary overdistributions are
classified as distributions in excess of net investment income or net
realized gains, and any permanent differences are reclassified to paid-in
capital.
Other Information
Dividend income is recognized on the ex-dividend date and interest income
is recognized on an accrual basis.
Realized gains or losses from sales of securities are determined on the
specific identified cost basis.
All amounts, except per-share amounts, are shown in thousands.
Note 3. Trustees' Fees and Transactions with Affiliates
The Funds and Portfolios pay monthly management and administrative fees
to Stein Roe & Farnham Incorporated (the "Adviser"), an indirect,
majority-owned subsidiary of Liberty Mutual Insurance Company, for its
services as investment adviser and manager.
The management fee for Balanced Portfolio is computed at an annual rate
of .55 of 1 percent of average daily net assets up to $500 million, .50
of 1 percent of the next $500 million, and .45 of 1 percent thereafter.
The management fee for Growth & Income Portfolio is computed at an annual
rate of .60 of 1 percent of average daily net assets up to $500 million,
.55 of 1 percent of the next $500 million, and .50 of 1 percent
thereafter. The administrative fees for the Funds are computed at an
annual rate of .15 of 1 percent of average daily net assets up to $500
million, .125 of 1 percent of the next $500 million, and .10 of 1 percent
thereafter.
The administrative agreement provides that the Adviser will reimburse
each Fund to the extent that annual expenses, excluding certain expenses,
exceed the applicable limits prescribed by any state in which the Fund's
shares are offered for sale. In addition, the Adviser has agreed to
reimburse Advisor Balanced Fund and Advisor Growth & Income Fund to the
extent that expenses exceed 1.35 percent and 1.40 percent of average
daily net assets. These expense limitations expire on January 31, 1998,
subject to earlier termination by the Adviser on 30 days' notice.
<PAGE> 23
Notes (Continued)
The transfer agent fees are paid to SteinRoe Services Inc. (SSI), an
indirect, majority-owned subsidiary of Liberty Mutual Insurance Company.
SSI has entered into an agreement with Colonial Investors Service Center,
Inc., an indirect, majority-owned subsidiary of Liberty Mutual Insurance
Company, to act as sub-transfer agent for the Funds.
The Adviser also provides certain fund accounting services. For the
period ended March 31,1997, Advisor Balanced Fund, Advisor Growth &
Income Fund, SR&F Balanced Portfolio and SR&F Growth & Income Portfolio
incurred charges of $3, $3, $5, and $5, respectively.
Certain officers and trustees of the Trusts are also officers of the
Adviser. The compensation of trustees not affiliated with the Adviser for
SR&F Balanced Portfolio and SR&F Growth & Income Portfolio for the period
ended March 31, 1997, was $4, and $3, respectively. No remuneration was
paid to any other trustee or officer of the Trusts.
Note 4. Short-Term Debt
To facilitate portfolio liquidity, the Funds and Portfolios maintain
borrowing arrangements under which they can borrow against portfolio
securities. Neither the Funds nor the Portfolios had borrowings during
the period ended March 31, 1997.
Note 5. Investment Transactions
The aggregate cost of purchases and proceeds from sales other than short-
term obligations for the period ended March 31, 1997, were:
Portfolio Purchases Sales
___________ _________
Balanced Portfolio $15,445 $11,912
Growth & Income Portfolio 14,964 1,123
At March 31, 1997, the cost of investments for federal income tax
purposes and for financial reporting purposes for SR&F Balanced Portfolio
were $216,852 and $216,889, respectively. For SR&F Growth & Income
Portfolio, they were the same. Unrealized appreciation and depreciation
on a tax basis for SR&F Balanced Portfolio was $53,679, and $4,090,
respectively, and for SR&F Growth & Income Portfolio was $66,756 and
$3,641, respectively.
Note 6. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan pursuant
to Rule 12b-1 under the Investment Company Act of 1940 and a service plan
(collectively the "Plans"). The Plans govern payments for the
distribution of the Fund's shares, ongoing shareholder services and
maintenance of shareholder accounts.
Annual fees under the Plans of up to .25 percent are computed annually as
a percentage of average daily net assets.
<PAGE> 24
Stein Roe Advisor Balanced Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the period)
ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
Net Asset Value, Beginning of Period $10.00
---------
Income From Investment Operations
Net investment income 0.04
Net realized and unrealized losses on investments (0.46)
---------
Total from investment operations (0.42)
---------
Net Asset Value, End of Period $9.58
=========
Ratio of net expenses to average net assets (b) 1.36%*
Ratio of net investment income to average net assets (c) 3.18%*
Total return -4.20%
Net assets, end of period $ 96
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio would
have been 86.13 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 25
Stein Roe Advisor Growth & Income Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the period)
ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
Net Asset Value, Beginning of Period $10.00
---------
Income From Investment Operations
Net investment income 0.02
Net realized and unrealized losses on investments (0.65)
---------
Total from investment operations (0.63)
---------
Net Asset Value, End of Period $9.37
=========
Ratio of net expenses to average net assets (b) 1.41%*
Ratio of net investment income to average net assets (c) 0.94%*
Total return -6.30%
Net assets, end of period $ 96
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio would
have been 86.21 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 26
Financial Highlights
- -----------------------------------------------------------------------
SR&F Balanced Portfolio
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets........ 4.28%*
Ratio of net expenses to average net assets................. 0.59%*
Portfolio turnover rate..................................... 5%
Average commissions (per share)............................. $0.0551
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
Financial Highlights CONTINUED
- -----------------------------------------------------------------------
SR&F Growth and Income Portfolio
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets........ 2.36%*
Ratio of net expenses to average net assets................. 0.64%*
Portfolio turnover rate..................................... 1%
Average commissions (per share)............................. $0.0695
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
<PAGE> 1
Stein Roe Mutual Funds
Semiannual Report
March 31, 1997
Stein Roe Advisor International Fund
<PAGE> 2
SR&F International Portfolio
- --------------------------------------------------------------------
Investments as of March 31, 1997
(Dollar Amounts in Thousands)
(Unaudited)
NUMBER MARKET
STOCKS (98.3%) OF SHARES VALUE
ARGENTINA (2.5%)
Telecom Argentina ADRs ........................ 32,600 $ 1,500
YPF Sociedad Anonima ADRs . ................... 76,000 2,014
-----------
3,514
AUSTRALIA (1.3%)
Reinsurance Australia Corp. ................... 559,000 1,879
BELGIUM (1.6%)
Generale de Banque ............................ 5,720 2,239
BRAZIL (2.1%)
Coteminas Pfd. ................................ 200,000 882
*Globex Utilidades S.A. Pfd. .................. 71,000 1,373
Perdigao S.A. Comercio e Industria Pfd. ....364,700,000 757
-----------
3,012
CHINA (0.7%)
Yizheng Chemical Fibre ..................... 4,502,000 964
FINLAND (5.2%)
Enso Gutzeit (Ordinary R Shares) ........... 240,000 2,065
Kemira Oy ................................. 128,000 1,385
Metsa-Serla Oy (B Shares) .................. 303,000 2,202
Neste Oy ................................... 60,600 1,578
-----------
7,230
FRANCE (6.1%)
Alcatel Alsthom ............................ 17,786 2,143
Generale Des Eaux .......................... 17,673 2,402
*Moulinex .................................. 77,400 1,774
Total Petroles Class B ..................... 24,616 2,129
-----------
8,448
GERMANY (6.1%)
Agiv AG .................................... 78,000 1,426
Friedrick Grohe ............................ 6,300 2,009
Henkel KGAA Ordinary Shares ........ 6,500 337
Preferred Shares ................... 42,100 2,317
Mannesmann AG ........................ 6,100 2,331
-----------
8,420
See accompanying notes to financial statements.
<PAGE> 3
SR&F International Portfolio continued
- -----------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
HONG KONG (3.4%)
Companion Building .................... 7,227,680 597
Hong Kong Ferry ....................... 530,000 947
International Bank of Asia ............ 1,400,000 858
Jardine Matheson Holdings ............. 163,853 950
Tian An China Investment
Ordinary Shares ........................ 5,072,000 530
Warrants ............................... 1,014,400 35
Vitasoy ................................... 999,364 351
World Houseware Holdings .................. 6,293,680 520
-----------
4,788
INDIA (1.0%)
Indian Petrochem GDRs ..................... 92,000 $ 1,035
**Reliance Industries GDSs ................ 29,000 442
---------
1,477
INDONESIA (3.5%)
CP Indonesia .............................. 415,000 467
Ever Shine Tex ............................ 2,019,688 757
Kawasan Industri Jababeka ................. 1,133,333 1,546
Matahari Putra Prima ...................... 1,438,000 2,096
---------
4,866
ISRAEL (0.5%)
Koor Industries ........................... 39,500 711
ITALY (4.8%)
Banca Popolare di Milano .................. 375,800 2,106
*Olivetti ................................. 4,338,000 1,560
Telecom Italia Savings Shares ............. 1,466,000 3,124
---------
6,790
See accompanying notes to financial statements.
<PAGE> 3
SR&F International Portfolio continued
- -----------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
JAPAN (18.2%)
Canon Inc. ................................ 86,000 1,841
DDI ....................................... 249 1,571
Hitachi ................................... 212,000 1,884
Ito Yokado ................................ 50,000 2,221
*Japan OTC Fund ........................... 840 441
Jusco Co. ................................. 73,000 2,005
Kaneshita Construction .................... 73,000 528
Kokusai Securities ........................ 123,000 964
Matsushita Electric Industrial ............ 138,000 2,151
Mori Seiki ................................ 119,000 1,634
Murata Manufacturing ...................... 50,000 1,793
Promise Co. .............................. 54,000 2,259
Suzuki Motor .............................. 201,000 1,948
Tokyo Style ............................... 105,000 1,162
*World Equity Benchmark Shares ............ 134,000 1,541
Yamazen Corporation ...................... 521,000 1,629
---------
25,572
MALAYSIA (0.5%)
IOI Properties ............................. 230,000 761
MEXICO (0.7%)
Transportation Maritima Mexicana ADRs ........ 176,000 968
NETHERLANDS (3.4%)
Fortis AMEV ................................ 64,057 2,496
KPN ........................................ 43,306 1,605
Sphinx Kon CVA ............................. 56,427 614
---------
4,715
NEW ZEALAND (1.2%)
Brierley Investments ....................... 1,824,883 1,702
NORWAY (4.2%)
Helikopter Service ......................... 129,000 $ 1,897
Norsk Hydro AS ............................. 42,800 2,141
Saga Petroleum A Free ...................... 109,500 1,892
---------
5,930
PANAMA (1.6%)
Bladex ADRs ................................ 46,200 2,183
PERU (0.5%)
Southern Peru Copper ADRs .................. 43,000 731
See accompanying notes to financial statements.
<PAGE> 5
SR&F International Portfolio continued
- -----------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
PHILIPPINES (1.1%)
Metro Pacific .............................. 5,100,000 1,548
PORTUGAL (1.1%)
Portugal Telecom ADRs ...................... 42,157 1,549
RUSSIA (1.3%)
*Fleming Russia Securities Fund ............ 104,100 1,783
SOUTH KOREA (5.0%)
Korea Exchange Bank ........................ 186,295 1,175
LG Electronics ............................. 58,000 674
LG Securities .............................. 81,000 636
Samchully .................................. 19,983 1,430
Samsung Electronics
GDRs .................................... 15,000 307
Ordinary Shares ......................... 896 72
Preferred Shares ........................ 25,774 1,032
**Yukong GDRs .............................. 92,500 1,653
---------
6,979
SPAIN (1.3%)
Acerinox SA ................................ 12,600 1,773
SWEDEN (5.3%)
Avesta-Sheffield .......................... 221,000 2,391
*Biora ..................................... 32,200 644
SSAB Svenskt Stal AB (B shares) ............ 152,800 2,789
*Diligentia AB ............................. 138,500 1,609
---------
7,433
SWITZERLAND (2.7%)
*Bucher AG ................................ 774 661
Danzas Holding AG .......................... 1,020 999
Novartis AG ................................ 1,700 2,108
---------
3,768
THAILAND (2.2%)
Precious Shipping .......................... 347,100 935
Property Perfect ........................... 690,000 797
*Siam Commercial Bank ...................... 200,000 1,170
Sino Thai Engineering & Construction ....... 151,200 162
---------
3,064
See accompanying notes to financial statements.
<PAGE> 6
SR&F International Portfolio continued
- -----------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
UNITED KINGDOM (9.2%)
British Gas Plc.............................. 699,000 $ 1,865
*Celsis International Plc.................... 487,905 837
*Centrica International Plc.................. 699,000 729
Inchcape Plc................................. 611,000 2,629
Intrum Justita Plc........................... 305,000 621
Powerscreen International Plc................ 136,200 1,374
SmithKline Beecham Plc Class A............... 131,164 1,945
*Tele-Communications International Plc....... 138,000 1,777
Transtec Plc................................. 595,054 1,158
--------
12,935
--------
Total Stocks (Cost $131,277)................. 137,732
- -----------------------------------------------------------------------
PRINCIPAL
SHORT-TERM OBLIGATIONS (1.0%) AMOUNT
- -----------------------------------------------------------------------
UNITED STATES
COMMERCIAL PAPER (1.0%)
UBS Finance 6.750% 4/01/97
(Amortized cost $1,435)................... 1,435 1,435
- -----------------------------------------------------------------------
TOTAL INVESTMENTS (99.3%)
(Cost Basis $139,163) ...................... 139,167
OTHER ASSETS, LESS LIABILITIES (0.7%)........ 1,000
--------
TOTAL NET ASSETS (100.0%).................... $140,167
========
- -----------------------------------------------------------------------
* Non-income producing.
** These securities are subject to contractual or legal restrictions on
their resale. At March 31, 1997, the aggregate value of these
securities represented 1.5 percent of net assets.
See accompanying notes to financial statements.
<PAGE> 7
Stein Roe Advisor International Fund
Balance Sheet
March 31, 1997
(All amounts in thousands, except per-share amount)
(Unaudited)
Assets
Investment in SR&F International Portfolio, at value $ 99
Cash and other assets 24
------
Total Assets $ 12
======
Liabilities
Other liabilities $ 23
------
Total Liabilities 23
------
Capital
Paid-in capital 100
Accumulated undistributed realized losses on
foreign currency transactions (2)
Net unrealized appreciation of investments 2
------
Total Capital (Net Assets) 100
------
Total Liabilities and Capital $ 123
======
Shares Outstanding (Unlimited Number Authorized) 10
======
Net Asset Value (Capital) Per Share $ 9.97
======
See accompanying notes to financial statements.
<PAGE> 8
Stein Roe Advisor International Fund
Statement of Operations
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Expenses
Amortization of organization expenses $ 4
Accounting fees 3
Other 1
-------
10
Reimbursement of expenses by investment adviser (8)
--------
Total Expenses 2
--------
Net Investment Loss (2)
--------
Unrealized Gains on Investments
Net realized losses on foreign currency transactions
allocated from SR&F International Portfolio (2)
Net change in unrealized appreciation or depreciation
of investments 2
--------
Net Gains on Investments --
--------
Net Increase in Net Assets Resulting
from Operations $ --
========
(a) The Fund commenced operations on February 14, 1997
See accompanying notes to financial statements.
<PAGE> 9
Stein Roe Advisor International Fund
Statement of Changes in Net Assets
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Operations
Net investment income $ --
Net realized losses on foreign currency transactions (2)
Net change in unrealized appreciation
or depreciation of investments 2
-------
Net Increase in Net Assets Resulting from Operations --
-------
Share Transactions
Subscriptions to fund shares 100
-------
Net Increase from Share Transactions 100
-------
Net Increase in Net Assets 100
Total Net Assets
Beginning of Period --
-------
End of Period $ 100
=======
Analysis of Changes in Shares of Beneficial Interest
Subscriptions to fund shares 10
-------
Net increase in fund shares 10
Shares outstanding at beginning of period --
-------
Shares outstanding at end of period 10
=======
(a) The Fund commenced operations on February 14, 1997.
See accompanying notes to financial statements.
<PAGE> 10
SR&F International Portfolio
- -----------------------------------------------------------------------
Balance Sheet
(All Amounts in Thousands)
(Unaudited)
MARCH 31,
1997
--------
ASSETS
Investments, at market value ............................... $139,164
Cash ....................................................... 848
Dividends receivable ....................................... 279
--------
Total Assets ............................................ 140,291
========
LIABILITIES
Payable to investment adviser .............................. $ 101
Other liabilities .......................................... 27
--------
Total Liabilities ....................................... 128
--------
Net Assets Applicable to Investors' Beneficial Interests.... $140,163
========
See accompanying notes to financial statements.
<PAGE> 11
SR&F International Portfolio
- -----------------------------------------------------------------------
Statement of Operations
(All Amounts in Thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997(a)
----------
INVESTMENT INCOME
Dividends ............................................... $ 541
Interest Income ......................................... 46
-------
587
Foreign taxes withheld .................................. (62)
-------
Total Investment Income .............................. 525
EXPENSES
Management fees ......................................... 187
Accounting fees ......................................... 5
Audit and legal fees .................................... 4
-------
Total Expenses ....................................... 196
-------
Net Investment Income ................................... 329
-------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gains on investments ....................... 2,060
Net realized losses on foreign currency transactions .... (36)
Net change in unrealized appreciation or depreciation of
investments and foreign currency transactions ........ 6,450
-------
Net Gains on Investments and
Foreign Currency Transactions ....................... 8,474
-------
Net Increase in Net Assets Resulting from Operations .... $ 8,803
======
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 12
SR&F International Portfolio
- -----------------------------------------------------------------------
Statement of Changes in Net Assets
(All Amounts in Thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997(a)
----------
OPERATIONS
Net investment income........................................ $ 329
Net realized gains on investments and foreign
currency transactions..................................... 2,024
Net change in unrealized appreciation or depreciation of
investments.............................................. 6,450
----------
Net Increase in Net Assets Resulting from Operations...... 8,803
----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions............................................. 139,079
Withdrawals............................................... (7,719)
----------
Net Increase from Transactions in Investors' Beneficial
Interests............................................. 131,360
----------
Net Increase in Net Assets........................... 140,163
TOTAL NET ASSETS
Beginning of Period..................................... --
----------
End of Period............................................ $140,163
==========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 13
Notes to Financial Statements
- -----------------------------------------------------------------------
Note 1. Organization of the SR&F International Portfolio
The SR&F International Portfolio (the "Portfolio") is a separate series
of the SR&F Base Trust, a Massachusetts common law trust organized under
an Agreement and Declaration of Trust dated August 23, 1993. The
Declaration of Trust permits the Trustees to issue non-transferable
interests in the Portfolio. The Portfolio commenced operations on
February 3, 1997. At commencement, the Stein Roe International Fund
contributed $143,615 in securities and other assets. On February 14, 1997
Stein Roe Advisor International Fund contributed cash of $100.
The Portfolio allocates net asset value, income and expenses based on
respective percentage ownership of each investor on a daily basis. At
March 31, 1997, Stein Roe International Fund and Stein Roe Advisor
International Fund owned 99.93 percent and .07 percent, respectively.
Note 2. Significant Accounting Policies
The following are the significant accounting policies of Stein Roe
Advisor International Fund (the "Fund"), a series of the Stein Roe
Investment Trust (a Massachusetts business trust) and the SR&F
International Portfolio (the "Portfolio"), a series of the SR&F Base
Trust (a Massachusetts common law trust). These policies are in
conformity with generally accepted accounting principles. The preparation
of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ from
those estimates.
Security Valuations
All securities are valued as of March 31, 1997. Securities are valued,
depending on the security involved, at the last reported sales price,
last bid or asked price, or the mean between last bid and asked price as
of the close of the appropriate exchange or other designated time. A
security which is listed or traded on more than one exchange is valued at
the quotation on the exchange determined to be the primary exchange for
such security. Other assets and securities of the Portfolio are valued by
a method that the Board of Trustees believes represents a fair value.
<PAGE> 14
Notes (continued)
Currency Translations
For purposes of valuation, assets and liabilities are translated into
U.S. dollars using currency exchange rates that represent the mid-point
between the bid and asked rates as of 4:00 p.m., London time. Purchases
and sales or securities are translated into U.S. dollars using the
prevailing exchange on the dates of such transactions. The effect of
changes in foreign exchange rates on realized and unrealized security
gains and losses is reflected as a component of such gains and losses.
Forward Currency
Exchange ContractsThe Portfolio may enter into forward currency exchange
contracts under which the Portfolio is obligated to exchange currencies
at specified future dates. Risks arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
currency values. The Portfolio did not have any open contracts at March
31, 1997.
Federal Income Taxes
No provision is made for federal income taxes since the Fund elects to be
taxed as a "regulated investment company" and make such distributions to
its shareholders as to be relieved of all federal income taxes under
provisions of current federal tax law.
The Fund intends to utilize provisions of the federal income tax laws,
which allow them to carry a realized capital loss forward up to eight
years following the year of the loss, and offset such losses against any
future realized gains.
Distributions to Shareholders
Dividends from net investment income and capital gains, if any, are
distributed annually. Distributions in excess of tax basis earnings are
reported in the financial statements as a return of capital. Differences
in the recognition or classification of income between the financial
statements and tax earnings that result in temporary overdistributions
are classified as distributions in excess of net investment income or net
realized gains, and any permanent differences are reclassified to paid-in
capital.
Other Information
The books and records of the Fund and Portfolio are maintained in U.S.
dollars. Dividend income is recognized on the ex-dividend date and
interest income is recognized on an accrual basis.
Realized gains or losses from sales of securities are determined on the
specific identified cost basis.
All amounts, except per-share amounts, are shown in thousands.
<PAGE> 15
Notes (continued)
Note 3. Trustees' Fees and Transactions with Affiliates
The Fund and Portfolio pay monthly management and administrative fees,
computed and accrued daily, to Stein Roe & Farnham Incorporated (the
"Adviser"), an indirect, majority-owned subsidiary of Liberty Mutual
Insurance Company, for its services as investment adviser and manager.
The management fee for the Portfolio is computed at an annual rate of .85
percent of average daily net assets. The administrative fee for the Fund
is computed at an annual rate of .15 percent of average daily net assets.
The administrative agreement for the Fund provides that the Adviser will
reimburse the Fund to the extent that annual expenses, excluding certain
expenses, exceed the applicable limits prescribed by any state in which
the Fund's shares are offered for sale. In addition, the Adviser has
agreed to reimburse the Fund to the extent that expenses exceed 1.75
percent of average daily net assets. This expense limitation expires on
January 31, 1998, subject to earlier termination by the Adviser on 30
days' notice.
The transfer agent fees are paid to SteinRoe Services Inc. (SSI), an
indirect, majority-owned subsidiary of Liberty Mutual Insurance Company.
SSI has entered into an agreement with Colonial Investors Service Center,
Inc., an indirect, majority-owned subsidiary of Liberty Mutual Insurance
Company, to act as sub-transfer agent for the Fund.
The Adviser also provides certain fund accounting services. For the
period ended March 31, 1997, the Fund and Portfolio incurred charges of
$3, and $2, respectively.
Certain officers and trustees of the Trusts are also officers of the
Adviser. The compensation of trustees not affiliated with the Adviser for
the Portfolio for the period ended March 31, 1997, was $3. No
remuneration was paid to any other trustee or officer of the Trusts.
The Board of Trustees of each Trust has adopted procedures permitting
securities transactions among the Funds and Portfolios, clients of Stein
Roe and other affiliated entities. The aggregate cost of purchases and
proceeds from sales from such securities transactions for the Portfolio
for the period ended March 31, 1997 were $1,109 and $800, respectively.
Note 4. Short-Term Debt
To facilitate portfolio liquidity, the Fund and Portfolio maintain
borrowing arrangements under which they can borrow against portfolio
securities. Neither the Fund nor the Portfolio had borrowings during the
period ended March 31, 1997.
Note 5. Investment Transactions
The aggregate cost of purchases and proceeds from sales for the Portfolio
(other than short-term obligations) for the period ended March 31, 1997,
were $10,272 and $7,334, respectively.
At March 31, 1997, the cost of investments for federal income tax
purposes and for financial reporting were the same. Unrealized
appreciation and depreciation on a tax basis were $21,737 and $15,286,
respectively.
<PAGE> 16
Notes (continued)
Note 6. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan pursuant
to Rule 12b-1 under the Investment Company Act of 1940 and a service plan
(collectively the "Plans"). The Plans govern payments for the
distribution of the Fund's shares, ongoing shareholder services and
maintenance of shareholder accounts.
Annual fees under the Plans of up to .25 percent are computed annually as
a percentage of average daily net assets.
<PAGE> 17
Stein Roe Advisor International Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the
period), ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
---------
Net Asset Value, Beginning of Period $10.00
---------
Income From Investment Operations
Net investment income 0.01
Net realized and unrealized losses on investments (0.04)
---------
Total from investment operations (0.03)
---------
Net Asset Value, End of Period $9.97
=========
Ratio of net expenses to average net assets (b) 1.77%*
Ratio of net investment income to average net assets (c) 0.82%*
Total return -0.30%
Net assets, end of period $ 100
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio
would have been 65.57 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 18
Financial Highlights
- -----------------------------------------------------------------------
SR&F International Portfolio
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (a)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets............ 1.50%*
Ratio of net expenses to average net assets..................... 0.89%*
Portfolio turnover rate......................................... 5%
Average commissions (per share)................................ $0.0129
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
<PAGE> 1
Stein Roe Mutual Funds
Semiannual Report
March 31, 1997
Stein Roe Advisor Young Investor Fund
<PAGE> 2
SR&F GROWTH INVESTOR PORTFOLIO
Investments as of March 31, 1997
(Dollar amounts in thousands)
(Unaudited)
Number Market
EQUITY-RELATED SECURITIES (92.1%) of Shares Value
--------- ------
Common Stocks (90.7%)
Automobiles/Vehicles (2.7%)
Volvo AB ADRs
(Manufactures cars, trucks, buses,
marine engines and aerospace equipment) 170,000 $ 4,420
Chrysler Corporation
(Manufactures, assembles and
sells cars and trucks) 100,000 3,000
*Circuit City Stores - CarMax Group
(Sells retail used cars and light trucks) 100,000 1,500
-------
8,920
Banks (4.6%)
Citicorp
(Provides a broad range of financial
services) 50,000 5,413
Texas Regional Bancshares, Class A
(Commercial bank operating in the Rio Grande
Valley of Texas) 150,000 4,875
Wells Fargo & Co.
(Provides a broad array of financial products
and services) 17,000 4,830
-------
15,118
Commercial Services (3.4%)
*ABR Information Services, Inc.
(Provides benefits administration, compliance
and information services to employers) 200,000 3,600
Paychex, Inc.
(Provides computerized payroll accounting
services to businesses) 110,000 4,524
*Sykes Enterprises, Inc.
(Provides information technology outsourcing
services, including support services and
development services and solutions) 100,000 3,263
-------
11,387
See accompanying notes to financial statements.
<PAGE> 2
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Computer Software and Services (5.6%)
*Cisco Systems Inc.
(Produces, markets and supports
multiprotocol internetworking systems) 100,000 4,812
*Fore Systems Inc.
(Produces network management software for
data communications and computer
applications) 85,000 $ 1,275
*Microsoft Corporation
(Manufactures software products) 55,000 5,043
*Sterling Commerce Inc.
(Global provider of electronic commerce
software products and network services) 170,000 4,930
*3Com Corporation
(Designs, produces and markets a broad
range of global data networking solutions) 70,000 2,292
-------
18,352
Consumer Products (5.5%)
*CUC International Inc.
(Consumer marketing company) 200,000 4,500
General Electric Company
(Appliances, broadcasting, communications
and transportation) 50,000 4,962
The Gillette Company
(Shaving and personal care products) 50,000 3,631
The Procter & Gamble Company
(Produces personal care products,
pharmaceuticals, food and beverages) 43,000 4,945
-------
18,038
Data Processing (2.8%)
Automatic Data Processing
(Offers a variety of data processing
services) 100,000 4,187
First Data Corporation
(Provides information processing and related
services) 150,000 5,081
-------
9,268
Distribution - Retail (8.2%)
*Inacom Corporation
(Markets and distributes information
technology products and services) 75,000 3,981
*Insight Enterprises, Inc.
(Markets microcomputers, peripherals
and software) 100,000 2,475
Mattel, Inc
(Designs, manufactures and
markets children's toys) 248,314 5,959
See accompanying notes to financial statements.
<PAGE> 3
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Distribution - Retail (Continued)
*PETsMART Inc.
(Operates pet food and supply stores) 230,000 $ 4,657
Sears, Roebuck & Co.
(Retailer of apparel, home and automotive
products and services) 110,000 5,527
Walgreen Company
(Large retail drugstore chain
in the United States) 110,000 4,606
-------
27,205
Educational Services (2.2%)
*Apollo Group Inc., Class A
(Provides higher education programs
for working adults) 180,000 4,410
*Children's Comprehensive Services
(Provides services for at-risk youth) 250,000 2,875
-------
7,285
Electrical Equipment (5.7%)
Hewlett-Packard Co.
(Designs, manufactures and services
computers, calculators, workstations,
printers and medical diagnostic devices) 80,000 4,260
Intel Corp.
(Produces and sells microcomputer
components and related products) 35,000 4,869
Motorola, Inc.
(Producer of electronic and
telecommunication equipment) 100,000 6,037
*Sipex Corporation
(Manufactures, markets and sells analog
-integrated circuits) 128,500 3,759
-------
18,925
Entertainment (2.8%)
Cedar Fair L.P.
(Owns and operates four amusement theme
parks) 100,000 3,775
Disney (Walt) Company
(Operates theme parks and resorts and
produces motion pictures) 75,000 5,475
-------
9,250
See accompanying notes to financial statements.
<PAGE> 5
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Financial Institutions (4.1%)
Federal Home Loan Mortgage Corp.
(Purchases mortgages from lenders and
resells in pools or packages) 170,000 $ 4,633
Federal National Mortgage Association
(Purchases mortgages and issues guaranteed
mortgage-backed securities) 130,000 4,696
Household International Inc.
(Provides financial and banking services) 50,000 4,306
-------
13,635
Financial Services (1.8%)
American Express Company
(Provides a variety of diversified travel and
financial services) 80,000 4,790
*Nationwide Financial Services
(Provides long-term saving and retirement
products to retail and institutional
customers) 47,800 1,231
-------
6,021
Food & Beverage (2.9%)
The Coca-Cola Company
(Producer and distributor of soft drink
products) 100,000 5,588
Wrigley (Wm.) Jr. Company
(Chewing gum manufacturer) 70,000 4,086
-------
9,674
Health Care (3.0%)
Johnson & Johnson
(Manufactures and markets a broad range of
health care and other products) 100,000 5,288
United Healthcare Corp.
(Owns and manages health maintenance
organizations) 100,000 4,763
-------
10,051
Insurance (2.5%)
CMAC Investment Corp.
(Provides private mortgage insurance
coverage) 100,000 3,337
MGIC Investment Corp.
(Provides private mortgage insurance coverage) 70,000 4,953
-------
8,290
See accompanying notes to financial statements.
<PAGE> 6
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Leisure Products (1.1%)
Callaway Golf Company
(Produces and markets golf clubs) 120,000 $ 3,435
Machinery (1.4%)
*Thermo Electron Corporation
(Manufactures and sells environmental
monitoring and analysis instruments,
papermaking and recycling equipment) 150,000 4,631
Medical/Pharmaceutical (4.4%)
Eli Lilly & Co.
(Involved In discovery, development,
manufacture and sale of pharmaceutical
products) 60,000 4,935
Merck & Co., Inc.
(Manufactures and produces human and
animal health products and services) 55,000 4,634
SmithKline Beecham Plc ADRs
(Develops, manufactures and
markets pharmaceuticals) 70,000 4,900
-------
14,469
Medical-Instruments (5.4%)
*Boston Scientific Corp.
(Develops, produces and markets
medical devices) 75,000 4,631
Guidant Corporation
(Designs, develops and manufactures
cardiovascular products) 90,000 5,535
*Idexx Laboratories Inc.
(Develops and manufactures
biotechnology-based detection systems
for veterinarians) 200,000 2,800
Medtronic Inc.
(Manufactures various cardiovascular
medical instruments) 80,000 4,980
-------
17,946
See accompanying notes to financial statements.
<PAGE> 7
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Oil Exploration and Production (0.7%)
*United Meridian Corporation
(Acquires, explores and develops
natural gas and crude oil properties) 80,000 $ 2,410
Office Furnishings (0.2%)
Shelby Williams Industries, Inc.
(Designs, manufactures and distributes
products for the contract furniture market) 50,000 694
Publishing, Broadcasting and Media (6.8%)
*Clear Channel Communications Inc.
(Owns, operates and manages radio and
television stations) 110,000 4,716
*Heftel Broadcasting Corp., Class A
(Spanish language radio broadcasting company) 135,000 6,278
*International Family Entertainment
(Produces and distributes entertainment
programming) 150,000 3,056
*Outdoor Systems Inc.
(Outdoor advertising company) 160,000 4,780
*Telemundo Group Inc., Class A
(Develops and produces Spanish
language television programming and
advertising) 125,000 3,578
-------
22,408
Restaurant/Hotel (3.1%)
*HFS Inc.
(Franchiser of hotel chains, real estate
and car rental firms) 80,000 4,710
McDonald's Corporation
(Develops, licenses, leases and services a
worldwide system of restaurants) 115,000 5,434
-------
10,144
Specialty Chemicals (1.5%)
Minerals Technologies Inc.
(Develops, produces and markets specialty
mminerals mineral-based and synthetic
mineral products) 150,000 4,988
See accompanying notes to financial statements.
<PAGE> 8
Number Market
Common Stocks (Continued) of Shares Value
--------- ------
Telecommunications (6.0%)
Ascend Communications Inc.
(Produces, markets and services tele-
communications delivery systems) 70,000 $ 2,853
*Associated Group Inc., Class A
(Wireless cable company) 90,000 3,397
*Cascade Communications Corp.
(Designs, develops and maintains a line of
multiservice wide area network switches) 180,000 4,748
Lucent Technologies Inc.
(Produces public and private networks,
communication systems and software) 90,000 4,748
*Tellabs Inc.
(Designs, assembles, markets and services
voice and data networking products) 110,000 3,974
--------
19,720
Travel Services (1.4%)
*Sabre Group Holdings Inc.
(Provider of a travel reservation system) 180,000 4,545
Transportation (0.9%)
*Heartland Express
(Carrier of irregular route motor freight) 150,000 2,850
--------
TOTAL COMMON STOCKS
(Cost $291,213) 299,659
PREFERRED STOCK (1.4%)
Nokia Corp. ADSs
(International electronics group)
(Cost $3,761) 80,000 4,660
--------
TOTAL EQUITY-RELATED SECURITIES
(Cost $294,974) 304,319
--------
See accompanying notes to financial statements.
<PAGE> 9
Principal Market
Amount Value
SHORT-TERM OBLIGATIONS (9.1%)
Commercial Paper
Price/Costco 7.300% 4/01/97 $10,000 $ 10,000
UBS Finance 6.750% 4/01/97 13,415 13,415
Windmill Funding 5.400% 4/01/97 6,500 6,500
-------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $29,915) 29,915
-------
TOTAL INVESTMENTS (101.2%)
(Cost $324,889) 334,234
OTHER ASSETS, LESS LIABILITIES (-1.2%) (3,917)
-------
TOTAL NET ASSETS (100%) $330,317
=======
See accompanying notes to financial statements.
* Non-Income Producing
<PAGE> 10
Stein Roe Advisor Young Investor Fund
Balance Sheet
March 31, 1997
(All amounts in thousands, except per-share amount)
(Unaudited)
Assets
Investment in SR&F Growth Investor Portfolio, at value $89
Cash and other assets 24
----
Total Assets $113
====
Liabilities
Other liabilities $23
----
Total Liabilities 23
----
Capital
Paid-in capital 100
Net unrealized depreciation of investments (7)
Accumulated undistributed net realized losses on investments (3)
----
Total Capital (Net Assets) 90
----
Total Liabilities and Capital $113
====
Shares Outstanding (Unlimited Number Authorized) 10
====
Net Asset Value (Capital) Per Share $9.00
====
<PAGE> 11
Stein Roe Advisor Young Investor Fund
Statement of Operations
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Expenses
Amortization of organization expenses $ 4
Accounting fees 3
Audit and legal fees 2
Other 1
---
10
Reimbursement of expenses by investment
adviser (10)
---
Total Expenses --
---
Net Investment Income --
---
Realized and Unrealized Losses on Investments
Net realized losses on investments allocated
from SR&F Growth Investor Portfolio (3)
Net change in unrealized appreciation or
depreciation of investments (7)
---
Net Losses on Investments (10)
---
Net Decrease in Net Assets Resulting
from Operations $ (10)
====
(a) The Fund commenced operations on February 14, 1997.
<PAGE> 12
Stein Roe Advisor Young Investor Fund
Statement of Changes in Net Assets
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Operations
Net investment income $ -
Net realized losses on investments (3)
Net change in unrealized appreciation or
depreciation of investments (7)
---
Net Decrease in Net Assets Resulting
from Operations (10)
---
Share Transactions
Subscriptions to fund shares 100
---
Net Increase from Share Transactions 100
---
Net Increase in Net Assets 90
Total Net Assets
Beginning of Period --
---
End of Period $ 90
=====
Analysis of Changes in Shares of
Beneficial Interest
Subscriptions to fund shares 10
---
Net increase in fund shares 10
Shares outstanding at beginning of period --
---
Shares outstanding at end of period 10
===
(a) The Fund commenced operations on February 14, 1997.
See accompanying notes to financial statements.
<PAGE> 13
SR&F GROWTH INVESTOR PORTFOLIO
BALANCE SHEET
March 31, 1997
(Amounts in thousands)
(Unaudited)
- ----------------------------------------
Assets
Investments, at market value $334,234
Dividends receivable 244
Cash 3
--------
Total Assets $334,481
========
- ----------------------------------------
Liabilities
Payable for investments purchased $ 3,984
Payable to investment adviser 178
Other liabilities 2
--------
Total Liabilities 4,164
- -----------------------------------------
Net Assets Applicable to Investor's Beneficial Interest $330,317
========
See accompanying notes to financial statements.
<PAGE> 14
SR&F GROWTH INVESTOR PORTFOLIO
STATEMENT OF OPERATIONS
For The Period Ended March 31, 1997 (a)
(Amounts in thousands)
(Unaudited)
- ------------------------------------------
Investment Income
Dividend income $ 361
Interest income 318
-------
Total Investment Income 679
-------
- ------------------------------------------
Expenses
Management fees 320
Accounting fees 5
Trustees' fees 4
Audit and legal fees 3
Custodian fees 1
Other 9
-------
Total Expenses 342
-------
Net Investment Income 337
-------
- ------------------------------------------
Realized and Unrealized Gains on Investments
Net realized gains on investments 472
Net change in unrealized appreciation or depreciation
of investments 9,345
-------
Net Gains on Investments 9,817
-------
-------
Net Increase in Net Assets Resulting from Operations $10,154
=======
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 15
SR&F GROWTH INVESTOR PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For The Period Ended March 31, 1997 (a)
(Amounts in thousands)
(Unaudited)
- --------------------------------------------
Operations
Net investment income $ 337
Net realized gains on investments 472
Net change in unrealized appreciation or
depreciation of investments 9,345
--------
Net Increase in Net Assets Resulting
from Operations 10,154
--------
- --------------------------------------------
Transactions in Investors' Beneficial Interest
Contributions 339,630
Withdrawals (19,467)
---------
Net Increase from Transactions
in Investors' Beneficial Interest 320,163
---------
Net Increase in Net Assets 330,317
- --------------------------------------------
Total Net Assets
Beginning of Period --
---------
End of Period $ 330,317
=========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 16
Notes to Financial Statements
Note 1. Organization of the SR&F Growth Investor Portfolio
The SR&F Growth Investor Portfolio (the "Portfolio") is a separate
series of the SR&F Base Trust, a Massachusetts common law trust
organized under an Agreement and Declaration of Trust dated August
23, 1993. The Declaration of Trust permits the Trustees to issue non-
transferable interests in the Portfolio. The Portfolio commenced
operations February 3, 1997. At commencement, the Stein Roe Young
Investor Fund contributed $331,020 in securities and other assets. At
February 14, 1997, Stein Roe Advisor Young Investor Fund contributed
cash of $100.
The Portfolio allocates net asset value, income and expenses based on
respective percentage ownership of each investor on a daily basis. At
March 31, 1997, Stein Roe Young Investor Fund and Stein Roe Advisor
Young Investor Fund owned 99.97 percent and .03 percent,
respectively.
Note 2. Significant Accounting Policies
The following are the significant accounting policies of the Stein
Roe Advisor Young Investor Fund (the "Fund"), a series of the Stein
Roe Advisor Trust (a Massachusetts business trust) and the Portfolio.
The policies are in conformity with generally accepted accounting
principles. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those
estimates.
Security Valuations
All securities are valued as of March 31, 1997. Securities traded on
national securities exchanges are valued at the last reported sales
price or, if there are no sales, at the latest bid quotation. Each
over-the-counter security for which the last sale price is available
from Nasdaq is valued at that price. All other over-the-counter
securities for which reliable quotations are available are valued at
the latest bid quotation. Other assets and securities of the
Portfolio are valued by a method that the Board of Trustees believes
represents a fair value.
Federal Income Taxes
No provision is made for federal income taxes since the Fund elects
to be taxed as a "regulated investment company" and make such
distributions to its shareholders as to be relieved of all federal
income taxes under provisions of current federal tax law.
<PAGE> 17
Notes (continued)
Distribution to Shareholders
Dividends from net investment income and capital gains, if any, are
distributed annually. Distributions in excess of tax basis earnings
are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between
the financial statements and tax earnings that result in temporary
overdistributions are classified as distributions in excess of net
investment income or net realized gains, and any permanent
differences are reclassified to paid-in capital.
Other Information
Realized gains or losses from sales of securities are determined on
the specific identified cost basis.
All amounts, except per-share amounts, are shown in thousands.
Note 3. Trustees' Fees and Transactions with Affiliates
The Portfolio pays a monthly management fee and the Fund pays a
monthly administrative fee to Stein Roe & Farnham Incorporated (the
"Adviser"), an indirect, majority-owned subsidiary of Liberty Mutual
Insurance Company, for its services as investment adviser and
manager.
The management fee for the Portfolio is computed at an annual rate of
.60 of 1 percent of average daily net assets up to $500 million, .55
of 1 percent of the next $500 million, and .50 of 1 percent
thereafter. The administrative fee for the Fund is computed at
annual rate of .20 of 1 percent of average daily net assets up to
$500 million, .15 of 1 percent of the next $500 million, and .125 of
1 percent thereafter.
The administrative agreement provides that the Adviser will reimburse
the Fund to the extent that its annual expenses, excluding certain
expenses, exceed the applicable limits prescribed by any state in
which the Fund's shares are offered for sale. In addition, the
Adviser has agreed to reimburse the Fund to the extent that its
expenses exceed 1.50 percent of annual average net assets. The
expense limitation expires January 31, 1998, subject to earlier
termination by the Adviser on 30 days' notice.
The transfer agent fees are paid to SteinRoe Services Inc. (SSI), an
indirect, majority-owned subsidiary of Liberty Mutual Insurance
Company. SSI has entered into an agreement with Colonial Investors
Service Center, Inc., an indirect, majority-owned subsidiary of
Liberty Mutual Insurance Company, to act as sub-transfer agent for
the Fund.
The Adviser also provides certain accounting services. For the period
ended March 31, 1997, the Fund and Portfolio incurred charges of $3
and $5, respectively.
Certain officers and trustees of the Trust are also officers of the
Adviser. The compensation of trustees not affiliated with the Adviser
<PAGE> 18
for the Portfolio for the period ended March 31, 1997, was $4. No
remuneration was paid to any other trustee or officer of the Trust.
Note 4. Short-Term Debt
To facilitate portfolio liquidity, the Fund and Portfolio maintain
borrowing arrangements under which it can borrow against portfolio
securities. Neither the Fund nor the Portfolio had borrowings during
the period ended March 31, 1997.
Note 5. Investment Transactions
The aggregate cost of purchases and proceeds from sales for the
Portfolio (other than short-term obligations) for the period ended
March 31, 1997, were $66,668 and $12,956, respectively.
At March 31, 1997, the cost of investments for federal income tax
purposes and for financial reporting were $327,797 and $324,889,
respectively. Unrealized appreciation and depreciation on a tax basis
were $28,491 and $22,054, respectively.
Note 6. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan (collectively the "Plans"). The Plans govern payments
for the distribution of the Fund's shares, ongoing shareholder
services and maintenance of shareholder accounts.
Annual fees under each Plan of up to .25 percent are computed
annually as a percentage of average daily net assets.
<PAGE> 19
Stein Roe Advisor Young Investor Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the
period), ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
---------
Net Asset Value, Beginning of Period $10.00
------
Income From Investment Operations
Net realized and unrealized losses on investments (1.00)
-----
Total from investment operations (1.00)
-----
Net Asset Value, End of Period $9.00
=====
Ratio of net expenses to average net assets (b) 1.51%*
Ratio of net investment income to average net
assets (c) -0.22%*
Total return -10.00%
Net assets, end of period $ 90
*Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been
no reimbursement of expenses by the investment adviser, this
ratio would have been 87.74 percent for the period ended March
31, 1997.
(c) Computed giving effect to the investment adviser's expense
limitation undertaking.
<PAGE> 20
SR&F GROWTH INVESTOR PORTFOLIO
FINANCIAL HIGHLIGHTS
Period
Ended
March 31,
1997 (a)
--------
- --------------------------------------
Ratios to Average Net Assets
Ratio of net expenses to average net assets ........0.64%*
Ratio of net investment income to average net assets...0.63%*
Portfolio turnover rate ..................................4%
Average commissions (per share)......................$0.0575
* Annualized
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 1
Stein Roe Mutual Funds
Semiannual Report
March 31, 1997
SteinRoe Advisor Growth Stock Fund
Stein Roe Advisor Special Fund
Stein Roe Advisor Special Venture Fund
<PAGE> 2
SR&F Growth Stock Portfolio
- ------------------------------------------------------------------------
Investments as of March, 31, 1997
(Dollar Amounts In Thousands)
(Unaudited)
Number Market
COMMON STOCKS (94.1%) of Shares Value
- ------------------------------------------------------------------------
BANKS & SAVINGS AND LOANS (4.3%)
Citicorp........................................ 110,000 $ 11,908
Fifth Third Bancorp............................. 50,000 3,875
Wells Fargo & Company........................... 15,000 4,262
--------
20,045
BUSINESS SERVICES (4.7%)
*Cascade Communications Corp. .................. 200,000 5,275
Electronic Data Systems Corporation............. 150,000 6,056
First Data Corporation.......................... 300,000 10,162
--------
21,493
COMPUTERS AND COMPUTER SOFTWARE (8.7%)
*Cisco Systems Inc. ............................ 150,000 7,219
Intel Corporation............................... 100,000 13,912
*Microsoft Corporation.......................... 150,000 13,753
*Sterling Commerce, Inc. ....................... 175,000 5,075
--------
39,959
CONSUMER-RELATED (10.3%)
*CUC International Inc. ........................ 450,000 10,125
Gillette Company................................ 200,000 14,525
*Kohl's Corporation............................. 220,000 9,322
The Procter & Gamble Co. ....................... 120,000 13,800
--------
47,772
DISTRIBUTION-RETAIL (2.3%)
The Home Depot, Inc. ........................... 200,000 10,700
ELECTRICAL EQUIPMENT (5.0%)
General Electric Company........................ 140,000 13,895
*Thermo Electron Corp. ......................... 300,000 9,263
--------
23,158
ENERGY (4.2%)
*Renaissance Energy Ltd. ....................... 300,000 8,546
Schlumberger Ltd. .............................. 100,000 10,725
--------
19,271
FINANCIAL SERVICES (5.0%)
Federal National Mortgage Association........... 370,000 13,366
MBNA Corp. ..................................... 350,000 9,756
--------
23,122
<PAGE> 3
SR&F Growth Stock Portfolio CONTINUED
- ------------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (5.4%)
The Coca-Cola Company........................... 270,000 15,086
Philip Morris Companies Inc..................... 85,000 9,701
--------
24,787
HEALTH CARE (4.7%)
Johnson & Johnson............................... 230,000 12,161
United Healthcare Corporation................... 200,000 9,525
--------
21,686
HOTELS (4.7%)
*HFS Incorporated............................... 250,000 14,719
*Sun International Hotels Ltd. ................. 200,000 7,000
--------
21,719
INSURANCE (5.7%)
American International Group, Inc. ............. 100,000 $ 11,737
Travelers Group, Inc. .......................... 300,000 14,362
--------
26,099
LEISURE & ENTERTAINMENT (2.1%)
The Walt Disney Company......................... 135,000 9,855
MEDICAL SUPPLIES (3.9%)
Baxter International Inc. ...................... 200,000 8,625
Medtronic, Inc. ................................ 150,000 9,337
--------
17,962
PHARMACEUTICAL (6.9%) ......................... 150,000 12,338
Merck and Company, Inc.......................... 150,000 12,638
SmithKline Beecham Plc ......................... 100,000 7,000
--------
31,976
RESTAURANTS (1.8%)
McDonald's Corporation. ........................ 175,000 8,269
RUBBER, PLASTIC & RELATED (2.2%)
Illinois Tool Works Inc......................... 125,000 10,203
TECHNOLOGY SERVICES (1.6%)
*Tellabs Inc. .................................. 200,000 7,225
<PAGE> 4
SR&F Growth Stock Portfolio CONTINUED
- ------------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
TELECOMMUNICATIONS (10.6%)
*Airtouch Communications........................ 200,000 4,600
LM Ericsson Telecommunications ADRs Class B..... 375,000 12,680
Lucent Technologies, Inc. ...................... 150,000 7,913
Motorola, Inc. ................................. 250,000 15,094
*WorldCom, Inc. ................................ 400,000 8,800
--------
49,087
--------
Total Common Stocks (Cost $272,158)............... 434,388
- ------------------------------------------------------------------------
Principal
Amount
- ------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS (6.9%)
COMMERCIAL PAPER (6.9%)
UBS Finance 6.750% 4/01/97...................... $ 20,335 20,335
Windmill Funding 5.400% 4/01/97................. 11,500 11,500
--------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized cost $31,835)........................ 31,835
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (101.0%)
(Cost $303,993)................................. 466,223
OTHER ASSETS, LESS LIABILITIES (-1.0%).......... (4,699)
--------
TOTAL NET ASSETS (100.0%)....................... $461,524
========
- ------------------------------------------------------------------------
*Non-income producing.
See accompanying notes to financial statements.
<PAGE> 5
SR&F Special Portfolio
- ------------------------------------------------------------------------
Investments as of March 31, 1997
(Dollar Amounts In Thousands)
(Unaudited)
Number Market
COMMON STOCKS (94.7%) of Shares Value
- ------------------------------------------------------------------------
ADVERTISING (2.1%)
The Interpublic Group of Companies Inc. ........ 425,000 $ 22,419
AUTOMOTIVE (1.7%)
Superior Industries International, Inc. ........ 801,000 18,123
BANKS (3.2%)
Golden West Financial Corporation............... 380,000 23,845
Washington Mutual, Inc. ........................ 200,000 9,662
--------
33,507
BROADCASTING (3.5%)
*Cox Communications............................. 500,000 10,313
Grupo Radio Centro, S.A. de C.V. ADSs........... 474,800 4,095
*Scandinavian Broadcasting System S.A. ......... 460,000 8,280
Westinghouse Electric Corp. .................... 800,000 14,200
--------
36,888
BUSINESS SERVICES (2.7%)
*Interim Services Inc. ......................... 475,000 18,466
Unitog Company.................................. 488,850 9,960
--------
28,426
CONSUMER-RELATED (1.7%)
Newell Company.................................. 535,000 17,923
DRUGS (2.5%)
Novartis AG..................................... 21,000 26,035
ELECTRICAL EQUIPMENT (3.1%)
*Littelfuse, Inc.
Common....................................... 475,000 21,969
Warrants..................................... 273,600 10,191
--------
32,160
ELECTRONICS & INSTRUMENTATION (5.9%)
AVX Corporation................................. 718,400 14,997
*Kent Electronics Corp. ........................ 1,000,000 23,000
Molex Inc. Class A.............................. 688,827 24,109
--------
62,106
<PAGE> 6
SR&F Special Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
ENERGY & RELATED SERVICES (6.5%)
Cross Timbers Oil Company........................1,494,150 23,346
*Renaissance Energy Ltd. ....................... 985,000 28,058
*Petroleum Geo-Services ASA ADRs................ 400,000 17,200
--------
68,604
FINANCIAL SERVICES (5.0%)
American Express Co. ........................... 385,000 23,052
Household International Inc. ................... 340,000 29,282
--------
52,334
HEALTH SERVICES AND EQUIPMENT (16.6%)
*Boston Scientific Corporation.................. 623,000 38,470
Cardinal Health Inc. ........................... 475,000 25,828
*Healthcare Compare Corp. ...................... 450,000 18,281
Invacare Corp. ................................. 923,550 21,703
*Lincare Holdings Inc. ......................... 550,000 22,688
HEALTH SERVICES AND EQUIPMENT (CONTINUED)
Medtronic, Inc. ................................ 94,400 $ 5,876
*Steris Corporation............................. 300,000 7,313
*Stryker Corporation............................ 749,600 18,646
*Sybron International Corporation............... 550,000 15,263
--------
174,068
INDUSTRIAL PRODUCTS (2.1%)
Carlisle Corp. ................................. 770,200 22,528
INSURANCE COMPANIES (8.1%)
National Mutual Asia Ltd. ......................21,450,000 22,422
The Progressive Corporation..................... 692,300 44,221
20th Century Industries......................... 1,042,700 18,247
--------
84,890
LEISURE & ENTERTAINMENT (4.8%)
Carnival Corp. Class A.......................... 500,000 18,500
Harley-Davidson, Inc. .......................... 937,000 31,741
--------
50,241
MACHINERY - GENERAL INDUSTRY (0.2%)
Robbins & Myers, Inc. .......................... 100,000 2,650
OFFICE PRODUCTS (1.6%)
Ikon Office Solutions Inc. ..................... 494,000 16,549
PROPERTY (1.0%)
Beacon Properties Corporation................... 326,500 10,815
<PAGE> 7
SR&F Special Portfolio CONTINUED
- -----------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
RETAIL (8.7%)
*Borders Group Inc. ............................ 1,720,000 32,465
*Consolidated Stores Corp. ..................... 475,000 16,744
*Proffitt's, Inc. .............................. 701,600 26,485
*Zale Corp. .................................... 837,200 15,384
--------
91,078
SCHOOLS (0.5%)
*Devry Inc. .................................... 238,400 5,245
SECURITY (1.5%)
Pittston Brink's Group.......................... 637,600 16,099
SPECIALTY CHEMICALS (6.8%)
*CIBA Specialty Chemicals AG.................... 21,000 1,735
*Lydall, Inc. .................................. 1,029,000 20,837
Minerals Technology Corp. Class A............... 624,200 20,755
OM Group, Inc. ................................. 1,009,500 28,392
--------
71,719
TEXTILES & APPAREL (2.3%)
Unifi, Inc. .................................... 778,475 23,743
TELECOMMUNICATIONS (2.6%)
*AirTouch Communications, Inc................... 874,500 20,113
*PriCellular Corporation........................ 875,000 7,219
--------
27,332
--------
TOTAL COMMON STOCKS
(Cost $673,008)................................. $995,482
- ------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS (5.3%)
COMMERCIAL PAPER (5.3%)
Price/Costco 7.100% 4/01/97..................... $ 50,000 $ 50,000
Source One Mortgage 7.100% 4/01/97.............. 5,110 5,110
UBS Finance 6.750% 4/01/97...................... 860 860
----------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized cost $55,970)........................ 55,970
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (100.0%)
(Cost $728,978)................................. 1,051,452
OTHER ASSETS, LESS LIABILITIES (0.0%)........... 344
----------
TOTAL NET ASSETS (100.0%)....................... $ 1,051,796
==========
- ------------------------------------------------------------------------
*Non-income producing.
See accompanying notes to financial statements.
<PAGE> 8
SR&F Special Venture Portfolio
- ------------------------------------------------------------------------
Investments as of March 31, 1997
(Dollar Amounts In Thousands)
(Unaudited)
Number Market
COMMON STOCKS (94.3%) of Shares Value
- ------------------------------------------------------------------------
AUTOMOTIVE ACCESSORIES (2.0%)
Superior Industries International, Inc. ........ 147,000 $ 3,326
BROADCAST/MEDIA (8.9%)
*Central European Media Enterprises Ltd......... 169,900 5,649
Hollinger International, Inc. .................. 290,000 2,646
*Metro Networks, Inc. .......................... 200,100 4,602
*United Video Satelite Group, Inc. ............. 115,000 1,926
-------
14,823
BUSINESS SERVICES (10.6%)
*Alternative Resources Corporation.............. 240,300 3,635
*Covance, Inc. ................................. 209,400 3,377
Danka Business Systems Plc ADRs................. 51,000 1,603
G & K Services, Inc. Class A.................... 141,000 4,230
*Interim Services, Inc. ........................ 121,100 4,708
--------
17,553
COMPUTERS AND COMPUTER SOFTWARE (1.9%)
*Dr. Solomon's Group Plc ADRs................... 105,600 2,323
*Storm Technology, Inc. ........................ 203,600 840
--------
3,163
COMPUTER SERVICES (5.8%)
*Fiserv, Inc. .................................. 142,400 5,304
*Microware Systems Corporation.................. 135,300 862
*Zebra Technologies Corporation................. 154,000 3,542
--------
9,708
CONSUMER ELECTRONICS/APPLIANCES (1.6%)
*Helen of Troy Ltd. ............................ 110,700 2,629
DRUGS (0.8%)
*Ligand Pharmaceuticals......................... 120,000 1,350
EDUCATIONAL SERVICES (1.9%)
*Firearms Training Systems, Inc. ............... 245,500 3,069
ELECTRICAL EQUIPMENT (7.5%)
AVX Corporation................................. 219,000 4,572
*Ballantyne of Omaha, Inc. ..................... 225,000 3,459
*Kent Electronics Corp. ........................ 142,200 3,271
*Littelfuse, Inc. Warrants...................... 30,000 1,118
--------
12,420
<PAGE> 9
SR&F Special Venture Portfolio CONTINUED
- ------------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
ELECTRONIC COMPONENTS (1.9%)
*Zytec Corporation.............................. 297,900 3,128
EQUIPMENT RENTAL & LEASING (2.1%)
*U.S. Rentals, Inc. ............................ 190,600 3,455
FABRICATED METAL PRODUCTS (1.0%)
Quanex Corporation.............................. 64,400 1,618
FOOD DISTRIBUTOR (1.8%)
Richfood Holdings, Inc. ........................ 160,000 $ 3,000
HEALTH SERVICES & EQUIPMENT (8.1%)
*Urologix, Inc. ................................ 134,800 2,292
Invacare Corp. ................................. 108,100 2,540
Stryker Corp. .................................. 90,100 2,241
*Uroquest Medical Corporation................... 170,000 1,169
*Xomed Surgical Products Inc. .................. 318,600 5,257
--------
13,499
INSURANCE (7.9%)
Meadowbrook Insurance Group, Inc. .............. 202,300 4,628
Mutual Risk Management Ltd. .................... 100,433 3,641
20th Century Industries......................... 278,100 4,867
--------
13,136
OIL/GAS (6.5%)
*Barrett Resources Corp. ....................... 112,500 3,361
*Renaissance Energy Ltd. ....................... 52,400 1,493
Cross Timbers Oil Company....................... 227,700 3,558
Devon Energy Corporation........................ 81,200 2,436
--------
10,848
OPTICAL SUPPLIES (2.1%)
*Sola International, Inc. ...................... 153,700 3,554
REAL ESTATE (10.6%)
Beacon Properties Corporation................... 132,200 4,379
*CB Commercial Real Estate Services Group, Inc. 191,000 4,536
Reckson Associates Realty Corporation........... 104,900 4,838
Spieker Properties, Inc. ....................... 100,000 3,900
--------
17,653
RETAIL (3.3%)
*Garden Botanika, Inc. ......................... 257,400 1,770
*Proffitt's Inc. ............................... 29,800 1,125
*Video Update, Inc. ............................ 520,200 2,633
--------
5,528
<PAGE> 10
SR&F Special Venture Portfolio CONTINUED
- ------------------------------------------------------------------------
Number Market
of Shares Value
- ------------------------------------------------------------------------
SPECIALTY CHEMICALS (2.9%)
ChemFirst Inc. ................................. 164,300 3,491
*CFC International, Inc. ....................... 113,200 1,330
--------
4,821
TELECOMMUNICATIONS (1.7%)
*Western Wireless Corporation................... 232,000 2,900
WHOLESALE DISTRIBUTION (3.4%)
*AmeriSource Distribution Corp. ................ 105,400 4,611
*Henry Schein, Inc. ............................ 35,000 1,015
--------
5,626
--------
TOTAL COMMON STOCKS (Cost $155,747)............. 156,807
- ------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS (9.1%)
COMMERCIAL PAPER (9.1%)
UBS Finance 6.750% 4/01/97...................... $ 7,625 $ 7,625
Windmill Funding 5.400% 4/01/97................. 7,500 7,500
--------
TOTAL SHORT-TERM OBLIGATIONS
(Amortized cost $15,125)........................ 15,125
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (103.4%)
(Cost $170,872)................................. 171,932
OTHER ASSETS, LESS LIABILITIES (-3.4%).......... (5,618)
--------
TOTAL NET ASSETS (100.0%)....................... $166,314
========
- ------------------------------------------------------------------------
* Non-income producing.
See accompanying notes to financial statements.
<PAGE> 11
Balance Sheets
March 31, 1997
(All amounts in thousands, except per-share amount)
(Unaudited)
Advisor Advisor
Growth Advisor Special
Stock Special Venture
Fund Fund Fund
-------- -------- --------
Assets
Investment in Portfolio, at value $ 88 $ 91 $ . 91
Cash and other assets 24 24 24
-------- -------- --------
Total Assets $ 112 $ 115 $ 11
======== ======== ========
Liabilities
Other liabilities $ 23 $ 23 $ 23
-------- -------- --------
Total Liabilities 23 23 23
-------- -------- --------
Capital
Paid-in capital 100 100 100
Net unrealized depreciation of investments (5) -- (1)
Accumulated undistributed net realized
losses on investments and foreign
currency transactions (6) (8) (7)
-------- -------- --------
Total Capital (Net Assets) 89 92 92
Total Liabilities and Capital $ 112 $ 115 $ 11
======== ======== ========
Shares Outstanding (Unlimited Number
Authorized) 10 10 10
======== ======== ========
Net Asset Value (Capital) Per Share $ 8.90 $ 9.20 $ 9.20
======== ======== ========
See notes to financial statements.
<PAGE 12>
Statements of Operations
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Advisor Advisor
Growth Advisor Special
Stock Special Venture
Fund Fund Fund
------- ------- -------
Expenses
Amortization of organization
expenses $ 4 $ 4 $ 4
Accounting fees 3 3 3
Audit and legal fees 2 2 2
Other 1 1 1
------- ------- -------
10 10 10
Reimbursement of expenses
by investment adviser (10) (10) (10)
------- ------- -------
Total Expenses -- -- --
------- ------- -------
Net Investment Income -- -- --
------- ------- -------
Realized and Unrealized Losses on Investments
Net realized losses on
investments allocated from
Portfolio (6) (6) (7)
Net realized losses on
foreign currency trans-
actions allocated from
Portfolio -- -- --
Net change in unrealized appreciation
or depreciation of investments (5) -- (1)
------- ------- -------
Net Losses on Investments (11) (8) (8)
------- ------- -------
Net Decrease in Net Assets Resulting
from Operations $ (11) $ (8) $ (8)
======== ======== =======
(a) The Fund commenced operations on February 14, 1997.
See notes to financial statements.
<PAGE 13>
Statements of Changes in Net Assets
For the Period Ended March 31, 1997 (a)
(All amounts in thousands)
(Unaudited)
Advisor Advisor
Growth Advisor Special
Stock Special Venture
Fund Fund Fund
------- ------- -------
Operations
Net investment income $ -- $ -- $ --
Net realized losses on investments
and foreign currency transactions (6) (8) (7)
Net change in unrealized appreciation
or depreciation of investments (5) -- (1)
------- ------- -------
Net Decrease in Net Assets
Resulting from Operations (11) (8) (8)
------- ------- -------
Share Transactions
Subscriptions to fund shares 100 100 100
------- ------- -------
Net Increase from Share Transactions 100 100 100
------- ------- -------
Net Increase in Net Assets 89 92 92
Total Net Assets
Beginning of Period -- -- --
------- ------- -------
End of Period $ 89 $ 92 $ 92
======= ======= =======
Analysis of Changes in Shares of Beneficial
Interest
Subscriptions to fund shares 10 10 10
------- ------- -------
Net increase in fund shares 10 10 10
Shares outstanding at beginning of period -- -- --
------- ------- -------
Shares outstanding at end of period 10 10 10
======= ======= =======
(a) The Fund commenced operations on February 14, 1997.
See accompanying notes to financial statements.
<PAGE 14>
SR&F Growth Stock Portfolio
- ------------------------------------------------------------------------
Balance Sheet
(All amounts in thousands)
(Unaudited)
MARCH 31,
1997
---------
ASSETS
Investments, at market value.................... $466,223
Dividends receivable............................ 467
Cash............................................ 2
----------
Total Assets................................. $466,692
==========
LIABILITIES
Payable for investments purchased............... $ 4,905
Payable to investment adviser................... 263
----------
Total Liabilities............................ 5,168
----------
Net Assets Applicable to Investors' Beneficial Interest $461,524
==========
See accompanying notes to financial statements.
<PAGE 15>
SR&F Growth Stock Portfolio
- ------------------------------------------------------------------------
Statement of Operations
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
INVESTMENT INCOME
Dividends....................................... $ 622
Interest........................................ 264
----------
Total Investment Income...................... 886
----------
EXPENSES
Management fees................................. 466
Accounting fees................................. 6
Trustees' fees.................................. 4
Audit and legal fees............................ 3
Custodian fees.................................. 2
Transfer agent fees............................. 1
Other........................................... 16
--------
Total Expenses............................... 498
----------
Net Investment Income........................... 388
----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains on investments .............. 6,988
Net change in unrealized appreciation or depreciation
of investments .............................. (49,574)
----------
Net Losses on Investments ................... (42,586)
----------
Net Decrease in Net Assets Resulting from Operations $(42,198)
========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 16
SR&F Growth Stock Portfolio
- ------------------------------------------------------------------------
Statement of Changes in Net Assets
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
OPERATIONS
Net investment income........................... $ 388
Net realized gains on investments............... 6,988
Net change in unrealized appreciation or
depreciation of investments (49,574)
----------
Net Decrease in Net Assets Resulting from Operations (42,198)
----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions................................... 524,541
Withdrawals. .................................... (20,819)
----------
Net Increase from Transactions in Investors'
Beneficial Interest 503,722
----------
Net Increase in Net Assets................... 461,524
TOTAL NET ASSETS
Beginning of Period............................. --
----------
End of Period................................... $461,524
==========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 17
SR&F Special Portfolio
- ------------------------------------------------------------------------
Balance Sheet
(All amounts in thousands)
(Unaudited)
MARCH 31,
1997
---------
ASSETS
Investments, at market value.................... $1,051,452
Receivable for investments sold and forward contracts 28,965
Dividends receivable............................ 248
Cash............................................ 4
Interest receivable............................. 1
------------
Total Assets................................. $1,080,670
============
LIABILITIES
Payable for investments sold and forward contracts $ 28,222
Payable to investment adviser................... 652
------------
Total Liabilities............................ 28,874
------------
Net Assets Applicable to Investors' Beneficial Interest $1,051,796
============
See accompanying notes to financial statements.
<PAGE> 18
SR&F Special Portfolio
- ------------------------------------------------------------------------
Statement of Operations
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
INVESTMENT INCOME
Dividends....................................... $ 1,271
Interest........................................ 574
----------
Total Investment Income...................... 1,845
----------
EXPENSES
Management fees................................. 1,153
Accounting fees................................. 9
Trustees' fees.................................. 7
Audit and legal fees............................ 3
Custodian fees.................................. 2
Transfer agent fees............................. 1
Other........................................... 49
----------
Total Expenses............................... 1,224
----------
Net Investment Income........................... 621
----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gains on investments .............. 10,687
Net change in unrealized appreciation or depreciation
of investments and foreign currency transactions (85,583)
----------
Net Losses on Investments and Foreign Currency Transactions (74,896)
----------
Net Decrease in Net Assets Resulting from Operations $(74,275)
========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE 19>
SR&F Special Portfolio
- ------------------------------------------------------------------------
Statement of Changes in Net Assets
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
OPERATIONS
Net investment income........................... $ 621
Net realized gains on investments and futures contracts 10,687
Net change in unrealized appreciation or depreciation
of investments and futures contracts............. (85,583)
------------
Net Decrease in Net Assets Resulting from Operations (74,275)
------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions................................... 1,167,598
Withdrawals..................................... (41,527)
------------
Net Increase from Transactions in Investors'
Beneficial Interest 1,126,071
------------
Net Increase in Net Assets................... 1,051,796
TOTAL NET ASSETS
Beginning of Period............................. --
------------
End of Period................................... $1,051,796
============
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 20
SR&F Special Venture Portfolio
- ------------------------------------------------------------------------
Balance Sheet
(All amounts in thousands)
(Unaudited)
MARCH 31,
1997
---------
ASSETS
Investments, at market value.................... $171,932
Dividends receivable............................ 158
Cash............................................ 3
----------
Total Assets................................. $172,093
==========
LIABILITIES
Payable for investments purchased............... $ 5,671
Payable to investment adviser................... 108
----------
Total Liabilities............................ 5,779
----------
Net Assets Applicable to Investors' Beneficial Interest $166,314
==========
See accompanying notes to financial statements.
<PAGE> 21
SR&F Special Venture Portfolio
- ------------------------------------------------------------------------
Statement of Operations
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
INVESTMENT INCOME
Dividends....................................... $ 271
Interest........................................ 142
---------
Total Investment Income...................... 413
---------
EXPENSES
Management fees................................. 200
Accounting fees................................. 4
Trustees' fees.................................. 3
Audit and legal fees............................ 2
Custodian fees.................................. 2
Transfer agent fees............................. 1
---------
Total Expenses............................... 212
---------
Net Investment Income........................... 201
---------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized losses on investments ............. (855)
Net change in unrealized appreciation or depreciation of
investments and foreign currency transactions (14,273)
---------
Net Losses on Investments.................... (15,128)
---------
Net Decrease in Net Assets Resulting from Operations $(14,927)
========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 22
SR&F Special Venture Portfolio
- ------------------------------------------------------------------------
Statement of Changes in Net Assets
(All amounts in thousands)
(Unaudited)
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
OPERATIONS
Net investment income........................... $ 201
Net realized gains on investments............... (855)
Net change in unrealized appreciation or depreciation
of investments............................... (14,273)
----------
Net Decrease in Net Assets Resulting from Operations (14,927)
----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions................................... 186,411
Withdrawals..................................... (5,170)
----------
Net Increase from Transactions in Investors'
Beneficial Interest 181,241
----------
Net Increase in Net Assets................... 166,314
TOTAL NET ASSETS
Beginning of Period............................. --
----------
End of Period................................... $166,314
==========
(a) The Portfolio commenced operations on February 3, 1997.
See accompanying notes to financial statements.
<PAGE> 23
Notes to Financial Statements
Note 1. Organization of the Portfolios
SR&F Growth Stock Portfolio, SR&F Special Portfolio and SR&F Special
Venture Portfolio (the "Portfolios") are separate series of the SR&F Base
Trust, a Massachusetts common law trust organized under an Agreement and
Declaration of Trust dated August 23, 1993. The Declaration of Trust
permits the Trustees to issue non-transferable interests in the
Portfolios. The Portfolios commenced operations February 3, 1997. At
commencement, Stein Roe Growth Stock Fund, Special Fund and Special
Venture Fund contributed $474,071, $1,096,221 and $160,983 in securities
and other assets, respectively, to their respective portfolios. At
February 14, 1997, Stein Roe Advisor Growth Stock Fund, Advisor Special
Fund and Advisor Special Venture Fund each contributed cash of $100 to
their respective Portfolios.
The Portfolios allocate net asset value, income and expenses based on
respective percentage ownership of each investor on a daily basis. At
March 31, 1997, Growth Stock Fund and Advisor Growth Stock Fund owned
99.98 percent and .02 percent,respectively, of the SR&F Growth Stock
Portfolio, Special Fund and Advisor Special Fund owned 99.99 percent and
.01 percent, respectively, of SR&F Special Portfolio, and Special Venture
Fund and Advisor Special Venture Fund owned 99.94 percent and .06
percent, respectively, of SR&F Special Venture Portfolio.
Note 2. Significant Accounting Policies
The following are the significant accounting policies of Stein Roe
Advisor Growth Stock Fund, Stein Roe Advisor Special Fund, and Stein Roe
Advisor Special Venture Fund (the "Funds"), each a series of the Stein
Roe Investment Trust (a Massachusetts business trust) and the SR&F Growth
Stock Portfolio, SR&F Special Portfolio and SR&F Special Venture
Portfolio (the "Portfolios"), each a series of the SR&F Base Trust (a
Massachusetts common law trust). The policies are in conformity with
generally accepted accounting principles. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those
estimates.
Security Valuations
All securities are valued as of March 31, 1997. Securities are valued,
depending on the security involved, at the last reported sales price,
last bid or asked price, or the mean between last bid and asked price as
of the close of the appropriate exchange or other designated time. A
security which is listed or traded on more than one exchange is valued at
the quotation on the exchange determined to be the primary exchange for
<PAGE> 24
Notes Continued
such security. Other assets and securities of the Funds and Portfolio are
valued by a method that the Board of Trustees believes represents a fair
value.
Federal Income Taxes
No provision is made for federal income taxes since each Fund elects to
be taxed as a "regulated investment company" and makes such distributions
to its shareholders as to be relieved of all federal income taxes under
provisions of current federal tax law.
The Funds intend to utilize provisions of the federal income tax laws,
which allow them to carry a realized capital loss forward up to eight
years following the year of the loss, and offset such losses against any
future realized gains.
Distributions to Shareholders
Dividends from net investment income and capital gains, if any, are
distributed annually. Distributions in excess of tax basis earnings are
reported in the financial statements as a return of capital. Differences
in the recognition or classification of income between the financial
statements and tax earnings that result in temporary overdistributions
are classified as distributions in excess of net investment income or net
realized gains, and any permanent differences are reclassified to paid-in
capital.
Other Information
The books and records of the Funds and Portfolios are maintained in U.S.
dollars. Dividend income is recognized on the ex-dividend date and
interest income is recognized on an accrual basis.
Realized gains or losses from sales of securities are determined on the
specific identified cost basis.
All amounts, except per-share amounts, are shown in thousands.
Note 3. Trustees' Fees and Transactions with Affiliates
The Funds and Portfolios pay monthly management and administrative fees
to Stein Roe & Farnham Incorporated (the "Adviser"), an indirect,
majority-owned subsidiary of Liberty Mutual Insurance Company, for its
services as investment adviser and manager.
The management fee for SR&F Growth Stock Portfolio is computed at an
annual rate of .60 of 1 percent of average
<PAGE> 25
Notes Continued
daily net assets up to $500 million, .55 of 1 percent of the next $500
million, and .50 of 1 percent thereafter. The management fee for SR&F
Special Portfolio is computed at an annual rate of .75 of 1 percent of
average daily net assets up to $500 million, .70 of 1 percent of the next
$500 million, .65 of 1 percent of the next $500 million, and .60 of 1
percent thereafter. The management fee for SR&F Special Venture
Portfolio is .90 of 1 percent of average daily net assets. The
administrative fees for Advisor Growth Stock Fund, and Advisor Special
Fund are computed at an annual rate of .15 of 1 percent of average daily
net assets up to $500 million, .125 of 1 percent of the next $500
million, and .10 of 1 percent thereafter. The administrative fees for
Advisor Special Venture Fund are .15 of 1 percent of average daily net
assets.
The administrative agreement provides that the Adviser will reimburse
each Fund to the extent that annual expenses, excluding certain expenses,
exceed the applicable limits prescribed by any state in which the Fund's
shares are offered for sale. The Adviser currently limits expenses for
Advisor Growth Stock Fund, Advisor Special Fund and Advisor Special
Venture Fund to 1.35 percent, 1.45 percent, and 1.50 percent of average
daily net assets, respectively.
The transfer agent fees are paid to SteinRoe Services Inc. (SSI), an
indirect, majority-owned subsidiary of Liberty Mutual Insurance Company.
SSI has entered into an agreement with Colonial Investors Service Center,
Inc., an indirect, majority-owned subsidiary of Liberty Mutual Insurance
Company, to act as sub-transfer agent for the Funds.
The Adviser also provides certain fund accounting services. For the
period ended March 31,1997, Advisor Growth Stock Fund, Advisor Special
Fund, Advisor Special Venture Fund, SR&F Growth Stock Portfolio, SR&F
Special Portfolio and SR&F Special Venture Portfolio incurred charges of
$3, $3, $3, $6 , $9 and $4, respectively.
Certain officers and trustees of the Trusts are also officers of the
Adviser. The compensation of trustees not affiliated with the Adviser for
SR&F Growth Stock Portfolio, SR&F Special Portfolio and SR&F Special
Venture Portfolio for the period ended March 31, 1997, was $4, $7 and $3,
respectively. No remuneration was paid to any other trustee or officer of
the Trusts.
Note 4. Short-Term Debt
To facilitate portfolio liquidity, the Funds and Portfolios maintain
borrowing arrangements under which they can borrow against portfolio
securities. Neither the Funds nor the Portfolios had borrowings during
the period ended March 31, 1997.
Note 5. Investment Transactions
The aggregate cost of purchases and proceeds from sales other than short-
term obligations for the period ended March 31, 1997, were:
Portfolio Purchases Sales
SR&F Growth Stock Portfolio $35,975 $33,072
SR&F Special Portfolio 35,536 47,534
SR&F Special Venture Portfolio 40,999 23,685
<PAGE> 26
Notes Continued
At March 31, 1997, unrealized appreciation and depreciation on a tax
basis and the cost of investments for federal income tax purposes and for
financial reporting purposes were as follows:
Cost of Investments
Federal
Net Financial Income
Portfolio Appreciation Depreciation Appreciation Reporting Tax
- -------------- ------------ ------------ ------------ --------- -----
SR&F Growth
Stock Portfolio $168,570 $6,340 $162,230 $303,993 $303,993
SR&F Special
Portfolio 338,826 17,869 320,957 728,978 730,495
SR&F Special
Venture
Portfolio 13,246 12,200 1,046 170,872 170,886
Note 6. Distribution and Service Plans
The Fund and its shareholders have adopted a distribution plan pursuant
to Rule 12b-1 under the Investment Company Act of 1940 and a service plan
(collectively the "Plans"). The Plans govern payments for the
distribution of the Fund's shares, ongoing shareholder services and
maintenance of shareholder accounts.
Annual fees under the Plans of up to .25 percent are computed annually as
a percentage of average daily net assets.
<PAGE> 27
Stein Roe Advisor Growth Stock Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the period),
ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
---------
Net Asset Value, Beginning of Period $10.00
Income From Investment Operations
Net realized and unrealized losses on investments (1.11)
---------
Total from investment operations (1.11)
---------
Net Asset Value, End of Period $8.89
=========
Ratio of net expenses to average net assets (b) 1.35%*
Ratio of net investment income to average net assets (c) -0.21%*
Total return -11.00%
Net assets, end of period $ 89
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio would
have been 88.51 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 28
Stein Roe Advisor Special Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the period),
ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
---------
Net Asset Value, Beginning of Period $10.00
---------
Income From Investment Operations
Net realized and unrealized losses on investments (0.80)
---------
Total from investment operations (0.80)
---------
Net Asset Value, End of Period $9.20
=========
Ratio of net expenses to average net assets (b) 1.45%*
Ratio of net investment income to average net assets -0.34%*
Total return -8.00%
Net assets, end of period $ 92
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio would
have been 87.18 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 29
Stein Roe Advisor Special Venture Fund
Financial Highlights
Selected per-share data (for a share outstanding throughout the period),
ratios and supplemental data.
Period
Ended
March 31,
1997 (a)
---------
Net Asset Value, Beginning of Period $10.00
---------
Income From Investment Operations
Net realized and unrealized losses on investments (0.80)
---------
Total from investment operations (0.80)
---------
Net Asset Value, End of Period $9.20
=========
Ratio of net expenses to average net assets (b) 1.50%*
Ratio of net investment income to average net assets -0.12%*
Total return -8.00%
Net assets, end of period $ 92
* Annualized
(a) The Fund commenced operations on February 14, 1997.
(b) If the Fund had paid all of its expenses and there had been no
reimbursement of expenses by the investment adviser, this ratio would
have been 87.15 percent for the period ended March 31, 1997.
(c) Computed giving effect to the investment adviser's expense limitation
undertaking.
<PAGE> 30
SR&F Growth Stock Portfolio
Financial Highlights
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets 0.50%*
Ratio of net expenses to average net assets..... 0.64%*
Portfolio turnover rate......................... 7%
Average commissions (per share)................. $ 0.0588
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
<PAGE> 31
SR&F Special Portfolio
Financial Highlights
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets 0.36%*
Ratio of net expenses to average net assets..... 0.71%*
Portfolio turnover rate......................... 3%
Average commissions (per share)................. $ 0.0381
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
<PAGE> 32
SR&F Special Venture Portfolio
Financial Highlights
PERIOD
ENDED
MARCH 31,
1997 (A)
---------
RATIOS TO AVERAGE NET ASSETS
Ratio of net investment income to average net assets 0.75%*
Ratio of net expenses to average net assets..... 0.79%*
Portfolio turnover rate......................... 15%
Average commissions (per share)................. $ 0.0374
*Annualized
(a) The Portfolio commenced operations on February 3, 1997.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> STEIN ROE ADVISOR GROWTH & INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 93
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 117
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (6)
<NET-ASSETS> 94
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (6)
<NET-CHANGE-FROM-OPS> (6)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 94
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 98
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> (.65)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.37
<EXPENSE-RATIO> 86.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
[ARTICLE] 6
[SERIES]
[NUMBER] 2
[NAME] STEIN ROE ADVISOR INTERNATIONAL FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] SEP-30-1997
[PERIOD-START] FEB-14-1997
[PERIOD-END] MAR-31-1997
[INVESTMENTS-AT-COST] 0
[INVESTMENTS-AT-VALUE] 99
[RECEIVABLES] 0
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 24
[TOTAL-ASSETS] 123
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 23
[TOTAL-LIABILITIES] 23
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 100
[SHARES-COMMON-STOCK] 10
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (2)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 2
[NET-ASSETS] 100
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 0
[NET-INVESTMENT-INCOME] 0
[REALIZED-GAINS-CURRENT] (2)
[APPREC-INCREASE-CURRENT] 2
[NET-CHANGE-FROM-OPS] 0
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 100
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 100
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 0
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 0
[AVERAGE-NET-ASSETS] 99
[PER-SHARE-NAV-BEGIN] 10.00
[PER-SHARE-NII] .01
[PER-SHARE-GAIN-APPREC] (.04)
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 9.97
[EXPENSE-RATIO] 65.57
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> STEIN ROE ADVISOR YOUNG INVESTOR FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 89
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 113
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (7)
<NET-ASSETS> 90
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> (3)
<APPREC-INCREASE-CURRENT> (7)
<NET-CHANGE-FROM-OPS> (10)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 90
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 97
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> (1.00)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.00
<EXPENSE-RATIO> 109.87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> STEIN ROE ADVISOR SPECIAL VENTURE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 91
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 115
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1)
<NET-ASSETS> 92
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> (7)
<APPREC-INCREASE-CURRENT> (1)
<NET-CHANGE-FROM-OPS> (8)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 92
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 97
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> (.80)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.20
<EXPENSE-RATIO> 87.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> STEIN ROE ADVISOR BALANCED FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 95
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 119
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 96
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> (4)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> (4)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 96
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 97
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> (.46)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.58
<EXPENSE-RATIO> 93.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> STEIN ROE ADVISOR GROWTH STOCK FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 88
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 112
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5)
<NET-ASSETS> 89
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> (6)
<APPREC-INCREASE-CURRENT> (5)
<NET-CHANGE-FROM-OPS> (11)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 89
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 96
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> (1.11)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.90
<EXPENSE-RATIO> 88.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> STEIN ROE ADVISOR SPECIAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> FEB-14-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 91
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 24
<TOTAL-ASSETS> 115
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23
<TOTAL-LIABILITIES> 23
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100
<SHARES-COMMON-STOCK> 10
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (8)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 92
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> (8)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> (8)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 92
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 97
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> (.80)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.20
<EXPENSE-RATIO> 87.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
