<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> 21
Trustees
Timothy K. Armour
President, Mutual Fund Division and Director, Stein Roe & Farnham
Incorporated
Kenneth L. Block
Chairman Emeritus, A.T. Kearney, Inc.
William W. Boyd
Chairman and Director, Sterling Plumbing Group Inc.
Lindsay Cook
Senior Vice President, Liberty Financial Companies, Inc.
Douglas A. Hacker
Senior Vice President and Chief Financial Officer, United Airlines
Janet Langford Kelly
Senior Vice President, Secretary and General Counsel, Sara Lee
Corporation
Francis W. Morley
Chairman, Employer Plan Administrators and Consultants Co.
Charles R. Nelson
Van Voorhis Professor of Political Economy, University of
Washington
Thomas C. Theobald
Managing Director, William Blair Capital Partners
Officers
Timothy K. Armour, President
Jilaine H. Bauer, Executive Vice President, Secretary
Thomas W. Butch, Executive Vice President
Hans P. Ziegler, Executive Vice President
Gary A. Anetsberger, Senior Vice President, Chief Financial Officer
Bruno Bertocci, Vice President
David P. Brady, 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
Arthur J. McQueen, Vice President
Nicolette D. Parrish, Vice President, Assistant Secretary
Cynthia A. Prah, Vice President
Richard B. Peterson, Vice President
Gloria J. Santella, Vice President
Thomas P. Sorbo, Vice President
Heidi J. Walter, Vice President
Stacy H. Winick, Vice President
Sharon R. Robertson, Controller
Judith E. Perrie, Treasurer
Margaret O. Zwick, Assistant Treasurer
Janet B. Rysz, Assistant Secretary
Agents and Advisers
Stein Roe & Farnham Incorporated
Investment Adviser
State Street Bank and Trust Company
Custodian
SteinRoe Services, Inc.
Transfer Agent
Bell, Boyd & Lloyd
Legal Counsel to the Trust
Arthur Andersen LLP
Independent Public Accountants
