<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.
<PAGE> 33
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 Directorr, William Blair Capital Partners
Officers
Timothy K. Armour, President
Jilaine H. Bauer, Executive Vice President, Secretary
Hans P. Ziegler, Executive Vice President
Gary A. Anetsberger, Senior Vice President, Chief Financial Officer
Bruno Bertocci, Vice President
David P. Brady, Vice President
Thomas W. Butch, 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
