BULLFINCH FUND, INC.
2 LANTERN LANE
HONEOYE FALLS, NEW YORK 14472
(716) 624-1758
1-888-BULLFINCH
(1-888-285-5346)
Annual Report
June 30, 2000
<PAGE>
August 25, 2000
Dear Fellow Shareholders:
We are very pleased to present the June 2000 Annual Report of the Bullfinch
Fund, Inc. This report contains the statements for both the Unrestricted Series
and the Western New York Series.
We are happy to report we continue to see very good asset growth in the
Unrestricted Series. The net assets of Unrestricted Series grew nearly 20%
since last year's Annual Report. We look forward to continued growth in assets
in both Series. At this point in the life of the Series, asset growth is most
important as it allows the expense ratio of the fund to continue to decline.
After shifting out of some of our technology stocks in late 1999, we put some
of that cash to work in the first half of calendar 2000, taking advantage of
the collapse in the broader markets during that same time period. After first
collecting some attractive bargains in the interest rate sector, we turned
back towards the beaten down technology sector, focusing primarily on the
telecommunications industry.
We shareholders have benefited from the market turmoil. Value stocks in
particular seem to do well in times of uncertainty like we are experiencing
today. Indeed, as you can see from our fiscal year 2000 investment performance,
both the Unrestricted Series (+9.49%) and the Western New York Series (+6.05%)
easily outperformed our benchmark index, the Value Line Arithmetic Index
(+1.45%). Yet we have more good news. A national mutual fund rating service
(MAXfunds.com) just gave both Series its highest rating.
We wish to thank our shareholders for expressing their confidence in us and
wish them continued good fortune in the coming year.
Best Regards,
Bullfinch Fund, Inc.
Christopher Carosa
President
<PAGE>
UNRESTRICTED SERIES
(A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF
JUNE 30, 2000
TOGETHER WITH
INDEPENDENT AUDITORS' REPORT
BONADIO & CO, LLP
Certified Public Accountants
171 Sully's Trail
Pittsford, NY 14534
716-381-1000
Fax 716-381-3131
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors of Bullfinch Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of the
Unrestricted Series (a series within Bullfinch Fund, Inc.), including the
schedule of investments in securities, as of June 30, 2000, and the
related statements of operations, changes in net assets and the financial
highlights and related ratios/supplemental data for the
years ended June 30, 2000, 1999 and 1998. These financial statements and
financial highlights and related ratios/supplemental data are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these statements and the financial highlights and related
ratios/supplemental data based on our audits.
We conducted our audits in accordance with generally accepted auditing stand-
ards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights and related ratios/supplemental data are free of material mis-
statement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures includ-
ed confirmation of securities owned as of June 30,2000, by correspondence
with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights and related
ratios/supplemental data referred to above present
fairly, in all material respects, the financial position of the Unrestricted
Series (a series within Bullfinch Fund, Inc.) as of June 30, 2000, and
the results of its operations, the change in its net assets and the financial
highlights and related ratios/supplemental data for the
years ended June 30,2000, 1999 and 1998 in conformity with generally accepted
accounting principles.
BONADIO & CO., LLP
Pittsford, New York
August 4, 2000
<PAGE>
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS
Investments in securities, at fair value,
identified cost $1,019,460 $ 1,061,710
Cash 27,310
Accrued interest and dividends 2,459
Prepaid expenses 1,370
Due from Investment Adviser 258
Organization expenses, net of accumulated
amortization of $2,420 918
--------
Total assets 1,094,025
========
LIABILITIES
Accounts payable 6,372
--------
NET ASSETS
Net assets (equivalent to $11.32
based on 96,072.588 shares of stock outstanding) $ 1,087,653
=========
COMPOSITION OF NET ASSETS
Shares of common stock $ 1,070,555
Accumulated net investment loss (25,152)
Net unrealized appreciation
of investments 42,250
---------
Net assets at June 30, 2000 $ 1,087,653
==========
The accompanying notes are an integral part of these statements.
-2-
<PAGE>
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 2000
Historical
Common Stocks - 100% Shares Cost Value
Computer software - 7.7%
Network Associates, Inc. 1,500 46,921 30,562
Synopsis, Inc. 800 33,580 27,650
Veramark Tech, Inc. 6,200 40,091 23,638
--------- --------
120,592 81,850
Utilities - 6.5%
Empire District Electric Co. 1,250 21,665 27,578
Hawaiian Electric 1,250 41,040 41,016
--------- --------
62,705 68,594
Medical Products and Supplies - 5.7%
Dentsply Intl, Inc. 1,350 30,400 41,597
Mentor Corporation 700 17,963 19,031
--------- --------
48,363 60,628
Pharmaceuticals - 3.6%
Covance,Inc. 4,300 46,242 37,894
Retail - General - 6.5%
Dollar General Corporation 1,952 26,304 38,064
Family Dollar Stores, Inc. 1,600 25,748 31,300
--------- --------
52,052 69,364
Retail - Specialty - 3.1%
Lowes Companies, Inc. 800 33,330 32,850
Cosmetics - 0.4%
Helen of Troy, Ltd. 750 7,272 4,195
Electrical Equipment - 3.2%
Baldor Electric Company 1,850 36,962 34,456
Shoes and Leather - 2.4%
Wolverine World Wide 2,600 44,582 25,675
Banking and Finance - 8.9%
Fiserv, Inc. 1,700 37,319 73,525
National City Corp. 1,200 28,461 20,475
-------- --------
65,780 94,000
Tobacco Products - 4.6%
Phillip Morris 1,850 40,459 49,141
Instruments - 2.6%
Checkpoint Systems, Inc. 3,700 32,717 27,750
Leisure and Recreational - 11.6%
Hasbro, Inc. 1,400 25,726 21,087
International Game Technology 1,600 29,749 42,400
Mattel, Inc. 4,550 52,852 60,003
-------- --------
108,327 123,490
Computers - Hardware - 8.0%
Compaq Computer Corp. 1,200 30,036 30,675
Dell Computer Corp. 1,100 39,625 54,244
-------- --------
69,661 84,919
Electronics Components - 2.7%
Park Electrochemical Corp. 800 20,771 28,850
Real Estate and Related - 1.7%
First American Financial 1,250 21,869 17,891
Commercial Services - 1.5%
Paychex, Inc. 375 6,050 15,750
Office Equipment - 8.1%
Diebold, Inc. 1,650 41,068 45,994
Xerox Corporation 1,900 51,149 39,425
-------- --------
92,217 85,419
Telecommunications Equipment - 2.5%
Motorola, Inc. 900 26,917 26,156
Telecommunications Services - 7.7%
AT&T Corporation 1,000 33,030 31,625
Worldcom, Inc. 1,100 41,421 50,463
-------- --------
74,451 82,088
Foods and Beverages - 0.8%
Pepsico Incorporated 200 6,975 8,887
Entertainment - 0.2%
Walt Disney Holding Co. 48 1,166 1,863
--------- ---------
TOTAL COMMON STOCKS $ 1,019,460 $ 1,061,710
========= =========
The accompanying notes are an integral part of these statements.
-3-
<PAGE>
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2000, 1999 AND 1998
2000 1999 1998
INVESTMENT INCOME:
Dividends $ 22,196 $ 10,720 $ 8,559
Interest - 2,990 5,301
-------- --------- ---------
22,196 13,710 13,860
EXPENSES:
Management Fees 12,199 8,102 6,599
Reimbursement of Management Fees (258) (1,479) (3,303)
Legal and Professional 4,000 3,750 3,000
Directors' Fee 600 600 900
Amortization 581 581 814
Fidelity Bond 491 520 689
Taxes 350 502 637
Registration Fees 960 1,246 676
Bank Service Charges 535 917 404
Dues and Subscriptions 88 144 110
--------------------------------
19,546 14,883 10,526
--------------------------------
Investment income(loss) - net 2,650 (1,173) 3,334
--------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain (loss) from
securities transactions 95,873 (21,740) 18
Unrealized appreciation (depreciation)
during the period (10,427) 48,330 (3,930)
-------------------------------
Net gain (loss) on investments 85,446 26,590 (3,912)
--------------------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 88,096 $25,417 $ (578)
================================
The accompanying notes are an integral part of these statements.
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2000,1999 AND 1998
2000 1999 1998
INCREASE IN NET ASSETS FROM OPERATIONS:
Investment income (loss) - net $ 2,650 $ (1,173) $ 3,334
Net realized gains (loss) from
securities transactions 95,873 (21,740) 18
Net change in unrealized appreciation
of investments (10,427) 48,330 (3,930)
-------------------------------
Increase (decrease) in net assets
from operations 88,096 25,417 (578)
CAPITAL SHARE TRANSACTIONS:
Sales (11,736.574; 33,858.650; and
73,972.543 shares) 140,586 363,607 832,796
Redemptions (4,763.031; 21,814.254;
and 17,275.449 shares) (55,077) (225,795) (202,999)
-------------------------------
Total capital share transactions 85,509 137,812 629,797
-------------------------------
Increase in net assets 173,605 163,229 629,219
NET ASSETS:
Beginning of period 914,048 750,819 121,600
-------------------------------
End of period $1,087,653 $ 914,048 $ 750,819
===============================
The accompanying notes are an integral part of these statements.
-4-
<PAGE>
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(1) The Organization
The Unrestricted Series (the "Series") is a series of the Bullfinch
Fund, Inc. (the "Fund"), which was organized as a corporation in Mary-
land on January 29, 1997, and commenced operations on February 1, 1997.
The Fund had no operations prior to February 1, 1997 other than matters
relating to its organization and registration as an open-end, non-divers-
ified management investment company under the Investment Company Act of
1940, and its registration of securities under the Securities Act of
1933. On February 1, 1997, the Series sold 11,247.184 shares of common
stock ("initial shares") to its initial, joint tenant investors.
The investment objective of the Series is to seek conservative long-term
growth in capital. The Adviser seeks to achieve this objective by using
an asset mix consisting primarily of exchange listed securities and over-
the-counter common stocks as well as U.S. Government securities maturing
within five years.
(2) Summary of Significant Accounting Policies
Cash -
Cash consists of amounts deposited in money market accounts and is not
federally insured. The Series has not experienced any losses on such
amounts and believes it is not exposed to any significant credit risk on
cash.
Security Valuation -
The Series records its investments at fair value.
Securities traded on national securities exchanges or the NASDAQ National
Market System are valued daily at the closing prices of the securities on
those exchanges and securities traded on over-the-counter markets are
valued daily at the closing bid prices. Short-term and money market sec-
urities are valued at amortized cost which approximates market value.
Federal Income Taxes -
For federal income tax purposes, the Series expects to continue to
qualify as a regulated investment company under the provisions of the
Internal Revenue Code by distributing substantially all of its taxable
net income (both ordinary and capital gains) to its shareholders and
complying with other requirements for regulated investment companies.
Therefore, no provision for income taxes is required.
-5-
<PAGE>
Organization Expenses -
Organization expenses are being amortized over a 60-month period.
The Series' initial shareholders have agreed that if any of the initial
shares are redeemed during the first 60 months of the Series' operations
by any holder thereof, the proceeds of the redemption will be reduced by
the pro rata share of the unamortized organization expenses as of the date
of the redemption. The pro rata share by which the redemption proceeds
shall be reduced shall be derived by dividing the number of original
shares redeemed by the total number of original shares outstanding at the
time of the redemption.
Distributions to Shareholders -
The Series has distributed its net investment income and net
realized capital gains to its shareholders on June 28, 2000, December 29,
1998, and June 30,1998 in the form of stock dividends equal
to 8,561.674, 172.798,and 297.096 shares of stock.
Other -
The Series follows industry practice and records security transactions on
the trade date. The specific identification method is used for determin-
ing gains or losses for financial statement and income tax purposes.
Dividend income is recorded on the ex-dividend date and interest income
is recorded on the accrual basis.
Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
(3) Investments
For the year ended June 30, 2000, the Series purchased $745,095 of
common stock. During the same period, the Series sold $462,049 of
common stock.
For the year ended June 30, 1999, the Series purchased $317,227 of
common stock. During the same period, the Series sold $100,392 of
U.S. Government obligations and $195,720 of common stock.
For the year ended June 30, 1998, the Series purchased $50,455 of U.S.
Government obligations and $485,826 of common stock. During the same per-
iod, the Series sold $29 of common stock.
At June 30, 2000, the gross unrealized appreciation for all securities
totaled $149,794 and the gross unrealized depreciation for all securities
totaled $107,544, or a net unrealized appreciation of $42,250. The aggre-
gate cost of securities for federal income tax purposes at June 30,
2000 was $1,019,460.
At June 30, 1999, the gross unrealized appreciation for all securities
totaled $134,100 and the gross unrealized depreciation for all securities
totaled $81,423, or a net unrealized appreciation of $52,677. The aggre-
gate cost of securities for federal income tax purposes at June 30,
1999 was $640,542.
At June 30, 1998, the gross unrealized appreciation for all securities
totaled $62,102 and the gross unrealized depreciation for all securities
totaled $57,755, or a net unrealized appreciation of $4,347. The aggre-
gate cost of securities for federal income tax purposes at June 30,
1998 was $641,167.
(4) Investment Advisory Agreement
Carosa, Stanton & DePaolo Asset Management, LLC serves as investment
advisor to the Fund pursuant to an investment advisory agreement which
was approved by the Fund's board of directors. Carosa, Stanton & DePaolo
Asset Management, LLC is a Registered Investment Adviser under the
Investment Advisers Act of 1940. The Investment advisory agreement
provides that Carosa, Stanton & DePaolo Asset Management, LLC,subject to
the supervision and approval of the Fund's board of directors, is respons-
ible for the day-to-day management of the Series' portfolio which
includes selecting the investments and handling its business affairs.
-6-
<PAGE>
As compensation for its services to the Fund, the investment advisor re-
ceives monthly compensation at an annual rate of 1.25% on the first $1
million of daily average net assets and 1% on that portion of the daily
average net assets in excess of $1 million. These fees will be reduced
by any sub-transfer agent fees incurred by the Fund.
Carosa, Stanton & DePaolo Asset Management, LLC has agreed to forego
sufficient investment advisory fees to limit total expenses of the Fund
to 2% of the first $10 million in average assets and 1.5% of the next
$20 million in average assets.
(5) Capital Share Transactions
The Fund has authorized 10,000,000 shares of common stock at $0.01 par
value per share. Each share has equal dividend, distribution and liquid-
ation rights. Transactions in capital stock of the Series were as follows:
Shares Amount
Balance at 7/1/1997 11,325.987 $ 112,471
---------- -----------
Shares sold during 1998 73,972.543 832,796
Shares redeemed during 1998 (17,275.449) (202,999)
Shares issued in 6/30/98 stock dividend 297.096 -
---------- -----------
56,994.190 629,797
---------- -----------
Shares sold during 1999 33,858.650 363,607
Shares redeemed during 1999 (21,814.254) (225,795)
Shares issued in 12/29/98 stock dividend 172.798 -
---------- -----------
12,217.194 137,812
---------- -----------
Shares sold during 2000 11,736.574 140,586
Shares redeemed during 2000 ( 4,763.031) ( 55,077)
Shares issued in 6/28/00 stock dividend 8,561.674 -
---------- -----------
15,535.217 85,509
---------- -----------
96,072.588 $ 965,589
========== ===========
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS AND RELATED RATIOS/
SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING
FOR THE YEARS ENDED JUNE 30, 2000, 1999 AND 1998
2000 1999 1998
NET ASSET VALUE, beginning of period $ 11.35 $ 10.99 $ 10.74
------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .03 (0.01) -
Net gain on securities both realized
and unrealized 1.07 .40 .30
------------------------------
1.10 .39 .30
------------------------------
STOCK DIVIDEND (1.13) (.03) (.05)
------------------------------
NET ASSET VALUE, end of period $ 11.32 $ 11.35 $ 10.99
==============================
NET ASSETS, end of period $1,087,653 $ 914,048 $ 750,819
==============================
Actual Actual Actual
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.0% 2.0% 2.0%
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS 0.3% (0.2%) 0.6%
PORTFOLIO TURNOVER RATE 47.3% 40.7% -
The accompanying notes are an integral part of these statements.
-7-
<PAGE>
WESTERN NEW YORK SERIES
(A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF
JUNE 30, 2000
TOGETHER WITH
INDEPENDENT AUDITORS' REPORT
BONADIO & CO, LLP
Certified Public Accountants
171 Sully's Trail
Pittsford, NY 14534
716-381-1000
Fax 716-381-3131
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors of Bullfinch Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of the
Western New York Series (a series within Bullfinch Fund, Inc.), including the
schedule of investments in securities, as of June 30, 2000, and the
related statements of operations, changes in net assets and the financial
highlights and related ratios/supplemental data for the years
ended June 30,2000 and 1999 and for the period from inception (September 29,
1997) to June 30, 1998. These financial statements and financial highlights and
related ratios/supplemental data are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
statements and the financial highlights and related ratios/supplemental data
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights and related ratios/supplemental data are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of June 30, 2000, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements, the financial highlights and related
ratios/supplemental data referred to above present
fairly, in all material respects, the financial position of the Western New
York Series (a series within Bullfinch Fund, Inc.) as of June 30, 2000, and
the results of its operations, the change in its net assets and the financial
highlights and related ratios/supplemental data for the
years ended June 30,2000 and June 30, 1999, and for the period from inception
(September 29, 1997) to June 30, 1998, in conformity with generally accepted
accounting principles.
BONADIO & CO., LLP
Pittsford, New York
August 4, 2000
<PAGE>
WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS
Investments in securities, at fair value,
identified cost $ 251,757 $ 251,646
Cash 1,161
Accrued interest and dividends 356
Prepaid expenses 901
Due from Investment Adviser 5,306
Organization expenses, net of accumulated
amortization of $1,878 1,461
--------
Total assets 260,831
========
LIABILITIES
Accounts payable 6,233
--------
NET ASSETS
Net assets (equivalent to $9.81 per share
based on 25,941.445 shares of stock outstanding) $ 254,598
=========
COMPOSITION OF NET ASSETS
Shares of common stock $ 258,577
Accumulated net investment loss (3,868)
Net unrealized depreciation on investments (111)
----------
Net assets at June 30, 2000 $ 254,598
==========
The accompanying notes are an integral part of these statements.
-10-
<PAGE>
WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
JUNE 30, 2000
Historical
Common Stocks - 100% Shares Cost Value
Electrical Equipment - 12.3%
PSC, Inc. 1,950 $ 18,587 $ 15,844
ACME Electric Corporation 1,750 9,171 15,094
--------- --------
27,758 30,938
Computer Hardware - 9.1%
Compaq Computer Corp. 250 6,280 6,391
Dell Computer Corp. 250 9,009 12,328
Performance Technologies, Inc. 500 5,408 4,250
--------- --------
20,697 22,969
Steel - 3.4%
Bethlehem Steel Corporation 450 3,552 1,603
Gibraltar Steel Corporation 500 8,975 7,000
--------- --------
12,527 8,603
Real Estate and Related - 4.5%
Sovran Self Storage 250 6,892 5,359
Home Properties of New York 200 5,623 6,000
--------- --------
12,515 11,359
Electronic Components - 4.6%
Astronics Corporation 605 5,021 5,596
Paxar Corporation 500 4,192 5,969
--------- --------
9,213 11,565
Computer Software - 8.8%
Comptek Research, Inc. 700 4,971 12,425
Network Associates, Inc. 200 5,800 4,075
Veramark Tech, Inc. 1,500 9,782 5,719
--------- --------
20,553 22,219
Industrial Materials - 1.0%
Servotronics, Inc. 600 5,624 2,400
Chemical - 3.6%
CPAC, Inc. 1,200 7,236 9,000
Railroads - 5.3%
Genessee & Wyoming, Inc. 800 9,941 13,400
Food & Beverages - 2.0%
Canandaigua Brands, Inc. 100 5,018 5,044
Tobacco Products - 2.1%
Phillip Morris, Inc. 200 4,892 5,313
Leisure & Recreational - 5.3%
Mattel, Inc. 1,000 14,245 13,187
Retail - Specialty - 3.3%
Lowes Companies, Inc. 200 8,380 8,213
Metal Fabrication and Hardware - 1.5%
Graham Corp. 500 3,798 3,813
Computer Services - 0.6%
Computer Task Group, Inc. 300 7,064 1,519
Office Equipment - 3.7%
Xerox Corporation 450 12,059 9,337
Manufacturing - 2.5%
Mark IV Industries, Inc. 300 6,462 6,262
Computer Distributors - 4.1%
Ingram Micro, Inc. 600 10,909 10,462
Commercial Services - 3.7%
Paychex, Inc. 225 4,413 9,450
Telecommunications Equipment - 2.3%
Motorola, Inc. 200 6,005 5,813
Telecommunications Services - 6.8%
AT&T Corporation 250 8,280 7,906
Worldcom, Inc. 200 7,555 9,175
------- -------
15,835 17,081
Environment Services - 1.8%
Sevenson Environmental Srvs, Inc 400 5,071 4,400
Furniture - 1.6%
Bush Industries, Inc. 250 6,263 4,000
Broadcasting - 1.9%
Adelphia Communications Corp 100 4,136 4,687
Industrial Services - 1.0%
American Locker Group, Inc. 400 2,544 2,550
Machinery - 0.5%
Columbus McKinnon Corporation 100 2,344 1,387
Utilities - 2.7%
Rochester Gas & Electric 300 6,255 6,675
--------- ---------
TOTAL COMMON STOCK $ 251,757 $ 251,646
========= =========
The accompanying notes are an integral part of these statements.
-11-
<PAGE>
WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 AND
FOR THE PERIOD FROM INCEPTION (SEPTEMBER 29, 1997)
TO JUNE 30, 1998
2000 1999 1998
INVESTMENT INCOME:
Dividends $ 4,848 $ 2,904 $ 1,705
Interest - - 1,121
---------------------------------
4,848 2,904 2,826
----------------------------------
EXPENSES:
Management Fees 2,980 2,042 1,214
Reimbursement of Management Fees (5,306) (5,924) (3,016)
Legal and Professional 4,000 3,750 3,000
Directors' Fee 600 600 300
Amortization 778 776 324
Fidelity Bond 490 458 230
Taxes 472 382 238
Registration Fees 462 607 341
Bank Service Charges 340 767 -
Dues and Subscriptions 96 71 -
-------------------------------
4,912 3,529 2,631
-------------------------------
Investment income (loss) - net (64) (625) 195
-------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain (loss) from
securities transactions (359) (2,829) -
Unrealized appreciation (depreciation)
during the period 15,314 (18,496) 3,071
--------------------------------
Net gain (loss) on investments 14,955 (21,325) 3,071
---------------------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $14,891 $(21,950) $ 3,266
===================================
The accompanying notes are an integral part of these statements.
WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 AND
FOR THE PERIOD FROM INCEPTION (SEPTEMBER 29, 1997)
TO JUNE 30, 1998
2000 1999 1998
DECREASE IN NET ASSETS FROM OPERATIONS:
Investment income (loss) - net $ (64) $ (625) $ 195
Net realized gain (loss) from
securities transactions (359) (2,829) -
Net change in unrealized appreciation
(depreciation) of investments 15,314 (18,496) 3,071
---------------------------------
Increase (decrease) in net assets from
operations 14,891 (21,950) 3,266
CAPITAL SHARE TRANSACTIONS :
Sales (225.479; 11,777.098; and
16,850.33 shares) 2,000 108,178 172,964
Redemptions (470.420; 2,458.779;
and 0 shares) (4,497) (20,254) -
-------------------------------
Total capital share transactions (2,497) 87,924 172,964
-------------------------------
Increase in net assets 12,394 65,974 176,230
NET ASSETS:
Beginning of period 242,204 176,230 -
---------------------------------
End of period $254,598 $242,204 $176,230
=================================
The accompanying notes are an integral part of these statements.
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WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(1) The Organization
The Western New York Series (the "Series") is a series of the Bullfinch
Fund, Inc. (the "Fund") which was organized as a corporation in Mary-
land on January 29, 1997 as an open-end, non-diversified management
investment company under the Investment Company Act of
1940. On September 29, 1997, the Fund sold 10,500 shares of the
Series to its initial investor for $105,000.
The investment objective of the Series is to seek capital appreciation
through the investment in common stock of companies with an important
economic presence in the Greater Western New York Region. The Adviser
seeks to achieve this objective by using an asset mix consisting primarily
of exchange listed securities and over-the-counter common stocks as well
as U.S. Government securities maturing within five years.
(2) Summary of Significant Accounting Policies
Cash -
Cash consists of amounts deposited in money market accounts and is not
federally insured. The Series has not experienced any losses on such
amounts and believes it is not exposed to any significant credit risk on
cash.
Security Valuation -
The Series records its investments at fair value.
Securities traded on national securities exchanges or the NASDAQ National
Market System are valued daily at the closing prices of the securities on
those exchanges and securities traded on over-the-counter markets are
valued daily at the closing bid prices. Short-term and money market sec-
urities are valued at amortized cost which approximates market value.
Federal Income Taxes -
For federal income tax purposes, the Series expects to continue to
qualify as a regulated investment company under the provisions of the
Internal Revenue Code by distributing substantially all of its taxable
net income (both ordinary and capital gains) to its shareholders and
complying with other requirements for regulated investment companies.
Therefore, no provision for income taxes is required.
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Organization Expenses -
Organization expenses are being amortized over a 60-month period.
The Series' initial shareholder has agreed that if any of the initial
shares are redeemed during the first 60 months of the Series' operations
by any holder thereof, the proceeds of the redemption will be reduced by
the pro rata share of the unamortized organization expenses as of the date
of the redemption. The pro rata share by which the redemption proceeds
shall be reduced shall be derived by dividing the number of original
shares redeemed by the total number of original shares outstanding at the
time of the redemption.
Distributions to Shareholders -
The Series has distributed its net investment income and net realized
capital gains to its shareholders on June 30, 1998 in the form of a stock
dividend equal to 17.737 shares of stock.
Other -
The Series follows industry practice and records security transactions on
the trade date. The specific identification method is used for determin-
ing gains or losses for financial statement and income tax purposes.
Dividend income is recorded on the ex-dividend date and interest income
is recorded on the accrual basis.
Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
(3) Investments
For the year ended June 30, 2000, the Series purchased $122,072 of
common stock. During the same period, the Series sold $56,388 of
common stock.
For the year ended June 30, 1999, the Series purchased $77,365 of
common stock. During the same period, the Series sold $24,463 of
common stock.
For the period ended June 30, 1998, the Series purchased $98,879 of U.S.
Government obligations and $136,357 of common stock.
At June 30, 2000, the gross unrealized appreciation for all securities
totaled $32,853 and the gross unrealized depreciation for all securities
totaled $32,964, or a net unrealized depreciation of $111. The aggre-
gate cost of securities for federal income tax purposes at June 30,
2000 was $251,757.
At June 30, 1999, the gross unrealized appreciation for all securities
totaled $12,525 and the gross unrealized depreciation for all securities
totaled $27,950, or a net unrealized depreciation of $15,425. The aggre-
gate cost of securities for federal income tax purposes at June 30,
1999 was $186,431.
At June 30, 1998, the gross unrealized appreciation for all securities
totaled $16,011 and the gross unrealized depreciation for all securities
totaled $12,940, or a net unrealized appreciation of $3,071. The aggre-
gate cost of securities for federal income tax purposes at June 30,
1998 was $136,357.
(4) Investment Advisory Agreement
Carosa, Stanton & DePaolo Asset Management, LLC serves as investment
advisor to the Fund pursuant to an investment advisory agreement which
was approved by the Fund's board of directors. Carosa, Stanton &
DePaolo Asset Management, LLC is a Registered Investment Adviser under
the Investment Advisers Act of 1940. The Investment advisory agreement
provides that Carosa, Stanton & DePaolo Asset Management, LLC,
subject to the supervision and approval of the Fund's board of directors,
is responsible for the day-to-day management of the Fund's portfolio
which includes selecting investments and handling its business affairs.
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<PAGE>
As compensation for its services to the Fund, the investment advisor re-
ceives monthly compensation at an annual rate of 1.25% on the first $1
million of daily average net assets and 1% on that portion of the daily
average net assets in excess of $1 million. These fees will be reduced
by any sub-transfer agent fees incurred by the Fund.
Carosa, Stanton & DePaolo Asset Management, LLC has agreed to forego
sufficient investment advisory fees to limit total expenses of the Fund
to 2% of the first $10 million in average assets and 1.5% of the next
$20 million in average assets.
(5) Capital Share Transactions
The Fund has authorized 10,000,000 shares of common stock at $0.01 par
value per share. Each share has equal dividend, distribution and liquid-
ation rights. Transactions in capital stock of the Series were as follows:
Shares Amount
Shares sold during 1998 16,850.330 $ 172,964
Shares issued in 6/30/98 stock dividend 17.737 -
---------- -----------
16,868.067 172,964
---------- -----------
Shares sold during 1999 11,777.098 108,178
Shares redeemed during 1999 (2,458.779) (20,254)
---------- -----------
9,318.319 87,924
---------- -----------
Shares sold during 2000 225.479 2,000
Shares redeemed during 2000 (470.420) ( 4,497)
---------- -----------
(244.941) ( 2,497)
---------- ----------
25,941.445 $ 258,391
========== ===========
WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS AND RELATED RATIOS/
SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING
FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 AND
FOR THE PERIOD FROM INCEPTION (SEPTEMBER 29, 1997)
TO JUNE 30, 1998
2000 1999 1998
NET ASSET VALUE, beginning of period $ 9.25 $ 10.45 $ 10.00
---------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (loss) - (0.05) .02
Net gain (loss) on securities both
realized and unrealized .56 (1.15) .44
-------------------------------
.56 (1.20) .46
---------------------------------
STOCK DIVIDEND - - (.01)
---------------------------------
NET ASSET VALUE, end of period $ 9.81 $ 9.25 $ 10.45
====================================
NET ASSETS, end of period $ 254,598 $ 242,204 $ 176,230
====================================
Actual Actual Actual*
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.0% 2.0% 2.0%*
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS (0.0%) (0.4%) 0.2%*
PORTFOLIO TURNOVER RATE 23.5% 13.9% -
* The ratios presented were calculated using operating data for the nine
month period from inception (September 29, 1997) to June 30, 1998.
The accompanying notes are an integral part of these statements.
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