<PAGE>
SAMCO FUNDS, INC.
SAMCO Aggregate Fixed Income Fund Class A Shares
SAMCO Intermediate Fixed Income Fund Class A Shares
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE>
SAMCO FUNDS, INC.
PRESIDENT'S LETTER
December 18, 2000
Dear Shareholder:
We are pleased to provide you with information about the SAMCO Funds, Inc. for
the year ended October 31, 2000.
We greatly appreciate your participation in the Fund. We welcome the opportunity
to discuss the objectives and results of the Fund. Please do not hesitate to
contact us with any questions or comments you may have regarding this report,
Sincerely,
<TABLE>
<S> <C>
[SIG] [SIG]
------------------------------------- ---------------------------------------
John Talty, President Peter Bourke, Vice-President
</TABLE>
<PAGE>
SAMCO FUNDS, INC.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Cumulative Performance............................ 1
Market/Portfolio Review........................... 3
Portfolio of Investments
SAMCO Aggregate Fixed Income Fund............. 4
SAMCO Intermediate Fixed Income Fund.......... 10
Statements of Assets and Liabilities.............. 14
Statements of Operations.......................... 15
Statements of Changes in Net Assets............... 16
Financial Highlights.............................. 17
Notes to Financial Statements..................... 19
Report of Independent Auditors.................... 23
Federal Tax Information........................... 24
</TABLE>
<PAGE>
SAMCO FUNDS, INC.
SAMCO Aggregate Fixed Income Fund - A Shares
CUMULATIVE PERFORMANCE
OCTOBER 31, 2000
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF $1,000,000 INVESTMENT IN SAMCO
AGGREGATE FIXED INCOME FUND AND THE LEHMAN AGGREGATE BOND INDEX*
<TABLE>
<CAPTION>
SAMCO AGGREGATE FIXED INCOME FUND LEHMAN AGGREGATE BOND INDEX
<S> <C> <C>
12/30/97 $1,000,000 $1,000,000
12/31/97 $1,002,000 $1,002,400
1/31/98 $1,016,000 $1,015,230
2/28/98 $1,013,490 $1,014,420
3/31/98 $1,018,020 $1,017,870
4/30/98 $1,022,580 $1,023,160
5/31/98 $1,032,740 $1,032,880
6/30/98 $1,040,910 $1,041,660
7/31/98 $1,042,960 $1,043,850
8/31/98 $1,056,240 $1,060,860
9/30/98 $1,074,010 $1,085,690
10/31/98 $1,068,720 $1,079,930
11/30/98 $1,075,390 $1,086,090
12/31/98 $1,080,300 $1,089,350
1/31/99 $1,088,490 $1,097,080
2/28/99 $1,070,560 $1,077,880
3/31/99 $1,079,240 $1,083,810
4/30/99 $1,081,750 $1,087,280
5/31/99 $1,069,660 $1,077,710
6/30/99 $1,066,740 $1,074,260
7/31/99 $1,063,660 $1,069,750
8/31/99 $1,060,350 $1,069,210
9/30/99 $1,072,940 $1,081,620
10/31/99 $1,077,230 $1,085,620
11/30/99 $1,078,030 $1,085,510
12/31/99 $1,074,570 $1,080,300
1/31/00 $1,068,570 $1,076,740
2/29/00 $1,081,950 $1,089,770
3/31/00 $1,089,910 $1,104,150
4/30/00 $1,086,150 $1,100,950
5/31/00 $1,084,410 $1,100,400
6/30/00 $1,107,630 $1,123,290
7/31/00 $1,118,280 $1,133,510
8/31/00 $1,135,190 $1,149,940
9/30/00 $1,142,370 $1,157,190
10/31/00 $1,148,630 $1,164,830
</TABLE>
Past performance is not indicative of future performance
* The Lehman Brother Aggregate Bond Index is an unmanaged market value-weighted
measure of U.S. Treasury and agency securities, corporate bond issues,
mortgage-backed securities, asset-backed securities and corporate
mortgage-backed securities. Index returns assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees or expenses.
<TABLE>
INVESTMENT PERFORMANCE
(FOR THE PERIODS ENDED OCTOBER 31, 2000)
AVERAGE ANNUAL TOTAL RETURN
Since Inception
One Year (12/30/97)
SAMCO AGGREGATE FIXED INCOME FUND (a) 6.63% 5.00%
<S> <C> <C>
Lehman Aggregate Bond Index 7.30% 5.52%
</TABLE>
(a) Reflects waiver of fees and reimbursement of expenses by the investment
adviser and administrator. Absent such waiver and reimbursement, the
Fund's total return would have been lower.
1
<PAGE>
SAMCO FUNDS, INC.
SAMCO Intermediate Fixed Income Fund
CUMULATIVE PERFORMANCE
OCTOBER 31, 2000
--------------------------------------------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF $1,000,000 INVESTMENT IN
SAMCO INTERMEDIATE FIXED INCOME FUND AND THE LEHMAN INTERMEDIATE
GOVERNMENT/CORPORATE INDEX*
<TABLE>
<CAPTION>
SAMCO INTERMEDIATE LEHMAN INTERMEDIATE
<S> <C> <C>
Fixed Income Fund Government/Corporate Index
6/30/99 $1,000,000 $1,000,000
7/31/99 $998,480 $999,100
8/31/99 $1,000,250 $999,900
9/30/99 $1,009,430 $1,009,200
10/31/99 $1,011,340 $1,011,820
11/30/99 $1,014,280 $1,013,400
12/31/99 $1,012,410 $1,009,700
1/31/00 $1,009,700 $1,005,960
2/29/00 $1,018,900 $1,014,210
3/31/00 $1,032,270 $1,024,760
4/30/00 $1,028,580 $1,022,400
5/31/00 $1,028,750 $1,024,030
6/30/00 $1,045,680 $1,042,060
7/31/00 $1,053,390 $1,049,980
8/31/00 $1,067,890 $1,062,370
9/30/00 $1,077,430 $1,072,030
10/31/00 $1,082,900 $1,076,970
</TABLE>
Past performance is not indicative of future performance
* The Lehman Intermediate Government/Corporate Index is an unmanaged, market
value-weighted measure of U.S. Treasury and agency securities, corporate bond
issues and mortgage-backed securities, having maturities of 10 years or less.
Index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees or expenses.
<TABLE>
INVESTMENT PERFORMANCE
(FOR THE PERIODS ENDED OCTOBER 31, 2000)
AVERAGE ANNUAL TOTAL RETURN
Since Inception
One Year (06/30/99)
SAMCO INTERMEDIATE FIXED INCOME FUND (a) 7.08% 6.11%
<S> <C> <C>
Lehman Intermediate Government/Corporate Index 6.44% 5.68%
</TABLE>
(a) Reflects waiver of fees and reimbursement of expenses by the investment
adviser and administrator. Absent such waiver and reimbursement, the
Fund's total return would have been lower.
2
<PAGE>
SAMCO FUNDS, INC.
OCTOBER 31, 2000
--------------------------------------------------------------------------------
MARKET REVIEW:
There were two strong trends at work in the bond market over the past year, an
inversion of the yield curve and significant widening of interest rate spreads.
The impact of a tighter monetary policy from the Federal Reserve, the standard
catalyst for an inverted yield curve, was given added momentum by the emerging
shortage of Treasury Securities. This started in the opening months of 2000,
when it became apparent that federal government budget surpluses would not be
temporary and could continue for the next decade. The spread between the
interest rates on 2-Year and 30-Year Treasuries flipped from +0.25% on
December 31 to -0.75% in May. In June, the Office of Management and Budget
predicted that all Treasuries, including bills, notes and bonds, would disappear
by 2012 because the government would not need to borrow from the public. In the
second half of the year, shorter maturity Treasuries followed the performance
lead of the long sector. This move, however, was a response to the perception
that the Fed was done raising rates.
Our income-oriented investment strategy normally leads to high allocations to
non-Treasury sectors or "spread product", including Corporates, Mortgage Backed
Securities (MBS) and Asset Backed Securities (ABS). As prices on Treasury issues
continued to increase, spread product came under pressure and our investment
style was at a disadvantage. During the first six months of 2000, all spread
product underperformed Treasuries. Since the exposure to these sectors in the
SAMCO Aggregate Fund (the "Aggregate Fund") was higher than their representation
in the Lehman Aggregate Index, the Aggregate Fund underperformed the benchmark
in the first half of 2000. The SAMCO Intermediate Fund (the "Intermediate
Fund"), however, was not affected by the performance of the Treasury's longer
dated issues and out-outperformed the Lehman Intermediate Government/Corporate
Index in the first half.
Late in the second quarter, we took advantage of generous yields in the high
quality, structured sectors and purchased Asset Backed Securities (ABS),
Commercial Mortgage Backed Securities (CMBS) and Collateralized Mortgage
Obligations (CMOs) in the shorter than 5-Year maturity sector. The spreads on
these AAA-rated securities had widened to such a high level that the probability
of their underperforming Treasuries in the future was very small. With the
additional yield of these investments, we were able to reduce both the Aggregate
and Intermediate Fund's exposure to the corporate sector without significantly
changing the yield of the overall portfolios. With rising uncertainty about the
future course of the economy, we deemed it prudent to increase the average
quality of the Funds.
PORTFOLIO OVERVIEW:
The Funds benefited from this move when a further widening in corporate spreads
developed. As evidence mounted that the pace of economic activity was
moderating, investors recognized the implications for corporate profitability
and priced their heightened credit and event risk concerns into the market. Our
strategy of concentrating on higher quality Mortgages and Agencies paid off as
these sectors did well versus Corporates. As a result, both the SAMCO Aggregate
and Intermediate Funds performed well during the second half.
3
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS:
58.5%
U.S. TREASURY OBLIGATIONS: 10.3%
U.S. Treasury Bond 5.250% 02/15/2029 $ 1,615,000 $ 1,471,738
U.S. Treasury Bond 6.625% 02/15/2027 1,855,000 2,014,102
U.S. Treasury Bond 8.875% 02/15/2019 1,635,000 2,149,541
U.S. Treasury Note 5.625% 05/15/2008 375,000 369,676
------------
6,005,057
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS AND
PASS-THROUGH CERTIFICATES: 32.4%
FHLMC 8.500% 03/01/2020 12,994 13,298
FNMA (TBA) 6.000% 01/24/2015 660,000 635,250
FNMA (TBA) 6.000% 01/19/2030 220,000 206,181
FNMA (TBA) 7.000% 01/01/2029 5,395,000 5,280,356
FNMA (TBA) 7.500% 11/01/2030 1,590,000 1,587,019
FNMA (TBA) 8.000% 01/01/2016 2,450,000 2,489,813
FNMA (TBA) 8.000% 11/01/2030 2,250,000 2,276,719
FNMA Global Bond 7.250% 05/15/2030 45,000 47,562
FNMA Global Note 5.750% 04/15/2003 630,000 620,277
FNMA Global Note 6.625% 10/15/2007 470,000 471,492
FNMA Sovereign Agency 7.250% 01/15/2010 2,560,000 2,652,721
GNMA 7.500% 04/15/2029 51,239 51,431
GNMA 7.500% 04/15/2029 454,327 456,236
GNMA 9.000% 02/15/2030 49,775 51,535
GNMA (TBA) 6.500% 01/25/2030 550,000 530,750
GNMA (TBA) 7.500% 11/01/2030 1,460,000 1,465,019
------------
18,835,659
------------
U.S. GOVERNMENT AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS: 15.8%
FHLMC, Ser. 1360, Class PJ 5.000% 12/15/2020 430,000 411,562
FHLMC, Ser. 1458, Class H 7.000% 10/15/2006 407,014 406,277
FHLMC, Ser. 1686, Class PH 5.000% 05/15/2021 555,000 526,029
FHLMC, Ser. 1944, Class GB 7.500% 04/17/2024 155,000 155,949
FHLMC, Ser. 2034, Class PN 6.000% 04/15/2018 552,846 545,360
FNMA - Pool # 415796 6.500% 05/01/2028 24,495 23,573
FNMA - Pool # 451121 6.500% 11/01/2028 267,926 257,841
FNMA - Pool # 535285 6.500% 02/01/2030 159,664 153,654
FNMA - Pool # 253436 7.500% 08/01/2030 1,206,715 1,205,038
FNMA - Pool # 303076 6.500% 09/01/2024 535,529 518,581
FNMA - Pool # 313877 6.500% 12/01/2027 318,602 307,126
FNMA - Pool # 323481 9.500% 05/01/2018 74,177 77,811
FNMA - Pool # 415783 6.500% 05/01/2028 108,436 104,354
FNMA - Pool # 433330 6.500% 08/01/2028 57,875 55,697
FNMA - Pool # 535534 7.500% 09/01/2030 1,251,290 1,249,551
FNMA - Pool # 543302 6.500% 05/01/2029 109,767 105,635
FNMA - Pool # 535193 7.500% 03/01/2030 1,135,112 1,134,119
FNMA - Pool # 415956 6.500% 05/01/2028 16,860 16,225
FNMA, Ser. 1997-15, Class B 7.500% 07/18/2025 285,000 286,645
FNMA, Ser. 1999-60, Class PB 7.000% 06/25/2021 380,000 380,342
GNMA - Pool # 479461 9.000% 07/15/2030 93,092 96,384
GNMA - Pool # 479526 9.000% 08/15/2030 24,966 25,849
GNMA - Pool # 479674 9.000% 10/15/2030 190,000 196,720
GNMA - Pool # 491265 7.500% 04/15/2029 29,986 30,112
GNMA - Pool # 506673 7.500% 04/15/2029 69,781 70,075
GNMA - Pool # 531263 9.000% 07/15/2030 23,131 23,949
GNMA - Pool # 434846 9.000% 08/15/2030 195,080 201,968
GNMA - Pool # 434877 9.000% 09/15/2030 288,290 298,486
GNMA - Pool # 479525 9.000% 08/15/2030 98,920 102,418
GNMA - Pool # 523209 9.000% 08/15/2030 173,903 180,054
GNMA - Pool # 531299 9.000% 08/15/2030 24,784 25,660
------------
9,173,044
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (COST -
$33,888,450) 34,013,760
------------
</TABLE>
4
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CORPORATE OBLIGATIONS: 23.4%
AEROSPACE & DEFENSE: 0.4%
Lockheed Martin Corp. 7.200% 05/01/2036 $ 90,000 $ 87,866
Lockheed Martin Corp. 8.500% 12/01/2029 125,000 133,754
------------
221,620
------------
AIRLINES: 0.2%
Continental Airlines, Inc., Ser.
1996-B 7.820% 10/15/2013 88,722 88,498
------------
AUTOMOTIVE: 0.4%
Ford Motor Credit Co. 7.450% 07/16/2031 100,000 92,184
Ford Motor Credit Co. 7.600% 08/01/2005 125,000 125,827
------------
218,011
------------
BANKING: 3.1%
African Development Bank -
Yankee 8.800% 09/01/2019 70,000 80,516
Bank of America Corp. 7.875% 05/16/2005 140,000 143,707
Bank One Corp. 7.875% 08/01/2010 110,000 110,833
BNP Paribas Capital Trust (FRN)
(144A) 9.003% 12/29/2049 290,000 289,527
Chase Manhattan Corp., Ser. C
(FRN) (MTN) 6.123% 01/03/2002 450,000 450,296
FleetBoston Financial Corp. 7.250% 09/15/2005 175,000 175,706
Husky Terra Nova Finance 8.450% 02/01/2012 424,000 428,702
Societe Generale Real Estate LLC
(144A) 7.640% 12/29/2049 140,000 131,298
------------
1,810,585
------------
COMMERCIAL SERVICES: 1.8%
ERAC USA Finance Co. (144A) 8.250% 05/01/2005 165,000 167,342
Household Auto Trust, Ser.
2000-2, Class A3 7.340% 11/17/2004 660,000 668,356
Hyder PLC (144A) 7.375% 12/15/2028 285,000 217,796
------------
1,053,494
------------
COSMETICS & PERSONAL CARE: 0.4%
Procter & Gamble Co. 8.000% 09/01/2024 215,000 230,675
------------
ELECTRIC UTILITIES: 1.9%
Arizona Public Service Co. 7.625% 08/01/2005 160,000 161,636
Dominion Resources, Inc. 7.600% 07/15/2003 230,000 231,687
Dominion Resources, Inc. 8.125% 06/15/2010 85,000 87,661
Great Lakes Power 8.300% 03/01/2005 190,000 188,122
Ontario Hydro 6.100% 01/30/2008 165,000 157,184
PP&L Capital Funding (MTN) 7.750% 04/15/2005 140,000 139,513
PPL Montana (144A) 8.903% 07/02/2020 160,000 161,428
------------
1,127,231
------------
</TABLE>
5
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL SERVICES: 5.8%
AT&T Universal Card Master
Trust, Ser. 1995-3, Class A 6.924% 10/17/2004 $ 420,000 $ 420,265
Cedar Brakes I LLC (144A) 8.500% 02/15/2014 100,000 100,806
Citigroup, Inc. 7.250% 10/01/2010 730,000 724,182
Countrywide Capital I 8.000% 12/15/2026 135,000 117,559
Duke Capital Corp. 7.500% 10/01/2009 130,000 130,674
General Electric Capital Corp. 7.000% 02/03/2003 165,000 166,250
Household Finance Corp. 8.000% 07/15/2010 85,000 85,965
Lehman Brothers Holdings, Inc.
(MTN) 7.000% 05/15/2003 225,000 223,265
Natexis Ambs Co. LLC (144A) 8.440% 12/29/2049 130,000 124,210
Nationslink Funding Corp., Ser.
1999-SL, Class A2 6.096% 12/10/2001 620,000 614,384
PDVSA Finance Ltd., Ser. 1999-F
- Yankee 8.750% 02/15/2004 122,640 121,414
Ras Laffin-Lincs Ser. 1997-11,
(FRN) (144A) 7.850% 03/18/2014 235,000 242,793
UBS Preferred Funding Trust I
(FRN) 8.622% 10/29/2049 90,000 90,948
Unicredito Italiano Capital
Trust (144A) 9.200% 10/05/2049 220,000 219,111
------------
3,381,826
------------
HEAVY MACHINERY: 0.9%
Cummins Engine Co., Inc. 5.650% 03/01/2098 435,000 243,474
UNOVA, Inc. 6.875% 03/15/2005 395,000 300,811
------------
544,285
------------
INDUSTRIAL - DIVERSIFIED: 0.4%
Tyco International Group SA -
Yankee (144A) 6.875% 09/05/2002 205,000 204,410
------------
INSURANCE: 1.5%
Anthem Insurance (144A) 9.000% 04/01/2027 205,000 172,676
Anthem Insurance Companies, Inc. 9.125% 04/01/2010 210,000 199,672
Florida Windstorm Underwriting
Association (144A) 6.500% 08/25/2002 255,000 252,613
URC Holdings Corp. (144A) 7.875% 06/30/2006 250,000 257,409
------------
882,370
------------
MEDIA - BROADCASTING & PUBLISHING: 0.4%
Clear Channel Communications 7.250% 09/15/2003 135,000 134,514
News America Inc. 7.125% 04/08/2028 115,000 97,109
------------
231,623
------------
METALS: 0.5%
CMS Panhandle Holding Co. (144A) 6.125% 03/15/2004 150,000 141,574
Scotia Pacific Co. LLC, Ser. B,
Class A-3 (144A) 7.710% 01/20/2014 160,000 120,489
------------
262,063
------------
OIL & GAS: 1.8%
EdperBrascan Corp. 7.125% 12/16/2003 180,000 174,534
Kern River Funding Corp., Ser. B
(144A) 6.720% 09/30/2001 160,000 159,464
Petroleum Geo-Services 7.125% 03/30/2028 280,000 244,167
Transportation-Canada Pipeline,
Ltd. 9.875% 01/01/2021 120,000 142,778
Yosemite Securities Trust I
(144A) 8.250% 11/15/2004 335,000 339,116
------------
1,060,059
------------
</TABLE>
6
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PHARMACEUTICALS: 1.0%
Lilly Del Mar, Inc. (FRN) (144A) 7.717% 08/01/2029 $ 605,000 $ 606,733
------------
REAL ESTATE: 0.1%
Nationwide Health Properties,
Inc., Ser. B (REIT) (MTN) 7.670% 04/18/2003 70,000 67,720
------------
TELEPHONE SYSTEMS: 1.8%
Deutsche Telekom International
Finance BV 7.750% 06/15/2005 145,000 147,467
Deutsche Telekom International
Finance BV 8.250% 06/15/2030 140,000 143,297
Marconi Corp. PLC - Yankee 8.375% 09/15/2030 235,000 223,908
Qwest Capital Funding 7.900% 08/15/2010 90,000 91,367
Telecom New Zealand Finance 6.250% 02/10/2003 280,000 275,757
Telefonica Europe BV 7.350% 09/15/2005 140,000 140,420
------------
1,022,216
------------
TRANSPORTATION: 1.0%
Windsor Petroleum 7.840% 01/15/2021 690,000 600,507
------------
TOTAL CORPORATE OBLIGATIONS (COST - $13,588,486) 13,613,926
------------
SOVEREIGN DEBT OBLIGATIONS: 1.9%
BANKING: 0.5%
SE Banken (144A) 6.500% 12/29/2049 295,000 283,718
------------
CANADA: 1.4%
Province of Manitoba 7.500% 02/22/2010 220,000 228,445
Province of Manitoba - Yankee 5.500% 10/01/2008 70,000 63,735
Province of Ontario 7.750% 06/04/2002 150,000 152,596
Province of Quebec 7.500% 09/15/2029 300,000 303,301
Province of Saskatchewan -
Yankee 7.375% 07/15/2013 55,000 56,055
------------
804,132
------------
TOTAL SOVEREIGN DEBT OBLIGATIONS (COST - $1,079,633) 1,087,850
------------
<CAPTION>
PREFERRED STOCKS: 0.8% SHARES
-----------
<S> <C> <C> <C> <C>
Duke-Weeks Realty Corp. (REIT) 7.990%(b) 6,650 292,808
SPG Properties, Inc. (REIT) 7.890%(c) 4,095 174,933
------------
TOTAL PREFERRED STOCKS (COST - $478,442) 467,741
------------
<CAPTION>
COLLATERALIZED MORTGAGE OBLIGATIONS: 2.6% PAR/FACE
-----------
<S> <C> <C> <C> <C>
GS Mortgage Securities Corp. II, Ser.
2000-1, Class A (FRN) 6.970% 03/20/2023 $ 413,860 413,860
Residential Funding Mortgage
Securities I, Ser. 1997-S14, Class
A6 7.250% 10/25/2027 720,000 696,952
Washington Mutual, Ser. 2000-1, Class
A1 (FRN) 6.403% 06/25/2024 404,514 403,592
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST - $1,502,275) 1,514,404
------------
</TABLE>
7
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET BACKED SECURITIES: 34.1%
ABSC Long Beach Home Equity Loan
Trust, Ser. 2000-LB1, Class AV
(FRN) 6.880% 08/21/2030 $ 468,995 $ 469,068
AFC Home Equity Loan Trust, Ser.
1999-1, Class 2A1 (FRN) 6.259% 02/24/2029 209,188 209,782
American Express Master Trust, Ser.
1996-2, Class A (FRN) 6.005% 08/15/2002 360,000 360,194
Americredit Automobile Receivables
Trust, Ser 2000-B, Class A4 (FRN) 6.936% 04/05/2007 440,000 441,446
Americredit Automobile Receivables
Trust, Ser. 2000-A, Class A3 7.150% 08/12/2004 575,000 578,663
Americredit Automobile Receivables
Trust, Ser. 2000-C, Class A4 6.830% 07/12/2007 370,000 370,694
Asset Securitization Corp., Ser.
1996-MD6, Class A 6.880% 11/13/2026 545,000 544,235
AT&T Universal Card Master Trust,
Ser. 1996-3, Class A (FRN) 6.273% 09/17/2003 265,000 265,055
BA Master Credit Card Trust, Ser.
1996-A, Class A (FRN) 6.015% 08/15/2003 380,000 380,141
Banc One Heloc Trust (FRN) 6.821% 05/15/2021 296,994 296,786
Bay View Auto Trust, Ser. 2000-LJ1,
Class A4 7.640% 11/25/2010 685,000 695,268
Champion Home Equity Loan Trust, Ser.
1999-1, Class A (FRN) 6.139% 03/25/2029 27,276 27,269
Chase Credit Card Master Trust, Ser.
1998-6, Class A (FRN) 6.390% 09/15/2004 475,000 476,487
Chase Credit Card Master Trust, Ser.
2000-2, Class B (FRN) 6.420% 07/15/2005 475,000 476,468
Chase Credit Card Master Trust, Ser.
2000-3, Class A 6.750% 01/15/2008 455,000 453,365
Chase Funding Mortgage Loan, Ser.
2000-3, Class II 6.840% 10/25/2030 225,000 224,543
Chase Funding Mortgage Loan, Series
2000-2, Class IIA1 (FRN) 6.931% 05/25/2030 420,833 421,134
Citibank Credit Card Issuance Trust,
Series 2000-B2 6.910% 10/15/2007 575,000 573,652
Citibank Credit Card Master Trust I,
Ser. 1999-3, Class A (FRN) 6.220% 03/15/2004 485,000 485,079
Countrywide Home Equity Loan Trust,
Ser 2000-B, Class A2 (FRN) 6.850% 08/15/2026 423,712 423,208
Countrywide Home Equity Loan Trust,
Ser. 1998, Class A 6.194% 03/15/2024 279,598 279,050
Countrywide Home Equity Loan Trust,
Ser. 2000-A, Class A2 (FRN) 6.410% 05/15/2026 251,655 250,810
DaimlerChrysler Auto Trust, Ser.
2000-A, Class A3 7.090% 12/06/2003 300,000 301,626
Discover Card Master Trust I, Ser.
2000-3, Class A 6.740% 09/16/2005 485,000 485,627
Discover Card Master Trust I, Ser.
1996-1, Class A (FRN) 6.055% 07/16/2003 365,000 365,051
Discover Card Master Trust, Ser.
2000-8, Class A (FRN) 8.000% 04/16/2006 450,000 449,789
DLJ Commercial Mortgage Corp., Ser.
2000-CKP1, Class A1B 7.180% 11/10/2033 225,000 225,000
EQCC Home Equity Loan Trust, Ser.
1998-4, Class A1F (FRN) 6.570% 01/15/2029 442,434 444,300
EQCC Home Equity Loan Trust, Ser.
1999-3, Class A7 7.448% 08/25/2030 667,214 669,446
Falcon Franchise Loan LLC, Ser.
2000-1, Class A1 7.382% 10/05/2010 517,284 517,284
First Chicago Master Trust II, Ser.
1996-Q, Class A (FRN) 6.015% 04/15/2003 500,000 500,280
First Chicago Master Trust II, Ser.
1998-V, Class A (FRN) 6.410% 10/15/2003 470,000 470,559
First National Bank of Chicago, Ser.
1993-A 8.080% 01/05/2018 200,000 205,022
First Union Master Credit Card Trust,
Ser. 1996-1, Class A (FRN) 6.055% 09/15/2003 365,000 365,069
First USA Credit Card Master Trust,
Ser. 1994-8, Class A (FRN) 5.692% 06/15/2004 465,000 465,558
Fleet Credit Card Master Trust II,
Ser. 2000-A, Class A (FRN) 6.134% 07/15/2005 200,000 200,304
Fleet Credit Card Master Trust, Ser.
1995-F, Class A2 (FRN) 6.075% 08/01/2003 160,000 160,016
GS Mortgage Securities Corp., Ser.
1997-GL Class A2A 6.940% 07/13/2030 61,313 61,123
IMC Home Equity Loan Trust, Ser.
1997-6, Class A (FRN) 6.815% 01/20/2028 87,761 87,699
LB Commercial Conduit Mortgage, Ser.
1998-C4 Class A1A 5.870% 08/15/2006 637,853 616,532
MBNA Master Credit Card Trust, Ser.
1997-N, Class A (FRN) 6.166% 11/15/2002 40,000 39,994
Merrill Lynch Home Equity Loan, Ser.
1997-1, Class A (FRN) 5.994% 09/25/2027 382,281 380,641
Northwest Airlines Corp., Ser.
1999-2C 8.304% 09/01/2010 268,154 266,473
Northwest Airlines Corp., Ser.
1999-3, Class C 9.152% 04/01/2010 3,917 3,955
Olympic Automobile Receivables Trust,
Ser. 1996-D, Class A5 6.250% 11/15/2004 610,000 607,822
Olympic Automobile Receivables Trust,
Ser. 1997-A, Class A5 6.800% 02/15/2005 500,000 499,985
Option One Mortgage Loan Trust, Ser.
2000-5, Class A (FRN) 6.000% 08/20/2030 400,000 400,000
Pemex Finance Ltd., Ser. 2000-1,
Class A1 (144A) 9.030% 02/15/2011 105,000 109,880
Providian Master Trust, Ser. 1997-3,
Class A (FRN) 5.995% 12/15/2005 420,000 420,029
Residential Asset Securities Corp.,
Ser. 2000-KS4, 6.850% 09/25/2031 422,381 421,985
RGS (AEGCO) Funding Corp., Ser. E 9.810% 12/07/2021 64,958 73,372
Salton Sea Funding, Ser. B (144A) 7.370% 05/30/2005 76,132 76,672
Scotia Pacific Co. LLC, Ser. B, Class
A-2 7.110% 01/20/2014 300,000 253,777
UCFC Home Equity Loan, Ser. 1997-A1,
Class A6 7.435% 11/15/2024 190,000 191,258
UCFC Home Equity Loan, Ser. 1997-C,
Class A7 6.845% 01/15/2029 375,708 370,711
UCFC Home Equity Loan, Ser. 1997-D,
Class A5 6.755% 11/15/2023 390,000 382,262
------------
TOTAL ASSET BACKED SECURITIES (COST - $19,745,198) 19,791,498
------------
</TABLE>
8
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Aggregate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS: 4.6%
Investors Bank & Trust Company
Repurchase Agreement, in the amount
of $2,686,334: Issued 10/31/2000
(collateralized by $2,792,321 par
of FNMA Pool # 330136, 7.500% due
2/01/2010 with a market value of
$2,820,244) (Cost - $2,685,910) 5.690% $ 2,685,910 $ 2,685,910
------------
TOTAL INVESTMENTS: 125.9% (COST - $72,968,394) 73,175,089
LIABILITIES, NET OF OTHER ASSETS: (25.9%) (15,076,117)
------------
NET ASSETS: 100.0%
Applicable to 6,012,785 outstanding $.001 par value shares
(Authorized 350,000,000 for the Class A shares) $ 58,098,972
============
Net Asset Value, Offering and Redemption Price Per Share $ 9.66
============
</TABLE>
Summary of Abbreviations
(a) See note 2 to the Financial Statements
(b) Coupon Rate shown represents current rate. Rate will increase by 2.00%
on 10/01/2012
(c) Coupon Rate shown represents current rate. Rate will increase by 2.00%
on 09/30/2012.
144A Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified buyers. At October 31, 2000,
the aggregate value of the securities is $4,500,479 or 7.7% of the net
assets.
FHLM Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FRN Floating Rate Note
GNMA Government National Mortgage Association
MTN Medium-Term Note
REIT Real Estate Investment Trust
TBA To Be Announced - Security is subject to delayed delivery
Yankee U.S. dollar denominated security issued by a non-U.S. company in the
U.S.
See Notes to the Financial Statements.
9
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Intermediate Fixed Income Fund
PORTFOLIO OF INVESTMENTS
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS:
34.3%
U.S. TREASURY OBLIGATIONS: 13.8%
U.S. Treasury Note 5.625% 05/15/2008 $1,280,000 $ 1,261,828
U.S. Treasury Note 5.750% 08/15/2003 210,000 209,213
U.S. Treasury Note 7.000% 07/15/2006 70,000 73,792
------------
1,544,833
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS AND
PASS-THROUGH CERTIFICATES: 5.9%
FHLMC 6.500% 09/15/2022 205,000 202,437
FNMA Global Note 6.625% 10/15/2007 310,000 310,984
FNMA Global Note 7.125% 06/15/2010 40,000 41,212
Overseas Private Investment
Corp., Ser. 1998-946-1 7.600% 12/15/2012 100,000 103,313
------------
657,946
------------
U.S. GOVERNMENT AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS: 14.6%
FHLMC, Ser. 1360, Class PJ 5.000% 12/15/2020 190,000 181,853
FHLMC, Ser. 1458, Class H 7.000% 10/15/2006 104,504 104,314
FHLMC, Ser. 1686, Class PH 5.000% 05/15/2021 170,000 161,126
FNMA - Pool # 253436 7.500% 08/01/2030 342,648 342,171
FNMA - Pool # 535534 7.500% 09/01/2030 353,916 353,424
FNMA - Pool #535161 7.500% 02/01/2030 260,026 259,798
FNMA Series 1993-201 Class G 3.500% 05/25/2019 134,662 129,305
FNMA, Ser. 1999-60, Class PB 7.000% 06/25/2021 110,000 110,099
------------
1,642,090
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (COST - $3,811,931) 3,844,869
------------
CORPORATE OBLIGATIONS: 32.2%
AEROSPACE & DEFENSE: 1.6%
Lockheed Martin Corp. 7.950% 12/01/2005 95,000 97,617
Raytheon Co. (144A) 7.900% 03/01/2003 85,000 86,294
------------
183,911
------------
AIRLINES: 1.4%
Continental Airlines, Inc. 6.800% 07/02/2007 72,861 70,159
Delta Air Lines, Inc., Ser.
1992-A1 8.270% 09/23/2007 80,805 81,763
------------
151,922
------------
AUTOMOTIVE: 3.2%
Arcadia Automobile Receivables
Trust, Ser. 1997-C, Class A5 6.550% 06/15/2005 75,000 74,816
DaimlerChrysler North America
Holdings, Corp. 7.750% 05/27/2003 110,000 111,461
Ford Motor Credit Co. 7.500% 06/15/2003 105,000 105,558
Ford Motor Credit Co. 7.600% 08/01/2005 65,000 65,430
------------
357,265
------------
BANKING: 2.4%
Bank of America Corp. 7.875% 05/16/2005 40,000 41,059
Bank One Corp. 7.875% 08/01/2010 35,000 35,265
BNP Paribas Capital Trust (FRN)
(144A) 9.003% 12/29/2049 90,000 89,853
FleetBoston Financial Corp. 7.250% 09/15/2005 55,000 55,222
Societe Generale Real Estate LLC
(144A) 7.640% 12/29/2049 45,000 42,203
------------
263,602
------------
</TABLE>
10
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Intermediate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL SERVICES: 2.1%
ERAC USA Finance Co. (144A) 8.250% 05/01/2005 $ 50,000 $ 50,710
Household Auto Trust, Ser.
2000-2, Class A3 7.340% 11/17/2004 185,000 187,342
------------
238,052
------------
COMPUTERS & INFORMATION: 0.8%
International Business Machines
Corp. 6.220% 08/01/2027 95,000 93,555
------------
ELECTRIC UTILITIES: 3.9%
Arizona Public Service Co. 7.625% 08/01/2005 50,000 50,511
Dominion Resources, Inc. 7.600% 07/15/2003 80,000 80,587
Dominion Resources, Inc. 8.125% 06/15/2010 25,000 25,783
Great Lakes Power 8.300% 03/01/2005 165,000 163,370
Jersey Central Power & Light 6.375% 05/01/2003 70,000 68,923
Ontario Hydro 6.100% 01/30/2008 50,000 47,632
------------
436,806
------------
FINANCIAL SERVICES: 7.5%
Citigroup, Inc. 7.250% 10/01/2010 170,000 168,645
Countrywide Home Loan 6.250% 04/15/2009 70,000 62,938
Duke Capital Corp. 7.500% 10/01/2009 45,000 45,233
General Electric Capital Corp. 7.000% 02/03/2003 55,000 55,417
Household Finance Corp. 8.000% 07/15/2010 25,000 25,284
Lehman Brothers Holdings, Inc.
(MTN) 7.000% 05/15/2003 70,000 69,460
Natexis Ambs Co. LLC (144A) 8.440% 12/29/2049 40,000 38,219
Nationslink Funding Corp., Ser.
1999-SL, Class A2 6.096% 12/10/2001 180,000 178,370
Ras Laffin-Lincs Ser. 1997-11,
(FRN) (144A) 7.850% 03/18/2014 70,000 72,321
UBS Preferred Funding Trust I
(FRN) 8.622% 10/29/2049 30,000 30,316
Unicredito Italiano Capital
Trust (144A) 9.200% 10/05/2049 100,000 99,596
------------
845,799
------------
HEAVY MACHINERY: 0.5%
UNOVA, Inc. 6.875% 03/15/2005 70,000 53,308
------------
INDUSTRIAL - DIVERSIFIED: 0.6%
Tyco International Group SA -
Yankee (144A) 6.875% 09/05/2002 65,000 64,813
------------
INSURANCE: 1.2%
Anthem Insurance Companies, Inc. 9.125% 04/01/2010 30,000 28,525
Florida Windstorm Underwriting
Association (144A) 6.500% 08/25/2002 30,000 29,719
URC Holdings Corp. (144A) 7.875% 06/30/2006 75,000 77,223
------------
135,467
------------
MEDIA - BROADCASTING & PUBLISHING: 0.4%
Clear Channel Communications 7.250% 09/15/2003 40,000 39,856
------------
METALS: 1.0%
CMS Panhandle Holding Co. (144A) 6.125% 03/15/2004 45,000 42,472
Scotia Pacific Co. LLC, Ser. B,
Class A-1 6.550% 01/20/2007 72,279 70,504
------------
112,976
------------
OIL & GAS: 1.2%
EdperBrascan Corp. 7.125% 12/16/2003 40,000 38,785
Yosemite Securities Trust I
(144A) 8.250% 11/15/2004 95,000 96,167
------------
134,952
------------
</TABLE>
11
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Intermediate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PHARMACEUTICALS: 0.9%
Lilly Del Mar, Inc. (FRN) (144A) 7.717% 08/01/2029 $ 100,000 $ 100,286
------------
TELEPHONE SYSTEMS: 2.5%
Marconi Corp. PLC 7.750% 09/15/2010 90,000 86,870
Telefonica Europe BV 7.750% 09/15/2010 120,000 120,552
Worldcom, Inc. 6.400% 08/15/2005 80,000 76,934
------------
284,356
------------
TRANSPORTATION: 1.0%
Windsor Petroleum 7.840% 01/15/2021 130,000 113,139
------------
TOTAL CORPORATE OBLIGATIONS (COST - $3,580,640) 3,610,065
------------
SOVEREIGN DEBT OBLIGATIONS: 1.5%
CANADA: 1.5%
Province of Manitoba 7.500% 02/22/2010 80,000 83,071
Province of Manitoba - Yankee 5.500% 10/01/2008 20,000 18,210
Province of Ontario 7.750% 06/04/2002 45,000 45,779
Province of Saskatchewan -
Yankee 7.375% 07/15/2013 20,000 20,383
------------
167,443
------------
TOTAL SOVEREIGN DEBT OBLIGATIONS (COST - $166,633) 167,443
------------
<CAPTION>
PREFERRED STOCKS: 1.2% SHARES
----------
<S> <C> <C> <C> <C>
SPG Properties, Inc. (REIT)
(Cost - $128,771) 7.890% 3,100 132,428
<CAPTION>
ASSET BACKED SECURITIES: 26.4% PAR/FACE
----------
<S> <C> <C> <C> <C>
Americredit Automobile
Receivables Trust, Ser. 2000 7.050% 02/12/2005 $ 70,000 70,493
Americredit Automobile
Receivables Trust, Ser.
2000-A, Class A3 7.150% 08/12/2004 170,000 171,083
Asset Securitization Corp., Ser.
1996-MD6, Class A 6.880% 11/13/2026 150,000 149,789
Bay View Auto Trust, Ser.
2000-LJ1, Class A4 7.640% 11/25/2010 205,000 208,073
Chemical Master Credit Card
Trust I, Ser. 1996-1, 5.550% 09/15/2003 190,000 189,534
Citicorp Lease, Ser. 1999-1,
Class A1 (144A) 7.220% 06/15/2005 95,625 95,883
Contimortgage Home Equity Loan
Trust, Ser. 1996-2, Class A8 7.900% 07/15/2027 225,000 227,322
DaimlerChrysler Auto Trust, Ser.
2000-A, Class A3 7.090% 12/06/2003 225,000 226,219
EQCC Home Equity Loan Trust,
Ser. 1999-3, Class A7 7.448% 08/25/2030 188,560 189,191
Falcon Franchise Loan LLC, Ser.
2000-1, Class A1 7.382% 10/05/2010 139,269 139,269
GS Mortgage Securities Corp.,
Ser. 1997-GL Class A2A 6.940% 07/13/2030 41,693 41,563
LB Commercial Conduit Mortgage,
Ser. 1998-C4 Class A1A 5.870% 08/15/2006 178,420 172,457
Northwest Airlines Corp., Ser.
1999-3, Class C 9.152% 04/01/2010 47,007 47,454
Northwest Airlines Corp., Ser.
1999-3, Class G 7.935% 10/01/2020 49,278 50,072
Olympic Automobile Receivables
Trust, Ser. 1996-D, Class A5 6.250% 11/15/2004 260,000 259,072
Olympic Automobile Receivables
Trust, Ser. 1997-A, Class A5 6.800% 02/15/2005 170,000 169,995
Pemex Finance Ltd., Ser. 2000-1,
Class A1 (144A) 9.030% 02/15/2011 35,000 36,627
Scotia Pacific Co. LLC, Ser. B,
Class A-2 7.110% 01/20/2014 55,000 46,526
UCFC Home Equity Loan, Ser.
1997-A1, Class A6 7.435% 11/15/2024 170,000 171,125
UCFC Home Equity Loan, Ser.
1997-D, Class A5 6.755% 11/15/2023 85,000 83,314
WFS Financial Owner Trust, Ser.
2000-C, Class A3 7.070% 02/20/2005 210,000 211,646
------------
TOTAL ASSET BACKED SECURITIES (COST - $2,938,379) 2,956,707
------------
</TABLE>
12
<PAGE>
SAMCO FUNDS, INC.
<TABLE>
<CAPTION>
SAMCO Intermediate Fixed Income Fund
PORTFOLIO OF INVESTMENTS (CONTINUED)
COUPON
OCTOBER 31, 2000 RATE MATURITY PAR/FACE VALUE (A)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS: 6.6%
Investors Bank & Trust Company
Repurchase Agreement, in the
amount of $693,637: Issued
10/31/2000 (collateralized by
$721,004 par of FNMA
Pool # 330136, 7.500% due
2/01/2010 with a market value
of $728,214) 5.690% 11/01/2000 $ 693,528 $ 693,528
Treasury Bill* 6.095% 12/07/2000 50,000 49,712
------------
TOTAL SHORT-TERM INVESTMENTS (COST - $743,240) 743,240
------------
TOTAL INVESTMENTS: 102.2% (COST - $11,369,594) 11,454,752
LIABILITIES, NET OF OTHER ASSETS: (2.2%) (248,082)
------------
NET ASSETS: 100.0%
Applicable to 1,125,205 outstanding $.001 par value shares
(Authorized 350,000,000 for the Class A shares) $ 11,206,670
============
Net Asset Value, Offering and Redemption Price Per Share $ 9.96
============
</TABLE>
Summary of Abbreviations
* Coupon rate shown represents yield to maturity at date of purchase.
(a) See note 2 to the Financial Statements
144A Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified buyers. At October 31, 2000,
the aggregate value of the securities is $1,022,386 or 9.1% of the net
assets.
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FRN Floating Rate Note
MTN Medium-Term Note
REIT Real Estate Investment Trust
Yankee U.S. dollar denominated security issued by a non-U.S. company in the
U.S.
See Notes to the Financial Statements.
13
<PAGE>
SAMCO FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Aggregate Intermediate
Fixed Income Fixed Income
Fund Fund
-------------- --------------
<S> <C> <C>
ASSETS
Investments, at value (cost of
$72,968,394 and $11,369,594,
respectively)(Note 2 and 5) $ 73,175,089 $ 11,454,752
Receivable for securities sold 1,148,732 399,346
Interest receivable 547,830 133,526
Receivable from investment advisor 10,263 20,239
Receivable for when-issued securities 10,189,378 -
Deferred organization costs 41,623 -
-------------- --------------
Total assets 85,112,915 12,007,863
-------------- --------------
LIABILITIES
Payable for securities purchased 986,547 711,003
Dividends payable 318,076 56,935
Payable for when-issued securities 25,675,586 -
Accrued expenses and other liabilities 33,734 33,255
-------------- --------------
Total liabilities 27,013,943 801,193
-------------- --------------
NET ASSETS $ 58,098,972 $ 11,206,670
============== ==============
SHARES OUTSTANDING 6,012,785 1,125,205
============== ==============
NET ASSET VALUE PER SHARE $ 9.66 $ 9.96
============== ==============
COMPOSITION OF NET ASSETS
Paid-in capital $ 60,309,413 $ 11,249,518
Accumulated undistributed net investment
income 101,788 8,197
Net accumulated realized loss on
investments (2,518,924) (136,203)
Net unrealized appreciation on
investments 206,695 85,158
-------------- --------------
Net assets applicable to capital
stock outstanding $ 58,098,972 $ 11,206,670
============== ==============
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
14
<PAGE>
SAMCO FUNDS, INC.
STATEMENTS OF OPERATIONS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Aggregate Intermediate
Fixed Income Fixed Income
Fund Fund
-------------- --------------
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 128,151 $ 8,487
Interest income 3,839,144 743,298
-------------- --------------
Total income 3,967,295 751,785
-------------- --------------
EXPENSES
Investment advisory fees (Note 3) 140,794 27,298
Administration fees (Note 3) 41,123 9,432
Legal fees 37,393 3,660
Audit fees 23,999 21,000
State registration filing fees 7,025 974
Custodian fees 42,508 23,467
Amortization of organizational costs 18,830 -
Transfer agent fees 3,023 370
Insurance expense 7,812 2,386
Directors fees 27,895 5,679
Miscellaneous fees and expenses 4,254 1,745
-------------- --------------
Total operating expenses 354,656 96,011
Waiver of investment advisory and
administration fees and reimbursement
of other expenses (102,502) (47,281)
-------------- --------------
Net expenses 252,154 48,730
-------------- --------------
Net investment income 3,715,141 703,055
-------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on investments (634,764) (59,810)
Net change in unrealized appreciation
(depreciation) on investments 592,662 99,226
-------------- --------------
Net realized and unrealized gain
(loss) on investments (42,102) 39,416
-------------- --------------
Net increase in net assets resulting
from operations $ 3,673,039 $ 742,471
============== ==============
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
15
<PAGE>
SAMCO FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Aggregate Fixed Income Fund Intermediate Fixed Income Fund
---------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 1999
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS
Net investment income $ 3,715,141 $ 2,773,279 $ 703,055 $ 219,337
Net realized loss on
investments (634,764) (1,848,785) (59,810) (76,393)
Net change in unrealized
appreciation (depreciation)
of investments 592,662 (474,264) 99,226 (14,068)
-------------- -------------- -------------- --------------
Net increase in net assets
resulting from operations 3,673,039 450,230 742,471 128,876
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (3,692,482) (2,731,435) (702,602) (211,593)
From net realized gains on
investments - (508,624) - -
-------------- -------------- -------------- --------------
Total distributions to
shareholders (3,692,482) (3,240,059) (702,602) (211,593)
CAPITAL SHARE TRANSACTIONS
(NOTE 6) 1,833,390 15,176,143 240,536 11,008,982
-------------- -------------- -------------- --------------
Total increase in net assets 1,813,947 12,386,314 280,405 10,926,265
NET ASSETS
Beginning of year 56,285,025 43,898,711 10,926,265 -
-------------- -------------- -------------- --------------
End of year $ 58,098,972 $ 56,285,025 $ 11,206,670 $ 10,926,265
============== ============== ============== ==============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF YEAR $ 101,788 $ 79,129 $ 8,197 $ 7,744
============== ============== ============== ==============
</TABLE>
--------------------------------------------------------------------------------
See Notes to the Financial Statements
16
<PAGE>
SAMCO FUNDS, INC.
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Aggregate Fixed Income Fund
-------------------------------------------
YEAR ENDED OCTOBER 31, FOR THE PERIOD FROM
---------------------- DECEMBER 30, 1997*
2000 1999 TO OCTOBER 31, 1998
---------- ---------- -------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 9.67 $ 10.26 $ 10.00
------- ------- -------
INVESTMENT OPERATIONS
Net investment income 0.63 0.56 0.21
Net realized and unrealized gain
(loss) on investments (0.02) (0.48) 0.46
------- ------- -------
Total increase from investment
operations 0.61 0.08 0.67
------- ------- -------
DISTRIBUTIONS
From net investment income (0.62) (0.56) (0.41)
From net realized gains on
investments -- (0.11) --
------- ------- -------
Total distributions (0.62) (0.67) (0.41)
------- ------- -------
Net asset value, end of year $ 9.66 $ 9.67 $ 10.26
======= ======= =======
TOTAL RETURN (a) 6.63% 0.80% 6.87% (b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $58,099 $56,285 $43,899
Ratio of net expenses to average
net assets 0.45% 0.45% 0.45% (c)
Ratio of expenses to average net
assets (before expense waivers
and reimbursement of other
expenses) 0.63% 0.71% 1.03% (c)
Ratio of net investment income to
average net assets 6.57% 5.78% 5.17% (c)
Portfolio turnover rate 522% 562% 478% (b)
</TABLE>
--------------------------------------------------------------------------------
(a) Total return would have been lower had certain expenses not been
waived or reimbursed
(b) Not annualized
(c) Annualized
* Commencement of investment operations
See Notes to the Financial Statements
17
<PAGE>
SAMCO FUNDS, INC.
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Intermediate Fixed Income Fund
-------------------------------------
FOR THE PERIOD FROM
YEAR ENDED JUNE 30, 1999*
OCTOBER 31, 2000 TO OCTOBER 31, 1999
---------------- -------------------
<S> <C> <C>
Net asset value, beginning of year $ 9.92 $ 10.00
------- -------
INVESTMENT OPERATIONS
Net investment income 0.64 0.20
Net realized and unrealized gain (loss)
on investments 0.04 (0.09)
------- -------
Total increase from investment
operations 0.68 0.11
------- -------
DISTRIBUTIONS
From net investment income (0.64) (0.19)
------- -------
Total distributions (0.64) (0.19)
------- -------
Net asset value, end of year $ 9.96 $ 9.92
======= =======
TOTAL RETURN (a) 7.08% 1.13% (b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $11,207 $10,926
Ratio of net expenses to average net
assets 0.45% 0.45% (c)
Ratio of expenses to average net assets
(before expense waivers and
reimbursement of other expenses) 0.88% 1.81% (c)
Ratio of net investment income to
average net assets 6.44% 5.93% (c)
Portfolio turnover rate 342% 117% (c)
</TABLE>
--------------------------------------------------------------------------------
(a) Total return would have been lower had certain expenses not been
waived or reimbursed
(b) Not Annualized
(c) Annualized
* Commencement of investment operations
See Notes to the Financial Statements
18
<PAGE>
SAMCO FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION
SAMCO Funds, Inc. (the "Fund") was organized as a Maryland corporation on August
4, 1997 and is registered under the Investment Company Act of 1940, as amended,
as an open-end, non-diversified management investment company. The Company
currently has two active portfolios, the SAMCO Aggregate Fixed Income Fund (the
"Aggregate Fixed Income Fund") which commenced operations on December 30, 1997,
and the SAMCO Intermediate Fixed Income Fund (the "Intermediate Fixed Income
Fund") which commenced operations on June 30, 1999, (each a "Portfolio",
collectively, the "Portfolios"). Prior to June 10, 1999, the Aggregate Fixed
Income Fund was named the SAMCO Fixed Income Portfolio. The unamortized balance
of organizational expenses at October 31, 2000 for the Aggregate Fixed Income
Fund was $41,623. In the event that any of the initial 10,000 shares (the
"Initial Shares") purchased by Seix Investment Advisors Inc. (the "Investment
Adviser") are redeemed during the amortization period, the Aggregate Fixed
Income Fund will be reimbursed by the Investment Adviser for any remaining
unamortized costs in the same proportion as the number of Initial Shares
redeemed bears to the total number of Initial Shares outstanding at the time of
the redemption.
INVESTMENT OBJECTIVE
The Aggregate Fixed Income Fund is designed to provide investors with a total
return, which consistently exceeds the total return of the broad U.S. investment
grade bond market. Performance is measured against the Lehman Brothers Aggregate
Bond Index. The Intermediate Fixed Income Fund is designed to provide investors
with a total return, which consistently exceeds the total return of the
intermediate portion of the broad U.S. investment grade bond market. Performance
is measured against the Lehman Brothers Intermediate Government/Corporate Index.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Fund are in conformity with generally accepted
accounting principles ("GAAP") for investment companies. The following is a
summary of the Funds significant accounting policies:
ESTIMATES
The preparation of financial statements in accordance with GAAP requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
VALUATION
All investments are valued daily at their market price, which results in
unrealized gain or losses. Readily marketable fixed-income securities are valued
on the basis of prices provided by a pricing service when such prices are
believed by the Investment Adviser to reflect the fair value of such securities.
Securities traded on an exchange are valued at their last sales price on that
exchange. Securities for which over-the-counter market quotations are available
are valued at the latest bid price. Securities for which market quotations are
not readily available will be valued in good faith by methods approved by the
Board of Directors. Short-term securities purchased with sixty days or less
remaining to maturity are valued at amortized cost, which approximates market
value.
SECURITIES TRANSACTIONS
Securities transactions are recorded on a trade date basis. The Portfolios use
the specific identification method for determining gain or loss on sales of
securities.
INCOME
Interest income is recorded on an accrual basis. Dividend income is recorded on
the ex-dividend date. The Portfolios accrete discounts or amortize premiums
using the yield-to-maturity method on a daily basis, except for securities
having a maturity date of less than sixty days at the time of acquisition. Such
securities are amortized on a straight-line basis.
19
<PAGE>
SAMCO FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAX
There is no provision for Federal income or excise tax since the Portfolios
intend to qualify as regulated investment companies ("RICs") by complying with
the requirements of Subchapter M of the Internal Revenue Code applicable to RICs
and to distribute all of their taxable income.
DIVIDENDS TO SHAREHOLDERS
It is the policy of the Portfolios to declare and pay dividends from net
investment income monthly. Dividends from net short-term capital gains and net
long-term capital gains, if any, are normally declared and paid annually, but
the Portfolios may make distributions on a more frequent basis to comply with
the distribution requirements of the Internal Revenue Code. To the extent that a
net realized capital gain can be reduced by a capital loss carryover, such gain
will not be distributed.
Income and capital gain distributions are determined in accordance with federal
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment, temporary differences do not require such
reclassification.
OPERATING EXPENSES
Expenses are recorded on an accrual basis. Expenses specifically identifiable to
a particular Portfolio are borne by that Portfolio. Other expenses are allocated
to each Portfolio based on its net assets in relation to the total net assets of
both portfolios or on another reasonable basis.
ORGANIZATION EXPENSES
The costs incurred by the Fund in connection with the organization and initial
registration of shares are being amortized on a straight-line basis by the
Aggregate Fixed Income Fund over a sixty-month period beginning with the
commencement of its investment operations on December 30, 1997. On October 29,
1997, the Investment Adviser purchased 10,000 shares of common stock of the Fund
for an aggregate purchase price of $100,000.
3. SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER
The Fund's Board of Directors has approved an investment advisory agreement with
the Investment Adviser. For its services as Investment Adviser, each Portfolio
pays the Investment Adviser a monthly fee at an annual rate of 0.25% of its
average daily net assets.
The Investment Adviser has voluntarily agreed to limit the total expenses of the
Aggregate Fixed Income Fund and the Intermediate Fixed Income Fund (excluding
interest, taxes, brokerage and extraordinary expenses) to annual rates of 0.45%
of their average daily net assets. During the period ended October 31, 2000, the
Investment Adviser voluntarily waived $102,502 and $27,298 of advisory fees, and
reimbursed $0 and $19,983 for other expenses which are due from the Investment
Adviser, for the Aggregate Fixed Income Fund and the Intermediate Fixed Income
Fund, respectively.
ADMINISTRATOR
Pursuant to its Administration Agreement, Investors Bank & Trust Company (the
"Administrator"), earns a fee for providing fund administration services to the
Portfolios. Under this agreement, the Fund incurred $50,555 in administration
fees for the period ended October 31, 2000.
20
<PAGE>
SAMCO FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
3. SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES (CONTINUED)
DIRECTORS
Directors' fees of $22,813 and $4,387 were paid by the Aggregate Fixed Income
Fund and the Intermediate Fixed Income Fund, respectively, for the year ended
October 31, 2000 to Directors who are not employees of the Investment Adviser.
Directors who are not employees of the Investment Adviser received an annual
retainer of $2,000, payable quarterly and $1,000 per meeting attended.
4. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of investments, other than short-term
investments, for the year ended October 31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------------------------------- ---------------------------------
PORTFOLIO U.S. GOVERNMENT OTHER SECURITIES U.S. GOVERNMENT OTHER SECURITIES
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Aggregate Fixed Income Fund $287,698,614 $70,659,396 $282,241,851 $68,793,600
Intermediate Fixed Income Fund 21,789,646 14,048,429 21,782,011 13,820,117
</TABLE>
The components of net unrealized appreciation of investments for federal tax
purposes at October 31, 2000 for the Portfolios are as follows:
<TABLE>
<CAPTION>
COST FOR FEDERAL
PORTFOLIO APPRECIATION DEPRECIATION NET APPRECIATION TAX PURPOSES
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
Aggregate Fixed Income Fund $438,617 $(242,618) $195,999 $72,979,090
Intermediate Fixed Income Fund 98,863 (14,340) 84,523 11,370,229
</TABLE>
For federal income tax purposes at October 31, 2000, the Aggregate Fixed Income
Fund and the Intermediate Fixed Income Fund had capital loss carryovers of
$2,508,775 and $135,568, respectively. These amounts, if not applied against any
future net securities profits realized subsequent to October 31, 2000, will
expire in fiscal 2007 ($1,855,084 and $69,416, respectively) and fiscal 2008
($653,691 and $66,152, respectively).
5. REPURCHASE AGREEMENTS
The Portfolios may enter into repurchase agreements under which a bank or
securities firm that is a primary or reporting dealer in U.S. Government
securities agrees, upon entering into a contract, to sell U.S. Government
securities to the Portfolios and repurchase such securities from the Portfolios
at a mutually agreed upon price and date.
The Portfolios will engage in repurchase transactions with parties selected on
the basis of such party's creditworthiness. The collateral on repurchase
agreements must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the Portfolios will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral is
not met, or the seller defaults on its repurchase obligation, the Portfolios
maintain the right to sell the underlying securities at market value and may
claim any resulting loss against the seller. However, in the event of default or
bankruptcy by the counterparty to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.
21
<PAGE>
SAMCO FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Transactions in capital stock for the Aggregate Fixed Income Fund were as
follows for the periods indicated:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
--------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
---------------------------------------------
Shares Sold 412,910 $ 3,965,375 1,789,540 $17,634,566
Shares Reinvested 331,855 3,163,067 299,470 2,969,916
Shares Redeemed (553,972) (5,295,052) (547,552) (5,428,339)
---------------------------------------------
NET INCREASE 190,793 $ 1,833,390 1,541,458 $15,176,143
=============================================
</TABLE>
Transactions in capital stock for the Intermediate Fixed Income Fund were as
follows for the period indicated:
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
YEAR ENDED JUNE 30, 1999* TO
OCTOBER 31, 2000 OCTOBER 31, 1999
----------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
-----------------------------------------
Shares Sold - $ - 1,100,898 $11,008,982
Shares Reinvested 24,307 240,536 - -
Shares Redeemed - - - -
-----------------------------------------
NET INCREASE 24,307 $240,536 1,100,898 $11,008,982
======= ======== ========= ===========
</TABLE>
* Commencement of investment operations
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
CHANGE IN AUDITOR
For the fiscal year ended October 31, 1999 and for previous years, Ernst & Young
LP ("E&Y") served as independent auditor for SAMCO Funds, Inc. (the "Fund"). On
December 15, 1999, the Board of Directors and the Audit Committee of the Fund
approved a change in the independent auditor by selecting Deloitte & Touche LLP
("D&T") as independent auditor for the fiscal year ended October 31, 2000. The
Board's selection of D&T did not result from any dispute between the Fund and
E&Y, and E&Y's reports for the last two fiscal years did not contain any adverse
opinion or disclaimer of opinion and were not qualified or modified as to
uncertainty, audit scope or accounting principles. During the two fiscal years
ended October 31, 1999 and during the period prior to the selection of D&T,
there was no disagreement between E&Y and the Fund on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure. During the two fiscal years ended October 31, 1999 and during the
period prior to the selection of D&T, there were no reportable events as defined
by Item 304 (a) (1) (v) of Regulation S-K and the Fund has not consulted D&T
regarding any matter defined in Item 304 (a) (2) of Regulation S-K prior to
their engagement.
22
<PAGE>
SAMCO FUNDS, INC.
INDEPENDENT AUDITORS REPORT
--------------------------------------------------------------------------------
Shareholders and Board of Directors
SAMCO Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of SAMCO Funds, Inc. (comprising the SAMCO
Aggregate Fixed Income Fund and SAMCO Intermediate Fixed Income Fund) (the
"Funds") as of October 31, 2000, the related statements of operations, the
statements of changes in net assets and financial highlights for the year then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial statements of the funds for the year ended October 31,
1999 and the financial highlights for the period then ended and the period ended
October 31, 1998 were audited by other auditors whose report dated December 7,
1999, expressed an unqualified opinion thereon.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of October 31, 2000, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds at October 31, 2000 , and the results of their operations, the changes in
their net assets, and the financial highlights for the stated periods, in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
New York, New York
December 1, 2000
23
<PAGE>
SAMCO FUNDS, INC.
FEDERAL TAX INFORMATION (UNAUDITED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
The information necessary to complete your income tax returns will be
included with your Form 1099 DIV which will be sent to you separately in
January 2001.
24
<PAGE>
SAMCO FUNDS, INC.
OFFICERS & DIRECTORS AND OTHER PERTINENT INFORMATION
OCTOBER 31, 2000
--------------------------------------------------------------------------------
OFFICERS AND DIRECTORS
Christina Seix
CHAIRMAN AND DIRECTOR
OF THE FUND
John G. Talty
DIRECTOR AND PRESIDENT
OF THE FUND
C. Alan MacDonald
DIRECTOR OF THE FUND
John E. Manley, Sr.
DIRECTOR OF THE FUND
John R. O'Brien
DIRECTOR OF THE FUND
Peter J. Bourke
DIRECTOR AND VICE PRESIDENT
OF THE FUND
William E. Vastardis
TREASURER OF THE FUND
Jeffrey J. Gaboury
ASSISTANT TREASURER
OF THE FUND
Cynthia Surprise
SECRETARY OF THE FUND
Sandra I. Madden
ASSISTANT SECRETARY
OF THE FUND
INVESTMENT ADVISER
Seix Investment Advisors Inc.
300 Tice Blvd.
Woodcliff Lake, NJ 07675
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road
Suite 261 E
Phoenix, AZ 85018
ADMINISTRATOR, CUSTODIAN AND FUND
ACCOUNTING AGENT
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
TRANSFER AND DIVIDEND DISBURSING AGENT
Investors Bank & Trust Company
P.O. Box 9130
Boston, MA 02117
LEGAL COUNSEL
Dechert
1500 K Street, N.W.
Washington, D.C. 20005-1208
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
