GRAND PRIX FUND
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STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
ASSETS:
Investments at value (cost $1,272,176) $ 1,268,014
Receivable for investments sold 280,798
Deferred organization costs, net 69,366
Due from Advisor 52,978
Prepaid expenses 15,743
Dividends and interest receivable 526
-----------
Total Assets 1,687,425
-----------
LIABILITIES:
Payable for investments purchased 329,322
Payable to Advisor 75,996
Accrued expenses 63,905
Accrued investment advisory fees 3,456
-----------
Total Liabilities 472,679
-----------
Net Assets $ 1,214,746
===========
NET ASSETS CONSIST OF:
Capital stock $ 1,011,135
Undistributed net realized gain on investments 207,773
Net unrealized depreciation of investments (4,162)
-----------
Net Assets $ 1,214,746
===========
CAPITAL STOCK, $0.01 par value, 500,000,000 shares
authorized Issued and outstanding 101,500
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE $ 11.97
===========
See notes to the financial statements.
GRAND PRIX FUND
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STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 1, 1998<F1> TO APRIL 30, 1998 (UNAUDITED)
INVESTMENT INCOME:
Interest $ 859
Dividends 594
-----------
1,453
-----------
EXPENSES:
Fund administration and accounting fees 21,744
Federal and state registration fees 6,881
Shareholder servicing fees 5,923
Amortization of organization costs 4,882
Legal fees 4,443
Reports to shareholders 4,284
Investment advisory fees 3,456
Custody fees 2,975
Audit fees 2,311
12b-1 distribution fees 864
Other 917
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Total expenses before reimbursement and waiver 58,680
Reimbursement and waiver of expenses by Advisor (52,978)
-----------
Net expenses 5,702
-----------
NET INVESTMENT LOSS
(4,249)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 208,157
Net unrealized depreciation of investments (4,162)
-----------
Net gain on investments 203,995
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NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $199,746
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<F1> Commencement of operations
See notes to the financial statements.
GRAND PRIX FUND
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STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JANUARY 1, 1998<F1> TO APRIL 30, 1998 (UNAUDITED)
OPERATIONS:
Net investment loss $ (4,249)
Net realized gain on investments 208,157
Net unrealized depreciation of investments (4,162)
-----------
Net increase in net assets resulting from operations 199,746
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CAPITAL SHARE TRANSACTIONS:
Proceeds from 91,500 shares issued 915,000
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TOTAL INCREASE IN NET ASSETS 1,114,746
NET ASSETS:
Beginning of period 100,000
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End of period $ 1,214,746
===========
<F1> Commencement of operations
See notes to the financial statements.
GRAND PRIX FUND
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FINANCIAL HIGHLIGHTS (UNAUDITED)
JANUARY 1,1998<F1>
TO APRIL 30, 1998
-------------------
Net asset value, beginning of period $ 10.00
Income (loss) from investment operations:
Net investment loss (0.04)
Net realized gains on investments 2.01
-----------
Total from investment operations 1.97
-----------
Net asset value, end of period $ 11.97
===========
Total return <F2> 19.70%
Supplemental data and ratios:
Net assets, end of period $1,214,746
Ratio of net expenses to average net assets <F3><F4> 1.65%
Ratio of net investment income to average net assets <F3><F4> (1.24)%
Portfolio turnover rate 295.56%
<F1> Commencement of operations
<F2> Not annualized
<F3> Annualized
<F4> Net of reimbursements and waivers.
Without reimbursements and waivers, the ratio of
expenses to average net assets would have been
17.05%, and the ratio of net investment income to
average net assets would have been (16.64)%.
See notes to the financial statements.
GRAND PRIX FUND
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SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
NUMBER OF
SHARES VALUE
- ---------- ----------
COMMON STOCKS 99.97%
BEVERAGES 3.73%
1,200 Coca-Cola Enterprises, Inc. $ 45,300
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COMMERCIAL BANKS 12.05%
800 Crestar Financial Corp. 47,850
700 First Commercial Corp. 51,538
1,100 SouthTrust Corp. 46,956
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146,344
-----------
COMMERCIAL SERVICES 3.80%
850 Paychex, Inc. 46,166
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COMPUTER GRAPHICS 4.33%
1,450 Cadence Design Systems, Inc. <F1> 52,653
-----------
COMPUTER LOCAL NETWORKS 4.22%
700 Cisco Systems, Inc. <F1> 51,275
-----------
COMPUTER MINI/MICRO 3.99%
600 Intel Corp. 48,487
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COMPUTER SOFTWARE 19.96%
650 America Online, Inc. <F1> 52,000
500 BMC Software, Inc. <F1> 46,781
1,000 Compuware Corp. <F1> 48,875
900 Keane, Inc. <F1> 45,225
550 Microsoft Corp. <F1> 49,569
-----------
242,450
-----------
DRUGS 4.26%
1,050 ICN Pharmaceuticals, Inc. 51,712
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INSURANCE 8.33%
800 AFLAC, Inc. 52,000
800 American Bankers Insurance Group, Inc. 49,150
-----------
101,150
-----------
INVESTMENT MANAGEMENT 3.74%
850 Franklin Resources, Inc. 45,475
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RETAIL 11.59%
1,050 Fred Meyer, Inc. <F1> 47,119
1,100 Kohl's Corp. <F1> 45,444
800 Linens 'n Things, Inc. <F1> 48,200
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140,763
-----------
GRAND PRIX FUND
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SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
NUMBER OF
SHARES VALUE
- ---------- ----------
TELECOMMUNICATIONS EQUIPMENT 7.99%
600 Lucent Technologies, Inc. $ 45,675
1,200 WorldCom, Inc. <F1> 51,338
-----------
97,013
-----------
TELECOMMUNICATIONS SERVICES 3.42%
1,450 Nextel Communications, Inc. <F1> 41,597
-----------
UTILITIES - ELECTRIC 4.32%
950 The AES Corporation<F1> 52,428
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WASTE DISPOSAL 4.24%
1,050 USA Waste Services, Inc. <F1> 51,516
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Total Common Stocks (cost $1,218,490) 1,214,328
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PRINCIPAL
AMOUNT
- ----------
SHORT-TERM INVESTMENTS 4.42%
$ 53,686 Fountain Square U.S.
Treasury Obligation Fund 53,686
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Total Short-term Investments
(cost $53,686) 53,686
-----------
Total Investments (cost $1,272,176) 104.39% 1,268,014
-----------
Liabilities less Other Assets (4.39)% (53,268)
-----------
NET ASSETS 100% $1,214,746
===========
<F1> Non-income producing security
See notes to the financial statements
Grand Prix Fund
Notes to the Financial Statements
April 30, 1998
(1) Organization
The Grand Prix Funds, Inc. (the "Corporation") was incorporated on October
30, 1997 as a Maryland Corporation and is registered as an open-end
management investment company under the Investment Company Act of 1940 (the
"1940 Act"). The Corporation is authorized to issue its shares in series,
each series representing a distinct portfolio with its own investment
objectives and policies. The only series presently authorized is the Grand
Prix Fund (the "Fund") which commenced operations on January 1, 1998.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
(a) Investment Valuation
Securities which are traded on a recognized stock exchange are valued
at the last sale price on the securities exchange on which such
securities are primarily traded. Securities traded on only over-the-
counter markets are valued on the basis of closing over-the-counter
trade prices. Securities for which there were no transactions are
valued at the average of the latest bid and asked prices. Debt
securities (other than short-term instruments) are valued at prices
furnished by a pricing service. Debt instruments maturing within 60
days are valued by the amortized cost method. Any securities for
which market quotations are not readily available are valued at their
fair value as determined in good faith by Target Investors (the
"Advisor") pursuant to guidelines established by the Board of
Directors.
(b) Organization Costs
Costs incurred by the Fund in connection with its organization,
registration and the initial public offering of shares have been
deferred and will be amortized over the period of benefit, but not to
exceed five years from the date upon which the Fund commenced its
investment activities. If any of the original shares of the Fund
purchased by the initial shareholder are redeemed prior to the end of
the amortization period, the redemption proceeds will be reduced by
the pro rata share of the unamortized costs as of the date of
redemption. The pro rata share by which the proceeds are reduced will
be derived by dividing the number of original shares of the Fund being
redeemed by the total number of original shares outstanding at the
time of redemption.
(c) Federal Income and Excise Taxes
The Fund intends to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all investment company net taxable income and net
capital gains to shareholders in a manner which results in no tax cost
to the Fund. Therefore, no federal income or excise tax provision is
required.
(d) Distribution to Shareholders
Dividends from net investment income will be declared and paid
annually. Distributions of net realized gains, if any, will be
declared at least annually. Distributions to shareholders are
recorded on the ex-dividend date. The Fund may periodically make
reclassifications among certain of its capital accounts as a result of
the recognition and characterization of certain income and capital
gain distributions determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting
principals. Accordingly, at April 30, 1998, reclassifications were
recorded to decrease undistributed net investment loss by $4,249,
decrease undistributed net realized gain on investments by $384, and
decrease capital stock by $3,865.
(e) Securities Transactions and Investment Income
Investment transactions are recorded on the trade date plus one. The
Fund determines the gain or loss realized from investment transactions
by comparing the original cost of the security lot sold with the net
sale proceeds. Dividend income is recognized on the ex-dividend date
and interest income is recognized on an accrual basis. Acquisition
and market discounts will be amortized over the life of the security.
(3) Investment Transactions
The aggregate purchases and sales of securities, excluding short-term
investments and U.S. government obligations, for the Fund for the period
January 1, 1998 to April 30, 1998 are summarized below. There were no
purchases of long-term U.S. government securities.
Purchases $3,542,387
Sales $2,532,054
At April 30, 1998, gross unrealized appreciation and depreciation of
investments, based on cost for federal income tax purposes of $1,272,176,
were as follows:
Unrealized appreciation $26,679
Unrealized depreciation (30,841)
---------
Net unrealized depreciation
of investments $ (4,162)
=========
(4) Investment Advisor
The Fund has an agreement with the Advisor, with whom certain officers and
directors of the Fund are affiliated, to furnish investment advisory
services to the Fund. Under the terms of this agreement, the Advisor is
compensated annually at 1.00% of average daily net assets of the Fund. For
the fiscal year ending October 31, 1998, the Advisor has agreed to waive
its management fee and/or reimburse the Fund's operating expenses
(exclusive of brokerage, interest, taxes and extraordinary expenses) to the
extent necessary to ensure that the Fund's total operating expenses do not
exceed 1.65% of the Fund's average daily net assets. During the period
ended April 30, 1998, the Advisor waived and reimbursed the Fund for
expenses totaling $52,978.
(5) Distribution Plan
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-
1 under the 1940 Act. Under the Plan, the Fund is authorized to pay
expenses incurred for the purpose of financing activities, including the
employment of other dealers, intended to result in the sale of shares of
the Fund at an annual rate of up to 0.25% of the Fund's average daily net
assets. As of April 30, 1998, there have not been any payments made under
the Plan.
