FORM N-SAR
ANNUAL REPORT
FOR REGISTERED INVESTMENT COMPANIES
Registrant Name BDI INVESTMENT CORPORATION
File Number 811-3868
Registrant CIK Number: 0000014343
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Report as of the end of semiannual period: / / (a)
or fiscal year: 07/01/2000 (b)
Is this a transition report? (Y or N): N
Is this form being completed by the registrant? (Y or N): Y
Is this an amendment to a previous filing? (Y or N): N
Is this a change to a previous filing? (Y or N): N
1.A) Registrant Name: BDI INVESTMENT CORPORATION
B) File Number: 811-3868
C) Telephone Number: 8587946300
2.A) Street: 990 HIGHLAND DRIVE, SUITE 100
B) City: SOLANA BEACH
C) State: CA
D) Zip Code: 92075 Zip Ext.: 2472
E) Foreign Country: Foreign Postal Code:
3. Is this the first filing on this form by the Registrant?(Y or N) -------- N
4. Is this the last filing on this form by the Registrant?(Y or N) --------- N
5. Is Registrant a small business investment company (SBIC)?(Y or N) ---- N
6. Is Registrant a unit investment trust (UIT)?(Y or N) ---------------------- N
7.A) Is Registrant a series or multiple portfolio company?(Y or N) -------- N
B) How many separate series or portfolios did Registrant have
at the end of the period? --------------------------------------------- 0
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22. Registrant's portfolio transactions with entities acting as principals:
List the 10 entities acting as principals with whom Registrant did the largest
amount of portfolio transactions (include all short-term obligations, and U.S.
Gov't. & tax-free securities) in both the secondary market & in underwritten
offerings set forth in order of size based upon total value of principal
transactions during the current reporting period: (000's omitted)
Registrant Registrant
Name of Entity IRS Number Purchases Sales
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
23. Aggregate principal purchase/sale transactions of Registrant during current
reporting period. (000's omitted)
C. Total Purchases: 0 D. Total Sales: 0
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62.A) Does the Registrant/Series invest primarily in This page being
debt securities, including convertible debt filed for series 0.
securities, options & futures on debt
securities or indices of debt securities? (Y or N) ----------- Y
NOTE: If answer is 'N' (No), jump to Screen Number 30.
If answer is 'Y' (Yes), state the percentage of net assets
in each type at the end of the current period:
SHORT-TERM MATURITIES
B) U.S. Treasury 0.0% C) U.S. Government Agency 0.0%
D) Repurchase agreements 0.0% F) Bank Certificates of
E) State and Municipal tax-free 0.0% deposit-Domestic 0.0%
G) Bank Certificates of deposit-Foreign 0.0% H) Bankers acceptances 0.0%
I) Commercial paper taxable 0.0% J) Time deposits 0.0%
K) Options 0.0% L) All other 0.0%
INTERMEDIATE & LONG-TERM MATURITIES
M) U.S. Treasury 0.0% N) U.S. Government Agency 0.0%
O) State and Municipal tax-free 97.6% P) Corporate 0.0%
Q) All other 2.4%
R) Investments other than debt securities 0.0%
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This page being filed
for series 0.
63. State the dollar weighted average portfolio maturity at the end of the
period covered by this report in days or, if longer than 1 yr.,
in years to one decimal place: A: 0 days
B: 4.7 years
66.A) Is the Registrant/Series a fund that
usually invests in equity securities,
options & futures on equity securities,
indices of equity securities or securities
convertible into equity securities? ----------------------------------- N
71. Portfolio turnover rate for the current
reporting period
A) Purchases ($000's omitted) ---------------------------------- $ 984
B) Sales [including all maturities] ($000's omitted) ------------- $ 1459
C) Monthly average value of portfolio ($000's omitted) ----------- $ 13757
D) Percent turnover (use lesser of 71A) or 71B) divided by 71C)) 7.2%
FINANCIAL INFORMATION
72.A) How many months do the answers to 72 and 73 cover? ----------- 12 months
INCOME (000's omitted)
B) Net interest income ----------------------------------------- $ 754
C) Net dividend income ----------------------------------------- $ 5
D) Account maintenance fees ------------------------------------ $ 0
E) Net other income -------------------------------------------- $ 0
EXPENSES
F) Advisory fees ----------------------------------------------- $ 0
G) Administrator(s) fees --------------------------------------- $ 0
H) Salaries and other compensation ----------------------------- $ 0
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This page being
filed for series 0.
EXPENSES
($000's omitted)
72.I) Shareholder servicing agent fees ------------------- $ 6
J) Custodian fees ------------------------------------- $ 0
K) Postage -------------------------------------------- $ 0
L) Printing expenses ---------------------------------- $ 0
M) Directors' fees ------------------------------------ $ 13
N) Registration fees ---------------------------------- $ 0
O) Taxes ---------------------------------------------- $ 0
P) Interest ------------------------------------------- $ 0
Q) Bookkeeping fees paid to anyone
performing this service ---------------------------- $ 30
R) Auditing fees -------------------------------------- $ 10
S) Legal fees ----------------------------------------- $ 0
T) Marketing/distribution payments including
payments pursuant to a rule 12b-1 plan ------------- $ 0
U) Amortization of organization expenses -------------- $ 0
V) Shareholder meeting expenses ----------------------- $ 0
W) Other expenses ------------------------------------- $ 4
X) Total expenses ------------------------------------- $ 63
72.Y) Expense reimbursements ----------------------------- $ 0
Z) Net investment income ------------------------------ $ 696
AA) Realized capital gains ----------------------------- $ 12
BB) Realized capital losses ---------------------------- $ 0
CC) 1. Net unrealized appreciation during the period --- $ 0
2. Net unrealized depreciation during the period --- $ 278
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DD) 1. Total income dividends for which record date
passed during the period ------------------------ $ 704
2. Dividends for a second class of open-end
company shares -----------------------------------$ 0
EE) Total capital gains distributions for which
record date passed during the period --------------- $ 0
73. Distributions per share for which record date passed during the period:
NOTE: Show in fractions of a cent if so declared.
A) 1. Dividends from net investment income ------------ $ 0.4950
2. Dividends for a second class of open-end
company shares ---------------------------------- $ 0.0000
B) Distribution of capital gains ---------------------- $ 0.0000
C) Other distributions -------------------------------- $ 0.0000
As of the end of current reporting
74. Condensed balance sheet data: period (000's omitted except
for per share amounts)
A) Cash ----------------------------------------------- $ 637
B) Repurchase agreements ------------------------------ $ 0
C) Short-term debt securities other than
repurchase agreements ------------------------------ $ 0
D) Long-term debt securities including
convertible debt------------------------------------ $ 13405
E) Preferred, convertible preferred, and
adjustable rate preferred stock -------------------- $ 0
F) Common stock --------------------------------------- $ 0
G) Options on equities -------------------------------- $ 0
H) Options on all futures ----------------------------- $ 0
I) Other investments ---------------------------------- $ 0
J) Receivables from portfolio instruments sold -------- $ 0
K) Receivables from affiliated persons ---------------- $ 0
L) Other receivables ---------------------------------- $ 167
M) All other assets ----------------------------------- $ 0
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This page being
filed for series 0.
Condensed balance sheet data: As of the end of current reporting
period (000's omitted except for per
share amounts and number of accounts)
74.N) Total assets ------------------------------------------------- $ 14209
O) Payables for portfolio instruments purchased ----------------- $ 0
P) Amounts owed to affiliated persons --------------------------- $ 16
Q) Senior long-term debt ---------------------------------------- $ 0
R) Other liabilities: 1. Reverse repurchase agreements --------- $ 465
2. Short sales --------------------------- $ 0
3. Written options ----------------------- $ 0
4. All other liabilities ----------------- $ 465
S) Senior equity ----------------------------------------------- $ 0
T) Net assets of common shareholders --------------------------- $ 13728
U) 1. Number of shares outstanding ------------------------------ 1421551
2. Number of shares outstanding of a second class of shares
of open-end company --------------------------------------- 0
V) 1. Net asset value per share (to nearest cent) --------------- $ 9.65
2. Net asset value per share of a second class of open-end
company shares (to nearest cent) -------------------------- $ 0.00
W) Mark-to-market net asset value per share
for money market funds only (to 4 decimals) ------------------ $
X) Total number of shareholder accounts ------------------------ 205
Y) Total value of assets in segregated accounts ---------------- $ 0
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This page being filed
for series 0.
75. Average net assets during the current reporting period
($000's omitted). Answer only one:
A) Daily average (for money market funds) ----------------------- $ 0
B) Monthly average (for all other funds) ----------------------- $ 13,882
76. Market price per share at end of period (closed-end funds only) $ 0.00
77.A) Is the Registrant filing any of the following attachments
with the current filing of Form N-SAR? (ANSWER FOR ALL
SERIES AS A GROUP) (Y or N) ------------------------------- Y
NOTE: If answer is 'Y' (Yes), mark those items
below being filed as an attachment to this Filed as
form or incorporated by reference. Attachment
B) Accountant's report on internal control ------------------- Y
C) Matters submitted to a vote of security holders ------------
D) Policies with respect to security investment ---------------
E) Legal proceedings ------------------------------------------
F) Changes in security for debt -------------------------------
G) Defaults and arrears on senior securities ------------------
H) Changes in control of Registrant ---------------------------
I) Terms of new or amended securities -------------------------
J) Revaluation of assets or restatement of
capital share account -------------------------------------
K) Changes in Registrant's certifying account -----------------
L) Changes in accounting principles and practices -------------
M) Mergers ----------------------------------------------------
N) Actions required to be reported pursuant to Rule 2a-7 -----
O) Transactions effected pursuant to Rule 10f-3 -------------
P) Information required to be filed pursuant
to existing exemptive orders -------------------------------
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SIGNATURE
This report is signed on behalf of the registrant
City of: Solana Beach State of: California
Date: 8/29/00
Name of Registrant: BDI Investment Corporation
By: /s/ Arthur Brody Witness: /s/ Teresa Whorton
---------------- ------------------
Arthur Brody Teresa Whorton
President and Chief Treasurer
Executive Officer
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[LAVINE, LOFGREN, MORRIS & ENGELBERG, LLP LETTERHEAD]
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Board of Directors of
BDI Investment Corporation
In planning and performing our audit of the financial statements and financial
highlights of BDI Investment Corporation for the year ended July 1, 2000, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and financial highlights and
to comply with the requirements of Form N-SAR, not to provide assurance on the
internal control structure.
The management of BDI Investment Corporation is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of the inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standard established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements and financial
highlights being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. However,
we noted no matters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be material
weaknesses, as defined above, as of July 1, 2000.
This report is intended solely for the information and use of management of BDI
Investment Corporation and the Securities and Exchange Commission.
/s/ Lavine, Lofgren, Morris & Engelberg
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LAVINE, LOFGREN, MORRIS & ENGELBERG
July 27, 2000
