PRESIDENTS MESSAGE
FUNDS' INVESTMENT HIGHLIGHTS
FUNDS' PORTFOLIOS
FINANCIAL INFORMATION
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
PRESIDENT'S MESSAGE
[PHOTO, WILLIAM PAPESH, PRESIDENT, COMPOSITE FUNDS]
Thanks to a generally robust market and careful investing by our Adviser,
Composite Research & Management Company, each of the three funds in our equity
sector showed positive results for the six-month period ended April 30, 1995.
Total return for this period to Class A shareholders, for example, was
8.81% from Bond & Stock Fund, 7.81% from Growth & Income Fund, and 8.38% from
Northwest 50 Fund. Total return is a measurement of change in the value of an
investment and assumes reinvestment of dividends and capital gains. The above
returns do not include the initial sales charge. For a more complete disclosure
of performance, please be sure to read the Investment Highlights section of this
report which includes returns to Class B shareholders and the effect of maximum
sales charges to both classes.
Clearly, the economy has shifted into a slower growth mode and various
inflation indicators continue to report good news. As a consequence the stock
market has responded strongly. Indeed, as I write to you, various market indices
are near all-time highs. While we have no way of knowing whether this trend will
continue short term - no one does - we have a decidedly positive outlook on the
longer term. Demographic trends appear favorable, and we see continued slower
growth and low inflation.
Given our focus on high-quality investments, we believe that long-term
investors will be rewarded appropriately. Based on most fundamental measures,
equity markets are selling at historically high levels so I would urge that you
continue to take a conservative approach to investing, and become neither overly
euphoric nor overly disappointed with short-term performance. Our funds are
designed for investors, not speculators.
I want to call your attention to the renaming of Composite Growth Fund to
Composite Growth & Income Fund. Your directors believed that this step should be
taken given the investment objectives of the Fund and the importance of income
in reaching those objectives.
Finally, I want to note a change in your board. Janet H. Skadan resigned
from the Composite Group board in mid-December after making a valuable
contribution for nearly a decade. We are most appreciative of her stewardship.
She has been replaced by Kristianne Blake, president of a Spokane-based
accounting services firm. Mrs. Blake, a certified financial planner as well as a
certified public accountant, brings a depth of experience and widely
acknowledged respect to this assignment. We're delighted to have her aboard.
As always, we appreciate your business and the trust you place in us to
provide longer-term investment benefits, consistent with the objectives of the
funds you own.
William G. Papesh
President
INVESTMENT HIGHLIGHTS
COMPOSITE BOND & STOCK FUND
In the volatile markets that characterized the six-month period ended April
30, 1995, Composite Bond & Stock Fund delivered positive returns as reflected in
the accompanying table. The Fund's conservative approach served investors
particularly well in the weak stock market of last November and December.
Subsequently, as interest rates began to decline and the markets appreciated,
the prices of the Fund's many interest rate-sensitive holdings moved up nicely.
Equity securities, which include common stocks as well as convertible bonds
and preferred stocks, comprised the majority of the Fund's holdings.
The Fund benefited from strong performance in consumer non-durables, health
care and capital goods. Other investors began to appreciate the stability of
consumer non-durable and health care companies during the period, while many
capital goods companies continued to perform well. Our investment in most
economically sensitive industries remains low, since we believe a significant
slowing in economic activity may produce earnings disappointments later this
year. The Fund's investments in electric and gas utilities, banks, and real
estate investment trusts generally underperformed the strong stock market of the
past six months. We continue to favor the outlook for selected electric and gas
utilities and believe those high-quality companies in the Fund should do well in
a slowing economy.
Our fixed income strategy also had us well positioned to take advantage of
the decline in interest rates that took place in the past six months. At the
beginning of the fiscal year, the Fund's bond portfolio had an average maturity
longer than the benchmark Lehman Brothers Government/Corporate Bond Index. We
felt this important because longer maturities generate higher appreciation when
interest rates decline. We also had a higher proportion of the Fund invested in
corporate and mortgage-backed issues which, although involving a greater degree
of risk, outperformed Treasury bonds of similar maturity during the period.
Since its inception in 1939, the Fund's objectives have remained unchanged:
to provide continuity of income, conservation of principal, and long-term growth
of both income and principal. We seek to accomplish these objectives by holding
a well-diversified portfolio of both high-quality stocks and bonds. And in order
to help insulate investors from the loss of purchasing power, we are committed
to holding the stocks of companies with attractive valuations whose potential
for dividend growth is well above the rate of inflation.
<TABLE>
FUND PERFORMANCE
PERIODS ENDED 4/30/95
SIX MONTHS
<CAPTION>
CLASS A CLASS B
SHARES SHARES
TOTAL RETURN ------- -------
<S> <C> <C>
With sales charge ......................... 3.91% 5.43%
Without sales charge ...................... 8.81% 8.43%
PER SHARE
Dividends ................................. $ .258 $ .198
Capital gains ............................. $ .083 $ .083
NET ASSET VALUES
Beginning ................................. $ 11.53 $ 11.51
Ending .................................... $ 12.18 $ 12.18
AVERAGE ANNUAL TOTAL RETURNS
<CAPTION>
WITH WITHOUT
CLASS A SALES SALES
SHARES CHARGE CHARGE
- ------- ------ -------
<S> <C> <C>
One Year ................................... 5.93% 10.92%
Five Years ................................. 9.47% 10.48%
Ten Years .................................. 9.42% 9.93%
CLASS B
SHARES
- -------
ONE YEAR 7.06% . 10.06%
LIFE OF CLASS .............................. 6.93% 9.67%
(since 3/30/94)
<FN>
Reference to sales charges above based on the maximum 4.5% initial sales
charge for Class A shares or maximum 3% contingent deferred sales charge for
Class B shares. Information presented represents past performance which cannot
predict future results. Investment returns and principal values of Fund shares
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
</FN>
</TABLE>
INVESTMENT HIGHLIGHTS
COMPOSITE GROWTH & INCOME FUND
Composite Growth & Income Fund benefited by being 96% invested during a
period in which the stock market made all-time highs. The Fund's position in the
consumer nondurable, health care, and capital goods sectors experienced
particularly strong stock valuation increases during the period. The Fund's
utility and bank investments generally underperformed during this very strong
stock market of the past six months.
Looking ahead, the Fund intends to take advantage of an economy that will
likely slow down more than most investors believe. Because of this, we have an
overweighting in the health care and consumer staples industries, and an
underweighting in basic industry stocks, whose performance tends to be tied to
the economy. Additionally, Boeing, one of the Fund's largest positions and the
world's leader in the design and production of commercial aircraft, appears well
positioned to benefit from its sizeable new order activity and anticipated cost
reduction measures. Even though the market ended the period on a high note, our
outlook remains favorable over the long term. The slow-growth, low-inflation
environment we foresee has historically been positive for stocks.
In pursuit of our investment strategy, the Fund continues to focus on
high-quality companies, most of which are currently expected to raise their
dividends at a rate greater than inflation. The successful execution of this
strategy can help investors retain their purchasing power by providing growth of
income in excess of inflation. For example, Merck, one of the Fund's top 10
holdings, has raised its dividend 15% annually over the past five years - far
above recent rates of inflation - and further dividend increases appear likely
in the future.
We believe an important indicator of a company's commitment to success is
the extent to which management has personal ownership of stock in the
organization. Significantly, management ownership of the companies in the Fund's
portfolio averages 15% - five times that of the typical company in the Standard
& Poor's 500 Stock Index. Legg Mason, Inc., is a good example where insiders own
18% of the company. Strong inside ownership gives us added confidence that the
company will be managed in the best interests of shareholders.
Over the long term, we continue to believe that investors will be well
served by our philosophy of purchasing high-quality companies at favorable
valuation levels. This approach is at the heart of our investment philosophy,
balancing risk and return to achieve the primary objectives of the Fund.
<TABLE>
FUND PERFORMANCE
PERIODS ENDED 4/30/95
SIX MONTHS
<CAPTION>
CLASS A CLASS B
SHARES SHARES
TOTAL RETURN -------- -------
<S> <C> <C>
With sales charge ........................... 2.96% 4.46%
Without sales charge ........................ 7.81% 7.46%
PER SHARE
Dividends ................................... $ .102 $ .069
Capital gains ............................... $ .401 $ .401
NET ASSET VALUES
Beginning ................................... $ 12.71 $ 12.68
Ending ...................................... $ 13.15 $ 13.11
AVERAGE ANNUAL TOTAL RETURNS
<CAPTION>
WITH WITHOUT
CLASS A SALES SALES
SHARES CHARGE CHARGE
- ------- ------ -------
<S> <C> <C>
One Year ..................................... 8.49% 13.60%
Five Years ................................... 10.43% 11.45%
Ten Years .................................... 10.71% 11.22%
CLASS B
SHARES
- -------
One Year 9.84% 12.84%
Life of Class ................................ 10.15% 12.89%
(since 3/30/94)
<FN>
Reference to sales charges above based on the maximum 4.5% initial sales charge
for Class A shares or maximum 3% contingent deferred sales charge for Class B
shares. Information presented represents past performance which cannot predict
future results. Investment returns and principal values of Fund shares will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
</FN>
</TABLE>
INVESTMENT HIGHLIGHTS
COMPOSITE NORTHWEST 50 FUND
Composite Northwest 50 Fund's performance improved during the six-month
period ended April 30, 1995. Strong gains were made by several of the Fund's
largest holdings, but these returns were muted by weak performance from the
retailers and a handful of other companies.
As mentioned in our last report, three new companies were added to the Fund
around the end of the fiscal year. The stock of one of these, Lattice
Semiconductor, rose an impressive 78% while another, Itron Inc., ended up 10%.
The third company, Wholesome and Hearty Foods, has had strong financial
performance but the stock has not reflected those results. Nevertheless, we
continue to believe there is potential for excellent returns from this holding
over the long run.
Strong performances in technology were not limited to Lattice Semiconductor
and Itron. The stock of Fluke Manufacturing rose 36% during the period, while
Flow International shares enjoyed a 30% gain. Of the Fund's technology holdings,
only Sequent Computer Systems and Immunex experienced meaningful declines in
stock valuation, falling 13% and 11%, respectively. During this reporting
period, Morrison Knudsen was dropped from the Northwest 50(R) Index due to weak
performance and serious uncertainties about its financial health. It was
replaced with Electro Scientific Industries, Inc., based in Portland, Oregon.
Electro Scientific designs and manufactures sophisticated capital equipment for
the semiconductor and capacitor industries. Both industries are enjoying strong
sales due to the rapidly increasing demand for consumer electronics such as
computers, cellular telephones, and pagers. Since its addition to the Index,
Electro Scientific's stock has risen 10%.
The Puget Sound economy continued to be impacted by Boeing layoffs which
tend to mute some of the robustness in other sectors of the economy and region.
However, Boeing's stock, sometimes a bellwether for the regional economy,
performed well (+25%) as new aircraft orders finally started to appear. We
believe that this bodes well for both the region and the Fund over the long run.
Furthermore, the growth in trade and technology has helped diversify the
regional economy and should provide further benefits going forward. We expect
that the high-quality companies in the Fund will, in turn, be major
beneficiaries of strength in the various sectors of the Northwest's diverse
industrial base.
<TABLE>
<CAPTION>
FUND PERFORMANCE
PERIODS ENDED 4/30/95
SIX MONTHS
CLASS A CLASS B
SHARES SHARES
TOTAL RETURN -------- --------
<S> <C> <C>
With sales charge ......................... 3.53% 4.94%
Without sales charge ...................... 8.38% 7.94%
PER SHARE
Dividends ................................. $ .044 $ .004
Capital gains ............................. -- --
NET ASSET VALUES
Beginning ................................. $ 14.30 $ 14.28
Ending .................................... $ 15.45 $ 15.41
AVERAGE ANNUAL TOTAL RETURNS
<CAPTION>
With Without
CLASS A Sales Sales
SHARES Charge Charge
- ------ ------- -------
<S> <C> <C>
One Year ................................... 2.92% 7.77%
Five Years ................................. 9.18% 10.18%
Life of Fund ............................... 12.26% 12.88%
(since 11/24/86)
CLASS B
SHARES
- ------
One Year ................................... 3.97% 6.97%
Life of Class .............................. 3.59% 6.34%
(since 3/30/94)
<FN>
Reference to sales charges above based on the maximum 4.5% initial sales charge
for Class A shares or maximum 3% contingent deferred sales charge for Class B
shares. Information presented represents past performance which cannot predict
future results. Investment returns and principal values of Fund shares will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
</FN>
</TABLE>
COMPOSITE BOND & STOCK FUND, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
APRIL 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS-8.62%
<S> <C> <C>
$ 739,195 Government National Mortgage Association, 10.00%, due 08/15/2019 $ 793,942
2,505,023 Government National Mortgage Association, 6.50%, due 01/15/2024 2,290,531
500,000 U.S. Treasury Bond, 8.375%, due 08/15/2008 ..................... 535,625
1,000,000 U.S. Treasury Note, 8.125%, due 08/15/2021 ..................... 1,076,250
1,000,000 U.S. Treasury Note, 7.875%, due 08/15/2001 ..................... 1,048,125
2,500,000 U.S. Treasury Notes, 7.50%, due 12/31/1996 to 11/15/2024 ....... 2,529,062
2,875,000 U.S. Treasury Note, 7.25%, due 08/15/2022 ...................... 2,818,397
1,000,000 U.S. Treasury Note, 7.125%, due 02/29/2000 ..................... 1,010,000
750,000 U.S. Treasury Note, 6.375%, due 08/15/2002 ..................... 724,453
1,750,000 U.S. Treasury Note, 6.25%, due 08/15/2023 ...................... 1,513,202
380,000 U.S. Treasury Note, 4.25%, due 12/31/1995 ...................... 375,131
750,000 U.S. Treasury Note, 4.00%, due 01/31/1996 ...................... 737,578
4,000,000 U.S. Treasury Note, zero coupon, due 08/15/2012 ................ 1,095,724
-----------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY
OBLIGATIONS (cost $16,315,554) ................................. 16,548,020
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS-2.75%
1,250,000 DLJ Mortgage Acceptance Corp., 1993-M17, 7.35%, due 12/18/2003 . 1,168,694
1,000,000 Federal Home Loan Mortgage Corporation -
CMO PAC-1(11) 1311H, 7.50%, due 07/15/2020 ..................... 984,020
2,000,000 Federal Home Loan Mortgage Corporation -
GNMA PAC-1(11) 2E, 6.85%, due 07/25/2018 ....................... 1,918,700
594,515 MDC Mortgage Funding Corporation - PAC-P3,
8.20%, due 11/20/2017 .......................................... 599,088
169,948 Merrill Lynch Mortgage Investors, Inc., 1988-H,
9.70%, due 06/15/2008 .......................................... 175,207
202,849 Merrill Lynch Mortgage Investors Inc., 1988-P,
10.05%, due 12/15/2008 ......................................... 219,079
202,628 Shearson Lehman Series U, 8.75%, due 08/27/2017 205,088
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (cost $5,312,112) .... 5,269,876
-----------
CORPORATE BONDS-22.01%
NON-CONVERTIBLE CORPORATE BONDS-12.15%
AEROSPACE/DEFENSE - 1.12%
2,000,000 Boeing Company, 8.75%, due 08/15/2021 ......................... 2,148,632
-----------
BANK/FINANCE - 2.30%
1,000,000 Bank of New York, 7.875%, due 11/15/2002 ....................... 1,010,153
1,500,000 Liberty National Bank & Trust Co., 6.75%, due 06/01/2003 ....... 1,412,811
1,000,000 Mercantile Bank, 7.625%, due 10/15/2002 ........................ 983,815
1,000,000 Paine Webber Group, 8.875%, due 03/15/2005 ..................... 1,012,252
-----------
4,419,031
-----------
ELECTRICAL EQUIPMENT - 0.46%
1,000,000 Westinghouse Electric Corporation, 7.875%, due 09/01/2023 ...... 878,235
-----------
HOTELS/MOTELS - 0.49%
1,000,000 Marriott International, 6.75%, due 12/15/2003 ................... 932,952
-----------
INDUSTRIAL PRODUCTS/SERVICES - 0.97%
750,000 Conagra, Inc., 9.75%, due 03/01/2021 ........................... 863,345
1,000,000 Dart & Kraft Finance, 7.75%, due 11/30/1998 .................... 1,004,527
-----------
1,867,872
-----------
INSURANCE - 1.25%
1,000,000 Continental Corporation, 7.25%, due 03/01/2003 ................. 934,467
1,500,000 Integon Corporation, 8.00%, due 08/15/1999 ..................... 1,475,474
-----------
2,409,941
-----------
MEDIA - 1.51%
1,500,000 Western Publishing, 7.65%, due 09/15/2002 ...................... 1,200,000
250,000 Tele-Communications, Inc., 9.25%, due 01/15/2023 ............... 239,341
1,500,000 Time Warner, Inc., 9.15%, due 02/01/2023 ....................... 1,459,578
-----------
2,898,919
-----------
OILS - 0.57%
1,000,000 Coastal Corporation, 9.625%, due 05/15/2012 ................... 1,097,600
-----------
PAPER & FOREST PRODUCTS - 0.47%
1,000,000 Weyerhaeuser Company, 7.125%, due 07/15/2023 ................... 897,936
-----------
UTILITIES-ELECTRIC - 1.84%
1,000,000 Commonwealth Edison 1st Mortgage, 9.375%, due 02/15/2000 ....... 1,064,041
1,000,000 Ohio Edison 1st Mortgage, 8.75%, due 02/15/1998 ................ 1,028,053
500,000 Public Service Company of New Hampshire, 9.17%,due 05/15/1998 .. 516,650
350,000 Texas Utilities Electric Company, 9.70%, due 03/01/2002 ........ 386,694
500,000 Texas Utilities Electric Company, 9.50%, due 08/01/1999 ........ 537,283
-----------
3,532,721
-----------
UTILITIES-GAS & ELECTRIC - 1.17%
1,100,000 Niagara Mohawk Power, 9.50%, due 06/01/2000 .................... 1,161,169
1,000,000 System Energy Resources, 11.375%, due 09/01/2016 ............... 1,076,487
-----------
2,237,656
-----------
TOTAL NON-CONVERTIBLE CORPORATE BONDS (cost $24,169,879) ....... 23,321,495
-----------
CONVERTIBLE CORPORATE BONDS-9.86%
BANK/FINANCE - 1.48%
500,000 Legg Mason, Inc., 7.00%, due 06/15/2011 ........................ 578,125
750,000 Legg Mason, Inc., 5.25%, due 05/01/2003 ........................ 766,875
1,000,000 West One Bancorp, 7.75%, due 06/30/2006 ........................ 1,490,000
-----------
2,835,000
-----------
COMMUNICATIONS - 0.65%
$1,400,000 LDDS Communications, Inc., 5.00%, due 08/15/2003 ............... 1,249,500
-----------
INDUSTRIAL - 0.83%
1,000,000 Bell Sports Corporation, 4.25%, due 11/15/2000 .................. 736,250
750,000 EMC Corporation, 4.25%, due 01/01/2001 ......................... 855,000
-----------
1,591,250
-----------
MEDIA - 0.54%
3,200,000 Time Warner, Inc., zero coupon, due 12/17/2012 ................. 1,040,000
-----------
POLLUTION CONTROL - 0.52%
1,000,000 Browning-Ferris, 6.25%, due 08/15/2012 ......................... 996,250
-----------
RETAIL SALES - 2.00%
1,500,000 Costco Wholesale, 5.75%, due 05/15/2002 ........................ 1,295,625
1,300,000 Proffitt's Inc., 4.75%, due 11/01/2003 ......................... 1,046,500
1,601,000 Starbucks Corporation, 4.50%, due 08/01/2003 ................... 1,496,935
-----------
3,839,060
-----------
TECHNOLOGY/ELECTRONICS - 1.16%
2,000,000 Cray Research, 6.125%, due 02/01/2011 .......................... 1,497,500
1,000,000 Motorola, Inc., zero coupon, due 09/27/2013 .................... 722,500
-----------
2,220,000
-----------
TEMPORARY SERVICES - 0.57%
1,000,000 Olsten Corporation, 4.875%, due 05/15/2003 ..................... 1,090,000
-----------
TRANSPORTATION & EQUIPMENT - 2.11%
1,670,000 Airborne Freight Corporation, 6.75%, due 08/15/2001 ............ 1,576,062
1,235,000 Air Wisconsin Services, Inc., 7.75%, due 06/15/2010 ............ 1,000,350
1,500,000 Varlen Corporation, 6.50%, due 06/01/2003 ...................... 1,485,000
-----------
4,061,412
-----------
TOTAL CONVERTIBLE CORPORATE BONDS (cost $18,904,325) ........... 18,922,472
-----------
TOTAL CORPORATE BONDS (cost $43,074,204) ....................... 42,243,967
-----------
FOREIGN OBLIGATIONS-1.52%
1,000,000 Province of Alberta, 9.20%, due 11/01/1997 ..................... 1,053,290
1,000,000 Province of Manitoba, 9.00%, due 12/15/2000 .................... 1,078,320
1,500,000 United Mexican States, Series A, 6.25%, due 12/31/2019 ......... 791,250
-----------
TOTAL FOREIGN OBLIGATIONS (cost $2,777,342) .................... 2,922,860
-----------
COMMON STOCKS-60.39%
SHARES
------ AEROSPACE/DEFENSE - 2.45%
51,550 Boeing Company ................................................. $ 2,835,250
40,000 Loral Corporation .............................................. 1,880,000
------------
4,715,250
------------
BANK/FINANCE - 7.96%
14,925 American International Group, Inc. ............................. 1,593,244
35,000 Federal National Mortgage Association .......................... 3,088,750
21,100 Franklin Resources, Inc. ....................................... 849,275
75,396 Mellon Bank Corporation ........................................ 2,959,293
37,200 J. P. Morgan & Company, Inc. ................................... 2,441,250
42,450 Norwest Corporation ............................................ 1,124,925
32,000 State Street Boston Corporation ................................ 1,016,000
80,000 U.S. Bancorp ................................................... 2,210,000
------------
15,282,737
------------
BEVERAGES - 1.02%
17,500 PepsiCo, Inc. ................................................. 728,438
45,000 Seagram Company, Ltd. ......................................... 1,220,625
------------
1,949,063
------------
CAPITAL GOODS - 2.36%
15,700 Donaldson Company, Inc. ........................................ 390,538
21,200 Emerson Electric Company ....................................... 1,425,700
29,900 GATX Corp ...................................................... 1,345,500
24,400 General Electric Company ....................................... 1,366,400
------------
4,528,138
------------
CHEMICALS - 1.38%
75,850 Nalco Chemical Company ......................................... 2,654,750
------------
CONSUMER DURABLES - 0.70%
92,289 Huffy Corp. .................................................... 1,338,191
------------
CONSUMER NON-DURABLES/SERVICES - 2.30%
21,030 Nike, Inc., Class B ................. .......................... 1,611,424
40,000 Proctor & Gamble Company ....................................... 2,795,000
------------
4,406,424
------------
ELECTRONICS/TECHNOLOGY - 2.52%
40,000 Hewlett-Packard Company ........................................ 2,645,000
30,000 Raytheon Company ............................................... 2,182,500
------------
4,827,500
------------
FOODS - 2.56%
55,000 Campbell Soup Company .......................................... 2,818,750
70,000 Dole Food Company .............................................. 2,091,250
------------
4,910,000
------------
HEALTH & MEDICAL - 9.40%
36,000 American Home Products Corporation ............................. 2,776,500
55,000 Bausch & Lomb, Inc. ............................................ 2,131,250
70,000 Baxter International, Inc. ..................................... 2,432,500
35,000 Bristol-Meyers Squibb Company .................................. 2,279,375
80,000 Caremark International, Inc.* .................................. 1,400,000
40,000 Johnson & Johnson .............................................. 2,600,000
33,615 Manor Care, Inc. ............................................... 987,441
80,000 Merck & Company, Inc. .......................................... 3,430,000
------------
18,037,066
------------
INDUSTRIAL PRODUCTS/SERVICES - 1.70%
83,300 Crane Company .................................................. 2,894,675
20,000 Hanson PLC, American Depository Receipt ........................ 380,000
------------
3,274,675
------------
MINING - 1.19%
40,250 Phelps Dodge Corporation ....................................... 2,279,156
------------
NATURAL GAS & OIL - 10.01%
30,000 Burlington Resources, Inc. ..................................... 1,173,750
45,000 Exxon Corporation .............................................. 3,133,125
114,000 MCN Corporation ................................................ 2,194,500
35,000 Mobil Corporation .............................................. 3,320,625
37,600 National Fuel Gas Company ...................................... 1,085,700
85,000 Phillips Petroleum Company ..................................... 2,975,000
40,000 Shell Transport & Trading Company, American Depository Receipt . 2,850,000
156,600 Westcoast Energy, Inc. ......................................... 2,486,025
------------
19,218,725
------------
BUILDING & FOREST PRODUCTS - 1.55%
71,000 Weyerhaeuser Company ........................................... 2,982,000
------------
RAILROADS - 1.60%
55,850 Union Pacific Corporation ...................................... 3,064,769
------------
REAL ESTATE INVESTMENT TRUSTS - 5.66%
33,400 BRE Properties, Inc. ........................................... 1,027,050
39,000 Developers Diversified Realty Corporation ...................... 1,072,500
46,200 Duke Realty Investments, Inc. .................................. 1,258,950
43,900 Health Care Property Investors, Inc. ........................... 1,327,975
31,900 Nationwide Health Properties, Inc. ............................. 1,152,388
83,300 Shurgard Storage Centers, Inc. ................................. 1,915,900
90,800 United Dominion Realty Trust ................................... 1,271,200
16,700 Weingarten Realty Investors .................................... 584,500
62,200 Wellsford Residential Property Trust ........................... 1,259,550
------------
10,870,013
------------
TOBACCO - 1.10%
31,100 Phillip Morris Companies, Inc. ................................. 2,107,021
------------
UTILITIES-GAS & ELECTRIC - 1.01%
45,300 DPL, Inc. ...................................................... 945,638
40,000 NICOR, Inc. .................................................... 990,000
------------
1,935,638
------------
UTILITIES-COMMUNICATIONS - 3.92%
55,000 AT&T Corporation .............................................. 2,791,250
45,500 Ameritech Corporation ......................................... 2,047,500
51,900 GTE Corporation ................................................ 1,771,088
30,500 Telefonos de Mexico, American Depository Receipt ............... 922,625
------------
7,532,463
------------
TOTAL COMMON STOCKS (cost $97,874,936) ......................... 115,913,579
------------
CONVERTIBLE PREFERRED STOCKS-3.19%
BANK/FINANCE - 2.03%
27,900 GATX Corporation, Series A ..................................... 1,499,625
20,000 Integon Corporation ............................................ 1,015,000
19,000 Norwest Corporation, Series B .................................. 1,382,250
------------
3,896,875
------------
NATURAL GAS & OIL - 0.64%
33,000 Western Gas Resources, Inc. .................................... 1,216,875
------------
42,500 HEALTH & MEDICAL - 0.52%
FHP International Corporation, Series A00 ...................... 1,004,063
------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $6,277,603) ........... 6,117,813
------------
TOTAL INVESTMENTS (COST $171,631,752) .......................... 189,016,115
Other assets ($3,296,495) less liabilities ($369,710) .......... 2,926,785
------------
NET ASSETS ......................................................$191,942,900
============
<FN>
* Non-income producing security
FEDERAL INCOME TAX INFORMATION:
Net unrealized appreciation of investments at April 30, 1995, of $17,384,363,
based on aggregate cost of $171,631,752, was composed of gross appreciation of
$22,072,533 for investments having an excess of value over cost and gross
depreciation of $4,688,170 for investments having an excess of cost over value.
OTHER INFORMATION:
Purchases and sales (including maturities and principal repayments) of
investment securities, other than short-term investments, aggregated $27,712,058
and $36,620,075, respectively, during the six months ended April 30, 1995,
including purchases and sales of U.S. Government Securities of $10,469,585 and
$968,281.
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
COMPOSITE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS IN SECURITIES
APRIL 30, 1995
(UNAUDITED)
<CAPTION>
<S> <C> <C>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
TREASURY NOTE - 0.84%
$1,000,000 U.S. Treasury Note, 4.25%, 12/31/95 (cost $980,504) ............ $ 987,187
------------
CONVERTIBLE CORPORATE BONDS-2.88%
BANK/FINANCE - 0.18%
185,000 Legg Mason, Inc., 7.00%, due 06/15/2011 ........................ 213,906
------------
COMMUNICATIONS - 0.85%
1,125,000 LDDS Communications, Inc. 5.00%, due 08/15/2003 ................ 1,004,063
------------
MEDIA - 1.05%
3,763,000 Time Warner, Inc., zero coupon, due 12/17/2012 ................. 1,222,975
------------
TRANSPORTATION & EQUIPMENT - 0.80%
1,000,000 Airborne Freight Corporation, 6.75%, due 08/15/2001 ............. 943,750
------------
Total Convertible Corporate Bonds (cost $3,327,293) ............ 3,384,694
------------
CONVERTIBLE PREFERRED STOCK-0.51%
SHARES
------
11,700 Integon Corporation (cost $530,062) ............................ 593,775
------------
COMMON STOCKS-94.49%
AEROSPACE/DEFENSE - 5.36%
53,000 Boeing Company ................................................. 2,915,000
37,300 Loral Corporation .............................................. 1,753,100
22,470 Raytheon Company ............................................... 1,634,693
------------
6,302,793
------------
BANK/FINANCE - 12.92%
30,800 Federal Home Loan Mortgage Corporation ......................... 2,009,700
29,600 Franklin Resources, Inc. ....................................... 1,191,400
30,450 J P Morgan and Company, Inc. ................................... 1,998,281
49,250 Legg Mason, Inc. ............................................... 1,212,781
53,157 Mellon Bank Corporation ........................................ 2,086,412
63,000 Norwest Corporation ............................................ 1,669,500
39,300 State Street Boston Corporation ................................ 1,247,775
69,530 U.S. Bancorp ................................................... 1,920,766
67,250 West One Bancorp ............................................... 1,857,780
------------
15,194,397
------------
BEVERAGES - 2.57%
40,000 PepsiCo, Inc. .................................................. 1,665,000
50,000 Seagram Company, Ltd. .......................................... 1,356,250
------------
3,021,250
------------
BUILDING & FOREST PRODUCTS - 3.62%
57,700 Crane Company .................................................. 2,005,075
53,450 Weyerhaeuser Company ........................................... 2,244,900
------------
4,249,975
------------
CAPITAL GOODS - 4.57%
16,950 Emerson Electric Company ....................................... 1,139,888
48,000 GATX Corporation ............................................... 2,160,000
37,000 General Electric Company ....................................... 2,072,000
------------
5,371,888
------------
CHEMICALS - 1.95%
65,600 Nalco Chemical Company ......................................... 2,296,000
------------
CONSUMER DURABLES - 1.76%
70,000 Huffy Corporation .............................................. 1,015,000
48,600 Sunbeam-Oster Company, Inc. .................................... 1,050,975
------------
2,065,975
------------
CONSUMER NON-DURABLES/SERVICES - 3.70%
65,800 Alberto Culver Company, Class A ................................ 1,813,100
15,255 Nike, Inc., Class B ............................................ 1,168,914
19,550 Proctor and Gamble Company ..................................... 1,366,057
------------
4,348,071
------------
ELECTRONICS/TECHNOLOGY - 8.72%
27,675 Arrow Electronics, Inc. ........................................ 1,286,888
94,600 Barra, Inc.* ................................................... 969,650
18,025 DSC Communications Corporation ................................. 666,925
20,240 Hewlett-Packard Company ........................................ 1,338,370
43,200 Microsoft Corporation* ......................................... 3,531,600
22,715 Motorola, Inc. ................................................. 1,291,916
70,200 Sequent Computer Systems, Inc.* ................................ 1,162,687
------------
10,248,036
------------
FOODS - 4.87%
95,556 Archer Daniels Midland ......................................... 1,743,897
35,300 Campbell Soup Company .......................................... 1,809,125
72,650 Dole Food Company .............................................. 2,170,419
------------
5,723,441
------------
HEALTH & MEDICAL - 13.14%
20,000 American Home Products Corporation ............................. 1,542,500
40,325 Bausch & Lomb, Inc. ............................................ 1,562,594
41,525 Baxter International, Inc. ..................................... 1,442,994
88,518 Caremark International, Inc.* .................................. 1,549,065
90,950 FHP International Corporation* ................................. 2,160,063
28,650 Johnson and Johnson ............................................ 1,862,250
94,115 Manor Care, Inc. ............................................... 2,764,628
59,550 Merck and Company, Inc. ........................................ 2,553,205
------------
15,437,299
------------
INDUSTRIAL PRODUCTS/SERVICES - 0.87%
53,500 Hanson PLC, American Depository Receipt ........................ 1,016,500
------------
INSURANCE - 2.09%
12,255 American International Group, Inc. ............................. 1,308,221
73,800 Integon Corporation ............................................ 1,153,125
------------
2,461,346
------------
MEDIA - 1.08%
34,510 Time Warner, Inc. ............................................. 1,263,929
------------
NATURAL GAS & OIL - 8.05%
50,335 Burlington Resources, Inc. ..................................... 1,969,357
24,100 Exxon Corporation .............................................. 1,677,963
61,350 Phillips Petroleum Company ..................................... 2,147,250
29,500 Shell Transport & Trading Company, American Depository Receipt . 2,101,875
22,850 Texaco, Inc. ................................................... 1,562,365
------------
9,458,810
------------
POLLUTION CONTROL - 1.29%
61,024 Donaldson Company, Inc. ........................................ 1,517,972
------------
REAL ESTATE INVESTMENT TRUSTS - 3.09%
50,400 Health Care Property Investors, Inc. ........................... 1,524,600
91,700 Shurgard Storage Centers, Inc. ................................. 2,109,100
------------
3,633,700
------------
RETAIL SALES - 0.98%
36,980 Fred Meyer, Inc., Class A* ..................................... 1,155,625
------------
TOBACCO - 1.73%
30,000 Phillip Morris Companies, Inc. ................................. 2,032,500
------------
TRANSPORTATION - 3.36%
13,200 Airborne Freight Corporation ................................... 257,400
64,425 Expeditors International of Washington, Inc. ................... 1,481,775
40,300 Union Pacific Corporation ...................................... 2,211,463
------------
3,950,638
------------
UTILITIES-GAS & ELECTRIC - 3.12%
56,620 MCN Corporation ................................................ 1,032,185
91,800 Westcoast Energy, Inc. ......................................... 1,457,325
57,550 Western Gas Resources, Inc. .................................... 1,179,775
------------
3,669,285
------------
UTILITIES-TELECOMMUNICATIONS - 5.63%
46,300 AT&T Corporation ............................................... 2,349,725
30,700 GTE Corporation ................................................ 1,047,638
73,500 Lincoln Telecommunications Company ............................. 1,139,250
25,000 SBC Communications, Inc ........................................ 1,103,125
32,125 Telefonos de Mexico, American Depository Receipt ............... 971,781
------------
6,611,519
------------
TOTAL COMMON STOCKS (cost $90,815,559) 111,030,950
PRINCIPAL ------------
AMOUNT
---------
SHORT-TERM INVESTMENT-2.31%
2,714,000 Repurchase agreement with Goldman Sachs, collateralized
by a U.S. Treasury Note, in a joint trading account at 5.875%,
dated 04/28/1995, due 05/01/1995 with a maturity value
of $2,715,329 (cost $2,714,000) ................................ 2,714,000
------------
TOTAL INVESTMENTS (cost $98,367,422) 118,710,606
Other assets ($645,797) less liabilities ($1,846,985) (1,201,188)
-------------
NET ASSETS $117,509,418
============
<FN>
*Non-income producing security
FEDERAL INCOME TAX INFORMATION:
Net unrealized appreciation of investments at April 30, 1995, of $20,343,184,
based on aggregate cost of $98,367,422, was composed of gross appreciation of
$22,187,480 for investments having an excess of value over cost and gross
depreciation of $1,844,296 for investments having an excess of cost over value.
OTHER INFORMATION:
Purchases and sales of investment securities, other than short-term investments,
aggregated $19,732,363 and $12,468,716, respectively, during the six month
period ended April 30, 1995, including purchases of U.S. Government securities
of $971,563.
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
COMPOSITE NORTHWEST 50 FUND, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
APRIL 30, 1995
(UNAUDITED)
<CAPTION>
MARKET
SHARES COMMON STOCKS - 99.36% VALUE
------- ------------
AEROSPACE/DEFENSE - 7.45%
<S> <C> <C>
164,137 Boeing Company ................................................. $ 9,027,563
88,750 Precision Castparts Corporation ................................. 2,440,625
------------
11,468,188
------------
BANK/FINANCE - 10.55%
24,301 Horizon Bank ................................................... 279,473
77,800 Safeco Corporation ............................................. 4,395,700
260,682 US Bancorp ..................................................... 7,201,340
92,479 Washington Federal, Inc. ....................................... 1,895,822
89,600 West One Bancorp ............................................... 2,475,200
------------
16,247,535
------------
BUILDING & FOREST PRODUCTS - 9.54%
9,433 Boise Cascade Corporation ...................................... 308,931
15,100 Georgia-Pacific Corporation .................................... 1,198,563
58,550 Longview Fibre Company ......................................... 973,394
119,289 Louisiana Pacific Corporation .................................. 3,041,844
13,500 Pope & Talbot, Inc. ............................................ 222,750
143,400 T.J. International, Inc. ....................................... 2,437,800
88,400 Weyerhaeuser Company ........................................... 3,712,800
54,500 Willamette Industries, Inc. .................................... 2,793,124
------------
14,689,206
------------
CHEMICALS - 0.31%
23,600 Penwest Ltd. ................................................... 483,800
------------
CONSUMER NON-DURABLES - 6.03%
107,700 Nike, Inc., Class B ........................................... 8,252,513
93,900 Wholesome and Hearty Foods* .................................... 1,032,900
------------
9,285,413
------------
ELECTRONICS/TECHNOLOGY - 24.92%
38,800 Electro Scientific Industries* ................................. 1,033,050
106,900 Itron, Inc.* ................................................... 2,699,225
63,372 John Fluke Manufacturing Company ............................... 2,550,723
88,500 Lattice Semiconductor Corporation* ............................. 2,666,063
303,500 Mentor Graphics Corporation* ................................... 5,121,563
160,900 Microsoft Corporation* ......................................... 13,153,575
236,650 Sequent Computer Systems, Inc.* ................................ 3,919,515
159,000 Tektronix, Inc. ................................................ 7,234,500
------------
38,378,214
------------
HEALTH & MEDICAL -3.65%
105,900 Advanced Technology Laboratories, Inc.* ........................ 1,667,925
166,300 Immunex Corporation* ........................................... 1,995,600
79,800 SpaceLabs Medical, Inc.* ....................................... 1,955,100
------------
5,618,625
------------
INDUSTRIAL PRODUCTS/SERVICES - 3.31%
187,450 Flow International Corporation* ................................ $ 1,569,894
74,400 Oregon Steel Mills, Inc. ....................................... 1,329,900
171,900 Univar Corporation ............................................. 2,191,725
------------
5,091,519
------------
MINING - 1.58%
71,350 Coeur d'Alene Mines Corporation ................................ 1,409,163
96,350 Hecla Mining Company* .......................................... 1,023,718
------------
2,432,881
------------
RETAIL SALES - 19.82%
397,300 Albertson's, Inc. .............................................. 11,615,863
283,425 Price/Costco Inc.* ............................................. 4,145,091
179,800 Fred Meyer, Inc., Class A* ..................................... 5,618,750
155,000 Nordstrom, Inc. ................................................ 5,967,500
65,566 Quality Food Centers, Inc. ..................................... 1,331,809
78,500 Starbucks Corporation* ......................................... 1,844,750
------------
30,523,763
------------
TRANSPORTATION & EQUIPMENT - 8.24%
232,800 Airborne Freight Corporation ................................... 4,539,600
135,800 Alaska Air Group, Inc.* ........................................ 2,325,575
187,300 Expeditor's International of Washington, Inc. .................. 4,307,900
33,010 PACCAR, Inc. ................................................... 1,518,460
------------
12,691,535
------------
UTILITIES-GAS & ELECTRIC - 1.73%
32,500 Montana Power Company .......................................... 751,562
32,000 Portland General Corporation ................................... 664,000
36,100 Puget Sound Power & Light Company .............................. 767,120
30,800 Washington Water Power Company ................................. 473,550
------------
2,656,232
------------
UTILITIES-TELECOMMUNICATIONS - 2.23%
27,500 Pacific Telecom, Inc. .......................................... 818,125
63,100 US West, Inc. .................................................. 2,610,763
------------
3,428,888
------------
TOTAL COMMON STOCKS (cost $111,209,973) 152,995,802
------------
PRINCIPAL
AMMOUNT
---------- SHORT-TERM INVESTMENT-0.83%
1,278,000 Repurchase agreement with Goldman Sachs, collateralized
by a U.S. Treasury Note, in a joint trading account at
5.875%, dated 04/28/1995, due 05/01/1995 with a
maturity value of $1,278,626 (cost $1,278,000) ................. $ 1,278,000
------------
TOTAL INVESTMENTS (cost $112,487,973) .......................... 154,273,802
Other assets ($397,644) less liabilities ($693,298) (295,654)
------------
NET ASSETS $153,978,148
============
<FN>
*Non-income producing security
FEDERAL INCOME TAX INFORMATION:
Net unrealized appreciation of investments at April 30, 1995, of $41,785,829,
based on aggregate cost of $112,487,973, was composed of gross appreciation of
$46,943,363 for investments having an excess of value over cost and gross
depreciation of $5,157,534 for investments having an excess of cost over value.
OTHER INFORMATION:
Purchases and sales of investment securities, other than short-term investments,
aggregated $23,607,379 and $40,338,563, respectively, during the six months
ended April 30, 1995. See accompanying notes to financial statements.
</FN>
</TABLE>
FINANCIAL INFORMATION APRIL 30, 1995
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<CAPTION>
COMPOSITE COMPOSITE COMPOSITE
BOND & STOCK GROWTH & NORTHWEST 50
FUND, INC INCOME FUND FUND, INC.
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments at market (identified cost $171,631,752,
$98,367,422 and $112,487,973, respectively) -
note 1a ............................................................ $189,016,115 $118,710,606 $ 154,273,802
Cash ................................................................. 95,195 22,820 48,610
Prepaid expense ...................................................... 18,603 15,091 18,168
Receivable for:
Investment securities sold ......................................... 1,458,196 159,353 --
Interest ........................................................... 1,266,003 46,048 625
Dividends .......................................................... 372,991 183,714 85,651
Sale of Fund's shares .............................................. 85,507 218,771 129,151
Expense reimbursement .............................................. -- -- 115,439
------------ ------------ ------------
TOTAL ASSETS ......................................................... 192,312,610 119,356,403 154,671,446
------------ ------------ ------------
LIABILITIES
Payable for:
Investment securities purchased .................................... -- 1,703,709 --
Repurchase of Fund's shares ........................................ 211,567 58,145 574,121
Accrued expenses and other payables ................................ 158,143 85,131 119,177
------------ ------------ -------------
Total liabilities .................................................... 369,710 1,846,985 693,298
------------ ------------ ------------
NET ASSETS ........................................................... $191,942,900 $117,509,418 $ 153,978,148
============ ============ =============
COMPOSITION OF NET ASSETS
Capital stock, at par ................................................ $ 7,880 $ 894 $ 100
Additional paid-in capital ........................................... 172,336,599 95,454,108 114,732,462
Undistributed net investment income .................................. 564,718 107,084 45,256
Accumulated net realized gain (loss) ................................. 1,649,340 1,604,148 (2,585,499)
Net unrealized appreciation of investments ........................... 17,384,363 20,343,184 41,785,829
------------ ------------ -------------
$191,942,900 $117,509,418 $ 153,978,148
============ ============ =============
SHARES OF BENEFICIAL INTEREST OUTSTANDING ............................ 15,760,951 8,940,626 9,965,598
CLASS A SHARES: ============ ============ =============
Net asset value and redemption price per share
(net assets of $187,816,107, $112,610,362, and
$149,059,098, respectively, for 15,422,171,
8,566,880, and 9,646,401, shares of
beneficial interest outstanding, respectively) ........................ $ 12.18 $ 13.14 $ 15.45
============ ============ =============
Offering price per share
(100/95.5 of net asset value per share) ............................... $ 12.75 $ 13.76 $ 16.18
CLASS B SHARES: ============ ============ ============
Net asset value, offering price and redemption
price per share (net assets of $4,126,793,
$4,899,056, and $4,919,050, respectively, for
338,780, 373,746, and 319,197 shares of
beneficial interest outstanding, respectively) ....................... $ 12.18 $ 13.11 $ 15.41
<FN>
============ ============ =============
On sales of $25,000 or more, the offering price of Class A is reduced.
A contingent deferred sales charge may be imposed on redemptions of Class B shares.
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<CAPTION>
COMPOSITE COMPOSITE COMPOSITE
BOND & STOCK GROWTH & NORTHWEST 50
FUND, INC. INCOME FUND FUND, INC.
----------- ---------- ------------
INVESTMENT INCOME
<S> <C> <C> <C>
Income
Dividends ........................................................... $ 2,339,359 $1,292,128 $ 1,172,061
Interest ............................................................ 2,524,772 198,273 38,316
----------- ---------- ------------
Total income .......................................................... 4,864,131 1,490,401 1,210,377
----------- ---------- ------------
Expenses:
Advisory fees - note 2 .............................................. 583,821 329,669 467,339
Distribution expenses - Class A - note 2............................. 229,109 128,020 182,138
Distribution expenses - Class B - note 2 ............................ 17,676 15,392 19,192
Shareholder servicing - note 2 ...................................... 92,558 62,254 139,273
Postage, printing and office expense ................................ 63,307 40,726 97,743
Registration and filing fees ........................................ 12,091 17,238 19,323
Custodial fees ...................................................... 19,594 7,496 10,866
Auditing and legal fees ............................................. 8,413 7,834 8,317
Directors' fees - note 2 ............................................ 5,958 5,958 5,958
Insurance ........................................................... 2,167 1,132 1,776
----------- ---------- ------------
Total expenses ............... ....................................... 1,034,694 615,719 951,925
Expense reimbursement ................................................. -- -- (115,438)
----------- ---------- ------------
Net expenses - note 2 ................................................. 1,034,694 615,719 836,487
----------- ---------- ------------
Net investment income ................................................. 3,829,437 874,682 373,890
----------- ---------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from investment transactions ..................... 1,636,771 1,604,148 (674,880)
Unrealized appreciation of
investments during the period ......................................... 10,357,575 5,778,587 12,332,598
----------- ---------- ------------
Net realized and unrealized gain on investments ....................... 11,994,346 7,382,735 11,657,718
NET INCREASE IN NET ASSETS ----------- ---------- ------------
RESULTING FROM OPERATIONS ............................................. $15,823,783 $8,257,417 $ 12,031,608
=========== ========== ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Composite Bond & Stock Composite Growth & Composite Northwest 50
Fund, Inc. Income Fund Fund, Inc.
------------------------------ ------------------------------ -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED
1995 OCTOBER 31, 1995 OCTOBER 31, 1995 OCTOBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income ........ $ 3,829,437 $ 7,766,340 $ 874,682 $ 1,411,995 $ 373,890 $ 827,456
Realized gain (loss) from
investment transactions .... 1,636,771 1,382,200 1,604,148 3,331,881 (674,880) (1,910,618)
Unrealized appreciation
(depreciation)of investments
during the period .......... 10,357,575 (11,150,310) 5,778,587 3,238,622 12,332,598 6,230,734
Net increase (decrease) in ------------- ------------- ------------- ------------- ------------- -------------
net assets resulting from
operations ................. 15,823,783 (2,001,770) 8,257,417 7,982,498 12,031,608 5,147,572
NET EQUALIZATION (DEBITS)
CREDITS ...................... -- 139,287 -- (11,747) -- (28,319)
DIVIDENDS TO SHAREHOLDERS
From net investment income:
Class A .................. (4,089,485) (7,277,744) (834,082) (1,375,642) (452,314) (831,421)
Class B .................. (60,900) (44,398) (15,699) (4,042) (1,003) --
From net capital gains from
investment transactions:
Class A .................. (1,345,097) (2,302,488) (3,249,511) (6,977,882) -- (6,184,903)
Class B .................. (24,534) -- (82,370) -- -- --
NET CAPITAL SHARE
TRANSACTIONS - note 3
Class A .................. (13,882,321) 22,286,387 5,890,055 8,034,226 (14,795,260) (13,355,105)
Class B .................. 544,596 3,356,766 2,624,546 2,042,751 1,471,142 3,136,108
------------- ------------- ------------- ------------- ------------- ------------
Total increase (decrease)
in net assets ................ (3,033,958) 14,156,040 12,590,356 9,690,162 (1,745,827) (12,116,068)
NET ASSETS
Beginning of the period ...... 194,976,858 180,820,818 104,919,062 95,228,900 155,723,975 167,840,043
------------- ------------- ------------- ------------- ------------- -------------
End of the period ............ $ 191,942,900 $ 194,976,858 $ 117,509,418 $ 104,919,062 $ 153,978,148 $ 155,723,975
============= ============= ============= ============= ============= =============
UNDISTRIBUTED NET INVESTMENT
INCOME AT END OF PERIOD ...... $ 564,718 $ 885,666 $ 107,084 $ 82,183 45,256 $ 124,683
============= ============= ============= ============= ============= ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
COMPOSITE BOND & STOCK FUND, INC.
<CAPTION>
CLASS A CLASS B
------------------------------------------------------------------- ------------------------
SIX MONTHS ELEVEN MONTHS SIX MONTHS MARCH 30,
ENDED ENDED YEARS ENDED ENDED 1994 TO
APRIL 30, YEARS ENDED OCTOBER 31, OCTOBER 31, NOVEMBER 30, APRIL 30, OCTOBER 31,
----------------------- --------------
1995 1994 1993 1992<F3> 1991 1990 1995 1994<F4>
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD ................ $ 11.53 $ 12.23 $ 11.27 $ 11.01 $ 9.90 $ 10.86 $ 11.51 $ 11.49
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income ............. 0.24 0.46 0.48 0.44 0.55 0.53 0.20 0.18
Net Gains or (Losses) on Securities
(both realized and unrealized) ... 0.75 (0.57) 1.06 0.80 1.10 (0.78) 0.75 0.04
------- ------- ------- ------- ------- ------- ------- -------
Total From Investment
Operations ...................... 0.99 (0.11) 1.54 1.24 1.65 (0.25) 0.95 0.22
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends
(from net investment income) .... (0.26) (0.44) (0.46) (0.53) (0.54) (0.61) (0.20) (0.20)
Distributions (from capital gains). (0.08) (0.15) (0.12) (0.45) 0.00 (0.10) (0.08) 0.00
------- ------- ------- ------- ------- ------- ------- -------
Total Distributions ............. (0.34) (0.59) (0.58) (0.98) (0.54) (0.71) (0.28) (0.20)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...... $ 12.18 $ 11.53 $ 12.23 $ 11.27 $ 11.01 $ 9.90 $ 12.18 $ 11.51
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN <F1>................... 8.81% -0.90% 13.99% 11.92% 16.96% -2.29% 8.43% 1.94%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period
(in thousands) ................... $187,816 $191,615 $180,281 $102,523 $66,090 $63,669 $4,127 $3,362
Ratio of Expenses to
Average Net Assets ............... 1.09%<F5> 1.06% 1.13% 1.13%<F5> 1.14% 1.17% 1.85%<F5> 1.77%<F5>
Ratio of Net Income to
Average Net Assets ............... 4.11%<F5> 3.97% 4.01% 4.30%<F5> 4.90% 5.25% 3.34%<F5> 3.22%<F5>
Portfolio Turnover<F2>............. 30%<F5> 25% 19% 15%<F5> 35% 38% 30%<F5> 25%<F5>
<FN>
<F1>Total return does not reflect sales charge. Returns of less than one year are aggregate returns and not annualized.
<F2>A portfolio turnover rate is the percentage computed by taking the lesser of purchases or sales of portfolio securities
(excluding securities with a maturity date of one year or less at the time of acquisition) for a period and dividing it by the
monthly average of the market value of such securities during the period.
<F3>Change in Fund's fiscal year end. See note 1.
<F4>From the commencement of offering of Class B shares.
<F5>Annualized.
</FN>
</TABLE>
<TABLE>
FINANCIAL HIGLIGHTS (UNAUDITED)
COMPOSITE GROWTH & INCOME FUND
<CAPTION>
CLASS A CLASS B
-------------------------------------------------------------------- --------------------------
SIX MONTHS SIX MONTHS MARCH 30,
ENDED ENDED 1994 TO
APRIL 30, YEARS ENDED OCTOBER 31, APRIL 30, OCTOBER 31,
---------------------------------------------------------
1995 1994 1993 1992 1991 1990 1995 1994<F3>
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD ................ $ 12.71 $ 12.81 $ 12.02 $ 11.86 $ 9.18 $ 12.17 $ 12.68 $ 12.00
INCOME FROM
INVESTMENT OPERATIONS
Net Investment Income ............. 0.10 0.18 0.21 0.29 0.29 0.35 0.06 0.05
Net Gains or (Losses)on Securities
(both realized and unrealized).... 0.83 0.85 1.10 0.80 2.69 (2.19) 0.84 0.69
------- ------- ------- ------- ------- ------- ------- -------
Total From Investment Operations. 0.93 1.03 1.31 1.09 2.98 (1.84) 0.90 0.74
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends
(from net investment income) ..... (0.10) (0.18) (0.21) (0.34) (0.30) (0.50) (0.07) (0.06)
Distributions (from capital gains). (0.40) (0.95) (0.31) (0.59) 0.00 (0.65) (0.40) 0.00
------- ------- ------- ------- ------- ------- ------- -------
Total Distributions ............. (0.50) (1.13) (0.52) (0.93) (0.30) (1.15) (0.47) (0.06)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ..... 13.14 $ 12.71 $ 12.81 $ 12.02 $ 11.86 $ 9.18 $ 13.11 $ 12.68
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN<F1> .................. 7.81% 8.55% 11.06% 9.94% 32.69% -16.25% 7.46% 6.14%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period
(in thousands) ...................$112,610 $102,837 $95,229 $81,102 $69,365 $55,776 $4,899 $2,082
Ratio of Expenses to
Average Net Assets ............ 1.15%<F4> 1.10% 1.17% 1.10% 1.12% 1.17% 1.91%<F4> 1.85%<F4>
Ratio of Net Income to
Average Net Assets ............... 1.68%<F4> 1.45% 1.67% 2.37% 2.73% 3.33% 0.82%<F4> 0.65%<F4>
Portfolio Turnover Rate<F2>........ 24%<F4> 34% 54% 18% 26% 37% 24%<F4> 34%<F4>
<FN>
<F1>Total return does not reflect sales charge. Returns of less than one year are aggregate returns and not annualized.
<F2>A portfolio turnover rate is the percentage computed by taking the lesser of purchases or sales of portfolio securities
(excluding securities with a maturity date of one year or less at the time of acquisition) for a period and dividing it by the
monthly average of the market value of such securities during the period.
<F3>From the commencement of offering of Class B shares.
<F4>Annualized.
</FN>
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
COMPOSITE NORTHWEST 50 FUND, INC.
<CAPTION>
CLASS A CLASS B
-------------------------------------------------------------------- --------------------------
SIX MONTHS SIX MONTHS MARCH 30,
ENDED ENDED 1994 TO
APRIL 30, YEARS ENDED OCTOBER 31, APRIL 30, OCTOBER 31,
--------------------------------------------------------
1995 1994 1993 1992 1991 1990 1995 1994<F4>
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD ................ $ 14.30 $ 14.50 $ 14.04 $ 13.45 $ 8.43 $ 10.18 $ 14.28 $ 14.42
INCOME FROM
INVESTMENT OPERATIONS
Net Investment Income ............. 0.04 0.08 0.07 0.08 0.07 0.08 (0.01) (0.02)
Net Gains or (Losses)on Securities
(both realized andunrealized)..... 1.15 0.35 0.46 0.69 5.03 (1.76) 1.14 (0.12)
------- ------- ------- ------- ------- ------- ------- -------
Total From Investment Operations.. 1.19 0.43 0.53 0.77 5.10 (1.68) 1.13 (0.14)
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends
(from net investment income) ..... (0.04) (0.08) (0.07) (0.07) (0.08) (0.07) 0.00 0.00
Distributions (from capital gains). 0.00 (0.55) 0.00 (0.11) 0.00 0.00 0.00 0.00
------- ------- ------- ------- ------- ------- ------- -------
Total Distributions ............. (0.04) (0.63) (0.07) (0.18) (0.08) (0.07) 0.00 0.00
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD ..... $ 15.45 $ 14.30 $ 14.50 $ 14.04 $ 13.45 $ 8.43 $ 15.41 $ 14.28
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN <F1> ................... 8.38% 2.97% 3.82% 5.77% 60.49% -16.68% 7.94% -0.97%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period
(in thousands) ...................$149,059 $152,622 $167,840 $167,115 $98,754 $42,647 $4,919 $3,102
Ratio of Expenses to
Average Net Assets<F3>............ 1.10%<F5> 1.09% 1.09% 1.11% 1.21% 1.45% 1.85%<F5> 1.96%<F5>
Ratio of Net Income to
Average Net Assets ............... 0.52%<F5> 0.51% 0.48% 0.53% 0.63% 0.72% -0.29%<F5> -0.39%<F5>
Portfolio Turnover Rate <F2>....... 13%<F5> 11% 8% 4% 8% 7% 13%<F5> 11%<F5>
<FN>
NOTE: Figures representing per-share amounts have been adjusted to retroactively reflect a 2-for-1 stock split effective December
29, 1992.
<F1>Total return does not reflect sales charge. Returns of less than one year are aggregate returns and not annualized.
<F2>A portfolio turnover rate is the percentage computed by taking the lesser of purchases or sales of portfolio securities
(excluding securities with a maturity date of one year or less at the time of acquisition) for a period and dividing it by the
monthly average of the market value of such securities during the period.
<F3>Fund expenses that exceeded 1.50% of average daily net assets up to $30,000,000, and 1% of such assets over $30,000,000 were
reimbursed by the investment adviser, Composite Research & Management Co.
<F4>From the commencement of offering of Class B shares.
<F5>Annualized.
</FN>
</TABLE>
NOTE 1 - ACCOUNTING POLICIES
Composite Bond & Stock Fund, Inc., and Composite Equity Series, Inc.
(Composite Growth Fund, Inc. prior to February 28, 1995), are registered under
the Investment Company Act of 1940, as amended, as open-end, diversified
management investment companies. Composite Growth & Income Fund is a portfolio
of Composite Equity Series, Inc. Composite Northwest 50 Fund, Inc., is
registered under the Investment Company Act of 1940, as amended, as an open-end,
non-diversified management investment company.
On January 28, 1992, the Bond & Stock Fund's Board of Directors approved a
change in its fiscal year end to October 31. Accordingly, information for the
fiscal year ended October 31, 1992, is presented for the eleven-month period
from December 1, 1991.
The Funds offer both Class A and Class B shares. Class B shares were first
offered on March 30, 1994. The two classes of shares differ in their respective
sales charges, shareholder servicing agent fees, distribution and services fees.
All shareholders bear the common expenses of the Fund pro rata, based on value
of shares outstanding, without distinction between share class. Dividends are
declared separately for each class. Neither class has preferential dividend
rights; differences in per share dividend rates are generally due to differences
in separate class expenses, including distribution and service fees.
Following is a summary of significant accounting policies, in conformity
with generally accepted accounting principles, which are consistently followed
by each Fund in the preparation of its financial statements.
a. Investment securities are stated on the basis of valuations provided by an
independent pricing service, approved by the Boards of Directors, which uses
information with respect to last reported sales price for securities traded
on a national securities exchange (or reported on the National Association of
Securities Dealers Automated Quotation [NASDAQ] National Market System) or
securities traded over-the-counter, in determining value. Investment
securities with less than 60 days to maturity when purchased are valued at
amortized cost which approximates market value. Investment securities not
currently quoted as described above will be priced at fair market value as
determined in good faith in a manner prescribed by the Boards of Directors.
b. Interest income is earned from the settlement date on securities purchased
and is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date.
c. Each Fund records dividends to shareholders on the record date.
d. Security transactions are accounted for on the trade date (execution date of
the order to buy or sell). Realized gain or loss from security transactions
and the change in unrealized appreciation or depreciation are determined on
the basis of identified cost.
e. Prior to June 1, 1994, each Fund followed the accounting practice of
equalization, by which a portion of the proceeds from the sales of Fund
shares and costs of repurchases of Fund shares equivalent on a per share
basis to the amount of undistributed net investment income were credited or
charged to undistributed income. Effective June 1, 1994, the Funds no longer
recognized equalization accounting and the cumulative effect of the change in
accounting practice resulted in a reclassification of $395,473 and $351,735
from undistributed net investment income to paid-in capital for the Bond &
Stock Fund and Northwest 50 Fund, respectively. The cumulative effect for the
Growth & Income Fund was a reclassification of $149,245 from paid-in capital
to undistributed net investment income. This change had no effect on the
Funds' net assets, net asset value per share, or distributions.
f. Each Fund complies with requirements of the Internal Revenue Code applicable
to regulated investment companies and distributes taxable income so that no
provision for federal income or excise tax is required.
NOTE 2 - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
The amounts of fees and expenses described below are shown on each Fund's
statement of operations.
Advisory fees were paid by each Fund to Composite Research & Management
Co., the investment adviser. Advisory fees for the Bond & Stock Fund and the
Growth & Income Fund are equal to an annual rate of .625% of each Fund's average
daily net assets. Fees are reduced to .50% on average daily net assets in excess
of $250 million. The advisory fee for the Northwest 50 Fund is equal to an
annual rate of .625% of the Fund's average net assets. Should these assets of
the Fund grow to greater than $500 million, the fee would be decreased. Also,
under terms of the Northwest 50's advisory agreement, the Adviser will
reimburse the Fund should Fund expenses (excluding taxes, interest, and
portfolio brokerage but including the advisory fee) exceed in any fiscal year
1.50% of the average daily net assets up to $30 million, and 1% of such net
assets over $30 million. For the six-month period ended April 30, 1995, the Fund
accrued $115,438 under this agreement.
Directors' fees and expenses were paid directly by each Fund to directors
having no affiliation with the Funds other than in their capacity as directors.
Other officers and directors received no compensation from the Funds.
Shareholder servicing fees were paid to Murphey Favre Securities Services,
Inc. (MFSSI), the transfer and shareholder servicing agent, for services
incidental to issuance and transfer of shares, maintaining shareholder lists,
and issuing and mailing distributions and reports. The authorized monthly
shareholder servicing fees are $1.35 and $1.45 per Class A and Class B shares'
accounts, respectively.
Distribution expenses were paid to Murphey Favre, Inc. (MFI), the principal
underwriter and distributor, in accordance with separate Distribution Plans for
Class A and Class B shares. The Funds' Board of Directors adopted the Plans
pursuant to Rule 12b-1 of the Investment Company Act of 1940. The Class A
Distribution Plan provides that a Fund will reimburse MFI up to 0.25% of the
average daily net assets attributable to Class A shares annually for a portion
of its expenses incurred in distributing each Fund's Class A shares, including
payments to brokers. The Class B Distribution Plan provides that the Funds will
pay MFI a distribution fee, equal to 0.75% annually, and a service fee of 0.25%,
of that Fund's average daily net assets attributable to Class B shares.
For the six-month period ended April 30, 1995, commissions (sales charges
paid by investors) on the purchases of Class A shares totaled $148,337,
$149,809, and $175,243, of which $147,927, $149,429, and $166,744 was retained
by MFI, in the Bond & Stock Fund, the Growth & Income Fund, and the Northwest 50
Fund, respectively. For the six-month period ended April 30, 1995, MFI received
contingent deferred sales charges of $2,264, $3,532, and $4,576 for the Bond &
Stock Fund, the Growth & Income Fund, and the Northwest 50 Fund, respectively,
upon redemption of Class B shares as reimbursement for sales commissions
advanced by MFI at the time of such sales. Also, under terms of the distribution
contracts, MFI will reimburse the Funds if Fund expenses exceed the most
stringent applicable state blue sky limitation. No such reimburse-ment was
required during the six-month period ended April 30, 1995.
<TABLE>
NOTE 3 - CAPITAL STOCK
<CAPTION>
COMPOSITE BOND & STOCK FUND, INC.
<S> <C>
Capital stock authorized ............................. 300,000,000
Designated as:
Class A ............................................. 200,000,000
Class B ............................................. 100,000,000
Par value per share .................................. $ 0.0005
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS March 30,
ENDED ENDED ENDED 1994 TO
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1995 1994 1995 1994<F1>
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
SHARES
Sold ........................................................... 577,454 3,721,199 55,867 297,925
Issued for reinvestment of dividends and capital gains ......... 447,703 775,035 7,382 3,880
------------ ------------ ------------ ------------
1,025,157 4,496,234 63,249 301,805
Reacquired ..................................................... (2,227,791) (2,655,584) (16,550) (9,724)
------------ ------------ ------------ ------------
(1,202,634) 1,840,650 46,699 292,081
AMOUNT ============ ============ ============ ============
Sold ........................................................... $ 6,603,957 $ 44,066,794 $ 654,301 $ 3,425,449
Issued for reinvestment of dividends and capital gains ......... 5,115,222 9,068,535 84,567 44,237
------------ ------------ ------------ ------------
11,719,179 53,135,329 738,868 3,469,686
Reacquired ..................................................... (25,601,500) (30,848,942) (194,272) (112,920)
------------ ------------ ------------ ------------
$(13,882,321) $ 22,286,387 $ 544,596 $ 3,356,766
============ ============ ============ ============
<FN>
<F1>From the commencement of offering of Class B shares.
</FN>
</TABLE>
<TABLE>
<CAPTION>
COMPOSITE GROWTH & INCOME FUND
<S> <C>
Capital stock authorized ............................... 40,000,000
Designated as:
Class A .............................................. 25,000,000
Class B .............................................. 15,000,000
Par value per share .................................... $ 0.0001
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS MARCH 30,
ENDED ENDED ENDED 1994 TO
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1995 1994 1995 1994<F1>
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
SHARES
Sold ........................................................... 1,131,095 1,081,213 221,745 164,120
Issued for reinvestment of dividends and capital gains ......... 27,006 649,740 640 530
------------ ------------ ------------ ------------
1,158,101 1,730,953 222,385 164,650
Reacquired ..................................................... (684,585) (1,069,762) (12,855) (434)
------------ ------------ ------------ ------------
473,516 661,191 209,530 164,216
============ ============ ============ ============
AMOUNT
Sold ........................................................... $ 10,550,319 $ 13,506,652 $ 2,688,140 $ 2,044,182
Issued for reinvestment of dividends and capital gains ......... 3,824,548 7,873,953 98,357 3,988
------------ ------------ ------------ ------------
14,374,867 21,380,605 2,786,497 2,048,170
Reacquired ..................................................... (8,484,812) (13,346,379) (161,951) (5,419)
------------ ------------ ------------ ------------
$ 5,890,055 $ 8,034,226 $ 2,624,546 $ 2,042,751
============ ============ ============ ============
<FN>
<F1>From the commencement of offering of Class B shares.
</FN>
</TABLE>
<TABLE>
<CAPTION>
COMPOSITE NORTHWEST 50 FUND, INC.
<S> <C>
Capital stock authorized ............................ 10,000,000,000
Designated as:
Class A ........................................... 6,000,000,000
Class B ........................................... 4,000,000,000
Par value per share ................................. $ 0.00001
</TABLE>
<TABLE>
<CAPTION>
Class A Class B
----------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS MARCH 30,
ENDED ENDED ENDED 1994 TO
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1995 1994 1995 1994<F1>
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
SHARES
Sold ........................................................... 1,110,988 2,500,842 122,501 221,815
Issued for reinvestment of dividends and capital gains ......... 30,118 464,931 0 0
------------ ------------ ------------ ------------
1,141,106 2,965,773 122,501 221,815
Reacquired ..................................................... (2,165,672) (3,872,363) (20,537) (4,582)
------------ ------------ ------------ ------------
(1,024,566) (906,590) 101,964 217,233
============ ============ ============ ============
AMOUNT
Sold ........................................................... $ 15,882,597 $ 36,424,187 $ 1,768,782 $ 3,203,931
Issued for reinvestment of dividends and capital gains ......... 427,975 6,601,068 1,003 0
------------ ------------ ------------ ------------
16,310,572 43,025,255 1,769,785 3,203,931
Reacquired ..................................................... (31,105,832) (56,380,360) (298,643) (67,823)
------------ ------------ ------------ ------------
$(14,795,260) $(13,355,105) $ 1,471,142 $ 3,136,108
============ ============ ============ ============
<FN>
<F1>From the commencement of offering of Class B shares.
</FN>
</TABLE>
<TABLE>
NOTE 4 - SHAREHOLDER MEETING RESULTS
A special meeting of the Funds' shareholders was held March 21, 1995. Each matter voted upon at the meeting, as well as the
number of votes cast for, against or withheld, and abstained, are set forth below:
1. The Funds' shareholders elected the following nine directors:
<CAPTION>
BOND & STOCK FUND GROWTH & INCOME FUND NORTHWEST 50 FUND
---------------------- ---------------------- ----------------------
SHARES SHARES SHARES
SHARES WITHHOLDING SHARES WITHHOLDING SHARES WITHHOLDING
VOTED AUTHORITY VOTED AUTHORITY VOTED AUTHORITY
"FOR" TO VOTE "FOR" TO VOTE "FOR" TO VOTE
--------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Wayne L. Attwood, M.D .............. 8,736,364 111,556 4,795,376 63,342 5,234,171 97,419
Kristianne Blake ................... 8,721,506 126,414 4,789,911 68,807 5,221,356 110,234
Anne V. Farrell .................... 8,716,953 130,967 4,791,776 66,942 5,234,305 97,285
Edwin J. McWilliams ................ 8,722,315 125,605 4,786,433 72,285 5,219,672 111,918
Michael K. Murphy .................. 8,735,615 112,305 4,801,217 57,501 5,235,213 96,377
William G. Papesh .................. 8,749,732 98,188 4,802,102 56,616 5,235,006 96,584
Jay Rockey ......................... 8,710,427 137,493 4,787,275 71,443 5,218,929 112,661
Leland J. Sahlin ................... 8,739,440 108,480 4,796,603 62,115 5,232,895 98,695
Richard C. Yancey .................. 8,736,020 111,900 4,800,665 58,053 5,235,994 95,596
</TABLE>
2. The Funds' shareholders ratified the selection by a majority of the
independent members of the Funds' Board of Directors of LeMasters & Daniels as
independent accountants for each Fund for the current year, subject to
termination at any time without penalty.
<TABLE>
<CAPTION>
SHARES SHARES
VOTED VOTED
"FOR" "AGAINST" ABSTAINED
--------- --------- ---------
<S> <C> <C> <C>
Bond & Stock Fund ................. 8,588,588 38,964 220,368
Growth & Income Fund .............. 4,733,495 38,848 86,345
Northwest 50 Fund ................. 5,128,856 41,424 161,310
</TABLE>
FUND OFFICES
Composite Group of Funds
601 W. Main Avenue, Suite 801
Spokane, WA 99201-0613
Phone: (509) 353-3550
ADVISER
Composite Research & Management Co.
1201 Third Avenue, Suite 1220 Seattle, WA 98101-3015
DISTRIBUTOR
Murphey Favre, Inc.
1201 Third Avenue, Suite 780 Seattle, WA 98101-3015
CUSTODIAN
Investors Fiduciary Trust Company
127 W. 10th Street Kansas City, MO 64105-1716
INDEPENDENT PUBLIC ACCOUNTANTS
LeMaster & Daniels
601 W. Riverside Avenue, Suite 800 Spokane, WA 99201-0614
COUNSEL
Paine, Hamblen, Coffin, Brooke & Miller
717 W. Sprague Avenue, Suite 1200 Spokane, WA 99204-0464
OFFICERS
PRESIDENT
William G. Papesh
EXECUTIVE VICE PRESIDENT
Kerry K. Killinger
VICE PRESIDENTS
Gene G. Branson
Craig S. Hobbs
Douglas D. Springer
VICE PRESIDENT & TREASURER
Monte D. Calvin
SECRETARY
John T. West
BOARD OF DIRECTORS
CHAIRMAN
Leland J. Sahlin
MEMBERS
Wayne L. Attwood, M.D.
Kristianne Blake
Anne V. Farrell
Edwin J. McWilliams
Michael K. Murphy
William G. Papesh
Jay Rockey
Richard C. Yancey
This report is submitted for the general information of shareholders of the
Funds. For more detailed information about the Funds, their officers and
directors, fees, expenses and other pertinent information, please see the
prospectus of the Funds. This report is not authorized for distributiont to
prospective investors in the Funds unless preceded or accompanied by an
effective prospectus.
COMPOSITE GROUP
EQUITY FUNDS
SEMIANNUAL REPORT
APRIL 30, 1995
COMPOSITE BOND &
STOCK FUND, INC.
COMPOSITE GROWTH
& INCOME FUND
COMPOSITE
NORTHWEST 50
FUND, INC.
[LOGO]
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH DOCUMENTS.
</LEGEND>
<CIK> 0000022864
<NAME> COMPOSITE EQUITY SERIES, INC.
<SERIES>
<NUMBER> 1
<NAME> GROWTH & INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 98,367,422
<INVESTMENTS-AT-VALUE> 118,710,606
<RECEIVABLES> 607,886
<ASSETS-OTHER> 37,911
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 119,356,403
<PAYABLE-FOR-SECURITIES> 1,703,709
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 143,276
<TOTAL-LIABILITIES> 1,846,985
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 95,455,002
<SHARES-COMMON-STOCK> 8,566,880
<SHARES-COMMON-PRIOR> 8,093,364
<ACCUMULATED-NII-CURRENT> 107,084
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,604,148
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,343,184
<NET-ASSETS> 112,610,362
<DIVIDEND-INCOME> 1,292,128
<INTEREST-INCOME> 198,273
<OTHER-INCOME> 0
<EXPENSES-NET> 615,719
<NET-INVESTMENT-INCOME> 874,682
<REALIZED-GAINS-CURRENT> 1,604,148
<APPREC-INCREASE-CURRENT> 5,778,587
<NET-CHANGE-FROM-OPS> 8,257,417
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 834,082
<DISTRIBUTIONS-OF-GAINS> 3,249,511
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,131,095
<NUMBER-OF-SHARES-REDEEMED> 684,585
<SHARES-REINVESTED> 27,006
<NET-CHANGE-IN-ASSETS> 12,590,356
<ACCUMULATED-NII-PRIOR> 82,183
<ACCUMULATED-GAINS-PRIOR> 3,331,880
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 329,669
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 615,719
<AVERAGE-NET-ASSETS> 107,243,983
<PER-SHARE-NAV-BEGIN> 12.71
<PER-SHARE-NII> .10
<PER-SHARE-GAIN-APPREC> .83
<PER-SHARE-DIVIDEND> .10
<PER-SHARE-DISTRIBUTIONS> .40
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.14
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S SEMIANNUAL REPORT AND FORM N-SAR WHICH ARE ON FILE WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS QUALIFIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH DOCUMENTS.
</LEGEND>
<CIK> 0000022864
<NAME> COMPOSITE EQUITY SERIES, INC.
<SERIES>
<NUMBER> 1
<NAME> GROWTH & INCOME FUND CLASS B
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 98,367,422
<INVESTMENTS-AT-VALUE> 118,710,606
<RECEIVABLES> 607,886
<ASSETS-OTHER> 37,911
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 119,356,403
<PAYABLE-FOR-SECURITIES> 1,703,709
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 143,276
<TOTAL-LIABILITIES> 1,846,985
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 95,455,002
<SHARES-COMMON-STOCK> 373,746
<SHARES-COMMON-PRIOR> 164,216
<ACCUMULATED-NII-CURRENT> 107,084
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,604,148
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20,343,184
<NET-ASSETS> 4,899,056
<DIVIDEND-INCOME> 1,292,128
<INTEREST-INCOME> 198,273
<OTHER-INCOME> 0
<EXPENSES-NET> 615,719
<NET-INVESTMENT-INCOME> 874,682
<REALIZED-GAINS-CURRENT> 1,604,148
<APPREC-INCREASE-CURRENT> 5,778,587
<NET-CHANGE-FROM-OPS> 8,257,417
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,699
<DISTRIBUTIONS-OF-GAINS> 82,370
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 221,745
<NUMBER-OF-SHARES-REDEEMED> 12,855
<SHARES-REINVESTED> 640
<NET-CHANGE-IN-ASSETS> 12,590,356
<ACCUMULATED-NII-PRIOR> 82,183
<ACCUMULATED-GAINS-PRIOR> 3,331,880
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 329,669
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 615,719
<AVERAGE-NET-ASSETS> 107,243,983
<PER-SHARE-NAV-BEGIN> 12.68
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> .84
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> .40
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.11
<EXPENSE-RATIO> 1.91
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
