REPORT TO SHAREHOLDERS
FOR THE SIX MONTHS ENDED
MARCH 31,
1998
Nothing contained herein is to be considered an offer of sale or solicitation of
an offer to buy, unless a Prospectus has been previously received and except in
conjunction with a Prospectus.
<PAGE>
May 27, 1998
To All Shareholders:
Enclosed is the semiannual report of the Fund covering the six months ended
March 31, 1998.
The net asset value of the Fund on that date was $19.36 per share. The
decline from the September 30, 1997 net asset value per share of $26.06 was due
to the dividend payment of $3.76 per share in January, 1998 and the expenses
connected with the operation of the Fund, the liquidation process, and the
investigation by the Securities and Exchange Commission.
In early April we sent you a notice of a Special Meeting of Shareholders
called to approve the liquidation of the fund. The meeting was to be held April
30th but has had to be adjourned because we do not have sufficient shareholder
votes. Liquidation requires the affirmative vote of two-thirds of the shares
outstanding. If you have not sent in your proxy, please do so as soon as
possible.
The assets of the Fund consist entirely of cash and cash equivalents. We
expect to make an initial liquidation payment shortly after shareholder approval
is received. A final payment will be made after providing for the remaining
liabilities of the Fund.
Sincerely,
Gerald I. White, CFA
President
<PAGE>
Schedule of Investments
March 31, 1998
Name of Issuer Face Market
and Title of Issue Amount Value
Short-term Securities
Bank Commercial Paper
due 4/6/98 with a 5.33%
effective yield on the date
of purchase.................. $502,146 $502,146)
Total Short-term Securities
(Cost $502,146) (85.9%)......... 502,146)
Cash (21.6%)....................... 126,147)
Prepaid Expenses)
less Liabilities (7.5%)....... (43,799)
Total Net Assets (100%)............ $584,494)
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities
March 31, 1998
ASSETS
Investments at
cost - Note B............................ $ 502,146
Cash ...................................... 126,147
Prepaid expenses............................ 12,658
Total Assets................................ 640,951
LIABILITIES
Accounts payable and accrued expenses....... 56,457
Total Liabilities........................... 56,457
Net Assets (equivalent to $19.36 per share
based on 30,195 shares outstanding) -
Note C................................... $ 584,494
Statement of Operations
For the Six Months Ended March 31, 1998
Investment Income (Loss)
Income:
Interest..............................$ 18,198
Expenses:
Custodian and
accounting fees..........$ 40,690)
Professional fees............ 59,332)
Stockholder and regula-
tory reports............... 4,247)
Insurance.................... 1,400)
Miscellaneous................ 1,375) 107,044
Net Investment Loss........ (88,846)
Net Decrease in Net Assets
Resulting from Operations................ $ (88,846)
See notes to financial statements.
<PAGE>
Statements of Changes In Net Assets
For the six For the year
months ended ended
March 31, 1998Sept. 30, 1997
Increase (Decrease)
in Net Assets
from Operations
Net investment loss.............$ (88,846) $ (49,336)
Net realized gain from
investment transactions...... 112,879)
Change in unrealized
appreciation of
investments.................. (77,025)
Net Increase (Decrease) In
Net Assets Resulting
from Operations................. (88,846) (13,482)
Distributions To Shareholders
From Net Realized Gain On
Investments-Note A.............. (113,538) (87,260)
Capital Share
Transactions-Note C
Cost of shares repurchased...... (2,880) (22,617)
Net Decrease
in Net Assets................... (205,264) (123,359)
Net Assets
Beginning of period............. 789,758) 913,117)
End of period ..................$ 584,494 $ 789,758)
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note A--Accounting Policies
Concord Fund, Inc., (the "Fund") is a diversified, open-end management
investment company which has been registered under the Investment Company Act of
1940, as amended. At March 31, 1998, Fund shares were not available for sale to
the general public since such shares were not currently registered for sale
under Securities and Exchange Commission requirements. Significant accounting
policies of the Fund are as follows:
Valuation of Investments: Short-term investments are carried at cost with
earned income included in interest receivable. Investment security transactions
are recorded on the date of purchase or sale.
Federal Income Taxes: The Fund qualifies to be taxed as a "regulated
investment company" and, as such, (and by complying with the applicable
provisions of the Internal Revenue Code), was not subject to federal income tax
on taxable income (including any realized capital gains) which was distributed
to shareholders. Realized gains from security transactions are distributed to
shareholders in the succeeding year.
The Fund declared and paid in January, 1998, a dividend on 1997 capital
gains of $3.76 per share aggregating approximately $113,000.
Dividends: The Fund records dividends payable to shareholders on the
ex-dividend date.
Note B--Investment Transactions
There were no purchases or sales of securities (excluding short-term and
U.S. Government Securities) during the period ended March 31, 1998.
Note C--Capital Stock
At March 31, 1998, there were 2,000,000 shares of $1 par value capital
stock authorized. During the six month period ending March 31, 1998 and the
fiscal year 1997, no capital shares were sold, and 113 and 855 shares were
repurchased for $2,880 and $22,617, respectively.
Net assets at March 31, 1998
consisted of:
Capital stock-30,195 shares at $1.00
par value outstanding................. $ 30,195)
Paid-in surplus.......................... 554,299)
Net assets at March 31, 1998............. $584,494)
During the period ended March 31, 1998, the Fund reclassified $88,846 from
accumulated net investment loss to capital paid in.
<PAGE>
Note D--Proposed Dissolution
In 1997, the Board of Directors of the Fund approved a Plan of Liquidation
and Dissolution of the Fund after concluding that this was in the best interest
of the Fund.
Consequently, the Fund engaged a law firm to prepare a proxy statement to
obtain shareholder approval for the dissolution and, if shareholder approval is
obtained, to dissolve the Fund in 1998. Expenses incurred in connection with the
proposed dissolution amounted to $4,186 for the six month period ending March
31, 1998 and $18,156 for fiscal 1997.
As a result of the intent to dissolve the Fund, the Fund disposed of its
common stock investments in September 1997 and intends to invest only in
short-term liquid investments.
<PAGE>
Financial Highlights
Selected data for each share of capital stock outstanding throughout each
period:
<TABLE>
<CAPTION>
For the Six Months Ended Year Ended
March 31, September 30,
1998 1997 1996 1995 (a) 1994 (a) 1993(a)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $26.06 $29.30 $28.04 $29.34 $29.40 $26.89
Income/(Loss) from Investment Operations:
Net Investment Loss............................. (2.94) (1.61) (0.26) (1.08) (.51) (0.22)
Net Realized and Unrealized Gain on Investments. 0.00 1.17 2.07 1.36 .45 2.73
Total From Investment Operations..................... (2.94) (0.44) 1.81 .28 (.06) 2.51
Less Distributions to Shareholders From:
Net Realized Gains.............................. (3.76) (2.80) (0.55) (1.58) 0.00 0.00
Capital Paid In................................. 0.00 0.00 0.00 0.00 0.00 0.00
Total Distributions.................................. (3.76) (2.80) (0.55) (1.58) 0.00 0.00
Net Asset Value, End of Period....................... $19.36 $26.06 $29.30 $28.04 $29.34 $29.40
Total Return......................................... (12.45%) (1.62%) 6.67% 1.20% (0.20%) 9.33%
Ratios and Supplemental Data:
Net Assets, End of Period (000's omitted)............ $585 $790 $913 $951 $1,067 $1,115
Ratios to Average Net Assets:
Expenses........................................ 15.01% 10.19% 5.02% 8.57% 5.16% 4.03%
Net Investment Loss............................. (12.45%) (5.94%) (0.71%) (3.57%) (1.78%) (0.77%)
Portfolio Turnover Rate.............................. 0.00% 0.00% 0.00% 0.00% 0.00% 19.11%
</TABLE>
<PAGE>
Concord Fund, Inc.
Custodian
JEFFERIES & COMPANY, INC.
11100 Santa Monica Blvd., 10th Floor
Los Angeles, CA 90025
Transfer Agent & Dividend Dispersing Agent
CHASE MELLON SHAREHOLDER SERVICES
450 West 33rd Street
New York, NY 10001
Counsel Independent Auditors
BERNER & BERNER, P.C. WOLF & COMPANY, P.C.
515 Madison Avenue One International Place
New York, NY 10022 Boston, MA 02110
Record of Distributions
Distributions Net asset
Dividends Net asset from value plus
Fiscal years from value per realized cumulative
Ended ordinary share at end gain on capital gain
September 30, income of year investments distributions
1950.......... $ .30 $11.32 $ .05 $11.37
1951.......... .65 12.55 1.25 13.85
1952.......... .39 12.73 None 14.03
1953.......... .48 11.98 .72 14.00
1954.......... .42 14.59 .33 16.94
1955.......... .60 17.83 1.02 21.20
1956.......... .61 16.03 2.85 22.25
1957.......... .51 12.71 1.90 20.83
1958.......... .49 14.91 .50 23.53
1959.......... .39 14.58 1.90 25.10
1960.......... .44 13.76 None 24.28
1961.......... .28 14.21 1.35 26.08
1962.......... .19 10.38 None 22.25
1963.......... .16 12.84 None 24.71
1964.......... .17 13.18 None 25.05
1965.......... .12 13.94 None 25.81
1966.......... .11 13.68 .30 25.85
1967.......... .22 18.74 .50 31.41
1968.......... .30 23.20 None 35.87
1969.......... .50 15.17 3.96 31.80
1970.......... .05 11.42 .83* 28.88
1971.......... .22 11.05 None 28.51
1972.......... .24 11.43 None 28.39
1973.......... .25 10.08 None 27.54
1974.......... .11 6.64 None 24.10
1975.......... .14 7.93 None 25.39
1976.......... .16 11.78 None 29.24
1977.......... .32 12.49 None 29.95
1978.......... .39 15.03 None 32.49
1979.......... .48 17.83 None 35.29
1980.......... .56 19.24 None 36.70
1981.......... .57 19.38 None 36.84
1982.......... .75 20.09 None 37.55
1983.......... .78 25.77 None 43.23
1984.......... .78 26.33 None 43.79
1985.......... 1.20 27.40 None 44.86
1986.......... 1.20 27.70 None 45.16
1987.......... .76 33.45 None 50.91
1988.......... .30 26.54 2.25 46.25
1989.......... .06 26.41 1.04 47.16
1990.......... .27 21.16 None 41.91
1991.......... .15 23.64 None 44.39
1992.......... None 26.89 None 47.64
1993.......... None 29.40 None 50.15
1994.......... None 29.34 None 50.09
1995.......... None 28.04 1.58 50.37
1996.......... None 29.30 .55 52.18
1997.......... None 26.06 2.80 51.74
*Includes 35(cent) per share of net realized short term capital gains
taxable to stockholders as ordinary income.
