forty-EIGHTH
annual report
for the year ended
september 30,
1997
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.
Concord Fund,
INC.
January 8, 1998
To All Shareholders:
Enclosed is the Annual Report for the year ended September 30, 1997. The net
asset value per share on that date was $26.06 per share compared with $29.30 one
year earlier. While most of this decline was due to the large dividend paid in
January 1997, there was a decrease in net assets from operations. Investment
gains were more than offset by a net operating loss. Because it is uneconomic to
operate a fund the size of Concord Fund, and there are no prospects of
increasing the assets of the fund substantially, the fund Directors have decided
to liquidate the fund. We are sending you with the annual report a proxy
statement describing the liquidation. Please read the proxy statement and vote
your proxy.
Sincerely,
Gerald I. White, CFA
President
Independent Auditors' Report
To the Board of Directors and Shareholders
Concord Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Concord
Fund, Inc., including the schedule of investments, as of September 30, 1997, and
the related statement of operations for the year then ended, the statements of
changes in net assets for the two years then ended, and the financial highlights
for the four years then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the year ended September 30,
1993 were audited by other auditors whose report dated June 1, 1994, expressed
an unqualified opinion on those financial highlights. We conducted our audits in
accordance with generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of September 30, 1997, by correspondence
with the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion. In our opinion, the financial statements and
financial highlights referred to above present fairly, in all material respects,
the financial position of Concord Fund, Inc. at September 30, 1997, the results
of its operations for the year then ended, and the changes in its net assets for
the two years then ended and financial highlights for the four years then ended,
in conformity with generally accepted accounting principles. As discussed in
Note E to the financial statements, the Board of Directors approved a Plan of
Liquidation and Dissolution of the Fund and are reccommending shareholder
approval of the Fund's liquidation and dissolution pursuant to the plan.
Wolf & Company, P.C.
Boston, Massachusetts
November 19, 1997
Statement of Assets and Liabilities September 30, 1997 Assets Investments at
market (cost-$507,390) - Note C $ 507,390 Cash 295,124 Prepaid expenses 16,844
Total Assets 819,358
Liabilities
Accounts payable and accrued expenses 29,600 Total Liabilities 29,600 Net Assets
(equivalent to $26.06 per share based on 30,308 shares outstanding) Note D $
789,758
Statement of Operations
Year Ended September 30, 1997
Investment Income (Loss)
Income:
Dividends $ 6,760
Interest 28,552
35,312
Expenses:
Custodian and
accounting fees $ 41,819)
Professional fees 29,903)
Officer's compensation
and expenses-
Note B 6,000)
Directors' fees 2,000)
Stockholder and regula-
tory reports 904)
Insurance 2,808)
Miscellaneous 1,214) 84,648
Net Investment Loss (49,336)
Realized and unrealized gain
on investments
Net realized gain from
investment
transactions 112,879)
Change in unrealized
appreciation of
investments (77,025))
Net Gain on Investments 35,854
Net Decrease in Net Assets
Resulting from Operations $(13,482)
See notes to financial statements.
Schedule of Investments
September 30, 1997
Name of Issuer Face Market
and Title of Issue Amount Value
Short-term Securities
Bank Commercial Paper
due 10/31/97 with a 5.33%
effective yield on the date
of purchase $507,390 $507,390)
Total Short-term Securities
(Cost $507,390) (64.2%) 507,390)
Cash (37.4%) 295,124)
Prepaid Expenses)
less Liabilities (1.6%) (12,756)
Total Net Assets (100%) $789,758)
See notes to financial statements.
Statements of Changes In Net Assets
Year Ended
September 30
1997 1996
Increase (Decrease)
in Net Assets
from Operations
Net investment loss $ (49,336) $ (6,947) Net realized gain from investment
transactions 112,879) 87,341) Change in unrealized appreciation of investments
(77,025) (15,574) Net Increase (Decrease) In Net Assets Resulting from
Operations (13,482) 64,820) Distributions To Shareholders From Net Realized Gain
On Investments-Note A (87,260) (18,948) Capital Share Transactions-Note D Cost
of shares repurchased (22,617) (84,154) Net Decrease in Net Assets (123,359)
(38,282) Net Assets Beginning of year 913,117) 951,399) End of year $ 789,758 $
913,117)
See notes to financial statements.
Financial Highlights
Selected data for each share of capital stock outstanding throughout each year:
Year Ended September 30,
1997 1996 1995 (a) 1994 (a) 1993(a)
Net Asset Value, Beginning of Year $29.30 $28.04 $29.34 $29.40 $26.89
Income/(Loss) from Investment Operations:
Net Investment Loss (1.61) (0.26) (1.08) (.51) (0.22)
Net Realized and Unrealized Gain on Investments 1.17 2.07 1.36 .45 2.73
Total From Investment Operations (0.44) 1.81 .28 (.06) 2.51
Less Distributions to Shareholders From:
Net Realized Gains (2.80) (0.55) (1.58) 0.00 0.00
Capital Paid In 0.00 0.00 0.00 0.00 0.00
Total Distributions (2.80) (0.55) (1.58) 0.00 0.00
Net Asset Value, End of Year $26.06 $29.30 $28.04 $29.34 $29.40
Total Return (1.62%) 6.67% 1.20% (0.20%) 9.33%
Ratios and Supplemental Data:
Net Assets, End of Year (000's omitted) $790 ) $913 ) $951 ) $1,067 )
$1,115 )
Ratios to Average Net Assets:
Expenses 10.19% 5.02% 8.57% 5.16% 4.03%
Net Investment Loss (5.94%) (0.71%) (3.57%) (1.78%) (0.77%)
Portfolio Turnover Rate 0.00% 0.00% 0.00% 0.00% 19.11%
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 September 30, 1997, 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: Investments are valued at market values. Securities
that are traded on U.S. exchanges are valued at the last sales price or, in the
absence of a reported sale, the last bid price. Unlisted securities are valued
at the bid price. Short-term U.S. Government securities are carried at amortized
cost. Short-term investments other than U. S. Government securities 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:
For the year ended September 30, 1997, the Fund qualified 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 receivable on investment securities and dividends payable to
shareholders on the ex-dividend date.
Note B--Officer's Compensation
The Fund acts as its own investment adviser and incurred costs for an officer's
salary and expenses in connection with investment advisory and administrative
services.
Note C--Investment Transactions
There were no purchases of securities (excluding short-term and U.S. Government
Securities) during the year ended September 30, 1997. Proceeds from sales of
securities (excluding short-term and U.S. Government securities) aggregated
$227,980 during the year ended September 30, 1997. Net realized gain on sales of
investments was determined on the basis of identified cost. See also Note E.
Notes to financial statements-(Cont.)
Note D--Capital Stock
At September 30, 1997, there were 2,000,000 shares of $1 par value capital stock
authorized. During fiscal 1997 and 1996, no capital shares were sold, and 855
and 2,766 shares were repurchased for $22,617 and $84,154, respectively. Net
assets at September 30, 1997 consisted of: Capital stock-30,308 shares at $1.00
par value outstanding $ 30,308) Paid-in surplus 646,242) Capital paid in
676,550) Accumulated net realized gains on securities transactions 113,208
Net assets at September 30, 1997 $789,758)
During the year ended September 30, 1997, the Fund reclassified $49,336 from
accumulated net investment loss to capital paid in.
Note E--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 $18,156 in 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.
Concord Fund,
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.
