CONCORD FUND, INC.
FORTY-NINTH
ANNUAL REPORT
FOR THE YEAR ENDED
SEPTEMBER 30, 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>
CONCORD FUND, INC.
November 30, 1998
Dear Stockholder,
Enclosed is the Annual Report for the year ended September 30, 1998. As the
Fund is liquidating, this is the final Annual Report that you will receive.
The liquidating value of the Fund is $15.43 per share. To receive payment
for your shares, you must return the Letter of Transmittal and any share
certificates in your possession directly to ChaseMellon Shareholder Services.
If you have not received the necessary forms, require any assistance or
have questions about how to receive your check, please call ChaseMellon
Shareholder Services at 1-800-777-3674.
The Fund's directors appreciate your patience while we worked to determine
the best course of action regarding the Fund.
Sincerely,
Gerald I. White, CFA
President
<PAGE>
Schedule of Investments
September 30, 1998
Name of Issuer Face Market
and Title of Issue Amount Value
SHORT-TERM SECURITIES
BANK COMMERCIAL PAPER
DUE 10/22/98 WITH A 5.27%
EFFECTIVE YIELD ON THE DATE
OF PURCHASE.................. $460,891 $460,891
TOTAL SHORT-TERM SECURITIES
(COST $460,891) (102.6%)........ 460,891
CASH (11.6%)....................... 52,014
LIABILITIES (14.2%)................ (63,648)
TOTAL NET ASSETS (100%)............ $449,257
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities in Liquidation
September 30, 1998
ASSETS
Investments at market (cost-$460,891) -
Note C............................... $ 460,891
Cash .................................. 52,014
TOTAL ASSETS............................ 512,905
LIABILITIES
Accounts payable and accrued expenses...... 63,648
TOTAL LIABILITIES.......................... 63,648
Net Assets In Liquidation (equivalent
to $15.43 per share based on 29,124
shares outstanding) -Note E............. $ 449,257
Statement of Operations
Year Ended September 30, 1998
INVESTMENT INCOME (LOSS)
Income:
Interest............................. $ 29,548
Expenses:
Custodian and
accounting fees..........$ 118,633
Professional fees.......... 110,354
Stockholder and regulatory
reports.................. 4,663
Insurance.................. 1,862 235,512
Net Investment Loss........ (205,964)
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS................. -
NET DECREASE IN NET ASSETTS
RESULTING FROM OPERATIONS...... $ (205,964)
See notes to financial statements.
<PAGE>
Statements of Changes In Net Assets
Year Ended
September 30
1998 1997
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (205,964) $ (49,336)
Net realized gain from
investment transactions...... - 112,879
Change in unrealized
appreciation of
investments.................. - (77,025)
Net DECREASE IN
NET ASSETS RESULTING FROM
OPERATIONS...................... (205,964) (13,482)
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET REALIZED GAIN ON
INVESTMENTS-Note C.............. (113,538) (87,260)
CAPITAL SHARE
TRANSACTIONS-Note E
Cost of shares repurchased...... (20,999) (22,617)
NET DECREASE
IN NET ASSETS .................. (340,501) (123,359)
NET ASSETS
Beginning of year............... 789,758 913,117
End of year ....................$ 449,257 $ 789,758
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note A--NATURE OF OPERATIONS AND BASIS OF ACCOUNTING
Concord Fund, Inc., (the "Fund"), has historically sold fund shares
previously registered for sale under the Securities and Exchange Commission
requirements. Since the Fund decided to liquidate, it measures its assets and
liabilities at the amounts of cash expected in liquidation and reports changes
in estimates when they are known.
Note B--PLAN OF LIQUIDATION
Effective June 26, 1998, the shareholders voted to liquidate the Fund after
concluding that this was in the best interest of the Fund. Management will begin
liquidating the Fund in December 1998. The remaining funds will be distributed
to shareholders upon complete liquidation of the Fund's assets and liabilities.
Note C--ACCOUNTING POLICIES
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, 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 plus
accrued interest.
Federal Income Taxes: For the year ended September 30, 1998, 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 succeding year.
The Fund declared and paid in January, 1998, a dividend on 1997 capital
gains of $3.76 per share aggregating $113,538.
Note D--INVESTMENT TRANSACTIONS
There were no purchases or sales of securities (excluding short-term
Securities) during the year ended September 30, 1998.
<PAGE>
NOTES TO FINANCIAL STATEMENTS-(Cont.)
Note E--CAPITAL STOCK
At September 30, 1998, there were 2,000,000 shares of $1 par value capital
stock authorized. During fiscal 1998 and 1997, no capital shares were sold, and
1,184 and 855 shares were purchased for $20,999 and $22,617, respectively.
Net assets at September 30, 1998
consisted of:
Capital stock 29,124 shares at $1.00
par value outstanding........ $ 29,124
Paid-in surplus................. 420,133
Capital paid in................. 449,257
Accumulated net realized gains on
securities transactions...... -
Net assets at September 30, 1998... $ 449,257
During the year ended September 30, 1998, the Fund reclassified $205,964
from accumulated net investment loss to capital paid in.
<PAGE>
Financial Highlights
Selected data for each share of capital stock outstanding throughout each year:
<TABLE>
<S> <C> <C> <C> <C> <C>
Year Ended September 30,
1998 1997 1996 1995 1994
----------------------------------------------------------
Net Asset Value, Beginning of Year................... $26.06 $29.30 $28.04 $29.34 $29.40
Income/(Loss) from Investment Operations:
Net Investment Loss............................. (6.87) (1.61) (0.26) (1.08) (.51)
Net Realized and Unrealized Gain on Investments. 0.00 1.17 2.07 1.36 .45
Total From Investment Operations..................... (6.87) (0.44) 1.81 .28 (.06)
Less Distributions to Shareholders From:
Net Realized Gains.............................. (3.76) (2.80) (0.55) (1.58) 0.00
Capital Paid In................................. 0.00 0.00 0.00 0.00 0.00
Total Distributions.................................. (3.76) (2.80) (0.55) (1.58) 0.00
Net Asset Value, End of Year......................... $15.43 $26.06 $29.30 $28.04 $29.34
Total Return......................................... (33.17%) (1.62%) 6.67% 1.20% (0.20%)
Ratios and Supplemental Data:
Net Assets, End of Period (000's omitted)............ $449 $790 $913 $951 $1,067
Ratios to Average Net Assets:
Expenses........................................ 38.68% 10.19% 5.02% 8.57% 5.16%
Net Investment Loss............................. (33.83%) (5.94%) (0.71%) (3.57%) (1.78%)
Portfolio Turnover Rate.............................. 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
<PAGE>
Independent Auditor's Report
To the Board of Directors and Shareholders
CONCORD FUND, INC.
We have audited the accompanying statement of assets and liabilities in
liquidation of Concord Fund, Inc., including the schedule of investments, as of
September 30, 1998 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 five 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.
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, 1998 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.
As described in Note B to the financial statements, the shareholders of
Concord Fund, Inc. approved a plan of liquidation on June 26, 1998, and the Fund
will commence liquidation in December 1998. As a result, the fund has changed
its basis of accounting for periods subsequent to June 26, 1998 to the
liquidation basis.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the net assets in liquidation
of Concord Fund, Inc. at September 30, 1998, 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 five years then ended, in conformity with
generally accepted accounting principles.
WOLF & COMPANY, P.C.
Boston, Massachusetts
November 3, 1998
<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
Fiscal years Dividends Net asset Distributions Net asset
Ended from value per from realized value plus
September 30, ordinary share are end gain on cumulative
income of year investments capital gain
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
1998.......... None 15.43 3.76 44.87
*Includes 35(cent) per share of net realized short term capital gains
taxable to stockholders as ordinary income.
