SEMI-ANNUAL REPORT
JUNE 30, 1998
Investment Advisor:
PACIFIC ALLIANCE
THE INVESTMENT MANAGEMENT DIVISION OF
UNION BANK OF CALIFORNIA, N.A.
475 Sansome St.
Suite 1400
San Francisco, CA 94111
<PAGE>
CURRENT INCOME SHARES, INC.
- --------------------------------------------------------------------------------
PACIFIC ALLIANCE
August 14, 1998
Dear Shareholders:
We are pleased to report your company's financial results for the six
months ended June 30, 1998. During the six-month period, we paid total dividends
of $0.40 per share, consisting of quarterly dividends per share of 20.0 cents.
The net asset value per share at June 30, 1998 was $13.51, up from $13.40 at
December 31, 1997. Including dividends, the total return for Current Income
Shares based on net asset value was 3.86% during the six month period. The total
return based on market value was 2.81%.
The U.S. continues to enjoy a period of declining interest rates, which
generally boosts bond prices. The benchmark 30-year bond yield fell from about
5.92% on December 31, 1997 to 5.63% on June 30, 1998, its lowest yield since
30-year bonds were first issued in 1977. The ten-year Treasury note fell from
5.74% to 5.45% while the five-year note fell from about 5.71% to 5.47%.
Short-term interest rates remain at 5.50%, as the Federal Reserve Board believes
that strong U.S. economic growth is being offset by the worsening problems in
Asia.
Although it initially appeared that the Asian economic crisis was
subsiding, riots in Indonesia, nuclear testing in India and Pakistan, concerns
about the devaluation of Chinese currency, and the resignation of the Japanese
prime minister amid a lingering recession created new fears about the region.
Current Income Shares was adversely affected by these developments, since the
portfolio is primarily a corporate bond portfolio, which is sensitive to credit
concerns.
Indeed, during the six-month period, corporate bonds generally
underperformed U.S. Treasury bonds as investors throughout the world continued
to seek a safe haven in U.S. government securities. At the same time, Asia's
bleak economic outlook suggested that worldwide growth would slow, thus
depressing corporate profits. In particular, companies which do business in Asia
saw their bonds underperform significantly.
While our strategy is to minimize our corporate bond portfolio's exposure
to Asia, we believe that a properly diversified portfolio of corporate bonds
offers excellent value today. Indeed, yields on corporates are at the highest
level in relation to U.S. Treasury bonds in about five years. For example, an
average Single-A rated industrial bond is offering about 90 basis points ( a
basis point equals 0.01%) more than a comparably maturing Treasury bond. During
the past six months, we have purchased high quality long-term bonds issued by KN
Energy, NewsCorp., Philips Petroleum and Wells Fargo.
In adding these four positions, we have increased the portfolio's duration
(sensitivity to interest rates) from about 5.5 years
<PAGE>
- --------------------------------------------------------------------------------
on December 31, 1997 to 5.8 years at June 30, 1998. That proved to be a positive
factor for performance as interest rates fell during the period.
Our outlook is for a continuing environment of low interest rates and low
inflation. The Asian problem is exerting downward pressure on U.S. economic
growth. However, we do not see a recession on the horizon which would adversely
impact the ability of corporations to pay bondholders. Just the same, we
continued to maintain the credit quality of the portfolio at an average rating
of Single A, a higher rating than most of our competitors. Meanwhile, we
continue to enjoy higher yields on corporate bonds in relation to Treasury
securities.
On the following pages, you will find the complete portfolio of investments
held by Current Income Shares on June 30, 1998, together with the financial
statements for the six-month period ending on that date.
Thank you for investing in Current Income Shares, Inc.
/S/SIGNATURE
Clark R. Gates
President
<PAGE>
CURRENT INCOME SHARES, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
ASSETS
Investments in securities at
market value:
Bonds (Cost $45,479,150) ....... $48,912,422
Cash ............................. 294
Interest receivable and
other assets ................... 769,840
-----------
Total Assets ................... 49,682,556
-----------
LIABILITIES
Accrued expenses ................. 64,939
-----------
NET ASSETS .......................... $49,617,617
===========
Net assets are represented by:
Capital stock, $1 par, 25,000,000
shares authorized 3,673,334
shares issued and outstanding . $ 3,673,334
Paid-in capital in excess of par
value ......................... 42,977,827
Accumulated net realized losses (507,241)
Unrealized appreciation on
investments ................... 3,433,272
Overdistributed net investment
income ........................ 40,425
-----------
NET ASSETS .......................... $49,617,617
===========
NET ASSET VALUE PER SHARE
($49,617,617/3,673,334 shares
of common stock outstanding) $13.51
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest ........................ $ 1,733,410
-----------
Total Investment Income ........ $1,733,410
EXPENSES
Investment management
and advisory fees .............. 122,646
Custodian fees .................. 3,742
Transfer agent fees ............. 28,334
Directors' fees ................. 14,877
Printing ........................ 19,766
Legal and auditing fees ......... 17,717
Listing fees -- NYSE ............ 2,487
Insurance expense ............... 4,163
Taxes ........................... 4,445
Other expenses .................. 4,866
----------
Total Expenses ................. 223,043
----------
Net Investment
Income ...................... $1,510,367
----------
REALIZED AND
UNREALIZED GAINS AND LOSSES
ON INVESTMENTS IN SECURITIES
Realized gain from securities transactions:
Proceeds from sales .......... 10,246,620
Cost of securities
sold ........................ (10,235,555)
-----------
Net realized gain on
investments sold ......... 11,065
Unrealized appreciation
of investments:
Beginning of period .......... 3,094,381
End of period ................ 3,433,272
----------
Net unrealized
appreciation during
the period ................ 338,891
---------
Net realized and
unrealized gain on
investments ............... 349,956
---------
Net increase in net assets
resulting from operations .... $1,860,323
==========
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
CURRENT INCOME SHARES, INC.
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
FOR THE PERIODS ENDED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS Twelve Months
06/30/98 12/31/97
---------- -------------
FROM INVESTMENT ACTIVITIES
<S> <C> <C>
Net investment income ............................................... $ 1,510,367 $ 3,119,049
Net realized gain (loss) on investments sold ........................ 11,065 (269,024)
Net unrealized appreciation of investments
during the period ................................................ 338,891 1,556,326
----------- -----------
Net increase in net assets resulting from operations ................ 1,860,323 4,406,351
Dividends to shareholders from net investment income ................ (1,469,334) (3,122,336)
----------- -----------
Increase in net assets ........................................... 390,989 1,284,015
NET ASSETS
Beginning of year ................................................... 49,226,628 47,942,613
----------- -----------
End of year [including (over)/underdistributed net investment
income of $40,425 and ($608) respectively] ....................... $49,617,617 $49,226,628
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
CURRENT INCOME SHARES, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
(Unaudited)
JUNE 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Standard & Poor's Principal Market
Security Rating Amount Value
- ---------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- (7.60% OF NET ASSETS)
<S> <C> <C> <C> <C> <C>
U.S. Treasury Bond 6.375%, 08/15/27 ...................... AAA $1,140,000 $1,253,099
U.S. Treasury Note 7.5%, 11/15/01 ........................ AAA 350,000 370,472
U.S. Treasury Note 6.625%, 05/15/07 ...................... AAA 2,000,000 2,146,140
- ---------------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $3,604,412) 3,769,711
- ---------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- (90.01%)
- ---------------------------------------------------------------------------------------------------------
ASSET BACKED (1.41% OF NET ASSETS)
Chase Manhattan Auto Grantor Trust,
Ser 1996-B, Cl A 6.61%, 09/15/02 ....................... AAA 693,081 698,674
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED (Cost $692,958) 698,674
- ---------------------------------------------------------------------------------------------------------
BANKS (9.66% OF NET ASSETS)
Bankers Trust 7.25%, 01/15/03 ............................ A- 1,500,000 1,558,125
First Nationwide Holdings 10.625%, 10/01/03 .............. B 500,000 566,250
Fleet Financial 7.125%, 04/15/06 ......................... A- 1,500,000 1,569,375
Wells Fargo Capital 7.960%, 12/15/26 ....................... BBB+ 1,000,000 1,098,750
- ---------------------------------------------------------------------------------------------------------
TOTAL BANKS (Cost $4,561,952) 4,792,500
- ---------------------------------------------------------------------------------------------------------
ELECTRICAL UTILITIES (9.82% OF NET ASSETS)
Chugach Electric 9.14%, 03/15/22 ......................... A 1,000,000 1,156,250
Houston Industries 9.375%, 06/01/01 ...................... BBB+ 2,000,000 2,175,000
UtiliCorp United 8.45%, 11/15/99 ......................... BBB 1,500,000 1,543,125
- ---------------------------------------------------------------------------------------------------------
TOTAL ELECTRICAL UTILITIES (Cost $4,597,659) 4,874,375
- ---------------------------------------------------------------------------------------------------------
ENERGY (9.94% OF NET ASSETS)
Phillips Petroleum 7.125%, 03/15/28 ........................ A- 1,000,000 1,021,250
Union Oil of California 9.125%, 02/15/06 ................. BBB+ 2,000,000 2,337,500
Union Pacific Resources 7%, 10/15/06 ..................... BBB 1,500,000 1,575,000
- ---------------------------------------------------------------------------------------------------------
TOTAL ENERGY (Cost $4,624,194) 4,933,750
- ---------------------------------------------------------------------------------------------------------
GAS (9.38% OF NET ASSETS)
Coastal 9.625%, 05/15/12 ................................. BBB- 2,000,000 2,555,000
KN Energy 7.250%, 03/01/28 ................................. BBB- 1,000,000 1,013,750
Panhandle Eastern 7.875%, 08/15/04 ....................... A 1,000,000 1,083,750
- ---------------------------------------------------------------------------------------------------------
TOTAL GAS (Cost $4,067,064) 4,652,500
- ---------------------------------------------------------------------------------------------------------
MANUFACTURING (8.18% OF NET ASSETS)
Lockheed Martin 7.7%, 06/15/08 ........................... BBB+ 1,500,000 1,651,875
Owens-Illinois 8.1%, 05/15/07 ............................ BB+ 1,250,000 1,323,438
Westvaco 10.125%, 06/01/19 ............................... A 1,000,000 1,085,000
- ---------------------------------------------------------------------------------------------------------
TOTAL MANUFACTURING (Cost $3,807,288) 4,060,313
- ---------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
CURRENT INCOME SHARES, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES (CONTINUED)
(Unaudited)
JUNE 30, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Standard & Poor's Principal Market
Security Rating Amount Value
- ---------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS (11.35% OF NET ASSETS)
<S> <C> <C> <C> <C> <C> <C>
GNMA Pool# 439463 8%, 12/15/26 ....................... AAA $5,435,238 $5,632,265
- ---------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS (Cost $5,539,225) 5,632,265
- ---------------------------------------------------------------------------------------------------------
RETAIL (3.13% OF NET ASSETS)
Staples 7.125%, 08/15/07 ............................. BBB- 1,500,000 1,554,375
- ---------------------------------------------------------------------------------------------------------
TOTAL RETAIL (Cost $1,496,847) 1,554,375
- ---------------------------------------------------------------------------------------------------------
SECURITIES BROKER (2.19% OF NET ASSETS)
Lehman Brothers Holding 8.75%, 05/15/02 .............. A 1,000,000 1,085,000
- ---------------------------------------------------------------------------------------------------------
TOTAL SECURITIES BROKER (Cost $1,058,189) 1,085,000
- ---------------------------------------------------------------------------------------------------------
SERVICE (3.13% OF NET ASSETS)
Loewen Group International 8.25%, 04/15/03 ........... BB+ 1,500,000 1,550,625
- ---------------------------------------------------------------------------------------------------------
TOTAL SERVICE (Cost $1,498,563) 1,550,625
- ---------------------------------------------------------------------------------------------------------
SOVEREIGN & SUPRANATIONAL (5.61% OF NET ASSETS)
Province of Nova Scotia 8.750%, 04/01/22 ............. A- 1,100,000 1,423,125
Province of Saskatchewan 9.375%, 12/15/20 ............ A 1,000,000 1,362,500
- ---------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN & SUPRANATIONAL (Cost $2,184,715) 2,785,625
- ---------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (6.57% OF NET ASSETS)
News America Holdings 7.750%, 02/01/24 ................. BBB- 1,000,000 1,076,250
WorldCom 9.375%, 01/15/04 ............................ BBB- 522,000 555,278
WorldCom 7.75%, 04/01/07 ............................. BBB- 1,500,000 1,625,625
- ---------------------------------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS (Cost $3,152,170) 3,257,153
- ---------------------------------------------------------------------------------------------------------
TRANSPORTATION (9.64% OF NET ASSETS)
AMR 10%, 04/15/21 .................................... BBB- 1,500,000 2,032,500
General Motors 8.95%, 07/02/09 ....................... A- 1,500,000 1,682,715
Norfolk Southern 7.05%, 05/01/37 ..................... BBB+ 1,000,000 1,068,750
- ---------------------------------------------------------------------------------------------------------
TOTAL TRANSPORTATION (Cost $4,112,324) 4,783,965
- ---------------------------------------------------------------------------------------------------------
CASH EQUIVALENT -- (0.97% OF NET ASSETS)
- ---------------------------------------------------------------------------------------------------------
Federated Prime Money Market 481,591 481,591
- ---------------------------------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $481,591) 481,591
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (98.58% OF NET ASSETS)
(COST $45,479,150) 48,912,422
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET
(1.42% of Net Assets) 705,195
- ---------------------------------------------------------------------------------------------------------
NET ASSETS (100.0% OF NET ASSETS) $49,617,617
=========================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
CURRENT INCOME SHARES, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
JUNE 30, 1998
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Current Income Shares, Inc. (the "Company") is registered under the
Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Company was incorporated on November 15,
1972, and commenced operations on March 27, 1973. The primary investment
objective of the Company is to seek a high level of current income for its
shareholders consistent with investment in a diversified portfolio in which
marketable debt securities considered by management to be of high quality will
predominate. To a lesser extent the Company may also invest in other debt
securities and in certain equities.
The following is a summary of significant accounting policies followed by the
Company in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
(a) Security valuation -- Portfolio securities listed or traded on a
national securities exchange are valued at the last reported sales
price; securities traded in the over-the-counter market and listed
securities for which no sales were reported on that date are valued at
the most recent bid price.
(b) Federal income taxes -- It is the Company's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income and net
capital gains to its shareholders. Accordingly, no Federal income tax
provision is required.
(c) Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amount of income and
expenses during the reporting period. Actual results could differ from
those estimates.
(d) Other -- Security transactions are accounted for on the trade date the
securities are purchased or sold. Purchased discounts and premiums on
securities held are accreted or amortized to interest income over the
life of each security using a method which approximates the effective
interest method. Interest income is recognized on the accrual basis of
accounting. Realized gains and losses are computed using the specific
cost of the securities sold.
2. Purchases and Sales of Securities
Purchases and sales of investment securities other than short-term securities
and U.S. Government obligations aggregated $4,113,640 and $209,886,
respectively. Purchases and sales of U.S. Government obligations aggregated $0
and $2,276,477, respectively.
As of June 30, 1998, unrealized appreciation for Federal income tax purposes
aggregated $3,433,272 of which $3,473,509 related to appreciated securities and
$10,237 related to depreciated securities. The aggregate cost for Federal income
tax purposes was not materially different from amounts reported for financial
reporting purposes.
Subsequent to October 31, 1997, the Company recognized net capital losses
that have been deferred to 1998 for tax purposes and can be used to offset
future capital gains at December 31, 1998. The company also had capital loss
carryforwards at December 31, 1997, that can be used to offset future capital
gains.
POST CAPITAL LOSS CAPITAL LOSS
10/31/1997 CARRYOVERS CARRYOVERS
LOSS DEFERRAL EXPIRING 2004 EXPIRING 2005
------------- ------------- -------------
$172,187 $249,377 $96,836
-6-
<PAGE>
CURRENT INCOME SHARES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
JUNE 30, 1998
- --------------------------------------------------------------------------------
3. Transactions with Affiliates
Pacific Alliance, the investment management division of Union Bank of
California, (the "Advisor") received fees of $122,646 for the period ended June
30, 1998 for providing investment management and advisory services to the
Company. The fee is based on an annual rate of 0.5% of the Company's average net
assets.
The Advisory Agreement requires that the Advisor reimburse the Company for
expenses (excluding interest, taxes, and the expenses of any offering of the
Company's securities and brokers commissions) incurred by the Company in excess
of one and one-half percent (1 1/2%) per year of the first $30 million of
average net assets of the Company and one percent (1%) of average net assets in
excess of $30 million. The expenses incurred by the Company for the six months
ended June 30, 1998 did not exceed the limitation established by the Advisory
Agreement.
Union Bank of California, N.A. acts as custodian ("the Custodian") for the
company. Fees of the Custodian are being paid on the basis of net assets of the
Company.
4. Agreements with Service Providers
Harris Trust Company of California provides Transfer Agent and Dividend
Reinvestment Plan services.
5. Financial Highlights
Selected data for each share of capital stock outstanding throughout each
period follows:
<TABLE>
<CAPTION>
01/01/98 TO 01/01/97 to 01/01/96 to 01/01/95 to 01/01/94 to 01/01/93 to
06/30/98 12/31/97 12/31/96 12/31/95 12/31/94 12/31/93
----------- ----------- ----------- ------------ ----------- -----------
PER SHARE OPERATING PERFORMANCE
<S> <C> <C> <C> <C> <C> <C>
Investment Income ................... $ 0.47 $ 0.97 $ 0.95 $ 1.00 $ 1.06 $ 1.09
Expenses ............................ (0.06) (0.12) (0.12) (0.12) (0.12) (0.12)
------- -------- -------- ------- ------- --------
Net Investment Income ............... 0.41 0.85 0.83 0.88 0.94 0.97
Dividends distributed from net
Investment Income ................. (0.40) (0.85) (0.88) (1.48) (0.94) (0.97)
Net realized and unrealized gain
(loss) on investments ............. 0.10 0.35 (0.54) 1.79 (1.74) 0.86
------- -------- -------- ------- ------- --------
Net increase (decrease) in
net asset value ................... 0.11 0.35 (0.59) 1.19 (1.74) 0.86
Net asset value:
Beginning of period ............... 13.40 13.05 13.64 12.45 14.19 13.33
------- -------- -------- ------- ------- --------
End of period ..................... $ 13.51 $ 13.40 $ 13.05 $ 13.64 $ 12.45 $ 14.19
======= ======== ======== ======= ======= ========
Per share market value:
End of period ..................... $12.125 $12.1875 $ 11.375 $11.875 $11.000 $ 13.00
Total investment return* ............ 3.86% 15.33% 3.54% 22.25% (8.33)% 10.53%
RATIOS AND SUPPLEMENTAL DATA
Ratio of expenses to average
net assets ........................ 0.91% 0.95% 1.0% 0.9% 0.9% 0.8%
Ratio of net investment income to
average net assets ................ 6.2% 6.5% 6.3% 6.6% 7.2% 6.9%
Portfolio turnover rate ............. 5.33% 52.10% 62.86% 118.52% 42.21% 24.15%
Net assets, end of period (000) ..... $46,618 $ 49,227 $ 47,943 $50,120 $45,739 $52,137
</TABLE>
*Does not reflect the brokerage commission.
-7-
<PAGE>
CURRENT INCOME SHARES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
JUNE 30, 1998
- --------------------------------------------------------------------------------
6. Unaudited Quarterly Results of Operations
The following is a summary of unaudited quarterly results of operations:
<TABLE>
<CAPTION>
Net Realized and
Unrealized Gain (Loss)
Net Investment Income on Investments
Investment ----------------------- ----------------------
Income Amount Per Share Amount Per Share
---------- --------- --------- ------ ---------
Three months ended:
<S> <C> <C> <C> <C> <C>
September 30, 1997 ........................ $908,688 $796,883 $0.22 $ 880,366 $0.24
December 31, 1997 ......................... 891,447 778,846 0.21 678,751 0.18
March 31, 1998 ............................ 751,621 734,667 0.20 (50,337) (0.01)
June 30, 1998 ............................. 758,746 734,667 0.20 400,293 0.11
September 30, 1996 ........................ $880,365 $771,119 $0.21 $ 60,387 $0.02
December 31, 1996 ......................... 882,933 757,664 0.21 869,895 0.24
March 31, 1997 ............................ 877,206 761,816 0.21 (1,163,210) (0.31)
June 30, 1997 ............................. 898,633 781,504 0.21 891,395 0.24
</TABLE>
7. Dividend Reinvestment Plan
The Company maintains a Dividend Reinvestment Plan (the "Plan") in which
shareholders may participate. The Plan is offered through Harris Trust Company
of California (the "Agent"). Under the Plan, the Agent uses dividends and other
cash distributions from the Company to purchase additional shares of Company
common stock in the open market for Plan participants. Participants may also
make certain cash contributions to the Plan. Further information regarding the
Plan may be obtained by writing to the Agent at: Harris Trust Company of
California, 311 West Monroe Street (11th Floor), Chicago, IL 60606.
-8-
<PAGE>
CURRENT INCOME SHARES, INC.
NOTES
- --------------------------------------------------------------------------------
<PAGE>
DIRECTORS
Willard H. Altman* Clark R. Gates
Morris A. Densmore* William R. Howell*
Stephen J. Dunn* Michael L. Noel*
*Serve as members of the Audit Committee
OFFICERS
Morris A. Densmore CHAIRMAN
Clark R. Gates PRESIDENT
Jack Montgomery VICE PRESIDENT AND PORTFOLIO MANAGER
Richard H. Earnest VICE PRESIDENT
Kevin A. Rogers VICE PRESIDENT
Paul Mastin TREASURER
Jonathan A. Wright SECRETARY
AUDITORS
Deloitte & Touche LLP
50 Fremont St.
San Francisco, CA 94105
CUSTODIAN
Union Bank of California
475 Sansome St. (15th Floor)
San Francisco, CA 94111
TRANSFER & DIVIDEND REINVESTMENT PLAN AGENT
Harris Trust Company of California
311 West Monroe St. (11th Floor)
Chicago, IL 60606
(800) 554-3406
COMPANY MAILING ADDRESS
Current Income Shares, Inc.
445 South Figueroa St., (3rd Floor)
Los Angeles, California 90071
COMPANY TELEPHONE
(888) 465-2825
NYSE SYMBOL
"CUR"
83353-98
CURRENT INCOME SHARES, INC.
