ALTERMAN INVESTMENT FUND, INC.
FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 1997 AND
YEAR ENDED APRIL 30, 1997
495152.1
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
SIX MONTHS ENDED OCTOBER 31, 1997
AND YEAR ENDED APRIL 30, 1997
TABLE OF CONTENTS
FINANCIAL STATEMENTS:
Statement of Assets and Liabilities................................... 1
Portfolio of Investments in Securities of Unaffiliated Issuers........ 2-7
Statements of Stockholders' Equity (Net Assets)....................... 8
Statements of Operations.............................................. 9
Statements of Changes in Net Assets................................... 10
Notes to Financial Statements......................................... 11-12
Selected Per Share Data and Ratios.................................... 13
495152.1
<PAGE>
Alterman Investment Fund, Inc.
Statement of Assets and Liabilities
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
ASSETS: October 31, 1997 April 30, 1997
-------------------------- ---------------------
<S> <C> <C>
Investment Securities at Market Value
(cost $21,556,020 and $21,490,783) $22,207,749 $21,742,103
Interest Receivable 368,374 381,539
Cash 25,018 16,594
Prepaid Expenses 11,581 5,506
---------- ----------
Total Assets $22,612,722 $22,145,742
---------- ----------
LIABILITIES:
Dividends Payable (Note E) 236,331 236,331
Advisory and Service Fees Payable 14,973 5,843
------- -------
Total Liabilities 251,304 242,174
------- -------
NET ASSETS:
(Equivalent to $28.30 and $27.80 per share
based on 787,769 shares of common stock
outstanding in both periods) $22,361,418 $21,903,568
========== ==========
</TABLE>
495152.1
See Accompanying Notes
1
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Albany-Dougherty Cnty GA
Dtd 3/1/97 5.10% 1/1/07 $ 200,000 $ 204,952 $ 200,000 $ 199,234
Athens, GA W/S Rev
Dtd 5/1/81 10.0% 7/1/01 $ 140,000 $ 167,103 $ 140,000 $ 167,138
Bartow Co. GA S/D
Dtd 11/1/93 5.20% 5/1/07 $ 250,000 $ 257,665
Carroll Co. GA City Hosp Auth
Dtd 10/1/86 7.0% 7/1/99 $ 20,000 $ 20,348 $ 20,000 $ 20,448
Chatham Co. GA
Dtd 11/1/95 5.3% 8/1/09 $ 200,000 $ 206,392 $ 200,000 $ 199,840
Cherokee Co GA Sch Dist
Dtd 11/1/93 4.3% 2/1/99 $ 150,000 $ 150,746 $ 150,000 $ 149,688
Clark Co. GA Hosp Auth
Dtd 1/1/93 5.50% 1/1/00 $ 500,000 $ 514,970 $ 500,000 $ 511,025
Clayton Co., GA W/S Auth
Dtd 4/1/72 6.1% 5/1/01 $ 175,000 $ 181,939 $ 175,000 $ 181,216
Clayton Co., GA W/S Auth
Dtd 4/1/72 6.1% 5/1/00 $ 310,000 $ 322,292 $ 310,000 $ 321,234
Clayton Co., GA Hosp Auth
Dtd 8/1/91 6.8% 8/1/04 $ 505,000 $ 555,197 $ 505,000 $ 546,521
Cobb Co., GA Sch Dist
Dtd 12/1/89 6.7% 2/1/02 $ 200,000 $ 210,518 $ 200,000 $ 211,332
Cobb Co. GA W/S Rev
Dtd 3/1/93 4.6% 7/1/00 $ 200,000 $ 203,148 $ 200,000 $ 200,256
Cobb Ct. GA Sch. Dist
Dtd 7/1/95 5.0% 2/1/03 $ 300,000 $ 309,756 $ 300,000 $ 301,464
</TABLE>
495152.1
See Accompanying Notes
2
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Cobb Co. GA Kennestone Dev.
Dtd 7/1/92 5.5% 4/01/04 $ 500,000 $ 526,155 $ 500,000 $ 511,225
College Park, GA Bus, & Indl.
Dtd 9/1/85 8.8% 9/1/97 $ 200,000 $ 203,244
Columbia Co GA Sch Dist.
Dtd 1/1/94 4.5% 4/1/02 $ 385,000 $ 388,977 $ 385,000 $ 378,159
Columbus GA W/S Rev
Dtd 6/1/80 8.0% 5/1/00 $ 300,000 $ 327,756 $ 300,000 $327,690
Columbus, GA W/S
Dtd 6/1/88 7.0% 5/1/98 $ 100,000 $ 101,515 $ 100,000 $ 102,761
Columbus, GA W/S
Dtd 11/1/85 7.8% 5/1/97 $ 390,000 $ 390,043
Columbus, GA Hosp. Auth
Dtd 6/1/93 5.20% 6/1/04 $ 320,000 $ 330,419 $ 320,000 $ 319,984
Columbus, GA W/S
Dtd 5/1/92 6.30% 5/1/07 $ 505,000 $ 552,904 $ 505,000 $ 539,906
Coweta Co GA Bd of Ed
Dtd 9/1/92 5.25% 8/1/99 $ 200,000 $ 204,374 $ 200,000 $ 203,122
Coweta Co. GA Sch Dist
Dtd 1/1/93 5.10% 2/1/00 $ 300,000 $ 306,885 $ 300,000 $ 303,969
DeKalb Cty GA
Dtd 11/1/95 5.0% 11/1/06 $ 755,000 $ 780,428 $ 755,000 $ 751,051
DeKalb Co. GA
Dtd 6/1/90 7.15% 1/1/07 $ 310,000 $ 335,405 $310,000 $ 335,191
DeKalb Co. GA Sch Dist
Dtd 2/1/93 4.5% 7/1/99 $ 400,000 $ 403,816 $ 400,000 $400,796
</TABLE>
495152.1
See Accompanying Notes
3
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
DeKalb Co GA Sch Dist
Dtd 2/1/93 5.6% 7/01/09 $ 300,000 $ 315,771 $ 300,000 $ 306,159
DeKalb Co. GA G.O.
Dtd 6/1/93 5.3% 1/1/01 $ 395,000 $ 408,920 $ 395,000 $ 403,678
DeKalb Co. GA G.O.
Dtd 11/1/91 5.8% 1/1/02 $ 150,000 $ 159,077 $ 150,000 $ 156,260
Douglas Co., GA Sch Dist
Dtd 5/1/95 5.25% 1/1/05 $ 195,000 $ 203,984 $ 195,000 $ 197,564
Fayette Cnty GA W/S
Dtd 1/1/97 5% 10/1/08 $ 255,000 $ 261,245 $ 255,000 $ 250,423
Floyd Cty GA Hosp Auth
Dtd 12/1/93 5.1% 7/01/06 $ 475,000 $ 488,314 $ 475,000 $ 470,511
Forsyth Co. GA Sch Dist
Dtd 11/1/95 5.25% 7/1/09 $ 200,000 $ 206,882 $ 200,000 $ 199,628
Fulton Co. GA Bldg Auth Rev
Dtd 10/1/91 5.6% 1/1/99 $ 200,000 $ 203,946 $ 200,000 $ 203,902
Fulton Co. GA Hosp Auth
Northside Hosp
Dtd 1/1/84 10.0% 6/1/99 $ 15,000 $ 15,519 $ 30,000 $ 31,461
Fulton Co GA Hosp Auth
Dtd 1/1/94 4.60% 10/1/02 $ 250,000 $ 253,728 $ 250,000 $ 245,573
Georgia St G.O.
Dtd 11/1/90 6.8% 11/1/04 $ 200,000 $ 218,520 $ 200,000 $ 216,954
Georgia St. G.O.
Dtd 7/1/93 4.40% 7/1/01 $ 270,000 $ 272,994 $ 270,000 $ 267,030
Griffin Spaulding Co. GA S/D
Dtd 12/1/96 5.05% 2/1/07 $ 250,000 $ 254,828 $ 250,000 $ 248,080
</TABLE>
495152.1
See Accompanying Notes
4
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Gwinnett Co GA Sch Dist
Dtd 4/1/92 5.75% 2/1/99 $ 320,000 $ 327,389 $ 320,000 $ 327,670
Gwinnett Co. GA Rec Auth
Dtd 12/1/92 5.10% 2/1/00 $ 200,000 $ 204,590 $ 200,000 $ 202,646
Gwinnett Co W/S
Dtd 6/1/93 5.05% 8/01/04 $ 225,000 $ 233,444 $ 225,000 $ 226,339
Hall Co. GA School Dist
Dtd 5/1/92 6.0% 12/1/03 $ 150,000 $ 162,848 $ 150,000 $ 158,237
Henry Co. GA Hosp Auth
Dtd 7/1/86 7.75% 7/1/02
Henry Co. GA Sch Dist
Dtd 5/1/94 5.5% 8/1/02 $ 750,000 $ 790,875 $ 750,000 $ 772,658
Houston Co. GA Hosp Auth
Dtd 4/1/88 7.2% 3/1/98 $ 200,000 $ 202,226 $ 200,000 $ 205,332
Houston Co. GA Sch Dist
Dtd 11/1/96 5.05% 3/1/08 $ 250,000 $ 253,953 $ 250,000 $ 245,485
LaGrange GA W/S
Dtd 10/1/86 6.15% 1/1/97
LaGrange GA W/S
Dtd 9/1/90 6.9% 1/1/01 $ 400,000 $ 430,116 $ 400,000 $429,288
Macon GA W/S Rev
Dtd 3/1/72 5.7% 6/1/97 $ 280,000 $ 280,459
Macon GA W/S Rev
Dtd 2/1/94 4.5% 10/1/02 $ 250,000 $ 252,628 $ 250,000 $ 244,700
Marietta GA G.O. Sch Bds
Dtd 1/1/81 9.3% 1/1/01 $ 300,000 $ 344,808 $ 300,000 $ 344,751
Marietta GA G.O.
Dtd 3/1/93 5.0% 1/1/00 $ 275,000 $ 280,352 $ 275,000 $ 277,648
</TABLE>
495152.1
See Accompanying Notes
5
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Marietta GA G.O.
3/1/93 5.0% 1/1/01 $ 235,000 $ 240,927 $ 235,000 $ 237,096
Metro Atl Rapid Trans Auth
Dtd 1/1/89 7.2% 7/01/03 $ 250,000 $ 260,300 $ 250,000 $ 263,125
Metro Atl Rapid Trans Auth
Dtd 1/1/89 7.3% 7/1/05 $ 640,000 $ 666,304 $ 640,000 $ 673,485
Metro Atl Rapid Trans Auth
Dtd 5/1/92 5.6% 7/1/00 $ 180,000 $ 187,020 $ 180,000 $ 185,058
Muscogee Co. GA Sch Dist
Dtd 8/1/93 4.25% 11/1/99 $ 300,000 $ 301,884 $ 300,000 $ 298,593
Newton Co. GA Sch Dist
Dtd 8/1/86 6.1% 2/1/01 $ 200,000 $ 202,012
Paulding Co. GA
Dtd 6/1/93 5.55% 8/1/09 $ 300,000 $ 309,225 $ 300,000 $ 301,644
Prvt Colleges/Univ GA-Emory
Dtd 1/1/92 5.75% 10/1/02 $ 200,000 $ 213,452 $ 200,000 $ 208,190
Richmond Co. GA
Dtd 12/1/96 4.90% 10/1/08 $ 250,000 $ 252,645 $ 250,000 $ 241,048
Richmond Co. GA Sch Dist
Dtd 1/1/97 5.55% 11/1/10 $ 320,000 $ 320,823 $ 320,000 $ 319,397
Rockdale Co GA Sch Dist GO
Dtd 6/1/93 4.75% 1/1/01 $ 225,000 $ 229,088 $ 225,000 $ 225,135
Rockdale Co GA Sch Dist
12/1/94 6.0% 1/1/04 $ 250,000 $ 270,540 $ 250,000 $ 263,575
Rockdale Co. GA W/S
Dtd 11/1/96 4.70% 7/1/06 $ 250,000 $ 252,683 $ 250,000 $ 240,780
</TABLE>
495152.1
See Accompanying Notes
6
<PAGE>
Alterman Investment Fund, Inc.
Portfolio of Investments in Securities of Unaffiliated Issuers
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
10/31/97 10/31/97 4/30/97 4/30/97
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- --------------------------------- ------------------- ----------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Savannah GA W/S
Dtd 10/01/97 4.65% 12/1/08 $ 500,000 $ 496,475
Savannah GA DownTown Auth
Dtd 11/1/90 6.625% 8/1/03 $ 200,000 $ 207,994 $ 200,000 $ 209,412
Savannah GA DownTown Auth
Dtd 9/1/95 4.8% 8/1/06 $ 760,000 $ 771,742 $ 760,000 $ 737,078
Savannah GA Economic Dev.
Auth
Dtd 8/1/95 5.2% 9/01/04 $ 500,000 $ 518,870 $ 500,000 $ 502,690
Savannah GA Economic Dev.
Auth
Dtd 5/1/95 5.85% 1/01/09
Call 1/1/04 @ 102.06 $ 515,000 $ 550,494 $ 515,000 $ 531,696
S. Fulton Muni. Reg. Jail Auth
Dtd 5/1/07 5.55% 12/1/10 $ 225,000 $ 237,870
Tift Co. GA Dev. Auth
Dtd 2/1/94 5.25% 2/1/08
Call 2/1/04 @ 102 $ 300,000 $ 308,673 $ 300,000 $ 297,786
Troup Co. GA Sch Dist
Dtd 6/1/94 5.125% 7/1/03 $ 500,000 $ 520,010 $ 500,000 $ 504,835
Federated GA. Muni
Cash Trust $ 328,413 $ 328,413 $ 160,261 $ 160,261
Warner Robbins GA W/S
Dtd 3/1/92 5.6% 7/1/99 $ 440,000 $ 451,700 $ 440,000 $ 450,234
----------- ----------- ----------- -----------
TOTAL (NOTE F) $21,368,413 $22,207,749 $21,310,261 $21,742,103
</TABLE>
495152.1
See Accompanying Notes
7
<PAGE>
Alterman Investment Fund, Inc.
Statement of Stockholders Equity
(Net Assets)
October 31, 1997 and April 30, 1997
<TABLE>
<CAPTION>
October 31, 1997 April 30, 1997
---------------------- -------------------
<S> <C> <C>
Common Stock $2.50 Par Value;
authorized 800,000 shares;
issued and outstanding 787,769 shares $ 1,969,423 $ 1,969,423
Additional Paid-In Capital 389,555 389,555
Net Assets Transferred at 1980 Reorganization 17,957,417 17,957,417
Undistributed net investment income
(net of cumulative dividends paid since 1980 reorganization
of $24,637,868 and $23,928,876 at October 31, 1997 and
April 30, 1997, respectively) 714,372 688,313
Realized gain on investments (net of cumulative capital gain
distributions paid since 1980 reorganization of $688,440 at
October 31, 1997 and April 30, 1997, respectively.) 678,922 647,540
Unrealized appreciation of investments 651,729 251,320
---------- ----------
NET ASSETS $22,361,418 $21,903,568
========== ==========
</TABLE>
495152.1
See Accompanying Notes
8
<PAGE>
Alterman Investment Fund, Inc.
Statement of Operations
Six Months Ended Oct. 31, 1997 Year Ended April 30, 1997
<TABLE>
<CAPTION>
October 31, 1997 April 30, 1997
-------------------- ----------------
<S> <C> <C>
INVESTMENT INCOME-INTEREST $ 574,654 $ 1,173,989
EXPENSES:
Legal, Accounting, Auditing fees (Note D) 20,493 40,203
Investment Advisory Fees (Note C) 12,450 24,520
Custodian Fees (Note C) 3,780 6,343
Transfer Agent Fees 3,499 6,973
Directors' Fees (Note D) 6,400 12,400
Taxes and Licenses 4,371 9,186
Office Rent and Expenses 15,693 23,722
Other 924 18,096
--------- ----------
Total Expenses 75,934 141,443
--------- ----------
NET INVESTMENT INCOME 498,720 1,032,546
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized Gain or Loss from Security Transactions:
Proceeds from Sale/Maturity of Securities 1,087,000 3,229,483
Cost of Securities Sold and Matured 1,055,618 3,188,235
--------- ---------
Net Realized Gain 31,382 41,248
--------- ---------
Unrealized Appreciation or (Depreciation) of Investments:
Beginning of Period 251,320 503,279
End of Period 651,729 251,320
--------- ---------
Net Unrealized Appreciation or (Depreciation) 400,409 (251,959)
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS 431,791 (210,711)
--------- ---------
NET INCOME-NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 930,511 $ 821,835
========= =========
NET INCOME PER SHARE $ 1.18 $ 1.04
(Based on 787,769 Shares Outstanding during both periods)
</TABLE>
495152.1
See Accompanying Notes
9
<PAGE>
Alterman Investment Fund, Inc.
Statements of Changes in Net Assets
Six Months Ended
October 31, 1997 and Year Ended April 30, 1997
<TABLE>
<CAPTION>
October 31, 1997 April 30, 1997
---------------------- -------------------
<S> <C> <C>
INCREASE OR (DECREASE) IN NET ASSETS
From Operations:
Net Investment Income $ 498,720 $ 1,032,546
Net Realized Gain on Investments 31,382 41,248
Change in Unrealized appreciation of Investments 400,409 (251,959)
---------- -----------
Net Increase in Net Assets Resulting from Operations 930,511 821,835
Distributions to Stockholders from:
Net Investment Income ($.60) and ($1.35) per share for six
months ended 10/31/97 and year ended 4/30/97 472,661 (1,063,488)
---------- ----------
Total Increase or (Decrease) in Net Assets 457,850 (241,653)
NET ASSETS - BEGINNING OF YEAR 21,903,568 22,145,221
---------- ----------
NET ASSETS - END OF PERIOD $ 22,361,418 $ 21,903,568
---------- ----------
</TABLE>
495152.1
See Accompanying Notes
10
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 1997 AND
YEAR ENDED APRIL 30, 1997
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Alterman Investment Fund, Inc. (the Company) is registered under the Investment
Company Act of 1940, as amended, as a closed-end regulated investment company.
The following is a summary of significant accounting policies consistently
followed by the Company in preparation of its financial statements.
Income Taxes
It is the Company's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies, including the
distribution of at least 90% of its net investment income, if any, to its
stockholders. The Company also distributes all of its taxable net capital gains,
if any, to its stockholders. Therefore, no federal income or excise tax
provisions have been made.
Securities and Security Transactions
Investment securities are valued at the mean between the last reported bid and
asked prices. As is common in the industry, security transactions are accounted
for as of the trade date. Cost of securities sold is determined by the
identified (specific asset) method. Interest income is recorded when earned.
Use of 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 at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
NOTE B - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (including maturities but excluding
transactions in the short-term tax-free trust and money market fund) aggregated
$976,759 and $1,087,000 respectively, for the six months ended October 31, 1997
and $3,542,805 and $3,229,483, respectively, for the year ended April 30, 1997.
NOTE C - INVESTMENT ADVISORY AND CUSTODIAL FEES
Under an Investment Advisor's Agreement with SunTrust Bank, the Company receives
investment advice for the investment of its funds in tax-exempt securities. For
this service, the bank is paid an annual fee equal to .1125% of the market value
of the Company's portfolio securities, payable quarterly. Such fees totaled
$12,450 for the six months ended October 31, 1997 and $24,520 for the year ended
April 30, 1997, respectively.
Under a Custodian Agreement with Wachovia Bank of Georgia (Wachovia), Wachovia
administers the cash and investment securities of the Company. For this service,
Wachovia is paid an annual fee pursuant to the terms of its Custodian-Depository
Agreement with the Company. Such fees totaled $3,780 for the six months ended
October 31, 1997 and $6,343 for the year ended April 30, 1997, respectively.
495152.1
See Accompanying Notes
11
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED OCTOBER 31, 1997
AND YEAR ENDED APRIL 30, 1997
NOTE D - OFFICER COMPENSATION AND DIRECTORS FEES
Only one officer of the Company receives compensation. His compensation,
primarily for accounting services, was $8,928 for the six months ended October
31, 1997 and $17,472 for the year ended April 30, 1997, respectively. The two
outside directors, who are not officers of the Company received compensation as
outside directors totaling $6,400 for the six months ended October 31, 1997 and
$12,400 for the year ended April 30, 1997, respectively. They are the only
directors receiving remuneration from the company.
NOTE E - DIVIDENDS
Because the Company is a regulated investment company, the Internal Revenue Code
allows it to pass through to its stockholders the tax-free character of its
state and municipal interest income if it distributes at least 90% of its net
tax-exempt interest income annually. On February 25, 1997, the Board of
Directors declared a regular quarterly dividend of $.30 per share aggregating
$236,331, payable May 1, 1997 to stockholders of record on April 15, 1997, in
order to meet the 90% pay out requirement for fiscal year ended April 30, 1997.
On August 5, 1997, the Board of Directors declared a regular quarterly dividend
of $0.30 per share, aggregating $236,331, payable on November 3, 1997, to
stockholders of record on October 15, 1997.
NOTE F - FEDERAL INCOME TAX COST, APPRECIATION AND DEPRECIATION OF INVESTMENT
SECURITIES
At October 31, 1997, the aggregate cost of investment securities for federal
income tax purposes was $21,699,985. At that date net unrealized appreciation
for federal income tax purposes was $507,762 of which $574,349 related to
appreciated investments securities and $66,587 related to depreciated investment
securities.
At April 30, 1997, the aggregate cost of investment securities for federal
income tax purposes was $21,658,308. At that date, net unrealized appreciation
for federal income tax purposes was $83,795, of which $337,879 related to
appreciated investment securities and $254,084 related to depreciated investment
securities.
NOTE G - FEDERAL INCOME TAX MATTERS
For federal income tax purposes, the Company realized net capital losses of
$35,751 during the year ended April 30, 1997. This amount includes $11,679 of
net capital losses incurred between November 1, 1995 and April 30, 1996 and
deferred to the fiscal year ended April 30, 1997.
495152.1
See Accompanying Notes
12
<PAGE>
Alterman Investment Fund, Inc.
Selected Per Share Data and Ratios for Six Months Ended
Oct. 31, 1997 and
Years Ended April 30, 1997, 1996, 1995, 1994
Selected Data for Each Share of Capital Stock Outstanding Throughout the Years:
<TABLE>
<CAPTION>
Six Months Year Year Year Year
1998 1997 1996 1995 1994
---------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Investment Income $ 0.73 $ 1.49 $ 1.59 $ 1.68 $ 1.77
Less Expenses 0.10 0.18 0.18 0.17 0.18
---- ---- ---- ---- ----
Net Investment Income 0.63 1.31 1.41 1.51 1.59
Dividend to Stockholders from Net Investment
Income (0.60) (1.35) (1.50) (1.60) (1.95)
Capital Gain Distribution - - - (0.11)
Net Realized and Unrealized Gain (Loss) 0.55 (0.27) 0.06 (0.27) (0.85)
------ ------ ------ ------ ------
Net Increase (Decrease) in Net Asset Value 0.58 (0.31) (0.03) (0.47) (1.21)
Net Asset Value:
Beginning of Period 27.80 28.11 28.14 28.61 29.82
------ ----- ----- ----- -----
End of Period $ 28.38 $ 27.80 $ 28.11 $ 28.14 $ 28.61
----- ------ ----- ----- -----
Other Selected Data:
Ratio of Expenses to Average
Net Assets 0.34% 0.64% 0.64% 0.62% 0.60%
Ratio of Net Investment Income
to Average Net Assets 2.24% 4.69% 5.02% 5.39% 5.43%
Portfolio Turnover 4% 15% 25% 8% 17%
787,769 Shares were outstanding throughout each of the above years.
</TABLE>
495152.1
See Accompanying Notes
13
