ALTERMAN INVESTMENT FUND, INC.
FINANCIAL STATEMENTS
YEARS ENDED APRIL 30, 1998 AND 1997
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
YEARS ENDED APRIL 30, 1998 AND 1997
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT...................................................1
FINANCIAL STATEMENTS:
Statements of Assets and Liabilities.......................................2
Portfolio of Investments in Securities of Unaffiliated Issuers...........3-9
Statements of Stockholders' Equity (Net Assets)...........................10
Statements of Operations..................................................11
Statements of Changes in Net Assets.......................................12
Notes to Financial Statements..........................................13-15
Selected Per Share Data and Ratios........................................16
566938.1
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Stockholders and Board of Directors
ALTERMAN INVESTMENT FUND, INC.
Atlanta, Georgia
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments in securities of unaffiliated issuers, and the
statements of stockholders' equity (net assets) of ALTERMAN INVESTMENT FUND,
INC. as of April 30, 1998 and 1997, and the related statements of operations and
changes in net assets for the years then ended, and the selected per share data
and ratios for each of the years in the five-year period ended April 30, 1998.
These financial statements and per share data and ratios are the responsibility
of the Company's management. Our responsibility is to express an opinion on
these financial statements and per share data and ratios 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 per share data
and ratios 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 April
30, 1998 and 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 selected per share data and ratios
referred to above present fairly, in all material respects, the financial
position of ALTERMAN INVESTMENT FUND, INC. as of April 30, 1998 and 1997, the
results of its operations and the changes in its net assets for the years then
ended, and the selected per share data and ratios for each of the years in the
five-year period ended April 30, 1998, in conformity with generally accepted
accounting principles.
Birnbrey, Minsk & Minsk LLC
Atlanta, Georgia
June 9, 1998
566938.1
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1998 AND 1997
1998 1997
----------- -----------
ASSETS:
Investment Securities at Market Value
(Cost $21,549,239 and $21,490,783) $22,094,689 $21,742,103
Interest Receivable 368,853 381,539
Cash 16,344 16,594
Prepaid Expenses 0 5,506
----------- -----------
Total Assets 22,479,886 22,145,742
----------- -----------
LIABILITIES:
Dividends Payable (Note E) 315,108 236,331
Advisory and Service Fees Payable 12,532 5,843
----------- -----------
Total Liabilities 327,640 242,174
----------- -----------
NET ASSETS (Equivalent to $28.12 and $27.80 Per
Share, Based on 787,769 Shares of Common Stock
Outstanding in Both Periods) $22,152,246 $ 21,903,568
========== ==========
SEE ACCOMPANYING NOTES
566938.1
<PAGE>
ALTERMAN INVESTMENT FUNDS, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS
APRIL 30, 1998 AND 1997
1998 1997
-------------------------- -------------------------
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- ------------------------ ------------- ---------- -------------- ---------
Albany-Dougherty Co.,
GA Inner City Auth.
Dtd. 3/1/97 5.10% 1/1/07 $ 200,000 $ 204,184 $ 200,000 $ 199,234
Athens, GA W/S Rev.
Dtd. 5/1/81 10.0% 7/1/01 140,000 147,001 140,000 167,138
Bartow Co., GA Sch. Dist.
Dtd. 11/1/93 5.20% 5/1/07 250,000 256,635 0 0
Carroll Co., GA City Hosp.
Auth. Dtd. 10/1/86 7.0%
7/1/99 20,000 20,346 20,000 20,448
Chatham Co., GA Sch. Dist.
Dtd. 11/1/95 5.3% 8/1/09 200,000 206,916 200,000 199,840
Cherokee Co., GA Sch. Dist.
Dtd. 11/1/93 4.3% 2/1/99 150,000 150,581 150,000 149,688
Clarke Co., GA Hosp. Auth.
Dtd. 1/1/93 5.5% 1/1/00 500,000 511,635 500,000 511,025
Clayton Co., GA Hosp. Auth.
Dtd. 8/1/91 6.80% 8/1/04 505,000 549,758 505,000 546,521
Clayton Co., GA W/S Auth.
Dtd. 4/1/72 6.1% 5/1/01 175,000 181,902 175,000 181,216
Clayton Co., GA W/S Auth.
Dtd. 4/1/72 6.1% 5/1/00 310,000 320,137 310,000 321,234
Cobb Co., GA Hosp. Auth.
Dtd. 7/1/92 5.5% 4/1/04 500,000 524,910 500,000 511,225
Cobb Co., GA W/S Rev.
Dtd. 3/1/93 4.6% 7/1/00 200,000 202,210 200,000 200,256
Cobb Co., GA Sch. Dist.
Dtd. 7/1/95 5.0% 2/1/03 300,000 309,051 300,000 301,464
Cobb Co., GA Sch. Dist.
12/1/89 6.7% 2/1/02 200,000 208,146 200,000 211,332
College Park, GA Bus. & Ind.
Dtd. 9/1/85 8.8% 9/1/1997 0 0 200,000 203,244
Columbia Co., GA Sch. Dist.
Dtd. 1/1/94 4.5% 4/1/02 385,000 387,599 385,000 378,159
(Continued)
<PAGE>
ALTERMAN INVESTMENT FUNDS, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS (CONTINUED)
APRIL 30, 1998 AND 1997
1998 1997
-------------------------- -------------------------
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- ------------------------ ------------- ---------- -------------- ---------
Columbus, GA W/S Rev.
Dtd. 6/1/80 8.0% 5/1/00 300,000 322,356 300,000 327,690
Columbus, GA W/S
Dtd. 6/1/88 7.0% 5/1/98 100,000 100,008 100,000 102,761
Columbus, GA W/S
Dtd. 11/1/85 7.8% 5/1/97 0 0 390,000 390,043
Columbus, GA W/S
Dtd. 5/1/92 6.3% 5/1/07 505,000 549,576 505,000 539,906
Columbus, GA Hosp. Auth.
Dtd. 6/1/93 5.2% 6/1/04 320,000 330,422 320,000 319,984
Coweta Co., GA Bd. of Ed.
Dtd. 9/1/92 5.25% 8/1/99 200,000 203,356 200,000 203,122
Coweta Co., GA Sch. Dist.
Dtd. 1/1/93 5.1% 2/1/00 300,000 305,526 300,000 303,969
DeKalb Co., GA
Dtd. 6/1/90 7.15% 1/1/07 310,000 331,347 310,000 335,191
DeKalb Co., GA
Dtd. 11/1/95 5.0% 11/1/06 755,000 779,273 755,000 751,051
DeKalb Co., GA Sch. Dist.
Dtd. 2/1/93 5.6% 7/1/09 300,000 316,437 300,000 306,159
DeKalb co., GA Sch. Dist.
Dtd. 2/1/93 4.5% 7/1/99 400,000 403,200 400,000 400,796
DeKalb Co., GA G.O.
Dtd. 6/1/93 5.3% 1/1/01 395,000 406,645 395,000 403,678
DeKalb Co., Ga G.O.
Dtd. 11/1/91 5.8% 1/1/02 150,000 157,907 150,000 156,260
Douglas Co., GA Sch. Dist.
Dtd. 5/1/95 5.25% 1/1/05 195,000 202,991 195,000 197,564
Fayette Co., GA Wtr. Rev.
Dtd. 1/1/97 5.0% 10/1/08 255,000 261,658 255,000 250,423
Federated Georgia Municipal
Cash Trust 545,769 545,769 0 0
Floyd Co., GA Hosp. Auth.
Dtd. 12/1/93 5.1% 7/1/06 475,000 486,419 475,000 470,511
(Continued)
<PAGE>
ALTERMAN INVESTMENT FUNDS, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS (CONTINUED)
APRIL 30, 1998 AND 1997
1998 1997
-------------------------- -------------------------
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- ------------------------ ------------- ---------- -------------- ---------
Forsyth Co., GA Sch. Dist.
Dtd. 11/1/95 5.25% 7/1/09 200,000 207,652 200,000 199,628
Fulton Co., GA Bldg. Auth.
Rev. Dtd. 10/1/91 5.6%
1/1/99 100,000 202,426 200,000 203,902
Fulton Co., GA Hosp. Auth.
Dtd. 1/1/84 10.0% 6/1/99 15,000 15,076 30,000 31,461
Fulton Co., GA Hosp. Auth.
Dtd. 1/1/94 4.6% 10/1/02 250,000 252,330 250,000 245,573
Georgia St. G.O.
Dtd. 11/1/90 6.8% 11/1/04 200,000 216,166 200,000 216,954
Georgia St. G.O.
Dtd. 7/1/93 4.4% 7/1/01 270,000 272,052 270,000 267,030
Griffin - Spalding Co., GA
Sch. Dist.
Dtd. 12/1/96 5.05 2/1/07 250,000 254,203 250,000 248,080
Gwinnett Co., GA Sch. Dist.
Dtd. 4/1/92 5.75% 2/1/99 320,000 324,730 320,000 326,670
Gwinnett Co., GA W/S Rev.
Dtd. 6/1/93 5.05% 8/1/04 225,000 233,278 225,000 226,339
Gwinnett Co., GA Rec. Auth.
Dtd. 12/1/92 5.1% 2/1/00 200,000 203,684 200,000 202,646
Hall Co. GA Sch. Dist.
Dtd 5/1/92 6.0% 12/1/03 150,000 161,612 150,000 158,237
Henry Co., GA Sch. Dist.
Dtd. 5/1/94 5.5% 8/1/02 750,000 783,938 750,000 772,658
Houston Co., GA Hosp. Auth.
Dtd. 4/1/88 7.2% 3/1/98 0 0 200,000 205,332
Houston Co., GA Sch. Dist.
Dtd. 11/1/96 5.05% 3/1/08 250,000 253,943 250,000 245,485
LaGrange, GA W/S
Dtd. 9/1/90 6.9% 1/1/01 400,000 425,596 400,000 429,288
Macon, GA W/S Rev.
Dtd. 3/1/72 5.7% 6/1/97 0 0 280,000 280,459
(Continued)
<PAGE>
ALTERMAN INVESTMENT FUNDS, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS (CONTINUED)
APRIL 30, 1998 AND 1997
1998 1997
-------------------------- -------------------------
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- ------------------------ ------------- ---------- -------------- ---------
Macon, GA W/S Rev.
Dtd. 2/1/94 4.5% 10/1/02 250,000 251,333 250,000 244,700
Marietta, GA G.O. Sch. Bds.
Dtd. 1/1/81 9.3% 1/1/01 300,000 337,368 300,000 344,751
Marietta, GA G.O.
Dtd. 3/1/93 5.0% 1/1/00 275,000 279,158 275,000 277,648
Marietta, GA G.O.
Dtd. 3/1/93 5.0% 1/1/01 235,000 239,446 235,000 237,096
Metro. Atlanta Rapid Trans.
Auth., GA Dtd. 1/1/89
7.2% 7/1/03 250,000 256,293 250,000 263,125
Metro. Atlanta Rapid Trans.
Auth., GA Dtd. 1/1/89 7.3%
7/1/05 640,000 656,205 640,000 673,485
Metro. Atlanta Rapid Trans.
Auth., GA Dtd. 5/1/92 5.6%
7/1/00 180,000 185,764 180,000 185,058
Muscogee Co., GA Sch. Dist.
Dtd. 8/1/93 4.25% 11/1/99 300,000 301,719 300,000 298,593
Newton Co., GA Sch. Dist.
Dtd. 8/1/86 6.1% 2/1/01 0 0 200,000 202,012
Paulding Co., GA
Dtd. 6/1/93 5.55% 8/1/09 300,000 310,402 300,000 301,644
Private Colleges & Univ.
(Emory), GA Dtd. 1/1/92
5.75% 10/1/02 200,000 211,634 200,000 208,190
Richmond Co., GA Sch. Dist.
Dtd. 1/1/97 5.55% 11/1/10 320,000 320,963 320,000 319,397
Richmond Co., GA W/S
Dtd. 12/1/96 4.9% 10/1/08 250,000 253,905 250,000 241,048
Rockdale Co., GA Sch. Dist.
Dtd. 6/1/93 4.75% 1/1/01 225,000 227,912 225,000 225,135
Rockdale Co., GA Sch. Dist.
Dtd. 12/1/94 6.0% 1/1/04 250,000 268,953 250,000 263,575
(Continued)
<PAGE>
ALTERMAN INVESTMENT FUNDS, INC.
PORTFOLIO OF INVESTMENTS IN SECURITIES
OF UNAFFILIATED ISSUERS (CONTINUED)
APRIL 30, 1998 AND 1997
1998 1997
------------------------- ------------------------
SECURITY PRINCIPAL MARKET PRINCIPAL MARKET
- ------------------------ ------------- ----------- ----------- -----------
Rockdale Co., GA W/S Rev.
Dtd. 11/1/96 4.7% 7/1/06 250,000 252,010 250,000 240,780
Savannah, GA Dwn. Twn.
Auth. Dtd. 9/1/95 4.8%
8/1/06 760,000 769,234 760,000 737,078
Savannah, GA Dwn. Twn. Auth.
Dtd. 11/1/90 6.625% 8/1/03 200,000 205,210 200,000 209,412
Savannah, GA Econ. Dev. Auth.
Dtd. 8/1/95 5.2% 9/1/04 500,000 518,240 500,000 502,690
Savannah, GA Econ. Dev.
Auth. Dtd. 5/1/95 5.85%
1/1/09 515,000 547,275 515,000 531,696
Savannah, GA W/S
Dtd. 10/1/97 4.65% 12/1/08 500,000 497,500 0 0
So. Fulton, GA Jail Auth.
Dtd. 5/1/97 5.55% 12/1/10 225,000 239,112 0 0
Tift Co., GA Dev. Auth.
Dtd. 2/1/94 5.25% 2/1/08 300,000 308,631 300,000 297,786
Troup Co., GA Sch. Dist.
Dtd. 6/1/94 5.125% 7/1/03 500,000 517,035 500,000 504,835
Wachovia Tax-Free
Reserve Accounts 0 0 160,261 160,261
Warner Robins, GA W/S
Auth. Dtd. 3/1/92 5.6%
7/1/99 440,000 448,800 440,000 450,234
------------- ----------- ----------- -----------
TOTALS (NOTE F) $21,385,769 $22,094,689 $21,310,261 $21,742,103
============= =========== =========== ===========
SEE ACCOMPANYING NOTES
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (NET ASSETS)
YEARS ENDED APRIL 30, 1998 AND 1997
1998 1997
-------------- -------------
Common Stock - $2.50 Par Value;
800,000 Shares Authorized;
787,769 Shares Issued and Outstanding $ 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 $24,992,364 and
$23,928,876 at April 30, 1998 and 1997,
Respectively) 611,442 688,313
Realized Gain on Investments (Net of Cumulative
Capital Gain Distributions Paid Since 1980
Reorganization of $688,440 at April 30, 1998
and 1977) 678,959 647,540
Unrealized Appreciation of Investments 545,450 251,320
-------------- ------------
NET ASSETS $ 22,152,246 $ 21,903,568
============== ============
SEE ACCOMPANYING NOTES
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
STATEMENTS OF OPERATIONS
YEARS ENDED APRIL 30, 1998 AND 1997
1998 1997
----------- -----------
INVESTMENT INCOME - INTEREST $ 1,139,926 $ 1,173,989
----------- -----------
EXPENSES:
Legal, Accounting and Auditing Fees (Note D) 47,118 40,203
Investment Advisory Fees (Note C) 24,924 24,520
Custodial Fees (Note C) 7,538 6,343
Transfer Agent Fees 6,529 6,973
Directors' Fees (Note D) 10,850 12,400
Taxes and Licenses 8,755 9,186
Office Rent and Expenses 30,446 23,722
Other 17,149 18,096
------------ ------------
Total Expenses 153,309 141,443
------------ ------------
NET INVESTMENT INCOME 986,617 1,032,546
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized Gain from Security Transactions:
Proceeds from Sale and Maturity of Securities 1,287,270 3,229,483
Cost of Securities Sold and Matured 1,255,861 3,188,235
----------- -----------
Net Realized Gain 31,419 41,248
----------- -----------
Unrealized Appreciation (Depreciation) of Investments:
Beginning of Period 251,320 503,279
End of Period 545,450 251,320
----------- -----------
Net Unrealized Appreciation (Depreciation) 294,130 (251,959)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS 325,549 (210,711)
----------- -----------
NET INCOME - NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,312,166 $ 821,835
=========== ===========
NET INCOME PER SHARE (Based on 787,769
Shares Outstanding During Both Periods) $ 1.67 $ 1.04
============ ===========
SEE ACCOMPANYING NOTES
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 1998 AND 1997
1998 1997
------------ ------------
DECREASE IN NET ASSETS:
From Operations:
Net Investment Income $ 986,617 $ 1,032,546
Net Realized Gain on Invesments 31,419 41,248
Change in Unrealized Appreciation
of Investments 294,130 (251,959)
------------ ------------
Net Increase in Net Assets Resulting from
Operations 1,312,166 821,835
Distributions to Stockholders from:
Net Investment Income ($1.35 per share
in 1998 and 1997) (1,063,488) (1,063,488)
------------- ------------
Total Increase (Decrease) in Net Asset 248,678 (241,653)
NET ASSETS - BEGINNING OF YEAR $21,903,568 22,145,221
------------- -----------
NET ASSETS - END OF YEAR $22,152,246 $ 21,903,568
============= =============
SEE ACCOMPANYING NOTES
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 AND 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 the 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 money market funds) aggregated
$976,759 and $1,287,270, respectively, for the year ended April 30, 1998
and $3,542,805 and $3,229,483, respectively, for the year ended April 30,
1997.
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 AND 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 $24,924 and $24,520 for the years ended April
30, 1998 and 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
$7,538 and $6,343 for the years ended April 30, 1998 and 1997,
respectively.
NOTE D - OFFICER COMPENSATION AND DIRECTORS' FEES
Only one officer of the Company receives compensation. His compensation,
primarily for accounting services, was $17,944 and $17,472 for the years
ended April 30, 1998 and 1997, respectively. The two outside directors,
who are not officers of the Company, received compensation as outside
directors totaling $10,850 and $12,400 for the years ended April 30, 1998
and 1997, respectively. They are the only directors receiving remuneration
from the Company. During the year ended April 30, 1998, an outside
director died, creating a temporary vacancy until that position was filled
by a new outside director.
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 March 18,
1998, the Board of Directors declared a regular quarterly dividend of $.40
per share, aggregating $315,108, payable May 1, 1998 to stockholders of
record on April 15, 1998, in order to meet the 90% pay-out requirement for
the fiscal year ended April 30, 1998. Of this amount, $.073876 per share,
aggregating $58,197, is taxed as ordinary income to the stockholders. 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 the fiscal year ended April 30, 1997.
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 AND 1997
NOTE E - DIVIDENDS (CONTINUED)
On May 1, 1998, the Board of Directors declared a regular quarterly
dividend of $.35 per share, aggregating $275,719, payable on August 3,
1998, to stockholders of record on July 15, 1998. No liability is recorded
at April 30, 1998 since this dividend was declared subsequent to year-end.
NOTE F- FEDERAL INCOME TAX COST, APPRECIATION AND DEPRECIATION
OF INVESTMENT SECURITIES
At April 30, 1998 and 1997, the aggregate cost of investment securities
for federal income tax purposes was $21,659,918 and $21,658,308,
respectively. At those dates, net unrealized appreciation for federal
income tax purposes was $434,771 and $83,795, respectively, of which
$482,795 and $337,879, respectively, related to appreciated investment
securities and $48,024 and $254,084, respectively, related to depreciated
investment securities.
NOTE G - FEDERAL INCOME TAX MATTERS
For federal income tax purposes, the Company realized net capital losses
of $15,567 during the year ended April 30, 1998. This amount excludes
$9,858 of net capital losses incurred between November 1, 1997 and April
30, 1998 and deferred to the fiscal year ended April 30, 1999.
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.
<PAGE>
ALTERMAN INVESTMENT FUND, INC.
SELECTED PER SHARE DATA AND RATIOS
YEARS ENDED APRIL 30, 1998, 1997, 1996,
1995 AND 1994
Selected Data for Each Share of Capital Stock Outstanding Throughout the Years:
1998 1997 1996 1995 1994
---- ---- ---- ---- ----
Investment Income 1.45 1.49 1.59 1.68 1.77
Expenses 0.19 0.18 0.18 0.17 0.18
---- ---- ---- ---- ----
Net Investment Income 1.26 1.31 1.41 1.51 1.59
Dividends to Stockholders from Net
Investment Income (1.35) (1.35) (1.50) (1.60) (1.95)
Capital Gain Distribution 0.00 0.00 0.00 (0.11) 0.00
Net Realized and Unrealized
Gain (Loss) 0.41 (0.27) 0.06 (0.27) (0.85)
------ ------ ----- ------ ------
Net Increase (Decrease) in Net
Asset Value 0.32 (0.31) (0.03) (0.47) (1.21)
Net Asset Value:
Beginning of Period 27.80 28.11 28.11 28.61 29.82
----- ------ ----- ----- -----
End of Period $28.12 $27.80 $28.11 $28.14 $28.61
===== ===== ===== ===== =====
Other Selected Data:
Ratio of Expenses to Average
Net Assets 0.69% 0.64% 0.64% 0.62% 0.60%
Ratio of Net Investment Income
to Average Net Assets 4.43% 4.69% 5.02% 5.39% 5.43%
Portfolio Turnover 4% 15% 25% 8% 17%
787,769 shares were oustanding thorughout each of the above years.
SEE INDEPENDENT AUDITOR'S REPORT
