THIS DOCUMENT IS A COPY OF THE ANNUAL REPORT TO SHAREHOLDERS FILED ON JUNE 8,
1995 PURSUANT TO A RULE 201 TEMPORARY HARDSHIP EXEMPTION.
VENTURE INCOME (+) PLUS, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
- ------------------------------------------------------------------------------
Dear Shareholder:
Your Fund had a very strong relative performance over the last year during
a very tough bond market. Its net asset value performance with dividends
reinvested of 4.69%<F1> over the twelve month period ending March 31, 1995
compared very favorably to the 1.55% average total return of the 99 funds
in Lipper Analytical Inc.'s High Current Yield Category as published in the
April 18, 1995 edition of The Wall Street Journal.
Your Fund's performance has resulted in the top risk-adjusted performance
ratings from independent mutual fund rating services. The Value Line
Mutual Fund Survey gave Venture Income Plus its highest Overall Rank of 1
(on a scale from 1 down to 5) based on its outstanding risk-adjusted total
return over the three years ended March 31, 1995. Importantly, Value Line
gives Venture Income Plus its lowest risk rating over the same three year
period of all of the 62 funds in its high yield bond category. Value Line's
overall risk rating for Venture Income Plus is a 2 (on a scale from 1, least
risk, down to 5). No high yield funds have a 1 risk rating.<F2> Morningstar,
Inc. also gives Venture Income Plus its highest rating of ***** (five
stars) for the three year period ended March 31, 1995, based on its
outstanding relative risk-adjusted total return. Morningstar gives
Venture Income Plus two stars for its longer term, overall (historical
profile) rating.<F3>
Venture Income Plus' fine performance over the last year resulted from
several factors. The primary factor that helped was the overall defensive
stance that was taken in late 1993 with regard to rising interest rates.
This positioning turned out to be very appropriate for the market
environment. Calendar 1994 saw the worst general bond market (quickest
rise in interest rates and quickest drop in bond prices) since 1927. In
addition, the high yield bond market experienced over twenty "blow ups,"
situations where disappointing financial results or other news resulted in
the price of bonds of a particular issue dropping by more than thirty
points. Fortunately, our attention to upside potential and, especially, to
downside protection kept our Company out of all but a few of such issues.
In addition, we had some very good positive performance from some of our
non-market sensitive positions and from several of our "busted"
(convertible bonds trading based on bond characteristics alone because
their conversion features have no value) convertible bond positions.
We continue to position your Company by giving up some upside potential
to pick up increased downside protection. Because we think that interest
rates will continue to be volatile and that higher interest rates could push
the economy into a recession, we believe our cautious positioning is still
appropriate. We are accomplishing this by owning discount bonds (bonds
with smaller coupons that trade at much lower than average dollar
prices), highly rated, private label mortgage-backed securities, higher
rated taxable municipal bonds, and cushion bonds (bonds with larger than
average coupons). Holding these types of positions that have fewer
natural buyers has allowed us to keep a fairly high yield even with our
average rating of BB+. To further limit volatility, we continue to own few
positions backed by companies with cyclical profiles. Also, we continue
to hold over 120 positions. This high level of diversification has also
contributed to the low risk/volatility rankings that your Fund has
achieved.
We think the high yield/high risk bond market is an excellent
diversification vehicle because it offers equity-size returns in a separate
investment category. High yield bonds also make a good alternative to
other fixed income markets because their short average lives and high
coupons combine to give them less interest rate risk than most types of
bonds. We believe high yield bonds still offer value even though they have
generally outperformed both bonds and equities over the last four years
(three very positive years and one tough year). Most other markets have
finally gone through major shakeouts including the bond market in general,
the emerging markets, derivatives, and the utility market. The high yield
bond market went through its own shakeout in 1988, 1989 and 1990.
Right now, the equity market is still at or near record high levels. We
think that those seeking equity-size returns should consider the high yield
bond market as a diversification vehicle.
<PAGE>
VENTURE INCOME (+) PLUS, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
- ------------------------------------------------------------------------------
In summary, your Fund has performed well on a relative basis over the
current fiscal year. We continue to believe that the high yield bond
category offers value, especially relative to equities. However, because
we think that the recent rise in interest rates could push the economy into
recession, we will continue to keep your portfolio postured
conservatively. We believe this defensive stance should result in
continued strong relative performance over the next year.
Sincerely,
Martin H. Proyect B. Clark Stamper
Chairman and President Vice President and Portfolio Manager
April 28, 1995
[FN]
<F1>
Average annual rates of return for Venture Income (+) Plus, Inc. A shares,
including the maximum front end sales charge of 4.75%, for the one, five,
and ten years ending 3-31-95 are (0.35)%, 8.92%, and 6.39%, respectively.
<F2>
The Value Line Mutual Fund Survey uses two indicators: a Risk Rank to
show the total level of risk a fund has and an Overall Rank measuring
various performance criteria taking risk into account. The Ranks are
based on each fund's past performance; hence, they are descriptive, rather
than predictive. Funds are ranked from 1 to 5, with 1 being the highest
Overall Rank (the best risk-adjusted performance) and, also, the best Risk
Rank (the least risky). For both rankings, the top 10% of the funds are
ranked 1, the next 20% are ranked 2, the next 40% are ranked 3, the next
20% are ranked 4, and the lowest 10% are ranked 5. Overall Ranks are
calculated separately for three broad categories: equity and partial-equity
funds, taxable-income funds (including high yield bond funds), and
municipal bond funds. Overall Ranks are not designed to be compared
across these categories. Overall Ranks are calculated on the basis of
three critical factors: three-year performance with risk taken into
account, and five-year and one-year persistence of relative growth in fund
returns. Ranks are subject to change whenever they are calculated for
new periods. For the period ending 3-31-95, 570 taxable fixed funds were
included in determining the Overall Ranks for this category. One thousand
sixty four taxable and tax-free fixed income funds were included in
determining the Risk Rankings for this category.
<F3>
The Morningstar proprietary ratings reflect historical risk-adjusted
performance as of 3-31-95. The ratings are subject to change every
month. Past performance is no guarantee of future results. Morningstar
ratings are calculated from the fund's three-, five-, and ten-year average
annual returns in excess of 90-day Treasury bill returns with appropriate
fee adjustments, and a risk factor that reflects fund performance below
90-day T-bill returns. Venture Income (+) Plus A received 5, 3, and 1
stars for the three-, five-, and ten-year periods, respectively. The Fund
was rated against 2027, 1516, and 665 funds in a combined universe of
equity, fixed-income and hybrid funds for the respective periods. The
Fund's overall rating is two stars. Ten percent of the funds in an
investment category receive five stars, 22.5% receive four stars, 35%
receive three stars, 22.5% receive two stars, and the bottom 10% receive
one star. The ratings listed were earned by the shares listed above only.
Star ratings for the other classes may vary, and are available only for
classes with at least three years of performance history.
[/FN]
<PAGE>
VENTURE INCOME (+) PLUS, INC.
Management's Discussion of Fund Performance
- ------------------------------------------------------------------------------
An interview with B. Clark Stamper, Portfolio Manager of the Fund.
Q. Clark, what factors and strategies did you use to achieve the Fund's
excellent results over the last twelve months?
A. There were two principal factors that helped us achieve our strong
performance. First was the defensive positioning that I took with respect
to most of the positions in the Fund beginning in late 1993. I had been
following the utility index and noticed that it began to turn down in late
1993. Next, I noticed that the market for U.S. government bonds was also
beginning to turn down. Accordingly, I began positioning the Fund
defensively with respect to rising interest rates. Secondly, I began to
raise the Fund's credit quality because I was afraid that rising interest
rates could have pushed the economy into a recession. These moves also
made sense to me because credit quality spreads (the differential in
yields between lower quality bonds and higher quality bonds) were very
tight; thus, lower quality bonds were offering less value than they had in
the past. Both of these moves turned out to be very appropriate. 1994
saw the toughest bond market (rapidly rising interest rates and declining
bond prices) since 1927. Lower quality bonds also performed poorly. Any
negative surprises created supply which pushed prices downward. We
were able to avoid most of those problems because of our defensive
positioning.
Q. How is the Fund positioned currently and why?
A. After the bond market rebound from the early November 1994 low and
with several stock market indices at or near record high levels, both the
bond market and the stock market appear to be in positions similar to the
beginning of 1994. In addition, a two tier market has developed in the
high yield market. The larger issue-size, better known, larger company
issues are trading very rich (at low yields) while the lesser known,
smaller company-size, more speculative issues are trading rather cheap
(at higher yields). This disparity probably exists because portfolio
managers are putting a premium on liquidity. Also, they are probably "gun
shy" due to the many "blow ups" that occurred in 1994. I am having
difficulty finding a lot of value in the market. Because of these factors, I
have again positioned Venture Income Plus defensively. The average
rating of the rated securities is BB+. We hold few positions backed by
companies with cyclical profiles. I have most of the Fund invested in
positions that are backed by companies whose operations are more
resilient in a recessionary economy. I think this posture is appropriate
for the current environment.
Q. How would you describe your basic investment style?
A. I am a risk manager. My primary focus is on the tradeoffs between the
risks and rewards of different investments. The primary risks in the high
yield municipal category are: 1) credit risk, the risk that principal and
interest will not be paid on a timely basis due to deteriorating credit
quality, which would also cause the price of a security to drop, and 2)
interest rate risk, the risk that interest rates will rise, thus, causing the
value of a fixed coupon bond to drop. The reward is usually price
appreciation due to improving credit quality and/or falling interest rates,
in addition to a high current yield. Of course, there are other types of risk
and the tradeoff between them can result in different positive or negative
returns depending upon the subtleties of the specific credit and bond
characteristics.
Q. How do you make your investment decisions?
A. My primary tool is bottom up credit research. My major concern is that
the credit quality of our investments does not deteriorate and that we are
paid back principal and interest on schedule. Purchasing high yield bonds
is like making a loan. There are numerous variables that you look at to
make sure you are going to be paid back. The potential return on the
investment is then compared to the credit quality of the investment and
the risk of something going wrong. I also apply this upside/downside
analysis to interest rate risk and call risk as well. In addition, I use
top-down management techniques where I look at the characteristics of
the portfolio as a whole. I use these techniques to monitor the proportion
of our stake in positions of similar type or strategy, and to make sure we
are properly diversified.
<PAGE>
VENTURE INCOME (+) PLUS, INC.
Comparison of Venture Income (+) Plus, Inc. and Salomon Brothers
Long-Term High-Yield Index
- ------------------------------------------------------------------------------
Average Annual Total Return for the Periods ended March 31, 1995. (This
calculation includes an initial sales charge of 4 3/4% for Venture Income
Plus.)
One Year............ (0.35)%
Five Years.......... 8.92%
Ten Years........... 6.39%
$10,000 invested over ten years. Let's say you invested $10,000 in
Venture Income (+) Plus, Inc. on March 31, 1985. By March 31, 1995 the
value of your investment would have grown to $18,579 - an 85.79% increase
on your initial investment. For comparison, the Salomon Brothers Long-Term
High Yield Index would have grown to $31,231 - a 212.31% increase.
Salomon Brothers Long-Term High-Yield Index is an unmanaged index and
has no specific investment objective. The index used includes net interest
reinvested, but does not take into account any sales charge.
The performance data for Venture Income (+) Plus, Inc. contained in this
report represents past performance and assumes that all distributions
were reinvested, and should not be considered as an indication of future
performance from an investment in the Fund today. The investment return
and principal value will fluctuate so that shares may be worth more or
less than their original cost when redeemed.
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments
At March 31, 1995
- ------------------------------------------------------------------------------
<TABLE>
CORPORATE BONDS AND NOTES - (70.76%)
<CAPTION>
Value
Principal (Note 1)
- --------- --------
AUTOMOTIVE - (0.68%)
<S> <C> <C>
$ 395,000 Collins & Aikman Group, Inc., Sub. Deb., 11.375%,
05/01/97......................................... $ 395,987
-----------
AVIATION - (3.72%)
250,000 Hudson General Corp., Conv. Sub. Deb., 7.00%,
07/15/11......................................... 185,938
1,200,000 Simula, Inc., Sr. Sub. Notes, 12.00%, 03/19/96...... 1,203,000
250,000 UNC Inc., Sr. Notes, 9.125%, 07/15/03............... 215,000
586,000 WorldCorp Inc., Conv. Sub. Deb., 7.00%, 05/15/04.... 564,025
-----------
2,167,963
-----------
BUILDING AND BUILDING PRODUCTS - (1.45%)
100,000 Rotorex Corporation, Conv. Sub. Deb., 5.00%,
05/01/96......................................... 94,750
750,000 Waxman Industries, Inc., Sr. Secured Notes, 12.25%,
09/01/98......................................... 753,750
-----------
848,500
-----------
COMPUTER PRODUCTS AND SERVICES - (3.74%)
500,000 Anacomp, Inc., Sr. Sub. Notes, 15.00%, 11/01/00..... 482,500
600,000 Anacomp, International N.V., Euro Gtd. Conv. Sub.
Deb., 9.20%, 01/15/96............................ 576,000
550,000 Data Switch Corp., Conv. Sub. Deb., 8.25%, 06/01/02. 394,625
169,000 San Jacinto Holdings Inc., Sr. Sub. Notes, 6.00%,
12/31/00......................................... 139,256
81,716 San Jacinto Holdings Inc., Sub. Deb., 8.00%,
12/31/00<F3>..................................... 63,126
500,000 Triad Systems Corp., Sr. Notes, 12.25%, 08/01/99.... 525,000
-----------
2,180,507
-----------
CONSUMER PRODUCTS & MERCHANDISE - (6.08%)
500,000 Chattem Inc., Sr. Sub. Notes, Series B, 12.75%,
06/15/04......................................... 460,000
500,000 Darling International Inc., 1st Priority Sr. Sub.
Notes, 13.75%, 07/15/00.......................... 477,500
1,499,000 Interco, Incorporated, Secured Bonds, Series A,
10.00%, 06/01/01................................. 1,507,201
1,000,000 International Semi-Tech Microelectronics Inc., Sr.
Notes, Zero Cpn., 08/15/03<F3>................... 445,000
100,000 L.A. Gear, Inc., Conv. Sub. Deb., 7.75%, 11/30/02... 57,000
350,000 MacAndrews & Forbes Holdings, Inc., Sub. Deb.,
13.00%, 03/01/99................................. 348,250
255,000 PMI Acquisition Corp., Sr. Sub. Notes, 10.25%,
09/01/03......................................... 249,263
-----------
3,544,214
-----------
DEFENSE CONTRACTORS & PRODUCTS - (2.00%)
250,000 Alliant Techsystems Inc., Sr. Sub. Notes, 11.75%,
03/01/03......................................... 256,875
200,000 DBA Systems, Inc., Conv. Sub. Deb., 8.25%, 11/01/10. 170,000
750,000 Tracor, Inc., Sr. Sub. Notes, 10.875%, 08/15/01..... 738,750
-----------
1,165,625
-----------
ECOLOGICAL/ENVIRONMENTAL - (1.68%)
700,000 Clean Harbors, Inc., Sr. Sub. Notes, 13.25%,
05/15/97......................................... 654,500
333,000 International Technology Corp., Sr. Notes, 9.375%,
07/01/96......................................... 325,507
-----------
980,007
-----------
EDUCATION - (0.37%)
250,000 La Petite Holdings Corp., Sr. Secured Notes, 9.625%,
08/01/97......................................... 217,500
-----------
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments - Continued
At March 31, 1995
- ------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - Continued
Value
Principal (Note 1)
- --------- --------
ELECTRONICS - (0.88%)
$ 43,000 Andersen Group, Inc., Conv. Sub. Deb., 10.50%,
10/15/02........................................ $ 35,636
600,000 Comptronix Corp., Conv. Sub. Deb., 6.75%, 03/01/02. 345,000
300,000 Diceon Electronics Inc., Conv. Sub. Deb., 5.50%,
03/01/12........................................ 132,000
-----------
512,636
-----------
ENERGY - (7.74%)
1,000,000 Clark R & M Holdings Inc., Sr. Secured Notes,
Series A, Zero Cpn., 02/15/00<F3>............... 577,500
630,000 Empire Gas Corp., Sr. Secured Notes, 7.00%,
07/15/04........................................ 434,700
750,000 Giant Industries Inc., Gtd. Sr. Sub. Notes, 9.75%,
11/15/03........................................ 693,750
250,000 HS Resources Inc., Sr. Sub. Notes, 9.875%,
12/01/03........................................ 240,000
500,000 Midland Funding Corporation II, Sub. Secured Lease,
13.25%, 07/23/06................................ 507,525
100,000 Moran Energy Inc., Conv. Sub. Deb., 8.75%,
01/15/08........................................ 66,250
212,000 Moran Energy International N.V., Euro Conv. Sub.
Deb., 8.00%, 11/01/95........................... 206,700
500,000 Nuevo Energy Co., Sr. Sub. Notes, 12.50%, 06/15/02. 525,000
250,000 Petroleum Heat & Power Co., Inc., Sub. Notes,
10.125%, 04/01/03............................... 231,250
500,000 Trident NGL Holdings, Inc., Sub. Notes, 10.25%,
04/15/03........................................ 535,000
500<F6> WRT Energy Corp., Sr. Notes, 13.875%, 03/01/02
(Units of $1,000 par value)..................... 495,000
-----------
4,512,675
-----------
EQUIPMENT LEASING - (1.19%)
670,700 Technical Equipment Leasing Corp., Jr. Sub. Deb.
Series A, 18.375%, 04/01/96..................... 695,851
-----------
FINANCIAL SERVICES AND INSURANCE - (2.35%)
50,000 CII Financial, Inc., Conv. Sub. Deb., 7.50%,
09/15/01........................................ 37,000
790,000 CVD Financial Corp., Variable Rate Bds., 9.25%,
07/31/08........................................ 466,100
320,000 Employee Benefit Plans Inc., Conv. Sub. Deb.,
6.75%, 07/31/06................................. 230,400
500,000 PennCorp Financial Group, Inc., Sr. Sub. Notes,
9.25%, 12/15/03................................. 462,500
400,000 Scovill, Inc., Sub. Deb., 16.00%, 08/15/99......... 174,000
-----------
1,370,000
-----------
FOOD SERVICE AND DISTRIBUTION - (7.80%)
1,154,000 Farm Fresh Inc., Conv. Sub. Deb., 7.50%,03/01/10... 657,780
500,000 Fresh Del Monte Produce N.V., Series A, Sr. Notes,
10.00%, 05/01/03<F5>............................ 352,500
1,000,000 Great Atlantic & Pacific Tea Co., Inc. (Md.), Sr.
Notes, 7.70%, 01/15/04.......................... 882,346
690,000 Kroger Co., Lease Cert., 6.00%, 04/01/03........... 510,600
675,000 Kroger Co., Lease Cert., 12.95%, 02/01/09.......... 762,750
250,000 Pueblo Xtra International Inc., Sr. Notes, 9.50%,
08/01/03........................................ 221,250
500,000 Safeway Inc., Sr. Secured Deb., 9.30%, 02/01/07.... 535,000
1,000,000 Southland Corporation, Deb., 4.00%, 06/15/04....... 626,250
-----------
4,548,476
-----------
HEALTHCARE AND PHARMACEUTICAL - (7.09%)
360,000 Advanced Medical, Inc., Conv. Sub. Deb., 7.25%,
01/15/02........................................ 217,800
2,660,000 American Medical International, N.V., Euro Deb.,
Zero Cpn., 08/12/97<F3>......................... 2,151,275
280,000 Eckerd (Jack) Corp., Sub. Deb., 11.125%, 05/01/01.. 284,900
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments - Continued
At March 31, 1995
- ------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - Continued
Value
Principal (Note 1)
- --------- --------
HEALTHCARE AND PHARMACEUTICAL - Continued
$ 750,000 Glycomed Inc., Conv. Sub. Deb., 7.50%, 01/01/03.... $ 446,250
500,000 OrNda HealthCorp., Sr. Sub. Deb., 12.25%, 05/15/02. 547,500
500,000 Wright Medical Technology, Inc. Sr. Secured Notes,
Series B, 10.75%, 07/01/00...................... 490,000
-----------
4,137,725
-----------
HOTELS, LODGING & GAMING - (0.89%)
500,000 GB Property Funding Corp., 1st Mtg. Notes, 10.875%,
01/15/04........................................ 428,750
100,000 Station Casinos Inc., Sr. Sub. Notes, 9.625%,
06/01/03........................................ 88,500
-----------
517,250
-----------
LEISURE/ENTERTAINMENT - (2.30%)
750,000 SpectraVision, Inc., Sr. Disc. Notes, Zero Cpn.,
10/01/01<F3>.................................... 343,125
500,000 Underwater World Mall of America, Sr. Rev. Bds.,
13.75%, 03/01/02................................ 495,000
370,000 Wherehouse Entertainment, Inc., Conv. Sub. Deb.,
6.25%, 07/01/06................................. 191,938
625,000 Wherehouse Entertainment, Inc., Sr. Sub. Notes,
Series B, 13.00%, 08/01/02...................... 309,375
-----------
1,339,438
-----------
MANUFACTURING - (2.02%)
100,000 Atlantis Group Inc., Sr. Notes, 11.00%, 02/15/03... 99,500
500,000 Carlisle Plastics Inc., Sr. Notes, 10.25%,
06/15/97........................................ 497,500
500,000 Key Plastics, Inc., Sr. Notes, Series B, 14.00%,
11/15/99........................................ 582,500
-----------
1,179,500
-----------
METALS - (2.55%)
1,135,000 Crown Resources Corp., Conv. Sub. Deb., 5.75%,
08/27/01........................................ 737,750
500,000 Florida Steel Corp., Deb., 11.50%, 12/15/00........ 508,125
250,000 Haynes International Inc., Sr. Secured Notes,
Ser. A, 11.25%, 06/15/98........................ 236,250
-----------
1,482,125
-----------
PAPER PRODUCTS - (0.64%)
500,000 Grupo Industrial Durango S.A. DE C.V. Notes,
12.00%, 07/15/01................................ 370,790
-----------
PRINT MEDIA - (0.97%)
500,000 News America Holdings Inc., Sr. Notes, 12.00%,
12/15/01........................................ 563,461
-----------
REAL ESTATE - (3.93%)
750,000 The Forecast Group, Sr. Notes, 11.375%, 02/01/01... 543,750
800,000 Georgia Marble Co., Sr. Reset Notes, Extendable
Series B, 14.625%, 01/01/94<F2>................. 1,512,000
125,000 Georgia Marble Co., Sub. Notes, 17.00%,
01/01/96<F2>.................................... 236,250
-----------
2,292,000
-----------
RESTAURANT - (1.28%)
725,000 Foodmaker, Inc., Sr. Sub. Notes, 14.25%, 05/15/98.. 748,562
-----------
TELECOMMUNICATIONS - (4.51%)
1,354,100 Comdata Network, Inc., Jr. Notes, 11.00%, 10/15/97. 1,374,411
199,000 Mastec Inc., Conv. Sub. Deb., 12.00%, 11/15/00..... 194,025
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments - Continued
At March 31, 1995
- ------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - Continued
Value
Principal (Note 1)
- --------- --------
TELECOMMUNICATIONS - Continued
$ 900,000 Porta Systems Corp., Euro Conv. Sub. Deb., 6.00%,
07/01/02........................................ $ 432,000
100<F6> Viatel Inc., ($1,000,000 Class A, Sr. Disc. Notes,
Zero Cpn., 01/15/05 and 36,100 shares of
common stock)<F3>............................... 627,500
-----------
2,627,936
-----------
TRANSPORTATION/SHIPPING - (3.54%)
460,962 Continental Air Lines, Inc., Deferred Rent Notes,
12.00%, 06/30/96<F5>............................ 460,962
250,000 Moran Transporation Co., 1st Preferred Shipping
Mtg. Notes, 11.75%, 07/15/04<F5>................ 243,125
444,000 Preston Corp., Conv. Sub. Deb., 7.00%, 05/01/11.... 401,820
596,000 Tiphook Finance Corporation, Sr. Secured Notes,
8.00%, 03/15/00................................. 451,470
500,000 TNT Transport (Europe) PLC/TNT (USA) Inc., Sr.
Notes, 11.50%, 04/15/04......................... 508,750
-----------
2,066,127
-----------
UTILITIES - (1.36%)
750,000 Consolidated Hydro Inc., Sr. Discount Notes, Zero
Cpn., 07/15/03<F3>.............................. 438,750
357,000 Southeastern Public Service Co., Sr. Sub. Deb.,
11.875%, 02/01/98............................... 355,215
-----------
793,965
-----------
TOTAL CORPORATE BONDS AND NOTES (identified
cost $42,564,798)............................ 41,258,820
-----------
MORTGAGE BACKED BONDS - (7.71%)
227,106 Capstead Securities Corp., IV CMO, Series '92-7 CL
Z-1, 8.75%, 05/25/23............................ 224,835
604,666 Chase Mortgage Finance Corp., Series '93-G-A1,
REMIC, 7.00%, 04/25/01.......................... 586,526
382,860 Citicorp Mtg. Securities, Inc., Series '89-16,
5.8488%, 04/25/19............................... 373,289
77,690 Collateralized Mtg. Obligation Trust, Series 7,
CL C, 9.125%, 09/01/06.......................... 77,510
100,000 Federal Home Loan Mortgage Corporation, CMO,
Series '93, CL 1630 E, 6.00%, 09/15/23.......... 78,317
651,717 First Nationwide Trust, Series '89-AR4-1, 9.50%,
10/25/19........................................ 649,312
962,326 Guardian Savings & Loan Association, Mtg.
Pass-Through Certificates Series '88-1 A,
5.6253%, 07/25/18............................... 931,050
547,406 Guardian Savings & Loan Association, Sr. Mtg.
Pass-Through Certificates, Series '88-4 A,
Variable Pass-Through Rate, 5.8324%, 01/25/19... 526,879
95,621 Kidder, Peabody Mortgage Assets Trust, CMO, Series
21, CL C, Fixed Rate, 8.20%, 11/20/19........... 96,311
507,395 Merrill Lynch Mtg. Invst. Inc., Mtg. Pass-Through
Certificates, Series A, CL-A, 5.5965%, 02/01/18. 494,711
179,000 The Prudential Mortgage Securities Company, Mtg.
Pass-Through Certificates Series '92-38, CL A-8,
Fixed Rate, 6.95%, 11/25/22..................... 150,732
41,068 Resolution Trust Corporation, REMIC, '92-Series
M-3 CL A2, 8.625%, 07/25/30..................... 40,042
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments - Continued
At March 31, 1995
- ------------------------------------------------------------------------------
MORTGAGE BACKED BONDS - Continued
Value
Principal/Shares (Note 1)
- ---------------- --------
$ 215,473 Resolution Trust Corporation, American Res. Mtg.
Corp., Servicer, Mtg. Pass-Through Certificates,
Series '92-7 CL A1, 6.79%, 03/25/22............. $ 213,318
50,000 Ryland Acceptance Corporation Four, CMO, Ser. '85,
CL 85-D, 9.25%, 04/01/12........................ 51,208
-----------
TOTAL MORTGAGE BACKED BONDS (identified cost
$4,463,719).................................. 4,494,040
-----------
TAXABLE MUNICIPAL BONDS - (8.28%)
570,000 Adams Cnty., CO, IDR Series A Pool Gtd. - Executive
Life, 9.00%, 11/01/96<F1>....................... 157,468
500,000 Commerce Refuse to Energy Auth., Taxable Ref. Rev.
Bds., '90 Series, 10.50%, 07/01/00.............. 502,500
245,000 Dade Cnty. Educ. Fac. Auth., FL, Exchangeable Rev.
Bds, Series '90 (University of Miami Issue),
9.70%, 04/01/10................................. 264,166
165,000 El Paso Hsg. Fin. Corp., Multi-Fam. Res. Loan
Program, Securitized Mult-Fam. Hsg. Rev. Bds.,
Series '86A, 8.88%, 10/15/96<F1>................ 54,450
675,000 Lockhart, TX, Correctional Fac. Funding Corp.,
8.75%, 04/01/12................................. 687,616
100,000 Louisiana HFA Multi Fam. Mtg. Rev. Bds., Gtd.
Executive Life, 8.61%, 08/01/96<F1>............. 28,750
100,000 Louisiana St. Agriculture Fin. Auth., Security
Agriculture Rev. Bds., Series A, Gtd. Executive
Life, 8.80%, 10/01/96<F1>....................... 28,750
1,860,000 Massachusetts St. HFA Res., Series C, 10.90%,
08/01/20........................................ 1,966,950
230,000 Mayor and City Council of Baltimore, Econ. Dev.
Taxable Lease Rev. Bds. (Arcade Ltd. Partnership
Prj.) Ser. '92, 8.50%, 08/01/02................. 236,900
675,480 Memphis, TN Hlth. Educ. & Hsg. Fac. Brd., Multi
Fam. Hsg. Rev. Securitized, Series '86A, 8.68%,
09/15/96<F1>.................................... 179,069
20,000 Nebraska Invst. Fin. Auth., Agriculture Rev. Bds.,
Series A, Gtd. Executive Life, 8.34%,
11/01/93<F1>.................................... 5,750
440,000 New York St. HFA Rev. Multi Fam. Mtg. Series B,
Sonyma Prg. Insurance, 8.875%, 08/15/14......... 444,400
757,000 The Southeast TX Hsg. Fin. Corp. Securitized Multi
Fam. Hsg. Rev. Bds. Series '86A, 8.60%,
09/01/96<F1>.................................... 196,820
70,000 Utah St. Fin. Sngl. Fam. Mtg. Sr. Issue C, 10.55%,
07/01/06........................................ 70,350
-----------
TOTAL TAXABLE MUNICIPAL BONDS (identified cost
$5,061,742).................................. 4,823,939
-----------
PREFERRED STOCKS - (1.82%)
53,170 Sunshine Mining Holding Co., Cum. Redeemable $1.19
Pfd.<F3>........................................ 452,254
23,774 Supermarkets General Holding Corp., $3.52 Pfd.<F3>. 606,237
-----------
TOTAL PREFERRED STOCK (identified cost
$973,034).................................... 1,058,491
-----------
<PAGE>
Venture Income (+) Plus, Inc.
Schedule of Investments - Continued
At March 31, 1995
- ------------------------------------------------------------------------------
Value
Principal/Shares/Units (Note 1)
- ---------------------- --------
COMMON STOCKS - (1.16%)
360,952 Sunshine Mining Co.<F3> (identified cost $958,459). $ 676,785
-----------
WARRANTS - (0.37%)
1,632 Casino America Inc., expire 11/15/96<F3>........... 1,391
500 Chattem Inc., expire 8/17/99<F3>................... 2,250
869 Empire Gas Corp., expire 07/15/04<F3>.............. 8,690
36,000 Olympic Financial Ltd., expire 09/01/99<F3>........ 135,000
500 Petro PSC Properties L.P., Petro Fin'l Corp.,
expire 06/01/97<F3>............................. 17,500
21,825 Sunshine Mining Co., expire 03/09/99<F3>........... 19,438
205 Wright Medical Technology, Inc., expire
06/30/03<F3>.................................... 33,825
-----------
TOTAL WARRANTS (identified cost $28,041)........ 218,094
-----------
REPURCHASE AGREEMENTS - (6.63%)
$3,865,000 Shearson Lehman Repurchase Agreement, 6.15%,
04/03/95, dated 03/31/95, repurchase value of
$3,866,981 (collateralized by $4,150,000 par
value U.S. Treasury Notes, 5.125%, 12/31/98,
market value $3,865,000) (identified cost
$3,865,000)..................................... 3,865,000
-----------
OTHER SHORT-TERM INVESTMENTS - (2.39%)
1,400,000 Federal Home Loan Mortgage, Discount Note, 5.88%,
04/24/95 (identified cost $1,394,741)........... 1,394,741
-----------
TOTAL INVESTMENTS (identified cost
$59,309,534) - (99.12%) <F4>.............. 57,789,910
OTHER ASSETS LESS LIABILITIES - (0.88%)...... 515,409
-----------
NET ASSETS - 100%............................ $58,305,319
-----------
-----------
<FN>
<F1>
These securities are in default but have made partial payments.
<F2>
These securities are in default and are not currently paying interest.
<F3>
Non-income producing security.
<F4>
Aggregate cost for Federal income tax purposes is $59,309,534.
<F5>
These securities are subject to Rule 144A. The Board of Directors
of the Fund has determined that there is sufficient liquidity in these
securities to realize current valuations.
<F6>
Units
</FN>
</TABLE>
At March 31, 1995, unrealized appreciation (depreciation) of securities
for Federal income tax purposes was as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $ 1,763,482
Unrealized depreciation............... (3,283,106)
-----------
Net unrealized depreciation.... ($1,519,624)
-----------
-----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Statement of Assets and Liabilities
At March 31, 1995
- ------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost
$59,309,534) (Note 1)................................... $ 57,789,910
Cash....................................................... 20,349
Receivables:
Interest and dividends.................................. 1,178,249
Capital stock sold...................................... 114,937
Investments sold........................................ 494,958
Prepaid expenses........................................... 26,270
Other assets............................................... 75,000
------------
Total assets......................................... 59,699,673
------------
LIABILITIES:
Payables:
Capital stock reacquired................................ 131,416
Investments purchased................................... 1,150,207
Accrued expenses........................................... 112,731
------------
Total liabilities.................................... 1,394,354
------------
NET ASSETS (Note 5)........................................... $ 58,305,319
------------
------------
CLASS A SHARES
Net assets................................................. $ 56,404,861
Shares outstanding......................................... 11,601,030
Net asset value and redemption price per share
(net assets/shares outstanding)......................... $ 4.86
------
------
Maximum offering price per share (100/95.25 of $4.86)<F1>.. $ 5.10
------
------
CLASS B SHARES
Net assets................................................. $ 1,900,458
Shares outstanding......................................... 391,813
Net asset value, offering and redemption price per share
(net assets/shares outstanding)......................... $ 4.85
------
------
Net assets consist of:
Unrealized depreciation of investments..................... $ (1,519,624)
Accumulated net realized loss.............................. (25,170,666)
Paid-in capital............................................ 84,995,609
------------
Net assets........................................... $ 58,305,319
------------
------------
<FN>
<F1>
On purchases of $100,000 or more, the offering price is reduced.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
Statement of Operations
For the year ended March 31, 1995
- ------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest................................................ $ 6,627,392
Dividends............................................... 28,439
------------
Total income...................................... 6,655,831
------------
Expenses:
Management fees (Note 3)..................... 453,243
Custodian fees............................... 81,542
Transfer agent fees.......................... 86,174
Audit fees................................... 25,650
Legal fees................................... 33,118
Accounting fees (Note 3)..................... 11,004
Reports to shareholders...................... 24,173
Directors' fees and expenses................. 24,651
Registration and filing fees................. 48,180
Miscellaneous................................ 22,715
Commissions paid under distribution plan (Note 3)
Class A................................... 114,490
Class B................................... 3,302
Total expenses.................................... 928,242
------------
Net investment income.......................... 5,727,589
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from investment transactions............. (3,505,308)
Net decrease in unrealized depreciation of investments
during the period....................................... 529,763
------------
Net realized and unrealized gain (loss) on investments.. (2,975,545)
------------
Net increase in net assets resulting from operations.... $ 2,752,044
------------
------------
</TABLE>
See Notes to Financial Statements
<PAGE>
Statement of changes in Net Assets
- ------------------------------------------------------------------------------
<TABLE>
For the Years
Ended March 31,
---------------
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Operations:
Net investment income.......................... $ 5,727,589 $ 5,062,532
Net realized gain (loss) from investment
transactions................................ (3,505,308) 1,710,384
Net (increase) decrease in unrealized
depreciation of investments................. 529,763 (1,492,857)
----------- -----------
Net increase in net assets resulting from
operations............................... 2,752,044 5,280,059
Distributions to shareholders from:
Net investment income
Class A ($0.46 and $0.50 per share,
respectively)............................ (5,702,988) (5,104,403)
Class B ($0.11 per share)................... (24,601) -
Paid-in capital
Class A ($0.04 per share)................... (453,550) -
Distribution in excess of realized gains
Class A ($0.10 per share)................... - (982,932)
Capital share transactions (Note 5)............... (2,928,958) 27,166,096
----------- -----------
Total increase (decrease) in net assets.. (6,358,053) 26,358,820
Net Assets:
Beginning of year.............................. 64,663,372 38,304,552
----------- -----------
End of year.................................... $58,305,319 $64,663,372
----------- -----------
----------- -----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Notes to Financial Statements
Year Ended March 31, 1995
- ------------------------------------------------------------------------------
Note 1 - Summary of Significant Accounting Policies.
The Company is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. Its
primary objective is to achieve a high level of current income. The
Company also seeks capital growth so long as such objective is consistent
with its primary objective. The Company invests primarily in high yield,
high risk, low rated and unrated bonds commonly referred to as "junk
bonds." Such securities are speculative and subject to greater market
fluctuations and risk of loss of income and principal than higher rated
bonds. On December 1, 1994, the Company commenced the offering of
shares in two classes, Class A and Class B. The Class A shares are sold
with a front-end sales charge and the Class B shares are sold at net asset
value and may be subject to a contingent deferred sales charge upon
redemption. All classes have identical rights with respect to voting
(exclusive of each Class's distribution arrangement), liquidation and
distributions. The following is a summary of significant accounting
policies followed by the Company in the preparation of its financial
statements.
Security Valuation.
Fixed income securities may be valued on the basis of prices provided by a
pricing agent when such prices are believed to reflect the fair market
value of such securities. (Pricing agents generally take into account
institutional size trading in similar groups of securities). Securities not
priced in this manner will be priced at the last published sales price if
traded on that day and, if not traded, at the mean between the most recent
quoted bid and asked prices provided by investment dealers. The pricing
service and valuation procedures are reviewed and subject to approval by
the Board of Directors. If no quotations are available, securities will be
valued at fair value as determined in good faith by the Board of Directors.
Short-term obligations are valued at amortized cost, which approximates
value.
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 substantially all of its taxable income to shareholders.
Therefore, no provision for federal income tax is required. At March 31,
1995, the Fund had approximately $25,171,000 of capital loss carryovers
available to offset future capital gains, if any, of which $1,608,000,
$1,743,000, $4,918,000, $7,606,000, $4,382,000, $1,409,000 and
$3,505,000 expire in 1996, 1997, 1998, 1999, 2000, 2001 and 2003,
respectively.
Securities Transactions and Related Investment Income.
Securities transactions are accounted for on the trade date (date the order
to buy or sell is executed) with gain or loss on the sale of securities being
determined based upon identified cost. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis.
Dividends and Distributions to Shareholders.
Dividends and distributions to shareholders are recorded on the
ex-dividend date.
Other
During the year ended March 31, 1994, the Company adopted Statement of
Position 93-2 Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions
by Investment Companies. Accordingly, permanent book and tax basis
differences relating to shareholder distributions have been reclassified to
additional paid-in capital. As of April 1, 1993, the cumulative effect of
such differences totaling $813,939 was reclassified from accumulated
net realized loss to additional paid-in capital. Net investment income, net
realized gains, and net assets were not affected by this change.
Note 2 - Purchases and Sales of Securities.
Purchases and sales of investment securities (excluding short term
securities) during the year ended March 31, 1995, were $55,834,361 and
$56,458,824, respectively.
<PAGE>
Notes to Financial Statements - Continued
Year Ended March 31, 1995
- ------------------------------------------------------------------------------
Note 3 - Investment Advisory Fees and Other Transactions with Affiliates.
The Company pays advisory fees for investment management and advisory
services under a management agreement with Selected/Venture Advisers,
L.P. (the "Adviser"). The agreement provides for a monthly fee of .0625 of
1% (equivalent to .75 of 1% per annum) of the first $250 million of
average daily net assets of the Company. Regardless of the above
provisions, the Adviser will pay or refund to the Company any expenses
(including the fee under the agreement but excluding interest, taxes,
brokerage fees, payments made to the Distributor under any Rule 12b-1
Distribution Plan adopted by the Company and, where permitted,
extraordinary expenses) in excess of the most restrictive applicable
expense limitation prescribed by any statute or regulatory authority of
any jurisdiction in which the Company's shares are qualified for offer and
sale. The Adviser believes that the most restrictive expense limitations
presently applicable are 2 1/2% for the first $30 million of average net
assets, 2% for the next $70 million of average net assets and 1 1/2% for
any additional average net assets. Selected/Venture Advisers, L.P. is paid
for registering Company shares for sale in various states. The fee for the
year ended March 31, 1995 amounted to $8,004. Selected/Venture
Advisers, L.P. is paid for certain transfer agent services. The fee for the
year ended March 31, 1995 amounted to $7,749. Selected/Venture
Advisers, L.P. is also paid for certain accounting services. The fee for the
year ended March 31, 1995 amounted to $11,004. Three directors and the
officers of the Company are also directors and officers of the general
partner of Selected/Venture Advisers, L.P.
Note 4 - Distribution and Underwriting Fees
Class A Shares
Class A shares of the Company are sold at net asset value plus a
sales charge and are redeemed at net asset value (without a contingent
deferred sales charge).
During the year ended March 31, 1995, the Company's Underwriter,
Selected/Venture Advisers, L.P., received $236,817 from commissions
earned on sales of Class A shares of the Fund of which $37,587 was
retained by the Underwriter and the remaining $199,230 was reallowed to
investment dealers. Selected/Venture Advisers, L.P. paid the costs of
prospectuses in excess of those required to be filed as part of the
Company's registration statement, sales literature and other expenses
assumed or incurred by it in connection with such sales.
The Underwriter is reimbursed for amounts paid to dealers as a
maintenance fee with respect to Class A shares sold by dealers and
remaining outstanding during the period. The maintenance fee is paid at
the annual rate of 1/4 of 1% of the average net assets maintained by the
responsible dealers. The Underwriter is not reimbursed for accounts in
which the Underwriter pays no service fees to other firms. The
maintenance fee for Class A shares of the Company for the year ended
March 31, 1995 was $114,490.
Class B Shares
Class B shares of the Company are sold at net asset value and are
redeemed at net asset value less a contingent deferred sales charge if
redeemed within six years of purchase.
The Company pays the Distributor a 4% commission on the proceeds
from the sale of the Company's Class B shares and the Distributor
reallows 4% to the qualified dealer responsible for the sale of the shares.
A rule implemented by the National Association of Securities Dealers,
Inc., ("NASD") limits the percentage of the Company's annual average net
assets attributable to Class B shares which may be used to reimburse the
Distributor. The limit is 1%, of which 0.75% may be used to pay
distribution expenses and 0.25% may be used to pay shareholder service
fees. The
<PAGE>
Notes to Financial Statements - Continued
Year Ended March 31, 1995
- ------------------------------------------------------------------------------
Note 4 - Distribution and Underwriting Fees - (Continued)
Class B Shares - (Continued)
NASD rule also limits the aggregate amount the Company may pay for
distribution to 6.25% of gross sales since inception of the Rule 12b-1 plan
plus interest at 1% over the prime rate on unpaid amounts. The
Distributor intends to seek full payment (plus interest at prime plus 1%)
of distribution charges that exceed the 1% annual limit in some future
period or periods when the plan limits have not been reached.
During the four months ended March 31, 1995, Class B shares of the
Company made distribution plan payments which included commissions of
$2,302 and maintenance fees of $1,000.
Commissions earned by the Distributor during the four months ended
March 31, 1995 on the sale of Class B shares of the Company amounted to
$17,936 of which $15,595 was reallowed to qualified selling dealers.
The Distributor intends to seek payment from Class B shares of the
Company in the amount of $15,742, representing the cumulative
commissions earned by the Distributor on the sale of the Company's Class
B shares reduced by cumulative commissions paid by the Company and
cumulative contingent deferred sales charge paid by redeeming
shareholders. The Company has no contractual obligation to pay any such
distribution charges and the amount, if any, timing and condition of such
payment are solely within the discretion of the Directors who are not
interested persons of the Company or the Distributor.
A contingent deferred sales charge is imposed upon redemption of
certain Class B shares of the Company within six years of the original
purchase. The charge is a declining percentage starting at 4% of the
lesser of net asset value of the shares redeemed or the total cost of such
shares. During the four months ended March 31, 1995 the Distributor
received no contingent deferred sales charges from Class B shares of the
Company.
<PAGE>
Notes to Financial Statements - Continued
Year Ended March 31, 1995
- ------------------------------------------------------------------------------
Note 5 - Capital Stock.
At March 31, 1995, there were 1,000,000,000 shares of capital stock
($0.05 par value per share) authorized.
Transactions in capital stock were as follows:
<TABLE>
Class A
For the Year Ended
March 31, 1995
------------------
<CAPTION>
Shares Amount
------ ------
<S> <C> <C>
Shares subscribed................................ 2,407,613 $ 11,798,620
Shares issued to shareholders in connection
with reinvestment of distributions............ 784,110 3,839,262
---------- ------------
3,191,723 15,637,882
Shares reacquired................................ (4,183,295) (20,452,967)
---------- ------------
Net decrease..................................... (991,572) $ (4,815,085)
---------- ------------
---------- ------------
For the Year Ended
March 31, 1994
------------------
Shares Amount
------ ------
Shares subscribed................................ 5,992,041 $ 31,338,230
Shares issued to shareholders in connection
with reinvestment of distributions............ 750,550 3,910,773
---------- ------------
6,742,591 35,249,003
Shares reacquired................................ (1,543,340) (8,082,907)
---------- ------------
Net increase..................................... 5,199,251 $ 27,166,096
---------- ------------
---------- ------------
Class B
For the Year Ended
March 31, 1995
------------------
Shares Amount
------ ------
Shares subscribed................................ 492,336 $ 2,367,751
Shares issued to shareholders in connection
with reinvestment of distributions............ 967 4,634
---------- ------------
493,303 2,372,385
Shares reacquired................................ (101,490) (486,258)
---------- ------------
Net increase..................................... 391,813 $ 1,886,127
---------- ------------
---------- ------------
For the Year Ended
March 31, 1994
------------------
Shares Amount
------ ------
Shares subscribed................................ - $ -
Shares issued to shareholders in connection
with reinvestment of distributions............ - -
---------- ------------
- -
Shares reacquired................................ - -
---------- ------------
Net increase..................................... - $ -
---------- ------------
---------- ------------
</TABLE>
<PAGE>
VENTURE INCOME (+) PLUS, INC.
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
The following represents selected data for a share of capital stock
outstanding throughout each period.
<TABLE>
--------------Class A--------------- Class B
Four Months
ended
Year Ended March 31, March 31,
------------------------------------
<CAPTION>
1995 1994 1993 1992 1991 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period....... $5.14 $5.18 $4.92 $4.75 $6.07 $4.80
Income From Investment Operations
- ---------------------------------
Net Investment Income..... 0.46 0.50 0.61 0.53 0.56 0.11
Net Gains or Losses on
Securities (both realized
and unrealized)........... (0.24) 0.06 0.25 0.43 (0.85) 0.05
----- ----- ----- ----- ----- -----
Total From Investment
Operations............ 0.22 0.56 0.86 0.96 (0.29) 0.16
Less Distributions
- ------------------
Dividends (from net
investment income)...... (0.46) (0.50) (0.60) (0.53) (0.56) (0.11)
Returns of Capital........ (0.04) - - (0.26) (0.47) -
Distribution in excess of
realized gains.......... - (0.10) - - - -
----- ----- ----- ----- ----- -----
Total Distributions..... (0.50) (0.60) (0.60) (0.79) (1.03) (0.11)
----- ----- ----- ----- ----- -----
Net Asset Value,
End of Period............. $4.86 $5.14 $5.18 $4.92 $4.75 $4.85
----- ----- ----- ----- ----- -----
Total Return<F1>............ 4.69% 11.29% 18.81% 22.45% (5.32%) 4.28%
- ------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period
(000 omitted)............. 56,405 64,663 38,305 24,986 19,386 1,900
Ratio of Expenses to Average
Net Assets.................. 1.53% 1.48% 1.81% 1.93% 2.09% 2.36%<F2>
Ratio of Net Income to
Average Net Assets.......... 9.49% 9.31% 11.91% 11.01% 10.43% 8.66%<F2>
Portfolio Turnover Rate..... 98.94% 98.31% 84.93% 93.78% 76.92% 98.94%
<FN>
<F1>
Sales charges are not reflected in calculation.
<F2>
Annualized
</FN>
</TABLE>
<PAGE>
Venture Income (+) Plus, Inc.
Report of Independent Certified Public Accountants
- ------------------------------------------------------------------------------
To the Shareholders and Board of Directors
of Venture Income (+) Plus, Inc.
We have audited the accompanying statement of assets and
liabilities of Venture Income (+) Plus, Inc., including the schedule of
investments, as of March 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Company'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 March 31, 1995, by correspondence
with the custodian and brokers. 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 Venture Income (+) Plus, Inc. as of March 31, 1995, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
May 5, 1995
<PAGE>
VENTURE INCOME (+)
PLUS, INC.
124 East Marcy Street, Santa Fe, New Mexico 87501
- ------------------------------------------------------------------------------
Directors Officers
Martin H. Proyect Martin H. Proyect
Wesley E. Bass, Jr. Chairman &
Marc P. Blum President
Shelby M.C. Davis Carl R. Luff
Eugene M. Feinblatt Vice President, Treasurer
Jerry D. Geist & Assistant Secretary
D. James Guzy Raymond O. Padilla
G. Bernard Hamilton Vice President, Secretary
LeRoy E. Hoffberger & Assistant Treasurer
Laurence W. Levine Carolyn H. Spolidoro
Carl R. Luff Vice President
Edwin R. Werner Louis R. Proyect
Vice President
B. Clark Stamper
Vice President
Andrew A. Davis
Vice President
Eileen R. Street
Assistant Treasurer
& Assistant Secretary
Investment Adviser & Distributor
Selected/Venture Advisers, L.P.
124 East Marcy Street
Santa Fe, New Mexico 87501
Transfer Agent & Custodian
State Street Bank & Trust Company
c/o The Venture Funds
P. O. Box 8406
Boston, MA 02266-8406
Auditors
Tait, Weller & Baker
Two Penn Center Plaza Suite 700
Philadelphia, PA 19102-1707
Counsel
D'Ancona & Pflaum
30 North LaSalle Street
Chicago, Illinois 60602
- ------------------------------------------------------------------------------
For more information about Venture Income (+) Plus, Inc. including
management fee, charges and expenses, see the current prospectus which
must precede or accompany this report.
- ------------------------------------------------------------------------------
9505-15 VIP80
