Semi-Annual Report
to Shareholders
June 30, 1996
CENTURION T.A.A FUND, INC.
CENTURION
FUNDS GROUP
<PAGE>
CENTURION T.A.A. FUND, INC.
11545 WEST BERNARDO COURT, #100
SAN DIEGO, CALIFORNIA 92127
1996 Semi Annual Report
July 17, 1996
Your Fund had an excellent second quarter in 1996 gaining 3.4% for a total
return for the first six months of 8.7%. This ranks among the best
performance of all asset allocation and/or flexible funds for the first
six months of 1996. The average flexible fund was up 2.3% for the second
quarter. We have been able to achieve this performance while still being
cautious for the market by owning puts in those sectors that have been
declining. We are seeing this market more and more like 1994 where rotation
among sectors will remain rapid with earnings and price momentum being the
driving factors. The chart below reflects the diversification of the
portfolio by sector at June 30, 1996.
As you may have noted in the prospectus, when Centurion Counsel became
the investment advisor and changed the investment objectives of the Fund,
beginning in 1995, the Fund prior average annual return for one year was
a loss of 28% and for the five years a loss of 11%.
We are pleased to report that the new investment objectives are starting
to turn those dismal figures around. As of June 30, 1996, the average
annual total return for the preceeding one year was a positive 10.6% and
the loss for the previous five years was reduced to 6.4%.
Also, significant progress has been made in increasing the size of the
Fund from a low of $325,000 when Centurion began advising the Fund to
$4,370,000 at December 31, 1995 to $5,010,000 at June 30, 1996. Obviously,
the larger the Fund the lower the expense ratio. At the shareholders'
meeting on August 6, 1996, the shareholders are being asked to approve a
multi-class share arrangement which we believe will further increase the
size of the Fund.
MARKET PERSPECTIVE
As this is being written, the DOW has suffered a 275 point decline. This
decline, once again, surprised market participants because of the strength
of the economy as illustrated by the June employment report. On previous
occasions, the market response was a sharp one-day drop, with the prior
drops quickly recouped and frequently followed by newer highs. We feel
this time that the reaction my be considerably different and the market
less resilient. We feel this rationale will be tested by the rise in
interest rates and the increasing probability that the Fed will take
measures, such as raising the interest rate, to restrain inflation.
Thus, the valuation case for the U.S. equity market becomes suspect.
The corporate profit outlook would become more clouded due to higher
interest rates and increasing inflation.
Jack K. Heilbron Kenneth W. Elsberry
Chief Executive Officer President
Chief Investment Officer Chief Financial Officer
<PAGE>
<TABLE>
CENTURION T.A..A. FUND, INC.
STATEMENT OF INVESTMENT SECURITIES
June 30, 1996
(Unaudited) CENTURION TAA FUND
<CAPTION>
Shares or % OF
Principal Net Market
Amount Description Assets COST (a) PRICE Value (b)
COMMON STOCKS 60.29%
<S> <C> <C> <C> <C> <C>
AUTO AND AUTO PARTS 5.10%
2,500 FEDERAL MOGUL 47,838 45,938
500 GENUINE PARTS 22,863 22,875
1,000 ITT INDS 23,013 25,125
3,000 MODINEMANUFACTURING 83,625 79,500
6,100 NAVISTAR INTERNATIONAL 82,720 (e) 59,475
3,000 SPARTAN MOTORS ******** 29,138 22,500
289,195 255,413
CHEMICALS 1.60%
3,000 UNIROYAL CHEMICAL 6-18-96 46,275 44,625
500 GRACE (W.R.) 29,150 35,438
75,425 80,063
COMPUTER AND RELATED 5.29%
3,000 CAL MICRO DEVELOPMENT 26,250 (e) 26,625
4,000 CYPRESS SEMICONDUCTOR 61,538 (e) 48,000
3,000 FASTCOMM 19,671 (e) 54,375
3,000 FISCHER IMAGING 40,500 (e) 36,000
6,000 ICTS HOLLAND PROD 42,000 (e) 42,750
15,000 SA TELECOMMUNICATNS 58,125 (e) 37,500
2,125 ULTRA DATA SYS 20,034 (e) 19,922
268,118 265,172
CONSUMER/DEFENSIVE 3.79%
1,000 BEATRICE (TLC) 61,000 21,000
100 HERSHEY CREAMERY 180,000 169,000
241,000 190,000
CONSUMER/DURABLES 1.40%
1,000 BLACK & DECKER 37,570 38,625
1,500 MAYTAG 31,403 31,500
68,973 70,125
ENERGY 0.58%
1,000 DIAMOND SHAMROCK 30,070 28,875
30,070 28,875
ENVIRONMENTAL 4.64%
1,100 ALLIED WASTE SYSTEM 10,505 9,763
1,000 BROWNING FERRIS 29,550 29,000
2,000 IDM ENVIRONMENTAL 16,320 14,875
500 IONICS INC 22,800 23,500
1,000 MOLTEN METAL TECH 31,925 29,500
240 SANIFILL 10,540 11,910
1,500 THERMO REMEDIATION 19,950 18,750
1,500 THERMO TERRATECH 20,508 18,000
2,000 TRION INC 16,633 12,750
400 UNITED WASTE SYSTEM 10,690 12,900
2,000 WASTE MANAGEMENT 22,100 22,250
900 WMX TECHNOLOGY 30,983 29,475
242,503 232,673
FINANCE/BANKING 6.41%
100 1ST NATIONAL BANK OF ANCH 154,250 154,250
1,400 COUNTRYWIDE 29,425 34,650
2,200 D & N FINANCIAL 29,588 30,800
300 IMC MORTGAGE 5,400 6,750
1,500 NATIONAL BANCORP ALASKA 93,425 94,500
312,088 320,950
FOREIGN STOCKS 1.67%
20,000 TELEFONICA DEL PERU 44,400 (e) 41,200
3,000 CEMENTOS LIMA 36,100 (e) 42,375
80,500 83,575
HEALTHCARE 8.47%
6,000 CIRCON CORP 95,650 (e) 70,500
10,000 MARINER HEALTH GROUP 188,500 183,750
1,900 MERCK & CO 114,513 122,788
2,400 QUADRAX 4,069 (e) 2,850
2,300 SUNRISE MEDICAL 47,300 (e) 44,275
450,031 424,163
INDUSTRIAL 1.64%
4,300 BETHLEHEM STEEL 60,015 (e) 51,063
1,300 CINCINNATI MILACRON 32,038 30,875
92,053 81,938
INSURANCE 1.66%
500 HIGHLANDS INSURANCE 10,428 9,375
3,000 TRANSNTL RE'A' 74,275 73,875
84,703 83,250
MANUFACTURING-ATHELETIC EQUIPMENT 2.70%
2,665 CANNONDALE 40,974 53,966
5,000 GT BICYCLES 47,813 81,250
88,787 135,216
MINING/PRECIOUS METALS 6.32%
500 ALUMAX 17,910 15,188
3,000 BARRICK GOLD 85,985 81,375
3,000 COMMONWEALTH ALUMINUM 47,625 46,875
300 FREEPORT COPPER & GOLD 10,690 9,525
5,500 HOMESTK MINING 97,453 94,188
1,000 REYNOLDS METALS 56,925 52,125
13,800 SUNSHINE MINING 17,390 (e) 17,250
333,978 316,525
MANUFACTURING-PAPER PRODUCTS 0.73%
400 BOISE CASCADE 18,340 14,700
600 LONGVIEW 9,700 10,200
240 UNION CORP 11,845 11,700
39,885 36,600
PUBLISHING 0.03%
100 PROVIDENCE JOURNAL 1,500 1,538
1,500 1,538
REAL ESTATE 2.24%
1,200 BRADLEY REAL ESTATE TRUST 18,425 17,550
500 LIBERTY PROPERTIES TRUST 10,588 10,000
2,000 PENNSYLVANIA REIT 39,390 38,750
1,900 US RESTAURANT PROPERTIES 42,846 43,700
200 WINSTON HOTELS 2,200 2,325
113,449 112,325
RESTAURANTS 2.30%
5,000 NPC INTERNATIONAL 47,500 50,625
3,900 ROCK BOTTOM RESTUARANTS 58,413 46,800
5,000 TPI ENTERPRISES 13,750 (e) 17,969
119,663 115,394
RETAIL 2.80%
100 DONNA KARAN 2,400 2,800
4,000 EAGLE HARDWARE 39,775 61,000
4,350 GANTOS 11,422 (e) 24,741
25,000 ROSES STORES 51,663 51,563
105,260 140,103
TRANSPORTATION 0.93%
1,000 SMITHWAY MOTOR XPRESS 8,500 8,500
2,000 SWIFT TRANSPORTATION 37,250 38,250
45,750 46,750
TOTAL COMMON STOCK 60.29% 3,020,645
OPTIONS AND WARRANTS 6.24%
2500 ALTERRA SEP 45 P 13,199 21,563
5000 BAY NETWK (J) DEC 30 P 32,025 30,938
5000 DIAMOND SHAMROCK,(J) JUL 20 P 25,775 54,375
0.00 GENERAL MILLS (J) JAN 98 50 P20,975 30,000
10000 MICRON (J) OCT 35 P 56,550 97,500
2000 OEX AUG 640 P 31,962 18,000
1000 OEX JUL 630 P 21,304 2,500
1000 OEX SEP 650 P 23,424 15,875
1500 ORACLE SYSTEMS, SEP 30 C 10,929 15,375
26,900 SUNSHINE MIINNG, WTS 23,672 15,131
2500 WONDRWARE OCT 22.5 C 10,381 11,406
270,194 312,663
FIXED INCOME SECURITIES 10.51%
CORPORATE BONDS 4.45%
200 FOODMAKER CORP DUE9/25/99 199,028 199,750
1.2187161 MTN STS GTY MTG 1-G 1,262 1,222
25 NOVA CARE CONVERTIBEL, 5.5% 25,000 22,125
225,289 223,097
U.S. GOVERNMENT AND AGENCY BONDS 6.05%
4.29489 FHLMC 1294 A 6.5 3,888 4,295
89.85449424 FNMA 61G 7.0 89,449 87,608
0.23903000 FNMA 92 150 EB 6.3 98 238
21.2937434 FNMA G93-40 ZC 6.5 17,075 16,992
200 US TREASURY, 5%, DUE 2-15-99 194,864 194,063
305,374 303,195
SHORT-TERM INVESTMENTS 22.96%
COMMERCIAL PAPER 20.41%
250 AMERICAN EXPRESS CP 7-5-96 249,204 249,747
250 FORD MOTORCP 7-18-96 248,968 249,263
275 GENERAL ELECTRIC CAPITAL CP 273,862 273,903
250 IBM CREDIT CP 7-11-96 249,014 249,525
1,021,047 1,022,437
TOTAL INVESTMENTS 4,904,831 4,882,037
EXCESS OF CASH AND OTHER
ASSETS OVER LIABILITIES 2.6% 127,821
NET ASSETS 100.0% $,5,009,858
NOTES:
(a) Also represents cost for federal income tax purposes
(b) See Note 1 of notes to financial statements
(c) Total unrealized appreciation on investments consists of gross unrealized
gains of $259,538 and gross unrealized losses of $282,332
(d) For the six months ended June 30, 1996, the aggregate cost of purchases
and proceeds from sales of investment securities (excluding short-term
commercial paper and U.S. Treasury bills) were $3,565,475 and
$3,617,838, respectively.
(e) Non-income producing securities
<PAGE>
CENTURION T.A.A. FUND, INC.
STATEMENT OF COVERED CALL OPTIONS WRITTEN
JUNE 30, 1996
SHARES
SUBJECT MARKET PREMIUM
TO CALL COMMON STOCK/EXPIRATION DATE/EXERCISE PRICE VALUE RECEIVED
2500 BARRICK GOLD, JAN(97) 30 C $, 3,750 $, 5,249
1300 CINCINNATI MIACROL NOV 30 C 894 1,414
2000 CYPRESS SEMI, DEC 15 C 1,500 1,561
1000 CYPRESS SEMI, JAN(97) 17.5 C 563 4,968
1000 CYPRESS SEMI, JAN(98) 17.5 C 2,125 2,264
5000 DIAMOND SHAMROCK, (J) JUL 10 P 6,250 4,600
3000 EAGLE HARDWARE, AUG 12.5 C 8,625 4,046
3000 FASTCOMM, OCT 17.5 C (J) 11,625 8,347
500 WR GRACE, AUG 85 C 188 2,461
2000 HOMESTEAD MINING, JAN (97) 20 C 2,000 3,818
10000 MARINER HEALTH GROUP, (J) NOV 20C 16,875 18,406
1000 MERCK , JUL 65 C 1,125 2,821
900 MERCK ,JAN(97) 75 C 1,238 3,219
1300 SUNRISE MEDICAL, AUG 15 C 5,931 2,226
$,62,688 $,65,402
<PAGE>
</TABLE>
CENTURION T.A.A. FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
ASSETS
Investments in Securities, at value,
(identified cost $4,904,831) $4,882,037
Cash 212,104
Receivables:
Dividends 1,161
Interest 11,388
Investment Securities Sold 92,175
Prepaid Expenses 22,209
TOTAL ASSETS $,5,221,074
LIABILITIES
Covered Call Options Written, at market value,
(premiums received $65,402) $,62,688
Payables:
Accounts Payable 64,226
Investment Securities Purchased 84,303
TOTAL LIABILITIES 211,216
NET ASSETS
Net Assets (equivalent to $3.63 per share on
1,378,593 shares of $0.01 par value capital stock
outstanding: authorized 100,000,000 shares
$,5,009,858
The accompanying notes are an integral part of the financial statements.
<PAGE>
CENTURION T.A.A FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
INVESTMENT REVENUE
Dividends $,18,783
Interest 41,005
Total Investment Revenue 59,788
EXPENSES
Investment Advisory Fees (Note 4) $,23,174
Accounting (Note 4) 9,000
Custodian Fees and Expenses 3,000
Transfer Agent Fees 1,608
Audit Fees and Expenses 2,700
Shareholder Services 23,174
Insurance 686
Registration 14,955
Directors Fees 1,015
Other Expenses 651
Total Expenses 79,963
Fees and Expenses Absorbed by Investment Advisor 0
Net Expenses 79,963
Net Investment Income (Loss) -20,175
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain from Securities Transactions 449,129
Unrealized Depreciation of Investments -35,776
Unrealized Appreciation of Call Options Written 3,993
Net Gain on Investments 417,346
Net Increase in Net Assets from Operations $,397,171
The accompanying notes are an integral part of the financial statements.
<PAGE>
CENTURION T.A.A. FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND
THE YEAR ENDED DECEMBER 31, 1995
March 31,
1996
OPERATIONS
Net Investment Income (Loss) -$ ,20,175
Net Realized Gain from Securities Transactions 449,129
Unrealized Depreciation of Investments -35,776
Unrealized Appreciation (Depreciation)
of Covered Call Options Written 3,993
Net Increase (Decrease) in Net Assets from Operations 397,171
FUND SHARE TRANSACTIONS
Proceeds from Sale of 198,030, and 1301,491
Shares, Respectively 685,950
Amount Paid for Repurchase of 128,322 and 124,552
Shares, Respectively -443,550
Net Increase (Decrease) in Net Assets
from Fund Share Transactions 242,400
NET ASSETS
Beginning of Period 4,370,287
End of Period (includes no undistributed
investment income) 5,009,858
The accompanying notes are an integral part of the financial statements.
<PAGE>
CENTURION T.A.A. FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund commenced operations in January 1982. At the shareholder meeting
on December 20, 1994, the shareholders voted to change the name of the fund to
Centurion T.A.A. Fund, Inc. ("Fund") from Excel Value Fund, Inc. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The objective of the Fund to achieve long-term
investment return, including both capital appreciation and current income,
consistent with reasonable risk.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
Security Valuation:
Investments in securities traded on major exchanges are valued at the
last quoted sales price on that exchange where such securities are primarily
traded. Securities traded in the over-the-counter market are valued at the
last sales price. Over-the-counter and listed securities that have not been
traded on a certain day are valued at the average between the last bid and
asked price. If market quotations or pricing service valuations are not
readily available, securities are valued at fair value as determined in good
faith by the Fund's board of directors. Debt securities are valued in
accordance with the procedures above. Short-term securities are stated at
amortized cost (which approximates market value) if maturity is 60 days or
less, or at market value if maturity is greater than 60 days.
Security Transactions and Related Investment Income:
Security transactions are accounted for on the trade date and dividend
income is recorded on the ex-dividend date. Interest income, which may be
comprised of stated coupon rate, market discount and original issue discount,
is recorded on the accrual basis. Discounts on debt securities purchased
are amortized over the life of the respective security as adjustments to
interest income. Realized security gains and losses are determined using the
specific identification cost method.
Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Income Taxes:
The Fund has complied and continues to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and,
accordingly, has made or intends to make sufficient distributions of net
investment income and net realized capital gains, if any, to relieve it from
all federal and state income taxes and federal excise taxes.
<PAGE>
CENTURION T.A.A. FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
Cash Deposits:
At June 30, 1996 the Fund had cash on deposit at one financial
institution of $212,104. Thus, all cash amounts over the maximum Federal
Deposit Insurance Corporation coverage are not insured. From time to time,
the Fund evaluates the credit worthiness of the financial institution and
considers alternatives.
NOTE 2 - NET ASSETS
At June 30, 1996, net assets consisted of:
Net proceeds from capital stock $5,280,115
Unrealized appreciation of investments (22,787)
Unrealized depreciation of covered call
options written (1,310)
Excess distributions over accumulated
net income (340,220)
Undistributed net realized loss from
security transactions 94,060
----------
$5,009,858
==========
NOTE 3 - COVERED CALL OPTIONS WRITTEN
As of June 30, 1996, portfolio securities valued at $759,507 were held
by the custodian in connection with covered call options written by the Fund.
NOTE 4 - PAYMENTS TO RELATED PARTIES
The following were paid to the Fund advisor or its affiliates for the
six months ended June 30, 1996:
Investment advisory fee $ 23,174
Accounting fees 9,000
12B-1 fees 8,403
Transfer agency fees 1,608
Commissions:
Portfolio transactions 10,278
<PAGE>
CENTURION T.A.A. FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
The investment advisory and management agreements provide that the
advisor be paid a fee of 1% per annum of the average daily net assets of the
Fund. However, if the Fund's expenses, exclusive of taxes, interest,
brokerage fees and commissions, exceed 3.625% of the average daily net
assets, then the Fund advisor will reimburse the Fund the excess amount. For
the six months ended June 30, 1996, the expenses did not exceed 3.625%.
NOTE 5 - PER SHARE INFORMATION
Selected data for each share of capital stock outstanding throughout the
period is as follows:
<TABLE>
Six Months
Ended Year Ended December 31,
June 30,
<CAPTION>
1996 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period$,3.34 $,3.43$,4.55 $,4.96 $,5.17 $,5.11
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income -0.01 -0.05 -0.18 -0.21 -0.03 0.04
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.30 -0.04 -0.94 -0.20 -0.18 0.73
Total From Investment OperationsNote 10.29 -0.09 -1.12 -0.41 -0.21 0.77
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.00 0.00 0.00 0.00 -0.07
Distributions from Capital Gains 0.00 0.00 0.00 0.00 0.00 -0.64
Returns of Capital Total Distributions0.00 0.00 0.00 0.00 0.00 -0.71
Net Asset Value, End of Period $,3.63 $,3.34$,3.43 $,4.55 $,4.96 $,5.17
TOTAL RETURN 8.68% -2.62%-28.01%-12.39% -8.38% 9.94%
Note 1 - Allocated between Net Investment Income and Net Gains or (Losses) on Securities based on monthly weighted
average shares outstanding.
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period
($000 Omitted) $,5,010 $,4,370 $,452 $,757 $,1,273 $,1,59 3
Ratio of Expenses, Before
Waiver of Fees
and Reimbursement, to Average
Net Assets 3.42% 4.82% 9.04% 6.19% 4.51% 4.20 %
Ratio of Expenses, After Waiver
of Fees and Reimbursement, to
Average Net Assets 3.42% 3.53% 6.00% 5.19% 3.51% 3.18 %
Ratio of Net Investment Income
to Average Net Assets -0.43% 0.17% -4.78% -4.50% -0.78% 1.20%
Portfolio Turnover Rate 76.31% 57.20% 148.21% 143.11% 151.12% 161.48%
Number of Shares Outstanding
at End of Period (000 Omitted) 1,379 1,309 132 166 256 308
</TABLE>
<PAGE>
CENTURION T.A.A. FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 6 - SUBSEQUENT TRANSACTIONS
At the shareholder meeting held on December 20, 1994 at which a quorum
was represented the following matters were approved:
A new Investment Advisory Agreement with a new investment advisor,
Centurion Counsel, Inc. was approved. The only material difference between
the new advisory agreement and the old agreement is a reduction in the
amount of the advisory fee in the event the Fund's assets ever exceed $200
million.
A new Administration Agreement and Accounting Services Agreement with
Centurion Group, Inc. The only material differences between the new
agreements and the old agreements is the replacement by Centurion Group, Inc.
of Excel Advisor, Inc.
The investment objectives and policies of the Fund were changed from
"growth of capital and, secondarily, reasonable current income" to "long-
term total investment return, including both capital appreciation and
current income, consistent with reasonable risk". A material difference
between the new investment objectives and policies and the old one is that
in the future the Fund will pursue a tactical asset allocation strategy by
which it will allocate its investments among three asset classes based on
changes in preceived relative values of the three asset classes (common
stock, bonds, and money market instruments) while in the past the Fund
invested primarily in common stock equities and generally had no more than
10% of its total investments in other classes. The new investment
objectives allow the Fund to make short sales of securities while in the past
such transactions were prohibited.
The Plan of Distribution of shares of the Fund was changed to
discontinue paying front- end sales charges, which was 4.5% of the purchase
price, in connection with the sale of the Fund's shares. The Fund's 12B-1
fees and service charges were increased from 0.25% to 1.0%.
<PAGE>
Investment Advisor Board of Directors
Centurion Counsel, Inc. Carol Ann Freeland
11545 W. Bernardo Court, #100 Richard E. Hall
San Diego, CA 92127 Jack K. Heilbron
Russell W. Ketron
Doug Werner
Distributor Officers
Centurion Institutional Services, Inc. Jack K. Heilbron
11545 W. Bernardo Court, #100 Chief Executive Officer
San Diego, CA 92127 Chief Investment Officer
Kenneth W. Elsberry
President
Shareholder Chief Financial Officer
Servicing Agent
Centurion Group, Inc. Mary R. Limoges
11545 W. Bernardo Court, #100 Secretary
San Diego, CA 92127
Portfolio Manager
Auditors Jack K. Heilbron
Squire & Co.
1205 Prospect St., Ste. 400
La Jolla, CA 92037
Legal Counsel
Bruce J. Rushall, Esq.
Rushall & McGeever
2111 Palomar Airport Road #200
Carlsbad, CA 92009
CENTURION T.A.A. FUND, INC.
11545 West Bernardo Court #100
San Diego, CA 92127
(619) 673-8536
**A prospectus may be obtained by contacting a Financial Consultant at
Centurion Institutional Services, Inc. The prospectus containing more
complete information should be read carefully before making an investment in
Centurion T.A.A. Fund, Inc.
<PAGE>
