CENTURION T.A.A FUND, INC.
Portfolio Review
as of December 31, 1997
Fund Highlights Top Ten Holdings
Net Assets $8,268,736 Hershey Creamery 3.1%
First National Bank
of Anchorage 3.0%
NAV Per Share: National Bancorp of
Class A $3.35 Alaska 2.3%
Class B $3.33 Foodmaker Corp 9.25% 1.8%
Class C $3.33 Agouron Pharmaceutical 1.6%
Class D $3.36 Transcoastal Marine 1.5%
Genentech 1.5%
Shares Outstanding 2,484,106 Station Casinos 1.2%
Rock Bottom 1.2%
Eastman Kodak 1.2%
Porfolio Allocation
as of December 31, 1997 Top Ten Sectors
Cash/Commercial Paper 22.7%
Chart Mining/Precious Metals 7.0%
Biotechnology 6.7%
Computer and Related 6.1%
Retail 5.6%
Entertainment/Leisure 5.4%
Regional Banks 5.3%
Consumer 4.9%
Healthcare/Medical Prod4.5%
Restaurants 4.2%
TOTAL RETURN
Through December 31, 1997
(Since new management and investment objectives--January 1995)
Last Sinc Date of
Quarter TwelveChange or First
MonthsFirst Sales Sale
Class A:(1) -13.10% * -9.03% 1/07/97
Class B: - 8.01% * -4.39% 1/07/97
Class C: - 8.28% -5.13%-0.52%
Class D: - 8.20% -5.13%-2.73% 12/06/96
*Shares of this Class not available for the total period
(1) After a commission load of 4.75%
TOTAL RETURN
Through December 31, 1997
(Since inception--January 1982)
Last
Quarter Twelve Five Ten Since
Months Years Years Inception
Class A:(1) -13.10% * * * -9.03%
Class B: - 8.01% * * * -4.39%
Class C: - 8.26% -5.13% -8.49%-2.92% 3.96%
Class D: - 8.20% -5.13% * * -2.73%
*Shares of this Class not available for the total period
(1) After a commission load of 4.75%
CENTURION T.A.A. FUND, INC.
1998 Annual Report
In 1997 the Fund went through three separate and distinct phases. At the
beginning of the year it appeared that the markets were greatly overvalued,
and highter inflation rates were widely anticipated. Accordingly, we positioned
the Fund for a correction with option puts and short positions and with
approximately 9% of the portfolio in mining and precious metal stocks.
As you know, the anticipated correction did not materialize, and the Fund
had a 5.4% negative return in the first five months of the year. We reacted to
this by repositioning the Fund, and as a result, the early negative results
were more than offsetr by a positive return of 9.3% for the next five months--
a period in which the Dow Jones Industrial Average declined a record 554
points in one day.
The third phase began late in the year. During that period we took
losses in several stocks, including Galoob Toys, Country Star Restuarants,
Southern Energy Homes and Northwestern Steen & Wire. We had profitable
positions in some of the affected stocks before they declined in price,
but couldn't afford to sell because of an antiquated rule requiring
that mutual funds hold securities for at least three months to receive
favorable tax treatment. That rule was repealed effective
January 1, 1998, too late to benefit the Fund.
Another development that affected the Fund's performance in the third
phase was the performance of gold and silver. As measured by the
Philadelphia Gold and Silver index, this sector decreased 36.5% during
1997 of which 32.3% was in the last quarter. The bane of our existence
in 1997 was the performance of the precious metals sector. We
experienced a sinking feeling when we read recently that the Central Bank
of Argentina sold almost all of that nation's gold supply, which totaled
approximately 125 metric tons. Coming in the wake of substantial gold
reserve sales by the Netherlands, Belgium and Australia, this action
further depressed gold prices. Because we believe that a major market
correction was imminent and that this segment of the market would benefit
when the correction came, we had up to 10% of the Fund's assets in mining
and precious metals stocks and suffered a 26% setback on those positions
during the fourth quater.
The late-year developments combined to reduce the total return for
the Fund in 1997 to a negative 4.3% for the Class D shares, 5.1% for the
Class C shares and about 4.3% for the Class A and B shares. The net
asset value of the Class A, B, C and D shares declined for $3.65, $3.48,
$3.51 and $3.51 at the end of 1996 to $3.35, $3.33, $3.33 and $3.36,
respectively, on December 31, 1997.
In recognition of the Fund's performance during the last quarter
of 1997, the investment adviser, Centurion Counsel, Inc., waived 75% of
its advisory fee and the distribution agent waived 25% of the 12B-1 fees
for the quarter.
We have repositioned the Fund to put 25% of its assets in cash
equivalents and reduce the holdings in mining and precious metals to
7% of the portfolio's value. Call options have been written to increase
the return in anticipation of a recovery in the gold sector.
Portfolio Manager Review
DOW HITS 151,000
No, you won't see that headline in the Wall Street Journal or
anywhere else anytime soon. But you might expect the Dow to go that high
after seeing the results of a poll conducted by Montgomery Securities of
its own and other mutual fund shareholders.
These investors, Montgomery said, are anticipating a 34% yearly return
on their equity investments over the next 10 years. That would put the DOW
at approximately 151,000 by 2007. In this scenario, an investment of $53,000
in the market would grow to $1,000,000 in 10 years. And stock market
capitalizations, now equal to about 120% of gross domestic product, would rise
to 1400% of GDP--assuming the economy grows in line with the Federal Reserve
estimate of 2% to 4% per year.
How would such a dramatic performance compare to what has happened in
the past? The biggest 10-year appreciation occureed between 1949 to 1959,
when the gain averaged 21.3% annually. In our opinion, the chances that the
Dow will hit 151,000 in 10 years are somewhere between slim and none. And
it's highly unlikely that we'll see a 34% annual rise even during a shorter
period.
It all comes down to the fact that most investors today are out of
touch with reality. It is an all too common belief that the easy money
in life can be made by investing in the stock market. It's true that over
time, that rate of return on equities has exceeded that of T-bills and
inflation. However, in recent decades there have been periods as long
as 15 years when a combination of three-year and ten-year Treasury notes
easily outperformed equities--with less risk for investors.
As previously noted, the bane of our existence in 1997 was the
performance of the precious metals sector. The currencies of countries
that sold their gold reserves, notably Argentina, Netherlands, Belgium and
Australia, are now backed by nothing more than hot air--or, in the case of
Argentina, U.S. debt, which is U.S. hot air. As in the situation weren't
already bad enough, the papers are full of speculation about further gold
sales by central banks, which would further dampen the prospects for
precious metals.
The recent sales and the prospect of even more has produced a
consensus that gold stock will never shine again. We find that
outlook to be overly gloomy. The current situation reminds me of
1978 and December 1984, when gold was completely unloved. But, soon
after each of these low points, gold staged spectacular rallies.
Of course, we can't predict when gold will be back in favor
with investors. But it will happen, probably when it is least
expected. From our years of experience in managing money and from the
studies done, we know that volatile issues like the mining stocks
ultimatley will again be regarded as valuable additions to portfolios.
Investors who will benefit most from the next rally are those who have
the discipline to buy straw hats in winter when no one else wants them.
Weakening overseas sales drove the U.S. deficit in the third
quarter to its highest level in over a year. From July to September,
the deficit increased 11.4% to $42.16 billion from $37.85 billion the
second quarter. The Asian currency crisis was just beginning in the
third quarter and is expected to exert even greater upward pressure
on the trade deficit in the coming months.
We believe that the trade deficit will be the number one issue
in the mid-term elections this November. At present the increase
in this deficit is getting little or no attention from politicians
or the financial press. As the currencies of the Asian nations
continue to sprial downward, the only way they can achieve modest
growth is to export, and the export some more. That means a flood
of cheap goods into the United States.
But, because their currencies have plummeted, these countries
will be unable to afford exportable U.S. goods; as a result, the
trade deficit will grow even more rapidly. We would not be surprised
to see this deficit exceed $175 billion in 1998.
The fourth quarter of 1997 was a very difficult period for all
equity sectors. There was the massive sell-offs in Asia and the
"tech wreck" in the United States, then, jsut as markets appeared to
be righting themselves, another downturn occurred in December. Of
course, this produced a flight to quality which made U.S. Treasuries
the best performing asset for the quarter.
Sincerely,
CENTURION T.A.A. FUND, INC.
Jack K. Heilbron
Chairman
/s/
TABLE OF CONTENTS
FINANCIAL STATEMENT:
Independent Auditor's Report
Balance Sheet
Statement of Covered Call Options Written
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
INDEPENDENT AUDITOR'S REPORT
Board of Directors and Shareholders
Centurion T.A.A. Fund, Inc.
(formerly Excel Value Fund, Inc.)
We have audited the accompanying statement of assets and liabilities of
Centurion T.A.A. Fund, Inc., including the statement of investments and
covered call options written, as of December 31, 1997, and the related
statement of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended, and the
selected per share data and ratios for the five years then ended. 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
audit.
We conducted our audit 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 December 31, 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 audit provides 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 Centurion T.A.A. Fund, Inc., as of December 31,
1997, and 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 selected per share data and ratios for the five years then
eneded in conformity with generally accepted accounting principles.
Squire & Co.
/s/
February 5, 1998
Poway, California
CENTURION T.A.A. FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1997
ASSETS
Investments in Securities, at value,
(identified cost $8,706,207) $ 8,179,970
Cash 381,310
Receivables:
Dividends 5,558
Interest 16,179
Investment securities sold 6,482
Prepaid Expenses 1,953
Total assets 8,591,452
LIABILITIES
Covered Call Options Written, at market value,
(premiums received $307,910) 284,288
Payables:
Accounts payable 37,510
Total liabilities 321,798
NET ASSETS $ 8,269,654
Class A:
Net asset value and offering price per share
($8,543 divided by 2,549 shares outstanding) $ 3.35
Class B:
Net asset value and offering price per share
($478 divided by 144 shares outstanding) $ 3.33
Class C:
Net asset value and offering price per share
($7,288,252 divided by 2,191,360 shares outstanding) $ 3.33
Class D:
Net asset value and offering price per share
($972,381 divided by 289,693 shares outstanding) $ 3.36
The accompanying notes are an integral part of the financial statements.
CENTURION T.A.A. FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1997
Shares or % of Value
Principal Net (Note 1)
Amount Description Notes Assets Security Sector
COMMON STOCKS 54.74%
AEROSPACE 0.34%
563 RAYTHEON, CLASS A 27,869
27,869
BIOTECHNOLOGY 4.08%
4000 ALLIANCE PHARMACETICAL (a),(b) 28,000
2000 GENENTECH (a),(b) 121,000
3000 GENZYME (a),(b) 82,875
90 GENZYME TISSUE (b) 619
1500 LIGAND PHARM (a),(b) 19,406
10000 LIPOSOME CO. (a),(b) 46,250
4600 VISIBLE GENETICS (b) 39,388
337,538
CHEMICALS 1.99%
1400 DUPONT (a) 84,263
1000 GRACE (W.R.) (a) 80,438
164,700
COMMUNCIATIONS 2.45%
3500 FRONTIER (a) 84,000
1000 GENERAL MOTORS HUGHES 36,938
3000 P-COM INC. (a),(b) 51,750
1500 YURIE SYSTEMS (a),(b) 30,281
202,969
COMPUTERS 3.09%
1600 AMATI COMMUNICATIONS (a),(b) 31,500
1020 ANACOMP (b) 15,938
1500 CNET INC. (b) 44,250
1500 CONCENTRIC NETWORK CORP (b) 13,313
1500 GENERAL SCANNING (b) 25,875
2500 NCR CORP (a),(b) 69,688
1100 PEAK INTERNATIONAL (b) 22,963
2000 WESTERN DIGITAL (a),(b) 32,125
255,650
CONSUMER DEFENSE/SERVICES 4.75%
1000 BEATRICE (TLC) 51,500
200 FARMER BROTHERS 37,400
150 GREY ADVERTISING 49,200
150 HERSHEY CREAMERY 255,000
393,100
CONSTRUCTION 1.40%
1000 ALICO 23,250
75 BOSTON SAND & GRAVEL 20,625
9000 SOUTHERN ENERGY HOMES (b) 72,000
115,875
ENERGY 2.87%
1000 BARRETT RESOURCES (b) 30,000
1000 CARRIZO OIL & GAS (b) 7,875
5000 DENALI INC. (b) 66,250
2000 GREY WOLF, INC (b) 10,875
8600 TRANSCOASTAL MARINE (b) 122,550
237,550
ENTERTAINMENT/LEISURE 5.49%
10000 ALLIANCE GAMING (b) $ 48,750
1660 EASTMAN KODAK (a) 100,845
3000 FAMILY GOLF CENTERS (a),(b) 94,125
4000 MIRAGE RESORTS (a),(b) 90,500
10000 STATION CASINOS (a),(b) 101,875
1540 VIDEO LOTTERY (b) 18,288
454,383
ENVIRONMENTAL 1.00%
3000 WASTE MANAGEMENT (a) 82,500
82,500
FINANCE 0.89%
2000 COINSTAR (b) 18,000
2000 PIONEER GROUP 55,250
73,250
FINANCIAL/REGIONAL BANKING 5.27%
100 1ST NATL BANK OF ANCHORAGE 246,000
1500 NATIONAL BANCORP OF ALASKA 189,750
435,750
HEALTHCARE AND MEDICAL 3.97%
2000 CARDIAC PATHWAYS (b) 14,000
1000 CHEMED COMPANY 41,625
1000 GUIDANT CORP. (a) 62,250
3000 IMPATH (b) 98,250
2100 OXFORD HEALTH (a),(b) 32,550
2500 RENAL CARE (a),(b) 80,000
328,675
MEDIA 0.29%
800 HEARST-ARGYLE T.V. (b) 23,800
23,800
MINING AND PRECIOUS METALS 5.88%
2000 ASARCO 44,875
8000 COEUR D'ALENE MINES (a) 72,000
3000 EURO NEVADA (CN) 40,590
2900 FRANCO NEVADA (CN) 57,072
3300 FREEPORT COPPER & GOLD (a) 51,975
4000 HECLA MINING (b) 20,000
3000 HOMESTAKE MINING (a) 26,625
2000 KINROSS GOLD (a),(b) 6,625
2000 NEWMONT GOLD (a) 59,625
816 NEWMONT MINING (a) 23,919
2400 ROYAL GOLD (b) 11,400
2000 STILLWATER MINING (a),(b) 33,750
40000 SUNSHINE MINING (b) 37,500
485,956
REAL ESTATE 11.75%
1800 MIDAMERICA APARTMENTS 51,413
4000 UNITED DOMINION 56,000
1800 WASHINGTON REIT 30,263
1200 WEEKS CORP 38,400
176,075
RESTURANT 3.11%
2500 APPLE SOUTH (a) 32,813
5000 GRILL CONCEPTS (b) 5,313
4000 LONE STAR STEAKHOUSE (a),(b) 70,000
3000 NEW YORK BAGEL (b) 5,438
16000 ROCK BOTTOM (b) 101,000
1500 SBARRO 39,656
100 TRICON GLOBAL RESTAURANT (b) 2,906
257,125
RETAIL 3.58%
4000 C3, INC. (b) 46,250
4000 CANDIE'S (b) 23,500
1372 DONNA KARAN INTERNAT'L (a), (b) 17,665
1000 ESTEE LAUDER (a) 51,438
4000 FRIEDMANS, INC. (a) 55,000
2000 NAUTICA ENTERPRISES (a), (b) 46,500
10000 RIGHT START, INC. (b) 17,500
5000 STEVE MADDEN (b) 37,813
295,665
STEEL 9.18%
4300 BETHLEHEM STEEL (b) 37,356
1000 BRITISH STEEL, PLC (a) 21,500
30000 NORTHWEST STEEL & WIRE (b) 78,750
137,606
TRANSPORTATION 2.70%
1500 HEARTLAND EXPRESS (b) 40,500
40,500
OPTIONS 17.18%
AEROSPACE 0.36%
1500 GULFSTRM AERO, MAR, 25, CALLS 7,688
3000 RAYTHEON, MAY, 45, CALLS 21,375
1000 SUNSTRAND, JUN, 60, CALLS (a) 688
29,750
AUTO 0.03%
500 DAIMLER BENZ, JAN, 75, CALLS(a) 375
2000 DANA, JAN, 40, PUTS 125
500
BIOTECHNOLOGY 4.42%
9000 AGOURON , MAY, 60, PUTS (a) 276,188
10000 AMYLIN, APR, 5, CALLS (a) 14,375
8000 BIOTEK GENERAL, JAN, 10, CALLS(a) 8,000
2500 CENTOCOR, JAN (00), 25, CALLS(a) 38,750
3000 CEPHALON, MAY, 7.5, CALLS 13,875
2500 CHIRON, JAN, 15, CALLS 14,688
365,875
CHEMICALS 0.06%
500 AIR PRODUCTS & MATERIAL, MAR, 80, CALLS(a) 2,813
1000 PRAXAIR, APR, 45, PUTS 2,125
4,938
COMMUNCIATIONS 0.15%
1000 BOSTON TECHNOLOGIES, APR, 30, PUTS 5,750
2000 BRIGHTPOINT, JUN, 15, CALLS 6,000
1500 CIENA CORP, JAN, 50, PUTS 281
12,031
COMPUTERS 3.22%
1000 APPLIED MATERIALS, JAN, 25, CALLS(a 13,250
3000 COMPUTERVISION, JAN, 5, PUTS 3,563
1000 COMVERSE, APR, 45, PUTS 9,250
8000 CYBRMEDIA, FEB, 12.5, CALLS(a) 26,500
7500 CYBRMEDIA, MAY, 15, CALLS(a) 25,781
3000 DELL, JAN (99), 50, PUTS 9,563
1400 DIGITAL EQUIPMENT, JAN, 40, PUTS 4,725
1000 INTEL, JAN (99), 75, PUTS(a) 11,000
1000 INTEL, JAN, 95, PUTS 24,250
1000 INTEL, JAN, 97.5, CALLS 63
3000 IOMEGA, FEB, 10, CALLS (a) 9,000
1500 L & H SPEECH, MAR, 45, CALLS 9,375
12500 MADGE N, JAN (99), 5, CALLS(a) 14,844
10000 MICROSOFT, JAN (99),110, PUTS(a) 61,250
4000 NETSCAPE, APR, 25, CALLS(a) 14,500
1500 PREMIER LASER, FEB, 12.5, PUTS 7,594
1500 PRESSTEK, JAN, 40, PUTS (a) 21,000
10000 SIII, JAN, 10, CALLS(a) 625
266,131
CONSUMER DEFENSIVE/SERVICE 0.12%
1500 CONSUMER PTFL SRV, FEB, 15, CALLS 281
2000 PEPSI, JUL, 40, PUTS 9,250
9,531
ENERGY 1.11%
1500 ENRON, JUL, 40, PUTS 2,438
1500 OFFSHORE LOG, FEB, 22.5, PUTS 2,906
1000 OIL SERICE INDEX, MAR, 100, CALLS 19,500
1500 SCHLUMBERGER, JAN (00), 40, CALLS(a) 66,938
91,781
ENTERTAINMENT 0.03%
10000 GALOOB, FEB, 15, CALLS (a) 2,500
2,500
ENVIRONMENTAL 0.09%
700 U.S. FILTER, APR, 40, PUTS 7,088
7,088
FINANCE 0.36%
1500 AMERICAN EXPRESS, JAN, 75, CALLS(a) 21,375
10000 BANK OF AMERICA, JAN, 50, PUTS 1,250
1500 BANK ONE, MAY, 55, PUTS 6,188
2000 BANKERS TRUST, JAN, 70, PUTS 250
5000 CITICORP, JAN, 100, PUTS 938
30,000
HEALTHCARE AND MEDICAL PRODUCTS 0.72%
1500 LILLY (ELI) , JAN, 50, CALLS 30,375
1500 LINCARE, FEB, 50, PUTS 1,594
1500 MEDPARTNERS, MAR, 17.5, CALLS 8,906
2000 MERDIAN DIAG, MAR, 5, CALLS 10,750
1000 OSI PHARMACETICAL, JUN, 5, CALLS 2,188
1500 VET CENTERS, MAR, 10, CALLS 5,438
59,250
INDEXES 0.73%
300 HONG KONG, MAR, 290, PUTS 22,500
5000 DOW JONES, DEC (00), 80, PUTS (a) 37,813
60,313
INDUSTRIALS 0.26%
1500 PALL CORP, JUN, 22.5, PUTS 3,844
3,844
INSURANCE 0.33%
1500 AFLAC, MAY, 45, CALLS 12,188
5000 CIGNA, JAN, 160, PUTS 4,063
1500 CONSECO, MAY, 50, PUTS 11,438
27,688
MEDIA 0.24%
6000 US SATLITE, JUN, 5, CALLS(a) 20,250
20,250
MINING AND PRECIOUS METALS 1.26%
10000 BARRCK GOLD, JAN (00), 15, CALLS(a) 68,750
1000 GETCHELL GOLD, JUN, 25, CALLS 3,750
1000 GOLD/SILVER INDEX, JAN, 110, CALLS 63
10000 HOMESTAKE MINING, JAN (00), 10, CALLS(a) 25,000
26900 SUNSHINE MINING WARRANTS 6,725
104,288
RESTUARANTS 1.14%
5000 COOKER RESTUARANTS, MAR, 7.5, CALLS 12,188
5000 CRACKER BARRELL, JAN (00), 20, CALLS 81,875
1500 PLANT HOLLYWOOD, MAR, 17.5, CALLS 469
94,531
RETAIL 2.60%
2000 GIANT FOOD, JUN, 35, PUTS 5,125
1000 GUCCI, JAN, 65, CALLS 63
4800 NIKE, JAN, 60, PUTS (a) 100,200
10000 PIER ONE, MAR, 15, CALLS(a) 76,875
2000 SEARS, APR, 45, PUTS 5,500
1500 VIKING OFFICE, MAR, 17.5, CALLS 7,406
2000 WOOLWORTH, JAN (00), 30, PUTS 19,750
214,919
TRANSPORTATION 0.19%
1500 FEDERAL EXPRESS, APR, 70, PUTS 15,563
15,563
PREFERRED STOCKS 0.75%
1000 BROWNING FERRIS, 7.25%, PREFFERRED 34,000
1000 HILTON, 8% CONVERTIBLE, PREFERRED 28,125
62,125
FIXED INCOME 26.25%
CORPORATE BONDS 6.86%
100 AGNICO, CONVERTIBLE, 3 1/2%, 1-27-04 60,000
142 FOODMAKER CORP., 9.25%, 9/25/99 144,911
40 GOLDEN BOOK, 7.65%, 9/15/02 39,340
100 HILLS STORES, 12 1/2%, 7/1/03 79,500
1.199 MTN STS GTY MTG 1-G, 9.40%, 8/1/18 1,252
50 NORTHWEST STEEL, 9 1/2%, 6/15/01 48,840
100 NOVA, CONVERTIBLE, 5.5%, 1/15/00 95,000
100 TRANSMARITIME, 8 1/2%, 10/27/04 98,125
566,968
U.S. GOVERNMENT AGENCY BONDS 1.26%
26.631 FNMA G93-40 ZC, 6.50%, 12/25/23 24,800
51.18505 FNMA 61G, 7.00%, 9/25/20 51,474
28 FNR 91-56M, 6.75%, 6/25/21 28,158
104,431
COMMERCIAL PAPERS 18.13%
400 AMERICAN EXPRESS, 1/5/98 399,729
700 GENERAL ELECTRIC CREDIT, 1/2/98 699,893
400 GENERAL MOTORS ACCEPTANCE, 1/8/97 399,521
1,499,143
Total Investments 8,179,970
Covered Call Options Written -3.44% -284,287
Cash 4.61% 381,310
Other Assets, less Liabilities -0.09% -7,339
Total Net Assets 100.00% $ 8,269,654
Notes:
(a) Call options have been written against this position
(b) Non-income producing securities
(c) Total unrealized appreciation on investments consists of gross
unrealized gains of $949,275and gross unrealized losses of
$1,451,900.
The accompanying notes are an integral part of the financial statements.
CENTURION T.A.A. FUND, INC.
Statement of Covered Call Options Written
December 31, 1997
Shares or % of Value
Principal Net (Note 1)
Amount Description Assets Option Sector
AEROSPACE -0.00%
- -1,000SUNDSTRAND, MAR, 65, CALLS -125
-125
AUTO -0.00%
- -500 DAIMLER BENZ, JAN, 85, CALLS -63
-63
BIOTECHNOLOGY -1.80%
- -9,000AGOURON, FEB, 45, PUTS -140,625
- -4,000ALLIANCE PHARMACETICAL, FEB, 12.5, CALLS -500
- -3,000AMYLIN PHARMACETICAL, JAN, 10, CALLS -188
- -8,000BIOTECH GENERAL, JAN, 15, CALLS -500
- -2,500CENTOCOR, JAN, 55, CALLS -156
- -2,000GENENTECH, JAN, 60, CALLS -2,125
- -3,000GENZYME, JAN, 30, CALLS -1,125
- -1,500LIGAND PHARMACETICAL, MAY, 15, CALLS -1,594
- -5,000LIPOSOME, FEB, 7.5, CALLS -1,563
- -5,000LIPOSOME, JAN, 7.5, CALLS -625
-149,000
CHEMICALS -0.11%
- -500 AIR PRODUCTS &MATERIAL, MAR, 85, CALLS -1,438
- -1,400DUPONT, JAN, 65, CALLS -350
- -1,000GRACE (WR), FEB, 75, CALLS -6,938
-8,725
COMMUNICATIONS -0.14%
- -3,500FRONTIER, JAN, 22 1/2, CALLS -5,906
- -3,000P-COM, FEB, 20, CALLS -3,188
- -1,500YURI SYSTEMS, JAN, 20, CALLS -2,625
-11,719
COMPUTERS -0.24%
- -1,600AMATI COMMUNICATIONS, JAN, 17.5, CALLS -3,800
- -1,000APPLIED MATERIAL, FEB, 35, CALLS -1,375
- -10,000CYBRMEDIA, FEB, 30, CALLS -1,250
- -1,000INTEL, JAN, 100, CALLS -63
- -3,000IOMEGA, FEB, 15, CALLS -1,875
- -3,500MADGE NET, FEB, 10, CALLS -438
- -5,000MADGE NET, JAN, 10, CALLS -313
- -4,000MADGE NET, MAY, 7.5, CALLS -1,500
- -10,000MICROSOFT, JAN, 110, PUTS -3,125
- -2,500NCR CORP, JAN, 40, CALLS -156
- -4,000NETSCAPE, JAN, 35, CALLS -750
- -1,000PRESSTEK, JAN, 30, PUTS -4,375
- -10,000SIII, JAN, 15, CALLS -625
- -2,000WESTERN DIGITAL, JAN, 20, CALLS -375
-20,019
ENERGY -0.01%
- -1,500SCHLUMBERGER, JAN, 90, CALLS -469
-469
ENTERTAINMENT -0.12%
- -1,400 EASTMAN KODAK, JAN, 75, CALLS -88
- -1,000 FAMILY GOLF, FEB, 30, CALLS -3,563
- -2,000 FAMILY GOLF, FEB, 35, CALLS -2,750
- -10,000GALOOB, FEB, 22.5, CALLS -625
- -500 MIRAGE RESORTS, MAY, 25, CALLS -813
- -5,000STATION CASINO, JAN, 10, CALLS -2,188
-10,025
ENVIRONMENTAL -0.00%
- -3,000 WASTE MANAGEMENT, JAN, 35, CALLS -188
-188
FINANCE -0.17%
- -1,500AMERICAN EXPRESS, JAN, 80, CALLS -14,063
-14,063
HEALTHCARE AND MEDICAL PRODUCTS-0.15%
- -1,000 GUIDANT, JAN, 55, CALLS -8,125
- -2,100 OXFORD HEALTH, JAN, 17.5, CALLS -788
- -2,500 RENAL CARE, MAR, 35, CALLS -3,594
-12,506
INDEXES -0.01%
- -5,000 DOW JONES, JAN, 72, PUTS -625
-625
MEDIA -0.02%
- -6,000 US SAT BROADCASTING, FEB, 10, CALLS -1,500
-1,500
MINING AND PRECIOUS METALS -0.09%
- -1,300 BARRICK GOLD, FEB, 20, CALLS -813
- -4,000 BARRICK GOLD, JAN, 20, CALLS -750
- -1,000 BARRICK GOLD, JAN, 22.5, CALLS -63
- -2,000 BARRICK GOLD, JAN, 25, CALLS -125
- -3,500 COEUR D'ALENE, JAN, 10, CALLS -875
- -3,000 FREEPORT COOPER& GOLD, FEB, 35, CALLS -188
- -2,300 HOMESTAKE MINING, APR, 12.5, CALLS -575
- -2,000 HOMESTAKE MINING, JAN. 15. CALLS -125
- -2,000 HOMESTAKE MINING, JAN(99), 15, CALLS -1,000
- -2,000 KINROSS GOLD, FEB, 5, CALLS -250
- -2,000 NEWMONT GOLD, JAN, 30, CALLS -1,875
- -800 NEWMONT MINE, JAN, 30, CALLS -800
- -2,000 STILLWATER MINE, JAN, 25, CALLS -250
-7,688
RESTUARANTS -0.01%
- -2,500 APPLE SOUTH, FEB, 17 1/2, CALLS -313
- -4,000 LONESTR STEAK, MAR, 25, CALLS -500
-813
RETAIL -0.56%
- -1,300 DONNA KARAN, JAN, 17.5, CALLS -163
- -1,000 ESTEE LAUDER, JAN, 50, CALLS -2,313
- -4,000 FREIDMAN'S, FEB, 17.5, CALLS -500
- -2,000 NAUTICA, APR, 30, CALLS -1,500
- -4,800 NIKE, JAN, 45, PUTS -27,600
- -4,000 PIER ONE, JAN, 22 1/2, CALLS -3,000
- -6,000 PIER ONE, MAR, 22 1/2, CALLS -11,625
-46,700
STEEL -0.00%
- -1,000 BRITISH STEEL, JAN, 30, CALLS -62
-62
Total -284,287
The accompanying notess are an integral part of the financial statements.
CENTRUION T.A.A. FUND, INC.
STATEMENT OF OPERATIONS
Year Ended Decemeber 31, 1997
INVESTMENT REVENUE
Dividends $ 91,081
Interest 166,344
Total investment revenue 257,425
EXPENSES
Investment advisory fees $ 92,281
Distribution expenses 77,469
Registration and filing fees 20,663
Fund accounting fees 18,126
Custodian fees and expenses 32,163
Audit fees and expenses 5,442
Directors' fees and expenses 10,578
Transfer agent fees 3,232
Insurance 2,155
Other expenses 13,485
Total expenses 275,593
Fees and expenses absorbed by investment advisor -21,481
Net expenses 254,112
Net investment income (loss) 3,313
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net realized loss from securities transactions -60,487
Unrealized depreciation of investments -406,598
Net loss on investments -467,085
Net decrease in net assets from operations $ -463,772
The accompanying notes are an integral part of the financial statements.
CENTURION T.A.A. FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended December 31, 1997 and 1996
1997 1996
OPERATIONS
Net investment income (loss) $ 3,312 $ -48,070
Net realized gain (loss) from
securities transactions -60,487 264,245
Net change in unrealized depreciation
of investments -406,598 -106,453
Net change in unrealized appeciation of
securities sold short 11,068
Net change in unrealized depreciation of investments of
covered call options written -8,727
Net increase (decrease) in net assets resulting
from operations -463,773 112,063
CLASS C SHARES
Distribution to shareholders:
Ordinary income dividend
($0.0024 per share in 1996) -3,637
CAPITAL SHARE TRANSACTIONS
Increase from capital shares sold 1,783,727 6,424,359
Increase from capital shares reinvested 3,597
Decrease from capital shares repurchase-2,744,423 -1,212,546
Net increase (decrease) from capital
share transactions -960,696 5,215,410
Total increase (decrease) in net assets-1,424,469 5,323,836
NET ASSETS
Beginning of period 9,694,123 4,370,287
End of period (includes no undistributed
investment income) $ 8,269,654 $ 9,694,123
The accompanying notes are an integral part of the 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 amended, as a
diversified, open-end management investment company. The objective of the
Fund is to achieve long-term investment return, including both capital
appreciation and current income, consistent with reasonable risk.
At the shareholder meeting on August 6, 1996, the shareholders approved the
Fund to offer Class A, Class B, Class C and Class D shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Fund are allocated on a pro rata basis to each class based
on the relative net assets of each class to the total net assets of the Fund.
Each class of shares differ in its respective service and distribution
expenses, and may differ in its transfer agent, registration, and certain
other class-specific fees and expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
Portfolio Valuation:
The Fund calculates its net asset value and completes orders to purchase,
exchange or repurchase its shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
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 (date the
order to buy or sell is executed). The cost of securities sold is determined
on a first-in, first-out basis, unless otherwise specified. Dividends are
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.
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:
It is the policy of the Fund to meet the requirements for qualification
as a regulated investment company under the Internal Revenue Code of 1986, as
amended ( Code ). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the
Code. Therefore, no provision has been made for Federal taxes on income,
capital gains, or unrealized appreciation of securities held, and excise tax
on income and capital gains. The Fund currently has capital loss carry
forwards totaling $151,294 which begin to expire in 2002.
Distributions to Shareholders:
Distributions to shareholders are recorded by the Fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance with
Federal income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Fund and timing differences.
Restricted Securities:
The Fund is permitted to invest in privately placed restricted
securities. These securities may be resold in transactions exempt from
registration or to the public if the securities are registered. Disposal of
these securities may involve time-consuming negotiations and expense, and
prompt sale at an acceptable price may be difficult.
Cash Deposits:
At December 31, 1997 the Fund had cash on deposit at one financial
institution of $381,310. 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 December 31, 1997, net assets consisted of:
Net proceeds from capital stock $ 9,292,429
Unrealized depreciation of securities (526,237)
Unrealized appreciation of covered call options written 23,623
Excess distributions over accumulated net income (324,276)
Undistributed net realized loss from security transactions (195,885)
$ 8,269,654
Note 3. Covered Call Options Written
As of December 31, 1997, portfolio securities valued at $2,862,291 were held
by the custodian in connection with covered call options written by the Fund.
Note 4. Payments to Related Parties
Centurion Counsel, Inc. ( Centurion ) is the Fund s investment manager.
The Fund pays investment management fees to Centurion at the annualized rate
of 1.00% on the first $200 million of average daily net assets of the Fund,
0.85% on the next $200 million, 0.80% on the next $200 million, 0.75% on the
next $200 million, 0.60% on the next $200 million and 0.50% on amounts over
$1 billion. These fees are computed daily and paid quarterly and are subject
to reduction in any year to the extent that the Fund s expenses (exclusive of
brokerage commissions, taxes, interest, distribution-related expenses and
extraordinary expenses) exceed 3.625% based on the average total net asset
value of the Fund. During the year ended December 31, 1997 Centurion received
investment management fees of $75,564 and, although not required to, it waived
$16,717 of the advisory fee.
Centurion Institutional Services, Inc. ( CISI ), an affiliate of Centurion,
serves as the Fund s distributor. The Fund offers Class A, Class B, Class C
and Class D shares for purchase.
Class A shares are subject to initial sales charges imposed at the time
of purchase, in accordance with the schedule included in the Fund s current
prospectus. CISI collects the sales charges imposed on the sale of Class A
shares, and re-allows a portion of such charges to dealers who sold the
shares. During the year ended December 31, 1997, 2,543 shares of Class A
shares were sold and, accordingly, CISI retained $43 of such charges. CISI
also makes ongoing shareholder servicing and trail commission payments to
dealers whose clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B
shares are sold, CISI from its own resources pays commissions to dealers who
sell these shares. Certain redemptions of Class B shares made within six years
of purchase are subject to contingent deferred sales charges ( CDSC ) upon
redemption, in accordance with the Fund s current prospectus. During the year
ended December 31, 1997, 144 shares were sold and there was no redemptions of
Class B shares, accordingly, CISI did not collect any CDSC charges. In
addition, CISI makes ongoing shareholder servicing and trail commission
payments to dealers whose clients hold Class B shares.
Class D shares are not subject to initial sales charges, CDSC, service
fees or distribution fees. These shares are only available to Advisor
professionals and eligible employees of the Fund, Centurion and its affiliates
or service organizations.
Pursuant to Rule 12b-1 under the 1940 Act, the Company s Board of
Directors has adopted separate plans of distribution with respect to the Funds
Class A shares ( Class A Plan ), Class B shares ( Class B Plan ), and Class C
shares ( Class C Plan ), pursuant to which the Fund reimburses CISI for a
portion of its shareholder servicing and distribution expenses. Under the
Class A Plan, the Fund may pay CISI a service fee at the annualized rate of
up to 0.25% of the average daily net assets of the Funds Class A shares for
CISI s expenditures incurred in servicing and maintaining shareholder
accounts.
Pursuant to the Fund s Class B Plan, the Fund may pay CISI a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the
Fund s Class B shares for CISI s expenditures incurred in servicing and
maintaining shareholder accounts, and may pay CISI a distribution fee at the
annualized rate of up to 0.75% of the average daily net assets of the Fund s
Class B shares for CISI's expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as
long as that Plan continues in effect.
Pursuant to the Fund's Class C Plan, the Fund may pay CISI a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the
Fund s Class C shares for CISI s expenditures incurred in servicing and
maintaining shareholder accounts, and may pay CISI a distribution fee at the
annualized rate of up to 0.75% of the average daily net assets of the Fund s
Class C shares for CISI's expenditures incurred in providing services as
distributor. Expenses incurred under the Class C Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as
long as that Plan continues in effect. During the six months ended
December 31, 1997, CISI received servicing and distribution fees from the
Fund of $72,690 and, although not required to, it waived $4,764 of
servicing fees pursuant to the Class C Plan.
CISI also executes some of the Fund s portfolio transactions. During the
year ended December 31, 1997, CISI received commissions of $55,211 from the
Fund for this service.
Centurion Group, Inc. ( CGI ), an affiliate of Centurion and CISI, is the
administrator and transfer agent of the Fund. CGI is paid an account
maintenance fee of $0.75 per account per month, a customer statement fee of
$50 per 1,000 statements and other miscellaneous charges and expenses.
During the year ended December 31, 1997, CGI received transfer fees of
$3,232 from the Fund.
CGI is also the accounting agent for the Fund. The monthly fee for these
services paid to CGI is 0.15% of the Fund s average daily net assets with a
minimum fee of $18,000 per year. During the year ended December 31, 1997,
CGI received accounting fees of $18,000 from the Fund.
The Fund pays each of its Directors who is not an employee, officer or
director of Centurion or any affiliate $250 for each meeting of the Board
or any committee thereof attended by the Director. In addition the Fund pays
each Director s expenses to attend the meetings.
Note 5. Capital Share Transactions
As of December 31, 1997, there were 100,000,000 shares of the Company s
common stock authorized, at $0.01 par value. Transactions in capital stock
of the Fund for the year ended December 31, 1997 and 1996 (as applicable) were
as follows:
December 31, 1997
Shares Amount
Class A shares:
Shares sold 2,563 $ 8,664
Shares issued in reinvestment
of dividends - -
2,563 8,664
Shares redeemed (14) (88)
Net increase 2,549 $ 8,576
Class B shares:
Shares sold 144 $ 500
Shares issued in reinvestment
of dividends - -
144 500
Shares redeemed - -
Net increase 144 $ 500
December 31, 1997 December 31, 1996
Shares Amount Shares Amount
Class C shares:
Shares sold 385,499 $ 1,341,181 1,800,452 $ 6,424,359
Shares issued in reinvestment
of dividends - - 983 3,597
385,499 1,341,181 1,801,435 6,427,956
Shares redeemed 434,885 1,494,774 344,840 1,212,546
Net increase (decrease) (49,386) ($ 153,593) 1,456,595 $ 5,215,410
Class D shares:
Shares sold 123,388 $ 433,381 1,800,452 $ 6,424,359
Shares issued in reinvestment
of dividends - - 983 3,597
123,388 433,381 1,801,435 6,427,956
Shares redeemed 359,188 1,249,561 344,840 1,212,546
Net increase (decrease) (49,386) ($ 816,180) 1,456,595 $ 5,215,410
Note 6. Investment Transactions
Purchases and sales of investment securities (excluding short-term
securities) were $15,690,054 and $15,561,479, respectively. Net loss on
investments for the year ended December 31, 1997 was $463,598. That amount
represents the net decrease in value of investments held during the year.
As of December 31, 1997, the unrealized appreciation on investments consists
of gross unrealized gains of $947,871 and gross unrealized losses of $1,451,890.
Note 7. Per Share Information
Selected data for each share of capital stock outstanding throughout the
period is as follows:
CLASS C Shares (a)
Years Ended December 31,
1997 1996 1995 1994 1993
Per Share Operating Performance:
Net Asset Value, Beginning of Period 3.51 3.34 3.43 4.55 4.96
INCOME FROM INVESTMENT OPERATIONS
Net investment income (d) -0.01-0.03 -0.05 -0.18 -0.21
Net gains (losses) on investments
(both realized and unrealized) (d) -0.17 0.20 -0.04 -0.94 -0.20
Total from investment operations -0.18 0.17 -0.09 -1.12 -0.41
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income
Distributions from capital gains
Total distributions
Net Asset Value, at End of Period 3.33 3.51 3.34 3.43 4.55
TOTAL RETURN (f) -5.13%5.16%-2.62% -28.01% -12.39%
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period ($000 Omitted) 7,288 7,855 4,370 452 757
Ratios to Net Assets:
Expenses, before waiver of fees 3.14% 3.54% 4.82% 9.04% 6.19%
Expenses, after waiver of fees 2.91% 3.54% 3.53% 6.00% 5.19%
Net investment income -0.11% -0.43%0.17% -4.78% -4.50%
Portfolio Turnover Rate 234.67%129.20%57.20%148.21%143.11%
Average Commission Rate Paid (e)
Number of Shares Outstanding at End of Period
(000 Omitted) 2,191 2,241 1,309 132 166
(a) All capital shares issued and outstanding as of November 6, 1996 were
reclassified as Class C shares.
(b) For the period December 9, 1996 (effective date) to December 31, 1996.
(c) For the period January 7, 1997 (first sale date) to December 31, 1997.
(d) Allocated between Net Investment Income and Net Gains or (Losses) on
Securities based on monthly weighted average shares outstanding.
average shares outstanding.
(e) Relates to purchases and sales of equity securities. Prior to year end
1996 disclosure of average commission rate was not required.
(f) Total return measures the change in value of an investment over the
periods indicated. It is not annualized. It does not inclued the
maximum front end sales charge or contingent deferred sales charge.
CLASS D CLASS A CLASS B
1997 1996 (b) 1997 (c) 1997 (c)
Per Share Operating Performance:
Net Asset Value, Beginning of Period 3.51 3.46 3.65 3.65
INCOME FROM INVESTMENT OPERATIONS
Net investment income (d) 0.01
Net gains (losses) on investments
(both realized and unrealized) (d) -0.16 0.05 -0.30 -0.32
Total from investment operations -0.15 0.05 -0.30 -0.32
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income
Distributions from capital gains
Total distributions
Net Asset Value, End of Period 3.36 3.51 3.35 3.33
TOTAL RETURN (f) -0.04 0.05 -0.08 -0.04
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period ($000 Omitted) 972 1,839 8 1
Ratios to Net Assets
Expenses, before waiver of fees 2.20% 2.13% 2.38% 2.84%
Expenses, after waiver of fees 1.97% 2.13% 2.15% 2.60%
Net investment income 0.82% 0.64% 0.19%
Portfolio Turnover Rate 234.67%129.20% 234.67% 234.67%
Average Commission Rate Paid (e) 0.02 0.03
Number of Shares Outstanding at End of Period
(000 Omitted) 290 524 3 0
(a) All capital shares issued and outstanding as of November 6, 1996 were
reclassified as Class C shares.
(b) For the period December 9, 1996 (effective date) to December 31, 1996.
(c) For the period January 7, 1997 (first sale date) to December 31, 1997.
(d) Allocated between Net Investment Income and Net Gains or (Losses) on
Securities based on monthly weighted average shares outstanding.
average shares outstanding.
(e) Relates to purchases and sales of equity securities. Prior to year end
1996 disclosure of average commission rate was not required.
(f) Total return measures the change in value of an investment over the
periods indicated. It is not annualized. It does not inclued the
maximum front end sales charge or contingent deferred sales charge.
Investment Advisor Board of Directors
Centurion Counsel, Inc. Carol Ann Freeland
11545 W. Bernardo Ct.,#100 Richard E. Hall
San Diego, CA 92127 Jack K. Heilbron
Russell W. Ketron
Doug Werner
Distributor
Centurion Institutional Services, Inc.
11545 W. Bernardo Ct. #100 Officers
San Diego, CA 92127 Jack K.Heilbron
Chief Executive Officer
Chief Investment Officer
Shareholder
Servicing Agent Kenneth W. Elsberry
Centurion Group, Inc. President and Chief
11545 W. Bernardo Ct. #100 Financial Officer
San Diego, CA 92127
Mary R. Limoges
Secretary
Auditors
Squire & Co. Portfolio Manager
1205 Prospect St., Ste 400 Jack K. Heilbron
La Jolla, CA 92037
Legal Counsel
Bruce J. Rushall, Esq.
Rushall & McGeever
211 Palomar Airport Road #200
Carlsbad, CA 92009
**A prospectus may 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.
