PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED JULY 31, 1995
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
July 31, 1995
(Unaudited)
ASSETS AND LIABILITIES
ASSETS
Investments at market value (Notes 1, 2, 4 & 5):
Investments other than securities:
Gold assets ..............................................................
Silver assets ............................................................
Swiss franc deposits .....................................................
Swiss franc bonds ...........................................................
Stocks of United States and foreign real estate and natural resource companies
Aggressive growth stock investments .........................................
Investment in an affiliate ..................................................
Corporate bonds .............................................................
United States Treasury securities ...........................................
Total investments (identified cost $68,401,221; $115,927,901; $21,790,159;
and $6,202,870, respectively)
Cash ..........................................................................
Accounts receivable for shares of the portfolio sold ..........................
Accounts receivable for investments sold ......................................
Accrued interest, dividends and foreign taxes receivable ......................
Due from investment adviser ...................................................
Total assets
LIABILITIES
Bank overdraft ................................................................
Accounts payable for shares of the portfolio redeemed .........................
Accounts payable for investments purchased ....................................
Accrued investment advisory fee ...............................................
Accrued directors' fees and expenses ..........................................
Accrued excise tax ............................................................
Total liabilities
Net assets applicable to outstanding shares
NET ASSETS
Capital stock - par value $.001 per share:
Authorized - 100,000,000; 100,000,000; 10,000,000; and 25,000,000 shares,
respectively
Outstanding - 4,097,152; 1,725,086; 390,073; and 220,364 shares,
respectively ..............................................................
Paid-in capital ...............................................................
Undistributed net investment income (Note 1) ..................................
Accumulated net realized gain (loss) on investments ...........................
Accumulated net realized gain on foreign currency transactions ................
Net unrealized appreciation of investments .....................................
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies ....................................................................
Net assets applicable to outstanding shares
Net asset value per share
See accompanying notes.
<PAGE>
<TABLE>
<CAPTION>
Permanent Portfolio Treasury Bill Portfolio Versatile Bond Portfolio Aggressive Growth Portfolio
------------------- ----------------------- ------------------------ ---------------------------
<C> <C> <C> <C>
$ 15,706,617 $ - $ - $ -
3,547,146 - - -
338,108 - - -
------------ ------------ ------------- ------------
19,591,871 - - -
6,843,025 - - -
11,415,014 - - -
11,662,618 - - 9,252,193
139,313 - - -
- - 21,497,494 -
24,432,786 115,978,440 401,624 244,929
------------ ------------ ------------- ------------
74,084,627 115,978,440 21,899,118 9,497,122
92,309 - - -
113,858 - 1,500 29,631
1,030,068 - - -
512,434 2,027,363 447,629 3,639
- - 611 3,443
------------ ------------ ------------- ------------
75,833,296 118,005,803 22,348,858 9,533,835
- 104,973 36,276 1,562
33,270 317,510 13,237 -
1,855 - - 240,990
16,963 11,181 - -
390 - 330 -
14,409 23,944 4,407 1,471
------------ ------------ ------------- ------------
66,887 457,608 54,250 244,023
------------ ------------ ------------- ------------
$ 75,766,409 $117,548,195 $ 22,294,608 $ 9,289,812
============ ============ ============= ============
$ 4,097 $ 1,725 $ 390 $ 220
60,219,139 112,534,321 20,244,991 5,479,218
------------ ------------ ------------- ------------
60,223,236 112,536,046 20,245,381 5,479,438
7,125,259 4,974,377 2,082,836 37,332
1,894,520 (12,767) (142,568) 478,790
810,092 - - -
5,683,406 50,539 108,959 3,294,252
29,896 - - -
------------ ------------ ------------- ------------
$ 75,766,409 $117,548,195 $ 22,294,608 $ 9,289,812
============ ============ ============= ============
$18.49 $68.14 $57.15 $42.16
====== ====== ====== ======
</TABLE>
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
STATEMENTS OF OPERATIONS
Six months ended July 31, 1995
(Unaudited)
Investment income:
Interest ....................................................................
Dividends ...................................................................
Expenses (Notes 3 & 8):
Investment advisory fee .....................................................
Directors' fees and expenses ................................................
Excise tax ..................................................................
Regulatory expense ..........................................................
Total expenses
Less waiver of investment advisory fee expense ............................
Net expenses
Net investment income before foreign taxes deducted at source
Less foreign income taxes deducted at source, net of refundable taxes .........
Net investment income
Realized and unrealized gain (loss) on investments and foreign currency (Notes
1, 2, 4 & 5):
Net realized gain (loss) on:
Investments .................................................................
Foreign currency transactions ...............................................
Change in unrealized appreciation of:
Investments .................................................................
Translation of assets and liabilities in foreign currencies .................
Net realized and unrealized gain (loss) on investments
and foreign currency
Net increase in net assets resulting
from operations
See accompanying notes.
<PAGE>
<TABLE>
<CAPTION>
Permanent Portfolio Treasury Bill Portfolio Versatile Bond Portfolio Aggressive Growth Portfolio
------------------- ---------------------- ------------------------ ---------------------------
<C> <C> <C> <C>
$ 1,287,810 $ 3,458,190 $ 656,684 $ 9,136
338,365 - - 37,472
------------ ------------ ------------- ------------
1,626,175 3,458,190 656,684 46,608
410,117 670,515 124,054 43,645
5,484 8,851 1,639 598
14,409 23,944 4,407 1,471
13,946 12,116 898 423
------------ ------------ ------------- ------------
443,956 715,426 130,998 46,137
- 299,021 41,520 -
------------ ------------ ------------- ------------
443,956 416,405 89,478 46,137
------------ ------------ ------------- ------------
1,182,219 3,041,785 567,206 471
8,015 - - -
------------ ------------ ------------- ------------
1,174,204 3,041,785 567,206 471
------------ ------------ ------------- ------------
1,309,082 56 (8,084) 93,691
384,941 - - -
------------ ------------ ------------- ------------
1,694,023 56 (8,084) 93,691
5,454,448 59,659 332,778 2,188,433
2,103 - - -
------------ ------------ ------------- ------------
7,150,574 59,715 324,694 2,282,124
------------ ------------ ------------- ------------
$ 8,324,778 $ 3,101,500 $ 891,900 $ 2,282,595
============ ============ ============= ============
</TABLE>
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Permanent Portfolio
-----------------------------------
Six months ended Year ended
July 31, 1995 January 31, 1995
(Unaudited)
---------------- ----------------
<S> <C> <C>
Operations:
Net investment income (loss) .............................................. $ 1,174,204 $ 1,990,773
Net realized gain (loss) on investments ................................... 1,309,082 (209,558)
Net realized gain on foreign currency transactions ........................ 384,941 425,151
Change in unrealized appreciation (depreciation) of investments ........... 5,454,448 (5,998,661)
Change in unrealized appreciation on translation of
assets and liabilities in foreign currencies ........................... 2,103 27,793
------------ ------------
Net increase (decrease) in net assets resulting from operations 8,324,778 (3,764,502)
Equalization on shares issued and redeemed: ................................. (404,459) 46,544
Distribution to shareholders from:
Net investment income ..................................................... - (949,685)
Net realized gain on investments .......................................... - -
Capital stock transactions exclusive of amounts allocated to undistributed
net investment income (Note 6): ........................................... (3,763,555) (2,765,425)
------------ ------------
Net increase (decrease) in net assets 4,156,764 (7,433,068)
Net assets at beginning of period 71,609,645 79,042,713
------------ ------------
Net assets at end of period (including undistributed net investment income
of $7,125,259 and $6,530,118; $4,974,377 and $4,095,285; $2,082,836 and
$2,043,196; $37,332 and $36,965, respectively) $ 75,766,409 $ 71,609,645
============ ============
</TABLE>
See accompanying notes.
<PAGE>
<TABLE>
<CAPTION>
Treasury Bill Portfolio Versatile Bond Portfolio Aggressive Growth Portfolio
------------------------------------ ----------------------------------- --------------------------------------
Six months ended Year ended Six months ended Year ended Six months ended Year ended
July 31, 1995 January 31, 1995 July 31, 1995 January 31, 1995 July 31, 1995 January 31, 1995
(Unaudited) (Unaudited) (Unaudited)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
<C> <C> <C> <C> <C> <C>
$ 3,041,785 $ 4,472,190 $ 567,206 $ 1,093,206 $ 471 $ (2,937)
56 (12,823) (8,084) (134,484) 93,691 413,502
- - - - - -
59,659 20,468 332,778 (286,684) 2,188,433 (665,360)
- - - - - -
------------ ------------- ------------ ------------ ----------- -----------
3,101,500 4,479,835 891,900 672,038 2,282,595 (254,795)
(467,656) (3,116,665) (101,659) (1,606,019) 729 (384)
- (1,179,051) - (578,352) - (6,071)
- - - (4,906) - (4,047)
(6,751,583) (12,488,118) (725,014) (11,935,372) 248,946 (178,351)
------------ ------------- ------------ ------------ ----------- -----------
(4,117,739) (12,303,999) 65,227 (13,452,611) 2,532,270 (443,648)
121,665,934 133,969,933 22,229,381 35,681,992 6,757,542 7,201,190
------------ ------------- ------------ ------------ ----------- -----------
$117,548,195 $ 121,665,934 $ 22,294,608 $ 22,229,381 $ 9,289,812 $ 6,757,542
============ ============= ============ ============ =========== ===========
</TABLE>
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Quantity Market Value
----------------- ------------
<C> <S> <C>
GOLD ASSETS - 20.73% of Total Net Assets
15,586 Troy Oz. Gold bullion (a) ......................................................... $ 5,958,614
24,757 Coins One-ounce gold coins (a) .................................................. 9,731,977
1,045 Units United States Gold Trust (a)(c) ........................................... 16,026
------------
Total Gold Assets (Cost $16,483,261) $ 15,706,617
------------
SILVER ASSETS - 4.68% of Total Net Assets
446,824 Troy Oz. Silver bullion (a) ........................................................ $ 2,247,970
379 Bags Silver coins (a) .......................................................... 1,299,176
------------
Total Silver Assets (Cost $4,643,504) $ 3,547,146
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Amount SWISS FRANC ASSETS - 9.48% of Total Net Assets
----------------
<C> <S> <C>
SF 388,993 Swiss francs in interest-bearing bank accounts ............................ $ 338,108
------------
SF 3,700,000 5.250% Swiss Confederation bonds, 02-11-98 ................................ 3,334,985
SF 4,000,000 4.000% Swiss Confederation bonds, 03-10-99 ................................ 3,508,040
------------
Total Swiss Confederation bonds 6,843,025
------------
Total Swiss Franc Assets (Cost $5,677,673) $ 7,181,133
------------
</TABLE>
<TABLE>
<CAPTION>
Number STOCKS OF UNITED STATES AND FOREIGN REAL ESTATE AND NATURAL
Of Shares RESOURCE COMPANIES - 15.07% of Total Net Assets
---------
<C> <S> <C>
NATURAL RESOURCES - 5.49% of Total Net Assets
14,300 Broken Hill Proprietary, Ltd. ............................................. $ 820,463
12,000 Burlington Resources ...................................................... 466,500
17,200 Cypress Amax Minerals Company ............................................ 479,450
58,000 Forest Oil Corporation (a) ................................................ 145,000
12,000 Inco, Ltd. ................................................................ 406,500
40,000 Pogo Producing Company .................................................... 885,000
25,600 Santa Fe Energy Resources, Inc. (a) ...................................... 240,000
60,000 Westmoreland Coal Company (a) ............................................. 247,500
10,000 Weyerhaeuser Company ..................................................... 467,500
-----------
$ 4,157,913
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Number
Of Shares Market Value
--------- ------------
<C> <S> <C>
REAL ESTATE - 9.58% of Total Net Assets
14,500 BRE Properties, Inc. Class A .............................................. $ 456,750
13,000 Burnham Pacific Properties, Inc. .......................................... 185,250
19,000 Federal Realty Investment Trust ........................................... 413,250
49,000 First Union Real Estate Investments ....................................... 367,500
29,700 HRE Properties ............................................................ 404,663
47,000 IRT Property Company ...................................................... 475,875
34,200 MGI Properties ............................................................ 500,175
21,000 New Plan Realty Trust ..................................................... 456,750
20,100 Pennsylvania Real Estate Investment Trust ................................. 417,075
27,600 Real Estate Investment Trust of California ................................ 451,950
55,000 Security Capital Pacific Trust ............................................ 996,875
24,900 Texas Pacific Land Trust .................................................. 656,738
47,200 United Dominion Realty Trust, Inc. ........................................ 672,600
25,500 Washington Real Estate Investment Trust ................................... 363,375
37,300 Western Investment Real Estate Trust ...................................... 438,275
-----------
$ 7,257,101
-----------
Total Stocks of United States and Foreign Real Estate and Natural
Resource Companies (Cost $8,741,559) $11,415,014
-----------
AGGRESSIVE GROWTH STOCK INVESTMENTS, INCLUDING AN INVESTMENT
IN AN AFFILIATE - 15.57% of Total Net Assets
AGGRESSIVE GROWTH STOCK INVESTMENTS - 15.39% of Total Net Assets
COMPUTER SOFTWARE - 1.63% of Total Net Assets
5,600 Autodesk, Inc. ........................................................... $ 253,400
1 Symantec Corporation warrant (a)(e) ...................................... 984,290
-----------
$ 1,237,690
CONSTRUCTION - .21% of Total Net Assets
16,900 Manville Corporation warrants (a) ........................................ $ 78,163
5,600 The Ryland Group, Inc. .................................................... 84,000
-----------
$ 162,163
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Number
Of Shares Market Value
--------- ------------
<C> <S> <C>
DATA PROCESS1NG - .71% of Total Net Assets
3,900 Hewlett-Packard Company ................................................... $ 303,713
5,300 Seagate Technology, Inc. (a) ............................................. 235,188
----------
$ 538,901
ELECTRICAL AND ELECTRONICS - 3.55% of Total Net Assets
30,600 DSC Communications Corporation (a) ....................................... $1,644,750
10,000 Intel Corporation ........................................................ 650,000
14,500 National Semiconductor Corporation (a) .................................... 391,500
----------
$2,686,250
ENTERTAINMENT AND LEISURE - 2.38% of Total Net Assets
2,500 The Walt Disney Company .................................................. $ 146,563
4,500 Harcourt General, Inc. ................................................... 202,500
24,000 Harrah's Entertainment, Inc. (a) ......................................... 645,000
12,000 Promus Hotel Corporation (a) .............................................. 295,500
12,600 Sizzler International, Inc. .............................................. 77,175
2,100 Tribune Company .......................................................... 134,138
5,900 Viacom, Inc. Class A (a) .................................................. 300,163
----------
$1,801,039
FINANCIAL SERVICES - .81% of Total Net Assets
3,000 Bank of New York, Inc. warrants (a) ..................................... $ 67,125
6,215 Bank of Petaluma (a) ...................................................... 72,249
3,198 The Bear Stearns Companies, Inc. ......................................... 70,756
8,737 The Charles Schwab Corporation ........................................... 402,994
----------
$ 613,124
MANUFACTURING - 2.59% of Total Net Assets
23,000 Collins Industries, Inc. warrants (a) .................................... $ 719
1,100 Dana Corporation ......................................................... 32,450
20,000 Harley-Davidson, Inc. ..................................................... 557,500
5,100 Harnischfeger Industries, Inc. ............................................ 191,250
3,500 Illinois Tool Works, Inc. ................................................ 206,500
8,495 Mattel, Inc. ............................................................. 239,984
2,000 Nacco Industries, Inc. Class A ........................................... 122,500
8,000 Nacco Industries, Inc. Class B ........................................... 490,000
3,000 Parker Hannifin Corporation .............................................. 122,250
----------
$1,963,153
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Number
Of Shares Market Value
--------- ------------
<C> <S> <C>
OIL AND OILFIELD SERVICES - .15% of Total Net Assets
8,300 Parker Drilling Company (a) ............................................... $ 45,650
18,200 Wainoco Oil Corporation (a) ............................................... 65,975
-----------
$ 111,625
PHARMACEUTICALS - .90% of Total Net Assets
10,000 Abbott Laboratories ....................................................... $ 400,000
1,200 Biogen, Inc. (a) .......................................................... 55,200
1,441 Chiron Corporation (a) .................................................... 113,839
7,000 Genzyme Corporation warrants (a) .......................................... 116,375
-----------
$ 685,414
TRANSPORTATION - .77% of Total Net Assets
7,300 Atlantic Southeast Airlines, Inc. ......................................... $ 338,250
4,600 Kansas City Southern Industries, Inc. ..................................... 170,775
3,700 M.S. Carriers, Inc. (a) ................................................... 75,850
-----------
$ 584,875
MISCELLANEOUS - 1.69% of Total Net Assets
6,200 Air Products and Chemicals, Inc. .......................................... $ 347,200
8,000 Bethlehem Steel Corporation (a) ........................................... 126,000
2,800 Browning-Ferris Industries, Inc. ........................................... 108,150
7,490 Lockheed Martin Corporation ............................................... 470,934
2,800 Temple-Inland, Inc. ....................................................... 144,900
2,900 Toys "R" Us, Inc. (a) ..................................................... 81,200
-----------
$ 1,278,384
-----------
$11,662,618
-----------
INVESTMENT IN AN AFFILIATE - .18% of Total Net Assets
100 World Money Securities, Inc. (a)(b)(e) .................................... $ 139,313
-----------
$ 139,313
-----------
Total Aggressive Growth Stock Investments (Cost$5,163,746),
including an Investment in an Affiliate $11,801,931
-----------
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Principal Amount Market Value
---------------- ------------
<C> <S> <C>
UNITED STATES TREASURY SECURITIES - 32.25% of Total Net Assets
$41,000,000 United States Stripped Principal Only Treasury bonds 7.200%, 05-15-18 (f).. $ 8,168,020
800,000 United States Treasury bonds 6.250%, 08-15-23 ............................ 735,640
1,400,000 United States Treasury notes 9.500%, 11-15-95 ............................. 1,415,218
2,000,000 United States Treasury notes 4.250%, 12-31-95 ............................. 1,989,100
1,000,000 United States Treasury notes 5.125%, 03-31-96 ............................. 996,250
2,000,000 United States Treasury notes 6.750%, 02-28-97 ............................. 2,027,620
1,000,000 United States Treasury notes 6.125%, 05-31-97 ............................ 1,004,060
3,000,000 United States Treasury notes 7.750%, 01-31-00 ............................ 3,181,170
2,455,000 United States Treasury bills 3.480%, 08-03-95 (f) ........................ 2,454,288
2,600,000 United States Treasury bills 5.330%, 07-25-96 (f) ........................ 2,461,420
------------
Total United States Treasury Securities (Cost $27,691,478) $ 24,432,786
------------
Total Portfolio - 97.78% of total net assets (identified cost $68,401,221) (d) $ 74,084,627
Other assets, less liabilities (2.22% of total net assets) 1,681,782
------------
Net assets applicable to outstanding shares $ 75,766,409
============
<FN>
Note:(a) Non-income producing.
(b) Restricted security.
(c) Affiliated investment trust.
(d) Aggregate cost for Federal income tax purposes was $62,812,178.
(e) Market value determined by the Board of Directors.
(f) Interest rate represents yield to maturity.
</FN>
</TABLE>
See accompanying notes.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE TREASURY BILL PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Principal Amount Market Value
---------------- ------------
<C> <S> <C>
UNITED STATES TREASURY SECURITIES - 98.66% of Total Net Assets
$23,000,000 United States Treasury notes 4.625%, 08-15-95 ............................. $ 22,997,010
23,000,000 United States Treasury notes 3.875%, 08-31-95 ............................. 22,972,170
22,000,000 United States Treasury notes 3.875%, 09-30-95 ............................. 21,942,360
26,000,000 United States Treasury notes 8.625%, 10-15-95 ............................. 26,156,000
22,000,000 United States Treasury notes 3.875%, 10-31-95 ............................. 21,910,900
-------------
Total Portfolio - 98.66% of total net assets (identified cost $115,927,901) (a) $ 115,978,440
Other assets, less liabilities (1.34% of total net assets) 1,569,755
-------------
Net assets applicable to outstanding shares $ 117,548,195
=============
<FN>
Note:(a) Aggregate cost for Federal income tax purposes.
</FN>
</TABLE>
See accompanying notes.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE VERSATILE BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Principal Amount Market Value
---------------- ------------
<C> <S> <C>
CORPORATE BONDS - 96.43% of Total Net Assets
AEROSPACE - 4.55% of Total Net Assets
$1,000,000 8.375% Boeing Company, 03-01-96 .......................................... $ 1,013,640
------------
$ 1,013,640
BEVERAGES - 10.35% of Total Net Assets
1,275,000 7.750% Coca-Cola Company, 02-15-96 ....................................... $ 1,287,419
1,000,000 7.875% PepsiCo, Inc., 08-15-96 ............................................ 1,019,130
------------
$ 2,306,549
CHEMICALS - 4.61% of Total Net Assets
1,000,000 8.450% DuPont EI DeNemours & Company, 10-15-96 ........................... $ 1,026,900
------------
$ 1,026,900
CONGLOMERATES - 4.47% of Total Net Assets
1,000,000 5.250% ITT Corporation, 02-15-96 ......................................... $ 996,820
------------
$ 996,820
ENVIRONMENTAL - 4.50% of Total Net Assets
1,000,000 6.375% WMX Technologies, Inc., 07-01-97 ................................... $ 1,002,640
------------
$ 1,002,640
FINANCIAL SERVICES - 18.20% of Total Net Assets
1,000,000 7.375% American General Finance Corporation, 11-15-96 .................... $ 1,016,260
1,000,000 6.875% Associates Corporation of North America, 01-15-97 ................. 1,009,620
1,000,000 7.125% CIT Group Holdings, Inc., 11-15-96 ................................ 1,011,990
1,000,000 7.900% International Lease Finance Company, 10-01-96 ..................... 1,019,210
------------
$ 4,057,080
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE VERSATILE BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Principal Amount Market Value
---------------- ------------
<C> <S> <C>
MEDICAL EQUIPMENT - 10.18% of Total Net Assets
$1,000,000 8.375% Becton, Dickinson & Company, 06-01-96 ............................. $ 1,018,940
1,250,000 8.500% Johnson & Johnson Company, 08-15-95 ............................... 1,251,300
------------
$ 2,270,240
OIL AND GAS - 4.49% of Total Net Assets
1,000,000 7.000% Shell Oil Company, 09-15-95 ........................................ $ 1,001,480
------------
$ 1,001,480
PHARMACEUTICALS - 9.05% of Total Net Assets
1,000,000 7.750% Merck & Company, 05-01-96 .......................................... $ 1,013,100
1,000,000 6.500% Pfizer, Inc., 02-01-97 ............................................ 1,005,620
------------
$ 2,018,720
TELECOMMUNICATIONS - 16.95% of Total Net Assets
1,500,000 4.500% AT&T Corporation, 02-15-96 ........................................ $ 1,489,020
1,000,000 7.500% Pacific Northwest Bell Telephone Company, 12-01-96 ................ 1,017,990
1,250,000 8.300% Southwestern Bell Telephone Company, 06-01-96 ..................... 1,272,725
------------
$ 3,779,735
TOBACCO - 4.60% of Total Net Assets
1,000,000 8.875% Philip Morris Companies, Inc., 07-01-96 ........................... $ 1,025,100
------------
$ 1,025,100
UTILITIES - 4.48% of Total Net Assets
1,000,000 6.125% Southern California Edison Company, 07-15-97 ...................... $ 998,590
------------
$ 998,590
------------
Total Corporate Bonds (Cost $21,386,689) $ 21,497,494
------------
UNITED STATES TREASURY SECURITIES - 1.80% of Total Net Assets
400,000 United States Treasury notes 6.125%, 05-31-97 ............................ $ 401,624
------------
Total United States Treasury Securities (Cost $403,470) $ 401,624
------------
Total Portfolio - 98.23% of total net assets (identified cost $21,790,159)(a) $ 21,899,118
Other assets, less liabilities (1.77% of total net assets) 395,490
------------
Net assets applicable to outstanding shares $ 22,294,608
============
<FN>
Note: (a) Aggregate cost for Federal income tax purposes.
</FN>
</TABLE>
See accompanying notes.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Number
Of Shares Market Value
--------- ------------
<C> <S> <C>
AGGRESSIVE GROWTH STOCK INVESTMENTS - 99.59% of Total Net Assets
CHEMICALS - 5.47% of Total Net Assets
6,000 Air Products and Chemicals, Inc. .......................................... $ 336,000
6,400 Wellman, Inc. ............................................................. 172,000
----------
$ 508,000
COMPUTER SOFTWARE - 5.18% of Total Net Assets
6,100 Autodesk, Inc. ............................................................ $ 276,025
2,800 Computer Associates International, Inc. ................................... 205,450
----------
$ 481,475
CONSTRUCTION - 5.03% of Total Net Assets
5,200 Fluor Corporation ......................................................... $ 293,800
20,000 Manville Corporation warrants (a) ........................................ 92,500
5,400 The Ryland Group, Inc. .................................................... 81,000
----------
$ 467,300
DATA PROCESSING - 9.50% of Total Net Assets
8,500 AST Research, Inc. (a) .................................................... $ 130,688
5,500 Hewlett-Packard Company ................................................... 428,313
7,300 Seagate Technology, Inc. (a) .............................................. 323,938
----------
$ 882,939
ELECTRICAL & ELECTRONICS - 10.25% of Total Net Assets
6,200 DSC Communications Corporation (a) ........................................ $ 333,250
5,700 Intel Corporation ......................................................... 370,500
9,200 National Semiconductor Corporation (a) .................................... 248,400
----------
$ 952,150
ENTERTAINMENT AND LEISURE - 10.49% of Total Net Assets
3,700 The Walt Disney Company ................................................... $ 216,913
5,100 Harcourt General, Inc. .................................................... 229,500
13,000 Sizzler International, Inc. ............................................... 79,625
3,200 Tribune Company .......................................................... 204,400
4,800 Viacom, Inc. Class A (a) .................................................. 244,200
----------
$ 974,638
FINANCIAL SERVICES - 13.91% of Total Net Assets
2,600 Bank of New York, Inc. warrants (a) ...................................... $ 58,170
14,679 The Bear Stearns Companies, Inc. .......................................... 324,773
2,800 Morgan Stanley Group, Inc. ................................................ 234,150
10,800 The Charles Schwab Corporation ............................................ 498,150
5,000 State Street Boston Corporation ........................................... 176,875
----------
$1,292,118
MANUFACTURING - 12.55% of Total Net Assets
8,400 Dana Corporation ......................................................... $ 247,800
6,900 Harnischfeger Industries, Inc. ............................................ 258,750
4,300 Illinois Tool Works, Inc. ................................................. 253,700
6,987 Mattel, Inc. .............................................................. 197,383
5,100 Parker Hannifin Corporation ............................................... 207,825
----------
$1,165,458
</TABLE>
Continued on following page.
<PAGE>
<TABLE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE AGGRESSIVE GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
July 31, 1995
(Unaudited)
<CAPTION>
Number
Of Shares Market Value
--------- ------------
<C> <S> <C>
PHARMACEUTICALS - 6.71% of Total Net Assets
2,800 Amgen, Inc. (a) .......................................................... $ 238,350
6,200 Biogen, Inc. (a) ......................................................... 285,200
6,000 Genzyme Corporation warrants (a) ......................................... 99,750
----------
$ 623,300
RETAIL - 3.12% of Total Net Assets
11,800 Price/Costco, Inc. (a) .................................................... $ 211,663
2,800 Toys "R" Us, Inc. (a) ..................................................... 78,400
----------
$ 290,063
TRANSPORTATION - 7.91% of Total Net Assets
4,900 Kansas City Southern Industries, Inc. ..................................... $ 181,913
7,100 M.S. Carriers, Inc. (a) ................................................... 145,550
37,500 Mesa Airlines, Inc. (a) .................................................. 407,813
----------
$ 735,276
MISCELLANEOUS - 9.47% of Total Net Assets
7,500 Bethlehem Steel Corporation (a) ........................................... $ 118,125
4,700 Browning-Ferris Industries, Inc. .......................................... 181,538
6,100 Lockheed Martin Corporation .............................................. 383,538
8,400 Parking Drilling Company (a) ............................................. 46,200
2,900 Temple-Inland, Inc. ....................................................... 150,075
----------
$ 879,476
----------
Total Aggressive Growth Stock Investments (Cost $5,957,941) $9,252,193
----------
</TABLE>
<TABLE>
<CAPTION>
Principal Amount
----------------
<C> <S> <C>
UNITED STATES TREASURY SECURITIES - 2.64% of Total Net Assets
$245,000 United States Treasury bills 3.480%, 08-03-95 (c) ......................... $ 244,929
----------
Total United States Treasury Securities (Cost $244,929) $ 244,929
----------
Total Portfolio - 102.23% of total net assets (identified cost $6,202,870)(b) $9,497,122
Liabilities, less other assets (2.23% of total net assets) (207,310)
----------
Net assets applicable to outstanding shares $9,289,812
==========
<FN>
Note:(a) Non-income producing.
(b) Aggregate cost for Federal income tax purposes.
(c) Interest rate represents yield to maturity.
</FN>
</TABLE>
See accompanying notes.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Permanent Portfolio Family of Funds, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 as a no-load, open-end, series
management investment company. The Fund commenced operations as the
Permanent Portfolio, the Treasury Bill Portfolio, the Versatile Bond
Portfolio and the Aggressive Growth Portfolio on January 8, 1982, May 26,
1987, September 27, 1991 and January 2, 1990, respectively. Investment
operations in the Permanent Portfolio, the Treasury Bill Portfolio, the
Versatile Bond Portfolio and the Aggressive Growth Portfolio commenced on
December 1, 1982, September 21, 1987, November 12, 1991 and May 16, 1990,
respectively.
Valuation of investments
Investments are valued at market. Securities for which market quotations
are readily available are valued at the latest sale price. Unlisted
securities or securities for which the most active market is
over-the-counter are valued at the mean between the closing bid and asked
prices. Swiss francs are valued at the closing spot price on the
International Monetary Market. Swiss Confederation bonds are valued at the
closing price in Zurich, Switzerland, converted into U.S. dollars at 4 p.m.
(Eastern Time). Investments in gold and silver are valued based on the
closing spot prices on the New York Commodity Exchange. Short-term
securities are valued at market daily. Investments for which there is no
active market are valued at fair value as determined by the Board of
Directors. At July 31, 1995, two investments in the Permanent Portfolio
(1.48% of total net assets) were so valued.
Investment transactions and investment income
Investment transactions are accounted for on the date of purchase, sale or
maturity. Interest income is accrued daily and includes amortization of any
premium and discount for financial and tax reporting purposes. Dividend
income is recorded on the ex-dividend date. Realized gains and losses from
securities transactions and unrealized appreciation or depreciation of
investments are recorded on an identified cost basis for financial and tax
reporting purposes.
For the six months ended July 31, 1995, investment income was earned as
follows:
<TABLE>
<CAPTION>
Permanent Treasury Bill Versatile Bond Aggressive Growth
Portfolio Portfolio Portfolio Portfolio
------------ ------------- -------------- -----------------
<S> <C> <C> <C> <C>
Interest on:
Corporate bonds $ 36,871 $ - $ 641,295 $ -
Swiss franc assets 201,387 - - -
United States Treasury securities 1,024,680 3,441,456 6,437 -
Other investments 24,872 16,734 8,952 9,136
Dividends 338,365 - - 37,472
------------ ------------ ------------ -----------
Total $ 1,626,175 $ 3,458,190 $ 656,684 $ 46,608
============ ============ ============ ===========
</TABLE>
Translation of foreign currencies
Amounts denominated in or expected to settle in foreign currencies are
translated into U.S. dollars on the following basis: (i) market value of
investment securities and other assets and liabilities are translated at
the closing rate of exchange at July 31, 1995; and (ii) purchases and sales
of investment securities, income and expenses are translated at the rate of
exchange prevailing on the respective dates of such transactions.
Continued on following page.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
During the year ended January 31, 1995, the Fund adopted Statement of
Position 93-4 "Foreign Currency Accounting and Financial Statement
Presentation for Investment Companies." Accordingly, beginning February 1,
1994, the Fund began separately reporting the portions of the results of
operations attributable to the effect of changes in foreign exchange rates
on the value of investments. Reported net realized foreign exchange gains
or losses arise from sales of foreign currencies; foreign currency gains or
losses realized between the trade and settlement dates on securities
transactions; and the difference between the amounts of dividends, interest
and foreign withholding taxes recorded on the Fund's books verses the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains arise from changes in the exchange rate applicable
to cash, receivables and liabilities denominated in foreign currencies at
July 31, 1995.
Federal income taxes
Each of the Fund's Portfolios intends to continue to be treated as a
separate regulated investment company under Subchapter M of the United
States Internal Revenue Code of 1986, as amended (the "Code"). No provision
has been made for United States income taxes, as each Portfolio intends to
declare necessary dividend distributions from investment company taxable
income to its shareholders prior to October 15, 1995, so as to maintain its
qualification as a regulated investment company for the year ended January
31,1995 pursuant to the requirements of the Code. Such distributions will
be approximately $1,600,000, $2,900,000, $679,000 and $25,000 for the
Permanent Portfolio, the Treasury Bill Portfolio, the Versatile Bond
Portfolio and the Aggressive Growth Portfolio, respectively.
At July 31, 1995, capital loss carryforwards available to offset future
realized gains, if any, aggregate approximately: $696,000 in the Permanent
Portfolio, of which $57,000, $40,000 and $599,000 expire on January 31,
1999, January 31, 2002 and January 31, 2003, respectively; $144,000 in the
Treasury Bill Portfolio, of which $4,000, $99,000 and $41,000 expire on
January 31, 2001, January 31, 2002 and January 31, 2003, respectively; and
$102,000 in the Versatile Bond Portfolio which expires on January 31, 2003.
There were no capital loss carryforwards in the Aggressive Growth
Portfolio. Additionally, net capital losses of approximately $4,000 and
$33,000 in the Treasury Bill Portfolio and the Versatile Bond Portfolio,
respectively, are attributable to investment transactions that occurred
after October 31, 1994 and are recognized for Federal income tax purposes
as arising on February 1, 1995, the first day of each of the Portfolio's
next taxable year.
Distributions
Distributions to shareholders from net investment income and realized gain
on investments, if any, are recorded on the ex-dividend date. The amount of
such distributions are determined in accordance with the Code which may
differ from generally accepted accounting principles. These differences
result primarily from different treatment of net investment income and
realized gains on certain investment securities held by the Fund's
Portfolios. During the six months ended July 31, 1995, the Fund
reclassified from undistributed net investment income to paid-in capital,
certain book and tax basis differences relating to shareholder
distributions, totaling $174,604, $1,695,037, $425,907 and $833 for the
Permanent Portfolio, the Treasury Bill Portfolio, the Versatile Bond
Portfolio and the Aggressive Growth Portfolio, respectively. At July 31,
1995, undistributed net investment income exceeds amounts distributable
under the Fund's distribution policy referred to above by approximately
$5,500,000, $2,000,000, $1,400,000 and $12,000 for the Permanent Portfolio,
the Treasury Bill Portfolio, the Versatile Bond Portfolio and the
Aggressive Growth Portfolio, respectively.
Continued on following page.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
Equalization
The Fund follows the accounting practice of equalization, by which a
portion of the proceeds from sales and a portion of the costs of
redemptions of shares of capital stock are allocated to undistributed net
investment income. The effect of this practice is to prevent the
calculation of net investment income per share from being affected by sales
or redemptions of shares in each Portfolio, and for periods of net
issuances of shares, allows undistributed net investment income to exceed
distributable investment company taxable income.
2. INVESTMENTS IN AFFILIATED ISSUERS
During fiscal year 1990, the Permanent Portfolio acquired from World Money
Managers, the Fund's investment adviser and distributor for that Portfolio,
a 100% interest in World Money Securities, Inc. ("WMS"), a registered
broker-dealer and distributor for the Fund's Treasury Bill Portfolio,
Versatile Bond Portfolio and Aggressive Growth Portfolio.
Additional investments may be made, provided that the cost of all
investments does not exceed 1% of the net assets of the Permanent Portfolio
at the date of the additional investment. At July 31, 1995, the cost basis
of the investment was $924,881 and the investment was valued at $139,313
(0.18% of total net assets) which approximates fair value as determined by
the Board of Directors. The Permanent Portfolio did not receive any
dividends or interest from WMS, an illiquid, restricted security, during
the six months ended July 31, 1995. At present asset levels, no additional
investments by the Permanent Portfolio are permitted in WMS.
The Permanent Portfolio held 1,045 units of United States Gold Trust, an
affiliated investment trust, resulting in net unrealized depreciation of
$174 at July 31, 1995. The Permanent Portfolio received no income from this
investment during the six months ended July 31, 1995. Commissions paid to
WMS relating to purchases and sales of these units aggregated $4,707 during
the six months ended July 31, 1995.
3. INVESTMENT ADVISORY CONTRACT
In accordance with the terms of an Investment Advisory Contract (the
"Contract"), World Money Managers receives monthly, a comprehensive
advisory fee computed at the following annual rate: (i) for each Portfolio,
1/4 of 1% of the first $200 million of the Portfolio's average daily net
assets; plus (ii) for the Fund as a whole: 7/8 of 1% of the first $200
million of the Fund's average daily net assets; 13/16 of 1% of the next
$200 million of the Fund's average daily net assets; 3/4 of 1% of the next
$200 million of the Fund's average daily net assets; and 11/16 of 1% of the
Fund's average daily net assets in excess of $600 million, such fee for the
Fund as a whole to be allocated among the Portfolios in proportion to their
net assets. Effective January 1, 1995, the investment adviser has
voluntarily agreed to continue to waive for at least the current calendar
year ending December 31, 1995, portions of the advisory fee allocable to
the Treasury Bill Portfolio and to the Versatile Bond Portfolio to the
extent that either Portfolio's total advisory fee otherwise would exceed an
annual rate of 5/8 of 1%, in the case of the Treasury Bill Portfolio, or
3/4 of 1%, in the case of the Versatile Bond Portfolio, of the respective
Portfolio's average daily net assets. Thereafter, the investment adviser
reserves the right to revoke, reduce or change the waiver prospectively
upon five days' written notice to the Fund.
Continued on following page.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
All fees and expenses directly attributable to a Portfolio are borne
entirely by that Portfolio; all other such fees and expenses are allocated
among the Fund's Portfolios in proportion to their net assets. Except for
the comprehensive advisory fee, the fees and expenses of the Fund's
independent directors, excise taxes and extraordinary expenses as defined
by the Contract, World Money Managers pays or reimburses the Fund for
substantially all of the Fund's ordinary operating expenses out of its
comprehensive advisory fee.
World Money Managers is a limited partnership of which one of the general
partners is the President and a director of the Fund and the other general
partner is a corporation wholly owned by the same individual.
4. PURCHASES AND SALES OF SECURITIES
The following is a summary of purchases and sales of securities other than
short-term securities for the six months ended July 31, 1995:
<TABLE>
<CAPTION>
Permanent Treasury Bill Versatile Bond Aggressive Growth
Portfolio Portfolio Portfolio Portfolio
----------- ------------- -------------- -----------------
<S> <C> <C> <C> <C>
Purchases................................ $ 2,280,193 None $ 4,890,924 $ 1,649,221
Sales.................................... 6,004,219 None 6,057,017 1,405,650
</TABLE>
5. NET UNREALIZED APPRECIATION OF INVESTMENTS
<TABLE>
The following is a summary of net unrealized appreciation of
investments at July 31, 1995 for federal income tax purposes:
<CAPTION>
Permanent Treasury Bill Versatile Bond Aggressive Growth
Portfolio Portfolio Portfolio Portfolio
------------- ------------- -------------- -----------------
<S> <C> <C> <C> <C>
Aggregate gross unrealized appreciation of
investments with excess of value over tax cost:
Investments in securities of
unaffiliated issuers .................... $ 14,928,974 $ 54,002 $ 140,651 $ 3,302,852
Investments other than securities........ 208,184 - - -
------------- --------- ---------- -----------
15,137,158 54,002 140,651 3,302,852
Aggregate gross unrealized depreciation of
investments with excess of tax cost over value:
Investments in securities of unaffiliated
issuers ................................. (1,024,459) (3,463) (31,692) (8,600)
Investments other than securities........ (2,054,682) - - -
Investment in an affiliated issuer....... (785,568) - - -
------------- --------- ---------- -----------
(3,864,709) (3,463) (31,692) (8,600)
------------- --------- ---------- -----------
Net unrealized appreciation
on investments $ 11,272,449 $ 50,539 $ 108,959 $ 3,294,252
============= ========= ========== ===========
</TABLE>
Continued on following page.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
6. CAPITAL STOCK TRANSACTIONS
<TABLE>
Transactions in shares of each Portfolio's capital stock exclusive of
amounts allocated to undistributed net investment income were as follows
for the the period and year ended:
<CAPTION>
Permanent Portfolio
---------------------------------------------------------------------------------
Six months ended July 31, 1995 Year ended January 31, 1995
---------------------------------------- -------------------------------------
Shares Dollars Shares Dollars
---------------- -------------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Shares sold...................... 134,962 $ 2,161,008 516,273 $ 7,024,021
Distributions reinvested......... - - 54,412 880,926
--------- ------------ ---------- ------------
134,962 2,161,008 570,685 7,904,947
Shares redeemed.................. (375,477) (5,924,563) (737,073) (10,670,372)
--------- ----------- ---------- ------------
Net decrease (240,515) $ (3,763,555) (166,388) $ (2,765,425)
========= ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
Treasury Bill Portfolio
---------------------------------------------------------------------------------
Six months ended July 31, 1995 Year ended January 31, 1995
---------------------------------------- -------------------------------------
Shares Dollars Shares Dollars
---------------- -------------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Shares sold...................... 264,439 $ 16,576,301 3,439,873 $186,355,664
Distributions reinvested......... - - 16,692 1,102,014
--------- ------------ ---------- ------------
264,439 16,576,301 3,456,565 187,457,678
Shares redeemed.................. (371,736) (23,327,884) (3,691,450) (199,945,796)
--------- ------------ ---------- ------------
Net decrease (107,297) $ (6,751,583) (234,885) $(12,488,118)
========= ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
Versatile Bond Portfolio
---------------------------------------------------------------------------------
Six months ended July 31, 1995 Year ended January 31, 1995
---------------------------------------- --------------------------------------
Shares Dollars Shares Dollars
---------------- -------------------- ------------------- -----------------
<S> <C> <C> <C> <C>
Shares sold...................... 48,351 $ 2,368,728 221,755 $ 10,683,200
Distributions reinvested......... - - 10,191 554,197
--------- ------------ ---------- ------------
48,351 2,368,728 231,946 11,237,397
Shares redeemed.................. (63,210) (3,093,742) (478,583) (23,172,769)
--------- ------------ ---------- ------------
Net decrease (14,859) $ (725,014) (246,637) $(11,935,372)
========= ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
Aggressive Growth Portfolio
---------------------------------------------------------------------------------
Six months ended July 31, 1995 Year ended January 31, 1995
---------------------------------------- -------------------------------------
Shares Dollars Shares Dollars
---------------- -------------------- ------------------- ----------------
<S> <C> <C> <C> <C>
Shares sold...................... 53,638 $ 1,940,503 78,367 $ 2,441,932
Distributions reinvested......... - - 330 9,796
--------- ------------ ---------- ------------
53,638 1,940,503 78,697 2,451,728
Shares redeemed.................. (47,064) (1,691,557) (86,044) (2,630,079)
--------- ------------ ---------- ------------
Net increase (decrease) 6,574 $ 248,946 (7,347) $ (178,351)
========= ============ ========== ============
</TABLE>
Continued on following page.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
(Unaudited)
7. LINE OF CREDIT
On March 3, 1990, the Fund entered into a line of credit agreement with a
foreign bank whereby the Permanent Portfolio may borrow up to $2,000,000
for a period not to exceed twenty-one days, for the purpose of making
settlement for purchases of investments in the event that banks in the
United States are not able to operate according to their normal procedures.
Interest is charged at a base rate of 1.0% per annum above the offered rate
for deposits of United States Dollars on the London Interbank Market
(LIBOR) for terms substantially similar to any drawdown. The Permanent
Portfolio is obligated to pay a commitment fee of 1/2% ($10,000), payable
annually, on the entire commitment amount.
The line is collateralized by United States Treasury bills having a face
value of not less than 125% of the outstanding principal balance and a
maturity date of not more than one year. The agreement contains certain
covenants, including among other things, the Permanent Portfolio
maintaining a specified net asset value of at least $60 million. During the
six months ended July 31, 1995, there were no amounts outstanding under
this agreement.
8. REGULATORY MATTERS
By letter dated February 9, 1994, the Staff of the San Francisco District
Office of the Securities and Exchange Commission advised the Fund and
certain of its officers and affiliates of alleged violations of certain
provisions of federal securities laws, including those relating to the
Fund's advertising materials, transactions among the Fund's Portfolios, the
Fund's distribution expense practices and the composition of the Fund's
Board of Directors. The Staff has decided to recommend to the Commission
that it authorize the filing of a civil action and the institution of
public administrative proceedings seeking sanctions against certain of the
Fund's officers and affiliates. Management of the Fund believes that there
have been no such violations. Pursuant to Maryland law and the Fund's
bylaws, the Fund has agreed to pay directly on behalf of certain officers,
directors and affiliates, or to reimburse them, for certain expenses
incurred by them in connection with the matter. The Fund's Permanent
Portfolio, Treasury Bill Portfolio, Versatile Bond Portfolio and Aggressive
Growth Portfolio so paid or reimbursed expenses of $13,946, $12,116, $898
and $423 respectively, during the six months ended July 31, 1995.
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE PERMANENT PORTFOLIO
<TABLE>
Financial highlights for the Permanent Portfolio
For each share of capital stock outstanding throughout each fiscal period:
<CAPTION>
Six months ended Year ended Year ended Year ended
July 31, 1995 January 31, 1995 January 31, 1994 January 31, 1993
(Unaudited)
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.51 $ 17.55 $ 15.36 $ 15.21
--------- --------- -------- --------
Income from investment operations:
Net investment income ................ .27 .64 .44 .49
Net realized and unrealized gains
or losses on investments ........... 1.71 (1.46) 1.99 (.05)
--------- --------- -------- --------
Total income or loss from
investment operations 1.98 (.82) 2.43 .44
Less distributions from:
Net investment income ................ - (.22) (.24) (.29)
Net realized gain on investments ..... - - - -
--------- --------- -------- --------
Total distributions - (.22) (.24) (.29)
--------- --------- -------- --------
Net asset value, end of period $ 18.49 $ 16.51 $ 17.55 $ 15.36
========= ========= ======== ========
Total return (1) ......................... 24.18%* (4.65)% 15.86% 2.93%
Ratios / supplemental data:
Net assets, end of period (in thousands) $ 75,766 $ 71,610 $ 79,043 $ 65,937
========= ========= ======== ========
Ratio of expenses to average net assets.. 1.24%* 1.32% 1.21% 1.25%
Ratio of net investment income
to average net assets ................ 3.21%* 2.63% 2.66% 3.20%
Portfolio turnover rate ................. 9.46%* 31.24% 49.51% 70.77%
<FN>
* Computed on an annualized basis.
(l) Assumes reinvestment of all dividends and distributions, and deduction of
all fees and expenses except the $35 one-time account start-up fee and the
$1.50 monthly account maintenance fee.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year ended Year ended Year ended Year ended Year ended Year ended Year ended
January 31, 1992 January 31, 1991 January 31, 1990 January 31, 1989 January 31, 1988 January 31, 1987 January 31, 1986
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
<C> <C> <C> <C> <C> <C> <C>
$ 15.10 $ 15.57 $ 15.00 $ 14.71 $ 13.66 $ 11.88 $ 10.82
--------- --------- --------- ---------- ---------- ---------- ---------
.51 .64 .57 .46 .37 .33 .33
.51 (.63) - (.15) .80 1.45 .73
--------- --------- --------- ---------- ---------- ---------- ---------
1.02 .01 .57 .31 1.17 1.78 1.06
(.91) (.48) - - - - -
- - - (.02) (.12) - -
--------- --------- --------- ---------- ---------- ---------- ---------
(.91) (.48) - (.02) (.12) - -
--------- --------- --------- ---------- ---------- ---------- ---------
$ 15.21 $ 15.10 $ 15.57 $ 15.00 $ 14.71 $ 13.66 $ 11.88
========= ========= ========= ========== ========== ========== =========
7.01% .15% 3.80% 2.11% 8.58% 14.98% 9.80%
$ 72,312 $ 80,542 $ 93,663 $ 97,475 $ 90,177 $ 72,523 $ 72,941
========= ========= ========= ========== ========== ========== =========
1.27% 1.36% 1.17% 1.17% 1.15% 1.17% .90%
3.29% 4.22% 3.80% 3.00% 2.53% 2.51% 3.00%
8.01% 31.58% 61.44% 23.87% 21.97% 30.89% 17.10%
</TABLE>
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE TREASURY BILL PORTFOLIO
<TABLE>
Financial highlights for the Treasury Bill Portfolio
For each share of capital stock outstanding throughout each fiscal period:
<CAPTION>
Six months ended Year ended Year ended
July 31, 1995 January 31, 1995 January 31, 1994
(Unaudited)
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 66.40 $ 64.81 $ 64.45
---------- ---------- ----------
Income from investment operations:
Net investment income (2) ............................... 1.64 2.65 1.53
Net realized and unrealized gains or losses on investments (3) .10 (.39) (.09)
---------- ---------- ----------
Total income from investment operations 1.74 2.26 1.44
Less distributions from:
Net investment income ................................... - (.67) (1.08)
---------- ---------- ----------
Total distributions - (.67) (1.08)
---------- ---------- ----------
Net asset value, end of period $ 68.14 $ 66.40 $ 64.81
========== ========== ==========
Total return (4) ............................................. 5.28%* 3.49% 2.24%
Ratios / supplemental data:
Net assets, end of period (in thousands) .................. $ 117,548 $ 121,666 $ 133,970
========== ========== ==========
Ratio of expenses to average net assets (2) ............... .70%* .82% .72%
Ratio of net investment income to average net assets ...... 5.12%* 3.57% 2.46%
Portfolio turnover rate ................................... None None None
<FN>
* Computed on an annualized basis.
(l) The Treasury Bill Portfolio commenced investment operations September 21,
1987.
(2) Due to the waiver of advisory fees and, effective January 1, 1991 through
January 31, 1994, distribution expenses, the ratio of expenses to average
net assets was reduced by .50% for the six months ended July 31, 1995 and
.50%, .49%, .47%, .48%, .47%, .62%, .62% and .65% for the years ended
January 31, 1995, 1994, 1993, 1992, 1991, 1990 and 1989 and the period
ended January 31, 1988, respectively. Without this waiver, the net
investment income per share would have been $1.43 for the six months ended
July 31, 1995 and $2.12, $1.04, $1.28, $2.85, $3.85, $3.96, $3.00 and $1.33
for the years and the period then ended.
(3) Per share net realized and unrealized gains or losses on investments may
not correspond with the change in aggregate unrealized gains and losses in
the Portfolio's securities because of the timing of sales and repurchases
of the Portfolio's shares in relation to fluctuating market values for the
Portfolio.
(4) Assumes reinvestment of all dividends and distributions, and deduction of
all fees and expenses except the $35 one-time account start-up fee and the
$1.50 monthly account maintenance fee.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year ended Year ended Year ended Year ended Year ended Period ended
January 31, 1993 January 31, 1992 January 31, 1991 January 31, 1990 January 31, 1989 January 31, 1988(1)
---------------- ---------------- ---------------- ---------------- ---------------- -------------------
<C> <C> <C> <C> <C> <C>
$ 64.99 $ 63.11 $ 59.35 $ 54.91 $ 51.54 $ 50.00
---------- ---------- ---------- --------- ---------- ----------
1.68 3.26 4.20 4.36 3.38 1.55
.19 (.08) (.01) .08 .02 (.01)
---------- ---------- ---------- --------- ---------- ----------
1.87 3.18 4.19 4.44 3.40 1.54
(2.41) (1.30) (.43) - (.03) -
---------- ---------- ---------- --------- ---------- ----------
(2.41) (1.30) (.43) - (.03) -
---------- ---------- ---------- --------- ---------- ----------
$ 64.45 $ 64.99 $ 63.11 $ 59.35 $ 54.91 $ 51.54
========== ========== ========== ========= ========== ==========
2.89% 5.05% 7.06% 8.09% 6.60% 4.48%*
$ 179,888 $ 320,382 $ 207,889 $ 61,056 $ 31,370 $ 6,475
========== ========== ========== ========= ========== ==========
.73% .73% .83% .54% .54% .50%*
2.97% 4.87% 6.74% 7.87% 6.70% 5.32%*
None None None None None None
</TABLE>
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE VERSATILE BOND PORTFOLIO
<TABLE>
Financial highlights for the Versatile Bond Portfolio
For each share of capital stock outstanding throughout each fiscal period:
<CAPTION>
Six months ended Year ended
July 31, 1995 January 31, 1995
(Unaudited)
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 54.90 $ 54.76
-------- ---------
Income from investment operations:
Net investment income (2) ............... 1.38 2.12
Net realized and unrealized gains
or losses on investments (3) .......... .87 (.63)
-------- ---------
Total income from investment operations 2.25 1.49
Less distributions from:
Net investment income ................... - (1.33)
Net realized gain on investments ........ - (.02)
-------- ---------
Total distributions - (1.35)
-------- ---------
Net asset value, end of period $ 57.15 $ 54.90
======== =========
Total return (4) ............................ 8.26%* 2.74%
Ratios / supplemental data:
Net assets, end of period (in thousands).... $ 22,295 $ 22,229
======== =========
Ratio of expenses to average net assets (2). .81%* .86%
Ratio of net investment income
to average net assets ................... 5.16%* 3.84%
Portfolio turnover rate ................... 45.10%* 74.62%
<FN>
* Computed on an annualized basis.
(l) The Versatile Bond Portfolio commenced investment operations November 12,
1991.
(2) Due to the waiver of advisory fees and through January 31, 1994,
distribution expenses, the ratio of expenses to average net assets was
reduced by .38% for the six months ended July 31, 1995 and .36%, .39%, .41%
and .43% for the years ended January 31, 1995, 1994, 1993 and the period
ended January 31, 1992, respectively. Without this waiver, the net
investment income per share would have been $1.26 for the six months ended
July 31, 1995 and $1.84, $1.57, $1.77 and $2.13 for the years and the
period then ended.
(3) Per share net realized and unrealized gains or losses on investments may
not correspond with the change in aggregate unrealized gains and losses in
the Portfolio's securities because of the timing of sales and repurchases
of the Portfolio's shares in relation to fluctuating market values for the
Portfolio.
(4) Assumes reinvestment of all dividends and distributions, and deduction of
all fees and expenses except the $35 one-time account start-up fee and the
$1.50 monthly account maintenance fee.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year ended Year ended Period ended
January 31, 1994 January 31, 1993 January 31, 1992 (1)
---------------- ---------------- --------------------
<C> <C> <C>
$ 53.63 $ 50.58 $ 50.00
--------- ---------- ---------
1.87 2.06 2.51
(.04) 1.00 (1.93)
--------- ---------- ---------
1.83 3.06 .58
(.70) (.01) -
- - -
--------- ---------- ---------
(.70) (.01) -
--------- ---------- ---------
$ 54.76 $ 53.63 $ 50.58
========= ========== =========
3.42% 6.05% 3.33%*
$ 35,682 $ 23,217 $ 596
========= ========== =========
.89% .89% 1.07%*
3.46% 3.86% 4.00%*
75.05% 224.95% 600.99%*
</TABLE>
<PAGE>
PERMANENT PORTFOLIO FAMILY OF FUNDS, INC.
THE AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
Financial highlights for the Aggressive Growth Portfolio
For each share of capital stock outstanding throughout each fiscal period:
<CAPTION>
Six months ended Year ended
July 31, 1995 January 31, 1995
(Unaudited)
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 31.61 $ 32.56
---------- ---------
Income from investment operations:
Net investment income (loss) ............................ - (.01)
Net realized and unrealized gains
or losses on investments ................................ 10.55 (.89)
---------- ---------
Total income or loss from investment operations 10.55 (.90)
Less distributions from:
Net investment income ................................... - (.03)
Net realized gain on investments ........................ - (.02)
---------- ---------
Total distributions - (.05)
---------- ---------
Net asset value, end of period $ 42.16 $ 31.61
========== =========
Total return (2) ............................................. 67.30%* (2.75)%
Ratios / supplemental data:
Net assets, end of period (in thousands) .................... $ 9,290 $ 6,758
========== =========
Ratio of expenses to average net assets ...................... 1.18%* 1.23%
Ratio of net investment income (loss) to average net assets... .01%* (.04)%
Portfolio turnover rate ...................................... 37.21%* 26.29%
<FN>
* Computed on an annualized basis.
(l) The Aggressive Growth Portfolio commenced investment operations May 16,
1990.
(2) Assumes reinvestment of all dividends and distributions, and deduction of
all fees and expenses except the $35 one-time account start-up fee and the
$1.50 monthly account maintenance fee.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year ended Year ended Year ended Period ended
January 31, 1994 January 31, 1993 January 31, 1992 January 31, 1991(1)
---------------- ---------------- ---------------- -------------------
<C> <C> <C> <C>
$ 26.63 $ 22.77 $ 18.35 $ 20.00
--------- --------- ---------- ---------
.01 .02 .06 .13
6.41 4.44 4.38 (1.78)
--------- --------- ---------- ---------
6.42 4.46 4.44 (1.65)
(.02) (.13) (.02) -
(.47) (.47) - -
--------- --------- ---------- ---------
(.49) (.60) (.02) -
--------- --------- ---------- ---------
$ 32.56 $ 26.63 $ 22.77 $ 18.35
========= ========= ========== =========
24.25% 19.77% 24.21% (8.25)%*
$ 7,201 $ 3,596 $ 2,577 $ 1,151
========= ========= ========== =========
1.20% 1.12% 1.18% 1.07%*
.02% .12% .23% .64%*
29.83% 25.62% 53.18% 36.88%*
</TABLE>
<PAGE>
INVESTMENT ADVISER The
World Money Managers PERMANENT
Terry Coxon, General Partner PORTFOLIO
625 Second Street Family of Funds
Petaluma, California 94952
CONSULTANTS TO THE FUND
Harry Browne
Douglas Casey
TRANSFER AGENT
Mutual Funds Service Company
P.O. Box 2798
Boston, Massachusetts 02208
(for overnight delivery services,
73 Tremont Street
Boston, Massachusetts 02108)
1-800-341-8900
In Mass. 1-617-557-8000
CUSTODIAN
State Street Bank and Trust Company
Boston, Massachusetts 02105
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
Three Embarcadero Center
San Francisco, California 94111
INVESTOR'S INFORMATION OFFICE
P.O. BOX 5847 SEMI-ANNUAL
Austin, Texas 78763 REPORT
1-800-531-5142 Nationwide July 31, 1995
Local 1-512-453-7558
