MATHERS FUND, INC.
100 Corporate North Bannockburn, Illinois 60015
800-962-FUND 847-295-7400
[email protected]
DIRECTORS
TYLER R. CAIN
CHARLES G. FREUND
JON P. HEDRICH
ROBERT E. KOHNEN
ANNE E. MORRISSY
ROBERT J. REYNOLDS
JACK O. VANCE
HENRY G. VAN DER EB
OFFICERS
HENRY G. VAN DER EB, CFA
Chairman
ROBERT J. REYNOLDS, CFA
President
ANNE E. MORRISSY, CFA
Executive Vice President and Secretary
LAWRENCE A. KENYON, CPA
Senior Vice President and Chief Financial Officer
EDITH L. COOK
Vice President and Treasurer
HEIDI M. STUBNER
Vice President
Investment Adviser
MATHERS AND COMPANY, INC.
Bannockburn, Illinois
Custodian
STATE STREET BANK AND TRUST CO.
Boston, Massachusetts
Transfer Agent
DST SYSTEMS, INC.
Kansas City, Missouri
Counsel
SIDLEY & AUSTIN
Chicago, Illinois
Auditors
ARTHUR ANDERSEN LLP
Chicago, Illinois
This report is submitted for the information of shareholders of the Fund. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by a current prospectus.
(LOGO)
MATHERS
FUND
SEMI-ANNUAL
REPORT
1999
THE BUBBLE IN STOCKS: AN HISTORICAL PERSPECTIVE
CHART 1
[Contained here in paper format is a chart reflecting the Standard & Poors 500
stock index adjusted for inflation. The x-axis reflects the years from 1871
through 2000 and its Y-axis is on a logarithmic scale and extends from 15 to
250. The long-term least squares trend line from 1871 through June 1999 is also
on the chart. The chart was prepared by The Bank Credit Analyst. A hard copy is
available by calling Mathers Fund at 800-962-3863. The chart is a line chart
with monthly data and shows the extreme overvaluation (measured as the
divergence above the trend line) in the S&P 500 Index.
Also contained within the chart is a table of data as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
S&P 500
1928 to 1999 Price/Book Dividend Yield P/E Ratio
- ------------ ---------- -------------- ----------
Avg. of Five
Major Bottoms 0.9 7.14 7.8
Long-term Average 1.9 3.82 14.7
Avg. of Six
Major Tops 2.4 2.94 20.2
Sept. 1929 Top 3.6 2.86 21.1
July '98 Top 6.3 1.35 30.0
Oct '98 Low 5.1 1.69 24.6
July '99 Top* 7.5 1.18 37.0
*Record Overvaluation]
</TABLE>
CHART 2
[Contained here in paper format is a chart reflecting the Stock Market
Capitalization as a Percentage of Nominal GDP. This chart was prepared for
Mathers Fund by Topline Investment Graphics, Boulder CO. A hard copy is
available by calling Mathers Fund at 800-962-3863. The line is the ratio of
stock market capitalization divided by nominal GDP. The chart's x-axis
represents years, from 1926 through 2000 and its y-axis shows percentage points,
from 0 to 175. The average, since 1926, has been 51.5%. The high points (August
1929, 81.4%; November 1968, 77.8% and December 1972, 78.10%) were all followed
by severe bear markets. The current value is a record high, 157.8%.
Three smaller charts appear in a box inset in the main chart. Each of these
charts shows a parabolic price rise, a top and the following sharp decline. The
first of the three charts reflects gold prices from Jan 1978 at about $150,
through its peak in late 1979 at over $800, to its decline in February 1980 at
about $470. The second of the three charts reflects the price of the Tokyo
Nikkei stock index and begins in January 1985 at about 11,000 Yen, continues
through its peak in November 1989 near 39,000 Yen to its year-end 1992 level of
15,000 Yen. The last of the three charts shows the Dow Jones Industrial Average
from its 1925 level of 125, through the 1929 peak of around 375 to its year-end
1931 level of 80.]
- ------------------------------------------------------------------------
LETTER TO SHAREHOLDERS AUGUST 14, 1999
- --------------------------------------------------------------------------
Last autumn, the U.S. Federal Reserve bailed out a teetering global economy,
a collapsing U.S. stock market, and a prominent hedge fund, with three
successive reductions in U.S. interest rates. The spreading financial crises
were stopped, but the unintended consequence of the aggressive rate cuts was
a quick return to stock mania psychology, a revitalized stock market bubble
(Charts 1, 2 & 3), and rising residential real estate prices.
The rippling "wealth effect" from excessive stock and real estate valuations has
overstimulated U.S. consumer spending and pushed the savings rate below zero.
This has shifted the Fed's focus to an "inflation alert" with concerns over
labor shortages, rising wages, commodity inflation, and slowing productivity.
As a result, the FOMC raised short-term interest rates on June 30th to prevent
the inflation on Wall Street from moving to Main Street. Additional rate
increases are expected unless potential inflation is quickly defused by an
economic slowdown.
Mr. Greenspan is now center stage with the most difficult balancing act of his
career. By gradually raising interest rates, he is attempting to gently deflate
the largest stock market balloon in financial history in order to cool consumer
spending, slow the economy and prevent inflationary pressures from building.
Complicating this task is a burgeoning U.S. trade deficit, a weak dollar, and
Y2K uncertainties. Only twice this century has a central bank tried to restrain
stock market speculation that had become a national obsession. In both cases,
the U.S. in '29 and Japan in '89, interest rates were raised, stocks topped and
no one worried about inflation for a long time.
The S&P 500 topped out again in mid July at all-time record overvaluation
levels, after posting a first half gain of 12.4%. At the peak, buyers paid an
astounding $85 for $1 of S&P 500 dividends and $37 for $1 of overstated earnings
versus 'bargains' of $35 and $21, respectively, at the September '29 pre-crash
top (table on Chart 1). At the same time, the Internet stock frenzy induced
buyers to pay a ludicrous $141 for $1 of NASDAQ earnings, making the $28 pre-'87
Crash figure look cheap (Chart 4).
Over the last few years, the unprecedented divergence between the S&P 500's
earnings growth rate and other fundamentals has continued to widen. For example,
during the 3 1/2 year period from 12-31-95 to 6-30-99 the S&P 500 has increased
an amazing 7.3 times the percentage increase in reported earnings and 6.2 times
faster than operating earnings. The compound annual increase in reported
earnings for this 3 1/2 year period was 4.6% and 5.4% for operating earnings.
During this period the annual growth rate in earnings has actually been
decreasing. In fact, S&P 500 reported earnings for '98 declined 5.1% and
operating earnings were flat.
Clearly, a price to earnings ratio of 37 times is a very high price to pay for
mid-single digit earnings growth, even without dubious accounting practices
which overstate and artificially smooth out quarterly earnings reports. Straight
shooter Warren Buffett, in his March '99 annual letter to Berkshire Hathaway
shareholders, presents a revealing analysis that bluntly criticizes corporate
"earnings manipulation" techniques which are often "auditor blessed". SEC
Chairman Arthur Levitt wants "earnings management" stopped, stating, "Too many
corporate managers, auditors and analysts are participants in a game of winks
and nods." Most major corporations play the cynical game of "beating" Wall
Street's consensus quarterly earnings estimate by 1 cent and then watch CNBC
hype the stock by ballyhooing the number as "better than expected", while
downplaying the comparison with the prior year's comparable quarter.
At year-end '95, the yield on the 30 year U.S. Treasury bond was 6% vs. 6.1% now
and the yields on 2, 5 and 10 year U.S. Treasury notes are also currently higher
as well. Additionally, both stock dividend and earnings yields are at historic
lows relative to bond yields. The 'New Era' rationale that the S&P 500 has
zoomed up over the last 3 1/2 years due to strong earnings growth and declining
interest rates is not supported by these facts.
Historically, rising interest rates have preceded more bear markets than any
other factor and are now exerting significant pressure to narrow the record gap
between stock prices and fundamental value. The S&P 500's 1.2% dividend yield
and 2.7% earnings yield are no match for the Federal Reserve's tight money
policy. Reflecting just the first 1/4% rate hike, stocks plunged $1.3 trillion
in market value from July 16th to August 10th, compared to a total loss of $2.5
trillion during the entire global financial crises of '98. "Don't fight the
Fed."
There are numerous analytical approaches which can be used to quantify the
downside risk in today's stock market. The Federal Reserve's own internal stock
market valuation model, which uses the S&P 500 consensus forward estimate of
operating earnings divided by the 10 year U.S. Treasury note yield, put the S&P
500 at 50% overvalued on July 9th compared to 33% prior to the '87 Crash. Using
regression to the long term means and medians, for the various data series shown
in Charts 1, 2 & 5, gives an average downside projection of 64%, and a move to
historical undervaluation, a loss of 76%.
At the moment, there is great complacency regarding the analogy between the Fed
raising rates in August of '29 and the June '99 increase. However, in early
July, after a gain of 1.62% for the first half, the Fund's portfolio was changed
to primarily short term Treasury bills in order to assess the Fed's policy
shift. The following is a 9-1-29 quote from the New York Times: "One of the most
striking features of the present chapter in stock market history is the failure
of the trading community to take seriously the portents which once threw Wall
Street into a state of alarm." History tends to repeat when it is least
expected.
/s/ HENRY VAN DER EB
Chairman
CHART 3
[Contained here in paper format prepared by H.D. Brous & Co. A hard copy is
available by calling Mathers Fund at 800-962-3863. It is a bar chart reflecting
the ratio of annual stock trading volume in dollars to the total dollar value of
GDP from 1926 through (estimated) 1999. The average ratio for all of the years
in the period is approximately 23%. The ratio peaked at approximately 140% in
1929, indicating a stock trading mania. The ratio has been climbing rapidly for
the last 5 years and is now approximately 190%, exceeding any reading of this
ratio for the past 63 years.]
CHART 4
[Contained here in paper format is a chart prepared by Investech Research. A
hard copy is available by calling Mathers Fund at 800-962-3863. The chart is a
line chart depicting the price/earnings ratio of the Nasdaq index of 4800
domestic stocks from 1985 through 7/9/99. The y-axis shows P/E levels from 15 to
145 and the x-axis shows the years from 1986 to 1988. The peak prior to the 1987
stock market crash was under 30. The line began a parabolic rise in 1995 (the
start of the current stock market mania) and currently reads 141.3, an all time
high.]
CHART 5
[Contained here in paper format is a table prepared by The Leuthold Group.
The Table appears below:
BACK TO THE MEDIANS (1957 to Date)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Historical Gain/Loss
S&P 500 Now Median From Here
- -------- --- ------ ---------
Normalized "Adjusted EPS" P/E 33.4 17.3 -50
Non-Normalized Operating EPS P/E 29.3 15.9 -46
Return On Sales Norm EPS P/E 33.3 15.9 -52
Dividend Yield 1.2% 3.4% -64
Price To Book 5.7 2.0 -65
Price To Cash Flow 18.6 8.8 -51
Price To Sales 2.2 0.8 -62
Avg.-56%
</TABLE>
Normalized "Adjusted EPS" P/E
Five year arithmetically averaged annual earnings
looking six months ahead and 54 months back
(12/94 - 12/99) (1957 to date data).
Non-Normalized Operating EPS P/E
Based on estimated operating (not reported) earnings
for the 12 months ending 12/99 (1957 to date data)
Return On Sales Norm EPS P/E
Based on five year arithmetically averaged return on
sales, multiplied by estimated sales for the 12 months
ending 6/30/97. (1955 to date data)]
SCHEDULE OF INVESTMENTS
June 30, 1999
(Unaudited)
- ----------------------------------------------------------------------
COMMON STOCKS
Shares Market Value
Fertilizer & Related Materials 0.7%
31,900 Agrium Inc. ...................$ 281,119
24,000 IMC Gobal Inc. ................ 423,000
------------
704,119
Food 0.4%
50,000 Chiquita Brands Int'l Inc. .... 450,000
Health Care 0.1%
10,000 Omnicare Inc. ................. 126,250
Paper & Forest Products 0.3%
5,000 International Paper Co. ....... 252,500
Retail - Drug Stores 0.2%
10,000 Rite Aid Corp. ................ 246,250
Telecommunications 6.3%
65,000 AT&T Corp. .................... 3,627,812
80,000 Qwest Communications Int'l * .. 2,645,000
------------
6,272,812
Waste Management 0.3%
5,000 Waste Management, Inc. * ... 268,750
--------------
Total Common Stocks (Cost $8,701,973) - 8.3%$ 8,320,681
SHORT-TERM NOTES
Par Value Market Value
$ 3,454,000 State Street Bank Repurchase
Agreement, 4.00%, due 7-1-99 **
(Cost $3,454,000) - 3.4%..$ 3,454,000
--------------
U.S. TREASURIES
$ 20,000,000 U.S. Treasury Notes, 5 1/2%
due 5-15-09 ...............$ 19,556,250
20,000,000 U.S. Treasury Notes, 5 1/4%
due 5-15-04................ 19,662,500
50,000,000 U.S. Treasury Bills
due 7-22-99 ............... 49,840,360
--------------
Total U.S. Treasuries
(Amortized Cost $89,464,579) - 88.8%.......$ 89,059,110
--------------
TOTAL INVESTMENTS (Cost $101,620,552)..........$ 100,833,791
OTHER ASSETS (Net) - (0.5%) .................. (539,194)
TOTAL NET ASSETS - 100% ....................... $100,294,597
============
* Non-Income Producing ** Collateralized by a U.S. Treasury Bond
BALANCE SHEET
June 30, 1999
(Unaudited)
---------------------------------------------------------
ASSETS
INVESTMENTS AT MARKET VALUE
Common Stocks (Cost $8,701,973)......... $ 8,320,681
U.S. Treasuries:
Notes (Cost $39,624,219).............. 39,218,750
Bills (Amortized Cost $49,840,360).... 49,840,360
Repurchase Agreement (Cost $3,454,000).. 3,454,000
TOTAL INVESTMENTS....................... $ 100,833,791
CASH ................................... 541
RECEIVABLES FOR
Dividends and Accrued Interest......... 284,709
Subscriptions to Capital Stock ........ 5,903
-------------------
TOTAL RECEIVABLES......................$ 290,612
----------------
TOTAL ASSETS.............................. $ 101,124,944
LIABILITIES
PAYABLES FOR
Investments Purchased................... $ 647,800
Redemptions of Capital Stock............. 108,715
Accrued Expenses......................... 58,750
Other .................. 15,082
-----------------
TOTAL LIABILITIES .........................$ 830,347
---------------
CAPITAL
Capital Stock, $1.00 par value;
8,412,499 shares outstanding
(100 million shares authorized)......$ 8,412,499
Paid-In Surplus.......................... 131,084,812
Accumulated Undistributed Net Investment
Income............................... 2,198,947
Accumulated Undistributed Net Realized
Loss on Investments.................. (40,614,900)
Net Unrealized Depreciation on Investments (786,761)
TOTAL CAPITAL (NET ASSETS) ................$ 100,294,597
TOTAL LIABILITIES AND CAPITAL..............$ 101,124,944
Net Asset Value (Capital) Per Share at
June 30, 1999........................ $11.92
=======
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999
(Unaudited)
INVESTMENT INCOME
INCOME
Interest..............................$ 2,513,986
Dividends............................. 30,061
-------------
GROSS INCOME..........................$ 2,544,047
-------------
EXPENSES
Management Fee........................$ 356,097
Transfer Agent........................ 76,585
Legal and Auditing................... 75,607
Other................................. 41,505
Custodian............................. 19,001
Registration.......................... 12,121
Printing.............................. 11,159
Taxes................................. 4,102
-------------
TOTAL EXPENSES........................$ 596,177
-------------
NET INVESTMENT INCOME.....................$ 1 ,947,870
-------------
REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS AND SECURITIES SOLD SHORT:
Net Realized Gain on Investments Sold.....$ 1,191,468
Net Realized Loss on Securities Sold Short (57,112)
Net Change in Unrealized Appreciation on
Investments and Securities Sold Short. (1,403,934)
Net Realized and Unrealized Loss on
Investments and Securities Sold Short. (269,578)
Net Increase in Net Assets Resulting from
Operations............................$ 1,678,292
==============
The accompanying Notes to Financial Statements are an integral part of these
statements.
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
June 30, 1999 Dec. 31, 1998
OPERATIONS
Net Investment Income........................................................ $ 1,947,870 $ 5,579,805
Net Realized Gain/(Loss) on Investments Sold ................................ 1,191,468 (51,633)
Net Realized Loss on Securities Sold Short................................... (57,112) (7,643,718)
Net Change in Unrealized Appreciation ....................................... (1,403,934) (4,390,362)
---------------- --------------
Net Increase/(Decrease) in Net Assets Resulting from Operations ........... 1,678,292 (6,505,908)
---------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS, Dividends from Net Investment Income ............. 0 ( 5,529,990)
----------------- ---------------
CAPITAL STOCK ISSUED AND REDEEMED
Net Proceeds from Sales of Shares, 196,178 and 920,644 shares, respectively . 2,321,623 11,377,820
Net Proceeds from Dividend Reinvestment Plan, 0 and 423,392 shares, respectively 0 4,966,387
Cost of Shares Redeemed, 1,036,123 and 2,686,199 shares, respectively........ (12,252,903) (34,164,539)
--------------- ---------------
Decrease in Net Assets Derived from Capital Stock Transactions, (839,945) and
(1,342,163) shares, respectively...................................... (9,931,280) (17,820,332)
-------------- --------------
Net Decrease in Net Assets................................................. (8,252,988) (29,856,230)
TOTAL NET ASSETS
Beginning of Period.......................................................... 108,547,585 138,403,815
------------- --------------
End of Period (including undistributed net investment income of $2,198,947 and
$251,081 respectively) .................................................... $100,294,597 $108,547,585
============ ============
</TABLE>
The accompanying Notes to Financial Statements are an
integral part of these statements.
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------
1. The Fund is registered under the Investment Company Act of 1940 as a
diversified, open-end investment company. The investment objective is
capital appreciation over the long term. The Fund may pursue its objective
by investing in common stocks and other equity securities and by engaging in
certain investment strategies designed to capitalize on potential declines
in the prices of equity securities, such as short sales. The Fund may also
invest all or any portion of its assets in fixed-income securities. The
following is a summary of the significant accounting policies of the Fund:
(a)The Fund intends to distribute all taxable income to its shareholders and
otherwise comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies. Therefore, no
provision has been made for Federal income taxes since the Fund has
elected to be taxed as a regulated investment company. The Fund intends
to utilize provisions of the Federal income tax laws which allow it to
carry a realized capital loss forward to eight years following the year
of the loss and offset such losses against any future realized gains. At
December 31, 1998, the Fund had total capital loss carryforwards of
$41,755,252, of which $11,658,398 expire on December 31, 2003,
$22,226,886 expire on December 31, 2004, and $7,869,968 expire on
December 31, 2006.
(b)Common stocks traded on securities exchanges and stocks traded on the
NASDAQ National Market are valued at the last sales price as of the close
of the New York Stock Exchange on the day of valuation. Fixed income
securities with a maturity of greater than 60 days are valued at the
current bid price, and those of 60 days or less are carried at amortized
cost which approximates market value. Financial futures are valued at the
settlement price established each day by the exchange on which they are
traded.
(c)During the six months ended June 30, 1999, the Fund entered into S&P 500
index futures contracts to hedge against possible declines of its
portfolio securities. Risks of entering into futures contracts include
the possibility that changes in the value of the futures contract may not
correlate with changes in the value of the portfolio securities being
hedged. Upon entering into a futures contract, the Fund deposits with its
custodian, in a segregated account, a U.S. Treasury Bill to cover margin
requirements. Subsequent payments are made or received by the Fund equal
to the daily change in the contract value and are recorded as unrealized
gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed or expires.
(d)Realized gains or losses are determined on the specific identification
method. Dividends associated with common stocks are recognized as income
or expense on the ex-dividend date. Dividends to shareholders are
recorded on the declaration date which coincides with the ex-dividend
date.
(e)The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts in these financial
statements. Actual results could be different.
2. The Fund has an agreement dated May 1, 1988 with Mathers and Company, Inc.,
of which certain officers and directors of the Fund are officers, directors
and shareholders, to serve as its investment adviser and manager. Under the
agreement, the Fund pays an annual management fee of 0.75% of the first
$200,000,000 of the Fund's average monthly net assets plus 0.625% of any
excess over $200,000,000 but not exceeding $500,000,000, plus 0.50% of any
excess over $500,000,000. The agreement also calls for Mathers and Company,
Inc. to provide office facilities and bookkeeping services to the Fund. The
adviser is required to reimburse the Fund to the extent expenses, other
than taxes but including the management fee, in any year exceed the sum of
1 1/2% of the first $30,000,000 of the Fund's average monthly net assets
plus 1% of average monthly net assets in excess of $30,000,000. An expense
reimbursement of $41,301 was required in 1998.
3. Cost of U.S. Treasury obligations and of other investment securities
purchased during the six months ended June 30, 1999, amounted to $95,149,923
and $76,808,848, respectively. Proceeds of U.S. Treasury obligations and
other investment securities sold or matured during the six months were
$109,540,047 and $71,944,408, respectively. The cost of investments is the
same for financial statement and Federal income tax purposes. At June 30,
1999, gross unrealized appreciation on investments was $45,566 and gross
unrealized depreciation on investments was $832,327.
Comparative Long-Term Growth of a $1 Investment in Mathers Fund
Compound 6-30-99
Annual Return Value of
From 8-19-65 $1 Invested
To 6-30-99 8-19-65 *
MATHERS FUND.......................................11.40% $38.76
Standard & Poor's 500..............................12.48 53.62
Value Line Composite................................7.62 12.02
Dow Jones Industrial Average.......................12.05 47.06
Long-Term U.S. Treasury Bonds.......................7.55 11.75
* Date of public offering
Income Dividends and Capital Gains Distributions Reinvested
MATHERS FUND
RANKED #1
GROWTH FUND
1 YEAR ENDED
12-31-87
Source: Lipper Analytical Services
12-31-87 "Growth Fund" Category
Consists of 236 Funds.
MATHERS FUND
RANKED #1
GROWTH FUND
1 YEAR ENDED
6-30-88
Source: Lipper Analytical Services
6-30-88 "Growth Fund" Category
Consists of 235 Funds.
MATHERS FUND
RANKED #1
GROWTH FUND
1 YEAR ENDED
9-30-90
Source: Lipper Analytical Services
9-30-90 "Growth Fund" Category
Consists of 257 Funds.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMPOUND ANNUAL RETURNS*
1 YR 5 YRS 10 YRS 34 YRS**
---- ----- ------ ------
MATHERS FUND (1.10) (0.94) 2.82 11.40
Standard & Poor's 500 22.77 27.87 18.78 12.48
Value Line Composite *** (0.23) 13.55 8.77 7.62
Dow Jones Industrial Average 24.67 27.48 19.39 12.05
Long-Term U.S. Treasury Bonds (0.97) 10.11 9.55 7.55
</TABLE>
* All periods ending 6-30-99
** From date of public offering 8-19-65
*** Unweighted average of 1600 stocks
THE FUND'S DAILY PRICE AND ASSET MIX PERCENTAGES ARE AVAILABLE VIA RECORDED
MESSAGE (AFTER 4:30 P.M. CENTRAL TIME) MONDAY THROUGH FRIDAY AT
800-962-FUND.
THE FUND'S PRICE CAN BE E-MAILED TO YOU DAILY. PLEASE PROVIDE YOUR E-MAIL
ADDRESS BY CALLING 800-962-FUND OR VIA E-MAIL AT [email protected].
SHAREHOLDER ACCOUNT BALANCES MAY BE OBTAINED FROM THE FUND'S TRANSFER AGENT AT
800-235-7458 BETWEEN 8:00 A.M. AND 4:30 P.M. CENTRAL TIME.
The results shown reflect past performance and should not be considered
representative of future performance. The investment return and principal value
of an investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Results reflect
income dividends and capital gains distributions reinvested.
