<PAGE> 1
MESSAGE FROM THE PRESIDENT
Dear Shareholder:
The total returns for the M.S.B. Fund, Inc. for the three, six and twelve months
ended June 30, 2000 were 1.50%,
-3.51% and -2.85%, respectively. The three, five and ten-year average annual
returns for the year ending June 30, 2000 were 14.48%, 18.41%, and 13.71%,
respectively. If a shareholder had invested $10,000 in the Fund at inception in
1964 and reinvested all capital gains and dividends in the Fund, the
shareholder's investment would have grown to $561,237 by June 30, 2000.
The primary purpose of a capitalistic society is to create wealth and capital so
that each generation can enjoy a higher standard of living than the previous
generation. The ongoing progress, prosperity, and wealth creation our economy
has produced over the last twenty years is the best ever. Inflation has been
muffled. Technology-enhanced productivity is on the rise. The American
entrepreneurial spirit remains at a high pitch and jobs are plentiful. It does
not appear that the Great American Economic Engine will stall any time soon.
The equity market has also delivered long-term improvement. The Dow Jones
Industrial Average, although off 8.48% for the first-half of this year, has not
seen a down calendar year since 1990. Along with such extended results have come
negative side effects. Although many Americans have become knowledgeable
investors over the years, the investing public on balance has become more risk
oriented and perhaps overly confident.
Portfolio turnover and market volatility have also dramatically increased. The
willingness to buy "story" stocks without much in-depth security analysis has
resulted in an inordinate amount of equity dollars being concentrated in three
market sectors--technology, biotechnology and telecommunications. In some
instances irrational exuberance toward certain stocks in these sectors has
skewed the relationship between the "intrinsic" or business value of a company
and its share price so that the market frequently doesn't recognize a good
company as a good stock.
The skewness of the stock market is such that the performance of various market
indices no longer reflects what is actually occurring in the broader stock
market. In 1999, for example, the New York Stock Exchange Composite Index, the
Standard and Poor's 500 Stock Index and the Nasdaq Composite Index were all up
for the year, but the majority of stocks in each index was down. The Nasdaq,
home to many "story" stocks, many smaller companies and most initial public
offerings, is where market volatility is most pronounced. In 1989, the average
holding period for a Nasdaq issue was two years. In 1999, it was five months.
Moreover, the average holding period for the 100 Nasdaq companies with the
largest market capitalizations, e.g., Amazon.com Inc., Sun Microsystems, Inc.
and Intel Corp., was just thirty days.
Ironically, the heavy equity market gyrations are overshadowing the rapidly
improving global economic outlook. The "Asian Contagion" began in 1997, and
since then the United States economy has been keeping the world economy afloat
by absorbing the majority of both the industrialized and emerging world's
exports. The Asian Contagion has passed and many emerging nations including
Thailand, Malaysia and South Korea are enjoying rising GDP. Europe is on a
growth track, and its economic growth in 2001 could actually exceed ours. Japan,
which accounts for over 60% of Asia's GDP, is coming out of a decade long
deflation. Russia must join forces with the West to improve economic output or
suffer political unrest. China, with a population of 1.3 billion, must also
dramatically increase economic interaction with the industrialized world if
living standards are to rise.
History shows the key factors for creating shareholder value include solid
portfolio selections, the power of compounding, investor patience and the
American Capitalistic System. The M.S.B. Fund and its investment philosophy of
selecting securities whose "intrinsic value" is greater than the company's share
price and who are believed to have the potential for rising profits and
cash-flow over time, is well positioned to capitalize on the improving global
economic outlook.
Sincerely,
Joseph R. Ficalora
Joseph R. Ficalora
President
<PAGE> 2
INVESTMENT RESULTS, OUTLOOK AND STRATEGIES
M.S.B. FUND, INC.
The M.S.B. Fund's net asset value per share on June 30, 2000 was $20.35 versus
$21.09 on December 31, 1999. The Fund's total return for the six-month period
ending June 30, 2000 was -3.51%. The six-month total return as of June 30, 2000
for the Lipper Large Capitalization Value Funds Average(1) was -1.65%. Total
return assumes the reinvestment of all dividends and capital gains and the
deduction of all applicable fees and expenses.
During the 8 1/2-year period beginning December 31, 1991 and ending June 30,
2000, coinciding with the tenure of the current portfolio management team, the
M.S.B. Fund has provided a cumulative total return of 243.67%. This compares
favorably to the 8 1/2-year cumulative total return of 204.59% for the Lipper
Growth & Income Funds Average (1992-1998)/Lipper Large Capitalization Value
Funds Average (1999-2000).(2) The Fund's average annual total return for the 8
1/2-year period ending June 30, 2000 was 15.63% versus 14.00% for the Lipper
Growth & Income/Large Capitalization Value Funds Averages.
Our portfolio companies continue to deliver consistent earnings growth averaging
approximately 12%-14% annually. However, the performance of the Fund has not
reflected this growth over the past 18 months. Investors have shunned the type
of companies we own in favor of fast growing technology companies. The M.S.B.
Fund's lack of significant representation in the technology sector is primarily
driven by two factors. First, while growth rates appear high, we question their
sustainability. Second, the price you pay for that growth seems excessive,
especially given the uncertainty of the business fundamentals.
Our preference is to invest in companies that demonstrate the ability to produce
sustainable earnings and cash flow growth over the long-term, accumulating
shares at reasonable prices. Over time, the stock market generally values
underlying business fundamentals appropriately. However, during certain time
periods, investor sentiment may cause these values to deviate from equilibrium.
We believe that this is the case in today's market. While times such as these
may adversely affect the Fund's relative performance in the short-term, we are
able to purchase shares at favorable prices.
Over the past six months we did not introduce any new companies to the Fund,
although we did increase our position in a number of our existing portfolio
holdings at prices that we believe were very attractive. In addition, we
eliminated three companies from the Fund during the period, namely Campbell
Soup, due to fundamental concerns, as well as Walt Disney and Walgreen due to
valuation.
Footnote 1: Lipper Analytical Services reorganized its fund classifications
during 1999. The Growth & Income category, of which the M.S.B. Fund was a
member, no longer exists. The Fund is now included in the Large Capitalization
Value category.
Footnote 2: In the interest of continuity, we have added the 1999-June 2000
cumulative return for the Lipper Large Capitalization Value Funds Average to the
1992-1998 cumulative return for the Lipper Growth & Income Funds Average
reported in 1998's annual report.
<PAGE> 3
M.S.B. FUND, INC.
INVESTMENT ACHIEVEMENT
The following information is a statement of the past record of the Fund and
should not be construed as a representation or prediction of future results. The
investment return and principal value of an investment in the Fund will
fluctuate with changing market conditions so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
The total return of the Fund for various periods is compared with the
Standard & Poor's 500 Composite Stock Price Index (S&P 500) and the Dow Jones
Industrial Average (DJIA), which are groups of unmanaged securities, and with
the Lipper Large Capitalization Value Funds Average, which is a broad equity
fund measurement. The S&P 500 and DJIA do not include a reduction of total
return for expenses. These results should be considered in light of the makeup
of each index, the investment objectives and portfolio composition of the Fund
and the periods indicated.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURN (unaudited)
------------------------------------------
6 Months Year 5 Years 10 Years
Ended Ended Ended Ended
6/30/00 6/30/00 6/30/00 6/30/00
-------- ------- ------- --------
<S> <C> <C> <C> <C>
M.S.B. Fund, Inc............................................ (3.51)% (2.85)% 18.41% 13.71%
Lipper Large Capitalization Value Funds Average............. (1.65)% (0.93)% 18.01% 14.75%
Standard & Poor's 500 Composite Stock Price Index........... (0.43)% 7.24 % 23.80% 17.79%
Dow Jones Industrial Average................................ (8.44)% (3.27)% 20.32% 16.59%
</TABLE>
* Assumes reinvestment of all dividends and distributions and the deduction of
all applicable fees and expenses. Data for the Lipper Large Capitalization
Value Funds Average, the S&P 500 and DJIA are from Lipper, Inc. The S&P 500
and DJIA do not include a reduction in total return for expenses. Average
annual total returns are stated for periods greater than one year.
<PAGE> 4
M.S.B. FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCKS (97.9%)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
ADVERTISING (3.5%)
50,000 Interpublic Group of Cos.,
Inc............................ $ 2,150,000
BANKS (5.2%)
7,000 M & T Bank Corp.................. 3,150,000
BEVERAGES-NON-ALCOHOLIC (3.8%)
40,000 Coca-Cola Co..................... 2,297,500
COMMERCIAL SERVICES (3.6%)
60,000 Cintas Corp...................... 2,201,250
COMPUTER SOFTWARE & SERVICES
(8.1%)
47,000 Automatic Data Processing,
Inc............................ 2,517,437
30,000 Microsoft Corp.*................. 2,400,000
-----------
4,917,437
DISTRIBUTOR-CONSUMER PRODUCTS
(4.2%)
60,000 Sysco Corp....................... 2,527,500
ELECTRICAL EQUIPMENT (5.0%)
50,000 Emerson Electric Co.............. 3,018,750
ELECTRONICS & SEMICONDUCTORS
(4.4%)
20,000 Intel Corp....................... 2,673,750
FINANCIAL SERVICES (12.0%)
48,000 American Express Co.............. 2,501,999
45,000 Fannie Mae....................... 2,348,438
60,000 Freddie Mac...................... 2,430,000
-----------
7,280,437
FOOD PROCESSING (3.3%)
25,000 Wm. Wrigley Jr., Co.............. 2,004,688
</TABLE>
COMMON STOCKS, CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<C> <S> <C>
HEALTH CARE-DIVERSIFIED (5.0%)
30,000 Johnson & Johnson................ 3,056,250
HEALTH CARE-DRUGS (7.8%)
55,000 Abbott Laboratories.............. 2,450,937
30,000 Merck & Co., Inc................. 2,298,750
-----------
4,749,687
HOUSEHOLD PRODUCTS (4.0%)
55,000 Clorox Co........................ 2,464,688
INSURANCE (5.3%)
60 Berkshire Hathaway, Inc.*........ 3,228,000
OFFICE EQUIPMENT & SUPPLIES
(3.6%)
55,000 Pitney Bowes, Inc................ 2,200,000
PERSONAL CARE (3.2%)
55,000 Gillette Co...................... 1,921,563
PUBLISHING-NEWSPAPERS (3.4%)
35,000 Gannett Co., Inc................. 2,093,438
RESTAURANTS (2.7%)
50,000 McDonald's Corp.*................ 1,646,875
RETAIL-FOOD CHAINS (2.7%)
50,000 Albertson's, Inc................. 1,662,500
RETAIL-GENERAL MERCHANDISE (3.8%)
40,000 Wal-Mart Stores, Inc............. 2,305,000
</TABLE>
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
<PAGE> 5
M.S.B. FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
JUNE 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMMON STOCKS, CONTINUED
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<C> <S> <C>
RETAIL-SPECIALTY STORES (3.3%)
65,000 Gap, Inc......................... 2,031,250
-----------
Total Common Stocks
(Cost $40,239,918)............. 59,580,563
-----------
<CAPTION>
COMMERCIAL PAPER (2.1%)
<C> <S> <C>
FINANCIAL SERVICES (2.1%)
$1,268,000 Household Finance Corp.,
6.88%, 7/3/00.................. $ 1,268,000
Total Commercial Paper
(Cost $1,268,000).............. 1,268,000
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
------
<C> <S> <C> <C>
Total Investments
(Cost $41,507,918) (a)... 100.0% $60,848,563
Other assets in excess of
liabilities.............. 0.0% 13,227
----- -----------
Total Net Assets........... 100.0% $60,861,790
===== ===========
</TABLE>
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $21,290,302
Unrealized depreciation..... (1,949,657)
-----------
Net unrealized
appreciation.............. $19,340,645
===========
</TABLE>
* Non-income producing security.
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
<PAGE> 6
M.S.B. FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 2000
-------------
<S> <C>
ASSETS
Investment in securities, at value (Cost $41,507,918)....... $60,848,563
Cash........................................................ 164
Dividends and interest receivable........................... 28,817
Prepaid expenses............................................ 33,321
-----------
Total assets.............................................. 60,910,865
LIABILITIES
Accrued expenses payable.................................... 49,075
-----------
NET ASSETS, applicable to 2,990,810 shares of Class A
$.001 par value stock, 5,000,000 shares authorized........ $60,861,790
===========
NET ASSETS:
Par value of capital shares................................. $ 2,991
Additional paid in capital.................................. 37,565,097
Accumulated net investment loss............................. (10,515)
Accumulated net realized gains from investment
transactions.............................................. 3,963,572
Net unrealized appreciation on investments.................. 19,340,645
-----------
NET ASSETS.................................................. $60,861,790
===========
NET ASSET VALUE, offering and redemption price
per share ($60,861,790/2,990,810 shares).................. $ 20.35
===========
</TABLE>
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
<PAGE> 7
M.S.B. FUND, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
----------------
<S> <C>
INVESTMENT INCOME:
Dividends................................................. $ 347,859
Interest.................................................. 42,789
-----------
Total investment income................................ 390,648
EXPENSES:
Investment advisory....................................... 228,196
Administration............................................ 40,200
Directors'................................................ 27,542
Transfer agent............................................ 40,034
Legal..................................................... 17,576
Printing.................................................. 12,324
Insurance................................................. 13,929
Audit..................................................... 12,046
Custodian................................................. 7,871
Registration.............................................. 10,288
Miscellaneous............................................. 3,181
-----------
Total expenses......................................... 413,187
Fee waivers............................................ (12,024)
-----------
Net expenses........................................... 401,163
-----------
Net investment loss.................................... (10,515)
REALIZED AND UNREALIZED GAIN (LOSSES) ON INVESTMENTS:
Net realized gain........................................... 3,798,274
Net change in unrealized appreciation/depreciation.......... (6,273,470)
-----------
Net realized and unrealized loss............................ (2,475,196)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $(2,485,711)
===========
</TABLE>
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
7
<PAGE> 8
M.S.B. FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 2000 1999
------------- ------------
(UNAUDITED)
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income (loss).............................. $ (10,515) $ 17,385
Net realized gain on investments.......................... 3,798,274 5,015,586
Net change in unrealized appreciation/depreciation on
investments............................................ (6,273,470) (1,268,740)
----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................ (2,485,711) 3,764,231
Distributions to shareholders:
From net investment income................................ -- (17,385)
In excess of net investment income........................ -- (3,261)
From net realized gains on investments.................... -- (4,847,027)
----------- -----------
Total distributions to shareholders......................... -- (4,867,673)
Net increase (decrease) from capital share transactions (See
Note 3)................................................... (4,307,386) 2,934,755
----------- -----------
Total increase (decrease) in net assets..................... (6,793,097) 1,831,313
NET ASSETS:
Beginning of period....................................... 67,654,887 65,823,574
----------- -----------
End of period............................................. $60,861,790 $67,654,887
=========== ===========
</TABLE>
--------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
8
<PAGE> 9
M.S.B. FUND, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Selected Data for Each Share of Capital Stock
Outstanding throughout Each Year
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------
2000 1999 1998 1997 1996 1995
---------- ---- ---- ---- ---- ----
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of
period............................. $ 21.09 $ 21.49 $ 17.73 $ 14.60 $ 13.63 $ 13.39
INCOME FROM OPERATIONS:
Net investment income (loss)....... --(1) 0.01 0.01 0.07 0.11 0.08
Net realized and unrealized gain
(loss) on investments........... (0.74) 1.20 5.55 4.10 2.76 3.17
------- ------- ------- ------- ------- -------
Total from investment
operations.................... (0.74) 1.21 5.56 4.17 2.87 3.25
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
From net investment income......... -- (0.01) (0.01) (0.07) (0.14) (0.08)
From net realized gains on
investments..................... -- (1.60) (1.79) (0.97) (1.76) (2.93)
------- ------- ------- ------- ------- -------
Total distributions............. -- (1.61) (1.80) (1.04) (1.90) (3.01)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of period....... $ 20.35 $ 21.09 $ 21.49 $ 17.73 $ 14.60 $ 13.63
======= ======= ======= ======= ======= =======
Total return......................... (3.51)%(3) 5.79% 31.45% 28.88% 21.16% 24.97%
Ratio of net expenses to average
net assets......................... 1.32%(4) 1.24% 1.32% 1.41% 1.41% 1.69%
Ratio of net investment income (loss)
to average net assets.............. (0.03)%(4) 0.03% 0.02% 0.43% 0.71% 0.57%
Ratio of expenses to average net
assets (2)......................... 1.36%(4) 1.26% 1.39% 1.55% 1.61% 1.86%
Portfolio turnover rate.............. 9% 22% 32% 23% 45% 68%
NET ASSETS, end of period (000's).... $60,862 $67,655 $65,824 $49,267 $37,358 $32,509
</TABLE>
--------------------------------------------------------------------------------
(1) Net investment loss was less than $0.005 per share.
(2) During certain periods, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
(3) Not annualized.
(4) Annualized.
See Accompanying Notes to Financial Statements.
9
<PAGE> 10
M.S.B. FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
The M.S.B. Fund, Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as a diversified open-end management investment company
organized as a New York corporation. The Fund was incorporated under the laws of
the State of New York on June 8, 1964. The investment objective of the Fund is
to achieve long-term growth of capital for its shareholders.
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A--Security Valuation--Securities traded on national exchanges are valued at the
closing prices or, in the case of over-the-counter securities, at the mean
between closing bid and asked prices. Short-term instruments maturing within 60
days of the valuation date are valued at amortized cost.
B--Security Transactions and Related Investment Income--Security transactions
are accounted for on the trade date, dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. The
specific identification method is used in the determination of realized gains
and losses on the sale of securities.
C--Dividends to Shareholders--Dividends from net investment income, if any, are
declared and paid annually. Net short-term and long-term capital gains, if any,
are declared and paid annually.
Distributions from net investment income and from net realized capital gains are
determined in accordance with Federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature (i.e. reclass of market discounts,
gain/loss, paydowns and distributions) such amounts are reclassified within the
composition of net assets based on their Federal tax-basis treatment; temporary
differences do not require reclassification. Distributions to shareholders which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as distributions in
excess of net investment income or net realized gains. To the extent such
distributions exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of capital.
D--Federal Income Taxes--No provision has been made for Federal income tax,
since it is the intention of the Fund to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its ordinary taxable income and net capital gains to its
shareholders.
E--Management Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE 2--FEES
Shay Assets Management, Inc. (the "Investment Adviser") is the investment
adviser to the Fund. The Investment Adviser is a wholly-owned subsidiary of Shay
Investment Services, Inc. ("SISI"), which is controlled by Rodger D. Shay, a
Vice President of the Fund.
The Investment Adviser receives fees from the Fund, computed at an annual rate
of 0.75% of the first $100,000,000 of the Fund's average daily net assets and
0.50% of average daily net assets in excess of $100,000,000. The fee payable to
the Investment Adviser is reduced (but not below zero) to the extent
10
<PAGE> 11
M.S.B. FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000
(UNAUDITED)
expenses (exclusive of professional fees, such as legal and audit fees,
directors' fees and expenses, and distribution expenses, if any, payable under
Rule 12b-1) exceed 1.10% of the Fund's average daily net assets for any fiscal
year during the term of the Fund's agreement with the Investment Adviser. This
limitation did not result in any waiver of the Investment Adviser's fees during
the six months period ended June 30, 2000.
Shay Financial Services, Inc. (the "Distributor") is the distributor for the
Fund. The Distributor is also a wholly-owned subsidiary of SISI. The Distributor
receives no compensation for its distribution services.
BISYS Fund Services Ohio, Inc. is a subsidiary of The BISYS Group, Inc. and
serves as the Funds Administrator and Transfer Agent. As compensation for its
administrative services, the Fund pays the Administrator a minimum monthly fee
of $6,700 (exclusive of out-of-pocket expenses). The Administrator waived
approximately 24% of its administrative fee for the six months ended June 30,
2000. The waiver amounted to $9,774. As compensation for its services as
transfer agent, the Fund pays the Transfer Agent a minimum monthly fee of $1,500
(exclusive of out-of-pocket expenses). The Transfer Agent waived approximately
6% of its fee for the six months ended June 30, 2000. The waiver amounted to
$2,250.
NOTE 3--CAPITAL STOCK
At June 30, 2000, there were 5,000,000 shares of $.001 par value capital stock
authorized. Transactions in capital stock for the six months ended June 30, 2000
and for the year ended December 31, 1999, respectively, were as follows (amounts
in thousands):
<TABLE>
<CAPTION>
SHARES AMOUNT
(000) ($000)
------------ ------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Shares sold................................................. 80 266 $ 1,560 $5,808
Shares issued in reinvestment of dividends.................. (1) 194 (12) 4,000
---- ---- -------- ------
79 460 1,548 9,808
---- ---- -------- ------
Shares redeemed............................................. (296) (316) (5,855) (6,873)
---- ---- -------- ------
Net increase................................................ (217) 144 ($ 4,307) $2,935
==== ==== ======== ======
</TABLE>
NOTE 4--PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of investments, exclusive of
short-term investments, for the six months ended June 30, 2000, were $5,167,427
and $9,528,700, respectively.
11
<PAGE> 12
M.S.B.
FUND, INC.
OFFICERS
Joseph R. Ficalora
President
Michael J. Gagliardi
First Vice President
William A. McKenna, Jr.
Second Vice President
Rodger D. Shay
Vice President and Assistant
Secretary
Edward E. Sammons, Jr.
Vice President and Secretary
John J. McCabe
Vice President
Mark F. Trautman
Vice President
Steven D. Pierce
Treasurer
Alaina V. Metz
Assistant Secretary
BOARD OF DIRECTORS
Malcolm J. Delaney
Timothy A. Dempsey
Harry P. Doherty
Joseph R. Ficalora
David Freer, Jr.
Michael J. Gagliardi
David F. Holland
William A. McKenna, Jr.
<PAGE> 13
M.S.B.
FUND, INC.
M.S.B. FUND, INC.
c/o Shay Financial Services, Inc.
230 West Monroe Street
Chicago, Illinois 60606
Telephone 800-661-3938
INVESTMENT ADVISER
Shay Assets Management, Inc.
200 Park Avenue
45th Floor
New York, New York 10166
DISTRIBUTOR
Shay Financial Services, Inc.
230 West Monroe Street
Chicago, Illinois 60606
ADMINISTRATOR, TRANSFER AGENT,
REGISTRAR AND DIVIDEND PAYING AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
CUSTODIAN
The Bank of New York
100 Church Street
New York, New York 10286
LEGAL COUNSEL
Hughes Hubbard & Reed LLP
One Battery Park Plaza
New York, New York 10004
INDEPENDENT ACCOUNTANTS
Arthur Andersen LLP
425 Walnut Street
Cincinnati, Ohio 45202
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