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<PAGE> PAGE 2
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014 A000002 PFS DISTRIBUTORS, INC.
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<PAGE> PAGE 4
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SIGNATURE JAY S. FISHMAN
TITLE CHIEF FINANCIAL OFF.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 105,543,730
<INVESTMENTS-AT-VALUE> 126,763,906
<RECEIVABLES> 144,265
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 126,908,171
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,752,739
<TOTAL-LIABILITIES> 4,752,739
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 92,267,304
<SHARES-COMMON-STOCK> 3,681,244
<SHARES-COMMON-PRIOR> 3,204,308
<ACCUMULATED-NII-CURRENT> 811,421
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,856,531
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 21,220,176
<NET-ASSETS> 122,155,432
<DIVIDEND-INCOME> 939,493
<INTEREST-INCOME> 724,635
<OTHER-INCOME> 0
<EXPENSES-NET> 852,707
<NET-INVESTMENT-INCOME> 811,421
<REALIZED-GAINS-CURRENT> 12,852,764
<APPREC-INCREASE-CURRENT> 16,423,842
<NET-CHANGE-FROM-OPS> 30,088,027
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (540,784)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 900,317
<NUMBER-OF-SHARES-REDEEMED> (445,510)
<SHARES-REINVESTED> 22,109
<NET-CHANGE-IN-ASSETS> 43,661,830
<ACCUMULATED-NII-PRIOR> 559,581
<ACCUMULATED-GAINS-PRIOR> (5,015,030)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 752,372
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 852,707
<AVERAGE-NET-ASSETS> 99,983,795
<PER-SHARE-NAV-BEGIN> 24.50
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 8.61
<PER-SHARE-DIVIDEND> (.17)
<PER-SHARE-DISTRIBUTIONS> 0
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</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of
Capital Appreciation Fund:
In planning and performing our audit of the financial statements and
financial highlights of Capital Appreciation Fund for the year ended
December 31, 1995, we considered its internal control structure,
including procedures for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion on the
financial statements and financial highlights and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal
control structure.
The management of Capital Appreciation Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use
or disposition and that transactions are executed in accordance with
management's authorization and recorded properly to permit the
preparation of financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal accounting control
structure, errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to
the risk that it may become inadequate because of changes in conditions
or that the effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in
which the design or operation of the specific internal control structure
elements does not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the financial
statements and financial highlights being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters
involving the internal control structure that we consider to be material
weaknesses, as defined above, as of December 31, 1995.
This report is intended solely for the information and use of management
of Capital Appreciation Fund and the Securities and Exchange
Commission.
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
February 7, 1996
