NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
Dear Shareholder,
Over the past twenty-six years, our investment principles have
consistently stressed a research-driven, long-term, and disciplined
approach to investing. As stewards of your investment, we continue to
focus on the fundamentals. We are pleased to note that Class A shares of
New York Venture Fund, Inc., during the one-year period covered by this
report ending July 31, 1995, increased in value 27.2%* while the total
return of the S&P 500** was 24.8%.
Your fund was again honored in the prestigious Forbes Honor Roll. The fund
was one of only 20 funds honored out of more than 5,000 in the August 28,
1995 issue of Forbes for its likelihood to serve you in a bear market as
well as in a bull market.
We are pleased to announce that on October 1, 1995 the name of the fund
will be changed to the Davis New York Venture Fund, Inc. This change will
emphasize the consistency of our investment principles and strong past
performance. The fund will be known along with nine other funds as part
of the Davis Fund Family. Recently, the portfolio management of the fund
has been strengthened by the addition of Christopher C. Davis as
co-manager.
Shareholders should maintain a long-term outlook in equity investing. We
believe that the stock markets fluctuate over the short-term, but will
continue to grow for many years and that they provide one of the best
opportunities for building wealth. We caution against taking too much of a
short-term outlook. An outlook which narrowly focuses on the volatility
during shorter periods may cause one to overlook the more meaningful
long-term potential offered by stock market growth.
Sincerely,
Shelby M.C. Davis
President
September 7, 1995
Rankings represent past performance and are not indicative of future
performance.
* Excluding the maximum 4.75% sales charge.
** A nationally recognized index in which direct investments are not
permitted.
<PAGE>
NEW YORK VENTURE FUND, INC.
Comparison of New York Venture Fund, Inc., Class A Shares and Standard
and Poor's 500 Stock Index
----------------------------------------------------------------------
----------------------------------------------------------------------
Average Annual Total Return For the Periods ended July 31, 1995.
----------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A SHARES (This calculation CLASS B SHARES (This calculation CLASS C SHARES (This calculation
includes an initial sales charge of includes a contingent deferred sales includes a contingent deferred sales
4 3/4%) charge of 4%). charge of 1%).
<S> <C> <S> <C> <S> <C>
One Year................ 21.17% Life of Class (December 1, 1994 Life of Class (December 20, 1994
Five Years.............. 15.91% through July 31, 1995.......... 28.63% through July 31, 1995.......... 28.66%
Ten Years............... 17.13%
</TABLE>
-----------------------------------------------------------------------
$10,000 invested over ten years. Let's say you invested $10,000 in New
York Venture Fund, Class A Shares on July 31, 1985 and paid a 4 3/4%
sales charge. As the chart shows, by July 31, 1995 the value of your
investment would have grown to $48,647 - a 386.47% increase on your
initial investment. For comparison, look at how the S&P 500 did over the
same period. With dividends reinvested, the same $10,000 investment
would have grown to $39,469 - a 294.69% increase.
<TABLE>
<CAPTION>
Measurement Period New York Venture Fund S&P 500 Index
------------------ --------------------- -------------
<S> <C> <C>
FYE 7/31/85 $ 9,525 $10,000
FYE 7/31/86 12,670 12,794
FYE 7/31/87 15,865 17,731
FYE 7/31/88 15,340 15,630
FYE 7/31/89 20,469 20,487
FYE 7/31/90 22,131 21,784
FYE 7/31/91 25,293 24,458
FYE 7/31/92 30,017 27,528
FYE 7/31/93 36,109 29,892
FYE 7/31/94 38,242 31,424
FYE 7/31/95 48,647 39,469
</TABLE>
The performance of Class B Shares and Class C Shares will be greater than
or less than the line shown for Class A Shares based on the differences in
loads and fees paid by shareholders investing in the different classes.
Standard & Poor's is an unmanaged index and has no specific investment
objective. The index does not take into account any sales charge and
investments cannot be made directly into an index.
The performance data for New York Venture Fund contained in this report
represents past performance and assumes that all distributions were
reinvested, and should not be considered as an indication of future
performance from an investment of the Fund today. The investment return
and principal value will fluctuate so that shares may be worth more or
less than their original cost when redeemed.
<PAGE>
NEW YORK VENTURE FUND, INC.
Management's Discussion of Fund Performance
----------------------------------------------------------------------------
----------------------------------------------------------------------------
An interview with Shelby M.C. Davis, President and Portfolio Manager of
New York Venture Fund, Inc.
Q.What strategies have you used to achieve a net asset total return of
27.2%?
A. We have made a long-term commitment to the financial sector which
has rebounded well in 1995. Also, a modest weighting in tech stocks has
added to the Fund's performance. We have managed to avoid some of the
market's weakest sectors, such as retailers and cyclical companies.
Q. What type of companies do you invest in?
A. We seek out large, fundamentally sound, growth companies which
appear to be undervalued and can be held for the long-term. We focus on
investing in companies with top quality management teams that respond
innovatively to change, have proven records, and build business through
their long-term vision.
Q. What types of questions do you ask yourself when you are looking at
companies?
A. We ask ourselves questions such as, "If we had unlimited funds,
would we want to own the whole company at the price we are paying for a
fractional interest? Or, can we make 50% over a three-year period?"
Importantly, we also ask ourselves, "If it goes down by 15% to 20%, would
we still want to own it? And, how much can we lose?" These are very
important questions when managing an all-weather fund that seeks to do
well in up and down markets.
Q. How do you know when to sell a stock?
A. We plan for our holding period to be perpetual. There are a lot of
companies in our fund that we have held for more than a decade. AIG
would be one that we have held for maybe 15 years. We truly have a
long-term perspective. We sell when we see deterioration in the
prospects for growth or when we think it is overvalued.
Q. What investment themes do you find attractive in the stock market
today?
A. Managing the fund since 1969, I've been fortunate to have seen quite
a few market cycles come and go. In the 1970s we liked energy stocks. In
the 1980s we liked the consumer and pharmaceutical sectors. Now, in the
1990s we are attracted to the financial sector. This area has good values
and strong companies. As the baby-boomer generation increasingly saves
for retirement it will be beneficial for these stocks.
<PAGE>
NEW YORK VENTURE FUND, INC. - CLASS A SHARES
ILLUSTRATION OF THE GROWTH OF AN ASSUMED INVESTMENT OF $10,000
------------------------------------------------------------------------------
------------------------------------------------------------------------------
ILLUSTRATION OF THE GROWTH OF AN ASSUMED INVESTMENT
WITH DIVIDENDS REINVESTED AND CAPITAL GAIN DISTRIBUTIONS ACCEPTED
IN ADDITIONAL SHARES
The chart below reflects an assumed investment of $10,000 covering the
period from February 17, 1969 to July 31, 1995, the life of the Company.
The period was one in which common stock prices fluctuated and was
characterized by periods of substantial market advances as well as
periods of substantial market declines. The results should not be
considered as a representation of the dividend income or capital gain or
loss which may be realized from an investment made in the Company
today.
<TABLE>
<CAPTION>
Measurement Cost of Initial Cost of Shares Cost of Shares Value of Initial Value of Shares Value of Shares
Period Investment Purchased Purchased Investment Purchased Purchased
Through Through Through Through
Dividends Distributions Dividends Distributions
----------- --------------- -------------- -------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
FYE 7/31/69 $10,000 $ - $ - $ 9,574 $ - $ -
FYE 7/31/70 $10,000 $ - $ 131 $ 7,561 $ - $ 97
FYE 7/31/71 $10,000 $ 76 $ 131 $10,206 $ 113 $ 131
FYE 7/31/72 $10,000 $ 121 $ 131 $12,111 $ 188 $ 155
FYE 7/31/73 $10,000 $ 155 $ 401 $10,525 $ 193 $ 364
FYE 7/31/74 $10,000 $ 283 $ 401 $ 7,946 $ 247 $ 275
FYE 7/31/75 $10,000 $ 513 $ 401 $ 9,371 $ 572 $ 324
FYE 7/31/76 $10,000 $ 832 $ 401 $10,225 $ 1,008 $ 354
FYE 7/31/77 $10,000 $ 1,044 $ 401 $11,107 $ 1,331 $ 384
FYE 7/31/78 $10,000 $ 1,304 $ 629 $13,743 $ 1,985 $ 771
FYE 7/31/79 $10,000 $ 1,721 $ 1,169 $14,550 $ 2,544 $ 1,390
FYE 7/31/80 $10,000 $ 2,189 $ 3,323 $17,484 $ 3,675 $ 4,504
FYE 7/31/81 $10,000 $ 3,137 $ 7,633 $17,767 $ 4,760 $ 9,243
FYE 7/31/82 $10,000 $ 4,343 $ 15,081 $11,069 $ 4,061 $ 12,288
FYE 7/31/83 $10,000 $ 5,299 $ 16,800 $17,861 $ 7,919 $ 22,564
FYE 7/31/84 $10,000 $ 6,316 $ 25,129 $13,321 $ 6,871 $ 24,508
FYE 7/31/85 $10,000 $ 7,455 $ 29,536 $16,341 $ 9,740 $ 35,525
FYE 7/31/86 $10,000 $ 8,800 $ 34,628 $20,169 $ 13,630 $ 50,784
FYE 7/31/87 $10,000 $ 9,734 $ 47,847 $20,413 $ 14,756 $ 67,396
FYE 7/31/88 $10,000 $12,205 $ 69,073 $15,141 $ 13,720 $ 70,308
FYE 7/31/89 $10,000 $15,025 $ 75,987 $18,236 $ 20,148 $ 93,945
FYE 7/31/90 $10,000 $20,167 $ 85,517 $17,617 $ 24,833 $100,622
FYE 7/31/91 $10,000 $23,007 $ 93,745 $18,480 $ 29,339 $115,694
FYE 7/31/92 $10,000 $26,629 $104,535 $20,075 $ 35,872 $138,106
FYE 7/31/93 $10,000 $29,813 $114,147 $22,683 $ 43,950 $166,806
FYE 7/31/94 $10,000 $32,902 $125,346 $22,589 $ 46,959 $177,680
FYE 7/31/95 $10,000 $35,366 $134,586 $27,317 $ 60,055 $227,122
</TABLE>
Average Annual Total Return
Period Ended June 30, 1995
<TABLE>
<S> <C>
One Year........ 18.63%
Five Years...... 14.80%
Ten Years....... 16.52%
</TABLE>
No adjustment has been made for any income taxes payable by
shareholders on capital gain distributions and dividends
invested in shares.
<PAGE>
Our Directors
Jeremy H. Biggs Shelby M.C. Davis
Chairman President & Chief Executive Officer
Wesley E. Bass, Jr. Marc P. Blum
<PAGE>
Our Directors
Eugene M. Feinblatt Jerry D. Geist
D. James Guzy G. Bernard Hamilton
<PAGE>
Our Directors
LeRoy E. Hoffberger Laurence W.Levine
Martin H. Proyect Christian R. Sonne
<PAGE>
Our Directors Our Officers
Edwin R. Werner Andrew A. Davis
Vice President
Carl R. Luff Raymond O. Padilla
Vice President, Treasurer & Vice President, Secretary &
Assistant Secretary Assistant Treasurer
<PAGE>
Our Officers
Louis R. Proyect Carolyn H. Spolidoro
Vice President Vice President
B. Clark Stamper Eileen R. Street
Vice President Assistant Treasurer & Assistant Secretary
<PAGE>
<TABLE>
NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS
July 31, 1995
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Value
Shares Security (Note 1)
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK - (91.07%)
AGRICULTURE - (1.53%)
<C> <S> <S>
1,527,354 Archer Daniels Midland Co...................................................................... $ 25,201,341
---------------
AUTOMOTIVE - (2.04%)
690,000 General Motors Corp............................................................................ 33,637,500
---------------
BANKS AND SAVINGS & LOANS - (10.51%)
475,000 Banc One Corp.................................................................................. 15,081,250
300,000 Barnett Banks, Inc............................................................................. 16,650,000
851,500 First Bank System, Inc......................................................................... 36,933,812
15,000 First Union Corp............................................................................... 733,125
564,300 Golden West Financial Corp..................................................................... 26,381,025
198,025 Republic New York Corp......................................................................... 11,089,400
695,000 State Street Boston Corp....................................................................... 24,585,625
228,000 Wells Fargo & Co............................................................................... 41,581,500
---------------
173,035,737
---------------
COMPUTER PRODUCTS AND SERVICES - (10.01%)
1,100,000 Cirrus Logic, Inc.<F2>......................................................................... 50,531,250
550,000 Hewlett-Packard Co............................................................................. 42,831,250
1,100,000 Intel Corp..................................................................................... 71,500,000
---------------
164,862,500
---------------
CONSUMER PRODUCTS - (6.18%)
30,000 American Brands, Inc........................................................................... 1,196,250
8,000 American Home Products Corp.................................................................... 632,000
655,000 Coca-Cola Company.............................................................................. 43,148,125
40,000 General Electric Co............................................................................ 2,360,000
344,000 Gillette Co. (The)............................................................................. 15,050,000
15,640 Nestle S.A. (Switzerland) ADR(144A)............................................................ 800,763
391,000 Nestle S.A. (Switzerland) (Sponsored ADR for Reg. Shrs.)....................................... 20,019,083
32,000 Philip Morris Cos., Inc........................................................................ 2,292,000
453,000 Seagram Co. Ltd. (The)......................................................................... 16,251,375
---------------
101,749,596
---------------
ELECTRONICS - (4.63%)
350,000 Tandy Corp..................................................................................... 20,781,250
354,700 Texas Instruments, Inc......................................................................... 55,421,875
---------------
76,203,125
---------------
ENERGY - (4.72%)
528,200 Amerada Hess Corp.............................................................................. 25,221,550
9,600 Amoco Corp..................................................................................... 645,600
16,000 Atlantic Richfield Co.......................................................................... 1,844,000
600,900 Burlington Resources, Inc...................................................................... 23,359,987
52,000 Chevron Corp................................................................................... 2,567,500
353,020 Energy Ventures Inc.<F2>....................................................................... 7,413,420
<PAGE>
NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1995
Value
Shares Security (Note 1)
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
ENERGY - Continued
80,000 Exxon Corp..................................................................................... $ 5,800,000
8,000 Mobil Corp..................................................................................... 782,000
143,000 Schlumberger Ltd............................................................................... 9,581,000
16,000 Sonat, Inc..................................................................................... 480,000
---------------
77,695,057
---------------
ENTERTAINMENT - (0.36%)
100,000 Disney (Walt) Company (The).................................................................... 5,862,500
---------------
FINANCIAL SERVICES _ (9.56%)
1,190,000 American Express Co............................................................................ 45,815,000
158,546 Dean Witter, Discover & Co..................................................................... 8,006,573
400,000 Federal Home Loan Mortgage Corporation......................................................... 26,200,000
470,000 Morgan (J.P.) & Co., Inc....................................................................... 34,368,750
514,100 Morgan Stanley Group Inc....................................................................... 42,991,613
---------------
157,381,936
---------------
FOOD - (0.64%)
425,000 Tyson Foods, Inc............................................................................... 10,545,313
---------------
FREIGHT - (0.60%)
250,000 Illinois Central Corp.......................................................................... 9,875,000
---------------
INSURANCE - (19.93%)
800,383 Allstate Corp. (The)........................................................................... 25,011,974
339,375 American International Group, Inc.............................................................. 25,453,125
495,000 Berkley (W.R.) Corp............................................................................ 18,933,750
460,300 Chubb Corp..................................................................................... 38,665,200
765,900 Equitable Companies Inc........................................................................ 17,137,012
277,500 General Re Corp................................................................................ 36,803,438
535,000 NAC Re Corp.................................................................................... 19,661,250
239,000 National Re Corp............................................................................... 8,126,000
446,400 Progressive Corp. (Ohio)....................................................................... 17,242,200
20,000 Robert Plan Corp. Class A <F2><F3>............................................................. 2,700,000
823,450 SunAmerica, Inc................................................................................ 47,142,513
211,800 Transatlantic Holdings Inc..................................................................... 13,978,800
930,266 Travelers Group Inc............................................................................ 44,071,352
844,000 20th Century Industries, Inc.<F2>.............................................................. 10,022,500
65,500 UNUM Corp...................................................................................... 3,168,562
---------------
328,117,676
---------------
MANUFACTURING - (0.06%)
6,000 Dow Chemical Co................................................................................ 444,750
30,000 Maytag Corp.................................................................................... 491,250
---------------
936,000
---------------
<PAGE>
NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1995
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Value
Shares Security (Note 1)
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
METALS AND MINERALS - (0.36%)
50,000 Alumax, Inc.<F2>............................................................................... $ 1,718,750
68,600 Reynolds Metals Co............................................................................. 4,287,500
---------------
6,006,250
---------------
PAPER PRODUCTS - (2.79%)
394,000 Fort Howard Corp.<F2>.......................................................................... 5,688,375
6,000 International Paper Co......................................................................... 507,000
250,000 Mead Corp. (The)............................................................................... 14,718,750
445,500 Union Camp Corp................................................................................ 25,059,375
---------------
45,973,500
---------------
PHARMACEUTICAL AND HEALTH CARE - (4.09%)
7,000 Bristol-Myers Squibb Co........................................................................ 484,750
182,000 Johnson & Johnson.............................................................................. 13,058,500
129,000 Merck & Co., Inc............................................................................... 6,659,625
600,000 Pfizer, Inc.................................................................................... 30,300,000
200,000 Warner-Lambert Co.............................................................................. 16,800,000
---------------
67,302,875
---------------
PUBLISHING - (2.86%)
5,000 Dun & Bradstreet Corp.......................................................................... 281,250
510,800 Gannet Co., Inc................................................................................ 27,966,300
290,000 Tribune Co..................................................................................... 18,523,750
1,000 Washington Post Co., Class B................................................................... 271,000
---------------
47,042,300
---------------
REAL ESTATE - (3.57%)
308,500 Federal Realty Investment Trust................................................................ 6,709,875
1,704,900 Host Marriott Corp.<F2>........................................................................ 18,967,013
47,000 Kimco Realty Corp.............................................................................. 1,874,125
188,740 Mid-Atlantic Realty Trust...................................................................... 1,663,271
200,000 Saul Centers, Inc.............................................................................. 3,150,000
6,700 Simon Property Group, Inc...................................................................... 164,150
341,800 United Dominion Realty Trust................................................................... 4,870,650
484,200 Vornado Realty Trust........................................................................... 17,854,875
100,000 Weingarten Realty, Investors................................................................... 3,562,500
---------------
58,816,459
---------------
RETAIL - (2.90%)
850,000 Federated Department Stores, Inc.<F2>.......................................................... 24,118,750
335,000 Harcourt General, Inc.......................................................................... 15,075,000
1,500 Officemax, Inc................................................................................. 33,750
262,000 Sears, Roebuck & Co............................................................................ 8,547,750
---------------
47,775,250
---------------
<PAGE>
NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1995
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Value
Shares Security (Note 1)
------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
TELECOMMUNICATIONS - (2.83%)
525,000 Airtouch Communications<F2>.................................................................... $ 16,537,500
96,343 AT & T Corp.................................................................................... 5,082,093
148,000 Cellular Communications,Inc.<F2>............................................................... 7,659,000
700,000 MCI Communications Corp........................................................................ 16,756,250
10,000 SBC Communications, Inc........................................................................ 481,250
---------------
46,516,093
---------------
TRANSPORTATION - (0.76%)
191,000 Union Pacific Corp............................................................................. 12,438,875
---------------
UTILITIES - (0.12%)
10,000 Carolina Power & Light Co...................................................................... 303,750
12,000 Duke Power Co.................................................................................. 498,000
6,000 New England Electric System.................................................................... 201,750
8,000 San Diego Gas & Electric Co.................................................................... 171,000
12,000 SCEcorp........................................................................................ 205,500
16,800 Southern Co.................................................................................... 369,600
9,000 Wisconsin Energy Corp.......................................................................... 252,000
---------------
2,001,600
---------------
OTHER - (0.02%)
12,000 WMX Technologies Inc........................................................................... 375,000
---------------
Total Common Stocks - (identified cost $1,007,779,659)...................................... 1,499,351,483
---------------
PREFERRED STOCK - (4.66%)
50,000 Banc One Corp., Conv. Pfd. C $ 3.50............................................................ 2,837,500
232,920 Citicorp, $ 5.375, Ser. 13 Conv. Pfd........................................................... 39,800,205
1,625,300 News Corp. Ltd. (The), Sponsored ADR Pfd....................................................... 34,131,300
---------------
Total Preferred Stocks _ (identified cost $ 50,611,296)..................................... 76,769,005
<PAGE>
NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1995
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Value
Principal Security (Note 1)
------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - (0.59%)
$ 9,645,000 State Street Bank and Trust Company Repurchase Agreement, 5.62%
08/01/95 dated 07/28/95, repurchase value of $9,651,023 (collateralized
by $8,935,000 par value U.S. Treasury Notes, 8.00%, 08/15/99,
market value $9,843,217) - (identified cost $9,645,000)...................................... $ 9,645,000
---------------
OTHER SHORT TERM INVESTMENTS - (3.69%)
5,195,000 Federal National Mortgage Association Discount Note, 5.63%, 08/02/95........................... 5,194,187
5,000,000 Federal Home Loan Mortgage Corporation Discount Note, 5.65%, 08/03/95.......................... 4,998,431
5,000,000 Federal Home Loan Mortgage Corporation Discount Note, 5.65%, 08/07/95.......................... 4,995,292
3,950,000 Federal Home Loan Mortgage Corporation Discount Note, 5.65%, 08/08/95.......................... 3,945,660
7,000,000 Federal Farm Credit Bank Discount Note, 5.66%,08/09/95......................................... 6,991,196
12,500,000 Federal National Mortgage Association Discount Note, 5.69%, 08/10/95........................... 12,482,219
8,650,000 Federal Farm Credit Bank Discount Note, 5.66%, 08/11/95........................................ 8,636,400
13,610,000 Federal National Mortgage Association Discount Note, 5.69%, 08/14/95........................... 13,582,035
---------------
Total Other Short Term Investments - (identified cost $ 60,825,420)......................... 60,825,420
---------------
Total Investments - (identified cost $1,128,861,375)(100.01%) <F1>..................... 1,646,590,908
Liabilities Less Other Assets - (0.01%)................................................ (119,300)
---------------
Net Assets - (100%).................................................................... $ 1,646,471,608
---------------
---------------
<FN>
<F1> Aggregate cost for Federal Income Tax purposes is $1,127,086,717.
At July 31, 1995 unrealized appreciation (depreciation) of securities for
Federal Income Tax purposes was as follows:
Unrealized appreciation....................................................................... $ 534,828,343
Unrealized depreciation....................................................................... (15,324,152)
-------------
Net appreciation.............................................................................. $ 519,504,191
-------------
-------------
<F2> Non-Income Producing Security
<F3> This security is considered illiquid.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
<TABLE>
NEW YORK VENTURE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At July 31, 1995
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $1,128,861,375) (Note 1).............................. $ 1,646,590,908
Cash....................................................................................................... 155,910
Receivables:
Capital stock sold....................................................................................... 7,759,824
Dividends and interest................................................................................... 923,761
Investments sold......................................................................................... 1,431,432
Other assets............................................................................................... 260,317
---------------
Total assets........................................................................................... 1,657,122,152
---------------
LIABILITIES:
Payables:
Investment securities purchased.......................................................................... 8,017,891
Capital stock reacquired................................................................................. 1,350,488
Accrued expenses........................................................................................... 1,282,165
---------------
Total liabilities...................................................................................... 10,650,544
---------------
NET ASSETS................................................................................................... $ 1,646,471,608
---------------
---------------
Net assets consist of:
Undistributed net investment income........................................................................ $ 2,488,543
Unrealized appreciation on investments..................................................................... 517,729,533
Accumulated net realized gains............................................................................. 23,531,959
Paid-in capital............................................................................................ 1,102,721,573
---------------
Net assets............................................................................................. $ 1,646,471,608
---------------
---------------
CLASS A SHARES
Net assets............................................................................................... $ 1,594,885,497
Shares outstanding....................................................................................... 109,517,068
Net asset value and redemption price per share (net assets/shares outstanding)........................... $ 14.56
-------
-------
Maximum offering price per share (100/95.25 of14.56)..................................................... $ 15.29
-------
-------
CLASS B SHARES
Net assets............................................................................................... $ 39,856,765
Shares outstanding....................................................................................... 2,762,864
Net asset value and redemption price per share (net assets/shares outstanding) $ 14.43
-------
-------
CLASS C SHARES
Net assets............................................................................................... $ 11,729,346
Shares outstanding....................................................................................... 810,853
Net asset value and redemption price per share (net assets/shares outstanding)........................... $ 14.47
-------
-------
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
NEW YORK VENTURE FUND, INC.
STATEMENT OF OPERATIONS
For the year ended July 31, 1995
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Income:
Dividends................................................................................................ $ 23,546,731
Interest................................................................................................. 1,431,474
-------------
Total income........................................................................................... 24,978,205
Expenses:
Management fees (Note 3).................................................................. $ 7,587,812
Custodian fees............................................................................ 237,926
Transfer agent fees....................................................................... 930,249
Audit fees................................................................................ 39,450
Legal fees................................................................................ 211,335
Accounting fees (Note 3).................................................................. 51,668
Reports to shareholders................................................................... 97,519
Directors fees and expenses............................................................... 152,432
Registration and filing fees.............................................................. 198,058
Miscellaneous............................................................................. 210,335
Service fees paid under distribution plan (Note 4)
Class A................................................................................. 1,514,686
Class B................................................................................. 94,221
Class C................................................................................. 20,342
-----------
Total expenses....................................................................................... 11,346,033
-------------
Net investment income.............................................................................. 13,632,172
-------------
Realized and Unrealized Gain on Investments:
Net realized gain from investment transactions............................................................. 41,388,723
Net increase in unrealized appreciation of
investments during the yeaR............................................................................. 277,238,879
-------------
Net realized and unrealized gain on investments........................................................ 318,627,602
-------------
Net increase in net assets resulting from operations................................................... $ 332,259,774
-------------
-------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
NEW YORK VENTURE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the years ended
July 31,
---------------------
1995 1994
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income...................................................................... $ 13,632,172 $ 11,406,486
Net realized gain from investment transactions............................................. 41,388,723 22,927,330
Increase in unrealized appreciation ofinvestments.......................................... 277,238,879 11,888,171
Net increase in net assets resulting -------------- --------------
from operations........................................................................ 332,259,774 46,221,987
NET EQUALIZATION CREDITS (NOTE 1)............................................................ _ 318,401
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.12 and $0.16 per share,respectively)......................................... (11,143,629) (11,724,887)
Realized gains from investment transactions
Class A ($0.45 and $0.58 per share, respectively)........................................ (41,788,608) (42,836,272)
CAPITAL SHARE TRANSACTIONS (NOTE 5).......................................................... 290,365,315 346,101,988
-------------- --------------
Total increase in net assets............................................................. 569,692,852 338,081,217
NET ASSETS:
Beginning ofyear........................................................................... 1,076,778,756 738,697,539
-------------- --------------
End of year................................................................................ $1,646,471,608 $1,076,778,756
-------------- --------------
-------------- --------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management investment company.
The Fund's investment objective is growth of capital. The Fund invests
primarily in common stocks. There is no assurance that the investment
objective of the Fund will be achieved. The Fund invests in securities
subject to the risk of price fluctuations reflecting both market
evaluations of the businesses involved and general changes in the equity
markets. The Fund may invest in securities of foreign issuers and hedge
currency fluctuation risks related thereto. On December 1, 1994 the Fund
commenced the offering of shares in three classes, Class A, Class B and
Class C. The Class A shares are sold with a front-end sales charge and the
Class B and Class C shares are sold at net asset value and may be subject
to a contingent deferred sales charge upon redemption. All classes have
identical rights with respect to voting (exclusive of each Class's
distribution arrangement), liquidation and distributions. The following is
a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements.
Security Valuation - Securities traded on national securities exchanges
are valued at the published last sales prices on the exchange, or, in the
absence of recorded sales, at the average of closing bid and asked prices
on such exchange. Over-the-counter securities are valued at the average of
closing bid and asked prices. If no quotations are available, the fair value
of the investment is determined by or at the direction of the Board of
Directors. Investments in short-term securities (maturing in sixty days or
less) are valued at amortized cost unless the Board of Directors
determines that such cost is not a fair value.
Federal Income Taxes - It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its taxable
income to shareholders. Therefore, no provision for federal income tax is
required.
Equalization - The Company followed the accounting practice known as
equalization under which a portion of the proceeds from sales and costs of
repurchases of capital shares equivalent, on a per share basis, to the
amount of distributable investment income on the date of the transaction
was credited or charged to undistributed investment income. As a result,
undistributed investment income per share was unaffected by sales or
redemptions of the Company's shares. The Company discontinued the
practice in the current fiscal year. This change had no effect on net asset
value per share or net investment income.
Securities Transactions and Related Investment Income - Securities
transactions are accounted for on the trade date (date the order to buy or
sell is executed) with gain or loss on the sale of securities being
determined based upon identified cost. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis.
Dividends and Distributions to Shareholders - Dividends and distributions
to shareholders are recorded on the ex-dividend date.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities (excluding short-term
securities) for the year ended July 31, 1995, were $434,306,447 and
$228,531,804, respectively.
NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Advisory fees are paid monthly to the investment adviser at the
annual rate of .75 of 1% of the average daily net assets for the first $250
million, .65 of 1% of the average net assets on the next $250 million, and
.55 of 1% of the average daily net assets in excess of $500 million.
Pursuant to applicable state Blue Sky requirements, the adviser will
reimburse expenses (including the advisory fee but excluding interest,
taxes, brokerage fees and maintenance fees paid under
<PAGE>
NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1995
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
- (continued)
any Rule 12b-1 Distribution Plan) in excess of the most restrictive
applicable expense limitation prescribed by any statute or regulatory
authority of any jurisdiction in which the Fund's shares are qualified for
offer and sale. The Adviser believes that the most restrictive expense
limitations presently applicable are 2 1/2% for the first $30 million of
average net assets, 2% for the next $70 million of average net assets and
1 1/2% for any additional average net assets. Selected/Venture
Advisers, L.P. is paid for registering Fund shares for sale in various
states. The fee for the year ended July 31, 1995 amounted to $9,336.
Selected/Venture Advisers, L.P. is paid for certain transfer agent
services. The fee for the year ended July 31, 1995 amounted to $77,178.
Selected/Venture Advisers, L.P. is also paid for certain accounting
services. The fee amounted to $51,668 for the year ended July 31, 1995.
Certain directors and the officers of the Fund are also directors and
officers of the general partner of the Adviser.
NOTE 4 - DISTRIBUTION AND UNDERWRITING FEES
CLASS A SHARES
Class A shares of the Fund are sold at net asset value plus a sales
charge and are redeemed at net asset value (without a contingent deferred
sales charge).
During the year ended July 31, 1995, the Fund's Underwriter,
Selected/Venture Advisers, L.P., received $5,230,889 from commissions
earned on sales of Class A shares of the Fund of which $826,789 was
retained by the Underwriter and the remaining $4,404,100 was reallowed
to investment dealers. Selected/Venture Advisers, L.P. paid the costs of
prospectuses in excess of those required to be filed as part of the Fund's
registration statement, sales literature and other expenses assumed or
incurred by it in connection with such sales.
The Underwriter is reimbursed for amounts paid to dealers as a
maintenance fee with respect to Class A shares sold by dealers and
remaining outstanding during the period. The maintenance fee is paid at
the annual rate of 1/4 of 1% of the average net assets maintained by the
responsible dealers. The Underwriter is not reimbursed for accounts in
which the Underwriter pays no service fees to other firms. The
maintenance fee for Class A shares of the Fund for the year ended July 31,
1995 was $1,514,686.
CLASS B SHARES
Class B shares of the Fund are sold at net asset value and are
redeemed at net asset value less a contingent deferred sales charge if
redeemed within six years of purchase.
The Fund pays the Distributor a 4% commission on the proceeds from
the sale of the Fund's Class B shares and the Distributor reallows 4% to
the qualified dealer responsible for the sale of the shares. A rule
implemented by the National Association of Securities Dealers, Inc.,
("NASD") limits the percentage of the Fund's annual average net assets
attributable to Class B shares which may be used to reimburse the
Distributor. The limit is 1%, of which 0.75% may be used to pay
distribution expenses and 0.25% may be used to pay shareholder service
fees. The NASD rule also limits the aggregate amount the Fund may pay
for distribution to 6.25% of gross Fund sales since inception of the Rule
12b-1 plan plus interest at 1% over the prime rate on unpaid amounts. The
Distributor intends to seek full payment (plus interest at prime plus 1%)
of distribution charges that exceed the 1% annual limit in some future
period or periods when the plan limits have not been reached.
<PAGE>
NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1995
--------------------------------------------------------------------------
--------------------------------------------------------------------------
CLASS B SHARES - (Continued)
During the eight months ended July 31, 1995, Class B shares of the
Fund made distribution plan payments which included commissions of
$70,778 and maintenance fees of $23,443.
Commissions earned by the Distributor during the eight months
ended July 31, 1995 on the sale of Class B shares of the Fund amounted to
$1,355,528 of which $1,319,979 was reallowed to qualified selling
dealers.
The Distributor intends to seek payment from Class B shares of the
Fund in the amount of $1,309,330, representing the cumulative
commissions earned by the Distributor on the sale of the Fund's Class B
shares reduced by cumulative commissions paid by the Fund and
cumulative contingent deferred sales charge paid by redeeming
shareholders. The Fund has no contractual obligation to pay any such
distribution charges and the amount, if any, timing and condition of such
payment are solely within the discretion of the Directors who are not
interested persons of the Fund or the Distributor.
A contingent deferred sales charge is imposed upon redemption of
certain Class B shares of the Fund within six years of the original
purchase. The charge is a declining percentage starting at 4% of the
lesser of net asset value of the shares redeemed or the total cost of such
shares. During the eight months ended July 31, 1995 the Distributor
received $5,653 in contingent deferred sales charges from Class B shares
of the Fund.
CLASS C SHARES
Class C shares of the Fund are sold at net asset value and are
redeemed at net asset value less a contingent deferred sales charge of 1%
if redeemed within one year of purchase.
The Fund pays the Distributor 1% of the Fund's annual average net
assets attributable to Class C shares, of which 0.75% may be used to pay
distribution expenses and 0.25% may be used to pay shareholder service
fees.
During the period ended July 31, 1995, Class C shares of the Fund
made distribution payments which included commissions of $19,472 and
maintenance fees of $870.
During the period ended July 31, 1995, no contingent deferred sales
charges were assessed.
NOTE 5 - CAPITAL STOCK
At July 31, 1995, there were 200,000,000 shares of capital stock
($0.05 par value per share) authorized.
Transactions in capital stock were as follows (exclusive of amount
allocated to income included in price of capital stock repurchased and
sold):
<TABLE>
Class A
-------
Year Ended Year Ended
July 31, 1995 July 31, 1994
------------- -------------
<CAPTION>
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed............................... 30,818,877 $ 383,332,884 33,282,546 $ 407,267,158
Shares issued in reinvestment ofdistributions... 3,473,189 38,136,033 3,152,405 36,757,041
------------ -------------- ---------- -------------
34,292,066 421,468,917 36,434,951 444,024,199
Shares reacquired............................... (14,245,169) (177,467,140) (8,100,946) (97,922,211)
----------- ------------- ---------- -------------
Net increase.................................. 20,046,897 $ 244,001,777 28,334,005 $ 346,101,988
----------- ------------- ---------- -------------
----------- ------------- ---------- -------------
</TABLE>
<PAGE>
NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1995
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
Class B
------- December 1, 1994
(Commencement of
operations) through Year Ended
July 31, 1995 July 31, 1994
------------------- -------------
<CAPTION>
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed................................ 2,906,812 $ 37,543,414 _ $ _
Shares issued in reinvestment of distributions... _ _ _ -
--------- ------------ ----- --------
2,906,812 37,543,414 _ _
Shares reacquired................................ (143,948) (1,996,206) _ _
--------- ------------ ----- --------
Net increase................................... 2,762,864 $ 35,547,208 _ $ _
--------- ------------ ----- --------
--------- ------------ ----- --------
</TABLE>
<TABLE>
Class C
------- December 20, 1994
(Commencement of
operations) through Year Ended
July 31, 1995 July 31, 1994
------------------- ----------------
<CAPTION>
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed............................... 813,212 $ 10,849,274 _ $ _
Shares issued in reinvestment of distributions.. _ _ _ _
---------- ------------ ---------- ----------
813,212 10,849,274 _ _
Shares reacquired............................... (2,359) (32,944) _ _
---------- ------------ ---------- ----------
Net increase.................................. 810,853 $ 10,816,330 _ $ _
---------- ------------ ---------- ----------
---------- ------------ ---------- ----------
</TABLE>
<PAGE>
NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS
Financial Highlights for a share of capital stock outstanding throughout each
period.
<TABLE>
_________________________CLASS A_______________________ CLASS B CLASS C
------- -------
<CAPTION>
December December
1, 1994 20, 1994
(Commencement (Commencement
of operations) of operations)
Year ended July 31, through through
--------------------------------------------------------
1995 1994 1993 1992 1991 7/31/95 7/31/95
---- ---- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period............ $ 12.04 $ 12.08 $ 10.70 $ 9.85 $ 9.39 $ 10.88 $ 11.16
------- ------- ------- ------ ------ ------- -------
Income From Investment Operations
---------------------------------
Net Investment Income.......... .14 .16 .10 .14 .16 (.01) (.01)
Net Gains on Securities
(both realized and
unrealized)................. 2.95 .54 1.98 1.57 1.02 3.56 3.32
------- ------- ------- ------ ------ ------- -------
Total From Investment
Operations................ 3.09 .70 2.08 1.71 1.18 3.55 3.31
Less Distributions
------------------
Dividends (from net
investment income)........... (.12) (.16) (.10) (.21) (.18) _ _
Distributions From
Realized Capital
Gains........................ (.45) (.58) (.59) (.55) (.50) _ _
Distributions From
Paid In Capital.............. _ _ (.01) (.10) (.04) _ _
------- ------- ------- ------ ------ ------- -------
Total Distributions.......... (.57) (.74) (.70) (.86) (.72) _ _
------- ------- ------- ------ ------ ------- -------
Net Asset Value,
End of Period................. $ 14.56 $ 12.04 $ 12.08 $10.70 $ 9.85 $ 14.43 $ 14.47
------- ------- ------- ------ ------ ------- -------
------- ------- ------- ------ ------ ------- -------
Total Return<F1>................. 27.21% 5.99% 20.20% 18.62% 14.29% 26.07%<F2> 26.42%<F2>
------------
Ratios/Supplemental Data
------------------------
Net Assets, End of
Period (000 omitted)......... 1,594,885 1,076,779 738,698 494,179 421,214 39,857 11,729
Ratio of Expenses
to Average Net
Assets....................... .90% .87% .89% .91% .97% 1.78%<F2> 1.78%<F2>
Ratio of Net Income
to Average Net
Assets........................ 1.11% 1.19% .85% 1.36% 1.84% .23%<F2> .23%<F2>
Portfolio Turnover
Rate.......................... 15% 13% 24% 26% 52% 15% 15%
<FN>
<F1> Sales charges are not reflected in calculation.
<F2> Annualized.
</FN>
</TABLE>
<PAGE>
NEW YORK VENTURE FUND, INC.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
----------------------------------------------------------------------------
To the Shareholders and Board of Directors
of New York Venture Fund, Inc.
We have audited the accompanying statement of assets and
liabilities of New York Venture Fund, Inc., including the schedule of
portfolio investments, as of July 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 1995, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of New York Venture Fund, Inc. as of July 31, 1995, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
August 31, 1995
<PAGE>
NEW YORK VENTURE
FUND, INC.
124 East Marcy Street Santa Fe, New Mexico 87501
-------------------------------------------------
-------------------------------------------------
Directors Officers
Wesley E. Bass, Jr. Jeremy H. Biggs
Jeremy H. Biggs Chairman
Marc P. Blum Shelby M. C. Davis
Shelby M.C. Davis President
Eugene M. Feinblatt Carl R. Luff
Jerry D. Geist Vice President, Treasurer
D. James Guzy & Assistant Secretary
G. Bernard Hamilton Raymond O. Padilla
LeRoy E. Hoffberger Vice President, Secretary
Laurence W. Levine & Assistant Treasurer
Martin H. Proyect Carolyn H. Spolidoro
Christian R. Sonne Vice President
Edwin R. Werner Louis R. Proyect
Vice President
B. Clark Stamper
Vice President
Andrew A. Davis
Vice President
Eileen R. Street
Assistant Treasury
& Assistant Secretary
Investment Adviser & Distributor
Selected/Venture Advisers, L.P.
124 East Marcy Street
Santa Fe, New Mexico 87501
Transfer Agent & Custodian
State Street Bank and Trust Company
c/o The Venture Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406
Counsel
D'Ancona & Pflaum
30 North LaSalle Street
Chicago, Illinois 60602
Auditors
Tait, Weller & Baker
Two Penn Center Plaza, Suite 700
Philadelphia, Pennsylvania 19102-1707
--------------------------------------------
--------------------------------------------
For more information about New York Venture
Fund, Inc. including management fee, charges
and expenses, see the current prospectus
which must precede or accompany this report.
--------------------------------------------
--------------------------------------------
9509-50 NYV80
