NICHOLAS II, INC.
May 19, 1995
Report to Shareholders:
Nicholas II closed with a net asset value per share of $26.61,
an 8.31% gain for the six month period ended March 31, 1995,
with distributions reinvested. During the same period, the
NASDAQ OTC and Russell 2000 small cap index returned 6.93% and
2.65%, respectively. The chart below shows results for the
time periods ended March 31, 1995:
<TABLE>
<CAPTION>
Average Annual
First Total Return*
Calendar ______________________________
Quarter 1 Year 5 Years 10 Years
________ _______ _______ ________
<S> <C> <C> <C> <C>
Nicholas II
(Distributions Reinvested) +8.79% +13.22% +11.57% +12.48%
NASDAQ OTC Composite
(Excludes Income) +8.68% +9.92% +13.41% +11.34%
Standard & Poor's 500
(Income Reinvested) +9.73% +15.54% +11.41% +14.44%
Russell 2000
Includes Income) +4.61% +5.50% +11.69% +10.60%
Consumer Price Index +0.8% +2.6% +3.3% 3.6%
Ending value of $10,000
invested in Nicholas II
(Distributions Reinvested) $10,879 $11,322 $17,284 $32,413
*Total returns are historical and include change in share price
and reinvestment of dividend and capital gain distributions.
Past performance is no guarantee of future results. Principal
value and return will fluctuate so an investment, when
redeemed, may be worth more or less than original cost.
Nicholas II's performance in the first calendar quarter of 1995
was in line with the larger company indexes (S&P 500 and NASDAQ
OTC) and moderately outperformed the smaller company index
(Russell 2000). During the quarter, money managers moved into
large capitalization growth companies due to fears of an
economic slowdown which caused our quality growth portfolio to
perform well. We prefer, however, to focus on the long-term
performance of the Fund which can be seen in the table above.
The price increase for Nicholas II has raised the Fund's
dollar-weighted price/earnings ratio from 18.4 times at the end
of 1994 to 20.0 times at March 31, 1995. At this point, we
feel that market valuations are high on a short-term basis.
However, we will continue to invest cautiously for long-term
growth with an eye toward capital preservation. At March 31,
1995, the Fund had $638 million in assets and a cash position
of 5.3%.
Management and all our staff appreciate your patient and
continued support.
Sincerely,
David O. Nicholas
Portfolio Manager
Schedule of Investments
March 31, 1995 (unaudited)
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ __________
(Note 1 (a))
<S> <C>
COMMON STOCKS - 94.7%
Banks and Finance - 11.5%
244,819 Associated Banc-Corp $ 8,844,086
140,000 Countrywide Credit Industries, Inc. 2,432,500
123,750 Fifth Third Bancorp 6,404,063
598,600 Firstar Corporation 17,658,700
693,600 First Financial Corporation 10,924,200
7,403 First National Bank of Anchorage (The) 11,289,575
315,000 Litchfield Financial Corporation + 3,465,000
592,900 Marshall & Ilsley Corporation 12,450,900
___________
73,469,024
___________
Broadcasting - 0.3%
85,000 British Sky Broadcasting Group plc * 2,093,125
___________
Business Services - 10.8%
110,000 Alco Standard Corporation 7,975,000
165,000 Danka Business Systems PLC 4,331,250
632,500 FIserv, Inc. * 16,761,250
419,062 G&K Services, Inc. - Class A 7,752,647
963,675 Keane, Inc. * 23,369,119
173,900 Programming and Systems, Inc. *
(Note 1 (a)) -
191,300 SPS Transaction Services, Inc. * 6,695,500
150,700 UniFirst Corporation 1,770,725
___________
68,655,491
___________
Consumer Products and Services - 3.9%
69,000 Amway Asia Pacific Ltd. 2,570,250
163,800 Loewen Group Inc. (The) 4,463,550
440,850 Newell Co. 11,241,675
175,600 Valspar Corporation (The) 6,519,150
___________
24,794,625
___________
Environmental Services - 0.4%
285,000 Waste Management International plc * 2,351,250
___________
Food and Beverage - 3.5%
120,000 Outback Steakhouse, Inc. * 3,045,000
210,000 Panamerican Beverages, Inc. -
Class A Nonvoting 5,486,250
222,816 Tootsie Roll Industries, Inc. 14,093,112
___________
22,624,362
___________
Food Retailer - 1.5%
350,900 Hannaford Bros. Co. 9,386,575
___________
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ __________
(Note 1 (a))
<S> <C>
Health Care - 22.6%
49,000 Amgen Inc. * $ 3,301,375
312,650 Block Drug Company, Inc. - Class A 10,942,750
502,260 Boston Scientific Corporation * 12,368,153
323,750 Cardinal Health, Inc. 15,418,594
283,400 DENTSPLY International Inc. * 9,848,150
200,600 Elan Corporation, plc * 7,472,350
220,000 Forest Laboratories, Inc. * 10,477,500
1,032,975 Health Management Associates, Inc. -
Class A * 29,827,153
264,400 Hooper Holmes, Inc. 2,677,050
271,600 Patterson Dental Company * 6,790,000
150,000 Sofamor/Danek Group, Inc. * 3,675,000
472,500 Sullivan Dental Products, Inc. * + 7,678,125
93,250 Vencor, Inc. * 3,322,031
642,637 Vivra Incorporated * 20,725,043
___________
144,523,274
___________
Industrial Products and Services - 14.5%
129,500 Betz Laboratories, Inc. 5,665,625
330,300 Crompton & Knowles Corporation 5,532,525
163,500 IDEX Corporation 4,884,562
91,600 McWhorter Technologies, Inc. * 1,465,600
420,250 Schulman (A.), Inc. 12,817,625
276,300 Sigma-Aldrich Corporation 10,706,625
346,950 Teleflex Incorporated 13,964,738
611,000 Unifi, Inc. 16,497,000
174,564 Vishay Intertechnology, Inc. * 9,797,404
495,000 Watts Industries, Inc. - Class A 10,890,000
___________
92,221,704
___________
Insurance - 11.7%
110,000 Foremost Corporation of America 4,070,000
157,300 Healthsource, Inc. * 7,452,088
241,800 John Alden Financial Corporation 4,443,075
387,500 MGIC Investment Corporation 15,790,625
464,400 Mutual Risk Management Ltd. 12,945,150
118,500 PacifiCare Health Systems, Inc. * 8,561,625
232,500 Protective Life Corporation 10,811,250
274,500 United Wisconsin Services, Inc. 10,808,437
___________
74,882,250
___________
Investment Management - 0.5%
90,000 United Asset Management Corporation 3,453,750
___________
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ __________
(Note 1 (a))
<S> <C>
COMMON STOCKS - 94.7% (Continued)
Retail Trade - 10.2%
419,000 Arbor Drugs, Inc. $ 9,951,250
435,000 Circuit City Stores, Inc. 11,473,125
542,500 Consolidated Stores Corporation * 10,917,813
466,500 Heilig-Meyers Company 10,204,687
207,200 Kohl's Corporation * 9,168,600
315,000 Medicine Shoppe International, Inc. 9,528,750
141,000 OfficeMax, Inc. 3,613,125
___________
64,857,350
___________
Transportation - 3.3%
494,000 Expeditors International of
Washington, Inc. 10,374,000
220,000 Heartland Express, Inc. * 6,105,000
243,000 Werner Enterprises, Inc. 4,860,000
___________
21,339,000
___________
TOTAL COMMON STOCKS
(cost $382,323,057) 604,651,780
___________
</TABLE>
<TABLE>
<S> <C>
SHORT-TERM INVESTMENTS - 5.2%
Commercial Paper - 4.1%
$5,500,000 A.O. Smith Corporation,
6.20%, due April 3, 1995 5,500,000
6,500,000 Houston Industries Inc.,
6.125%, due April 6, 1995 6,496,682
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ __________
Note 1 (a))
<S> <C>
Commercial Paper - 4.1% (Continued)
$4,500,000 Marriott International, Inc.,
6.13%, due April 17, 1995 $ 4,489,273
4,500,000 Quad/Graphics, Inc.,
6.20%, due April 20, 1995 4,486,825
5,000,000 FIserv, Inc.,
6.20%, due April 24, 1995 4,981,916
___________
25,954,696
___________
Variable Demand Notes - 1.1%
6,940,000 Sara Lee Corporation,
5.71%, due April 3, 1995 6,940,000
___________
TOTAL SHORT-TERM
INVESTMENTS
(cost $32,754,354) 32,894,696
___________
TOTAL INVESTMENTS 637,546,476
___________
CASH AND RECEIVABLES, NET OF
LIABILITIES - 0.1% 837,877
___________
TOTAL NET ASSETS (Basis of
percentages disclosed
above) $638,384,353
___________
___________
</TABLE>
*Nondividend paying security
+This company is affiliated with the Fund as defined in Section 2(a)(2)-(3)
of the Investment Company Act of 1940, in that the Fund holds 5% or more
of its outstanding voting securities. (Note 5)
The accompanying notes to financial statements are an integral
part of this schedule.
Statement of Assets and Liabilities
March 31, 1995 (unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value (Note 1(a)) -
Nonaffiliated issuers (cost $404,535,535) - see
accompanying schedule of investments $626,403,351
Affiliated issuers (cost $10,541,876) - see
accompanying schedule of investments (Note 5)
11,143,125
___________
Total investments 637,546,476
___________
Receivables -
Dividends and interest 460,788
Investment securities sold 4,085,240
___________
Total receivables 4,546,028
___________
Total assets 642,092,504
___________
LIABILITIES:
Payables -
Investment securities purchased 2,713,245
Management fee (Note 2) 301,733
Other payables and accrued expenses 693,173
___________
Total liabilities 3,708,151
___________
Total net assets $638,384,353
___________
___________
NET ASSETS CONSIST OF:
Fund shares issued and outstanding $392,242,418
Net unrealized appreciation on investments (Note 3) 222,328,723
Accumulated undistributed net realized gains on
investments 22,759,208
Accumulated undistributed net investment income 1,054,004
___________
$638,384,353
___________
___________
NET ASSET VALUE PER SHARE ($.01 par value, 200,000,000
shares authorized) offering price and redemption
price ($638,384,353 ./. 23,992,675 shares outstanding) $26.61
_____
_____
</TABLE>
The accompanying notes to financial statements are an integral
part of this statement.
Statement of Operations
For the six months ended March 31, 1995 (unaudited)
<TABLE>
<S> <C>
INCOME:
Dividends -
Nonaffiliated issuers $ 3,260,026
Affiliated issuers (Note 5) 9,450
Interest 934,180
__________
4,203,656
__________
EXPENSES:
Management fee (Note 2) 1,611,548
Transfer and disbursing agent fees 292,321
Postage 42,530
Custodian fees 36,139
Registration fees 30,207
Printing 27,066
Legal fees 15,901
Telephone 6,113
Directors' fees 6,000
Insurance 4,958
Other operating expenses 3,740
__________
2,076,523
__________
Net investment income 2,127,133
__________
NET REALIZED GAINS ON INVESTMENTS (Note 1(b)):
Nonaffiliated issuers 28,785,033
Affiliated issuers (Note 5) -
__________
28,785,033
__________
NET INCREASE IN UNREALIZED APPRECIATION ON
INVESTMENTS 18,090,385
__________
Net gains on investments 46,875,418
__________
Net increase in net assets resulting
from operations $49,002,551
__________
__________
</TABLE>
The accompanying notes to financial statements are an integral
part of this statement.
Statements of Changes in Net Assets
For the six months ended March 31, 1995 (unaudited) and the
year ended September 30, 1994
<TABLE>
<CAPTION>
1995 1994
_____________ _____________
<S> <C> <C>
OPERATIONS:
Net investment income $ 2,127,133 $ 4,759,460
Net realized gains on investments (Note 1(b)) 28,785,033 39,661,906
Net increase (decrease) in unrealized
appreciation on investments 18,090,385 (8,089,870)
___________ ___________
Net increase in net assets resulting from
operations 49,002,551 36,331,496
___________ ___________
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
($0.2056 and $0.2000 per share, respectively) (4,696,388) (5,077,717)
Distributions from net realized gains on
investment transactions ($1.8944 and $1.4700
per share, respectively) (43,254,534) (37,294,772)
___________ ___________
Total distributions (47,950,922) (42,372,489)
___________ ___________
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued (756,376 and
1,790,597 shares, respectively) 19,478,578 47,450,393
Net asset value of shares issued in distributions
from net investment income and net realized
gains (1,867,730 and 1,509,156 shares,
respectively) 45,012,292 39,373,882
Cost of shares redeemed (2,022,999 and 6,478,915
shares, respectively) (51,830,716) (171,891,349)
___________ ___________
Increase (decrease) in net assets
derived from capital share transactions 12,660,154 (85,067,074)
___________ ___________
Total increase (decrease) in net assets 13,711,783 (91,108,067)
___________ ___________
NET ASSETS, at the beginning of the period
(including undistributed net investment income
of $3,623,259 and $3,941,516, respectively) 624,672,570 715,780,637
___________ ___________
NET ASSETS, at the end of the period (including
undistributed net investment income of
$1,054,004 and $3,623,259, respectively) $638,384,353 $624,672,570
___________ ____________
___________ ____________
</TABLE>
The accompanying notes to financial statements are an integral
part of these statements.
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
March 31, Year Ended September 30,
1995
______________________________________________________
(unaudited) 1994 1993 1992 1991 1990
___________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $26.71 $26.94 $24.53 $23.87 $17.39 $21.76
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .32 .21 .21 .23 .26 .36
Net gains or (losses) on securities
(realized and unrealized) 1.68 1.23 3.24 1.07 6.70 (3.75)
_____ _____ _____ _____ _____ _____
Total from investment operations 2.00 1.44 3.45 1.30 6.96 (3.39)
_____ _____ _____ _____ _____ _____
LESS DISTRIBUTIONS:
Dividends (from net investment income) (.21) (.20) (.24) (.24) (.34) (.31)
Distributions (from capital gains) (1.89) (1.47) (.80) (.40) (.14) (.67)
_____ _____ _____ _____ _____ _____
Total distributions (2.10) (1.67) (1.04) (.64) (.48) (.98)
_____ _____ _____ _____ _____ _____
NET ASSET VALUE, END OF PERIOD $26.61 $26.71 $26.94 $24.53 $23.87 $17.39
_____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____
TOTAL RETURN 8.31%** 5.49% 14.19% 5.59% 40.91% (16.14%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) $638.4 $624.7 $715.8 $646.5 $490.9 $336.5
Ratio of expenses to average net assets .68%* .67% .67% .66% .70% .71%
Ratio of net investment income to
average net assets .70%* .72% .79% 1.01% 1.24% 1.78%
Portfolio turnover rate 17.48%* 17.38% 27.32% 11.47% 12.46% 18.78%
</TABLE>
* Annualized
** Not annualized
The accompanying notes to financial statements are an integral
part of these statements.
Historical Record (unaudited)
<TABLE>
<CAPTION>
Dollar Growth of
Net Dividend Capital Gain Weighted An Initial
Asset Value Distributions Distributions Price/Earnings $10,000
Per Share Per Share Per Share Ratio** Investment***
___________ _____________ _____________ ______________ __________
<S> <C> <C> <C> <C> <C>
October 17, 1983* $10.00 $ - $ - - $10,000
September 30, 1985 14.39 .093 .186 11.7 times 14,742
September 30, 1986 16.90 .163 .061 15.0 17,581
September 30, 1987 21.01 .420 .513 20.9 23,108
September 30, 1988 18.58 .338 1.303 15.0 22,766
September 30, 1989 21.76 .335 .080 17.1 27,291
September 30, 1990 17.39 .3124 .6686 14.8 22,888
September 30, 1991 23.87 .3422 .1434 17.8 32,251
September 30, 1992 24.53 .2447 .4042 17.3 34,054
September 30, 1993 26.94 .2350 .8000 18.1 38,885
September 30, 1994 26.71 .2000 (a) 1.4700 (a) 18.5 41,020
December 31, 1994 24.46 .2056 (b) 1.8944 (b) 18.4 40,838
March 31, 1995 26.61 - - 20.0 44,428
* Date of Initial Public Offering (a) Paid December 31, 1993 to shareholders of record December 28, 1993.
** Based on latest 12 months accomplished earnings
*** Assuming reinvestment of all distributions (b) Paid December 31, 1994 to shareholders of record December 27, 1994.
</TABLE>
Range in price/earnings ratios
High 25.4 Low 11.6
August 6, 1987 October 8, 1985
Notes to Financial Statements
March 31, 1995 (unaudited)
(1) Summary of Significant Accounting Policies -
The following is a summary of the significant accounting policies of
Nicholas II, Inc. (the "Fund"):
(a) Each security, excluding short-term investments, is valued at the
last sale price reported by the principal security exchange on
which the issue is traded, or if no sale is reported, the latest
bid price. Variable demand notes are valued at cost which
approximates market value. U.S. Treasury Bills and commercial paper
are stated at market value with the resultant difference between
market value and original purchase price being recorded as interest
income. Investment transactions are recorded no later than the first
business day after the trade date. Cost amounts, as reported on the
schedule of investments and the statement of assets and liabilities,
are the same for Federal income tax purposes.
On June 18, 1992, the Securities and Exchange Commission suspended
trading of the common stock of Programming and Systems, Inc.,
(the "Company") because of information received questioning the
accuracy of the Company's financial statements. Following the
release of this information, the Company's common stock was delisted
by NASDAQ and, as such, is nontradable. To date, this matter has not
been resolved. The Board of Directors of the Fund have deemed the
shares worthless until additional information, including audited
financial statements, is released by the Company.
(b) Net realized gains and losses on common stocks and bonds were
computed on the basis of specific certificates.
(c) Provision has not been made for Federal income taxes or excise taxes
since the Fund has elected to be taxed as a "regulated investment
company" and intends to distribute substantially all taxable income
to its shareholders and otherwise comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies.
(d) Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends, if any, are recorded at
fair market value on date of distribution.
(2) Investment Adviser and Management Agreement -
The Fund has an agreement with Nicholas Company, Inc. (with whom certain
officers and directors of the Fund are affiliated) to serve as
investment adviser and manager. Under the terms of the agreement, a
monthly fee is paid to the investment adviser based on 1/16th of 1%
(.75 of 1% on an annual basis) of the average net asset value up to and
including $50 million, 1/20th of 1% (.6 of 1% on an annual basis) of the
average net asset value over $50 million up to and including $100 million
and 1/24th of 1% (.5 of 1% on an annual basis) of the average net asset
value in excess of $100 million. Also, the investment adviser may be
reimbursed for clerical and administrative services rendered by its
personnel. The advisory agreement is subject to an annual review by the
Directors of the Fund.
(3) Net Unrealized Appreciation -
Aggregate gross unrealized appreciation (depreciation) as of March 31,
1995, based on investment cost for Federal tax purposes is as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation on investments $235,465,420
Aggregate gross unrealized depreciation on investments (13,136,697)
___________
Net unrealized appreciation $222,328,723
___________
___________
</TABLE>
(4) Investment Transactions -
For the period ended March 31, 1995, the cost of purchases and the
proceeds from sales of investment securities, other than short-term
obligations, aggregated $51,028,173 and $80,491,550, respectively.
(5) Transactions with Affiliates -
Following is an analysis of 1995 transactions with "affiliated
companies" as defined by the Investment Company Act of 1940:
<TABLE>
<CAPTION>
Amount of
Dividends
Share Activity Credited
_______________________________________________ to Income
Balance Balance in Fiscal
Security Name 9/30/94 Purchases Sales 3/31/95 1995
_____________ _______ _________ _____ _______ _________
<S> <C> <C> <C> <C> <C>
Litchfield Financial Corporation 315,000 - - 315,000 $9,450
Sullivan Dental Products, Inc. 472,500 - - 472,500 -
_____
$9,450
_____
_____
</TABLE>
Automatic Investment Plan - An Update
The Nicholas Family of Funds' Automatic Investment Plan provides a simple
method to dollar cost average into the fund(s) of your choice. Dollar cost
averaging involves making equal systematic investments over an extended time
period. A fixed dollar investment will purchase more shares when the market
is low and fewer shares when the market is high. The automatic investment
plan is an excellent way for you to become a disciplined investor.
The following table illustrates what dollar cost averaging can achieve.
Please note that past performance is no guarantee of future results. Nicholas
Company recommends dollar cost averaging as a practical investment method.
It should be consistently applied for long periods (5-10 years or more) so
that investments are made through several market cycles. The table will be
updated and appear in future financial reports issued by the Nicholas Family
of Funds.
<TABLE>
<CAPTION>
Nicholas II
___________
<S> <C>
$1,000 initial investment on 10-17-83
$100 invested on the last day of each month
following the date of the initial investment
(in years) 11.5
Total cash invested $14,800
Total capital gains reinvested $ 5,977
Total dividends reinvested $ 2,154
Total full shares owned 3/31/95 1,233
Total market value on 3/31/95 $32,804
</TABLE>
The results above assume purchase on the last day of the month for the
respective periods. The Nicholas Automatic Investment Plan actually invests
on the 20th of each month. Total market value includes reinvestment of all
distributions.
CAN YOU AFFORD NOT TO INVEST IN AN IRA?
The maximum yearly IRA contribution is the lesser of $2,000 or 100% of your
compensation. Every year that you contribute this amount you may also deduct
it from your Federal income taxes, unless you (or your spouse) are an eligible
participant in an employer-sponsored retirement plan and your adjusted gross
income exceeds certain limits as defined by the Internal Revenue Code. This
deduction can lead to substantial savings, especially when you look at the
relationship between higher tax brackets and the net cost of investing. The
table below illustrates a schedule of tax brackets, resulting tax savings,
and the net cost of investing $2,000 in an IRA, assuming full deductibility
of your contributions.
<TABLE>
<CAPTION>
TABLE I
Federal Tax Federal Tax Net Cost of Investing
Brackets Savings $2,000 in an IRA
___________ ___________ _____________________
<C> <C> <C>
15% $300 $1,700
28% 560 1,440
31% 620 1,380
36% 720 1,280
39.6% 792 1,208
</TABLE>
Even if you are an eligible participant in an employer-sponsored retirement
plan, you may still make a non-deductible IRA contribution (subject to the
$2,000/100% of compensation limit). Another tax advantage to investing in an
IRA is that any amounts received from dividends, interest, etc., accumulate
tax deferred, whether or not your contribution is fully deductible. Taxes will
have to be paid when you receive distributions.
Finally, Table II shows the various amounts accumulated in an IRA under
different annual rates of return, based on a $2,000 annual year end
contribution. These figures are purely hypothetical since investment returns
are rarely constant year to year. Yet, one can get a good idea that investing
in an IRA plan provides a good nest egg for retirement.
<TABLE>
<CAPTION>
TABLE II
Amounts accumulated in an IRA
Annual Rates of Return
_________________________________________________
After 8% 10% 12% 15%
_____ ________ ________ ________ ________
<C> <C> <C> <C> <C>
10 Years $ 28,973 $ 31,874 $ 35,096 $ 40,606
20 Years 91,524 114,550 144,104 204,880
30 Years 226,566 328,980 482,660 869,480
40 Years 518,113 885,180 1,534,180 3,558,000
</TABLE>
SEMIANNUAL REPORT
NICHOLAS II, INC.
Officers and Directors
ALBERT O. NICHOLAS
President and Director
ROBERT H. BOCK
Director
MELVIN L. SCHULTZ
Director
RICHARD SEAMAN
Director
DAVID L. JOHNSON
Executive Vice President
THOMAS J. SAEGER
Executive Vice President and Secretary
DAVID O. NICHOLAS
Senior Vice President
LYNN S. NICHOLAS
Senior Vice President
CHERYL L. KING
Treasurer and Vice President
CANDACE L. LESAK
Vice President
JEFFREY T. MAY
Vice President
JOHN J. OOHARE
Vice President
KATHLEEN A. EVANS
Assistant Vice President
Custodian and Transfer Agent
FIRSTAR TRUST COMPANY
Milwaukee
(414) 276-0535
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 an effective
prospectus.
700 North
Water Street
Milwaukee,
Wisconsin 53202
March 31, 1995
