PC&J PERFORMANCE FUND
Semi-Annual Report
to Shareholders
June 30, 1996
The PC&J Performance Fund is a registered investment
company under the Investment Company Act of 1940 and, for
your protection, is regulated by the Securities and Exchange
Commission. The enclosed 1996 Semi-Annual Report is for
your information and is provided to you in compliance with
ongoing Securities and Exchange Commission regulations.
This report requires no action on your part. Please give us
a call if you have any questions.
/s/
--------------------------
James Johnson
Secretary
/s/
--------------------------
Kathleen Carlson
Treasurer
<PAGE>
PC&J PERFORMANCE FUND
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FINANCIAL HIGHLIGHTS
The information contained in the table below for the years ended December 31,
1995, 1994, 1993, and 1992 have been derived from data contained in financial
statements examined by Deloitte & Touche, independent certified public
accountants. The information for the six months ended June 30, 1996 have been
derived from data contained in the unaudited financial statements but which are
believed to include all adjustments necessary for a fair presentation. Such
information should be read in conjunction with the enclosed financial
statements.
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<TABLE>
<CAPTION>
Selected Data for Each Share of
Capital Stock Outstanding 1996 1995 1994 1993 1992
Throughout the Year (UNAUDITED)
----------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE-BEGINNING OF YEAR $19.18 $17.68 $18.13 $17.90 $17.42
----------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.03 0.03 0.06 0.08 0.10
Net realized and unrealized
gain on securities 1.25 3.99 0.08 2.47 1.30
----------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.28 4.02 0.14 2.55 1.40
----------- ------- ------- ------- -------
Less dividends:
From net investment income 0.00 (0.03) (0.06) (0.08) (0.10)
From net realized gain
on investments 0.00 (2.49) (0.53) (2.24) (0.82)
----------- ------- ------- ------- -------
TOTAL DIVIDENDS 0.00 (2.52) (0.59) (2.32) (0.92)
----------- ------- ------- ------- -------
NET ASSET VALUE-END OF YEAR $20.46 $19.18 $17.68 $18.13 $17.90
=========== ======= ======= ======= =======
TOTAL RETURN <F1> 6.67% 22.74% 0.77% 14.25% 8.04%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.49%<F2> 1.50% 1.50% 1.52% 1.52%
Net investment income 0.26%<F2> 0.13% 0.35% 0.45% 0.61%
Portfolio turnover rate 85.42%<F2> 76.71% 68.56% 63.28% 48.26%
Net assets at end of year (000's) $25,608 $23,949 $19,753 $19,670 $16,045
<FN>
<F1> Total return is based on past performance and
is not a guarantee of future performance.
<F2> Annualized
</FN>
</TABLE>
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Page 1
<PAGE>
PC&J PERFORMANCE FUND
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SCHEDULE OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PERCENT OF NUMBER OF MARKET
SECURITY (Note A) NET ASSETS SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS:
Capital goods and transportation: 8.1%
Emerson Electric Co. 7,800 $ 704,925
Federal Signal Corp. 15,101 354,873
General Electric Co. 11,800 1,023,650
-----------
2,083,448
Consumer cyclical: 8.8
Disney (Walt) Co. 8,000 503,000
Home Depot Inc. 9,300 502,200
Magna International Inc. - Class A 10,700 492,200
McDonalds Corp. 9,700 453,475
Olsten Corp. 10,000 293,750
-----------
2,244,625
Consumer staple: 15.5
American Home Products 15,000 901,875
Columbia/HCA Corp. 11,200 600,600
Gillette Company 8,800 548,900
Merck & Co., Inc. 11,000 710,875
Shared Medical Systems Corp. 11,100 713,175
Sysco Corp. 14,500 496,625
-----------
3,972,050
Energy: 10.0
Chevron Corp. 10,200 601,800
Mobil Corp. 5,800 651,775
Newpark Resources Inc. <F1> 21,620 794,535
Western Atlas Inc. <F1> 8,600 500,950
-----------
2,549,060
Financial services: 16.0
American Express Co. 15,000 669,375
Citicorp 8,200 678,550
Franklin Resources Inc. 8,000 488,000
Northern Trust Corp. 12,450 718,988
Schwab (Charles) Corp. 12,900 316,050
SunAmerica Inc. 12,400 713,000
Vesta Insurance Group Inc. 15,400 513,975
-----------
4,097,938
------- -----------
COMMON STOCKS 58.4% $14,947,121
<FN>
<F1> Nonincome producing security.
</FN>
</TABLE>
See notes to financial statements.
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Page 2
<PAGE>
PC&J PERFORMANCE FUND
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SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PERCENT OF NUMBER OF MARKET
SECURITY (Note A) NET ASSETS SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS FORWARD: 58.4% $14,947,121
------- -----------
Industrial commodities: 8.9
Aluminum Co. of America 10,200 585,225
Kimberly-Clark Corp. 7,800 602,550
Loctite Corp. 10,600 492,900
Sealed Air Corp. <F1> 18,000 605,250
-----------
2,285,925
Technology: 17.4
Computer Associates International 11,000 781,000
Eastman Kodak 8,800 684,200
Electronic Data Systems Corp. 13,600 731,000
Microsoft Corp. <F1> 6,200 744,775
Sun Microsystems, Inc. <F1> 11,200 659,400
United Technologies Corp. 7,400 851,000
-----------
4,451,375
Telecommunications: 4.5
AT&T Corp. 8,000 496,000
Lucent Technologies 17,600 666,600
-----------
1,162,600
------- -----------
TOTAL COMMON STOCKS
(Cost $17,761,198) 89.2 22,847,021
SHORT-TERM OBLIGATIONS
(Cost $2,970,526) 11.6 2,970,526
------- -----------
TOTAL INVESTMENTS
(Cost $20,731,724) 100.8% $25,817,547
======= ===========
<FN>
<F1> Nonincome producing security.
</FN>
</TABLE>
See notes to financial statements.
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Page 3
<PAGE>
PC&J PERFORMANCE FUND
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STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
(UNAUDITED)
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<TABLE>
<S> <C>
ASSETS:
Investments in securities, at market value
(Cost basis - $20,731,724) (Notes A & D) $25,817,547
------------
Receivables:
Dividends and interest 44,264
Capital stock purchased 100
------------
44,364
------------
Total assets 25,861,911
LIABILITIES:
Accrued expenses (Note B) (31,425)
Payables - Securities purchased (222,550)
------------
Total liabilities (253,975)
------------
NET ASSETS $25,607,936
============
SHARES OUTSTANDING
(Unlimited authorization-no par value)(Note C) 1,251,597
NET ASSET VALUE PER SHARE $20.46
============
NET ASSETS CONSIST OF:
Paid in capital $19,136,926
Net unrealized appreciation 5,085,822
Undistributed net income 32,524
Undistributed net realized gain 1,352,664
------------
Net Assets $25,607,936
============
</TABLE>
See notes to financial statements.
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Page 4
<PAGE>
PC&J PERFORMANCE FUND
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STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
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<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME (Note A):
Dividends $ 137,748
Interest 80,215
------------
Total investment income 217,963
------------
EXPENSES (Note B):
Investment advisory fee 123,626
Management fee 61,813
------------
Total expenses 185,439
------------
NET INVESTMENT INCOME 32,524
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note D):
Net realized gain on investments 1,352,664
Change in unrealized appreciation of investments 221,362
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 1,574,026
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,606,550
============
</TABLE>
See notes to financial statements.
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Page 5
<PAGE>
PC&J PERFORMANCE FUND
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND
FOR THE YEAR ENDED DECEMBER 31, 1995
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<TABLE>
<CAPTION>
1996 1995
(UNAUDITED)
----------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income 32,524 29,014
Net realized gain on investments 1,352,664 2,754,585
Change in unrealized appreciation of investments 221,362 1,791,320
----------- ------------
Net increase in net assets from operations 1,606,550 4,574,919
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 (28,683)
Dividends from net realized gain on investments 0 (2,754,585)
CAPITAL STOCK TRANSACTIONS - Increase in net assets
resulting from capital share transactions (Note C) 52,689 2,403,982
------------ ------------
Total increase in net assets 1,659,239 4,195,633
NET ASSETS:
Beginning of year 23,948,697 19,753,064
------------ ------------
End of year $25,607,936 $23,948,697
============ ============
</TABLE>
See notes to financial statements.
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Page 6
<PAGE>
PC&J PERFORMANCE FUND
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NOTES TO FINANCIAL STATEMENTS
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A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PC&J Performance Fund (the "Fund") commenced operations on December 23,
1983, as a "no-load, open-end, diversified" investment company. It is
organized as an Ohio business trust and is registered under the Investment
Company Act of 1940.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates or assumptions
that affect the reported amounts of assets and liabilities and disclosures of
contingent 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.
(1) Security Valuations - Investments in securities traded on a national
securities exchange are valued at the last reported sales price on the
last business day of the month; securities traded on the over-the-counter
market are valued at the average of the closing bid and ask prices.
(2) Federal Income Taxes - The Fund has elected to be treated as a regulated
investment company and intends to comply with the requirements under
Subchapter M of the Internal Revenue Code and to distribute all of its
net investment income and realized gains on security transactions.
Accordingly, no provision for federal income taxes has been made in the
accompanying financial statements.
(3) Other - Security transactions are accounted for on the date the
securities are purchased or sold (trade date). Realized gains and losses
on sales are determined using the first-in first-out method. Dividends
and distributions to shareholders are recorded on the ex-dividend date.
Dividend income is recorded on the ex-dividend date. Interest income is
accrued daily.
B. INVESTMENT ADVISORY AGREEMENT AND MANAGEMENT AGREEMENT
The Fund has an investment advisory agreement with Parker, Carlson & Johnson,
Inc. (the "Advisor"), wherein the Fund pays the Advisor a monthly advisory
fee, accrued daily, based on an annual rate of one percent of the daily
net assets of the Fund. Investment advisory fees were $123,626 for the six
months ended June 30, 1996.
The Fund has a management agreement with PC&J Service Corp., (the "Service
Corp."), wholly owned by the shareholders of the Advisor. The Fund pays
Service Corp. for the overall management of the Fund's business affairs,
exclusive of the services provided by the Advisor, and functions as the
Fund's transfer and dividend disbursing agent. Service Corp. pays all
expenses of the Fund (with certain exclusions) and is entitled to a monthly
fee, accrued daily, based on an annual rate of one-half of one percent of the
daily net assets of the Fund. Management fees were $61,813 for the six months
ended June 30, 1996.
Certain officers and trustees of the Fund are officers and trustees, or both,
of the Advisor and of Service Corp.
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Page 7
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
NOTES TO FINANCIAL STATEMENTS - (Concluded)
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C. CAPITAL STOCK TRANSACTIONS
<TABLE>
<CAPTION>
For the Six Months Ended For the Year Ended
June 30, 1996 December 31, 1995
-------------------------- --------------------------
<S> <C> <C> <C> <C>
Shares sold 75,197 $ 1,478,892 138,400 $ 2,657,095
Shares issued in reinvestment
of dividends and capital
gains distributions 0 0 145,083 2,783,267
---------- ------------ ---------- ------------
75,197 1,478,892 283,483 5,440,362
Shares redeemed (71,976) (1,426,203) (152,432) (3,036,380)
---------- ------------ ---------- ------------
Net increase 3,221 52,689 131,051 2,403,982
Shares outstanding at
beginning of year 1,248,376 19,084,237 1,117,325 16,680,255
---------- ------------ ---------- ------------
Shares outstanding at
end of year 1,251,597 $19,136,926 1,248,376 $19,084,237
========== ============ ========== ============
</TABLE>
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations) for the year
ended June 30, 1996, aggregated $9,469,286 and $9,378,082, respectively.
At June 30, 1996, gross unrealized appreciation on investments was $5,137,052
and gross unrealized depreciation on investments was $51,230 for a net
unrealized appreciation of $5,085,822 for financial reporting and federal
income tax purposes.
E. DISTRIBUTION EXPENSE
The Fund's shareholders have adopted a Distribution Expense plan pursuant to
Rule 12b-1 of the Investment Company Act of 1940. This Plan authorizes
payments under the Investment Advisory Agreement and Management Agreement
(See Note B) which might be deemed to be expenses primarily intended to
result in the sale of Fund shares. No other payments are authorized under
the Distribution Expense Plan.
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