PC&J PERFORMANCE FUND
Semi-Annual Report
to Shareholders
June 30, 1997
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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 1997 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
----------------------------
James Johnson
Secretary
/s/ Kathleen Carlson
----------------------------
Kathleen Carlson
Treasurer
<PAGE>
PC&J PERFORMANCE FUND
FINANCIAL HIGHLIGHTS
The information contained in the table below for the years ended
December 31, 1996, 1995, 1994, and 1993 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, 1997 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 1997 1996 1995 1994 1993
Throughout the Period (Unaudited)
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE-BEGINNING OF PERIOD $21.11 $19.18 $17.68 $18.13 $17.90
----------- --------- --------- --------- ---------
Income from investment
operations:
Net investment income/(loss) (0.01) 0.06 0.03 0.06 0.08
Net realized and unrealized
gain on securities 4.01 3.73 3.99 0.08 2.47
----------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 4.00 3.79 4.02 0.14 2.55
----------- --------- --------- --------- ---------
Less dividends:
From net investment income (0.00) (0.06) (0.03) (0.06) (0.08)
From net realized gain
on investments (0.00) (1.80) (2.49) (0.53) (2.24)
----------- --------- --------- --------- ---------
TOTAL DIVIDENDS (0.00) (1.86) (2.52) (0.59) (2.32)
----------- --------- --------- --------- ---------
NET ASSET VALUE-END OF PERIOD $25.11 $21.11 $19.18 $17.68 $18.13
=========== ========= ========= ========= =========
TOTAL RETURN <F1> 18.95% 19.80% 22.74% 0.77% 14.25%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.49 %<F2> 1.50% 1.50% 1.50% 1.52%
Net investment income/(loss) (0.08)%<F2> 0.30% 0.13% 0.35% 0.45%
Portfolio turnover rate 27.84 %<F2> 64.31% 76.71% 68.56% 63.28%
Average commissions per share<F3> $0.10
Net assets at end of period (000's) $31,995 $28,638 $23,949 $19,753 $19,670
<FN>
<F1> TOTAL RETURN IS A MEASURE OF PAST PERFORMANCE AND IS NOT A GUARANTEE OF
FUTURE PERFORMANCE.
<F2> ANNUALIZED
<F3> DUE TO NEW SEC DISCLOSURE GUIDELINES, AVERAGE COMMISSIONS PAID ON EQUITY
TRANSACTIONS ARE CALCULATED ONLY FOR THE CURRENT YEAR AND NOT FOR THE
PRIOR YEARS.
</FN>
</TABLE>
<PAGE>
PC&J PERFORMANCE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
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PERCENT NUMBER MARKET
SECURITY (Note A) OF NET OF VALUE
ASSETS SHARES
---------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS:
Capital goods and transportation: 6.5%
Emerson Electric Co. 15,600 $ 858,975
General Electric Co. 18,600 1,209,000
------------
2,067,975
Consumer cyclical: 3.7
Disney (Walt) Co. 8,000 642,000
K Mart Corp. <F1> 45,000 548,437
------------
1,190,437
Consumer staple: 17.7
American Home Products 14,000 1,071,000
Campbell Soup 17,200 860,000
Clorox Company 7,000 925,313
Columbia/HCA Corp. 9,350 367,572
Gillette Company 8,800 833,800
Merck & Co., Inc. 9,000 920,812
Shared Medical Systems Corp. 12,500 675,000
------------
5,653,497
Energy: 12.4
Chevron Corp. 10,200 754,163
Cooper Cameron Corp. 24,000 1,122,000
Mobil Corp. 11,600 810,550
Newpark Resources Inc. <F1> 38,240 1,290,600
------------
3,977,313
Financial services: 20.2
American Express Co. 13,500 1,005,750
Citicorp 8,200 988,613
Fannie Mae 15,000 654,375
Franklin Resources Inc. 12,000 870,750
Northern Trust Corp. 18,900 914,287
Norwest Corp. 12,000 675,000
Schwab (Charles) Corp. 12,900 522,450
SunAmerica Inc. 16,900 823,875
------------
6,455,100
------- ------------
COMMON STOCKS 60.5% $19,344,322
<FN>
<F1>NON-INCOME PRODUCING SECURITY.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
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PERCENT NUMBER OF MARKET
SECURITY (Note A) OF NET SHARES VALUE
ASSETS
---------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS FORWARD: 60.5% $19,344,322
------- ------------
Industrial commodities: 6.7
Aluminum Co. of America 10,200 768,825
Raychem Corp. 7,000 520,625
Sealed Air Corp. <F1> 18,000 855,000
------------
2,144,450
Technology: 17.1
Boeing Co. 12,200 647,362
Computer Associates 16,500 918,844
International Business Machines Inc. 11,200 1,010,800
Microsoft Corp. <F1> 9,400 1,187,925
NCR Corp. 15,800 468,075
United Technologies Corp. 14,800 1,228,400
------------
5,461,406
Telecommunications: 8.2
America Online <F1> 13,200 734,250
Dynatech Corp. 20,700 740,025
Lucent Technologies Inc. 16,192 1,166,836
------------
2,641,111
------- ------------
TOTAL COMMON STOCKS
(Cost $18,516,752) 92.5 29,591,289
SHORT-TERM OBLIGATIONS
(Cost $2,106,508) 6.6 2,106,508
------- ------------
TOTAL INVESTMENTS
(Cost $20,623,260) 99.1% $31,697,797
======= ============
<FN>
<F1> NON-INCOME PRODUCING SECURITY.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(UNAUDITED)
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at market value
(Cost basis - $20,623,260) (Notes A & D) $31,697,797
------------
Receivables:
Dividends and interest 20,148
Securities sold 315,902
------------
Total receivables 336,050
------------
Total assets 32,033,847
LIABILITIES _ Accrued expenses (Note B) (39,021)
NET ASSETS $31,994,826
============
SHARES OUTSTANDING (Unlimited authorization - no
par value):
Beginning of period 1,356,577
Net decrease (Note C) (82,243)
------------
End of Period 1,274,334
============
NET ASSET VALUE PER SHARE $25.11
============
NET ASSETS CONSIST OF:
Paid in capital $19,495,624
Net unrealized appreciation on investments 11,074,537
Undistributed net investment loss (11,507)
Undistributed net realized gain on 1,436,172
investments ------------
Net Assets $31,994,826
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
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<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME (Note A):
Dividends $ 152,234
Interest 56,013
------------
Total investment income 208,247
------------
EXPENSES (Note B):
Investment advisory fee 146,503
Management fee 73,251
------------
Total expenses 219,754
------------
NET INVESTMENT LOSS (11,507)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note D):
Net realized gain on investments 1,436,172
Change in unrealized appreciation of 3,757,997
investments
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 5,194,169
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,182,662
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
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For the Six Months For the Year
Ended Ended
June 30, 1997 December 31, 1996
(Unaudited)
------------------ -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income/(loss) $ (11,507) $ 77,833
Net realized gain on investments 1,436,172 2,249,448
Change in unrealized appreciation/
depreciation of investments 3,757,997 2,452,080
------------ ------------
Net increase in net assets from operations 5,182,662 4,779,361
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 (77,833)
Dividends from net realized gain 0 (2,249,448)
on investments
------------ ------------
Net decrease in assets from dividends 0 (2,327,281)
to shareholders
INCREASE /(DECREASE)IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS (Note C) (1,825,828) 2,237,215
------------ ------------
Total increase in net assets 3,356,834 4,689,295
NET ASSETS:
Beginning of period 28,637,992 23,948,697
------------ ------------
End of period $31,994,826 $28,637,992
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
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; 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 to shareholders from net investment income and net
realized capital gains are declared and paid annually. Dividend
income is recorded on the ex-dividend date. Interest income is
accrued daily.
B. INVESTMENT ADVISORY AGREEMENT AND MANAGEMENT AGREEMENT<PAGE>
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 $146,503 for the six months ended June 30, 1997.
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 $73,251 for the six months ended June 30, 1997.
The Fund's shareholders have adopted a Distribution Expense Plan
('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 described above which might be
deemed to be expenses primarily intended to result in the sale of Fund
shares. No other payments are authorized under the Plan.
Certain officers and trustees of the Fund are officers and trustees, or
both, of the Advisor and of Service Corp.
<PAGE>
PC&J PERFORMANCE FUND
NOTES TO FINANCIAL STATEMENTS - (Concluded)
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<TABLE>
<CAPTION>
C. CAPITAL SHARE TRANSACTIONS For the Six Months For the Year
Ending Ending
June 30, 1997 December 31, 1996
------------------------------------------------
<S> <C> <C>
Shares sold 60,609 $ 1,364,489 128,018 $ 2,600,524
Shares issued in reinvestment
of dividends 0 0 110,243 2,327,281
Shares redeemed (142,852) (3,190,317) (130,060) (2,690,590)
---------- ------------ ---------- ------------
Net increase/(decrease) (82,243) $(1,825,828) 108,201 $ 2,237,215
========== ============ ========== ============
</TABLE>
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations) for the
period ended June 30, 1997 aggregated $3,770,748 and $5,789,166,
respectively.
At June 30, 1997 gross unrealized appreciation on investments was
$11,352,454 and gross unrealized depreciation on investments was
$277,917 for net unrealized appreciation of $11,074,537 for financial
reporting and federal income tax purposes.
