PC&J PERFORMANCE FUND
Semi-Annual Report
to Shareholders
June 30, 1998
- ------------------------------------------------------------------------------
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 1998 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,
1997, 1996, 1995, and 1994 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, 1998 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.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Selected Data for Each Share
of Capital Stock Outstanding 1998
Throughout the Period (Unaudited) 1997 1996 1995 1994
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE-BEGINNING OF PERIOD $ 27.01 $21.11 $19.18 $17.68 $18.13
----------- -------- -------- -------- --------
Income from investment operations:
Net investment income / (loss) (0.07) (0.03) 0.06 0.03 0.06
Net realized and unrealized
gain on securities 4.18 7.54 3.73 3.99 0.08
----------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 4.11 7.51 3.79 4.02 0.14
----------- -------- -------- -------- --------
Less dividends:
From net investment income (0.00) (0.00) (0.06) (0.03) (0.06)
From net realized gain
on investments (0.00) (1.61) (1.80) (2.49) (0.53)
----------- -------- -------- -------- --------
TOTAL DIVIDENDS (0.00) (1.61) (1.86) (2.52) (0.59)
----------- -------- -------- -------- --------
NET ASSET VALUE-END OF PERIOD $ 31.12 $27.01 $21.11 $19.18 $17.68
=========== ======== ======== ======== ========
TOTAL RETURN <F1> 15.22% 35.58% 19.80% 22.74% 0.77%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.49%<F2> 1.50% 1.50% 1.50% 1.50%
Net investment income / (loss) (0.46%)<F2> (0.12%) 0.30% 0.13% 0.35%
Portfolio turnover rate 14.28%<F2> 22.44% 64.31% 76.71% 68.56%
Average commissions per share <F3> $ 0.10 $ 0.10 $ 0.10
Net assets at end of period (000's) $ 43,109 $37,453 $28,638 $23,949 $19,753
<FN>
<F1> TOTAL RETURN IS A MEASURE OF PAST PERFORMANCE AND IS NOT A GUARANTEE OF
FUTURE PERFORMANCE.
<F2> ANNUALIZED
<F3> REPRESENTS THE DOLLAR AMOUNT OF COMMISSIONS PAID ON PORTFOLIO
TRANSACTIONS DIVIDED BY THE TOTAL NUMBER OF SHARES PURCHASED
AND SOLD FOR WHICH COMMISSIONS WERE CHARGED. DISCLOSURE IS NOT
REQUIRED PRIOR TO 1996.
</FN>
</TABLE>
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PERCENT NUMBER
OF NET OF MARKET
SECURITY (Note A) ASSETS SHARES VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS: 6.1%
Capital goods and transportation:
Emerson Electric Co. 15,600 $ 941,850
General Electric Co. 18,600 1,690,275
------------
2,632,125
------------
Consumer cyclical: 5.6
Disney (Walt) Co. 8,000 840,500
Four Seasons Hotels Inc. 20,400 719,100
K Mart Corp. <F1> 45,000 866,250
------------
2,425,850
------------
Consumer staple: 17.0
American Home Products 24,000 1,242,000
Campbell Soup Co. 17,200 913,750
Clorox Co. 14,000 1,338,750
Gillette Co. 21,600 1,228,500
Merck & Co., Inc. 10,000 1,337,500
Shared Medical Systems Corp. 16,500 1,211,719
Vlasic Foods Intl. Inc. <F1> 1,720 34,615
------------
7,306,834
------------
Energy: 8.5
Chevron Corp. 10,200 854,250
Cooper Cameron Corp. <F1> 18,000 918,000
Input/Output Inc. <F1> 28,700 511,219
Mobil Corp. 7,600 582,350
Newpark Resources Inc. <F1> 71,100 790,987
------------
3,656,806
------------
Financial services: 21.3
American Express Co. 13,500 1,535,625
Citicorp 6,200 925,350
Fannie Mae 15,000 911,250
Franklin Resources Inc. 24,000 1,296,000
Northern Trust Corp. 17,900 1,364,875
Norwest Corp. 24,000 900,000
Schwab (Charles) Corp. 19,350 631,294
SunAmerica Inc. 28,350 1,628,353
------------
9,192,747
------- ------------
COMMON STOCKS 58.5% $25,214,362
<FN>
<F1> NON-INCOME PRODUCING SECURITY.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
PERCENT NUMBER
OF NET OF MARKET
SECURITY (Note A) ASSETS SHARES VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS FORWARD: 58.5% $25,214,362
------- ------------
Industrial commodities: 5.5
Aluminum Co. of America 10,200 672,563
Sealed Air Corp. <F1> 23,000 845,250
Wolverine Tube Inc. <F1> 22,000 836,000
------------
2,353,813
------------
Technology: 19.8
Boeing Co. 19,200 855,600
Cisco Systems Co., Inc. <F1> 13,750 1,265,859
Computer Associates Intl. Inc. 22,750 1,264,047
International Business Machines Inc. 11,200 1,285,900
Microsoft Corp. <F1> 13,000 1,408,875
Policy Management Systems, Inc. <F1> 28,200 1,106,850
United Technologies Corp. 14,800 1,369,000
------------
8,556,131
------------
Telecommunications: 9.1
America Online Inc. <F1> 20,400 2,144,550
Lucent Technologies Inc. 21,384 1,778,881
------------
3,923,431
------- ------------
TOTAL COMMON STOCKS
(Cost $20,587,331) 92.9 40,047,737
SHORT-TERM OBLIGATIONS
(Cost $3,139,459) 7.3 3,139,459
------- ------------
TOTAL INVESTMENTS
(Cost $23,726,790) 100.2% $43,187,196
======= ============
<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, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at market value
(Cost basis - $23,726,790) (Notes A & D)
$43,187,196
Receivables - Dividends and interest 28,466
------------
Total assets 43,215,662
------------
LIABILITIES :
Accrued expenses (Note B) 51,769
Securities purchased 54,875
------------
Total liabilities 106,644
------------
NET ASSETS $43,109,018
============
SHARES OUTSTANDING
(Unlimited authorization - no par value):
Beginning of period 1,386,528
Net decrease (Note C) (1,232)
------------
End of Period 1,385,296
============
NET ASSET VALUE,
offering price and redemption price per share $ 31.12
============
NET ASSETS CONSIST OF:
Paid in capital $22,446,132
Net unrealized appreciation on investments 19,460,406
Undistributed net investment loss (93,713)
Undistributed net realized gain on investments 1,296,193
------------
Net Assets $43,109,018
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME (Note A):
Dividends $ 159,528
Interest 50,140
------------
Total investment income 209,668
------------
EXPENSES (Note B):
Investment advisory fee 202,254
Management fee 101,127
------------
Total expenses 303,381
------------
NET INVESTMENT LOSS (93,713)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note D):
Net realized gain on investments 1,296,193
Change in unrealized appreciation of investments 4,486,921
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 5,783,114
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,689,401
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
For the Six For the Year
Months Ended Ended
June 30, 1998 December 31, 1997
(Unaudited)
----------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment loss $ ( 93,713) $ (39,574)
Net realized gain on investments 1,296,193 2,108,810
Change in unrealized appreciation of investments 4,486,921 7,656,945
------------ --------------
Net increase in net assets from operations 5,689,401 9,726,181
------------ --------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 0
Dividends from net realized gain on investments 0 (2,108,810)
------------ --------------
Net decrease in assets from dividends to shareholders 0 (2,108,810)
------------ --------------
INCREASE / (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (Note C) (32,925) 1,197,179
------------ --------------
Total increase in net assets 5,656,476 8,814,550
NET ASSETS:
Beginning of period 37,452,542 28,637,992
------------ --------------
End of period $43,109,018 $37,452,542
============ ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
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 investment objective of the Fund is long-term
growth of capital through investment in common stocks. Current income is of
secondary importance.
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
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 $202,254 for the six
months ended June 30, 1998.
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 $101,127 for the six
months ended June 30, 1998.
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 directors, or
both, of the Advisor and of Service Corp.
<PAGE>
PC&J PERFORMANCE FUND
- ---------------------
NOTES TO FINANCIAL STATEMENTS - (Concluded)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
C. CAPITAL SHARE TRANSACTIONS For the Six Months For the Year Ending
Ending December 31, 1997
June 30, 1998
----------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 51,817 $ 1,520,680 154,500 $ 3,905,965
Shares issued in
reinvestment of dividends 0 0 78,070 2,108,810
------- ------------ -------- ------------
51,817 1,520,682 232,570 6,014,775
Shares redeemed (53,049) (1,553,605) (202,619) (4,817,596)
------- ------------ -------- ------------
Net increase / (decrease) (1,232) $ (32,925) 29,951 $ 1,197,179
======= ============ ======== ============
</TABLE>
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations) for the
period ended June 30, 1998 aggregated $2,773,594 and $3,344,443,
respectively.
At June 30, 1998 gross unrealized appreciation on investments was
$19,842,832 and gross unrealized depreciation on investments was $382,426
for net unrealized appreciation of $19,460,406 for financial reporting and
federal income tax purposes.
