PC&J PERFORMANCE FUND
Semi-Annual Report
to Shareholders
June 30, 1999
- -------------------------------------------------------------------------------
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 1999 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,
1998, 1997, 1996, and 1995 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, 1999 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 1999 1998 1997 1996 1995
Capital Stock Outstanding (Unaudited)
Throughout the Period
-------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE-BEGINNING OF PERIOD $34.23 $27.01 $21.11 $19.18 $17.68
----------- ------- ------- ------- -------
Income from investment operations:
Net investment income / (loss) (0.09) (0.11) (0.03) 0.06 0.03
Net realized and unrealized
gain on securities 4.78 8.69 7.54 3.73 3.99
----------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 4.69 8.58 7.51 3.79 4.02
----------- ------- ------- ------- -------
Less dividends:
From net investment income (0.00) (0.00) (0.00) (0.06) (0.03)
From net realized gain
on investments (0.00) (1.36) (1.61) (1.80) (2.49)
----------- ------- ------- ------- -------
TOTAL DIVIDENDS (0.00) (1.36) (1.61) (1.86) (2.52)
----------- ------- ------- ------- -------
NET ASSET VALUE-END OF PERIOD $38.92 $34.23 $27.01 $21.11 $19.18
=========== ======= ======= ======= =======
TOTAL RETURN 13.70% 31.77% 35.58% 19.80% 22.74%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.49%<F1> 1.50% 1.50% 1.50% 1.50%
Net investment income / (loss) (0.51%)<F1> (0.38%) (0.12%) 0.30% 0.13%
Portfolio turnover rate 21.02%<F1> 25.60% 22.44% 64.31% 76.71%
Net assets at end of period (000's) $59,001 $48,832 $37,453 $28,638 $23,949
<FN>
<F1> ANNUALIZED
<FN>
</TABLE>
- -------------------------------------------------------------------------------
Page 1
<PAGE>
PC&J PERFORMANCE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PERCENT NUMBER
OF NET OF MARKET
SECURITY (Note A) ASSETS SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS:
Capital goods and transportation: 11.4%
Emerson Electric Co. 19,600 $ 1,233,575
General Electric Co. 18,600 2,101,800
Tyco International Ltd. 19,500 1,847,625
United Technologies 21,600 1,555,200
-------------
6,738,200
-------------
Consumer cyclicals: 1.5
Disney (Walt) Co. 29,000 893,562
-------------
Consumer staples: 13.7
American Home Products 26,000 1,491,750
Campbell Soup Co. 24,200 1,122,275
Clorox Co. 14,000 1,495,375
Gillette Co. 18,600 762,600
Lilly (Eli) & Co. 12,500 895,313
Merck & Co., Inc. 20,000 1,472,500
Pharmaceutical Products Inc. <F1> 30,500 834,937
-------------
8,074,750
-------------
Corporate services - 2.2
Metzler Group Inc. <F1> 46,300 1,279,037
-------------
Energy: 5.6
Chevron Corp. 10,200 969,638
Cooper Cameron Corp. <F1> 18,000 667,125
Mobil Corp. 9,600 948,000
Newpark Resources Inc. <F1> 78,600 697,575
-------------
3,282,338
-------------
Financial index - 2.3
S&P Depositary Receipts Trust 10,000 1,370,000
-------------
Industrial commodities: 5.5
Aluminum Co. of America 26,400 1,633,500
Sealed Air Corp. <F1> 25,000 1,621,875
-------------
$ 3,255,375
-------------
<FN>
<F1>NON-INCOME PRODUCING SECURITY.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
Page 2
<PAGE>
PC&J PERFORMANCE FUND
SCHEDULE OF INVESTMENTS (Concluded)
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
PERCENT NUMBER
OF NET OF MARKET
SECURITY (Note A) ASSETS SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Financial services: 23.0%
American Express Co. 13,200 $ 1,717,650
American International Group 20,819 2,441,028
Citigroup Inc. 36,750 1,745,625
Fannie Mae 18,000 1,228,500
Franklin Resources Inc. 24,000 975,000
Northern Trust Corp. 17,900 1,736,300
Schwab (Charles) Corp. 21,025 2,291,725
Wells Fargo & Co. 33,000 1,410,750
-------------
13,546,578
-------------
Technology: 20.4
Cisco Systems Co., Inc. <F1> 41,250 2,658,047
EMC Corp. <F1> 26,400 1,452,000
International Business Machines Inc. 22,400 2,895,200
Microsoft Corp. <F1> 22,000 1,984,125
Policy Management Systems, Inc. <F1> 42,300 1,269,000
Sterling Commerce Inc. <F1> 49,000 1,800,750
-------------
12,059,122
-------------
Telecommunications: 7.4
America Online Inc. <F1> 18,600 2,046,000
Lucent Technologies Inc. 34,768 2,344,667
-------------
4,390,667
------- -------------
TOTAL COMMON STOCKS
(Cost $25,428,722) 93.0 54,889,629
------- -------------
SHORT-TERM OBLIGATIONS 7.0
Firstar Treasury Fund 250,248
Firstar Federal Prime Obligations Fund 2,850,000
Fidelity Spartan Money Market Fund 1,048,271
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $4,148,519) 4,148,519
------- -------------
TOTAL INVESTMENTS
(Cost $29,577,241) <F2> 100.0% $ 59,038,148
======= =============
<FN>
<F1> NON-INCOME PRODUCING SECURITY.
<F2> REPRESENTS COST FOR FEDERAL INCOME TAX PURPOSES
AND DIFFERS FROM VALUE BY NET UNREALIZED
APPRECIATION (SEE NOTE D)
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
Page 3
<PAGE>
PC&J PERFORMANCE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at market value $ 59,038,148
(Cost basis - $29,577,241) (Notes A & D)
Receivables - Dividends and interest 33,274
-------------
Total assets 59,071,422
-------------
LIABILITIES _ Accrued expenses (Note B) (70,221)
-------------
NET ASSETS $ 59,001,201
=============
SHARES OUTSTANDING (Unlimited authorization - no par value):
Beginning of period 1,426,503
Net increase (Note C) 89,480
-------------
End of Period 1,515,983
=============
NET ASSET VALUE, offering price and redemption price per share $38.92
=============
NET ASSETS CONSIST OF:
Paid in capital $ 26,914,646
Net unrealized appreciation on investments 29,460,907
Net investment loss (137,122)
Accumulated net realized gain on investments 2,762,770
-------------
Net Assets $ 59,001,201
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
Page 4
<PAGE>
PC&J PERFORMANCE FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME (Note A):
Dividends $ 172,043
Interest 88,954
-------------
Total investment income 260,997
-------------
EXPENSES (Note B):
Investment advisory fee 265,413
Management fee 132,706
-------------
Total expenses 398,119
-------------
NET INVESTMENT LOSS (137,122)
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (Note D):
Net realized gain on investments 2,762,770
Change in unrealized appreciation of investments 4,209,873
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 6,972,643
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,835,521
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
Page 5
<PAGE>
PC&J PERFORMANCE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
For the Six Months For the Year
Ended Ended
June 30, 1999 December 31, 1998
(Unaudited)
------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment loss $ (137,122) $ (155,474)
Net realized gain on investments 2,762,770 1,859,470
Change in unrealized appreciation of
investments 4,209,873 10,277,549
-------------- --------------
Net increase in net assets from operations 6,835,521 11,981,545
-------------- --------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 0
Dividends from net realized gain on
investments 0 (1,859,470)
-------------- --------------
Net decrease in assets from dividends to
shareholders 0 (1,859,470)
-------------- --------------
INCREASE IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (Note C) 3,334,106 1,256,957
-------------- --------------
Total increase in net assets 10,169,627 11,379,032
NET ASSETS:
Beginning of period 48,831,574 37,452,542
-------------- --------------
End of period $ 59,001,201 $ 48,831,574
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
Page 6
<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. Net investment losses,
for tax purposes, are reclassified to paid in capital.
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 $265,413 for the six
months ended June 30, 1999.
The Fund has a management agreement with PC&J Service Corp., (the 'Service
Corp.') which is 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 $132,706 for the six
months ended June 30, 1999.
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 7
<PAGE>
PC&J PERFORMANCE FUND
NOTES TO FINANCIAL STATEMENTS - (Concluded)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
C. CAPITAL SHARE For the Six Months Ending For the Year Ending
TRANSACTIONS June 30, 1999 December 31, 1998
(Unaudited)
-------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 150,042 $ 5,493,006 128,041 $ 3,730,700
Shares issued in
reinvestment of
dividends 0 0 54,320 1,859,470
---------- ------------ ---------- ------------
150,042 5,493,006 182,361 5,590,170
Shares redeemed (60,562) (2,158,900) (142,386) (4,333,213)
---------- ------------ ---------- ------------
Net increase 89,480 $ 3,334,106 39,975 $ 1,256,957
========== ============ ========== ============
</TABLE>
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations) for the
period ended June 30, 1999 aggregated $7,104,039 and $5,239,351,
respectively.
At June 30, 1999 gross unrealized appreciation on investments was
$30,040,705 and gross unrealized depreciation on investments was $579,798
for net unrealized appreciation of $29,460,907 for financial reporting and
federal income tax purposes.
- -------------------------------------------------------------------------------
Page 8