OLD DOMINION INVESTORS' TRUST, INC.
110 BANK STREET
SUFFOLK, VIRGINIA 23434
PHONE 757-539-2396
Custodian
UMB BANK
928 Grand Avenue
Kansas City, Missouri 64141
Counsel
KAUFMAN & CANOLES
Nations Bank Center
P.O. Box 3037
Norfolk, VA 23574
Auditors
BRIGGS, BUNTING & DOUGHERTY, LLP
Two Logan Square
Suite 2121
Philadelphia, Pennsylvania 19103-4901
Manager, Underwriter
INVESTORS' SECURITY COMPANY, INC.
110 Bank Street
Suffolk, Virginia 23434
Phone: (757) 539-2396
Transfer Agent
FPS SERVICES, INC.
3200 Horizon Drive
P.O. Box 61503
King of Prussia, PA 19406-0903
Phone: (610) 239-4500
OLD DOMINION INVESTORS TRUST, INC.
A mutual fund since 1951
ANNUAL REPORT
AUGUST 31, 1997
<PAGE>
REPORT TO STOCKHOLDERS
TO THE STOCKHOLDERS:
The Annual Report of Old Dominion Investors' Trust, Inc. covers the 12
month period of our year from September 1, 1996 through August 31, 1997. The
Fund ended its fiscal year on a positive note. The Fund had a total return of
22.3% for the 12 month period after deducting a 4% sales charge.
There were no factors, strategies, or techniques that materially affected
the Fund over the past year. Management continued to purchase good quality blue
chip stocks listed on the New York Stock Exchange. All securities that are
purchased for the Fund must have paid continuous dividends for at least 10
years. We believe this gives the Fund additional stability.
We focus on buying and adding stocks of companies with average dividend
yields and good prospects for improving earnings. We will purchase some stocks
that have a disappointing earnings quarter but only where such earnings
disappointment is considered temporary and the current dividend is considered
safe. This allows us to take advantage of the lower price and resulting higher
yield.
The Fund, through August 31, 1997, received $105,888 from expired call
options ($.30 per share). This income is distributed to stockholders in the form
of cash distributions. We will continue to sell options on portfolio securities
as market conditions warrant. Management believes this is a good strategy to
achieve above average income. Otherwise, high yields are just not to be found in
many stocks.
The Fund will continue to seek out attractive investments that sell at
reasonable prices in relation to earnings.
Sincerely yours,
Cabell B. Birdsong
President, Investors Security Co., Inc.
Investment Advisor and Manager
James F. Hope
President, Old Dominion Investors
Trust
September 17, 1997
<PAGE>
Comparison of the Change in a $10,000 Investment in Old Dominion Investors'
Trust and the Standard & Poors 500 Index as of August 31, 1997
[GRAPH]
Average Annual Returns for the periods ended August 31, 1997*
1 Year 5 Year 10 Year
22.35% 14.03% 8.32%
* Average annual return for the Fund assumes the purchase of shares at
the maximum offering price and the deduction of all fees and expenses
<TABLE>
<S> <C>
Values at August 31, 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Old Dominion Investors' Trust $ 9,600 $7,984 $10,083 $ 8,684 $10,515 $11,072 $12,204 $12,926 $15,264 $17,449 $22,237
Standard & Poors 500 Index $10,000 $8,222 $11,448 $10,876 $13,803 $14,898 $17,167 $18,106 $21,990 $26,106 $34,805
</TABLE>
Performance and data represent past performance. Investment return and principal
value of an investment in the Fund will fluctuate. Your shares, when redeemed,
may be worth more or less than their original cost.
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
SHARES COMMON STOCKS: 82.5% VALUE
- ------ ----------
<S> <C>
AUTOMOBILES: 1.9%
5,000 Chrysler Corp. $ 175,625
----------
AUTOMOTIVE PARTS & SUPPLIES: 3.7%
5,700 Goodyear Tire & Rubber Company 351,263
----------
BUILDING PRODUCTS: 3.6%
5,000 Armstrong World Industries Inc. 342,187
----------
CHEMICALS: 6.3%
1,700 Dow Chemical Co. 150,450
6,000 DuPont E.I. DeNemours & Co. 373,875
1,500 Union Carbide Corp. 76,969
----------
Total 601,294
----------
COMMUNICATIONS: 9.3%
10,500 AT&T Corp. 409,500
8,700 GTE Corp. 387,694
1,536 SBC Communications Inc. 83,520
----------
Total 880,714
----------
CONSUMER GOODS AND SERVICES: 10.5%
5,500 American Home Products Corp. 396,000
2,600 Bristol-Myers Squibb Co. 197,600
5,000 Colgate-Palmolive Co. 313,750
1,400 Eastman Kodak Co. 91,525
----------
Total 998,875
----------
ENERGY PRODUCTS: 14.2%
5,000 Atlantic Richfield Co. 375,000
6,000 Exxon Corp. 367,125
5,400 Mobil Corp. 392,850
1,800 Texaco Inc. 207,450
----------
Total 1,342,425
----------
ENERGY SERVICES: 2.7%
5,500 Williams Companies Inc. 256,094
----------
FINANCIAL SERVICES: 14.5%
3,000 Bankers Trust NY Corp. 311,250
3,800 Chase Manhattan Corp. 422,512
4,000 Fleet Financial Group Inc. 257,750
6,400 Nations Bank Corp. 380,000
----------
Total 1,371,512
----------
INDUSTRIAL MANUFACTURING: 5.0%
6,500 Cooper Industries Inc. 346,531
2,000 PPG Industries Inc. 126,000
----------
472,531
----------
</TABLE>
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1997
<TABLE>
<CAPTION>
SHARES COMMON STOCKS: 82.5% VALUE
- ------ ----------
<S> <C>
INSURANCE: .9%
900 Aetna Life & Casualty Co. 85,894
----------
NEWSPAPER PUBLISHING: 1.1%
2,000 Knight Ridder Inc. 101,250
----------
OFFICE EQUIPMENT: 2.4%
3,000 Xerox Corp. 226,500
----------
TRANSPORTATION: 6.4%
4,000 CSX Corp. 228,750
3,900 Norfolk Southern Corp. 382,200
----------
610,950
----------
Total common stocks (Cost $6,781,590) 7,817,114
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL REPURCHASE AGREEMENT: 15.8%
- ----------
<S> <C>
$1,500,000 United Missouri Bank, 5.15%, Dated 8/29/97, Due
9/5/97, Repurchase price $1,501,502 (collateralized
by U.S. Treasury Notes, 5.625%, Due 1/31/98, Market
Value $1,537,409, including accrued interest.)
(Cost $1,500,000) 1,500,000
----------
</TABLE>
<TABLE>
<S> <C>
Total Investments in Securities (Cost $8,281,590)*
(Notes 1A and 2) 98.3% 9,317,114
Cash and Other Assets in Excess of Liabilities -- Net 1.7% 161,362
----- ----------
Total Net Assets 100.0% $9,478,476
----- ----------
----- ----------
</TABLE>
* Cost for federal income tax purposes is $8,281,590 and net unrealized
appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $1,066,833
Gross Unrealized Depreciation (31,309)
----------
Net Unrealized Appreciation $1,035,524
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
2
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
SCHEDULE OF OPTION CONTRACTS WRITTEN
AUGUST 31, 1997
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS VALUE
- --------- -------
<S> <C>
COVERED CALL OPTIONS:
9 Aetna Life and Casualty Co., September $115 $ 113
10 American Home Products, October $70 4,625
15 American Home Products, October $80 1,312
30 Armstrong World Industries, December $80 2,062
10 Atlantic Richfield, October $80 1,000
20 Atlantic Richfield, January $80 4,500
40 AT&T Corp., January $45 3,500
13 Bristol-Myers Squibb Co., September $90 162
20 Chase Manhattan Corp., September $115 2,750
20 Colgate-Palmolive, November $75 1,375
30 Cooper Industries, October $55 3,187
10 CSX Corp., November $60 1,562
10 CSX Corp., November $65 625
10 Dow Chemical Co., September $95 375
30 DuPont E.I. DeNemours & Co., October $70 2,250
7 Eastman Kodak, January $75 1,225
20 Exxon Corp., October $65 2,375
10 Exxon Corp., October $70 375
20 Fleet Financial Group, January $70 3,375
10 Goodyear Tire & Rubber, October $60 3,563
10 Goodyear Tire & Rubber, January $70 1,000
20 GTE Corp., September $50 125
20 GTE Corp., December $50 1,250
10 Knight Ridder Inc., October $55 750
25 Mobil Corp., November $80 2,500
10 Nations Bank Corp., November $75 375
15 Nations Bank Corp., January $75 1,219
10 Norfolk Southern Corp., September $100 2,438
10 Norfolk Southern Corp., September $115 125
10 PPG Industries, January $70 1,250
10 SBC Communications, September $60 94
10 Texaco Inc., October $125 1,500
10 Union Carbide, September $55 188
15 Williams Companies, November $50 1,875
10 Xerox Corp., September $85 250
-------
Total (premiums received $72,412)(Notes 1A, 1D and 3) $55,250
-------
-------
PUT OPTIONS:
10 American Home Products, October $80 8,500
14 Armstrong World Industries, September $70 3,413
10 Chase Manhattan Corp., September $100 281
30 Chrysler Corp., October $35 3,563
10 DuPont E.I. DeNemours & Co., October $60 1,375
10 Norfolk Southern Corp., September $100 4,312
15 PPG Industries, September $65 3,656
10 Texaco Inc., October $110 2,063
20 Williams Companies, November $45 2,875
-------
Total (premiums received $32,039)(Notes 1A, 1D and 3) $30,038
-------
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1997
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments in securities, at value (identified cost $8,281,590) (Notes 1A
and 2) $9,317,114
Cash 343,090
Dividends and interest receivable 30,746
Prepaid expenses 14,523
----------
Total assets 9,705,473
----------
LIABILITIES
Payable for:
Securities purchased 113,856
Capital stock redeemed 2,165
Call options written, at value (premiums received $72,412) (Note 3) 55,250
Put options written, at value (premiums received $32,039) (Note 3) 30,038
Accrued expenses 25,688
----------
Total liabilities 226,997
----------
NET ASSETS
(Applicable to 353,500 shares of capital stock outstanding; 500,000 shares of
$12.50 par value authorized) $9,478,476
----------
----------
Computation of offering price:
Net asset value and redemption price per share ($9,478,476 # 353,500 shares) $ 26.81
----------
----------
Offering price per share (100/96 of net asset value)* $ 27.93
----------
----------
* On investments of $100,000 or more the offering price is reduced.
Net assets consist of:
Paid-in capital $7,602,806
Undistributed net investment income 32,654
Undistributed net realized gain on investments 788,329
Net unrealized appreciation of investments 1,054,687
----------
$9,478,476
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 227,295
Interest 33,466
----------
Total income 260,761
----------
Expenses
Investment management fee (Note 4) 42,835
Professional fees 12,500
Insurance expense 16,416
Printing shareholder reports 9,685
Directors' fees 10,260
Distribution expenses 7,966
----------
Total expenses 99,662
----------
NET INVESTMENT INCOME 161,099
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on option contracts written 105,888
Net realized gain on investments 1,011,506
Net change in unrealized appreciation of investments
and option contracts written 774,110
----------
NET GAIN ON INVESTMENTS 1,891,504
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,052,603
----------
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED AUGUST 31,
<TABLE>
1997 1996
<S> <C> ---------- ----------
OPERATIONS
Net investment income $ 161,099 $ 180,294
Net realized gain on option contracts written 105,888 104,627
Net realized gain on investments 1,011,506 595,065
Net change in unrealized appreciation of investments and option contracts
written 774,110 136,807
---------- ----------
Net increase in net assets resulting from operations 2,052,603 1,016,793
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income ($.62 and $.29 per share,
respectively) (210,465) (98,274)
Distributions from realized gain on investments ($1.65 and $1.13 per share,
respectively) (559,937) (381,011)
CAPITAL SHARE TRANSACTIONS
Net Increase (decrease) in net assets derived from the change in the number
of outstanding shares(a) 403,186 (21,148)
---------- ----------
Total increase in net assets 1,685,387 516,360
NET ASSETS
Beginning of the period 7,793,089 7,276,729
---------- ----------
End of the period (including undistributed net investment income of $32,654
and $82,020, respectively) $9,478,476 $7,793,089
---------- ----------
---------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
(a) Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
1997 1996
------------------------ ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ---------
<S> <C>
Shares sold 41,538 $ 1,103,685 23,141 $ 534,981
Shares issued in reinvestment of
distributions from net investment income
and realized gain on investments 21,619 520,109 14,133 314,471
-------- ----------- -------- ---------
63,157 1,623,794 37,274 849,452
Shares redeemed (47,215) (1,220,608) (37,920) (870,600)
-------- ----------- -------- ---------
Net increase (decrease) 15,942 $ 403,186 (646) ($ 21,148)
-------- ----------- -------- ---------
-------- ----------- -------- ---------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEARS ENDED AUGUST 31,
For a share outstanding -----------------------------------------------------------------------------------------
throughout each period 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning of
period $ 23.09 $ 21.52 $19.64 $20.24 $19.71 $20.09 $18.23 $23.49 $20.37 $30.97
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income 0.47 0.53 0.68 0.63 0.54 0.71 0.64 0.75 0.67 0.46
Net realized and unrealized
gain (loss) on investments 5.52 2.46 2.67 0.51 1.39 0.31 2.88 (3.78) 4.37 (5.95)
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations 5.99 2.99 3.35 1.14 1.93 1.02 3.52 (3.03) 5.04 (5.49)
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
Less distributions --
Distributions from net
investment income 0.62 0.29 0.78 0.64 0.45 0.66 0.71 0.82 0.75 0.43
Distributions from realized
gains on investments 1.65 1.13 0.44 1.10 0.95 0.74 0.95 1.41 1.17 4.68
Distributions in excess of
realized gains on
investments -- -- 0.25 -- -- -- -- -- -- --
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
Total distributions 2.27 1.42 1.47 1.74 1.40 1.40 1.66 2.23 1.92 5.11
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $ 26.81 $ 23.09 $21.52 $19.64 $20.24 $19.71 $20.09 $18.23 $23.49 $20.37
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
------- ------- ------ ------ ------ ------ ------ ------ ------ ------
TOTAL RETURN* 27.44% 14.31% 18.05% 5.92% 10.23% 5.29% 21.09% (13.87)% 26.29% (16.84)%
AVERAGE COMMISSION RATE
PER SHARE $0.4073 $0.4008 -- -- -- -- -- -- -- --
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 9,478 $ 7,793 $7,277 $6,918 $6,718 $6,745 $6,525 $6,202 $6,796 $5,523
Ratio to average net assets --
Expenses 1.16% 1.30% 1.39% 1.33% 1.17% 1.34% 1.33% 1.20% 1.54% 1.66%
Net investment income 1.88% 2.35% 3.42% 3.29% 2.69% 2.73% 3.46% 3.69% 3.07% 3.94%
Portfolio turnover rate 86% 119% 64% 67% 76% 54% 56% 76% 88% 45%
</TABLE>
*Calculated without deduction of sales load.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
OLD DOMINION INVESTORS' TRUST, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES
Old Dominion Investors' Trust, Inc. (the "Trust") is registered under the
Investment Company Act of 1940 (the "1940 Act") as a diversified, open-end
management investment company. The primary investment objective of the Trust is
to seek income with long-term growth of capital being a secondary objective.
There can be no assurance that the Trust's objective will be achieved. The
Trust's assets are invested in marketable securities whose prices fluctuate.
Therefore, the value of the outstanding shares of the Trust are not fixed, but
vary with the daily changes in market value of those securities held in the
Trust's portfolio.
The following is a summary of the significant accounting policies followed
by the Trust:
A. SECURITY VALUATION. Portfolio securities which are traded on an exchange
are valued at the last reported sale price on the date of valuation. If
there is no reported sale then the valuation is based upon the mean
between the bid and ask prices. Securities for which reliable quotations
are not readily available are valued at fair market value as determined
in good faith by the Trust's Board of Directors. Short-term investments
are valued at cost which when combined with accrued interest equals fair
market value.
B. FEDERAL INCOME TAXES The Trust intends to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
C. SECURITY TRANSACTIONS AND DIVIDENDS As is common in the industry,
security transactions are accounted for on the trade date. Dividend
income and distributions to shareholders are recorded on the ex-dividend
date. Interest income is recorded on the accrual basis.
D. OPTION ACCOUNTING PRINCIPLES When the Trust sells an option, the premium
received is recorded as a liability. Each day the option contract
liability is valued in accordance with the procedures for security
valuations discussed above. When an offsetting option is purchased
(closing transaction) or the option contract expires, the Trust realizes
a gain or loss and the liability related to such option contract is
eliminated. When an option is exercised, the Trust realizes a gain or
loss from the sale of the underlying security and the proceeds of the
sale are increased by the premiums originally received.
E. USE OF ESTIMATES In preparing financial statements in accordance with
generally accepted accounting principles, management is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at
the date of the financial statements, and revenues and expenses during
the reporting period. Actual results could differ from those estimates.
NOTE 2 -- INVESTMENTS
During the year ended August 31, 1997, the cost of purchases and the
proceeds from sales of securities, excluding short-term notes, was $6,688,643
and $7,959,533, respectively.
NOTE 3 -- OPTIONS WRITTEN
A summary of option contracts written by the Trust during the year is as
follows:
<TABLE>
<CAPTION>
CALLS PUTS
--------------------- ---------------------
NUMBER OF OPTION NUMBER OF OPTION
OPTIONS PREMIUMS OPTIONS PREMIUMS
--------- -------- --------- --------
<S> <C>
Options outstanding at beginning of year $ 541 $57,338 $ -- $ --
Options written 1,705 206,111 185 40,816
Options expired (953) (99,113 ) (42) (6,775 )
Options exercised (754) (91,924 ) (14) (2,002 )
--------- -------- --------- --------
Options outstanding at end of year $ 539 $72,412 $ 129 $32,039
--------- -------- --------- --------
--------- -------- --------- --------
</TABLE>
As of August 31, 1997, portfolio securities valued at $3,514,550 were
subject to covered call options written by the Trust.
NOTE 4 -- INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investors Security Company, Inc. ("Investors Security") provides the Trust
with investment management and advisory services pursuant to an investment
advisory agreement and contract. Investors Security furnished all investment
advice, office space and salaries of personnel needed by the Trust.
Additionally, Investors Security has agreed to act as the Trust's registrar and
7
<PAGE>
transfer agent and to bear all related costs associated with the registration
and transfer of the Trust's shares. As compensation for its services, the
Manager is paid a monthly fee which is equal to an annual rate of .50% of the
Trust's average net assets.
The Trust has adopted a Plan pursuant to Rule 12B-1 under the 1940 Act (the
"Plan"), whereby it may pay up to .25% of average daily net assets to its
principal underwriter, Investors' Security Company, Inc. ("ISC"), for expenses
incurred in the distribution of the Trust's shares. Pursuant to this Plan, ISC
is entitled to reimbursement for payments to securities dealers providing
shareholder services. Distribution expenses incurred by ISC were $7,966 for the
year ended August 31, 1997.
Investors Security is a registered securities broker/dealer and serves as
the Trust's principal underwriter. During the year ended August 31, 1997,
Investors Security received $66 in underwriter's concessions and $28,313 in
commissions as a retail dealer in the Trust's shares. Investors Security also
received $93,861 in brokerage commissions on the execution of certain of the
Trust's portfolio transactions.
Certain officers and directors of the Trust are also officers and/or
directors of Investors Security.
8
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors of
Old Dominion Investors' Trust, Inc.
Suffolk, Virginia
We have audited the accompanying statement of assets and liabilities of Old
Dominion Investors' Trust, Inc., including the portfolio of investments and
schedule of option contracts written, as of August 31, 1997, the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the year then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
of Old Dominion Investors' Trust, Inc. for the year ended August 31, 1996 and
the financial highlights for each of the nine years in the period ended August
31, 1996 were audited by other auditors whose reports dated September 26, 1996
and November 15, 1988, expressed unqualified opinions on the statement of
changes in net assets and financial highlights.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1997, by correspondence with the custodian and brokers. Where brokers
did not reply to our confirmation requests, we carried out other appropriate
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of Old
Dominion Investors' Trust, Inc. as of August 31, 1997, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended in conformity with generally accepted accounting principles.
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
September 17, 1997
9
