August 2, 1996
VIA EDGAR
- ---------
Securities and Exchange Commission
Division of Investment Management
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: CharterCapital BLUE CHIP GROWTH FUND, INC. (the Fund)
(Registration Nos.: 2-90082, 811-3993)
Gentlemen:
On behalf of the Fund, we hereby file the Fund's Semi-Annual Report to
Shareholders for the period ended June 30, 1996 pursuant to Rule 30b2-1 and
Section 24(b) under the Investment Company Act of 1940, as amended.
If you have any questions regarding this filing, please do not hesitate to call
me at (414) 226-2591.
Sincerely,
/s/ Lea E. Grunig
- ------------------
Lea E. Grunig
Client Services and Tax Manager
LEG/sb
Lauren Toll (paper copy)
Rick Teigen (paper copy)
Amy Thorison (paper copy)
SEMI-ANNUAL REPORT
JUNE 30, 1996
CHARTERCAPITAL
BLUE CHIP GROWTH FUND, INC.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
(UNAUDITED)
ASSETS:
Investments in securities, at value (cost $457,574) $ 473,416
Receivable for securities sold 419,241
Due from adviser 4,411
Dividends and interest receivable 2,906
------------
TOTAL ASSETS 899,974
------------
LIABILITIES:
Payable to adviser for advisory, management and 1,277
administrative fees
Other accrued expenses 9,029
------------
TOTAL LIABILITIES 10,306
------------
TOTAL NET ASSETS $ 889,668
============
NET ASSETS CONSIST OF:
Capital shares ($0.01 per value, 10,000,000
shares authorized, 56,336 shares outstanding) $ 1,252,679
Undistributed net investment income 1,960
Accumulated net realized loss on investments (380,813)
Net unrealized appreciation on investments 15,842
------------
TOTAL NET ASSETS $ 889,668
============
Net asset value, offering and redemption price
per share ($889,668 divided by 56,336
shares outstanding) $ 15.79
============
The accompanying notes to financial statements
are an integral part of this information.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
COMMON STOCKS - 36.19% Number of Shares Value
---------------- -----
CAPITAL GOODS - 3.68% 1,000 $ 32,750
WMX Technologies, Inc.
CONSUMER - 3.64% 1,000 32,375
Sara Lee Corp.
ENERGY - 6.79% 3,000 60,375
USX-Marathon Group
UTILITIES - 22.08%
American Telephone & Telegraph Corp. 1,000 62,000
NICOR, Inc. 1,000 28,375
Teco Energy, Inc. 2,900 73,225
WPL Holdings, Inc. 1,000 32,875
--------
196,475
--------
TOTAL COMMON STOCKS (cost $306,133) 321,975
--------
Principal Amount
----------------
DEMAND NOTES (variable rate) - 17.02%
General Mills $ 25,100 25,100
Pitney Bowes Credit Corp. 45,993 45,993
Southwestern Bell 19,815 19,815
Wisconsin Electric Power Co. 45,720 45,720
Warner Lambert 14,813 14,813
--------
TOTAL DEMAND NOTES (cost $151,441) 151,441
--------
TOTAL INVESTMENTS 53.21% (cost $457,574) 473,416
CASH AND OTHER ASSETS, LESS LIABILITIES 46.79% 416,252
--------
NET ASSETS 100.00% $ 889,668
========
The accompanying notes to financial statements
are an integral part of this information.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
INVESTMENT INCOME:
Dividend income $ 25,098
Interest income 6,239
Other income 1,378
--------
TOTAL INVESTMENT INCOME 32,715
--------
EXPENSES:
Professional fees 17,358
Adviser fee 15,738
Transfer agent fee and expenses 4,976
Directors' fee 1,277
Custodian fee 1,076
Printing and postage 914
Other operating expenses 301
--------
TOTAL EXPENSES BEFORE WAIVER 41,640
LESS: WAIVER OF EXPENSES BY ADVISER (10,885)
--------
NET EXPENSES 30,755
--------
NET INVESTMENT INCOME 1,960
--------
NET REALIZED GAIN ON INVESTMENTS 363,000
CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (246,393)
---------
NET GAIN ON INVESTMENTS 116,607
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 118,567
=========
The accompanying notes to financial statements
are an integral part of this information.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND
THE YEAR ENDED DECEMBER 31, 1995
(UNAUDITED)
Six months ended Year ended
June 30, 1996 December 31, 1995
----------------- -----------------
OPERATIONS:
Net investment income $ 1,960 $ 22,094
Net realized gain on
investments 363,000 545,666
Change in unrealized
appreciation on
investments (246.393) 413,895
--------- --------
INCREASE IN NET ASSETS
RESULTING
FROM OPERATIONS 118,567 981,655
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income - (36,454)
-------- --------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO
SHAREHOLDERS - (36,454)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued
(13 and 6,427 shares,
respectively) 200 89,137
Dividends reinvested (1,478
and 7,397 shares,
respectively) 22,092 91,382
Cost of shares redeemed
(145,919 and 309,482
shares, respectively) (2,253,116) (4,235,583)
---------- ----------
DECREASE IN NET ASSETS
FROM CAPITAL
SHARE TRANSACTIONS (2,230,824) (4,055,064)
---------- ----------
TOTAL DECREASE IN NET ASSETS (2,112,257) (3,109,863)
NET ASSETS AT BEGINNING
OF THE PERIOD 3,001,925 6,111,788
---------- ----------
NET ASSETS AT END OF THE PERIOD $ 889,668 $3,001,925
========== ==========
The accompanying notes to financial statements
are an integral part of this information.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For the
six
months
ended For the year ended December 31,
June 30, ------------------------------------------
1996 1995 1994 1993 1992 1991
-------- ---- ---- ---- ---- ----
Net asset value,
beginning of period $14.95 $12.31 $13.10 $12.86 $13.63 $ 9.35
Income from investment operations:
Net investment
income (loss) 0.03 0.11 0.18 (0.05) (0.08) (0.04)
Net realized and
unrealized gains
(losses) on
securities 0.81 2.67 (0.82) 0.29 (0.69) 4.32
------ ------ ------ ------ ------ ------
Total from investment
operations 0.84 2.78 (0.64) 0.24 (0.77) 4.28
Less distributions:
Distributions from
net investment income - (0.14) (0.15) - - -
------ ------ ------ ------ ------ ------
Total distributions - (0.14) (0.15) - - -
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END
OF PERIOD $15.79 $14.95 $12.31 $13.10 $12.86 $13.63
====== ====== ====== ====== ====== ======
TOTAL RETURN<F1> 5.62% 22.64% (4.85)% 1.87% (5.65)% 45.78%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in
thousands, end of
period $ 890 $ 3,002 $ 6,112 $ 9,457 $11,878 $12,560
Ratio of expenses
to average net
assets<F2><F3> 2.80% 2.75% 2.26% 2.18% 2.15% 2.28%
Ratio of net
investment income
(loss) to average
net assets<F2><F3> 0.19% 0.49% 1.13% (0.13)% (0.60)% (0.39)%
Portfolio turnover
rate<F1> 53% 99% 133% 295% 166% 112%
Average commission
rate paid on
portfolio
investment
transactions $0.1200 NA NA NA NA NA
<F1> Not annualized for the period ended June 30, 1996.
<F2> Annualized for the period ended June 30, 1996.
<F3> Net of waivers by adviser. Without waivers of expenses, the ratio of
expenses and net investment income (loss) to average net assets would have
been 3.84% and (0.85)% for the six months ended June 30, 1996.
The accompanying notes to financial statements
are an integral part of this information.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CharterCapital BLUE CHIP GROWTH FUND, INC. (the "Fund") is registered
under the Investment Company Act of 1940 as an open end management
investment company. The following is a summary of the significant
accounting policies of the Fund:
a. All securities, excluding short-term investments, are valued at the
last sale price reported by the principal security exchange on which
the issue is traded, or, if no sale is reported, the latest bid price.
Securities which are traded over-the-counter are valued at the latest
bid price if no sale is reported. Short-term investments are valued
at amortized cost which approximates value. Investment transactions
are recorded no later than the first business day after the trade
date.
b. Net realized gains and losses on investments, excluding short-term
investments, were computed on the basis of the first-in, first-out
cost method.
c. Provision has not been made for Federal income taxes since the Fund
has elected to be taxed as a "regulated investment company" and
intends to distribute substantially all taxable income to its
shareholders and otherwise comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies.
d. Dividend income is recognized on the ex-dividend date and interest
income is recognized on an accrual basis.
2. INVESTMENT ADVISORY AGREEMENT
The Fund has an agreement with Charter Capital Management, Inc., (the
"Adviser"), with whom certain officers and directors of the Fund are
affiliated, to serve as Investment Adviser and Manager.
The annual fee paid to the Adviser is paid monthly and is based on the
average daily closing net assets of the Fund. The annual fee is equal to
the sum of the following amounts: (i) 1.50% of the first $25,000,000; (ii)
1.15% of the next $25,000,000; and (iii) 0.75% of the excess over
$50,000,000.
Beginning January 22, 1996, if the aggregate annual operating expenses
(excluding interest, taxes, brokerage commissions and other costs incurred
in connection with the purchase or sale of portfolio securities, and
extraordinary items) exceed 2.80%, the Adviser will reimburse the Fund for
the amount of such excess. For the six months ended June 30, 1996, the
Adviser waived $10,885.
3. DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders are recorded on the ex-dividend date.
As of December 31, 1995, the Fund had net realized capital loss
carryforwards of $727,334 which fully expire December 31, 1998. It is
management's intention to make no distribution of any future realized
capital gains until the Federal income tax capital loss carryforwards are
exhausted.
4. NET UNREALIZED APPRECIATION
Net unrealized appreciation on investments as of June 30, 1996, is
comprised of the following:
Aggregate gross unrealized appreciation $19,488
Aggregate gross unrealized depreciation (3,646)
-------
Net unrealized appreciation $15,842
=======
5. INVESTMENT TRANSACTIONS
For the six months ended June 30, 1996, purchases and proceeds from sales
of investment securities (excluding short-term securities) were $934,403
and $3,548,473, respectively.
6. TERMINATION OF FUND
On January 22, 1996, the Board of Directors approved the liquidation and
termination of the Fund. Under the approved Plan of Liquidation, sales of
shares of the Fund ceased on January 22, 1996. The Fund, subject to
shareholder approval, plans to liquidate its securities holdings and
distribute the proceeds to its shareholders. No liquidation reserve has
been established as the Adviser has informed the Fund that it will assume
all obligations of the Fund that have not been paid prior to the date of
the final liquidating distribution as well as any unknown or contingent
liabilities of the Fund. As of July 18, 1996 the Fund is solely invested
in cash.
CHARTERCAPITAL BLUE CHIP GROWTH FUND, INC.
OFFICERS AND DIRECTORS
LAUREN E. TOLL
President, Treasurer, and Director
President,
Charter Capital Management, Inc.
JOEL T. HASSLER
Secretary
Assistant Vice President,
Charter Capital Management, Inc.
RICHARD H. HAVENER
Director
Past President,
Consultant, J.F. Cook Co., Inc.
BARBRA R. LASKY, CPA
Director
President,
Hafner, Lasky, & Diller, S.C.
LAWRENCE A. LIEBE
Director
General Manager,
Boise Cascade Office Products
THIS REPORT HAS BEEN PREPARED FOR THE INFORMATION
OF SHAREHOLDERS OF CHARTERCAPITAL BLUE CHIP GROWTH
FUND, INC., AND IS NOT AUTHORIZED FOR DISTRIBUTION
TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR
ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
INVESTMENT ADVISER
Charter Capital Management, Inc.
4920 West Vliet Street
Milwaukee, Wisconsin 53208
SHAREHOLDER SERVICING AGENT
Firstar Trust Company
P.O. Box 701
Milwaukee, Wisconsin 53201-0701
AUDITORS
Arthur Andersen LLP
100 East Wisconsin Avenue, Suite 1900
Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Foley & Lardner
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
CharterCapital
BLUE CHIP GROWTH FUND, INC.
4920 West Vliet Street
Milwaukee, Wisconsin 53208
414/257-1842
