MONTEREY
MUTUAL
FUND
Semi-Annual Report
May 31, 1997
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
MURPHY NEW WORLD TECHNOLOGY
CONVERTIBLE FUND
- --------------------------------------------------------------------------------
Principal
Value Value
- --------------------------------------------------------------------------------
LONG TERM INVESTMENTS 36.67%
<C> <S> <C>
CONVERTIBLE BONDS 36.67%
110,000 Convex Computer Corp Convertible ........ $106,563
426,000 Glycomed Inc Convertible ................ 385,530
75,000 Macneal-Schwendler Corp Convertible ..... 73,406
565,499
TOTAL LONG TERM INVESTMENTS
(cost $556,521) ......................... 565,499
SHORT TERM INVESTMENTS 4.80%
74,000 Star Treasury Fund
(cost $74,000) .......................... 74,000
TOTAL INVESTMENTS
(cost $630,521) ... 41.47% ............. 639,499
OTHER ASSETS LESS LIABILITIES .. 58.53% 902,650
TOTAL NET ASSETS .............. 100.00% $ 1,542,149
====== ===========
OCM GOLD FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 92.64%
MAJOR GOLD PRODUCERS 32.21%
5,000 Barrick Gold Corp ....................... 126,250
10,000 Homestake Mining Co ..................... 138,750
3,500 Newmont Mining Corp ..................... 136,937
7,500 Placer Dome Inc ......................... 136,875
-------
538,812
-------
OCM GOLD FUND (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
INTERMEDIATE GOLD PRODUCERS 11.23%
13,000 Amax Gold Inc.* ........................ $ 86,125
5,000 Ashanti Goldfields Ltd.* ............... 65,000
6,000 Battle Mountain Gold Co. ............... 36,750
-------
187,875
-------
MID-TIER GOLD PRODUCERS 14.23%
1,000 Getchell Gold Corp.* ................... 39,875
13,000 Goldcorp Class A* ...................... 97,500
2,500 Pioneer Group .......................... 62,344
6,000 TVX Gold Inc.* ......................... 38,250
------
237,969
-------
JUNIOR GOLD PRODUCERS 11.13%
8,000 Alta Gold Co.* ......................... 23,625
10,000 Dayton Mining.* ........................ 43,494
4,000 Miramar Mining Corp.* .................. 14,643
20,000 Richmont Mines Inc.* ................... 77,564
10,000 River Gold Mines Ltd. .................. 26,821
-------
186,147
-------
EXPLORATION AND DEVELOPMENT
COMPANIES 9.84%
20,000 Britannia Gold Corp.* .................. 13,773
5,000 Crown Resources Corp.* ................. 33,750
30,000 Franc-Or Resources Corp.* .............. 19,572
20,000 Gold Standard Inc.* .................... 15,937
10,000 Golden Queen Mining Ltd.* .............. 19,754
25,000 Omni Resources Inc.* ................... 12,686
30,000 South American Gold & Copper Ltd.* ..... 21,530
20,000 U.S. Gold Corp.* ....................... 19,687
99,500 Venoro Gold Corp., Class "A"* .......... 7,934
-------
164,623
-------
See notes to financial statements
<PAGE>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
OCM GOLD FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
PRIMARY SILVER PRODUCERS 4.92%
3,500 Coeur D'Alene Mines Corp.* ............ $ 47,688
5,000 Pan American Silver Corp.* ............ 34,688
-------
82,376
-------
PLATINUM/PALLADIUM PRODUCERS 5.55%
4,000 Stillwater Mining Co.* ................ 92,750
-------
GOLD MINING ROYALTY COMPANIES 3.53%
2,000 Euro-Nevada Mining .................... 59,079
-------
NON-FERROUS METAL 0%
100,000 Banner Mining Corp.* .................. 0
-------
TOTAL COMMON STOCKS
(cost $ 1,977,921) .................... 1,549,631
---------
SHORT TERM INVESTMENTS 4.42%
74,000 Star Treasury Fund
(cost $74,000) ........................ 74,000
-------
TOTAL INVESTMENTS
(cost $2,051,921) ............... 97.06% 1,623,631
OTHER ASSETS LESS LIABILITIES ... 2.94% 49,175
TOTAL NET ASSETS 100.00% $1,672,806
==========
<FN>
* Non income producing security
</FN>
</TABLE>
<TABLE>
<CAPTION>
CAMBORNE GOVERNMENT
INCOME FUND
- --------------------------------------------------------------------------------
Principal
Value Value
- --------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM INVESTMENTS 85.43%
ASSET BACKED 26.80%
30,000 Prudential 1993-59 A5 7.125%, due 12/25/20 . $ 29,466
75,000 Structured Asset Sec, 6.87%, due 08/25/26 .. 75,633
43,766 Travelers Mortgage Sec, 12.00%, due 03/1/14. 50,062
-------
155,161
-------
CORPORATE 11.54%
100,000 Westvaco Corp, 10.125%, 06/01/19 ........... 109,603
85,000 W.R. Berkley, 9.875%, due 05/15/08 ......... 99,235
-------
208,838
GOVERNMENT AGENCIES 39.09%
162,605 FNMA CMO 11.00%, due 04/25/07 .............. 174,851
21,691 GNMA 9.50%, due 09/15/19 ................... 23,482
37,601 GNMA Arm Pool 8927 6.50%, due 7/20/26 ...... 38,071
145,000 FHR 1617 PN 6.50%, due 11/15/23 ............ 134,693
-------
371,097
-------
U.S. GOVERNMENT SECURITIES 8.00%
75,000 U.S. Treasury Notes 6.875%, due 07/31/99 ... 75,961
-------
TOTAL LONG TERM INVESTMENTS
(cost $ 775,302) ............................ 811,057
-----------
SHORT TERM INVESTMENTS 4.84%
46,000 Star Treasury Fund
(cost 46,000) ............................. 46,000
-----------
TOTAL INVESTMENTS
(cost $821,302) .............. 90.27% 857,057
OTHER ASSETS LESS LIABILITIES ............ 9.73% 92,363
-----------
TOTAL NET ASSETS ........................ 100.00% $ 949,420
===========
<FN>
* Non income producing security
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
(Continued)
PIA EQUITY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS 94.07%
BUSINESS SERVICES .93%
550 Donnelly Corp. .......................... $ 9,350
-------
CHEMICALS 2.45%
600 Olin Corp. .............................. 24,600
-------
COMMUNICATIONS 10.82%
1,090 Hummingbird Communication Ltd.* ......... 31,337
1,100 P-Com Inc.* ............................. 35,338
1,260 Sawtek Inc.* ............................ 42,053
-------
108,728
-------
COMPUTER & RELATED 18.93%
730 Ascend Communications Inc.* ............. 40,743
400 CDW Computer Centers Inc.* .............. 19,750
400 Cabletron Systems Inc.* ................. 17,600
800 Cisco Systems Inc.* ..................... 54,050
750 Oracle Corp.* ........................... 35,016
400 Tektronix Inc.* ......................... 22,950
-------
190,109
-------
CONTAINERS 1.81%
400 Mid-Ocean Ltd, Ord. A ................... 18,150
-------
DRUGS 3.05%
780 Watson Pharmaceutical Inc.* ............. 30,664
-------
FINANCIAL SERVICES 4.63%
1,750 Aames Financial ......................... 22,531
1,000 Capstead Mortgage Corp. ................. 24,000
-------
46,531
-------
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
(Continued)
PIA EQUITY FUND (Continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
FOOD & RELATED 6.01%
1,300 Food Lion Inc., Cl A ................... $ 8,734
1,400 Herbalife International Inc. ........... 28,875
900 Hormel Foods Corp. ..................... 22,725
60,334
FORESTRY & PAPER PRODUCTS 3.17%
1,400 Republic Group Inc. .................... 23,100
580 Rock-Tenn Co., Cl A* ................... 8,773
31,873
MEDIA & PUBLISHING 3.60%
660 CBT Group* ............................. 36,217
MEDICAL & RELATED 2.07%
1,000 Arterial Vascular Engineering* ......... 20,812
METALS & MINING .84%
200 Cleveland-Cliffs Inc. .................. 8,450
OIL, ENERGY & NATURAL GAS 3.68%
250 Eastern Enterprises .................... 8,625
350 Piedmont Natural Gas Co. ............... 8,531
600 Ultramar Diamond Shamrock Corp. ........ 19,800
------
36,956
------
RESTAURANTS 3.70%
640 Bob Evans Farms ......................... 9,080
1,200 Wendy's Intl ............................ 28,050
------
37,130
------
See notes to financial statements
<PAGE>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
(Continued)
PIA EQUITY FUND (Continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
RETAIL 13.43%
4,200 Ames Department Stores* ................. $33,994
1,080 Bed Bath & Beyond* ...................... 30,780
1,500 Brown Group Inc. ........................ 27,000
800 Kohl's Corp.* ........................... 43,100
-------
134,874
-------
TEXTILES & RELATED 4.80%
940 Lee Enterprises Inc. .................... 23,735
800 Russell Corp. ........................... 24,500
-------
48,235
-------
TRANSPORTATION &
EQUIPMENT 9.22%
330 Comair Holdings Inc. ..................... 8,539
400 GATX Corp. ............................... 22,700
660 Illinois Central Corp., Ser A ............ 23,843
600 Quintriles Trans National Corp.* ......... 37,500
-------
92,582
-------
UTILITIES .93%
530 Public Service Co., of New Mexico ........ 9,341
-------
TOTAL COMMON STOCKS
(Cost $688,758) 944,936
................................................... -------
SHORT TERM INVESTMENTS 3.86%
38,724 Star Treasury Fund
(Cost $38,724) ......................... 38,724
-------
TOTAL INVESTMENTS
(Cost $727,482) ............... 97.92% 983,660
Other assets less liabilities .. 2.08% 20,849
-------
TOTAL NET ASSETS ........................ 100.00% $ 1,004,509
=========
MURPHY NEW WORLD
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 73.21%
BIOTECHNOLOGY 69.57%
3,300 Amylin Pharma Inc.* ................... $ 42,694
2,200 Anergen Inc.* ......................... 6,462
2,000 Arqule Inc.* .......................... 37,000
3,000 Arris Pharmaceutical Corp.* ........... 40,125
2,200 Chiron Corp.* ......................... 41,662
1,500 Cocensys Inc.* ........................ 5,859
1,800 Corvas Intl Inc.* ..................... 11,475
2,500 Cytel Corp.* .......................... 4,766
4,600 Geron Corp.* .......................... 40,250
3,700 Idec Pharmaceuticals* ................. 83,019
14,000 Insite Vision Inc.* ................... 86,625
1,400 ISIS Pharmaceuticals* ................. 21,963
3,100 Ligand Pharmaceuticals Inc. CL B* ..... 36,425
4,600 Neurocrine* ........................... 44,275
600 Pharmacyclics Inc.* ................... 9,712
1,700 Ribozyme Pharmaceuticals Inc.* ........ 18,594
7,000 SCIOS* ................................ 44,187
1,600 Sequana Therapeutics Inc.* ............ 19,200
2,900 Sugen Inc.* ........................... 36,069
2,500 Vical Inc.* ........................... 31,406
20,500 Xoma Corp.* ........................... 104,422
766,190
PHARMACEUTICAL 3.64%
1,700 Synaptic Pharmaceutical Corp.* ........ 22,419
3,800 Trega Biosciences Inc.* ............... 17,575
-------
39,994
-------
See notes to financial statements
<PAGE>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
MURPHY NEW WORLD
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $785,297) .................... $ 806,184
SHORT TERM INVESTMENTS 2.54%
28,000 Star Treasury Fund
(Cost $28,000) ..................... 28,000
TOTAL INVESTMENTS
(Cost $813,297) ............ 75.75% 834,184
OTHER ASSETS LESS LIABILITIES. ........... 24.25% 267,002
-----------
TOTAL NET ASSETS 100.00% $ 1,101,186
===========
MURPHY NEW WORLD
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 87.24%
BIOTECHNOLOGY 18.46%
1,000 Amylin Pharmaceuticals Inc.* .......... $ 12,938
5,000 Anergen Inc.* ......................... 14,688
1,500 Arris Pharmaceuticals Corp.* .......... 20,063
4,000 Celtrix Pharmaceuticals Inc.* ......... 11,750
2,000 Cocensys Inc.* ........................ 7,813
800 Cortex Pharmaceuticals Inc.* .......... 2,775
2,000 Corvas International Inc.* ............ 12,750
5,000 Cytel Corp.* .......................... 9,531
1,500 Isis Pharmaceuticals* ................. 23,531
1,500 Ligand Pharmaceutical Inc. C1 B* ...... 17,625
2,000 Ribozyme Pharmaceuticals Inc.* ........ 21,875
1,500 Sequana Therapeutics Inc.* ............ 18,000
2,000 Sugen, Inc.* .......................... 24,875
1,800 Vical Inc.* ........................... 22,612
5,000 XOMA Corp.* ........................... 25,469
--------
246,295
--------
MURPHY NEW WORLD
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMUNICATIONS 10.24%
600 Octel Communications Corp.* .......... 11,512
7,000 Premisys Communications Corp.* ....... 99,312
6,200 Sync Rash Inc.* ...................... 25,769
-------
136,593
-------
COMPUTERS 29.11%
2,000 Adaptive Solutions Inc.* ............. $ 1,469
500 Adobe Systems Inc. ................... 22,391
1,900 Applied Magnetics Corp. Com.* ........ 47,263
2,500 Euphonix, Inc.* ...................... 9,297
4,000 Informix Corp. Com.* ................. 36,125
6,000 Intelligent Electrics Inc. Com.* ..... 15,937
200 Intel Corp. .......................... 30,287
6,900 Macromedia Inc.* ..................... 69,431
2,700 Read-Rite Corp. ...................... 56,194
10,000 Ross Systems Inc.* ................... 36,562
1,000 Seagate Technology Inc.* ............. 40,625
1,000 Sequent Computer Systems Inc.* ....... 16,812
1,000 Sonic Solutions* ..................... 6,000
-------
388,393
-------
MEDICAL DEVICES 4.15%
2,000 Abaxis Inc.* ......................... 5,625
300 Biocircuits Corp.* ................... 281
8,000 Insite Vision Inc. ................... 49,500
-------
55,406
-------
PHARMACEUTICALS 6.64%
4,200 Synaptic Pharmaceutical Corp. Com.* ... 55,387
7,200 Trega Biosciences Inc.* ............... 33,300
-------
88,687
-------
See notes to financial statements
<PAGE>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
MURPHY NEW WORLD
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
SEMI-CONDUCTORS 18.64%
800 Applied Materials Inc.* .............. $ 52,150
1,000 Cirrus Logic Inc.* ................... 12,063
2,000 Cypress Semiconductors Corp.* ........ 28,500
2,500 Genus Inc.* .......................... 14,453
6,000 Mattson Technology Inc.* ............. 63,375
25,000 Seeq Technology Inc.* ................ 61,328
2,000 Trikon Technologies Inc.* ............ 16,875
--------
248,744
--------
TOTAL COMMON STOCKS
(cost $1,123,932) .................... 1,164,118
---------
SHORT TERM INVESTMENTS 4.18%
55,823 Star Treasury Fund
(Cost $55,823) .................... 55,823
TOTAL INVESTMENTS
(cost $1,179,755) ......... 91.42% 1,219,941
COMMON STOCKS SOLD SHORT
(200) QUALCOMM INC. (PROCEEDS $6823) ...... (.72%) (9,637)
OTHER ASSETS LESS LIABILITIES ............. 9.30% 124,080
--------
TOTAL NET ASSETS ........................ 100.00% 1,334,384
=========
PIA SHORT TERM GOVERNMENT FUND
- --------------------------------------------------------------------------------
Principal
Value Value
- --------------------------------------------------------------------------------
LONG TERM INVESTMENTS 88.09%
ASSET BACKED 4.61%
1,331 Bear Stearns 1987-2B, due 02/20/15 .... $ 1,333
229,000 Prudential Home Ser 1993-59,
due 12/25/20 ........ ............... 224,921
1,000,000 Sallie Mae, due 02/11/98 .............. 990,625
---------
1,216,879
---------
GOVERNMENT AGENCIES 39.36%
500,000 FHLB L-1998, due 01/15/98 ............. 492,500
363,766 FHLMC 1295 E, due 03/15/04 ............ 364,562
39,047 FHLMC 1300 FA, due 07/15/04 ........... 39,047
127,493 FHLMC 1444E, due 01/15/00 ............. 127,334
459,456 FHLMC 609231, due 02/01/24 ............ 469,219
555,831 FHLMC Arm 755204, due 08/01/15 ........ 578,064
202,745 FHLMC CMO 1210 F, due 01/15/18 ........ 203,759
27,189 FHLMC CMO 1492FD, due 03/15/23 ........ 26,645
1,500,000 FNMA MTN, due 01/06/98 ................ 1,486,875
90,017 FNMA 1991-91 F ........................ 90,017
86,549 FNMA 92-143 G, 6.75%, due 10/25/18 .... 86,766
781,589 FNMA CMO 91-113 F, 5.189%,
due 03/25/02 ........................ 770,266
49,200 FNMA 91-121 F, due 09/25/98 ........... 49,200
49,433 FNMA 91-79, due 07/25/98 .............. 49,433
4,755,702 GNMA ARM 80013, due 11/20/26 .......... 4,862,706
197,409 GNMA ARM 8927, due 07/20/26 ........... 199,876
493,137 GNMA ARM 8951, due 08/20/26 ........... 499,301
----------
10,395,570
----------
See notes to financial statements
<PAGE>
MONTEREY MUTUAL FUND
Schedules of Investments - May 31, 1997
(Unaudited)
PIA SHORT TERM GOVERNMENT FUND
(continued)
- --------------------------------------------------------------------------------
Principal
Value Value
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES 44.12%
2,200,000 U.S. Treasury Note 5.625%, due 01/31/98 $2,197,937
6,000,000 U.S. Treasury Note 8.875%, due 02/15/99 6,262,500
1,700,000 U.S. Treasury Note 6.25%, due 02/28/02 1,683,000
1,500,000 U.S. Treasury Note 6.625%, due 04/30/02 1,507,031
----------
11,650,468
----------
TOTAL LONG TERM INVESTMENTS
(cost $23,191,140) ................... 23,262,917
SHORT TERM INVESTMENTS 10.99%
2,960,000 U.S. Treasury Bill, due 10/16/97
(cost $2,901,973) ................. 2,903,304
TOTAL INVESTMENTS
(cost $26,093,113) ......... 99.08% $26,166,221
OTHER ASSETS LESS LIABILITIES ............. .92% 241,553
TOTAL NET ASSETS .......................... 100.00% $26,407,774
PIA GLOBAL BOND FUND
- --------------------------------------------------------------------------------
Principal
Value Value
- --------------------------------------------------------------------------------
LONG TERM INVESTMENTS 93.32%
FOREIGN GOVERNMENT OBLIGATIONS 73.98%
CANADA
1,200,000 Canadian Government Bond, 7.00%,
due 09/01/01 $ 914,089
GERMANY
800,000 Bundes Republic Deutschland,
6.00%, due 07/04/07 470,789
1,400,000 Bundes Obligation 114, 6.50%,
due 03/15/00 872,885
ITALY
Bips-Buoni Poliennali, Republic of Italy,
6.75%, due 02/01/07 1,143,240
---------
3,401,003
---------
U.S. GOVERNMENT AGENCIES 2.13%
105,000 FHLMC CMO, 6.50%, due 11/15/23 97,537
---------
U.S. GOVERNMENT SECURITIES 17.21%
800,000 U.S. Treasury Notes, 5.875%,
due 02/15/00 791,313
---------
TOTAL LONG TERM INVESTMENTS
(cost $4,332,540) 4,289,853
---------
SHORT TERM INVESTMENTS 0.61%
28,000 Star Treasury Fund
(cost $28,000) 28,000
---------
TOTAL INVESTMENTS
(cost $4,360,540) .......... 93.93% 4,317,853
Other assets less liabilities ............ 6.07% 279,109
---------
TOTAL NET ASSETS ........................ 100.00% $ 4,596,962
===========
See notes to financial statements
<FN>
* Non income producing security
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Statements of Assets and Liabilities - May 31, 1997
(Unaudited)
Murphy
New World Camborne
Technology OCM Government PIA
Convertibles Gold Income Equity
------------ ---- ------ ------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See Note 5) ....................... $639,499 $1,623,631 $857,057 $983,660
Cash ............................... 878,458 74,167 77,887 0
Receivable for securities sold ..... 0 0 0 0
Receivable for fund shares sold .... 0 9,385 415 7,919
Income receivable .................. 16,356 1,350 11,863 163
Due from investment advisers ....... 6,160 7,770 5,796 7,184
Prepaid expenses and other ......... 19,376 6,756 7,502 19,943
------ ----- ----- ------
Total Assets 1,559,849 1,723,059 960,520 1,018,869
--------- --------- ------- ---------
LIABILITIES
Securities sold short, at value .... 0 0 0 0
Payable for securities purchased ... 0 35,925 0 0
Accrued expenses and other ......... 17,700 14,328 10,261 14,360
Dividends payable .................. 0 0 839 0
------ ------ ------ ------
Total Liabilities 17,700 50,253 11,100 14,360
------ ------ ------ ------
NET ASSETS
Capital stock, no par value; unlimited
shares authorized;
shares outstanding ................. 1,325,330 4,208,332 1,238,951 781,785
Undistributed net investment
income (loss) ...................... (3,309) (13,928) 749 (6,675)
Accumulated net realized gain
(loss) on investments and
foreign currencies ................. 211,150 (2,093,308) (326,035) (26,779)
Net unrealized appreciation
(depreciation) on investments
and foreign currencies ............. 8,978 (428,290) 35,755 256,178
----- -------- ------ -------
Net Assets ......................... 1,542,149 1,672,806 949,420 1,004,509
========= ========= ======= =========
CALCULATION OF MAXIMUM OFFERING PRICE
Net asset value and redemption
price per share .................... 26.84 7.44 13.51 17.68
Maximum sales charge
(4.50% of offering price for
OCM Gold, Camborne Government
Income, PIA Equity) ................ 0.00 0.35 0.64 0.83
Offering price to public ........... 26.84 7.79 14.15 18.51
Shares Outstanding ................. 57,463 224,766 70,256 56,801
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
PIA
Murphy Murphy Short Term
New World New World Government PIA
Biotechnology Technology Securities Global Bond
------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(See Note 5) $834,184 $1,219,941) $26,166,221 $4,317,853
Cash 239,482 81,264 (80,226) 1,369,928
Receivable for securities sold 0 0 100,186 0
Receivable for fund shares sold 13,132 5,250 0 10,000
Income receivable 101 220 341,871 89,271
Due from investment advisers 5,212 6,071 11,661 0
Prepaid expenses and other 13,310 39,311 12,723 11,270
------ ------ ------ ------
Total Assets 1,105,421 1,352,057 26,552,436 5,798,322
--------- --------- ---------- ---------
LIABILITIES
Securities sold short, at value 0 9,637 0 0
Payable for securities purchased 0 0 0 1,197,300
Accrued expenses and other 4,235 8,036 9,741 2,200
Dividends payable 0 0 134,921 1,860
----- ------ ------- ---------
Total Liabilities 4,235 17,673 144,662 1,201,360
----- ------ ------- ---------
NET ASSETS
Capital stock, no par value; unlimited
shares authorized;
shares outstanding 1,193,186 1,285,575 26,346,412 4,610,000
Undistributed net investment
income (loss) (5,471) (11,520) 0 7,654
Accumulated net realized gain
(loss) on investments and
foreign currencies (107,417) 22,958 (11,745) 4,593
Net unrealized appreciation
(depreciation) on investments
and foreign currencies 20,888 37,371 73,107 (25,285)
------ ------ ------ -------
Net Assets 1,101,186 1,334,384 26,407,774 4,596,962
========= ========= ========== =========
Calculation of Maximum Offering Price
Net asset value and redemption
price per share 7.32 18.66 10.18 20.43
Maximum sales charge
(4.50% of offering price for
OCM Gold, Camborne Government
Income, PIA Equity) 0.00 0.00 0.00 0.00
Offering price to public 7.32 18.66 10.18 20.43
Shares Outstanding 150,469 71,515 2,593,336 225,029
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Statements of Operations-For the Six Months Ended May 31,1997
(Unaudited)
Murphy
New World Camborne
Technology OCM Government PIA
Convertibles Gold Income Equity
------------ ---- ------ ------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest ............................ $ 4,646 $ 1,562 $ 36,149 $ 3,269
Dividends ........................... 10,848 4,151 0 24
Other Income ........................ 2 0 0 0
------ ----- ------ -----
Total Investment Income .......... 15,496 5,713 36,149 3,293
------ ----- ------ -----
EXPENSES
Distributor fees (Note 4) 583 7,969 495 4,044
Adviser & sub-adviser fees (Note 3) . 4,874 8,050 1,980 4,085
Transfer agent fees ................. 4,914 4,914 4,914 4,914
Administrative fees (Note 3) ........ 8,401 8,401 8,401 8,401
Custodian fees ...................... 854 854 854 854
Audit fees .......................... 4,626 4,377 3,631 4,128
Legal fees .......................... 5,989 5,164 5,164 5,164
Registration fees ................... 7,669 2,442 2,785 7,964
Trustees' fees ...................... 983 1,050 983 983
Insurance expense ................... (171) (191) 134) (4)
Printing expense .................... 2,131 2,131 2,131 2,131
Amortization of deferred
organization expenses ............. 0 0 0 0
Postage expense ..................... 546 546 546 546
Other expenses ...................... 943 943 943 943
------ ----- ------ -----
Total expenses ...................... 47,590 46,650 32,961 44,153
Less: Expense reimbursement
from adviser and sub-adviser ...... (28,611) (27,009) (27,517) (34,185)
------ ----- ------ -----
Net expenses ........................ 18,979 19,641 5,444 9,968
------ ----- ------ -----
Net Investment Income (Loss) ........ (3,483) (13,928) 30,705 (6,675)
------ ----- ------ -----
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on Investments
and foreign currencies .............. 336,435 7,698 (15,213) (31,378)
Net Change in Unrealized Appreciation
on Investments and foreign
currencies ....................... (319,204) (185,031) 6,682) (8,953)
-------- -------- ----- ------
Net Gain (Loss) on Investments ...... 17,231 (177,333) (8,531) (40,331)
-------- -------- ----- ------
Net Increase (Decrease) in Net Assets
Resulting from Operations ........ $ 13,748 $(191,261) $ 22,174 $(47,006)
========= ========= ======== ========
See notes to financial statements
*April 1, 1997 (Commencement of operations) through May 31, 1997
<PAGE>
MONTEREY MUTUAL FUND
Statements of Operations-For the Six Months Ended May 31,1997
(Unaudited)
(Continued)
PIA
Murphy Murphy Short-Term
New World New World Government PIA
Biotechnology Technology Securities Global Bond*
------------- ---------- ---------- ------------
INVESTMENT INCOME
Interest ............................ $ 458 $ 923 $ 682,110 $ 8,744
Dividends ........................... 0 0 70 0
Other Income ........................ 0 0 0 0
------- ------- ------- ------
Total Investment Income .......... 458 993 682,110 8,744
------- ------- ------- ------
EXPENSES
Distributor fees (Note 4) ........... 1,380 3,642 5,545 0
Adviser & sub-adviser fees (Note 3) . 2,503 5,128 32,499 808
Transfer agent fees ................. 4,914 4,914 4,914 1,481
Adminsitrative fees (Note 3) ........ 8,401 8,401 8,401 2,577
Custodian fees ...................... 854 854 854 250
Audit fees .......................... 2,634 2,634 2,633 1,250
Legal fees .......................... 5,164 5,164 5,225 836
Registration fees ................... 2,751 7,043 2,342 592
Trustees' fees ...................... 983 983 950 167
Insurance expense ................... (34) 76 79 0
Printing expense .................... 2,131 2,131 2,131 750
Amortization of deferred
organization expenses ............ 1,014 1,014 0 40
Postage expense ..................... 546 546 546 175
Other expenses ...................... 943 943 952 404
Total expenses ...................... 34,184 43,473 67,071 9,330
------- ------- ------- ------
Less: Expense reimbursement from
adviser and sub-adviser .......... (28,255) (30,960) (33,697) (8,240)
------- ------- ------- ------
Net expenses ........................ 5,929 12,513 33,374 1,090
------- ------- ------- ------
Net Investment income (Loss) ........ (5,471) (11,520) 648,736 7,654
------- ------- ------- ------
REALIZED AND UNREALIZED GAIN
(LOSS ON INVESTMENTS)
Net Realized Gain (Loss
Investments and foreign
currencies ....................... (43,364) 20,776 (7,849) 4,593
Net Change in Unrealized
Appreciation on Investments
and foreign currencies ............ 60,943 (73,074) (22,356) (25,285)
------- ------- ------- ------
Net Gain (Loss on Investments) ...... 17,579 (52,298) (30,205) (20,692)
------- ------- ------- ------
Net Increase (Decrease) in Net
Assets Resulting from
Operations ....................... $ 12,108 $(63,818) $618,531 $ (13,038)
======== ======== ======== =========
<FN>
* April 1, 1997 (Commencement of operations) through May 31, 1997
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Statements of Changes in Net Assets
MURPHY NEW
WORLD TECHNOLOGY OCM
CONVERTIBLES GOLD
---------------------------------------------------------------
For the Six For the For the Six For the
months ended year ended months ended year ended
May 31, Nov.30, May 31, Nov.30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) ........... $ 3,483 $ 553 $ (13,928) $ (21,724)
Net realized gain (loss) on
investments and foreign currencies ... 336,435 212,958 7,698 214,071
Net change in unrealized appreciation
on investments and foreign
currencies .......................... (319,204) 106,973) (185,031) (126,563)
-------- ------- -------- --------
Net increase (decrease) in net assets
resulting from operations .............. 13,748 320,484 (191,261) 65,784
-------- ------- -------- --------
Net equalization (debits) credits ...... 0 0 0 0
-------- ------- -------- --------
DIVIDENDS PAID TO SHAREHOLDERS
Dividends from net investment income ... 0 (1,285) 0 0
Dividends from capital gain ............ 0 0 0 0
-------- ------- -------- --------
0 (1,285) 0 0
-------- ------- -------- --------
Fund Share Transactions
Net proceeds from shares sold .......... 121,462 326,564 643,757 2,501,816
Dividends reinvested ................... 0 1,195 0 0
Payment for shares redeemed ............ (152,620) (464,611) (310,558) (1,457,789)
-------- -------- -------- ----------
Net increase (decrease) in net assets
from fund share transactions ......... (31,158) (136,852) 333,199 1,044,027
-------- -------- -------- ----------
Net increase (decrease) in net assets .. (17,410) 182,347 141,938 1,109,811)
NET ASSETS, Beginning of Period ........ 1,559,559 1,377,212 1,530,868 421,057
--------- --------- --------- -------
NET ASSETS, End of Period .............. $ 1,542,149 $ 1,559,559 $ 1,672,806 $ 1,530,868
============ ============ ============ ============
Changes in Shares Outstanding
Shares sold ............................ 4,552 13,949 79,195 266,932
Shares issued on reinvestment
of dividends ......................... 0 56 0 0
Shares redeemed ........................ (5,628) (19,771) (39,053) (153,575)
------ ------- ------- --------
Net Increase (decrease) in
shares outstanding .................. (1,076) (5,766) 40,142 113,357
====== ====== ====== =======
See notes to financial statements
<FN>
*Commencement of operations
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Statements of Changes in Net Assets
(Continued)
CAMBORNE MURPHY
GOVERNMENT PIA NEW WORLD
INCOME EQUITY TECHNOLOGY
-------------------------------------------------------------------------------------------
For the Six For the For the Six For the For the Six For the
months ended year ended months ended year ended months ended year ended
May 31, Nov.30 May 31, Nov.30 May 31, Nov.30,
1997 1996 1997 1996 1997 1996
---- ---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment
income (loss) ........ $ 30,705 $ 52,791 $ (6,675) $ (10,668) $ (5,471) $ (7,980)
Net realized gain (loss
On investments and
foreign currencies .. (15,213) (16,768)) (31,378) 89,453) (43,364) 49,534
Net change in unrealized
appreciation on investments
and foreign currencies . 6,682 7,296 (8,953) 41,380 60,943 (10,287)
----- ----- ------ ------ ------ -------
Net increase (decrease) in
net assets .............. 22,174 43,319 (47,006) 120,165 12,108 31,267
------ ------ ------- ------- ------ ------
Net equalization (debits)
credits .............. (482) 1,072 0 0 0 0
------ ------ ------- ------- ------ ------
DIVIDENDS PAID TO SHAREHOLDERS
Dividends from net
investment income .... (29,545) (54,239) 0 0 0 0
------- ------- - - - -
Dividends from capital
gain 0 0 (22,842) 0 0 0
(29,545) (54,239) (22,842) 0 0 0
------- ------- ------- - - -
FUND SHARE TRANSACTIONS
Net proceeds from
shares sold .......... 22,908 453,736 668,236 246,344 929,642 55,339
Dividends reinvested .... 29,775 39,722 21,270 0 0 0
Payment for shares
redeemed ............. (388,171) (137,564) (330,435) (177,649) (71,809) (255,567)
-------- -------- -------- -------- ------- --------
Net increase (decrease)
In net assets from fund
Share transactions ... (335,488) 355,894 359,071 68,695 857,833 (200,228)
-------- ------- ------- ------ ------- --------
Net increase (decrease)
in net assets ........ (343,341) 346,046 289,223 188,860 869,941 (168,961)
NET ASSETS,
BEGINNING OF PERIOD ... 1,292,761 946,715 715,286 526,426 231,245 400,206
--------- ------- ------- ------- ------- -------
NET ASSETS,
END OF PERIOD ........$ 949,420 $1,292,761 $ 1,004,509 $ 715,286 $ 1,101,186 $ 231,245
========== ========== =========== ========= =========== ===========
CHANGES IN SHARES OUTSTANDING
Shares sold ............. 1,708 34,168 37,019 13,446 129,038 7,403
Shares issued on reinvestment
of dividends ......... 2,213 2,948 1,195 0 0 0
Shares redeemed ......... (28,786) (10,221) 17,855 (11,283) (10,730) (34,577)
------- ------- ------ ------- ------- -------
Net increase (decrease)
in shares
outstanding .......... (24,865) 26,895 20,359 2,163 118,308 (27,174)
======= ====== ====== ===== ======= =======
See notes to financial statements
<FN>
*Commencement of operations
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
Statements of Changes in Net Assets
(Continued)
PIA
MURPHY SHORT-TERM
NEW WORLD GOVERNMENT PIA
TECHNOLOGY SECURITIES GLOBAL BOND
----------------------------------------------------------------------------
For the Six For the For the Six For the April 1,*
months ended year ended months ended year ended 1997
May 31, Nov.30, May 31, Nov.30, through
1997 1996 1997 1996 May 31, 1997
---- ---- ---- ---- ------------
(Unaudited) (Unaudited) (Unaudited)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) ....... $ (11,520) $ (11,928) $ 648,736 $ 300,274 $ 7,654
Net realized gain (loss) on
investments and foreign
currencies ....................... 20,776 20,751 (7,849) 19,098 4,593
Net change in unrealized appreciation
on investments and foreign
currencies ....................... (73,074) 87,955 (22,356) 87,797 (25,285)
Net increase (decrease) in
net assets resulting from
operations ....................... (63,818) 96,778 618,531 407,169 (13,038)
------- ------ ------- ------- -------
Net equalization (debits) credits ... 0 0 0 0 0
------- ------ ------- ------- -------
DIVIDENDS PAID TO SHAREHOLDERS
Dividends from net
investment income ................... 0 0 (648,736) (300,274) 0
Dividends from capital gain ......... (25,966) (28,439) (19,653) (29,522) 0
------- ------- ------- ------- -
(25,996) (28,439) (668,389) (329,796) 0
------- ------- -------- -------- ----------
FUND SHARE TRANSACTIONS
Net proceeds from shares sold ....... 644,671 604,440 6,914,780 17,827,441 4,610,000
Dividends reinvested ................ 24,991 28,186 604,148 247,478 0
Payment for shares redeemd .......... (131,858) (95,434) (1,525,468) (1,093,071) 0
-------- ------- ---------- ---------- ----------
Net increase (decrease) in net
assets from fund share
transactions ..................... 537,804 537,192 5,993,460 16,981,848 4,610,000
------- ------- --------- ---------- ---------
Net increase (decrease)
in net assets .................... 448,020 605,531 5,943,602 17,059,221 4,596,962
NET ASSETS, BEGINNING
OF PERIOD ........................ 886,364 280,833 20,464,172 3,404,951 0
------- ------- ---------- --------- ----------
NET ASSETS, END
OF PERIOD ........................ $ 1,334,384 $ 886,364 $ 26,407,774 $ 20,464,172 $ 4,596,962
=========== ========= ============ ============ ===========
CHANGES IN SHARES OUTSTANDING
Shares sold ......................... 34,120 30,965 679,920 1,751,176 225,029
Shares issued on reinvestment
of dividends ..................... 1,245 1,551 59,343 24,510 0
Shares redeemed ..................... (7,076) (5,056) (149,569) (108,439) 0
------ ------ -------- -------- ----------
Net Increase (decrease) in
shares outstanding ............... 28,289 27,460 589,694 1,667,247 225,029
====== ====== ======= ========= =======
See notes to financial statements
<FN>
*Commencement of operations
</FN>
</TABLE>
<PAGE>
MONTEREY MUTUAL FUND
Notes to Financial Statements - May 31, 1997
(Unaudited)
NOTE 1. ORGANIZATION
Monterey Mutual Fund (the "Fund"), formerly Monitrend Mutual Fund, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Trust was organized as
a Massachusetts business trust on January 6, 1984 and consists of eight series
of shares: the PIA Short Term Government Securities Series, the Camborne
Government Income Series (formerly Government Income), the OCM Gold Series
(formerly Gold), the PIA Equity Series (formerly Growth), the Murphy New World
Biotechnology Series (formerly Gaming and Leisure), the Murphy New World
Technology Series (formerly Technology), the Murphy New World Technology
Convertibles Series (formerly Growth & Income), and the PIA Global Bond Series
(collectively the "Series"), each of which has separate assets and liabilities
and differing investment objectives. The investment objective for each of the
series are: (1) the PIA Short-Term Government Securities Series, (the
"Short-Term Government Series"), to provide investors a high level of current
income, consistent with low volatility of principal through investing in short
term, adjustable rate and floating rate securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities; (2) the Camborne Government
Income Series, (the "Government Series"), growth of capital, whether over the
short or long-term, income and preservation of capital; (3) the OCM Gold Series,
(the "Gold Series"), long-term growth of capital through investing primarily in
equity securities of domestic and foreign companies engaged in activities
related to gold and precious metals; (4) the PIA Equity Series, (the "Equity
Series"), long-term growth of capital; (5) the Murphy New World Biotechnology
Series, (the "Biotechnology Series"), long-term growth of capital through
investing primarily in equity securities of companies that its investment
adviser believes can produce products or services that provide or benefit from
advances in biotechnology; (6) the Murphy New World Technolgy Series, (the
"Technology Series"), long-term growth of capital through investing primarily in
equity securities of companies that its investment adviser believes can produce
products or services that provide or benefit from advances in technology; (7)
the Murphy New World Technology Convertibles Series (the "Convertibles Series"),
to maximize total return through a combination of capital appreciation and
income; and (8) the PIA Global Bond Series, (the "Global Bond Series"), to
provide a high level of current income through investing in bonds denominated in
U.S. dollars and other currencies.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Series in the preparation of its financial statements.
Security Valuation--Portfolio securities that are listed on the national
securities exchanges are valued at the last sale price as of the close of such
securities exchanges, Eastern time, or, in the absence of recorded sales, at the
average of readily available closing bid and asked prices on such exchanges.
Unlisted securities are valued at the average of the quoted bid and asked prices
in the over-the-counter market. Securities and other assets for which market
quotations are not readily available are valued at fair market value as
determined in good faith by the Adviser under procedures established by and
under the general supervision and responsibility of the Fund's Board of
Trustees. Short-term investments which mature in less than 60 days are valued at
amortized cost (unless the Board of Trustees determines that this method does
not represent fair market value). Short-term investments which mature after 60
days are valued at market. Stock Index Futures, which are traded on commodities
exchanges, are valued at their last sales price as of the close of such
commodities exchanges.
Options--When a call is written, an amount equal to the premium received is
included in the Statement of Assets and Liabilities as an equivalent liability.
The amount of the liability is subsequently marked to market to reflect the
current market value of the option written. If an option which was written
either expires on its stipulated expiration date, or a closing purchase
transaction is entered into, a gain is realized (or loss if the cost of a
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security,
and the liability related to such option is extinguished. If a written call
option is exercised, a capital gain or loss is realized from the sale of the
underlying security and the proceeds from such sale are increased by the premium
originally received.
The premium paid for the purchase of a call or a put option is included in
the asset section of the Statement of Assets and Liabilities as an investment
and is subsequently adjusted to the current market value of the option. If a
purchased option expires on its stipulated expiration date, a loss is realized
in the amount of the cost of the option. If a closing sale transaction is
entered into, a gain or loss will be realized depending on whether the sales
proceeds from the closing sale transaction are greater or less than the cost of
the option. If a put option is exercised, a gain or loss will be realized from
the sale of the underlying security and the proceeds from such sale will be
decreased by the premium originally paid. If a call option is exercised, the
cost of the security purchased upon exercise will be increased by the premium
originally paid.
Stock Index Futures--The Equity Series, the Biotechnology Series, the
Technology Series, the Convertibles Series, and the Global Bond Series may from
time to time enter into Stock Index Futures contracts as a hedge to provide
protection against adverse movements in the prices
<PAGE>
MONTEREY MUTUAL FUND
Notes to Financial Statements - May 31, 1997
(Unaudited)
of securities in the portfolio. A stock index assigns relative values to the
common stocks included in the index, and the index fluctuates with changes in
the market value of the common stocks so included. When a Fund enters into a
stock index futures contract, it is required to pledge to the clearing broker an
amount of cash and/or securities equal to approximately 5% of the contract
amount. This amount is known as the "initial margin". Pursuant to the stock
index futures contract, the Fund agrees to take or make delivery of an amount of
cash equal to a specified dollar amount times the difference between the stock
index value at the close of the day and the price at which the futures contract
was originally struck. Such payments, known as the "variation margin", are
recorded by the Fund as unrealized gains or losses. When the futures contract
expires or is closed by the Fund, it realizes a gain or loss.
Financial Instruments with Off Balance Sheet Risk--Futures contracts
involve elements of market risk and credit risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The contract amounts of
these futures contracts reflect the extent of exposure to off balance sheet
risk.
The predominant market risk is that movements in the prices of the Fund's
portfolio securities being hedged may not correlate perfectly with the movement
in the prices of the future contracts. The lack of correlation could render the
Fund's hedging strategy unsuccessful and could result in a loss to the Fund.
Futures contracts are purchased only on exchanges. The exchange acts as the
counterparty to the Fund's futures transactions; therefore the Fund's credit
risk is limited to the failure of the exchange.
Treasury Bond Futures--The Government Series may from time to time enter
into Treasury Bond futures contracts as a hedge to provide protection against
adverse movements in the prices of securities in the portfolio. A Treasury Bond
future assigns relative values to a $100,000 par value of a 30 year U.S.
Treasury Bond with an 8% coupon, and the value fluctuates with changes in the
market value of the government security so included. Upon entering into a
Treasury Bond futures contract, Government is required to pledge to the clearing
broker an amount of cash and/or securities equal to approximately 5% of the
contract amount. This amount is known as the "initial margin". Pursuant to the
Treasury Bond futures contract, Government agrees to take or make delivery of an
amount of cash equal to a specified dollar amount times the difference between
the treasury bond futures value at the close of the day and the price at which
the futures contract was originally struck. Such payments, known as the
"variation margin", are recorded by Government as unrealized gains or losses.
When the futures contract expires or is closed by Government, Government
realizes a gain or loss.
Federal Income Taxes--It is the Fund's policy to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net income to its shareholders. Therefore the
Series paid no Federal income taxes and no Federal income tax provision was
required. At November 30, 1996, Convertibles had a capital loss carry forward of
$1,172,145 expiring as follows: $330 in 1997, $414,384 in 1998, $739,182 in 1999
and $18,249 in 2002. Gold had a capital loss carryover of $2,099,578 expiring as
follows: $193,276 in 1998, $95,110 in 1999, $335,282 in 2000, $348,419 in 2001,
$1,039,696 in 2002 and $87,795 in 2003. Government had a capital loss carry
forward of $310,821 expiring as follows: $281,460 in 1998, $12,593 in 2003 and
$16,768 in 2004. The Biotechnology Series had a capital loss carry forward of
$64,053 expiring as follows: $2,547 in 2002 and $61,506 in 2003.
Organizational Costs--These costs have been capitalized and are being
amortized using the straight-line method over a period of sixty months beginning
on commencement of operations
Other--Securities transactions are recorded no later than the first
business day after the trade date. Discounts and premiums on securities
purchased are amortized over the life of the respective security. Realized gains
and losses on sales of securities are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on an accrual basis.
Use of Estimates--The preparation of financial statements
in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
NOTE 3. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS
The Convertibles Series has an investment advisory agreement with Murphy
Investment Management, Inc. ("Murphy"). The Convertibles Series pays Murphy a
fee computed daily and payable monthly, at the following annual rate based upon
daily net assets:
<PAGE>
MONTEREY MUTUAL FUND
Notes to Financial Statements - May 31, 1997
(Unaudited)
ASSETS FEE RATE
------ --------
0 to $150 million ............... 0.625%
$150 million to $250 million .... 0.500%
Over $250 million ............... 0.375%
The Biotechnology Series and Technology Series also have an investment
advisory agreement with Murphy. Each Series pays Murphy a fee, computed daily
and payable monthly, at an annual rate of 1.00% of their respective net assets.
The Gold Series has an advisory agreement with Orrell Capital Management, a
division of Orrell and Company, Inc. ("Orrell"). Under the agreement, the Gold
Series pays Orrell a fee computed daily and payable monthly, at the following
annual rates based upon daily net assets:
ASSETS FEE RATE
------ --------
0 to $50 million ................ 1.000%
$50 million to $75 million ...... 0.875%
$75 million to $100 million ..... 0.750%
$100 million to $150 million .... 0.625%
$150 million to $250 million .... 0.500%
Over $250 million ............... 0.375%
The Equity Series has an investment advisory agreement with Pacific Income
Advisors, Inc. ("PIA"). Equity pays PIA a fee computed daily and payable
monthly, at the following annual rate based upon daily net assets:
ASSETS FEE RATE
------ --------
0 to $50 million ................ 1.000%
$50 million to $75 million ...... 0.875%
$75 million to $100 million ..... 0.750%
$100 million to $150 million .... 0.625%
$150 million to $250 million .... 0.500%
Over $250 million ............... 0.375%
The Short-Term Government Series and Global Bonds Series each has an
investment advisory agreement with PIA. Each Series pays PIA a fee, computed
daily and payable monthly, at an annual rate of 0.20% and .40%, respectively, of
their net assets.
The Government Series has both an investment advisory agreement and a
sub-advisory agreement with PIA. Under the agreements, Government pays PIA fees,
computed daily and payable monthly, at an annual rate of 0.40% of the Government
Fund's daily net assets; and PIA pays Camborne a fee computed daily and paid
monthly at an annual rate of 0.20% of the Government Fund's daily net assets.
During the six months ended May 31, 1997 the advisers agreed to reimburse
the series for expenses (except distribution fees) in excess of 2.44% of average
net assets (for the Gold, Equity, Biotechnology, Technology and Convertibles
Series), 1.10% of average net assets for the Government Series, 0.51% of average
net assets of the Global Bond Series and 0.30% of average net assets of the
Short-Term Government Series. As a result, the advisers accrued reimbursement to
the Convertibles Series (28,611), Gold Series (27,009), Government Series
(27,517), Equity Series (34,185), Biotechnology Series (28,255), Technology
Series (30,960), Short-Term Government Series (33,697), and Global Bond Series
(8,240) in addition to foregoing their advisory fees.
<PAGE>
MONTEREY MUTUAL FUND
Notes to Financial Statements - May 31, 1997
(Unaudited)
The Series has a fund accounting and administrative agreement with American
Data Services, Inc. ("ADS"). ADS receives a fee, computed daily and payable
monthly, at an annual rate of .1% of average daily net assets, subject to a
monthly minimum.
NOTE 4. DISTRIBUTION AGREEMENT AND PLAN
Syndicated Capital, Inc. serves as the Distributor of each Series's shares.
The President and sole shareholder of the Distributor is also the Chairman and
minority shareholder of PIA, as well as a trustee of the Trust.
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The Plan authorizes each Series,
exept the Global Bond Series, to reimburse the Distributor for marketing
expenses incurred in distributing shares of each Series, including the cost of
printing sales material and making payments to dealers in each Series's shares,
in any fiscal year, subject to a limit of 0.99% for the Gold and Equity Series,
0.25% for the Biotechnology, Technology and Convertibles Series, 0.10% for the
Government Series, and 0.05% for the Short-Term Government Series. The
Distributor and/or the advisers will bear such expenses beyond this limitation.
For the six months ended May 31, 1997, the following amounts were paid or
accrued for such expenses: Convertibles ($583), Gold ($7,969), Government
($495), Equity ($4,044), Biotechnology ($1,380), Technology ($3,642), Short-Term
Government ($5,545).
NOTE 5. PURCHASES AND SALES OF SECURITIES
The cost of purchases and sales of investment securities (other than
short-term investments) for the six months ended May 31, 1997, were as follows:
<TABLE>
<S> <C> <C>
PURCHASES SALES
Convertibles Series $608,323 $1,524,285
Gold Series 459,069 195,495
Government Series 504,817 646,574
Equity Series 450,258 140,331
Biotechnology Series 842,763 123,843
Technology Series 569,209 133,677
Short-Term Government Series 15,950,602 8,036,501
Global Bond Series 4,428,477 795,757
</TABLE>
Unrealized appreciation and depreciation on investments at May 31, 1997, based
on cost for Federal income taxes, are as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized Unrealized
Appreciation Depreciation Net
Convertibles Series $2,654 $ 0 $2,654
Gold Series 35,833 (464,123) (428,290)
Government Series 39,601 (3,846) 35,755
Equity Series 261,880 (5,702) 256,178
Biotechnology Series 66,549 (45,661) 20,888
Technology Series 213,202 (175,831) 37,371
Short-Term Government Series 76,471 (3,364) 73,107
Global Bond Series 5,792 (48,479) (42,687)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
MURPHY NEW WORLD TECHNOLOGY CONVERTIBLES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C> <C>
For the six months For the Year Ended November 30,
ended May 31, 1997* 1996 1995 1994 1993 1992
-------------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning
of period ........................... $ 26.64 $ 21.42 $ 16.67 $ 17.20 $ 18.53 $ 19.20
INCOME FROM INVESTMENT OPERATIONS
Net investment income .................. (.06) 0.01 0.02 0.09 0.07 0.16
Net realized and unrealized gain (loss)
on investments ...................... .26 5.23 4.82 (0.58) (1.22) (0.67)
Total from investment operations ....... .20 5.24 4.84 (0.49) (1.15) (0.51)
LESS DISTRIBUTIONS
Dividends from net investment income ... 0 (0.02) (0.09) (0.04) (0.18) (0.16)
Total distributions .................... 0 (0.02) (0.09) (0.04) (0.18) (0.16)
Net asset value, end of period ......... $ 26.84 $ 26.64 $ 21.42 $ 16.67 $ 17.20 $ 18.53
Total return** ......................... .75% 24.49% 29.19% (2.86%) (6.26%) (2.68%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) .......................... 1,542% 1,560% 1,377% 1,573% 2,538% 6,149%
Ratio of expenses to average
net assets# ......................... 2.44%+ 2.26% 2.44% 2.44% 2.44% 2.44%
Ratio of net investment income
(loss) to average net assets ........ (.45%)+ 0.04% 0.10% 0.46% 0.21% 0.57%
Portfolio turnover rate ................ 53.16% 80.93% 151.86% 0% 1.59% 4.52%
Average commission rate per share ...... $ 0.10950 $ 0.13859
<FN>
+ Annualized
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratios of expenses to average net assets would have been
6.12%, 5.11%, 6.08%, 5.46%, 4.39% and 3.46% respectively.
* On 12/31/96 Murphy Investment Management, Inc. became the Fund's
investment adviser.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND, OCM GOLD
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C> <C>
For the six months For the Year Ended November 30,
ended May 31, 1997++ 1996* 1995* 1994 1993 1992
(Unaudited)
------------------------------------------------------------------------------------------
Net asset value, beginning
of period ............................... $8.29 $ 5.91 $ 5.87 $ 11.94 $ 9.84 $ 14.49
INCOME FROM INVESTMENT OPERATIONS
Net investment income ................... (.07) (0.15) (0.09) (0.15) (0.09) 0.01
Net realized and unrealized gain (loss)
on investments .......................... (.78) 2.53 0.13 (5.92) 2.20 (4.66)
------ ----- ---- ----- ----- -----
Total from investment operations ........ (.85) 2.38 0.04 (6.07) 2.11 (4.65)
----- ----- ---- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income .................................. 0 0.00 0.00 0.00 (0.01) 0.00
----- ----- ---- ----- ----- -----
Total distributions ..................... 0 0.00 0.00 0.00 (0.01) 0.00
----- ----- ---- ----- ----- -----
Net asset value, end of period .......... $ 7.44 $ 8.29 $ 5.91 $ 5.87 $ 11.94 $ 9.84
Total return** .......................... (10.25%) 40.27% 0.68% (50.84%) 21.47% (32.09%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) .............................. 1,673 1,531% 421% 1,274% 3,147% 2,493%
Ratio of expenses to average
net assets# ............................. 2.44%+ 2.37% 2.44% 2.45% 2.43% 2.45%
Ratio of net investment income
(loss) to average net assets ............ (1.73%)+ (1.72)% (1.57)% (1.26%) (0.84%) 0.06%
Portfolio turnover rate ................. 13.08% 35.70% 15.57% 229% 969% 626%
Average commission rate per share ....... $ .02841 $ .05482
<FN>
+ Annualized
* Based on average shares outstanding.
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not
been in effect, the ratios of expenses to average net assets would
have been 5.79%, 6.15%, 12.52%, 5.58%, 4.55% and 4.71% respectively.
++ On 12/13/96 Orrell and Company, Inc. became the Fund's investment
adviser.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND, PIA EQUITY
Financial Highlights
(For a share oustanding throughout each period)
<S> <C> <C> <C> <C> <C> <C>
For the six months For the Year Ended November 30,
ended May 31, 1997++ 1996 1995 1994 1993 1992
(Unaudited)
--------------------------------------------------------------------------------
Net asset value, beginning
of period ...................................... $ 13.59 $ 13.88 $ 12.76 $ 14.16 $ 13.13 $ 13.90
-------- --------- -------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .......................... .42 0.73 0.81 0.87 0.72 0.56
Net realized and unrealized gain (loss)
on investments ................................. (.09) (0.28) 1.12 (1.39) 1.08 (0.68)
-------- --------- -------- -------- --------- ---------
Total from investment operations ............... .33 0.45 1.93 (0.52) 1.80 (0.12)
-------- --------- -------- -------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income ........... (.41) (0.74) (0.81) (0.88) (0.77) (0.65)
-------- --------- -------- -------- --------- ---------
Total distributions ............................ (.41) (0.74) (0.81) (0.88) (0.77) (0.65)
-------- --------- -------- -------- --------- ---------
Net asset value, end of period ................. $ 13.51 $ 13.59 $ 13.88 $ 12.76 $ 14.16 $ 13.13
======== ========== ======== ======= ========= ========
Total return** ................................. 2.48% (3.42%) 15.56% (3.75%) 13.96% (0.93%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) ................................... 949 1,293% 947% 882% 1,280% 1,893%
Ratio of expenses to average
net assets# .................................. 1.10%+ 1.07% 1.10% 1.10% 1.10% 2.17%
Ratio of net investment income
(loss) to average net assets ................. 6.22%+ 5.35% 6.04% 6.47% 5.14% 4.32%
Portfolio turnover rate ........................ 55.85% 129.17% 91.03% 66.36% 118% 159%
<FN>
+ Annualized
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratios of expenses to average net assets would have been
6.67%, 5.68%, 5.73%, 5.52%, 3.66% and 3.86% respectively.
++ On 12/13/96 Camborne Investment Corp. became the Fund's investment
sub-adviser.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND, PIA EQUITY
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C> <C>
For the six Year ended Year ended Year ended Year ended April 1
months ended Nov. 30, Nov. 30, Nov. 30, Nov. 30, thru Nov. 30,
May 31, 1997++ 1996* 1995* 1994 1993 1992
------------------------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period ........ $19.63 $15.36 $ 11.12 $ 13.35 $ 13.59 $ 12.00
------ ------ --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss) ....................... (.14) (0.37) (0.24) (0.52) (0.20) (0.04)
Net realized and unrealized gain (loss)
on investments ........................... (1.13) 4.64 4.48 (1.71) (0.04) 1.63
------ ------ --------- --------- --------- ---------
Total from investment operations ............ (1.27) 4.27 4.24 (2.23) (0.24) 1.59
------ ------ --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from net investment income ........ 0 0.00 0.00 0.00 0.00 0.00
------ ------ --------- --------- --------- ---------
Dividends from Capital Gains ................ (.68) 0.00 0.00 0.00 0.00 0.00
------ ------ --------- --------- --------- ---------
Total distributions ......................... (.68) 0.00 0.00 0.00 0.00 0.00
------ ------ --------- --------- --------- ---------
Net asset value, end of period .............. $ 17.68 $ 19.63 $ 15.36 $ 11.12 $ 13.35 $ 13.59
========= ========= ========= ========= ========= =========
Total return** .............................. (6.49%) 27.80% 38.13% (16.70%) (1.77%) 13.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ........ 1,005 715 526 610 1,261 557
Ratio of expenses to average net assets# .... 2.44%+ 2.25% 2.44% 2.44% 2.44% 2.44%+
Ratio of net investment income (loss) to average
net assets .................... (1.63%)+ (2.07%) (2.21%) (2.22%) (2.02%) (1.31%)+
Portfolio turnover rate ..................... 22.92% 41.22% 23.75% 26.57% 26% 3%
Average commission rate per share ........... $ .06000 $ .10548
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratio of expenses to average net assets would have been
10.79%, 11.73%, 11.44%, 8.52%, 6.44% and 12.12%, respectively.
++ On 12/13/96 Pacific Income Advisers, Inc. became the Fund's investment
adviser.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
MURPHY NEW WORLD BIOTECHNOLOGY
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C>
For the six Year ended Year ended Year ended Year ended
months ended Nov. 30, Nov. 30, Nov. 30, Nov. 30,
May 31, 1997++ 1996* 1995* 1994 1993
-----------------------------------------------------------------------
(Unaudited)
Net asset value, beginning of period ........... $ 7.19 $ 6.74 $ 6.12 $ 7.99 $ 8.00
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss) .......................... (.09) (0.17) (0.15) (0.08) (0.01)
Net realized and unrealized gain
on investments ................................. .22 0.62 0.77 (1.79) 0.00
-------- -------- -------- -------- --------
Total from investment operations ............... .13 0.45 0.62 (1.87) (0.01)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income ........... 0 0.00 0.00 0.00 0.00
-------- -------- -------- -------- --------
Total distributions ............................ 0 0.00 0.00 0.00 0.00
-------- -------- -------- -------- --------
Net asset value, end of period ................. $ 7.32 $ 7.19 $ 6.74 $ 6.12 $ 7.99
========= ======= ======== ======== ========
Total return** ................................. 1.81% 6.67% 10.13% (23.40%) (0.13%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ........... 1101% 231 400 824 634
Ratio of expenses to average net assets ........ 2.64%+ 2.65% 2.89% 2.89% 2.70%+
Ratio of net investment income (loss) to average
net assets# .................................... (2.43%)+ (2.31%) (2.18%) (1.18%) (2.03%)+
Portfolio turnover rate ........................ 31.51% 02.79% 36.89% 26.58% 0%
Average commission rate per share .............. $ .06923 $ .09613
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratio of expenses to average net assets would have been
15.20, 15.28%, 9.96%, 6.40% and 5.19%, respectively.
++ On 12/20/96 Murphy Investment Management became the Fund's investment
adviser.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
MURPHY NEW WORLD TECHNOLOGY
Financial Highlights
(For a share outstanding throughout each period)
For the six Year ended Year ended Year ended Year ended
months ended Nov. 30, Nov. 30, Nov. 30, Nov. 30,
May 31, 1997++ 1996* 1995* 1994 1993
-------------- ----- ----- ---- ----
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ................. $20.51 $17.81 $14.35 $14.82 $15.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss) ................ (0.21) (0.40) (0.32) (0.18) (0.01)
Net realized and unrealized (loss)
on investments ....................... (1.04) 4.86 4.19 (0.29) (0.17)
----- ---- ---- ----- -----
Total from investment operations ..... (1.25) 4.46 3.87 (0.47) (0.18)
----- ---- ---- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment income . 0 0.00 0.00 0.00 0.00
Dividends from Capital Gains ......... (.60) (1.76) (0.41) 0.00 0.00
---- ----- ----- ---- ----
Total distributions .................. (.60) (1.76) (0.41) 0.00 0.00
---- ----- ----- ---- ----
Net asset value, end of period ....... 18.66 20.51 $17.81 $0014.35 $14.82
===== ===== ====== ======== ======
Total return** ....................... (6.30%) 26.32% 26.95% (3.17%) (1.20%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) . 1334 886 281 283 38
Ratio of expenses to average
net assets# ........................ 2.44%+ 2.34% 2.44% 2.44% 1.70%+
Ratio of net investment income
(loss) to average net assets ....... (2.24%)+ (2.06%) (1.97%) (1.79%) (1.63%)+
Portfolio turnover rate .............. 14.83% 17.33% 40.77% 29.26% 0%
Average commission rate per share .... $.11082 $.07989
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratio of expenses to average net assets would have been 8.46%,
10.44%, 18.74%, 11.19% and 30.48%, respectively.
++ On 12/13/96 Murphy Investment Management became the Fund's investment
adviser.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND
PIA SHORT-TERM GOVERNMENT SECURITIES
Financial Highlights
(For a share outstanding throughout each period)
For the six Year ended Year ended April 22,1994 thru
months ended Nov. 30, Nov. 30, Nov. 30,
May 31, 1997 1996 1995 1994
------------ ---- ---- ----
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ................... $10.21 $10.12 $9.98 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss) ................... .30 0.56 0.57 0.27
Net realized and unrealized gain
on investments .......................... (.02) 0.19 0.14 (0.02)
Total from investment operations ........ .28 0.75 0.71 0.25
LESS DISTRIBUTIONS
Dividends from net investment income .... (.30) (0.56) (0.57) (0.27)
Dividends from capital gains ............ (.01) (0.10) 0) 0)
Total distributions ..................... (.31) (0.66) 0) 0)
Net asset value, end of period .......... 10.18 $10.21 $10.12 $9.98
Total return** .......................... 2.74% 7.68% 7.50% 2.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .... 26,408 20,464 3,405+ 2,041+
Ratio of expenses to average
net assets# ........................... .30%+ 0.44% 0.46% 0.44%+
Ratio of net investment income (loss)
to average net assets ................... 5.83%+ 5.51% 5.71% 4.68%+
Portfolio turnover rate ................. 43.77% 21.54% 163.55% 209.94%
<FN>
+ Annualized.
** Excluding sales charge. Not annualized for periods less than a year.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratio of expenses to average net assets would have been .60%,
1.19%, 2.01% and 3.46%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONTEREY MUTUAL FUND, PIA GLOBAL BOND
Financial Highlights
(For a share outstanding throughout each period)
April 1, 1997
(Commencement of Operations)
through May 31, 1997
--------------------
(Unaudited)
<S> <C>
Net asset value, beginning
of period ........................................... $20.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .................................. 0.12
Net realized and unrealized gain (loss)
on investments and foreign currencies ............... .31
-------
Total from investment operations ....................... 0.43
-------
LESS DISTRIBUTIONS
Dividends from net investment income ................... 0
-------
Total distributions .................................... 0
-------
Net asset value, end of period ......................... $20.43
=======
Total return** ......................................... 2.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) .......................................... 4,597
Ratio of expenses to average
net assets+ ......................................... 0.51%
Ratio of net investment income
(loss) to average net assets+ ....................... 3.57%
Portfolio turnover rate ................................ 5.90%
<FN>
+ Annualized
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratio of expenses to average net assets would have been 4.35%.
** Not annualized for periods less than a year.
</FN>
</TABLE>
See notes to financial statements
