MERIDIAN FUND
January 27, 1999
To Our Shareholders:
The Meridian Fund's net asset value per share at December 31, 1998 was $24.29.
This represents an increase of 3.09% for the calendar year. The Fund's total
return and average annual compound rate of return since inception, August 1,
1984, were 596.7% and 14.4%, respectively. The Fund made a dividend distribution
of $.29 and a capital gain distribution of $6.35 on September 23, 1998. The
Fund's assets at the close of the quarter were invested 11.2% in cash and cash
equivalents and 88.8% in stocks. Total net assets were $229,787,572 and there
were 8,507 shareholders.
Equities experienced another exceptional year during 1998. The S&P 500 gained
28.6 percent, primarily the result of a steady economy and lower interest rates.
The S&P 500 has advanced for eight consecutive years, with gains in excess of 20
percent during each of the past four years. Small-cap stocks continued to under
perform the market, but this time by a significant margin. The Russell 2000
posted a loss of 3.4 percent during the year. The best performing areas of the
market were large technology stocks such as Microsoft, Intel, Cisco and Dell,
and internet related issues such as America Online, Yahoo and Amazon.com. The
worst performing sectors included energy, hotels and real estate.
It was another good year for the bond market. The Dow Jones Bond Index advanced
to 106.42, from 105.05 at the end of 1997, a gain of 1.3 percent. The interest
rate on the five-year government bond declined from 5.72 percent to 4.59 percent
during the year.
The economy recorded a solid year during 1998. The problems in Asia, Russia and
South America only modestly impacted our economy. Corporate profits were weak
but all other indicators were positive. Gross Domestic Product increased
approximately 3 percent, interest rates declined, inflation remained calm, more
jobs were created, unemployment declined and wage gains eased. It will be
difficult to repeat this performance again in 1999, but we see nothing in the
current mix to cause a recession. Our forecast for 1999 is for continued growth
with modest increases in interest rates and inflation. Corporate profits, in our
opinion, will be flat to slightly higher. The economic landscape, in our view,
will be modestly favorable for equities during 1999.
The S&P 500 has outperformed the Russell 2000 for five consecutive years and by
a wide margin. Popular large-cap stocks sell at extreme valuations, leaving
little room for error. The price valuations are much more compelling in the
small-cap sector, especially when earnings prospects for the next few years are
taken into consideration. We don't
<PAGE>
know when the psychology will shift or what the catalyst will be, but the odds
of a positive multi-year cycle for investors in small and medium-sized growth
stocks continues to improve. Our research is focused on companies with revenues
of less than a billion dollars, growing in excess of 15 percent and selling at
reasonable valuations. This excludes, for the time being, internet stocks whose
market caps, in our view, more than discount the industry's positive prospects.
Purchases during the quarter included KEMET Corporation, P.F. Chang's China
Bistro, Inc., PETsMART, Inc., Precision Drilling Corporation, Scientific Games
Holdings Corporation, Sonic Corporation, Synopsis, Inc., and Wackenhut
Corrections Corporation. We increased our position in Cost Plus, Inc. Sales
included Information Resources, Meadowcraft, Inc., Mylan Laboratories, Inc.,
PharMerica, Inc., Quorum Health Group, Inc., and Spieker Properties.
P.F. Chang's China Bistro, a recent purchase, owns and operates 23 full-service
restaurants featuring traditional Chinese cuisine in a contemporary bistro
setting. The menu is complemented by a full-service bar offering a selection of
wines, specialty drinks and Asian beers. The company's seasoned management team
has developed a business model with excellent unit characteristics that include
a required equity investment by restaurant managers and senior chefs. The market
is large with no national competitor at this time. Management expects to open 13
restaurants in 1999 and eventually expand the concept nationally. The large
market opportunity and relatively small base business represent the potential
for above average growth for many years to come.
We wish everyone a happy and prosperous New Year.
Sincerely,
/s/ Richard F. Aster, Jr.
Richard F. Aster, Jr.
President
2
<PAGE>
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
COMMON STOCK - 88.8%
BANKING AND FINANCE - 2.4%
Pacific Century Financial Corp.*..................... 225,000 $ 5,484,375
CELLULAR COMMUNICATIONS - 3.3%
Vanguard Cellular Systems, Inc. - Class A............ 295,000 7,614,688
CONSUMER PRODUCTS - 2.1%
Nu Skin Enterprises, Inc. ........................... 205,000 4,843,125
CONSUMER SERVICES - 9.4%
Equity Corporation International*.................... 195,000 5,179,688
Regis Corporation*................................... 135,000 5,400,000
Sotheby's Holdings, Inc. - Class A*.................. 195,000 6,240,000
Stewart Enterprises, Inc. - Class B*................. 215,000 4,783,750
CORRECTIONAL & DETENTION FACILITIES - 1.9%
Wackenhut Correction Corp. .......................... 152,100 4,353,862
ENERGY - 1.9%
Marine Drilling Companies, Inc. ..................... 275,000 2,114,062
Precision Drilling Corp. ............................ 195,000 2,205,938
HEALTH SERVICES - 5.8%
Assisted Living Concepts, Inc. ...................... 176,800 2,320,500
Beverly Enterprises, Inc.*........................... 400,000 2,700,000
Health Management Associates, Inc. - Class A......... 235,000 5,081,875
Province Healthcare Company.......................... 90,000 3,228,750
HOTELS and LODGING - 1.8%
Extended Stay America, Inc. ......................... 280,000 2,940,000
Suburban Lodges of America, Inc. .................... 145,000 1,187,188
INDUSTRIAL SERVICES - 9.0%
Catalina Marketing Corporation....................... 90,000 6,153,750
Expeditors International of Washington, Inc.*........ 135,000 5,670,000
Paychex, Inc.*....................................... 100,000 5,143,750
Superior Services, Inc. ............................. 185,000 3,711,563
INDUSTRIAL PRODUCTS - 0.6%
TETRA Technologies, Inc. ............................ 125,000 1,367,187
INSURANCE - 1.3%
Annuity and Life Re (Holdings), Ltd. ................ 110,000 2,970,000
LEISURE & AMUSEMENT - 1.0%
Scientific Games Holdings Corp. ..................... 115,100 2,172,512
REAL ESTATE INVESTMENT TRUSTS - 7.7%
Arden Realty Group, Inc.*............................ 215,000 4,985,313
Kilroy Realty Corporation*........................... 225,000 5,175,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
(unaudited)
3
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------
<S> <C> <C>
COMMON STOCK (continued)
Spieker Properties, Inc.*............................ 56,126 $ 1,943,363
The Town and Country Trust*.......................... 345,000 5,541,562
RESTAURANTS - 6.5%
CBRL Group, Inc.*.................................... 175,000 4,079,687
CEC Entertainment, Inc.*............................. 175,000 4,856,250
P.F. Chang's China Bistro............................ 125,000 2,843,750
Sonic Corporation.................................... 125,000 3,109,375
RETAIL - 17.4%
Bed, Bath and Beyond, Inc. .......................... 160,000 5,460,000
Cost Plus, Inc. ..................................... 134,800 4,229,350
Family Dollar Stores, Inc.*.......................... 255,000 5,610,000
Heilig-Meyers Company*............................... 354,600 2,371,387
Kohl's Corporation................................... 135,000 8,294,062
Mazel Stores, Inc. .................................. 150,000 1,931,250
PETsMart, Inc. ...................................... 447,650 4,924,150
West Marine, Inc. ................................... 335,000 3,308,125
Williams-Sonoma, Inc. ............................... 95,000 3,829,688
TECHNOLOGY - 13.8%
American Management Systems, Inc. ................... 140,000 5,600,000
Gartner Group, Inc. ................................. 173,000 3,676,250
KEMET Corporation.................................... 300,000 3,375,000
Molex Inc. - Class A*................................ 150,000 4,781,250
National Data Corp.*................................. 190,000 9,250,625
Synopsys, Inc. ...................................... 95,000 5,153,750
TELECOMMUNICATIONS/CABLE EQUIPMENT - 2.9%
ANTEC Corporation.................................... 290,000 5,836,250
Startec Global Communications Corp. ................. 95,700 921,113
------------
TOTAL COMMON STOCK (Identified cost $170,974,907)................ 203,953,113
U.S. GOVERNMENT OBLIGATIONS
(Identified cost $19,850,266) - 8.7%
U.S. Treasury Bills @ 3.720% due 1/7/99 (par value
$20,000,000).................................................. 19,994,166
------------
TOTAL INVESTMENTS (Identified Cost $190,825,173) - 97.5%......... 223,947,279
CASH AND OTHER ASSETS LESS LIABILITIES - 2.5%.................... 5,840,293
------------
NET ASSETS - 100%................................................ $229,787,572
============
Shares of capital stock outstanding.............................. 9,460,438
============
Net asset value per share........................................ $24.29
============
</TABLE>
* income producing
The accompanying notes are an integral part of the financial statements.
(unaudited)
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments (Cost $190,825,173)........................... $223,947,279
Cash and cash equivalents................................. 6,474,311
Receivables for:
Dividends.............................................. 237,824
Interest............................................... 30,050
Sales of capital stock................................. 503,631
Securities sold........................................ 591,204
Prepaid expenses.......................................... 7,489
------------
TOTAL ASSETS........................................... 231,791,788
------------
LIABILITIES
Payables for:
Capital stock repurchased.............................. 1,676,723
Securities purchased................................... 89,755
Accrued expenses.......................................... 237,738
------------
TOTAL LIABILITIES...................................... 2,004,216
------------
NET ASSETS.................................................. $229,787,572
============
Shares of capital stock outstanding, par value $.01
(25,000,000 shares authorized)............................ 9,460,438
============
Net asset value per share (offering and redemption price)... $24.29
============
Net assets consist of:
Paid in capital........................................... $193,795,386
Accumulated net realized gain............................. 2,133,796
Net unrealized appreciation on investments................ 32,986,006
Undistributed net investment income....................... 872,384
------------
$229,787,572
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
(unaudited)
5
<PAGE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends.......................................... $1,076,580
Interest........................................... 1,025,448
------------
Total investment income....................... $2,102,028
EXPENSES
Investment advisory fees........................... 965,954
Transfer agent fees................................ 122,650
Pricing fees....................................... 33,420
Reports to shareholders............................ 26,680
Custodian fees..................................... 30,510
Registration and filing fees....................... 16,079
Miscellaneous expenses............................. 15,440
Professional fees.................................. 17,020
Directors' fees and expenses....................... 2,208
------------
Total expenses................................ 1,229,961
------------
Net investment income.............................. 872,067
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gain on investments................... 2,126,544
Net increase in unrealized appreciation on
investments..................................... (21,489,870)
------------
Net realized and unrealized gains on investments... (19,363,326)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $(18,491,259)
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
(unaudited)
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended Year Ended
December 31, 1998 June 30, 1998
----------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income.............................. $872,067 $2,577,916
Net realized gain on investments................... 2,126,544 67,313,691
Net increase (decrease) in unrealized appreciation
of investments................................... (21,489,870) (15,072,297)
------------ ------------
Net increase (decrease) from operations.......... (18,491,259) 54,819,310
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income............... (1,187,972) (3,292,042)
Distributions from net realized capital gains...... (54,557,126) (49,775,120)
------------ ------------
Total distributions.............................. (55,745,098) (53,067,162)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of stock........................ 7,111,843 25,470,981
Reinvestment of distributions...................... 53,097,110 50,421,264
Less: redemptions.................................. (52,987,620) (133,870,770)
------------ ------------
Increase (decrease) resulting from capital share
transactions.................................. 7,221,333 (57,978,525)
------------ ------------
Total decrease in net assets....................... (67,015,024) (56,226,377)
NET ASSETS
Beginning of the period............................ 296,802,596 353,028,973
------------ ------------
End of the period (includes undistributed net
investment income of $313,759 and $1,902,416,
respectively).................................... $229,787,572 $296,802,596
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
(unaudited)
7
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
six months
ended For the year ended June 30,
December 31, --------------------------------------------------------------
1998 1998 1997 1996 1995 1994 1993
------------ -------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value - Beginning
of Period................. $33.26 $33.20 $32.21 $27.29 $24.27 $23.87 $18.97
-------- -------- -------- -------- -------- -------- -------
Income from Investment
- ------------------
Operations
- --------
Net Investment Income
(loss).................... 0.25 .27 .40 .30 .27 .09 (.01)
Net Gains (Losses) on
Securities (both realized
and unrealized)........... (2.58) 4.92 3.71 5.47 3.63 .76 5.51
-------- -------- -------- -------- -------- -------- -------
Total From Investment
Operations................ (2.33) 5.19 4.11 5.77 3.90 .85 5.50
-------- -------- -------- -------- -------- -------- -------
Less Dividends and
Distributions
- -----------------------
Dividends from net
investment income......... (0.29) (0.32) (0.36) (.31) (.18) (.02) (.04)
Distributions from net
realized capital gains.... (6.35) (4.81) (2.76) (.54) (.70) (.43) (.56)
-------- -------- -------- -------- -------- -------- -------
Total Dividends and
Distributions............. (6.64) (5.13) (3.12) (.85) (.88) (.45) (.60)
-------- -------- -------- -------- -------- -------- -------
Net Asset Value - End of
Period.................... $24.29 $33.26 $33.20 $32.21 $27.29 $24.27 $23.87
======== ======== ======== ======== ======== ======== =======
Total Return............... (4.75%)(+) 16.92% 13.92% 21.40% 16.44% 3.48% 29.50%
======== ======== ======== ======== ======== ======== =======
Ratios/Supplemental Data
- -------------------
Net Assets, End of Period
(in thousands)............ $229,788 $296,803 $353,029 $384,087 $328,153 $199,191 $78,581
Ratio of Expenses to
Average Net Assets........ 1.02%** 0.95% 0.96% 0.96% 1.06% 1.22% 1.47%
Ratio of Net Investment
Income (Loss) to Average
Net Assets................ 0.72%** 0.76% 1.23% 0.99% 1.18% .38% (.01%)
Portfolio Turnover Rate.... 52%** 38% 37% 34% 29% 43% 61%
<CAPTION>
For the year ended June 30,
------------------------------------
1992 1991 1990 1989
------- ------- ------- ------
<S> <C> <C> <C> <C>
Net Asset Value - Beginning
of Period................. $17.24 $17.71 $15.93 $13.65
------- ------- ------- ------
Income from Investment
- ------------------
Operations
- --------
Net Investment Income
(loss).................... .07 .20 .06 .41
Net Gains (Losses) on
Securities (both realized
and unrealized)........... 3.45 .49 2.84 1.87
------- ------- ------- ------
Total From Investment
Operations................ 3.52 .69 2.90 2.28
------- ------- ------- ------
Less Dividends and
Distributions
- -----------------------
Dividends from net
investment income......... (.09) (.12) (.48) .00
Distributions from net
realized capital gains.... (1.70) (1.04) (.64) .00
------- ------- ------- ------
Total Dividends and
Distributions............. (1.79) (1.16) (1.12) .00
------- ------- ------- ------
Net Asset Value - End of
Period.................... $18.97 $17.24 $17.71 $15.93
======= ======= ======= ======
Total Return............... 21.00% 5.62% 19.71% 16.70%*
======= ======= ======= ======
Ratios/Supplemental Data
- -------------------
Net Assets, End of Period
(in thousands)............ $18,363 $12,350 $11,058 $9,598
Ratio of Expenses to
Average Net Assets........ 1.75% 1.68% 2.08% 2.01%+
Ratio of Net Investment
Income (Loss) to Average
Net Assets................ .24% .98% .14% 2.83%+
Portfolio Turnover Rate.... 61% 85% 66% 62%
</TABLE>
<TABLE>
<S> <C>
* The total returns would have been lower had certain expenses
not been reduced during the periods shown.
+ Not representative of expenses incurred by the Fund as the
Adviser waived its fee and/or paid certain expenses of the
Fund. If the Fund had paid all of its expenses and there had
been no reimbursement by the Adviser, the ratio of expenses
to average net assets for the year ended June 30, 1988 and
1989 would have been 1.86% and 2.19%, respectively, and the
ratio of net investment income (loss) to average net assets
would have been (.60%) and 2.63%, respectively.
(+) Figure not annualized.
** Figures are annualized.
</TABLE>
The accompanying notes are an integral part of the financial statements.
(unaudited)
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES: Meridian Fund (the "Fund") a series of
Meridian Fund, Inc. (the "Company"), began operations on August 1, 1984. The
Fund was registered on August 1, 1984, under the Investment Company Act of
1940, as amended, as a no-load, diversified, open-end management investment
company. The primary investment objective of the Fund is to seek long-term
growth of capital. In addition to the Meridian Fund, the Company also offers
the Meridian Value Fund. The following is a summary of significant accounting
policies:
a. INVESTMENT VALUATIONS: Marketable securities are valued at the last
sales price on the principal exchange or market on which they are
traded; or, if there were no sales that day, at the last reported bid
price. Short-term investments that will mature in 60 days or less are
stated at amortized cost, which approximates market value.
b. FEDERAL INCOME TAXES: It is the Fund's policy 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.
The aggregate cost of investments for federal income tax purposes is
$190,825,173, the aggregate gross unrealized appreciation is
$59,164,949, and the aggregate gross unrealized depreciation is
$26,178,943, resulting in net unrealized appreciation of $32,986,006.
c. SECURITY TRANSACTIONS: Security transactions are accounted for on the
date the securities are purchased or sold (trade date). Realized gains
and losses on security transactions are determined on the basis of
specific identification for both financial statement and federal income
tax purposes. Dividend income is recorded on the ex-dividend date.
Interest income and accretion income are accrued daily.
d. CASH AND CASH EQUIVALENTS: All highly liquid investments with an
original maturity of three months or less are considered to be cash
equivalents. Funds are automatically swept into a Cash Reserve account
which preserves capital with a consistently competitive rate of return.
Earnings are indexed to the Federal Reserve "Fed Funds Rate". Interest
accrues daily and is credited by the third business day of the following
month.
e. EXPENSES: Expenses arising in connection with the Fund are charged
directly to the Fund. Expenses common to both series of Meridian Fund,
Inc. are allocated to each series in proportion to their relative net
assets.
f. USE OF ESTIMATES: The preparation of financial statements requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities at the date of the financial
statements. Actual amounts could differ from the estimates.
g. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund records dividends
and distributions to its shareholders on the ex-date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary
or permanent in nature. To the extent these
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized
capital gains are reported as dividends in excess of net investment
income or distributions in excess of net realized capital gains for
financial reporting purposes but not for tax purposes. To the extent
they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
2. RELATED PARTIES AND ADVISORY FEE AND EXPENSE LIMITATION: The Fund has entered
into a management agreement (the Investment Advisory Fee) with Aster Capital
Management, Inc. ("Aster Capital") for the 12 month period beginning November
1, 1998 through October 31, 1999. Certain Officers and/or Directors of the
Fund are also Officers and/or Directors of Aster Capital.
The Investment Adviser receives from the Fund as compensation for its
services an annual fee of 1% of the first $50,000,000 of the Fund's net
assets and 0.75% of the Fund's net assets in excess of $50,000,000. The fee
is paid monthly and calculated based on that month's average net assets.
3. CAPITAL STOCK TRANSACTIONS: The Fund has authorized 25,000,000 shares of
common stock at a par value of $.01 per share. Transactions in capital stock
for the period ended December 31, 1998 and the year ended June 30, 1998, were
as follows:
<TABLE>
<CAPTION>
December June
1998 1998
---------- ----------
<S> <C> <C>
Shares sold 271,528 776,646
Shares issued on reinvestment of
distributions 2,431,186 1,590,893
---------- ----------
2,702,714 2,367,539
Shares redeemed (2,165,682) (4,078,171)
---------- ----------
Net increase (decrease) 537,032 (1,710,632)
========== ==========
</TABLE>
4. COMPENSATION OF DIRECTORS AND OFFICERS: Directors and officers of the Fund
who are directors and/or officers of Aster Capital Management, Inc. receive
no compensation from the Fund. Directors of the Company who are not
interested persons as defined in the Investment Company Act of 1940 receive
compensation in the amount of $1,000 per annum and a $1,000 purchase of
Meridian Fund or Meridian Value Fund stock, plus expenses for each Board of
Directors meeting attended. The aggregate compensation due the unaffiliated
Directors of the Fund as of December, 1998, was $1,500.
5. COST OF INVESTMENTS: The cost of investments purchased and the proceeds from
sales of investments, excluding short-term obligations, for the period ended
December 31, 1998, were $52,140,011, and $70,760,109, respectively. The cost
of the U.S. Government securities purchased and the proceeds from sales of
such investments were $84,098,767, and $114,885,006, respectively for the
period ended December 31, 1998.
10
<PAGE>
[This page intentionally left blank.]
<PAGE>
MERIDIAN FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This report is submitted for
the information of shareholders of
Meridian Fund. It is not
authorized for distribution to
prospective investors unless
preceded or accompanied by an
effective prospectus.
-----------------------------------------------------------------
Officers and Directors
RICHARD F. ASTER, JR.
President and Director
MICHAEL S. ERICKSON
HERBERT C. KAY
JAMES B. GLAVIN
MICHAEL STOLPER
Directors
PAUL A. ROBINSON
Treasurer and Secretary
Custodian
BANK OF NEW YORK
New York, New York
Transfer Agent and Disbursing Agent
FIRST DATA
King of Prussia, Pennsylvania
(800) 446-6662
Counsel
MORRISON & FOERSTER
Washington D.C.
Auditors
PRICEWATERHOUSECOOPERS LLP
San Francisco, California
SEMI ANNUAL REPORT
[MERIDIAN FUND LOGO]
60 E. SIR FRANCIS DRAKE BLVD.
WOOD ISLAND, SUITE 306
LARKSPUR, CA 94939
(415) 461-6237
TELEPHONE (800) 446-6662
DECEMBER 31, 1998
