Table of Contents
USAA Family of Funds 1
Message from the President 2
Investment Review 4
Message from the Manager 5
Shareholder Voting Results 7
Financial Information:
Statement of Assets and Liabilities 8
Portfolio of Investments in Securities 9
Notes to Portfolio of Investments in Securities 11
Statement of Operations 12
Statements of Changes in Net Assets 13
Notes to Financial Statements 14
Important Information:
Through our ongoing efforts to reduce expenses and respond to
shareholder requests, your annual and semiannual report mailings are now
"streamlined." One copy of each report will be sent to each address,
instead of our previous practice of sending one report to every
registered owner. For many shareholders and their families, this
eliminates duplicate copies, saving paper and postage costs to the Fund.
If you are the primary shareholder on at least one account, prefer not
to participate in streamlining, and would like to continue receiving one
report per registered account owner, you may request this in writing to:
USAA Investment Management Company
Attn: Report Mail
9800 Fredericksburg Road
San Antonio, TX 78284-8916
or phone a Mutual Fund Representative at 1-800-531-8448 during business
hours.
This report is for the information of the shareholders and others who
have received a copy of the currently effective prospectus of the USAA
Treasury Money Market Trust, managed by USAA Investment Management
Company (IMCO). It may be used as sales literature only when preceded or
accompanied by a current prospectus which gives further details about
the Fund.
USAA with the eagle is registered in the U.S. Patent & Trademark Office.
c1995, USAA. All rights reserved.
<TABLE>
USAA Family of Funds Performance Summary
If you own only one or two USAA funds, you may not be aware of the
performance of our other funds. This summary is a snapshot of the
performance of all 32 funds by investment objective as of December 31,
1995. For more complete information about the mutual funds managed and
distributed by USAA IMCO, including charges and expenses, please call
1-800-531-8181 for a prospectus. Read it carefully before you invest.
Average Annual Total Return*
<CAPTION> Yield
Investment Inception Since 7-Day 30-Day(1)
Objective Date 1 yr 5 yrs 10 yrs Inception Simple SEC
<S> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation
Aggressive Growth 10/19/81 50.42 20.44 12.02 - - -
Emerging Markets(2) 11/7/94 3.65 - - (4.26) - -
Gold(2) 8/15/84 4.04 5.60 5.46 - - -
Growth 4/5/71 32.06 15.56 12.47 - - -
Growth & Income 6/1/93 31.57 - - 13.74 - -
International(2) 7/11/88 8.29 11.98 - 9.51 - -
World Growth(2) 10/1/92 12.85 - - 12.06 - -
Asset Allocation
Balanced Strategy 9/1/95 - - - 3.24 - -
Cornerstone Strategy(2)# 8/15/84 18.40 12.37 12.68 - - -
Growth and Tax Strategy(3)**# 1/11/89 22.70 10.33 - 9.81 - 3.61
Growth Strategy(2) 9/1/95 - - - 6.50 - -
Income Strategy 9/1/95 - - - 9.94 - 4.47
Income - Taxable
GNMA 2/1/91 16.76 - - 8.64 - 6.64
Income 3/4/74 24.47 10.91 10.43 - - 6.25
Income Stock 5/4/87 28.62 14.35 - 12.12 - -
Short-Term Bond 6/1/93 11.18 - - 5.33 - 6.43
Income - Tax Exempt
Long-Term(3)** 3/19/82 18.58 8.44 8.62 - - 5.40
Intermediate-Term(3)** 3/19/82 15.07 8.22 7.95 - - 4.93
Short-Term(3)** 3/19/82 8.11 5.59 5.87 - - 4.36
California Bond(3)** 8/1/89 21.85 8.39 - 8.01 - 5.23
Florida Tax-Free Income(3)** 10/1/93 18.90 - - 3.39 - 5.35
New York Bond(3)** 10/15/90 18.07 8.60 - 9.25 - 5.31
Texas Tax-Free Income(3)** 8/1/94 22.22 - - 12.43 - 5.18
Virginia Bond(3)** 10/15/90 17.08 8.42 - 8.79 - 5.22
Money Market
Money Market(4) 2/2/81 5.80 4.54 5.97 - 5.48 -
Tax Exempt Money Market(3),(4)** 2/6/84 3.70 3.32 4.36 - 4.33 -
Treasury Money Market Trust(4) 2/1/91 5.59 - - 4.17 5.26 -
California Money Market(3),(4)** 8/1/89 3.64 3.15 - 3.70 4.14 -
Florida Tax-Free Money
Market(3),(4)** 10/1/93 3.57 - - 2.90 4.28 -
New York Money Market(3),(4)** 10/15/90 3.59 2.98 - 3.04 4.27 -
Texas Tax-Free Money Market(3),(4)** 8/1/94 3.56 - - 3.36 4.08 -
Virginia Money Market(3),(4)** 10/15/90 3.52 3.13 - 3.21 4.07 -
(1) Calculated as prescribed by the Securities and Exchange Commission.
(2) Foreign investing is subject to additional risks, which are discussed
in the funds' prospectuses.
(3) Some income may be subject to state or local taxes or the federal
alternative minimum tax.
(4) An investment in a money market fund is neither insured nor guaranteed
by the U.S. government and there is no assurance that any of the funds
will be able to maintain a stable net asset value of $1 per share.
* Total return equals income yield plus share price change and assumes
reinvestment of all dividends and capital gain distributions. No
adjustment has been made for taxes payable by shareholders on their
reinvested dividends and capital gain distributions. The performance
data quoted represents past performance and is not an indication of
future results. Investment return and principal value of an investment
will fluctuate, and an investor's shares, when redeemed, may be worth
more or less than their original cost.
** IRAs are not available for tax-exempt funds. The Growth and Tax
Strategy Fund is not available as an investment for your IRA because the
majority of its income is tax exempt. California, New York, Virginia,
Florida, and Texas funds available to residents only.
# Formerly known as Cornerstone Fund and Balanced Portfolio Fund,
respectively.
</TABLE>
Message from the President
A few weeks ago I attended a meeting of past presidents of one of San
Antonio's distinguished institutions. We discussed a variety of subjects
that evening, including the investment performance of the organization's
endowment. In such organizations, I usually become chairman of
the investment committee, so I reported that through twelve months our
fund had a total return of about 24%.(1) One of my fellow past presidents
observed about another fund with which he is involved, "Well - we are up
over 35%!" He stopped short of asking, "What's your problem?" This was
not that uncommon an exchange.
I attempted to expand on the subject a bit. The investment committee
which I chair set down a strategy back in 1993. We concurred that the
investment goals and the risk tolerance of our board of trustees could
be accommodated with a portfolio that was 50% in growth stocks and 50%
in long-term fixed-income vehicles. This being a committee and
my having but one vote, I am pleased to say that the USAA Income Fund
was chosen as the fixed income investment. The 50/50 balance
is re-established at the end of each fiscal year so that the risk
profile is maintained.
My colleague referred to a very different kind of investment.
His was a family affair, and their investment decision was 100%
in an aggressive growth stock fund.(2) So, which did better? There is
not a simple answer, so what I'll give is my opinion.
[Photograph of Michael J. C. Roth, CFA, President and Vice Chairman of
the Board, appears here]
I think both of us did just fine. No matter what kind of market we have
been through, you will always be able to find someone who had a higher and
a lower return than you. Is it worthwhile to shift all of your investments
to that higher return? I think not. Investment decisions are, by
necessity, forward looking. In the case of mutual funds you must rely on
two things; the company with which you have chosen to invest and on
yourself. The latter means you have invested in a way with which you are
comfortable. Then you should bear in mind that in any market someone
else is going to have a higher return.
The board of the institution whose investment committee I chair
is delighted with their investment performance, both return and
volatility. I am sure that my colleague's family is also delighted with
theirs. I do not expect that either of us will change our strategy any
time soon.
"No matter what kind of market we have been through, you will always be
be able to find someone who had a higher and a lower return than you."
Sincerely,
Michael J.C. Roth, CFA
President and
Vice Chairman of the Board
(1) For the 12 months ending December 31, 1995.
Average Annual Total Return: 1 Year 5 Years 10 Years
--------------------------- ------ ------- --------
USAA Income Fund 24.47% 10.91% 10.43%
(2) An aggressive growth fund seeks maximum capital gains as its
investment objective. Current income is not a significant factor.
Some may invest in stocks of businesses that are somewhat out of
the mainstream, such as fledgling companies, new industries,
companies fallen on hard times, or industries temporarily
out of favor. USAA IMCO manages this type of fund.
Total return equals income yield plus share price change and
assumes reinvestment of all dividends and capital gain distributions.
The performance data quoted represents past performance; the
investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
For more complete information about any mutual fund managed by USAA
Investment Management Company, including charges and expenses, please
call for a prospectus. Please read the prospectus carefully before you
invest or send money.
Investment Review
TREASURY MONEY MARKET TRUST
OBJECTIVE: Provide investors with maximum current income while
maintaining the highest degree of safety and liquidity.
TYPES OF INVESTMENTS: Securities with maturities of 397 days or less
that are backed by the full faith and credit of the U.S. government and
repurchase agreements collateralized by such securities.
5/31/95 11/30/95
Net Assets $67.9 Million $75.1 Million
Net Asset Value Per Share $1.00 $1.00
Average Annual Total Returns as of 11/30/95
May 31, 1995 to November 30, 1995 2.77% *
1 Year 5.58%
Since Inception on February 1, 1991 4.15%
* Total returns for periods of less than one year are not annualized.
This six-month return is cumulative.
The Fund's simple yield was 5.39% for the 7-day period ended November
30, 1995, and the weighted average maturity was 70 days.
[A graph is shown here which is a comparison of the 7-day yield of the
USAA Treasury Money Market Trust to the IBC/Donoghue's Money Fund Average/
U.S. Treasury & Repo from 11/94 to 11/95. The vertical axis shows the
yield and the horizontal axis shows the time period. The 7-day yield as of
11/30/95 for the USAA Treasury Money Market Trust is 5.40% and 7-day yield as
of 11/30/95 for the IBC/Donoghue's Money Fund Averages/U.S. Treasury & Repo
is 5.17%]
The graph tracks the Fund's 7-day yield against IBC/Donoghue's Money
Fund Averages/U.S. Treasury & Repo, an average of all major treasury
money market fund yields. While past performance is no guarantee of future
results, the Fund appears to remain competitive in the money market industry.
Total return equals income yield plus share price change and assumes
reinvestment of all dividends and capital gain distributions. No
adjustment has been made for taxes payable by shareholders on their
reinvested dividends and capital gain distributions. An investment in
this Fund is neither insured nor guaranteed by the U.S. government, and
there can be no assurance that the Fund can maintain a stable net asset
value of $1.00 per share.
MESSAGE FROM THE MANAGER
(Photo of the Portfolio Manager, J. Eric Thorderson, appears here)
Rarely has there been as much attention directed toward securities of
the United States government as there has been recently. The deadlock
between the President and the Republicans in Congress over the federal
budget, the ensuing shutdown of much of the government, and concern that
the government would not be able to meet some of its borrowing
obligations changed all that.
Although the federal shutdown halted the flow of economic data releases
and otherwise inconvenienced members of the public, eleventh hour
actions undertaken by Treasury Secretary Rubin eliminated the risk of a
debt default. For the near future, the Treasury has some room to
maneuver on debt payments even if Congress doesn't immediately approve
an expansion of the nation's borrowing capacity.
We believe that the federal government, despite its difficulty getting
its financial house in order, should eventually reach a deficit-reducing
budget accord. We consider the current problem to be a political one,
rather than a function of the creditworthiness of the United States.
Even though the Fund's share price is not guaranteed, it is considered
the safest of the safe due to its reliance on the full faith and credit of
the United States government, rather than on more uncertain corporate
credits.
Fund Performance
Since the last report in May, the Federal Reserve cut the fed funds rate
to a target of 5.75%. This decline in rates followed seven successive
rate increases. Since yields for the Fund rise and fall with other short-term
Treasury securities, the yield has followed a slightly declining course. Even
though short-term interest rates are falling, the strategy for the Fund remains
the same. We continue to manage the Fund with a barbell approach using
repurchase agreements and Treasury securities. You may recall that a barbell
maturity structure is one where securities are concentrated in short
maturities and long maturities, while still maintaining a weighted average
maturity within SEC guidelines. To illustrate, as of November 30, 1995,
44.6% of the securities in the Fund mature in less than seven days. At the
other extreme, although none of the securities exceed 397 days (as required by
law), 32.8% of the securities mature in 70 days or longer. The weighted
average maturity of the Fund is 70 days.
The Treasury Money Market Trust remains an alternative to investors
looking for safety of principal and minimum risk. Although the primary focus
is credit strength, the Fund offers a competitive yield that may be enhanced
by an exemption from state income tax. Under federal law, the income derived
from obligations issued by the United States government and certain of
its agencies and instrumentalities is exempt from state personal income
taxes. Many states that tax personal income permit mutual funds to
pass-through this tax exemption to shareholders. You may wish to consult
a tax advisor, accountant, or attorney for more details.
An investment in this fund is neither insured nor guaranteed by the U.S.
government, and there can be no assurance that the Fund can maintain a
stable net asset value of $1.00 per share.
See page 9 for a complete listing of the Portfolio of Investments in
Securities.
[A graph is shown here showing the growth of $10,000 from 2/1/91 to
11/30/95, invested in the USAA Treasury Money Market Trust. The
vertical axis shows the dollar amount and the horizontal axis shows
the time period. The ending value is $12,173.]
Past Performance is no guarantee of future results and the value
of your investment may vary according to the Fund's performance.
Income may be subject to federal, state or local taxes, or to the
alternative minimum tax.
Shareholder Voting Results
On October 13, 1995, a special meeting of shareholders was held to vote
on the following proposals. All proposals were approved by the
shareholders. All shareholders of record on August 17, 1995 were
entitled to vote on each proposal. The number of votes shown below are
shown for the Treasury Money Market Trust only for proposal (2) and in
the aggregate for the entire USAA Investment Trust (the Trust) for
proposals (1) and (3).
(1) Proposal to elect a Board of Trustees as follows:
Votes Votes
Trustee For Withheld
-------------------- ----------- ----------
Hansford T. Johnson* 112,569,933 2,138,930
Michael J.C. Roth 111,522,559 3,186,304
John W. Saunders, Jr. 112,598,635 2,110,228
George E. Brown 111,259,788 3,449,075
Howard L. Freeman, Jr. 112,481,010 2,227,853
Richard A. Zucker 112,225,587 2,483,276
Barbara B. Dreeben 111,409,531 3,299,332
Mr. C. Dale Briscoe did not stand for re-election to the Board. His term
of office terminated on December 31, 1995.
* On December 4, 1995, Hansford T. Johnson announced his departure from
the Board effective December 31, 1995. The Board elected M. Staser
Holcomb to succeed Mr. Johnson.
(2) Proposals to amend certain investment restrictions as follows:
Number of Shares Voting
For Against Abstain
---- -------- -------
Proposal to amend the 5% and 10% issuer 29,879,363 5,494,364 3,468,922
diversification restrictions to apply to 75%
of a Fund's total assets rather than 100%.
Proposal to amend the restriction relating 29,320,859 5,994,996 3,526,794
to borrowing to allow a Fund to borrow an
amount not exceeding 33 1/3% of its total
assets (including the amount borrowed)
less liabilities (other than borrowings)
for temporary or emergency purposes.
Proposal to amend the restriction relating 28,171,028 7,152,827 3,518,795
to lending portfolio securities to permit a
Fund to lend up to 1/3 of its total assets
to other parties.
(3) Proposal to ratify or reject the 107,284,373 2,323,184 5,101,298
selection by the Board of Trustees of KPMG
Peat Marwick LLP as auditors for the Trust
for the fiscal year ending May 31, 1996.
Treasury Money Market Trust
Statement of Assets and Liabilities
(In Thousands)
November 30, 1995
(Unaudited)
Assets
Investments in securities $41,983
Repurchase agreements 33,615
Cash 130
Receivables:
Capital shares sold 35
Interest 149
-------
Total assets 75,912
-------
Liabilities
Capital shares redeemed 711
USAA Investment Management Company 37
USAA Transfer Agency Company 6
Accounts payable and accrued expenses 34
Dividends on capital shares 13
-------
Total liabilities 801
-------
Net assets applicable to capital shares outstanding $75,111
=======
Represented by:
Paid-in capital $75,111
=======
Capital shares outstanding, unlimited number of shares authorized,
no par value 75,111
========
Net asset value, redemption price, and offering price per share $ 1.00
========
See accompanying notes to financial statements.
Treasury Money Market Trust
Portfolio of Investments in Securities
(In Thousands)
November 30, 1995
(Unaudited)
Principal
Amount Security Value
--------- -------- ------
U.S. Treasury Bills (37.8%)
$ 2,000 5.42%, 12/07/95 $ 1,998
2,000 5.41%, 12/14/95 1,996
1,000 6.66%, 12/14/95 998
2,000 5.29%, 12/21/95 1,994
1,500 5.31%, 1/04/96 1,492
2,100 5.83%, 1/11/96 2,086
1,200 5.27%, 1/18/96 1,192
2,000 5.33%, 1/25/96 1,984
2,000 5.40%, 2/01/96 1,981
1,500 5.78%, 2/08/96 1,483
2,000 5.41%, 2/22/96 1,975
1,500 5.31%, 3/07/96 1,479
2,000 5.30%, 3/14/96 1,969
1,000 5.66%, 4/04/96 980
1,000 5.32%, 4/11/96 981
2,000 5.41%, 9/19/96 1,912
2,000 5.27%, 10/17/96 1,906
--------
Total U.S. treasury bills (cost: $28,406) 28,406
--------
U.S. Treasury Notes (18.1%)
1,500 4.00%, 1/31/96 1,495
1,000 8.88%, 2/15/96 1,007
2,000 5.50%, 4/30/96 1,999
1,000 4.25%, 5/15/96 991
2,500 7.38%, 5/15/96 2,519
2,000 6.13%, 7/31/96 2,008
1,000 7.25%, 8/31/96 1,012
1,500 8.00%, 10/15/96 1,530
1,000 7.25%, 11/15/96 1,016
--------
Total U.S. treasury notes (cost: $13,577) 13,577
--------
Total U.S. treasury bills and notes (cost: $41,983) 41,983
--------
Repurchase Agreements (44.7%)
$ 15,615 First Chicago Corp., 5.82%, acquired on 11/30/95 and
due 12/01/95 at $15,618 (collateralized by a
$16,045 U.S. Treasury Bill, due 1/11/96; market
value of $15,936) $ 15,615
18,000 J. P. Morgan Securities Inc., 5.88%, acquired on
11/30/95 and due 12/01/95 at $18,003
(collateralized by a $18,338 U.S. Treasury
Note, 5.88%, due 5/31/96; market value of $18,361) 18,000
-------
Total repurchase agreements (cost: $33,615) 33,615
-------
Total investments (cost: $75,598) $ 75,598
=========
Treasury Money Market Trust
Notes to Portfolio of Investments in Securities
November 30, 1995
(Unaudited)
General Notes
Values of securities are determined by procedures and practices
discussed in note 1 to the financial statements.
The cost of securities for federal income tax purposes is approximately
the same as that reported in the financial statements.
The percentages shown represent the percentage of the investments to net
assets.
See accompanying notes to financial statements.
Treasury Money Market Trust
Statement of Operations
(In Thousands)
Six-month period ended November 30, 1995
(Unaudited)
Net investment income:
Interest income $ 2,146
--------
Expenses:
Management fees 46
Transfer agent's fees 36
Custodian's fees 21
Postage 3
Shareholder reporting fees 4
Trustees' fees 1
Registration fees 17
Audit fees 14
Legal fees 2
Other 3
Total expenses before reimbursement 147
Expenses reimbursed (9)
--------
Total expenses after reimbursement 138
--------
Net investment income $ 2,008
=========
See accompanying notes to financial statements.
Treasury Money Market Trust
Statements of Changes in Net Assets
(In Thousands)
Six-month period ended November 30, 1995
and Year ended May 31, 1995
(Unaudited)
11/30/95 5/31/95
-------- ------
From operations:
Net investment income $ 2,008 $ 2,356
Distributions to shareholders from:
Net investment income (2,008) (2,356)
-------- -------
From capital share transactions:
Shares sold 45,496 74,528
Shares issued for dividends reinvested 1,855 2,202
Shares redeemed (40,116) (46,838)
Increase in net assets from capital share
transactions 7,235 29,892
------- -------
Net increase in net assets 7,235 29,892
Net assets:
Beginning of period 67,876 37,984
End of period $75,111 $67,876
======= =======
Change in shares outstanding:
Shares sold 45,496 74,528
Shares issued for dividends reinvested 1,855 2,202
Shares redeemed (40,116) (46,838)
------- --------
Increase in shares outstanding 7,235 29,892
======= ========
See accompanying notes to financial statements.
Treasury Money Market Trust
Notes to Financial Statements
(In Thousands)
November 30, 1995
(Unaudited)
(1) Summary of Significant Accounting Policies
USAA INVESTMENT TRUST (the Trust), registered under the Investment
Company Act of 1940, is a diversified, open-end management investment
company organized as a Massachusetts business trust consisting of eleven
separate funds. The information presented in this semiannual report
pertains only to the Treasury Money Market Trust (the Fund). The Fund's
investment objective is to provide maximum current income while
maintaining the highest degree of safety and liquidity.
A. Security valuation - The value of each security is determined (as of
the close of trading on the New York Stock Exchange on each business day
the Exchange is open) as set forth below:
1. Pursuant to Rule 2a-7 of the Securities and Exchange Commission,
securities in the Fund are stated at amortized cost which approximates
market value. Repurchase agreements are valued at cost.
2. Securities which cannot be valued by the methods set forth above,
and all other assets, are valued in good faith at fair value, using
methods determined by the Manager under the general supervision
of the Board of Trustees.
B. Federal taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its income
to its shareholders. Therefore, no federal income or excise tax
provision is required.
C. Investments in securities - As is common in the industry, security
transactions are accounted for on the date the securities are purchased or
sold (trade date). Gain or loss from sales of investment securities is
computed on the identified cost basis. Distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Discounts and premiums on securities are amortized over the life of
the respective securities.
(2) Line of Credit
The Fund participates with other USAA funds in a joint $150 million
short-term revolving loan agreement (the Agreement) through January 15,
1996, for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely
disposition of securities. Subject to availability under this Agreement,
the Fund may borrow up to 5% of the market value of its assets at the
time of the borrowing. Borrowings under this Agreement will bear interest
at .125% over the Federal Funds Rate as published by the Federal Reserve Bank
of New York or at .125% over the London Interbank Offered Rate. The Fund
had no borrowings under this Agreement during the six-month period ended
November 30, 1995.
(3) Distributions
Net investment income is accrued daily as dividends and distributed to
shareholders monthly. All net investment income available for
distribution was distributed as of November 30, 1995. Distributions of
realized gains from security transactions not offset by capital losses
are made in the succeeding fiscal year.
(4) Investment Transactions
Purchases and sales/maturities of securities for the six-month period
ended November 30, 1995 were $1,584,954 and $1,581,827, respectively.
(5) Transactions with Manager
A. Management fees - The investment policy of the Fund and the
management of the Fund's portfolio is carried out by USAA Investment
Management Company (the Manager). The Fund's management fees are
computed at .125% of its annual average net assets.
The Manager has voluntarily agreed to limit the annual expenses of the
Fund to .375% of its annual average net assets.
B. Transfer agent's fees - USAA Transfer Agency Company, d/b/a USAA
Shareholder Account Services, an affiliate of the Manager, provides
transfer agent services to the Fund. Shareholder accounting service fees
are based on an annual charge per shareholder account plus out-of-pocket
expenses.
C. Underwriting agreement - The Trust has an agreement with the
Manager for exclusive underwriting and distribution of the Fund's shares
on a continuing best efforts basis. This agreement provides that the
Manager will receive no fee or other remuneration for such services.
(6) Repurchase Agreements
The Fund may enter into repurchase agreements with commercial banks or
recognized security dealers. These agreements are secured by obligations
backed by the full faith and credit of the U.S. Government. Obligations
pledged as collateral are required to maintain a value equal to or in
excess of the resale price of the repurchase agreement and are held by the
Fund's custodian until maturity of the repurchase agreement. The Fund's
Manager monitors the creditworthiness of sellers with which the Fund may
enter into repurchase agreements.
(7) Financial Highlights
Per share operating performance for a share outstanding throughout each
period is as follows:
<TABLE>
<CAPTION>
Six-month Eight-month
Period ended Year ended Period ended
November 30, May 31, May 31, Year ended September 30,
1995 1995 1994 1993 1992 1991*
----- ---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income .03 .05 .02 .03 .04 .04
Distributions from net
investment income (.03) (.05) (.02) (.03) (.04) (.04)
Net asset value
at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======== ========= ======= =======
Total return (%) ** 2.77 4.88 1.96 2.84 4.05 3.51
Net assets at end of
period (000) $75,111 $67,876 $37,984 $30,448 $25,393 $13,409
Ratio of expenses to
average net assets (%) .375 (a)(b) .375 (b) .375 (a)(b) 375 (b) .375 (b) .375(a)(b)
Ratio of net investment
income to average
net assets (%) 5.45 (a)(b) 4.91 (b) 2.94 (a)(b 2.81 (b) 3.89 (b) 5.27(a)(b)
* Fund commenced operations February 1, 1991.
** Assumes reinvestment of all dividend income during the period.
(b) The information contained in the above table is based on actual expenses for the
period, after giving effect to reimbursements of expenses by the Manager. Absent
such reimbursements the Fund's ratios would have been:
SIX-MONTH EIGHT MONTH
PERIOD ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, MAY 31, MAY 31, YEAR ENDED SEPTEMBER 30,
1995 1995 1994 1993 1992 1991*
---- ---- ---- ----- ---- -----
Ratio of expenses to
average net assets (%) .40(a) .49 .62(a) .54 .72 1.31(a)
Ratio of net investment
income to average
net assets (%) 5.43(a) 4.80 2.69(a) 2.65 3.55 4.33(a)
</TABLE>
