PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2000
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY (Note A) ASSETS MATURITY AMOUNT VALUE
TAXABLE MUNICIPAL OBLIGATIONS:
Maturity of 1 - 5 years: 5.4%
New York, NY Taxable Bonds,
10.000%, due 08-01-01 1.00 100,000 $ 103,200
Ohio Development Assistance Taxable
Bonds, 6.820%, due 04-01-03 2.75 500,000 496,725
Philadelphia, PA Industrial Dev.
Taxable Bonds, 6.488%, due 06-15-04 4.00 88,423 86,343
Rome, NY Hsg. Dev. Taxable Bonds,
6.500%, due 01-01-05 4.50 350,000 337,088
------------
1,023,356
Maturity of 5 - 10 years: 14.2
Cleveland, OH Airport Taxable Bonds,
6.490%, due 01-01-06 5.50 365,000 352,116
Pittsburgh, PA Conv. Taxable Bonds,
0.000%, due 03-01-07 6.75 705,000 437,593
Chicago Heights, IL GO Taxable
Bonds, 7.350%, due 12-01-07 7.50 170,000 170,658
Oklahoma City, OK Airport Taxable
Bonds, 6.950%, due 07-01-08 8.00 475,000 468,716
Dayton, OH Hsg. Impr. Taxable
Bonds, 6.250%, due 11-01-08 8.25 140,000 131,172
Scranton, PA U.S. Govt. Gtd. Taxable
Notes, 7.720%, due 08-01-09 9.00 285,000 287,904
Texas State Water Fin. Asst. Taxable
Bonds, 6.550%, due 08-01-09 9.00 400,000 381,056
Dayton, OH Econ. Dev. Taxable
Bonds, 6.380%, due 12-01-09 9.50 500,000 468,375
------------
$ 2,697,590
------------
See notes to financial statements.
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2000
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY (Note A) ASSETS MATURITY AMOUNT VALUE
Maturity of 10 - 20 years: 15.8%
Texas State Water Dev. Taxable
Bonds, 8.800%, due 08-01-12 12.00 50,000 $ 50,071
Mississippi State GO Taxable
Bonds, 6.750%, due 11-01-12 12.25 300,000 281,598
Denver, CO School Dist. Taxable Bonds,
6.940%, due 12-15-02 12.50 500,000 476,785
New York, NY Taxable Bonds,
9.000%, due 02-01-13 12.50 50,000 51,562
St. Cloud, MN Taxable Bonds,
6.700%, due 02-01-13 12.50 70,000 64,840
Dayton, OH Taxable Bonds,
6.500%, due 11-01-13 13.25 250,000 228,727
Sacramento CA Redev. Agency Taxable
Bonds, 6.375%, due 11-01-13 13.25 200,000 178,482
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-14 13.75 135,000 138,904
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-15 14.75 210,000 216,073
Ohio State Taxable Bonds,
7.600%, due 10-01-16 16.25 750,000 748,485
Palmdale, CA Redev. Taxable
Bonds, 7.900%, due 09-01-17 17.25 225,000 230,940
California Hsg. Finance Rev. Taxable
Bonds, 7.200%, due 08-01-19 19.00 340,000 334,747
------------
3,001,214
------- ------------
TOTAL TAXABLE MUNICIPAL
OBLIGATIONS (Cost $7,098,016) 35.4% $ 6,722,160
------- ------------
See notes to financial statements.
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Concluded)
JUNE 30, 2000
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY (Note A) ASSETS MATURITY AMOUNT VALUE
U.S. CORPORATE OBLIGATIONS:
Maturity of 1 - 5 years: 5.1%
American Express Credit Corp. Notes,
6.125%, due 11-15-01 1.50 500,000 $ 491,862
Lehman Brothers Holdings Inc.
Notes, 7.250%, due 10-15-03 3.25 500,000 489,688
------------
981,550
------------
Maturity of 10-20 years - 3.7
Ford Motor Credit Co. Notes,
7.125%, due 07-16-12 12.00 750,000 697,031
------- ------------
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $1,728,322) 8.8 1,678,581
------- ------------
TOTAL U.S. GOVERNMENT AND
AGENCY, TAXABLE MUNICIPAL,
AND U.S. CORPORATE OBLIGATIONS
(Cost $19,096,464) 97.3 18,501,835
------- ------------
SHORT-TERM OBLIGATIONS 0.9
Firstar Treasury Fund 18,134
Firstar Federal Prime
Obligations Fund 150,000
------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $168,134) 168,134
------- ------------
TOTAL INVESTMENTS
(Cost $19,264,598)¹ 98.2% $18,669,969
======= ============
¹ Represents cost for federal income tax purposes and differs
from value by net unrealized depreciation (See Note D)
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
ASSETS:
Investments in securities, at market value $18,669,969
(Cost basis - $19,264,598) (Notes A& D)
Receivables - Interest 357,521
------------
Total assets 19,027,490
LIABILITIES - Accrued expenses (Note B) (15,529)
------------
NET ASSETS $19,011,961
============
SHARES OUTSTANDING (Unlimited authorization - no par value):
Beginning of year 1,868,000
Net (decrease) (Note C) (112,556)
------------
End of period 1,755,444
============
NET ASSET VALUE, offering price and redemption price per share $10.83
------------
NET ASSETS CONSIST OF:
Paid in capital $19,305,733
Net unrealized (depreciation) on investments (594,629)
Undistributed net investment income 536,213
Accumulated net realized (loss) on investments (235,356)
------------
Net Assets $19,011,961
============
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
INVESTMENT INCOME - Interest (Note A): $ 632,403
------------
EXPENSES (Note B):
Investment advisory fee 48,095
Management fee 48,095
------------
Total expenses 96,190
------------
NET INVESTMENT INCOME 536,213
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note D):
Net realized (loss) on investments (235,356)
Change in unrealized appreciation (depreciation) of investments 226,812
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ( 8,544)
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 527,669
------------
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months For the Year
Ended Ended
June 30, 2000 December 31,1999
(Unaudited)
------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 536,213 $ 1,070,795
Net realized gain (loss) on investments (235,356) 115,476
Change in unrealized appreciation
(depreciation) of investments 226,812 (1,457,066)
------------ ------------
Net increase (decrease) in net assets
from operations 527,669 (270,795)
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 (1,070,795)
Dividends from net realized gain
on investments 0 (115,476)
------------ ------------
Net (decrease) in assets from
dividends to shareholders 0 (1,186,271)
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM CAPITAL SHARE TRANSACTIONS (Note C) (1,199,982) 1,289,461
------------ ------------
Total (decrease) in net assets (672,313) (167,605)
NET ASSETS:
Beginning of period 19,684,274 19,851,879
------------ ------------
End of period $19,011,961 $19,684,274
============ ============
See notes to financial statements.
PC&J PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
| A. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
| |
PC&J Preservation Fund (the “Fund”) commenced operations on April
30, 1985, as a “no-load, open-end, diversified” investment company. It
is organized as an Ohio business trust and is registered under the Investment
Company Act of 1940. The investment objective of the Fund is preservation of
capital through investment in fixed-income obligations. |
| |
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates or assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. |
| |
(1) |
Security Valuations - Investments in securities for which quotations are readily
available are valued on the basis of quotations from dealers or an independent
pricing service with consideration of such factors as yield, coupon rate,
maturity, type of issue and other market information. All other securities are
valued using established procedures, which involve approximating the
yield-to-maturity of similar securities traded on a national exchange.
|
| |
(2) |
Federal Income Taxes - The Fund has elected to be treated as a regulated
investment company and intends to comply with the requirements under Subchapter
M of the Internal Revenue Code and to distribute all of its net investment
income and realized gains on security transactions. Accordingly, no provision
for federal income taxes has been made in the accompanying financial statements.
|
| |
(3) |
Other - Security transactions are accounted for on the date the securities are
purchased or sold, (trade date). All premium and discounts are amortized or
accreted for both financial and tax reporting purposes as required by Federal
Income Tax regulations. Realized gains and losses on sales are determined using
the first-in first-out method. Dividends to shareholders from net investment
income and net realized capital gains are declared and paid annually. Interest
income is accrued daily. |
| B. |
INVESTMENT ADVISORY AGREEMENT AND MANAGEMENT AGREEMENT |
| |
Fund has an investment advisory agreement with Parker Carlson & Johnson,
Inc. (the “ Advisor”), wherein the Fund pays the Advisor a monthly
advisory fee, accrued daily, based on an annual rate of one-half of one percent
of the daily net assets of the Fund. Investment advisory fees were $48,095 for
the six months ended June 30, 2000. |
| |
The Fund has a management agreement with PC&J Service Corp., (the
“Service Corp.”) which is wholly owned by the shareholders of the
Advisor. The Fund pays Service Corp. for the overall management of the Fund's
business affairs, exclusive of the services provided by the Advisor, and
functions as the Fund's transfer and dividend disbursing agent. Service Corp.
pays all expenses of the Fund (with certain exclusions) and is entitled to a
monthly fee, accrued daily, based on an annual rate of one-half of one percent
of the daily net assets of the Fund. Management fees were $48,095 for the six
months ended June 30, 2000. |
| |
The Fund's shareholders have adopted a Distribution Expense Plan
(“Plan”) pursuant to Rule 12b-1 of the Investment Company Act of 1940.
This Plan authorizes payments under the investment advisory agreement and
management agreement described above which might be deemed to be expenses
primarily intended to result in the sale of Fund shares. No other payments are
authorized under the Plan. |
| |
Certain officers and trustees of the Fund are officers and directors, or both,
of the Advisor and of Service Corp. |
PC&J PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS - (Concluded)
| C. |
CAPITAL SHARE TRANSACTIONS |
For the Six Months Ending For the Year Ending
June 30, 2000 December 31, 1999
(Unaudited)
-----------------------------------------------------
Shares sold 36,568 $ 387,729 293,839 $ 3,314,125
Shares issued in
reinvestment of
dividends 0 0 112,574 1,186,271
---------- ------------ ---------- ------------
36,568 387,729 406,413 4,500,396
Shares redeemed (149,123) (1,587,711) (284,688) (3,210,935)
---------- ------------ ---------- ------------
Net increase (decrease) (112,555) $(1,199,982) 121,725 $ 1,289,461
========== ============ ========== ============
| D. |
INVESTMENT TRANSACTIONS |
| |
Securities purchased and sold (excluding short-term obligations) for the six
months ended June 30, 2000 aggregated $4,435,156 and $5,065,694, respectively.
Purchases and sales of U.S. Government Securities for the six months ended June
30, 2000 aggregated $4,435,156 and $4,960,694, respectively. |
| |
At June 30, 2000 gross unrealized appreciation on investments was $48,047 and
gross unrealized depreciation on investments was $642,676 for net unrealized
depreciation of $594,629 for financial reporting and federal income tax
purposes. |
