VAM INSTITUTIONAL FUNDS, INC.
Statements of Assets and Liabilities (Unaudited)
March 31, 1995
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VAM VAM VAM
SHORT INTERMEDIATE VAM VAM INTERMEDIATE VAM
GOVERNMENT GOVERNMENT GOVERNMENT SHORT DURATION DURATION INTERMEDIATE
AGENCY AGENCY MORTGAGE TOTAL RETURN TOTAL RETURN MUNICIPAL
FUND FUND FUND FUND FUND FUND
Assets:
<S> <C> <C> <C> <C> <C> <C>
Cash in bank $100,000 -- -- -- -- --
Deferred organization expense (note 4) 10,000 10,000 10,000 10,000 10,000 10,000
Total assets 110,000 10,000 10,000 10,000 10,000 10,000
Liabilities:
Accrued expenses (note 4) 10,000 10,000 10,000 10,000 10,000 10,000
Net assets applicable to outstanding capital stock $100,000 -- -- -- -- --
Represented by (note 1):
Capital stock - $.01 par value $ 100 -- -- -- -- --
Additional paid-in capital 99,900 -- -- -- -- --
Total net assets $100,000 -- -- -- -- --
Net assets applicable to outstanding
Institutional Class Shares $100,000 -- -- -- -- --
Net assets applicable to outstanding
Institutional Service Class Shares -- -- -- -- -- --
Shares outstanding and net asset value per share
Institutional Class Shares outstanding:
10,000, 0, 0, 0, 0, and 0, respectively $ 10.00 -- -- -- -- --
Institutional Service Class Shares outstanding:
0, 0, 0, 0, 0, and 0, respectively -- -- -- -- -- --
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See accompanying notes to statements of assets and liabilities
VAM INSTITUTIONAL FUNDS, INC.
Notes to Statements of Assets and Liabilities (Unaudited)
1) Organization
VAM Short Government Agency Fund, VAM Intermediate Government Agency Fund, VAM
Government Mortgage Fund, VAM Short Duration Total Return Fund, VAM Intermediate
Duration Total Return Fund and VAM Intermediate Municipal Fund, (the Funds),
Funds within VAM Institutional Funds, Inc. which was incorporated in January
1985, are registered under the Investment Company Act of 1940 (as amended) as
diversified, open-end management investment companies. Pursuant to its' articles
of incorporation, VAM Institutional Funds, Inc. has 10 trillion shares of
authorized capital stock that may be issued. The Funds offer two classes of
shares- the Institutional Class Shares and the Institutional Service Class
Shares. Each of which is sold pursuant to different sales arrangements and bear
different expenses.
The only transactions of the Funds since their formation were the initial sale
(at $10 per share) on January 12, 1995 of 10,000, 50, 50, 50, 50, and 50 shares,
respectively, of Institutional Class Shares and 100, 50, 50, 50, 50, and 50
shares, respectively, of Institutional Service Class Shares to Voyageur Fund
Managers, Inc. (Voyageur) and redemptions of 50 shares of Institutional Class
Shares for each Fund (excluding VAM Short Government Agency Fund) and 100, 50,
50, 50, 50 and 50 shares, respectively, of Institutional Service Class Shares by
Voyageur.
2) Federal Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute taxable income to
the shareholders of the Funds in amounts that will avoid or minimize federal
income or excise taxes for the Funds.
3) Fees and Expenses
Each Fund has an investment advisory agreement with Voyageur, under which
Voyageur manages the Funds assets and furnishes related office facilities,
equipment, research and personnel. Each Fund pays a monthly fee to Voyageur
equal to an annual rate of .50% of average daily net assets.
Each Fund has a distribution agreement with Voyageur Fund Distributors, Inc.
(Fund Distributors). No compensation is paid by the Funds under the Distribution
Agreements.
Institutional Service Class Shares of each Fund also have an agreement with Fund
Distributors to compensate service organizations who provide additional
administrative, record keeping, and other shareholder services to their
customers who are beneficial owners of service shares. Each Fund is obligated to
pay Fund Distributors a service fee at an annual rate up to .25% of the Fund's
average daily net assets applicable to Institutional Service Class Shares.
Each Fund will also pay a fee to Voyageur for acting as the Fund's dividend
disbursing, transfer, administrative and accounting services agent. The fee is
paid monthly and is equal to an annual rate of .10% of average daily net assets.
Each Fund is also responsible for reimbursing Voyageur's out-of-pocket expenses
in connection with the performance of dividend disbursing, transfer,
administrative and accounting services.
In addition to the fees above, each Fund is responsible for paying most other
operating expenses including director's fees, registrations fees, printing of
shareholder reports, legal and auditing services, organizational costs and other
miscellaneous expenses. Under the investment advisory agreement, Voyageur is
obligated to pay all expenses and fees (excluding interest, taxes, distribution
fees and brokerage commissions) which exceed 1.00% of each Fund's average daily
net assets, on an annual basis, up to the combined amount of its investment
advisory and management fee and its dividend-disbursing, transfer,
administrative and accounting service fees. However, during the fiscal year
ending September 30, 1995, Voyageur intends to voluntarily limit total expenses
of each Fund to .50% and .75% of average daily net assets for Institutional
Class Shares and Institutional Service Class Shares, respectively.
4) Deferred Organizational Expenses
Voyageur expects to incur organizational expenses in connection with the
start-up and initial registration of the Funds. These costs will be paid by the
Funds and amortized over 60 months on an inverse acceleration (sum-of-the-years'
digits) basis beginning with the commencement of operations. If any of the
shares representing initial capital of VAM Institutional Funds, Inc. are
redeemed by any holder thereof prior to the end of the amortization period, the
proceeds will be reduced by the unamortized organizational expense balance in
the same proportion as the number of shares redeemed bears to the number of
initial shares outstanding immediately preceding the redemption.
