C/FUNDS GROUP, INC.
C/Fund
C/Growth Stock Fund
C/Government Fund
C/Tax-Free Fund
C/C.A.R. Fund
Adams Equity Fund
1995 Annual Report
Table of Contents Page No.
Letter to Shareholders 1
Comparative Performance 2
Portfolios of Investments 4
Audited Financial Statements 11
Notes to Financial Statements 15
Report of Independent Certified Public Accountants 18
LETTER TO SHAREHOLDERS
The year 1995, in our opinion, will go down as a major turning
point in all securities markets that saw conventional price-
setting methods replaced with new, more rational, computer-de-
rived valuations. This is quite a mouthful, we realize, and let
us be the first to point out that exactitude is neither likely or
necessary in the business of stock pricing.
It is very relevant and important, however, that investors under-
stand that financial results achieved by any public corporate
enterprise now have a powerful influence over the price of its
outstanding stock. Every investment manager worth his fee has
computer-access to newly published financial results instantane-
ously, which he/she then uses to update their own "model". With
everyone having this information all at once, there is very
little else they need to know other than what inflation and tax
rates are going to be in future periods and if the company is
likely to continue its rate of growth and profitability.
Today financial results are fairly accurately estimated in ad-
vance by savvy analysts who follow the company closely, sometimes
more closely than the company's management itself. These esti-
mates of profits are now widely available with unexpected changes
up and down getting most of the media attention. In fact, such
information is often misused by less-scrupulous market traders
seeking to trade on information prior to its becoming available
to the general public. Because this has always been "illegal"
under U.S. securities laws, and because it is now less a factor
due to the quick availability of the information, short term
advantages are withering away. As this happens, only the two
factors that most affect "net returns" to shareholders -- infla-
tion and tax rates -- are left as the factors most influential
over share prices in general. In short, the "stock-picker"
managers are losing to the "index" manager. The results of the
past two years are abundant evidence that this is now so.
What this all means to shareholders of our funds is that we want
you to know that we know this is going on - in fact we predicted
it - and are responding to it accordingly. We recently added
more large-cap stocks to C/Fund for this very reason. Although
we intend to continue to try to select stocks of other companies
that we feel, or detect by using our model, can out-perform the
popular averages, we readily acknowledge that this may be in-
creasingly difficult to do.
We would also like to reassure shareholders that it has long been
our investment philosophy to buy and hold stock positions in
sound companies rather than trade stocks actively. The newer
wrinkle is simply that we will be doing this in a more organized
fashion, in hopes that we can at least match, possibly out-per-
form the market averages over a reasonable time period. Most
managers are now shown to be unable to do this on any sustained
basis.
Once again this year, we remind all shareholders that we have
provided you with our general views on the Economy, Interest
Rates and Stock Markets each month in our Funds Newsletter, thus
its omission in this Annual Report.
Finally, we remain very optimistic about the investment future;
are pleased with the results being achieved in all Fund series;
and, we once again thank all shareholders, directors, and staff
who have helped produce C/Fund Group's continuing success.
Respectfully submitted:
Roland G. Caldwell
C/Fund
Illustration of a $10,000 Investment (Graph)
C/Growth Stock Fund
Illustration of a $10,000 Investment (Graph)
Performance Summary
As of December 31, 1995
Since
1 Year 5 Year 10 Year Inception
C/Fund 26.18% 13.38% 11.33% 12.06%
C/Growth Stock Fund 22.81% NA NA 4.73%
C/Government Fund 12.34% NA NA 6.26%
C/Tax-Free Fund 10.47% NA NA 4.06%
C/C.A.R. Fund 6.29% NA NA 5.61%
Adams Equity Fund(1) NA NA NA -5.63%
(1) Fund inception October 1995. Graph comparison omitted
C/Government Fund
Illustration of a $10,000 Investment
<Graph>
C/Tax-Free Fund
Illustration of a $10,000 Investment
<Graph>
C/Community Association Reserve Fund
Illustration of a $10,000 Investment
<Graph>
C/FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Shares Value
EQUITIES (78.0%)
FOOD PRODUCTS 11.4%
Archer Daniels Midland Company 9,028 162,504
Lancaster Colony 1,000 37,250
PepsiCo 2,000 111,500
Philip Morris 2,000 180,750
TEXTILE MILL PRODUCTS 1.7%
Shaw Industries 5,000 73,125
LUMBER & WOOD PRODUCTS 3.3%
Plum Creek Timber LP, Inc. 6,000 143,250
PAPER PRODUCTS 1.9%
Kimberly-Clark 1,000 82,625
CHEMICAL PRODUCTS 11.6%
American Home Products 1,000 97,000
Bristol-Meyers Squibb 2,000 170,750
Colgate-Palmolive 1,500 105,187
Merck & Co. 2,000 131,250
PETROLEUM & COAL PRODUCTS 5.4%
Amoco Corp. 1,000 71,750
Exxon Corp 2,000 161,250
DIVERSIFIED MANUFACTURING 3.0%
Minnesota Mining & Manufacturing 2,000 131,500
INDUSTRIAL MACHINERY & EQUIPMENT 2.4%
Black & Decker 3,000 105,750
AUTOMOTIVE 2.2%
Ford Motor Company 2,000 57,750
ITT Industries 1,500 35,812
INSTRUMENTS & RELATED PRODUCTS 5.0%
Eastman Kodak 2,000 134,250
Emerson Electric 1,000 81,375
RAILROAD TRANSPORTATION 4.1%
CSX Corp 1,000 45,500
Union Pacific 2,000 133,250
PIPELINES 6.5%
Buckeye Partners LP 4,000 136,500
TRANSPORTATION SERVICES 2.2%
GATX Corp. 2,000 97,000
COMMUNICATION 3.0%
AT&T 2,000 129,500
UTILITIES 1.3%
Central & South West 2,000 55,500
BUILDING SUPPLIES 1.1%
Home Depot 1,000 47,875
RETAILING 1.8%
Sears, Roebuck 2,000 77,750
FOOD STORES 1.5%
Albertson's Inc. 2,000 65,750
INSURANCE 1.7%
ITT Hartford Group 1,500 72,375
REAL ESTATE 4.0%
New Plan Realty TR SBI 8,000 174,000
LEISURE/ENTERTAINMENT 1.8%
ITT Corp 1,500 79,313
COMPUTER/OFFICE EQUIPMENT
International Business Machines 1.0% 500 45,438
FIXED INCOME (22.0%)
U.S. Treasury Notes 8.00% Due 5/15 2.6% 100,000 111,938
Cash & Equivalents 19.4% 838,396
TOTAL 100.0% 4,331,213
C/GROWTH STOCK FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Shares Value
EQUITIES (83.8%)
HEAVY CONSTRUCTION 3.3%
Foster Wheeler 1,000 42,000
Mastec Inc. 2,000 26,960
FOOD PRODUCTS 2.7%
Lancaster Colony Corp 1,500 55,875
TEXTILE MILL PRODUCTS 2.1%
Shaw Industries 3,000 43,875
LUMBER & WOOD PRODUCTS 1.1%
Plum Creek Timber LP 1,000 23,875
FURNITURE & FIXTURES 2.4%
Hillenbrand Industries 1,500 50,625
CHEMICALS & ALLIED PRODUCTS 5.2%
Great Lakes Chemical 500 35,875
Mylan Laboratories 1,800 42,075
Nalco Chemical 1,000 30,000
RUBBER & MISC PLASTICS 2.4%
Cooper Tire & Rubber 1,000 24,375
Rubbermaid, Inc. 1,000 25,375
FABRICATED METAL PRODUCTS 2.5%
Newell Co. 2,000 51,500
INDUSTRIAL MACHINERY 3.4%
Black & Decker 2,000 70,500
COMPUTER/OFFICE EQUIPMENT 3.3%
COMPAQ Computers 500 24,000
International Business Machines 500 45,438
ELECTRONICS 4.7%
American Power Conversion Corp. 6,000 57,000
Teleflex Inc 1,000 41,250
AUTOMOTIVE 6.3%
PACCAR, Inc. 800 34,000
Superior Industries International 2,250 58,781
Autozone, Inc. 1,000 28,875
Safety-Kleen Corp. 700 10,850
INSTRUMENTS 8.5%
Bard (C.R.) 1,000 30,500
Respironics 2,000 41,500
Stryker Corp. 2,000 105,000
LEISURE/ENTERTAINMENT 1.2%
Carnival Corp Class 'A' 1,000 24,125
AIR TRANSPORTATION 5.2%
Atlantic Southeast Airline 5,000 107,800
COMMUNICATION 3.7%
ALLTEL Corp. 2,000 58,750
Hong Kong Telephone 1,000 17,625
BUILDING MATERIALS 8.7%
Home Depot 2,000 95,750
Fastenal 2,000 85,250
FOOD STORES 1.4%
Food Lion 5,000 28,450
EATING & DRINKING PLACES 2.9%
Cracker Barrel Old Country Stores, Inc. 1,000 17,250
Brinker International, Inc. 1,000 15,125
Buffets Inc. 2,000 28,000
FINANCIAL 1.0%
Countrywide Credit 1,000 21,630
INSURANCE 7.2%
American International Group 450 41,456
AFLAC, Inc. 2,500 108,750
REAL ESTATE 1.7%
First Union REIT 5,000 35,000
SOFTWARE 3.2%
Parametric Technology 1,000 66,500
MISCELLANEOUS 0.1%
Eagle-Picher 20,000 1,200
FIXED INCOME (16.2%)
Cash & Equivalents 16.2% 338,014
TOTAL 100.0% 2,090,779
ADAMS EQUITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Shares Value
EQUITIES (92.7%)
NONMETALLIC MINERALS 4.9%
Vulcan Materials Co. 130 7,442
FOOD PRODUCTS 4.5%
Dole Foods 195 6,825
PAPER PRODUCTS 13.4%
International Paper Co. 200 7,575
Shorwood Packaging Co. 430 6,127
Williamette Industries, Inc. 120 6,705
CHEMICAL PRODUCTS 10.0%
Cabot Corp. 150 8,100
Wellman, Inc. 310 7,091
PRIMARY METAL INDUSTRIES 10.1%
Allegheny Ludlow 430 7,955
Kuhlman Corporation 600 7,500
FABRICATED METAL PRODUCTS 4.8%
Amcast Industrial Corporation 400 7,350
INDUSTRIAL MACHINERY & EQUIPMENT 4.9%
Gleason Corporation 230 7,475
COMPUTER/ELECTRONIC EQUIPMENT 8.6%
Cypress Semiconductor 500 6,312
International Business Machines 75 6,816
TRANSPORTATION SERVICES 4.8%
GATX Corp. 150 7,275
WHOLESALE TRADE - DURABLE GOODS 9.4%
Arrow Electronics, Inc. 150 6,450
Bell Industries 350 7,875
FURNITURE & HOMEFURNISHING STORES 3.7%
Best Buy Company, Inc. 350 5,688
FINANCIAL 8.4%
Federal National Mortgage 50 6,200
Green Tree Financial 250 6,563
BUSINESS SERVICES 4.6%
Manpower Inc. 250 7,031
MISCELLANEOUS 0.7%
Castle Cooke 65 1,089
FIXED INCOME (7.3%)
Cash & Equivalents 7.3% 11,127
TOTAL 100.0% 152,571
C/GOVERNMENT FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Par Value Value
GOVERNMENT 91.6%
U.S. Treasury Notes 6.5% Due 11/30/1996 500,000 505,625
U.S. Treasury Notes 6.5% Due 5/15/1997 500,000 508,438
U.S. Treasury Notes 6.375% Due 6/30/1997 500,000 508,437
U.S. Treasury Notes 6.5% Due 4/30/1997 500,000 508,125
U.S. Treasury Notes 6.5% Due 9/30/1996 500,000 504,375
U.S. Treasury Notes 7.375% Due 5/15/1996 500,000 503,750
U.S. Treasury Notes 7.625% Due 2/15/2007 500,000 549,375
Cash & Equivalents 8.4% 328,215
TOTAL 3,916,340
C/COMMUNITY ASSOCIATION RESERVE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Par Value Value
GOVERNMENT 89.0%
U.S. Treasury Notes 6.00% Due 12/31/1997 25,000 25,383
U.S. Tresaury Notes 6.00% Due 6/30/1996 25,000 25,086
U.S. Treasury Notes 7.125% Due 10/15/1998 25,000 26,203
U.S. Treasury Notes 7% Due 4/15/1999 25,000 26,266
U.S. Treasuty Notes 6.5% Due 11/30/1996 25,000 25,281
U.S. Treasury Notes 5.875% Due 3/31/1999 50,000 50,875
U.S. Treasury Notes 5.875% Due 7/31/1997 50,000 50,500
U.S. Treasury Notes 5.875% Due 8/15/1998 50,000 50,781
U.S. Treasury Notes 6% Due 10/15/1999 50,000 51,203
U.S. Treasury Notes 6.125% Due 5/15/1998 50,000 50,985
Cash & Equivalents 11.0% 47,222
TOTAL 429,785
C/TAX-FREE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Par Value Value
MUNICIPAL BONDS 97.5%
1ST FLORIDA GOV FIN COM 6.2% DUE 7/1/03 25,000 27,438
BROWARD CNTY FL S.O. 5.5% DUE 1/1/05 100,000 105,000
BROWARD CTY SCHOOL DIST GO 5.7% 2/15/08 100,000 106,000
CAPE CORAL SPC OB 5.85% 6/1/01 25,000 26,750
DUVAL CTY FL SCH DIST 6.125% 8/04-02 100,000 108,750
ESCAMBIA CTY FL 5.75% DUE 4/01/04 100,000 104,250
FL BD OF EDUCATION 5.75% 5/1/1997 25,000 25,625
FL DIV OF BOND FINANCE 5.8% 7/1/01 50,000 53,500
FL ST MUNI PWR AGY 6.5% PR 10/1/02 @102 100,000 112,500
FLORIDA BOARD OF REGENTS 6.7% 7/1/2006 20,000 22,950
FLORIDA G.O. 5.90% 10/1/04 100,000 101,500
FT LAUDERDALE FL W & S 6.1% 9/1/2000 50,000 53,750
GREATER ORLANDO AVIATION AU 5.6 10/01/02 50,000 53,250
HILLSBOROUGH CAP IMP 6% 7/1/2001 35,000 37,713
HILLSBOROUGH CNTY CAP 6% 7/1/98 100,000 104,500
HILLSBOROUGH, FL SD 7.20% DUE 8/15/05 25,000 29,438
JACKSONVILLE FL ELEC 6.375% DUE 10/1/99 75,000 80,625
JACKSONVILLE FL PORT AUTH 7.625 11/1/97 100,000 106,500
JACKSONVILLE FL HEALTH 11.5% 10/1/12 65,000 106,762
JACKSONVILLE FL PORT 7.625% 11/1/03 25,000 29,812
KEY WEST FL UTIL REV 6.75% 10/01/13 100,000 112,500
LAKE COUNTY FL 5.25% DUE 12/1/99 60,000 62,400
MANATEE CO, FL PUB UTIL 6.2% DUE 10/1/01 25,000 27,375
MANATEE CTY FL PUB UTIL 6% 10/1/06 100,000 108,750
MARION CTY HOSP DIST 6.60% 10/1/98 25,000 26,500
OKALOSSA CTY FL 7.6% PR 7/1/99 @102 75,000 84,562
ORANGE CTY FL TOURIST TAX 6.20% 10/01/03 30,000 33,150
ORANGE CTY FL WASTE WTR 6.00% 4/1/06-04 100,000 108,500
ORLANDO & ORANGE CTY FL 5.375 7/1/06 100,000 104,000
ORLANDO & ORANGE FL 6.50% PR 7/1/00 @102 25,000 27,625
ORLANDO FL UTIL COM 8% DUE 4/1/02 100,000 118,750
PALM BCH CTY SCHL DIST 5.875% 8/1/04-02 100,000 107,750
PALM BEACH CTY, FL 6.7% DUE 6/1/98 25,000 26,500
PASCO CNTY FL WASTE PR 6.95% DUE 4/1/98 95,000 101,650
PASCO COUNTY FL W & S 5.8% DUE 10/1/07 100,000 107,750
PINELLAS CNTY, FL SEWER 5.2% DUE 10/1/04 100,000 104,250
PUERTO RICO COMWLTH 5.4% DUE 7/1/2007 100,000 101,750
ST PETERSBURG PUB UT 6.55% DUE 10/1/02 150,000 167,625
VERO BEACH ELEC 6.2% PR 12/1/99 @102 25,000 27,250
VOLUSIA CTY, FL G.O. 5.7% DUE 7/1/01 100,000 106,500
Cash & Equivalents 2.5% 79,270
TOTAL 3,141,020
C/FUNDS GROUP, INC.
STATEMENTS OF ASSETS & LIABILITIES
December 31, 1995
C/Growt C/Gover C/Tax C/Commu Adams
C/Fund h Stock nment Free nity Equity
Securities at Cost 3330113 1894165 3897824 3089863 422286 155483
ASSETS
Securities Value 4331213 2090779 3916340 3141020 429785 152571
Receivables
Dividends & Inte 22335 6011 56117 54190 6724 299
Investment Secur 0 167680 0 0 0 0
Other 0 0 20 77 0 0
4353548 2264470 3972477 3195287 436509 152870
LIABILITES
Advisor Fee & Other 1657 786 709 614 6890 55
Investment Securiti 0 184060 0 0 0 6148
1657 184846 709 614 6890 6203
NET ASSETS APPLICABLE
TO OUTSTANDING SHAR 4351891 2079624 3971768 3194673 429619 146667
CAPITAL SHARES 258646 184398 396280 322401 42,960 14,935
NET ASSET VALUE PER $16.83 $11.28 $10.02 $9.91 $10.00 $9.82
C/FUNDS GROUP, INC.
STATEMENTS OF OPERATIONS
For the year ended December 31, 1995
C/Growt C/Gover C/Tax C/Commu Adams
C/Fund h Stock nment Free nity Equity
INVESTMENT INCOME
Dividends 110539 25582 0 0 0 486
Interest 15855 9384 264474 164924 14783 416
126394 34966 264474 164924 14783 902
OPERATING EXPENSES
Investment advisory 39401 17459 19822 14814 0 113
Professional fees 12238 4925 5587 4261 0 16
Registration fees 1126 483 459 432 0 0
Custodian fees 10590 4257 10404 7593 0 250
Directors fees 5735 2572 2178 1627 0 0
Computer lease 2670 1142 1115 896 0 6
Miscellaneous 1120 696 468 397 0 43
72880 31534 40033 30020 0 428
NET INVESTMENT INCO 53,514 3,432 224441 134904 14,783 474
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Unrealized appreciation (depreciation) in
value of inve 735703 218114 205870 167845 10489 -2911
Net realized gain ( 126793 108311 13719 -10167 -373 0
NET GAIN (LOSS) ON 862496 326425 219589 157678 10116 -2911
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPE 916010 329857 444030 292582 24899 -2437
(1) Period from inception of fund on October 15, 1995 to December 31, 1995
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31, 1994
C/Grow C/Gove C/Tax C/Comm Adams
C/Fund th rnment Free unity Equity
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment incom 91587 -2227 222666 93589 3065 -
Net realized gain (l 129227 -77989 -74767 -1909 - -
Unrealized (deprecia -280912 -61422 -141328 -122041 -2497 -
Net increase (decrea -60098 -141638 6571 -30361 568 -
DISTRIBUTIONS TO SHAREHOLDERS
Investment income - -96817 -2298 222666 -92557 -3246 -
Net realized gain/lo 129227 - - - - -
Return of capital -15046 -809 -8417 -4767 - -
241090 -3107 231083 -97324 -3246 -
CAPITAL SHARE TRANSACTIONS
Shares sold 657528 136920 4551508 3361765 19836 -
Reinvested distribut 241090 3107 231083 97324 3246 -
Shares redeemed -718521 -264596-5332509 -865540 -6354 -
180097 -269314 -774430 2465864 16728 -
Net increase (decrea -121091 -269314 -774430 2465864 14050 -
NET ASSETS
Beginning of year 3926817 1648612 6003983 622220 44703 -
End of year 3805726 1379298 5229553 3088084 58753 -
UNDISTRIBUTED INVEST - -77989 -74767 -5526 - -
(1) Period from inception of fund on October 15, 1995 to Decem-
ber 31, 1995
C/FUNDS GROUP, INC.
SUPPLEMENTARY INFORMATION - SELECTED PER SHARE DATA AND RATIOS(1)
For the Periods Ended December 31, 1995, 1994, 1993, 1992, and 1991
Net Net
Asset Asset
value Dist Dist Value
at Inv Opera Dist Unrl from from at end
beg of Inc ting from Gain real ret of
per Expen NII NII Loss gains cap period
C/Fund
1995 13.95 0.50 -0.29 0.21 -0.21 3.42 -0.54 - 16.83
1994 15.07 0.59 -0.25 0.34 -0.36 -.55 -0.49 -.06 13.95
1993 14.19 0.56 -0.28 0.28 -0.27 1.34 -0.47 - 15.07
1992 13.14 0.53 -0.23 0.30 -0.30 1.05 0.00 - 14.19
1991 11.31 0.39 -0.19 0.20 -0.17 2.36 -0.56 - 13.14
C/Growth Stock Fund
1995 9.34 0.22 -0.20 0.02 -0.02 2.13 -0.19 - 11.28
1994(5) 10.27 0.18 -0.19 -.01 -0.01 -.90 - -.01 9.34
1993(5) 10.14 0.16 -0.16 - - 0.28 -0.15 - 10.27
1992(2,4) 10.00 0.09 -0.05 0.04 -0.04 0.19 -0.05 - 10.14
C/Government Fund
1995 9.44 0.64 -0.10 0.54 -0.54 0.58 - - 10.02
1994 9.93 0.53 -0.09 0.44 -0.44 -.47 - -.02 9.44
1993 9.89 0.71 -0.09 0.61 -0.61 0.26 -0.22 - 9.93
1992(2,4) 10.00 0.29 -0.03 0.26 -0.26 -.11 - - 9.89
C/Tax-Free Fund
1995 9.39 0.54 -0.10 0.44 -0.44 0.52 - - 9.91
1994 9.96 0.47 -0.09 0.38 -0.37 -.56 - -.02 9.39
1993 9.99 0.51 -0.09 0.43 -0.44 -.02 - - 9.96
1992(2,4) 10.00 0.22 -0.03 0.19 -0.19 -.01 - - 9.99
C/Community Association
Reserve Fund
1995 10.00 0.60 - 0.60 -0.60 - - - 10.00
1994 10.00 0.59 - 0.59 -0.59 - - - 10.00
1993 10.00 0.50 - 0.50 -0.50 - - - 10.00
1992(2,4) 10.00 0.21 - 0.21 -0.21 - - - 10.00
Adams Equity Fund
1995(3,4) 10.00 0.06 -0.03 0.03 -0.02 -.19 - - 9.82
C/FUNDS GROUP, INC.
SUPPLEMENTARY INFORMATION - SELECTED PER SHARE DATA AND RATIOS(1)
For the Periods Ended December 31, 1995, 1994, 1993, 1992, and 1991
Operating Net Shares
Expenses to Investment Portfolio Outstanding
Average Net Income to Turnover At end of
Assets Average Net Rate the Period
C/Fund
1995 1.85% 1.36% 5.46% 258,646
1994 1.83% 2.53% 23.84% 272,891
1993 1.89% 1.88% 52.19% 260,630
1992 1.69% 2.16% 92.84% 209,418
1991 1.55% 1.56% 41.80% 186,896
C/Growth Stock Fund
1995 1.85% .20% 16.46% 184,398
1994(5) 1.87% (.16%) 37.23% 147,699
1993(5) 1.70% (.04%) 20.26% 160,548
1992(2)(4 1.06% .41% 13.07% 135,158
C/Government Fund
1995 .99% 5.54% 124.70% 396,280
1994 1.15% 5.75% 122.48% 554,009
1993 .93% 6.10% 123.98% 604,654
1992(2)(4 .64% 2.63% 79.17% 346,557
C/Tax-Free Fund
1995 1.01% 4.53% 22.91% 322,401
1994 1.15% 4.70% 2.76% 328,872
1993 .88% 4.24% 86.14% 62,444
1992(2)(4 .68% 1.87% - 94,541
C/Community Association
Reserve Fund
1995 - 5.96% 41.35% 42,960
1994 - 8.76% - 5,875
1993 - 4.98% 58.29% 4,470
1992(2)(4 - 2.09% - 2,362
Adams Equity Fund
1995(3)(4 1.16% .32% - 14,935
1)Selected data for a share of capital stock outstanding throughout the year.
2)Inception of fund is July, 1992
3)Inception of Fund is October, 1995
4)Ratio of operating expensed to average net assets has been annualized.
5)Adjusted to reflect elimination of expense reimbursement from the advisor.
C/FUNDS GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
NOTE A - ORGANIZATION
C/FUNDS Group, Inc. (the Company), formerly Caldwell Fund, Inc.,
is registered under the Investment Company Act of 1940, as amend-
ed, as an open-end diversified investment company. Effective July
2, 1985, C/FUND Group, Inc., shares were registered under Section
8(a) of the Securities Act of 1933. The Caldwell Fund was the
only fund offered by the Company through June, 1992. Effective
July, 1992, four new funds were made available and the Caldwell
Fund was renamed C/Fund. Effective October, 1995, an additional
fund, the Adams Equity Fund, was made available. The primary
investments of the six funds are listed as follows:
FUNDS PRIMARY INVESTMENTS
C/Fund Stocks and Fixed
formerly Caldwell Fund Income Securities
C/Growth Stock Fund Common Stocks
formerly Caldwell Growth Stock Fund or Equivalents
C/Government Fund Obligations of
formerly Caldwell Government Fund U.S. Government
C/Tax-Free Fund Investment Grade
formerly Caldwell Tax-Free Fund Municipal Securities
C/Community Association Reserve Fund Obligations of
formerly Caldwell Community Association U.S. Government
Reserve Fund
Adams Equity Fund Stocks
NOTE B - SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are in accordance
with accounting policies generally accepted in the investment
company industry.
Security Valuation - Investments in securities traded on a na-
tional exchange are stated at the last reported sales price on
the day of valuation; other securities traded in over-the-counter
market and listed securities for which no sale was reported on
that date are stated at the last quoted bid price. Restricted
securities and other securities for which quotations are not
readily available are valued at fair value as determined by the
Board of Directors.
Investment Income - Dividend income is recorded as of the ex-
dividend date. Interest income is recognized on the accrual
basis. Realized gains and losses are determined on the identified
cost basis.
Distributions to shareholders - Dividends to shareholders are
recorded on the ex-dividend date.
Income Tax Status - No provision for income taxes is included in
the accompanying financial statements as the Company regularly
distributes to shareholders its taxable investment income and
realized gains under provision of the Internal Revenue Code
applicable to regulated investment companies.
Security Transactions - The Company follows industry practice and
records security transactions on the trade date.
NOTE C - INVESTMENT ADVISORY AGREEMENT
Each fund has a written agreement (the Agreements) for management
and investment advisory services with Omnivest Research Corpora-
tion (the Advisor) which is owned 100% by Trust Companies of
America, Inc. (TCA), which is controlled by its President and his
family. The Agreements provide for advisor fees to be computed on
the average daily net asset value. Under terms of the agreements,
each Funds total expenses cannot exceed 2% of the Funds average
daily net asset value in any one year. Expenses in excess of 2%
shall be paid by the Advisor. The Advisor waived the advisory
fees for C/Community Association Reserve Fund since inception.
Annual percentage rates provided by the Agreements in computing
investment advisory fees and the fees incurred in 1995 are as
follows:
FUND ANNUAL % RATE INVESTMENT ADVISORY FEES
C/Fund 1.0 $39,401
C/Growth Stock Fund 1.0 17,459
C/Government Fund .5 19,822
C/Tax-Free Fund .5 14,814
C/Community Association
Reserve Fund .5 0
Adams Equity Fund 1.0 113(1)
(1) For the period from inception of the fund on October 15, 1995
to December 31, 1995
C/FUNDS GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
NOTE F - TRANSACTIONS WITH AFFILIATES
In addition to the investment advisory fees discussed in NOTE C,
the Funds pay fees to other related entities, all of which are
100% owned by TCA, primarily for custodianship of assets and
computer processing and programming. Total fees paid to TCA for
services other than investment advising aggregated approximately
$39,000.
The number of shares held by the President of the Company, em-
ployees of the Advisor, and other affiliated persons at December
31, 1995 are as follows:
Shares Net Asset Value
C/Fund 17,472 $294,053
C/Growth Stock Fund 8,473 $95,756
C/Government Fund 12,080 $121,043
C/Tax-Free Fund 7,779 $77,087
Adams Equity Fund 50 $494
NOTE G - MARKET RISK
The Fund is exposed to credit risk on the amount invested in
marketable securities. The maximum amount of loss the Fund would
incur is limited to the amount recorded in the 1995 financial
statements. The Fund does not hold any collateral on the marketa-
ble securities. This exposure to risk is customary for all enti-
ties which have invested in financial instruments.
NOTE H - BROKER ALLOCATIONS
The placement of orders for the purchase and sale of portfolio
securities is made under the control of the Advisor, subject to
the overall supervision of the Board of Directors. The Advisor is
permitted to and does select broker-dealer firms, which provide
economic, corporate, and investment research service. Commissions
paid to firms supplying such research include the cost of such
services. The value of such services aggregated $15,305 for the
year ended December 31, 1995.
REPORT OF INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
C/FUNDS Group, Inc.
Venice, Florida
We have audited the statements of assets and liabilities, includ-
ing the portfolio of investments, of C/FUNDS Group, Inc. (com-
prising, respectively, the C/Fund, C/Growth Stock Fund, C/Govern-
ment Fund, C/Tax Free Fund, C/Community Association Reserve Fund
Portfolios, and Adams Equity Fund) as of December 31, 1995, and
the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years in
the period then ended, and the selected per share data and ratios
for each of the four years in the period then ended. These finan-
cial statements, and per share data and ratios are the responsi-
bility of the Company's management. Our responsibility is to
express an opinion on these financial state ments, and per share
data and ratios based on our audits. The per share data and
ratios for the year ended December 31, 1991 is from financial
statements that were audited by other auditors whose report dated
January 17, 1992 expressed an unqualified opinion.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and per share data and ratios are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with
the custodian, and examination of supporting documentation for
unsettled security purchases. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and selected per share
data and ratios referred to above present fairly, in all material
respects, the financial position of each of the respective port
folios constituting C/FUNDS Group, Inc. as of December 31, 1995,
the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the
eperiod then ended, and the selected per share data and ratios
for each of the four years in the period then ended, in conformi-
ty with generally accepted accounting principles.
GREGORY, SHARER & STUART
St. Petersburg, Florida
January 12, 1996
Investment Advisor
Omnivest Research Corporation
250 Tampa Avenue West
Venice, FL 34285
(941) 485-0654
Custodian
Caldwell Trust Company
201 Center Road Suite 2
Venice, FL 34292
(941) 493-3600
Auditors
Gregory Sharer & Stuart
Certified Public Accountants
100 Second Avenue South
St. Petersburg, FL 33701-4383
(813) 821-6161
Investment Advisory Board
Arthur B. Laffer, Ph.D. Economist
Jude Wanniski, Journalist
Alan Reynolds, Economist
Alvin Moscow, Author
Ted C. Van Antwerp, Philanthropist
Willet J. Worthy, Jr., Vintner
This report has been prepared for the information of shareholders
of the Funds and is not authorized for distribution to Investors
unless preceded or accompanied by an effective Prospectus which
includes information regarding the Funds objectives, policies,
management, records, and other information.
