ROCKWOOD
1998 SEMI-ANNUAL REPORT
FUND FEATURES
INVESTMENT OBJECTIVE
The Fund seeks long term capital appreciation.
FUND MANAGEMENT
Rockwood Advisers, Inc. is the Fund's Investment Manager. Thomas B. Winmill,
the Fund's portfolio manager commencing May 1, 1998, is President and Chief
Executive Officer of the Fund's Investment Manager and a member of its
Investment Policy Committee.
INVESTMENT STRATEGY
The Fund seeks to achieve its objective by investing primarily in common stocks,
which are selected on the basis of their potential for long term capital
appreciation, and generally will include small capitalization companies which
are expected to
achieve above-average growth.
SHAREHOLDER SERVICES
o Electronic Funds Transfers
o Automatic Investment Program
o Retirement Plans:
Traditional deductible IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 403(b),
and Education IRA.
MINIMUM INVESTMENTS
o Regular Accounts, $1,000
o Traditional deductible IRA, Roth IRA, SEP-IRA, SIMPLE IRA, and
403(b), $1,000 o Education IRA, $500
<PAGE>
o Automatic Investment Program, $100
o Subsequent Investments, $100
ACCOUNT ACCESS
1-888-ROCKWOOD
1-888-762-5966
Call toll-free for Fund performance, telephone purchases, and to obtain
information concerning your account. Or, access the Fund on the Web at
Or, access the Fund on the Web at
www.rockwoodfund.com
For Shareholder Service and Information
Use our new, free service giving you instant 24-hour access to your Fund
investment. Call 1-888-503- VOICE (8642).
Rockwood Service and Information OnLine
Check out our Web page for up-to-date account information,service, and more at
http://www.rockwoodfund.com.
Prospectus and Applications
For a copy of the Rockwood prospectus and applications for regular and IRA
accounts, plus an IRA transfer form and disclosure statement, by fax, or by
regular or e-mail, dial 1-888-ROCKWOOD (and press 1) or visit
www.rockwoodfund.com.
Market Information/Share Price
For closing market information and the Fund's current net asset value per share,
dial 1-888- ROCKWOOD (and press 2).
Investment Strategy and Market Update
To hear the portfolio manager's report on Rockwood's current investment strategy
and views on market conditions, dial 1-888-ROCKWOOD (and press 3).
Discount Brokers
Rockwood shares (ticker symbol ROCKX) are available through leading discount
brokers, including Charles Schwab & Co., Fidelity Brokerage, Jack White & Co.,
and Bull & Bear Securities, Inc.
<PAGE>
A Word From the Rockwood Portfolio Manager
Dear Shareholder:
During the first half of the Fund's fiscal year, the country continued to
benefit from a well balanced economy, with inflation and economic activity each
increasing at a relatively modest pace, and interest rates holding at low and
generally stable levels.
A Positive Outlook
Despite having enjoyed the "good life," economically speaking, for
approximately the past seven years, our outlook is constructive.
With respect to the rate of inflation, we believe it will remain low but is
not likely to fall much further. Our conclusion is based in part on an analysis
of the Leading Inflation Index developed by Columbia University's Center for
International Business Cycle Research, which shows that in May 1998 the Index
was still .8% below a year ago, and 1.4% below its March 1997 peak, strong
signals that the level of inflation is highly unlikely to become a problem in
the foreseeable future.
As to economic activity, the Center's Long Leading Index for the U.S.
continued to rise each month from April 1997 through April 1998, with a gain for
the year of 5.4%. Recent shorter term projections, however, covering the next
one to two quarters are lower at 3.6%. On an overall basis then, we look for the
economy to stay healthy for at least the balance of the year, without fear of
overheating.
There is little doubt that the on-going Asian economic and financial crisis
is sapping strength from the expansion in this country, as U.S. producers find
prices for imported goods from Asia now even more competitive, while at the same
time faced with Asian markets less able to absorb our exports.
With both inflation and the economy in check, the likelihood of a
significant increase in interest rates that would typically spell serious
trouble for the stock market appears to be remote.
While stock prices for the six months ended April 30, 1998 were on average
higher for the period, it was also characterized by substantial volatility. It
was not unusual to see a company's stock down more than 25% on the announcement
of lower than expected earnings, and it was not unusual for the difference to be
a matter of only pennies. In any event, the Fund's total return for the period,
which was disappointing following its +27.55% return for the year ended October,
31, 1997, was a negative 11.91%. This compares with +11.85% for the Russell
2000, an unmanaged, fully invested small company index, and with +9.01% for the
Morningstar Small Company Growth Fund category. As we previously advised, from
February 2, 1998 through April 30, 1998 investment decisions have been made by
the Investment Policy Committee of Rockwood Advisers, Inc., the Fund's
Investment Manager, and the Subadvisory Agreement with Aspen Securities and
Advisory, Inc. terminated March 1, 1998. Commencing May 1, 1998, the
undersigned, President and Chief Executive Officer of the Fund's Investment
Manager and a member of its Investment Policy Committee, has been the Fund's
Portfolio Manager.
Our outlook for the remainder of 1998 and beyond is optimistic. As a matter
of interest, you will note that we have expanded the number of securities in the
portfolio to 61 from 26 six months earlier, with the objective of reducing risk
and increasing opportunity for above-average capital appreciation.
<PAGE>
Convenient Services for Building Your Account
We believe the Fund is an attractive vehicle for a long term program of
monthly investing for regular, gifts/transfers to minors, and IRA and other
tax-sheltered retirement plan accounts. This can be done safely, automatically
and conveniently through the Rockwood Bank Transfer Plan, Rockwood Salary
Investing Plan and/or Rockwood Government Direct Deposit Plan.
To receive information on any of these Plans, or the Rockwood No-Fee IRA,
please call 1-888-ROCKWOOD and an Investor Service Representative will be glad
to assist you, as always, without any obligation on your part.
Our goal, quite simply, is to make your money grow. We are fully committed
to providing shareholders with opportunities for capital appreciation, and look
forward to serving your investment needs by seeking attractive levels of total
return in the months and years ahead.
Sincerely,
Thomas B. Winmill
Portfolio Manager, and for the
Investment Policy Committee
June 15, 1998
<PAGE>
ROCKWOOD FUND, INC.
Schedule of Portfolio Investments
April 30, 1998 (Unaudited)
Shares Market Value
COMMON STOCKS (95.8%)
Air Transportation, Scheduled (0.8%)
2,880 CCAIR, Inc.*................................................$ 9,585
Air-Conditioning & Warm Air Heating Equipment
&Commercial &Industrial Refrigeration Equipment (1.9%)
440 Engineered Support Systems, Inc..............................10,560
960 Thermo Power Corp.*..........................................10,800
.............................................................21,360
Arrangement of Transportation of Freight &Cargo (0.9%)
1,570 The Cronos Group*............................................10,009
Bolts, Nuts, Screws, Rivets &Washers (1.8%)
370 Federal Screw Works..........................................20,998
Canned, Frozen &Preserved Fruit,
Vegetables & Food Specialties(0.8%)
1,060 Vacu-Dry Co.*.................................................9,010
Construction Machinery &Equipment (4.1%)
1,290 Gencor Industries, Inc.......................................46,843
Converted Paper &Paperboard Products (1.0%)
2,580 Disc Graphics, Inc. *........................................11,207
Dolls &Stuffed Toys (0.9%)
630 Play By Play Toys &Novelties, Inc.*......................... 10,710
Electric Lighting &Wiring Equipment (8.1%)
2,050 Chase Corp..................................................36,388
750 SL Industries, Inc..........................................10,969
1,750 The Genlyte Group Inc.*.....................................44,516
............................................................91,873
Electronic Components (0.9%)
410 Axsys Technologies, Inc.*...................................10,019
Electronic Components &Accessories (5.6%)
1,700 CTSCorp.....................................................62,794
Footwear (1.8%)
500 K-Swiss Inc. Class A........................................10,375
580 Maxwell Shoe Company Inc.*..................................10,295
............................................................20,670
Gaskets, Packaging &Sealing Devices &Rubber &
Plastic Hoses (3.0%)
1,490 Wynn's International, Inc.................................$ 33,525
General Industrial Machinery &Equipment(1.1%)
570 Farr Company*.............................................. 12,112
<PAGE>
Industrial Process Furnaces &Ovens (0.9%)
4,000 The Bethlehem Corp.*......................................10,250
Instruments for Measuring &Testing of Electricity &
Electrical Signals (3.5%)
1,840 IFRSystems, Inc...........................................39,100
Miscellaneous Chemical Products (4.5%)
3,200 Arrow-Magnolia International, Inc.*.......................18,600
1,130 LeaRonal Inc..............................................32,205
..........................................................50,805
Operative Builders (2.8%)
1,280 AMREP Corp.*..............................................11,040
460 Analysis & Technology, Inc................................10,120
16,000 Calton, Inc.*.............................................10,000
..........................................................31,160
Paperboard Containers &Boxes (2.4%)
2,250 Astronics Corp.*..........................................26,719
Pharmaceutical Preparations (0.9%)
4,450 IVCIndustries, Inc.*.......................................9,873
Plastics Products (0.9%)
770 Summa Industries Inc.*....................................10,082
Prefabricated Metal Buildings &Components (0.9%)
1,060 Miller Building Systems, Inc.*............................10,467
Printed Circuit Boards (2.4%)
1,230 Benchmark Electronics, Inc.*..............................27,598
Public Building &Related Furniture (4.8%)
2,155 Virco Manufacturing Corp..................................54,144
Radio &TV Broadcasting &Communications Equipment (0.9%)
1,190 Comtech Telecommunications Corp.*........................ 10,784
Retail - Apparel &Accessory Stores (1.0%)
670 S&K Famous Brands, Inc.*..................................10,888
Retail - Eating Places (9.4%)
1,570 Eateries, Inc.*...........................................12,364
4,900 Elmer's Restaurant, Inc.*.................................20,825
3,770 ELXSICorp.*...............................................52,780
960 Flanigan's Enterprises, Inc.*.............................10,560
510 Garden Fresh Restaurant Corp.*.............................9,626
.........................................................106,155
Retail - Grocery Stores (3.8%)
625 Schultz Sav-O Stores, Inc.................................10,312
840 Seaway Food Town, Inc.....................................21,210
820 Village Super Market, Inc.Class A*........................10,968
..........................................................42,490
Retail - Miscellaneous Retail (1.0%)
910 EZCORP, Inc.Class A*......................................10,806
<PAGE>
Retailing - Building Materials, Hardware,
Garden Supplies (0.9%)
3,600 Calloway's Nursery, Inc.*....................................9,788
Sausage, Other Prepared Meat Products (0.9%)
2,220 Provena Foods, Inc..........................................10,545
Security Brokers, Dealers &Flotation Companies (1.8%)
890 JW Charles Financial Services, Inc.*....................... 11,014
620 Stifel Financial Corp........................................9,494
............................................................20,508
Semiconductors &Related Devices (1.2%)
460 Siliconix Inc.*.............................................13,182
Services - Computer Rental &Leasing (2.1%)
1,090 Amplicon, Inc...............................................23,707
Services - Engineering Services (1.0%)
1,390 STVGroup, Inc.* ............................................11,815
Steel Pipe &Tubes (0.9%)
1,180 Webco Industries, Inc.*.....................................10,767
Sugar &Confectionery Products (1.1%)
5,500 Lincoln Snacks Company*.....................................12,375
Trucking (4.2%)
670 Smithway Motor Xpress Corp. Class A*........................11,222
2,040 Transport Corporation of America, Inc.*.....................36,465
............................................................47,687
Water Transportation (0.9%)
1,800 Commodore Holdings Ltd.*.....................................9,844
Wholesale - Computer &Peripheral Equipment &Software (2.0%)
1,380 ATECGroup, Inc.*............................................10,954
2,500 Capital Associates, Inc.*.................................. 11,250
............................................................22,204
Wholesale - Groceries &Related Products (0.9%)
450 Fresh American Corp.*.......................................10,069
Wholesale - Miscellaneous Nondurable Goods (0.9%)
560 Advanced Marketing Services, Inc.*..........................10,640
Wholesale - Motor Vehicle Supplies &New Parts (3.3%)
1,440 Keystone Automotive Industries, Inc.*.......................37,170
Wood Household Furniture (0.9%)
220 Stanley Furniture Company, Inc.*........................... 10,285
Total Common Stocks (cost: $1,057,723) (95.8%) ........1,082,622
Par Value
Short Term Investments (4.2%)
$46,921 State Street Bank and Trust Repurchase Agreement, April 30, 1998,
due May 1, 1998 (collateralized by $50,000 U.S. Treasury Note 6%,
8/15/00 proceeds $46,926)...................................46,921
Total Investments (cost: $1,104,644) (100%).............$1,129,543
<PAGE>
* Indicates non-income producing security.
See accompanying notes to financial statements.
<PAGE>
ROCKWOOD FUND, INC.
Statement of Assets and Liabilities
April 30, 1998 (Unaudited)
ASSETS:
Investments at market value (cost: $1,104,644)(note 1) $1,129,543
Cash 13,062
Other assets 386
TOTAL ASSETS 1,142,991
LIABILITIES:
Payables:
Investment securities purchased 13,062
Accrued expenses 18,315
TOTAL LIABILITIES 31,377
NET ASSETS:
(applicable to 55,322 outstanding shares: 1,000,000,000 shares of
$.01 par value authorized) $1,111,614
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($1,111,614 a 55,322) $20.09
At April 30, 1998, net assets consisted of:
Paid-in capital $ 951,101
Accumulated net realized gain on investments 153,648
Net unrealized appreciation on investments 24,899
Accumulated deficit in net investment income (18,034)
$1,111,614
See accompanying notes to financial statements.
<PAGE>
ROCKWOOD FUND, INC.
Statement of Operations
Six Months Ended April 30, 1998 (Unaudited)
INVESTMENT INCOME:
Interest $ 1,641
Dividends 1,466
Total investment income....................................3,107
EXPENSES:
Transfer agent 19,044
Investment management(note 3) 6,746
Shareholder administration (note 3) 5,751
Registration (note 3) 5,108
Professional (note 3) 3,347
Printing 2,976
Custodian 2,480
Distribution (note 3) 1,686
Other 2,390
Total expenses 49,528
Expenses reimbursed (note 3) (28,387)
Net expenses 21,141
Net investment loss (18,034)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from security transactions 153,795
Unrealized depreciation of investments during the period (346,960)
Net realized and unrealized loss on investments (193,165)
Net decrease in net assets from operations $(211,199)
See accompanying notes to financial statements.
<PAGE>
ROCKWOOD FUND, INC.
Statements of Changes in Net Assets
For the Six Months Ended April 30, 1998 (Unaudited) and for the Year Ended
October 31, 1997
<TABLE>
<CAPTION>
April 30, October 31,
1998 1997
OPERATIONS:
<S> <C> <C>
Net investment loss $ (18,034) $ (36,833)
Net realized gain from security transactions 153,795 153,338
Unrealized appreciation (depreciation) of investments
during the period (346,960) 225,439
Net increase(decrease) in net assets from operations (211,199) 341,944
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain ($1.80 and $4.90 per share,
respectively) (116,177) (246,186)
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net assets from capital share transactions(a) (331,945) 475,587
Total change in net assets (659,321) 571,345
NET ASSETS:
Beginning of period 1,770,935 1,199,590
End of period $1,111,614 $1,770,935
</TABLE>
<TABLE>
<CAPTION>
(a) Transactions in capital shares were as follows:
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 6,641 $ 137,857 24,462 $567,430
Shares issued in reinvestment of distribution 5,973 116,060 12,073 245,800
Shares redeemed (28,353) (585,862) (14,965) (337,643)
Net increase (15,739) $(331,945) 21,570 $475,587
</TABLE>
<PAGE>
Notes to Financial Statements
See accompanying notes to financial statements.(1)
The Fund is a Maryland corporation registered under the Investment Company Act
of 1940, as amended ("1940 Act"), as a non-diversified, open-end management
investment company. The investment objective of the Fund is capital
appreciation. The Fund seeks capital appreciation by investing, depending on the
assessment of economic and market factors, in equity securities, securities
convertible into common stocks, and preferred stocks. The following is a summary
of significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. With respect to security valuation,
securities traded on a national securities exchange and securities traded on the
Nasdaq National Market System ("NMS") are valued at the last reported sales
price on the day the valuations are made. Such securities that are not traded on
a particular day and securities traded in the over-the-counter market that are
not on NMS are valued at the mean between the current bid and asked prices.
Securities for which quotations are not readily available and other assets are
valued at fair value as determined in good faith by or under the direction of
the Board of Directors. Securities denominated in foreign currencies are
translated into U.S. dollars at prevailing exchange rates. Investment
transactions are accounted for on the trade date (date the order to buy or sell
is executed). Dividend income and distributions to shareholders are recorded on
the ex-dividend date and interest income is recorded on the accrual basis. In
preparing financial statements in conformity with generally accepted accounting
principles, management makes estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements, as
well as the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
(2)The Fund intends to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all
its taxable investment income and net capital gains, if any, after utilization
of any capital loss carryforward, to its shareholders and therefore no Federal
income tax provision is required. Based on Federal income tax cost of
$1,104,644, gross unrealized appreciation and gross unrealized depreciation were
$65,632 and $40,733 , respectively at April 30, 1998.
...
(3)The Fund retains Rockwood Advisers, Inc. (the "Investment Manager") as its
Investment Manager. Under the Investment Management Agreement, dated February
28, 1997, the Investment Manager receives a management fee, payable monthly,
based on the average daily net assets of the Fund at the annual rate of 1% on
the first $200 million, .95% from $200 million to $400 million, .90% from $400
million to $600 million, .85% from $600 million to $800 million, .80% from $800
million to $1 billion and .75% over $1 billion. The Investment Manager has
agreed to waive all or part of its fee or reimburse the Fund monthly if and to
the extent the aggregate operating expenses of the Fund exceed the most
restrictive limit imposed by any state in which shares of the Fund are qualified
for sale, although currently the Fund is not subject to any such limits.
Voluntary reimbursement for the six months ended April 30, 1998 was $28,387.
Pursuant to the Investment Management Agreement, the Investment Manager retained
Aspen Securities and Advisory, Inc. (the "Subadviser") regarding portfolio
investments. Pursuant to the Subadvisory agreement, which terminated March 1,
1998, the Subadviser advised and consulted with the Investment Manager regarding
the selection, clearing and safekeeping of the Fund's portfolio investments and
assisted in pricing and generally monitoring such investments. The Subadviser
also provided the Investment Manager with advice as to allocating the Fund's
portfolio assets among equities and other types of investments, including
recommendations of specific investments. The Investment Manager, not the Fund,
paid the Subadviser monthly a percentage of the Investment Manager's net fees
based upon the Fund's performance and net assets. Certain officers and directors
of the Fund are officers and directors of the Investment Manager and Investor
Service Center, Inc., the Fund's Distributor. For the six months ended April 30,
1998, the Fund paid $1,517 to Bull & Bear Securities, Inc., an affiliate of the
Investment Manager as commissions for brokerage services. The Fund reimbursed
the Investment Manager $265 for providing certain administrative and accounting
services at cost for the six months ended April 30, 1998. The Fund has adopted a
plan of distribution pursuant to Rule 12b-1 under the 1940 Act (the "Plan").
Pursuant to the Plan, the Fund pays the Distributor a distribution fee in an
amount of one-quarter of one percent per annum of the Fund's average daily net
assets as compensation for distribution and service activities. The fee is
intended to cover personal services provided to shareholders in the Fund and the
maintenance of shareholder accounts and all other activities and expenses
primarily intended to result in the sale of the Fund's shares. Investor Service
Center also received $5,751 for shareholder administration services which it
provided to the Fund at cost for the six months ended April 30, 1998.
(4) Purchases and proceeds of sales of securities other than short term notes
aggregated $2,196,683 and $2,699,392, respectively.
(5) The Fund has a committed bank line of credit. At April 30, 1998, there was
no balance outstanding and the interest rate was equal to the Federal Reserve
Funds Rate plus 1.00 percentage points. For the six months ended April 30,1998,
the weighted average interest rate was 6.36% based on the balance outstanding
and the weighted average amount outstanding was $23,601.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998 Years Ended October 31,
PER SHARE DATA* (Unaudited) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $24.92 $24.24 $18.73 $16.61 $16.32 $12.42
Income from investment operations:
Net investment loss (.27) (.59) (.56) (.31) (.22) (.26)
Net realized and unrealized gain
(loss) on investments (2.76) 6.17 6.07 2.43 .51 4.16
Total from investment operations (3.03) 5.58 5.51 2.12 .29 3.90
Less distributions:
Distributions from net realized
gains on investments (1.80) (4.90) - - - -
Net asset value at end of period $20.09 $24.92 $24.24 $18.73 $16.61 $16.32
TOTALRETURN (11.91)% 27.55% 29.42% 12.76% 1.78% 31.40%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted) $1,112 $1,771 $1,200 $774 $714 $738
Ratio of expenses to average net assets(a) 3.14%** 2.81% 2.55% 2.30% 2.00% 2.81%
Ratio of net investment loss to average net assets(b) (2.68%)** (2.65%) (2.23%) (1.77%) (1.38%) (1.67%)
Portfolio turnover rate 156.20% 44.00% 42.48% 30.04% 18.26% 19.28%
Average commission per share $.0583 $.0454 $.0562
</TABLE>
* Per share net investment loss and net realized and unrealized gain
(loss) on investments have been computed using the average number of
shares outstanding. These computations had no effect on net asset value
per share.
** Annualized.
(a) Ratio prior to reimbursement by the manager was 7.36%**, 10.47%, 4.44%,
3.00%, 2.82% and 2.90% for the six months ending April 30, 1998 and for the
years ended October 31, 1997, 1996, 1995, 1994 and 1993, respectively.
(b) Ratio prior to reimbursement by the manager was (6.90%)**, (10.31%),
(4.12%), (2.47%), (2.20%) and (1.76%) for the six months ending April
30, 1998 and for the years ended October 31, 1997, 1996, 1995, 1994 and
1993, respectively.
<PAGE>
ACCOUNT APPLICATION
Use this Account Application to open a regular Rockwood account. For a Rockwood
IRA Application, call 1-888-ROCKWOOD. Return this completed Account Application
in the enclosed envelope or mail to: INVESTOR SERVICE CENTER, Box 419789, Kansas
City, MO 64141-6789.
1. REGISTRATION If you need assistance in completing this Account
Application, please call 1-888-503-FUND(3863 )
INDIVIDUAL:
FIRST NAME MIDDLE INITIAL LAST NAME SOCIAL SECURITY NUMBER
JOINT OWNER (IF ANY):
FIRST NAME MIDDLE INITIAL LAST NAME SOCIAL SECURITY NUMBER
Note: Registration will be Joint Tenants with Right of Survivorship, unless
otherwise specified.
GIFT/TRANSFER TO A MINOR:
as Custodian for
NAME OF CUSTODIAN (ONLY ONE) NAME OF MINOR (ONLY ONE)
under the Uniform Gifts/Transfers to Minors Act.
Custodian's State of Residence Minor's Social Security
Number Minor's Date of Birth
CORPORATIONS, PARTNERSHIPS, TRUSTS AND OTHERS:
Name of Corporation, Partnership, or other Organization
Name of Individual(s) Authorized to Act for the Corporation, Partnership, or
other Organization
Tax I.D. Number Name of Trustee(s) Date of Trust Instrument
2. MAILING ADDRESS, TELEPHONE NUMBER, AND CITIZENSHIP
<PAGE>
Street City State/Zip Daytime Telephone E-mail Address
Citizen of:( ) U.S.( ) Other: Citizen of: ( )U.S. ( )Other:
Owner Joint Owner
3. AMOUNT INVESTED ($1,000 MINIMUM) Note: The $1,000 minimum initial
investment is waived if you elect to invest through the Rockwood Bank Transfer
Plan, the Rockwood Salary Investing Plan, and/or the Rockwood Government Direct
Deposit Plan (see Section 4).
Investment: $ ( ) By Check * ( )By Wire
Date + Assigned Account
Number ++
* Please drawyour check(s) to the order of ROCKWOOD and enclose with this
Application. THIRD PARTY CHECKS WILL NOT BE ACCPTED.
+ Indicate date on which money was wired.
++ Please call 1-888-503-FUND(3863) to be assigned an account number before
making an initial investment by wire.
4. ROCKWOOD AUTOMATIC INVESTMENT PROGRAM
( ) ROCKWOOD BANK TRANSFER PLAN Automatically purchase shares each month by
transferring the dollar amount you specify from your regular checking account,
NOW account, or bank money market account. Please attach a voided bank account
check.
<PAGE>
Amount $ Day of month: ( ) 10th ( ) 15th ( ) 20th
$100 Minimum
( ) ROCKWOOD SALARY INVESTING PLAN The enrollment form will be sent to the above
address or call 1-888-503-FUND (3863) to have the form sent to your place of
employment.
( ) ROCKWOOD GOVERNMENT DIRECT DEPOSIT PLAN Your request will be
processed and you will receive the enrollment form.
5. DISTRIBUTIONS If no circle is checked, the Automatic Compounding Option will
be assigned to reinvest all dividends and distributions in your account to
increase the shares you own.
( ) AUTOMATIC COMPOUNDING OPTION Dividends and distributions reinvested in
additional shares.
( ) PAYMENT OPTION ( ) Dividends in cash, distributions reinvested.
t Dividends and distributions in cash.
6. INVESTMENTS AND REDEMPTIONS BY TELEPHONE
Shareholders automatically enjoy the privilege of calling 1-888-503VOICE (8642)
to purchase additional shares of Rockwood or to expedite a redemptionand have
the proceeds sent directly to their address or to their bank account, unless
declined by checking the following circle ( ). The Rockwood link with your bank
offers flexible access to your money. Transfers occur only when you initiate
them and may be made by either bank wire or bank clearinghouse transfer with
Rockwood's Electronic Funds Transfer service. TO ESTABLISH THE ROCKWOOD LINK TO
YOUR BANK, PLEASE ATTACH A VOIDED CHECK FROM YOUR BANK ACCOUNT. One common name
must appear on your Rowood account and bank account.
<PAGE>
7. SIGNATURE AND CERTIFICATION TO AVOID BACKUP WITHHOLDING
"I certify that I have received and read the prospectus for Rowood, agree to its
terms, and have the legal capacity to purchase its shares. I understand
telephone conversations with Investor Service Center, Inc. ("ISC")
representatives are recorded and hereby consent to such recording. I agree that
neither the Fund nor ISC will be liable for acting on instructions believed
genuine and under reasonable procedures designed to prevent unauthorized
transactions. I CERTIFY (1) THE SOCIAL SECURITY OR TAXPAYER IDENTIFICATION
NUMBER PROVIDED IN SECTION 1 ABOVE IS CORRECT, AND (2) I AM NOT SUBJECT TO
BACKUP WITHHOLDING BECAUSE (A) I AM EXEMPT FROM BACKUP WITHHOLDING, OR (B) I
HAVE NOT BEEN NOTIFIED BY THE IRS THAT I AM SUBJECT TO BACKUP WITHHOLDING, OR
(C) I HAVE BEEN NOTIFIED BY THE IRS THAT I AM NO LONGER SUBJECT TO BACKUP
WITHHOLDING." (PLEASE CROSS OUT ITEM 2 IF IT DOES NOT APPLY TO YOU.) THE
INTERNAL REVENUE SERVICE DOES NOT REQUIRE YOUR CONSENT TO ANY PROVISION OF THIS
DOCUMENT OTHER THAN THE CERTIFICATIONS REQUIRED TO AVOID BACKUP WITHHOLDING.
Signature of ( )Owner ( )Trustee ( )Custodian Date
Signature of Joint Owner (if any) Date
