SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM N-lA
1940 Act File No. 811-4421
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 15
CO-OPERATIVE BANK INVESTMENT FUND
d/b/a Bank Investment Fund
(Exact Name of Registrant as Specified in Charter)
75 Park Plaza
Boston, Massachusetts 02116-3934
(Address of Principal Executive Offices)
(617) 695-0415
(Registrant's Telephone Number)
JAMES L. BURNS, JR.
President and Chief Executive Officer
Bank Investment Fund
75 Park Plaza
Boston, Massachusetts 02116-3934
(Name and Address of Agent for Service)
Copies to:
ROBERT E. McLAUGHLIN, ESQ.
Steptoe & Johnson
1330 Connecticut Avenue, N.W.
Washington, D.C. 20036
Dated: March 27, 1996
(73 Pages, including Exhibits)
PART A
Items 1-3.
Not applicable, as this Registration Statement is filed
only under the Investment Company Act of 1940 (the 111940 Act")
and does not relate to the registration of any securities of the
Registrant under the Securities Act of 1933.
Item 4. General Description of Registrant; Risk Factors
(a) (i) The Registrant is a corporation organized
effective April 7, 1985 pursuant to a special act of the
Commonwealth of Massachusetts (Massachusetts Acts of 1984,
Chapter 482, as amended by Massachusetts Acts of 1986, Chapter
244, Massachusetts Acts of 1990, chapter 277, and Massachusetts
Acts of 1991, Chapter 285) (collectively, the "Charter"). The
Registrant's chartered name is the Co-operative Bank Investment
Fund, and the Registrant does business under the name Bank
Investment Fund. The Registrant commenced active operations on
October 18, 1985. The Registrant was established to provide one
or more mutual investment funds for Massachusetts cooperative
banks and other institutions as described in Item 6(a). From
October 18, 1985 through October 12, 1988, the Registrant's
operations were performed through a single investment fund. On
October 12, 1988, the Registrant organized a second fund as a
money market fund. The Registrant is regulated by the
Massachusetts Commissioner of Banks.
The Registrant is an open-end management company.
The Registrant operates as a diversified management
company, but reserves the freedom of action to change
its portfolio concentration to that of a nondiversified
management company.
(ii) The Registrant's current operation is
performed through a no-load, diversified, open-end
investment fund ("Fund One") and a no-load,
diversified, open-end money market fund (the "Liquidity
Fund") (Fund One and the Liquidity Fund are hereinafter
referred to collectively as the "Funds"). The
objective of each of the Funds is to maximize current
income consistent with liquidity of assets and safety
of principal. The fundamental restrictions and
investment policies of the Registrant for Fund One and
Liquidity Fund are described in the following two
paragraphs. The Registrant has a policy of investing
Fund One's assets principally in (A) cash on hand and
due from banks, (B) balances payable upon demand or
certificates of deposits due from a Massachusetts trust
company or a national banking association or banking
company, (C) bonds and other direct obligations of the
United States or obligations unconditionally guaranteed
as to principal and interest by the United States,
(2)
(D)bonds and notes of the Commonwealth of Massachusetts
or any political subdivision thereof, (E) certain
federal agency obligations which have unexpired terms of
five years or less, (F) repurchase agreements involving
government securities, (G) debt instruments deemed
eligible for state banks, legal liquidity by the
Commonwealth of Massachusetts or the Commissioner of
Banks, and (H) certain short-term money market
instruments. Fund One's portfolio of investments was
comprised of items (A), (B), (C), (E), and (F) as of
December 31, 1995.
The Registrant has a policy of investing
the Liquidity Fund's assets principally in
(A) cash on hand and due from banks; (B)
certificates of deposit due from any trust
company, national banking association, banking
company, or any federally insured savings bank,
co-operative bank or savings & loan association
(C) bankers, acceptances; (D) bonds and other
direct obligations of the United States or
obligations unconditionally guaranteed as to
principal and interest by the United States,
and issues of U.S. Government agencies and
instrumentalities which are established under
the authority of an act of Congress; (E) bonds
and notes of the Commonwealth of Massachusetts
or any political subdivision thereof; (F)
repurchase agreements; (G) commercial paper
which, when purchased, is rated A-1 by Standard
& Poor's Corporation ("Standard & Poor's) or
Prime-1 by Moody's Investors Service, Inc.
("Moody's") or, if not rated, has been
determined under procedures adopted and
supervised by the Registrant's Board of
Directors to be of comparable high quality,
including variable amount master demand notes
and short-term obligations of corporations; (H)
Second Tier securities to the extent
permissible by Rule 2a-7 of the Investment
Company Act of 1940 including commercial paper
which when purchased is rated A-2 by Standard &
Poor's or Prime-2 by Moody's or if not rated,
has been determined under procedures adopted,
supervised and approved by the Fund's Board of
Directors to be of comparable quality.
commercial paper obligations in the second tier
category may include variable amount master
demand notes and short-term obligations of
corporations; (I) any other debt instrument
deemed eligible for legal liquidity by the
Commonwealth of Massachusetts or the
(3)
Commissioner of Banks; and (J) certain short-
term money market instruments. All of the
investments for the Liquidity Fund must have a
maturity or remaining maturities of 397 days or
less; except, as otherwise permitted in Rule 2a7.
The Registrant's board of directors has
established procedures designed to stabilize the per
share net asset value of shares of the Liquidity Fund
at $1,000.
Under repurchase agreements entered into by the
Registrant, the Registrant purchases government
securities from a seller subject to an unconditional
agreement to sell the same securities or other assets
back to the seller at a higher price. If a purchaser
under such a repurchase agreement does not assure its
interest by taking possession of a sufficient amount of
assets, or the market value of such assets does not
remain sufficient, the purchaser is at risk in the
event that the seller under such agreement does not
fulfill its obligations under the agreement. It is the
Registrant's policy to minimize risk under such
agreements by (a) having its custodian take possession
of securities purchased under such agreements and
(b) determining that the market value of the securities
purchased under such an agreement is adequate to secure
its interest at the time of purchase and over the life
of the agreement.
The Funds may enter into reverse repurchase
agreements to meet short term liquidity needs of the
Funds. These agreements may not be in excess of three
business days. Any such borrowings would be limited to
borrowings allowable under Section 18 of the Investment
Company Act of 1940 and applicable regulations
promulgated thereunder.
Because holders of the shares of beneficial
interest issued by the Registrant do not have voting
rights (see Item 4(c) below), the objectives of the
Registrant's Funds may be changed without a vote of
those holders.
The Registrant may establish in the future other
distinct investment funds with investment objectives
different from those which the Registrant has adopted
for the Funds. The Registrant's Charter, however,
restricts the Registrant's authority to invest its
assets to certain specified types of securities and
other property. See Item 13 of Part B, "Investment
objectives and Policies."
(4)
(b) No response is required.
(c) (i) Lack of Management Control of the Registrant
by the Investors. The shares of beneficial interest
issued by the Registrant do not provide holders of
such shares with any voting rights. The Registrant's
Board of Directors is elected by the Registrant's
incorporators, who are the directors of The
Co-operative Central Bank (the "Central Bank"), which
is the statutory reserve bank and excess deposit
insurer for Massachusetts co-operative banks. The
Registrant operates pursuant to an exemption from
those provisions of the 1940 Act which require that
shares of stock issued by a registered investment
management company be voting shares.*
(ii) Limited Transferability of Shares. The
Registrant's shares may not be issued to any persons
other than those certain institutions identified as
eligible investors under Item 6(a) below. The
Registrant's shares may not be transferred by such
investors to any persons other than other eligible
investors(except that the shares may be pledged to
such other persons, or may be transferred to the
Central Bank). See Item 6, "Capital Stock and Other
Securities." See also the footnote accompanying Item
4(c)(i) above.
(iii) Officers and Employees Not Full-Time. The
executive officers of the Registrant have significant
duties as officers and employees of the Central Bank,
and are not full-time employees of the Registrant.
However, these officers devote to the Registrant's
affairs such time as is reasonably necessary to
conduct its business.
- - ------------------
*On October 17, 1985 the Securities and Exchange Commission
issued an order pursuant to Section 6(c) of the 1940Act exempting
the Registrant from Sections 13(a), 15(a), 16(a), and (b), 18(I),
22(d) and (e), 24(d), and 32(a) (2) and (3) of the 1940Act (File)
No. 812-6154). This order was amended by the Commission on July
16, 1986. On September 30, 1992 and December 21, 1993, the
Commission issued further orders exempting the Registrant from
Sections 13(a), 15(a), 16(a) and (b), 18(I), 22(d), and 13(a) (2)
and (3) of the 1940 Act (File Nos. 812-7847 and 812-8616,
respectively.
(5)
Item 5. Management of the Funds
(a) The Registrant's charter provides that its Board
of Directors shall have full control of the business of the
Registrant, except for certain powers retained by the
Registrant's incorporators. In particular, the Board of
Directors has authority to invest the Registrant's assets,
subject to the limitations of the Registrant's Charter.
(b) The Registrant does not currently employ the
services of an investment advisor. Investment decisions for the
Registrant are made by authorized officers of the Registrant,
pursuant to authority delegated by the Registrant's Board of
Directors. The Registrant reserves the right to appoint an
investment advisor at any reasonable and customary fee as may be
agreed when, in the opinion of the Registrant's Board of
Directors, the use of such services would improve the Funds'
performance.
(c) (i) The Registrant does not currently utilize the
services of any person (other than its directors,
officers or employees) to provide significant
administrative or business affairs management services
to the registrant.
(ii) The primary investment officer of the Funds
is James L. Burns, Jr., President. He has held this
position since inception of the Registrant in 1985.
For more than 15 years prior to the inception of the
Registrant, he managed investment portfolios for the
Co-operative Central Bank and the State Street Bank
and Trust Company, Boston, Massachusetts.
(d) The Registrant does not utilize the services of a
transfer agent or a dividend paying agent.
(e) The Registrant has reimbursed the Central Bank for
its proportionate share of expenses for facilities or services
used in common by both the Registrant and the Central Bank, such
as office rent, furniture and equipment. All fees and expenses
for the Registrant are estimated and accrued daily. Actual
operating expenses for the year ended December 31, 1995 were
.450% of average net assets for Fund One and .131% of average net
assets for the Liquidity Fund. Operating expenses of $35,200 were
paid or accrued by Fund One as reimbursement to the Central Bank
during the year ended December 31, 1995.
The Liquidity Fund paid $31,000 to Fund One for its
proportionate share of office rent, employee compensation,
equipment and data processing, insurance and other general
expenses in the year ended December 31, 1995.
(6)
Expenses directly related to the operation of one of
the Funds are charged to that Fund. Common and indirect expenses
are allocated between the Funds in the same proportion as each
Fund's net assets bears to the Registrant's total net assets.
(f) The Registrant does not engage in, or contemplate
engaging in, any of the practices referred to in subsection (f)
of item 5 of Form N-lA.
Item 5A. Not applicable, as this Registration Statement is filed
only under the 1940 Act and does not relate to the registration
of any securities of the Registrant under the Securities Act of
1933.
Item 6. Capital Stock and Other Securities
(a) The Registrant has no capital stock; beneficial
ownership of the Registrant is represented by shares of
beneficial interest divided into two classes, the Fund One Class
and the Liquidity Fund Class. Each share within each such class
is equal in every respect to every other share of that class.
The shares of beneficial interest in the Registrant do not
provide holders of such shares with any voting rights. The right
to elect the Registrant's board of directors is vested in the
Registrant's incorporators, who are the directors of the Central
Bank.
Under the Registrant's Charter, its shares may not be
issued to any persons other than Massachusetts co-operative
banks, Massachusetts savings banks, the Co-operative Banks
Employees Retirement Association, the Central Bank, the
Massachusetts Co-operative Bank League, The Savings Bank Life
Insurance Company of Massachusetts, the National Consumer
Co-operative Bank, Massachusetts trust companies, credit
unions incorporated in Massachusetts and federally chartered
credit unions, savings banks and savings and loan associations
with their principal places of business in Massachusetts and
affiliates of other eligible investors in the Registrant.
Notwithstanding these charter provisions, the Registrant is not
currently offering its shares to any credit unions, federally
chartered savings bank or savings and loan associations, the
Co-operative Banks Employees Retirement Association, or the
Massachusetts League of Community Banks (formerly called the
Massachusetts Co-operative Bank League), nor is it offering its
shares to any affiliate of an eligible investor other than a
wholly-owned subsidiary of an otherwise eligible investor.
Moreover, shares of the Liquidity Fund are not being offered to
any affiliate of any eligible investor, but rather is offered to
eligible banking institutions only. The Registrant's shares may
not be transferred by eligible investors to any persons other
than such eligible investors (except that the shares may be
(7)
pledged to such other persons by such investors, or may be
transferred to the Central Bank). If the Registrant's shares are
acquired by any other person by operation of law or by
foreclosure upon the pledge of such shares (or through transfer
in the case of the Central Bank), and if such condition is known
to the Registrant, no dividend may be paid on such shares after
30 days from the date of such acquisition. Furthermore, the
Registrant must offer to repurchase the shares from such person
at net asset value of the shares, less any dividends paid
thereon, after said thirty days. If such offer is refused, the
redemption price which the holder of such shares may obtain in
any subsequent repurchase of those shares by the Registrant is
limited to the net asset value of the shares as last determined
during said thirty days. See Item 8, "Redemption or Repurchase,"
as to eligible shareholders, redemption rights.
(b) As of the date of filing of this Registration
Statement, no person controls the Registrant within the meaning
of subsection (b) of Item 6 of Form N-lA.
(c) There is no authority in the Registrant's charter
or by-laws for modification of the rights of the holders of the
Registrant's shares of beneficial interest.
(d) The Registrant does not have any authority to issue
any securities other than its shares of beneficial interest.
(e) Shareholder inquiries may be made to the Registrant
in writing addressed to Bank Investment Fund, 75 Park Plaza,
Boston, Massachusetts 02116-3934. Telephone inquiries may be
made by calling (617) 695-0415.
(f) The Registrant's policy is to declare dividends from
net income on each day the Funds are open for business and to
make payments thereof to shareholders on a monthly basis.
Distributions of realized net capital gains, if any, are declared
and paid once a year.
Unless an investor elects in writing to receive
dividends on a cash basis, dividends and distributions are
credited to each investor's investment account as additional
shares in the Registrant of the same class as the shares on which
the dividend was paid, at net asset value on the date of payment.
An investor wishing to change the method by which it receives
dividends and distributions must notify the Registrant in writing
at least one week before the effective date of such change.
(8)
(g) The Registrant has and intends to continue to meet
the requirements of Subchapter M of the Internal Revenue Code for
regulated investment companies with respect to Fund One and
intends to meet such requirements with respect to the Liquidity
Fund and, therefore, will not be liable for federal income taxes
to the extent that its earnings are distributed.
Each of the Funds must meet several requirements to
maintain its status as a regulated investment company. Among
these requirements are that at least 90% of its gross income be
derived from dividends, interest, payment with respect to
securities loans or other disposition of securities and certain
other income; that at the close of each quarter of its taxable
year at least 50% of the value of its assets consist of cash and
cash items, government securities, securities of other regulated
investment companies and, subject to certain diversification
requirements, other securities; and that no more than 30% of its
gross income be derived from sales of securities held for less
than three months.
Dividends derived from interest, together with
distributions of any short-term capital gains, are taxable as
ordinary income whether or not reinvested in shares of the
Registrant. Dividends of the Registrant will not qualify for the
85% dividends received provisions of the Internal Revenue Code
for corporations. Investors in the Registrant may be
proportionately liable for taxes on income and gains of the
Registrant. The Registrant will inform its shareholders of the
amount and nature of any income or gains.
Item 7. Purchase of Securities Being offered
(a) Not applicable.
(b) (i) The Registrant continuously offers shares of
each class to all eligible investors and such shares
(except shares of which the redemption price has become
fixed under special conditions set forth in the
Charter, as described under Item 6(a), "Capital Stock
and Other Securities") are sold and redeemed by each
Fund only at prices equal to the net asset value of the
shares of such Fund's class outstanding. The net asset
value per share for each Fund is determined by adding
the value of all securities and other assets held by
the applicable Fund, deducting liabilities of such
Fund,and dividing by the number of shares of such
Fund's class outstanding.
(9)
With respect to Fund One, investments in
United States debt securities and agency
securities are normally valued on the basis of
valuations provided by market makers. Such prices
are believed to reflect the fair value of such
securities and take into account appropriate factors
such as institutional size, trading in similar groups
of securities, yield quality, coupon rate, maturity,
type of issue, and other market data. Prices for
securities with respect to which market quotations are
not readily available will be determined on the basis
of fair market value as determined in good faith by the
Registrant's Board of Directors. The Liquidity Fund's
investment securities are valued based on their
amortized cost without taking into account unrealized
appreciation or depreciation. The Registrant's Board
of Directors has established procedures to stabilize
the net asset value per share of the Liquidity Fund at
$1,000.00.
(ii) The net asset value per share for each Fund
is determined as of the close of the New York Stock
Exchange on days when the Registrant's custodian bank
is open for business. The price at which an order is
effected is based on the next calculation of net asset
value after the order is placed.
(iii)-(v) No sales charge will be made and no
sales load will be involved in the distribution of any
class of the Registrant's shares.
(c) There are no special purchase plans or methods
contemplated by the Registrant.
(d) The minimum initial investment in the Registrant
is $50,000 (although in certain cases the Registrant may require
a larger minimum investment in accordance with the requirements
of applicable securities laws). Additional investments may be
made in any amount in excess of $50,000.
(e) The Registrant does not pay any "trail fees" as
defined in subsection (e) of Item 7 of Form N-lA.
(f) (i) The Registrant, by action of its Board of
Directors, has adopted a plan under Rule 12b-1 of
the 1940 Act for the payment of distribution expenses
for the Funds (the "Plan"). The Plan provides for
quarterly review by the Registrant's Board of Directors
of the amount of and purposes for which expenditures
were made under the Plan and an additional, more
extensive annual review in determining whether the Plan
(10)
will be continued. By its terms, continuation of the
Plan from year to year is contingent on an annual
approval (1) by a majority of the Registrant's
Directors and (2) by a majority of the Directors who
are not "interested persons" as defined in the 1940 Act
and who have no direct or indirect financial interest
in the operation of the Plan or any related agreements
(the Directors described in (1) and (2) being herein
referred to as the "Plan Directors"). The Plan may be
terminated at any time by vote of a majority of the
Plan Directors.
(ii) The principal types of activities for
which payments will be made pursuant to the Plan
are: (1) Fees for membership in trade associations,
including associations in which investors eligible to
invest in one or more of the Funds are members; (2)
Sponsorship of program activities at conferences
attended by eligible investors, or attendance at such
conferences by the Registrant's personnel, and related
travel, meal and other expenses; (3) meals and other
expenses, including travel expenses, related to
business meetings with investors and potential
investors in one or more of the Funds; (4) Personal
items marked with the name or logo of the Registrant
for distribution to investors or eligible investors in
the Registrant; (5) Printing and postage expenses for
written materials to be sent to eligible investors who
are not shareholders in the Registrant; (6)
Subscription to publications for re-distribution to
eligible investors of the Registrant; (7) Formulation
and implementation of marketing and promotional
activities; (8) compensation to officer responsible
for sales and customer service and (9) any other
activities of a substantially similar nature which may
result in the sale of Shares, either directly or
through other persons with which the Registrant may
enter into agreements related to the Plan in
accordance with Rule 12b-1.
(iii) There are no unreimbursed expenses
incurred in any previous plan year and carried over to
future plan years.
(11)
The Plan is applicable to both Fund One and the
Liquidity Fund. Any expenses incurred pursuant to the Plan which
directly relate to the sale or distribution of shares of either
Fund, e.g., printing and mailing of offering materials, will be
allocated to and paid by the applicable Fund. Expenses which
do not directly relate to the sale and/or distribution of shares
of either Fund will be allocated between the Funds in proportion
to the ratio of the net assets of each Fund to total net assets
of the Registrant or on such other basis as the Board of
Directors of the Registrant may determine from time to time to be
fair and equitable.
Item 8. Redemption or Repurchase
(a) The Registrant will redeem shares of either class
from shareholders of record, without any charge, at the per share
net asset value next determined for such class after a request
for redemption is received. Redemption may be requested, if
authorized in advance and in writing, by telephone request to the
Registrant. Shareholders also may make redemption requests by
signed written request addressed to the Registrant. When the
amount to be redeemed is at least $5,000, the Registrant will
wire transfer the amount redeemed to a bank account designated by
the shareholder.
Payment for shares redeemed will be made by the
Registrant within one business day, except as noted in Item 8(d)
below. Redemption of shares or payment may be suspended at times
(a) when the New York Stock Exchange is closed, (b) when trading
on said Exchange is restricted, (c) when an emergency exists as a
result of which disposal by the Registrant of securities owned by
it is not reasonably practicable or it is not reasonably
practicable for the Registrant to fairly determine the value of
the net assets of the Funds, or (d) during any period when the
Securities and Exchange Commission, by order, so permits;
provided that applicable rules and regulations of the Securities
and Exchange Commission shall govern as to whether the conditions
prescribed in (b) or (c) exist.
The Liquidity Fund may invest more than 25% of its
assets in the banking industry through Certificates of Deposit
and Federal Funds sold in the ordinary course of its business.
(b) The Registrant has not established any procedure
whereby a shareholder can sell its shares to the Registrant
through a broker/dealer.
(c) The Registrant has not established any procedure
which would permit it to redeem shares involuntarily in accounts
below a certain number or value of shares.
(12)
(d) The Registrant reserves the right to delay payment
upon request for redemption up to seven business days after any
investment that has been made with uncollected funds.
Item 9. Pending Legal Proceedings
There are no legal proceedings pending to which the
Registrant is a party.
(13)
PART B
STATEMENT OF ADDITIONAL INFORMATION
CO-OPERATIVE BANK INVESTMENT FUND
d/b/a Bank Investment Fund
This Statement of Additional Information is not a
prospectus, and should be read in conjunction with Part A of the
Registrant's Registration Statement, dated March 27, 1996 under
the Investment Company Act of 1940 of which this Statement of
Additional Information is a part. A copy of the entire
Registration Statement, including Part A, may be obtained upon
request from the Bank Investment Fund, 75 Park Plaza, Boston,
Massachusetts 02116-3934, (617) 695-0415.
Dated: March 27, 1996
(14)
Item 11. Table of Contents
Item No. Title Page No.
12 General Information and History 15
13 Investment objectives and Policies 15
14 Management of the Fund 19
15 Control Persons and Principal Holders 23
of Securities
16 Investment Advisory and Other Services 24
17 Brokerage Allocation 26
18 Capital Stock and Other Securities 27
19 Purchase, Redemption and Pricing of 27
Securities Being Offered
20 Tax Status 29
21 Underwriters 29
22 Calculations of Yield Quotations of 29
Money Market Funds
23 Financial Statements 30
(15)
Item 12. General Information and History
The Registrant commenced active operations as an
investment company on October 18, 1985. General information
regarding the Registrant is included under Item 4 of Part A of
the Registration Statement of which this Statement of Additional
Information is a part.
Item 13. Investment Objectives and Policies
(a) The fundamental investment policies and
restrictions of the Registrant followed in connection with the
Registrant's operations are described under Item 4(a) of Part A
of the Registration Statement of which this Statement of
Additional Information is a part.
The Registrant may establish other distinct investment
funds with investment policies which differ from the policies to
be followed with regard to the Registrant's current operations
through the Funds. The Registrant is, however, limited in its
discretion to establish investment policies by certain provisions
of its Charter, which restrict the Registrant's authority to
invest its assets to the following powers:
(1) to make and acquire loans insured by the
Federal Housing Administrator which are secured by
mortgages on real property located within
Massachusetts, or to service such loans;
(2) to invest in debt obligations of the United
States and Massachusetts, certain debt obligations of
other states, certain debt obligations of Canada, debt
obligations of certain other nations (subject to an
aggregate three percent limitation), most federal
agency obligations, debt obligations of Massachusetts
municipalities and certain debt obligations of the
municipalities of other states;
(3) to invest in bonds and other evidences of
indebtedness registered on a national securities
exchange, or for which price quotations are available
through publications of The National Quotation Bureau,
Inc. or a comparable service, or through a national
securities market established in accordance with
Section 11A of the Securities Exchange Act of 1934, or
securities commonly known as 'money market"
instruments, including, but not limited to, commercial
paper, banker's acceptances, certificates of deposit,
repurchase agreements entered into with a bank and
repurchase agreements with entities other than banks,
provided that the term of such agreements may not be in
excess of three business days;
(16)
(4) to invest in shares of common stock or
preferred stock, provided that, as regards common
stock, such stock is registered on a national
securities exchange, and, as regards preferred stock,
the common stock of the corporation issuing or having
issued such preferred stock, is so registered;
(5) to invest in any shares of common stock or
preferred stock, other than those registered on a
national securities exchange, for which quotations are
available through publications of The National
Quotation Bureau, Inc. or any comparable service, or
through a national securities market.
The Registrant's authority to invest in the shares of
common or preferred stock described in paragraph (5) above is
limited by its Charter to 10% of the Registrant's total assets.
Furthermore, the Registrant's Charter provides that no
more than 5% of the Registrant's assets may be invested in the
securities of any one issuer except for: (i) direct obligations
of the United States; (ii) obligations unconditionally guaranteed
by the United States; (iii) obligations of, or instruments issued
by and fully guaranteed by, the Federal National mortgage
Association; (iv) debentures, bonds or other obligations issued
by a Federal Home Loan Bank or consolidated Federal Home Loan
Bank debentures or bonds issued by the Federal Home Loan Bank
Board under the Federal Home Loan Bank Act; (v) debentures issued
by the central bank for co-operatives, or consolidated debentures
issued by said central bank and the 12 regional banks for co-
operatives under the Farm Credit Act of 1933 or any successors
thereto; (vi) collateral trust debentures or other similar
obligations issued by any federal intermediate credit bank or
consolidated debentures or other similar obligations issued by
the 12 federal intermediate credit banks under the Federal Farm
Loan Act; (vii) farm loan bonds issued by any federal loan bank
under the Federal Farm Loan Act; and (viii) promissory notes
representing domestic farm labor housing loans authorized by
Section 514 of the Federal Housing Act of 1949, as amended by the
Federal Housing Act of 1961.
The Liquidity Fund may invest more than 25% of its
assets in the banking industry through Certificates of Deposits
and Federal Funds sold in the ordinary course of its business.
(b) (1) The Registrant does not have any authority to
issue any securities, including senior securities, other than the
shares of beneficial interest which will be sold to eligible
investors pursuant to the Registrant's Charter.
(17)
(2) The Registrant has no power under its
Charter or otherwise to engage in short sales, purchases on
margin, or the writing of put or call options.
(3) The Registrant may borrow money under its
Charter, provided that the term of such borrowings may not be in
excess of three business days. This authority is designed to
meet short-term liquidity needs of the Registrant which might
otherwise require liquidation of portfolio assets. Any such
borrowings, including reverse repurchase agreements, would be
limited to borrowings allowable under Section 18 of the 1940 Act
and applicable regulations promulgated thereunder.
(4) The Registrant has no power under its
Charter to underwrite securities of other issuers, or to acquire
securities that must be registered under the Securities Act of
1933 before they may be offered or sold to the public.
(5) As described in Item 4 of Part A of the
Registration Statement of which this Statement of Additional
Information is a part, the investment policy for the Registrant's
operation of the Funds is to maintain investments principally in
assets which are eligible for inclusion in the reserve account
which must be maintained by Massachusetts co-operative banks
under Section 22 of Chapter 170 of the Massachusetts General
Laws.
(6) As indicated above under Item 13(a)(1)
"Investment Objectives and Policies," the Registrant's Charter
allows the Registrant to make and acquire certain real estate
mortgage loans. The Registrant does not currently intend to
exercise such power.
(7) The Registrant has no power under its
Charter to engage in the purchase or sale of commodities or
commodity contracts.
(8) Other than the securities which are of the
nature excepted from Item 13(b)(8) of Form N-lA, the Registrant
does not make loans to other persons, except that the Registrant
may make short-term loans of portfolio securities to
broker/dealers collateralized by securities received from such
broker/dealers of like quality and value of which the Registrant
will take possession.
(9) Fundamental investment policies and
restrictions of the Registrant for Fund one and Liquidity Fund,
followed in connection with the Registrant's operations, are
described under Item 4(a) of Part A of the Registration Statement
of which this Statement of Additional Information is a part. The
Registrant does not treat any other policy as a matter of
"fundamental policy" pursuant to Section 8(b)(3) of the 1940 Act.
(18)
(c) The Registrant does not have any significant
investment policies other than as described above and in Item 4
of Part A of the Registration Statement of which this Statement
of Additional Information is a part.
(d) The portfolio turnover ratio of Fund One for the
year ended December 31, 1995 was 84.5%. Portfolio purchase and
sale activity was higher in 1995 than in 1994. This activity
resulted primarily from the combination of (1) normal maturities
and reinvestment activity, (2) normal response to share
investment and redemption activity through the year, and (3)
managements first quarter restructuring of the portfolio to take
advantage of the changing market conditions for the remainder of
the year. The portfolio turnover ratio of Fund One for the year
ended December 31, 1994 was 43.3%. Portfolio purchase and sale
activity was higher in 1994 than in 1993. This activity
responded to net changes in share account activity together with
normal portfolio maturities and reinvestment transactions.
Item 14. Management of the Fund
(a)
(1) (2) (3)
Position(s)
Name Held with Principal Occupation(s)
and Address Registrant during past 5 years
James L. Burns, Jr. President and President and Chief
75 Park Plaza Chief Execu- Executive Officer of the
Boston, MA 02116-3934 tive officer Registrant and President
(since November 1991) and
Executive Vice President
(from February 1973 to
October 1991) of The
Co-operative Central
Bank, Boston,
Massachusetts
William F. Casey, Jr. Executive Executive Vice President
75 Park Plaza Vice President of the Registrant and
Boston, MA 02116-3934 Executive Vice President
(since November 1991),
Financial vice President
(from May 1980 to October
1991) and Treasurer of
The Co-operative Central
Bank, Boston,
Massachusetts
(19)
(a) (Cont'd)
(1) (2) (3)
Position(s)
Name Held with Principal Occupation(s)
and Address Registrant during past 5 years
Susan L. Ellis Vice President Vice President of
75 Park Plaza and Treasurer The Co-operative Central
Boston, MA 02116-3934 Bank, Boston,
Massachusetts, and
Vice President of the
Registrant, and (since
March 1990) Treasurer
of the Registrant
Jeremiah J. Foley Vice President Vice President of the
75 Park Plaza and Clerk of Registrant and Vice
Boston, MA 02116-3934 the Corpora- President, and (since
tion October 1990) Clerk of
The Co-operative Central
Bank, Boston,
Massachusetts
Robert E. Haley Vice President Vice President of the
75 Park Plaza Registrant since August
Boston, MA 02116-3934 1990
Annemarie Lee Vice President Vice President (since
75 Park Plaza December 1993) and
Boston, MA 02116-3934 Assistant President of
the Registrant,
(1987-1993), and employed
in various capacities
since 1979 with The
Co-operative Central
Bank, Boston,
Massachusetts
Claire R. Bothwell Director President and Chairman of
P.O. Box 849 the Board of the Ware
Ware, MA 01082 Co-operative Bank, Ware,
Massachusetts
(20)
(a) (Cont'd)
(1) (2) (3)
Position(s)
Name Held with Principal Occupation(s)
and Address Registrant during past 5 years
John T. Day Director and Chairman of the Board
430 W. Broadway Chairman of of Mount Washington
S. Boston, MA 02127 the Board Co-operative Bank,
S. Boston, Massachusetts
Robert F. Day Director President of The Needham
1063 Great Plain Ave. Co-operative Bank, Need-
Needham, MA 02192 ham, Massachusetts
Charles P. Hooker Director Chairman of the Board of
70 South Street Pittsfield Co-operative
Pittsfield, MA 01202 Bank,
Pittsfield, Massachusetts
Frederic D. Legate Director President of The Sandwich
100 Old King's Highway Co-operative Bank,
Sandwich, MA 02563 Sandwich, Massachusetts
Walter A. Murphy Director and Chairman of the Board of
P.O. Box 557 Clerk of the Falmouth Co-Operative
Falmouth, MA 02541 Board Bank,
Falmouth, Massachusetts
Charles G. Peterson Director Member of the Board of The
1010 Washington St. Braintree Co-operative
S. Braintree, MA 02184 Bank, S. Braintree,
Massachusetts
(b) Not applicable.
(c) The following table sets forth, for each of the
three highest paid officers and directors of the Registrant whose
total direct or indirect remuneration from the Registrant
exceeded $60,000 and for all directors and officers of the
Registrant as a group, all direct and indirect remuneration paid
or accrued by the Registrant for services in all capacities
during the year ended December 31, 1995.
(21)
(1) (2) (3) (4)
Name of Person, Aggregate Pension or Estimated
Position Compensation Retirement Annual
From Registrant Benefits Accrued Benefits
(1) As Part of Upon(2)
Fund Expenses Retirement
_________________________________________________________________
Claire R. Bothwell
Director $ 1,500 0 0
John T. Day
Director and Chairman
of the Board 1,500 0 0
Robert F. Day
Director 1,500 0 0
Charles P. Hooker
Director 1,000* 0 0
Frederic D. Legate
Director 400 0 0
Walter A. Murphy
Director and Clerk of
the Board 2,100 0 0
Charles G. Peterson
Director 2,100 0 0
James L. Burns, Jr.
President and Chief
Executive Officer 71,961 3,113 98,629
William F. Casey, Jr.
Executive Vice President 44,572 3,068 97,045
Susan L. Ellis
Vice President 50,667 5,067 115,342
Robert E. Haley
Vice President 82,328 8,167 63,061
Officers and $365,294 $23,981 $558,533
Directors
as a Group
(thirteen
persons
including
the above)
(22)
- - ----------------------
(1) Includes Directors fees; does not include health and
hospitalization insurance benefits provided to all salaried
employees of the Registrant pursuant to plans which do not
discriminate in favor of officers and directors; Does not
include remuneration paid by the Co-operative Central Bank
for services provided to such Bank.
(2) Includes all estimated benefits accrued with respect to
the Co-operative Banks Employees' Retirement Association (the
retirement association for the Central Bank, the Registrant,
Massachusetts co-operative banks, and certain other
institutions), whether attributable to the Central Bank or
the Registrant.
* Of the above figure $1,000 is deferred compensation.
Item 15. Control Persons and Principal Holders of Securities
(a) No person is in a control relationship with the
Registrant.
(b) As of February 29, 1996 the following three (3)
investors of Fund One and one (1) investor of Liquidity Fund
owned of record 5% or more of the shares of beneficial interest.
The shares of beneficial interest do not provide the holders of
such shares with any voting rights.
% of ownership,
both beneficially
Holder and of record
Fund One
The Co-operative Central Bank 11.99%
Boston, Massachusetts
Needham Co-operative Bank
Needham, Massachusetts 7.67%
Pittsfield Co-operative Bank
Pittsfield, Massachusetts 6.34%
Liquidity Fund
MassBank for Savings
Melrose, Massachusetts 8.67%
(23)
(c) The directors and officers of the Registrant are
not eligible to hold the equity securities of the Registrant; the
Registrant's Charter limits its eligible shareholders to certain
Massachusetts banks and certain other institutions. The
directors are also directors and/or officers of co-operative
banks which own beneficial interests in shares of the Funds.
Item 16. Investment Advisory and Other Services
(a)-(b) The Registrant does not currently utilize the
services of an investment advisor. Investment decisions for the
Registrant are made by authorized officers of the Registrant,
subject to authority delegated by the Registrant's Board
of Directors. The Registrant reserves the right to appoint an
investment advisor at any reasonable and customary fee as may be
agreed when, in the opinion of the Registrant's Board of
Directors, the use of such services would improve the Funds'
performance.
(c)-(d) See Item 5(e) of Part A of the Registration
Statement of which this Statement of Additional Information is
apart for a discussion of the Registrant's reimbursement
arrangement with the Central Bank in connection with operating
expenses paid by the Central Bank on behalf of the Registrant.
(e) No person other than a director, officer or
employee of the Registrant furnishes advice to the Registrant
with respect to investments.
(f) See Item 7(f) of Part A of the Registration
Statement of which this Statement of Additional Information is a
part for a discussion of the Plan adopted by the Registrant
pursuant to which it will incur expenses related to the
distribution of each class of Shares. The expenditures to be
made pursuant to the Plan may not exceed an amount calculated at
the rate of .12% per annum of the average daily net assets of
each of the Funds with respect to direct expenses and of both of
the Funds with respect to indirect expenses.
(i) The Registrant spent $194,764 ($141,061
Fund One and $53,703 Liquidity Fund) in the
year ended December 31, 1995 for the following
activities indicated under the Plan:
(A) $263 and $130 for advertising in trade
journals and similar publications for Fund
One and Liquidity Fund which the Registrant
determines are likely to be read by
representatives of eligible investors;
(24)
(B) $9,361 and $9,876 for printing and
mailing the offering materials for Fund
One and Liquidity Fund to eligible
investors which are not currently owners
of shares of such Funds;
(C, D and F) No amounts were sp ent for the
activities described in Item 16(f)(i) (C, D
and F) of the instructions to Form N-lA; and
(E) $67,454 and $33,223 for compensation,
payroll taxes and benefits to officer
responsible for sales and customer service;
(G-1) $14,610 and $7,196 for sponsorship of
annual subscriptions on behalf of
participating investors to IDC Financial
Publishing, Inc.;
(G-2) $19,118 and $9,416 for other
promotional material;
(G-3) $7,206 and $3,549 for sponsorship of
and/or attendance at conferences and
conventions of banking and other groups
including eligible investors as members or
participants; and
(G-4) $23,049 and ($9,687) for other related
expenses (telephone, travel, etc.).
(ii) No interested person of the Registrant or
director of the Registrant who is not an
interested person of the Registrant has or will
have any direct or indirect financial
interest in the operation of the Plan, except
that compensation, payroll taxes and other
benefits to an officer responsible for sales
and customer service are deemed by the
Registrant to be expenses related to the
distribution of the Registrant's shares and
counted toward the limits of the Plan.
(iii) The Registrant is required by applicable
state statute to distribute offering materials
and periodic reports to all entities which are
eligible investors of the Funds. The
Registrant believes that the investors in the
Funds will benefit from expenditures made to
ensure that the Funds are operated in
accordance with applicable state law and from
the spread of the Funds, operating expenses
(25)
over a large pool of Fund assets resulting from
increased subscriptions to the Funds.
(g) The portfolio securities of the Registrant are held
by a commercial bank pursuant to a custodian agreement.
(h) The Registrant's custodian is State Street Bank and
Trust Company, 225 Franklin Street, Boston, Massachusetts 02110.
This custodian holds the securities owned by the Registrant and
any money delivered by the Registrant's shareholders or due to
the Registrant.
The Registrant's independent public accountant is
Parent, McLaughlin & Nangle, Certified Public Accountants, Inc.,
176 Federal Street, Boston, Massachusetts 02110. This firm
functions as the Registrant's auditors in the preparation of
annual financial statements required by federal and state law,
and provides general accounting services to the Registrant.
(i) Not applicable.
Item 17. Brokerage Allocation
(a) Transactions in portfolio securities are effected,
by or through broker/dealers chosen by the Registrant.
Securities are received, delivered or exchanged by the
Registrant's custodian bank in connection with such transactions
upon written instructions received from such brokers or
representatives of the Registrant. The Registrant has to date
purchased and sold securities at prices reflecting abroker/dealer
markup and for which no separate commission has been paid.
Information regarding the amount of broker/dealer markups are not
provided by broker/ dealers and it is not possible to calculate
the aggregate amount of such markups; however, the Registrant
monitors securities prices available from a number of
broker/dealers to ensure that competitive prices for securities
purchases are obtained.
(b) Not applicable.
(c) The Registrant selects broker/dealers on the basis
of prior experience of the Registrant's management with various
broker/dealers and monitors the reliability and quality of their
services to ensure that services rendered are comparable, and
that securities prices paid and commissions paid, if any, are
competitive, with those of other qualified broker/dealers.
(d) Not applicable.
(e) Not applicable.
(26)
Item 18. Capital Stock and Other Securities
(a) (i) Section 3 of the Registrant's Charter provides
that the Registrant will have no capital stock;
beneficial ownership of the Registrant is represented
by shares of beneficial interest without par value
divided into Fund One Class shares and Liquidity Fund
Class shares. Such shares are referred to as the
Registrant's shares.
(ii) (A) The declaration of dividends is in the
discretion of the Registrant's Board of Directors,
subject to certain limitations specified in the
Registrant's Charter.
(B) For the reasons stated in the response to Item
6, "Capital Stock and other Surplus," of Part A of the
Registration Statement of which this Statement of
Additional Information is a part, there are no
securities of the Registrant having voting rights.
(C) All shares of each class of the Registrant's
shares have equal rights upon any liquidation to the
assets of the Fund for which such class of shares was
issued.
(D) Holders of the Registrant's shares do not have
pre-emptive rights.
(E) Holders of the Registrant's shares do not have
any conversion rights.
(F) See Item 8, "Redemption or Repurchase," of Part
A of the Registration Statement of which this Statement
of Additional Information is a part for a discussion of
the redemption provisions applicable to the
Registrant's shares.
(G) There are no sinking fund provisions applicable
to the Registrant's shares.
(H) Holders of the Registrant's shares have no
liability to further calls or to assessments by the
Registrant.
(b) Not applicable.
(28)
Item 19. Purchase, Redemption and Pricing of Securities Being
Offered
(a) See Item 7(b) of Part A of the Registration
Statement of which this Statement of Additional Information is a
part as to the manner in which the Registrant's shares are
offered to eligible investors.
(b) The Registrant's shares are offered and sold
pursuant to a private offering to eligible investors. The
offering price of the shares of each Fund's class is the net
asset value per share of that Fund's shares as of the date of
purchase of such shares. The net asset value per share for each
class of the Registrant's shares is determinedby the Registrant
as of the close of trading on the New York Stock Exchange
(currently 4:00 p.m. New York time) on days when the Registrant's
custodian bank is open for business. The net asset value
per share for each Fund is computed by taking the value of all
assets of the applicable Fund, subtracting its liabilities, and
dividing by the number of shares of such Fund's class
outstanding.
With respect to Fund One, investments in United States
government and Federal agency debt securities held by the
Registrant are normally valued on the basis of valuations
provided by market makers. Such prices are believed to reflect
the fair value of such securities and take into account
appropriate factors such asinstitutional size, trading in similar
groups of securities, yield quality, coupon rate, maturity, type
of issue, and other market data.
The Liquidity Fund's investment securities are
valued based on their amortized cost without taking into account
unrealized appreciation or depreciation. This method of
valuation involves valuing an instrument at its cost and
thereafter assuming a constant amortization to maturity of any
discount or premium, regardless of the impact of fluctuating
interest rates on the market value of the instrument. While this
method provides certainty in valuation, it may result in periods
during which value, as determined by amortized cost, is higher or
lower than the price the Liquidity Fund would receive if it sold
the instrument.
The valuation of portfolio instruments based upon their
amortized cost and the concomitant maintenance of the Liquidity
Fund's per share net asset value of $1,000 is permitted
inaccordance with Rule 2a-7 of the 1940 Act, subject to the
adherence by the Liquidity Fund to certain conditions. The
Liquidity Fund must (i) maintain a dollar-weighted average
maturity of 90 days or less, (ii) purchase only instruments
(29)
having remaining maturities of one year or less, and (iii) invest
only in securities determined by the Registrant's Board
of Directors to present minimal credit risks and which are of
high quality as determined by a major rating service, or, in the
case of any instrument which is not rated, which are of
comparable quality as determined by the Registrant's Board of
Directors. The Board of Directors has established procedures
designed to stabilize the Liquidity Fund's net asset value per
share at $1,000. Such procedures will include review of the
Liquidity Fund's investments by the Board of Directors, at such
intervals as they may deem appropriate, to determine whether the
Liquidity Fund's net asset value calculated by using available
market quotations deviates from $1,000 per share and, if so,
whether such deviation may result in material dilution or is
otherwise unfair to existing shareholders. In the event the
Board of Directors determines that such a deviation exists, it
will take such corrective action as it regards as necessary and
appropriate, including (I) the sale of portfolio instruments
prior to maturity to realize capital gains or losses or to
shorten average portfolio maturity, (ii) withholding dividends,
or (iii) establishing a net asset value per share by using
available market quotations.
The information requested in Instructions 2 and 4 of
Item 19 are not applicable to either of the Registrant's Funds
and the information requested in Instruction 6 of Item 19 is not
applicable to Fund One. A specimen price make up sheet, as
requested by Instruction 5, is furnished as part of Exhibit 17.
(c) The Registrant has not received an order of
exemption from Section 18(f) of the 1940 Act from the Commission
nor filed a notice of election pursuant to Rule 18f-1.
Item 20. Tax Status
See discussion under Item 6(g) of Part A of the
Registration Statement of which this Statement of Additional
Information is a part.
Item 21. Underwriters
This item is not applicable to the Registrant because
there are no underwriters currently distributing its securities
nor is such a method of distribution contemplated.
(30)
Item 22. Calculations of Yield Quotations
(a) Yield. The yield for the Liquidity Fund for the
seven-day period ended December 31, 1995 was 5.65%. Yield is
calculated based on the 7-day period ending on the date of the
most recent statement of Assets and Liabilities as included
herein, using the formula prescribed by Item 22(a)(i) of Form
N-lA. A schedule of the computation of yield is furnished as
part of Exhibit 16.
(b)(i) Total Return. The total return for Fund One for
the year ended December 31, 1995 was 12.78%. Total return for the
five years ended December 31, 1995 was 6.79%. Total return for
the ten years ended December 31, 1995 was 7.74%.
Fund One's total return for each of the foregoing
periods was computed by finding, through the use of the formula
prescribed by Item 22(b)(i) of Form N-lA, the average annual
compounded rates of return over the period that equates an
assumed $1,000 invested to the value of the investment at the end
of the period. For purposes of computing total return, income
dividends and capital gains distributions paid on shares of Fund
One are assumed to have been reinvested when received. A
schedule of the computation of total return is furnished as
part of Exhibit 16.
(ii) Yield. The yield for Fund One for the thirty-day
period ended December 31, 1995 was 6.51%. Yield is calculated
based on the 30-day period ending on the date of the most recent
statement of Assets and Liabilities as included herein, using
the formula prescribed by Item 22(b)(ii) of Form N-lA. A
schedule of the computation of yield is furnished as part of
Exhibit 16.
Item 23. Financial Statements
Financial Statements of Fund One of the Registrant for
the year ended December 31, 1995 and the report of the
Registrant's independent certified public accountants thereon for
the year ended December 31, 1995 are included herewith.
Financial Statements of the Liquidity Fund of the Registrant for
the year ended December 31, 1995 and the report of the
Registrant's independent certified public accountants thereon for
the year ended December 31, 1995 are also included herewith.
BANK INVESTMENT FUND - FUND ONE
FINANCIAL STATEMENTS
For the year ended December 31, 1995
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
BANK INVESTMENT FUND--FUND ONE
BOSTON, MASSACHUSETTS
We have audited the accompanying statement of assets and
liabilities of Bank Investment Fund--Fund One, including the
portfolio of investments, as of December 31, 1995, and the
related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years then
ended, and the selected per share data and ratios for each of the
ten periods in the period ended December 31, 1995. These
financial statements and per share data and ratios are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and per share
data and ratios based on our audits.
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 custodians. 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 financial
highlights referred to above present fairly, in all material
respects, the financial position of Bank Investment Fund--Fund
One as of December 31, 1995, and the results of its operations
for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial
highlights for each of the ten periods in the period ended
December 31, 1995, in conformity with generally accepted
accounting principles.
Parent McLaughlin & Nangle
Certified Public Accountants
February 6, 1996
(12)
BANK INVESTMENT FUND--FUND ONE
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
ASSETS:
INVESTMENTS IN SECURITIES, at value
(Identified cost $138,852,096) $141,352,750
REPURCHASE AGREEMENTS 3,525,000
INTEREST RECEIVABLE 2,350,982
CASH 59,134
TOTAL ASSETS 147,287,866
LIABILITIES:
DIVIDENDS PAYABLE 534,139
ACCRUED EXPENSES 198,696
TOTAL LIABILITIES 732,835
NET ASSETS: (Equivalent to $996.1987 per share
based on 147,114.2601 shares of beneficial
interest outstanding) $146,555,031
REPRESENTED BY:
Paid-in Capital $161,443,180
Accumulated net losses on investments (17,388,803)
Unrealized appreciation of investments 2,500,654
TOTAL NET ASSETS $146,555,031
See notes to financial statements.
(13)
BANK INVESTMENT FUND--FUND ONE
STATEMENT OF OPERATIONS
Year Ended December 31, 1995
INVESTMENT INCOME:
Interest income, net of interest expense of $161 $9,700,089
EXPENSES:
Compensation, payroll taxes and benefits--officers 182,915
Compensation, payroll taxes and benefits--other 86,078
Distribution expenses 141,061
Occupancy 64,024
Professional fees 32,200
Other expenses 27,952
Equipment and data processing 23,800
Meetings and travel 20,420
Postage and telephone 14,300
Directors' fees 6,800
Insurance expense 6,600
TOTAL EXPENSES 606,150
INVESTMENT INCOME--NET 9,093,939
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments (3,906,419)
Change in net unrealized appreciation
(depreciation) on investment securities 10,741,902
Net realized and unrealized gain (loss) on
investments. 6,835,483
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $15,929,422
See notes to financial statements.
(14)
BANK INVESTMENT FUND--FUND ONE
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Investment income--net $9,093,939 $9,202,810
Net realized gain (loss) on investments (3,906,419) 72,703
Unrealized appreciation (depreciation)
--net 10,741,902 (12,638,293)
Net increase (decrease) in net assets
resulting from operations 15,929,422 (3,362,780)
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (9,093,939) (9,202,810)
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST--NET INCREASE (DECREASE) 10,389,168 (4,871,003)
TOTAL INCREASE (DECREASE) IN NET
ASSETS 17,224,651 (17,436,593)
NET ASSETS:
Beginning of period 129,330,380 146,766,973
End of period $146,555,031 $129,330,380
See notes to financial statements.
(15)
BANK INVESTMENT FUND--FUND ONE
PORTFOLIO OF INVESTMENTS
December 31, 1995
Obligations of Federal Agencies--96.4%
Par Coupon Maturity Date Value
Federal Farm
Credit Banks$ 5,000,000 7.61% 03/13/98 $ 5,035,938
2,500,000 6.40 07/25/00 2,535,156
$ 7,500,000 (Cost $ 7,500,000) $ 7,571,094
Federal Home
Loan Bank $ 2,000,000 7.725% 01/27/97 $ 2,064,375
5,000,000 7.60 03/15/99 5,034,375
3,000,000 7.16 09/01/99 3,060,938
3,000,000 7.88 02/09/00 3,252,188
4,000,000 8.36 02/28/00 4,033,750
5,000,000 8.08 03/06/00 5,040,625
2,500,000 7.72 03/29/00 2,520,312
3,000,000 7.05 04/03/00 3,165,938
2,500,000 7.81 04/05/00 2,521,094
2,000,000 7.695 04/10/00 2,016,875
6,000,000 6.685 06/14/00 6,009,375
1,500,000 7.22 08/07/00 1,504,219
2,000,000 6.774 11/21/00 2,003,750
1,000,000 6.73 11/28/00 1,001,562
2,000,000 6.58 12/04/00 2,007,500
2,000,000 6.155 12/08/00 2,013,125
2,000,000 6.655 12/11/00 2,005,625
1,000,000 6.00 12/14/00 1,000,312
2,000,000 6.24 12/20/00 2,000,625
1,000,000 6.00 12/29/00 1,000,937
$ 52,500,000 (Cost $ 52,502,344)$ 53,257,500
Federal Home
Loan Mortgage
Corporation$ 5,000,000 8.08% 02/09/98 $ 5,031,250
2,000,000 7.42 09/23/99 2,059,375
2,000,000 7.98 01/19/00 2,173,750
2,000,000 7.70 03/13/00 2,086,250
2,500,000 7.855 03/16/00 2,519,531
See notes to financial statements
(16)
BANK INVESTMENT FUND--FUND ONE
PORTFOLIO OF INVESTMENTS
December 31, 1995
Obligations of Federal Agencies--96.4% (continued)
Par Coupon Maturity Date Value
$ 5,000,000 7.46% 03/30/00 $ 5,190,625
2,000,000 7.28 05/08/00 2,071,875
1,000,000 6.32 11/13/00 1,007,500
$ 21,500,000 (Cost $ 21,498,438) $ 22,140,156
Federal National
Mortgage
Association$ 3,000,000 7.37% 02/06/97 $ 3,080,625
2,000,000 7.29 02/14/97 2,051,875
5,000,000 7.85 09/10/98 5,303,125
1,500,000 5.75 12/10/98 1,505,156
3,000,000 8.01 02/16/99 3,018,750
2,000,000 7.46 03/30/00 2,076,250
2,500,000 6.34 07/17/00 2,523,438
1,500,000 7.09 08/01/00 1,506,094
1,000,000 7.00 10/02/00 1,001,875
2,000,000 6.08 12/12/00 2,010,000
1,000,000 6.06 12/22/00 1,002,500
2,000,000 6.00 12/29/00 2,002,500
$ 26,500,000 (Cost $ 26,492,109) $ 27,082,188
Government National
Mortgage
Association$ 735,340 6.50% 11/15/07 $ 742,234
4,257,352 6.50 07/15/08 4,297,264
1,635,267 6.50 10/15/08 1,650,598
2,428,913 6.50 11/15/08 2,451,684
649,306 6.50 12/15/08 655,394
813,261 5.50 12/15/08 788,863
569,480 8.00 02/15/17 593,149
1,102,682 8.00 03/15/17 1,148,512
2,837,854 8.00 11/15/21 2,955,802
3,498,697 7.50 03/15/22 3,599,285
1,490,216 7.50 04/15/22 1,533,059
4,249,698 7.00% 10/15/22 4,300,163
4,303,451 7.00 05/15/23 4,354,555
$ 28,571,517 (Cost $ 28,771,705) $ 29,070,562
See notes to financial statements
(17)
BANK INVESTMENT FUND--FUND ONE
PORTFOLIO OF INVESTMENTS
December 31, 1995
Obligations of Federal Agencies--96.4% (continued)
Par Coupon Maturity Date Value
Student Loan
Marketing
Association$ 2,000,000 7.723% 01/25/99 $ 2,131,250
(Cost $ 1,987,500)
Certificates of Deposit--0.1%
NCB Savings
Association$ 100,000 5.00% 01/17/96 $ 100,000
(Cost $ 100,000)
(Cost $138,852,096) $141,352,750
Repurchase Agreement--2.4%
$3,525,000 Repurchase Agreement dated December 29, 1995 with
PaineWebber, Inc. due January 2, 1996 with respect to $3,510,000
U. S. Treasury Notes 5.125% due February 28, 1998--maturity value
$3,527,174 for an effective yield of 5.55%.
(Cost $ 3,525,000) $ 3,525,000
Total Investments--98.9% (Cost $142,377,096) $144,877,750
Other assets in excess of liabilities--1.1% 1,677,281
Net assets--100% $146,555,031
See notes to financial statements
(18)
BANK INVESTMENT FUND--FUND ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 1. Organization:
The Bank Investment Fund (the "Corporation") was organized
effective April 7, 1985 pursuant to a Special Act of the
Commonwealth of Massachusetts (Acts of 1984, Chapter 482, as
amended,) under its chartered name "Co-operative Bank Investment
Fund" and does business under the name "Bank Investment Fund."
The Corporation is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. The
Corporation invests and manages two mutual investment funds
derived from the voluntary subscriptions made by eligible
investors.
Fund One (the "Fund") is a no-load, diversified, open-end
investment fund. Fund shares are currently offered to the
following eligible investors: Massachusetts Co-operative Banks,
Massachusetts Savings Banks, Massachusetts Trust Companies, The
Co-operative Central Bank Reserve Fund, The Savings Bank Life
Insurance Company of Massachusetts, the National Cooperative
Bank, and directly or indirectly wholly-owned subsidiaries of
such institutions.
Because more than one fund will be operated by the
Corporation, operating expenses related directly to a single fund
operation will be charged directly to that fund. Common or
indirect expenses will be allocated among funds in proportion to
the ratio of the net assets of each fund to total net assets of
the Corporation or on such other basis as the Board of Directors
of the Corporation may determine from time to time to be fair and
equitable.
NOTE 2. Significant Accounting Policies:
Investment security valuation:
U.S. debt securities are normally valued on the basis of
valuations provided by market makers. Such prices are believed to
reflect the fair value of such securities and to take into
account appropriate factors such as institutional size trading in
similar groups of securities, yield quality, coupon rate,
maturity, type of issue, and other market data. Securities for
which market quotations are not readily available will be valued
at fair value using methods determined in good faith by or at the
direction of the Board of Directors.
(19)
NOTE 2. Significant Accounting Policies:(continued)
Accounting for investments:
Security transactions are accounted for on the trade date
(date the order to buy or sell is executed). In computing net
investment income, the Fund does not amortize premiums or accrete
discounts on fixed income securities in the portfolio, except
those original issue discounts for which amortization is required
for federal income tax purposes. Additionally, with respect to
market discount on bonds issued after July 18, 1984, a portion of
any capital gain realized upon disposition may be recharacterized
as taxable ordinary income in accordance with the provisions of
the 1984 Tax Reform Act. Realized gains and losses on security
transactions are determined on the identified cost method.
Repurchase agreements:
It is the policy of the Fund to require the custodian bank
to take possession, to have legally segregated in the Federal
Reserve Book Entry System or to have segregated within the
custodian bank's vault, all securities held as collateral in
support of repurchase agreement investments. Additionally,
procedures have been established by the Fund to monitor, on a
daily basis, the market value of each repurchase agreement's
underlying investments to ensure the existence of a proper level
of collateral.
Federal income taxes:
The Corporation's policy is to comply with the requirements
of the Internal Revenue Code applicable to regulated companies
and to distribute substantially all of its taxable income to its
shareholders. Therefore, no federal income tax provision is
required. The Fund realized a loss of ($3,906,419) during 1995,
which is included in the available capital loss carryforward of
($17,388,803) at December 31, 1995. Such capital loss
carryforward will reduce the Fund's taxable income arising from
future net realized gain on investments, if any, to the extent
permitted by the Internal Revenue Code, and thus will reduce the
amount of the distributions to shareholders which would otherwise
be necessary to relieve the Fund of any liability for federal
income tax. Such capital loss carryforward will expire on
December 31, 1996 ($1,676,581), 1997 ($9,386,241), 1998
($2,419,562) and 2003 ($3,906,419).
(20)
NOTE 2. Significant Accounting Policies:(continued)
Dividends to shareholders:
The Fund distributes all of its net investment income on a
daily basis. Dividends are declared on each day that the Fund is
open for business. Investors receive dividends in additional
shares unless they elect to receive cash. Payment is made in
additional shares at the net asset value on the payable date or
in cash, on a monthly basis. Distributions of otherwise taxable
realized net capital gains, if any, are declared and paid once
each year and are reinvested in additional shares at net asset
value or, at each shareholder's option, paid in cash.
Net asset value:
The net asset value per share is determined daily by adding
the appraised value of all securities and all other assets,
deducting liabilities and dividing by the number of shares
outstanding.
NOTE 3. Security Transactions:
The cost of securities purchased and the proceeds from the
sales of securities, all of which were Obligations of Federal
Agencies, (excluding short-term investments) aggregated
$118,480,390 and $107,929,495, respectively for the year ended
December 31, 1995. As of December 31, 1995 unrealized
appreciation of investments was $2,500,654; accumulated net
realized loss on investment transactions totaled ($17,388,803).
NOTE 4. Distribution Expenses:
On March 12, 1991 the Board of Directors amended (effective
August 13, 1991) a Plan of Distribution (the "Plan") originally
adopted on September 16, 1988 pursuant to rule 12b-1 under the
Investment Company Act of 1940, to use the assets of the Fund to
finance certain activities relating to the distribution of its
shares to investors. The Plan authorizes the Fund to pay for the
cost of preparing, printing, and distributing offering circulars
to prospective investors, for certain other direct or indirect
marketing expenses, direct payments to sales personnel, and for
the cost of implementing and operating the Plan. Plan expenses
may not exceed an amount computed at an annual rate of .12 of 1%
of the Fund's average daily net assets. The Fund paid or accrued
$141,061 (.10% of average net assets) pursuant to this plan for
the year ended December 31, 1995.
(21)
NOTE 5. Pension Plans:
The Fund is a participating employer in the Co-operative
Banks Employees Retirement Association, and has, in effect, a
Defined Contribution Plan covering all eligible officers and
employees. Under the plan, contributions by employees are doubled
by the Fund, up to a maximum of 10% of each employee's salary.
Effective January 1, 1989, the Fund also participates in a
Defined Benefit Plan, which covers all eligible employees, and is
funded currently. The Fund's contributions to these
multi-employer plans for the year ended December 31, 1995 was
$30,583.
NOTE 6. Shares of Beneficial Interest:
Chapter 482 of the Acts of 1984, as amended, of the
Commonwealth of Massachusetts permits the directors to issue an
unlimited number of full and fractional shares of beneficial
interest (no par, non-voting, with a stated value of $1,000 per
share). As of December 31, 1995 capital paid-in aggregated
$161,443,180.
Transactions in shares of beneficial interest are summarized
as follows:
Year ended Year ended
December 31, 1995 December 31, 1994
Shares Amount Shares Amount
Sold 19,533.1768 $19,250,000 28,141.3288 $28,220,981
Issued in
reinvestment of
dividends 3,726.5209 3,656,963 3,508.0541 3,435,433
23,259.6977 22,906,963 31,649.3829 31,656,414
Redeemed 13,039.1631 12,517,795 37,269.2170 36,527,417
Net increase
(decrease) 10,220.5346 $10,389,168 (5,619.8341)($ 4,871,003)
NOTE 7. Transactions With Related Parties:
The Incorporators of the Corporation are the Directors of
The Co-operative Central Bank, which is the statutory reserve
bank and insurer of deposits in excess of Federal deposit
insurance limitations for Massachusetts co-operative banks. The
Board of Directors of the Corporation is elected by the
Incorporators.
The Fund has reimbursed The Co-operative Central Bank for
its proportionate share of expense items used in common by both
the Fund and The Co-operative Central Bank. All fees and expenses
for the Fund are estimated and accrued daily. Actual operating
expenses for the year ended December 31, 1995 were .45% of
average net assets. Operating expenses paid to the Central Bank
for the year ended December 31, 1995 were $35,200.
(22)
BANK INVESTMENT FUND - LIQUIDITY FUND
FINANCIAL STATEMENTS
For the year ended December 31, 1995
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
BANK INVESTMENT FUND--LIQUIDITY FUND
BOSTON, MASSACHUSETTS
We have audited the accompanying statement of assets and
liabilities of Bank Investment Fund--Liquidity Fund, including
the portfolio of investments, as of December 31, 1995, and the
related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years then
ended, and the selected per share data and ratios for each of the
eight periods in the period ended December 31, 1995. These
financial statements and per share data and ratios are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and per share
data and ratios based on our audits.
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 custodians. 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 financial
highlights referred to above present fairly, in all material
respects, the financial position of Bank Investment
Fund--Liquidity Fund as of December 31, 1995, and the results of
its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and
the financial highlights for each of the eight periods in the
period ended December 31, 1995, in conformity with generally
accepted accounting principles.
Parent McLaughlin & Nangle
Certified Public Accountants
February 6, 1996
(12)
BANK INVESTMENT FUND--LIQUIDITY FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
ASSETS:
INVESTMENTS, at cost which approximates value $243,437,803
INTEREST RECEIVABLE 2,056,502
CASH 204,330
TOTAL ASSETS 245,698,635
LIABILITIES:
DIVIDENDS PAYABLE 519,450
OTHER ACCRUED EXPENSES 28,672
TOTAL LIABILITIES 548,122
NET ASSETS: (Equivalent to $1,000 per share based
on 245,150.5139 shares of beneficial
interest outstanding) $245,150,513
REPRESENTED BY:
Paid-in Capital $245,150,513
See notes to financial statements.
(13)
BANK INVESTMENT FUND--LIQUIDITY FUND
STATEMENT OF OPERATIONS
Year Ended December 31, 1995
INVESTMENT INCOME:
Interest income, net of interest expense of $3,409 $11,396,872
EXPENSES:
Compensation, payroll taxes and benefits--officers $86,012
Compensation, payroll taxes and benefits--other 40,476
Distribution expenses 53,703
Occupancy 31,300
Equipment and data processing 11,486
Meetings and travel 11,264
Professional fees 7,796
Printing and postage 4,579
Directors' fees 3,300
Insurance expense 3,189
TOTAL EXPENSES 253,105
INVESTMENT INCOME--NET 11,143,767
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $11,143,767
See notes to financial statements.
(14)
BANK INVESTMENT FUND--LIQUIDITY FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
1995 1994
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS:
Investment income--net $ 11,143,767 $ 6,661,580
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (11,143,767) (6,661,580)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST--NET
INCREASE (DECREASE) 153,527,526 (175,197,525)
TOTAL INCREASE (DECREASE)
IN NET ASSETS 153,527,526 (175,197,525)
NET ASSETS:
Beginning of period 91,622,987 266,820,512
End of period $245,150,513 $ 91,622,987
See notes to financial statements.
(15)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Obligations of Federal Agencies--9.0%
Amortized
Par Coupon Maturity Date Cost
Federal Farm
Credit Bank $ 3,000,000 5.63% 03/01/96 $ 3,000,000
Student Loan
Marketing
Association
- - --Floater 5,000,000 5.25** 03/14/96 5,000,000
Student Loan
Marketing
Association
- - --Floater 14,000,000 5.27** 08/02/99 14,000,000
$ 22,000,000 (Value $ 21,983,200) $ 22,000,000
Certificates of Deposit--3.1%
Avon Coop Bank$ 250,000 5.625% 05/02/96 $ 250,000
Ben Franklin
Savings Bank 300,000 5.60 06/25/96 300,000
Bk of Fall River,
a Coop Bank 500,000 6.00 01/23/96 500,000
Fidelity Coop
Bank 500,000 5.75 01/31/96 500,000
Foxborough Sav
Bank 300,000 5.50 06/03/96 300,000
Foxborough Sav
Bank 200,000 5.75 04/03/96 200,000
Foxborough Sav
Bank 250,000 6.00 01/18/96 250,000
Grove Bank 750,000 6.30 01/25/96 750,000
Haymarket Coop
Bank 1,000,000 6.40 08/03/96 1,000,000
Hyde Park Coop
Bank 250,000 5.75 02/06/96 250,000
Lowell Coop Bank 200,000 5.75 02/08/96 200,000
Mass Coop Bank 500,000 5.75 01/10/96 500,000
Mechanics Coop
Bank 500,000 5.75 06/26/96 500,000
Mt. Washington
Coop Bank 600,000 5.85 01/17/96 600,000
** Rate changes weekly.
See notes to financial statements.
(16)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Certificates of Deposit--3.1% (Continued)
Amortized
Par Coupon Maturity Date Cost
Mt. Washington
Coop Bank $ 300,000 5.85% 01/30/96 $ 300,000
Mt. Washington
Coop Bank 450,000 5.85 01/22/96 450,000
NCB Savings Bank 100,000 5.00 03/06/96 100,000
South Boston
Savings Bank 200,000 5.65 02/20/96 200,000
South Weymouth
Savings Bank 500,000 5.75 02/12/96 500,000
$7,650,000 (Value $ 7,650,000) $7,650,000
Commercial Paper--41.8%
Allomon Funding
Corp. $3,000,000 5.73%* 01/03/96 $2,998,567
Allomon Funding
Corp. 3,000,000 5.73* 01/08/96 2,996,180
Allomon Funding
Corp. 3,000,000 5.73* 01/08/96 2,996,180
Allomon Funding
Corp. 2,000,000 5.75* 01/08/96 1,997,444
American Trading
& Production
Corp. 2,000,000 5.77* 02/06/96 1,988,139
Anchor Funding
Corp. 3,000,000 5.88* 01/12/96 2,994,120
Asset Securitiza-
tion Cooperative
Corp. 3,000,000 5.77* 01/17/96 2,991,826
Banc One Funding
Corp. 3,000,000 5.73* 01/09/96 2,995,703
Barton Capital
Corp. 3,000,000 5.80* 01/16/96 2,992,267
Barton Capital
Corp. 3,000,000 5.75* 01/25/96 2,988,021
English China
Clays PLC 3,500,000 5.72* 01/24/96 3,486,653
* Annualized yield on date of purchase.
See notes to financial statements.
(17)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Commercial Paper--41.8% (continued)
Amortized
Par Coupon Maturity Date Cost
English China
Clays PLC $3,000,000 5.68%* 02/12/96 $2,979,647
Enterprise
Funding Corp. 2,000,000 5.75* 01/16/96 1,994,889
Enterprise
Funding Corp. 3,000,000 5.63* 02/16/96 2,977,949
Fingerhut Owner
Trust 2,000,000 5.77* 01/04/96 1,998,718
Fingerhut Owner
Trust 2,000,000 5.78* 01/10/96 1,996,789
Fingerhut Owner
Trust 2,500,000 5.75* 01/10/96 2,496,007
Fingerhut Owner
Trust 3,000,000 5.75* 02/02/96 2,984,188
Fleet Funding
Inc. 3,000,000 5.70* 01/04/96 2,998,100
Fleet Funding
Inc. 3,000,000 5.75* 01/26/96 2,987,542
Fleet Funding
Inc. 3,000,000 5.75* 01/29/96 2,986,104
Fleetwood Credit
Corp. 2,500,000 5.74* 01/23/96 2,490,832
Franklin
Resources, Inc. 4,750,000 5.75* 01/26/96 4,730,274
Greenwich Asset
Funding Corp. 3,000,000 5.70* 01/03/96 2,998,575
International
Lease Finance
Corp. 2,000,000 5.70* 01/02/96 1,999,367
Plantation Pipe
Line Co. 3,000,000 5.57* 02/22/96 2,975,399
Prime Asset
Vehicle, LTD. 3,000,000 5.72* 01/05/96 2,997,617
Prime Asset
Vehicle, LTD. 3,000,000 5.72* 01/22/96 2,989,513
Prime Asset
Vehicle, LTD. 2,105,000 5.69* 02/14/96 2,090,028
Receivables
Capital Corp. 3,000,000 5.75* 01/31/96 2,985,146
* Annualized yield on date of purchase.
See notes to financial satements.
(18)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Commercial Paper--41.8% (continued)
Amortized
Par Coupon Maturity Date Cost
Sigma Finance,
Inc. $ 3,000,000 5.75%* 01/05/96 $ 2,997,604
Smith Barney
Inc. 3,000,000 5.75* 01/19/96 2,990,896
Southland Corp. 3,000,000 5.80* 01/02/96 2,999,033
Southland Corp. 3,000,000 5.75* 01/02/96 2,999,042
Three Rivers
Funding Corp. 4,000,000 5.73* 02/02/96 3,978,990
Triple A One
Funding Corp. 2,500,000 5.75* 01/12/96 2,495,208
$102,855,000 (Value $102,509,777) $102,542,557
Short-Term Corporate Bonds and Notes--32.4%
American General
Corp. $ 1,000,000 5.10% 02/26/96 $ 998,986
Asssociates
Corp. of N.A. 3,295,000 8.75 02/01/96 3,303,142
Asssociates
Corp. of N.A. 1,000,000 4.50 02/15/96 998,059
Asssociates
Corp. of N.A. 2,100,000 4.75 08/01/96 2,087,641
AT & T Corp. 2,775,000 4.50 02/15/96 2,771,328
AT & T Corp. 2,000,000 6.30 07/25/96 2,006,714
AVCO Financial
Corp. 1,000,000 8.85 02/01/96 1,002,629
Beneficial
Finance Corp. 1,000,000 8.70 08/15/96 1,017,814
BP America
Corp. 1,000,000 10.15 03/15/96 1,008,057
Carolina Power
& Light Co. 2,000,000 7.90 12/27/96 2,044,566
* Annualized yield on date of purchase.
See notes to financial statements.
(19)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Short-Term Corporate Bonds and Notes--32.4% (continued)
Amortized
Par Coupon Maturity Date Cost
Dean Witter
& Co. $ 3,000,000 6.92% 09/30/96 $ 3,026,607
Dean Witter
Discover & Co. 6,000,000 5.13** 09/29/97 6,000,000
Exxon Capital
Corp. 2,300,000 7.875 04/15/96 2,313,277
Exxon Capital
Corp. 1,500,000 7.75 02/14/96 1,502,558
Ford Motor
Corp. 1,040,000 8.90 04/08/96 1,049,046
Ford Motor
Corp. 2,500,000 8.25 05/15/96 2,522,577
Ford Motor
Corp. 1,000,000 8.875 08/01/96 1,018,827
Ford Motor
Corp. 500,000 8.00 10/01/96 507,822
G.E. Capital
Corp. 2,000,000 6.55 03/25/96 2,002,422
G.E. Capital
Corp. 1,400,000 7.875 05/01/96 1,410,067
GMAC Corp. 1,000,000 8.80 07/08/96 1,015,953
GMAC Corp. 2,000,000 8.625 07/15/96 2,031,520
GMAC Corp. 4,500,000 8.25 08/01/96 4,568,315
GMAC Corp. 1,500,000 7.80 11/07/96 1,525,477
Hanson
Inter-
national Corp. 2,535,000 5.50 01/15/96 2,534,287
Household
Finance Corp. 1,500,000 7.80 11/01/96 1,524,410
International
Lease Finance
Corp. 2,700,000 4.75 07/15/96 2,685,210
International
Lease Finance
Corp. 800,000 6.25 08/15/96 801,880
John Hancock
Corp. 500,000 8.54 03/07/96 502,524
Merrill Lynch
& Co., Inc. 5,165,000 4.75 06/24/96 5,139,832
** Rate changes daily.
See notes to financial statements.
(20)
BANK INVESTMENT FUND--LIQUIDITY FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
Short-Term Corporate Bonds and Notes--32.4% (continued)
Amortized
Par Coupon Maturity Date Cost
Pacific Dunlop
LTD $ 700,000 4.85% 05/13/96 $ 697,045
Pepsico Inc. 1,400,000 7.875 08/15/96 1,417,333
Phillip Morris
Co. Inc. 3,500,000 8.875 07/01/96 3,553,464
Province of
Ontario 2,859,000 8.25 04/08/96 2,877,253
U.S. Leasing
Capital Corp. 3,000,000 9.40 03/07/96 3,019,882
U.S. West
Capital Corp. 2,000,000 8.00 10/15/96 2,033,282
Wal Mart
Stores, Inc. 1,750,000 8.00 05/01/96 1,762,240
Waste
Management,
Inc. 1,100,000 7.875 08/15/96 1,114,562
Xerox Corp. 2,000,000 15.00 01/11/96 2,005,241
$78,919,000 (Value $ 79,483,310) $79,401,849
Federal Funds Sold--13.0%
Amortized
Par Coupon Maturity Date Cost
BayBank, N.A. $11,460,000 5.625% 01/02/96 $11,460,000
Fleet Bank,
N.A. 10,195,000 5.6875 01/02/96 10,195,000
U.S. Trust Co. 10,188,397 5.625 01/02/96 10,188,397
$31,843,397 (Value $ 31,843,397) $31,843,397
Total Investments--99.3% (Value $243,469,684) $243,437,803
Other assets in excess of liabilities--0.7% 1,712,710
Net assets--100% $245,150,513
See notes to financial statements.
(21)
BANK INVESTMENT FUND--LIQUIDITY FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1. Organization:
The Bank Investment Fund (the "Corporation") was organized
effective April 7, 1985 pursuant to a Special Act of the
Commonwealth of Massachusetts (Acts of 1984, Chapter 482, as
amended,) under the chartered name "Co-operative Bank Investment
Fund" and does business under the name "Bank Investment Fund."
The Corporation is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. The
Corporation invests and manages two mutual funds derived from the
voluntary subscriptions made by eligible banks.
Liquidity Fund (the "Fund") is a no-load, diversified,
open-end money market fund, which commenced operations on October
12, 1988. Fund shares are currently offered to the following
eligible investors: Massachusetts Co-operative Banks,
Massachusetts Savings Banks, Massachusetts Trust Companies, The
Co-operative Central Bank Reserve Fund, The Savings Bank Life
Insurance Company of Massachusetts and the National Cooperative
Bank.
Because more than one fund will be operated by the
Corporation, operating expenses related directly to a single fund
operation will be charged directly to that fund. Common or
indirect expenses will be allocated among funds in proportion to
the ratio of the net assets of each fund to total net assets of
the Corporation or on such other basis as the Board of Directors
of the Corporation may determine from time to time to be fair and
equitable.
NOTE 2. Significant Accounting Policies:
Accounting for investments:
Security transactions are accounted for on the trade date
(date the order to buy or sell is executed). The Fund's
investment securities are carried at their amortized cost, which
does not take into account unrealized appreciation or
depreciation. Interest income is accrued on all debt securities
on a daily basis and includes accretion of original issue
discount.
(22)
BANK INVESTMENT FUND--LIQUIDITY FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 2. Significant Accounting Policies (continued):
Repurchase agreements:
It is the policy of the Fund to require the custodian bank
to take possession, to have legally segregated in the Federal
Reserve Book Entry System or to have segregated within the
custodian bank's vault, all securities held as collateral in
support of repurchase agreement investments. Additionally,
procedures have been established by the Fund to monitor, on a
daily basis, the market value of each repurchase agreement's
underlying investments to ensure the existence of a proper level
of collateral.
Federal income taxes:
The Corporation'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 taxable
income to its shareholders. Therefore, no federal income tax
provision is required.
Dividends to shareholders:
The Fund distributes all of its net investment income on a
daily basis. Dividends are declared on each day that the Fund is
open for business. Investors receive dividends in additional
shares unless they elect to receive cash. Payment is made in
additional shares at the net asset value on the payable date or
in cash, on a monthly basis. Distributions of realized net
capital gains, if any, are declared and paid once each year and
are reinvested in additional shares at net asset value or, at
each shareholder's option, paid in cash.
Net asset value:
The net asset value per share is determined daily by
dividing the value of all investment securities and all other
assets, less liabilities, by the number of shares outstanding.
The Fund has established procedures reasonably designed to
stabilize the net asset value per share at $1,000.
(23)
BANK INVESTMENT FUND--LIQUIDITY FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 3. Shares Of Beneficial Interest:
Chapter 482 of the Acts of 1984, as amended by Chapter 244,
Acts of 1986, of the Commonwealth of Massachusetts permits the
directors to issue an unlimited number of full and fractional
shares of beneficial interest (no par, non-voting, with a stated
value of $1,000 per share).
Transactions in shares of beneficial interest are summarized
as follows:
Year Ended Year Ended
December 31, 1995 December 31, 1994
Shares Amount Shares Amount
Sold 758,881.9784 $758,881,978 427,182.4528 $427,182,453
Issued
in rein-
vestment
of
dividends 6,573.7210 6,573,721 3,989.0830 3,989,082
765,455.6994 765,455,699 431,171.5358 431,171,535
Redeemed 611,928.1734 611,928,173 606,369.0501 606,369,060
Net
increase
(decrease)153,527.5260 $153,527,526 (175,197.5143)($175,197,525)
NOTE 4. Distribution Expenses:
On March 12, 1991 the Board of Directors amended (effective
August 13, 1991) a Plan of Distribution (the "Plan") originally
adopted on September 16, 1988 pursuant to rule 12b-1 under the
Investment Company Act of 1940, to use the assets of the Fund to
finance certain activities relating to the distribution of its
shares to investors. The Plan authorizes the Fund to pay for the
cost of preparing, printing, and distributing offering circulars
to prospective investors, direct payments to sales personnel, for
certain other direct or indirect marketing expenses, and for the
cost of implementing and operating the Plan. Plan expenses may
not exceed an amount computed at an annual rate of .12 of 1% of
the Fund's average daily net assets. The Fund paid or accrued
$53,703 (.03% of average net assets) pursuant to this Plan for
the year ended December 31, 1995.
(23A)
BANK INVESTMENT FUND--LIQUIDITY FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 5. Pension Plans:
The Fund is a participating employer in the Co-operative
Banks Employees Retirement Association, and has, in effect, a
Defined Contribution Plan covering all eligible officers and
employees. Under the Plan, contributions by employees are doubled
by the Fund, up to a maximum of 10% of each employee's salary.
Effective January 1, 1989, the Fund also participates in a
Defined Benefit Plan, which covers all eligible employees, and is
funded currently. The Fund's contributions to these
multi-employer plans for the year ended December 31, 1995 were
$15,064.
NOTE 6. Transactions With Related Parties:
The Incorporators of the Corporation are the Directors of
The Co-operative Central Bank, which is the statutory reserve
bank and insurer of deposits in excess of Federal deposit
insurance limitations for Massachusetts co-operative banks. The
Board of Directors of the Corporation is elected by the
Incorporators.
The Fund reimburses The Co-operative Central Bank and/or the
Bank Investment Fund--Fund One for its proportionate share of
expense items used in common. All fees and expenses for the Fund
are estimated and accrued daily. Annual operating expenses were
.13% for the year ended December 31, 1995. As reimbursement of
allocated expenses, the Fund paid or accrued $31,000 to the Bank
Investment Fund--Fund One, for the year ended December 31, 1995.
(23B)
PART C
OTHER INFORMATION NOT REQUIRED
IN PROSPECTUS
Item 24. Financial Statements and Exhibits
(a) Financial Statements of Fund One of the Registrant
for the year ended December 31, 1995 and the report of the
Registrant's independent certified public accountants for the
year ended December 31, 1995 are included in Part B above.
Financial Statements of the Liquidity Fund of the Registrant for
the year ended December 31, 1995 and the report ofthe
Registrant's independent certified public accountants thereon for
the year ended December 31, 1995 are also included in Part B
above.
(b) Exhibits:
1. Copy of the Registrant's charter, being
Chapter 482 of the Acts of 1984 of the
Commonwealth of Massachusetts, as amended by
Chapter 244 of the Acts of 1986 of the
Commonwealth of Massachusetts and Chapters
277 and 285 of the Acts of 1990 and 1991,
respectively, of the Commonwealth of
Massachusetts (filed as Exhibit 1 to
Amendment 11 of the Registrant's Registration
statement on Form N-lA, dated March 30, 1992,
and incorporated herein by reference) and as
further amended by Chapter 147 of the Acts of
1993 of the Commonwealth (filed as Exhibit 1
to Amendment 13 of the Registrant's
Registration Statement on Form N-lA, dated
March 25, 1994, and incorporated herein as
reference).
2. Copy of the By-Laws of the Registrant as
amended and restated as of March 25, 1993
(filed as Exhibit 2 to Amendment 13 of the
Registrant's Registration Statement on Form
N-lA, dated March 25, 1994, and incorporated
herein by reference).
3. None.
4. None.
5. None
(2)
6. None
7. Copy of Defined Contribution Plan and
Defined Benefit Plan. (Filed as Exhibit
7 to Amendment 11 of the Registrant's
Registration statement on Form N-1A,
dated March 30, 1992, and incorporated
herein by reference.
8. Copy of the safekeeping agreements
between he Registrant and the State
Street Bank and Trust Company dated May
14, 1990. (Filed as Exhibit 8 to
Amendment 13 of the Registrant's
Registration statement on Form N-1A,
dated March 25, 1994, and incorporated
herein by reference.)
9. None.
10. Not applicable.
11. Not applicable.
12. Not applicable.
13. None.
14. None.
15. Plan of Distribution Pursuant to Rule 12b-1.
(Filed as Exhibit 15 to Amendment 11 of the
Registrant's Registration statement on Form N-1A,
dated March 30, 1992, and incorporated herein by
reference.)
16. Computation of performance quotations
provided in Item 22.
17. Independent Auditor's Consent
18. None.
19. Specimen price make up sheet required by
Instruction 5 of Item 19(b).
(3)
Item 25. Persons Controlled by or Under Common Control with
Registrant
Not applicable.
Item 26. Number of Holders of Securities
Number of Record Holders
Title of Class as of February 29, 1996
Fund One Class 67
Liquidity Fund Class 133
Item 27. Indemnification
Section 1 of Article XII of the Registrant's By-Laws
provides that the Registrant shall indemnify each officer and
director of the corporation against all expenses incurred by
such officer or director in connection with any proceeding in
which he or she is involved as a result of (a) serving or having
served as an officer or director of the corporation; (b) serving
or having served as a director, officer or employee of any
wholly-owned subsidiary, or (c) serving or having served any
other corporation, organization, partnership, joint venture,
trust or other entity at the request or direction of the
corporation.
No indemnification shall be provided to an officer or
director with respect to a matter as to which such person
shall not have acted in good faith and with the reasonable
belief that his or her action was in the best interest of the
corporation. The registrant may purchase and maintain insurance
to protect itself and any officer or director against liability
of any character asserted against and incurred by the Registrant
or any such officer or director, or arising out of any
such status, whether or not the Registrant would have the power
to indemnify such person against such liability by law or under
the provisions of the By-laws, except such person shall not be
insured in the event of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in
the conduct of such person's office.
Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to
provisions described above, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange
(4)
Commission such indemnification is against public policy as
expressed in said Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 28. Business and Other Connection of Investment Advisor
Not applicable, as the Registrant does not currently
contemplate the utilization of the services of an investment
advisor.
Item 29. Principal Underwriters
Not applicable, as the Registrant does not use an
underwriter in connection with the distribution of its
securities.
Item 30. Location of Accounts and Records
The accounts, books, and other documents of the
Registrant are physically maintained at the principal offices of
the Registrant at 75 Park Plaza, Boston, Massachusetts
02116-3934.
Item 31. Management Services
There are no management-related service contracts under
which services are provided to the Registrant.
Item 32. Undertakings
Not applicable, as this Registration Statement does not
relate to the Securities Act of 1933.
(5)
SIGNATURES
Pursuant to the requirements of the Investment Company
Act of 1940, the Registrant has duly caused this Amended
Registration Statement to be signed on its behalf by the
undersigned, thereto duly authorized, in the City of Boston and
Commonwealth of Massachusetts on the 27th day of March, 1996.
CO-OPERATIVE BANK INVESTMENT
FUND d/b/a BANK INVESTMENT FUND
By:
James L. Burns, Jr.
President
1940 ACT FILE NO. 811-4421
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
EXHIBITS TO FORM N-lA
AMENDMENT NO. 15
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
CO-OPERATIVE BANK INVESTMENT FUND
d/b/a Bank Investment Fund
75 Park Plaza
Boston, Massachusetts 02116-3934
(617) 695-0415
Exhibit 16
BANK INVESTMENT FUND
Yield worksheet
FUND ONE DATE 12/31/95
Yield = 2[( a - b 6
____ + 1) -1]
[( cd )
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of the
period.
a = 800,996.56 b = 21,000.00
c = 146,163.9410 d = 996.1987
a - b = 779,996.56
cd = 145,608,328.01
Yield in accordance with the above formula is 6.51%.
Exhibit 16
BANK INVESTMENT FUND
Total Return Worksheet
FUND ONE DATE 1 year
Ended 12/31/95
n 1
Total Return: P(l + T) = ERV or [(ERV) /n}
------- -1
[(P ) }
p = a hypothetical initial payment of $1000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1000 payment
made at the beginning of the 1, 5, or 10 year periods to
the end of the 1, 5, or 10 year periods (or fractional
portion thereof).
P = 1000.00 T = 12.78%
n = 1 ERV = 1,127.7625
Total return in accordance with the above formula is 12.78%.
Exhibit 16
BANK INVESTMENT FUND
Total Return Worksheet
FUND ONE DATE 5 years
Ended 12/31/95
n 1
Total Return: P(l + T) = ERV or [( ERV) /n}
-------- -1
(P ) }
p = a hypothetical initial payment of $1000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1000 payment
made at the beginning of the 1, 5, or 10 year periods to
the end of the 1, 5, or 10 year periods (or fractional
portion thereof).
P = 1000.00 T = 6.79%
n = 5 years ERV = 1389.0021
Total return in accordance with the above formula is 6.79%.
Exhibit 16
BANK INVESTMENT FUND
Total Return Worksheet
FUND ONE DATE 10 years
Ended 12/31/95
n 1
Total Return: P(l + T) ERV or [( ERV ) /n}
----- -1
[( P ) }
p = a hypothetical initial payment of $1000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1000 payment
made at the beginning of the 1, 5, or 10 year periods to
the end of the 1, 5, or 10 year periods (or fractional
portion thereof).
P = 1000.00 T = 7.74%
n = 10 years ERV = 2107.6104
Total return in accordance with the above formula is 7.74%.
Exhibit 16
BANK INVESTMENT FUND
Yield worksheet
LIQUIDITY FUND DATE 12/31/95
Yield = c * 365
----
7
c = a
----
b
a net investment income (per share) or net change
b beginning value = 1000.00
c base period return = net investment income
---------------------
beginning value
a = 1.0835 b= 1000.00
c = .0010835
Yield in accordance with the above formula is 5.65%.
Exhibit 17
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Form N-1A of our
report dated February 6, 1996, and appearing on Page 12 of the
Offering Circular on the financial statements of Bank Investment
Fund - Fund One, appearing on Pages 13 through 22 of the Offering
Circular for the year ended December 31, 1995.
Parent, McLaughlin & Nangle
Certified Public Accountants
Boston, Massachusetts
February 6, 1996
Exhibit 17
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Form N-1A of our
report dated February 6, 1996, and appearing on Page 12 of the
Offering Circular on the financial statements of Bank Investment
Fund - Liquidity Fund, appearing on Pages 13 through 23 of the
Offering Circular for the year ended December 31, 1995.
Parent, McLaughlin & Nangle
Certified Public Accountants
Boston, Massachusetts
February 6, 1996
Exhibit 19
BANK INVESTMENT FUND
FUND ONE
PRICE MAKE UP SHEET
Date: 12/31/95
Net Asset Value - January 1
$ 129,330,380
Cash Invested:
YTD-Yesterday $19,250,000
INV-Today -0- 19,250,000
Dividends Reinvested:
YTD-Yesterday 3,345,440
DR-Today 311,523 3,656,963
Cash Redeemed:
YTD-Yesterday (12,517,795)
RED-Today -0- (12,517,795)
Realized Gains (Losses):
YTD-Yesterday (3,906,419)
G/L-Today -0- (3,906,419)
Unrealized Appreciation:
YTD-Yesterday 10,741,902
Appreciation/
(Depreciation) Today -0- 10,741,902
TOTAL NET ASSETS - TODAY $146,555,031
Exhibit 19
PRE-NET ASSET VALUE COMPUTATION:
Total Net Assets - Yesterday
(Adjusted - see below) $146,555,031
Today's Appreciation/
Depreciation in Inv. Sec.* 0
Number of Shares Outstanding-
Yesterday (Adjusted - see below) 147,801.5487
Pre-NAV per share $996.1987
POST-NET ASSET VALUE COMPUTATION:
Total Net Assets - Today $146,555,031
Shares Outstanding:
Today 146,243,509
Current
Redemptions - 0 -
Current
Investments (Dividend Reinvestment) 311,522
Number of
shares out-
standing today 147,114.2601
NET ASSET VALUE PER SHARE 996.1987
*INVESTMENT SECURITIES PORTFOLIO
Yesterday Today
Market $144,877,750 $144,877,750
Cost 142,377,096 142,377,096
Appreciation/
Depreciation $ -0- $ -0-
TODAY'S CHANGE $ -0-
Exhibit 19
BANK INVESTMENT FUND
Liquidity Fund
PRICE MAKE UP SHEET
Date: 12/31/95
Net Asset Value - January 1
$ 91,622,987
Cash Invested:
YTD-Yesterday $758,881,978
INV-Today -0- 758,881,978
Dividends Reinvested:
YTD-Yesterday $ 5,901,496
DR-Today 672,225 6,573,721
Cash Redeemed:
YTD-Yesterday 611,928,173
RED-Today -0- 611,928,173
Realized Gains (Losses):
YTD-Yesterday -0-
G/L-Today -0- -0-
Unrealized Appreciation:
YTD-Yesterday -0-
Appreciation/
(Depreciation) Today -0- -0-
TOTAL NET ASSETS - TODAY $245,150,513
Exhibit 19
PRE-NET ASSET VALUE COMPUTATION:
Total Net Assets - Yesterday $245,150,513
Today's Appreciation/
Depreciation in Inv. Sec. 0
Number of Shares Outstanding-
Yesterday 245,150.5130
Pre-NAV per share $1000.00
POST-NET ASSET VALUE COMPUTATION:
Total Net Assets - Today $245,150,513
Shares Outstanding:
Today 244,478,288
Current
Redemptions - 0 -
Current
Investments (Dividend Reinvestment) 672,225
Number of
shares out-standing today 245,150.5130
NET ASSET VALUE PER SHARE $1000.00
INVESTMENT SECURITIES PORTFOLIO*
Yesterday Today
Market $
Cost
Appreciation/
Depreciation $
TODAY'S CHANGE $
This Section is Not Applicable - Amortized Cost Method used.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000773154
<NAME> CO OPERATIVE BANK INVESTMENT FUND
<SERIES>
<NUMBER> 1
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<PERIOD-END> DEC-31-1995
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<EXPENSES-NET> 606,150
<NET-INVESTMENT-INCOME> 9,093,939
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<NET-CHANGE-FROM-OPS> 15,929,422
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<DISTRIBUTIONS-OF-INCOME> (9,093,939)
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<ACCUMULATED-NII-PRIOR> 0
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<INTEREST-EXPENSE> 161
<GROSS-EXPENSE> 606,150
<AVERAGE-NET-ASSETS> 134,741,256
<PER-SHARE-NAV-BEGIN> 944.75
<PER-SHARE-NII> 66.14
<PER-SHARE-GAIN-APPREC> 51.45
<PER-SHARE-DIVIDEND> (66.14)
<PER-SHARE-DISTRIBUTIONS> (66.14)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 996.20
<EXPENSE-RATIO> .45
<AVG-DEBT-OUTSTANDING> 5,000
<AVG-DEBT-PER-SHARE> .036
</TABLE>
<TABLE> <S> <C>
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<NAME> CO OPERATIVE BANK INVESTMENT FUND
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<NAME> LIQUIDITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 243,437,803
<INVESTMENTS-AT-VALUE> 243,469,684
<RECEIVABLES> 2,056,502
<ASSETS-OTHER> 204,330
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 245,698,635
<PAYABLE-FOR-SECURITIES> 0
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<OTHER-ITEMS-LIABILITIES> 548,122
<TOTAL-LIABILITIES> 548,122
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 11,400,281
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<EXPENSES-NET> 253,105
<NET-INVESTMENT-INCOME> 11,143,767
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<NET-CHANGE-FROM-OPS> 11,143,767
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (11,143,767)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 758,882
<NUMBER-OF-SHARES-REDEEMED> 611,928
<SHARES-REINVESTED> 6,574
<NET-CHANGE-IN-ASSETS> 153,527,526
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 3,409
<GROSS-EXPENSE> 253,105
<AVERAGE-NET-ASSETS> 193,760,769
<PER-SHARE-NAV-BEGIN> 1000.00
<PER-SHARE-NII> 57.12
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (57.12)
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<PER-SHARE-NAV-END> 1000.00
<EXPENSE-RATIO> .13
<AVG-DEBT-OUTSTANDING> 58,000
<AVG-DEBT-PER-SHARE> .298
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