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SEMIANNUAL REPORT
FEBRUARY 28, 1997
THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
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THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1996
ASSETS
Mutual Funds--Fund for Government Investors
102,418 shares (Cost $102,418) (Note 1)............................$102,418
Interest Receivable................................................. 339
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Total Assets................................................. 102,757
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LIABILITIES
Administration Fee Payable...................................... 312
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Total Liabilities.......................................... 312
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NET ASSETS.......................................................... $102,445
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Shares Outstanding.................................................. 10,182
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Net Asset Value Per Share........................................... $ 10.06
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See Notes to Financial Statements.
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THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SEMIANNUAL PERIOD ENDED FEBRUARY 28, 1997
INVESTMENT INCOME
Interest Income (Note 1)............................................. $2,207
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EXPENSES
Investment Advisory Fee (Note 2)..................................... 342
Administrative Fee (Note 2).......................................... 251
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Total Expenses..................................................... 593
Less Expenses Waived by Investment Advisor......................... (342)
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Net Expenses....................................................... 251
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NET INVESTMENT INCOME................................................. 1,956
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Net Realized Gain on Investments..................................... 0
Net Change in Unrealized Appreciation (Depreciation) of Investments.. 0
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NET GAIN ON INVESTMENTS............................................... 0
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $1,956
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See Notes to Financial Statements.
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THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 28,
<TABLE>
<CAPTION>
1997 1996
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<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income.............................................................. $ 1,956 $ 7,413
Net Realized Gains on Investment Transactions...................................... - 34,335
Net Change in Unrealized Appreciation (Depreciation) of Investments................ - (3,633)
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Net Increase in Net Assets Resulting from Operations............................. 1,956 38,115
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DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income (Note 1)................................................ (1,818) (20,173)
From Net Realized Capital
Gains.................................................... - (73,109)
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Total Distributions to Shareholders.............................................. (1,818) (93,282)
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FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares.................................................. - 56,369
Shares Issued in Reinvestment of Dividends......................................... 1,818 12,407
Cost of Shares Redeemed............................................................ - (693,776)
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Net (Increase) Decrease in Net Assets Resulting from Share Transactions.......... 1,818 (625,000)
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Total Increase (Decrease) in Net Assets......................................... 1,956 (680,167)
NET ASSETS - Beginning of Period.................................................... 100,489 680,167
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NET ASSETS - End of Period.......................................................... $102,445 $ -
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SHARES
Sold............................................................................... - 4,855
Issued in Reinvestment of Distributions............................................ 182 1,123
Redeemed........................................................................... - (68,478)
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182 62,500
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</TABLE>
See Notes to Financial Statements.
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THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the Six
Months
Ended
February 28, For the Year Ended August 31,
------------ --------------------------------------------------
1997 1996 1995 1994 1993 1992
----- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value - Beginning of Period......................... $10.05 $10.88 $ 0.00 $ 10.01 $ 9.46 $ 10.73
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Income from Investment Operations:
Net Investment Income........................................ 0.194 0.435 0.310 0.060 0.157 0.186
Net Realized and Unrealized Gains (Losses) on Securities..... 0.000 3.529 0.570 - 0.711 (1.170)
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Total from Investment Operations........................... 0.194 3.964 0.880 0.060 0.868 (0.984)
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Distributions to Shareholders:
From Net Investment Income................................... (0.182) (0.590) - - (0.318) (0.286)
From Net Realized Capital Gains.............................. 0.000 (3.114) - - - -
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Total Distributions to Shareholders........................ (0.182) (3.704) - - (0.318) (0.286)
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Liquidation of Assets and Redemption of all Outstanding Shares. 0.000 (11.090) - (10.070) - -
From Share Transactions........................................ 0.000 10.000(1) 10.000(2) - - -
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Net Increase (Decrease) in Net Asset Value..................... 0.01 (0.83) 10.88 (10.01) 0.55 (1.27)
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Net Asset Value - End of Year.................................. $10.06 $10.05 $10.88 $ 0.00 $10.01 $ 9.46
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------ ------ ----- ------ ----- ------
Total Investment Return......................................... 1.92%(d) 7.58% 8.80%(b) 0.90% 9.36% (7.79)%
Ratios to Average Net Assets:
Expenses....................................................... 0.50%(c)(e) 1.19%(a) 1.25%(c) 0.90%(a) 1.36% 1.12%
Net Investment Income.......................................... 3.89%(c) 3.32% 2.97%(c) 2.41% 1.56% 1.88%
Supplementary Data:
Portfolio Turnover Rate........................................ 0.0% 71.2% 224.4% 0.0% 1,288.9% 2,100.8%
Net Assets at End of Year (000's omitted)...................... 102 100 680 0 468 13,918
Number of Shares Outstanding at End of Year (000's omitted).... 10 10 63 0 47 1,471
</TABLE>
1 During the year ended August 31, 1996, all outstanding shares were redeemed
at a net asset value of $11.09 per share, thereby resulting in the
liquidation of all net assets of the Portfolio. Subsequently, 10,000 shares
were sold at $10.00 per share when net asset value of the Portfolio was $0.00
thereby resulting in Money Management Associates, the Portfolio's adviser,
and another affiliated person of the Portfolio, owning 100% of the
Portfolio's shares.
2 During the year ended August 31, 1995, 62,500 shares were sold at $10.00 per
share when the net asset value of the portfolio was $0.00 thereby resulting
in Money Management Associates, the Portfolio's adviser, and other affiliated
persons of the Portfolio, owning 80% of the Portfolio's shares.
a Reflects all fees paid for services provided during the period. Investment
advisory services were not provided for part of the period due to investment
activity having ceased.
b Reflects the total return for the period January 3, 1995 through August 31,
1995. January 3, 1995 represents the first date during fiscal year 1995 that
the fund had net assets and shareholders.
c Annualized.
d Total returns for periods of less than one year are not annualized.
e Reflects ratio of expenses to average net assets after fee waiver. The
adviser waived all management fees for the period totaling $342. The
annualized ratio of expenses to average net assets without the fee waiver
would have been 1.25%.
See Notes to Financial Statements.
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THE RUSHMORE FUND, INC.
NOVA PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
The Rushmore Fund, Inc. ("Fund") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as an open-end,
diversified investment company. The Fund consists of two separate portfolios
each with its own investment objectives and policies. These financial
statements report on one of the two portfolios: the Nova Portfolio. The Nova
Portfolio ("Portfolio") is a non-diversified investment company. On
February 28, 1997, there were 1,000,000,000 shares of $0.001 par value
capital stock authorized. The financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of the
financial statements. The following is a summary of significant accounting
policies which the Portfolio consistently follows:
(a) Listed securities are valued at the last sales price. Options and
futures contracts are valued at the last sales price as of the close of
trading on the applicable exchanges. If market quotations are not
readily available, the Board of Directors will value the Portfolio's
securities in good faith.
(b) Security transactions are recorded on the trade date (the date the order
to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex-dividend date. Realized
gains and losses from securities are computed on an identified cost
basis.
(c) Income dividends are declared and paid annually in the Portfolio.
Dividends are reinvested in additional shares unless shareholders
request payment in cash. Generally, short-term capital gains are
distributed annually in the Portfolio. Long-term gains, if any, are
distributed annually.
(d) The Fund complies with the provisions of the Internal Revenue Code
applicable to regulated investmentcompanies and distributes all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
(e) When the Portfolio writes (sells) an option, an amount equal to the
premium received is entered in the Portfolio's accounting records as an
asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written. When an option expires, or if the Portfolio enters into a
closing purchase transaction, the Portfolio realizes a gain (or loss if
the cost of a closing purchase transaction exceeds the premium received
when the option was sold).
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Investment advisory and management services are provided by Money Management
Associates, ("Adviser"). Under an agreement with the Adviser, the Portfolio
pays a fee for such services at an annual rate of 0.75% of the average daily
net assets of the Portfolio. Certain Officers and Directors of the Fund are
affiliated with the Adviser.
Rushmore Trust and Savings, FSB (Trust), a majority owned subsidiary of the
Adviser, provides transfer agency, dividend-disbursing and shareholder
services to the Portfolio. In addition, the Trust serves as custodian of the
Portfolio's assets and pays the operating expenses of the Portfolio. For
these services, the Trust receives an annual fee of 0.50% of the average net
assets of the Portfolio.
The Portfolio invests its excess cash in Fund for Government Investors, a
money market mutual fund. Certain Officers and Trustees of Fund for
Government Investors are affiliated with the Portfolio.
5
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3. SECURITIES TRANSACTIONS
For the semiannaul period ended February 28, 1997, purchases and sales
(including maturities) of securities (excluding short-term securities) were
as follows:
Purchases............................................ $0
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Sales................................................ $0
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4. NET UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
Unrealized appreciation (depreciation) as of February 28, 1997, cost for
Federal income tax purposes is as follows:
Gross Unrealized Appreciation........................ $0
Gross Unrealized Depreciation........................ 0
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Net Unrealized Appreciation.......................... $0
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Cost of Investments for Federal Income Tax purposes.. $102,418
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5. NET ASSETS
At February 28, 1997, net assets consisted of the following:
Paid-in Capital...................................... $101,818
Undistributed Net Investment Income.................. 627
Accumulated Net Realized Gain on Investments......... 0
Net Unrealized Appreciation on Investments........... 0
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Net Assets........................................... $102,445
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