Dear Shareholders,
Enclosed please find the Annual Report for your Blanchard Global Growth Fund
for the fiscal year ending April 30, 1995.
As a global asset allocation manager, we can almost always find some market
in the world that is acting well. In 1994, as a result of an increasingly
globalized economy, this was not the case, as almost all worldwide markets were
in a state of flux.
As the fiscal year progressed, we made a defensive allocation to cash, so
that in the third quarter of 1994 we held 30% of the Fund's portfolio in cash
while waiting for markets to calm and for opportunities to appear.
We saw such an opportunity materialize early in 1995 and, in February and
March, redeployed much of our cash into the U.S. stock market. This brought the
U.S. equity position up to 50%, which is close to the maximum that we can hold.
With the rally we have had so far this year in U.S. equities, this has worked
out well for us.
Our second largest position has been in foreign equity markets, though we
(over, please)
The following information was represented as a line graph
The Value of a $10,000 Investment in the
Blanchard Global Growth Fund
inception 6/1/86 through 4/30/95 as compared to
the Standard & Poor's 500 for the same period
-----------------------------------
Avg. Annual Returns through 4/30/95
Blanchard Global Growth Fund*
-----------------------------------
1 year -1.04%
-----------------------------------
5 year 5.67%
-----------------------------------
since inception 7.59%
-----------------------------------
<TABLE>
<CAPTION>
FYE 4/30/87 FYE 4/30/88 FYE 4/30/89 FYE 4/30/90 FYE 4/30/91 FYE 4/30/92 FYE 4/30/93
<S> <C> <C> <C> <C> <C> <C> <C>
GGF 31.38% -0.57% 7.54% 3.74% 4.61% 6.24% 6.08%
S&P 500 18.10% -6.40% 22.80% 10.50% 17.60% 14.00% 6.60%
$9,925 $13,039 $12,965 $13,943 $14,464 $15,131 $16.075 $17,053
$10,000 $11,810 $11,054 $13,575 $15,000 $17,640 $20,109 $21,437
</TABLE>
Reflects deduction of $75 acct opening fee
Blanchard Standard
Global & Poor's
Growth Fund 500(D)
*The average annual returns quoted above do not reflect the deduction of the
account opening fee and assume reinvestment of distributions. If fee was
reflected, the returns would be lower. Total return includes changes in
principal value. Average annual return is total return annualized and
compounded. Past performance is no guarantee of future results.
(D)Source: Standard & Poor's 500 is an unmanaged composite index of the U.S.
Stock Market performance.
^Reflects deduction of the one-time $75 account opening fee.
This chart is for comparative purposes only and is not intended to reflect on
future performance of the BGGF or the index.
<PAGE>
are still a bit early on these investments, as the weak dollar has hurt overseas
markets by suppressing exports in Europe and Japan. Even so, we are maintaining
our exposure to foreign markets as we expect they will outperform the U.S. stock
market in the second half of the year.
During 1994, our allocation to the precious metals sector was minimal. We
have only recently begun moving into these markets to any degree. Again, while
we may be a bit early on this allocation, we are comfortable taking a position
at this level due to the extremely favorable supply and demand equation in gold
markets.
In 1994, in light of the Fed's aggressive series of interest rate increases,
we made substantial reductions in our bond holdings, both in the U.S. and
abroad. While we are not planning to move heavily back into bonds at any time
soon, if we were to do so, it would most likely be in foreign bonds as we
believe they currently present a greater opportunity than U.S. issues.
To sum up, we believe that the global economy is currently in a sustained
growth phase. As a result of this view, we have used the Fund's diversification
and flexibility to move out of cash and back into equities, positioning the
portfolio to seek a higher level of growth. With approximately 80% of the
portfolio in a combination of U.S. and foreign stocks, we are well positioned to
take advantage of such a growth scenario.
Sincerely,
JB:ml Jeremy Biggs
Chief Investment Officer
Fiduciary Trust International
Chief Asset Allocation Strategist of the Blanchard Global Growth Fund
Distributed by Sheffield Investments, Inc. (1551) 00ARSL0695
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS
April 30, 1995
(Left Column)
Shares Value
------ -----
U.S. EQUITY SECURITIES SECTOR (49.58%)
Aerospace (0.84%)
*Coltec Industries ............................. 40,000 $ 730,000
-----------
Automotive & Related (3.24%)
Chevron Corp. ................................. 12,000 568,500
Chrysler Corp. ................................ 20,000 862,500
Cummins Engine Company
Inc. ........................................ 15,000 671,250
Harley Davidson, Inc. ......................... 30,000 716,250
-----------
2,818,500
-----------
Banking (4.03%)
Citicorp ...................................... 25,000 1,159,375
First Tennessee National Corp. ................ 10,000 425,000
Nationsbank Corp. ............................. 20,000 1,000,000
Provident Bancorp ............................. 15,000 506,250
UJB Financial Corp. ........................... 15,000 410,625
-----------
3,501,250
-----------
Broadcast, Radio & TV (0.36%)
Comcast Corp. Class A
Special ..................................... 20,000 315,000
-----------
Chemicals & Related (4.91%)
EI duPont de Nemours & Co. .................... 17,000 1,119,875
Mallinckrodt Group Inc. ....................... 30,000 1,080,000
Monsanto Co. .................................. 10,000 832,500
Morton International .......................... 40,000 1,240,000
-----------
4,272,375
-----------
Consumer & Related (7.03%)
Craftmade International ....................... 10,000 82,500
Eastman Kodak Co. ............................. 30,000 1,725,000
Edison Brothers Stores Inc. ................... 70,000 1,050,000
Home Depot .................................... 25,000 1,043,750
Lancaster Colony Corp. ........................ 20,000 695,000
Mattel, Inc. .................................. 35,000 831,250
Sara Lee Corp. ................................ 25,000 696,875
-----------
6,124,375
-----------
Electronics & Electrical (5.38%)
Avnet, Inc. ................................... 25,000 1,112,500
Baker Hughes Inc. ............................. 30,000 675,000
General Electric Co. .......................... 20,000 1,120,000
Intel, Inc. ................................... 10,000 1,023,750
Mark IV Industries, Inc. ...................... 42,000 756,000
-----------
4,687,250
-----------
Energy Related (4.44%)
Brush Wellman Inc. ............................ 20,000 395,000
Burlington Resources Inc. ..................... 30,000 1,173,750
Cooper Industries, Inc. ....................... 13,000 507,000
El Paso Natural Gas ........................... 30,000 877,500
Tenneco, Inc. ................................. 20,000 917,500
-----------
3,870,750
-----------
<PAGE>
(Right Column)
Shares Value
------ -----
Entertainment & Leisure (2.40%)
Carnival Cruise Lines Class A ................. 40,000 $ 995,000
Time Warner, Inc. ............................. 30,000 1,098,750
-----------
2,093,750
-----------
Financial Services (2.47%)
American Express Co. .......................... 40,000 1,390,000
Cash America Investment,
Inc. ........................................ 100,000 762,500
-----------
2,152,500
-----------
Food, Beverage, & Tobacco (1.56%)
Philip Morris Co., Inc. ....................... 20,000 1,355,000
-----------
Health Care (0.69%)
*National Health Labs .......................... 40,000 600,000
-----------
Industrial & Related (2.02%)
Minnesota Mining &
Manufacturing ............................... 20,000 1,192,500
Motorola, Inc. ................................ 10,000 568,750
-----------
1,761,250
-----------
Insurance (0.63%)
Washington National Corp. ..................... 30,100 553,088
-----------
Oil & Related (0.47%)
*Reading & Bates Corp. ......................... 50,000 412,500
-----------
Pharmaceuticals (2.80%)
Pfizer, Inc. .................................. 18,000 1,559,250
Warner Lambert Co. ............................ 11,000 877,250
-----------
2,436,500
-----------
Recreation & Related (0.40%)
*Leslie's Poolmart ............................. 20,000 345,000
-----------
Retail (1.99%)
J.C. Penney, Inc. ............................. 20,000 875,000
The Limited ................................... 40,000 855,000
-----------
1,730,000
-----------
Telecommunications (3.92%)
*Airtouch Communications ....................... 40,000 1,075,000
AT&T Corp. .................................... 15,000 761,250
SBC Communications ............................ 25,000 1,103,125
*TeleCommunications
A Shares .................................... 25,000 478,125
-----------
3,417,500
-----------
TOTAL U.S. EQUITY
SECURITIES SECTOR
(IDENTIFIED COST
$40,542,572) ................................ 43,176,588
-----------
3
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
FOREIGN SECURITIES SECTOR (18.88%)
AUSTRALIA (0.63%)
Machinery (0.17%)
Broken Hill Proprietary ....................... 10,479 $ 152,543
-----------
Metals & Mining (0.13%)
Western Mining Corp. .......................... 20,000 113,253
-----------
Paper Products (0.17%)
Amcor Ltd. (ORD) .............................. 20,000 147,026
-----------
Publishing/Printing (0.16%)
News Corporation Ltd. ......................... 31,320 138,371
-----------
TOTAL AUSTRALIA .......................... 551,193
-----------
CANADA (0.10%)
Metals & Mining (0.10%)
*Cominco Ltd. .................................. 5,000 83,655
-----------
FRANCE (2.32%)
Consumer Goods & Related (0.30%)
L'Oreal ....................................... 990 260,272
-----------
Electronics & Electrical (0.27%)
Legrand ....................................... 160 231,451
-----------
Financial Services (0.52%)
AXA ........................................... 4,600 242,243
Credit Local de France ........................ 2,500 212,820
-----------
455,063
-----------
Food, Beverage, & Household (0.31%)
LVMH Moet Hennessy ............................ 1,410 267,848
-----------
Housing & Construction (0.47%)
Colas ......................................... 600 107,883
Compagnie de Saint Gobain ..................... 2,310 298,488
-----------
406,371
-----------
Machinery (0.26%)
Valeo (ORD) ................................... 4,050 230,394
-----------
Multi-Industry (0.05%)
Primagaz cie Gaz .............................. 250 46,831
-----------
Textile & Apparel (0.14%)
Castorama Dubois .............................. 720 119,074
-----------
TOTAL FRANCE ............................................ 2,017,304
-----------
GERMANY (1.47%)
Chemicals & Related (0.27%)
Linde AG ...................................... 402 230,915
-----------
Machinery (0.36%)
Mannesmann .................................... 1,155 314,243
-----------
Medical Products & Related (0.58%)
Fresenius (PFD) ............................... 445 282,234
Wella (PFD) ................................... 300 223,784
-----------
506,018
-----------
Utilities & Related (0.26%)
Veba AG ....................................... 615 228,935
-----------
TOTAL GERMANY ........................................... 1,280,111
-----------
<PAGE>
(Right Column)
Shares Value
------ -----
HONG KONG (0.60%)
Airlines (0.15%)
Swire Pacific Ltd., Class A ................... 20,000 $ 133,704
-----------
Banking (0.07%)
Hong Kong & Shanghai Bank ..................... 5,431 62,968
-----------
Financial Services (0.14%)
First Pacific ................................. 150,000 123,046
-----------
Real Estate (0.08%)
Cheung Kong Hldgs. Ltd. ....................... 15,000 63,170
-----------
Utilities (0.16%)
China Light & Power ........................... 12,000 56,582
Citic Pacific Ltd. ............................ 35,000 85,680
-----------
142,262
-----------
TOTAL HONG KONG ......................................... 525,150
-----------
IRELAND (0.14%)
Housing & Construction (0.14%)
CRH PLC ....................................... 20,000 123,656
-----------
JAPAN (5.51%)
Automotive (0.30%)
Mabuchi Motor Co. Ltd. ........................ 4,000 264,160
-----------
Banking (0.60%)
Mitsubishi Bank Ltd. ......................... 7,000 171,585
Mitsubishi Trust and Banking ................. 20,000 345,074
-----------
516,659
-----------
Chemicals & Related (0.46%)
Daicel Chemical Industry ..................... 35,000 204,902
Sekisui Chemical ............................. 16,000 199,905
-----------
404,807
-----------
Electronics & Electrical Equipment (1.15%)
Canon Sales Co. ............................... 10,000 264,160
Hitachi Zosen ................................. 50,000 239,767
Minebea Co., Ltd. ............................. 35,000 259,460
*Yaskawa Electric Corp. ........................ 50,000 239,766
-----------
1,003,153
-----------
Financial Services (0.43%)
Daiwa Securities Co. .......................... 15,000 189,196
Japan Securities Finance Co.,
Ltd ......................................... 12,000 188,482
-----------
377,678
-----------
Housing & Construction (0.49%)
Taisei Corp. Ltd. ............................. 25,000 172,834
Tostem Corp. .................................. 7,000 254,045
-----------
426,879
-----------
Industrial & Related (0.55%)
Asahi Glass Co. ............................... 20,000 261,780
Nippon Steel Corp. ............................ 55,000 218,586
-----------
480,366
-----------
4
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
Machinery (0.60%)
Autobacs Seven ................................ 3,200 $ 333,936
Mori Spiki .................................... 10,000 186,817
-----------
520,753
-----------
Real Estate (0.25%)
Mitsubishi Estate Co. ......................... 18,000 216,326
-----------
Retail (0.44%)
Ito Yokado Company, Ltd. ...................... 4,000 215,611
Jusco Ltd. .................................... 8,000 163,732
-----------
379,343
-----------
Telecommunications (0.24%)
DDI Corp. ..................................... 24 211,328
-----------
TOTAL JAPAN ............................................. 4,801,452
-----------
MEXICO (0.06%)
Retail (0.06%)
*Fotoluz Corp. ................................. 115,000 53,711
-----------
NETHERLANDS (1.64%)
Electronics & Electrical (0.27%)
Philips Electronics ........................... 6,200 236,403
-----------
Insurance (0.27%)
Aegon NV ...................................... 3,030 235,164
-----------
Publishing/Printing (0.49%)
Verenigde Ned. Uitg. .......................... 1,950 218,034
Wolters Kluwer ................................ 2,600 211,503
-----------
429,537
-----------
Transportation (0.61%)
Koninklijke Ahold NV .......................... 7,350 252,795
Koninklijke PTT Nederland NV .................. 7,950 277,016
-----------
529,811
-----------
TOTAL NETHERLANDS ....................................... 1,430,915
-----------
NORWAY (0.23%)
Multi-Industry (0.23%)
Orkla AS ...................................... 4,600 197,278
-----------
SWEDEN (0.67%)
Automotive (0.23%)
Volvo Class B Free Shares ..................... 10,500 197,089
-----------
Consumer Related (0.21%)
Autoliv AB .................................... 4,000 180,966
-----------
Industrial (0.23%)
Saab Swedish Steel Class A .................... 4,600 202,734
-----------
TOTAL SWEDEN ............................................ 580,789
-----------
SWITZERLAND (1.53%)
Consumer Related (0.20%)
Merkur Hldgs. ................................. 670 181,776
-----------
Electronics & Electrical (.20%)
Sulzer Gebrueder AG ........................... 300 171,421
-----------
Insurance (0.21%)
Winterthur Schweiz ............................ 320 180,616
-----------
<PAGE>
(Right Column)
Shares Value
------ -----
Machinery (0.31%)
BBC Brown Boveri Ltd. ......................... 275 $ 271,329
-----------
Medical Products & Related (0.31%)
PSC Roche Hldgs. .............................. 45 270,283
-----------
Metals & Mining (0.30%)
Alusuisse Lonza Hldgs ......................... 470 261,179
-----------
TOTAL SWITZERLAND ..................................... 1,336,604
-----------
UNITED KINGDOM (3.98%)
Banking (0.19%)
Bank of Ireland ............................... 30,000 162,193
-----------
Beverages (0.19%)
Guinness PLC .................................. 22,500 169,977
-----------
Consumer Related (0.82%)
Cadbury Schweppes PLC ......................... 35,000 252,019
Compass Group PLC ............................. 40,000 214,971
Greencore Group PLC ........................... 17,000 120,084
WM Morrison ................................... 55,000 128,323
-----------
715,397
-----------
Electrical Equipment (0.40%)
Powergen PLC .................................. 22,000 68,675
Siebe PLC ..................................... 30,452 275,865
-----------
344,540
-----------
Entertainment & Leisure (0.17%)
Granada Group ................................. 17,000 155,781
-----------
Health Care (0.44%)
Smithkline Beecham Class A .................... 32,000 253,073
Takare (ORD) .................................. 40,000 128,081
-----------
381,154
-----------
Housing & Construction (0.14%)
CRH PLC ....................................... 20,000 121,806
-----------
Machinery (0.16%)
Chubb Security PLC ............................ 29,000 140,455
-----------
Multi-Industry (0.29%)
BTR PLC ....................................... 48,000 254,103
-----------
Oil Related (0.31%)
British Petroleum PLC ......................... 37,223 268,026
-----------
Retail (0.33%)
Thorne-Emi PLC 15,538 284,268
Telecommunications (0.28%)
Carlton Communications PLC..................... 16,000 243,033
-----------
Transportation (0.26%) Principal
---------
British Airways Conv. Bond
9.75%, 6/15/05 ..............................L 79,000 224,677
-----------
TOTAL UNITED KINGDOM .................................. 3,465,410
-----------
TOTAL FOREIGN
SECURITIES SECTOR
(IDENTIFIED COST $15,019,502) ....................... 16,447,228
-----------
5
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
EMERGING MARKETS SECTOR (12.69%)
ARGENTINA (0.58%)
Consumer Goods & Related (0.33%)
BAESA (ADR) ................................... 5,900 $ 162,250
Quilmes Industrial S.A. ....................... 6,500 123,500
-----------
285,750
-----------
Utilities & Related (0.25%)
Compania Naviera Perez
Companc "B" Shares .......................... 26,970 110,032
YPF Sociedad Anonima .......................... 5,400 109,350
-----------
219,382
-----------
TOTAL ARGENTINA ....................................... 505,132
-----------
BRAZIL (1.72%)
Basic Industries (0.94%)
Acesita PN (ADR) .............................. 12,864 197,635
Compania Vale Do Rio Doce
(ADR) ....................................... 4,600 192,400
Usiminas (ADR) ................................ 34,600 417,546
-----------
807,581
-----------
Capital Goods (0.20%)
*Rhodia Ster (GDR) ............................. 12,781 173,869
-----------
Energy Related (0.16%)
*Electrobras "B" Shares ........................ 165,000 44,434
*Electrobas Common ............................. 345,500 95,310
-----------
139,744
-----------
Industrial & Related (0.20%)
*Cemig (ADR) ................................... 7,307 170,748
-----------
Telecommunications (0.22%)
Telebras (ADR) ................................ 5,450 194,917
-----------
TOTAL BRAZIL .......................................... 1,486,859
-----------
CHILE (0.54%)
Basic Industries (0.19%)
Antofagasta Holdings .......................... 28,000 130,656
*Sociedad Quimica Y Minera
(ADR) ....................................... 1,000 34,875
-----------
165,531
-----------
Capital Goods (0.28%)
Madeco S.A. (ADR) ............................. 5,300 154,363
Maderas Y Sinteticos
Sociedad (ADS) ................................ 5,000 87,500
-----------
241,863
-----------
Financial Services (0.07%)
Banco O'Higgins (ADR) ......................... 3,500 63,875
-----------
TOTAL CHILE ........................................... 471,269
-----------
(Right Column)
Shares Value
------ -----
CHINA (0.15%)
Financial Services
*China North Industries
Investment Ltd. Class A ..................... 135,000 $ 135,000
-----------
COLOMBIA (0.44%)
Banking (0.12%)
(D)Banco Ganadero S.A. (ADS) ..................... 3,400 63,742
Banco Ganadero (GDR) .......................... 2,300 43,590
-----------
107,332
-----------
Basic Industries (0.32%)
Cementos Diamante (GDS) ....................... 12,700 277,749
-----------
TOTAL COLOMBIA ........................................ 385,081
-----------
ECUADOR (0.23%)
Construction (0.23%)
Cemento Nacional de Ecuador
(GDR) ....................................... 864 203,040
-----------
HONG KONG (0.39%)
Banking (0.16%)
Dao Heng Group Ltd. ........................... 56,000 143,237
-----------
Multi Industry (0.04%)
Champion Technology
Holdings .................................... 399,000 30,411
*Star Paging Int'l. Wts.
12/31/96 .................................... 60,000 372
-----------
30,783
-----------
Real Estate (0.04%)
*Jardine Strategic Holdings,
Inc. (PFD) .................................. 10,965 37,281
-----------
Shipping (.15%)
*Shanghai Hai Xing Shipping
Co. Ltd. Class "H" .......................... 700,000 130,216
-----------
TOTAL HONG KONG ..................................... 341,517
-----------
HUNGARY (0.11%)
Capital Goods (0.09%)
*Matav Rt. ...................................... 450 79,646
-----------
Consumer Goods & Related (0.02%)
*Kekkut Asvanyiz Rt. (GDR) ...................... 2,100 18,213
-----------
TOTAL HUNGARY ......................................... 97,859
-----------
INDIA (1.08%)
Basic Industries (0.34%) Principal
Gujarat Ambuja Cements Ltd. Conv. Bond ---------
3.5%, 6/30/99 .............................. $70,000 90,125
Shares
------
*Hindalco Industries
Ltd. (GDR) .................................. 3,700 96,200
United Phosphorus (GDR) ....................... 4,500 109,125
-----------
295,450
-----------
6
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
Consumer Goods & Related (0.20%)
*DCW Limited (GDR) ............................. 3,500 $ 45,500
*Dr. Reddy's Laboratories Ltd.
(GDR) ....................................... 12,200 128,100
-----------
173,600
-----------
Investment Companies (0.54%)
*Himalayan Fund ................................. 8,149 111,641
*Himalayan Fund Bonus
Wts. 12/31/96 ................................ 1,130 706
*Indian Opportunities Fund Ltd. ................. 27,282 360,673
-----------
473,020
-----------
TOTAL INDIA ........................................... 942,070
-----------
INDONESIA (0.40%)
Chemicals (0.03%)
*PT Keramika Indonesia Assoc. .................. 34,000 28,930
-----------
Capital Goods (0.09%)
*PT Argha Karya Prima .......................... 32,000 22,929
*PT Indonesia Satellite (ADR) .................. 1,600 57,800
-----------
80,729
-----------
Consumer Goods & Related (0.15%)
PT Concord Benefit
Textile Co. ................................. 35,000 69,749
*PT Kalbe Farma ................................ 7,500 26,702
PT Texmaco Jaya ............................... 57,600 30,954
-----------
127,405
-----------
Financial Services (0.13%)
Bank International Indonesia .................. 35,400 82,436
*PT Andyani Megah .............................. 30,000 26,870
-----------
109,306
-----------
TOTAL INDONESIA 346,370
-----------
ISRAEL (0.28%)
Financial Services (0.13%)
*Ampal American Israel
Wts. 1/31/99 ................................ 8,600 4,842
*Ampal American Israel Class A ................. 6,400 40,800
*PEC Israel Economic Corp. ..................... 2,500 69,063
-----------
114,705
-----------
Investment Companies (0.09%)
First Israel Fund ............................. 6,700 80,400
-----------
Multi-Industry (0.06%)
Scitex Ltd. ................................... 2,241 51,263
-----------
TOTAL ISRAEL 246,368
-----------
(Right Column)
Shares Value
------ -----
KOREA (1.37%)
Capital Goods (0.13%)
*Anam Industrial Co., Ltd.
(PFD) ....................................... 5,000 $ 62,898
*Dae Woo Heavy (PFD) ........................... 6,000 50,764
-----------
113,662
-----------
Consumer Goods & Related (0.01%)
*Kia Motors Corp. .............................. 281 4,349
-----------
Construction & Housing (0.07%)
*Kumho Construction & Energy
Co. Ltd. Pfd. ............................... 9,000 63,160
-----------
Electrical & Electronics (0.16%)
*Samsung Electronics ........................... 1,694 138,644
-----------
Financial Services (0.24%)
*Commercial Bank of Korea ...................... 12,000 124,352
*Hanshin Securities Co., Ltd.
(PFD) ....................................... 3,000 37,975
*Jin Heung Mutual Svgs. &
Finance ..................................... 1,500 42,697
-----------
205,024
-----------
Industrial & Related (0.14%)
Hyundai Motor Service Co.
(PFD) ....................................... 4,066 106,670
*Sammi Steel Co., Ltd. (PFD) ................... 2,000 12,068
-----------
118,738
-----------
Oil & Related (0.02%) Principal
Ssangyong Oil Refining ---------
3.0%, 12/31/04 .............................. $20,000 14,050
-----------
Retail & Related (0.10%) Shares
------
*Midopa Co. .................................... 7,000 87,230
-----------
Transportation (0.08%)
*Dong Bang Forwarding Co. ...................... 1,700 69,351
-----------
Utilities & Related (0.42%)
*Korea Electric Power Corp.
(GDR) ....................................... 7,700 281,800
*Yukong Ltd. ................................... 2,000 88,673
-----------
370,473
-----------
TOTAL KOREA ........................................... 1,184,681
-----------
MALAYSIA (0.42%)
Consumer Goods & Related (0.06%)
Edaran Otomobile Nasional
(BHD) ....................................... 7,000 49,858
-----------
Financial Services (0.10%)
Westmont Berhad ............................... 20,000 86,605
-----------
Industrial & Related (0.26%)
Aokam Perdana Berhad .......................... 51,400 230,894
-----------
TOTAL MALAYSIA ....................................... 367,357
-----------
7
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
MEXICO (0.61%)
Basic Industries (0.01%)
*Cemex "B" Wts. 7/29/96 ........................ 35,200 $ 282
-----------
Consumer Goods & Related (0.01%)
*Cifra S.A. Wts 8/03/96 ........................ 83,000 2,490
-----------
Financial Services (0.41%)
*Ceteco (ADS) .................................. 7,400 174,862
*Grupo Carso S.A. (ADR)......................... 10,000 108,526
*Grupo Carso Wts. 5/3/96 ....................... 16,200 17,172
*Grupo Financiero Banamex
Wts. 6/29/95 ................................ 35,300 4,413
Kimberly Clark de Mexico
(ADR) ....................................... 3,000 61,976
-----------
366,949
-----------
Telecommunications (0.18%)
*Millicom International Cellular ............... 6,400 159,200
*Telefonos de Mexico
BZW Wts. July 1995 .......................... 10,700 1,070
-----------
160,270
-----------
TOTAL MEXICO .......................................... 529,991
-----------
PAKISTAN (0.01%)
Basic Industries (0.01%)
*D.G. Khan Cement Ltd. ......................... 4,043 5,573
-----------
PERU (1.18%)
Capital Goods (0.31%)
Cementos Lima "C" Shares ...................... 7,000 155,174
Cementos Norte Pacasmayo ...................... 9,966 34,672
*Southern Peru Copper,
Class "T" Shares ............................ 17,374 77,881
-----------
267,727
-----------
Financial Services (0.27%)
Banco Wiese (ADR) ............................. 7,712 69,410
*Banco Wiese "C" Shares ........................ 1 2
Banco de Credito del Peru ..................... 78,805 165,202
-----------
234,614
-----------
Telecommunications (0.27%)
*Compania Peruana de
Telephonos .................................. 128,275 215,127
*La Neuva Com de Telefonos ..................... 30,014 24,365
-----------
239,492
-----------
Real Estate (0.33%)
*Peru Real Estate S.A. "B"
Shares ...................................... 350,000 290,500
-----------
TOTAL PERU ......................................... 1,032,333
-----------
PHILIPPINES (0.06%)
Financial Services (0.06%)
*Filinvest Land Inc. ........................... 195,500 54,785
-----------
<PAGE>
(Right Column)
Shares Value
------ -----
POLAND (0.53%)
Banking (0.14%)
Bank Rozwoju Exsportu
S.A. (PDR) .................................. 8,310 $ 122,451
-----------
Basic Industries (0.09%)
*Mostostal Exports (PDR) ....................... 13,412 75,315
-----------
Capital Goods (0.15%)
*Debica S.A. (PDR) ............................. 5,000 63,333
*Polifarb Ciezyn (PDR) ......................... 13,000 71,904
-----------
135,237
-----------
Consumer Goods & Related (0.07%)
Zwyeic Brewing Company
(PDR) ....................................... 785 59,659
-----------
Financial Services (0.08%)
Elektrim Trading Company
(PDR) ....................................... 18,000 68,779
-----------
TOTAL POLAND 461,441
-----------
RUSSIA (0.06%)
Telecommunications (0.06%)
*Petersburg Long Distance Inc. ................. 10,060 51,558
-----------
SINGAPORE (0.33%)
Basic Industries (0.13%)
Clipsal Industries Hldgs., Ltd. ............... 53,000 114,480
-----------
Capital Goods (0.20%)
GP Batteries Intl. Ltd. ....................... 25,000 60,000
*Sembawang Maritime Ltd. ....................... 27,000 113,307
-----------
173,307
-----------
TOTAL SINGAPORE 287,787
-----------
SLOVENIA (0.07%)
Banking (0.07%)
*Slovenia Kredit Bank (IDR) .................... 200 58,454
-----------
SOUTH AFRICA (0.72%)
Basic Industries (0.20%)
*Iscor Ltd. .................................... 73,602 91,322
Sasol Ltd. .................................... 9,000 87,047
-----------
178,369
-----------
Consumer Goods & Related (0.19%)
*JD Group ...................................... 15,000 54,922
South African Breweries Ltd. .................. 4,000 110,535
-----------
165,457
-----------
Financial Services (0.09%)
Barlow Rand Ltd. .............................. 4,000 40,345
*Nedcor Ltd. ................................... 3,200 39,130
-----------
79,475
-----------
Metals & Mining (0.10%)
Samancor Ltd. ................................. 6,500 90,259
-----------
Real Estate (0.14%)
Safmarine & Rennie Hldgs.
Ltd. ........................................ 38,000 118,135
-----------
TOTAL SOUTH AFRICA .................................... 631,695
-----------
8
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
(Left Column)
Shares Value
------ -----
SRI LANKA (0.05%)
Financial Services (0.05%)
*Sri Lankan Growth ............................. 6,800 $ 43,350
*Sri Lankan Growth
Wts. 3/1/98 ................................. 1,360 2,040
-----------
45,390
-----------
TOTAL SRI LANKA ....................................... 45,390
-----------
TAIWAN (0.74%)
Basic Industries (0.13%)
*Tuntex Distinct (GDS) ......................... 9,524 111,907
-----------
Construction (0.16%) Principal
Pacific Construction Conv. ---------
Bond 2.13% 10/1/98 .......................... $150,000 140,993
-----------
Industrial & Related (0.01%) Shares
------
Asia Cement Corp. ............................. 190 3,800
-----------
Investment Companies (0.44%)
*Taiwan Opportunities
Fund Ltd. ................................... 37,500 387,000
-----------
TOTAL TAIWAN .......................................... 643,700
-----------
THAILAND (0.51%)
Consumer Goods & Related (0.08%)
*Hana Microelectronics ......................... 19,000 71,458
-----------
Financial Services (0.32%)
General Finance & Securities .................. 36,000 143,444
MDX Co. Ltd. .................................. 40,000 82,944
Siam City Credit Finance
& Securities ................................ 16,000 48,790
-----------
275,178
-----------
Transportation (0.11%)
Precious Shipping Corp. ....................... 10,000 107,339
-----------
TOTAL THAILAND 453,975
-----------
TURKEY (0.01%)
Consumer Goods & Related (0.01%)
Koc Yatirim ................................... 172 55
-----------
URUGUAY (0.10%)
Financial Services (0.10%)
Banco Commercial S.A. ......................... 6,600 85,800
-----------
TOTAL EMERGING MARKETS
SECTOR (IDENTIFIED COST
$12,742,396) .............................. 11,055,140
-----------
PRECIOUS METALS SECTOR (6.63%)
METAL MINING SECURITIES (6.63%)
CANADA (2.06%)
*Dayton Mining Corp. ........................... 125,000 386,100
Franco Nevada Mining Ltd. ..................... 8,500 425,078
*Prime Resources Group, Inc. ................... 90,000 620,518
TVX Gold, Inc. ................................ 50,000 363,119
-----------
TOTAL CANADA .......................................... 1,794,815
-----------
<PAGE>
(Right Column)
Shares Value
------ -----
UNITED STATES (4.57%)
Ashanti Gold Fields
(GDR) ....................................... 28,000 $ 672,000
*Canyon Resources
Corp. ....................................... 172,000 354,750
Homestake Mining .............................. 40,000 675,000
*Kinross Gold Corp. ............................ 100,000 600,000
Newmont Mining Corp. .......................... 16,000 670,000
Placer Dome, Inc. ............................. 13,000 308,750
Santa Fe Pacific Gold
Corp. ....................................... 55,000 694,375
-----------
TOTAL UNITED STATES ................................ 3,974,875
-----------
TOTAL PRECIOUS
METALS SECTOR
(IDENTIFIED COST
$5,846,039) ...................................... 5,769,690
-----------
U.S. FIXED INCOME SECURITIES SECTOR (8.66%)
U.S. GOVERNMENT AND
AGENCY ISSUES (8.66%) Principal
(c)Government National ---------
Mortgage Association TBA
9.0%, 6/01/09 ............................... $670,000 695,125
(c)Government National
Mortgage Association TBA
10.0%, 5/01/19 .............................. 450,000 483,047
Government National
Mortgage Association
6.5%, 2024 ................................ 1,861,337 1,701,034
U.S. Treasury Bond
7.50%, 11/15/24 ............................. 1,300,000 1,319,093
(b)U.S. Treasury Note
7.625%, 4/30/96 ............................. 1,680,000 1,700,474
U.S. Treasury Note
6.125%, 7/31/96 ............................. 840,000 837,112
U.S. Treasury Note
11.125%, 8/15/03 ............................ 650,000 813,109
-----------
TOTAL U.S. FIXED
INCOME SECURITIES
SECTOR
(IDENTIFIED COST
$7,467,790) ......................................... 7,548,994
-----------
OPTIONS (0.01%) Contracts
*Nikkei 225 Call, ---------
Expires 9/8/95
Strike @ 19.83
(IDENTIFIED COST
$89,480) .................................... 60 853
-----------
9
<PAGE>
BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued)
April 30, 1995
Princial Value
-------- -----
SHORT-TERM SECURITIES (3.82%)
Associates Corp. of N.A.
5.80%, 5/1/95 ...............................$2,000,000 $ 2,000,000
U.S. Treasury Bill
6.08%, 11/16/95 ............................. 630,000 609,767
U.S. Treasury Bill
6.21%, 1/11/96 .............................. 750,000 718,816
-----------
TOTAL SHORT-TERM
SECURITIES
(AMORTIZED COST
$3,322,569) ......................................... 3,328,583
-----------
TOTAL INVESTMENTS
(IDENTIFIED COST
$85,030,348) (a)(100.27%) ........................... 87,327,076
LIABILITIES IN
EXCESS OF
CASH AND OTHER
ASSETS (-0.27%) ..................................... (239,199)
-----------
NET ASSETS (100%) ..................................... $87,087,877
===========
(Right Column)
(a) The aggregate cost for federal income tax purposes is $85,120,015; the gross
unrealized appreciation is $6,289,481 and the gross unrealized depreciation
is $4,082,420; resulting in net unrealized appreciation of $2,207,061.
(b) Security partially segregated to collateralize forward currency contracts
and when issued securities. Total market value segregated is $1,690,352.
(c) When-issued security (TBA is defined as "to be announced")
* Non-income producing.
(D) Registered under SEC rule 144-A, resale restricted as to qualified
institutional buyers; represents 0.20% of net assets.
SCHEDULE OF OPEN FORWARD CURRENCY CONTRACTS AS OF APRIL 30, 1995
<TABLE>
<CAPTION>
Currency Unrealized
Currency Sold Amount Purchased Amount Delivery Date Appreciation
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
British Pounds 18,217 USD 29,365 May 1, 1995 $ 54
Swiss Francs 44,105 USD 39,100 May 2, 1995 624
----
Total Unrealized Appreciation $678
====
</TABLE>
See notes to financial statements.
10
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
Statement of Assets and Liabilities
April 30, 1995
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(Identified Cost $85,030,348) ....................................... $87,327,076
Cash .................................................................. 1,516,999
Receivables for:
Investments sold .................................................... 2,109,290
Shares of beneficial interest sold .................................. 4,353
Interest ............................................................ 156,305
Dividends ........................................................... 131,655
Forward currency contracts .......................................... 678
Foreign withholding tax reclaimable ................................. 4,985
-----------
Total assets 91,251,341
-----------
Liabilities:
Payables for:
Shares of beneficial interest repurchased ........................... 195,072
Investments purchased ............................................... 3,746,085
Foreign currency due to custodian (identified cost $72,424) ......... 71,957
Accrued expenses and other liabilities ................................ 150,350
-----------
Total liabilities ............................................... 4,163,464
-----------
Net assets ...................................................... $87,087,877
-----------
Net assets are comprised of:
Paid in capital (unlimited authorized shares of beneficial interest,
$.01 par value, 8,972,356 shares outstanding) ....................... $87,241,249
Undistributed net investment income ................................... 1,644,700
Accumulated realized loss-net ......................................... (4,098,048)
Unrealized net appreciation of investments and net currency
translation adjustments ............................................. 2,299,976
-----------
Net assets ...................................................... $87,087,877
===========
Net asset value per share ....................................... $9.71
=====
</TABLE>
See notes to financial statements.
11
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
Statement of Operations
For the Year Ended April 30, 1995
<TABLE>
<S> <C>
Investment income:
Interest .................................................................................... $ 2,203,012
Dividends (net of $42,820 foreign withholding tax) .......................................... 1,011,758
-----------
Total income .......................................................................... 3,214,770
-----------
Expenses
Investment management fee (note 2) .......................................................... 983,753
Plan of distribution fees (note 3) .......................................................... 704,436
Transfer agent fees ......................................................................... 252,300
Custodian fees .............................................................................. 141,871
Trustees' fees, retirement plan curtailment and other expenses (note 5) ..................... 118,674
Professional fees ........................................................................... 100,393
Accounting fees ............................................................................. 76,975
Shareholder reports and notices ............................................................. 44,976
Registration fees ........................................................................... 31,165
Other ....................................................................................... 14,834
-----------
Total expenses ........................................................................ 2,469,377
-----------
Net investment income ....................................................................... 745,393
-----------
Realized and unrealized gain (loss)-net (note 1):
Realized gain (loss) on:
Investments in securities-net (net of $42,557 capital gains tax) ............. $ (722,130)
Forward currency contracts and foreign exchange
transactions-net ........................................................... (2,370,796)
Options (70,451) (3,163,377)
-----------
Change in unrealized appreciation or depreciation on:
Investments-net .............................................................. 352,187
Forward currency contract and translation
of other assets and liabilities denominated
in foreign currency-net .................................................... 434,719 786,906
----------- -----------
Net realized and unrealized losses .......................................................... (2,376,471)
-----------
Net decrease in net assets resulting from operations ........................................ $(1,631,078)
===========
</TABLE>
See notes to financial statements.
12
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
Statement of Changes in Net Assets
April 30, 1995
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
April 30, 1995 April 30, 1994
-------------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Investment income-net............................................ $ 745,393 $ 634,410
Realized gain (loss)-net......................................... (3,163,377) 10,101,136
Change in unrealized appreciation or depreciation-net............ 786,906 (1,424,538)
----------- ------------
Net increase (decrease) in net assets resulting from operations.. (1,631,078) 9,311,008
----------- ------------
Dividends and distributions to shareholders from:
Realized gains (losses)-net...................................... - (10,259,170)
Distribution in excess of net realized gains .................... (2,156,307) -
----------- ------------
(2,156,307) (10,259,170)
----------- ------------
Transactions in shares of beneficial interest-
net increase (decrease) (note 6)................................. (18,930,180) 25,973,929
----------- ------------
Net increase (decrease) in net assets.............................. (22,717,565) 25,025,767
Net assets:
Beginning of period................................................ 109,805,442 84,779,675
----------- ------------
End of year (including undistributed and overdistributed net
investment income of $1,644,700 and $334,578, respectivel........ $87,087,877 $109,805,442
=========== ============
</TABLE>
See notes to financial statements.
13
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1995
NOTE 1-Organization and Accounting Policies:
Blanchard Global Growth Fund (the "Fund") is a series of Blanchard Funds
which was organized as a Massachusetts business trust on January 24, 1986. The
Fund is a registered, open-end non-diversified management investment company
under the Investment Company Act of 1940 (the "Act"). The Fund had no operations
before June 1, 1986 other than the sale of 12,589 shares of beneficial interest
for $100,714 to eight parties who are also shareholders or affiliates of
shareholders of Sheffield Management Company (the "Manager").
The following is a summary of the significant accounting policies followed
by the Fund:
A. Valuation of Investments-Portfolio securities traded on domestic or
foreign exchanges are valued at the 4 PM EST price on that date, or if no sale
is made on that day, at the closing bid price (or the mean price in cases where
a mean is reported instead of the closing bid). In cases where a security is
traded on more than one exchange, it is valued at the quotation on the exchange
determined to be the primary market for such security by the Trustees or the
Manager. All other portfolio securities for which over-the-counter market
quotations are readily available are valued at the latest available bid prices.
Short-term debt securities which mature in 60 days or less are valued at
amortized cost if their original maturity was 60 days or less. Short-term debt
securities having a maturity date of more than sixty days at the time of
purchase are valued on a mark to market basis until sixty days prior to maturity
and thereafter at amortized cost based on their value on the 61st day. Bullion
investments are valued at the closing spot price based on dealer or exchange
quotations. All other securities and other assets of the Fund are valued at fair
value as determined in good faith by the Trustees. Foreign currency exchange
rates are determined when such rates are made available to the Fund at times
prior to the close of the New York Stock Exchange.
The abilities of the issuers of debt securities held by the Fund to meet
their obligations may be affected by economic or political developments in a
particular country, industry or region.
B. Accounting for Investments and Investment Income Transactions-Security
transactions are accounted for on the trade date (date the order to buy or sell
is executed). Realized gains and losses on security transactions are determined
on the identified cost method. Dividend income and other distributions are
recorded on the ex-dividend date, except that certain dividends from foreign
securities are recorded as soon as the Fund is informed after the ex-dividend
date. Interest income is accrued daily. Premiums or discounts on debt securities
are amortized or accreted as adjustments to interest income over the lives of
such securities.
C. Foreign Currency Translation-The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, forward currency contracts, and other assets and
liabilities denominated in foreign currencies are translated at the exchange
rates at the end of the period; and (2) purchases, sales, income and expenses
are translated at the rates of exchange prevailing on the respective dates of
such transactions. The Fund does not separately identify that portion of the
results of operations of the Fund that arise as a result of changes in the
exchange rates from the fluctuations that arise from
14
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (continued)
changes in market prices of equity investments during the year. However, in
accordance with the requirements of the Internal Revenue Code, the Fund isolates
the effect of changes in foreign exchange rates from the fluctuations arising
from changes in market prices of foreign debt obligations sold, and such foreign
exchange losses, which amounted to $425,760, in fiscal 1995, are included in
ordinary income for federal income tax purposes and in realized gain (loss) on
forward currency contracts and foreign exchange transactions-net in the
Statement of Operations.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the level of governmental supervision and
regulation of foreign securities markets and the possibility of political or
economic instability.
The Fund may enter into forward currency contracts to protect the U.S.
dollar value of securities and related receivables and payables against changes
in future foreign rates. Forward currency contracts are valued based upon the
current forward rates. Fluctuations in the value of such contracts are recorded
as unrealized gains or losses; realized gains or losses include net gains or
losses on contracts which have settled. The Fund generally enters into a forward
currency contract as a hedge against foreign exchange rate fluctuation upon the
purchase or sale of a security denominated in a foreign currency. The Fund
maintains, as collateral, U.S. Government or other highly liquid debt
obligations in an amount equal to or greater than its net obligation for forward
currency contracts. Risks may arise as a result of the potential inability of
the counterparties to meet the terms of their contracts.
Any capital or foreign currency loss incurred after October 31 through the
end of the Fund's taxable year is deemed to arise on the first day of the Fund's
next taxable year, if so elected. The Fund elected to defer a net capital loss
of [ ] and net currency loss of [ ] incurred during the year in fiscal 1995.
Future distributions may be impacted by the deferred net capital and currency
losses, as well as other differences between book and taxable income.
E. Dividends and Distributions to Shareholders-The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized capital
gains is determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income or net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
distributions or dividends in excess of net investment income or net realized
capital gains. To the extent they exceed net realized capital gains or net
investment income for tax purposes, they are reported as distributions of
paid-in capital.
F. Other-Certain expenses of the Blanchard Group of Funds are allocated
among the Funds based upon their relative average net assets during the year.
NOTE 2-Investment Management Agreement:
Pursuant to a management agreement (the "Agreement"), the Manager manages
the Fund and the investment of the Fund's assets, subject at all times to the
supervision of the Fund's Trustees. In addition to providing overall business
management and administrative services, the Manager selects, monitors and
evaluates the Portfolio Mangers and the Allocation Strategist described below.
The Manager receives from the Fund an advisory fee payable monthly at an annual
rate of 1% of the first $150 million of the Fund's average daily net assets,
.875% of the Fund's average daily net assets in excess of $150 million but not
exceeding $300 million and .75% of the Fund's average daily net assets in excess
of $300 million.
15
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (continued)
Expenses of the Fund, exclusive of taxes, interest, brokerage commissions,
distribution fees, extraordinary expenses and certain other excludable expenses
for which a waiver has been obtained, are subject to the expenses limitation
imposed by one state in which shares of the Fund are offered for sale. For the
year ended April 30, 1995, the Fund's expenses did not exceed the above
limitation.
Certain officers and/or Trustees of the Fund are officers/directors of the
Manager.
The Manager has sub-advisory agreements with Shufro, Rose and Ehrman (U.S.
Equity Securities Sector), Fiduciary Trust International, Inc. (Foreign
Securities Sector), Cavelti Capital Management, Ltd. (Precious Metals Sector),
Investment Advisers, Inc. (U.S. Fixed Income Securities Sector), Fiduciary Trust
International, Inc. (Foreign Fixed Income Sector), and Martin Currie Inc.
(Emerging Markets Sector) (formerly managed by Morgan Stanley Asset Management,
Inc.) (collectively, the "Portfolio Managers") to serve as the Portfolio
Managers for their respective sectors of the Fund. The Manager has an agreement
with Fiduciary Trust International, Inc. to be the Allocation Strategist of the
Fund. All fees for such services are paid by the Manager. The Manager has
advised the Fund that the aggregate amount of fees paid to the Portfolio
Managers and Allocation Strategist was $373,411 for the year ended April 30,
1995.
NOTE 3-Distribution Agreement and Plan:
Pursuant to a Distribution Agreement, Sheffield Investments, Inc. (the
"Distributor"), an affiliated company of the Manager, acts as principal
distributor of the Fund's shares. The Distributor has the exclusive right to
distribute Fund shares directly or through other broker-dealers.
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act which provides that the Fund may finance activities which are
primarily intended to result in the sale of the Fund's shares, including but not
limited to advertising, printing of prospectuses and reports for other than
existing shareholders, preparation and distribution of advertising material and
sales literature, and payments to dealers and shareholder servicing agents who
enter into agreements with the Manager or Distributor.
Pursuant to the Plan, the Fund may pay distribution fees not to exceed .75%
per annum of the Fund's average daily net assets. Payments under the Plan will
be made for expenses actually incurred by the Distributor. Provided that the
Plan continues in effect, any cumulative expenses incurred by the Distributor on
or after May 1, 1988, but not yet reimbursed by the Fund, may be reimbursed
through future distribution fees from the Fund. The Distributor has advised the
Fund that at April 30, 1995, the unreimbursed distribution expenses amounted to
$39,441. If the Plan is terminated or discontinued in accordance with its terms,
the obligation of the Fund to make payments to the Distributor pursuant to the
Plan will cease and the Fund will not be required to make any payments past the
date the Plan is terminated.
NOTE 4-Acquisition Agreement:
Sheffield Management Company (the "Manager") and Sheffield Investments, Inc.
(the "Distributor"), have entered into an acquisition agreement (the
"Acquisition Agreement") with Signet Banking Corporation and two of its
subsidiaries ("Signet"), dated February 15, 1995, pursuant to which Sheffield
will sell to Signet the assets relating to, and the ability to succeed to
contracts with, the Blanchard Funds, including Blanchard Global Growth Fund
(collectively, the "Funds"). The transactions contemplated by the Acquisition
Agreement which have been approved by the Board of Trustees of the Funds are
conditioned upon the approval of the shareholders of each
16
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (continued)
Fund, of (1) a new investment management agreement with Signet, (2) a new
distribution agreement with Federated Securities Corp., and (3)certain other
conditions.
No material changes are contemplated in the operation of the Funds and no
management or distribution and administration fee increases are being proposed.
NOTE 5-Security Transactions and Transactions with Affiliates:
Purchases and sales of portfolio securities for the year ended April 30,
1995, excluding short-term investments, aggregated $192,426,251 and
$207,676,868, respectively, including purchases and sales of U.S. Government
obligations of $45,646,200 and $51,504,331, respectively. For the year ended
April 30, 1995, the Fund paid brokerage commissions of $186,095 to Shufro, Rose
and Ehrman. The Distributor has advised the Fund that it received $75 from
shareholders as account opening fees for the year ended April 30, 1995. The
Manager has advised the Fund that, for the year ended April 30, 1995, it
incurred costs, which were reimbursed by the Fund, amounting to $108,373 for
performing internal accounting and transfer agency functions for the Fund.
The Funds have adopted an unfunded noncontributory pension plan (the "Plan")
covering all independent directors/trustees of the Funds who will have served as
an independent director/trustee for at least five years at the time of
retirement. Benefits under this plan are based on an annual amount equal to 75%
of the retainer fee at the time of retirement, plus 5% for each year of service
in excess of five years of service but not in excess of ten years of service.
Net periodic pension expense included in Trustees' fees, retirement plan
curtailment and other expenses in the Statement of Operations for the year ended
April 30, 1995 was $25,539. As indicated in Note 4, the Manager has entered into
an agreement which provides for the acquisition of the Manager by Signet.
Following the acquisition, the independent directors/trustees of the Funds will
not stand for re-election. As a result, the Plan was curtailed and additional
pension expense of $77,069 was recorded to reflect the previously unrecognized
prior service costs of independent directors/trustees. Included in accrued
expenses and other liabilities at April 30, 1995 is $102,608 of accrued pension
expense.
NOTE 6-Shares of Beneficial Interest:
<TABLE>
<CAPTION>
For the Year Ended For the Year Ended
April 30, 1995 April 30, 1994
------------------ ------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold ............................. 1,720,51 $ 17,005,687 4,135,745 $ 43,740,249
Reinvestment of dividends and
distributions .................. 219,892 2,049,709 949,799 9,754,435
---------- ------------ --------- ------------
1,940,403 19,055,396 5,085,544 53,494,684
Repurchased ...................... (3,905,396) (37,985,576) (2,622,307) (27,520,755)
---------- ------------ --------- ------------
Net increase (decrease) .......... (1,964,993) $(18,930,180) 2,463,237 $ 25,973,929
========== ============ ========= ============
</TABLE>
NOTE 7-Federal Income Tax:
Any capital loss incurred after October 31 through the end of the Fund's
taxable year is deemed to arise on the first day of the Fund's next taxable
year, if so elected. The Fund elected to defer a net capital loss of $1,793,511
and a currency loss of $136,506 incurred during such period in fiscal 1995.
17
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (continued)
As of April 30, 1995, the Fund had temporary book/tax differences primarily
attributable to wash sales and post-October capital less deferrals. To reflect
reclassifications arising from permanent book/tax differences for the year ended
April 30, 1995, paid-in-capital was charged $452,281, accumulated net investment
income was credited $1,233,886 and accumulated realized loss-net was debited
$781,605.
At April 30, 1995, the Fund had a net capital loss carryover of $293,056,
which is available through April 30, 2003 to offset future capital gains. To the
extent that these carryover losses are used to offset future capital gains, it
is probable that the gains so offset will not be distributed to shareholders.
NOTE 8-Financial Highlights:
Selected ratios and per share data for a share of beneficial interest
outstanding:
<TABLE>
<CAPTION>
For the Year Ended April 30,
-----------------------------------------------
Per Share Operating Performance: 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .................. $10.04 $10.00 $ 9.92 $ 9.64 $ 9.62
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ............................. .08 .03 .25 .33 .30
Net gains or losses on investments (both
realized and unrealized) ........................ (.19) 1.29 .32 .26 .14
------ ------ ------ ------ ------
Net income (loss)
from investment operations .................. (.11) 1.32 .57 .59 .44
------ ------ ------ ------ ------
Less dividends and distributions:
Dividends from investment income-net .............. - (.00) (.30) (.31) (.21)
Distributions from realized gains-net ............. - (1.28) (.19) - (.21)
Distributions in excess of net realized gains ..... (.22) - - - -
------ ------ ------ ------ ------
Change in net asset value ..................... (.33) .04 .08 .28 .02
Net asset value, end of year ........................ $ 9.71 $10.04 $10.00 $ 9.92 $ 9.64
====== ====== ====== ====== ======
Total return ........................................ (1.04%) 12.91% 6.08% 6.24% 4.61%
Ratios/Supplemental Data:
Net assets, end of year ($ Million) ............... $ 87 $110 $85 $128 $194
Ratio of expenses to average net assets ........... 2.51% 2.61% 2.40% 2.31% 2.36%
Ratio of net investment income of
average net assets .............................. .76% .67% 1.72% .31% 2.84%
Portfolio turnover ................................ 221% 166% 138% 109% 78%
</TABLE>
18
<PAGE>
BLANCHARD GLOBAL GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Blanchard Global Growth Fund
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Blanchard Global Growth Fund (the
"Fund") at April 30, 1995, 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 five years in the period
then ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at April
30, 1995 by correspondence with the custodian and brokers and the application of
alternative procedures where confirmations were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
June 20, 1995
19
<PAGE>
(Left Column)
Portfolio Advisers
Lombard Order International
Portfolio Mot., Ltd.
WLO Global Management
Custodian and Transfer Agent
United States Trust Company
of New York
Independent Accountants
Price Waterhouse LLP
Legal Counsel
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
Blanchard Short-Term
Global Income Fund
41 Madison Ave., 24th Floor
New York, NY 10010-2267
(Right Column)
Blanchard
Short-Term
Global Income
Fund
Annual Report
April 30, 1995
Managed by: Sheffield Management Company
41 Madison Ave., 24th Floor
New York, NY 10010-2267
1-800-922-7771
