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ANCHOR
GOLD AND
CURRENCY
TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
(UNAUDITED)
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ANCHOR GOLD AND CURRENCY TRUST
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CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(Unaudited)
Assets:
Investments at quoted market value (cost $16,318,412);
see Schedule of Investments, Notes 1, 2, & 5)....... $16,275,894
Cash ................................................ 3,768,874
Dividends and interest receivable.................... 7,636
Other assets......................................... 140,032
-----------
Total assets..................................... 20,192,436
-----------
Liabilities:
Accrued expenses and other liabilities (Note 3)...... 29,058
-----------
Total liabilities................................ 29,058
-----------
Net Assets:
Capital stock (9,829,269 shares of no par value stock
authorized, amount paid in on 3,688,612 shares
outstanding) (Note 1).............................. 22,869,568
Accumulated overdistributed net investment income.... (829,215)
Accumulated realized loss from security transactions,
net.................................................. (1,834,457)
Net unrealized depreciation in value of investments
(Note 2)............................................. (42,518)
-----------
Net assets (equivalent to $5.47 per share, based on
3,688,612 capital shares outstanding)........... $20,163,378
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ANCHOR GOLD AND CURRENCY TRUST
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CONSOLIDATED STATEMENT OF OPERATIONS
JUNE 30, 1997
(Unaudited)
Income:
Dividends........................................... $ 48,112
Interest............................................ 129,098
-----------
Total income..................................... 177,210
-----------
Expenses:
Management fees (Note 3)............................ 80,877
Pricing and bookkeeping fees (Note 4)............... 13,155
Audit and accounting fees........................... 7,383
Legal fees.......................................... 6,961
Custodian fees...................................... 4,365
Transfer fees (Note 4).............................. 1,990
Trustees' fees and expenses......................... 1,488
Other expenses...................................... 4,121
-----------
Total expenses................................... 120,340
Fees paid indirectly (Note 5)............... (597)
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Net expenses................................ 119,743
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Net investment income................................ 57,467
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Realized and unrealized loss on investments:
Realized loss on investments-net................... (1,537,885)
Increase in net unrealized depreciation in investments(1,441,533)
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Net loss on investments.......................... (2,979,418)
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Net decrease in net assets resulting from operations. $(2,921,951)
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ANCHOR GOLD AND CURRENCY TRUST
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CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended Year Ended
June 30, December 31,
1997 1996
(Unaudited)
------------------------------
From operations:
Net investment loss..................... $ 57,467 $ (142,863)
Realized gain (loss) on investments, net (1,537,885) 1,164,985
Increase in net unrealized
appreciation (depreciation) in
investments.............................. (1,441,533) 1,091,163
------------ ------------
Net increase (decrease) in
net assets resulting from operations.. (2,921,951) 2,113,285
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Distributions to shareholders:
From net investment income.............. -- --
------------ ------------
Total distributions to shareholders.. -- --
------------ ------------
From capital share transactions:
Number of Shares
1997 1996
--------------------
Proceeds from sale of
shares.............. -- -- -- --
Shares issued to
shareholders in
distributions
reinvested.......... -- -- -- --
Cost of shares
redeemed............ -- -- -- --
--------- -------- --------- ----------
Decrease in net
assets resulting
from capital
share transactions.. -- -- -- --
========= ========= --------- ----------
Net increase in net assets............... (2,921,951) 2,113,285
Net assets:
Beginning of period.................... 23,085,329 20,972,044
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End of period (including overdistributed
net investment income of $829,215
and $886,682, respectively)........ $20,163,378 $23,085,329
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ANCHOR GOLD AND CURRENCY TRUST
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CONSOLIDATED SELECTED PER SHARE DATA AND RATIOS
(for a share outstanding throughout each period)
Six
Months
Ended
June 30,
1997 Year Ended December 31,
(Unaudited) 1996 1995 1994 1993
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Investment income.... $(0.05) $0.03 $0.04 $0.03 $0.02
Expenses, net........ (0.03) 0.07 0.06 0.09 0.06
-------- -------- ------- ------- -------
Net investment (loss).. 0.02 (0.04) (0.02) (0.06) (0.04)
Net realized and
unrealized gain (loss)
on investments....... (0.81) 0.61 0.11 (0.90) 2.16
Distributions to
shareholders:
From net investment
income............. -- -- -- -- --
From net realized
gain on investments.. -- -- -- -- --
------ -------- -------- -------- -------
Net increase
(decrease)in net
asset value........... (0.79) 0.57 0.09 (0.96) 2.12
Net asset value:
Beginning of period... 6.26 5.69 5.60 6.56 4.44
===============================================
End of period....... $5.47 $6.26 $5.69 $5.60 $6.56
===============================================
Ratio of expenses to
average net assets... 1.10% 1.10% 1.10% 1.12% 1.13%
Ratio of net
investment (loss) to
average net assets... 0.53% (0.60%) (0.47%) (0.68%) (0.76%)
Portfolio turnover... 0.07 0.18 0.17 0.32 0.35
Number of shares out-
standing at end of
period.............. 3,688,612 3,688,612 3,688,612 3,688,612 4,164,416
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ANCHOR GOLD AND CURRENCY TRUST
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CONSOLIDATED SCHEDULE OF INVESTMENTS
JUNE 30, 1997
(Unaudited)
Value
Quantity (Note 1)
COMMON STOCKS -- 40.73%
Gold/Silver Mining Stocks
140,000 Aquiline Resources Incorporated................ $ 61,600
50,000 Cambior Incorporated........................... 557,500
10,000 Canabrava Diamond Corporation.................. 25,400
45,000 Euro Nevada Mining Corporation Limited......... 1,368,900
32,100 Franco Nevada Mining Corporation............... 1,606,605
32,862 Freeport Mcmoran Copper & Gold Class A......... 881,129
94,300 Golden Star Resources Limited.................. 772,129
160,000 Guyanor Ressources SA.......................... 468,800
220,000 Miramar Mining Corporation..................... 796,400
71,000 Normandy Mining Ltd. ADR....................... 383,400
109,200 Northern Orion Exploration Limited............. 392,028
10,000 Southwestern Gold Corporation.................. 63,400
159,900 Universal Gold Limited......................... 663,585
350,000 War Eagle Mining Company Incorporated.......... 171,500
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Total common stocks (cost $7,754,855).......... 8,212,376
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FOREIGN TIME DEPOSITS -- 32.39%
38,389,70French Franc, maturing 07/04/97, at 3.10%
(cost $6,553,122).................................... $ 6,530,088
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PRECIOUS METALS -- 6.99%
Bullion -- 6.16%
3,704 Ounces gold bullion............................ 1,243,463
Coins -- 0.83%
475 Canadian Maple Leafs........................... 166,582
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Total precious metals (cost $1,887,050)........ 1,410,045
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U.S. TREASURY BILLS -- 0.61%..
125,000 Treasury Bill, 5.18% yield, maturing 8/28/97
(at cost)...................................... 123,385
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Total investments (cost $16,318,412)........... 16,275,894
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CASH & OTHER ASSETS, LESS LIABILITIES -- 19.28% 3,887,484
==========
Total Net Assets............................... $20,163,378
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ANCHOR GOLD AND CURRENCY TRUST
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. Significant accounting policies:
Anchor Gold and Currency Trust, a Massachusetts business trust (the "Trust"),
is registered under the Investment Company Act of 1940, as amended, as a
non-diversified, closed-end investment management company. The following is a
summary of significant accounting policies followed by the Trust which are in
conformity with those generally accepted in the investment company industry.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. A. Investment securities--
Security transactions are recorded
on the date the investments are purchased or sold. Each day, at noon,
securities traded on national security exchanges are valued at the last sale
price on the primary exchange on which they are listed, or if there has been
no sale by noon, at the current bid price. Other securities for which market
quotations are readily available are valued at the last known sales price,
or, if unavailable, the known current bid price which most nearly represents
current market value. The gold bullion is valued each day at noon based on
the New York spot gold price. The gold coins are valued based on valuations
published in the Wall Street Journal. Temporary cash investments are stated
at cost, which approximates market value. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. Gains
and losses from sales of investments are calculated using the "identified
cost" method for both financial reporting and federal income tax purposes.
B. Income Taxes-- The Trust has elected to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute each year all of its taxable income to its shareholders. No
provision for federal income taxes is necessary since the Trust intends to
qualify for and elect the special tax treatment afforded a "regulated
investment company" under subchapter M of the Internal Revenue Code.
C. Capital Stock-- The Trust records the sales and redemptions
of its capital stock on trade date.
D. Principles of Consolidation-- The consolidated statements include the
consolidated operations of Anchor Gold & Currency Limited of which the Trust
owns all outstanding shares. Intercompany receivables, payables and
transactions have been eliminated.
2. Tax basis of investments:
At June 30,1997, the total cost of investments for federal income tax
purposes was identical to the total cost on a financial reporting basis.
Aggregate gross unrealized appreciation in investments in which there was an
excess of market value over tax cost was $1,925,880. Aggregate gross
unrealized depreciation in investments in which there was an excess of tax
cost over market value was $1,968,398. Net unrealized appreciation in
investments at June 30,1997 was $42,518.
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ANCHOR GOLD AND CURRENCY TRUST
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
(Continued)
3. Investment advisory service agreements:
The investment advisory contract with Anchor Investment Management
Corporation (the "investment adviser") provides that the Trust will pay the
adviser a fee for investment advice based on 3/4 of 1% per annum of average
daily net assets. At June 30,1997, investment advisory fees of $13,207 were
due which were included in "Accrued expenses and other liabilities" in the
accompanying Consolidated Statement of Assets and Liabilities. David Y.
Williams, a Trustee of the Trust, is President and a Director of the
Investment Adviser.
4. Certain transactions:
Anchor Investment Management Corporation provides transfer agent services for
the Trust. Fees earned by Anchor Investment Management Corporation for
transfer agent services for the six months ended June 30, 1997 were $1,990.
Certain officers and trustees of the Trust are directors and/or officers of
the investment adviser and distributor. Meeschaert & Co., Inc. the Trust's
distributor received $27,197 in brokerage commissions during the six months
ended June 30, 1997. Fees earned by Anchor Investment Management Corporation
for expenses related to daily pricing of the Trust shares and for bookkeeping
services for the six months ended June 30, 1997 were $13,155. For the six
months ended June 30, 1997 the total expense increase, as shown in the
statement of operations, is $597 as a result of an expense offset arrangement
with its custodian, Investors Bank & Trust Company. The Trust could have
invested the assets used by the custodian in an income producing asset if it
had not agreed to a reduction in fees under the expense offset arrangement.
In addition, the expense ratios in the Selected Per Share Data and ratios are
based on the total expenses, which include amounts that would have been paid
in lieu of an expense offset arrangement
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities on
investments for the six months ended June 30, 1997 were:
Cost of securities acquired:
U.S. Government and investments backed by
such securities $ 7,624,279
Other investments....................... 74,408,023
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$ 82,032,302
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Proceeds from sales and maturities:
U.S. Government and investments backed by
such securities $ 7,500,894
Other investments....................... 72,282,217
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$ 79,783,111
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ANCHOR GOLD AND CURRENCY TRUST
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OFFICERS AND TRUSTEES
DAVID W.C. PUTNAM Chairman
Chairman, Board of Directors, F.L. Putnam and Trustee
Investment Management Corporation
President and Director, F.L. Putnam
Securities Company Incorporated
J. STEPHEN PUTNAM Vice President and
President, Robert Thomas Securities Treasurer
SPENCER H. LE MENAGER Secretary
President, Equity Inc. and Trustee
MAURICE A. DONAHUE Trustee
Director and Professor, Institute for
Governmental Services and
Walsh-Saltonstall Professor of Practical
Politics, University of Massachusetts
DAVID Y. WILLIAMS President
President and Director, Meeschaert & Co., and Trustee
Inc., President and Director,
Anchor Investment Management Corporation
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ANCHOR GOLD AND CURRENCY TRUST
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INVESTMENT ADVISER AND TRANSFER AGENT
Anchor Investment Management Corporation
2717 Furlong Rd., Doylestown, Pennsylvania 18901
(215) 794-2980
DISTRIBUTOR
Meeschaert & Co., Inc.
2717 Furlong Rd., Doylestown, Pennsylvania 18901
CUSTODIAN
Investors Bank & Trust Company
89 South Street, Boston, Massachusetts 02111
INDEPENDENT PUBLIC ACCOUNTANT
Livingston & Haynes, P.C.
40 Grove St., Wellesley, Massachusetts 02181
LEGAL COUNSEL
Yukevich, Blume, Marchetti & Zangrilli
One Gateway Center, Pittsburgh, Pennsylvania 15222
