ANCHOR
GOLD
& CURRENCY
TRUST
-----------------------------------
SEMI-ANNUAL REPORT
-----------------------------------
JUNE 30, 2000
(Unaudited)
1
<PAGE>
Anchor Gold and Currency Trust
Comparison of the Change in Value of a $10,000 Investment in the Anchor
Gold & Currency Trust, Gold Bullion and the XAU Index
[GRAPHIC OMITTED]
========================================
Anchor Gold & Currency Trust
Average Annual Total Return
========================================
Six
Months* 1 Year 5 Year 10 Year
4.44% (14.08%) (7.56%) (3.80%)
*Not Annualized for the period from December 31, 1999 to June 30, 2000.
2
<PAGE>
Anchor Gold and Currency Trust
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(Unaudited)
Assets:
Investments at quoted market value (cost $246,385;
see Schedule of Investments, Notes 1, 2, & 5)....... $246,385
Cash ................................................ 14,619
Dividends and interest receivable.................... 935
Other assets......................................... 1,809
-----------
Total assets..................................... 263,748
-----------
Liabilities:
Accrued expenses and other liabilities (Note 3)...... 80,796
-----------
Total liabilities................................ 80,796
-----------
Net Assets:
Capital stock (unlimited shares authorized at $1.00 par
value,amount paid in on 48,684 shares outstanding)
(Note 1)........................................... 8,961,384
Accumulated undistributed net investment
income (Note 1).................................... (1,655,033)
Accumulated realized loss from security transactions,
net (Note 1)......................................... (7,123,399)
Net unrealized depreciation in value of investments
(Note 2)............................................. 0
-----------
Net assets (equivalent to $3.76 per share, based
on 48,684 capital shares outstanding)............ $ 182,952
===========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
Anchor Gold and Currency Trust
CONSOLIDATED STATEMENT OF OPERATIONS
JUNE 30, 2000
(Unaudited)
Income:
Interest............................................ $ 8,136
-----------
Total income..................................... 8,136
-----------
Expenses:
Management fees (Note 3)............................ 640
Pricing and bookkeeping fees ....................... 0
Custodian fees...................................... 0
Trustees' fees and expenses......................... 0
Audit and accounting fees........................... 0
Legal fees.......................................... 0
Transfer fees (Note 4).............................. 0
Other expenses...................................... 0
-----------
Total expenses................................... 640
-----------
Net investment income................................ 7,496
-----------
Realized and unrealized loss on investments:
Realized loss on investments-net................... 0
Decrease in net unrealized appreciation in investments 0
-----------
Net loss on investments.......................... 0
-----------
Net decrease in net assets resulting from operations. $ 7,496
===========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
Anchor Gold and Currency Trust
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
JUNE 30, 2000
(Unaudited)
Six Months
Ended Year Ended
June 30, 2000 December 31,
(Unaudited) 1999
------------- ------------
From operations:
Net investment income................... $ 7,496 $ (32,743)
Realized loss on investments, net....... 0 (4,868,526)
Decrease in net unrealized
appreciation in investments........... 0 3,014,084
------------ ------------
Net decrease in
net assets resulting from operations.. 7,496 (1,887,185)
------------ ------------
Distributions to shareholders:
From net investment income ($0.20 per
share in 1998)........................... -- --
------------ ------------
Total distributions to shareholders.... -- --
------------ ------------
From capital share transactions:
Number of Shares
2000 1999
--------------------
Proceeds from sale of
shares.............. -- 13,889 -- 50,000
Shares issued to
shareholders in
distributions
reinvested.......... -- -- -- --
Cost of shares
redeemed............ (228) (3,001,873) (832) (10,720,730)
--------- -------- ------------ -------------
Increase (decrease)
in net assets
resulting
from capital
share transactions.. (228) (2,987,984) (832) (10,720,730)
=================== ---------- -------------
Net decrease in net assets............... 6,664 (12,557,915)
Net assets:
Beginning of period.................... 176,288 12,734,204
------------ ------------
End of period (including undistributed
net investment income of $(1,655,033)
and $(1,662,529), respectively).... $ 182,952 $ 176,289
============ ============
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
Anchor Gold and Currency Trust
CONSOLIDATED SELECTED PER SHARE DATA AND RATIOS
(for a share outstanding throughout each period)
Six Months
Ended
June 30, Year Ended December 31,
2000
(Unaudited) 1999 1998 1997 1996
-----------------------------------------------
Investment income.... $ (0.01) $240.39 $(0.19) $0.08 $0.03
Expenses, net........ 0.00 274.10 (0.09) 0.05 0.07
-----------------------------------------------
Net investment income (0.01) (33.71) (0.10) 0.03 (0.04)
(loss)...............
Net realized and
unrealized
gain (loss) on
investments.......... 0.17 33.12 (0.11) (1.68) 0.61
Distributions to
shareholders:
From net investment
income............. -- -- (0.20) (0.01) --
From net realized
gain on investments.. -- -- -- -- --
-----------------------------------------------
Net (decrease)
increase
in net asset value.. 0.16 (0.59) (0.41) (1.66) 0.57
Net asset value:
Beginning of period. 3.60 4.19 4.60 6.26 5.69
-----------------------------------------------
End of period....... $3.76 $3.60 $4.19 $4.60 $6.26
===============================================
Total Return......... 4.44% (14.08%) (4.57%) (26.36%) (10.02%)
Ratio of expenses to
average net assets.. 0.72% 2.53% 1.27% 1.12% 1.10%
Ratio of net
investment income
(loss) to average
net assets........... 8.39% (0.31%) 1.20% 0.78% (0.60%)
Portfolio turnover... 0.00 1.07 0.53 0.24 0.18
Average commission
rate paid............ 0.0000 0.0254 0.0403 0.0454 0.0389
Number of shares out-
standing at end of
period............... 48,684 48,912 3,036,896 2,919,774 3,688,612
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Anchor Gold and Currency Trust
CONSOLIDATED SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(Unaudited)
Value
Quantity (Note 1)
-------- --------
UNITED STATES TREASURY BILLS - 134.67%
$250,000 Treasury Bill, 5.72% yield,
maturing 09/07/00 (at cost)............................ 246,385
Total investments (cost $246,385).............. 246,385
----------
CASH & OTHER ASSETS, LESS LIABILITIES - (34.67)%........ (63,433)
----------
Total Net Assets............................... $182,952
==========
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
Anchor Gold and Currency Trust
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
(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, open-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. Options are valued in the same manner. Foreign
currencies and foreign denominated securities are translated at current
market exchange rates as of noon. Gold bullion is valued each day at noon
based on the New York spot gold price.
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. Income
and capital gains distributions are determined in accordance with federal
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts
based on their federal tax basis treatment; temporary differences do not
require such reclassification. During the current fiscal year, permanent
differences, primarily due to foreign currency gains increasing net
investment income, resulted in a net increase in undistributed net
investment income and a increase in accumulated realized loss from security
transactions. This reclassification had no affect on net assets.
C. Capital Stock-- The Trust records the sales and redemptions of its
capital stock on trade date.
8
<PAGE>
Anchor Gold and Currency Trust
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
(Unaudited)
(Continued)
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.
E. Foreign Currency-- Amounts denominated in or expected to settle in foreign
currencies are translated into United States dollars at rates reported by a
major Boston bank on the following basis:
1. Market value of investment securities, other assets and liabilities at
the 12:00 noon Eastern Time rate of exchange at the balance sheet date.
2. Purchases and sales of investment securities, income and expenses at the
rate of exchange prevailing on the respective dates of such transactions (or
at an average rate if significant rate fluctuations have not occurred).
The Trust does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Trust's books, and
the United States dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in
the value of assets and liabilities other than investments in securities at
fiscal year end, resulting from changes in the exchange rate.
2. Tax basis of investments:
At June 30, 2000, 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 $0. Aggregate gross unrealized
depreciation in investments in which there was an excess of tax cost over
market value was $646. Net unrealized depreciation in investments at June 30,
2000 was $646.
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, 2000, investment advisory fees of $235 were due
and 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.
9
<PAGE>
4. Certain transactions:
The Trust has entered into an agreement with Cardinal Investment Services,
Inc. for transfer agent and dividend disbursing agent services. Annual fees
for these services are $13,000.
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 $0 in brokerage commissions during the six months
ended June 30, 2000.
At meetings of the Board of Trustees on December 3, 1999 and March 8, 2000,
after discussions with the Trust's investment adviser, independent
accountant, counsel and administrator, the Board determined that the
continued operation of the Trust was not economically feasible or in the best
interests of the Trust or its shareholders. After careful consideration of
various alternatives, the full Board concluded that a prompt liquidation of
the Trust was the alternative that was in the best interests of the
shareholders of the Trust. The Board then unanimously approved the Plan of
Liquidation and Dissolution of the Trust and directed that it be submitted to
the Trust's shareholders for consideration. In approving the Plan of
Liquidation and Dissolution, the Board considered the impact of the
withdrawal of the Trust's largest shareholder on the asset base of the Trust
and the subsequent impact on the Trust's expense ratio. The Trustees approved
and ratified the creation of a reserve fund in the amount of $88,450 for the
purpose of satisfying any and all reasonable costs and expenses which may be
incurred by the Trust in liquidating its assets.
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities
on investments for the six months ended June 30, 2000 were:
Cost of securities acquired:
U.S. Government and investments backed by
such securities.......................... $ 492,848
Other investments......................... 0
-------------
$ 482,848
=============
Proceeds from sales and maturities:
U.S. Government and investments backed by
such securities.......................... $ 473,600
Other investments......................... 0
-------------
$ 473,600
=============
10
<PAGE>
Anchor Gold and Currency Trust
OFFICERS AND TRUSTEES
Ernie Butler Trustee
President, I.E. Butler Securities
Spencer H. Le Menager Trustee
President, Equity Inc.
David W.C. Putnam Chairman
President, F.L. Putnam and Trustee
Investment Management Company
J. Stephen Putnam Vice President and
President, Robert Thomas Securities Treasurer
David Y. Williams President, Secretary
President and Director, Meeschaert & Co., and Trustee
Inc.,; President and Director,
Anchor Investment Management Corporation
11
<PAGE>
Anchor Gold and Currency Trust
INVESTMENT ADVISER
Anchor Investment Management Corporation
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
(508) 831-1171
DISTRIBUTOR
Meeschaert & Co., Inc.
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
ADMINISTRATOR AND TRANSFER AGENT
Cardinal Investment Services, Inc.
579 Pleasant St., Suite 4, Paxton, Massachusetts 01612
(508) 831-1171
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street, Boston, Massachusetts 02116
INDEPENDENT PUBLIC ACCOUNTANT
Livingston & Haynes, P.C.
40 Grove St., Wellesley, Massachusetts 02482
LEGAL COUNSEL
Thorp Reed & Armstrong
One Riverfront Center, Pittsburgh, Pennsylvania 15222
This report is submitted for the general information of shareholders of the
Anchor Gold & Currency Trust. It is not authorized for distribution to
prospective investors unless accompanied or preceded by an effective
Prospectus for the Trust. The Prospectus includes more complete information
about management fees and expenses. Please read the Prospectus carefully.
12
<PAGE>
