THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
PRESIDENT'S MESSAGE
- - --------------------------------------------------------------------------
DEAR SHAREHOLDER:
The management of the Rodney Square Multi-Manager Fund (the "Fund") would
like to report to you on the Fund's activity and results for the first half of
1995.
PERFORMANCE REVIEW*
The first half of 1995 has proven rewarding for the Fund's shareholders.
The total return numbers presented below represent changes in market value, plus
any income or capital gains distributed during the period, assuming
distributions have been reinvested and do not reflect the effect of a sales
load.
NET ASSET CAPITAL NET ASSET TOTAL RETURN
VALUE AS OF GAINS & INCOME VALUE AS 12/31/94-6/30/95
PORTFOLIO 12/31/94 DISTRIBUTED OF 6/30/95 (NON-ANNUALIZED)
- - --------- -------------- -------------- ------------- ----------------
GROWTH $15.14 $0.00 $17.56 15.98%
GROWTH AND INCOME 8.33 0.06 9.50 14.79
The resurgence of technology and finance issues and the dampening of the
inflation threat has lead to a dramatic increase in the equity markets. The
Standard & Poor's 500 Index (the "S&P 500"), an unmanaged, capitalization
weighted index of five hundred publicly traded stocks, returned 20.2% for the
first six months of 1995. The Russell 2000 Index (the "Russell 2000") returned
14.4% for the same period. The Russell 2000 is comprised of the smallest 2,000
stocks of the largest 3,000 U.S. companies based on market capitalization.
Among mutual funds with similar strategies, the Growth Portfolio was up 15.98%
versus 17.46% for Lipper Analytical Services' ("Lipper") growth fund category
for the period. The Growth and Income Portfolio's return of 14.79% compares to
the Lipper growth and income fund category's return of 16.45% for the period.
The recovery of the equity markets in the United States has been driven by
lower interest rates, expectations of low inflation, and a stronger than
expected economy that has produced good earnings and profits. In particular,
for the first six months, the equity markets have seen a tremendous increase in
the prices of financial services and technology issues. Lipper's science and
technology fund category has returned 27.6% since the beginning of the year.
This increase has been caused, in some part, by the weak dollar which makes U.S.
products, including technology products, more attractive to overseas markets.
In addition, there is a growing perception that these products will play an
increasingly important role in almost every aspect of business, education,
health and leisure activity.
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
THE GROWTH PORTFOLIO
The advisers of the Growth Portfolio took advantage of positive movements
in technology issues. Frontier Capital Management Co. ("Frontier") had a 46.1%
position in technology issues as of June 30, 1995. Since the beginning of the
year, Frontier held a number of the strong technology issues that have led the
market so far this period, including Cirrus Logic, Inc. and Lattice
Semiconductor Corp. In addition, the Portfolio benefited from Frontier's
holdings in other small capitalization technology issues, retail and apparel,
and drug and hospital issues which took advantage of the general move in equity
issues since December 31, 1994. William Blair & Co. ("Blair") also took
advantage of the move in technology stocks with positions in software
developers, Microsoft Corp. and XILINX, Inc. The combined overweighting in
technology issues helped the Growth Portfolio to outperform the Russell 2000
through the first six months of 1995.
GROWTH AND INCOME PORTFOLIO
Parallel to small capitalization technology issues, large capitalization
technology issues also had a successful first six months. Moreover, large
capitalization financial issues benefited from continuing merger and acquisition
activity in that sector. The advisers of the Growth and Income Portfolio took
advantage of the moves in these issues by overweighting both sectors. Sirach
Capital Management, Inc. ("Sirach"), since the beginning of the year, has held
such issues as Hewlett Packard Co. and Computer Associates International, Inc.
Sirach also held financial issues such as Citicorp and Midlantic Corporation,
Inc. WEDGE Capital Management also benefited from these sectors with positions
in Intel Corp., Chemical Banking Corp. and Comerica, Inc. Using screens for
earnings and valuation, both advisers of the Portfolio took advantage of the
quick movement that occurred in large capitalization stocks during the first
half of 1995.
GROWTH PORTFOLIO ADVISER CHANGE
As reported in our December 31, 1994 Annual Report, Spears, Benzak, Soloman
& Farrell ("Spears") ceased providing advisory services to the Growth Portfolio,
effective March 31, 1995. Rodney Square Management Corp. ("RSMC") decided not
to replace Spears, but, in an effort to accentuate the Portfolio's exposure to
the smaller capitalization orientation currently employed by the Portfolio's two
remaining advisers, the assets of Spears were reallocated to Frontier and Blair.
The reallocation process was completed by March 31, 1995.
SUMMARY
The Portfolios' ten largest holdings on June 30, 1995 are listed below.
2
<PAGE>
GROWTH PORTFOLIO GROWTH AND INCOME PORTFOLIO
(TOP TEN AS A % OF TOTAL (TOP TEN AS A % OF TOTAL
ASSETS: 19.5%) ASSETS: 13.8%)
------------------------ ---------------------------
Automatic Data Processing Williams Companies, Inc.
Scherer (R.P.) Corp. Caterpillar, Inc.
Molex Inc., Class A Rockwell Int'l Companies
Wal-Mart Stores, Inc. Int'l Business Machines Corp.
Maxim Integrated Products, Inc. Mallinckrodt Group, Inc.
Cirrus Logic, Inc. Xerox Corp.
First Data Corp. Tenneco Inc.
Analog Devices First Union Corp.
Household International, Inc. Goodyear Tire & Rubber Co.
Symbol Technologies, Inc. KeyCorp
1995 has proven the ability of equity markets to rebound quickly and
without warning from poor performance. The multi-manager format of each
Portfolio allows shareholders to enjoy broad participation through investment in
both large and small capitalization stocks and through different management
styles. Looking forward for the rest of 1995, we are confident that the
strategy will deliver superior performance for investors. In its role as fund
manager, RSMC will continue to review and evaluate the individual advisers in an
effort to deliver consistent above average performance for our shareholders.
We invite your questions and comments, and we thank you for your investment
in the Rodney Square Multi-Manager Fund. We look forward to reviewing our
investment outlook and strategy with you in our next report to shareholders.
Sincerely,
/s/ Peter J. Succoso
Peter J. Succoso
President
August 14, 1995
* PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL VALUES MAY FLUCTUATE, SO THAT, WHEN
REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. AN
INVESTMENT IN THE PORTFOLIOS IS NEITHER INSURED NOR GUARANTEED BY
WILMINGTON TRUST COMPANY OR ANY OTHER BANKING INSTITUTION, THE U.S.
GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. THE TOTAL RETURNS DO NOT REFLECT THE
EFFECT OF THE MAXIMUM SALES LOAD OF 4.00%. SOME RETURNS ARE HIGHER DUE TO
THE MANAGER'S MAINTENANCE OF EXPENSES. SEE FINANCIAL HIGHLIGHTS ON PAGES
24-27.
3
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND / GROWTH PORTFOLIO
- - -------------------------------------------------------
INVESTMENTS / JUNE 30, 1995 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
- - --------------------------------------------------------------------------------
PAR VALUE
(000) (NOTE 2)
----- --------
REPURCHASE AGREEMENTS -- 2.0%
With C.S. First Boston Group, Inc. at 6.20%,
dated 06/30/95, to be repurchased at
$1,222,831 on 07/03/95, collateralized by
$1,255,000 Federal National Mortgage
Association Discount Notes, due 07/10/95.
(COST $1,222,200)........................... $1,222 $1,222,200
----------
SHARES
------
COMMON STOCK -- 98.2%
CONTRACT CONSTRUCTION -- 0.2%
Continental Homes Holding Corp................ 7,600 132,050
----------
FINANCE, INSURANCE & REAL ESTATE -- 8.7%
INSURANCE CARRIERS -- 0.8%
Mid Atlantic Medical Services, Inc.*.......... 10,500 194,250
NAC Re Corp............... 8,600 267,675
----------
461,925
----------
PERSONAL CREDIT INSTITUTIONS -- 2.4%
Advanta Corp., Class B........................ 10,000 377,500
Household International, Inc.................. 22,000 1,089,000
----------
1,466,500
----------
SAVINGS, CREDIT & OTHER FINANCIAL
INSTITUTIONS -- 1.8%
Federal Home Loan Mortgage Corp............... 8,000 550,000
MBNA Corp..................................... 15,000 506,250
----------
1,056,250
----------
The accompanying notes are an integral part of the financial statments.
4
<PAGE>
SECURITY & COMMODITY BROKERS, DEALERS &
SERVICES -- 2.2%
Alex Brown, Inc............................... 12,700 527,050
Raymond James Financial, Inc.................. 42,193 817,489
----------
1,344,539
----------
STATE & NATIONAL BANKS -- 1.5%
State Street Boston Corp...................... 25,000 921,875
----------
TOTAL FINANCE, INSURANCE & REAL ESTATE............... 5,251,089
----------
MANUFACTURING -- 43.6%
CHEMICALS & ALLIED PRODUCTS -- 2.2%
Air Products and Chemicals, Inc............... 20,000 1,115,000
Cambrex Corp.................................. 5,700 192,374
----------
1,307,374
----------
COMMUNICATION EQUIPMENT -- 1.8%
Harman International Industries, Inc.......... 18,000 729,000
Pittway Corp., Class A........................ 7,400 338,550
----------
1,067,550
----------
COMPUTER & OFFICE EQUIPMENT -- 7.1%
Augat, Inc.................................... 24,200 496,100
Chipcom Corp.*................................ 13,000 308,750
Cirrus Logic, Inc.*........................... 18,400 1,153,450
Digi International, Inc.*..................... 20,300 461,825
Inmac Corp.*.................................. 17,000 125,375
Intel Corp.................................... 12,000 759,750
Norand Corp.*................................. 15,000 611,250
Zebra Technologies Corp., Class A*............ 6,000 319,500
----------
4,236,000
----------
GLASS, CONCRETE & OTHER PRODUCTS -- 1.4%
Illinois Tool Works, Inc...................... 15,000 825,000
----------
LUMBER -- 0.7%
TJ International, Inc......................... 21,900 410,625
----------
The accompanying notes are an integral part of the financial statments.
5
<PAGE>
MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT
& SUPPLIES -- 12.1%
Analog Devices, Inc.*......................... 33,150 1,127,100
Genlyte Group, Inc.*.......................... 14,600 84,863
GenRad, Inc.*................................. 23,000 175,375
International Imaging Materials, Inc.*........ 6,500 165,750
Komag, Inc.*.................................. 8,000 416,000
Lattice Semiconductor Corp.*.................. 21,450 737,344
Maxim Integrated Products, Inc.*.............. 23,400 1,193,400
Microchip Technology, Inc.*................... 13,700 498,337
Molex, Inc., Class A.......................... 33,000 1,204,500
Symbol Technologies, Inc.*.................... 27,000 1,036,125
Whittaker Corp.*.............................. 6,100 134,200
Windmere Corp. Warrants*...................... 131 98
Xilinx, Inc.*................................. 5,000 470,000
----------
7,243,092
----------
MISCELLANEOUS INDUSTRIAL MACHINERY
& EQUIPMENT -- 0.6%
Oak Industries, Inc.*......................... 6,400 164,800
Tower Automotive, Inc.*....................... 7,900 82,950
Varco International, Inc.*.................... 11,500 94,875
----------
342,625
----------
MISCELLANEOUS MANUFACTURING INDUSTRIES -- 1.6%
ACX Technologies, Inc.*....................... 10,100 421,675
Cavalier Homes, Inc........................... 4,500 52,875
Newell Co..................................... 20,000 490,000
----------
964,550
----------
PAPER & PAPER PRODUCTS -- 0.3%
Shorewood Packaging Corp.*.................... 13,000 190,125
----------
PHARMACEUTICAL PREPARATIONS -- 5.2%
A. L. Pharma, Inc., Class A................... 12,800 240,000
Abbott Laboratories........................... 19,000 769,500
Anika Research, Inc.*......................... 4,140 9,574
Elan Corp. plc, ADS*.......................... 18,000 733,500
Medchem Products, Inc.*....................... 13,800 119,025
Scherer (R.P.) Corp.*......................... 29,000 1,225,250
----------
3,096,849
----------
The accompanying notes are an integral part of the financial statments.
6
<PAGE>
PRECISION INSTRUMENTS & MEDICAL SUPPLIES -- 4.2%
Advanced Technology Laboratories, Inc.*....... 17,600 277,200
Cognex Corp.*................................. 7,500 301,875
Gelman Sciences, Inc.*........................ 5,500 103,812
Haemonetics Corp.*............................ 18,400 354,200
Nellcor, Inc.*................................ 15,000 675,000
SCI Systems, Inc.*............................ 14,300 357,500
Spacelabs Medical, Inc.*...................... 17,600 446,600
----------
2,516,187
----------
PRINTING & PUBLISHING -- 0.6%
Wallace Computer Services, Inc................ 10,000 383,750
----------
RUBBER & PLASTICS -- 1.7%
Hanna (M.A.) Co............................... 40,000 1,040,000
----------
TELECOMMUNICATIONS EQUIPMENT -- 0.2%
Symmetricon, Inc.*............................ 7,000 152,250
----------
TEXTILES & APPAREL -- 1.4%
Authentic Fitness Corp.*...................... 10,000 167,500
Cintas Corp................................... 5,000 177,500
Fieldcrest Cannon, Inc.*...................... 14,200 307,075
Interface, Inc., Class A...................... 13,400 167,500
----------
819,575
----------
TRANSPORTATION EQUIPMENT -- 2.5%
Automotive Industries Holding, Inc.*.......... 13,500 366,188
OEA, Inc...................................... 30,000 888,750
Superior Industries International, Inc........ 7,675 238,884
----------
1,493,822
----------
TOTAL MANUFACTURING.................................. 26,089,374
----------
MINING -- 3.8%
CRUDE PETROLEUM & NATURAL GAS -- 1.1%
Benton Oil & Gas Co.*......................... 7,900 109,613
Devon Energy Corp............................. 12,900 277,350
Pogo Producing Co............................. 12,000 274,500
----------
661,463
----------
The accompanying notes are an integral part of the financial statments.
7
<PAGE>
MISCELLANEOUS METAL ORES -- 2.2%
Amcol International Corp...................... 14,300 228,800
Minerals Technologies, Inc.................... 30,000 1,080,000
----------
1,308,800
----------
OIL & GAS EXPLORATION -- 0.5%
HS Resources, Inc.*........................... 13,200 184,800
Newpark Resources, Inc.*...................... 4,300 90,300
----------
275,100
----------
TOTAL MINING......................................... 2,245,363
----------
SERVICES -- 23.3%
BUSINESS SERVICES -- 3.2%
Enterra Corp.*................................ 9,400 197,400
Norrell Corp.................................. 12,000 228,000
PMT Services, Inc.*........................... 6,700 105,525
Reuters Holding plc, ADS...................... 15,000 751,875
SPS Transaction Services, Inc.*............... 8,900 308,163
The Olsten Corp............................... 10,000 327,500
----------
1,918,463
----------
COMPUTER SERVICES -- 14.4%
Acxiom Corp.*................................. 25,100 599,263
Automatic Data Processing, Inc................ 20,000 1,257,500
Banyan Systems, Inc.*......................... 9,100 125,125
Boole & Babbage, Inc.*........................ 6,600 198,000
Broadway & Semour, Inc.*...................... 9,400 195,050
Ceridian Corp.*............................... 17,700 652,688
Computer Task Group, Inc...................... 2,700 37,800
CUC International, Inc.*...................... 15,000 630,000
First Data Corp............................... 20,000 1,137,500
Fiserv, Inc.*................................. 23,412 658,463
Hyperion Software Corp.*...................... 6,700 303,175
Marcam Corp.*................................. 16,000 218,000
MDL Information Systems, Inc.*................ 10,200 151,725
Microsoft Corp.*.............................. 10,000 903,750
Network Equipment Technologies, Inc.*......... 15,400 365,750
Shared Medical Systems Corp................... 12,000 481,500
Sungard Data Systems, Inc.*................... 11,900 621,775
XcelleNet, Inc.*.............................. 4,700 109,274
----------
8,646,338
----------
The accompanying notes are an integral part of the financial statments.
8
<PAGE>
FINANCE SERVICES -- 1.7%
First Financial Management Corp............... 12,000 1,026,000
----------
MEDICAL & HEALTH SERVICES -- 2.8%
Healthsouth Rehabilitation Corp.*............. 34,000 590,750
Healthwise of America, Inc.*.................. 7,050 179,774
Interim Services, Inc.*....................... 17,900 447,500
OrNda Healthcorp*............................. 25,600 438,400
----------
1,656,424
----------
PERSONAL SERVICES -- 0.5%
Stewart Enterprises, Inc., Class A............ 9,700 324,950
----------
SANITARY SERVICES -- 0.7%
ABM Industries, Inc........................... 8,000 185,000
United Waste Systems, Inc.*................... 6,300 226,800
----------
411,800
----------
TOTAL SERVICES....................................... 13,983,975
----------
TRANSPORTATION, COMMUNICATION, ELECTRIC & SANITATION -- 3.8%
COMMUNICATION & BROADCASTING -- 1.0%
Airtouch Communications, Inc.*................ 18,000 513,000
SFX Broadcasting, Inc., Class A*.............. 3,700 98,975
----------
611,975
----------
ELECTRIC, GAS & WATER UTILITIES -- 0.2%
Southwestern Energy Co........................ 8,000 111,000
----------
TRANSPORTATION -- 2.6%
Air Express International Corp................ 29,925 703,238
American Medical Response, Inc.*.............. 6,100 170,800
Covenant Transport, Inc., Class A*............ 6,000 78,000
PST Vans, Inc.*............................... 4,000 25,250
TNT Freightways Corp.......................... 30,000 596,250
----------
1,573,538
----------
TOTAL TRANSPORTATION, COMMUNICATION, ELECTRIC
& SANITATION.................................... 2,296,513
----------
The accompanying notes are an integral part of the financial statments.
9
<PAGE>
WHOLESALE & RETAIL TRADE -- 14.8%
MISCELLANEOUS RETAIL STORES -- 2.2%
Best Buy Co., Inc.*........................... 21,500 572,438
Discount Auto Parts, Inc.*.................... 9,400 238,525
Just For Feet, Inc.*.......................... 5,050 201,369
Sports & Recreation, Inc.*.................... 19,050 250,031
Trend-Lines, Inc., Class A*................... 5,100 76,500
----------
1,338,863
----------
RETAIL APPAREL & ACCESSORY STORES -- 0.6%
AnnTaylor Stores, Inc.*....................... 15,000 348,750
----------
RETAIL BUILDING MATERIALS -- 1.4%
Home Depot, Inc............................... 20,000 812,500
----------
RETAIL DEPARTMENT STORES -- 2.0%
Wal-Mart Stores, Inc.......................... 45,000 1,203,750
----------
RETAIL EATING & DRINKING PLACES -- 0.7%
Applebee's International, Inc. Rights*........ 17,000 437,750
----------
RETAIL FOOD STORES -- 0.7%
Walgreen Co................................... 8,000 401,000
----------
WHOLESALE CHEMICALS & DRUGS -- 1.3%
AmeriSource Distribution Corp., Class A*...... 6,900 157,406
Cardinal Health, Inc.......................... 12,616 596,106
----------
753,512
----------
WHOLESALE ELECTRONIC EQUIP. & COMPUTERS -- 2.6%
Arrow Electronics, Inc.*...................... 15,700 781,075
Daisytek International Corp.*................. 5,000 110,000
Tech Data Corp.*.............................. 43,800 500,963
Wyle Electronics.............................. 4,900 137,812
----------
1,529,850
----------
WHOLESALE MACHINERY -- 0.7%
Airgas, Inc.*................................. 15,000 403,125
----------
The accompanying notes are an integral part of the financial statments.
10
<PAGE>
WHOLESALE MISCELLANEOUS -- 2.6%
Alco Standard Corp............................ 11,000 878,625
Grainger (W.W.), Inc.......................... 12,000 705,000
----------
1,583,625
----------
TOTAL WHOLESALE & RETAIL TRADE.................. 8,812,725
----------
TOTAL COMMON STOCK (COST $40,316,323)........... 58,811,089
----------
TOTAL INVESTMENTS -- 100.2%
(COST $41,538,523)**...................................... 60,033,289
OTHER ASSETS AND LIABILITIES,
NET -- (0.2)%.............................................. (129,383)
----------
NET ASSETS -- 100.0%............................................ $59,903,906
===========
* Non-income producing security.
** Cost for federal income tax purposes (Note 3).
The accompanying notes are an integral part of the financial statments.
11
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND / GROWTH AND INCOME PORTFOLIO
- - ------------------------------------------------------------------
INVESTMENTS / JUNE 30, 1995 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
- - --------------------------------------------------------------------------------
PAR VALUE
(000) (NOTE 2)
----- --------
REPURCHASE AGREEMENTS -- 24.2%
With C.S. First Boston Group, Inc. at 6.20%,
dated 06/30/95, to be repurchased at
$1,731,694 on 07/03/95, collateralized by
$845,000 Federal Farm Credit Bank Discount
Notes with various maturities to 11/21/95,
and $945,000 Federal National Mortgage
Association Discount Notes, 07/10/95
(COST $1,730,800)........................... $1,731 $1,730,800
----------
SHARES
------
COMMON STOCK -- 76.8%
CONTRACT CONSTRUCTION -- 1.6%
Caterpillar, Inc.............................. 1,800 115,650
----------
FINANCE, INSURANCE & REAL ESTATE -- 13.3%
INSURANCE CARRIERS -- 4.5%
Aflac, Inc.................................... 1,300 56,875
American General Corp......................... 1,300 43,875
American International Group, Inc............. 500 57,000
Exel Ltd...................................... 400 20,800
Foundation Health Corp.*...................... 1,200 32,400
MGIC Investment Corp.......................... 500 23,437
St. Paul Companies, Inc....................... 800 39,400
USF&G Corp.................................... 3,000 48,750
----------
322,537
----------
SAVINGS, CREDIT & OTHER FINANCIAL INSTITUTIONS -- 1.8%
MBNA Corp..................................... 1,500 50,625
Mercury Finance Co.*.......................... 1,500 28,875
Standard Federal Bancorporation............... 500 16,812
Washington Federal, Inc....................... 1,392 30,624
----------
126,936
----------
The accompanying notes are an integral part of the financial statments.
12
<PAGE>
STATE & NATIONAL BANKS -- 7.0%
Bank of Boston Corp........................... 1,000 37,500
Capital One Financial Corp.................... 2,000 39,000
Chemical Banking Corp......................... 1,000 47,250
Citicorp...................................... 600 34,725
Comerica, Inc................................. 1,500 48,187
First Bank Systems, Inc....................... 1,300 53,300
First Union Corp.............................. 2,000 90,500
KeyCorp....................................... 2,500 78,437
Midlantic Corp................................ 400 16,000
Suntrust Banks, Inc........................... 1,000 58,250
----------
503,149
----------
TOTAL FINANCE, INSURANCE & REAL ESTATE............... 952,622
----------
MANUFACTURING -- 37.3%
CHEMICALS & ALLIED PRODUCTS -- 5.6%
Air Products and Chemicals, Inc............... 900 50,175
Amgen, Inc.*.................................. 700 56,306
Eastman Chemical Co........................... 800 47,600
FMC Corp.*.................................... 800 53,800
Mallinckrodt Group, Inc....................... 2,700 95,850
Praxair, Inc.................................. 1,000 25,000
Rohm & Haas Co................................ 1,300 71,337
----------
400,068
----------
COMPUTER & OFFICE EQUIPMENT -- 4.7%
Bay Networks, Inc.*........................... 1,500 62,062
Hewlett Packard Co............................ 400 29,800
Intel Corp.................................... 800 50,650
International Business Machines Corp.......... 1,000 96,000
Xerox Corp.................................... 800 93,800
----------
332,312
----------
FOOD & BEVERAGE -- 2.4%
Archer-Daniels-Midland Co..................... 2,800 52,150
Campbell Soup Co.............................. 200 9,800
ConAgra, Inc.................................. 1,500 52,312
PepsiCo, Inc.................................. 1,300 59,312
----------
173,574
----------
The accompanying notes are an integral part of the financial statments.
13
<PAGE>
GLASS, CONCRETE & OTHER PRODUCTS -- 0.3%
Premark International, Inc.................... 400 20,750
----------
IRON & STEEL -- 1.0%
British Steel plc, ADS........................ 2,700 74,925
----------
LUMBER -- 0.6%
Georgia Pacific Corp.......................... 500 43,375
----------
MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT
& SUPPLIES -- 2.9%
Black & Decker Corp........................... 1,000 30,875
General Electric Co........................... 1,000 56,375
Loral Corp.................................... 800 41,400
Raytheon Co................................... 1,000 77,625
----------
206,275
----------
MISCELLANEOUS INDUSTRIAL MACHINERY
& EQUIPMENT -- 0.4%
Case Corp..................................... 500 14,875
Deere & Co.................................... 200 17,125
----------
32,000
----------
MISCELLANEOUS MANUFACTURING INDUSTRIES -- 2.3%
Gillette Co................................... 1,000 44,625
Newell Co..................................... 2,000 49,000
Procter & Gamble Co........................... 1,000 71,875
----------
165,500
----------
PAPER & PAPER PRODUCTS -- 2.9%
Boise Cascade Corp............................ 1,400 56,700
International Paper Co........................ 500 42,875
Mead Corp..................................... 800 47,500
Weyerhaeuser Co............................... 1,200 56,550
----------
203,625
----------
PETROLEUM REFINING -- 2.0%
Atlantic Richfield Co......................... 400 43,900
Chevron Corp.................................. 1,000 46,625
Royal Dutch Petroleum Co...................... 400 48,750
----------
139,275
----------
The accompanying notes are an integral part of the financial statments.
14
<PAGE>
PHARMACEUTICAL PREPARATIONS -- 4.3%
Abbott Laboratories........................... 1,000 40,500
Bristol-Myers Squibb Co....................... 300 20,437
Johnson & Johnson............................. 500 33,812
Merck & Co., Inc.............................. 1,000 49,000
Mylan Laboratories, Inc....................... 1,500 46,125
Pfizer, Inc................................... 500 46,187
Schering-Plough, Inc.......................... 1,600 70,600
----------
306,661
----------
PRECISION INSTRUMENTS & MEDICAL SUPPLIES -- 0.3%
Beckman Instruments, Inc...................... 700 19,513
----------
RUBBER & PLASTICS -- 1.3%
Goodyear Tire & Rubber Co..................... 2,200 90,750
----------
TELECOMMUNICATIONS EQUIPMENT -- 2.4%
ADC Telecommunications, Inc................... 1,500 53,625
DSC Communications Corp....................... 1,000 46,500
Tellabs, Inc.................................. 1,500 72,187
----------
172,312
----------
TEXTILES & APPAREL -- 0.5%
Nautica Enterprises, Inc...................... 300 10,875
VF Corp....................................... 400 21,500
----------
32,375
----------
TRANSPORTATION EQUIPMENT -- 3.4%
AlliedSignal, Inc............................. 1,500 66,750
Ford Motor Co................................. 1,700 50,575
Rockwell International Corp................... 2,700 123,525
----------
240,850
----------
TOTAL MANUFACTURING.................................. 2,654,140
----------
MINING -- 1.2%
METAL MINING -- 0.4%
Potash Corp. of Saskatchewan, Inc............. 500 27,937
----------
The accompanying notes are an integral part of the financial statments.
15
<PAGE>
OIL & GAS EXPLORATION -- 0.8%
British Petroleum Co. Ltd., ADR............... 700 59,937
----------
TOTAL MINING......................................... 87,874
----------
OIL -- 1.3%
Tenneco, Inc.................................. 2,000 92,000
----------
SERVICES -- 8.6%
AMUSEMENT & RECREATION SERVICES -- 0.8%
Walt Disney Co................................ 1,000 55,625
----------
COMPUTER SERVICES -- 3.4%
BMC Software, Inc.*........................... 500 38,625
Computer Associates International, Inc........ 500 33,875
CUC International, Inc........................ 1,500 63,000
First Data Corp............................... 300 17,063
Microsoft Corp................................ 500 45,188
Oracle Systems Corp........................... 1,250 48,281
----------
246,032
----------
ENGINEERING SERVICES -- 0.5%
Halliburton Co................................ 1,000 35,750
----------
FINANCIAL SERVICES -- 0.6%
Equifax, Inc.................................. 1,300 43,388
----------
MEDICAL & HEALTH SERVICES -- 2.1%
Columbia/HCA Healthcare Corp.................. 1,784 77,158
Phycor, Inc.*................................. 750 26,344
Surgical Care Affiliates, Inc................. 2,500 47,813
----------
151,315
----------
PERSONAL SERVICES -- 0.4%
Manpower, Inc................................. 1,000 25,500
----------
SANITARY SERVICES -- 0.8%
Browning-Ferris Industries, Inc............... 1,500 54,188
----------
TOTAL SERVICES....................................... 611,798
----------
The accompanying notes are an integral part of the financial statments.
16
<PAGE>
TRANSPORTATION, COMMUNICATION, ELECTRIC
& SANITATION -- 9.6%
COMMUNICATION & BROADCASTING -- 3.3%
Capital Cities/ABC, Inc....................... 500 52,438
Telefonica de Espana S.A., ADR................ 1,900 73,625
Viacom Inc., Class B*......................... 1,000 46,375
Vodafone Group plc, ADR....................... 1,000 37,875
Worldcom Inc.*................................ 1,000 27,000
----------
237,313
----------
ELECTRIC, GAS & WATER UTILITIES -- 3.9%
Coastal Corp.................................. 2,500 75,938
Peco Energy Co................................ 800 22,100
Unicom Corp................................... 1,700 45,263
Williams Companies, Inc....................... 3,800 132,525
----------
275,826
----------
TRANSPORTATION -- 2.4%
AMR Corp.*.................................... 700 52,238
Burlington Northern, Inc...................... 800 50,700
CSX Corp...................................... 900 67,613
----------
170,551
----------
TOTAL TRANSPORTATION, COMMUNICATION,
ELECTRIC & SANITATION........................... 683,690
----------
WHOLESALE & RETAIL TRADE -- 3.9%
MISCELLANEOUS RETAIL STORES -- 0.4%
Eckerd Corp.*................................. 1,000 32,000
----------
RETAIL BUILDING MATERIALS -- 0.6%
Home Depot, Inc............................... 1,000 40,625
----------
RETAIL DEPARTMENT STORES -- 0.3%
Price/Costco, Inc.*........................... 1,500 24,375
----------
RETAIL EATING & DRINKING PLACES -- 1.0%
Darden Restaurants, Inc.*..................... 1,300 14,138
McDonald's Corp............................... 1,500 58,688
----------
72,826
----------
The accompanying notes are an integral part of the financial statments.
17
<PAGE>
RETAIL FOOD STORES -- 1.1%
Walgreen Co............... 1,500 75,188
----------
WHOLESALE ELECTRONIC EQUIP. & COMPUTERS -- 0.5%
Motorola, Inc................................. 500 33,563
----------
TOTAL WHOLESALE & RETAIL TRADE....................... 278,577
----------
TOTAL COMMON STOCK (COST $4,670,694)............ 5,476,351
----------
PREFERRED STOCKS -- 0.8%
Nokia Corp. ADR Preferred (COST $41,142)...... 1,000 59,625
----------
TOTAL INVESTMENTS -- 101.8%
(COST $6,442,636)**....................................... 7,266,776
OTHER ASSETS AND LIABILITIES,
NET -- (1.8)%.............................................. (128,246)
----------
NET ASSETS -- 100.0%............................................ $7,138,530
==========
* Non-income producing security.
** Cost for federal income tax purposes was $6,447,526 (Note 3).
The accompanying notes are an integral part of the financial statments.
18
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1995 (Unaudited)
Growth Growth and Income
Portfolio Portfolio
--------- -----------------
ASSETS:
Investments in securities (including
repurchase agreements of $1,222,200 and
$1,730,800, respectively), at market
(identified cost $41,538,523 and
$6,442,636, respectively) (Note 2). $60,033,289 $7,266,776
Dividends and interest receivable.......... 42,434 8,424
Receivable for investments sold............ 45,000 --
Receivable for Fund shares sold............ 53,166 355
Due from Manager (Note 4).................. -- 8,928
Other assets............................... 1,947 274
----------- -----------
Total assets............................ 60,175,836 7,284,757
----------- -----------
LIABILITIES:
Due to Manager (Note 4).................... 48,790 --
Payable for investments purchased.......... 178,631 113,171
Payable for Fund shares redeemed........... 1,433 4,050
Other accrued expenses (Note 4)............ 43,076 29,006
----------- -----------
Total liabilities....................... 271,930 146,227
----------- -----------
NET ASSETS................................. $59,903,906 $ 7,138,530
=========== ===========
NET ASSETS CONSIST OF:
Accumulated net investment income (loss)... $ (350,147) $ 6,612
Net unrealized appreciation of investments
(Note 3)................................ 18,494,766 824,140
Accumulated net realized gain.............. 4,052,830 269,313
Shares of beneficial interest.............. 34,115 7,516
Additional paid-in capital................. 37,672,342 6,030,949
----------- -----------
NET ASSETS, for 3,411,471 and 751,584
shares outstanding, respectively........ $59,903,906 $ 7,138,530
============ ===========
19
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
NET ASSET VALUE and redemption price per
share ($59,903,906 / 3,411,471 and
$7,138,530 / 751,584 outstanding
shares of beneficial interest, $0.01
par value, respectively)................ $17.56 $9.50
====== =====
Maximum offering price per share
(100/96.00 of $17.56 and 100/96.00
of $9.50, respectively)................. $18.29 $9.90
====== =====
20
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six-Month Period Ended June 30, 1995 (Unaudited)
Growth Growth and Income
Portfolio Portfolio
--------- -----------------
INVESTMENT INCOME:
Income:
Dividends............................... $ 240,733 $ 52,738
Interest................................ 85,802 49,217
---------- ---------
326,535 101,955
---------- ---------
Expenses:
Management fee (Note 4).................... 311,672 33,295
Distribution expenses (Note 4)............. 7,717 4,637
Custodian fee (Note 4)..................... 15,969 13,526
Transfer Agent fee (Note 4)................ 7,319 6,679
Administration fee (Note 4)................ 28,049 2,996
Accounting fee (Note 4).................... 22,316 22,316
Trustees' fees and expenses (Note 4)....... 2,299 2,299
Legal...................................... 9,148 871
Audit...................................... 17,863 5,176
Registration fees.......................... 7,397 7,519
Miscellaneous ............................. 7,411 2,688
---------- ---------
Total expenses before reimbursement..... 437,160 102,002
Reimbursement from Manager (Note 4)..... -- (52,060)
---------- ----------
Total expenses, net........................... 437,160 49,942
---------- ----------
Net investment income (loss).................. (110,625) 52,013
---------- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment
transactions......................... 3,832,739 275,961
Net unrealized appreciation of
investments during the period........ 5,458,080 601,421
---------- ----------
Net gain on investments.................... 9,290,819 877,382
---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $9,180,194 $ 929,395
========== ==========
21
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Growth Growth and Income
Portfolio Portfolio
--------- -----------------
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1995 (UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)............ $ (110,625) $ 52,013
Net realized gain on investment
transactions......................... 3,832,739 275,961
Net unrealized appreciation of investments
during the period ................... 5,458,080 601,421
----------- -----------
Net increase in net assets resulting from
operations........................... 9,180,194 929,395
----------- -----------
Distributions to shareholders from:
Net investment income ($0 and $0.06 per
share, respectively)................. -- (45,676)
----------- -----------
Decrease in net assets from Fund share
transactions (Note 5)................... (14,543,459) (195,145)
----------- -----------
Increase (decrease) in net assets.......... (5,363,265) 688,574
NET ASSETS:
Beginning of period..................... 65,267,171 6,449,956
----------- -----------
End of period (including accumulated net
investment income (loss) of $(350,147)
and $6,612, respectively)............ $59,903,906 $ 7,138,530
=========== ===========
22
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1994
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)............ $ (115,975) $ 71,085
Net realized gain on investment
transactions......................... 4,911,108 236,741
Net unrealized depreciation of
investments during the year.......... (4,935,019) (709,145)
----------- -----------
Net decrease in net assets resulting
from operations...................... (139,886) (401,319)
----------- -----------
Distributions to shareholders from:
Net investment income ($0 and $0.10 per
share, respectively)................. -- (70,810)
Net realized capital gains ($1.20 and
$0.32 per share, respectively)....... (4,796,011) (240,067)
----------- -----------
Total distributions to shareholders..... (4,796,011) (310,877)
----------- -----------
Increase in net assets from Fund share
transactions (Note 5)................... 4,112,033 650,262
----------- -----------
Decrease in net assets..................... (823,864) (61,934)
NET ASSETS:
Beginning of year....................... 66,091,035 6,511,890
----------- -----------
End of year (including accumulated net
investment income (loss) of $(239,522)
and $275, respectively).............. $65,267,171 $ 6,449,956
=========== ===========
23
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. They should be read in conjunction with the financial statements
and notes thereto.
FOR THE SIX-MONTH
PERIOD ENDED FOR THE FISCAL YEARS ENDED
JUNE 30, 1995 DECEMBER 31,
--------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- ---- ---- ---- ---- ----
GROWTH PORTFOLIO
NET ASSET VALUE - BEGINNING
OF PERIOD ............ $15.14 $16.39 $15.56 $15.68 $11.59 $12.62
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Net investment income
(loss).............. (0.05) (0.03) (0.03) 0.00 0.07 0.11
Net realized and
unrealized gain
(loss)on investments 2.47 (0.02) 2.29 0.92 4.71 (1.01)
------ ------ ------ ------ ------ ------
Total from investment
operations...... 2.42 (0.05) 2.26 0.92 4.78 (0.90)
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
From net investment
income.............. 0.00 0.00 0.00 0.00 (0.07) (0.12)
From net realized gain
on investments...... 0.00 (1.20) (1.43) (1.04) (0.62) (0.01)
------ ------ ------ ------ ------ ------
Total distributions. 0.00 (1.20) (1.43) (1.04) (0.69) (0.13)
------ ------ ------ ------ ------ ------
NET ASSET VALUE - END OF
PERIOD................ $17.56 $15.14 $16.39 $15.56 $15.68 $11.59
====== ====== ====== ====== ====== ======
TOTAL RETURN **........... 15.98% (0.23)% 14.57% 5.95% 41.54% (7.15)%
24
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses ***............ 1.40%* 1.38% 1.42% 1.46% 1.50% 1.74%
Net investment income
(loss)..............(0.36)%* (0.17)% (0.18)% (0.03)% 0.52% 0.94%
Portfolio turnover rate... 64.53%* 37.05% 44.38% 37.79% 32.63% 38.18%
Net assets at end of
period (000 omitted).. $59,904 $65,267 $66,091 $60,852 $56,658 $40,709
- - -------------------------
* Annualized
** These results do not include the sales load. If the sales load had been
included, the returns would have been lower. The total return for the six-
month period ended June 30, 1995 has not been annualized.
*** Effective December 22, 1990, Rodney Square Management Corporation ("RSMC")
agreed to waive its fee or bear any expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) which would
cause the Portfolio's ratio of expenses to average daily net assets to
exceed, on an annual basis, 1.50%. Prior to December 22, 1990, RSMC agreed
to bear any expenses which would cause the Portfolio's ratio of expenses to
average daily net assets to exceed, on an annual basis, 1.75%. The
annualized expense ratio, had there been no reimbursement of expenses or
fee waivers by RSMC, would have been 1.54% for the year ended December 31,
1991. For the six-month period ended June 30, 1995 and for the years ended
December 31, 1994, 1993, 1992 and 1990, no reimbursement or fee waiver was
necessary.
25
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
FOR THE SIX-MONTH
PERIOD ENDED FOR THE FISCAL YEARS ENDED
JUNE 30, 1995 DECEMBER 31,
--------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------- ---- ---- ---- ---- ----
GROWTH AND INCOME PORTFOLIO
NET ASSET VALUE - BEGINNING
OF PERIOD ............ $ 8.33 $ 9.29 $10.51 $12.09 $10.47 $10.98
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Net investment income
(loss).............. 0.07 0.10 0.10 0.18 0.28 0.36
Net realized and
unrealized gain
(loss)on investments 1.16 (0.64) 1.39 0.52 2.37 (0.50)
------ ------ ------ ------ ------ ------
Total from investment
operations...... 1.23 (0.54) 1.49 0.70 2.65 (0.14)
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
From net investment
income.............. (0.06) (0.10) (0.10) (0.18) (0.28) (0.37)
From net realized gain
on investments...... 0.00 (0.32) (2.61) (2.10) (0.75) 0.00
------ ------ ------ ------ ------ ------
Total distributions. (0.06) (0.42) (2.71) (2.28) (1.03) (0.37)
------ ------ ------ ------ ------ ------
NET ASSET VALUE - END OF
PERIOD................ $ 9.50 $ 8.33 $ 9.29 $10.51 $12.09 $10.47
====== ====== ====== ====== ====== ======
TOTAL RETURN **........... 14.79% (5.82)% 14.26% 5.90% 25.74% (1.27)%
26
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- - --------------------------------------------------------------------------------
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses ***............ 1.50%* 1.50% 1.50% 1.50% 1.50% 1.74%
Net investment income
(loss).............. 1.56%* 1.12% 0.80% 1.37% 2.12% 3.01%
Portfolio turnover rate... 89.63%* 106.26% 68.49% 76.63% 133.02% 172.67%
Net assets at end of
period (000 omitted).. $7,139 $6,450 $6,512 $10,147 $15,432 $19,420
- - -------------------------
* Annualized
** These results do not include the sales load. If the sales load had been
included, the returns would have been lower. The total return for the six-
month period ended June 30, 1995 has not been annualized.
*** Effective December 22, 1990, Rodney Square Management Corporation ("RSMC")
agreed to waive its fee or bear any expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) which would
cause the Portfolio's ratio of expenses to average daily net assets to
exceed, on an annual basis, 1.50%. Prior to December 22, 1990, RSMC agreed
to bear any expenses which would cause the Portfolio's ratio of expenses to
average daily net assets to exceed, on an annual basis, 1.75%. The
annualized expense ratio, had there been no reimbursement of expenses or
fee waivers by RSMC, would have been 3.06%, 3.04%, 2.85%, 2.43%, 2.29%, and
2.29% for the six-month period ended June 30, 1995 and for the five years
in the period ended December 31, 1994, respectively.
27
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- - --------------------------------------------------------------------------------
1. DESCRIPTION OF THE FUND. The Rodney Square Multi-Manager Fund (the "Fund")
is registered under the Investment Company Act of 1940, as amended (the
"1940 Act"), as a diversified, open-end management investment company
established as a Massachusetts business trust. The Declaration of Trust,
dated August 19, 1986, as last amended on February 15, 1993, permits the
Board of Trustees to establish separate series (or "Portfolios") each of
which issues a separate class of shares. The authorized shares of
beneficial interest in the Fund are currently divided into two Portfolios,
the Growth Portfolio and the Growth and Income Portfolio (each, a
"Portfolio" and collectively, the "Portfolios"). Prior to December 21,
1990, the Growth and Income Portfolio was known as the Total Return
Portfolio.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Fund:
SECURITY VALUATION. Each Portfolio's securities, except short-term
investments with remaining maturities of 60 days or less, are valued at
their market value as determined by their last sale price in the principal
market in which these securities are normally traded. Lacking any sales,
the security will be valued at the mean between the closing bid and ask
price. Short-term investments with remaining maturities of 60 days or less
are valued at amortized cost, which approximates market value, unless the
Fund's Board of Trustees determines that this does not represent fair
value. The value of all other securities is determined in good faith under
the direction of the Board of Trustees.
REPURCHASE AGREEMENTS. The Portfolios, through their custodian, receive
delivery of the underlying securities, the market value of which at the
time of purchase is required to be an amount equal to at least 101% of the
resale price. Rodney Square Management Corporation ("RSMC") is responsible
for determining that the value of these underlying securities is at all
times equal to 101% of the resale price.
FEDERAL INCOME TAXES. Each Portfolio is treated as a separate entity and
intends to continue to qualify for treatment as a "regulated investment
company" under Subchapter M of the Internal Revenue Code of 1986 and to
distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
28
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- - --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Distributions of net investment income
earned by the Growth Portfolio will be made annually in December.
Distributions of net investment income earned by the Growth and Income
Portfolio will be made quarterly in March, June, September and December.
Distributions of net capital gains realized by each Portfolio will be made
annually in December. An additional distribution may be made to the extent
necessary to avoid the payment of a 4% excise tax.
OTHER. Investment security transactions are accounted for on a trade date
basis. Each Portfolio uses the specific identification method for
determining realized gain or loss on investments for both financial and
federal income tax reporting purposes.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES. During the six-month period
ended June 30, 1995, purchases and sales of investment securities
(excluding short-term investments) aggregated as follows:
GROWTH GROWTH AND
PORTFOLIO INCOME PORTFOLIO
----------- -------------------
Purchases.................... $19,438,601 $2,287,343
Sales........................ 31,069,967 2,603,569
The following balances are as of June 30, 1995:
COST FOR NET TAX BASIS TAX BASIS GROSS TAX BASIS GROSS
FEDERAL INCOME UNREALIZED UNREALIZED UNREALIZED
PORTFOLIO TAX PURPOSES APPRECIATION APPRECIATION DEPRECIATION
- - --------- -------------- ------------- --------------- ---------------
Growth....... $41,538,523 $18,494,766 $19,823,798 $(1,329,032)
Growth and
Income.... 6,447,526 819,250 855,043 (35,793)
29
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- - --------------------------------------------------------------------------------
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES. The Fund, on behalf
of each Portfolio, employs RSMC, a wholly owned subsidiary of Wilmington
Trust Company ("WTC"), which in turn is wholly owned by Wilmington Trust
Corporation, a publicly held bank holding company, to provide asset
management, consulting services and other services to the Fund. Each
Portfolio's assets are managed by portfolio advisers who have entered into
advisory agreements with RSMC and the Fund. It is anticipated that each
Portfolio will ordinarily be served by at least two portfolio advisers.
RSMC, as well as each portfolio adviser, is each considered an "investment
adviser" to the applicable Portfolio as that term is defined in the 1940
Act.
For management services to the Fund, RSMC receives an annual fee equal to
1.00% of the average daily net assets of each Portfolio up to $200 million
of Fund assets and 0.95% of the average daily net assets in excess of $200
million. RSMC has agreed to waive its fees or reimburse each Portfolio
monthly to the extent that operating expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) exceed an
annual rate of 1.50% of average daily net assets.
The following table summarizes the management fees for the six-month period
ended June 30, 1995:
GROSS
MANAGEMENT REIMBURSEMENT
PORTFOLIO FEE FROM MANAGER
--------- ----------- -------------
Growth....................... $311,672 --
Growth and Income............ 33,295 $52,060
RSMC serves as Administrator to the Fund under an Administration Agreement
dated December 31, 1992. Pursuant to this agreement, RSMC is responsible
for services such as budgeting, maintaining federal and state registration
for the Fund's shares, financial reporting, compliance monitoring and
corporate management. For the services provided, RSMC receives a monthly
administration fee from the Fund at an annual rate of 0.09% of each
Portfolio's average daily net assets. The administration fee paid to RSMC
for the six-month period ended June 30, 1995 amounted to $28,049 and
$2,996 for the Growth Portfolio and the Growth and Income Portfolio,
respectively.
30
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- - --------------------------------------------------------------------------------
WTC serves as Custodian of the assets of the Fund. For its services, WTC
is paid an annual fee based upon the average daily net assets of each
Portfolio as follows: 0.025% of average daily net assets of each Portfolio
up to $50 million; 0.020% of average daily net assets of each Portfolio in
excess of $50 million up to $100 million and 0.015% of average daily net
assets of each Portfolio over $100 million, plus $15 per purchase, sale or
maturity of a portfolio security. The custodian fee is subject to a
minimum charge of $1,000 per Portfolio, per month, exclusive of any
transaction charges.
RSMC serves as Transfer and Dividend Paying Agent for the Fund pursuant to
a Transfer Agent Agreement with the Fund dated December 31, 1992. For its
services, the Fund pays RSMC $7 per shareholder account per year, plus
various other transaction fees, subject to a minimum of $1,000 per month,
plus out-of-pocket expenses.
Pursuant to a Distribution Agreement with the Fund dated as of December 31,
1992, Rodney Square Distributors, Inc. ("RSD"), a wholly owned subsidiary
of WTC, manages the Fund's distribution efforts and provides assistance and
expertise in developing marketing plans and materials. The Fund's Board of
Trustees has adopted, and the Fund's shareholders have approved, a
distribution plan with respect to each Portfolio pursuant to Rule 12b-1
under the 1940 Act to allow the Fund to reimburse RSD for certain
distribution activities and to allow WTC to incur certain expenses, the
payment of which may be considered to constitute indirect payment by the
Fund of distribution expenses. The Board of Trustees has authorized annual
payments of up to 0.25% of each Portfolio's average daily net assets to
reimburse RSD for such expenses. For the six-month period ended June 30,
1995, such expenses amounted to $7,717 and $4,637 for the Growth Portfolio
and the Growth and Income Portfolio, respectively.
RSMC determines the net asset value per share of each Portfolio and
provides accounting services to the Fund pursuant to an Accounting Services
Agreement with the Fund on behalf of each Portfolio. For its services,
RSMC receives an annual fee of $45,000 per Portfolio plus an amount equal
to 0.02% of that portion of each Portfolio's average daily net assets in
excess of $100 million. For the six-month period ended June 30, 1995
RSMC's fees for accounting services amounted to $22,316 per Portfolio.
31
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- - --------------------------------------------------------------------------------
The salaries of all officers of the Fund, the Trustees who are "interested
persons" of the Fund, RSMC, RSD, or their affiliates and all personnel of
the Fund, RSMC or RSD performing services related to research, statistical
and investment activities are paid by RSMC, RSD or their affiliates. For
the six-month period ended June 30, 1995 the fees and expenses of the "non-
interested" Trustees amounted to $2,299 per Portfolio.
5. FUND SHARES. At June 30, 1995, there was an unlimited number of shares of
beneficial interest, $0.01 par value, authorized. The following table
summarizes the activity in shares of each Portfolio:
GROWTH PORTFOLIO
----------------
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 1995 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
-------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- -------- -------- --------
Shares sold....... 133,182 $2,180,024 323,662 $5,252,086
Shares issued to
shareholders in
reinvestment of
dividends....... -- -- 303,972 4,553,501
Shares redeemed... (1,032,131) (16,723,483) (350,492) (5,693,554)
---------- ----------- -------- ----------
Net increase
(decrease)...... (898,949) $(14,543,459) 277,142 $4,112,033
============ ==========
Shares outstanding:
Beginning of
period.......... 4,310,420 4,033,278
--------- ---------
End of period..... 3,411,471 4,310,420
========= =========
32
<PAGE>
THE RODNEY SQUARE MULTI-MANAGER FUND
- - ------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- - --------------------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO
---------------------------
FOR THE SIX-MONTH
PERIOD ENDED JUNE 30, 1995 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
-------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- -------- -------- --------
Shares sold....... 85,016 $773,279 236,338 $2,127,357
Shares issued to
shareholders in
reinvestment of
dividends....... 3,697 33,866 34,067 285,058
Shares redeemed... (111,731) (1,002,290) (196,585) (1,762,153)
--------- ---------- -------- ----------
Net increase
(decrease)...... (23,018) $(195,145) 73,820 $650,262
========== ==========
Shares outstanding:
Beginning of
period.......... 774,602 700,782
--------- --------
End of period..... 751,584 774,602
========= =========
33
<PAGE>
TRUSTEES
Eric Brucker
Fred L. Buckner
Martin L. Klopping
John J. Quindlen
Peter J. Succoso THE RODNEY SQUARE
--------------------
MULTI-MANAGER
OFFICERS
Peter J. Succoso, PRESIDENT FUND
Joseph M. Fahey, Jr., VICE PRESIDENT
Robert C. Hancock, VICE PRESIDENT & TREASURER
Marilyn Talman, Esq., SECRETARY
Leah M. Anderson, ASSISTANT SECRETARY
Diane D. Marky, ASSISTANT SECRETARY
Connie L. Meyers, ASSISTANT SECRETARY
John J. Kelley, ASSISTANT TREASURER
----------------------------------------
FUND MANAGER, ADMINISTRATOR AND
TRANSFER AGENT
Rodney Square Management Corporation [Graphic] Ceasar
----------------------------------------- Rodney upon his
galloping horse
CUSTODIAN facing right,
Wilmington Trust Company reverse image on
---------------------------- dark background
DISTRIBUTOR
Rodney Square Distributors, Inc.
------------------------------------
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
------------------------------
INDEPENDENT AUDITORS
Ernst & Young LLP SEMIANNUAL REPORT
---------------------
JUNE 30, 1995
THIS REPORT IS SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THE REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN
THE FUND UNLESS PRECEDED OR ACCOMPANIED
BY AN EFFECTIVE PROSPECTUS.
