FRANKLIN/TEMPLETON
DISTRIBUTORS, INC.
777 Mariners Island Blvd.
P.O. Box 7777
San Mateo, CA 94403-7777
415/312-3000
November 30, 1996
AMENDMENTS TO FRANKLIN MANAGED TRUST ANNUAL REPORT FOR
FRANKLIN CORPORATE QUALIFIED DIVIDEND FUND SHAREHOLDERS
Dear Shareholder:
Recently you received the Franklin Managed Trust Annual Report for the period
ended September 30, 1996, which contained information on the Franklin Corporate
Qualified Dividend Fund. The Franklin Corporate Qualified Dividend Fund's charts
on page 8 of the annual report are hereby amended as follows:
1) The date range indicated in the title to the "Total Return Index Comparison
Before Taxes**" chart should have reflected 1/14/87-9/30/96 as set forth below.
The chart itself remains unchanged, but is set forth below for convenience.
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF THIS LETTER
2) The date range indicated in the title to the "Total Return Index Comparison
After Taxes**" chart should have reflected 1/14/87-9/30/96, and the data in the
chart should have been as set forth in the revised chart below.
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF THIS LETTER
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM LETTER
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
The following line graph hypothetically compares the performance of the fund's
shares before taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,285
Feb-87 98,463 100,726
Mar-87 98,937 101,180
Apr-87 95,834 101,675
May-87 95,034 102,143
Jun-87 96,926 102,623
Jul-87 97,454 103,075
Aug-87 97,658 103,590
Sep-87 95,813 104,077
Oct-87 91,761 104,910
Nov-87 92,298 105,392
Dec-87 91,207 105,793
Jan-88 90,570 106,322
Feb-88 93,170 106,811
Mar-88 92,229 107,323
Apr-88 93,741 107,796
May-88 95,654 108,281
Jun-88 93,509 108,844
Jul-88 95,888 109,399
Aug-88 95,712 110,001
Sep-88 95,714 110,694
Oct-88 96,254 111,380
Nov-88 96,253 111,993
Dec-88 96,388 112,709
Jan-89 98,044 113,453
Feb-89 98,876 114,145
Mar-89 99,482 114,978
Apr-89 99,669 115,944
May-89 99,290 116,767
Jun-89 100,379 117,748
Jul-89 101,768 118,608
Aug-89 104,180 119,403
Sep-89 104,569 120,203
Oct-89 103,844 121,068
Nov-89 102,968 121,903
Dec-89 102,579 122,720
Jan-90 102,336 123,493
Feb-90 102,347 124,247
Mar-90 102,104 125,091
Apr-90 102,167 125,917
May-90 103,209 126,786
Jun-90 103,887 127,623
Jul-90 103,482 128,542
Aug-90 104,023 129,403
Sep-90 103,289 130,270
Oct-90 101,268 131,091
Nov-90 102,462 131,903
Dec-90 103,660 132,840
Jan-91 105,536 133,650
Feb-91 108,362 134,345
Mar-91 112,933 135,124
Apr-91 116,641 135,827
May-91 118,012 136,479
Jun-91 118,879 137,120
Jul-91 120,957 137,792
Aug-91 122,701 138,509
Sep-91 123,303 139,187
Oct-91 125,246 139,869
Nov-91 126,145 140,555
Dec-91 127,761 141,201
Jan-92 132,173 141,681
Feb-92 137,328 142,107
Mar-92 138,492 142,561
Apr-92 140,869 143,132
May-92 143,562 143,590
Jun-92 144,196 144,063
Jul-92 146,794 144,596
Aug-92 148,049 145,001
Sep-92 148,533 145,494
Oct-92 148,832 145,771
Nov-92 148,478 146,062
Dec-92 148,936 146,530
Jan-93 150,526 146,969
Feb-93 151,807 147,293
Mar-93 152,397 147,690
Apr-93 154,963 148,045
May-93 156,131 148,385
Jun-93 156,535 148,771
Jul-93 157,647 149,158
Aug-93 158,183 149,561
Sep-93 158,526 149,964
Oct-93 158,673 150,309
Nov-93 158,791 150,670
Dec-93 158,842 151,107
Jan-94 160,077 151,515
Feb-94 160,393 151,757
Mar-94 159,786 152,167
Apr-94 159,241 152,517
May-94 159,561 152,959
Jun-94 159,414 153,495
Jul-94 160,036 154,017
Aug-94 159,988 154,510
Sep-94 159,671 155,081
Oct-94 159,760 155,624
Nov-94 159,914 156,138
Dec-94 159,484 156,903
Jan-95 160,763 157,577
Feb-95 161,655 158,318
Mar-95 162,826 159,125
Apr-95 163,864 159,889
May-95 165,045 160,705
Jun-95 165,673 161,524
Jul-95 166,374 162,299
Aug-95 166,726 163,095
Sep-95 168,068 163,845
Oct-95 167,926 164,566
Nov-95 168,997 165,306
Dec-95 169,425 166,166
Jan-96 170,504 166,897
Feb-96 171,009 167,565
Mar-96 171,226 168,252
Apr-96 171,372 168,958
May-96 172,250 169,685
Jun-96 172,617 170,415
Jul-96 172,912 171,130
Aug-96 174,020 171,918
Sep-96 174,689 172,743
TOTAL RETURN 74.69% 72.74%
GRAPHIC MATERIAL (2)
The following line graph hypothetically compares the performance of the fund's
shares after taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,188
Feb-87 98,463 100,479
Mar-87 98,905 100,778
Apr-87 95,772 101,103
May-87 94,937 101,410
Jun-87 96,786 101,725
Jul-87 97,271 102,020
Aug-87 97,434 102,357
Sep-87 95,553 102,675
Oct-87 91,463 103,217
Nov-87 91,957 103,530
Dec-87 90,828 103,790
Jan-88 90,109 104,127
Feb-88 92,630 104,438
Mar-88 91,630 104,764
Apr-88 93,065 105,064
May-88 94,898 105,371
Jun-88 92,705 105,727
Jul-88 94,996 106,078
Aug-88 94,755 106,457
Sep-88 94,689 106,893
Oct-88 95,156 107,324
Nov-88 95,087 107,707
Dec-88 95,152 108,156
Jan-89 96,712 108,620
Feb-89 97,463 109,050
Mar-89 97,990 109,568
Apr-89 98,104 110,166
May-89 97,660 110,674
Jun-89 98,659 111,279
Jul-89 99,953 111,807
Aug-89 102,248 112,294
Sep-89 102,557 112,783
Oct-89 101,777 113,310
Nov-89 100,849 113,819
Dec-89 100,399 114,314
Jan-90 100,091 114,782
Feb-90 100,031 115,237
Mar-90 99,723 115,747
Apr-90 99,712 116,243
May-90 100,656 116,765
Jun-90 101,244 117,266
Jul-90 100,776 117,814
Aug-90 101,229 118,328
Sep-90 100,441 118,843
Oct-90 98,404 119,330
Nov-90 99,488 119,810
Dec-90 100,511 120,363
Jan-91 102,252 120,841
Feb-91 104,911 121,249
Mar-91 109,257 121,706
Apr-91 112,764 122,117
May-91 114,015 122,498
Jun-91 114,778 122,873
Jul-91 116,708 123,264
Aug-91 118,315 123,681
Sep-91 118,820 124,075
Oct-91 120,615 124,470
Nov-91 121,404 124,866
Dec-91 122,863 125,240
Jan-92 127,033 125,516
Feb-92 131,913 125,761
Mar-92 132,958 126,023
Apr-92 135,166 126,350
May-92 137,675 126,613
Jun-92 138,210 126,885
Jul-92 140,625 127,190
Aug-92 141,753 127,421
Sep-92 142,150 127,703
Oct-92 142,371 127,861
Nov-92 141,976 128,027
Dec-92 142,357 128,293
Jan-93 143,818 128,543
Feb-93 144,983 128,727
Mar-93 145,487 128,953
Apr-93 147,877 129,154
May-93 148,938 129,347
Jun-93 149,271 129,566
Jul-93 150,278 129,785
Aug-93 150,735 130,013
Sep-93 151,008 130,241
Oct-93 151,095 130,436
Nov-93 151,156 130,639
Dec-93 151,154 130,885
Jan-94 152,277 131,115
Feb-94 152,527 131,251
Mar-94 151,898 131,482
Apr-94 151,329 131,678
May-94 151,581 131,927
Jun-94 151,390 132,227
Jul-94 151,926 132,519
Aug-94 151,825 132,795
Sep-94 151,469 133,114
Oct-94 151,497 133,417
Nov-94 151,588 133,703
Dec-94 151,121 134,129
Jan-95 152,273 134,504
Feb-95 153,050 134,915
Mar-95 154,090 135,362
Apr-95 155,004 135,784
May-95 156,052 136,234
Jun-95 156,576 136,686
Jul-95 157,169 137,112
Aug-95 157,432 137,549
Sep-95 158,629 137,960
Oct-95 158,425 138,355
Nov-95 159,364 138,760
Dec-95 159,698 139,229
Jan-96 160,643 139,627
Feb-96 161,047 139,990
Mar-96 161,181 140,363
Apr-96 161,246 140,746
May-96 162,007 141,139
Jun-96 162,287 141,534
Jul-96 162,499 141,920
Aug-96 163,475 142,345
Sep-96 164,037 142,789
TOTAL RETURN 64.04% 42.79%
Please keep these amendments to the annual report with your annual report for
reference. We encourage you to call Franklin Templeton Fund Information with any
questions, at 1-800/342-5236.
Sincerely,
Franklin Templeton
Amendment dated November 30, 1996,
to the Franklin Managed Trust
September 30, 1996, Annual Report
The two charts on page 8 of the Franklin Corporate Qualified Dividend Fund are
amended as follows:
1) The date range indicated in the title to the "Total Return Index Comparison
Before Taxes**" chart should have reflected the period 1/14/87-9/30/96 as set
forth below. The chart itself remains unchanged, but is set forth below for
convenience.
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF AMENDMENT
2) The date range indicated in the title to the "Total Return Index Comparison
After Taxes**" chart should have reflected 1/14/87-9/30/96, and the data in the
chart should have been as set forth in the revised chart below.
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF AMENDMENT
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM AMENDMENT
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
The following line graph hypothetically compares the performance of the fund's
shares before taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,285
Feb-87 98,463 100,726
Mar-87 98,937 101,180
Apr-87 95,834 101,675
May-87 95,034 102,143
Jun-87 96,926 102,623
Jul-87 97,454 103,075
Aug-87 97,658 103,590
Sep-87 95,813 104,077
Oct-87 91,761 104,910
Nov-87 92,298 105,392
Dec-87 91,207 105,793
Jan-88 90,570 106,322
Feb-88 93,170 106,811
Mar-88 92,229 107,323
Apr-88 93,741 107,796
May-88 95,654 108,281
Jun-88 93,509 108,844
Jul-88 95,888 109,399
Aug-88 95,712 110,001
Sep-88 95,714 110,694
Oct-88 96,254 111,380
Nov-88 96,253 111,993
Dec-88 96,388 112,709
Jan-89 98,044 113,453
Feb-89 98,876 114,145
Mar-89 99,482 114,978
Apr-89 99,669 115,944
May-89 99,290 116,767
Jun-89 100,379 117,748
Jul-89 101,768 118,608
Aug-89 104,180 119,403
Sep-89 104,569 120,203
Oct-89 103,844 121,068
Nov-89 102,968 121,903
Dec-89 102,579 122,720
Jan-90 102,336 123,493
Feb-90 102,347 124,247
Mar-90 102,104 125,091
Apr-90 102,167 125,917
May-90 103,209 126,786
Jun-90 103,887 127,623
Jul-90 103,482 128,542
Aug-90 104,023 129,403
Sep-90 103,289 130,270
Oct-90 101,268 131,091
Nov-90 102,462 131,903
Dec-90 103,660 132,840
Jan-91 105,536 133,650
Feb-91 108,362 134,345
Mar-91 112,933 135,124
Apr-91 116,641 135,827
May-91 118,012 136,479
Jun-91 118,879 137,120
Jul-91 120,957 137,792
Aug-91 122,701 138,509
Sep-91 123,303 139,187
Oct-91 125,246 139,869
Nov-91 126,145 140,555
Dec-91 127,761 141,201
Jan-92 132,173 141,681
Feb-92 137,328 142,107
Mar-92 138,492 142,561
Apr-92 140,869 143,132
May-92 143,562 143,590
Jun-92 144,196 144,063
Jul-92 146,794 144,596
Aug-92 148,049 145,001
Sep-92 148,533 145,494
Oct-92 148,832 145,771
Nov-92 148,478 146,062
Dec-92 148,936 146,530
Jan-93 150,526 146,969
Feb-93 151,807 147,293
Mar-93 152,397 147,690
Apr-93 154,963 148,045
May-93 156,131 148,385
Jun-93 156,535 148,771
Jul-93 157,647 149,158
Aug-93 158,183 149,561
Sep-93 158,526 149,964
Oct-93 158,673 150,309
Nov-93 158,791 150,670
Dec-93 158,842 151,107
Jan-94 160,077 151,515
Feb-94 160,393 151,757
Mar-94 159,786 152,167
Apr-94 159,241 152,517
May-94 159,561 152,959
Jun-94 159,414 153,495
Jul-94 160,036 154,017
Aug-94 159,988 154,510
Sep-94 159,671 155,081
Oct-94 159,760 155,624
Nov-94 159,914 156,138
Dec-94 159,484 156,903
Jan-95 160,763 157,577
Feb-95 161,655 158,318
Mar-95 162,826 159,125
Apr-95 163,864 159,889
May-95 165,045 160,705
Jun-95 165,673 161,524
Jul-95 166,374 162,299
Aug-95 166,726 163,095
Sep-95 168,068 163,845
Oct-95 167,926 164,566
Nov-95 168,997 165,306
Dec-95 169,425 166,166
Jan-96 170,504 166,897
Feb-96 171,009 167,565
Mar-96 171,226 168,252
Apr-96 171,372 168,958
May-96 172,250 169,685
Jun-96 172,617 170,415
Jul-96 172,912 171,130
Aug-96 174,020 171,918
Sep-96 174,689 172,743
TOTAL RETURN 74.69% 72.74%
GRAPHIC MATERIAL (2)
The following line graph hypothetically compares the performance of the fund's
shares after taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,188
Feb-87 98,463 100,479
Mar-87 98,905 100,778
Apr-87 95,772 101,103
May-87 94,937 101,410
Jun-87 96,786 101,725
Jul-87 97,271 102,020
Aug-87 97,434 102,357
Sep-87 95,553 102,675
Oct-87 91,463 103,217
Nov-87 91,957 103,530
Dec-87 90,828 103,790
Jan-88 90,109 104,127
Feb-88 92,630 104,438
Mar-88 91,630 104,764
Apr-88 93,065 105,064
May-88 94,898 105,371
Jun-88 92,705 105,727
Jul-88 94,996 106,078
Aug-88 94,755 106,457
Sep-88 94,689 106,893
Oct-88 95,156 107,324
Nov-88 95,087 107,707
Dec-88 95,152 108,156
Jan-89 96,712 108,620
Feb-89 97,463 109,050
Mar-89 97,990 109,568
Apr-89 98,104 110,166
May-89 97,660 110,674
Jun-89 98,659 111,279
Jul-89 99,953 111,807
Aug-89 102,248 112,294
Sep-89 102,557 112,783
Oct-89 101,777 113,310
Nov-89 100,849 113,819
Dec-89 100,399 114,314
Jan-90 100,091 114,782
Feb-90 100,031 115,237
Mar-90 99,723 115,747
Apr-90 99,712 116,243
May-90 100,656 116,765
Jun-90 101,244 117,266
Jul-90 100,776 117,814
Aug-90 101,229 118,328
Sep-90 100,441 118,843
Oct-90 98,404 119,330
Nov-90 99,488 119,810
Dec-90 100,511 120,363
Jan-91 102,252 120,841
Feb-91 104,911 121,249
Mar-91 109,257 121,706
Apr-91 112,764 122,117
May-91 114,015 122,498
Jun-91 114,778 122,873
Jul-91 116,708 123,264
Aug-91 118,315 123,681
Sep-91 118,820 124,075
Oct-91 120,615 124,470
Nov-91 121,404 124,866
Dec-91 122,863 125,240
Jan-92 127,033 125,516
Feb-92 131,913 125,761
Mar-92 132,958 126,023
Apr-92 135,166 126,350
May-92 137,675 126,613
Jun-92 138,210 126,885
Jul-92 140,625 127,190
Aug-92 141,753 127,421
Sep-92 142,150 127,703
Oct-92 142,371 127,861
Nov-92 141,976 128,027
Dec-92 142,357 128,293
Jan-93 143,818 128,543
Feb-93 144,983 128,727
Mar-93 145,487 128,953
Apr-93 147,877 129,154
May-93 148,938 129,347
Jun-93 149,271 129,566
Jul-93 150,278 129,785
Aug-93 150,735 130,013
Sep-93 151,008 130,241
Oct-93 151,095 130,436
Nov-93 151,156 130,639
Dec-93 151,154 130,885
Jan-94 152,277 131,115
Feb-94 152,527 131,251
Mar-94 151,898 131,482
Apr-94 151,329 131,678
May-94 151,581 131,927
Jun-94 151,390 132,227
Jul-94 151,926 132,519
Aug-94 151,825 132,795
Sep-94 151,469 133,114
Oct-94 151,497 133,417
Nov-94 151,588 133,703
Dec-94 151,121 134,129
Jan-95 152,273 134,504
Feb-95 153,050 134,915
Mar-95 154,090 135,362
Apr-95 155,004 135,784
May-95 156,052 136,234
Jun-95 156,576 136,686
Jul-95 157,169 137,112
Aug-95 157,432 137,549
Sep-95 158,629 137,960
Oct-95 158,425 138,355
Nov-95 159,364 138,760
Dec-95 159,698 139,229
Jan-96 160,643 139,627
Feb-96 161,047 139,990
Mar-96 161,181 140,363
Apr-96 161,246 140,746
May-96 162,007 141,139
Jun-96 162,287 141,534
Jul-96 162,499 141,920
Aug-96 163,475 142,345
Sep-96 164,037 142,789
TOTAL RETURN 64.04% 42.79%
MESSAGE FROM THE PRESIDENT
Table of Contents Page
Message from the President 1
Fund Reports
Franklin Corporate Qualified
Dividend Fund 3
Franklin Rising Dividends Fund 10
Franklin Investment Grade
Income Fund 20
Statement of Investments 25
Financial Statements 33
Notes to Financial Statements 36
To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
November 15, 1996
Dear Shareholder,
We are pleased to bring you the Franklin Managed Trust annual report for the
fiscal year ended September 30, 1996.
Mild inflation, moderate growth and fluctuating interest rates characterized
much of the reporting period. As you may know, the Federal Reserve Board (the
Fed) lowered interest rates twice in the last half of 1995 to help spur our
languishing U.S. economy. With the Gross Domestic Product (GDP), a measure of
the nation's economic output, posting a moderate 2% annual growth rate for the
last six months of 1995, the Fed lowered rates once again in January 1996. This
third reduction lowered the federal funds target rate (the interest rate banks
charge one another for overnight loans) to 5.25%.+
The economy began to change direction in early 1996. With the release of a
stronger-than-expected employment report in March, hopes for further rate
reductions died, and long-term interest rates began to rise on fears of
inflation. Subsequent economic reports put the annualized GDP at 3.4% for the
first half of the year.+
By August, the market's anticipation of economic reports had become almost
obsessive. Many investors and analysts anxiously awaited the release of every
report (e.g. unemployment figures, labor costs, housing starts) in hopes of
predicting whether the Fed would raise interest rates at its September 24 Open
Market Committee meeting. As the meeting date neared, predictions became a daily
event -- one day, "no," the next day, "yes." In the end, the Fed left rates
unchanged.
Indeed, throughout the year, investors' preoccupation with economic indicators
led to somewhat erratic financial markets. The Dow Jones Industrial Average(R)
topped 5000 for the first time in November 1995, and closed at 5882.17 at the
end of the Trust's fiscal year. This was not without some mid-year back-sliding,
however, with the Dow dipping as low as 5346.55 on July 23. Additionally, rising
long-term interest rates hurt bond prices, with the Lehman Brothers
Government/Corporate Bond Index providing a total return of 4.51% for the
reporting period.+
+Source: Bloomberg.
The following pages contain specific information about the performance of the
funds in the Managed Trust. While each fund has distinct investment objectives,
the fundamental principles remain the same: careful investment selection and
professional management.
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
As always, we appreciate your continued support and look forward to serving your
investment needs in the years ahead.
Sincerely,
William J. Lippman
President
Franklin Managed Trust
FRANKLIN CORPORATE QUALIFIED DIVIDEND FUND
Your Fund's Objective:
The Franklin Corporate Qualified Dividend Fund is designed to serve as an
income-producing vehicle for the cash reserves of taxable corporations. The fund
seeks to generate high after-tax income for corporations by investing primarily
in the equity securities of domestic corporations whose dividends qualify for
the 70% corporate dividends-received deduction.
The fund's share price, as measured by net asset value, fluctuated within a
narrow range during the reporting period, and ended at $23.52 on September 30,
1996. This was down slightly from the fund's $23.76 net asset value at the start
of the fiscal year. Throughout the reporting period, the fund continued to pay
monthly tax-advantaged income, totaling $1.15 per share.
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
As you can see from the pie chart above, auction-rate preferred stocks and cash
and equivalents comprised nearly 60% of total net assets at the close of the
fiscal year. Auction-rate preferred stocks tend to exhibit low price-sensitivity
to interest rates, because they normally reset their rates every 49 days, based
on the results of a Dutch auction. The auction process allows investors to
receive par value for their securities from other investors who bid to set a new
dividend rate.
Adjustable-rate preferred stocks have somewhat less price stability than
auction-rate preferreds. Adjustables reset their dividend rates approximately
every 90 days (according to a yield spread fixed at the time of their original
sales) relative to the highest of three U.S. Treasury benchmarks: the
three-month Treasury Bill Rate, the 10-year Constant Maturity Rate and the
20-year Constant Maturity Rate. Thus, adjustables tend to maintain their prices
when interest rates swing radically. However, they are not protected from losses
resulting from a decline in a security's credit quality.
Fixed-rate preferred stocks have limited terms until redemption, ranging from a
few months to a few years. Thus, their sensitivity to interest rates
approximates that of short- to intermediate-term bonds.
We seek to control various sources of potential risk, including interest rate
and credit risk, through the careful selection of securities and active
management of the fund. National ratings services, such as Standard and
Poor's(R) and Moody's, as well as our own in-house evaluations, provide
portfolio managers with a guide to each security issuer's credit quality.
The chart on the following page illustrates the qualitative breakdown of the
fund's investments at the close of the period.
This discussion reflects our strategies for the fund and includes our opinions
at the close of the reporting period. Since economic and market conditions are
constantly changing, our strategies, evaluations, conclusions and decisions
regarding the portfolio holdings discussed above may change as new circumstances
arise. Although past performance of a specific investment or sector cannot
guarantee future performance, such information can help illustrate how we
analyze the securities we purchase or sell for the fund.
Looking forward, we will continue to emphasize investment-grade issues and
frequent dividend resets in order to minimize price fluctuation. We believe this
conservative approach should position the fund well for the future.
GRAPHIC MATERIAL 3 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance Summary
During the 12-month reporting period, the Franklin Corporate Qualified Dividend
Fund's price per share, as measured by net asset value, decreased 24.0 cents
from $23.76 on September 30, 1995, to $23.52 on September 30, 1996. The fund
paid income distributions totaling $1.15 per share over the same period.
Dividends will vary based on portfolio earnings, and past distributions are not
indicative of future trends.
For the period ended September 30, 1996, your fund provided a 12-month
cumulative total return of +3.94%. Cumulative total return reflects the change
in value of an investment, assuming reinvestment of dividends and capital gains,
if any. It does not include the maximum sales charge. Past performance is not
predictive of future results.
The fund's distribution rate was 4.52%, based on an annualization of September's
monthly dividend of 9.0 cents ($0.09) per share and the maximum offering price
of $23.88 on September 30, 1996. Based on the 1996 maximum federal corporate tax
rate of 35%, the taxable equivalent distribution rate was 6.22% assuming that
100% of your fund's dividends qualify for the 70% corporate dividends-received
deduction.
Franklin Corporate Qualified Dividend Fund
Dividend Distributions 10/1/95 - 9/30/96
Dividend
Month per Share
October 10 cents
November 10 cents
December 10 cents
January 10 cents
February 10 cents
March 10 cents
April 10 cents
May 9 cents
June 9 cents
July 9 cents
August 9 cents
September 9 cents
Total $1.15
We have always maintained a long-term perspective and encourage our shareholders
to do the same. While the fund may experience volatility from time to time, we
believe its performance should be satisfactory over the long term. As the table
on page 9 shows, if you had invested in the fund at its inception, your total
return would have been more than 74.69% by the end of the reporting period.
The chart on page 8 compares the fund's performance since inception with the
unmanaged Payden & Rygel 90-day T-Bill Index. As you can see, the fund's pre-tax
performance has surpassed that of the index, despite the inherent performance
differentials the index enjoys. More significantly, on an after-tax basis, the
fund's performance surpasses the T-Bill Index by an even wider margin.* Of
course, comparing a mutual fund to an unmanaged market index is never an exact
comparison. Indexes do not pay management fees to cover salaries of security
analysts or portfolio managers or pay commissions to buy and sell stocks and
bonds. Unlike unmanaged indexes, mutual funds can never be 100% invested because
they need to keep some cash on hand to redeem shares. The fund's performance
figures include the maximum initial sales charge, all fund expenses and account
fees.
*The value of Treasuries, if held to maturity, is fixed; principal is guaranteed
and interest is fixed. Investment return and share price of the Franklin
Corporate Qualified Dividend Fund fluctuate with market conditions.
GRAPHIC MATERIAL 4 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 5 OMITTED - SEE APPENDIX AT END OF DOCUMENT
If operating expenses such as these had been applied to the index, the index's
performance would have been lower. In addition, most of the securities in the
Franklin Corporate Qualified Dividend Fund reset their dividends on a 49-day or
90-day cycle. Please remember, an index is simply an indicator of performance,
and one cannot invest directly in an index.
Franklin Corporate Qualified Dividend Fund
Periods Ended September 30, 1996
Since
Inception
1-Year 5-Year (1/14/87)
NAV Cumulative Total Return1 3.94% 41.67% 77.34%
POP Cumulative Total Return1 2.39% 39.58% 74.69%
NAV Average Annual Total Return2 3.94% 7.22% 6.08%
POP Average Annual Total Return2 2.39% 6.90% 5.91%
Distribution Rate3 4.52%
Equivalent Taxable
Distribution Rate4 6.22%
30-Day Standardized Yield5 4.13%
Equivalent Taxable Yield4 5.69%
1. Net asset value (NAV) cumulative total returns show the change in value of an
investment over the periods indicated and do not include the sales charge.
Public offering price (POP) returns include the maximum 1.5% initial sales
charge.See Note below.
2. NAV average annual total returns represent the average annual change in value
of an investment over the specified periods and do not include the sales charge.
POP returns reflect the current, maximum 1.5% initial sales charge. See Note
below.
3. Distribution rate is based on an annualization of the fund's current 9.0 cent
per share monthly dividend and the maximum offering price of $23.88 on September
30, 1996.
4. Equivalent taxable distribution rate and yield assume the 1996 maximum
federal corporate tax rate of 35%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended September 30, 1996.
Note: All total return calculations assume reinvestment of dividends and capital
gains, if any, at net asset value. Your investment return and principal value
will fluctuate with market conditions, and you may have a gain or loss when you
sell your shares. Past performance is not predictive of future results.
FRANKLIN RISING DIVIDENDS FUND
Your Fund's Objective:
The Franklin Rising Dividends Fund seeks long-term capital appreciation
primarily through investing in the equity securities of companies that have paid
consistently rising dividends over the past 10 years.
We are happy to report that the Franklin Rising Dividends Fund performed well
over the fiscal year. As discussed in the Performance Summary on page 14, the
Class I share's one-year cumulative total return was 17.83%.
Significant additions to the portfolio this year included Dover Corp., Wallace
Computer Services, Inc., Nucor Corp., and Millipore Corp. All four companies
have increased their dividends each year for more than 20 years. Additionally,
their dividends have grown at a ten-year average annual rate of at least 10%.
These companies are leaders in their respective industries, and the fund
acquired these stocks at price/earnings ratios below their 10-year averages.
Several positions were reduced during the fiscal year, as price/earnings ratios
moved toward the high end of historical ranges, including Merck & Co., Inc.;
Pfizer, Inc.; and Walgreen Co. We also greatly reduced the fund's exposure to
Selective Insurance Group, Inc., because the company decided not to increase its
dividend despite good earnings. Likewise, we eliminated the fund's holding in
Stride Rite Corp., which reduced its dividend after experiencing poor operating
performance.
Notable dividend increases during the fiscal year came from Allied Group Inc.
(+29.4%), CoreStates Financial Corp. (+23.5%), Hewlett-Packard Co. (+20%),
Loctite Corp. (+20%), MMI Cos. Inc. (+20%), Mercury General Corp. (+20%), Newell
Co. (+16.7%), Philip Morris Cos, Inc. (+20%) and Wallace Computer Services, Inc.
(+30.2%).
Franklin Rising Dividends Fund vs.
Standard & Poor's 500 Stock Index
Common Stock Analysis
Quarter Ended September 30, 1996
Rising
Dividends Fund S&P 500*
Gross Income Yield 2.5% 2.3%
Price/Book Value 3.3x 3.1x
Average Market
Capitalization $9.5 billion $10.4 billion
Price/Earnings 16.50 19.69
Debt/Total Capital 18.3% 37.0%
BETA .71 1.00
Glossary of Terms:
Gross Income Yield: Rate of return paid on a stock in dividends. Calculated by
dividing the annual dividend by the price of the stock.
Price/Book Value: Ratio of a stock's price to its book value per share. Book
value is the total net asset value of a company's securities (total assets minus
total liabilities). Dividing book value by the number of common shares gives the
book value per share. A stock that has a low price to book value ratio may be
under-priced and thus a good value.
Market Capitalization: The value of a company as determined by multiplying the
market price of its stock by the number of its issued and outstanding shares.
Price/Earnings Ratio: The price of a stock divided by its earnings per share.
For instance, a stock that sold for $40 a share and earned $2 per share last
year, has a trailing P/E of 20. Companies with a P/E greater than 20 tend to be
young, faster-growing companies, while low P/E stocks tend to be in mature
industries or of established blue-chip companies. P/E is often used to
demonstrate how expensive a stock is, i.e., how much investors are willing to
pay for a company's earnings.
Debt/Total Capital: Total long-term debt divided by total of long-term debt and
shareholders' equity. This ratio indicates the extent to which a company has
borrowed money.
BETA: A measure of a stock's relative volatility. In this case, it measures the
covariance of a stock in relation to the S&P 500. Since the S&P 500 has a BETA
of 1.0, a beta below this number indicates a stock or fund should be less
volatile than the S&P 500, while a beta higher than 1.0 indicates greater
volatility than the S&P 500. The fund's beta of .71 indicates the fund should be
30% less volatile than the S&P 500.
*The S&P 500(R) Index is unmanaged, and one cannot invest directly in an index.
We base our investment strategy on the belief that companies with consistently
rising dividends should, over time, also realize appreciation in their stock
prices. Highlighted in the table on page 11 are several criteria we use to
select portfolio securities. To be eligible for purchase, stocks must pass
certain investment "screens," or screening procedures, requiring consistent and
substantial dividend increases, strong balance sheets and relatively low
price/earnings ratios. We seek fundamentally sound companies that meet our
standards and attempt to acquire them at attractive prices, often when they are
out of favor with other investors.
Franklin Rising Dividends Fund
Top 10 Stock Holdings on September 30, 1996
Based on Total Net Assets
Company % of total
Industry net assets
Trust Co Bank Corp., N.Y. 2.94%
Banks
Dimon, Inc. 2.89%
Consumer Goods & Services
Federal National
Mortgage Assoc. (FNMA) 2.78%
Financial Services
Rite Aid Corp. 2.65%
Retail
Family Dollar Stores, Inc. 2.62%
Retail
Allied Group, Inc. 2.56%
Insurance -- Property Casualty
Dover Corp. 2.41%
Industrial
Harper Group, Inc. 2.40%
Transportation
RLI Corp. 2.37%
Insurance -- Property Casualty
Philip Morris Cos., Inc. 2.36%
Consumer Goods
For a complete list of the fund's holdings, please see page 27 of this report.
Performance Summary
As shown in the table to the right, our ten largest positions on September 30,
1996, comprised 26% of the fund's total net assets. It is interesting to note
how these 10 companies would, in the aggregate, answer the fund's screening
criteria based on a simple average of statistical measures. On average, these 10
companies have raised their dividends 19 years in a row and by 860% in the last
10 years (333%, excluding FNMA's unrepeatable 5601%). The most recent dividend
increases for these 10 holdings averaged 12.5%, for a quarter-end yield of 2.7%
on September 30, 1996, and a dividend payout ratio of 37%. Long-term debt
averaged 20% of capitalization, and the average price/earnings ratio was 13.7,
versus 19.69 for that of the unmanaged Standard and Poor's 500 Stock Index on
the same date.
This discussion reflects our strategies for the fund and includes our opinions
at the close of the reporting period. Since economic and market conditions are
constantly changing, our strategies, evaluations, conclusions and decisions
regarding the portfolio holdings discussed above may change as new circumstances
arise. Although past performance of a specific investment or sector cannot
guarantee future performance, such information can help illustrate how we
analyze the securities we purchase for the fund.
Class I
Your fund's share price, as measured by net asset value, increased $2.72 during
the reporting period, from $17.31 on September 30, 1995, to $20.03 on September
30, 1996. The fund paid distributions totaling 33.9 cents ($0.339) per share,
including 28.0 cents ($0.28) in dividend income and a special 1995 year-end
income distribution of 5.9 cents ($0.059).
The fund posted a cumulative total return of +17.83% for the 12-month period
ended September 30, 1996. Total return measures the change in value of an
investment over the periods indicated, assuming reinvestment of all
distributions, and does not include the sales charge. Past performance is not
predictive of future results.
GRAPHIC MATERIAL 6 OMITTED - SEE APPENDIX AT END OF DOCUMENT
The graph to the right compares the performance of the fund's Class I shares
since inception, with that of the unmanaged Wilshire Midcap Growth Index and the
Consumer Price Index (CPI). As you can see, the fund's performance has exceeded
the increase in the CPI, which means your investment returns have surpassed the
rate of inflation, a primary goal of any investment. Please note that the
Wilshire Midcap Growth Index differs from the fund in that it includes companies
with market capitalizations (the market value of a company's issued and
outstanding stock) ranging from $300 million to $1.3 billion, while your fund's
portfolio includes companies with smaller market capitalizations and ranges from
$83 million to $107 billion.
Comparing a mutual fund with an unmanaged index, however, is never an exact
comparison. Indexes do not pay management fees to cover salaries of security
analysts or portfolio managers, or pay commissions to buy and sell stocks and
bonds. Unlike unmanaged indexes, mutual funds can never be 100% invested because
they need to keep some cash on hand to redeem shares. The fund's performance
figures also include the maximum initial sales charge, all fund expenses and
account fees. If operating expenses such as the fund's had been applied to the
index, the index's performance would have been lower. Please remember, an index
is simply a measure of performance, and one cannot invest in an index directly.
Franklin Rising Dividends Fund -- Class I
Periods Ended September 30, 1996
Since
Inception
1-Year 5-Year (1/14/87)
Cumulative Total Return1 17.83% 54.88% 150.94%
Average Annual Total Return2 12.50% 8.14% 9.42%
Distribution Rate3 1.34%
30-Day Standardized Yield4 1.12%
Value of $10,000 Investment5 $11,250 $14,788 $23,962
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include the sales charge. See Note below.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods and reflects the current, maximum 4.50%
initial sales charge. See Note below.
3. Distribution rate is based on an annualization of the current 7.0 cent per
share quarterly dividend and the maximum offering price of $20.97 on September
30, 1996.
4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended September 30, 1996.
5. These figures represent the value of a hypothetical $10,000 investment in the
fund over the periods indicated and includes the maximum 4.5% sales charge. See
Note below.
Note: Prior to July 1, 1994, Class I shares were offered at a lower initial
sales charge. Thus, actual total returns for purchasers of shares during that
period would have been somewhat higher than noted above. All total return
calculations assume reinvestment of dividends and capital gains, if any, at net
asset value. Your investment return and principal value will fluctuate with
market conditions, and you may have a gain or loss when you sell your shares.
Past performance is not predictive of future results.
Performance Summary
Class II
Your fund's share price, as measured by net asset value, increased $2.70 during
the reporting period, from $17.28 on September 30, 1995, to $19.98 on September
30, 1996. The fund paid distributions totaling 24.46 cents ($0.2446) per share,
including 20.36 cents ($0.2036) in dividend income and a special 1995 year-end
income distribution of 4.1 cents ($0.041).
The fund posted a cumulative total return of +17.16% for the 12-month period
ended September 30, 1996. Total return measures the change in value of an
investment over the periods indicated, assuming reinvestment of dividends, and
does not include sales charges. Past performance is not predictive of future
results.
The graph on page 18 compares the performance of the fund's Class II shares
since inception, with that of the unmanaged Wilshire Midcap Growth Index and the
Consumer Price Index (CPI). As you can see, the fund's performance has exceeded
the increase in the CPI, which means your investment returns have surpassed the
rate of inflation, a primary goal of any investment. Please note that the
Wilshire Midcap Growth Index differs from the fund in that it includes companies
with market capitalizations (the market value of a company's issued and
outstanding stock) ranging from $300 million to $1.3 billion, while your fund's
portfolio includes companies with smaller market capitalizations and ranges from
$83 million to $107 billion.
Comparing a mutual fund with an unmanaged index, however, is never an exact
comparison. Indexes do not pay management fees to cover salaries of security
analysts or portfolio managers, or pay commissions to buy and sell stocks and
bonds. Unlike unmanaged indexes, mutual funds can never be 100% invested because
they need to keep some cash on hand to redeem shares. The fund's performance
figures also include the maximum initial sales charge, all fund expenses and
account fees. If operating expenses such as the fund's had been applied to the
index, the index's performance would have been lower. Please remember, an index
is simply a measure of performance, and one cannot invest in an index directly.
GRAPHIC MATERIAL 7 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Franklin Rising Dividends Fund -- Class II
Periods Ended September 30, 1996
Since
Inception
1-Year (5/1/95)
Cumulative Total Return1 17.16% 32.22%
Average Annual Total Return2 15.03% 20.19%
Distribution Rate3 .88%
30-Day Standardized Yield4 .64%
Value of $10,000 Investment5 $11,503 $12,987
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include sales charges.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods and reflects the current, maximum 1.0%
initial sales charge as well as the 1.0% contingent deferred sales charge,
applicable to shares redeemed within the first 18 months of investment.
3. Distribution rate is based on an annualization of the current 4.46 cent per
share quarterly dividend and the maximum offering price of $20.18 on September
30, 1996.
4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended September 30, 1996.
5. These figures represent the value of a hypothetical $10,000 investment in the
fund over the periods indicated and includes the maximum 1% initial sales
charge. See Note below.
Note: All total return calculations assume reinvestment of dividends and capital
gains, if any, at net asset value. Your investment return and principal value
will fluctuate with market conditions, and you may have a gain or loss when you
sell your shares. Past performance is not predictive of future results.
FRANKLIN INVESTMENT GRADE INCOME FUND
Your Fund's Objective:
The Franklin Investment Grade Income Fund seeks to generate a maximum level of
high current income consistent with investing in investment-grade debt
securities having primarily intermediate maturities. The fund seeks to offer a
higher total return than a money market fund, generally with less risk to
principal than a fund composed of either long-term securities or securities that
are below investment-grade quality. Because of the fund's continuing emphasis on
a shorter maturity structure, its share price, as measured by net asset value,
fluctuated narrowly during the reporting period. On September 30, 1996, the
fund's net asset value was $9.01, down only slightly from $9.04 at the beginning
of the period.
During the 12-month period, long-term interest rates exhibited the type of
volatility that leads many cautious investors to prefer the greater stability
associated with short- and intermediate-term investment instruments, even though
they have lower yields. In 1995, 30-year Treasuries gained 8 points (+7.64%)
between October 1 and December 31, as the yield dropped from 6.51% to 5.95%.+*
(A bond's price moves in the opposite direction as its yield. This means if new
bonds are being issued with lower yields, prices on existing bonds will rise,
and vice versa.) Then bond prices plummeted 14.19 points (-12.59%) as yields
soared to 6.99% on September 30, 1996.
+Source: Bloomberg.
*Calculated based on closing market bid yields on actively traded Treasuries in
the over-the-counter market.
As always, we seek to control interest-rate risk and credit risk by carefully
selecting securities and actively managing their maturities. The chart on page
21 illustrates the fund's credit quality breakdown. In addition, the
weighted-average credit quality of the fund was AA, as measured by Standard and
Poor's(R) Corporation. All investments are call-protected for life.
On September 30, 1996, 37% of the portfolio's total net assets consisted of
government and government-related bonds, 24% straight, short- and
intermediate-term corporate bonds, 14% corporate "put" bonds, and 25% cash and
cash equivalents.
The use of "put" bonds is an integral part of our conservative investment
strategy. A put bond is one that can be redeemed before maturity at face value
(par). Thus, if interest rates rise, we can redeem a put bond early, at par on
the optional retirement date, and reinvest the proceeds at the new, higher
interest rates. Conversely, if interest rates decline by the security's optional
retirement date, we can either keep the higher-yielding bond, or sell it at a
favorable price.
On September 30, 1996, the fund's weighted average maturity was 1.3 years, using
the optional put dates as the effective maturities, and 3.9 years using the
stated maturity dates.
GRAPHIC MATERIAL 8 OMITTED - SEE APPENDIX AT END OF DOCUMENT
We will continue to maintain our conservative investment posture. It is our
belief that this strategy can enable us to produce solid total returns without
subjecting the portfolio's share price to significant price volatility.
Performance Summary
Your fund's share price, as measured by net asset value, decreased 3.0 cents
($.03) from $9.04 on September 30, 1995, to $9.01 on September 30, 1996.
During the 12-month period, your fund paid income distributions totaling 40.6
cents ($0.406) per share, including 39.6 cents ($0.396) per share in monthly
dividend income and a special 1995 year-end income distribution of 1.0 cent
($0.01) per share. Based on an annualization of the current monthly dividend of
3.3 cents ($0.033) per share and the maximum offering price of $9.41 on
September 30, 1996, your fund's distribution rate was 4.21%. Distributions will
vary based on the earnings of the fund's portfolio, and past distributions are
not predictive of future trends.
For the 12-month period ended September 30, 1996, your fund posted a cumulative
total return of +4.25%. Cumulative total return measures the change in value of
an investment over the specified periods, and assumes reinvestment of dividends
and capital gains. It does not include the initial sales charge. Past
performance does not guarantee future results.
GRAPHIC MATERIAL 9 OMITTED - SEE APPENDIX AT END OF DOCUMENT
The graph above compares the fund's performance, since inception, with the
Consumer Price Index (CPI) and the Lehman Brothers Intermediate U.S. Government
Bond Index. As the graph illustrates, the fund has exceeded the CPI, keeping
your purchasing power well ahead of inflation -- a primary goal of any
investment. Your fund's performance has closely followed the performance of the
unmanaged Lehman Brothers Intermediate U.S. Government Bond Index.
Comparing a mutual fund with an unmanaged index, however, is never an exact
comparison. For one, indexes do not pay management fees to cover salaries of
security analysts or portfolio managers, or pay commissions to buy and sell
bonds. Unlike unmanaged indexes, mutual funds can never be 100% invested because
they need to keep some cash on hand to redeem shares. The fund's performance
figures also include the maximum initial sales charge, all fund expenses and
account fees. If operating expenses such as the fund's had been applied to the
index, the index's performance would have been lower. Please remember, an index
is simply a measure of performance, and one cannot invest in an index directly.
Franklin Investment Grade Income Fund
Periods Ended September 30, 1996
Since
Inception
1-Year 5-Year (1/14/87)
Cumulative Total Return1 4.25% 36.21% 77.39%
Average Annual Total Return2 -.17% 5.45% 5.61%
Distribution Rate3 4.21%
30-Day Standardized Yield4 4.57%
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include the sales charge. See Note below.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods and reflects the current, maximum 4.25%
initial sales charge. See Note below.
3. Distribution rate is based on an annualization of the current 3.3 cent per
share monthly dividend and the maximum offering price of $9.41 on September 30,
1996.
4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended September 30, 1996.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge. Thus, actual total returns for purchasers of shares during that period
would have been somewhat different than noted above. Effective May 1, 1994, the
fund eliminated the sales charge on reinvested dividends and implemented a plan
of distribution under the Rule 12b-1, which affects subsequent performance. All
total return calculations assume reinvestment of dividends and capital gains at
net asset value and reflect 12b-1 fees from the date of the plan's
implementation. Your investment return and principal value will fluctuate with
market conditions, and you may have a gain or loss when you sell your shares.
Past performance is not predictive of future results.
Franklin Investment Grade Income Fund
Dividend Distributions 10/1/95 - 9/30/96
Dividend
Month per Share
October 3.3 cents
November 3.3 cents
December 4.3 cents+
January 3.3 cents
February 3.3 cents
March 3.3 cents
April 3.3 cents
May 3.3 cents
June 3.3 cents
July 3.3 cents
August 3.3 cents
September 3.3 cents
Total 40.6 cents
+The December dividend includes both a regular dividend of 3.3 cents, plus a
special 1995 year-end income distribution of 1.0 cent per share
FRANKLIN MANAGED TRUST
Statement of Investments in Securities and Net Assets, September 30, 1996
<TABLE>
<CAPTION>
Value
Shares Franklin Corporate Qualified Dividend Fund (Note 1)
a Adjustable Rate Preferred Stocks 13.8%
Commercial Banks & Bank Holding Companies 7.3%
<S> <C> <C>
48,200 Citicorp, 5.754% adj. rate pfd., Series 19 ...................................... $ 1,069,438
22,400 Marine Midland Bank (HONSHA), 6.00% adj. rate pfd., Series A..................... 949,200
-------------
2,018,638
-------------
Electric Utilities 6.5%
10,000 Arizona Public Service Co., 6.00% adj. rate pfd., Series Q....................... 830,000
46,700 Toledo Edison Co., 7.08% cum. adj. rate pfd., Series A........................... 969,025
-------------
1,799,025
-------------
Total Adjustable Rate Preferred Stocks (Cost $4,260,792)................... 3,817,663
-------------
b Auction Rate Preferred Stocks 45.5%
13c CNA Financial Corp., 4.03%, Series F............................................. 1,305,952
13c General Electric Capital Corp., 3.86%, Series K.................................. 1,305,855
13c International Lease Finance, 3.99%, Series B..................................... 1,301,008
1,000d Morgan (JP), Inc., 3.83%, Series C............................................... 1,002,021
13c Northern Trust Corp., 3.994%, Series C........................................... 1,303,890
10c Republic NY Corp., 3.95%, Series A .............................................. 1,000,775
13c Rhone-Poulenc Rorer, 5.35%, Series 1 ............................................ 1,310,819
13c Sara Lee Corp., 3.933%, Series D................................................. 1,301,704
15c Transamerica Co., 4.001%, Series A-1............................................. 1,502,167
13c Virginia Electric & Power Co., 3.985%, Series 92-A .............................. 1,305,199
-------------
Total Auction Rate Preferred Stocks (Cost $12,600,000)..................... 12,639,390
-------------
Fixed Rate Preferred Stocks 25.6%
Commercial Banks 5.0%
28,000 Bankers Trust (New York), 7.375% flex. rate pfd., Series J....................... 1,406,748
-------------
Financial Services 3.7%
10,000 Household Finance Co., 7.25% pfd., Series 92-A................................... 1,025,000
-------------
Industrial 3.1%
28,913 McDermott, Inc., $2.60 cum. S.F., pfd., Series B................................. 856,547
-------------
Pharmaceuticals 4.7%
13c Smithkline Beecham Holding, flex. rate pfd., 5.58%, Series A-1 .................. 1,300,000
-------------
Utilities 9.1%
15,000 Entergy Louisiana, Inc., 7.00% S.F., pfd.,....................................... 1,500,000
10,000 Rochester Gas & Electric Co., 7.45% S.F., pfd., Series S......................... 1,031,250
-------------
2,531,250
-------------
Total Fixed Rate Preferred Stocks (Cost $7,263,184)........................ 7,119,545
-------------
Total Long Term Investments (Cost $24,123,976)............................. 23,576,598
-------------
eReceivables from Repurchase Agreements 10.1%
$ 2,826,067 Joint Repurchase Agreement, 5.687%, 10/01/96, (Maturity Value $2,817,343)
(Cost $2,816,898)
Aubrey G. Lanston & Co., Inc., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 6.00%, 09/30/98
Bear, Stearns & Co., Inc., (Maturity Value $347,268)
Collateral: U.S. Treasury Bills, 02/27/97
U.S. Notes, 5.75% - 5.875%, 08/15/98 - 10/31/00
Donaldson, Lufkin & Jenrette Securities Corp., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 4.75% - 8.50%, 07/15/97 - 08/15/01
Fuji Securities, Inc., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 5.75% - 6.75%, 05/31/97 - 04/30/00
Lehman Brothers, Inc., (Maturity Value $386,467)
Collateral: U.S. Treasury Notes, 5.125% - 8.00%, 02/28/98 - 06/30/01
The Nikko Securities Co. International, Inc., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 5.375% - 6.50%, 11/30/97 - 05/31/01
SBC Warburg, Inc., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 6.00%, 05/31/98
UBS Securities, L.L.C., (Maturity Value $347,268)
Collateral: U.S. Treasury Notes, 5.75% - 7.375%, 07/31/97 - 11/15/97 ........... $ 2,816,898
-------------
Total Investments (Cost $26,940,874) 95.0%............................ 26,393,496
Other Assets and Liabilities, Net 5.0%................................ 1,397,919
-------------
Net Assets 100.0%..................................................... $27,791,415
=============
At September 30, 1996, the net unrealized depreciation based on
the cost of investments for income tax purposes of $26,940,874
was as follows:
Aggregate gross unrealized appreciation for all investments in which there
was an excess of value over tax cost............................................ $ 84,253
Aggregate gross unrealized depreciation for all investments in which there
was an excess of tax cost over value............................................ (631,631)
-------------
Net unrealized depreciation.................................................... $ (547,378)
=============
PORTFOLIO ABBREVIATIONS:
L.L.C. - Limited Liability Corp.
S.F. - Sinking Fund
aDividend rates adjust quarterly in reference to various U.S. Treasury
benchmarks.
bDividend rates adjust in response to periodic auctions, normally on a 49-day
cycle.
c1 share = $100,000 par value
d1 share = $1,000 par value
eFace amount for repurchase agreements is for the underlying collateral. See
Note 1(f) regarding joint repurchase agreement.
FRANKLIN MANAGED TRUST
Statement of Investments in Securities and Net Assets, September 30, 1996
Value
Shares Franklin Rising Dividends Fund (Note 1)
Common Stocks 96.6%
Banks 13.0%
<S> <C> <C>
111,000 Banc One Corp. ................................................................. $ 4,551,000
103,500 CoreStates Financial Corp. ..................................................... 4,476,375
150,000 Mercantile Bankshares Corp. .................................................... 4,443,750
121,800 National Commerce Bancorp. ..................................................... 3,988,950
100,500 State Street Boston Corp. ...................................................... 5,766,188
348,400 TrustCo Bank Corp., New York ................................................... 8,274,500
142,000 Wilmington Trust Corp. ......................................................... 5,076,500
-------------
................................................................................ 36,577,263
-------------
Business Services 4.0%
256,900 Ennis Business Forms ........................................................... 2,761,675
103,500 Standard Register Co. .......................................................... 2,859,188
199,500 Wallace Computer Services, Inc. ................................................ 5,635,875
-------------
11,256,738
-------------
Consumer Goods & Services 14.4%
141,900 Alberto-Culver Co., Class A .................................................... 5,197,088
42,900 Block Drug Co., Inc., Class A................................................... 1,925,138
425,000 Dimon, Inc. .................................................................... 8,128,125
175,200 Newell Co. ..................................................................... 5,256,000
74,000 Philip Morris Cos., Inc. ....................................................... 6,641,500
190,600 Stanhome, Inc. ................................................................. 5,503,575
180,000 Universal Corp. ................................................................ 4,590,000
115,000 UST, Inc. ...................................................................... 3,406,875
-------------
40,648,301
-------------
Drugs/Health Care 6.6%
205,000 Bard, (C.R.), Inc. ............................................................. 6,380,625
43,200 Bristol-Myers Squibb Co. ....................................................... 4,163,400
59,000 Merck & Co., Inc. .............................................................. 4,152,125
38,800 Pfizer, Inc. ................................................................... 3,070,050
35,500 West Co., Inc. ................................................................. 918,563
-------------
18,684,763
Electronics/Technology 6.1%
-------------
41,900 Cohu, Inc. ..................................................................... 775,150
68,700 General Electric Co. ........................................................... 6,251,700
106,500 Hewlett-Packard Co. ............................................................ 5,191,875
89,300 Rockwell International Corp. ................................................... 5,034,288
-------------
17,253,013
-------------
Energy 2.2%
40,000 Royal Dutch Petroleum Co., New York Shares, ADR................................. $ 6,245,000
-------------
Financial Services 2.8%
224,200 Federal National Mortgage Association .......................................... 7,818,975
-------------
Industrial 16.7%
54,700 Avery Dennison Corp. ........................................................... 3,035,850
18,700 Brady, (W.H.) Co. .............................................................. 469,838
141,900 Dover Corp. .................................................................... 6,775,725
58,400 Kaydon Corp. ................................................................... 2,511,200
117,000 Kimball International, Inc., Class B ........................................... 4,285,125
48,600 Leggett & Platt, Inc. .......................................................... 1,427,625
108,300 Loctite Corp. .................................................................. 4,900,575
134,700 Millipore Corp. ................................................................ 5,320,650
160,500 Monsanto Co. ................................................................... 5,858,250
142,000 Myers Industries, Inc. ......................................................... 2,130,000
107,800 Nucor Corp. .................................................................... 5,470,850
160,000 Superior Industries International, Inc. ........................................ 3,860,000
77,600 Superior Surgical Manufacturing Co., Inc. ...................................... 921,500
-------------
46,967,188
-------------
Insurance - Life & Health .7%
36,800 Jefferson-Pilot Corp. .......................................................... 1,904,400
-------------
Insurance - Property Casualty 15.4%
187,500 Allied Group, Inc. ............................................................. 7,218,750
26,800 American International Group, Inc. ............................................. 2,700,100
125,000 Chubb Corp. .................................................................... 5,750,000
129,400 Mercury General Corp. .......................................................... 6,081,800
190,500 MMI Cos., Inc. ................................................................. 5,738,813
256,250 RLI Corp. ...................................................................... 6,662,500
107,000 SAFECO Corp. ................................................................... 3,745,000
19,400 Selective Insurance Group, Inc. ................................................ 649,900
89,000 St. Paul Cos., Inc. ............................................................ 4,939,500
-------------
43,486,363
-------------
Retail 10.5%
88,100 Circuit City Stores, Inc. ...................................................... 3,182,612
425,000 Family Dollar Stores, Inc. ..................................................... 7,384,374
206,000 Rite Aid Corp. ................................................................. 7,467,500
94,658 The Limited, Inc. .............................................................. 1,810,333
Retail (cont.)
83,000 Walgreen Co. ................................................................... $ 3,071,000
247,500 Wal-Mart Stores, Inc. .......................................................... 6,527,812
-------------
29,443,631
-------------
Transportation 4.2%
314,500 Arnold Industries, Inc. ........................................................ 4,953,374
330,000 Harper Group, Inc. ............................................................. 6,765,000
-------------
11,718,374
-------------
Total Long Term Investments (Cost $208,052,737) .......................... 272,004,009
-------------
Face
Amount
e Receivables from Repurchase Agreements 2.9%
$ 8,196,572 Joint Repurchase Agreement, 5.687%, 10/01/96, (Maturity Value $8,170,322)
(Cost $8,169,032)
Aubrey G. Lanston & Co., Inc., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 6.00%, 09/30/98
Bear, Stearns & Co., Inc., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Bills, 02/27/97
U.S. Treasury Notes, 5.75% - 5.875%, 08/15/98 - 10/31/00
Donaldson, Lufkin & Jenrette Securities Corp., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 4.75% - 8.50%, 07/15/97 - 08/15/01
Fuji Securities, Inc., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 5.75% - 6.75%, 05/31/97 - 04/30/00
Lehman Brothers, Inc., (Maturity Value $1,120,762)
Collateral: U.S. Treasury Notes, 5.125% - 8.00%, 02/28/98 - 06/30/01
The Nikko Securities Co. International, Inc., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 5.375% - 6.50%, 11/30/97 - 05/31/01
SBC Warburg, Inc., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 6.00%, 05/31/98
UBS Securities, L.L.C., (Maturity Value $1,007,080)
Collateral: U.S. Treasury Notes, 5.75% - 7.375%, 07/31/97 - 11/15/97 .......... 8,169,032
-------------
Total Investments (Cost $216,221,769) 99.5%.......................... 280,173,041
Other Assets and Liabilities, Net .5%................................ 1,455,054
-------------
Net Assets 100.0% ................................................... $281,628,095
=============
At September 30, 1996, the net unrealized appreciation based on
the cost of investments for income tax purposes of $216,221,769
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost .................................... $ 64,976,665
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value .................................... (1,025,393)
-------------
Net unrealized appreciation .................................................. $ 63,951,272
=============
PORTFOLIO ABBREVIATIONS:
L.L.C. - Limited Liability Corp.
eFace amount for repurchase agreements is for the underlying collateral. See
Note 1(f) regarding joint repurchase agreement.
FRANKLIN MANAGED TRUST
Statement of Investments in Securities and Net Assets, September 30, 1996
Face Value
Amount Franklin Investment Grade Income Fund (Note 1)
U.S. Government Securities and Agencies 37.3%
<S> <C> <C>
$ 2,000,000 Tennessee Valley Authority, bonds, (putable* 07/15/01, callable 07/15/20), 6.235%,
07/15/45 ........................................................................ $ 1,979,876
2,000,000 U.S. Treasury Notes, 5.625%, 06/30/97 ............................................ 2,000,624
2,000,000 U.S. Treasury Notes, 5.875%, 07/31/97 ............................................ 2,003,124
1,000,000 U.S. Treasury Notes, 5.625%, 10/31/97 ............................................ 997,813
1,000,000 U.S. Treasury Notes, 5.125%, 04/30/98 ............................................ 987,187
2,000,000 U.S. Treasury Notes, 5.875%, 08/15/98 ............................................ 1,993,124
1,000,000 U.S. Treasury Notes, 5.875%, 03/31/99 ............................................ 992,812
-------------
Total U.S. Government Securities and Agencies (Cost $11,030,316)............ 10,954,560
-------------
Corporate Bonds 37.4%
Consumer Goods 5.1%
1,500,000 Heinz (H.J.) Co., notes, 5.50%, 09/15/97 ......................................... 1,494,561
-------------
Electric Utilities 3.4%
1,000,000 Southern California Edison Co., notes, 5.875%, 02/01/98 .......................... 994,581
-------------
Financial Services 18.6%
1,300,000 Associates Corp. of North America, deb., (putable * 03/03/98), Series B, 7.95%,
02/15/10 ........................................................................ 1,384,935
1,500,000 Ford Motor Credit Corp., global bond, 6.25%, 02/26/98 ............................ 1,503,765
1,500,000 GE Capital Corp., medium term notes (step up to 8.125% or putable* 04/01/98), 5.80%,
04/01/08 ........................................................................ 1,566,700
1,000,000 Norwest Financial, Inc., senior notes, 6.23%, 09/01/98 ........................... 999,189
-------------
5,454,589
-------------
Industrial 3.5%
1,000,000 WMX Technologies, Inc., notes (step up to 8.00% or putable * 04/30/97), 6.22%,
04/30/04 ........................................................................ 1,046,294
-------------
Telephone Utilities 6.8%
1,000,000 Bellsouth Telecommunications Corp., notes, 6.50%, 02/01/00 ....................... 1,008,750
1,000,000 New England Telephone and Telegraph, notes, 6.25%, 12/15/97 ...................... 1,001,567
-------------
2,010,317
-------------
Total Corporate Bonds (Cost $10,729,847).................................... 11,000,342
-------------
Total Long Term Investments (Cost $21,760,163).............................. 21,954,902
-------------
e Receivables from Repurchase Agreements 23.8%
$ 7,006,563 Joint Repurchase Agreement, 5.687%, 10/01/96, (Maturity Value $6,984,908)
(Cost $6,983,805)
Aubrey G. Lanston & Co., Inc., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 6.00%, 09/30/98
Bear, Stearns & Co., Inc., (Maturity Value $860,965)
Collateral: U.S. Treasury Bills, 02/27/97
U.S. Treasury Notes, 5.75% - 5.875%, 08/15/98 - 10/31/00
Donaldson, Lufkin & Jenrette Securities Corp., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 4.75% - 8.50%, 07/15/97 - 08/15/01
Fuji Securities, Inc., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 5.75% - 6.75%, 05/31/97 - 04/30/00
Lehman Brothers, Inc., (Maturity Value $958,153)
Collateral: U.S. Treasury Notes, 5.125% - 8.00%, 02/28/98 - 06/30/01
The Nikko Securities Co. International, Inc., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 5.375% - 6.50%, 11/30/97 - 05/31/01
SBC Warburg, Inc., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 6.00%, 05/31/98
UBS Securities, L.L.C., (Maturity Value $860,965)
Collateral: U.S. Treasury Notes, 5.75% - 7.375%, 07/31/97 - 11/15/97 ............ $ 6,983,805
-------------
Total Investments (Cost $28,743,968) 98.5%............................. 28,938,707
Other Assets and Liabilities, Net 1.5%................................. 433,466
-------------
Net Assets 100.0%...................................................... $29,372,173
=============
At September 30, 1996, the net unrealized appreciation based on
the cost of investments for income tax purposes of $28,743,968
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost....................................... $ 294,462
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ...................................... (99,723)
-------------
Net unrealized appreciation..................................................... $ 194,739
=============
PORTFOLIO ABBREVIATIONS:
L.L.C. - Limited Liability Corp.
*Holder may choose either to redeem at par on put date or, if more advantageous,
to hold to final stated maturity. eFace amount for repurchase agreements is for
the underlying collateral. See Note 1(f) regarding joint repurchase agreement.
FRANKLIN MANAGED TRUST
Financial Statements
Statements of Assets and Liabilities
September 30, 1996
Franklin Franklin
Corporate QualifiedFranklin RisingInvestment Grade
Assets: Dividend Fund Dividends Fund Income Fund
------------ ---------- -----------
Investments in securities:
<S> <C> <C> <C>
At identified cost............................................ $24,123,976 $208,052,737 $21,760,163
============ ========== ===========
At value...................................................... $23,576,598 $272,004,009 $21,954,902
Receivables from repurchase agreements, at value and cost...... 2,816,898 8,169,032 6,983,805
Cash........................................................... -- -- 40,339
Receivables:
Dividends and interest........................................ 35,593 772,948 274,503
Investment securities sold.................................... 1,200,000 1,366,627 --
Capital shares sold........................................... 300,075 274,519 167,942
------------ ---------- -----------
Total assets.............................................. 27,929,164 282,587,135 29,421,491
------------ ---------- -----------
Liabilities:
Payables:
Investment securities purchased............................... -- 229,698 --
Capital shares repurchased.................................... 100,000 290,320 11,346
Management fees............................................... 11,432 173,008 12,170
Distribution fees............................................. 9,952 207,775 9,900
Shareholder servicing costs................................... 450 23,726 1,850
Accrued expenses and other liabilities......................... 15,915 34,513 14,052
------------ ---------- -----------
Total liabilities......................................... 137,749 959,040 49,318
------------ ---------- -----------
Net assets, at value............................................ $27,791,415 $281,628,095 $29,372,173
============ ========== ===========
Net assets consist of:
Undistributed net investment income............................ $ 222,995 $ 184,895 $ 233,239
Unrealized appreciation (depreciation) on investments.......... (547,378) 63,951,272 194,739
Net realized gain (loss)....................................... (3,224,886) 15,056,455 (1,154,744)
Class I capital shares......................................... 31,340,684 198,959,187 30,098,939
Class II capital shares........................................ -- 3,476,286 --
------------ ---------- -----------
Net assets, at value............................................ $27,791,415 $281,628,095 $29,372,173
============ ========== ===========
Class I shares:
Net assets, at value........................................... $27,791,415 $277,746,248 $29,372,173
============ ========== ===========
Shares outstanding............................................. 1,181,769 13,865,090 3,259,170
============ ========== ===========
Net asset value per share*..................................... $23.52 $20.03 $9.01
============ ========== ===========
Maximum offering price per share (100/98.5, 100/95.5, 100/95.75 of
net asset value per share, respectively)....................... $23.88 $20.97 $9.41
============ ========== ===========
Class II shares:
Net assets, at value........................................... $ 3,881,847
==========
Shares outstanding............................................. 194,268
==========
Net asset value per share*..................................... $19.98
==========
Maximum offering price per share (100/99 of net asset value per share) $20.18
==========
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
Statements of Operations
for the year ended September 30, 1996
Franklin Franklin
Corporate Investment
Qualified Franklin Rising Grade Income
Dividend Fund Dividends Fund Fund
--------- ----------- ---------
Investment income:
<S> <C> <C> <C>
Dividends+....................................................... $1,303,312 $ 6,566,371 $--
Interest (Note 1)................................................ 257,928 1,335,489 1,690,723
--------- ----------- ---------
Total income................................................ 1,561,240 7,901,860 1,690,723
--------- ----------- ---------
Expenses:
Management fees (Note 5)......................................... 136,800 2,052,026 144,011
Distribution fees - Class I (Note 5)............................. 58,464 1,229,815 54,410
Distribution fees - Class II (Note 5)............................ -- 24,465 --
Shareholder servicing costs (Note 5)............................. 5,368 273,871 22,356
Accounting fees (Note 5)......................................... 40,000 40,000 40,000
Registration and filing fees..................................... 21,950 32,211 12,008
Professional fees................................................ 17,620 30,237 10,668
Reports to shareholders.......................................... 6,852 119,054 15,106
Trustees' fees and expenses...................................... 3,246 30,511 3,409
Custodian fees................................................... 967 10,370 1,086
Other............................................................ 842 9,233 2,259
--------- ----------- ---------
Total expenses.............................................. 292,109 3,851,793 305,313
--------- ----------- ---------
Net investment income....................................... 1,269,131 4,050,067 1,385,410
--------- ----------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss)......................................... (186,161) 18,376,109 136,241
Net unrealized appreciation (depreciation)....................... (29,860) 22,297,141 (291,022)
--------- ----------- ---------
Net realized and unrealized gain (loss) on investments............ (216,021) 40,673,250 (154,781)
--------- ----------- ---------
Net increase in net assets resulting from operations.............. $1,053,110 $44,723,317 $1,230,629
========= =========== =========
+Net of foreign taxes withheld of $56,596 in the Franklin Rising Dividends Fund.
Statements of Changes in Net Assets
for the years ended September 30, 1996 and 1995
Franklin Corporate Franklin Rising Franklin Investment
Qualified Dividend Fund Dividends Fund Grade Income Fund
------------------- -------------------- -------------------
1996 1995 1996 1995 1996 1995
--------- --------- ---------- ---------- --------- ---------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income......... $ 1,269,131 $ 1,422,873 $ 4,050,067 $ 5,237,925 $ 1,385,410 $ 1,428,227
Net realized gain (loss) from
security transactions.......... (186,161) (61,429) 18,376,109 7,405,862 136,241 (759,019)
Net unrealized appreciation
(depreciation) on investments.. (29,860) 84,597 22,297,141 33,317,370 (291,022) 1,601,549
--------- --------- ---------- ---------- --------- ---------
Net increase in net assets
resulting from operations...... 1,053,110 1,446,041 44,723,317 45,961,157 1,230,629 2,270,757
Distributions to shareholders from
undistributed net investment
income:
Class I (Note 7)............. (1,330,351) (1,369,958) (4,942,788) (4,790,807) (1,292,338) (1,554,109)
Class II (Note 7)............ -- -- (29,691) (3,853) -- --
Increase (decrease) in net assets
from capital share transactions
(Note 3)....................... 275,623 (4,073,416) (20,100,001) (40,650,380) (389,824) (446,283)
--------- --------- ---------- ---------- --------- ---------
Net increase (decrease) in
net assets..................... (1,618) (3,997,333) 19,650,837 516,117 (451,533) 270,365
Net assets:
Beginning of year.............. 27,793,033 31,790,366 261,977,258 261,461,141 29,823,706 29,553,341
--------- --------- ---------- ---------- --------- ---------
End of year.................... $27,791,415 $27,793,033 $281,628,095 $261,977,258 $29,372,173 $29,823,706
========= ========= ========== ========== ========= =========
Undistributed net investment income included in net assets:
Beginning of year............. $ 284,215 $ 231,300 $ 1,107,307 $ 664,042 $ 140,167 $ 266,049
========= ========= ========== ========== ========= =========
End of year................... $ 222,995 $ 284,215 $ 184,895 $ 1,107,307 $ 233,239 $ 140,167
========= ========= ========== ========== ========= =========
</TABLE>
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin Managed Trust (the Trust) is an open-end, diversified management
investment company (mutual fund), registered under the Investment Company Act of
1940 as amended. The Trust consists of three separate funds (the Funds). Each of
the Funds issues a separate series of the Trust's shares and maintains a totally
separate investment portfolio.
The investment objectives of each Fund are as follows:
Fund Objective
- ------------------------------ --------------
Franklin Corporate Qualified Dividend Fund Income
Franklin Rising Dividends Fund Growth and Income
Franklin Investment Grade Income Fund Income
The Franklin Rising Dividends Fund offers two classes of shares, Class I and
Class II. Class I shares are sold with a higher front-end sales charge than
Class II shares. Each class of shares may be subject to a contingent deferred
sales charge and has the same rights, except with respect to the effect of the
respective sales charges, the distribution fees borne by each class, voting
rights on matters affecting a single class and the exchange privilege of each
class.
The offering of Class II shares began May 1, 1995, at which time all previously
outstanding shares became Class I shares.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. Security Valuation:
Portfolio securities listed on a securities exchange or on the NASDAQ for which
market quotations are readily available are valued at the last sale price or, if
there is no sale price, within the range of the most recent quoted bid and asked
prices. Other securities are valued based on a variety of factors, including
yield, risk, maturity, trade activity and recent developments related to the
securities. Portfolio securities which are traded both in the over the counter
market and on a securities exchange are valued according to the broadest and
most representative market determined by the manager. The Trust may utilize a
pricing service, bank or broker/dealer experienced in such matters to perform
any of the pricing functions, under procedures approved by the Board of Trustee
(the Board). Securities for which market quotations are not available are valued
in accordance with procedures established by the Board.
The value of auction rate preferred stock is determined based upon quotations
readily available in the marketplace. If there are no readily available
quotations, the value will be based upon the values of comparable traded
securities. When market quotations are not readily available for securities held
by the Funds, or for comparable securities, then such securities will be valued
at par value plus an accrual of the dividend to be received on the next dividend
payment date, as approved by the Board.
b. Income Taxes:
The Funds intend to continue to qualify for the tax treatment applicable to
regulated investment companies under the Internal Revenue Code and to make the
requisite distributions to shareholders which will be sufficient to relieve the
Funds from income and excise taxes. Each Fund is treated as a separate entity in
the determination of compliance with the Internal Revenue Code.
c. Security Transactions:
Security transactions are accounted for on the date the securities are purchased
or sold (trade date). Realized gains and losses on security transactions are
determined on the basis of specific identification.
d. Investment Income, Expenses and Distributions:
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income and estimated expenses are accrued daily.
Original issue discount is amortized as required by the Internal Revenue Code.
For the Franklin Rising Dividends Fund, realized and unrealized gains or losses
and net investment income, other than class specific expenses, are allocated
daily to each class of shares based upon the relative proportion of net assets
of each class.
e. Expense Allocation:
Common expenses incurred by the Trust are allocated among the Funds based on the
ratio of net assets of each Fund to the combined net assets. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.
f. Repurchase Agreements
The Funds may enter into a joint repurchase agreement whereby their uninvested
cash balances are deposited into a joint cash account to be used to invest in
one or more repurchase agreements with government securities dealers recognized
by the Federal Reserve Board and/or member banks of the Federal Reserve System.
The value and face amount of the joint repurchase agreement are allocated to the
Funds based on their pro-rata interest. A repurchase agreement is accounted for
as a loan by the Funds to the seller, collateralized by underlying U.S.
government securities, which are delivered to the Funds' custodian. The market
value, including accrued interest, of the initial collateralization is required
to be at least 102% of the dollar amount invested by the Funds, with the value
of the underlying securities marked to market daily to maintain coverage of at
least 100%. At September 30, 1996, all outstanding repurchase agreements held by
the Funds had been entered into on that date.
g. Accounting Estimates:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At September 30, 1996, for tax purposes, the Franklin Rising Dividends Fund had
accumulated net realized capital gains of $15,056,455.
The Franklin Corporate Qualified Dividend Fund and Franklin Investment Grade
Income Fund had capital loss carryovers as follows:
<TABLE>
<CAPTION>
Franklin Corporate Franklin Investment
Qualified Dividend Fund Grade Income Fund
--------------- ------------
<S> <C> <C> <C>
Capital loss carryovers expiring in: 1997 ............................. $1,251,202 $ 274,652
1998 ............................. 794,958 139,900
1999 ............................. 226,936 117,414
2000 ............................. 375,717 --
2002 ............................. 328,483 --
2003 ............................. 61,429 254,062
2004.............................. -- 368,716
--------------- ------------
$3,038,725 $1,154,744
=============== ============
</TABLE>
From November 1, 1995 through September 30, 1996, the Franklin Corporate
Qualified Dividend Fund incurred approximately $186,161 of realized capital
losses. As permitted by tax regulations, the Franklin Corporate Qualified
Dividend Fund intends to elect to defer these losses and treat them as having
arisen in the year ended September 30, 1997.
Capital loss carryovers of $5,368,105 for Franklin Corporate Qualified Dividend
Fund and $124,885 for Franklin Investment Grade Income Fund expired at September
30, 1996, and were reclassified to paid-in-capital.
For tax purposes, the aggregate cost of securities and unrealized appreciation
(depreciation) of the Funds are the same as for financial statement purposes at
September 30, 1996.
3. TRUST SHARES
At September 30, 1996, there was an unlimited number of $.01 par value shares of
beneficial interest authorized. Transactions in each of the Funds' shares for
the years ended September 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Franklin Corporate Franklin Rising Franklin Investment
Qualified Dividend Fund Dividends Fund Grade Income Fund
----------------- ------------------ -------------------
Class I shares: Shares Amount Shares Amount Shares Amount
------- ---------- -------- ---------- -------- ----------
1996
<S> <C> <C> <C> <C> <C> <C>
Shares sold ........................ 461,688 $10,870,468 2,088,118 $38,945,585 1,086,667 $ 9,800,009
Shares issued in reinvestment of
distributions ...................... 49,210 1,157,520 212,015 3,948,319 100,794 909,440
Shares redeemed .................... (499,062) (11,752,365) (3,505,315) (65,457,722) (1,227,244) $(11,099,273)
------- ---------- -------- ---------- -------- ----------
Net increase (decrease) ....... 11,836 $ 275,623 (1,205,182) $(22,563,818) (39,783) $ (389,824)
======= ========== ======== ========== ======== ==========
1995
Shares sold ........................ 551,238 $13,000,860 1,917,424 $29,601,493 1,017,305 $ 9,015,143
Shares issued in reinvestment of
distributions ...................... 50,778 1,195,996 245,418 3,737,669 114,062 1,005,381
Shares redeemed .................... (774,100) (18,270,272) (4,919,093) (75,002,011) (1,183,594) (10,466,807)
------- ---------- -------- ---------- -------- ----------
Net decrease .................. (172,084)$ (4,073,416) (2,756,251) $(41,662,849) (52,227) $ (446,283)
======= ========== ======== ========== ======== ==========
Class II shares:
1996
Shares sold ........................ 146,186 $2,716,874
Shares issued in reinvestment of
distributions ...................... 1,078 20,157
Shares redeemed .................... (14,322) (273,214)
-------- ----------
Net increase .................. 132,942 $2,463,817
======== ==========
1995*
Shares sold ........................ 61,207 $1,010,493
Shares issued in reinvestment of
distributions ...................... 119 1,976
-------- ----------
Net increase .................. 61,326 $1,012,469
======== ==========
*For the period May 1, 1995 to September 30, 1995.
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the year ended September 30, 1996 were as follows:
<TABLE>
<CAPTION>
Franklin Corporate Franklin RisingFranklin Investment
Qualified Dividend FundDividends Fund Grade Income Fund
--------------- ---------- ------------
<S> <C> <C> <C>
Purchases ............................................. $7,211,492 $78,548,405 $5,057,232
Sales ................................................. $5,610,939 $78,812,801 $4,406,023
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
a. Management Agreement:
Under the terms of a management agreement, Franklin Advisers, Inc. (Advisers)
provides investment advice, administrative services, office space and facilities
to each Fund, and receives fees computed monthly based on the average daily net
assets of each Fund, using the following annualized fee rates:
Franklin Corporate Franklin RisingFranklin Investment
Average Daily Net Assets Qualified Dividend FundDividends Fund Grade Income Fund
- ----------------------------------------- --------------- ---------- ------------
<S> <C> <C> <C>
First $500 million..................................... 0.50% 0.75% 0.50%
Over $500 million, up to and including $1 billion...... 0.45% 0.625% 0.45%
In excess of $1 billion................................ 0.40% 0.50% 0.40%
</TABLE>
Pursuant to the terms of the management agreement, each of the Funds also pays
accounting fees of $40,000 per year to Advisers for the provision of certain
accounting, bookkeeping and recordkeeping functions for the Funds. The terms of
the management agreement provide that aggregate annual expenses of each Fund be
limited to the extent necessary to comply with the limitations set forth in the
laws, regulations and administrative interpretations of the states in which each
Fund's shares are registered. For the year ended September 30, 1996, the Funds'
expenses did not exceed these limitations.
b. Shareholder Services Agreement:
Under the terms of a shareholder services agreement with Franklin/Templeton
Investor Services, Inc. (Investor Services), the Funds pay costs on a per
shareholder account basis. Shareholder servicing costs incurred by the Funds for
the year ended September 30, 1996, aggregated $301,595, of which $265,776 was
paid to Investor Services.
c. Distribution Plans and Underwriting Agreement:
Under the terms of distribution plans pursuant to Rule 12b-1 of the Investment
Company Act of 1940 (the Plans), the Franklin Rising Dividends Fund reimburses
Franklin/Templeton Distributors, Inc. (Distributors) in an amount up to a
maximum of 0.50% per annum for Class I and 1.00% per annum for Class II, of the
average daily net assets of such class, while the Franklin Corporate Qualified
Dividend Fund and the Franklin Investment Grade Income Fund reimburse up to a
maximum of 0.25% per annum, of the average daily net assets, for costs incurred
in the promotion, offering and marketing of the Funds' shares. The Plans do not
permit nor require payments of excess costs after termination. Fees incurred by
the Funds under the Plans aggregated $1,367,154 for the year ended September 30,
1996.
In its capacity as underwriter for the shares of the Funds, Distributors
receives commissions on sales of the Funds' shares of beneficial interest.
Commissions are deducted from the gross proceeds received from the sale of the
shares of the Funds, and as such are not expenses of the Funds. Distributors may
also make payments, out of its own resources, to the
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
c. Distribution Plans and Underwriting Agreement: (cont.)
dealers for certain sales of the Funds' shares. Commissions received by
Distributors, the amounts paid to other dealers, and any applicable contingent
deferred sales charges for the year ended September 30, 1996, were as follows:
<TABLE>
<CAPTION>
Franklin Corporate Franklin RisingFranklin Investment
Qualified Dividend Fund Dividends Fund Grade Income Fund
--------------- ---------- ------------
<S> <C> <C> <C>
Total commissions received ........................... $103,786 $502,383 $125,138
Paid to other dealers ................................ $114,600 $478,779 $134,535
Contingent deferred sales charges..................... -- $ 758 --
</TABLE>
d. Other Affiliates and Related Party Transactions:
Certain officers and trustees of the Trust are also officers and/or directors of
Distributors, Advisers, and Investor Services, all wholly-owned subsidiaries of
Franklin Resources, Inc.
6. SUBSEQUENT EVENTS
On September 17 and October 18, 1996, the Board declared distributions per
share, as follows:
<TABLE>
<CAPTION>
From Net
Investment
Record Date Payment Date Income
-------- --------- -------
<S> <C> <C> <C>
Franklin Corporate Qualified Dividend Fund. 09/30/96 10/15/96 $0.090
11/01/96 11/15/95 0.090
Franklin Investment Grade Income Fund...... 09/30/96 10/15/96 0.033
11/01/96 11/15/95 0.033
7. FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period by Fund are as follows:
Per Share Operating Performance Ratios/Supplemental Data
--------------------------------------- --------------------------------
Ratio
Net Distri- Net Net of Net
Asset Net Net Realized butions Asset Assets at Ratio of Investment
Year Value at Invest- & UnrealizedTotal From From Net Value at End of Expenses Income to Portfolio Average
Ended Beginning ment Gain (Loss)Investment Investment End of Total Period to Average Average Turnover Commission
Sept. 30of Period Income on SecuritiesOperations Income Period Return++ (in 000's) Net AssetsNet Assets Rate Rate+
Franklin Corporate Qualified Dividend Fund:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
19921 $21.63 $1.37 $2.144 $3.514 $(1.394) $23.75 16.75% $ 29,444 1.10% 5.97% 29.01% --
19932 23.75 0.73 0.777 1.507 (0.787) 24.47 6.44 33,849 1.06* 4.09* 27.46 --
1994 24.47 1.02 (0.844) 0.176 (0.956) 23.69 0.72 31,790 1.00 4.19 32.17 --
1995 23.69 1.21 -- 1.210 (1.140) 23.76 5.26 27,793 1.02 5.02 29.18 --
1996 23.76 1.10 (0.190) 0.910 (1.150) 23.52 3.94 27,791 1.07 4.64 24.88 0.0600
Franklin Rising Dividends Fund:
Class I Shares:
19921 14.91 0.24 1.290 1.530 (0.260) 16.18 10.38 197,804 1.46 1.67 12.73 --
19932 16.18 0.19 (0.745) (0.555) (0.195) 15.43 (3.43) 356,708 1.40* 1.73* 11.48 --
1994 15.43 0.28 (0.800) (0.520) (0.240) 14.67 (3.38) 261,461 1.43 1.81 25.75 --
1995 14.67 0.33 2.608 2.938 (0.298) 17.31 20.32 260,917 1.43 2.10 14.60 --
1996 17.31 0.28 2.779 3.059 (0.339) 20.03 17.83 277,746 1.40 1.49 31.55 0.0508
Class II Shares:
19953 15.47 0.11 1.826 1.936 (0.126) 17.28 12.56 1,060 1.90* 1.92* 14.60 --
1996 17.28 0.21 2.735 2.945 (0.245) 19.98 17.16 3,882 1.95 0.94 31.55 0.0508
Franklin Investment Grade Income Fund:
19921 $ 9.03 $0.62 $(0.086) $0.534 $(0.634) $ 8.93 6.16% $ 29,367 1.08% 7.02% 27.28% --
19932 8.93 0.38 0.402 0.782 (0.402) 9.31 8.94 35,970 1.09* 5.61* 53.19 --
1994 9.31 0.45 (0.544) (0.094) (0.396) 8.82 (1.02) 29,553 1.05 4.91 10.57 --
1995 8.82 0.44 0.259 0.699 (0.479) 9.04 8.21 29,824 1.09 4.96 64.70 --
1996 9.04 0.44 (0.064) 0.376 (0.406) 9.01 4.25 29,372 1.06 4.81 20.06 --
</TABLE>
*Annualized
+Represents the average broker commission rate per share paid by the Fund in
connection with the execution of the Fund's portfolio transactions in equity
securities.
++Total return measures the change in value of an investment over
the periods indicated. It is not annualized. It does not include the maximum
front-end sales charge or the contingent deferred sales charge and assumes
reinvestment of dividends and capital gains at net asset value.
1For the year ended December 31.
2For the nine months ended September 30, 1993.
3For the period May 1, 1995 to September 30, 1995.
Under IRC 854(b)(2) of the Internal Revenue Code, the Funds hereby designate the
following percentage amounts of ordinary income dividends paid (including
short-term capital gain distributions, if any) by the Funds as income qualifying
for the dividends received deduction for the year ended September 30, 1996.
Franklin Corporate Qualified Dividend Fund.......................... 100.0%
Franklin Rising Dividends Fund...................................... 64.0%
FRANKLIN MANAGED TRUST
Report of Independent Certified Public Accountants
To the Shareholders and Board of Trustees
of Franklin Managed Trust:
We have audited the accompanying statements of assets and liabilities of the
three funds comprising the Franklin Managed Trust (the Funds), including each
Fund's statement of investments in securities and net assets, as of September
30, 1996, and the related statement of operations for the year then ended, the
statements of changes in 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. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion. In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the three funds comprising the Franklin Managed Trust as of
September 30, 1996, the results of their operations for the year then ended, the
changes in their 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.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
October 25, 1996
Franklin Managed Trust Annual Report September 30, 1996.
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This line chart illustrates the closing prices of the Dow Jones Industrial
Average from 4/3/95 through 9/30/96.
Period Ending
4/1/95 Holiday
4/3/95 4168.41
4/4/95 4201.61
4/5/95 4200.57
4/6/95 4205.41
4/7/95 4192.62
4/10/95 4198.15
4/11/95 4187.08
4/12/95 4197.81
4/13/95 4208.18
4/17/95 4195.38
4/18/95 4179.13
4/19/95 4207.49
4/20/95 4230.66
4/21/95 4270.09
4/24/95 4303.98
4/25/95 4300.17
4/26/95 4299.83
4/27/95 4314.70
4/28/95 4321.27
5/1/95 4316.08
5/2/95 4328.88
5/3/95 4373.15
5/4/95 4359.66
5/5/95 4343.40
5/8/95 4383.87
5/9/95 4390.78
5/10/95 4404.62
5/11/95 4411.19
5/12/95 4430.56
5/15/95 4437.47
5/16/95 4435.05
5/17/95 4422.60
5/18/95 4340.64
5/19/95 4341.33
5/22/95 4395.63
5/23/95 4436.44
5/24/95 4438.16
5/25/95 4412.23
5/26/95 4369.00
5/30/95 4378.68
5/31/95 4465.14
6/1/95 4472.75
6/2/95 4444.39
6/5/95 4476.55
6/6/95 4485.20
6/7/95 4462.03
6/8/95 4458.57
6/9/95 4423.99
6/12/95 4446.46
6/13/95 4484.51
6/14/95 4491.08
6/15/95 4496.27
6/16/95 4510.79
6/19/95 4553.68
6/20/95 4550.56
6/21/95 4547.10
6/22/95 4589.64
6/23/95 4585.84
6/26/95 4551.25
6/27/95 4542.61
6/28/95 4556.79
6/29/95 4550.56
6/30/95 4556.10
7/3/95 4585.15
7/5/95 4615.23
7/6/95 4664.00
7/7/95 4702.73
7/10/95 4702.39
7/11/95 4680.60
7/12/95 4727.29
7/13/95 4727.48
7/14/95 4708.82
7/17/95 4736.29
7/18/95 4686.28
7/19/95 4628.87
7/20/95 4641.55
7/21/95 4641.55
7/24/95 4668.67
7/25/95 4714.45
7/26/95 4707.06
7/27/95 4732.77
7/28/95 4715.51
7/31/95 4708.47
8/1/95 4700.37
8/2/95 4690.15
8/3/95 4701.42
8/4/95 4683.46
8/7/95 4693.32
8/8/95 4693.32
8/9/95 4671.49
8/10/95 4643.66
8/11/95 4618.30
8/14/95 4659.86
8/15/95 4640.84
8/16/95 4639.08
8/17/95 4630.63
8/18/95 4617.60
8/21/95 4614.78
8/22/95 4620.42
8/23/95 4584.85
8/24/95 4580.62
8/25/95 4601.40
8/28/95 4594.00
8/29/95 4608.44
8/30/95 4604.57
8/31/95 4610.56
9/1/95 4647.54
9/5/95 4670.08
9/6/95 4683.81
9/7/95 4669.72
9/8/95 4700.72
9/11/95 4704.94
9/12/95 4747.21
9/13/95 4765.52
9/14/95 4801.80
9/15/95 4797.57
9/18/95 4780.41
9/19/95 4767.04
9/20/95 4792.69
9/21/95 4767.40
9/22/95 4764.10
9/25/95 4769.93
9/26/95 4765.60
9/27/95 4762.35
9/28/95 4787.64
9/29/95 4789.08
10/2/95 4761.26
10/3/95 4749.70
10/4/95 4740.67
10/5/95 4762.71
10/6/95 4769.21
10/9/95 4726.22
10/10/95 4720.80
10/11/95 4735.25
10/12/95 4764.88
10/13/95 4793.78
10/16/95 4784.38
10/17/95 4795.94
10/18/95 4777.52
10/19/95 4802.45
10/20/95 4794.86
10/23/95 4755.48
10/24/95 4783.66
10/25/95 4753.68
10/26/95 4703.82
10/27/95 4741.75
10/30/95 4756.57
10/31/95 4755.48
11/1/95 4766.68
11/2/95 4808.59
11/3/95 4825.57
11/6/95 4814.01
11/7/95 4797.03
11/8/95 4852.67
11/9/95 4864.23
11/10/95 4870.37
11/13/95 4872.90
11/14/95 4871.81
11/15/95 4922.75
11/16/95 4969.36
11/17/95 4989.95
11/20/95 4983.09
11/21/95 5023.55
11/22/95 5041.61
11/24/95 5048.84
11/27/95 5070.88
11/28/95 5078.10
11/29/95 5105.56
11/30/95 5074.49
12/1/95 5087.13
12/4/95 5139.52
12/5/95 5177.45
12/6/95 5199.13
12/7/95 5159.39
12/8/95 5156.86
12/11/95 5184.32
12/12/95 5174.92
12/13/95 5216.47
12/14/95 5182.15
12/15/95 5176.73
12/18/95 5075.21
12/19/95 5109.89
12/20/95 5059.32
12/21/95 5096.53
12/22/95 5097.97
12/26/95 5110.26
12/27/95 5105.92
12/28/95 5095.80
12/29/95 5117.12
1/2/96 5177.45
1/3/96 5194.07
1/4/96 5173.84
1/5/96 5181.43
1/8/96 5197.68
1/9/96 5130.13
1/10/96 5032.94
1/11/96 5065.10
1/12/96 5061.12
1/15/96 5043.78
1/16/96 5088.22
1/17/96 5066.90
1/18/96 5124.35
1/19/96 5184.68
1/22/96 5219.36
1/23/96 5192.27
1/24/96 5242.84
1/25/96 5216.83
1/26/96 5271.75
1/29/96 5304.98
1/30/96 5381.21
1/31/96 5395.30
2/1/96 5405.06
2/2/96 5373.99
2/5/96 5407.59
2/6/96 5459.61
2/7/96 5492.12
2/8/96 5539.45
2/9/96 5541.62
2/12/96 5600.15
2/13/96 5601.23
2/14/96 5579.55
2/15/96 5551.37
2/16/96 5503.32
2/20/96 5458.53
2/21/96 5515.97
2/22/96 5608.46
2/23/96 5630.49
2/26/96 5565.10
2/27/96 5549.21
2/28/96 5506.21
2/29/96 5485.62
3/1/96 5536.56
3/4/96 5600.15
3/5/96 5642.42
3/6/96 5629.77
3/7/96 5641.69
3/8/96 5470.45
3/11/96 5581.00
3/12/96 5583.89
3/13/96 5568.72
3/14/96 5586.06
3/15/96 5584.97
3/18/96 5683.60
3/19/96 5669.51
3/20/96 5655.42
3/21/96 5626.88
3/22/96 5636.64
3/25/96 5643.86
3/26/96 5670.60
3/27/96 5626.88
3/28/96 5630.85
3/29/96 5587.14
4/1/96 5637.72
4/2/96 5671.68
4/3/96 5689.74
4/4/96 5682.88
4/8/96 5594.37
4/9/96 5560.41
4/10/96 5485.98
4/11/96 5487.07
4/12/96 5532.59
4/15/96 5592.92
4/16/96 5620.02
4/17/96 5549.93
4/18/96 5551.74
4/19/96 5535.48
4/22/96 5564.74
4/23/96 5588.59
4/24/96 5553.90
4/25/96 5566.91
4/26/96 5567.99
4/29/96 5573.41
4/30/96 5569.08
5/1/96 5575.22
5/2/96 5498.27
5/3/96 5478.03
5/6/96 5464.31
5/7/96 5420.95
5/8/96 5474.06
5/9/96 5475.14
5/10/96 5518.14
5/13/96 5582.60
5/14/96 5624.71
5/15/96 5625.44
5/16/96 5635.05
5/17/96 5687.50
5/20/96 5748.82
5/21/96 5736.26
5/22/96 5778.00
5/23/96 5762.12
5/24/96 5762.86
5/28/96 5709.67
5/29/96 5673.83
5/30/96 5693.41
5/31/96 5643.18
6/3/96 5624.71
6/4/96 5665.71
6/5/96 5697.48
6/6/96 5667.19
6/7/96 5697.11
6/10/96 5687.87
6/11/96 5668.66
6/12/96 5668.29
6/13/96 5657.95
6/14/96 5649.45
6/17/96 5652.78
6/18/96 5628.03
6/19/96 5648.35
6/20/96 5659.43
6/21/96 5705.23
6/24/96 5717.79
6/25/96 5719.27
6/26/96 5682.70
6/27/96 5677.53
6/28/96 5654.63
7/1/96 5729.98
7/2/96 5720.38
7/3/96 5703.02
7/5/96 5588.14
7/8/96 5550.83
7/9/96 5581.86
7/10/96 5603.65
7/11/96 5520.50
7/12/96 5510.56
7/15/96 5349.51
7/16/96 5358.76
7/17/96 5376.88
7/18/96 5464.18
7/19/96 5426.82
7/22/96 5390.94
7/23/96 5346.55
7/24/96 5354.69
7/25/96 5422.01
7/26/96 5473.06
7/29/96 5434.59
7/30/96 5481.93
7/31/96 5528.91
8/1/96 5594.75
8/2/96 5679.83
8/5/96 5674.28
8/6/96 5696.11
8/7/96 5718.67
8/8/96 5713.49
8/9/96 5681.31
8/12/96 5704.98
8/13/96 5647.28
8/14/96 5666.88
8/15/96 5665.78
8/16/96 5689.45
8/19/96 5699.44
8/20/96 5721.26
8/21/96 5689.82
8/22/96 5733.47
8/23/96 5722.74
8/26/96 5693.89
8/27/96 5711.27
8/28/96 5712.38
8/29/96 5647.65
8/30/96 5616.21
9/3/96 5648.39
9/4/96 5656.90
9/5/96 5606.96
9/6/96 5659.86
9/9/96 5733.84
9/10/96 5727.18
9/11/96 5754.92
9/12/96 5771.94
9/13/96 5838.52
9/16/96 5889.20
9/17/96 5888.83
9/18/96 5877.36
9/19/96 5867.74
9/20/96 5888.46
9/23/96 5894.74
9/24/96 5874.03
9/25/96 5877.36
9/26/96 5868.85
9/27/96 5872.92
9/30/96 5882.17
10/1/96 5904.90
GRAPHIC MATERIAL (2)
This chart shows in pie format the breakdown of the portfolio's securities on
September 30, 1996, as a percentage of total net assets.
Portfolio Breakdown on September 30, 1996
Auction-Rate Preferred Stocks 45.2%
Adjustable-Rate Preferred Stocks 18.0%
Fixed-Rate Preferred Stocks 25.6%
Cash & Equivalents 11.2%
GRAPHIC MATERIAL (3)
This chart shows in pie format the credit quality breakdown of the portfolio's
securities on September 30, 1996, as a percentage of total net assets.
Credit Quality Breakdown on September 30, 1996
AAA 11.1%
AA 3.6%
A 61.5%
BBB 20.3%
BB 3.5%
GRAPHIC MATERIAL (4)
The following line graph hypothetically compares the performance of the fund's
shares before taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,285
Feb-87 98,463 100,726
Mar-87 98,937 101,180
Apr-87 95,834 101,675
May-87 95,034 102,143
Jun-87 96,926 102,623
Jul-87 97,454 103,075
Aug-87 97,658 103,590
Sep-87 95,813 104,077
Oct-87 91,761 104,910
Nov-87 92,298 105,392
Dec-87 91,207 105,793
Jan-88 90,570 106,322
Feb-88 93,170 106,811
Mar-88 92,229 107,323
Apr-88 93,741 107,796
May-88 95,654 108,281
Jun-88 93,509 108,844
Jul-88 95,888 109,399
Aug-88 95,712 110,001
Sep-88 95,714 110,694
Oct-88 96,254 111,380
Nov-88 96,253 111,993
Dec-88 96,388 112,709
Jan-89 98,044 113,453
Feb-89 98,876 114,145
Mar-89 99,482 114,978
Apr-89 99,669 115,944
May-89 99,290 116,767
Jun-89 100,379 117,748
Jul-89 101,768 118,608
Aug-89 104,180 119,403
Sep-89 104,569 120,203
Oct-89 103,844 121,068
Nov-89 102,968 121,903
Dec-89 102,579 122,720
Jan-90 102,336 123,493
Feb-90 102,347 124,247
Mar-90 102,104 125,091
Apr-90 102,167 125,917
May-90 103,209 126,786
Jun-90 103,887 127,623
Jul-90 103,482 128,542
Aug-90 104,023 129,403
Sep-90 103,289 130,270
Oct-90 101,268 131,091
Nov-90 102,462 131,903
Dec-90 103,660 132,840
Jan-91 105,536 133,650
Feb-91 108,362 134,345
Mar-91 112,933 135,124
Apr-91 116,641 135,827
May-91 118,012 136,479
Jun-91 118,879 137,120
Jul-91 120,957 137,792
Aug-91 122,701 138,509
Sep-91 123,303 139,187
Oct-91 125,246 139,869
Nov-91 126,145 140,555
Dec-91 127,761 141,201
Jan-92 132,173 141,681
Feb-92 137,328 142,107
Mar-92 138,492 142,561
Apr-92 140,869 143,132
May-92 143,562 143,590
Jun-92 144,196 144,063
Jul-92 146,794 144,596
Aug-92 148,049 145,001
Sep-92 148,533 145,494
Oct-92 148,832 145,771
Nov-92 148,478 146,062
Dec-92 148,936 146,530
Jan-93 150,526 146,969
Feb-93 151,807 147,293
Mar-93 152,397 147,690
Apr-93 154,963 148,045
May-93 156,131 148,385
Jun-93 156,535 148,771
Jul-93 157,647 149,158
Aug-93 158,183 149,561
Sep-93 158,526 149,964
Oct-93 158,673 150,309
Nov-93 158,791 150,670
Dec-93 158,842 151,107
Jan-94 160,077 151,515
Feb-94 160,393 151,757
Mar-94 159,786 152,167
Apr-94 159,241 152,517
May-94 159,561 152,959
Jun-94 159,414 153,495
Jul-94 160,036 154,017
Aug-94 159,988 154,510
Sep-94 159,671 155,081
Oct-94 159,760 155,624
Nov-94 159,914 156,138
Dec-94 159,484 156,903
Jan-95 160,763 157,577
Feb-95 161,655 158,318
Mar-95 162,826 159,125
Apr-95 163,864 159,889
May-95 165,045 160,705
Jun-95 165,673 161,524
Jul-95 166,374 162,299
Aug-95 166,726 163,095
Sep-95 168,068 163,845
Oct-95 167,926 164,566
Nov-95 168,997 165,306
Dec-95 169,425 166,166
Jan-96 170,504 166,897
Feb-96 171,009 167,565
Mar-96 171,226 168,252
Apr-96 171,372 168,958
May-96 172,250 169,685
Jun-96 172,617 170,415
Jul-96 172,912 171,130
Aug-96 174,020 171,918
Sep-96 174,689 172,743
TOTAL RETURN 74.69% 72.74%
GRAPHIC MATERIAL (5)
The following line graph hypothetically compares the performance of the fund's
shares after taxes with the Payden & Rygel 90-Day T-Bill Index, based on a
$100,000 investment from 1/14/87 to 9/30/96.
Period Ending Fund Index
1/14/87 98503 100,000
Jan-87 98,542 100,188
Feb-87 98,463 100,479
Mar-87 98,905 100,778
Apr-87 95,772 101,103
May-87 94,937 101,410
Jun-87 96,786 101,725
Jul-87 97,271 102,020
Aug-87 97,434 102,357
Sep-87 95,553 102,675
Oct-87 91,463 103,217
Nov-87 91,957 103,530
Dec-87 90,828 103,790
Jan-88 90,109 104,127
Feb-88 92,630 104,438
Mar-88 91,630 104,764
Apr-88 93,065 105,064
May-88 94,898 105,371
Jun-88 92,705 105,727
Jul-88 94,996 106,078
Aug-88 94,755 106,457
Sep-88 94,689 106,893
Oct-88 95,156 107,324
Nov-88 95,087 107,707
Dec-88 95,152 108,156
Jan-89 96,712 108,620
Feb-89 97,463 109,050
Mar-89 97,990 109,568
Apr-89 98,104 110,166
May-89 97,660 110,674
Jun-89 98,659 111,279
Jul-89 99,953 111,807
Aug-89 102,248 112,294
Sep-89 102,557 112,783
Oct-89 101,777 113,310
Nov-89 100,849 113,819
Dec-89 100,399 114,314
Jan-90 100,091 114,782
Feb-90 100,031 115,237
Mar-90 99,723 115,747
Apr-90 99,712 116,243
May-90 100,656 116,765
Jun-90 101,244 117,266
Jul-90 100,776 117,814
Aug-90 101,229 118,328
Sep-90 100,441 118,843
Oct-90 98,404 119,330
Nov-90 99,488 119,810
Dec-90 100,511 120,363
Jan-91 102,252 120,841
Feb-91 104,911 121,249
Mar-91 109,257 121,706
Apr-91 112,764 122,117
May-91 114,015 122,498
Jun-91 114,778 122,873
Jul-91 116,708 123,264
Aug-91 118,315 123,681
Sep-91 118,820 124,075
Oct-91 120,615 124,470
Nov-91 121,404 124,866
Dec-91 122,863 125,240
Jan-92 127,033 125,516
Feb-92 131,913 125,761
Mar-92 132,958 126,023
Apr-92 135,166 126,350
May-92 137,675 126,613
Jun-92 138,210 126,885
Jul-92 140,625 127,190
Aug-92 141,753 127,421
Sep-92 142,150 127,703
Oct-92 142,371 127,861
Nov-92 141,976 128,027
Dec-92 142,357 128,293
Jan-93 143,818 128,543
Feb-93 144,983 128,727
Mar-93 145,487 128,953
Apr-93 147,877 129,154
May-93 148,938 129,347
Jun-93 149,271 129,566
Jul-93 150,278 129,785
Aug-93 150,735 130,013
Sep-93 151,008 130,241
Oct-93 151,095 130,436
Nov-93 151,156 130,639
Dec-93 151,154 130,885
Jan-94 152,277 131,115
Feb-94 152,527 131,251
Mar-94 151,898 131,482
Apr-94 151,329 131,678
May-94 151,581 131,927
Jun-94 151,390 132,227
Jul-94 151,926 132,519
Aug-94 151,825 132,795
Sep-94 151,469 133,114
Oct-94 151,497 133,417
Nov-94 151,588 133,703
Dec-94 151,121 134,129
Jan-95 152,273 134,504
Feb-95 153,050 134,915
Mar-95 154,090 135,362
Apr-95 155,004 135,784
May-95 156,052 136,234
Jun-95 156,576 136,686
Jul-95 157,169 137,112
Aug-95 157,432 137,549
Sep-95 158,629 137,960
Oct-95 158,425 138,355
Nov-95 159,364 138,760
Dec-95 159,698 139,229
Jan-96 160,643 139,627
Feb-96 161,047 139,990
Mar-96 161,181 140,363
Apr-96 161,246 140,746
May-96 162,007 141,139
Jun-96 162,287 141,534
Jul-96 162,499 141,920
Aug-96 163,475 142,345
Sep-96 164,037 142,789
TOTAL RETURN 64.04% 42.79%
GRAPHIC MATERIAL (6)
The following line graph hypothetically compares the performance of the fund's
Class I shares with the Wilshire MidCap Growth Index and inflation, based on a
$10,000 investment from 1/14/87 to 9/30/96
Period Ending Fund Index Index
1/14/87 $9,551 $10,000 $10,000
1/31/87 $9,570 $10,713 $10,035
2/28/87 $9,647 $11,508 $10,071
3/31/87 $9,580 $11,513 $10,116
4/30/87 $9,359 $11,082 $10,171
5/31/87 $9,349 $11,212 $10,207
6/30/87 $9,637 $11,519 $10,242
7/31/87 $9,792 $11,866 $10,269
8/31/87 $10,159 $12,385 $10,323
9/30/87 $9,927 $11,968 $10,377
10/31/87 $8,584 $8,631 $10,404
11/30/87 $8,185 $8,120 $10,413
12/31/87 $8,477 $8,970 $10,413
1/31/88 $9,026 $9,230 $10,441
2/29/88 $9,438 $9,991 $10,468
3/31/88 $9,497 $10,065 $10,513
4/30/88 $9,576 $9,984 $10,567
5/31/88 $9,576 $9,822 $10,603
6/30/88 $9,963 $10,544 $10,649
7/31/88 $10,062 $10,296 $10,694
8/31/88 $9,933 $9,925 $10,739
9/30/88 $10,132 $10,299 $10,810
10/31/88 $10,292 $10,319 $10,846
11/30/88 $10,000 $10,020 $10,855
12/31/88 $10,071 $10,321 $10,873
1/31/89 $10,375 $10,835 $10,928
2/28/89 $10,395 $10,869 $10,972
3/31/89 $10,609 $11,079 $11,036
4/30/89 $10,874 $11,700 $11,108
5/31/89 $11,284 $12,210 $11,171
6/30/89 $11,386 $11,801 $11,198
7/31/89 $11,881 $12,670 $11,225
8/31/89 $12,005 $13,083 $11,243
9/30/89 $11,974 $13,096 $11,279
10/31/89 $11,847 $12,562 $11,333
11/30/89 $11,888 $12,517 $11,360
12/31/89 $12,044 $12,590 $11,378
1/31/90 $11,467 $11,432 $11,495
2/28/90 $11,614 $11,734 $11,550
3/31/90 $11,813 $12,273 $11,613
4/30/90 $11,497 $11,677 $11,632
5/31/90 $12,068 $12,924 $11,658
6/30/90 $12,173 $12,927 $11,721
7/31/90 $12,141 $12,424 $11,766
8/31/90 $11,076 $10,711 $11,874
9/30/90 $10,625 $9,785 $11,974
10/31/90 $10,485 $9,307 $12,046
11/30/90 $11,473 $10,348 $12,072
12/31/90 $12,076 $10,965 $12,072
1/31/91 $12,485 $12,000 $12,145
2/28/91 $13,616 $13,115 $12,163
3/31/91 $14,172 $13,948 $12,181
4/30/91 $14,291 $13,841 $12,199
5/31/91 $14,962 $14,609 $12,236
6/30/91 $14,610 $13,956 $12,271
7/31/91 $15,034 $14,713 $12,290
8/31/91 $15,360 $15,274 $12,325
9/30/91 $15,475 $15,291 $12,380
10/31/91 $15,628 $15,691 $12,398
11/30/91 $15,442 $15,036 $12,434
12/31/91 $16,416 $17,041 $12,443
1/31/92 $16,516 $17,551 $12,462
2/29/92 $16,494 $17,847 $12,506
3/31/92 $16,246 $17,135 $12,570
4/30/92 $16,412 $16,728 $12,588
5/31/92 $16,688 $16,518 $12,605
6/30/92 $16,416 $15,768 $12,651
7/31/92 $17,060 $16,633 $12,677
8/31/92 $16,860 $16,285 $12,713
9/30/92 $17,166 $16,570 $12,749
10/31/92 $17,367 $17,246 $12,793
11/30/92 $17,924 $18,567 $12,811
12/31/92 $18,120 $19,135 $12,802
1/31/93 $17,941 $19,568 $12,865
2/28/93 $17,672 $18,908 $12,910
3/31/93 $17,812 $19,489 $12,955
4/30/93 $17,182 $18,674 $12,991
5/31/93 $17,396 $19,739 $13,009
6/30/93 $17,199 $19,869 $13,028
7/31/93 $17,210 $19,692 $13,028
8/31/93 $17,492 $20,690 $13,064
9/30/93 $17,498 $21,210 $13,092
10/31/93 $17,748 $21,322 $13,145
11/30/93 $17,294 $20,989 $13,154
12/31/93 $17,487 $22,150 $13,154
1/31/94 $17,726 $22,932 $13,190
2/28/94 $17,077 $23,054 $13,235
3/31/94 $16,243 $21,682 $13,280
4/30/94 $16,266 $21,769 $13,298
5/31/94 $16,483 $21,436 $13,308
6/30/94 $16,448 $20,355 $13,353
7/31/94 $16,597 $20,852 $13,389
8/31/94 $17,309 $22,637 $13,443
9/30/94 $16,906 $22,458 $13,479
10/31/94 $16,837 $23,006 $13,488
11/30/94 $16,422 $21,987 $13,506
12/31/94 $16,583 $22,352 $13,506
1/31/95 $17,012 $22,356 $13,560
2/28/95 $17,523 $23,698 $13,614
3/31/95 $17,901 $24,572 $13,659
4/30/95 $18,030 $24,938 $13,704
5/31/95 $18,682 $25,347 $13,732
6/30/95 $18,887 $26,942 $13,759
7/31/95 $19,343 $29,205 $13,759
8/31/95 $19,648 $29,651 $13,795
9/30/95 $20,340 $30,479 $13,822
10/31/95 $20,152 $29,406 $13,868
11/30/95 $21,187 $30,950 $13,858
12/31/95 $21,599 $31,061 $13,849
1/31/96 $22,037 $31,598 $13,930
2/29/96 $22,309 $32,780 $13,975
3/31/96 $22,261 $33,177 $14,048
4/30/96 $22,178 $35,144 $14,102
5/31/96 $22,807 $36,195 $14,129
6/30/96 $23,034 $34,222 $14,138
7/31/96 $22,295 $31,293 $14,164
8/31/96 $22,807 $33,574 $14,191
9/30/96 $23,968 $35,162 $14,237
GRAPHIC MATERIAL (7)
The following line graph hypothetically compares the performance of the fund's
Class II shares with the Wilshire MidCap Growth Index and inflation, based on a
$10,000 investment from 5/1/95 to 9/30/96.
Period Ending Fund Index Index
5/1/95 $9,897 $10,000 $10,000
5/31/95 $10,282 $10,164 $10,020
6/30/95 $10,390 $10,803 $10,040
7/31/95 $10,635 $11,711 $10,040
8/31/95 $10,796 $11,890 $10,066
9/30/95 $11,169 $12,222 $10,086
10/31/95 $11,059 $11,791 $10,120
11/30/95 $11,622 $12,411 $10,112
12/31/95 $11,842 $12,455 $10,105
1/31/96 $12,076 $12,671 $10,165
2/29/96 $12,219 $13,145 $10,198
3/31/96 $12,184 $13,304 $10,251
4/30/96 $12,125 $14,093 $10,291
5/31/96 $12,471 $14,514 $10,310
6/30/96 $12,591 $13,723 $10,316
7/31/96 $12,180 $12,548 $10,336
8/31/96 $12,461 $13,463 $10,356
9/30/96 $12,987 $14,100 $10,389
GRAPHIC MATERIAL (8)
This chart shows in pie format the credit quality breakdown of the portfolio's
securities on September 30, 1996, as a percentage of total net assets.
Credit Quality Breakdown on September 30, 1996
AAA 72.0%
AA 11.0%
A 17.0%
GRAPHIC MATERIAL (9)
The following line graph hypothetically compares the performance of the fund's
shares with the Lehman Brothers Intermediate U.S. Government Bond Index and the
Consumer Price Index, based on a $10,000 investment from 1/14/87 to 9/30/96
Period Ending Fund Index Index
1/14/87 $9,579 10000 10000
Jan-87 9,579 10,075 10,035
Feb-87 9,588 10,141 10,071
Mar-87 9,497 10,087 10,116
Apr-87 9,115 9,817 10,171
May-87 9,047 9,774 10,207
Jun-87 9,164 9,895 10,242
Jul-87 9,044 9,874 10,269
Aug-87 8,964 9,817 10,323
Sep-87 8,763 9,606 10,377
Oct-87 8,913 9,967 10,404
Nov-87 9,007 10,029 10,413
Dec-87 9,067 10,167 10,413
Jan-88 9,283 10,515 10,441
Feb-88 9,427 10,636 10,468
Mar-88 9,416 10,531 10,513
Apr-88 9,404 10,470 10,567
May-88 9,403 10,400 10,603
Jun-88 9,531 10,635 10,649
Jul-88 9,537 10,574 10,694
Aug-88 9,565 10,602 10,739
Sep-88 9,648 10,834 10,810
Oct-88 9,710 11,026 10,846
Nov-88 9,694 10,901 10,855
Dec-88 9,724 10,938 10,873
Jan-89 9,809 11,084 10,928
Feb-89 9,816 10,999 10,972
Mar-89 9,869 11,058 11,036
Apr-89 9,945 11,292 11,108
May-89 10,069 11,570 11,171
Jun-89 10,193 11,947 11,198
Jul-89 10,365 12,196 11,225
Aug-89 10,277 12,007 11,243
Sep-89 10,308 12,059 11,279
Oct-89 10,445 12,364 11,333
Nov-89 10,521 12,476 11,360
Dec-89 10,550 12,494 11,378
Jan-90 10,467 12,323 11,495
Feb-90 10,533 12,350 11,550
Mar-90 10,537 12,352 11,613
Apr-90 10,502 12,238 11,632
May-90 10,710 12,593 11,658
Jun-90 10,829 12,797 11,721
Jul-90 10,960 12,956 11,766
Aug-90 10,909 12,768 11,874
Sep-90 10,950 12,874 11,974
Oct-90 11,043 13,045 12,046
Nov-90 11,205 13,329 12,072
Dec-90 11,289 13,531 12,072
Jan-91 11,412 13,682 12,145
Feb-91 11,549 13,800 12,163
Mar-91 11,655 13,895 12,181
Apr-91 11,802 14,055 12,199
May-91 11,881 14,121 12,236
Jun-91 11,878 14,105 12,271
Jul-91 12,014 14,283 12,290
Aug-91 12,251 14,612 12,325
Sep-91 12,475 14,917 12,380
Oct-91 12,626 15,050 12,398
Nov-91 12,781 15,200 12,434
Dec-91 13,159 15,712 12,443
Jan-92 13,002 15,480 12,462
Feb-92 13,021 15,562 12,506
Mar-92 12,967 15,476 12,570
Apr-92 13,075 15,569 12,588
May-92 13,244 15,871 12,605
Jun-92 13,445 16,105 12,651
Jul-92 13,783 16,517 12,677
Aug-92 13,909 16,664 12,713
Sep-92 14,120 16,890 12,749
Oct-92 13,947 16,632 12,793
Nov-92 13,867 16,617 12,811
Dec-92 13,970 16,903 12,802
Jan-93 14,202 17,271 12,865
Feb-93 14,531 17,631 12,910
Mar-93 14,559 17,691 12,955
Apr-93 14,700 17,827 12,991
May-93 14,655 17,818 13,009
Jun-93 14,867 18,222 13,028
Jul-93 14,919 18,339 13,028
Aug-93 15,199 18,761 13,064
Sep-93 15,218 18,826 13,092
Oct-93 15,256 18,904 13,145
Nov-93 15,179 18,690 13,154
Dec-93 15,233 18,772 13,154
Jan-94 15,403 19,054 13,190
Feb-94 15,176 18,638 13,235
Mar-94 14,981 18,182 13,280
Apr-94 14,902 18,031 13,298
May-94 14,908 17,998 13,308
Jun-94 14,929 17,957 13,353
Jul-94 15,104 18,316 13,389
Aug-94 15,126 18,324 13,443
Sep-94 15,063 18,047 13,479
Oct-94 15,085 18,027 13,488
Nov-94 15,039 17,995 13,506
Dec-94 15,056 18,113 13,506
Jan-95 15,243 18,461 13,560
Feb-95 15,448 18,889 13,614
Mar-95 15,513 19,016 13,659
Apr-95 15,649 19,280 13,704
May-95 15,945 20,088 13,732
Jun-95 16,082 20,249 13,759
Jul-95 16,094 20,170 13,759
Aug-95 16,215 20,428 13,795
Sep-95 16,299 20,636 13,822
Oct-95 16,431 20,940 13,868
Nov-95 16,618 21,285 13,858
Dec-95 16,715 21,598 13,849
Jan-96 16,830 21,732 13,930
Feb-96 16,670 21,271 13,975
Mar-96 16,657 21,093 14,048
Apr-96 16,626 20,947 14,102
May-96 16,631 20,911 14,129
Jun-96 16,749 21,192 14,138
Jul-96 16,792 21,240 14,164
Aug-96 16,835 21,189 14,191
Sep-96 16,991 21,567 14,237
TOTAL RETURN 69.91% 115.67% 42.37%
