PATHFINDER FUND
* * * *
Semi-Annual Report
(Unaudited)
November 1, 1997 - April 30, 1998
A NOTE FROM YOUR FUND'S PRESIDENT
From November 1, 1997 - April 30, 1998, PATHFINDER FUND
gained about 2%* as small caps/microcaps lagged the powerful blue
chip advance.
Many market gurus believe that over any reasonable period
small caps outperform blue chips.
The longer blue chip stocks outperform smaller cap stocks,
the greater the pressure for small caps to enter a period of
substantially outperforming blue chips.
We believe we are close to a major turn in the market as
blue chips become more overvalued and small caps, by comparison,
are greater bargains. Unfortunately, we cannot pinpoint when
this small cap rally will begin, but we believe it will be soon.
And we're ready.
At this writing, the Fund's Manager (including its officers
and directors) owns more than 9% of the Fund's shares.
The Fund's price is quoted in the Wall Street Journal,
Investor's Business Daily and some other major newspapers. If
we're not in your paper, call (800) 444-4778 for daily prices.
/s/ Ed Bernstein
* The Fund's average total returns, as computed according to the
SEC's rules, were as follows:
Period
Ended April 30, 1998 Average Total Return
==================== ====================
1-year 42.59 %
3-years 20.68 %
5-years 15.73 %
10-years 6.56 %
Past performance is not predictive of future results. Investment
return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their
original cost.
PATHFINDER FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Shares Market Value
COMMON STOCKS (99.94%)
BIO-TECH (2.26%)
14,000 Synbiotics Corporation $ 45,500
10,000 Trinity Biotech plc ADR 24,060
---------
Total . . . . . . . . . . . . . 69,560
---------
COMMUNICATIONS (8.76%)
2,700 Alpine Group (The), Inc. 56,195
3,600 Applied Signal Technology, Inc. 42,300
6,500 CTC Communications Corp. 48,750
5,000 EIS International, Inc. 31,250
5,000 FastComm Communications 9,220
6,500 Intelect Communications, Inc. 42,250
7,000 International FiberCom, Inc. 39,816
---------
Total . . . . . . . . . . . . . 269,781
---------
COMPUTER SYSTEMS/PERIPHERALS (2.03%)
46,600 AW Computer Systems, Inc. 1,864
21,000 Mitek Systems, Inc. 22,323
5,000 ZOOM Telephonics, Inc. 38,125
---------
Total . . . . . . . . . . . . . 62,312
---------
DATA PROCESSING SYSTEMS/TRAINING (6.75%)
12,000 Canterbury Information Tech. 18,756
6,400 Computer Outsourcing Services 60,800
3,600 FDP Financial Data Planning* 43,200
6,600 4Front Technologies, Inc. 84,975
---------
Total . . . . . . . . . . . . . 207,731
---------
DIVERSIFIED OPERATIONS (9.32%)
3,000 Astronics Corporation 35,625
2,500 Baker (Michael) Corp. 24,533
5,500 Quixote Corporation 61,188
3,000 SL Industries, Inc. 43,875
4,600 Summa Industries 60,232
6,100 Team, Inc. 19,063
10,000 Weston (Roy F.), Inc. 41,880
---------
Total . . . . . . . . . . . . . 286,396
---------
ELECTRONICS (4.33%)
32,000 All American Semiconductor 50,016
8,000 Pacific Aerospace & Electronics 52,000
4,000 Titan Corporation (The) 31,000
---------
Total . . . . . . . . . . . . . 133,016
---------
FOOD/RESTAURANT (4.88%)
5,000 Au Bon Pain Co., Inc. 45,565
10,000 Fresh Juice Co. (The), Inc. 29,690
10,000 Furr's/Bishop's, Inc. 9,062
7,000 Main St. and Main, Inc. 26,250
8,000 Vermont Pure Holdings, Ltd. 39,000
---------
Total . . . . . . . . . . . . . 150,567
---------
FURNITURE (4.38%)
26,500 DMi Furniture, Inc. 84,482
4,000 Kewaunee Scientific Corp.* 50,500
---------
Total . . . . . . . . . . . . . 134,982
---------
HEALTH/BEAUTY (3.09%)
1,500 Barber's (The), Hairstyling 15,375
12,000 Bradley Pharmaceuticals 23,256
14,000 CCA Industries, Inc. 42,882
600 Styling Technology Corp. 13,500
---------
Total . . . . . . . . . . . . . 95,013
---------
INSTRUMENTATION/MEASURING/CONTROL (2.91%)
700 Elbit Vision Systems, Ltd. 2,888
3,000 JMAR Industries, Inc. 8,532
5,000 Medar, Inc. 11,250
2,500 Misonix, Inc. 17,970
7,000 Spectrum Control, Inc. 49,000
---------
Total . . . . . . . . . . . . . 89,640
---------
INSURANCE/FINANCIAL SERVICES (1.37%)
5,000 Atlantic American Corp. 22,500
4,000 ITEX Corporation 19,752
---------
Total . . . . . . . . . . . . . 42,252
---------
LEISURE (8.01%)
8,000 ARC International Corp. 44,504
3,400 Ballantyne of Omaha, Inc. 69,064
2,000 Buckhead America Corp. 15,500
1,500 JAKKS Pacific, Inc. 15,000
8,000 PTI Holding, Inc. 59,248
8,000 Wells-Gardner Electronics 43,504
---------
Total . . . . . . . . . . . . . 246,820
---------
MANUFACTURING (9.36%)
31,500 Allied Devices Corporation 74,812
6,000 Arrow-Magnolia International 34,878
2,700 Genlyte Group 68,683
3,500 K-Tron International, Inc. 66,500
6,000 PVC Container 43,500
---------
Total . . . . . . . . . . . . . 288,373
---------
MEDICAL PRODUCTS/SERVICES (12.86%)
29,000 Biomerica, Inc. 58,899
7,000 Colorado MEDtech, Inc. 69,125
6,000 Del Global Technologies Corp. 73,500
1,000 Hanger Orthopedic Group 18,688
6,000 Laboratory Specialists, Inc. 30,000
9,500 Medical Action Industries, Inc. 33,250
5,000 Mesa Laboratories, Inc. 30,000
1,000 OEC Medical Systems, Inc. 22,688
15,000 Star Multi Care Services, Inc. 36,570
10,000 Trimedyne, Inc. 23,130
---------
Total . . . . . . . . . . . . . 395,850
---------
POWER/POWER CONVERSION SYSTEMS (1.68%)
2,000 American Superconductor Corp. 26,876
2,000 Corcom, Inc. 25,000
---------
Total . . . . . . . . . . . . . 51,876
---------
RETAIL (6.96%)
5,000 Family Bargain Corporation 13,440
1,500 S & K Famous Brands, Inc. 24,375
4,000 Shoe Carnival, Inc. 45,500
8,000 Shop At Home, Inc. 27,504
10,000 Strouds, Inc. 30,000
11,000 U.S. Home & Garden, Inc. 73,568
---------
Total . . . . . . . . . . . . . 214,387
---------
SPECIALTY PACKAGING (2.18%)
7,000 Advanced Deposition Tech. 24,500
10,000 Disc Graphics, Inc. 42,500
---------
Total . . . . . . . . . . . . . 67,000
---------
OTHER (8.81%)
1,000 Detection Systems, Inc. 11,063
3,200 Forensic Technologies Int'l. 57,200
10,500 International Business Schools 46,599
10,000 OTR Express, Inc. 62,500
3,400 Pacific Research & Engineering 18,914
10,000 Recycling Industries, Inc. 75,000
---------
Total . . . . . . . . . . . . . 271,276
---------
Total Investments in Securities
(Cost $2,566,196)** 99.94 % 3,076,832
------ ---------
Other Assets in Excess of
Liabilities .06 % 1,716
------ ---------
Total Net Assets 100.00 % $ 3,078,548
====== =========
* Income-producing security
** Cost for federal income tax purposes is $2,566,196,
and net unrealized appreciation consists of:
Gross Unrealized Appreciation $ 775,363
Gross Unrealized Depreciation (264,727)
---------
Net Unrealized Appreciation $ 510,636
=========
See Notes to Financial Statements
PATHFINDER FUND
Statement of Assets and Liabilities
April 30, 1998
(Unaudited)
ASSETS:
Investments in securities, at market value
(identified cost $2,566,196)
(Notes 2A and 3). . . . . . . . . . . . . . $ 3,076,832
Cash . . . . . . . . . . . . . . . . . . . . . 17,101
Receivables:
Investment securities sold. . . . . . . . . 28,314
Capital shares sold . . . . . . . . . . . . 105
---------
Total Assets. . . . . . . . . . . . . . . 3,122,352
---------
LIABILITIES:
Payables:
Investment securities purchased . . . . . . 17,891
Capital shares redeemed . . . . . . . . . . 9,740
Accrued expenses . . . . . . . . . . . . . . . 16,173
---------
Total Liabilities . . . . . . . . . . . . 43,804
---------
NET ASSETS . . . . . . . . . . . . . . . . . . $ 3,078,548
=========
Net asset value, offering and redemption
price per share
($3,078,548 / 312,053 shares). . . . . . . . $ 9.87
=====
At April 3, 1998, the components of
net assets were as follows:
Paid-in capital . . . . . . . . . . . . . $ 2,406,789
Accumulated loss on net investment
income. . . . . . . . . . . . . . . . . (26,819)
Accumulated net realized gain on
investments . . . . . . . . . . . . . . 187,942
Net unrealized appreciation
of investments. . . . . . . . . . . . . 510,636
---------
Net Assets . . . . . . . . . . . . . $ 3,078,548
=========
See Notes to Financial Statements
PATHFINDER FUND
Statement of Operations
For the Six Months Ended April 30, 1998
(Unaudited)
INVESTMENT INCOME:
Income:
Dividends . . . . . . . . . . . . . . . . $ 2,051
-------
Expenses:
Investment Advisory Fee (Note 4) . . . . . 14,224
Transfer Agent . . . . . . . . . . . . . . 12,056
Custody. . . . . . . . . . . . . . . . . . 5,746
Professional Fees. . . . . . . . . . . . . 6,767
Insurance. . . . . . . . . . . . . . . . . 3,100
Accounting and Pricing . . . . . . . . . . 10,249
Trustee Fees . . . . . . . . . . . . . . . 3,047
Registration Fees. . . . . . . . . . . . . 3,541
Miscellaneous. . . . . . . . . . . . . . . 494
-------
Total expenses. . . . . . . . . . . 59,224
Reimbursement of expenses (Note 4). . . . . . ( 30,048)
Fee reduction (Note 5). . . . . . . . . . . . ( 306)
-------
Net expenses. . . . . . . . . . . . 28,870
-------
Net investment loss. . . . . . ( 26,819)
-------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain
on investment securities . . . . . . . . . . 201,338
Net decrease in unrealized
appreciation of investment securities. . . . (134,311)
-------
Net gain on investments . . . . . . 67,027
-------
Net increase in net assets
resulting from operations . . . . $ 40,208
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Changes in Net Assets
Six Months Year
Ended Ended
April 30, 1998 October 31, 1997
---------------- ----------------
(Unaudited)
Operations:
Net investment loss. . . . . . $ ( 26,819) $ ( 36,421)
Net realized gain on
investment securities. . . . 201,338 122,953
Net change in unrealized
appreciation (depreciation)
of investment securities . . (134,311) 746,365
--------- ---------
Net increase in net assets
resulting from operations. . 40,208 832,897
--------- ---------
Distributions from net
realized gains ($0.43 and
$1.18, respectively) . . . . (136,349) (393,026)
--------- ---------
Capital share transactions: (a)
Shares sold. . . . . . . . . 1,937,337 5,456,390
Shares reinvested. . . . . . 124,959 344,646
Shares redeemed. . . . . . . (2,703,999) (5,664,594)
--------- ---------
Net increase (decrease)
from capital share
transactions . . . . . . . . (641,703) 136,442
--------- ---------
Total increase (decrease)
in net assets. . . . . . . (737,844) 576,313
Net assets at the beginning
of the period. . . . . . . . 3,816,392 3,240,079
--------- ---------
Net assets at the end
of the period. . . . . . . . $ 3,078,548 $ 3,816,392
========= =========
(a) A summary of capital
share transactions
(number of shares) is
as follows:
Shares sold. . . . . . . . 202,343 563,800
Shares reinvested. . . . . 14,718 46,637
Shares redeemed. . . . . . (282,158) (593,061)
------- -------
Net increase (decrease). . . (65,097) 17,376
======= ========
See Notes to Financial Statements
PATHFINDER FUND
FINANCIAL HIGHLIGHTS
_________________________________________________________________
Six Months Ended
April 30, 1998
(Unaudited)
PER SHARE DATA
Net asset value at beginning of period. . . . $ 10.12
-----
Income from investment operations
Net investment income (loss). . . . . . . . . (.09)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . .27
-----
Total from investment operations. . . . . .18
-----
Less distributions
Distributions from realized gains . . . . . . ( .43)
Distributions from paid-in capital. . . . . . --
-----
Total dividends and distributions. . . . . ( .43)
-----
Net asset value at end of year. . . . . . . . $ 9.87
=====
TOTAL RETURN 2.43 %*
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 3,079
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.80 %
Ratio of expenses-net (b) . . . . . . . . . . 1.78 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (1.66)%
Portfolio turnover rate . . . . . . . . . . . 14.53 %*
Average commission rate per share . . . . . . $ 0.0300
Borrowings for the period:
Amount of debt outstanding
at the end of period (000's omitted). . . --
Average amount of debt
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . $ 253
Average number of shares
outstanding during the period
(000's omitted) (d) . . . . . . . . . . . 347
Average amount of debt per
share during the period (d) . . . . . . . $ 0.73
* Not annualized
Year Ended
October 31, 1997
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 9.01
-----
Income from investment operations
Net investment income (loss). . . . . . . . . (.10)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 2.39
-----
Total from investment operations. . . . . 2.29
-----
Less distributions
Distributions from realized gains . . . . . . (1.18)
Distributions from paid-in capital. . . . . . --
-----
Total dividends and distributions. . . . . (1.18)
-----
Net asset value at end of year. . . . . . . . $ 10.12
=====
TOTAL RETURN 30.26 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 3,816
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.37 %
Ratio of expenses-net (b) . . . . . . . . . . 1.28 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (1.08)%
Portfolio turnover rate . . . . . . . . . . . 130.56 %
Average commission rate per share . . . . . . $ 0.0327
Borrowings for the year:
Amount of debt outstanding
at end of year (000's omitted). . . . . . $ 1,096
Average amount of debt
outstanding during the year
(000's omitted) (d). . . . . . . . . . . . $ 57
Average number of shares
outstanding during the year
(000's omitted) (d) . . . . . . . . . . . 387
Average amount of debt per
share during the year (d) . . . . . . . . $ 0.15
Year ended
October 31, 1996
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 8.41
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.07)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.29
----
Total from investment operations. . . . . 1.22
----
Less distributions
Distributions from realized gains . . . . . . (.62)
Distributions from paid-in capital. . . . . . --
----
Total dividends and distributions. . . . . (.62)
---
Net asset value at end of year. . . . . . . . $ 9.01
====
TOTAL RETURN 15.60 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 3,240
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . .99 %
Ratio of expenses-net (b) . . . . . . . . . . .99 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (0.74)%
Portfolio turnover rate . . . . . . . . . . . 118.55 %
Average commission rate per share . . . . . . $ 0.0297
Borrowings for the year:
Amount of debt outstanding
at end of year (000's omitted). . . . . . --
Average amount of debt
outstanding during the year
(000's omitted) (d). . . . . . . . . . . . --
Average number of shares
outstanding during the year
(000's omitted) (d) . . . . . . . . . . . 317
Average amount of debt per
share during the year (d) . . . . . . . --
Year ended
October 31, 1995
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 6.87
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.05)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.59
----
Total from investment operations. . . . . 1.54
----
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . --
----
Total dividends and distributions. . . . . --
----
Net asset value at end of year. . . . . . . . $ 8.41
====
TOTAL RETURN 22.42 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 2,183
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.19 %
Ratio of expenses-net (b) . . . . . . . . . . 1.19 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (0.72)%
Portfolio turnover rate . . . . . . . . . . . 59.89 %
Average commission rate per share . . . . . . --
Borrowings for the year:
Amount of debt outstanding
at end of year (000's omitted). . . . . . --
Average amount of debt
outstanding during the year
(000's omitted) (d). . . . . . . . . . . . --
Average number of shares
outstanding during the year
(000's omitted) (d) . . . . . . . . . . . 327
Average amount of debt per
share during the year (d) . . . . . . . . --
Year ended
October 31, 1994
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 7.34
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.39)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . .27
---
Total from investment operations. . . . . (.12)
---
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . (.35)
-----
Total dividends and distributions. . . . . (.35)
-----
Net asset value at end of year. . . . . . . . $ 6.87
====
TOTAL RETURN (1.57)%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 2,632
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 6.19 %
Ratio of expenses-net (b) . . . . . . . . . . 6.19 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (5.56)%
Portfolio turnover rate . . . . . . . . . . . 89.62 %
Average commission rate per share . . . . . . --
Borrowings for the year:
Amount of debt outstanding
at end of year (000's omitted). . . . . . --
Average amount of debt
outstanding during the year
(000's omitted) (d). . . . . . . . . . . . --
Average number of shares
outstanding during the year
(000's omitted) (d) . . . . . . . . . . . 456
Average amount of debt per
share during the year (d) . . . . . . . . --
Year ended
October 31, 1993
PER SHARE DATA
Net asset value at beginning of year. . . . . $ 6.29
----
Income from investment operations
Net investment income (loss). . . . . . . . . (.29)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.65
----
Total from investment operations. . . . . 1.36
----
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . (.31)
-----
Total dividends and distributions. . . . . (.31)
-----
Net asset value at end of year. . . . . . . . $ 7.34
====
TOTAL RETURN 21.80 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of year
(000's omitted) . . . . . . . . . . . . . . 4,002
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 4.41 %
Ratio of expenses-net (b) . . . . . . . . . . 4.41 %
Ratio of net investment income
(loss) to average net assets (c) . . . . . . (4.15)%
Portfolio turnover rate . . . . . . . . . . . 71.02 %
Average commission rate per share . . . . . . --
Borrowings for the year:
Amount of debt outstanding
at the end of year (000's omitted). . . . --
Average amount of debt
outstanding during the year
(000's omitted) (d). . . . . . . . . . . . $ 450
Average number of shares
outstanding during the year
(000's omitted) (d) . . . . . . . . . . . 945
Average amount of debt per
share during the year (d) . . . . . . . $ 0.48
(a) Ratio of expenses to average net assets prior to fee waiver
and expense reimbursement by the Adviser was 3.66%, 4.41%, 3.62%,
3.29%, 7.06%, and 4.42%, respectively.
(b) Ratio of expenses-net includes the effect of custody credits.
(c) Ratio of net investment income (loss) to average net assets
prior to fee waiver and expense reimbursement by the Adviser was
(3.53)%, (3.94)%, (3.37)%, (2.83)%, (6.44)%, and (4.16)%,
respectively.
(d) Averages computed on a daily basis.
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 1998
_________________________________________________________________
Note 1 -- Organization
PATHFINDER FUND (the "Fund") is a series of shares of Pathfinder
Trust (the "Trust") which is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end
management investment company. The Trust was organized on
January 21, 1987, as a Massachusetts business trust and may issue
an unlimited number of shares of beneficial interest without par
value in separate classes or "funds." Currently, the Trust
offers shares in one fund, PATHFINDER FUND.
Note 2 -- Significant Accounting Policies
The following is a summary of the significant accounting
policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. SECURITY VALUATION. Portfolio securities of the Fund,
which are traded both on an exchange and in the over-the-counter
market, are valued according to the broadest and most
representative market. When portfolio securities are traded, the
valuation is the last reported sale price on the day of
valuation. If there is no such reported sale or the valuation is
based on the over-the-counter market, the securities are valued
at the mean between the bid and asked prices. Securities for
which reliable quotations are not readily available and
restricted securities are valued at their respective fair market
values as determined in good faith by the Board of Trustees of
the Trust. Short-term investments are stated at cost, which,
when combined with accrued interest, approximates market value.
B. FEDERAL INCOME TAXES. It is the Fund's policy to comply
with the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no federal income
tax provision is required for the Fund.
C. OTHER. As is common in the industry, security transactions
are accounted for on the date the securities are purchased or
sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date.
D. USE OF ESTIMATES IN FINANCIAL STATEMENTS. In preparing
financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions
that affect the reported amounts of assets and liabilities at the
date of the financial statements, as well as the reported amounts
of income and expenses during the period. Actual results may
differ from these estimates.
Note 3 -- Investments
For the period ended April 30, 1998, the cost of purchases and
the proceeds from the sale of securities, excluding short-term
notes, for the Fund aggregated $450,000 and $2,304,148,
respectively.
Note 4 -- Investment Management and Distribution Agreements
The Fund has entered into an Investment Management Agreement
with the Manager under which the Fund pays a fee, computed daily
and payable quarterly, at an annual rate of .875% of the Fund's
average daily net assets. The Manager is responsible for
supervising the performance of all administrative services in
connection with the management of the Fund.
The Manager has agreed that, in any fiscal year, if the
operating expenses of the Fund (including the fees payable to the
Manager but excluding taxes, interest, distribution fees,
brokerage and extraordinary expenses) exceed the expense
limitations applicable to the Fund imposed by state securities
laws or any regulations thereunder, the Manager will reduce its
fees by the extent of such excess (unless the Manager obtains a
waiver of or variance from such limitations by the appropriate
state securities authorities) and, if required pursuant to any
such laws or regulations, will reimburse the Fund in the amount
of such excess. The Manager also currently intends to limit the
total operating expenses of the Fund to 2.00% of average daily
net assets. Accordingly, the Manager waived its investment
advisory fee of $14,224 and reimbursed $15,824 in other expenses
for the period ended April 30, 1998.
The Trust has adopted a Plan pursuant to the rule 12b-1 under
the Investment Company Act of 1940 (the "Plan") on behalf of the
Fund, whereby it may pay up to a maximum annual rate of .25% of
its average daily net assets to the Manager for expenses incurred
in the distribution of the Fund's shares. Pursuant to this Plan
the Manager is entitled to reimbursement at the end of each month
for its actual expenses incurred in the distribution and
promotion of the Fund's shares, including the printing of
prospectuses and reports used for sales purposes, expenses of
preparation and printing of sales literature and other such
distribution-related expenses, a prorated portion of the
Manager's overhead expenses attributable to the distribution of
the Fund's shares (including leases, communications, salaries,
training, supplies, photocopying, interest on overhead, and any
other category of the Manager's expenses attributable to the
distribution of the Fund's shares) and fees paid to dealers,
banks or others as a distribution service fee for servicing
shareholders of the Fund. The Plan permits the Manager to carry
forward for a maximum of three years distribution expenses
covered by the Plan for which the Manager has not yet received
reimbursement. The Manager has waived reimbursement for all
distribution expenses under the Plan, including any accrued carry
forwards, for fiscal year 1997 and for the period ended April 30,
1998.
Certain officers and Trustees of the Fund (the "Trust") are
also officers and/or Directors of the Manager. During the period
ended April 30, 1998, the Fund did not pay any compensation to
its officers.
Note 5 -- Custody of Securities
Under an agreement with the Custodian Bank, custody fees are
reduced by credits for cash balances. Such reductions totalled
$306 for the Trust during the period ended April 30, 1998. The
Fund's cash balances at the Custodian Bank, which earned credits
against custody fees, could have been invested in short-term
instruments at times when the cash balances rose to minimum
investable levels and at times when cash was not needed for
redemptions or securities purchased. Such short term investments
would produce additional investment income to the Fund.
PATHFINDER FUND
P.O. Box 75231
Los Angeles, CA 90075-0231
(800) 444-4778
* * * *
OFFICERS AND TRUSTEES
Edwin R. Bernstein, President,
Chief Financial Officer, Trustee
H. Randolph Moore, Jr., Trustee
Patricia C. Nagle, Trustee
Werner Lange, Trustee
Patricia L. Stephan, Vice President,
Secretary, Trustee
* * * *
Manager
Pathfinder Advisers
Shareholder Servicing Agent
Unified Fund Services, Inc.
Custodian
The Fifth Third Bank
Legal Counsel
Baker & Daniels
This report is intended for
distribution to shareholders
of the Fund. It may also be
given to prospective investors
if preceded or accompanied by
the Fund's current Prospectus
which contains information
regarding fees, charges and
investment objectives and
policies.
