<PAGE> 1
[THE PERKINS OPPORTUNITY FUND LOGO]
October 15, 1996
Dear Shareholders:
The six month period ended September 30, 1996 has been a volatile time for the
market and The Perkins Opportunity Fund. After starting the period at a NAV of
$18.78 on 3-31-96, the Fund made a high of $23.81 on 5-24-96. At that point in
time, the Fund was up 36.8% year to date. Subsequently, due to a market decline,
the Fund's NAV declined to a low of $17.33 on 8-14-96, giving back most of the
previous gain for the year. As of 9-30-96, at a NAV of $18.19, the Fund was up
5.7% year to date and up 5.0% from its August low. This has raised a number of
questions, since most of the indexes have had stronger rallies off their lows
and higher year to date returns. Our feeling is that the Fund is going through a
normal consolidation period. It is an aggressive growth portfolio and, as such,
is more volatile than the market. There are time periods when the Fund
outperforms the market and others when it underperforms. As bottom-up stock
pickers, we have not changed our investment approach. We continue to search for
new buy opportunities and monitor our holdings as always. The Fund owns shares
in many unique companies which we feel have the potential to be long-term
winners.
THE PERKINS OPPORTUNITY FUND
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
02/18/93 6.23 10/01/93 8.02 05/16/94 8.39 12/27/94 9.76 08/09/95 16.16 03/21/96 18.32
02/19/93 6.23 10/04/93 8.00 05/17/94 8.42 12/28/94 9.71 08/10/95 16.01 03/22/96 18.49
02/22/93 6.13 10/05/93 7.99 05/18/94 8.36 12/29/94 9.77 08/11/95 16.01 03/25/96 18.25
02/23/93 6.33 10/06/93 8.06 05/19/94 8.39 12/30/94 9.47 08/14/95 16.07 03/26/96 18.17
02/24/93 6.33 10/07/93 8.04 05/20/94 8.47 01/02/95 10.03 08/15/95 16.10 03/27/96 18.18
02/25/93 6.39 10/08/93 8.11 05/23/94 8.47 01/03/95 9.86 08/16/95 18.14 03/28/96 18.31
02/26/93 6.49 10/11/93 8.18 05/24/94 8.36 01/04/95 9.92 08/17/95 16.24 03/29/96 18.51
03/01/93 6.57 10/12/93 8.31 05/25/94 8.41 01/05/95 9.97 08/18/95 16.44 04/01/96 18.66
03/02/93 6.55 10/13/93 8.55 05/26/94 8.35 01/06/95 10.10 08/21/95 16.50 04/02/96 18.73
03/03/93 6.62 10/14/93 8.54 05/27/94 8.41 01/09/95 10.19 08/22/95 16.56 04/03/96 18.89
03/04/93 6.66 10/15/93 8.56 05/30/94 8.41 01/10/95 10.17 08/23/95 16.71 04/04/96 19.01
03/05/93 6.64 10/18/93 8.55 05/31/94 8.41 01/11/95 10.12 08/24/95 16.71 04/05/96 19.01
03/08/93 6.67 10/19/93 8.48 06/01/94 8.48 01/12/95 10.12 08/25/95 16.87 04/08/96 18.89
03/09/93 6.62 10/20/93 8.54 06/02/94 8.42 01/13/95 10.32 08/28/95 16.64 04/09/96 18.80
03/10/93 6.64 10/21/93 8.53 06/03/94 8.38 01/16/95 10.38 08/29/95 16.34 04/10/96 18.59
03/11/93 6.67 10/22/93 8.48 06/06/94 8.33 01/17/95 10.48 08/30/95 16.45 04/11/96 18.48
03/12/93 6.64 10/25/93 8.50 06/07/94 8.20 01/18/95 10.46 08/31/95 16.59 04/12/96 18.74
03/15/93 6.61 10/26/93 8.43 06/08/94 8.11 01/19/95 10.53 09/01/95 16.61 04/15/96 19.01
03/16/93 6.62 10/27/93 8.44 06/09/94 8.09 01/20/95 10.55 09/04/95 16.61 04/16/96 19.04
03/17/93 6.59 10/28/93 8.50 06/10/94 8.08 01/23/95 10.60 09/05/95 16.64 04/17/96 19.13
03/18/93 6.62 10/29/93 8.57 06/13/94 8.13 01/24/95 10.64 09/06/95 16.82 04/18/96 19.38
03/19/93 6.61 11/01/93 8.63 06/14/94 8.05 01/25/95 10.67 09/07/95 16.90 04/19/96 19.51
03/22/93 6.52 11/02/93 8.69 06/15/94 8.02 01/26/95 10.65 09/08/95 17.06 04/22/96 19.69
03/23/93 6.51 11/03/93 8.78 06/16/94 8.02 01/27/95 10.80 09/11/95 17.12 04/23/96 20.03
03/24/93 6.51 11/04/93 8.67 06/17/94 8.05 01/30/95 10.72 09/12/95 17.19 04/24/96 20.17
03/25/93 6.52 11/05/93 8.67 06/20/94 7.99 01/31/95 10.72 09/13/95 17.19 04/25/96 20.36
03/26/93 6.52 11/08/93 8.69 06/21/94 7.93 02/01/95 10.79 09/14/95 17.33 04/26/96 20.44
03/29/93 6.57 11/09/93 8.78 06/22/94 7.98 02/02/95 10.87 09/15/95 17.19 04/29/96 20.55
03/30/93 6.55 11/10/93 8.95 06/23/94 7.74 02/03/95 10.91 09/18/95 17.03 04/30/96 20.55
03/31/93 6.61 11/11/93 9.14 06/24/94 7.75 02/06/95 10.94 09/19/95 17.15 05/01/96 20.83
04/01/93 6.60 11/12/93 9.10 06/27/94 7.73 02/07/95 11.03 09/20/95 17.28 05/02/96 20.58
04/02/93 6.44 11/15/93 8.96 06/28/94 7.74 02/08/95 11.16 09/21/95 17.28 05/03/96 20.71
04/05/93 6.43 11/16/93 8.93 06/29/94 7.46 02/09/95 11.18 09/22/95 17.21 05/06/96 21.04
04/06/93 6.44 11/17/93 8.75 06/30/94 7.90 02/10/95 11.31 09/25/95 17.08 05/07/96 20.81
04/07/93 6.39 11/18/93 8.77 07/01/94 7.70 02/13/95 11.42 09/26/95 17.04 05/08/96 20.63
04/08/93 6.33 11/19/93 8.61 07/04/94 7.69 02/14/95 11.52 09/27/95 16.68 05/09/96 21.00
04/09/93 6.33 11/22/93 8.33 07/05/94 7.80 02/15/95 11.65 09/28/95 16.87 05/10/96 21.17
04/12/93 6.42 11/23/93 8.33 07/06/94 7.80 02/16/95 11.61 09/29/95 17.04 05/13/96 21.29
04/13/93 6.48 11/24/93 8.37 07/07/94 7.71 02/17/95 11.64 10/02/95 16.86 05/14/96 21.50
04/14/93 6.48 11/25/93 8.37 07/08/94 7.80 02/20/95 11.64 10/03/95 16.77 05/15/96 21.60
04/15/93 6.46 11/26/93 8.33 07/11/94 7.74 02/21/95 11.62 10/04/95 16.48 05/16/96 21.79
04/16/93 6.42 11/29/93 8.28 07/12/94 7.80 02/22/95 11.56 10/05/95 16.52 05/17/96 21.90
04/19/93 6.48 11/30/93 8.38 07/13/94 7.89 02/23/95 ll.65 10/06/95 16.55 05/20/96 22.13
04/20/93 6.38 12/01/93 8.53 07/14/94 7.85 02/24/95 ll.62 10/09/95 16.17 05/21/96 22.38
04/21/93 6.38 12/02/93 8.67 07/15/94 7.92 02/27/95 11.53 10/10/95 15.89 05/22/96 22.95
04/22/93 6.38 12/03/93 8.68 07/18/94 7.99 02/28/95 11.62 10/11/95 16.23 05/23/96 23.44
04/23/93 6.38 12/06/93 8.63 07/19/94 8.00 03/01/95 11.62 10/12/95 16.28 05/24/96 23.51
04/26/93 6.20 12/07/93 8.61 07/20/94 8.02 03/02/95 11.72 10/13/95 16.42 05/27/96 23.51
04/27/93 6.22 12/08/93 8.49 07/21/94 8.06 03/03/95 11.76 10/16/95 16.42 05/28/96 23.32
04/28/93 6.24 12/09/93 8.45 07/22/94 8.20 03/06/95 11.73 10/17/95 16.47 05/29/96 23.07
04/29/93 6.27 12/10/93 8.51 07/25/94 8.10 03/07/95 11.52 10/18/95 16.52 05/30/96 23.12
04/30/93 6.41 12/13/93 8.50 07/26/94 8.10 03/08/95 11.53 10/19/95 16.55 05/31/96 22.97
05/03/93 6.43 12/14/93 8.40 07/27/94 8.06 03/09/95 11.50 10/20/95 16.60 06/03/96 23.12
05/04/93 6.50 12/14/93 8.39 07/28/94 8.14 03/10/95 11.55 10/23/95 16.54 06/04/96 23.38
05/05/93 6.57 12/15/93 8.39 07/29/94 8.29 03/13/95 11.58 10/24/95 16.57 06/05/96 23.40
05/06/93 6.54 12/16/93 8.43 08/01/94 8.28 03/14/95 11.69 10/25/95 16.45 06/06/96 23.09
05/07/93 6.56 12/17/93 8.38 08/02/94 8.29 03/15/95 11.77 10/26/95 16.39 06/07/96 23.00
05/10/93 6.66 12/20/93 8.46 08/03/94 8.35 03/16/95 11.92 10/27/95 16.26 06/10/96 22.97
05/11/93 6.72 12/21/93 8.39 08/04/94 8.39 03/17/95 11.88 10/30/95 16.37 06/11/96 22.77
05/12/93 6.72 12/22/93 8.34 08/05/94 8.38 03/20/95 11.95 10/31/95 16.47 06/12/96 22.66
05/13/93 6.70 12/23/93 8.41 08/08/94 8.47 03/21/95 11.98 11/01/95 16.53 06/13/96 22.54
05/14/93 6.67 12/24/93 8.41 08/09/94 8.46 03/22/95 12.06 11/02/95 16.54 06/14/96 22.26
05/17/93 6.62 12/27/93 8.39 08/10/94 8.37 03/23/95 12.09 11/03/95 16.66 06/17/96 22.14
05/18/93 6.65 12/28/93 8.48 08/11/94 8.41 03/24/95 12.18 ll/06/95 16.80 06/18/96 21.60
05/19/93 6.72 12/29/93 8.51 08/12/94 8.41 03/27/95 12.27 11/07/95 16.72 06/19/96 21.46
05/20/93 6.77 12/30/93 8.58 08/15/94 8.41 03/28/95 12.24 11/08/95 16.77 06/20/96 21.11
05/21/93 6.76 12/31/93 8.56 08/16/94 8.35 03/29/95 12.18 11/09/95 17.00 06/21/96 20.89
05/24/93 6.77 01/03/94 8.60 08/17/94 8.51 03/30/95 12.10 11/10/95 17.03 06/24/96 21.21
05/25/93 6.82 01/04/94 8.61 08/18/94 8.48 03/31/95 12.18 11/13/95 17.01 06/25/96 20.99
05/26/93 6.84 01/05/94 8.79 08/19/94 8.69 04/03/95 12.14 11/14/95 16.84 06/26/96 20.47
05/27/93 6.88 01/06/94 8.88 08/22/94 8.71 04/04/95 12.19 11/15/95 16.78 06/27/96 20.27
05/28/93 6.83 01/07/94 8.87 08/23/94 8.76 04/05/95 12.17 11/16/95 16.91 06/28/96 20.63
05/31/93 6.83 01/10/94 8.93 08/24/94 8.89 04/06/95 12.27 11/17/95 16.80 07/01/96 20.76
06/01/93 6.84 01/11/94 8.98 08/25/94 9.01 04/07/95 12.14 11/20/95 16.66 07/02/96 20.82
06/02/93 6.91 01/12/94 8.90 08/26/94 9.25 04/10/95 12.22 11/21/95 16.53 07/03/96 20.64
06/03/93 6.94 01/13/94 8.94 08/29/94 9.25 04/11/95 12.23 11/22/95 16.47 07/04/96 20.64
06/04/93 6.99 01/14/94 9.06 08/30/94 9.55 04/12/95 12.24 11/23/95 16.47 07/05/96 20.17
06/07/93 6.87 01/17/94 9.01 08/31/94 9.51 04/13/95 12.33 11/24/95 16.52 07/08/96 19.82
06/08/93 6.80 01/18/94 8.94 09/01/94 9.52 04/14/95 12.33 11/27/95 16.59 07/09/96 19.93
06/09/93 6.84 01/19/94 9.02 09/02/94 9.66 04/17/95 12.30 11/28/95 16.62 07/10/96 19.45
06/10/93 6.82 01/20/94 9.03 09/05/94 9.66 04/18/95 12.33 11/29/95 16.83 07/11/96 18.69
06/11/93 6.91 01/21/94 9.11 09/06/94 9.74 04/19/95 12.25 11/30/95 17.10 07/12/96 18.60
06/14/93 7.03 01/24/94 9.15 09/07/94 9.71 04/20/95 12.18 12/01/95 17.18 07/15/96 17.86
06/15/93 7.09 01/25/94 9.00 09/08/94 9.80 04/21/95 12.30 12/04/95 17.15 07/16/96 17.66
06/16/93 6.98 01/26/94 8.99 09/09/94 9.77 04/24/95 12.42 12/05/95 17.13 07/17/96 18.22
06/17/93 6.97 01/27/94 9.01 09/12/94 9.76 04/25/95 12.44 12/06/95 17.04 07/18/96 18.56
06/18/93 6.92 01/28/94 9.06 09/13/94 9.65 04/26/95 12.46 12/07/95 17.03 07/19/96 18.64
06/21/93 6.93 01/31/94 9.18 09/14/94 9.71 04/27/95 12.61 12/08/95 17.12 07/22/96 18.25
06/22/93 6.88 02/01/94 9.11 09/15/94 9.85 04/28/95 12.64 12/11/95 17.15 07/23/96 17.73
06/23/93 6.87 02/02/94 9.03 09/16/94 9.92 05/01/95 12.68 12/12/95 17.13 07/24/96 17.34
06/24/93 6.84 02/03/94 9.01 09/19/94 9.95 05/02/95 12.79 12/13/95 17.34 07/25/96 17.57
06/25/93 6.94 02/04/94 8.72 09/20/94 9.90 05/03/95 12.81 12/14/95 17.09 07/26/96 17.79
06/28/93 6.91 02/07/94 8.71 09/21/94 9.83 05/04/95 12.74 12/15/95 17.04 07/29/96 17.49
06/29/93 6.92 02/08/94 8.71 09/22/94 9.89 05/05/95 12.74 12/18/95 16.72 07/30/96 17.49
06/30/93 6.93 02/09/94 8.87 09/23/94 9.96 05/08/95 12.85 12/19/95 16.80 07/31/96 17.43
07/01/93 7.04 02/10/94 8.94 09/26/94 9.99 05/09/95 12.87 12/20/95 16.87 08/01/96 17.49
07/02/93 7.14 02/11/94 8.92 09/27/94 10.00 05/10/95 12.90 12/21/95 16.90 08/02/96 17.61
07/05/93 7.14 02/14/94 8.94 09/28/94 9.99 05/11/95 12.90 12/22/95 17.03 08/05/96 17.66
07/06/93 7.02 02/15/94 8.99 09/29/94 9.89 05/12/95 12.93 12/25/95 17.03 08/06/96 17.67
07/07/93 6.96 02/16/94 8.95 09/30/94 10.02 05/15/95 13.01 12/26/95 17.14 08/07/96 17.77
07/08/93 7.02 02/17/94 8.93 10/03/94 9.99 05/16/95 12.96 12/27/95 17.10 08/08/96 17.57
07/09/93 6.98 02/18/94 9.08 10/04/94 9.86 05/17/95 13.05 12/28/95 17.01 08/09/96 17.59
07/12/93 7.15 02/21/94 8.57 10/05/94 9.78 05/18/95 12.96 12/29/95 17.18 08/12/96 17.52
07/13/93 7.16 02/22/94 8.98 10/06/94 9.81 05/19/95 12.95 01/01/96 17.18 08/13/96 17.37
07/14/93 7.30 02/23/94 8.90 10/07/94 10.00 05/22/95 13.04 01/02/96 17.41 08/14/96 17.32
07/15/93 7.25 02/24/94 8.82 10/10/94 9.99 05/23/95 13.21 01/03/96 17.43 08/15/96 17.43
07/16/93 7.22 02/25/94 8.88 10/11/94 10.17 05/24/95 13.28 01/04/96 17.22 08/16/96 17.35
07/19/93 7.19 02/28/94 9.11 10/12/94 10.09 05/25/95 13.24 01/05/96 17.15 08/19/96 17.43
07/20/93 7.28 03/01/94 9.16 10/13/94 10.22 05/26/95 13.28 01/08/96 17.27 08/20/96 17.66
07/21/93 7.28 03/02/94 9.17 10/14/94 10.27 05/29/95 13.28 01/09/96 16.96 08/21/96 17.54
07/22/93 7.24 03/03/94 9.13 10/17/94 10.29 05/30/95 13.22 01/10/96 16.60 08/22/96 17.84
07/23/93 7.27 03/04/94 9.21 10/18/94 10.11 05/31/95 13.23 01/11/96 16.71 08/23/96 17.95
07/26/93 7.24 03/07/94 9.13 10/19/94 10.16 06/01/95 13.37 01/12/96 16.66 08/26/96 17.93
07/27/93 7.22 03/08/94 9.22 10/20/94 10.11 06/02/95 13.34 01/15/96 16.53 08/27/96 18.08
07/28/93 7.22 03/09/94 9.21 10/21/94 10.15 06/05/95 13.41 01/16/96 16.51 08/28/96 18.37
07/29/93 7.22 03/10/94 9.21 10/24/94 10.16 06/06/95 13.47 01/17/96 16.57 08/29/96 18.29
07/30/93 7.26 03/11/94 9.30 10/25/94 10.11 06/07/95 13.39 01/18/96 16.65 08/30/96 18.29
08/02/93 7.25 03/14/94 9.36 10/26/94 10.21 06/08/95 13.38 01/19/96 16.61 09/02/96 18.29
08/03/93 7.33 03/15/94 9.49 10/27/94 10.37 06/09/95 13.51 01/22/96 16.88 09/03/96 18.05
08/04/93 7.25 03/16/94 9.50 10/28/94 10.63 06/12/95 13.60 01/23/96 16.89 09/04/96 18.08
08/05/93 7.25 03/17/94 9.59 10/31/94 10.65 06/13/95 13.77 01/24/96 16.92 09/05/96 17.80
08/06/93 7.26 03/18/94 9.58 11/01/94 10.56 06/14/95 13.93 01/25/96 17.04 09/06/96 17.98
08/09/93 7.25 03/21/94 9.56 11/02/94 10.63 06/15/95 14.01 01/26/96 17.04 09/09/96 18.02
08/10/93 7.29 03/22/94 9.45 11/03/94 10.66 06/16/95 14.20 01/29/96 17.17 09/10/96 18.13
08/11/93 7.31 03/23/94 9.48 11/04/94 10.76 06/19/95 14.30 01/30/96 17.36 09/11/96 17.99
08/12/93 7.36 03/24/94 9.40 11/07/94 10.67 06/20/95 14.26 01/31/96 17.46 09/12/96 17.97
08/13/93 7.35 03/25/94 9.43 11/08/94 10.74 06/21/95 14.38 02/01/96 17.50 09/13/96 18.05
08/16/93 7.32 03/28/94 9.24 11/09/94 10.73 06/22/95 14.51 02/02/96 17.54 09/16/96 18.08
08/17/93 7.32 03/29/94 8.99 11/10/94 10.75 06/23/95 14.41 02/05/96 17.61 09/17/96 17.91
08/18/93 7.31 03/30/94 8.90 11/11/94 10.77 06/26/95 14.26 02/06/96 17.67 09/18/96 18.02
08/19/93 7.35 03/31/94 8.74 11/14/94 10.73 06/27/95 14.13 02/07/96 17.55 09/19/96 17.84
08/20/93 7.36 04/01/94 8.74 11/15/94 10.82 06/28/95 14.14 02/08/96 17.77 09/20/96 17.90
08/23/93 7.35 04/04/94 8.55 11/16/94 10.81 06/29/95 14.17 02/09/96 17.85 09/23/96 17.71
08/24/93 7.42 04/05/94 8.73 11/17/94 10.81 06/30/95 14.39 02/12/96 17.97 09/24/96 17.87
08/25/93 7.38 04/06/94 8.77 11/18/94 10.74 07/03/95 14.36 02/13/96 17.86 09/25/96 18.08
08/26/93 7.52 04/07/94 8.79 11/21/94 10.52 07/04/95 14.36 02/14/96 17.81 09/26/96 18.13
08/27/93 7.45 04/08/94 8.86 11/22/94 10.24 07/05/95 14.41 02/15/96 17.80 09/27/96 18.08
08/30/93 7.50 04/11/94 8.95 11/23/94 10.06 07/06/95 14.57 02/16/96 17.77 09/30/96 18.20
08/31/93 7.64 04/12/94 8.79 11/24/94 10.06 07/07/95 14.73 02/19/96 17.77 10/01/96 18.16
09/01/93 7.65 04/13/94 8.79 11/25/94 10.06 07/10/95 14.80 02/20/96 17.53 10/02/96 18.29
09/02/93 7.71 04/14/94 8.84 11/28/94 10.15 07/11/95 14.74 02/21/96 17.70 10/03/96 18.20
09/03/93 7.63 04/15/94 8.86 11/29/94 10.26 07/12/95 15.16 02/22/96 17.97 10/04/96 18.39
09/06/93 7.63 04/18/94 8.62 11/30/94 10.39 07/13/95 15.17 02/23/96 17.96 10/07/96 18.33
09/07/93 7.56 04/19/94 8.57 12/01/94 10.20 07/14/95 15.21 02/26/96 17.84 10/08/96 18.26
09/08/93 7.47 04/20/94 8.42 12/02/94 10.34 07/17/95 15.40 02/27/96 17.76 10/09/96 18.29
09/09/93 7.49 04/21/94 8.51 12/05/94 10.36 07/18/95 15.51 02/28/96 17.96 10/10/96 18.21
09/10/93 7.63 04/22/94 8.63 12/06/94 10.10 07/19/95 14.82 02/29/96 17.88 10/11/96 18.36
09/13/93 7.70 04/25/94 8.60 12/07/94 9.87 07/20/95 14.99 03/01/96 17.93 10/14/96 18.43
09/14/93 7.60 04/26/94 8.71 12/08/94 9.64 07/21/95 15.07 03/04/96 17.93 10/15/96 18.22
09/15/93 7.63 04/27/94 8.52 12/09/94 9.63 07/24/95 15.37 03/05/96 17.86 10/16/96
09/16/93 7.62 04/28/94 8.67 12/12/94 9.71 07/25/95 15.44 03/06/96 17.89 10/17/96
09/17/93 7.76 04/29/94 8.64 12/13/94 9.73 07/26/95 15.56 03/07/96 17.95 10/18/96
09/20/93 7.74 05/02/94 8.68 12/14/94 9.76 07/27/95 15.69 03/08/96 17.35 10/21/96
09/21/93 7.66 05/03/94 8.72 12/15/94 9.82 07/28/95 15.88 03/11/96 17.71 10/22/96
09/22/93 7.75 05/04/94 8.66 12/16/94 9.91 07/31/95 15.88 03/12/96 17.60 10/23/96
09/23/93 7.83 05/05/94 8.64 12/19/94 9.87 08/01/95 15.75 03/13/96 17.75 10/24/96
09/24/93 7.84 05/06/94 8.57 12/20/94 9.76 08/02/95 15.75 03/14/96 17.97 10/25/96
09/27/93 7.97 05/09/94 8.43 12/21/94 9.83 08/03/95 15.65 03/15/96 18.09 10/28/96
09/28/93 8.01 05/10/94 8.52 12/22/94 9.77 08/04/95 15.88 03/18/96 18.29 10/29/96
09/29/93 7.96 05/11/94 8.45 12/23/94 9.82 08/07/95 15.92 03/19/96 18.31 10/30/96
09/30/93 8.06 05/12/94 8.52 12/26/94 9.82 08/08/95 15.92 03/20/96 18.33 10/31/96
05/13/94 8.46
</TABLE>
The above chart shows the Fund's price action since inception (adjusted for
distributions). The current correction appears to us to be just a normal
consolidation in a long-term uptrend and we believe, given a healthy market
environment, that the Fund should continue to enjoy good long term performance
in the future.
<PAGE> 2
The following table shows the Fund's returns by quarter and since inception
compared to several popular indices:
<TABLE>
<CAPTION>
THE PERKINS S & P DOW JONES NASDAQ RUSSELL
OPPORTUNITY 500 INDUSTRIAL COMPOSITE 2000
CALENDAR PERIOD FUND INDEX INDEX INDEX INDEX
--------------- ---- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
First Quarter 1993 6.13% 4.33% 3.37% 4.00% 4.68%
Second Quarter 1993 4.90% .41% 3.08% 2.00% 1.81%
Third Quarter 1993 16.23% 2.67% 1.84% 8.36% 8.39%
Fourth Quarter 1993 7.82% 2.33% 6.31% 1.84% 2.23%
First Quarter 1994 0.58% (3.83%) (2.51%) (4.29%) (2.78%)
Second Quarter 1994 (9.81%) .35% .39% (5.04%) (6.99%)
Third Quarter 1994 26.89% 4.98% 6.74% 8.26% 6.59%
Fourth Quarter 1994 (.22%) (.04%) .51% (1.61%) (2.25%)
First Quarter 1995 21.49% 9.77% 9.17% 8.68% 4.16%
Second Quarter 1995 17.76% 9.40% 10.30% 14.22% 8.77%
Third Quarter 1995 18.42% 8.06% 5.77% 11.79% 9.43%
Fourth Quarter 1995 .54% 5.99% 7.50% .82% 1.80%
First Quarter 1996 7.79% 5.39% 9.81% 4.68% 4.68%
Second Quarter 1996 11.25% 4.42% 1.76% 7.59% 4.79%
Third Quarter 1996 (11.82)% 3.13% 4.63% 3.54% (.07)%
Year Ended 9-30-96 6.31% 20.29% 25.70% 17.57% 11.60%
Annualized since 34.03% 16.71% 20.40% 18.57% 13.39%
2-18-93 inception
</TABLE>
The Fund is well diversified among industry groups and holds stocks which we
feel have good potential for above average returns, so currently its primary
risk is to further market declines. We are constantly looking for investment
opportunities and are confident that we will continue to find them in the future
as we have in the past.
In closing, we thank you for your confidence and support.
Sincerely,
<TABLE>
<S> <C> <C>
/s/ Richard W. Perkins /s/ Daniel S. Perkins /s/ Richard C. Perkins
- ---------------------- --------------------- ----------------------
Richard W. Perkins, C.F.A. Daniel S. Perkins, C.F.A. Richard C. Perkins, C.F.A.
President Vice President Vice President
</TABLE>
Results shown are past performance which should not be regarded as an indication
of future returns. The value of the Fund's shares and their return will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. The Fund's average annual total return, after maximum
sales charge of 4.75%, for the period from inception on February 18, 1993
through September 30, 1996 was 32.23% and for the one year period ended on that
date was 1.25%.
<PAGE> 3
[THE PERKINS OPPORTUNITY FUND LOGO]
PORTFOLIO OF INVESTMENTS AT SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Shares COMMON STOCKS: 90.1% Market Value
------ -------------------- ------------
<S> <C> <C>
BUSINESS SERVICES - MISCELLANEOUS: 12.7%
38,000 AlphaNet Solutions, Inc.*............................................... $ 361,000
150,000 Appliance Recycling Centers of America, Inc.*........................... 337,500
200,000 Appliance Recycling Centers of America, Inc.*+.......................... 450,000
500,000 Automobile Protection Corp.*............................................ 2,351,500
70,000 CorVel Corp.*........................................................... 2,126,250
50,000 Deluxe Corp............................................................. 1,887,500
437,500 Health Fitness Physical Therapy, Inc.*.................................. 1,148,437
180,000 Health Risk Management, Inc.*........................................... 2,767,500
56,300 Hooper Holmes, Inc...................................................... 851,538
445,000 Integrated Security Systems, Inc.*...................................... 1,001,250
115,000 MarketLink, Inc.*....................................................... 201,250
175,000 Raytel Medical Corp.*................................................... 2,362,500
275,000 Reality Interactive, Inc., Units*....................................... 498,438
------------
16,344,663
------------
COMPUTER - LOCAL NETWORKS: 4.6%
60,000 Digi International, Inc.*............................................... 855,000
100,000 Digital Systems International, Inc.*.................................... 1,787,500
140,000 Interphase Corp.*....................................................... 2,030,000
52,500 Netvantage, Inc., Class A*.............................................. 774,375
40,000 Secure Computing Corp.*................................................. 445,000
------------
5,891,875
------------
COMPUTER - MEMORY DEVICES: 4.2%
272,500 Ciprico, Inc.*.......................................................... 5,450,000
------------
COMPUTER - PERIPHERAL EQUIPMENT: 3.2%
100,000 Check Technology Corp.*................................................. 987,500
270,000 Digital Biometrics, Inc.*............................................... 1,012,500
100,000 Mylex Corp.*............................................................ 1,575,000
100,000 RSI Systems, Inc.*...................................................... 500,000
------------
4,075,000
------------
COMPUTER SERVICES: 2.2%
200,000 En Pointe Technologies, Inc.*........................................... 2,125,000
295,000 IntraNet Solutions, Inc.*............................................... 700,625
------------
2,825,625
------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
[THE PERKINS OPPORTUNITY FUND LOGO]
PORTFOLIO OF INVESTMENTS AT SEPTEMBER 30, 1996 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
<S> <C> <C>
COMPUTER - SOFTWARE: 7.3%
150,000 Delphi Information Systems, Inc.*....................................... $ 159,375
1,400,000 Delphi Information Systems, Inc., Units*+............................... 1,036,000
475,000 Fourth Shift Corp.*..................................................... 3,562,500
230,000 IVI Publishing, Inc.*................................................... 661,250
350,000 Spectrum HoloByte, Inc.*................................................ 2,275,000
100,000 TRO Learning, Inc.*..................................................... 1,750,000
------------
9,444,125
------------
CONSUMER PRODUCTS - MISCELLANEOUS: 5.5%
500,000 CML Group, Inc.......................................................... 2,437,500
100,000 Electronic Hair Styling, Inc.*.......................................... 456,250
150,000 Metromedia International Group, Inc.*................................... 1,593,750
300,000 Minnesota Brewing Co.*.................................................. 1,500,000
45,000 Polaris Industries, Inc................................................. 1,018,125
------------
7,005,625
------------
ELECTRICAL PRODUCTS - MISCELLANEOUS: 7.1%
100,000 Aetrium, Inc.*.......................................................... 1,050,000
62,800 Ametek, Inc............................................................. 1,185,350
450,000 Destron Fearing Corp.*.................................................. 1,800,000
100,000 Ibis Technology Corp.*.................................................. 862,500
410,000 Micro Component Technology, Inc.*....................................... 845,625
100,000 Microtest, Inc.*........................................................ 898,400
90,000 Richey Electronics, Inc.*............................................... 843,750
100,000 Sheldahl, Inc.*......................................................... 1,687,500
------------
9,173,125
------------
FINANCIAL SERVICES - MISCELLANEOUS: 1.3%
40,000 TCF Financial Corp...................................................... 1,505,000
42,000 REALCO, Inc.*........................................................... 136,500
------------
1,641,500
------------
LEISURE - GAMING: 5.8%
250,000 Acres Gaming, Inc.*..................................................... 3,406,250
136,000 American Wagering, Inc.*................................................ 1,292,000
100,000 Grand Casinos, Inc.*.................................................... 1,475,000
200,000 Innovative Gaming Corporation of America*............................... 1,150,000
60,000 Lotto World, Inc.*...................................................... 105,000
------------
7,428,250
------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
[THE PERKINS OPPORTUNITY FUND LOGO]
PORTFOLIO OF INVESTMENTS AT SEPTEMBER 30, 1996 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
<S> <C> <C>
MEDICAL - BIOMED/GENETICS: 3.4%
400,000 Incstar Corp.*.......................................................... $ 1,450,000
250,000 Life Medical Sciences, Inc.*............................................ 1,750,000
100,000 Somatogen, Inc.*........................................................ 1,137,500
------------
4,337,500
------------
MEDICAL - ETHICAL DRUGS: 3.0%
50,000 Chronimed, Inc.*........................................................ 693,750
290,000 Orphan Medical, Inc.*................................................... 3,190,000
------------
3,883,750
------------
MEDICAL - PRODUCTS: 15.6%
195,000 ATS Medical, Inc.*...................................................... 1,438,125
90,000 Cardio Thoracic Systems, Inc.*.......................................... 1,833,750
600,000 Everest Medical Corp.*.................................................. 2,325,000
175,000 Fisher Imaging Corp.*................................................... 984,375
700,000 Imatron, Inc.*.......................................................... 3,237,500
500,000 InnerDyne Medical, Inc.*................................................ 1,750,000
75,000 Ion Laser Tech, Inc.*................................................... 993,750
150,000 LecTec Corp.*........................................................... 1,387,500
145,000 Optical Sensors, Inc.*.................................................. 1,232,500
600,000 Spectranetics Corp.*.................................................... 3,300,000
271,433 SpectraScience, Inc.*................................................... 1,628,598
------------
20,111,098
------------
RETAIL - MISCELLANEOUS/DIVERSIFIED: 7.0%
50,000 Amerco*................................................................. 1,993,750
140,000 Fingerhut Companies, Inc................................................ 1,855,000
250,000 Funco, Inc.*............................................................ 2,281,250
195,000 Moovies, Inc.*.......................................................... 1,072,500
370,000 Pet Food Warehouse, Inc.*............................................... 1,850,000
------------
9,052,500
------------
RETAIL - RESTAURANTS: 1.5%
75,000 Daka International, Inc.*............................................... 675,000
300,000 Michigan Brewery, Inc.*................................................. 1,312,500
------------
1,987,500
------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
[THE PERKINS OPPORTUNITY FUND LOGO]
PORTFOLIO OF INVESTMENTS AT SEPTEMBER 30, 1996 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
Shares Market Value
------ ------------
<S> <C> <C>
TELECOMMUNICATIONS - EQUIPMENT AND SERVICES: 5.7%
75,000 Intervoice, Inc.*....................................................... $ 1,106,250
150,000 Norstan, Inc.*.......................................................... 2,587,500
350,000 Racotek, Inc.*.......................................................... 2,100,000
150,000 Rural Cellular Corp., Class A*.......................................... 1,575,000
------------
7,368,750
------------
Total Common Stocks (cost $116,246,575)................................. 116,020,886
------------
WARRANTS: 0.2%
- --------------------------------------------------------------------------------
BUSINESS SERVICES - MISCELLANEOUS: 0.2%
62,500 Health Fitness/Physical Therapy, Inc., Warrants, Ex 4/4/1999 @ $4.00*.. 0
------------
LEISURE - GAMING: 0.0%
25,000 Canterbury Park, Warrants, Ex 8/18/1998 @ $4.58*........................ 6,250
------------
MEDICAL - PRODUCTS: 0.0%
20,000 ATS Medical, Inc. Warrants, Ex 1/4 2/2/1997 @ $6.75*................... 10,000
10,000 Work Recovery, Inc., Class B, Warrants, Ex 6/8/1997 @ $1.80*............ 0
------------
10,000
------------
RETAIL - RESTAURANTS: 0.2%
300,000 Michigan Brewery, Inc., Class A, Warrants, Ex 6/13/2000 @ $8.00*........ 225,000
------------
Total Warrants (cost $50,000)........................................... 241,250
------------
<CAPTION>
Principal Amount REPURCHASE AGREEMENT: 9.8%
- --------------------------------------------------------------------------------
$12,616,381 Provident Bank Repurchase Agreement, 5.50%, dated
9/30/1996, due 10/1/1996, collateralized by $11,195,087
FHLMC, due 11/15/2022 and $8,647,015 FHLMC, due
4/15/2023 (proceeds $12,618,282) (cost $12,616,381)..................... 12,616,381
------------
Total Investment in Securities (cost $128,912,956++): 100.1%............. 128,878,517
Liabilities in excess of Other Assets: (0.1)%........................... (105,054)
------------
Total Net Assets: 100.0%................................................ $128,773,463
============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
[THE PERKINS OPPORTUNITY FUND LOGO]
PORTFOLIO OF INVESTMENTS AT SEPTEMBER 30, 1996 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
Market Value
------------
<S> <C>
*Indicates non-income producing security.
++Cost for federal income tax purposes is the same.
Net unrealized appreciation consists of:
Gross unrealized appreciation .......................................... $ 17,702,607
Gross unrealized depreciation .......................................... (17,737,047)
------------
Net unrealized appreciation .................................. $ (34,440)
============
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
[THE PERKINS OPPORTUNITY FUND LOGO]
STATEMENT OF ASSETS AND LIABILITIES AT SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (identified cost $128,912,956)
(Note 2-A)............................................................. $ 128,878,517
Receivables:
Investment securities sold ............................................ 889,850
Fund shares sold ...................................................... 707,220
Dividends and interest ................................................ 1,927
Deferred organization costs (Note 2-D) ...................................... 12,203
Prepaid expenses ............................................................ 116,489
-------------
Total assets .................................................... 130,606,206
-------------
LIABILITIES
Payables:
Investment securities purchased ....................................... 1,473,684
Dividends ............................................................. 2,732
Fund shares redeemed .................................................. 71,248
Advisor (Note 4) ...................................................... 104,234
Distributor (Notes 4 and 5) ........................................... 116,409
Accrued expenses ............................................................ 64,436
-------------
Total liabilities ............................................... 1,832,743
-------------
NET ASSETS ........................................................................ $ 128,773,463
=============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($128,773,463/7,075,156 shares outstanding;
unlimited number of shares authorized without par value) .............. $ 18.20
=============
COMPUTATION OF OFFERING PRICE PER SHARE
(Net asset value $18.20/.9525) ........................................ $ 19.11
=============
SOURCE OF NET ASSETS
Paid-in capital ............................................................. $ 121,880,379
Accumulated net investment loss ............................................. (1,358,462)
Undistributed net realized gain on investments .............................. 8,285,986
Net unrealized depreciation on investments .................................. (34,440)
-------------
Net assets ............................................................ $ 128,773,463
=============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
[THE PERKINS OPPORTUNITY FUND LOGO]
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends ....................................................................... $ 27,020
Interest......................................................................... 427,748
-------------
454,768
-------------
Expenses
Advisory fee (Note 4) ........................................................... 625,357
Distribution costs (Notes 4 and 5) .............................................. 157,791
Administration fee (Note 4) ..................................................... 131,136
Custodian and accounting fees ................................................... 48,922
Shareholder servicing fees (Note 6).............................................. 29,816
Transfer agent fees ............................................................. 21,960
Auditing fees ................................................................... 6,017
Legal fees...................................................................... 1,680
Shareholder reports ............................................................. 1,905
Trustees' fees .................................................................. 1,504
Registration fees................................................................ 17,782
Insurance ....................................................................... 1,446
Amortization of deferred organization expenses (Note 2-D)........................ 4,337
Miscellaneous ................................................................... 1,905
-------------
Total expenses ............................................................ 1,051,558
-------------
NET INVESTMENT LOSS ................................................. (596,790)
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions .................................... 7,524,530
Net change in unrealized depreciation of investments ............................ (15,068,887)
-------------
Net realized and unrealized loss on investments ........................... (7,544,357)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................ $ (8,141,147)
=============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
[THE PERKINS OPPORTUNITY FUND LOGO]
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year Ended
Ended September March 31,
30, 1996+ 1996
--------- ----
<S> <C> <C>
INCREASE IN NET ASSETS FROM
OPERATIONS:
Net investment loss ........................................................ $ (596,790) $ (600,653)
Net realized gain from security transactions ............................... 7,524,530 3,872,910
Net change in unrealized appreciation of investments ....................... (15,068,887) 13,678,855
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... (8,141,147) 16,951,112
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain from security transactions ............................... (1,566,930) (2,443,963)
------------- ------------
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets derived from net change in outstanding
shares (a)................................................................. 46,199,788 65,289,955
------------- ------------
TOTAL INCREASE IN NET ASSETS ......................................... 36,491,711 79,797,104
NET ASSETS:
Beginning of period ........................................................ 92,281,752 12,484,648
------------- ------------
END OF PERIOD .............................................................. $ 128,773,463 $ 92,281,752
============= ============
</TABLE>
(a) A summary of capital share transactions is as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
September 30, 1996+ March 31, 1996
------------------- --------------
Shares Value Shares Value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Shares sold ................................. 3,422,486* $ 72,567,297 4,854,066* $ 81,019,266
Shares reissued in connection with payment of
dividends ............................. 66,471 1,406,537 136,058* 2,238,230
Shares redeemed ............................. (1,327,635) (27,774,046) (1,034,312)* (17,967,541)
--------- ------------ ---------- ------------
Net increase ................................ 2,161,322 $ 46,199,788 3,955,812* $ 65,289,955
========= ============ ========= ============
</TABLE>
*Per share value reflects 2-for-1 stock split. See Note 8.
+Unaudited.
See accompanying notes to financial statements.
10
<PAGE> 11
[THE PERKINS OPPORTUNITY FUND LOGO]
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
Six Months Year Year Year Feb. 18, 1993**
Ended Ended Ended Ended through
September March 31, March 31, March 31, March 31,
30, 1996++ 1996 1995 1994 1993
---------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .............. $ 18.78 $ 13.03 $ 10.37 $ 7.96 $ 7.50
Income from investment operations:
Net investment loss ......................... (.08) (.12) (.13) (.13) (.01)
Net realized and unrealized gain (loss)
on investments ............................ (.26) 6.66 3.79 2.70 .47
------- ------- ------- ------- -------
Total from investment operations .................. (.34) 6.54 3.66 2.57 .46
------- ------- ------- ------- -------
Less distributions from net capital gains ......... (.24) (.79) (1.00) (.16) -0-
------- ------- ------- ------- -------
Net asset value, end of period .................... $ 18.20 $ 18.78 $ 13.03 $ 10.37 $ 7.96
======= ======= ======= ======= =======
Total return ...................................... (4.08)%+ 51.29% 38.72% 32.22% 28.37%+
Ratios/supplemental data:
Net assets, end of period (millions) .............. $ 128.8 $ 92.3 $ 12.5 $ 3.3 $ 1.0
Ratio of expenses to average net assets:
Before expense reimbursement ................ 1.67%+ 1.97% 3.08% 5.14% 13.15%+
After expense reimbursement ................. 1.67%+ 1.97% 2.63% 2.49% 2.42%+
Ratio of net investment loss to average net assets:
Before expense reimbursement ................ (0.95%)+ (1.16%) (2.76%) (4.93%) (12.38%)+
After expense reimbursement ................. (0.95%)+ (1.16%) (2.31%) (2.28%) (1.65%)+
Portfolio turnover rate ........................... 47.36% 92.45% 124.86% 90.63% 15.15%
Average commission rate paid ...................... $0.0506# -- -- -- --
</TABLE>
*Per share value reflects 2-for-1 stock split. See Note 8.
**Commencement of operations.
+Annualized.
++Unaudited.
#For fiscal years beginning after September 1, 1995, a fund is required to
disclose its average commission rate per share for security trades on which
commissions are charged.
See accompanying notes to financial statements.
11
<PAGE> 12
[THE PERKINS OPPORTUNITY FUND LOGO]
NOTES TO FINANCIAL STATEMENTS AT SEPTEMBER 30, 1996 (UNAUDITED)
NOTE 1 - ORGANIZATION
The Perkins Opportunity Fund (the "Fund") is a series of shares of
beneficial interest of Professionally Managed Portfolios (the "Trust"), which is
registered under the Investment Company Act of 1940 (the "1940 Act") as a
diversified, open-end management company. The Fund's primary investment
objective is capital appreciation. The Fund seeks to achieve its objective by
investing in securities with attractive capital appreciation potential, but
there are no assurances that this objective will be achieved. The value of the
Fund's investment portfolio will fluctuate with market conditions and an
investor's shares, when redeemed, may be worth more or less than their original
cost. The Fund began operations on February 18, 1993.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation. Investments in securities traded on a national
securities exchange or included in the NASDAQ National Market System
are valued at the last reported sale price at the close of regular
trading on the last business day of the period; securities traded on
an exchange or NASDAQ for which there has been no sale and other
over-the-counter securities are valued at the last reported bid
price. Securities for which quotations are not readily available are
valued at their respective fair values as determined in good faith
by the Board of Trustees. Short-term investments are stated at cost,
which when combined with accrued interest, approximates market
value.
B. Federal Income Taxes. The Fund intends 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.
C. Security Transactions, Investment Income and Distributions. As is
common in the industry, security transactions are accounted for on
the trade date. Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recognized
on an accrual basis. Income and capital gains distributions to
shareholders are determined in accordance with income tax
regulations which may differ from Generally Accepted Accounting
Principles. Those differences are primarily due to differing
treatments for net operating losses.
D. Deferred Organization Costs. The Fund has incurred expenses of
$20,000 in connection with the organization of the Fund. These costs
have been deferred and are being amortized on a straight line basis
through the period ending February 17, 1998.
E. Accounting Estimates. 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 revenues and expenses during the
period. Actual results could differ from those estimates.
12
<PAGE> 13
[THE PERKINS OPPORTUNITY FUND LOGO]
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
NOTE 3 - RESTRICTED SECURITIES
On September 30, 1996, the Fund held restricted securities (i.e.,
securities which may not be publicly sold without registration under the
Securities Act or without an exemption under that Act). These securities are
valued at fair value as determined by the Board of Trustees, giving
consideration to credit quality, dividend rate, if any, projected earnings and
marketability of the securities of comparable issuers. On September 30, 1996 and
on the dates of acquisition, there were no market quotations available for
unrestricted securities of the same class. Dates of acquisition and cost of
restricted securities are as follows:
<TABLE>
<CAPTION>
Per Unit Value
Acquisition Date at 9-30-96 Cost
---------------- ---------- ----
<S> <C> <C> <C>
Appliance Recycling Centers of America, Inc. May 31, 1996 $2.25 $ 700,000
Delphi Information Systems, Inc. April 17, 1996 0.74 1,400,000
Work Recovery, Inc., Warrants June 3, 1993 0.00 0
----------
Total restricted securities (fair value of
$1,486,000 or 0.01% of net assets
at September 30, 1996) $2,100,000
==========
</TABLE>
NOTE 4 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
For the period ended September 30, 1996, Perkins Capital Management, Inc.
(the "Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space and certain administrative services, and provides most of the
personnel needed by the Fund. As compensation for its services, the Advisor
receives a monthly fee at the annual rate of 1.00% based upon the average daily
net assets of the Fund.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund to the extent necessary to limit
the Fund's aggregated annual operating expenses, exclusive of interest on
borrowing, to the most stringent limits prescribed by any state in which the
Fund's shares are offered for sale. Currently, the expense limit is 2.50% on the
first $30 million of net assets and reduced amounts thereafter. The Fund did not
exceed the expense limit during the six months ended September 30, 1996.
Investment Company Administration Corporation (the "Administrator") acts
as the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund expenses and reviews the Fund's
expense accruals. For its services, the Administrator receives a monthly fee at
the following annual rate:
Under $12 million - $30,000
$12 to $50 million - 0.25% of average net assets
$50 to $100 million - 0.20% of average net assets
$100 to $200 million - 0.15% of average net assets
over $200 million - 0.10% of average net assets
13
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[THE PERKINS OPPORTUNITY FUND LOGO]
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.
Certain officers and Trustees of the Fund are also officers and/or
directors of the Administrator and Distributor.
NOTE 5 - DISTRIBUTION COSTS
The Fund has adopted a Distribution Plan (the "Plan") in accordance with
Rule 12b-1 under the 1940 Act. The Plan provides that the Fund may pay a fee to
the Distributor at an annual rate of up to 0.25% of the average daily net assets
of the Fund (currently 0.20%). The fee is paid to the Distributor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. During the six months ended September 30, 1996,
the Fund paid to the Distributor $157,791 or approximately 0.20% (annualized) of
average daily net assets.
NOTE 6 - SHAREHOLDER SERVICES FEE
The Fund has entered into a Shareholder Service Agreement with the
Advisor, under which the Fund pays servicing fees at an annual rate of up to
0.25% of the Fund's average daily net assets. Payments to the Advisor under the
Shareholder Servicing Agreement may reimburse the Advisor for payments it makes
to selected brokers, dealers and administrators which have entered into Service
Agreements with the Advisor for services provided to shareholders of the Fund.
The services provided by such intermediaries are primarily designed to assist
shareholders of the Fund and include the furnishing of office space and
equipment, telephone facilities, personnel and assistance to the Fund in
servicing such shareholders. Services provided by such intermediaries also
include the provision of support services to the Fund and include establishing
and maintaining shareholders' accounts and records, processing purchase and
redemption transactions, answering routine client inquiries regarding the Fund,
and providing such other personal services to shareholders as the Fund may
reasonably request.
NOTE 7 - PURCHASES AND SALES OF SECURITIES
For the six months ended September 30, 1996, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$84,980,939 and $42,694,586, respectively.
NOTE 8 - CAPITAL STOCK TRANSACTIONS
On May 14, 1996, the Board of Trustees authorized a 2-for-1 stock split,
payable to shareholders of record on May 31, 1996.
14
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ADVISOR
Perkins Capital Management, Inc.
730 East Lake Street
Wayzata, MN 55391-1769
(888) PERKOPP
(612) 473-8367
o
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018
o
CUSTODIAN
The Provident Bank
One East Fourth Street
Cincinnati, OH 45250-0967
o
TRANSFER AGENT AND SHAREHOLDER SERVICES
Rodney Square Management Corporation
1105 North Market Street, 19th Floor
Wilmington, DE 19890-0001
(800)280-4779
o
AUDITORS
Tait, Weller & Baker
2 Penn Center Plaza, Suite 700
Philadelphia, PA 19102
o
LEGAL COUNSEL
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, CA 94104
This report is intended for shareholders of
The Perkins Opportunity Fund and may not
be used as sales literature unless preceded
or accompanied by a current prospectus.
[THE PERKINS OPPORTUNITY FUND LOGO]
A mutual fund seeking to provide
capital appreciation through a
continuing search for investment opportunities
SEMI-ANNUAL REPORT
TO SHAREHOLDERS FOR
THE SIX MONTHS ENDED
SEPTEMBER 30, 1996
