December 8 1997
Securities and Exchange Commission
Attn: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549
Re: Professionally Managed Portfolios
File No. 811-5037
CIK No. 811030
Dear Sir or Madam:
On behalf of the above Registrant and pursuant to Rule 30b-2 under
the Investment Company Act of 1940, I enclose for filing via EDGAR,
a copy of the Semi-annual Report to shareholders of the Pro-
Conscience Womens Fund series of the Registrant for the six month
period ended September 30, 1997.
If you have any questions, please contact me at (602) 952-1100.
Sincerely yours,
/s/
Robert H. Wadsworth
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
Semi-Annual Report
For the Six Months Ended
September 30, 1997
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
November 11, 1997
Dear Shareholders:
October 1, 1997 marked the fourth anniversary of the Women's Equity Mutual Fund,
the Fund that invests in companies that empower women. The companies in our
portfolio are financially sound, provide solid products and services, and have
growth potential. They also have management teams which recognize that women are
and will increasingly become an influential force in the market. Data and trends
tell us that more women will be better educated, will enter the workforce, will
start their own companies and will continue to be the primary decision makers as
consumers.
As of September 30, 1997 the Fund's annualized average returns are as follows:
<TABLE>
<CAPTION>
One Three From
Year Year Inception
<S> <C> <C> <C>
WEMF 26.77% 15.50% 13.27%
</TABLE>
The stock market has enjoyed the effects of a steady economic growth rate, low
inflation, and rising corporate earnings over the last three years. During the
last couple of months, we have seen extreme volatility as a result of currency
devaluations and fluctuations in Asia. The true impact of these developments
will probably be reflected in 1998 when U.S. corporate profits may be affected.
Our portfolio will continue to be conservatively managed with discipline that
reflects a more diversified portfolio as compared to the Standard & Poor 500
companies in terms of industries, capitalization size, and geographic location.
Low turn-over rate remains important to the portfolio as well.
We thank our shareholders for your support and welcome your comments and
suggestions. We will be sending out a questionnaire to all our shareholders at
the beginning of the new year. We ask for your cooperation in completing the
questionnaire so that we can implement an effective marketing campaign in 1998.
Sincerely yours,
/s/
Linda C.Y. Pei
President
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS at September 30, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 94.8% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Durables: 4.1%
<S> <C> <C>
2,600 Champion Enterprises, Inc.*............................................. $ 49,725
2,400 Harley-Davidson, Inc.................................................... 70,050
1,500 Honda Motor, Ltd........................................................ 104,625
-------
224,400
-------
Consumer Products and Services: 20.8%
2,000 Avon Products, Inc...................................................... 124,000
2,700 Children's Discovery Centers of America, Inc.*.......................... 20,925
2,200 Coca-Cola Company....................................................... 134,063
1,800 Colgate Palmolive Company............................................... 125,437
2,900 Costco Companies, Inc.*................................................. 109,112
1,700 Cyanotech Corp.*........................................................ 9,775
2,733 Dollar General Corp..................................................... 93,093
1,300 Gillette Company........................................................ 112,206
1,900 Kimberly-Clark Corp..................................................... 92,981
2,400 May Department Stores Company........................................... 130,800
1,000 McDonald's Corp......................................................... 47,625
2,500 Odwalla, Inc.*.......................................................... 24,375
4,200 Richfood Holdings, Inc.................................................. 108,938
-------
1,133,330
---------
Energy and Resources: 2.7%
900 Amoco Corp.............................................................. 86,737
1,850 Calenergy Company, Inc.*................................................ 61,512
------
148,249
-------
Financial Services: 16.4%
862 American International Group, Inc....................................... 88,947
1,740 BankBoston Corp......................................................... 153,881
2,400 BankAmerica Corp........................................................ 175,950
2,800 Federal National Mortgage Association................................... 131,600
2,625 Norwest Corp............................................................ 160,781
4,000 Unum Corp............................................................... 182,500
-------
893,659
-------
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
SCHEDULE OF INVESTMENTS at September 30, 1997 (Unaudited), Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care: 12.2%
1,075 Boston Scientific Corp.*................................................ $ 59,326
2,700 Invacare Corp........................................................... 63,450
1,900 Johnson & Johnson....................................................... 109,488
2,900 Medtronic, Inc.......................................................... 136,300
1,200 Merck & Company, Inc.................................................... 119,925
5,500 Quidel Corp.*........................................................... 27,156
2,900 Schering-Plough Corp.................................................... 149,350
-------
664,995
-------
Industrial Materials: 3.7%
2,600 Praxair, Inc............................................................ 133,088
2,000 Sonoco Products Company................................................. 67,875
------
200,963
-------
Media and Publishing: 2.6%
1,050 Scholastic Corp.*....................................................... 41,475
1,200 Walt Disney Company..................................................... 96,750
------
138,225
-------
Producer Products: 5.7%
3,750 Baldor Electric Company................................................. 114,141
3,250 Illinois Tool Works, Inc................................................ 162,500
1,200 Wolverine Tube, Inc.*................................................... 37,650
------
314,291
-------
Technology: 16.6%
2,200 ADC Telecommunications, Inc.*........................................... 71,500
1,300 Automatic Data Processing, Inc.......................................... 65,000
1,500 Cisco Systems, Inc.*.................................................... 109,594
1,400 Computer Associates International, Inc.................................. 100,538
1,200 Hewlett Packard, Inc.................................................... 83,475
1,300 Intel Corp.............................................................. 120,006
1,200 Microsoft Corp.*........................................................ 158,775
1,250 Sanmina Corp.*.......................................................... 108,203
1,050 Xerox Corp.............................................................. 88,397
------
905,488
-------
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
SCHEDULE OF INVESTMENTS at September 30, 1997 (Unaudited), Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications - Equipment: 4.3%
900 Ameritech Corp.......................................................... $ 59,850
1,500 Century Telephone Enterprises, Inc...................................... 66,000
1,300 Lucent Technologies, Inc................................................ 105,788
-------
231,638
-------
Transportation: 1.1%
1,800 Southwest Airlines Company.............................................. 57,488
------
Utilities: 4.6%
2,100 BellSouth Corp.......................................................... 97,125
2,500 SBC Communications, Inc................................................. 153,438
-------
250,563
-------
Total Common Stocks (cost $3,648,531)................................... 5,163,289
---------
Principal Amount REPURCHASE AGREEMENT: 5.2%
- ------------------------------------------------------------------------------------------------------------------------------------
$286,000 Star Bank Repurchase Agreement, 5.45%, dated 9/30/97,
due 10/1/97, collateralized by $285,000 GNMA (value of
collateral $292,123) (cost $286,000).................................... 286,000
-------
Total Investment in Securities (cost $3,934,531+): 100.0%............... 5,449,289
Liabilities in excess of Other Assets: 0.0%............................. (1,780)
------
Total Net Assets: 100.0% ............................................... $5,447,509
==========
<FN>
*Non-income producing security.
+At September 30, 1997, the cost of securities for Federal tax purposes was the
same as the basis for financial reporting. Unrealized appreciation and
depreciation of securities were as follows:
Gross unrealized appreciation..................................... $1,592,726
Gross unrealized depreciation..................................... (77,968)
-------
Net unrealized appreciation................................ $1,514,758
==========
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at September 30, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments in securities, at value (cost $3,934,531).................................. $5,449,289
Cash................................................................................... 673
Receivables:
Due from Advisor................................................................. 1,925
Dividends and interest........................................................... 3,123
Fund shares sold................................................................. 4,000
Prepaid expenses....................................................................... 3,486
-----
Total assets .............................................................. 5,462,496
---------
LIABILITIES
Payables:
Administration fee............................................................... 2,372
Distribution fees................................................................ 3,346
Accrued expenses ...................................................................... 9,269
-----
Total liabilities.......................................................... 14,987
------
NET ASSETS .............................................................................. $5,447,509
==========
Net asset value, offering and redemption price per share
($5,447,509/362,034 shares outstanding;
unlimited number of shares authorized without par value) ........................ $15.05
======
COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $3,881,739
Accumulated net investment loss........................................................ (6,211)
Accumulated net realized gain on investments........................................... 57,223
Net unrealized appreciation on investments............................................. 1,514,758
---------
Net assets ...................................................................... $5,447,509
==========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Six Months Ended September 30, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Dividends........................................................................ $ 26,752
Interest......................................................................... 4,602
Other............................................................................ 682
---
Total income............................................................... 32,036
------
Expenses
Advisory fees.................................................................... 25,498
Administration fee............................................................... 15,041
Custodian and accounting fees.................................................... 10,496
Distribution fees................................................................ 6,375
Audit fee........................................................................ 6,017
Transfer agent fees.............................................................. 5,439
Registration fees ............................................................... 5,025
Reports to shareholders.......................................................... 3,534
Miscellaneous.................................................................... 1,597
Trustee fees .................................................................... 1,504
Legal fees....................................................................... 1,495
-----
Total expenses............................................................. 82,021
Less, expenses reimbursed/waived........................................... (43,774)
-------
Net expenses............................................................... 38,247
------
Net investment loss ............................................... (6,211)
------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions .......................................... 59,735
Net change in unrealized appreciation on investments .................................. 1,029,300
---------
Net realized and unrealized gain on investments ........................... 1,089,035
---------
Net Increase in Net Assets Resulting from Operations ................ $1,082,824
==========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
September 30, 1997# March 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment loss .................................................. $ (6,211) $ (1,834)
Net realized gain from security transactions .......................... 59,735 75,795
Net change in unrealized appreciation on investments................... 1,029,300 153,825
--------- -------
Net increase in net assets resulting from operations ............ 1,082,824 227,786
--------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.................................................. -0- (2,977)
- ------
CAPITAL SHARE TRANSACTIONS
Net (decrease) increase in net assets derived from net change in
outstanding shares (a) ............................................. (80,095) 911,202
------- -------
Total increase in net assets .................................... 1,002,729 1,136,011
NET ASSETS
Beginning of period.................................................... 4,444,780 3,308,769
--------- ---------
End of period ........................................................ $5,447,509 $4,444,780
========== ==========
<FN>
(a) A summary of capital shares transactions is as follows:
Six Months Ended Year Ended
September 30, 1997# March 31, 1997
Shares Value Shares Value
Shares sold ...................................... 38,790 $ 541,986 107,417 $1,339,632
Shares issued in reinvestment of distribution..... -0- -0- 233 2,810
Shares redeemed .................................. (44,040) (622,081) (35,270) (431,240)
------- -------- ------- --------
Net (decrease) increase........................... (5,250) $ (80,095) 72,380 $ 911,202
====== ========= ====== =========
#Unaudited.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended October 1, 1993*
September Year Ended March 31, through
30, 1997# 1997 1996 1995 March 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.10 $11.22 $ 9.93 $10.46 $10.00
Income from investment operations:
Net investment income (loss) ........... (.01) (.01) .01 .36 (.01)
Net realized and unrealized
gain (loss) on investments .......... 2.96 .90 1.59 (.28) .47
---- --- ---- ---- ---
Total from investment operations........... 2.95 .89 1.60 .08 .46
---- --- ---- --- ---
Less distributions:
From net investment income.............. -0- (.01) (0.31) (.02) -0-
From net capital gains ................. -0- -0- -0- (.59) -0-
- - - ---- -
Total distributions........................ -0- (.01) (0.31) (.61) -0-
- ---- ----- ---- -
Net asset value, end of period ............ $15.05 $12.10 $11.22 $ 9.93 $10.46
====== ====== ====== ====== ======
Total return .............................. 24.38% 7.92% 16.17% 0.97% 9.23%+
Ratios/supplemental data:
Net assets, end of period (millions)....... $ 5.4 $ 4.4 $ 3.3 $ 1.5 $ 0.6
Ratio of expenses to average net assets:
Before expense reimbursement and waiver. 3.21%+ 4.09% 4.75% 8.69% 21.93%+
After expense reimbursement and waiver.. 1.50%+ 1.50% 1.50% 1.50% 1.50%+
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement and waiver. (1.96%)+ (2.64%) (1.97%) (1.97%) (20.74%)+
After expense reimbursement and waiver.. (0.24%)+ (0.05%) 1.28% 5.22% 0.31%+
Portfolio turnover rate ................... 4.62% 51.13% 120.64% 705.88% 139.26%
Average commission rate paid per share++.... $.0490 $.0548 - - -
<FN>
#Unaudited.
*Commencement of operations.
+Annualized.
++For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate paid per share for security trades on
which commissions are charged. This amount may vary from period to period and
fund to fund depending on the mix of trades executed in various markets where
trading practices and commission rate structures may differ.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
NOTES TO FINANCIAL STATEMENTS at September 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Pro-Conscience Women's Equity Mutual Fund (the "Fund") is a
diversified 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 an open-end management investment company. The
Fund's primary investment objective is to provide long-term capital
appreciation. The Fund began operations on October 1, 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 sales 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 have been no sales and other
over-the-counter securities 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.
U.S. Government securities with less than 60 days remaining to
maturity when acquired by the Fund are valued on an amortized cost
basis. U.S. Government securities with more than 60 days remaining to
maturity are valued at the current market value (using the mean
between the bid and asked price) until the 60th day prior to
maturity, and are then valued at amortized cost based upon the value
on such date unless the Board determines during such 60-day period
that this amortized cost basis does not represent fair 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 income tax provision is required. The
Fund maintains a January 31 tax year end.
C. Security Transactions, Dividends 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 are determined in
accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments for net operating losses and
deferral of post-October capital losses.
D. Use of Estimates. The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
<PAGE>
Pro-conscience
Women's Equity Mutual Fund
Advancing Gender Equality in the Workplace
NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued
- --------------------------------------------------------------------------------
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the six months ended September 30, 1997, Pro-Conscience Funds,
Incorporated (the "Advisor") provided the Fund with investment management
services under an Investment Advisory Agreement. The Advisor furnishes 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 is entitled to a monthly fee at the annual rate of 1.00%
based upon the average daily net assets of the Fund. In order to maintain the
Fund's operating expenses at 1.50% of average daily net assets, the Advisor has
waived a portion of its fee and reimbursed expenses totaling $43,774 for the six
months ended September 30, 1997. United States Trust Company of Boston
(the"Sub-Advisor") acts as Sub-Advisor to the Fund and is entitled to
compensation for its services from the Advisor.
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 $15 million $30,000
$15 to $50 million 0.20% of average daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
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 Trust are also officers and/or
directors of the Administrator and Distributor.
NOTE 4 - 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 Advisor as Distribution Coordinator at an annual rate of up to 0.25% of the
average daily net assets of the Fund. The fee is paid to the Advisor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. For the six months ended September 30, 1997, the
Fund paid fees of $6,375 to the Advisor.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of securities, other
than short-term investments, for the six months ended September 30, 1997 were
$224,214 and $455,476, respectively.
<PAGE>
Advisor
Pro-Conscience Funds, Inc.
625 Market Street, 16th Floor
San Francisco, California 94105
(415) 547-9135
--
Distributor
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261E
Phoenix, Arizona 85018
--
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
--
Transfer Agent
American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
(800) 385-7003
--
Auditors
Tait, Weller & Baker
8 Penn Center, Suite 800
Philadelphia, Pennsylvania 19101
--
Legal Counsel
Paul, Hastings, Janofsky & Walker
345 California Street, 29th Floor
San Francisco, California 94104
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will
fluctuate so that shares, when redeemed may be worth more or less than
their original cost. Statements and other information herein are dated and
are subject to change.
