[ FRONT COVER ]
[ WOODWARD FUNDS LOGO ART AND LOGOTYPE ]
-----------------
Semi-Annual Report
June 30, 1996
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Woodward Equity Index Fund
Investment Adviser
[ NBD BANK LOGOTYPE ]
24 Hour yield information:
Purchase and Redemption orders:
(800) 688-3350
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Dear Shareholder:
As you know, the Woodward Funds have embarked on some exciting
changes over the last several months. Following the proxy solicitation, we are
pleased to report that the reorganization of the Woodward Funds has been
approved by shareholders. The reorganization is expected to be completed on or
around September 23,1996.
What does this mean to you?
First Chicago NBD Investment Management Company, the adviser to
the Prairie Funds, has joined forces with NBD Bank, the adviser to the
Woodward Mutual Fund Family, to create a powerful new fund group, soon to be
renamed the Pegasus Funds. As a shareholder, this means that the resources of
a stronger organization will be working for you.
o Strength in management -- With more than $12 billion in total assets, the
Pegasus Funds will be one of the largest bank-managed mutual fund
families in the country.
o Depth of experience -- Continuing a century-old tradition of asset
management for individuals and institutions, the Pegasus Funds' adviser
is comprised of more than 70 investment professionals who are dedicated
to the Funds' management.
o Breadth of investment choices -- Shareholders can select from a complete
array of 25 mutual funds to meet virtually any investment objective.
Pegasus Funds bring you "Strength in Investing"
In addition to offering you a wide range of investment
opportunities, we pride ourselves on delivering superior service and
convenience. We have added features such as systematic withdrawals and
cross-reinvestment of dividends -- allowing you to invest dividends from one
Pegasus Fund in another -- so that you can have more options for your
investment dollars.
Thank you for your patience throughout this transition. If you
have any questions, please speak with your Investment Professional or call
Shareholder Services toll-free at 1-800-688-3350.
Sincerely,
/s/ Marco Hanig
Marco Hanig
Managing Director
First Chicago NBD Investment Management Company
August 30, 1996
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<CAPTION>
THE WOODWARD FUNDS
EQUITY INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
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ASSETS:
Investment in securities:
At cost ..................................... $578,956,856
============
At value (Note 2) ........................... $759,315,146
Cash ............................................. 135,716
Income receivable ................................ 1,097,050
Deferred organization costs, net (Note 2) ........ 4,399
Prepaids and other assets ........................ 1,308
------------
TOTAL ASSETS ........................... 760,553,619
------------
LIABILITIES:
Payable for securities purchased ................. 38,575,891
Accrued investment advisory fee .................. 59,038
Accrued distribution fees ........................ 3,075
Accrued custodial fee ............................ 8,867
Dividends payable ................................ 636,315
Other payables and accrued expenses .............. 16,996
------------
TOTAL LIABILITIES ...................... 39,300,182
------------
NET ASSETS ............................. $721,253,437
============
Net assets consist of:
Capital shares (unlimited number of shares
authorized, par value $.10 per share) ............ $ 4,682,426
Additional paid-in capital ....................... 532,125,719
Accumulated undistributed net investment income .. 71,861
Accumulated undistributed net realized gains ..... 4,015,141
Net unrealized appreciation on investments ....... 180,358,230
------------
TOTAL NET ASSETS ....................... $721,253,437
============
Shares of capital stock outstanding .............. 46,824,262
============
Net asset value and redemption price per share ... $ 15.40
============
<FN>
See accompanying notes to financial statements.
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<CAPTION>
THE WOODWARD FUNDS
EQUITY INDEX FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996
(Unaudited)
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INVESTMENT INCOME (Note 2)
Interest ...................................... $ 123,248
Dividends ...................................... 7,326,244
-----------
TOTAL INVESTMENT INCOME ................... 7,449,492
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EXPENSES (Note 2, 3 and 5):
Investment advisory fee ....................... 317,984
Distribution fees ............................. 16,727
Professional fees ............................. 15,256
Custodial fee ................................. 64,051
Transfer and dividend disbursing agent fees ... 5,592
Amortization of deferred organization costs ... 2,200
Marketing expenses ............................ 16,312
Registration, filing fees and other expenses .. 68,099
-----------
TOTAL EXPENSES ........................... 506,221
-----------
NET INVESTMENT INCOME ............................. 6,943,271
-----------
REALIZED AND UNREALIZED GAINS ON
INVESTMENTS:
Net realized gains ............................ 6,583,094
Net change in unrealized appreciation on
investments ............................... 46,822,280
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NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS ........................ 53,405,374
-----------
NET INCREASE IN NET ASSETS
FROM OPERATIONS ................................. $60,348,645
===========
<FN>
See accompanying notes to financial statements.
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<CAPTION>
THE WOODWARD FUNDS
EQUITY INDEX FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended
June 30, 1996 Year Ended
(Unaudited) Dec. 31, 1995
------------- --------------
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FROM OPERATIONS:
Net investment income ............... $ 6,943,271 $ 9,843,900
Net realized gains .................. 6,583,094 4,873,484
Net change in unrealized
appreciation on investments ....... 46,822,280 113,244,299
------------- -------------
Net increase in net assets
from operations ............... 60,348,645 127,961,683
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DISTRIBUTIONS TO SHAREHOLDERS (Note 2):
From net investment income .......... (7,013,688) (10,140,926)
From realized gains ................. -- (4,873,484)
In excess of realized gains ......... -- (90,675)
------------- -------------
Total distributions ............. (7,013,688) (15,105,085)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ........... 174,522,650 142,012,075
Net asset value of shares issued
in reinvestment of distributions
to shareholders .................. 5,940,482 13,655,168
------------- -------------
180,463,132 155,667,243
Less: payments for shares redeemed . (40,747,565) (81,128,978)
------------- -------------
Net increase in net assets from
capital share transactions ....... 139,715,567 74,538,265
------------- -------------
NET INCREASE IN NET ASSETS ............ 193,050,524 187,394,863
NET ASSETS:
Beginning of period ................. 528,202,913 340,808,050
------------- -------------
End of period ....................... $ 721,253,437 $ 528,202,913
============= =============
CAPITAL SHARE TRANSACTIONS:
Shares sold ........................... 11,848,974 10,856,382
Shares issued in reinvestment of
distributions to shareholders ....... 392,359 1,022,145
------------- -------------
12,241,333 11,878,527
Less: shares redeemed ................. (2,750,926) (6,539,777)
------------- -------------
NET INCREASE IN SHARES OUTSTANDING .... 9,490,407 5,338,750
CAPITAL SHARES:
Beginning of period ................. 37,333,855 31,995,105
------------- -------------
End of period ....................... 46,824,262 37,333,855
============= =============
<FN>
See accompanying notes to financial statements.
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<CAPTION>
THE WOODWARD FUNDS
EQUITY INDEX FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Face Amount Market Value
----------- ----------- ------------
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TEMPORARY CASH INVESTMENT - 4.67%
Salomon Brothers, Revolving Repurchase Agreement,
5.53%, 7/1/96 (secured by various U.S. Treasury
Strips with maturities ranging from 2/15/99 through
8/15/00, all held at Chemical Bank) .................................... $35,429,026 $35,429,026
(Cost $35,429,026) .......................................................... ----------- -----------
Shares
------
COMMON STOCKS - 95.33%
Aerospace - 2.24%
Boeing Co. ............................................................. 49,259 4,291,690
General Dynamics Corp. ................................................. 7,756 480,872
Goodrich (B. F.) Co. ................................................... 5,600 209,300
Lockheed Martin Corp. .................................................. 27,609 2,319,156
McDonnell Douglas Corp. ................................................ 35,202 1,707,297
Northrop Grumman Corp. ................................................. 7,872 536,280
Raytheon Co. ........................................................... 32,448 1,675,128
Rockwell International Corp. ........................................... 31,629 1,810,760
Textron, Inc. .......................................................... 12,533 1,001,074
TRW Inc. ............................................................... 11,070 994,916
United Technologies Corp. .............................................. 17,166 1,974,090
-----------
17,000,563
-----------
Air Transport - 0.43%
AMR Corp. * ............................................................ 12,704 1,156,064
Delta Air Lines, Inc. .................................................. 9,409 780,947
Federal Express Corp. * ................................................ 7,506 615,492
Southwest Airlines Co. ................................................. 18,300 532,987
USAir Group, Inc. * .................................................... 11,900 214,200
-----------
3,299,690
-----------
Apparel - 0.51%
Liz Claiborne, Inc. .................................................... 7,712 267,028
Nike, Inc. Class B ..................................................... 19,412 1,994,583
Reebok International Ltd. .............................................. 8,375 281,609
Russell Corp. .......................................................... 7,500 207,188
Spring Industries, Inc ................................................. 5,700 287,850
Stride Rite Corp. ...................................................... 43,800 361,350
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V.F. Corp. ............................................................. 8,648 515,637
-----------
3,915,245
-----------
Banks - 6.91%
Banc One Corp. ......................................................... 63,787 2,168,758
Bank of Boston Corp. ................................................... 18,826 931,887
Bank of New York Co. Inc. .............................................. 27,990 1,434,487
BankAmerica Corp. ...................................................... 53,332 4,039,899
Bankers Trust New York Corp. ........................................... 11,194 826,957
Barnett Banks, Inc. .................................................... 12,604 768,844
Boatmens Bancshares, Inc. .............................................. 25,566 1,025,836
Chase Manhattan Corp. .................................................. 62,785 4,434,190
Citicorp ............................................................... 69,242 5,721,120
Comerica, Inc. ......................................................... 18,600 830,025
CoreStates Financial Corp. ............................................. 28,465 1,095,902
Dean Witter, Discover & Co. ............................................ 22,507 1,288,526
Fifth Third Bancorp .................................................... 14,600 788,400
First Bank System, Inc. ................................................ 20,560 1,192,480
First Chicago NBD Corp. ................................................ 47,916 1,874,714
First Union Corp. ...................................................... 40,590 2,470,916
Fleet Financial Group, Inc. ............................................ 35,095 1,526,632
J.P. Morgan & Co., Inc. ................................................ 26,222 2,219,037
KeyCorp ................................................................ 30,100 1,166,375
MBNA Corp. ............................................................. 28,882 823,137
Mellon Bank Corp. ...................................................... 18,154 1,034,778
National City Corp. .................................................... 29,800 1,046,725
NationsBank Corp. ...................................................... 44,550 3,680,944
Norwest Corp. .......................................................... 49,426 1,723,732
PNC Bank Corp. ......................................................... 52,665 1,566,784
Republic NY Corp. ...................................................... 9,292 578,427
Suntrust Banks, Inc. ................................................... 29,704 1,099,048
U.S. Bancorp ........................................................... 25,467 919,995
Wachovia Corp. ......................................................... 21,673 948,194
Wells Fargo & Co. ...................................................... 13,513 3,227,918
-----------
52,454,667
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Business Machines - 4.74%
Amdahl Corp. * ......................................................... 17,500 188,125
Apple Computer, Inc. * ................................................. 18,306 384,426
Autodesk, Inc. ......................................................... 9,400 280,825
Bay Networks, Inc. * ................................................... 25,600 659,200
Ceridian Corp. * ....................................................... 7,300 368,650
Cisco System, Inc. * ................................................... 80,900 4,580,963
Compaq Computer Corp. * ................................................ 36,039 1,774,920
Cray Research, Inc. * .................................................. 1,210 29,191
Data General Corp. * ................................................... 13,000 169,000
Digital Equipment Corp. * .............................................. 19,447 875,115
DSC Communications Corp. * ............................................. 20,950 631,119
Honeywell, Inc. ........................................................ 19,577 1,066,947
Intergraph Corp. * ..................................................... 33,000 400,125
International Business Machines Corp. .................................. 76,837 7,606,863
Microsoft Corp. * ...................................................... 85,800 10,306,725
Novell, Inc. * ......................................................... 44,679 619,921
Pitney Bowes, Inc. ..................................................... 19,321 922,578
Silicon Graphics .* .................................................... 20,635 495,240
Sun Microsystems, Inc. * ............................................... 24,368 1,434,666
Tandem Computers, Inc. * ............................................... 34,900 431,887
Unisys Corp. * ......................................................... 27,600 196,650
Xerox Corp. ............................................................ 47,664 2,550,024
-----------
35,973,160
-----------
Business Services - 1.89%
Allergan, Inc. ......................................................... 6,247 245,195
Automatic Data Processing, Inc. ........................................ 40,236 1,554,116
Block (H.& R.), Inc. ................................................... 11,190 365,074
Browning-Ferris Industries, Inc. ....................................... 30,048 871,392
Computer Associates International, Inc. ................................ 33,871 2,413,309
Computer Sciences Corp. * .............................................. 8,460 632,385
Deluxe Corp. ........................................................... 11,409 405,019
Dial Corp. ............................................................. 8,718 249,553
Dun & Bradstreet Corp. ................................................. 22,531 1,408,187
Ecolab, Inc. ........................................................... 5,746 189,618
Harland (John H.) Co. .................................................. 17,200 423,550
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Interpublic Group of Companies, Inc. ................................... 11,232 526,500
Laidlaw Inc., Class B .................................................. 47,242 478,325
Moore Corp. Ltd. ....................................................... 7,228 136,428
National Service Industries, Inc. ...................................... 4,600 179,975
Ogden Corp. ............................................................ 19,600 355,250
Shared Medical Systems, Inc. ........................................... 4,300 276,275
U.S. West Media Group .................................................. 73,631 1,343,766
WMX Technologies, Inc. ................................................. 69,554 2,277,893
-----------
14,331,810
-----------
Chemicals - 2.70%
Air Products & Chemicals, Inc. ......................................... 15,263 881,438
Dow Chemical Co. ....................................................... 36,145 2,747,020
duPont (E I) de Nemours & Co., Inc. .................................... 79,146 6,262,427
Grace (W.R.) & Co. ..................................................... 16,311 1,156,042
Great Lakes Chemical Corp. ............................................. 11,868 738,783
Hercules, Inc. ......................................................... 13,974 772,064
Monsanto Co. ........................................................... 83,885 2,726,263
Morton International, Inc. ............................................. 18,737 697,953
Nalco Chemical Co. ..................................................... 6,364 200,466
PPG Industries, Inc. ................................................... 25,304 1,233,570
Praxair, Inc. .......................................................... 23,614 997,692
Rohm & Haas Co. ........................................................ 8,529 535,194
Safety Kleen Corp. ..................................................... 11,900 208,250
Sigma-Aldrich Corp. .................................................... 9,100 486,850
Union Carbide Corp. .................................................... 22,284 885,789
-----------
20,529,801
-----------
Construction - 0.46%
Armstrong World Industries, Inc. ....................................... 3,327 191,718
Centex Corp. (with warrants to purchase interest in CDC L.P ............ 9,183 285,821
Class B units and shares of 3333 Holdings Corp)
Crane Co. .............................................................. 6,500 266,500
Fluor Corp. ............................................................ 11,763 769,006
Kaufman & Broad Home Corp. ............................................. 15,000 217,500
Masco Corp. ............................................................ 20,411 617,433
Owens-Corning Fiberglas Corp. .......................................... 4,189 180,127
Pulte Corp. ............................................................ 6,100 163,175
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Sherwin Williams Co. ................................................... 10,704 497,736
Stanley Works .......................................................... 9,884 294,049
----------
3,483,065
----------
Consumer Durables - 0.37%
Black & Decker Corp. ................................................... 15,178 586,250
Jostens, Inc. .......................................................... 7,800 154,050
Maytag Corp. ........................................................... 9,270 193,511
Newell Co. ............................................................. 22,440 687,225
Outboard Marine Corp. .................................................. 8,800 159,500
Rubbermaid, Inc. ....................................................... 17,234 469,627
Whirlpool Corp. ........................................................ 11,603 575,799
----------
2,825,962
----------
Containers - 0.17%
Ball Corp. ............................................................. 4,800 138,000
Crown Cork & Seal Co., Inc. ............................................ 18,235 820,575
Stone Container Corp. .................................................. 24,382 335,252
----------
1,293,827
----------
Domestic Oil - 1.11%
Amerada Hess Corp. ..................................................... 11,888 637,494
Ashland Oil, Inc. ...................................................... 6,582 260,812
Atlantic Richfield Co. ................................................. 22,976 2,722,656
Kerr-McGee Corp. ....................................................... 6,121 372,616
Oryx Energy Co. * ...................................................... 11,900 193,375
Pennzoil Co. ........................................................... 9,808 453,620
Phillips Petroleum Co. ................................................. 36,853 1,543,219
Sun Co., Inc. .......................................................... 9,180 278,843
Unocal Corp. ........................................................... 32,556 1,098,765
USX-Marathon Group ..................................................... 43,963 884,755
----------
8,446,155
----------
Drugs and Medicine - 9.83%
Abbott Laboratories .................................................... 112,874 4,910,019
ALZA Corp. * ........................................................... 15,156 414,896
American Home Products Corp. ........................................... 90,272 5,427,604
Amgen, Inc. * .......................................................... 39,988 2,159,352
Bard (C.R.), Inc. ...................................................... 5,900 200,600
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Bausch & Lomb, Inc. .................................................... 6,896 293,080
Baxter International, Inc. ............................................. 37,289 1,761,905
Becton Dickinson & Co. ................................................. 9,973 800,333
Beverly Enterprises, Inc. * ............................................ 18,900 226,800
Biomet, Inc. * ......................................................... 17,700 254,438
Bristol-Myers Squibb Co. ............................................... 71,542 6,438,780
Columbia/HCA Healthcare Corp. .......................................... 61,566 3,286,085
Community Psychiatric Centers * ........................................ 20,600 195,700
Eli Lilly & Co. ........................................................ 80,714 5,246,410
Humana, Inc. * ......................................................... 23,800 425,425
Johnson & Johnson ...................................................... 187,760 9,294,120
Mallinckrodt Group, Inc. ............................................... 10,469 406,982
Manor Care, Inc. ....................................................... 5,756 226,643
Medtronic, Inc. ........................................................ 31,932 1,788,192
Merck & Co., Inc. ...................................................... 175,376 11,333,674
Pall Corp. ............................................................. 16,845 406,386
Pfizer, Inc. ........................................................... 91,364 6,521,105
Pharmacia & Upjohn Co. ................................................. 69,725 3,094,047
St. Jude Medical, Inc. * ............................................... 51,706 3,244,551
Schering-Plough Corp. .................................................. 11,300 378,550
Tenet Healthcare Corp. * ............................................... 38,002 812,293
United Healthcare Corp. ................................................ 26,700 1,348,350
United States Surgical Co. ............................................. 9,300 288,300
U.S. HealthCare, Inc. .................................................. 21,700 1,193,500
Warner Lambert Co. ..................................................... 41,336 2,273,480
----------
74,651,600
----------
Electronics - 4.88%
3Com Corp. * ........................................................... 21,900 1,001,925
Advanced Micro Devices, Inc. * ......................................... 22,252 303,184
AMP, Inc. .............................................................. 28,276 1,134,575
Andrew Corp. * ......................................................... 6,075 326,531
Boston Scientific Corp. * .............................................. 27,035 1,216,575
E G & G, Inc. .......................................................... 9,300 198,788
EMC Corp. Mass * ....................................................... 38,800 722,650
First Data Corp. ....................................................... 31,600 2,516,150
General Instrument Corp. * ............................................. 15,500 447,562
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General Signal Corp. ................................................... 6,053 229,257
Harris Corp. ........................................................... 7,507 457,927
Hewlett-Packard Co. .................................................... 72,000 7,173,000
Intel Corp. ............................................................ 115,724 8,498,481
Johnson Controls, Inc. ................................................. 6,808 473,156
LSI Logic Corp. * ..................................................... 22,200 577,200
Micron Technology, Inc. ................................................ 28,400 734,850
Motorola, Inc. ......................................................... 84,310 5,300,991
National Semiconductor Corp. * ......................................... 11,816 183,148
Northern Telecom Ltd. .................................................. 39,405 2,142,647
Perkin Elmer Corp. ..................................................... 4,400 212,300
Raychem Corp. .......................................................... 7,781 559,259
Scientific-Atlanta, Inc. ............................................... 14,000 217,000
Tektronix, Inc. ........................................................ 9,900 443,025
Teledyne, Inc. .* ...................................................... 5,800 209,525
Texas Instruments, Inc. ................................................ 27,628 1,377,947
Thomas & Betts Corp. ................................................... 11,200 420,000
----------
37,077,653
----------
Energy and Utilities - 4.01%
American Electric Power Co., Inc. ...................................... 24,465 1,042,821
Baltimore Gas & Electric Co. ........................................... 24,531 696,067
Carolina Power & Light Co. ............................................. 23,219 882,322
Central & SouthWest Corp. .............................................. 28,184 817,336
CINergy Corp. .......................................................... 21,342 682,944
Coastal Corp. .......................................................... 14,683 613,015
Columbia Gas System, Inc. .............................................. 11,100 578,588
Consolidated Edison Co. of New York, Inc. .............................. 37,328 1,091,844
Consolidated Natural Gas Co. ........................................... 13,336 696,806
Dominion Resources, Inc. ............................................... 28,359 1,134,360
DTE Energy ............................................................. 16,226 500,978
Duke Power Co. ......................................................... 30,009 1,537,961
Edison International ................................................... 65,871 1,160,976
Enron Corp. ............................................................ 34,508 1,410,515
Enserch Corp. .......................................................... 9,700 210,975
Entergy Corp. .......................................................... 29,860 847,278
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FPL Group, Inc. ........................................................ 29,555 1,359,530
General Public Utilities Corp. ......................................... 18,943 667,741
Houston Industries, Inc. ............................................... 33,196 817,452
Niagara Mohawk Power Corp. * ........................................... 24,200 187,550
Nicor, Inc. ............................................................ 5,900 167,413
Noram Energy Inc. ...................................................... 22,600 245,775
Northern States Power Co. .............................................. 10,348 510,933
ONEOK Inc. ............................................................. 7,400 185,000
Ohio Edison Co. ........................................................ 22,903 501,003
PP & L Resources, Inc. ................................................. 17,300 408,712
Pacific Enterprises .................................................... 8,168 241,977
Pacific Gas & Electric Co. ............................................. 58,030 1,349,197
PacifiCorp ............................................................. 37,377 831,638
Panhandle Eastern Corp. ................................................ 23,380 768,617
PECO Energy Co. ........................................................ 26,467 688,142
Peoples Energy Corp. ................................................... 5,800 194,300
Public Service Enterprise Group, Inc. .................................. 32,772 897,133
Sonat, Inc. ............................................................ 14,848 668,160
Southern Co. ........................................................... 90,946 2,239,545
Texas Utilities Co. .................................................... 34,094 1,457,518
Unicom Corp. ........................................................... 25,976 724,081
Union Electric Co. ..................................................... 17,806 716,692
Williams Companies, Inc. ............................................... 14,094 697,653
----------
30,430,548
----------
Energy Raw Materials - 1.37%
Baker Hughes, Inc. ..................................................... 17,057 560,749
Barricks Gold Corp. .................................................... 46,402 1,258,654
Burlington Resources, Inc. ............................................. 16,352 703,136
Dresser Industries, Inc. ............................................... 21,730 641,035
Eastern Enterprises .................................................... 5,200 172,900
Halliburton Co. ........................................................ 16,418 911,199
Helmerich & Payne, Inc. ................................................ 11,300 413,863
Louisiana Land & Exploration Co. ....................................... 3,700 213,213
McDermott International, Inc. .......................................... 12,600 263,025
Nacco Industries, Inc. Class A ......................................... 2,300 127,362
Occidental Petroleum Corp. ............................................. 44,471 1,100,657
Rowan Companies, Inc. * ................................................ 21,600 318,600
Santa Fe Energy Resources, Inc. * ...................................... 25,600 304,000
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Schlumberger Ltd. ...................................................... 33,775 2,845,544
Western Atlas, Inc. * .................................................. 9,654 562,345
----------
10,396,282
----------
Food and Agriculture - 5.95%
Archer Daniels Midland Co. ............................................. 81,929 1,566,892
Campbell Soup Co. ...................................................... 36,967 2,606,174
Coca-Cola Co. .......................................................... 354,396 17,321,105
ConAgra, Inc. .......................................................... 36,219 1,643,437
CPC International, Inc. ................................................ 19,187 1,381,464
Darden Restaurants, Inc. ............................................... 15,167 163,045
Fleming Companies, Inc. ................................................ 19,100 274,562
General Mills, Inc. .................................................... 20,667 1,126,352
Heinz (H.J.) Co. ....................................................... 53,743 1,632,444
Hershey Foods Corp. .................................................... 9,606 704,840
Kellogg Co. ............................................................ 32,737 2,397,985
Pepsico, Inc. .......................................................... 221,360 7,830,610
Pioneer Hi-Bred International, Inc. .................................... 13,526 715,187
Quaker Oats Co. ........................................................ 19,166 654,040
Ralston-Ralston Purina Group ........................................... 13,500 865,688
Sara Lee Corp. ......................................................... 67,055 2,170,906
Sysco Corp. ............................................................ 23,827 816,075
Whitman Corp. .......................................................... 20,500 494,562
Wrigley (Wm.) Jr Co. ................................................... 16,335 824,917
----------
45,190,285
----------
Gold - 0.21%
Homestake Mining Co. ................................................... 20,389 349,162
Placer Dome, Inc. ...................................................... 38,855 927,663
Santa Fe Pacific Gold Corp. ............................................ 24,998 353,097
----------
1,629,922
----------
Insurance - 3.22%
Aetna Life & Casualty Co. .............................................. 15,282 1,092,663
Alexander & Alexander Services, Inc. ................................... 20,200 398,950
Allstate Corp. ......................................................... 65,540 2,990,263
American General Corp. ................................................. 28,763 1,046,254
American International Group, Inc. ..................................... 66,348 6,543,571
AON Corp. .............................................................. 14,000 710,500
</TABLE>
13
<PAGE>
<TABLE>
<S> <C> <C>
Chubb Corp. ............................................................ 24,074 1,200,691
CIGNA Corp. ............................................................ 10,855 1,279,533
General Re Corp. ....................................................... 11,503 1,751,332
ITT Hartford Group, Inc. ............................................... 16,669 887,624
Jefferson-Pilot Corp. .................................................. 8,975 463,334
Lincoln National Corp. ................................................. 15,969 738,566
Marsh & McLennan Companies, Inc. ....................................... 9,432 910,188
Providian Corp. ........................................................ 15,597 668,721
SAFECO Corp. ........................................................... 17,292 611,705
St. Paul Companies ..................................................... 9,800 524,300
Torchmark Corp. ........................................................ 13,095 572,906
Transamerica Corp. ..................................................... 9,465 766,665
UNUM Corp. ............................................................. 8,400 522,900
USF&G Corp. ............................................................ 26,900 440,488
USLife Corp. ........................................................... 8,900 292,588
----------
24,413,742
----------
International Oil - 6.21%
Amoco Corp. ............................................................ 69,318 5,016,890
Chevron Corp. .......................................................... 91,614 5,405,226
Exxon Corp. ............................................................ 178,441 15,502,062
Mobil Corp. ............................................................ 57,276 6,422,072
Royal Dutch Petroleum Co., N.Y. Registry ............................... 76,254 11,724,053
Texaco, Inc. ........................................................... 36,533 3,064,205
----------
47,134,508
----------
Liquor - 0.65%
Anheuser-Busch Companies, Inc. ......................................... 35,161 2,637,075
Brown Forman Corp. Class B ............................................. 7,254 290,160
Coors (Adolph) Co. Class B ............................................. 9,700 173,388
Seagram Co. Ltd. ....................................................... 54,759 1,841,271
----------
4,941,894
----------
Media - 1.74%
Cabletron System, Inc. * ............................................... 9,070 622,429
Comcast Corp. Class A Special .......................................... 28,600 529,100
Donnelley (R.R.) & Sons Co. ............................................ 19,945 695,582
Dow Jones & Co., Inc. .................................................. 14,654 611,804
</TABLE>
14
<PAGE>
<TABLE>
<S> <C> <C>
Gannett Co., Inc. ...................................................... 19,839 1,403,609
King World Productions, Inc. * ......................................... 5,200 189,150
Knight-Ridder, Inc. .................................................... 8,721 632,272
McGraw Hill Companies, Inc. ............................................ 13,764 629,703
Meredith Corp. ......................................................... 5,100 212,925
New York Times Co. Class A ............................................. 19,326 630,511
Tele-Communications, Inc. Class A * .................................... 86,829 1,573,776
Time Warner, Inc. ...................................................... 55,673 2,185,165
Times Mirror Co. Class A ............................................... 15,209 661,591
Tribune Co. ............................................................ 8,657 628,715
Viacom, Inc. Class B Non-Voting * ..................................... 51,034 1,983,947
----------
13,190,279
----------
Miscellaneous and Conglomerates - 1.00%
Corning, Inc. .......................................................... 31,042 1,191,237
Eastman Chemical Co. ................................................... 11,460 697,627
ITT Corp. * ............................................................ 16,469 1,091,071
ITT Industries, Inc. ................................................... 12,269 308,259
Minnesota Mining & Manufacturing Co. ................................... 58,128 4,010,832
Tupperware Corp. * ..................................................... 7,324 309,439
----------
7,608,465
----------
Miscellaneous Finance - 2.71%
Ahmanson (H.F.) & Co. .................................................. 22,333 602,991
American Express Co. ................................................... 68,568 3,059,847
Beneficial Corp. ....................................................... 9,940 557,883
Federal Home Loan Mortgage Corp. ....................................... 25,200 2,154,600
Federal National Mortgage Association .................................. 155,388 5,205,498
Golden West Financial Corp. ............................................ 9,215 516,040
Great Western Financial Corp. .......................................... 20,728 494,881
Greentree Financial Corp. .............................................. 15,800 493,750
Household International, Inc. .......................................... 12,649 961,324
Merrill Lynch & Co., Inc. .............................................. 24,757 1,612,300
Morgan Stanley Group, Inc. ............................................. 24,000 1,179,000
Salomon, Inc. .......................................................... 16,626 731,544
Travelers, Inc. ........................................................ 65,628 2,994,277
----------
20,563,935
----------
</TABLE>
15
<PAGE>
<TABLE>
<S> <C> <C>
Motor Vehicles - 2.25%
Chrysler Corp. ......................................................... 53,514 3,317,868
Cummins Engine Co., Inc. ............................................... 5,600 226,100
Dana Corp. ............................................................. 16,524 512,244
Eaton Corp. ............................................................ 8,634 $ 506,168
Echlin, Inc. ........................................................... 11,869 449,539
Fleetwood Enterprises, Inc. ............................................ 8,700 269,700
Ford Motor Co. ......................................................... 167,328 5,417,244
General Motors Corp. ................................................... 107,570 5,633,979
Genuine Parts Co. ...................................................... 16,819 769,469
-----------
17,102,311
-----------
Non-Durables and Entertainment - 2.22%
American Greetings Corp. Class A ....................................... 7,080 193,815
Bally Entertainment Corp. * ............................................ 13,700 376,750
CUC International, Inc. * .............................................. 23,850 846,675
Harcourt General, Inc. ................................................. 9,876 493,800
Hasbro, Inc. ........................................................... 10,658 381,024
Kimberly-Clark Corp. ................................................... 39,417 3,044,963
Luby's Cafeterias, Inc. ................................................ 8,400 197,400
Mattel, Inc. ........................................................... 39,591 1,133,292
McDonalds Corp. ........................................................ 100,082 4,678,834
Oracle Systems Corp. * ................................................. 91,239 3,598,238
Ryan's Family Steak House * ............................................ 31,900 295,075
Service Corp. International ............................................ 15,686 901,945
Shoneys, Inc. * ........................................................ 33,700 366,487
Wendy's International, Inc. ............................................ 17,490 325,751
-----------
16,834,049
-----------
Non-Ferrous Metals - 0.88%
Alcan Aluminum Ltd. .................................................... 30,807 939,614
Aluminum Co. of America ................................................ 23,644 1,356,574
Asarco, Inc. ........................................................... 5,000 138,125
Cyprus Amax Minerals Co. ............................................... 18,163 410,938
Echo Bay Mines LTD ..................................................... 14,800 159,100
Engelhard Corp. ........................................................ 24,986 574,678
</TABLE>
16
<PAGE>
<TABLE>
<S> <C> <C>
Freeport McMoran Copper Class B ........................................ 33,200 1,058,250
Inco Ltd. .............................................................. 14,174 457,112
Newmont Mining Corp. ................................................... 12,482 616,299
Phelps Dodge Corp. ..................................................... 9,358 583,705
Reynolds Metals Co. .................................................... 7,044 367,168
---------
6,661,563
---------
Optical Photographic Equipment - 0.57%
Eastman Kodak Co. ...................................................... 51,441 $3,999,538
Polaroid Corp. ......................................................... 7,796 355,692
---------
4,355,230
---------
Paper and Forest Products - 1.04%
Bemis, Inc. ............................................................ 5,800 203,000
Boise Cascade Corp. .................................................... 4,800 175,800
Champion International Corp. ........................................... 11,355 474,071
Georgia-Pacific Corp. .................................................. 14,426 1,024,246
International Paper Co. ................................................ 40,970 1,510,769
James River Corp. of Virginia .......................................... 13,338 351,790
Louisiana Pacific Corp. ................................................ 10,925 241,716
Mead Corp. ............................................................. 10,888 564,815
Potlatch Corp. ......................................................... 5,800 226,925
Temple-Inland, Inc. .................................................... 10,725 501,394
Union Camp Corp. ....................................................... 9,171 447,086
Westvaco Corp. ......................................................... 16,541 494,162
Weyerhaeuser Co. ....................................................... 26,766 1,137,555
Willamette Industries, Inc. ............................................ 9,700 577,150
---------
7,930,479
---------
Producer Goods - 5.45%
Alco Standard Corp. .................................................... 16,166 731,511
Allied Signal, Inc. .................................................... 39,148 2,236,330
Applied Materials Co.*.................................................. 24,780 755,790
Avery Dennison Corp. ................................................... 5,770 316,629
Briggs & Stratton Corp. ................................................ 4,000 164,500
Case Corp. ............................................................. 8,700 417,600
Caterpillar, Inc. ...................................................... 27,380 1,854,995
Cincinnati Milacron, Inc. .............................................. 17,600 422,400
</TABLE>
17
<PAGE>
<TABLE>
<S> <C> <C>
Cooper Industries, Inc. ................................................ 17,359 720,399
Deere & Co. ............................................................ 36,323 1,452,920
Dover Corp. ............................................................ 16,762 773,147
Emerson Electric Co. ................................................... 31,442 2,841,571
FMC Corp. * ............................................................ 5,203 339,496
Foster Wheeler Corp. ................................................... 4,400 197,450
General Electric Co. ................................................... 237,542 20,547,383
Giddings & Lewis, Inc. ................................................. 9,200 149,500
Grainger (W.W.), Inc. .................................................. 6,712 520,180
Harnischfeger Industries, Inc. ......................................... 4,600 152,950
Illinois Tool Works, Inc. .............................................. 15,358 1,038,585
Ingersoll-Rand Co. ..................................................... 14,462 632,712
Millipore Corp. ........................................................ 5,500 230,312
Navistar International * ............................................... 18,600 183,675
Parker-Hannifin Corp. .................................................. 12,015 509,136
Snap-On, Inc. .......................................................... 6,000 284,250
Tenneco, Inc. .......................................................... 22,442 1,147,347
Timken Co. ............................................................. 10,500 406,875
Trinova Corp. .......................................................... 4,600 153,525
Tyco International Ltd. ................................................ 20,788 847,111
Varity Corp. * ......................................................... 7,100 341,688
Westinghouse Electric Corp. ............................................ 54,070 1,013,812
----------
41,383,779
----------
Railroads and Shipping - 0.98%
Burlington Northern Santa Fe ........................................... 20,825 1,684,222
Conrail, Inc. .......................................................... 10,666 707,956
CSX Corp. .............................................................. 32,140 1,550,755
Norfolk Southern Corp. ................................................. 18,576 1,574,316
Union Pacific Corp. .................................................... 27,367 1,912,269
----------
7,429,518
----------
Retail - 4.76%
Albertsons, Inc. ....................................................... 33,769 1,397,192
American Stores Co. .................................................... 22,564 930,765
Charming Shoppes, Inc. ................................................. 38,600 272,613
Circuit City Stores, Inc. .............................................. 10,964 396,075
Dayton Hudson Corp. .................................................... 9,944 1,025,475
</TABLE>
18
<PAGE>
<TABLE>
<S> <C> <C>
Dillard Department Stores Class A ...................................... 15,130 552,245
Federated Department Stores, Inc. * .................................... 28,200 962,325
Gap, Inc. .............................................................. 38,912 1,250,048
Giant Food, Inc. Class A ............................................... 5,800 208,075
Great Atlantic & Pacific Tea Co., Inc. ................................. 8,000 263,000
Home Depot, Inc. ....................................................... 66,565 3,594,510
Kmart Corp. * .......................................................... 82,488 1,020,789
Kroger Co. * ........................................................... 19,345 764,128
Limited, Inc. .......................................................... 42,388 911,342
Longs Drug Stores Corp. ................................................ 4,400 196,350
Lowes Companies, Inc. .................................................. 20,584 743,597
May Department Stores Co. .............................................. 34,970 1,529,937
Melville Corp. ......................................................... 18,812 761,886
Mercantile Stores, Inc. ................................................ 3,900 228,637
Nordstrom, Inc. ........................................................ 10,393 462,488
J.C. Penney & Co., Inc. ................................................ 29,788 1,563,870
Pep Boys Manny Moe & Jack .............................................. 7,700 261,800
Price/Costco, Inc. * ................................................... 35,313 763,644
Rite-Aid Corp. ......................................................... 8,156 242,641
Sears, Roebuck & Co. ................................................... 58,209 2,830,413
Supervalu, Inc. ........................................................ 6,231 196,276
Tandy Corp. ............................................................ 9,138 432,913
TJX Companies, Inc. .................................................... 11,900 401,625
Toys R Us * ............................................................ 39,667 1,130,509
Wal Mart Stores, Inc. .................................................. 323,295 8,203,611
Walgreen Co. ........................................................... 34,086 1,141,881
Winn-Dixie Stores, Inc. ................................................ 25,374 897,605
Woolworth Corp. * ...................................................... 25,664 577,440
----------
36,115,705
----------
Soaps and Cosmetics - 2.66%
Alberto-Culver Co. Class B ............................................. 6,400 296,800
Avon Products, Inc. .................................................... 17,180 775,248
Clorox Co. ............................................................. 6,547 580,228
Colgate-Palmolive Co. .................................................. 22,827 1,934,588
Gillette Co. ........................................................... 62,618 3,905,798
International Flavors & Fragrances, Inc. ............................... 14,843 706,898
</TABLE>
19
<PAGE>
<TABLE>
<S> <C> <C>
Procter & Gamble Co. ................................................... 96,687 8,762,259
Unilever N.V ........................................................... 22,114 3,209,294
----------
20,171,113
----------
Steel - 0.23%
Armco, Inc. * .......................................................... 35,700 178,500
Bethlehem Steel Corp. * ................................................ 23,638 280,701
Inland Steel Industries, Inc. .......................................... 10,372 203,551
Nucor Corp. ............................................................ 11,359 575,049
USX-U.S. Steel Group ................................................... 7,828 222,120
Worthington Industries, Inc. ........................................... 12,685 264,799
----------
1,724,720
----------
Telephone - 7.48%
AT & T Corp. ........................................................... 228,200 14,148,400
AirTouch Communications, Inc. * ........................................ 71,210 2,011,683
ALLTEL Corp. ........................................................... 24,305 747,379
Ameritech Corp. ........................................................ 79,912 4,744,775
Bell Atlantic Corp. .................................................... 60,490 3,856,237
Bellsouth Corp. ........................................................ 141,150 5,981,231
GTE Corp. .............................................................. 138,773 6,210,092
MCI Communications Corp. ............................................... 94,259 2,415,387
NYNEX Corp. ............................................................ 64,110 $3,045,225
Pacific Telesis Group .................................................. 61,110 2,062,462
SBC Communications Inc. ................................................ 90,176 4,441,168
Sprint Corp. ........................................................... 62,165 2,610,930
Tellabs, Inc. .......................................................... 13,948 932,772
U S WEST Communications Group * ........................................ 65,331 2,082,426
Worldcom, Inc. * ....................................................... 27,600 1,528,350
----------
56,818,517
----------
Tires and Rubber Goods - 0.18%
Cooper Tire & Rubber Co. ............................................... 17,642 392,534
Goodyear Tire & Rubber Co. ............................................. 19,742 952,552
----------
1,345,086
----------
Tobacco - 2.07%
American Brands, Inc. .................................................. 24,902 1,129,928
Loews Corp. ............................................................ 19,020 1,500,202
</TABLE>
20
<PAGE>
<TABLE>
<S> <C> <C>
Philip Morris Companies, Inc. .......................................... 117,323 12,201,592
UST, Inc. .............................................................. 25,615 877,314
------------
15,709,036
------------
Travel and Recreation - 1.12%
Brunswick Corp. ........................................................ 9,813 196,260
Disney (Walt) Co. ...................................................... 98,487 6,192,370
Harrahs Entertainment, Inc. * .......................................... 18,450 521,212
Hilton Hotels Corp. .................................................... 6,583 740,588
Marriott International, Inc. ........................................... 16,137 867,364
------------
8,517,794
------------
Trucking and Freight - 0.13%
Caliber System, Inc. ................................................... 3,773 128,282
Consolidated Freightways, Inc. ......................................... 6,200 130,975
PACCAR, Inc. ........................................................... 4,292 210,308
Ryder System, Inc. ..................................................... 10,999 309,347
Yellow Corp. ........................................................... 17,000 225,250
------------
1,004,162
------------
TOTAL COMMON STOCKS ................................................................ 723,886,120
(Cost $ 543,527,830) ------------
TOTAL INVESTMENTS .................................................................. $759,315,146
(Cost $578,956,856) ============
<FN>
* Non-income producing security
</TABLE>
21
<PAGE>
THE WOODWARD FUNDS
EQUITY INDEX FUND
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(1) Organization and Commencement of Operations
The Woodward Funds (Woodward) was organized as a Massachusetts business
trust on April 21, 1987, and registered under the Investment Company Act of
1940, as amended, as an open-end investment company. As of June 30, 1996,
Woodward consisted of seventeen separate series. The Woodward Equity Index
Fund (Equity Index Fund) commenced operations on July 10, 1992.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies followed
by the Equity Index Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies. Following generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Investments
The Equity Index Fund values investment securities at market value which
is determined by a pricing service based upon quoted market prices or dealer
quotes. Securities for which market prices or dealer quotes are not readily
available are valued by the investment advisor, NBD Bank (NBD) in accordance
with procedures approved by the Board of Trustees.
Investment security purchases and sales are accounted for on the day
after trade date.
Woodward invests in securities subject to repurchase agreements. Such
transactions are entered into only with institutions included on the Federal
Reserve System's list of institutions with whom the Federal Reserve open
market desk will do business. NBD, acting under the supervision of the Board
of Trustees, has established the following additional policies and procedures
relating to Woodward's investments in securities subject to repurchase
agreements: 1) the value of the underlying collateral is required to equal or
exceed 102% of the funds advanced under the repurchase agreement including
accrued interest; 2) collateral is marked to market daily by NBD to assure its
value remains at least equal to 102% of the repurchase agreement amount; and
3) funds are not disbursed by Woodward or its agent unless collateral is
presented or acknowledged by the collateral custodian.
Investment Income
Interest income is recorded daily on the accrual basis adjusted for
amortization of premium and accretion of discount on debt instruments.
Dividends are recorded on the ex-dividend date.
22
<PAGE>
Federal Income Taxes
It is Woodward's policy to comply with the requirements of Subchapter M
of the Internal Revenue Code, as amended, applicable to regulated investment
companies and to distribute net investment income and realized gains to its
shareholders. Therefore, no federal income tax provision is required in the
accompanying financial statements.
Net realized gains differ for financial statement and tax purposes
primarily because of the recognition of wash sale transactions and
post-October 31 capital losses. Also, due to the timing of dividend
distributions, the fiscal year in which amounts are distributed may differ
from the year that the income or realized gains were recorded by the Fund.
Certain book-to-tax timing differences for the funds are reflected as excess
distributions in the Statements of Changes in Net Assets. These distributions
do not constitute a tax return of capital.
Shareholder Dividends
Dividends from net investment income are declared and paid quarterly by
the Equity Index Fund. Net realized capital gains are distributed annually.
Distributions from net investment income and net realized gains are made
during each year to avoid the 4% excise tax imposed on regulated investment
companies by the Internal Revenue Code.
Deferred Organization Costs
Organization costs are being amortized on a straight-line basis over the
five year period beginning with the commencement of operations of the Equity
Index Fund.
Expenses
Expenses are charged daily as a percentage of the Fund's net assets.
Woodward monitors the rate at which expenses are charged to ensure that a
proper amount of expense is charged to income each year. This percentage is
subject to revision if there is a change in the estimate of the future net
assets of Woodward or a change in expectations as to the level of actual
expenses.
(3) Transactions with Affiliates
First of Michigan Corporation (FoM) and Essex National Securities, Inc.
(Essex) act as sponsors and co-distributors of Woodward's shares. Pursuant to
their Distribution Agreement with Woodward, FoM is entitled to receive a fee
at the annual rate of .005% of the Equity Index Fund's average net assets and
Essex is entitled to receive a fee at the annual rate of .10% of the aggregate
average net assets of Woodward's investment portfolios attributable to
investments by clients of Essex.
23
<PAGE>
NBD is the investment advisor pursuant to the Advisory Agreement. For
its advisory services to Woodward, NBD is entitled to a fee, computed daily
and payable monthly. Under the Advisory Agreement, NBD also provides Woodward
with certain administrative services, such as maintaining Woodward's general
ledger and assisting in the preparation of various regulatory reports. NBD
receives no additional compensation for such services.
NBD, FoM, and Essex have agreed that they may waive their fees in whole
or in part; and, if in part, may specify the particular fund to which such
waiver relates as may be required to satisfy any expense limitation imposed by
state securities laws or other applicable laws. At present, no restrictive
expense limitation is imposed on Woodward. Restrictive limitations could be
imposed as a result of changes in current state laws and regulations in those
states where Woodward has qualified its shares, or by a decision of the
Trustees to qualify the shares in other states having restrictive expense
limitations.
NBD is also compensated for its services as Woodward's Custodian,
Transfer Agent and Dividend Disbursing Agent, and is reimbursed for certain
out of pocket expenses incurred on behalf of Woodward.
On March 10, 1994, Woodward adopted The Woodward Funds Deferred
Compensation Plan (the "Plan"), an unfunded, nonqualified deferred
compensation plan. The Plan allows an individual Trustee to elect to defer
receipt of all or a percentage of fees which otherwise would be payable for
services performed.
See Note 5 for a summary of fee rates and expenses pursuant to these
agreements.
24
<PAGE>
(4) Investment Securities Transactions
Information with respect to investment securities and security
transactions, excluding short-term securities, is as follows:
<TABLE>
<CAPTION>
<S> <C>
Gross Unrealized Gains ... $ 190,996,244
Gross Unrealized Losses .. $ (10,637,954)
-------------
$ 180,358,290
=============
Federal Income Tax Cost .. $ 581,958,015
Purchases ................ $ 167,659,655
Sales .................... $ 24,048,219
</TABLE>
(5) Expenses
Following is a summary of total expense rates charged, advisory fee
rates payable to NBD, and amounts paid to NBD, FoM, and Essex pursuant to the
agreements described in Note 3 for the period ended June 30, 1996. The rates
shown are stated as a percentage of each fund's average net assets.
<TABLE>
<CAPTION>
Effective Date
--------------
<S> <C>
Expense Rates:
January 1 ...................... 0.16%
NBD Advisory Fee:
January 1 ...................... 0.10%
Amounts Paid:
Advisory Fee to NBD ............. $317,984
Distribution Fees to FoM & Essex $ 16,727
Other Fees & Out of Pocket
Expenses to NBD .............. $ 70,184
25
<PAGE>
THE WOODWARD FUNDS
EQUITY INDEX FUND
FINANCIAL HIGHLIGHTS
The Financial Highlights presents a per share analysis of how the Equity Index
Fund's net asset value has changed during the periods presented. Additional
quantitative measures expressed in ratio form analyze important relationships
between certain items presented in the financial statements. These financial
highlights have been derived from the financial statements of the Equity Index
Fund and other information for the periods presented.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1996 Year ended Year ended Year ended Period ended
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993 Dec. 31, 1992
----------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period .................. $ 14.15 $ 10.65 $ 11.15 $ 10.52 $ 10.00
Income from investment
operations:
Net investment income . 0.16 0.30 0.31 0.28 0.12
Net realized and
unrealized
gains (losses)
on investments .... 1.25 3.65 (0.20) 0.75 0.52
------------ ------------ ------------ ------------ ---------------
Total from investment
operations .............. 1.41 3.95 0.11 1.03 0.64
------------ ------------ ------------ ------------ ---------------
Less distributions:
From net investment
income .............. (0.16) (0.31) (0.30) (0.27) (0.12)
From realized gains.... -- (0.14) (0.23) (0.13) --
In excess of
realized gains ...... -- (0.00) (0.08) -- --
------------ ------------ ------------ ------------ ---------------
Total distributions ....... (0.16) (0.45) (0.61) (0.40) (0.12)
------------ ------------ ------------ ------------ ---------------
Net asset value, end of
period .................. $ 15.40 $ 14.15 $ 10.65 $ 11.15 $ 10.52
============ ============ ============ ============ ===============
Total Return .............. 20.04%(a) 37.35% 1.02% 9.77% 13.61%(a)
Ratios/Supplemental
Data
Net assets, end of period . $721,253,437 $528,202,913 $340,808,050 $325,328,903 $ 242,057,866
Ratio of expenses
to average net
assets .................. 0.16%(a) 0.15% 0.17% 0.20% 0.22%(a)
Ratio of net investment
income to
average net assets ...... 2.20%(a) 2.39% 2.71% 2.59% 2.71%(a)
Portfolio turnover rate ... 3.81% 10.66% 24.15% 16.01% 0.50%
Average commission rate ... $ 0.03 $ 0.03
<FN>
(a) Annualized for periods less than one year for comparability purposes.
Actual annual values may be less than or greater than those shown.
</TABLE>
26
<PAGE>
RESULTS OF SPECIAL SHAREHOLDER MEETING (Unaudited)
On July 10,1996, a special meeting of the shareholders of The Woodward
Equity Index Fund was held to approve the following proposals.
The shareholders approved these proposals with respect to The Woodward
Equity Index Fund as follows:
1. To approve a new investment advisory agreement ("New Advisory Agreement")
between each Trust, NBD Bank ("NBD") and First Chicago Investment
Management Company ("FCIMCO")
Affirmative 34,417,695
Against 63,069
Abstain 14,393
2. To approve a change to the fundamental investment limitations of
each Fund of the Trust with regard to the following:
a) investment in commodities
Affirmative 33,503,852
Against 126,796
Abstain 864,509
b) expanded power to borrow
Affirmative 33,487,142
Against 144,746
Abstain 863,269
c) issuing senior securities
Affirmative 33,495,858
Against 111,208
Abstain 888,091
3. To approve a change to the fundamental investment policies and
limitations of certain Funds of the Trusts, as follows:
c) to approve a change to the fundamental investment limitation
concerning concentration of investments in a particular industry
with respect to the Funds
Affirmative 34,319,473
Against 133,179
Abstain 42,506
4. To approve a change of the following fundamental policies and
limitations to non-fundamental policies and limitations:
b) limitation on investment in other investment companies
Affirmative 34,341,054
Against 110,609
Abstain 43,495
c) limitation on illiquid securities
<PAGE>
Affirmative 34,331,152
Against 120,339
Abstain 43,666
d) limitation on purchasing securities on margin
Affirmative 34,381,212
Against 72,095
Abstain 41,850
e) limitation on purchasing securities of companies for the
purpose of exercising control
Affirmative 33,586,096
Against 866,282
Abstain 42,779
f) limitation on writing or selling put options, call options,
straddles, spreads, or any combinations thereof
Affirmative 34,340,309
Against 111,924
Abstain 42,924
6. To ratify the appointment of two Trustees to the Board of Trustees
of each Trust.
Elected Trustees Current Trustees
Ms. Marilyn McCoy Mr.Will M. Caldwell Mr. Donald B. Sutherland
Mr. John P. Gould Dr. Nicholas J.DeGrazia Mr. Donald L. Tuttle
Mr. Julius L. Pallone
Affirmative 34,547,392
Against 24,423
Abstain 15,656
7. To approve amendments to the Amended and Restated Declaration of
Trust of The Woodward Funds.
Affirmative 34,412,698
Against 66,044
Abstain 16,414
8. To transact such other business as may properly come before the
Meetings or any adjournment thereof.
Affirmative 34,530,401
Against 33,164
Abstain 23,906
<PAGE>
[ BACK COVER ]
Investment Adviser:
NBD Bank
Detroit, Michigan 48226
Sponsors and Co-Distributors:
First of Michigan Corporation
Detroit, Michigan 48243
Essex National Securities, Inc.
Napa, California 94558
Custodian and Transfer Agent:
NBD Bank
Troy, Michigan 48007-7058
Legal Counsel:
Drinker Biddle & Reath
Philadelphia, Pennsylvania 19107-3496 [ WOODWARD FUNDS LOGO ]
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The Woodward Funds ------------
P.O. Box 7058 BULK RATE
Troy, MI 48007-7058 U.S. POSTAGE
PAID
Detroit, MI
Permit No. 2
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