[ FRONT COVER ]
[ WOODWARD FUNDS LOGO ART AND LOGOTYPE ]
-----------------
Semi-Annual Report
June 30, 1996
-----------------
Woodward Growth/Value Fund
Woodward Opportunity Fund
Woodward Intrinsic Value Fund
Woodward Capital Growth Fund
Woodward Balanced Fund
Investment Adviser
[ NBD BANK LOGOTYPE ]
24 Hour yield information:
Purchase and Redemption orders:
(800) 688-3350
<PAGE>
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
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
GROWTH/VALUE OPPORTUNITY
FUND FUND
------------ -----------
<S> <C> <C>
ASSETS:
Investment in securities:
At cost ................................................... $ 580,482,038 $ 563,241,479
============= =============
At value (Note 2) ......................................... $ 728,723,075 $ 702,287,236
Cash ........................................................... 21,693,251 5,107,637
Receivable for shares purchased ................................ 9,500 --
Receivable for securities sold ................................. 17,336,908 857,678
Income receivable .............................................. 1,168,760 669,256
Deferred organization costs, net (Note 2) ...................... -- --
Prepaids and other assets ...................................... 1,439 1,329
------------- -------------
TOTAL ASSETS ......................................... 768,932,933 708,923,136
------------- -------------
LIABILITIES:
Payable for securities purchased ............................... -- 1,172,608
Accrued investment advisory fee ................................ 472,901 437,285
Accrued distribution fees ...................................... 6,847 7,992
Accrued custodial fee .......................................... 9,542 8,332
Other payables and accrued expenses ............................ 76,635 235,907
------------- -------------
TOTAL LIABILITIES .................................... 565,925 1,862,124
------------- -------------
NET ASSETS ........................................... $ 768,367,008 $ 707,061,012
============= =============
Net assets consist of:
Capital shares (unlimited number of shares authorized, par value
$.10 per share) .............................................. $ 5,405,639 $ 4,219,774
Additional paid-in capital ..................................... 559,042,435 534,422,593
Accumulated undistributed net investment income ................ 261,863 (16,512)
Accumulated undistributed net realized gains ................... 55,416,034 29,389,400
Net unrealized appreciation on investments ..................... 148,241,037 139,045,757
------------- -------------
TOTAL NET ASSETS ..................................... $ 768,367,008 $ 707,061,012
============= =============
Shares of capital stock outstanding ............................ 54,056,392 42,197,740
============= =============
Net asset value and redemption price per share ................. $ 14.21 $ 16.76
============= =============
Maximum offering price per share ............................... $ 14.96 $ 17.64
============= =============
<FN>
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
June 30, 1996
(Unaudited)
INTRINSIC VALUE CAPITAL GROWTH BALANCED
FUND FUND FUND
--------------- -------------- --------
<S> <C> <C> <C>
ASSETS:
Investment in securities:
At cost ................................................... $256,529,181 $188,104,228 $ 100,692,794
============ ============ =============
At value (Note 2) ......................................... $296,910,797 $233,044,215 $ 109,350,305
Cash ........................................................... 1,256,182 2,361,073 974,120
Receivable for shares purchased ................................ -- -- --
Receivable for securities sold ................................. 848,661 382,228 77,915
Income receivable .............................................. 906,790 225,519 581,962
Deferred organization costs, net (Note 2) ...................... -- 24,332 23,598
Prepaids and other assets ...................................... 519 2,507 60,159
------------ ------------ -------------
TOTAL ASSETS ......................................... 299,922,949 236,039,874 111,068,059
------------ ------------ -------------
LIABILITIES:
Payable for securities purchased ............................... 3,801,772 2,270,074 1,132,382
Accrued investment advisory fee ................................ 180,122 144,499 67,316
Accrued distribution fees ...................................... 2,512 1,336 1,223
Accrued custodial fee .......................................... 4,346 3,521 10,313
Dividends payable .............................................. 343,488 62,966 124,943
Other payables and accrued expenses ............................ 116,908 2,874 3,135
------------ ------------ -------------
TOTAL LIABILITIES .................................... 4,105,660 2,422,304 1,214,369
------------ ------------ -------------
NET ASSETS ........................................... $295,817,289 $233,617,570 $ 109,853,690
============ ============ =============
Net assets consist of:
Capital shares (unlimited number of shares authorized, par value
$.10 per share) .............................................. $ 2,276,377 $ 1,639,006 $ 956,443
Additional paid-in capital ..................................... 240,350,418 183,946,388 97,018,013
Accumulated undistributed net investment income ................ 81,074 7,307 (490,797)
Accumulated undistributed net realized gains ................... 12,727,804 3,084,882 3,712,520
Net unrealized appreciation on investments ..................... 40,381,616 44,939,987 8,657,511
------------ ------------ -------------
TOTAL NET ASSETS ..................................... $295,817,289 $233,617,570 $ 109,853,690
============ ============ =============
Shares of capital stock outstanding ............................ 22,763,773 16,390,057 9,564,434
============ ============ =============
Net asset value and redemption price per share ................. $ 13.00 $ 14.25 $ 11.48
============ ============ =============
Maximum offering price per share ............................... $ 13.68 $ 15.00 $ 12.09
============ ============ =============
<FN>
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1996
(Unaudited)
GROWTH/VALUE OPPORTUNITY
FUND FUND
------------- -----------
<S> <C> <C>
INVESTMENT INCOME (Note 2)
Interest ........................................... $ 410,422 $ 596,624
Dividends .......................................... 7,311,431 3,021,692
----------- -----------
TOTAL INVESTMENT INCOME ........................ 7,721,853 3,618,316
----------- -----------
EXPENSES (Notes 2, 3 and 5):
Investment advisory fee ............................ 2,822,334 2,540,002
Distribution fees .................................. 41,309 47,710
Professional fees .................................. 12,518 15,256
Custodial fee ...................................... 53,137 52,181
Transfer and dividend disbursing agent fees ........ 33,974 59,733
Amortization of deferred organization costs ........ 7,429 3,243
Marketing expenses ................................. 18,485 21,248
Registration, filing fees and other expenses ....... 44,364 51,561
Less:
Expense reimbursement .......................... -- --
----------- -----------
NET EXPENSES .................................. 3,033,550 2,790,934
----------- -----------
NET INVESTMENT INCOME .................................. 4,688,303 827,382
----------- -----------
REALIZED AND UNREALIZED GAINS ON
INVESTMENTS:
Net realized gains ................................. 49,090,116 27,655,671
Net change in unrealized appreciation (depreciation)
on investments ................................... 8,281,141 40,200,406
----------- -----------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS ............................. 57,371,257 67,856,077
----------- -----------
NET INCREASE IN NET ASSETS
FROM OPERATIONS ................................... $62,059,560 $68,683,459
=========== ===========
<FN>
See accompanying notes to financial statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF OPERATIONS (Continued)
For the Six Months Ended June 30, 1996
(Unaudited)
INTRINSIC VALUE CAPITAL GROWTH BALANCED
FUND FUND FUND
--------------- -------------- --------
<S> <C> <C> <C>
INVESTMENT INCOME (Note 2)
Interest ........................................... $ 1,159,402 $ 155,673 $ 1,673,345
Dividends .......................................... 3,321,841 1,240,114 496,026
----------- ----------- -----------
TOTAL INVESTMENT INCOME ........................ 4,481,243 1,395,787 2,169,371
----------- ----------- -----------
EXPENSES (Notes 2, 3 and 5):
Investment advisory fee ............................ 1,008,003 817,701 390,877
Distribution fees .................................. 14,661 7,692 7,342
Professional fees .................................. 15,256 15,256 15,256
Custodial fee ...................................... 24,278 18,622 49,502
Transfer and dividend disbursing agent fees ........ 15,007 7,833 8,246
Amortization of deferred organization costs ........ 2,323 4,055 4,717
Marketing expenses ................................. 15,780 14,279 13,918
Registration, filing fees and other expenses ....... 55,038 67,785 18,496
Less:
Expense reimbursement .......................... -- -- (18,406)
----------- ----------- -----------
NET EXPENSES .................................. 1,150,346 953,223 489,948
----------- ----------- -----------
NET INVESTMENT INCOME .................................. 3,330,897 442,564 1,679,423
----------- ----------- -----------
REALIZED AND UNREALIZED GAINS ON
INVESTMENTS:
Net realized gains ................................. 10,320,264 2,532,203 3,447,803
Net change in unrealized appreciation (depreciation)
on investments ................................... 13,578,178 12,491,742 (818,005)
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS ............................. 23,898,442 15,023,945 2,629,798
----------- ----------- -----------
NET INCREASE IN NET ASSETS
FROM OPERATIONS ................................... $27,229,339 $15,466,509 $ 4,309,221
=========== =========== ===========
<FN>
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
GROWTH/VALUE OPPORTUNITY
FUND FUND
------------------------------- --------------------------------
Six Months Six Months
Ended Ended
June 30, 1996 Year Ended June 30, 1996 Year Ended
(Unaudited) Dec. 31, 1995 (Unaudited) Dec. 31, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ............... $ 4,688,303 $ 11,355,754 $ 827,382 $ 2,185,244
Net realized gains .................. 49,090,116 21,032,338 27,655,671 33,998,949
Net change in unrealized appreciation
(depreciation) on investments ...... 8,281,141 130,722,828 40,200,406 70,828,164
------------- ------------- ------------- -------------
Net increase in net assets
from operations ................... 62,059,560 163,110,920 68,683,459 107,012,357
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (Note 2):
From net investment income .......... (4,467,118) (11,928,616) (844,871) (2,383,890)
From realized gains ................. -- (14,216,458) -- (31,302,346)
------------- ------------- ------------- -------------
Total distributions ................. (4,467,118) (26,145,074) (844,871) (33,686,236)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ........... 60,710,921 129,170,938 65,351,320 138,422,625
Net asset value of shares
issued in reinvestment of
distributions to shareholders ..... 3,241,492 22,736,385 660,200 32,652,833
------------- ------------- ------------- -------------
63,952,413 151,907,323 66,011,520 171,075,458
Less: payments for shares redeemed .. (90,344,914) (123,076,813) (77,741,364) (118,448,431)
------------- ------------- ------------- -------------
Net increase (decrease) in
net assets from capital share
transactions ...................... (26,392,501) 28,830,510 (11,729,844) 52,627,027
------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS ............ 31,199,941 165,796,356 56,108,744 125,953,148
NET ASSETS:
Beginning of period ................. 737,167,067 571,370,711 650,952,268 524,999,120
------------- ------------- ------------- -------------
End of period ....................... $ 768,367,008 $ 737,167,067 $ 707,061,012 $ 650,952,268
============= ============= ============= =============
CAPITAL SHARE TRANSACTIONS:
Shares sold ........................... 4,425,684 10,922,667 4,077,492 9,374,983
Shares issued in reinvestment
of distributions to shareholders .... 231,584 1,788,703 40,008 2,199,921
------------- ------------- ------------- -------------
4,657,268 12,711,370 4,117,500 11,574,904
Less: shares redeemed ................. (6,597,525) (10,251,504) (4,879,943) (7,969,587)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING ......................... (1,940,257) 2,459,866 (762,443) 3,605,317
CAPITAL SHARES:
Beginning of period ................. 55,996,649 53,536,783 42,960,183 39,354,866
------------- ------------- ------------- -------------
End of period ....................... 54,056,392 55,996,649 42,197,740 42,960,183
============= ============= ============= =============
<FN>
See accompanying notes to financial statements.
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
INTRINSIC VALUE CAPITAL GROWTH BALANCED
FUND FUND FUND
----------------------------- ----------------------------- -----------------------------
Six Months Six Months Six Months
Ended Ended Ended
June 30, 1996 Year Ended June 30, 1996 Year Ended June 30, 1996 Year Ended
(Unaudited) Dec. 31, 1995 (Unaudited) Dec. 31, 1995 (Unaudited) Dec. 31, 1995
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ......... $ 3,330,897 $ 6,011,616 $ 442,564 $ 906,758 $ 1,679,423 $ 2,515,594
Net realized gains ............ 10,320,264 18,391,186 2,532,203 2,343,100 3,447,803 1,548,275
Net change in unrealized
appreciation (depreciation)
on investments .............. 13,578,178 28,180,120 12,491,742 30,092,839 (818,005) 11,071,176
------------- ------------- ------------- ------------- ------------- ------------
Net increase in net assets
from operations ............. 27,229,339 52,582,922 15,466,509 33,342,697 4,309,221 15,135,045
------------- ------------- ------------- ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(Note 2):
From net investment income .... (3,360,072) (6,247,197) (446,558) (933,730) (2,199,157) (2,524,322)
From realized gains ........... -- (16,471,970) -- (1,616,085) -- (987,934)
------------- ------------- ------------- ------------- ------------- ------------
Total distributions ........... (3,360,072) (22,719,167) (446,558) (2,549,815) (2,199,157) (3,512,256)
------------- ------------- ------------- ------------- ------------- ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ..... 39,949,138 39,975,498 42,509,951 116,265,186 27,750,960 47,232,261
Net asset value of shares
issued in reinvestment of
distributions to shareholders 2,607,303 21,049,306 320,297 2,306,069 2,022,269 3,343,276
------------- ------------- ------------- ------------- ------------- ------------
42,556,441 61,024,804 42,830,248 118,571,255 29,773,229 50,575,537
Less: payments for shares
redeemed .................... (26,493,278) (55,031,796) (20,093,807) (34,772,563) (15,653,404) (22,741,717)
------------- ------------- ------------- ------------- ------------- ------------
Net increase (decrease)
in net assets from
capital share transactions .. 16,063,163 5,993,008 22,736,441 83,798,692 14,119,825 27,833,820
------------- ------------- ------------- ------------- ------------- ------------
NET INCREASE IN NET ASSETS ...... 39,932,430 35,856,763 37,756,392 114,591,574 16,229,889 39,456,609
NET ASSETS:
Beginning of period ........... 255,884,859 220,028,096 195,861,178 81,269,604 93,623,801 54,167,192
------------- ------------- ------------- ------------- ------------- ------------
End of period ................. $ 295,817,289 $ 255,884,859 $ 233,617,570 $ 195,861,178 $ 109,853,690 $ 93,623,801
============= ============= ============= ============= ============= ============
CAPITAL SHARE TRANSACTIONS:
Shares sold ..................... 3,166,068 3,432,079 3,038,138 9,733,178 2,431,133 4,495,916
Shares issued in reinvestment
of distributions to
shareholders .................. 205,504 1,777,948 22,601 177,953 176,485 306,837
------------- ------------- ------------- ------------- ------------- ------------
3,371,572 5,210,027 3,060,739 9,911,131 2,607,618 4,802,753
Less: shares redeemed ........... (2,133,166) (4,687,782) (1,436,519) (2,927,524) (1,371,866) (2,160,736)
------------- ------------- ------------- ------------- ------------- ------------
NET INCREASE (DECREASE)
IN SHARES OUTSTANDING ......... 1,238,406 522,245 1,624,220 6,983,607 1,235,752 2,642,017
CAPITAL SHARES:
Beginning of period ........... 21,525,367 21,003,122 14,765,837 7,782,230 8,328,682 5,686,665
------------- ------------- ------------- ------------- ------------- ------------
End of period ................. 22,763,773 21,525,367 16,390,057 14,765,837 9,564,434 8,328,682
============= ============= ============= ============= ============= ============
<FN>
See accompanying notes to financial statements.
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
GROWTH/VALUE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Shares Market Value
----------- ------ ------------
<S> <C> <C>
COMMON STOCKS - 100.00%
Aerospace - 2.58%
Boeing Co. ................................................................ 216,000 $18,819,000
-----------
Apparel - 2.06%
Russell Corp. ............................................................. 543,000 15,000,375
Banks - 6.41%
Barnett Banks, Inc. ....................................................... 246,000 15,006,000
Fleet Financial Group, Inc. ............................................... 474,000 20,619,000
Norwest Corp. ............................................................. 317,000 11,055,375
-----------
46,680,375
-----------
Business Machines - 1.31%
Autodesk, Inc. ............................................................ 240,900 7,196,888
Compaq Computer Corp.* .................................................... 137,000 6,747,250
-----------
13,944,138
-----------
Business Services - 10.45%
Deluxe Corp. .............................................................. 440,000 15,620,000
Dun & Bradstreet Corp. .................................................... 276,000 17,250,000
Electronic Data Systems Corp. ............................................. 393,000 21,123,750
Interpublic Group of Companies, Inc. ...................................... 152,000 7,125,000
WMX Technologies, Inc. .................................................... 458,000 14,999,500
-----------
76,118,250
-----------
Chemicals - 5.41%
Dow Chemical Co. .......................................................... 120,000 9,120,000
Great Lakes Chemical Corp. ................................................ 192,000 11,952,000
Sigma-Aldrich Corp. ....................................................... 343,000 18,350,500
-----------
39,422,500
-----------
Construction - 5.23%
Masco Corp. ............................................................... 474,000 14,338,500
York International Corp. .................................................. 459,000 23,753,250
-----------
38,091,750
-----------
Consumer Durables - 2.31%
Rubbermaid, Inc. .......................................................... 619,000 16,867,750
-----------
</TABLE>
8
<PAGE>
<TABLE>
<S> <C> <C>
Containers - 2.23%
Crown Cork & Seal Co., Inc. * ............................................. 361,000 16,245,000
-----------
Drugs and Medicine - 7.66%
Abbott Laboratories Corp. ................................................. 326,000 14,181,000
Bristol-Myers Squibb Co. .................................................. 203,000 18,270,000
Schering-Plough Corp. ..................................................... 372,000 23,343,000
-----------
55,794,000
-----------
Electronics - 3.15%
Hewlett Packard Co. ....................................................... 57,000 5,678,625
Intel Corp. ............................................................... 95,000 6,976,562
Lucent Technology, Inc. ................................................... 103,000 3,901,125
Motorola, Inc. ............................................................ 102,000 6,413,250
-----------
22,969,562
-----------
Energy and Utilities - 7.14%
Enron Corp. ............................................................... 388,000 15,859,500
MCN Corp. ................................................................. 804,000 19,597,500
Pinnacle West Capital Corp. ............................................... 545,000 16,554,375
-----------
52,011,375
-----------
Energy Raw Materials - 3.09%
Schlumberger Ltd. ......................................................... 267,000 22,494,750
-----------
Food and Agriculture - 6.13%
ConAgra, Inc. ............................................................. 257,000 11,661,375
CPC International, Inc. ................................................... 194,000 13,968,000
Sysco Corp. ............................................................... 555,000 19,008,750
-----------
44,638,125
-----------
Insurance - 4.49%
American International Group, Inc. ........................................ 106,000 10,454,250
Chubb Corp. ............................................................... 446,000 22,244,250
-----------
32,698,500
-----------
International Oil - 1.62%
Royal Dutch Petroleum Co., N.Y. Registry .................................. 77,000 11,838,750
-----------
Liquor - 2.54%
Anheuser-Busch Companies, Inc. ............................................ 247,000 18,525,000
-----------
</TABLE>
9
<PAGE>
<TABLE>
<S> <C> <C>
Media - 5.18%
Gannett Co., Inc. ......................................................... 254,000 17,970,500
Washington Post Co. Class B ............................................... 61,000 19,764,000
------------
37,734,500
------------
Miscellaneous & Conglomerates - 2.46%
Duracell International, Inc. .............................................. 415,000 17,896,875
------------
Motor Vehicles - 1.80%
General Motors Corp. ...................................................... 250,000 13,093,750
------------
Non-Durables and Entertainment - 1.57%
Cracker Barrel Old Country Store, Inc. .................................... 473,000 11,470,250
------------
Producer Goods - 3.58%
General Electric Co. ...................................................... 146,000 12,629,000
Stewart & Stevenson Services, Inc. ........................................ 593,000 13,490,750
------------
26,119,750
------------
Retail - 1.37%
Toys R Us * ............................................................... 351,000 10,003,500
------------
Telephone - 8.11%
A T & T Corp. ............................................................. 362,000 22,444,000
Century Telephone Enterprises, Inc. ....................................... 471,000 15,013,125
MCI Communications Corp. .................................................. 846,000 21,678,750
------------
59,135,875
------------
Trucking and Freight - 1.52%
Ryder System, Inc. ........................................................ 395,000 11,109,375
------------
TOTAL COMMON STOCKS ................................................................ 728,723,075
(Cost $580,482,038) ------------
TOTAL INVESTMENTS .................................................................. $728,723,075
(Cost $580,482,038) ============
<FN>
* Non-income producing security.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Face Amount Market Value
----------- ----------- ------------
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 2.27%
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) .................. $15,945,982 $15,945,982
(Cost $15,945,982) -----------
Shares
------
COMMON STOCKS - 97.73
Air Transport - 1.16%
Air Express International Corp. ........................................... 287,600 8,124,700
-----------
Apparel - 1.55%
Nine West Group, Inc. * ................................................... 212,850 10,881,956
-----------
Banks - 5.81%
Charter One Financial, Inc. ............................................... 480,000 16,740,000
First Tennessee National .................................................. 365,000 11,178,125
TCF Financial Corp. ....................................................... 387,800 12,894,350
-----------
40,812,475
-----------
Business Machines - 4.19%
Autodesk, Inc. ............................................................ 147,099 4,394,583
Diebold, Inc. ............................................................. 273,375 13,190,344
InterVoice, Inc. * ........................................................ 129,200 2,567,850
Xilinx, Inc. * ............................................................ 292,600 9,290,050
-----------
29,442,827
-----------
Business Services - 9.67%
American Management Systems, Inc. * ....................................... 395,050 11,555,212
CDI Corp. * ............................................................... 291,200 9,828,000
DST Systems, Inc. * ....................................................... 120,100 3,843,200
G & K Services Inc. Class A ............................................... 262,200 7,472,700
Omnicom Group, Inc. ....................................................... 239,220 11,123,730
SunGard Data Systems, Inc. * .............................................. 404,800 16,242,600
Zilog, Inc. * ............................................................. 327,300 7,855,200
-----------
67,920,642
-----------
Chemicals - 0.87%
RPM, Inc. ................................................................. 390,272 6,098,000
-----------
</TABLE>
11
<PAGE>
<TABLE>
<S> <C> <C>
Construction - 2.67%
Crane Co. ................................................................. 458,146 18,783,986
------------
Consumer Durables - 2.83%
Durakon Industries, Inc. * ................................................ 314,892 4,605,296
Invacare Corp. ............................................................ 122,600 2,881,100
Leggett & Platt, Inc. ..................................................... 445,910 12,374,003
------------
19,860,399
------------
Containers - 1.35%
Aptargroup, Inc. .......................................................... 314,400 9,510,600
------------
Drugs and Medicine - 5.76%
Community Health System, Inc. * ........................................... 139,200 7,203,600
Health Care & Retirement Corp. * .......................................... 284,334 6,752,932
Scherer (R.P.) Corp. * .................................................... 88,064 3,995,904
Sybron International Corp.*................................................ 470,900 11,772,500
Vivra, Inc. * ............................................................. 326,400 10,730,400
------------
40,455,336
------------
Electronics - 6.98%
Belden, Inc. .............................................................. 585,000 17,550,000
Dynatech Corp. * .......................................................... 416,000 13,520,000
Microchip Technology, Inc. * .............................................. 431,200 10,672,200
Molex, Inc. Class A Non-Voting ............................................ 246,607 7,244,081
------------
48,986,281
------------
Energy Raw Materials - 5.65%
Apache Corp. .............................................................. 502,374 16,515,545
Noble Affiliates, Inc. .................................................... 368,100 13,895,775
Southwestern Energy Co. ................................................... 658,074 9,295,295
------------
39,706,615
------------
Food and Agriculture - 0.63%
Universal Foods Corp. ..................................................... 119,700 4,413,937
------------
Insurance - 3.50%
Capital Re Corp. .......................................................... 310,000 11,392,500
Transatlantic Holdings, Inc. .............................................. 188,246 13,200,751
------------
24,593,251
------------
</TABLE>
12
<PAGE>
<TABLE>
<S> <C> <C>
Media - 1.68%
Banta Corp. ............................................................... 466,415 11,776,979
------------
Miscellaneous and Conglomerates - 10.05%
ABC Rail Products Corp. * ................................................. 240,800 5,207,300
Culligan Water Technologies, Inc. * ....................................... 213,000 8,094,000
DENTSPLY International, Inc. .............................................. 274,200 11,653,500
Greenfield Industries, Inc. ............................................... 476,300 15,717,900
Health Management Associates, Inc. Class A * .............................. 335,363 6,791,091
Littlefuse, Inc. * ........................................................ 279,600 10,485,000
Wolverine Tube, Inc. * .................................................... 360,000 12,600,000
------------
70,548,791
------------
Miscellaneous Finance - 14.74%
CMAC Investment Corp. ..................................................... 224,000 12,880,000
Edwards (A.G.), Inc. ...................................................... 476,580 12,927,232
Everest Reinsurance Holdings, Inc. ........................................ 543,800 14,070,825
Executive Risk, Inc. ...................................................... 355,600 13,601,700
FINOVA Group, Inc. ........................................................ 391,665 19,093,669
Idex Corp. ................................................................ 339,329 12,894,483
PMI Group, Inc. ........................................................... 262,300 11,147,750
Scotsman Industries, Inc. ................................................. 342,000 6,882,750
------------
103,498,409
------------
Motor Vehicles - 4.06%
Borg Warner Automotive .................................................... 137,800 5,443,100
Excel Industries, Inc. .................................................... 220,800 2,760,000
Harley-Davidson, Inc. ..................................................... 241,774 9,942,956
Myers Industries, Inc. .................................................... 358,120 6,669,985
Superior Industries International ......................................... 138,844 3,679,366
------------
28,495,407
------------
Non-Durables and Entertainment - 1.17%
Lancaster Colony Corp. .................................................... 220,096 8,226,088
------------
Non-Ferrous Metals - 1.06%
DT Industries, Inc. ....................................................... 408,500 7,455,125
------------
Producer Goods - 6.26%
Hubbell, Inc. Class B ..................................................... 182,663 12,101,424
</TABLE>
13
<PAGE>
<TABLE>
<S> <C> <C>
Juno Lighting, Inc. ....................................................... 669,711 11,385,087
Teleflex, Inc. ............................................................ 214,360 10,235,690
Trimas Corp. .............................................................. 439,465 10,272,494
------------
43,994,695
------------
Retail - 4.38%
Cato Corp. Class A ........................................................ 1,019,082 6,114,492
Kohls Corp. * ............................................................. 136,236 4,989,643
Proffitts, Inc. * ......................................................... 350,000 12,425,000
Talbots, Inc. ............................................................. 223,701 7,242,320
------------
30,771,455
------------
Travel and Recreation - 1.71%
Callaway Golf Co. ......................................................... 360,400 11,983,300
------------
TOTAL COMMON STOCKS ................................................................ 686,341,254
(Cost $547,295,497) ------------
TOTAL INVESTMENTS .................................................................. $702,287,236
(Cost $563,241,479) ============
<FN>
* Non-income producing security
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
INTRINSIC VALUE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Face Amount Market Value
----------- ----------- ------------
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 5.58%
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)
(Cost $ 16,573,465) ........................................................... $16,573,465 $16,573,465
-----------
CONVERTIBLE BONDS - 9.25%
Chubb Capital Corp., 6.00%, 5/15/98 ........................................... 5,650,000 6,582,250
Consolidated Natural Gas Co., 7.25%, 12/15/15 ................................. 4,549,700 4,885,240
Leucadia National Corp., 2/1/03 ............................................... 7,017,500 7,333,288
Price Co., 6.75%, 3/1/01 ...................................................... 8,100,000 8,677,125
-----------
(Cost $26,029,337) ............................................................. 27,477,903
-----------
Shares
------
COMMON STOCKS - 85.17%
Aerospace-2.42%
Lockheed Martin Corp. ..................................................... 85,500 7,182,000
-----------
Apparel - 7.17%
Reebok International LTD .................................................. 98,530 3,313,071
Payless Shoesource, Inc. * ................................................ 255,505 8,112,284
Unifi Inc. ................................................................ 245,200 6,896,250
V. F. Corp. ............................................................... 49,600 2,957,400
-----------
21,279,005
-----------
Banks - 4.29%
Bancorp Hawaii, Inc. ...................................................... 188,900 6,800,400
First Union Corp. ......................................................... 64,650 3,935,569
Mercantile Bankshares Corp. ............................................... 78,800 2,009,400
-----------
12,745,369
-----------
Business Services - 4.36%
Angelica Corp. ............................................................ 120,200 2,839,725
Harland (John H.) Co. ..................................................... 108,500 2,671,813
National Service Industries, Inc. ......................................... 190,200 7,441,575
-----------
12,953,113
-----------
</TABLE>
15
<PAGE>
<TABLE>
<S> <C> <C>
Chemicals - 3.24%
NCH Corp. ................................................................. 149,900 9,631,075
------------
Consumer Durables - 2.80%
Hillenbrand Industries, Inc. .............................................. 60,600 2,257,350
National Presto Industries, Inc. .......................................... 102,700 3,902,600
Thiokol Corp. ............................................................. 54,700 2,160,650
------------
8,320,600
------------
Domestic Oil - 4.12%
Atlantic Richfield Co. .................................................... 28,300 3,353,550
MAPCO, Inc. ............................................................... 157,300 8,867,787
------------
12,221,337
------------
Drugs and Medicine - 2.11%
Block Drug Inc., Class A .................................................. 77,685 3,262,770
Bristol-Myers Squibb Co. .................................................. 33,500 3,015,000
------------
6,277,770
------------
Energy and Utilities - 4.39%
American Water Works Co., Inc. ............................................ 49,860 2,006,865
Equitable Resources, Inc. ................................................. 128,200 3,621,650
Sierra Pacific Resources .................................................. 291,900 7,406,963
------------
13,035,478
------------
Energy Raw Materials - 1.33%
Ashland Coal, Inc. ........................................................ 151,500 3,939,000
------------
Food and Agriculture - 0.33%
Farmer Brothers Co. ....................................................... 7,200 993,600
------------
Insurance - 15.58%
Allmerica Property & Casualty Co. ......................................... 129,500 3,496,500
AMBAC, Inc. ............................................................... 94,600 4,931,025
Citizens Corp. ............................................................ 225,700 4,231,875
Financial Security Assurance Holdings ..................................... 184,500 5,050,687
Home Beneficial Corp. Class B ............................................. 246,900 6,481,125
Mid Ocean Ltd. ............................................................ 162,300 6,654,300
Old Republic International Corp. .......................................... 430,800 9,262,200
Safeco Corp. .............................................................. 174,200 6,162,325
------------
46,270,037
------------
</TABLE>
16
<PAGE>
<TABLE>
<S> <C> <C>
International Oil - 2.25%
Amoco Corp. ............................................................... 46,100 3,336,488
Texaco, Inc. .............................................................. 39,900 3,346,613
------------
6,683,101
------------
Media - 1.27%
Gannett Co., Inc. ......................................................... 53,100 3,756,825
------------
Miscellaneous and Conglomerates - 0.50%
Guiness Plc Adr ........................................................... 40,700 1,479,807
------------
Miscellaneous Finance - 8.14%
Federal National Mortgage Association ..................................... 312,700 10,475,450
Fund American Enterprises Holdings, Inc. .................................. 128,865 10,438,065
Salomon, Inc. ............................................................. 74,300 3,269,200
------------
24,182,715
------------
Motor Vehicles - 0.98%
Ford Motor Co. ............................................................ 89,798 2,907,210
------------
Non-Durables and Entertainment - 4.69%
Hasbro, Inc. .............................................................. 152,700 5,459,025
Lubys Cafeterias, Inc. .................................................... 149,400 3,510,900
Sbarro, Inc. .............................................................. 196,700 4,942,088
------------
13,912,013
------------
Railroads and Shipping - 3.00%
Alexander & Baldwin, Inc. ................................................. 287,500 6,935,937
Illinois Central Corp. Series A ........................................... 69,150 1,962,131
------------
8,898,068
------------
Retail - 2.31%
May Department Stores Co. ................................................. 58,615 2,564,406
Stanhome, Inc. Voting ..................................................... 162,200 4,298,300
------------
6,862,706
------------
Soaps and Cosmetics - 2.20%
Unilever N.V .............................................................. 44,900 6,516,112
------------
Tires and Rubber Goods - 2.46%
Bandag, Inc. Class A ...................................................... 155,700 7,298,438
------------
</TABLE>
17
<PAGE>
<TABLE>
<S> <C> <C>
Tobacco - 5.23%
Loews Corp. ............................................................... 127,600 10,064,450
Philip Morris Companies, Inc. ............................................. 52,400 5,449,600
------------
15,514,050
------------
TOTAL COMMON STOCKS ................................................................ 252,859,429
(Cost $ 213,926,379) ------------
TOTAL INVESTMENTS .................................................................. $296,910,797
(Cost $ 256,529,181) ============
<FN>
* Non-income producing security
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
CAPITAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Face Amount Market Value
----------- ----------- ------------
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 0.04%
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) .................... $ 102,477 $ 102,477
(Cost $102,477) ---------- ----------
Shares
COMMON STOCKS - 99.96% ------
Banks - 3.38% .................................................................
Banc One Corp. ............................................................ 88,000 2,992,000
Norwest Corp. ............................................................. 140,000 4,882,500
----------
7,874,500
----------
Business Machines - 4.28%
Microsoft Corp. * ......................................................... 55,000 6,606,875
Silicon Graphics * ........................................................ 140,000 3,360,000
----------
9,966,875
----------
Business Services - 9.37%
Automatic Data Processing, Inc. ........................................... 116,000 4,480,500
Computer Assoc. International, Inc. ....................................... 50,000 3,562,500
Electronic Data Systems Corp. ............................................. 95,000 5,106,250
Interpublic Group of Companies, Inc. ...................................... 105,000 4,921,875
WMX Technologies, Inc. .................................................... 115,000 3,766,250
----------
21,837,375
----------
Chemicals - 3.32%
Great Lakes Chemical Corp. ................................................ 58,000 3,610,500
Praxair, Inc. ............................................................. 60,000 2,535,000
Sigma-Aldrich Corp. ....................................................... 29,900 1,599,650
----------
7,745,150
----------
Construction - 4.53%
Fluor Corp. ............................................................... 73,000 4,772,375
York International Corp. .................................................. 112,000 5,796,000
----------
10,568,375
----------
Consumer Durables - 1.84%
Newell Co. ................................................................ 140,000 4,287,500
----------
</TABLE>
19
<PAGE>
<TABLE>
<S> <C> <C>
Containers - 1.93%
Crown Cork & Seal Co., Inc. * ............................................. 100,000 4,500,000
----------
Drugs and Medicine - 15.46%
Columbia/HCA Healthcare Corp. ............................................. 106,000 5,657,750
Johnson & Johnson ......................................................... 140,000 6,930,000
Medtronic, Inc. ........................................................... 67,000 3,752,000
Mylan Laboratories, Inc. .................................................. 180,000 3,105,000
Pall Corp. ................................................................ 225,000 5,428,125
Smithkline Beecham Plc Adr ................................................ 65,000 3,534,375
Stryker Corp. ............................................................. 166,000 3,776,500
United Healthcare Corp. ................................................... 76,000 3,838,000
----------
36,021,750
----------
Electronics - 8.70%
Amp, Inc. ................................................................. 170,000 6,821,250
Hewlett Packard Co. ....................................................... 50,000 4,981,250
Intel Corp. ............................................................... 85,000 6,242,188
Lucent Technology, Inc. ................................................... 58,800 2,227,050
----------
20,271,738
----------
Energy And Utilities - 2.37%
Enron Corp. ............................................................... 135,000 5,518,125
----------
Energy Raw Materials - 4.13%
Schlumberger, Ltd. ....................................................... 52,000 4,381,000
Western Atlas, Inc. * ..................................................... 90,000 5,242,500
----------
9,623,500
----------
Food and Agriculture - 1.06%
Pepsico, Inc. ............................................................ 70,000 2,476,250
----------
Insurance - 7.97%
AFLAC, Inc. ............................................................... 150,000 4,481,250
American International Group, Inc. ........................................ 56,000 5,523,000
Chubb Corp. ............................................................... 72,000 3,591,000
Unum Corp. ................................................................ 80,000 4,980,000
----------
18,575,250
----------
Non-Durables and Entertainment - 6.04%
Cracker Barrel Old Country Store, Inc. .................................... 200,000 4,850,000
</TABLE>
20
<PAGE>
<TABLE>
<S> <C> <C>
CUC International, Inc. * ................................................. 73,650 2,614,575
Service Corp. International ............................................... 115,000 6,612,500
------------
14,077,075
------------
Producer Goods - 3.76%
Illinois Tool Works, Inc. ................................................. 76,000 5,139,500
Ivax Corp. ................................................................ 85,000 1,349,375
Stewart & Stevenson Services, Inc. ........................................ 100,000 2,275,000
------------
8,763,875
------------
Retail - 7.37%
Albertsons, Inc. .......................................................... 132,000 5,461,500
Home Depot, Inc. .......................................................... 135,000 7,290,000
Walgreen Co. .............................................................. 132,000 4,422,000
------------
17,173,500
------------
Telephone - 3.99%
AirTouch Communications, Inc. * ........................................... 170,000 4,802,500
MCI Communications Corp. .................................................. 175,000 4,484,375
------------
9,286,875
------------
Tobacco - 3.85%
Philip Morris Companies, Inc. ............................................. 50,000 5,200,000
UST, Inc. ................................................................. 110,000 3,767,500
------------
8,967,500
------------
Travel and Recreation - 6.61%
Carnival Corp. Class A .................................................... 180,000 5,197,500
Disney (Walt) Co. ......................................................... 85,000 5,344,375
Gaylord Entertainment Co. Class A ......................................... 172,200 4,864,650
------------
15,406,525
------------
TOTAL COMMON STOCKS ................................................................ 232,941,738
(Cost $188,001,751) ------------
TOTAL INVESTMENTS .................................................................. $233,044,215
(Cost $188,104,228) ============
<FN>
* Non-income producing security
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
THE WOODWARD FUNDS
BALANCED FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996
(Unaudited)
Description Face Amount Market Value
----------- ----------- ------------
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 7.23%
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) .................. $7,908,176 $7,908,176
(Cost $7,908,176) ----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 37.22%
U.S. Treasury Securities - 19.85%
Principal Strips from U.S. Treasury Securities due:
5/15/17 ................................................................ 915,000 208,199
8/15/17 ................................................................ 3,455,000 771,467
Strips from U.S. Treasury Securities due:
5/15/98 ................................................................ 200,000 178,702
8/15/98 ................................................................ 500,000 439,330
2/15/99 ................................................................ 100,000 85,014
8/15/99 ................................................................ 500,000 410,933
2/15/11 ................................................................ 600,000 216,606
5/15/11 ................................................................ 1,083,000 383,707
2/15/12 ................................................................ 280,000 93,783
8/15/12 ................................................................ 750,000 241,995
5/15/13 ................................................................ 760,000 231,732
2/15/14 ................................................................ 2,935,000 847,364
11/15/18 ............................................................... 600,000 122,616
U.S. Treasury Bonds:
12.750%, 11/15/10 ...................................................... 1,145,000 1,607,832
10.375%, 11/15/12 ...................................................... 685,000 869,628
12.500%, 8/15/14 ....................................................... 120,000 176,738
8.750%, 5/15/17 ........................................................ 200,000 237,375
U.S. Treasury Notes:
7.250%, 11/15/96 ....................................................... 200,000 201,281
8.625%, 8/15/97 ........................................................ 850,000 874,837
8.750%, 10/15/97 ....................................................... 200,000 206,874
8.875%, 11/15/97 ....................................................... 800,000 829,872
7.875%, 1/15/98 ........................................................ 3,030,000 3,111,416
7.875%, 4/15/98 ........................................................ 3,870,000 3,984,281
6.875%, 7/31/99 ........................................................ 200,000 202,844
</TABLE>
22
<PAGE>
<TABLE>
<S> <C> <C>
7.75%, 11/30/99 ........................................................ 2,005,000 2,087,706
6.25%, 2/15/03 ......................................................... 400,000 392,875
7.25%, 5/15/04 ......................................................... 2,600,000 2,692,625
----------
(Cost $21,544,665) 21,707,632
----------
Agency Obligations - 17.37%
Federal Home Loan Mortgage Corp. Participation Ctf
#555238, 12.000%, 7/01/19 .............................................. 161,307 180,605
Federal Home Loan Mortgage Corp. Gtd. Multi-Class
Mortgage Participation Ctfs.:
Series 22 Class C, 9.500%, 4/15/20 ..................................... 138,110 150,738
Series 11 Class D, 9.500%,7/15/19 ...................................... 200,000 217,246
Series 84 Class F, 9.200%, 10/15/20 .................................... 300,000 318,795
Series 99 Class Z, 9.500%, 1/15/21 ..................................... 95,781 102,064
Series 109 Class I, 9.100%, 1/15/21 .................................... 500,000 534,675
Series 1051 Class D, 7.000%, 11/15/19 .................................. 148,835 149,463
Series 1065 Class J, 9.000%, 4/15/21 ................................... 100,000 105,903
Series 1084 Class F, AR, 5/15/21 ....................................... 250,000 254,822
Series 1084 Class S, IF, 5/15/21 ....................................... 175,000 201,250
Series 1144 Class KB, 8.500%, 9/15/21 .................................. 250,000 258,912
Series 1295 Class JB, 4.500%, 3/15/07 .................................. 300,000 256,458
Series 1297 Class H, 7.500%, 1/15/20 ................................... 135,703 131,982
Series 1360 Class PK, 10.000%, 12/15/20 ................................ 150,000 168,105
Series 1370 Class F, 6.750%, 3/15/19 ................................... 260,000 255,094
Series 1378 Class H, 10.000%, 1/15/21 .................................. 100,000 111,723
Series 1378 Class JZ, 7.500%, 11/15/21 ................................. 657,702 605,917
Series 1465 Class SA, IF, 2/15/08 ...................................... 1,372,170 65,178
Series 1483 Class E, 6.500%, 2/15/20 ................................... 367,500 352,344
Series 1489 Class L, 5.500%, 4/15/08 ................................... 194,563 184,642
Series 1491 Class F, 5.000%, 8/15/19 ................................... 400,000 364,396
Series 1508 Class KB, IO, IF, 5/15/23 .................................. 646,884 40,831
Series 1531 Class K, 6.000%, 4/15/08 ................................... 346,816 324,293
Series 1554 Class KA, PO, 8/15/08 ...................................... 79,189 51,473
Series 1575 Class FB, 7.000%, 8/15/08 .................................. 298,345 296,108
Series 1575 Class SB, 3.000%, 8/15/08 .................................. 99,448 57,680
Series 1583 Class NS, IF, 9/15/23 ...................................... 115,888 71,271
Series 1585 Class NB, IF, 9/15/23 ...................................... 144,996 99,141
</TABLE>
23
<PAGE>
<TABLE>
<S> <C> <C>
Series 1586 Class A, 6.000%, 9/15/08 ................................... 167,614 155,341
Series 1595 Class S, IO, IF, 10/15/13 .................................. 1,457,418 68,309
Series 1602 Class O, 6.000%, 10/15/23 .................................. 250,000 220,470
Series 1604 Class SE, IF, 11/15/08 ..................................... 187,033 135,131
Series 1606 Class LD, IF, 5/15/08 ...................................... 393,649 221,671
Series 1681 Class K, 7.000%, 8/15/23 ................................... 435,915 412,332
Series 1686 Class A, 5.000%, 2/15/24 ................................... 92,449 74,414
Series 1686 Class SL, IF, 2/15/24 ...................................... 231,122 168,142
Series 1689 Class SD, IF, 10/15/23 ..................................... 100,000 75,750
Series 1706 Class LA, 7.000%, 3/15/24 .................................. 398,680 385,052
Series 1757-A, Class A, 9.500%, 5/15/23 ............................... 160,957 169,809
Series 1796-A, Class S, IF, 2/15/09 .................................... 100,000 66,000
Series 1825 Class C, 5.799%, 12/15/23 .................................. 400,000 341,124
Series 1854 Class C, 4/15/08 ........................................... 400,000 224,372
Federal Housing Administration Merrill Lynch Project
Pool 170 Pass thru Ctf., 7.430%, 8/1/20 ................................ 225,566 226,242
Federal Housing Administration
Project #07335307, 7.430%, 1/1/22 ...................................... 226,813 227,040
Federal Housing Administration
Greystone 1996-2 Pool, 7.430%, 11/1/22 ................................. 249,559 249,808
Federal National Mortgage Assn. Pass Thru Securities
Pool #116612, AR, 3/1/19 ............................................... 110,908 114,268
Federal National Mortgage Assn. Pass Thru Securities
Guaranteed Remic Trust:
1989 Class 34-D, 9.850%, 7/25/13 ....................................... 46,222 46,574
1989 Class 69-G, 7.600%, 10/25/19 ...................................... 800,000 777,247
1989 Class 78-H, 9.400%, 11/25/19 ...................................... 250,000 271,317
1990 Class 1-D, 8.800%, 1/25/20 ........................................ 150,000 156,265
1990 Class 120-H, 9.000%, 10/25/20 ..................................... 500,000 534,105
1990 Class 140-K, HB, 652.1454%, 12/25/20 .............................. 1,463 41,266
1990 Class 143-J, 8.750%, 12/25/20 ..................................... 125,000 130,019
1991 Class 144-PZ, 8.500%, 6/25/21 ..................................... 222,717 230,270
1991 Class 161-H, 7.500%, 2/25/21 ...................................... 154,674 156,394
1992-G Class 15-Z, 7.000%, 1/25/22 ..................................... 202,976 176,897
1992-G Class 42-Z, 7.000%, 7/25/22 ..................................... 657,193 592,385
1992-G Class 59-C, 6.000%, 12/25/21 .................................... 600,000 552,504
1992 Class 204-B, 6.000%, 10/25/20 ..................................... 250,000 226,275
</TABLE>
24
<PAGE>
<TABLE>
<S> <C> <C>
1993 Class 13-G, 6.000%, 6/25/20 ....................................... 200,000 186,668
1993 Class 15-K, 7.000%, 02/25/08 ...................................... 190,146 181,448
1993 Class 19-G, 5.000%, 5/25/19 ....................................... 250,000 227,735
1993-G Class 19-K, 6.500%, 6/25/19 ..................................... 254,799 238,683
1993 Class 32-K, 6.000%, 3/25/23 ....................................... 340,598 290,274
1993 Class 38-S, 5.255%, 11/25/22 ...................................... 969,702 29,091
1993 Class 44-S, IO, IF, 4/25/23 ....................................... 429,613 29,936
1993 Class 58-J, 5.500%, 4/25/23 ....................................... 150,260 134,342
1993 Class 94-K, 6.750%, 5/25/23 ....................................... 123,415 115,459
1993 Class 139-SG, IF, 8/25/23 ......................................... 242,431 126,670
1993 Class 155-LA, 6.500%, 5/25/23 ..................................... 347,178 336,099
1993 Class 155-SB, IO, IF, 9/25/23 ..................................... 820,046 52,147
1993 Class 190-SE, IF, 10/25/08 ........................................ 49,847 34,503
1993 Class 207-SC, IF, 11/25/23 ........................................ 286,295 165,871
1993 Class 209-KB, 5.659%, 8/25/08 ..................................... 373,990 338,868
1993 Class 214-L, 6.000%, 12/25/08 ..................................... 157,499 148,396
1993 Class 220-SD, IF, 11/25/13 ........................................ 49,707 28,954
1993 Class 223-FB, AR, 12/25/23 ........................................ 165,265 114,446
1993 Class 223-SB, IF, 12/25/23 ........................................ 371,360 358,363
1994-G Class 13-ZB, 7.000%, 11/17/24 ................................... 111,685 96,304
1994 Class 19-C, 5.000%, 1/25/24 ....................................... 341,483 297,896
1994 Class 30-LA, 6.500%, 2/25/09 ...................................... 82,749 79,531
1994 Class 36-SE, IF, 11/25/23 ......................................... 136,624 89,489
1994 Class 39-F, IF, 3/25/24 ........................................... 225,925 220,981
1994 Class 39-S, IF, 3/25/24 ........................................... 86,894 68,076
1994 Class 53-CA, PO, 11/25/23 ......................................... 460,000 316,250
1994 Class 82-SA, IF, 5/25/23 .......................................... 1,777,652 53,330
1995 Class 13-B, 6.500%, 3/25/09 ....................................... 563,918 532,073
1996 Class 20-L, 2/25/08 ............................................... 165,000 88,016
Government National Mortgage Assn. Pass Thru Securities
Guaranteed Remic Trust:
1994 Class 4-SA, IO, IF, 10/16/22 ...................................... 600,000 34,770
Government National Mortgage Assn. Pass Thru:
Pool #297628, 8.000%, 9/15/22 .......................................... 178,228 180,876
Pool #313110, 7.500%, 11/15/22 ......................................... 468,988 466,033
----------
(Cost $18,085,135) 18,999,470
----------
</TABLE>
25
<PAGE>
<TABLE>
<S> <C> <C>
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ....................................... 40,707,103
(Cost $39,629,800) ----------
CORPORATE BONDS AND NOTES - 3.90%
Finance - 3.26%
Associates Corp. of North America:
9.125%, 4/1/00 ......................................................... 85,000 91,600
8.150%, 8/1/09 ......................................................... 200,000 209,804
Case Equipment Loan Trust Asset Backed Ctf ................................
Series 1996-A, Class A2, 5.500%, 2/15/03 ............................... 430,000 426,108
Ford Credit Grantor Trust Asset Backed Ctf ................................
Series 1994-A, Class A, 6.350%, 5/15/99 ................................ 192,431 193,391
Green Tree Financial Corp. Asset Backed Ctf ...............................
Series 1996-A, Class A, 5.700%, 2/15/26 ................................ 120,249 119,996
Merrill Lynch Home Equity Loan Asset Backed Ctf ...........................
Series 1992-1, Class A, VR, 7/15/22 .................................... 167,849 168,213
Merrill Lynch Trust 43 E CMO, Series 43-E,
6.500%, 8/27/15 ........................................................ 200,000 189,892
Merrill Lynch MBS Project Pass Thru Ctf ...................................
Series 144-S, 7.43 %, 7/25/24 .......................................... 365,410 350,794
Nationsbank Auto Grantor Trust Asset Backed Ctf ...........................
Series 1995-A, Class A, 5.850%, 6/15/02 ................................ 74,746 74,640
Navistar Financial Corp. Owner Trust Asset Backed Ctf .....................
Series 1995-A, Class A2, 6.550%, 11/20/01 .............................. 280,034 284,420
Onyx Acceptance Grantor Trust Auto Loan Pass Thru Ctf .....................
Series 1996-1, Class A, 5.400%, 5/15/01 ................................ 253,094 250,320
Superior Wholesale Inventory Trust Asset Backed Ctf .......................
Series 1996-A, Class A, VR, 3/15/01 .................................... 200,000 200,000
World Omni Automobile Trust Asset Backed Ctf ..............................
Series 1995-A, Class A, 6.050%, 11/25/01 ............................... 1,000,000 1,001,629
----------
(Cost $4,280,428) 3,560,805
----------
Industrial - 0.32%
Boeing Co., 7.950%, 8/15/24 ............................................... 110,000 116,529
Proctor & Gamble Co., 8.000%, 10/26/96 .................................... 220,000 233,974
----------
(Cost $360,167) 350,503
----------
Public Utility - 0.32%
New England Telephone & Telegraph Co., 7.875%, 11/15/29 ................... 250,000 264,600
</TABLE>
26
<PAGE>
<TABLE>
<S> <C> <C>
Nippon Telegraph & Telephone Corp., 9.500%, 7/27/98 ....................... 80,000 84,500
----------
(Cost $349,736) 349,100
----------
TOTAL CORPORATE BONDS AND NOTES .................................................... 4,260,408
(Cost $4,990,331) ----------
CONVERTIBLE BONDS - 0.78%
Chubb Capital Corp., 6.000%, 5/15/98 .......................................... 176,000 205,040
Consolidated Natural Gas Co., 7.250%, 12/15/15 ................................ 141,800 152,258
Leucadia National Corp., 5.250%, 2/1/03 ....................................... 215,900 225,616
Price Co., 6.750%, 3/1/01 ..................................................... 251,000 268,884
----------
(Cost $820,678) 851,797
----------
Shares
------
COMMON STOCKS - 50.87%
Aerospace - 0.94%
Boeing Co. ................................................................ 9,500 827,688
Lockheed Martin Corp. ..................................................... 2,420 203,280
----------
1,030,968
----------
Air Transport - 0.10%
Air Express International Corp. ........................................... 3,725 105,231
----------
Apparel - 1.34%
Nine West Group, Inc. * ................................................... 2,850 145,706
Payless Shoesource, Inc. * ................................................ 8,055 255,746
Reebok International Ltd. ................................................. 3,110 104,574
Russell Corp. ............................................................. 23,900 660,238
Unifi Inc. ................................................................ 7,610 214,031
V.F. Corp. ............................................................... 1,470 87,649
----------
1,467,943
----------
Banks - 2.96%
Banc One Corp. ............................................................ 3,410 115,940
Bancorp Hawaii, Inc. ...................................................... 5,750 207,000
Barnett Banks, Inc. ....................................................... 10,800 658,800
Charter One Financial Inc. ................................................ 6,200 216,225
First Tennessee National Corp. ............................................ 4,800 147,000
First Union Corp. ......................................................... 2,120 129,055
</TABLE>
27
<PAGE>
<TABLE>
<S> <C> <C>
Fleet Financial Group, Inc. ............................................... 20,800 904,800
Mercantile Bankshares Co. ................................................. 2,400 61,200
Norwest Corp. ............................................................. 17,900 624,263
TCF Financial Corp. ....................................................... 5,200 172,900
----------
3,237,183
----------
Business Machines - 2.17%
Autodesk, Inc. ............................................................ 11,900 355,513
Compaq Computer Corp. * ................................................... 5,900 290,575
Diebold, Inc. ............................................................. 3,569 172,204
Electronic Data System Corp. .............................................. 19,800 1,064,250
InterVoice, Inc. * ........................................................ 1,600 31,800
Microsoft Corp. * ......................................................... 1,600 192,200
Silicon Graphics * ........................................................ 6,000 144,000
Xilinx, Inc. * ............................................................ 3,750 119,063
----------
2,369,604
----------
Business Services - 3.84%
American Management System, Inc. * ........................................ 5,150 150,638
Angelica Corp. ............................................................ 3,520 83,160
Automatic Data Processing, Inc. ........................................... 3,600 139,050
CDI Corp. * ............................................................... 3,800 128,250
Computer Association International, Inc. .................................. 1,500 106,875
Deluxe Corp. .............................................................. 19,300 685,150
DST Systems Inc. * ........................................................ 1,500 48,000
Dun & Bradstreet Corp. .................................................... 12,100 756,250
G & K Services, Inc. Class A .............................................. 3,300 94,050
Harland (John H.) Co. ..................................................... 3,000 73,875
Interpublic Group of Companies, Inc. ...................................... 10,800 506,250
National Service Industries, Inc. ......................................... 5,280 206,580
Omnicom Group, Inc. ....................................................... 3,080 143,220
SunGard Data Systems, Inc. * .............................................. 5,200 208,650
WMX Technologies, Inc. .................................................... 23,400 766,350
Zilog, Inc. * ............................................................. 4,200 100,800
----------
4,197,148
----------
Chemicals - 2.12%
Dow Chemical Co. .......................................................... 5,300 402,800
</TABLE>
28
<PAGE>
<TABLE>
<S> <C> <C>
Great Lakes Chemical Corp. ................................................ 10,400 647,400
NCH Corp. ................................................................. 4,700 301,975
RPM, Inc. ................................................................. 4,965 77,578
Sigma-Aldrich Corp. ....................................................... 16,500 882,750
----------
2,312,503
----------
Construction - 2.08%
Crane Co. ................................................................. 5,904 242,064
Fluor Corp. ............................................................... 3,100 202,663
Masco Corp. ............................................................... 20,800 629,200
York International Corp. .................................................. 23,200 1,200,600
----------
2,274,527
----------
Consumer Durables - 1.29%
Durakon Industries, Inc. * ................................................ 4,008 58,617
Hillenbrand Industries, Inc. .............................................. 1,860 69,285
Invacare Corp. ............................................................ 1,500 35,250
Leggett & Platt, Inc. ..................................................... 5,640 156,510
National Presto Industries, Inc. .......................................... 3,220 122,360
Newell Co. ................................................................ 5,300 162,313
Rubbermaid, Inc. .......................................................... 27,200 741,200
Thiokol Corp. ............................................................. 1,720 67,940
----------
1,413,475
----------
Containers - 0.85%
AptarGroup, Inc. .......................................................... 3,900 117,975
Crown Cork & Seal Co., Inc. * ............................................. 18,100 814,500
----------
932,475
----------
Domestic Oil - 0.34%
Atlantic Richfield Co. .................................................... 850 100,725
MAPCO, Inc. ............................................................... 4,860 273,983
----------
374,708
----------
Drugs and Medicine - 4.09%
Abbott Laboratories Corp. ................................................. 14,300 622,050
Block Drug Inc. Class A ................................................... 2,405 101,010
Bristol-Myers Squibb Co. .................................................. 9,920 892,800
Columbia/HCA Healthcare Corp. ............................................. 3,500 186,813
Health Care & Retirement Corp. * .......................................... 3,691 87,661
</TABLE>
29
<PAGE>
<TABLE>
<S> <C> <C>
Johnson & Johnson ......................................................... 3,400 168,300
Medtronic, Inc. ........................................................... 2,400 134,400
Mid Ocean Ltd. ............................................................ 5,020 205,820
Mylan Laboratories, Inc. .................................................. 7,000 120,750
Pall Corp. ................................................................ 5,800 139,925
Scherer (R.P.) Corp. * .................................................... 1,086 49,277
Schering-Plough Corp. ..................................................... 16,400 1,029,100
Smithkline Beecham ........................................................ 3,000 163,125
Stryker Corp. ............................................................. 4,000 91,000
Sybron International Corp. * .............................................. 6,500 162,500
United HealthCare Corp. ................................................... 3,400 171,700
Vivra, Inc. * ............................................................. 4,300 141,363
----------
4,467,594
----------
Electronics - 2.01%
AMP, Inc. ................................................................. 2,500 100,313
Belden, Inc. .............................................................. 7,800 234,000
Dynatech Corp. * .......................................................... 5,200 169,000
Hewlett Packard Co. ....................................................... 4,900 488,163
Intel Corp. ............................................................... 6,500 477,344
Lucent Technology, Inc. ................................................... 6,000 227,250
Microchip Technology, Inc. ................................................ 5,500 136,125
Molex, Inc. Class A Non-Voting ............................................ 3,150 92,531
Motorola, Inc. ............................................................ 4,400 276,650
----------
2,201,375
----------
Energy and Utilities - 2.51%
American Water Works Co., Inc. ............................................ 1,510 60,778
Enron Corp. ............................................................... 18,500 756,188
Equitable Resources, Inc. ................................................. 3,910 110,458
MCN Corp. ................................................................. 35,300 860,438
Pinnacle West Capital Co. ................................................. 23,900 725,963
Sierra Pacific Resources .................................................. 9,260 234,973
----------
2,748,795
----------
Energy Raw Materials - 1.76%
Apache Corp. .............................................................. 6,476 212,899
Ashland Coal, Inc. ........................................................ 4,920 127,920
</TABLE>
30
<PAGE>
<TABLE>
<S> <C> <C>
Noble Affiliates, Inc. .................................................... 4,900 184,975
Schlumberger Ltd. ......................................................... 13,500 1,137,375
Southwestern Energy Co. ................................................... 8,476 119,724
Western Atlas, Inc. * ..................................................... 2,500 145,625
----------
1,928,517
----------
Food and Agriculture - 2.03%
ConAgra, Inc. ............................................................. 11,300 512,738
CPC International, Inc. ................................................... 8,400 604,800
Farmer Brothers Co. ....................................................... 310 42,780
Pepsi, Inc. ............................................................... 5,000 176,875
Sysco Corp. ............................................................... 24,400 835,700
Universal Foods Corp. ..................................................... 1,400 51,625
----------
2,224,518
----------
Insurance - 3.27%
AFLAC, Inc. ............................................................... 5,000 149,375
Allmerica Property & Casualty Co. ......................................... 4,130 111,510
AMBAC, Inc. ............................................................... 3,050 158,982
American International Group, Inc. ........................................ 6,100 601,613
Capital Re Corp. .......................................................... 4,000 147,000
Chubb Corp. ............................................................... 22,600 1,127,175
Citizens Corp. ............................................................ 6,340 118,875
Financial Security Assurance Holdings ..................................... 5,740 157,133
Home Beneficial Corp. Class B ............................................. 7,560 198,450
Old Republic International Corp. .......................................... 13,345 286,918
Safeco Corp. .............................................................. 5,580 197,393
Transatlantic Holdings, Inc. .............................................. 2,354 165,074
Unum Corp. ................................................................ 2,500 155,625
----------
3,575,121
----------
International Oil - 0.66%
Amoco Corp. ............................................................... 1,370 99,154
Royal Dutch Petroleum Co., N.Y. Registry .................................. 3,400 522,750
Texaco, Inc. .............................................................. 1,210 101,489
----------
723,393
----------
Liquor - 0.74%
Anheuser Busch Companies, Inc. ............................................ 10,800 810,000
----------
</TABLE>
31
<PAGE>
<TABLE>
<S> <C> <C>
Media - 1.75%
Banta Corp. ............................................................... 6,035 152,384
Gannett Co., Inc. ......................................................... 12,480 882,960
Washington Post Co. Class B ............................................... 2,700 874,800
----------
1,910,144
----------
Miscellaneous and Conglomerates - 1.60%
ABC Rail Products Corp. * ................................................. 3,200 69,200
Culligan Water Technologies, Inc. * ....................................... 2,700 102,600
DENTSPLY International, Inc. .............................................. 3,500 148,750
Duracell International, Inc. .............................................. 18,300 789,188
Greenfield Industries, Inc. ............................................... 6,200 204,600
Guinness PLC ADR .......................................................... 1,100 39,995
Health Management Associates, Inc. Class A * .............................. 4,493 90,984
Littlefuse, Inc. * ........................................................ 3,600 135,000
Wolverine Tube, Inc.* ..................................................... 4,850 169,750
----------
1,750,066
----------
Miscellaneous Finance - 1.90%
CMAC Investment Corp. ..................................................... 2,900 166,750
Edwards (A.G.) Inc. ....................................................... 6,255 169,667
Everest Reinsurance Holdings, Inc. ........................................ 7,200 186,300
Executive Risk, Inc. ...................................................... 4,700 179,775
Federal National Mortgage Association ..................................... 9,580 320,930
FINOVA Group, Inc. ........................................................ 4,635 225,956
Fund American Enterprises Holdings, Inc. * ................................ 4,090 331,290
Idex Corp. * .............................................................. 4,372 166,117
PMI Group, Inc. ........................................................... 3,400 144,500
Salomon, Inc. ............................................................. 2,270 99,880
Scotsman Industries, Inc. ................................................. 4,400 88,550
----------
2,079,715
----------
Motor Vehicles - 0.96%
Borg Warner Automotive, Inc. .............................................. 2,000 79,000
Excel Industries, Inc. .................................................... 2,800 35,000
Ford Motor Co. ............................................................ 2,850 92,269
General Motors Corp. ...................................................... 11,000 576,125
Harley-Davidson, Inc. ..................................................... 3,226 132,669
</TABLE>
32
<PAGE>
<TABLE>
<S> <C> <C>
Myers Industries, Inc. .................................................... 4,720 87,910
Superior Industries International ......................................... 1,838 48,707
----------
1,051,680
----------
Non-Durables and Entertainment - 1.32%
Cracker Barrel Old Country Store, Inc. .................................... 26,500 642,625
CUC International, Inc. * ................................................. 2,250 79,875
Hasbro, Inc. .............................................................. 4,810 171,958
Lancaster Colony Corp. .................................................... 2,864 107,042
Luby's Cafeterias, Inc. ................................................... 4,630 108,805
Sbarro, Inc. .............................................................. 6,170 155,021
Service Corp. International ............................................... 3,000 172,500
----------
1,437,826
----------
Non-Ferrous Metals - 0.09%
DT Industries, Inc. ....................................................... 5,100 93,075
----------
Producer Goods - 1.83%
General Electric Co. ...................................................... 6,400 553,600
Hubbell, Inc. Class B ..................................................... 2,351 155,754
Illinois Tool Works, Inc. ................................................. 2,100 142,013
Ivax Corp. ................................................................ 4,500 71,438
Juno Lighting, Inc. ....................................................... 8,339 141,763
Stewart & Stevenson Services, Inc. ........................................ 29,400 668,850
Teleflex, Inc. ............................................................ 2,790 133,223
Trimas Corp. .............................................................. 5,735 134,056
----------
2,000,695
----------
Railroads and Shipping - 0.24%
Alexander & Baldwin, Inc. ................................................. 8,250 199,031
Illinois Central Corp. .................................................... 2,140 60,723
----------
259,754
----------
Retail - 1.39%
Albertsons, Inc. .......................................................... 3,200 132,400
Cato Corp. Class A ........................................................ 13,618 81,708
Home Depot, Inc. .......................................................... 3,500 189,000
Kohls Corp. * ............................................................. 1,764 64,607
May Department Stores Co. ................................................. 1,775 77,657
</TABLE>
33
<PAGE>
<TABLE>
<S> <C> <C>
Proffitts, Inc. * ......................................................... 4,700 166,850
Stanhome, Inc. Voting ..................................................... 5,140 136,210
Talbots, Inc. ............................................................. 2,949 95,474
Toys R Us *................................................................ 15,400 438,900
Walgreen Co. .............................................................. 4,200 140,700
------------
1,523,505
------------
Soaps and Cosmetics - 0.19%
Unilever N. V ............................................................. 1,410 204,626
------------
Telephone - 2.65%
AT&T Corp. ................................................................ 15,900 985,800
AirTouch Communications, Inc. * ........................................... 5,000 141,250
Century Telephone Enterprises, Inc. ....................................... 20,700 659,813
MCI Communications Corp. .................................................. 43,200 1,107,000
------------
2,893,863
------------
Tires and Rubber Goods - 0.20%
Bandag Inc. Class A ....................................................... 4,700 220,313
------------
Tobacco - 0.70%
Loews Corp. ............................................................... 4,030 317,866
Philip Morris Companies, Inc. ............................................. 3,190 331,760
UST, Inc. ................................................................. 3,500 119,875
------------
769,501
------------
Travel and Recreation - 0.50%
Callaway Golf Co. ......................................................... 4,200 139,650
Carnival Corp. Class A .................................................... 5,000 144,375
Disney (Walt) Co. ......................................................... 2,100 132,038
Gaylord Entertainment Co. Class A ......................................... 4,515 127,549
------------
543,611
------------
Trucking and Freight - 0.45%
Ryder System, Inc. ........................................................ 17,400 489,375
------------
TOTAL COMMON STOCKS ................................................................ 55,622,822
(Cost $47,343,809) ------------
TOTAL INVESTMENTS .................................................................. $109,350,305
(Cost $100,692,794) ============
<FN>
* Non-income producing security.
</TABLE>
34
<PAGE>
THE WOODWARD BALANCED FUND
PORTFOLIO OF INVESTMENTS (Continued)
June 30, 1996
Notes to Portfolio of Investments
The Fund invests in securities whose value is derived from an underlying pool
of mortgages or consumer loans. Some of these securities are collateralized
mortgage obligations (CMOs). CMOs are debt securities issued by U.S.
government agencies or by financial institutions and other mortgage lenders
which are collateralized by a pool of mortgages held under an indenture.
Adjustable Rate (AR)
Inverse Floaters (IF) represent securities that pay interest at a rate that
increases (decreases) with a decline (increase) in a specified index.
Interest Only (IO) represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. The face amount shown
represents the par value on the underlying pool. The yields on these
securities are generally higher than prevailing market yields on other
mortgage-backed securities because their cash flow patterns are more volatile
and there is a greater risk that the initial investment will not be fully
recouped. These securities are subject to accelerated principal paydowns as a
result of prepayments or refinancing of the underlying pool of mortgage
instruments. As a result, interest income may be reduced considerably.
High Coupon Bonds (HB) (a.k.a. "IOettes") represent the right to receive
interest payments on an underlying pool of mortgages with similar risks as
those associated with IO securities. Unlike IO's the owner also has a right to
receive a very small portion of principal. The high interest rate results from
taking interest payments from other classes in the REMIC Trust and allocating
them to the small principal of the HB class.
Principal Only (PO) represents the right to receive the principal portion only
on an underlying pool of mortgage loans. The market value of these securities
is extremely volatile in response to changes in market interest rates. As
prepayments on the underlying mortgages of these securities increase, the yield
on these securities increases.
35
<PAGE>
THE WOODWARD FUNDS
EQUITY FUNDS
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 five Equity Funds (Equity
Funds) included in these financial statements are described below.
Woodward Growth/Value Fund
Woodward Opportunity Fund
Woodward Intrinsic Value Fund
Woodward Capital Growth Fund
Woodward Balanced Fund
The Growth/Value, Opportunity and Intrinsic Value Funds commenced
operations on June 1, 1991, the Balanced Fund commenced operations on July 2,
1994, and the Capital Growth Fund commenced operations on July 2, 1994.
The remaining two Woodward Equity Funds, the Equity Index and
International Equity Funds, are each included on separate stand alone
financial statements.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies followed
by the Equity Funds in 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 reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Investments
The Equity Funds value 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
36
<PAGE>
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. Bond
premiums and discounts are amortized/accreted as required by the Internal
Revenue Code. Premiums and discounts on mortgage-backed securities are
amortized/accreted using the effective interest rate method. As prepayments on
the underlying mortgages increase or decrease the expected life, the yield is
adjusted to amortize/accrete the security to its new expected life. Dividends
are recorded on the ex-dividend date.
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 Funds. 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 each Series.
37
<PAGE>
Expenses
Expenses are charged daily as a percentage of the Fund's 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 of005% of the Equity Funds' 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.
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. For the period ended June 30, 1996, NBD reimbursed the Balanced
Fund for certain expenses in the amount of $18,406.
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.
38
<PAGE>
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.
39
<PAGE>
(4) Investment Securities Transactions
Information with respect to investment securities and security
transactions, excluding short-term securities is, as follows:
<TABLE>
<CAPTION>
GROWTH/VALUE OPPORTUNITY INTRINSIC VALUE
FUND FUND FUND
------------ ----------- ---------------
<S> <C> <C> <C>
Gross Unrealized Gains .... $ 156,598,423 $ 157,606,131 $ 42,073,344
Gross Unrealized Losses ... (8,357,386) (18,560,374) (1,691,728)
------------- ------------- -------------
$ 148,241,037 $ 139,045,757 $ 40,381,616
============= ============= =============
Federal Income Tax Cost ... $ 580,751,376 $ 564,200,829 $ 256,529,181
Purchases ................. $ 143,941,721 $ 156,401,931 $ 74,296,032
Sales, at value ........... $ 186,248,404 $ 172,105,711 $ 59,413,132
<CAPTION>
CAPITAL GROWTH BALANCED
FUND FUND
-------------- --------
<S> <C> <C>
Gross Unrealized Gains .... $ 48,035,439 $ 9,138,136
Gross Unrealized Losses ... (3,095,452) (480,625)
------------- -------------
$ 44,939,987 $ 8,657,511
============= =============
Federal Income Tax Cost ... $ 188,104,228 $ 100,824,143
Purchases ................. $ 54,943,862 $ 37,690,280
Sales, at value ........... $ 28,529,451 $ 21,764,985
</TABLE>
40
<PAGE>
(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>
GROWTH/VALUE OPPORTUNITY INTRINSIC VALUE
Effective Date FUND FUND FUND
- -------------- ------------ ----------- ---------------
<S> <C> <C> <C>
Expense Rates:
January 1 ...................... 0.82% 0.86% 0.88%
March 18 ....................... 0.80% 0.80% 0.85%
May 21 ......................... 0.80% 0.80% 0.83%
NBD Advisory Fee:
January 1 ...................... 0.75% 0.75% 0.75%
Amounts Paid:
Advisory Fee to NBD ............ $ 2,822,334 $ 2,540,002 $ 1,008,003
Distribution Fees to FoM & Essex $ 41,309 $ 47,710 $ 14,661
Other Fees & Out of Pocket
Expenses to NBD ............. $ 95,215 $ 125,832 $ 42,653
<CAPTION>
CAPITAL GROWTH BALANCED
Effective Date FUND FUND
- -------------- -------------- --------
<S> <C> <C>
Expense Rates:
January 1 ..................... 0.87% 0.93%
March 18 ....................... 0.88% 0.95%
May 21 ........................ 0.88% 0.95%
NBD Advisory Fee:
January 1 ...................... 0.75% 0.75%
Amounts Paid:
Advisory Fee to NBD ............ $ 817,701 $ 390,877
Distribution Fees to FoM & Essex $ 7,692 $ 7,342
Other Fees & Out of Pocket
Expenses to NBD ............. $ 27,617 $ 59,301
Expense
Reimbursements by NBD .......... (18,406)
</TABLE>
(6) Subsequent Event
On August 23, 1996, the Woodward Capital Growth Fund and Woodward
Balanced Fund merged with the Prairie Growth Fund and Prairie Managed
Assets Fund, respectively. The transaction was effected as a tax-free
reorganization under the Internal Revenue Code, so that none of the Funds'
shareholders recognized taxable gains or losses as a result of the
reorganization.
41
<PAGE>
THE WOODWARD FUNDS
EQUITY FUNDS
FINANCIAL HIGHLIGHTS
The Financial Highlights present a per share analysis of how the Equity Funds'
net assets values have 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 Funds
and other information for the periods presented.
<TABLE>
<CAPTION>
Growth/Value Fund
------------------------------------------------------------------------------------------
Six Months
Ended
June 30, 1996 Year ended Year ended Year ended Year ended Period ended
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993 Dec. 31, 1992 Dec. 31, 1991
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 13.16 $ 10.67 $ 11.16 $ 10.51 $ 9.86 $ 10.00
Income from investment
operations:
Net investment income ..... 0.09 0.21 0.23 0.20 0.22 0.14
Net realized and
unrealized gains
(losses) on investments .. 1.04 2.76 (0.17) 1.24 0.75 (0.14)
------------ ------------ ------------ ------------ ------------ ------------
Total from investment
operations .................. 1.13 2.97 0.06 1.44 0.97 --
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
From net investment income (0.08) (0.22) (0.21) (0.20) (0.22) (0.14)
From realized gains ....... -- (0.26) (0.30) (0.59) (0.10) --
In excess of realized gains -- -- (0.01) -- -- --
Tax return of capital ..... -- -- (0.03) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions ........... (0.08) (0.48) (0.55) (0.79) (0.32) (0.14)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of
period ...................... $ 14.21 $ 13.16 $ 10.67 $ 11.16 $ 10.51 $ 9.86
============ ============ ============ ============ ============ ============
Total Return (b) .............. 17.22%(a) 28.04% 0.55% 13.79% 9.87% 0.17%(a)
Ratios/Supplemental Data
Net assets, end of period ..... $768,367,008 $737,167,067 $571,370,711 $429,635,045 $287,344,809 $238,085,630
Ratio of expenses to
average net assets ......... 0.80% 0.84% 0.84% 0.83% 0.83% 0.85%(a)
Ratio of net investment
income to average
net assets .................. 1.22% 1.73% 2.07% 1.84% 2.20%(a) 2.56%(a)
Portfolio turnover rate ....... 19.58% 26.80% 28.04% 42.31% 16.28% 0.94%
Average commission rate........ $ 0.04 $ 0.04
<FN>
See accompanying notes to financial statements.
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
Opportunity Fund
-------------------------------------------------------------------------------------------
Six Months
Ended
June 30, 1996 Year ended Year ended Year ended Year ended Period ended
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993 Dec. 31, 1992 Dec. 31, 1991
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 15.15 $ 13.34 $ 14.49 $ 12.37 $ 10.40 $ 10.00
Income from investment
operations:
Net investment income ..... 0.02 0.06 0.07 0.10 0.11 0.09
Net realized and
unrealized
gains (losses)
on investments .......... 1.61 2.57 (0.54) 2.87 2.43 0.43
------------ ------------ ------------ ------------ ------------ ------------
Total from investment
operations .................. 1.63 2.63 (0.47) 2.97 2.54 0.52
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
From net investment income (0.02) (0.06) (0.07) (0.10) (0.11) (0.09)
From realized gains ....... -- (0.76) (0.49) (0.75) (0.46) (0.03)
In excess of realized gains -- -- (0.02) -- -- --
Tax return of capital ..... -- -- (0.10) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions ........... (0.02) (0.82) (0.68) (0.85) (0.57) (0.12)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of
period ...................... $ 16.76 $ 15.15 $ 13.34 $ 14.49 $ 12.37 $ 10.40
============ ============ ============ ============ ============ ============
Total Return (b) .............. 21.43%(a) 19.88% (3.27)% 24.01% 24.56% 8.92%(a)
Ratios/Supplemental Data
Net assets, end of period ..... $707,061,012 $650,952,268 $524,999,120 $365,664,513 $166,423,073 $108,046,450
Ratio of expenses
to average net
assets ...................... 0.82%(a) 0.89% 0.90% 0.86% 0.84% 0.84%(a)
Ratio of net investment
income to average
net assets .................. 0.24%(a) 0.37% 0.53% 0.71% 1.09% 1.56%(a)
Portfolio turnover rate ....... 23.58% 53.55% 37.51% 33.99% 34.44% 2.92%
Average commission rate ....... $ 0.03 $ 0.04
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
Intrinsic Value Fund
------------------------------------------------------------------------------------------------
Six Months
Ended
June 30, 1996 Year ended Year ended Year ended Year ended Period ended
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993 Dec. 31, 1992 Dec. 31, 1991
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period ................. $ 11.89 $ 10.48 $ 11.05 $ 10.40 $ 9.89 $ 10.00
Income from investment
operations:
Net investment
income ............. 0.15 0.29 0.31 0.29 0.29 0.17
Net realized
and unrealized
gains (losses)
on investments ..... 1.11 2.24 (0.38) 1.23 1.14 (0.02)
------------ ------------ ------------ ------------ ------------ -----------
Total from investment
operations ............. 1.26 2.53 (0.07) 1.52 1.43 0.15
------------ ------------ ------------ ------------ ------------ -----------
Less distributions:
From net investment
income ........... (0.15) (0.30) (0.30) (0.28) (0.28) (0.17)
From realized gains .. -- (0.82) (0.20) (0.59) (0.64) (0.09)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions ...... (0.15) (1.12) (0.50) (0.87) (0.92) (0.26)
------------ ------------ ------------ ------------ ------------ -----------
Net asset value,
end of period ......... $ 13.00 $ 11.89 $ 10.48 $ 11.05 $ 10.40 $ 9.89
============ ============ ============ ============ ============ ===========
Total Return (b) ......... 21.31%(a) 24.38% (0.60%) 14.71% 14.56% 2.70%(a)
Ratios/Supplemental Data
Net assets, end of period $295,817,289 $255,884,859 $220,028,096 $192,555,183 $107,260,873 $77,450,163
Ratio of expenses to
average net assets ..... 0.85 0.91% 0.91% 0.86% 0.84% 0.84%(a)
Ratio of net investment
income to average
net assets ............. 2.46% 2.49% 2.92% 2.67% 2.78% 3.03%(a)
Portfolio turnover rate .. 23.32% 45.55% 58.62% 63.90% 48.52% 1.80%
Average commission rate .. $ 0.00 $ 0.03
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
Capital Growth Fund Balanced Fund
---------------------------------------------- ----------------------------------------------
Six Months Six Months
Ended Ended
June 30, 1996 Year ended Period ended June 30, 1996 Year ended Period ended
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 (Unaudited) Dec. 31, 1995 Dec. 31, 1994
------------- -------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .............. $ 13.26 $ 10.44 $ 10.00 $ 11.24 $ 9.53 $ 10.00
Income from investment
operations:
Net investment income 0.03 0.08 0.05 0.18 0.35 0.28
Net realized and
unrealized
gains (losses)
on investments ..... 0.99 2.93 0.43 0.30 1.83 (0.48)
------------ ------------ ----------- ------------ ----------- -----------
Total from investment
operations ............. 1.02 3.01 0.48 0.48 2.18 (0.20)
------------ ------------ ----------- ------------ ----------- -----------
Less distributions:
From net investment
income ............. (0.03) (0.08) (0.04) (0.24) (0.35) (0.27)
From realized gains .. -- (0.11) -- -- (0.12) --
------------ ------------ ----------- ------------ ----------- -----------
Total distributions ...... (0.03) (0.19) (0.04) (0.24) (0.47) (0.27)
------------ ------------ ----------- ------------ ----------- -----------
Net asset value, end of
period ................. $ 14.25 $ 13.26 $ 10.44 $ 11.48 $ 11.24 $ 9.53
============ ============ =========== ============ =========== ===========
Total Return (b) ......... 15.41%(a) 28.90% 9.62%(a) 8.57%(a) 23.18% (1.95)%
Ratios/Supplemental Data
Net assets, end of period $233,617,570 $195,861,178 $81,269,604 $109,853,690 $93,623,801 $54,167,192
Ratio of expenses to
average net assets ..... 0.87%(a) 0.86% 0.85%(a) 0.94%(a) 0.91% 0.85%
Ratio of net investment
income to average
net assets ............. 0.40%(a) 0.65% 1.25%(a) 3.23%(a) 3.40% 3.41%
Ratio of expenses
to average net
assets without
fee waivers/
reimbursed expenses .... -- 0.90% 0.95%(a) 0.98%(a) 1.09% 1.56%
Ratio of net
investment income
to average net
assets without fee
waivers/reimbursed
expenses ............... -- 0.61% 1.15%(a) 3.19%(a) 3.22% 2.70%
Portfolio turnover rate .. 13.34% 6.97% 3.29% 23.88% 31.76% 37.49%
Average commission rate .. $ 0.05 $ 0.04 $ 0.04 $ 0.05
<FN>
(a) Annualized for periods less than one year for comparability purposes.
Actual annual values may be less than or greater than those shown.
(b) Total returns as presented do not include any applicable sales load.
</TABLE>
44
<PAGE>
RESULTS OF SPECIAL SHAREHOLDER MEETING (Unaudited)
On July 10, 1996 and July 31, 1996, special meetings of the shareholders
of The Woodward Growth/ Value, Opportunity, Intrinsic Value, Capital Growth ,
and Balanced Funds were held to approve the following proposals.
The shareholders approved these proposals with respect to The Woodward
Growth/Value, Opportunity, Intrinsic Value, Capital Growth, and Balanced Funds
are 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")
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,697,375 569,461 428,342
Opportunity 29,002,795 239,823 189,058
Intrinsic Value 14,485,532 254,925 71,876
Capital Growth 8,987,121 322,943 69,443
Balanced 7,876,687 16,097 9,040
</TABLE>
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
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 37,714,498 895,808 832,712
Opportunity 28,007,923 821,674 340,716
Intrinsic Value 14,242,959 379,208 91,019
Capital Growth 8,761,346 508,381 96,114
Balanced 7,853,765 35,605 12,454
</TABLE>
b) expanded power to borrow
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 37,808,221 850,023 784,774
Opportunity 28,041,208 832,447 296,658
Intrinsic Value 14,237,759 392,511 82,916
Capital Growth 8,781,777 489,751 94,313
Balanced 7,849,899 29,627 22,297
</TABLE>
c) issuing senior securities
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 37,860,869 777,283 804,867
Opportunity 28,128,015 686,609 355,689
Intrinsic Value 14,273,227 326,855 113,103
Capital Growth 8,799,493 463,111 103,238
Balanced 7,853,795 26,094 21,935
</TABLE>
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
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,190,362 743,968 508,689
Opportunity 28,257,950 658,048 254,316
Intrinsic Value 14,310,207 313,409 89,570
Capital Growth 8,842,837 445,620 77,383
Balanced 7,861,861 18,105 21,858
</TABLE>
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
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,066,818 825,096 551,104
Opportunity 28,250,504 617,701 302,108
Intrinsic Value 14,303,918 330,470 78,798
Capital Growth 8,820,530 450,430 94,881
Balanced 7,867,137 15,625 19,062
</TABLE>
c) limitation on illiquid securities
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,025,425 844,852 572,741
Opportunity 28,202,459 657,059 310,796
Intrinsic Value 14,263,943 356,029 93,213
Capital Growth 8,765,508 498,507 101,826
Balanced 7,866,803 13,025 21,995
</TABLE>
d) limitation on purchasing securities on margin
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,030,798 851,788 560,432
Opportunity 28,176,388 691,235 302,691
Intrinsic Value 14,264,733 361,080 87,373
Capital Growth 8,852,552 411,546 101,743
Balanced 7,868,320 11,884 21,621
</TABLE>
e) limitation on purchasing securities of companies for the
purpose of exercising control
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,037,340 843,099 562,580
Opportunity 28,199,207 669,563 301,544
Intrinsic Value 14,271,641 354,527 87,017
Capital Growth 8,858,369 412,785 94,687
Balanced 7,857,247 23,386 21,190
</TABLE>
f) limitation on writing or selling put options, call options,
straddles, spreads, or any combinations thereof
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,042,540 836,142 564,336
Opportunity 28,190,886 670,389 309,039
Intrinsic Value 14,266,607 366,739 79,839
Capital Growth 8,864,326 399,603 101,912
Balanced 7,862,705 16,908 22,211
</TABLE>
5. To approve certain changes to fundamental investment objectives.
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,176,969.57 712,619.13 553,431.125
Opportunity 28,264,577.86 615,516.77 290,220.758
Capital Growth 8,901,322.25 389,056.76 75,463.220
</TABLE>
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
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,615,486 615,153 464,538
Opportunity 28,966,936 240,565 224,175
Intrinsic Value 14,488,742 239,325 84,266
Capital Growth 9,012,944 294,979 71,583
Balanced 7,897,014 10,057 17,477
</TABLE>
7. To approve amendments to the Amended and Restated Declaration of
Trust of The Woodward Funds.
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value 38,215,003 766,803 461,212
Opportunity 28,664,222 266,248 239,844
Intrinsic Value 14,358,649 275,225 79,312
Capital Growth 10,788,885 339,108 121,069
Balanced Fund 7,857,439 18,996 25,389
</TABLE>
8. To transact such other business as may properly come before the
Meetings or any adjournment thereof.
<TABLE>
<CAPTION>
Fund Affirmative Against Abstain
<S> <C> <C> <C>
Growth Value
Opportunity 28,701,598 383,407 346,670
Intrinsic Value 14,488,044 228,099 96,190
Capital Growth 8,862,036 440,186 77,285
Balanced Fund 7,892,907 13,250 18,390
</TABLE>
<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 ]
- -------------------------------------------------------------------------------
The Woodward Funds ------------
P.O. Box 7058 BULK RATE
Troy, MI 48007-7058 U.S. POSTAGE
PAID
Detroit, MI
Permit No. 2
------------
