(Carillon logo on right upper half of cover)
- --------------------------------------------
Carillon Capital Fund
of
Carillon Investment Trust
ANNUAL REPORT
- --------------------------------------------
October 31, 1995
CIT 683 12-95<PAGE>
<PAGE>
CARILLON CAPITAL FUND
ANNUAL REPORT
Message from the President
October 31, 1995
===========================================================
United States' financial markets performed extremely well during
the November 1, 1994 through October 31, 1995 fiscal year of the
Carillon Capital Fund. Both stock and bond markets benefitted from
a string of favorable financial news that unwound during the
period. These developments included economic growth strong enough
to keep Gross Domestic Product moving forward at a more sustainable
3 percent level than the 4 percent plus levels of 1994. Despite
this robust economic growth, the level of price inflation as
measured by the consumer price index remained at or below the
3 percent level where it has resided for most of the 1990s.
This combination of reasonable growth and low inflation appeared to
please the Federal Reserve Board. These economic factors signaled
that the elusive "soft landing" rather than a severe slowdown in
economic growth may have been achieved from the Fed's higher short-
term interest rate policy during 1994. Low inflation, good
economic growth and a prospect for deficit reduction activity out
of Washington's politicians kept market hopes alive for additional
cuts in key short-term interest rates and helped long-term rates
come back down from 1994's highs.
Productivity gains have been another important feature of the
bright financial picture. Normally productivity is strongest at
the beginning of an economic recovery, but in this cycle the last
several quarters, or about four years into the recovery, have
produced the best numbers. A combination of the effects of
corporate downsizing and technological advancements seem to have
emerged as the main productivity enhancers over the period.
The combination of economic growth, lower interest rates, and
strong productivity have produced a bonanza in the key stock market
ingredient of corporate profitability. After recording a halting
recovery in the early 1990s interrupted on an all too regular basis
by non-recurring write-offs, corporate financial officers have been
recording hefty increases in their income statements so far during
1994 and 1995.
This collection of almost perfect economic pictures helped the
stock market advance from already lofty levels to a long series of
record highs. The markets were able to shake off the only economic
worries of the year which included: a weak U.S. dollar, whether
the economic slowdown might lead to a 1996 recession, and slow
world economic growth in both Europe and Japan. The bond market
also celebrated with the slowdown in growth and low inflation
particularly aiding this market's advance. Investors seem to have
very few concerns at this point. This could lead to an abrupt
change in psychology, if financial and economic events change
course.
When investment values are near historically normal relationships,
the Carillon Capital Fund will be structured approximately 63
percent, 30 percent, and 7 percent in stocks, bonds, and money
market instruments, respectively. However, when market conditions
change, the Fund repositions its asset mix to take advantage of
investment opportunities. The following table highlights the
allocation of fund assets at October 31, 1995, six months ago, one
year ago, and at a long-term normal portfolio allocation.
<TABLE>
<CAPTION>
Carillon Capital Fund Asset Allocation
10/31/95 4/30/95 10/31/94 Long-Term
-------- ------- -------- ---------
<S> <C> <C> <C> <C>
Stocks 38% 31% 27% 63%
Bonds 42% 46% 46% 30%
Money Market 20% 23% 27% 7%
Total 100% 100% 100% 100%
</TABLE>
This report was prepared for Carillon Capital Fund of Carillon
Investment Trust shareholders and may be distributed to others if
preceded or accompanied by a current prospectus.<PAGE>
<PAGE>
As shown in the preceding table , the Capital Fund has increased
its exposure to common stocks and decreased its bond and money
market positions during the period. Favorable developments on the
national economic front, an improving technical picture from the
stock market's upward momentum, and lesser competition from bond
yields have increased our allocation toward common stocks. The
significant 1995 bond market rally has left this sector slightly
less attractive. The money market position has decreased, but
remains well above normal due to the extended nature of stock
market prices from a long-term perspective.
Comparison of Change in Value of $10,000 Investment
Carillon Capital Fund,The S&P 500,
Lehman Brothers U.S. Treasury Securities Composite,
Lipper Flexible Fund Average, and the
Consumer Price Index.
(The above introduces a line graph featuring the S&P 500, Carillon
Capital Fund, Lipper Flexible Fund Average, Lehman Brothers U.S.
Treasury Composite and Consumer Price Index for the period February
29, 1988 through October 31, 1995. The caption in the top left
corner reads:
Carillon Capital Fund Average Annual
Total Return including 5% Sales Loan
<TABLE>
<CAPTION>
1 Year 5 Year Inception
<C> <C> <C>
5.34% 12.68% 10.19%
</TABLE>
Past performance is not predictive of future results.
The graph is further discussed below.)
Performance comparisons assume the reinvestment of income dividends
and capital gain distributions. The Carillon Capital Fund results
reflect an initial 5 percent sales load and all mutual fund
expenses. See the prospectus for situations which require no sales
load fees, such as qualified plan investments. The comparative
indices shown on this graph, other than the Lipper Flexible Fund
Average, reflect no expenses and none of the other comparisons is
reduced by a sales load. We classify the Capital Fund as a
"Flexible Fund" by Lipper and invest its assets among stocks,
bonds, and money market instruments which makes comparisons with a
single stock or bond index not totally comparative.
The Fund's one-year performance for the period ended
October 31, 1995, excluding the sales load was below the S&P 500
Stock Index, the Lehman Brothers U.S. Treasury Bond Composite, and
the Flexible Fund average as calculated by Lipper Analytical
Services. This shorter-term relative performance is very
disappointing to us. Fund management is looking hard at the
current financial markets to better understand where value can be
found. We are confident that our competitive, long-term record
will remain intact and believe these markets present real
opportunities to those investors with a disciplined approach to
find relative value away from today's fashionable stock groups.
The Fund's relative performance was hurt this year by our low
allocation to the stock market and lack of exposure to several of
the strongest market sectors such as technology and larger
capitalization multinational consumer product companies. The
stocks which did perform well for us this year were: 1) Several
financial stocks such as Banco Latinoamericano, Standard Federal
Bank, Student Loan Marketing, and United Insurance Companies;
2) European drug and chemical stocks Ciba-Giegy and Bayer AG;
3) Technology stocks Advance Circuits and DH Technology;
4) Medical technical company Lunar Corporation. This company
benefitted from increased attention to its bone densitometry
devices due to the successful introduction of Merck's Fosamax drug
for osteoporosis.
This has been a period of unusual market events as the stock market
remains fundamentally overvalued on a longer-term historical basis
as of October 31, 1995. This extreme price level has not yet
slowed the major stock market advance that began in 1990. We
believe that not chasing today's hot stocks will best serve our
efforts to produce excellent long-term returns rather than buying
them and hoping they will get hotter. Rather, we will follow a
strategy of purchasing out-of-favor groups (such as Real Estate
Investment Trusts), holding a diverse portfolio that includes many
foreign and precious metal related stocks, and having a sufficient
amount of money market related investments that can be deployed
when long-term financial rewards are better balanced with risk.
We appreciate the confidence you have placed in Carillon Capital
Fund and look forward to the challenge of effective, long-term
investment management.
/s/ George L. Clucas
George L. Clucas
Carillon Investment Trust
December 13, 1995
This report was prepared for Carillon Capital Fund of Carillon
Investment Trust shareholders and may be distributed to others if
preceded or accompanied by a current prospectus.<PAGE>
<PAGE>
CARILLON CAPITAL FUND
SCHEDULE OF INVESTMENTS
- --------------------------------------------------
OCTOBER 31, 1995
- --------------------------------------------------
COMMON STOCKS - 36.73%
- --------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
AUTO PARTS - 0.88%
Breed Technologies, Incorporated 9,500 $ 176,938
Strattec Security Corporation* 14,000 234,500
-----------
411,438
-----------
BANK & BANK HOLDING COMPANIES - 2.90%
ABN AMRO Holdings NV Sponsored ADR 8,228 345,233
Banco Latinoamericano de Exportaciones ADR* 15,000 626,250
Deutsche Bank AG Sponsored ADR 8,370 378,422
-----------
1,349,905
-----------
BUILDING & HOUSING - 0.90%
ABT Building Products Company* 11,000 141,625
Falcon Products, Incorporated 20,000 280,000
-----------
421,625
-----------
BUSINESS - MECHANICS & SOFTWARE - 1.28%
DH Technology, Incorporated 30,240 597,240
-----------
CHEMICAL - 2.82%
Bayer AG Sponsored ADR 25,000 664,647
Ciba-Geigy Sponsored ADR 15,000 648,696
-----------
1,313,343
-----------
CONGLOMERATE - 0.71%
Mannesman AG ADR 1,000 328,987
-----------
CONTAINER - 1.42%
AEP Industries, Incorporated 29,169 656,303
-----------
ENGINEERING & CONSTRUCTION - 0.25%
Mestek, Incorporated* 10,000 115,000
-----------
GOLD & PRECIOUS METALS - 1.72%
Free State Consolidated Gold Mines Limited ADR 7,000 66,063
Minorco Sponsored ADR 21,000 572,250
Royal Oak Mines, Incorporated* 45,000 165,938
-----------
804,251
-----------
HEALTH CARE - 1.92%
Lunar Corporation* 15,000 558,750
Orthofix International NV* 12,000 117,000
Sofamor / Danek Group* 9,000 220,500
-----------
896,250
-----------
HEALTH CARE SERVICES - 0.94%
Rightchoice Managed Care Incorporated
- Class A* 15,000 191,250
United Wisconsin Services, Incorporated 10,000 248,750
-----------
440,000
-----------
HOSPITAL SUPPLY & SERVICES - 0.81%
Allied Healthcare Products Incorporated 20,000 380,000
-----------
HOUSEHOLD PRODUCTS - 1.49%
Chromecraft Revington Incorporated* 7,000 168,000
Helen of Troy Limited, Bermuda* 13,000 240,500
Lifetime-Hoan Corporation 29,947 284,497
-----------
692,997
-----------
INSURANCE - 2.30%
Capital American Financial Corporation 10,000 $ 196,250
Gainsco Incorporated 21,000 181,125
RLI Corporation 14,520 339,405
Torchmark Corporation 5,000 207,500
United Insurance Companies, Incorporated 8,800 149,600
-----------
1,073,880
-----------
INTERNATIONAL BOND - 0.38%
Templeton Global Income Fund 25,000 175,000
-----------
INVESTMENT COMPANIES - 1.02%
BlackRock Strategic Term Trust 25,000 187,500
France Growth Fund, Incorporated 4,333 41,705
New Germany Fund 20,000 245,000
-----------
474,205
MACHINERY - AGRICULTURE & CONSTRUCTION - 1.01%
Lindsay Manufacturing Company* 13,359 470,905
-----------
MISCELLANEOUS - ENERGY - 1.19%
Holly Corporation 12,000 261,000
Repsol S.A. Sponsored ADR 10,000 296,250
-----------
557,250
-----------
MISCELLANEOUS - MANUFACTURING - 0.60%
ILC Technology, Incorporated* 10,000 93,750
Versa Technologies, Incorporated 12,000 186,000
-----------
279,750
-----------
MISCELLANEOUS - SERVICE - 0.22%
PCA International Incorporated 10,000 103,750
-----------
OIL & GAS - DOMESTIC - 0.73%
Horsham Corporation 15,000 202,500
Plains Resources, Incorporated* 20,000 136,250
-----------
338,750
-----------
OIL & GAS - INTERNATIONAL - 0.29%
YPF S. A. Sponsored ADR 8,000 137,000
-----------
OIL & GAS - SERVICES - 1.37%
Global Industries Incorporated* 15,000 393,750
Offshore Logistics, Incorporated* 20,000 247,500
-----------
641,250
-----------
REAL ESTATE - 8.22%
Associated Estates Realty Corporation 20,000 410,000
Bradley Real Estate Incorporated 13,000 186,875
CBL & Associates Properties Incorporated 16,000 340,000
Duke Realty Investments Incorporated 12,000 367,500
Felcor Suite Hotels Incorporated 10,000 288,750
Glimcher Realty Trust 15,000 270,000
Health Care Property Investors, Incorporated 6,704 227,098
IRT Properties Company 25,000 237,500
LTC Properties Incorporated 14,000 203,000
Merry Land & Investment Company 18,000 378,000
Mid-America Apartment Communities 18,000 414,000
NAB Asset Corporation 15,000 69,375
Shurgard Storage Centers Incorporated 17,400 443,700
-----------
3,835,798
-----------
RETAIL - GENERAL - 0.21%
Claire's Stores, Incorporated 500 9,812
Value City Department Stores* 15,000 90,000
-----------
99,812
-----------
SAVINGS & LOAN - 0.76%
Standard Federal Bancorp 10,000 355,000
-----------
UTILITIES - 0.39%
Texas Utilities Company 5,000 183,750
Total Common Stocks (cost $13,680,192) 17,133,439
-----------
<CAPTION>
- -----------------------------------
PREFERRED STOCK - 0.72%
- -----------------------------------
SHARES VALUE
------ -----
<S> <C> <C>
METAL & MINERAL - 0.72%
Freeport McMoRan Copper & Gold 10,000 $ 335,000
-----------
Total Preferred Stocks (cost $347,888) 335,000
-----------
<CAPTION>
- --------------------------------------------------
U.S. TREASURY OBLIGATIONS - 12.73%
- --------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
U.S. TREASURY NOTES - 12.73%
7.500% due 02/29/96 $ 250,000 $ 251,563
7.250% due 08/31/96 500,000 506,563
7.250% due 11/15/96 250,000 254,140
8.000% due 01/15/97 250,000 256,953
6.750% due 02/28/97 900,000 912,938
6.375% due 01/15/99 1,300,000 1,324,375
6.375% due 07/15/99 350,000 356,890
6.000% due 10/15/99 1,550,000 1,563,077
6.250% due 02/15/03 500,000 508,750
-----------
Total U.S. Treasury Notes (cost $5,788,004) 5,935,249
-----------
<CAPTION>
- --------------------------------------------------
MORTGAGE - BACKED SECURITIES - 22.53%
- --------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION - 4.79%
7.500% due 06/01/07 $ 70,920 $ 71,609
6.250% due 01/15/09 417,388 406,461
8.250% due 03/01/12 139,896 143,853
8.500% due 03/01/16 242,116 250,582
8.500% due 06/15/17 400,000 402,504
7.500% due 07/01/17 132,984 133,951
11.000% due 04/01/19 247,195 272,864
10.500% due 05/01/19 159,413 174,259
11.000% due 11/01/19 341,287 376,727
-----------
2,232,810
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.95%
9.500% due 09/01/05 36,555 38,444
6.000% due 12/01/08 363,751 354,821
5.500% due 01/01/09 368,017 353,400
6.000% due 03/01/09 279,808 272,939
5.500% due 04/01/09 371,612 356,569
-----------
1,376,173
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 1.03%
10.250% due 04/15/16 21,826 23,726
9.000% due 11/15/16 177,801 187,984
9.500% due 05/15/18 86,985 92,965
9.000% due 12/15/19 165,304 174,208
-----------
478,883
-----------
MISCELLANEOUS - 13.76%
FNMA Remic 93-12 ED (7.500% due 02/25/06) 1,000,000 1,027,030
FNMA Remic 92-18 HC (7.500% due 03/25/07) 400,000 413,060
FNMA Remic 93-163 PN (7.000% due 07/25/07) 250,000 255,220
FHLMC 1422 FA (5.970% due 11/15/07)<F1> 500,000 496,750
GNMA Remic 94-6 C (7.990% due 12/16/15) 1,384,338 1,402,501
Merrill Lynch Mortgage Investors 1992-F B
(6.938% due 09/15/17)<F1> 500,000 474,375
FNMA Remic 92-119 E (8.000% due 07/25/20) 500,000 517,150
FNMA Remic 92-112 (8.000% due 12/25/20) 780,000 808,782
FNMA Remic 93-127 FA
(5.240% due 10/25/21)<F1> 500,000 469,540
FNMA Remic 92-66 F (6.406% due 05/25/22)<F1> 555,365 557,008
-----------
6,421,416
-----------
Total Mortgage-Backed Securities
(cost $10,269,727) 10,509,282
-----------
<CAPTION>
- --------------------------------------------------
CORPORATE BONDS AND NOTES - 7.07%
- --------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
BANKS - 1.18%
Boatmens Bancshares, Inc. Sub. Note
(9.250% due 11/01/01) $ 240,000 $ 272,549
Comerica Inc., Sub. Note
(9.750% due 05/01/99) 250,000 275,086
-----------
547,635
-----------
FINANCIAL SERVICES - 0.49%
Pacific Gulf Properties, Inc. Sub.
Convertible Deb. (8.375% due 02/15/01) 250,000 230,625
-----------
GAMING - 0.57%
Circus Circus Enterprises, Inc. Senior
Sub. Note (10.625% due 06/15/97) 250,000 266,180
-----------
HOMEBUILDER- 0.56%
Toll Corporation Senior Sub. Note
(10.500% due 03/15/02) 250,000 260,625
-----------
INSURANCE - 0.52%
American Financial Group Note
(9.750% due 08/01/99) 120,000 120,521
Reliance Financial Services Corporation
Senior Note (9.480% due 11/01/00)<F1> 125,000 124,047
-----------
244,568
-----------
OIL & GAS EXPLORATION SERVICES - 1.38%
Columbia Gas Systems Inc. Deb.
(10.500% due 06/01/12)<F2> 250,000 376,946
Rowan Companies, Inc. Senior Note
(11.875% due 12/01/01) 250,000 268,750
-----------
645,696
-----------
SAVINGS & LOAN - 0.30%
Golden West Financial Corporation Sub.
Note (10.250% due 12/01/00) 120,000 139,271
TELEPHONE & TELECOMMUNICATIONS - 0.35%
United Telecommunications, Inc. Note
(9.750% due 04/01/00) 144,000 161,437
-----------
UTILITIES - ELECTRIC - 1.72%
Connecticut Light & Power Company
1st Ref Mtg. (7.625% due 04/01/97) 296,000 301,049
El Paso Electric 1st Mtg.
(6.750% due 05/01/98)<F2> 200,000 191,750
New Orleans Public Service Inc.
1st Mtg. Note (8.670% due 04/01/05) 300,000 309,406
-----------
802,205
-----------
Total Corporate Bonds and Notes
(cost $3,075,100) 3,298,242
-----------
<CAPTION>
- --------------------------------------------------
SHORT-TERM INVESTMENTS - 18.88%
- --------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER - 10.67%
Columbia Healthcare Corporation
(5.890% due 12/05/95) $1,000,000 $ 994,437
Nabisco Inc. (5.890% due 12/04/95) 1,000,000 994,601
Pennzoil Company (5.880% due 12/08/95) 1,000,000 993,957
Time Warner Entertainment Company
(6.000% due 11/10/95) 1,000,000 998,500
Union Pacific Corporation
(5.840% due 11/13/95) 1,000,000 998,053
-----------
4,979,548
-----------
VARIABLE RATE DEMAND NOTES<F3>- 8.21%
General Mills, Inc. (5.460% due 11/01/95) 1,909,639 1,909,639
Pitney Bowes Credit Corporation
(5.467% due 11/01/95) 1,185,676 1,185,676
Sara Lee Corporation (5.447% due 11/01/95) 488,619 488,619
Southwestern Bell Telephone Company
(5.447% due 11/01/95) 30,000 30,000
Warner Lambert Company (5.438% due 11/01/95) 207,670 207,670
Wisconsin Electric Power Company
(5.508% due 11/01/95) 7,552 7,552
-----------
3,829,156
-----------
Total Short-Term Investments (cost $8,808,704) 8,808,704
-----------
TOTAL INVESTMENTS - 98.66% (cost $41,969,615) 46,019,916<F4>
OTHER ASSETS AND LIABILITIES - 1.34% 624,070
-----------
TOTAL NET ASSETS - 100.00% $46,643,986
===========
- --------
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1>
Interest rates vary periodically based on current market rates. Rates shown are
as of October 31, 1995.
<F2>
Interest payments in default.
<F3>
Interest rates vary periodically based on current market rates. The maturity
shown for each variable rate demand note is the later of the next scheduled
interest rate adjustment date or the date on which principal can be recovered
through demand. Information shown is as of October 31, 1995.
<F4>
Gross unrealized appreciation and depreciation of securities at October 31, 1995
for financial reporting purposes was $4,997,811 and $947,510 respectively; tax
amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial
statements.<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CARILLON CAPITAL FUND
STATEMENT OF ASSETS AND LIABILITIES
=================================================================
OCTOBER 31, 1995
<S> <C>
ASSETS
Investments in securities,
at value (cost $41,969,615) $ 46,019,916
Cash 11,292
Receivable for investment securities sold 403,271
Interest and dividends receivable 261,263
Prepaid expenses 2,136
------------
46,697,878
------------
LIABILITIES
Professional fees 18,451
Investment advisory fees 29,801
Portfolio accounting and custody fees 1,866
Transfer agency fees 964
Printing expenses 1,534
Other 1,276
------------
53,892
------------
NET ASSETS
Paid-in capital 41,848,367
Accumulated undistributed net investment income 279,832
Accumulated undistributed net realized gain 465,486
Unrealized appreciation, net 4,050,301
------------
$ 46,643,986
============
Shares outstanding
(without par value, unlimited authorization) 3,673,615
============
Net asset value and redemption price per share $ 12.70
============
Offering price per share
(Net asset value per share/.95)* $ 13.37
============
</TABLE>
* A sales charge of 5% is imposed on investments of less than
$50,000. Reduced sales charges apply for investments in excess of
this amount.
The accompanying notes are an integral part of the financial
statements.
<PAGE>
<TABLE>
<CAPTION>
CARILLON CAPITAL FUND
STATEMENT OF OPERATIONS
============================================================
YEAR ENDED OCTOBER 31, 1995
<S> <C>
INVESTMENT INCOME
Interest $ 2,042,370
Dividends (net foreign withholding taxes of $14,152) 338,548
------------
2,380,918
------------
EXPENSES
Investment advisory fees 327,862
Portfolio accounting fees 29,548
Professional fees 20,605
Trustees' fees 21,573
Custodial fees and expenses 11,027
Registration and filing fees 11,171
Transfer agency fees 10,924
Other 6,784
------------
439,494
------------
NET INVESTMENT INCOME 1,941,424
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 495,485
Net change in unrealized appreciation /
(depreciation) of investments 2,094,445
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 2,589,930
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,531,354
============
</TABLE>
The accompanying notes are an integral part of the financial
statements.
<PAGE>
<TABLE>
<CAPTION>
CARILLON CAPITAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
==================================================================
For the year ended October 31,
------------------------------
1995 1994
---- ----
<S> <C> <C>
OPERATIONS
Net investment income $ 1,941,424 $ 1,466,085
Net realized gain on investments 495,485 3,195,104
Net change in unrealized
appreciation/(depreciation) of investments 2,094,445 (2,875,627)
----------- -----------
4,531,354 1,785,562
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,797,101) (1,227,530)
Net realized gain on investments (3,369,426) (487,992)
----------- -----------
(5,166,527) (1,715,522)
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 1,012,125 6,256,782
Net asset value of shares issued to
shareholders in reinvestment of dividends 5,166,372 1,715,522
Payments for shares redeemed (748,468) (56,406)
----------- -----------
5,430,029 7,915,898
----------- -----------
NET INCREASE IN NET ASSETS 4,794,856 7,985,938
NET ASSETS
Beginning of year 41,849,130 33,863,192
----------- -----------
End of year (including
undistributed net investment income OF
$279,832 for 1995 and $286,864 for 1994) $46,643,986 $41,849,130
=========== ===========
FUND SHARE TRANSACTIONS:
Sold 81,022 481,658
Issued in reinvestment of dividends 438,699 132,777
Redeemed (61,626) (4,343)
----------- -----------
Net increase from share transactions 458,095 610,092
=========== ===========
</TABLE>
*A sales charge of 5% is imposed on investments of less
than $50,000.
Reduced sales charges apply for investments in excess of
this amount.
The accompanying notes are an integral part of the
financial statements.
<PAGE>
<PAGE>
CARILLON CAPITAL FUND
NOTES TO FINANCIAL STATEMENTS
=============================================================
OCTOBER 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Carillon Capital Fund (the Fund) is a series of Carillon Investment
Trust (the Trust) registered under the Investment Company Act of
1940, as amended, as a diversified, open-end management investment
company.
Securities valuation - Securities traded on securities exchanges
(including securities traded in both the over-the-counter market
and on an exchange), or listed on the NASDAQ National Market
System, are valued at the last sales price as of the close of the
New York Stock Exchange on the day of valuation, or if there were
no reported sales on that date, the last bid price. Securities
traded only in the over-the-counter market are valued at the last
bid price, as of the close of trading on the New York Stock
Exchange, quoted by brokers that make markets in the securities.
Other securities for which market quotations are not readily
available are valued at fair value as determined in good faith by,
or under procedures adopted by the Board of Trustees. Money market
instruments with a remaining maturity of 60 days or less are valued
at amortized cost which approximates market.
Securities transactions and investment income - Securities
transactions are recorded on the trade date (the date the order to
buy or sell is executed). Dividend income is recorded on the ex-
dividend date and interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the
identified cost basis for financial reporting and tax purposes.
The cost of investments is substantially the same for financial
reporting and tax purposes.
Federal taxes - It is the intent of the Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its net
investment income and any net realized capital gains. Therefore,
no provision for income or excise taxes has been recorded.
Dividends and capital gains distributions - Dividends from net
investment income are declared and paid quarterly by the Fund. Net
realized capital gains are distributed periodically, no less
frequently than annually. Dividends from net investment income and
capital gains distributions are recorded on the ex-dividend date.
All dividends and distributions are automatically reinvested in
additional shares of the Fund at the net asset value per share
unless the shareholder requests such dividends and distributions be
paid in cash.
The amount of dividends and distributions are determined in
accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Dividends and distributions which exceed net
investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in
excess of net realized capital gains. To the extent they exceed
net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
NOTE 2 - TRANSACTIONS WITH AFFILIATES
Investment advisory fees - The Fund pays investment advisory fees
to Carillon Advisers, Inc. (the Adviser) under terms of an
Investment Advisory Agreement. Certain officers and directors of
the Adviser are affiliated with the Fund. The Fund pays the
Adviser, as full compensation for all services and facilities
furnished, a monthly fee computed on a daily basis, at an annual
rate of .75% of the first $50,000,000, .65% of the next
$100,000,000, and .50% of all amounts over $150,000,000 of the net
assets of the Fund.
The Investment Advisory Agreement provides that if, in any calendar
quarter, the total of all ordinary business expenses applicable to
the Trust should exceed the expense limitations as required by any
applicable state law, the Adviser will reimburse the Trust for such
excess. No such reimbursements were required for the periods
presented in the financial statements.
In addition to providing investment advisory services, the Adviser
is responsible for providing certain administrative functions to
the Fund. The Adviser has entered into an Administration Agreement
with Carillon Investments, Inc. (the Distributor) under which the
Distributor furnishes substantially all of such services for an
annual fee of .20% of the Fund's average net assets. The fee is
borne by the Adviser, not the Fund.
Distribution agreement - The Distributor serves as the principal
underwriter of the shares of the Trust pursuant to a Distribution
Agreement with the Trust. Under the terms of this agreement, the
Distributor will pay all expenses related to selling and
distributing the Trust's shares, including preparing, printing and
mailing sales materials. The Distributor receives a percentage of
the offering price of fund shares sold to unaffilated parties
ranging from 5% on investment of less that $50,000 to .5% on
investments in excess of $2,500,000. During the year ended October
31, 1995, the Distributor received commissions of $315.
Other - At October 31, 1995, The Union Central Life Insurance
Company (Union Central) owned 2,999,068 shares of the Fund and
therefore is a controlling person of the Fund and is able to cast
a deciding vote on matters submitted to a vote of the Fund's
shareholders.
Union Central owns all of the outstanding stock of Carillon
Investments, Inc. and Carillon Advisers, Inc.
Each trustee who is not affiliated with the Adviser receives fees
from the Trust for services as a trustee.
NOTE 3 - SUMMARY 0F PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securites for the year ended October 31,
1995, excluding short-term securities, follow:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
----------------- -------------------
<S> <C> <C>
Common Stocks $ 8,750,476 $ 4,327,716
U.S. Government Securities 7,718,253 7,621,147
Corporate Bonds 2,037,969 2,357,420
------------- ------------
$ 18,506,698 $14,306,283
============= ============
</TABLE>
NOTE 4 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
<PAGE>
Year ended October 31,
--------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year $13.01 $13.00 $12.45 $12.48 $ 9.79
------ ------ ------ ------ ------
Investment Operations:
Net investment income .52 .35 .42 .45 .46
Net realized and
unrealized gain .73 .16 1.27 .50 2.71
------ ------ ------ ------ ------
Total from Investment
Operations 1.25 .51 1.69 .95 3.17
------ ------ ------ ------ ------
Distributions:
Net investment income (.51) (.32) (.42) (.45) (.48)
Net realized gain (1.05) (.18) (.72) (.53) --
------ ------ ------ ------ ------
Total Distribution (1.56) (.50) (1.14) (.98) (.48)
------ ------ ------ ------ ------
Net Asset Value,
End of Year $12.70 $13.01 $13.00 $12.45 $12.48
====== ====== ====== ====== ======
Total Return <F1> 10.88% 4.56% 14.50% 8.15% 32.99%
Ratios/Supplemental Data:
- ------------------------
Ratio of Expenses to
Average Net Assets 1.01% 1.05% 1.11% 1.10% 1.19%
Ratio of Net Investment
Income to Average
Net Assets 4.44% 3.89% 3.35% 3.61% 4.03%
Portfolio Turnover Rate 42.07% 53.20% 43.35% 48.03% 42.07%
Net Assets,
End of Year (000's) $46,644 $41,849 $33,863 $29,807 $27,384
<FN>
<F1>
Assumes sales load is not imposed on either intitial investment or reinvestment
of distributions.
</FN>
</TABLE>
- ---------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
During the year ended October 31, 1995, the Fund made total
distributions of $1.56 per share, of which $.51 per share is from
investment income and $1.05 per share is from net realized gains.
Of the $.51 per share, 9% qualified for the dividends-received
deduction for corporations.
<PAGE>
<PAGE>
Report of Independent Accountants
============================================================
To the Board of Trustees and Shareholders of
Carillon Capital Fund of Carillon Investment Trust
We have audited the accompanying statement of assets and
liabilities of Carillon Capital Fund, including the schedule of
investments, as of October 31, 1995, and the financial highlights,
the related statement of operations, and the statement of changes
in net assets for the year then ended. These financial statements
and financial highlights ("financial statements") are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements based on our
audits. The financial highlights for the other years presented and
the statement of changes in net assets for the year ended October
31, 1994 were audited by other auditors whose report, dated
December 2, 1994, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosure in the financial statements. Our procedures
included confirmation of securities owned as of October 31, 1995,
by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements as of October 31, 1995,
present fairly, in all material respects, the financial position of
Carillon Capital Fund as of October 31, 1995, and the results of
its operations, the changes in its net assets, and the financial
highlights for the year then ended, in conformity with generally
accepted accounting principles.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Dayton, Ohio
November 28, 1995
