(cover page with graphic square at upper left portraying a
drawing of a portion of a man's face)
(the following information is placed at the right margin)
Carillon
Capital
Fund
of
Carillon
Investment
Trust
Semiannual
Report
April 30, 1996
<PAGE>
<PAGE>
CARILLON INVESTMENT TRUST
Carillon Capital Fund
===============================================================
A Message from the President
April 30, 1996
Financial Markets
Equity and bond markets moved in opposite directions over the
last six months, as stocks continued to move higher while bond
prices were forced lower. The driving forces behind both these
market movements were changes in expectations about the direction
of the economy and Federal Reserve Board policy.
Stock prices have advanced on a stream of rising corporate
profits, a rebound in the economy from weather and strike-related
problems this winter, and record levels of new money flowing into
stock mutual funds. While last year's advance was spearheaded by
the large multinational companies, this year's bull market has
been led by smaller stocks. Indicies such as the Russell 2000
have outpaced the larger S&P Stock Index by nearly 5 percent so
far this year.
Bond prices, meanwhile, have come under pressure because the
economic rebound threatens to increase inflation and forestall
the Federal Reserve Board from lowering short-term interest
rates. Rising commodity prices in the agricultural and energy
areas, and the lack of any federal budget deals, once thought to
be so imminent, also have concerned bond investors. In addition,
there have been technical pressures on bond prices related to the
unwinding of leveraged transactions concerning imbalances in
short-term interest rates between Japanese and the US markets.
Asset Allocation
Under normal conditions, 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 April
30, 1996, six months ago, one year ago, and at a long-term normal
portfolio allocation.
<TABLE>
<CAPTION>
Carillon Capital Fund Asset Allocation
4/30/96 10/31/95 4/30/95 Long-Term
-------------------------------------------
<S> <C> <C> <C> <C>
Stocks 42% 38% 31% 63%
Bonds 43% 42% 46% 30%
Money Market 15% 20% 23% 7%
---- ---- ---- ----
Total 100% 100% 100% 100%
</TABLE>
The Capital Fund remains conservatively positioned, but increased
its exposure to common stocks during early 1996 in reaction to
advancing corporate earnings and improved market technical
factors. However, subsequent to April 30, the Fund has reduced
its stock position back below 40 percent in favor of bond
purchases because the higher interest rate environment and higher
stock prices have made bonds appear more attractive than stocks
in our valuation models. The money market position has
decreased, but remains well above normal because of the extended
nature of stock market prices from a long-term perspective.
Performance
The Fund's total return of 8.3% over the past six months has been
good, and relative performance to our benchmark of the average
flexible fund has improved. Performance remains below our goal
of providing above-average results in our fund category. The
major reason for this underperformance has been our
underweighting of stocks in the Fund's asset allocation.
Individual stock performance has been excellent, but, in
retrospect, we just have not owned enough stocks. Our bond
position, which is defensive in nature, also performed well
versus bond indices during this period of lower bond prices.
Individual stocks that performed well for the fund during the
last six months included energy-related positions--Global
Industries (+96%), Plains Resources (+69%), Swift Energy (+75%),
and Giant Industries (+57%). Also helping the Fund's performance
were ABT Building Products (+59%), NCI Building Systems (+56%)
and, the Fund's largest holding, Banco Latinoamericano de
Exportaciones ADR (+33%). Bond positions purchased in the
beleaguered retail industry including TJX Companies, The Limited,
and Parisian also aided performance as investors realized that
consumers would actually shop again.
Outlook
Looking forward, the Fund remains in a defensive position from
both an asset allocation standpoint and from the nature of its
individual stock and bond holdings. Stock market valuation
levels are at all-time highs. This does not mean stocks cannot
go higher, but it does mean that longer-term risks are well above
average in relation to potential rewards. With higher interest
rates in the bond market, fixed income securities look more
attractive than stocks over the intermediate term. We have
concentrated the Fund's individual stock holdings in undervalued
growth stocks and more defensive sectors such as the Real Estate
Investment Trusts, precious metal-related stocks, and selected
foreign issues. We believe that this diversification and caution
will reward investors with greater protection from the inevitable
slowdown in stock performance.
We appreciate the confidence you have placed in Carillon Capital
Fund and look forward to the challenge of effective, long-term
investment management.
Sincerely,
/s/ George L. Clucas
George L. Clucas, President
May 31, 1996
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
============================================================
APRIL 30, 1996
(Unaudited)
- -------------------------------------------------------------
COMMON STOCKS - 41.25%
- -------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
AUTO PARTS - 0.68%
Strattec Security Corporation* 14,000 $ 269,500
-----------
BANK & BANK HOLDING COMPANIES - 4.20%
ABN AMRO Holdings NV Sponsored ADR 8,419 435,234
Banco Latinoamericano
de Exportaciones ADR 15,000 830,625
Deutsche Bank AG Sponsored ADR* 8,370 400,455
-----------
1,666,314
-----------
BUILDING & HOUSING - 1.47%
ABT Building Products Company* 11,000 225,500
Falcon Products, Incorporated 22,000 357,500
-----------
583,000
-----------
BUILDING MATERIAL - 0.73%
NCI Building Systems, Incorporated* 8,000 290,000
-----------
BUSINESS - MECHANICS & SOFTWARE - 1.93%
DH Technology, Incorporated* 30,240 763,560
-----------
CHEMICAL - 2.03%
Bayer AG Sponsored ADR 25,000 803,705
-----------
CONTAINER - 1.84%
AEP Industries, Incorporated* 29,169 729,225
-----------
ELECTRONIC - 0.58%
Recoton Corporation* 12,000 228,000
-----------
GOLD & PRECIOUS METALS - 2.45%
Royal Oak Mines, Incorporated* 45,000 185,625
Santa Fe Pacific Gold Corporation* 15,000 223,125
TVX Gold Incorporated* 33,000 259,875
Vaal Reefs Exploration Sponsored ADR* 30,900 301,275
-----------
969,900
-----------
HEALTH CARE SERVICES - 0.64%
Rightchoice Managed Care Incorporated
- Class A* 15,000 253,125
-----------
HOSPITAL SUPPLY & SERVICES - 0.54%
Allied Healthcare Products
Incorporated 20,000 215,000
-----------
HOUSEHOLD PRODUCTS - 1.23%
Chromcraft Revington Incorporated* 7,000 162,750
Helen of Troy Limited, Bermuda* 13,000 325,000
-----------
487,750
-----------
INSURANCE - 1.16%
Gainsco Incorporated 21,000 244,125
RLI Corporation 9,520 216,580
-----------
460,705
-----------
INVESTMENT COMPANIES - 1.73%
BlackRock Strategic Term Trust 25,000 187,500
France Growth Fund, Incorporated 4,333 44,413
New Germany Fund 20,636 250,212
Templeton Global Income Fund 29,000 203,000
-----------
685,125
-----------
MANUFACTURING - MISCELLANEOUS - 0.41%
Griffon Corporation* 18,000 162,000
-----------
MACHINERY - AGRICULTURE
& CONSTRUCTION - 1.90%
Lindsay Manufacturing Company 20,038 751,425
-----------
MISCELLANEOUS - ENERGY - 1.54%
Giant Industries Incorporated 19,000 287,375
Holly Corporation 12,000 324,000
-----------
611,375
-----------
OIL & GAS - DOMESTIC - 1.71%
Horsham Corporation* 15,000 211,875
Plains Resources, Incorporated* 20,000 232,500
Swift Energy Company* 15,000 232,500
-----------
676,875
-----------
OIL & GAS - INTERNATIONAL - 1.37%
Repsol S.A. Sponsored ADR 10,000 370,000
YPF S.A. Sponsored ADR 8,000 175,000
-----------
545,000
-----------
OIL & GAS - SERVICES - 1.69%
Global Industries Incorporated* 26,000 669,500
-----------
RAILROAD - 1.13%
Illinois Central Corporation - Class A 15,000 450,000
-----------
REAL ESTATE - 8.06%
Associated Estates Realty Corporation 20,000 402,500
CBL & Associates Properties Incorporated 16,000 330,000
Duke Realty Investments Incorporated 12,000 355,500
Felcor Suite Hotels Incorporated 10,000 291,250
Health Care Property Investors,
Incorporated 6,704 211,176
IRT Property Company 25,000 237,500
LTC Properties Incorporated 14,000 215,250
Merry Land & Investment Company 18,000 378,000
Mid-America Apartment Communities 18,000 474,750
NAB Asset Corporation* 6,500 33,719
Shurgard Storage Centers Incorporated 10,400 266,500
-----------
3,196,145
-----------
SAVINGS & LOAN - 1.88%
Charter One Financial Incorporated 10,000 348,750
Standard Federal Bancorp 10,000 396,250
-----------
745,000
-----------
SERVICE - MISCELLANEOUS - 0.35%
PCA International Incorporated 10,000 138,750
-----------
Total Common Stocks
(cost $11,722,148) 16,350,979
-----------
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<TABLE>
<CAPTION>
CARILLON CAPITAL FUND
- ---------------------------------------------------------
PREFERRED STOCK - 0.90%
- ---------------------------------------------------------
SHARES VALUE
------ -----
<S> <C> <C>
METALS & MINERALS - 0.90%
Freeport McMoRan Copper & Gold 10,000 $ 358,750
Total Preferred Stocks (cost $347,888) 358,750
-----------
<CAPTION>
- ------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 10.87%
- ------------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
U.S. TREASURY NOTES - 10.87%
6.375% due 01/15/99 $1,300,000 $ 1,305,688
6.375% due 07/15/99 350,000 350,984
6.250% due 02/15/03 500,000 491,093
5.875% due 02/15/04 400,000 381,625
7.250% due 05/15/04 500,000 517,813
7.500% due 02/15/05 1,200,000 1,263,000
-----------
Total U.S. Treasury Notes
(cost $4,297,890) 4,310,203
<CAPTION>
- ---------------------------------------------------------
MORTGAGE - BACKED SECURITIES - 25.50%
- ---------------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS - 17.39%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 5.12%
1422 FA (5.970% due 11/15/07)<F1> $ 500,000 $ 496,750
1622 H (6.250% due 01/15/09) 386,547 374,472
77 F (8.500% due 06/15/17) 278,314 279,333
1559 VP (5.500 % due 02/15/20) 510,000 476,656
1631 SB (6.527% due 12/15/23)<F1> 755,000 401,094
-----------
2,028,305
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 11.06%
Remic 93-12 ED (7.500% due 02/25/06) 1,000,000 1,007,380
Remic 92-18 HC (7.500% due 03/25/07) 400,000 397,956
Remic 93-163 PN (7.000% due 07/25/07) 250,000 244,357
Remic 92-119 E (8.000% due 07/25/20) 500,000 509,650
Remic 92-112 (8.000% due 12/25/20) 780,000 791,177
Remic 93-127 FA(5.770% due 10/25/21)<F1> 500,000 476,730
Remic 92-66 F (5.969% due 05/25/22)<F1> 497,877 497,997
Remic 93-119 SB (7.508% due 07/25/23)<F1> 783,051 461,515
-----------
4,386,762
PRIVATE SECTOR - 1.21%
Merrill Lynch Mortgage Investors 92-FB
(6.438% due 09/15/17)<F1> 500,000 480,940
-----------
Total Collateralized Mortgage Obligations 6,896,007
-----------
FEDERAL HOME LOAN MORTGAGE
CORPORATION -3.16%
7.500% due 06/01/07 59,699 60,093
8.250% due 03/01/12 134,544 138,995
8.500% due 03/01/16 236,511 244,898
7.500% due 07/01/17 124,527 123,513
11.000% due 04/01/19 200,198 222,328
10.500% due 05/01/19 135,854 149,863
11.000% due 11/01/19 282,442 313,663
-----------
1,253,353
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 3.90%
9.500% due 09/01/05 31,797 33,500
6.000% due 12/01/08 343,981 328,230
5.500% due 01/01/09 352,285 331,113
6.000% due 03/01/09 265,491 253,334
5.500% due 04/01/09 336,081 314,609
6.500% due 02/01/26 305,999 286,875
-----------
1,547,661
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 1.05%
10.250% due 04/15/16 21,674 23,645
9.000% due 11/15/16 129,083 136,876
9.500% due 05/15/18 77,943 83,472
9.000% due 12/15/19 164,354 173,834
-----------
417,827
-----------
Total Mortgage-Backed Securities
(cost $10,308,556) 10,114,848
-----------
<CAPTION>
- -------------------------------------------------------
CORPORATE BONDS AND NOTES - 6.85%
- -------------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
BANKS AND BANK HOLDING COMPANIES - 1.35%
Boatmens Bancshares, Inc. Sub. Note
(9.250% due 11/01/01) $ 240,000 $ 263,965
Comerica Inc., Sub. Note
(9.750% due 05/01/99) 250,000 269,705
-----------
533,670
-----------
GAMING - 0.66%
Circus Circus Enterprises, Inc.
Senior Sub. Note (10.625% due 06/15/97) 250,000 261,500
-----------
HOMEBUILDING / CONSTRUCTION - 0.65%
Toll Corporation Senior Sub. Note
(10.500% due 03/15/02) 250,000 258,750
INSURANCE - 0.63%
The Penn Central Corporation
(9.750% due 08/01/99) 120,000 124,950
Reliance Financial Services Corporation
Senior Note (9.480% due 11/01/00)<F1> 125,000 126,094
-----------
251,044
-----------
OIL & GAS EXPLORATION SERVICES - 0.68%
Rowan Companies, Inc. Senior Note
(11.875% due 12/01/01) 250,000 270,625
REAL ESTATE - 0.62%
Pacific Gulf Properties, Incorporated
(8.375% due 02/15/01) 250,000 244,375
SAVINGS & LOAN - 0.34%
Golden West Financial Corporation
Sub. Note (10.250% due 12/01/00) 120,000 135,527
TELEPHONE & TELECOMMUNICATIONS - 0.40%
United Telecommunications, Inc. Note
(9.750% due 04/01/00) 144,000 157,132
UTILITIES - ELECTRIC - 1.52%
Connecticut Light & Power Company
1st Mtg. (7.625% due 04/01/97) 296,000 296,310
New Orleans Public Service Inc.
1st Mtg. Note (8.670% due 04/01/05)<F1> 300,000 305,983
-----------
602,293
-----------
Total Corporate Bonds and Notes
(cost $2,590,475) 2,714,916
-----------
<CAPTION>
CARILLON CAPITAL FUND
- -------------------------------------------------
SHORT-TERM INVESTMENTS - 13.80%
- -------------------------------------------------
PRINCIPAL VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER - 5.04%
Columbia Healthcare Corporation
(5.400% due 05/14/96) $1,000,000 $ 998,050
Union Oil Company of California
(5.470% due 05/07/96) 1,000,000 999,088
-----------
1,997,138
-----------
VARIABLE RATE DEMAND NOTES<F2> - 8.76%
General Mills, Inc.
(5.020% due 05/01/96) 353,305 353,305
Pitney Bowes Credit Corporation
(5.033% due 05/01/96) 341,217 341,217
Sara Lee Corporation
(5.013% due 05/01/96) 2,267,975 2,267,975
Southwestern Bell Telephone Company
(5.013% due 05/01/96) 145,368 145,368
Wisconsin Electric Power Company
(5.074% due 05/01/96) 364,421 364,421
-----------
3,472,286
-----------
Total Short-Term Investments
(cost $5,469,424) 5,469,424
-----------
TOTAL INVESTMENTS - 99.17%
(cost $34,736,380) 39,319,120<F3>
OTHER ASSETS AND LIABILITIES - 0.83% 330,977
-----------
TOTAL NET ASSETS - 100.00% $39,650,097
===========
- ------------------
*Non-income producing
(ADR) American Depository Receipt
<FN>
<F1>
Interest rates vary periodically based on current market rates. Rates shown
are as of April 30, 1996.
<F2>
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 April 30, 1996.
<F3>
Gross unrealized appreciation and depreciation of securities at April 30,
1996 for financial reporting purposes was $5,286,219 and $703,479
respectively; tax amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
<PAGE>
CARILLON CAPITAL FUND
STATEMENT OF ASSETS AND LIABILITIES
=================================================
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value
(cost $34,736,380) $39,319,120
Cash ---
Receivable for investment securities sold 110,191
Interest and dividends receivable 260,918
Prepaid expenses 6,597
-----------
39,696,826
-----------
LIABILITIES
Investment advisory fees 24,336
Professional fees 11,963
Portfolio accounting and custody fees 5,063
Printing expenses 2,253
Transfer agency fees 1,723
Other 1,391
-----------
46,729
-----------
NET ASSETS
Paid-in capital 33,185,993
Accumulated undistributed net investment income 201,712
Accumulated undistributed net realized gain 1,679,652
Unrealized appreciation, net 4,582,740
-----------
$39,650,097
===========
Shares outstanding (without par value,
unlimited authorization) 2,998,628
===========
Net asset value and redemption price per share $ 13.22
===========
Offering price per share
(Net asset value per share/.95)* $ 13.92
===========
</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
====================================================
For the Six Months Ended April 30, 1996
(Unaudited)
<S> <C>
INVESTMENT INCOME
Interest $ 944,419
Dividends
(net foreign withholding taxes of $5,671) 247,915
-----------
1,192,334
-----------
EXPENSES
Investment advisory fees 156,443
Portfolio accounting fees 17,213
Trustees' fees and expenses 10,015
Custodial fees and expenses 6,235
Registration and filing fees 6,061
Transfer agency fees 5,361
Professional fees 4,830
Other 2,897
-----------
209,055
-----------
NET INVESTMENT INCOME 983,279
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 1,654,735
Net change in unrealized appreciation/
(depreciation) of investments 532,439
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 2,187,174
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 3,170,453
===========
</TABLE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CARILLON CAPITAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
=======================================================
Six Months
Ended Year Ended
April 30, 1996 October 31, 1995
-------------- ----------------
(Unaudited)
<S> <C> <C>
OPERATIONS
Net investment income $ 983,279 $ 1,941,424
Net realized gain on investments 1,654,735 495,485
Net change in unrealized appreciation/
(depreciation) of investments 532,439 2,094,445
----------- -----------
3,170,453 4,531,354
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,061,399) (1,797,101)
Net realized gain on investments (440,569) (3,369,426)
----------- -----------
(1,501,968) (5,166,527)
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 16,675 1,012,125
Net asset value of shares issued
to shareholders in reinvestment
of dividends 1,501,873 5,166,372
Payments for shares redeemed (10,180,922) (748,468)
----------- -----------
(8,662,374) 5,430,029
----------- -----------
NET INCREASE / (DECREASE) IN NET ASSETS (6,993,889) 4,794,856
NET ASSETS
Beginning of year 46,643,986 41,849,130
----------- -----------
End of year (including undistributed
net investment income of
$201,712 at April 30, 1996,
and $279,832 at October 31, 1995) $39,650,097 $46,643,986
=========== ===========
FUND SHARE TRANSACTIONS:
Sold 1,280 81,022
Issued in reinvestment of dividends 117,292 438,699
Redeemed (793,559) (61,626)
----------- -----------
Net increase/(decrease)
from share transactions (674,987) 458,095
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
financial statements.<PAGE>
CARILLON CAPITAL FUND
NOTES TO FINANCIAL STATEMENTS
=====================================================
APRIL 30, 1996
(Unaudited)
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. The Fund seeks to provide the
highest total return through a combination of income and capital
appreciation consistent with the reasonable risks associated with
an investment portfolio of above average quality by investing in
equity securities, debt instruments, and money market
instruments.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
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
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. All amortization of discounts is recognized currently
under the effective interest method. 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
unaffiliated parties ranging from 5% on investment of less that
$50,000 to .5% on investments in excess of $2,500,000.
Other - At April 30, 1996, The Union Central Life Insurance
Company (Union Central) owned 2,313,707 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 OF PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of securities for the six months ended April
30, 1996, excluding short-term securities, follow:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
<S> <C> <C>
Common Stocks $ 5,366,139 $ 8,970,056
U.S. Government Securities 4,120,831 5,685,379
Corporate Bonds 976,966 1,456,458
----------- -----------
$10,463,936 $16,111,893
=========== ===========
</TABLE>
NOTE 4 - FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Computed on the basis of a share of capital stock outstanding throughout the
period.
Six Months
Ended
April 30, 1996 Year ended October 31,
-------------- -----------------------------------
(Unaudited) 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $12.70 $13.01 $13.00 $12.45 $12.48 $ 9.79
------- ------- ------- ------- ------- -------
Investment Operations:
Net investment income .36 .52 .35 .42 .45 .46
Net realized and
unrealized gain .60 .73 .16 1.27 .50 2.71
------- ------- ------- ------- ------- -------
Total from
Investment Operations .96 1.25 .51 1.69 .95 3.17
------- ------- ------- ------- ------- -------
Distributions:
Net investment income (.32) (.51) (.32) (.42) (.45) (.48)
Net realized gain (.12) (1.05) (.18) (.72) (.53) ---
Total Distributions (.44) (1.56) (.50) (1.14) (.98) (.48)
------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period $13.22 $12.70 $13.01 $13.00 $12.45 $12.48
======= ======= ======= ======= ======= =======
Total Return<F1> 7.69% 10.88% 4.56% 14.50% 8.15% 32.99%
Ratios/Supplemental Data:
Net Assets,
End of Period (000's) $39,650 $46,644 $41,849 $33,863 $29,807 $27,384
Ratio of Expenses to
Average Net Assets .99% 1.01% 1.05% 1.11% 1.10% 1.19%
Ratio of Net Investment
Income to Average
Net Assets 4.63% 4.44% 3.89% 3.35% 3.61% 4.03%
Portfolio Turnover Rate 59.59% 42.07% 53.20% 43.35% 48.03% 42.07%
Average Commission
Rate Paid .0634
<FN>
<F1>
Assumes sales load is not imposed on either initial investment or
reinvestment of distributions.
</FN>
</TABLE>
