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CARILLON
CAPITAL
FUND
OF
CARILLON
INVESTMENT
TRUST
SEMIANNUAL
REPORT
April 30, 1997
<PAGE>
CARILLON INVESTMENT TRUST - Carillon Capital Fund
SEMIANNUAL REPORT-A MESSAGE FROM THE PRESIDENT
April 30, 1997
Financial Markets
Stock prices moved briskly higher during the last six months
with the Dow Jones Industrial Average moving from just under the
6,000 level on October 31, 1996, to just above the 7,000 level
on April 30, 1997. The advance was interrupted once during late
March by a sharp sell-off that cut almost 10 percent off the
Dow, but lasted less than a month and recovered all its lost
ground by early May. Stocks were propelled higher by many of
the same elements that have done so before high levels of
corporate profitability, strong economic growth coupled with
moderate inflation, and strong consumer cash flows into equity
mutual funds.
Large, multinational stocks led the advance due to strong
earnings, the influence of index fund buyers, and the liquidity
available in these issues for large-scale buyers. Smaller
capitalization stocks were unable to keep pace with the movement
in larger stocks and in many cases, were only able to struggle
back to their highs of last summer despite the surge in major
market indexes. Many former market favorites in the technology
area such as Internet stocks, year 2000 stocks and networking
stocks sold off sharply.
Fixed income yields moved erratically higher during the period
as concerns grew over what effect the strength of the economy
would have on future inflation and the Federal Reserve Board
raised short-term interest rates for the first time since early
1995. However, low inflation numbers, some signs of slower
growth in the second quarter of 1997, and a budget accord in
Washington all tended to keep interest rates from moving much
higher. Yields on most bonds were about 25 basis points, or
one-quarter of one percent, higher during the period. High
yield bonds were the best performers, as strong economic growth
helped improve corporate financial strength.
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, 1997, six months ago, one year ago, and at a long-term
normal portfolio allocation.
------------------------------------
<TABLE>
<CAPTION>
Carillon Capital Fund Asset Allocation
4/30/97 10/31/96 4/30/96 Long-Term
------- -------- ------- ---------
<S> <C> <C> <C> <C>
Stocks 35% 37% 42% 63%
Bonds 43% 45% 43% 30%
Money Market 22% 18% 15% 7%
---- ---- ---- ----
Total 100% 100% 100% 100%
</TABLE>
The Capital Fund remains conservatively positioned having
reduced its stock position below 40 percent in favor of
increased levels of cash. The money market 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 1.38 percent over the past six months
has been disappointing. During the period, we failed to own
enough stocks and did not have our normal good performance from
the stocks we did own. Smaller stocks, where we believe greater
long-term value resides, did not respond to the same elements
that moved larger stocks higher. Specifically, the return was
hurt by a pullback in some foreign securities, two domestic
stocks with earnings disppointments (DH Technology and GT
Bicycles) and continued weakness in our precious metal related
stocks.
Earnings for most of our companies continue to be strong and I
believe the weak relative stock performance is temporary. The
median expected increase in earnings for 1997 is 14 percent for
our portfolio. Eventually, earnings do drive stock prices. The
leading gainers during the last six months included
Carbide/Graphite Group, FPIC Insurance Group, Helen of Troy and
Stone Energy.
Outlook
Stock prices are being valued as if the present favorable
economic conditions will last for a very long time. If we are
indeed in a new environment in which the world is entering a
much more peaceful, prosperous, and stable period, then the
current rates of high corporate earnings growth combined with
low inflation may last. However, if this is only a brief
respite from the more cyclical conditions that represented the
first 90 years of this century, then stock prices are more
overvalued than they have ever been. Overvaluation does not
mean stocks cannot go higher, but means longer-term risks are
well above-average in relation to potential rewards. Because of
this viewpoint, our fund will not fully participate if the major
domestic stock advance continues, but we also do not plan to
fully participate in a major stock decline. Our primary concern
in this market environment is the prudent preservation of
capital during a market decline which will provide capital to
invest wisely in anticipation of longer-term advances. We are
unsure of the timing of a major decline, but believe it will be
caused by a combination of slower corporate earnings growth,
weakness in the dollar that will cause foreign sales of U.S.
Treasury Bonds, and problems with the high level of consumer
debt.
The Fund remains in a defensive position from both an asset
allocation standpoint and from the nature of its individual
stock and bond holdings. Recent investment activity has
included sales of European stocks and some underperforming
domestic issues while purchases have included small, fast-
growing companies that we believe are not being fully priced by
the current market and energy related companies that will
benefit from higher energy production and prices. The Fund is
positioned well for a return to a world where not all outcomes
are good ones.
We appreciate the confidence you have placed in the 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, 1997
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>
CARILLON CAPITAL FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
April 30, 1997
(Unaudited)
<S> <C>
ASSETS
Investments in securities, at value
(cost $40,623,451) $43,005,562
Interest and dividends receivable 328,798
Prepaid expenses 6,761
-----------
43,341,121
-----------
LIABILITIES
Investment advisory fees 26,744
Professional fees 8,324
Portfolio accounting and custody fees 7,339
Printing expenses 2,855
Transfer agency fees 2,006
Other 2,682
-----------
49,950
-----------
NET ASSETS
Paid-in capital 38,812,497
Accumulated undistributed
net investment income 225,993
Accumulated undistributed net realized gain 1,870,570
Unrealized appreciation, net 2,382,111
-----------
$43,291,171
===========
Shares outstanding (without par value,
unlimited authorization) 3,432,788
===========
Net asset value and redemption price per share $ 12.61
===========
Offering price per share
(Net asset value per share/.95)* $ 13.27
===========
</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>
CARILLON CAPITAL FUND
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended April 30, 1997
(Unaudited)
<S> <C>
INVESTMENT INCOME
Interest $ 905,492
Dividends
(net foreign withholding taxes of $4,889) 203,203
----------
1,108,695
----------
EXPENSES
Investment advisory fees 163,681
Portfolio accounting fees 15,962
Trustees' fees and expenses 9,905
Custodial fees and expenses 6,617
Registration and filing fees 6,010
Transfer agency fees 5,426
Professional fees 8,598
Other 6,634
----------
222,833
----------
NET INVESTMENT INCOME 885,862
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 1,842,465
Net change in unrealized
appreciation/(depreciation) of investments (2,114,107)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS (271,642)
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 614,220
==========
</TABLE>
The accompanying notes are an integral part of the
financial statements
<PAGE>
CARILLON CAPITAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1997 October 31, 1996
-------------- ----------------
(Unaudited)
<S> <C> <C>
OPERATIONS
Net investment income $ 885,862 $ 1,871,475
Net realized gain on investments 1,842,465 3,323,005
Net change in unrealized
appreciation/(depreciation)
of investments (2,114,107) 445,916
----------- -----------
614,220 5,640,396
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (882,909) (1,913,442)
Net realized gain on investments (3,334,642) (440,569)
----------- -----------
(4,217,551) (2,354,011)
----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from shares sold 22,460 950,895
Net asset value of shares issued
to shareholders in reinvestment
of dividends 4,217,261 2,353,855
Payments for shares redeemed (216,265) (10,364,075)
----------- -----------
4,023,456 (7,059,325)
----------- -----------
NET INCREASE/(DECREASE)
IN NET ASSETS 420,125 (3,772,940)
NET ASSETS
Beginning of year 42,871,046 46,643,986
----------- -----------
End of year $43,291,171 $42,871,046
=========== ===========
Undistributed Net
Investment Income $ 225,993 $ 223,040
=========== ===========
FUND SHARE TRANSACTIONS:
Sold 1,719 71,179
Issued in reinvestment
of dividends 328,440 181,443
Redeemed (16,411) (807,197)
----------- -----------
Net (decrease)
from share transactions 313,748 (554,575)
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
financial statements
<PAGE>
Carillon Capital Fund
SCHEDULE OF INVESTMENTS
APRIL 30 1997
(Unaudited)
COMMON STOCKS -33.71%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BANKING AND FINANCIAL SERVICES - 7.90%
Banco BHIF ADR 13,000 $ 260,000
Banco Latinoamericano de Exportaciones ADR 5,000 229,375
BlackRock Strategic Term Trust 25,000 196,875
Charter One Financial Incorporated 10,500 467,250
Deutsche Bank AG Sponsored ADR 8,370 441,781
FPIC Insurance Group Incorporated* 15,000 270,000
New Germany Fund Incorporated 22,796 327,693
Templeton Global Income Fund Incorporated 29,000 210,250
Washington Federal Incorporated 14,300 343,200
Korea Fund Incorporated 15,960 205,485
Thai Fund Incorporated 17,175 261,919
Penncorp Financial Group Incorporated 6,000 206,250
----------
3,420,078
----------
CAPITAL GOODS - 1.98%
Lindsay Manufacturing Company 30,057 856,625
----------
CONSUMER CYCLICAL - 4.24%
Chromcraft Revington Incorporated* 7,000 193,375
Griffon Corporation* 18,000 218,250
Helen of Troy Limited, Bermuda 8,000 186,000
Strattec Security Corporation* 14,000 234,500
Southern Energy Homes 24,000 249,000
NCI Building Systems Incorporated 11,000 341,000
Winsloew Furniture Incorporated* 25,000 225,000
Footstar Incorporated* 9,000 186,750
----------
1,833,875
----------
CONSUMER NON-DURABLE - .36%
GT Bicycles Incorporated* 20,000 155,000
----------
ENERGY - 3.02%
Giant Industries Incorporated 19,000 228,000
Stone Energy Corporation* 7,000 187,250
YPF SA Sponsored ADR 18,000 497,250
Cross Timbers Oil Company 7,500 116,250
Offshore Energy Development* 11,300 43,788
Offshore Logistics Incorporated* 13,000 234,000
----------
1,306,538
----------
MANUFACTURING - 7.58%
ABT Building Products Corporation* 11,000 236,500
AEP Industries, Incorporated 17,169 811,235
Bayer AG Sponsored ADR 6,000 238,730
BWAY Corporation* 11,000 226,875
Carbide Graphite Group Incorporated* 18,000 407,250
Royal Oak Mines Incorporated* 45,000 112,500
Santa Fe Pacific Gold Corporation 15,000 221,250
TVX Gold Incorporated 52,000 292,500
Vaal Reefs Exploration & Mining Limited ADR 30,900 181,538
York Group, Incorporated 18,000 46,500
Coeur D Alene Mines 15,000 206,250
----------
3,281,128
----------
REAL ESTATE - 7.14%
Associated Estates Realty Corporation 20,000 440,000
LTC Properties Incorporated 14,000 234,500
Merry Land & Investment Company 18,000 369,000
Mid-America Apartment Communities Incorporated 12,000 310,500
Winston Hotels, Incorporated 25,000 318,750
City Developments Limited 25,000 202,235
United Dominion Realty Trust 25,000 343,750
Evans Withcombe Residential 10,000 197,500
Hospitality Properties Trust 12,000 370,500
Pacific Gulf Properties 14,500 306,313
----------
3,093,048
----------
TECHNOLOGY - 1.49%
DH Technology Incorporated* 30,240 415,800
Recoton Corporation* 20,000 230,000
----------
645,800
----------
Total Common Stock (cost $12,203,566) 14,592,092
----------
PREFERRED STOCK - .72%
Freeport McMoRan Copper & Gold Series 10,000 313,750
----------
Total Preferred Stock (cost $347,888)
U.S. TREASURY OBLIGATIONS - 18.37%
<CAPTION>
PRINCIPAL VALUE
<S> <C> <C>
U.S. TREASURY NOTES - 18.37%
6.375% due 01/15/99 $1,000,000 $1,002,813
6.250% due 02/15/03 500,000 491,094
5.875% due 02/15/04 1,200,000 1,148,250
7.250% due 05/15/04 1,300,000 1,340,219
7.875% due 11/15/04 1,800,000 1,922,063
7.500% due 02/15/05 800,000 837,500
5.750% due 12/31/98 500,000 496,563
5.750% due 08/15/03 750,000 715,547
----------
Total U.S. Treasury Notes (cost $7,951,518) 7,954,049
----------
COLLATERALIZED MORTGAGE OBLIGATIONS - 14.03%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 4.02%
1422 FA (6.270% due 11/15/07)(2) 500,000 476,059
1662 H (6.250% due 01/15/09) 334,745 328,321
1559 VP (5.500 % due 02/15/20)(2) 510,000 484,760
1631 SB (6.392% due 12/15/23) 755,000 449,485
----------
1,738,625
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.88%
Remic 93-12 ED (7.500% due 02/25/06) 1,000,000 1,014,796
Remic 92-18 HC (7.500% due 03/25/07) 400,000 403,788
Remic 93-163 PN (7.000% due 07/25/07) 250,000 247,005
Remic 92-119 E (8.000% due 07/25/20) 500,000 509,564
Remic 92-112 E (8.000% due 12/25/20) 780,000 798,910
Remic 93-127 FA (5.880% due 10/25/21)(2) 500,000 463,100
Remic 92-66 F (6.156% due 05/25/22)(2) 405,454 406,958
----------
3,844,121
----------
PRIVATE SECTOR - 1.13%
Merrill Lynch Mortgage Investors 92-FB
(6.500% due 09/15/17) 500,000 490,000
----------
Total Collateralized Mortgage Obligations
(cost $6,194,617) 6,072,746
----------
MORTGAGE BACKED SECURITIES - 7.12%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.08%
7.500% due 06/01/07 40,466 40,644
8.250% due 03/01/12 116,541 120,058
8.500% due 03/01/16 164,997 171,046
7.500% due 07/01/17 82,185 81,830
11.000% due 04/01/19 152,155 168,792
10.500% due 05/01/19 134,355 148,000
11.000% due 11/01/19 154,205 171,066
----------
901,436
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.35%
9.500% due 09/01/05 24,046 25,147
6.000% due 12/01/08 304,054 291,758
5.500% due 01/01/09 316,027 296,594
6.000% due 03/01/09 237,073 227,485
5.500% due 04/01/09 316,309 295,518
6.500% due 02/01/26 298,990 282,366
7.000% due 03/01/26 478,884 464,480
----------
1,883,348
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - .69%
10.250% due 04/15/16 21,345 23,222
9.000% due 11/15/16 90,286 96,469
9.500% due 05/15/18 49,412 53,165
9.000% due 12/15/19 15,298 122,717
----------
295,573
----------
Total Mortgage-Backed Securities
(cost $2,958,271) 3,080,357
----------
CORPORATE BONDS AND NOTES - 3.64%
BANKING & FINANCIAL SERVICE - .93%
Zions Trust (8.536% due 12/15/26) 400,000 404,532
----------
SERVICE - .58%
Circus Circus Enterprises Incorporated
(10.625% due 06/15/97) 250,000 251,190
----------
TECHNOLOGY - .83%
Lowen Group International Incorporated
(8.250% due 04/15/03) 350,000 354,048
----------
UTILITIES - 1.30%
New Orleans Public Service Incorporated
(8.670% due 04/01/05) 300,000 305,576
TCI Communications Incorporated
(8.650% due 9/15/04) 250,000 259,113
----------
564,689
----------
Total Corporate Bonds (cost $1,549,483) 1,574,459
----------
SHORT-TERM INVESTMENTS - 21.75%
VARIABLE RATE DEMAND NOTES - 21.75%
Eli Lilly (5.104% due 05/06/97) 10,588 10,588
Johnson Controls, Incorporated
(5.276% due 05/07/97) 3,195,423 3,195,423
General Mills Incorporated
(5.245% due 05/0797) 608,817 608,817
Sara Lee (5.224% due 05/07/97) 2,105,836 2,105,836
American Family Financial Services
(5.256% due 05/07/97) 2,427,635 2,427,635
Pitney Bowes Credit Corporation
(5.245% due 05/07/97) 748,191 748,191
Wisconsin Electric Power Corporation
(5.296% due 05/07/97) 321,618 321,618
----------
Total Short-Term Investments (cost $9,418,108) 9,418,108
----------
TOTAL INVESTMENTS - 99.34%
(cost $40,623,451) 43,005,562
----------
OTHER ASSETS AND LIABILITIES - .66% 285,609
----------
TOTAL NET ASSETS - 100.00% $43,291,171
===========
- ----------
*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, 1997.
<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, 1997.
<F3> Gross unrealized appreciation and depreciation of securities April
30,1997 for financial reporting purposes was $3,632,518 and $1,250,407
respectively; tax amounts were substantially the same.
</FN>
</TABLE>
The accompanying notes are an integral part of
the financial statements.
<PAGE>
CARILLON CAPITAL FUND
NOTES TO FINANCIAL STATEMENTS
==============================================================
April 30, 1997
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 accretion of discounts is recognized currently under
the effective interest method. Amortization of premiums is
recognized currently under the straight-line 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, 1997, The Union Central Life Insurance
Company (Union Central) owned 2,688,095 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 year ended April 30,
1997, excluding short-term securities, follow:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
----------------- -------------------
<S> <C> <C>
Common Stocks $4,592,033 $5,292,950
U.S. Government Securities 2,185,055 1,002,132
Corporate Bonds 398,904 1,737,965
---------- ----------
$7,175,992 $8,033,047
========== ==========
</TABLE>
<PAGE>
NOTE 4 - FINANCIAL HIGHLIGHTS
Computed on the basis of a share of capital stock outstanding
throughout the year.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year ended October 31
---------------- --------------------------------------
(Unaudited)
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of year $13.75 $12.70 $13.01 $13.00 $12.45 $12.48
------ ------ ------ ------ ------ ------
Investment Operations:
Net investment income .26 .60 .52 .35 .42 .45
Net realized and
unrealized gain .24 1.17 .73 .16 1.27 .50
------ ------ ------ ------ ------ ------
Total from
Investment Operations .50 1.77 1.25 .51 1.69 .95
------ ------ ------ ------ ------ ------
Distributions: (.57) (.60) (.51) (.32) (.42) (.45)
Net realized gain (1.07) (.12) (1.05) (.18) (.72) (.53)
------ ------ ------ ------ ------ ------
Total Distributions (1.64) (.72) (1.56) (.50) (1.14) (.98)
------ ------ ------ ------ ------ ------
Net Asset Value,
End of year $12.61 $13.75 $12.70 $13.01 $13.00 $12.45
====== ====== ====== ====== ====== ======
Total Return<F1> 1.38% 14.38% 10.88% 4.56% 4.50% 8.15%
Ratios/Supplemental
Data:
Net Assets,
End of year (000's) $43,291 $42,871 $46,644 $41,849 $33,863 $29,807
Ratio of Expenses to
Average Net Assets 1.03% 1.02% 1.01% 1.05% 1.11% 1.10%
Ratio of Net Investment
Income to Average
Net Assets 4.08% 4.52% 4.44% 3.89% 3.35% 3.61%
Portfolio Turnover Rate 42.29% 47.43% 42.07% 53.20% 43.35% 48.03%
Average Commission
Rate Paid <F2> .0612 .0631
<FN>
<F1> Assumes sales load is not imposed on either initial investment or
reinvestment of distributions.
<F2> Represents the dollar amount of commissions paid on Portfolio
transactions divided by the total number of shares purchased and sold for
which commissions were charged. Disclosure not required for periods prior
to fiscal 1996.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 40,623,451
<INVESTMENTS-AT-VALUE> 43,005,562
<RECEIVABLES> 328,798
<ASSETS-OTHER> 6,761
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 43,341,121
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 49,950
<TOTAL-LIABILITIES> 49,950
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 38,812,497
<SHARES-COMMON-STOCK> 3,432,788
<SHARES-COMMON-PRIOR> 3,119,040
<ACCUMULATED-NII-CURRENT> 225,993
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,870,570
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,382,111
<NET-ASSETS> 43,291,171
<DIVIDEND-INCOME> 203,203
<INTEREST-INCOME> 905,492
<OTHER-INCOME> 0
<EXPENSES-NET> 222,833
<NET-INVESTMENT-INCOME> 885,862
<REALIZED-GAINS-CURRENT> 1,842,465
<APPREC-INCREASE-CURRENT> (2,114,107)
<NET-CHANGE-FROM-OPS> 614,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (882,909)
<DISTRIBUTIONS-OF-GAINS> (3,334,642)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,719
<NUMBER-OF-SHARES-REDEEMED> 328,440
<SHARES-REINVESTED> (16,411)
<NET-CHANGE-IN-ASSETS> 420,125
<ACCUMULATED-NII-PRIOR> 225,993
<ACCUMULATED-GAINS-PRIOR> 3,362,747
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 163,681
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 222,833
<AVERAGE-NET-ASSETS> 44,012,620
<PER-SHARE-NAV-BEGIN> 13.75
<PER-SHARE-NII> .26
<PER-SHARE-GAIN-APPREC> .24
<PER-SHARE-DIVIDEND> (.57)
<PER-SHARE-DISTRIBUTIONS> (1.07)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.61
<EXPENSE-RATIO> 1.03
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
