Annual Report
REAL SILK INVESTMENTS, INCORPORATED
Indianapolis Indiana
Year Ended December 31, 1996
REAL SILK INVESTMENTS, INCORPORATED
____________________
Officers
D. R. Efroymson. . . . . President and Treasurer
L. M. Efroymson. . . . . . . . . .Vice President
M. A. Singer . . . . . .Assistant Vice President
J. D. Hagan. . . . . . .Assistant Vice President
L. A. Cox. . . . . . . . . . . . . . . Secretary
D. A. Link . . . . . . . . . Assistant Secretary
_____________________
Directors
Daniel R. Efroymson Herbert D. Falender
Loralei M. Efroymson Norman C. Kleifgen, Jr.
Terry W. Bowmaster
Mary Ann Stein
Samuel L. Odle
Transfer Agent and Registrar
ChaseMellon Shareholder Services, L.L.C.
Pittsburgh, Pennsylvania
Custodian of Securities
NBD Bank, N. A.
Indianapolis, Indiana
Independent Auditors
KPMG Peat Marwick LLP
Indianapolis, Indiana
_____________________
Independent Auditors' Report
The Stockholders and Board of Directors
Real Silk Investments, Incorporated:
We have audited the accompanying statement of assets and liabilities of Real
Silk Investments, Incorporated, including the schedule of investments in
securities, as of December 31, 1996, and the related statement of operations
for the year then ended, and the statements of changes in net assets and the
financial highlights for each of the years in the two-year period ended
December 31, 1996. These financial statements and financial highlights are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audit. The financial highlights for the years ended
December 31, 1992 through December 31, 1994 were audited by other auditors
whose report thereon, dated January 19, 1995, expressed an unqualified
opinion.
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 and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1996 by correspondence with the
custodian. 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 and financial highlights referred
to above present fairly, in all material respects, the financial position of
Real Silk Investments, Incorporated at December 31, 1996, the results of its
operations for the year then ended, and the changes in its net assets and
the financial highlights for each of years in the two-year period ended
December 31, 1996 in conformity with generally accepted accounting principles.
Indianapolis, Indiana
January 23, 1997
REAL SILK INVESTMENTS, INCORPORATED
Statement of Assets and Liabilities
December 31, 1996
Assets
Investments in securities (unaffiliated issuers), at market value:
Money market funds (cost: $551,331) $ 551,331
Common shares (cost: $11,790,931) 93,567,783
U.S. government and agency securities (cost: $8,322,948) 8,481,790
Other bonds and notes (cost: $1,882,793) 1,948,803
Total investments in securities (unaffiliated issuers)104,549,707
Investments in securities (affiliated issuers), at market value:
Common shares (cost: $147,786) (note 4) 9,525,000
Total investments in securities 114,074,707
Cash 12,268
Accrued interest and dividends receivable 343,777
Office furniture and equipment, less accumulated
depreciation of $42,909 42,131
Other assets 12,149
Total assets 114,485,032
Liabilities
Accounts payable and accrued expenses 161,097
Deferred federal income tax payable on net built-in gains (note 1) 12,976,591
Total liabilities 13,137,688
Net Assets
Equivalent to $615.41 per share based on 164,683 shares of
$5.00 par value common stock outstanding (note 2) $ 101,347,344
See accompanying notes to financial statements.
REAL SILK INVESTMENTS, INCORPORATED
Statement of Operations
Year ended December 31, 1996
Investment income:
Dividends, including affiliated issuers of $264,000 (note 4) $ 2,128,908
Interest on securities from unaffiliated issuers 810,375
Total income 2,939,283
Expenses:
Officers' salaries 102,293
Salaries and wages 35,378
Taxes other than federal income tax 49,579
Legal, auditing and other professional services 38,464
Custodian fees 8,040
Directors' fees 8,900
Office expense and supplies 5,388
Insurance 9,881
Rent (note 7) 49,919
Pension (note 5) 6,583
Depreciation 8,731
Dues and subscriptions 12,658
Computer expense 10,703
Equipment lease 16,380
Sundry 14,140
Total expenses 377,037
Net investment income 2,562,246
Net realized gain (loss) on investment securities (unaffiliated issuers):
Proceeds from sales 12,126,389
Cost of securities sold 11,498,392
627,997
Capital gain distributions from other investment companies 9,600
637,597
Federal income tax (note 1) (152,070)
Net realized gain (loss) on investments (note 3) 485,527
Unrealized appreciation in value of investments:
Beginning of year 85,139,782
End of year 91,378,918
6,239,136
Increase in deferred federal income tax (note 1) (129,363)
Net increase in unrealized appreciation, including an
affiliated issuer's decrease of $2,025,000 (note 4) 6,109,773
Net realized and unrealized gain (loss) on investments 6,595,300
Net increase (decrease) in net assets resulting from operations $ 9,157,546
See accompanying notes to financial statements.
REAL SILK INVESTMENTS, INCORPORATED
Statements of Changes in Net Assets
Years ended December 31, 1996 and 1995
1996 1995
Net investment income $ 2,562,246 2,528,163
Net realized gain (loss) on investments (note 1) 485,527 (209,327)
Net increase (decrease) in unrealized appreciation 6,109,773 11,708,723
Net increase (decrease) in net assets resulting
from operations 9,157,546 14,027,559
Federal income tax paid on realized gain on behalf of
stockholders, charged to operations (note 1) 143,365
Cash distributions to stockholders from net investment
income ($15.23 and $15.28 per share, respectively)
(note 1) (2,508,122) (2,516,356)
Deemed distributions to stockholders from net realized
gain on investments (note 1) (409,613)
Additional paid-in capital (note 1) 266,248
Increase (decrease) in net assets 6,649,424 11,511,203
Net assets at beginning of year 94,697,920 83,186,717
Net assets at end of year (including undistributed net
investment income of $797,025 and $732,338,
respectively, and undistributed capital loss carryover
of $227,984 in 1995). $ 101,347,344 94,697,920
See accompanying notes to financial statements.
REAL SILK INVESTMENTS, INCORPORATED
Supplementary Information
Financial Highlights
Year Ended December 31,
1996 1995 1994 1993 1992
Per share data
Investment income $ 17.85 17.52 16.23 15.37 15.46
Less: expenses 2.29 2.17 1.92 1.68 1.88
Net investment income 15.56 15.35 14.31 13.69 13.58
Net realized gain (loss) on
investments 2.95 (1.27) (.12) (.11) (.11)
Net increase (decrease) in unrealized
appreciation 37.10 71.10 (26.29) 59.77 59.71
Net increase (decrease) in net assets
resulting from operations 55.61 85.18 (12.10) 73.35 73.18
Federal income tax paid on realized gain
on behalf of stockholders, charged
to operations (note 1) .87 .10 .39
Cash distributions to stockholders from
net investment income (note 1) (15.23) (15.28) (13.92) (13.15) (12.00)
Deemed distributions to stockholders
from net realized gains on invest-
ments (note 1) (2.49) (.28) (1.17)
Additional paid-in capital (note 1) 1.62 .18 .78
Increase (decrease) in net assets 40.38 69.90 (26.02) 60.20 61.18
Net asset value per share:
Beginning of year 575.03 505.13 531.15 470.95 409.77
End of year $ 615.41 575.03 505.13 531.15 470.95
Market value per share, end of
period $ 450.00 420.00 375.00 335.00 310.00
Ratios/Supplemental Data
Expenses to average net assets .39% .41% .36% .33% .44%
Net investment income to average
net assets 2.67% 2.88% 2.71% 2.72% 3.20%
Portfolio turnover rate 3.35% 2.04% 1.07% 1.28% 4.51%
Average commission rate1) dasf adf asdf $ 0.0700
Total investment return 10.89% 16.31% 16.33% 12.47% 7.40%
Net assets at end of
year $101,347,344 94,697,920 83,186,717 87,471,939 77,558,089
See accompanying notes to financial statements.
REAL SILK INVESTMENTS, INCORPORATED
Notes to Financial Statements
December 31, 1996
Note 1 - Summary of Significant Accounting Policies
Real Silk Investments, Incorporated (the Company) is registered under the
Investment Company Act of 1940 (as amended) as a closed-end diversified
management investment company. The Company, which primarily invests
in common stock, has no external managers and pays no management fees.
The significant accounting policies of the Company, which are in
conformity with generally accepted accounting principles for closed-end
management investment companies, are described below.
Investments
Investments in securities traded on national securities exchanges or the
NASDAQ National Market are valued at the last reported sales price.
Other securities traded on the over-the-counter market are valued at
the closing bid prices. Bonds and notes are valued on the basis of
quotations furnished by recognized trade sources. Purchases and sales of
securities are recorded as of the trade dates. The cost bases of
investments for federal income tax purposes are the same as the book
values.
Investment Income
Dividend and interest income are recorded on the accrual basis of
accounting. Cash dividends from securities are recorded as income on
the ex-dividend dates. Dividends for which the recipient has the
choice to receive cash or stock are recognized as investment income in
the amount payable in cash. Other noncash dividends are recognized as
investment income at the fair market value of the property received.
Use of Estimates and Assumptions
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 increase and
decrease in net assets from operations during the period. Actual
results could differ from those estimates.
Federal Income Tax
Prior to January 1, 1989, the Company was subject to federal income tax
as a regular ("C") corporation. Beginning January 1, 1989, the Company
qualified and elected to be taxed as a regulated investment company
within the meaning of Section 851 of the Internal Revenue Code and is
currently reporting tax on such basis. As a regulated investment
company, the Company generally does not pay federal income tax at the
corporate level on current earnings which are passed through to its
stockholders.
The Tax Reform Act of 1986 gives the United States Treasury Department
the authority, under Section 337(d)(1), to promulgate regulations to
assure that the purposes of certain provisions of that Act (those
taxing appreciated property on the sale or liquidation of a
corporation) are not circumvented by the use of various entities,
including regulated investment companies. In Notice 88-19, the
Treasury stated its intention to issue regulations generally making a
C corporation taxable on built-in gains at the time it converts to a
regulated investment company, but permitting it to elect to be subject
to rules similar to those applicable to a corporation which elects to
be taxed as an S corporation. Those rules impose a tax on the built-in
gains of a C corporation which are realized during the first ten years
following the election to be taxed as an S corporation. If the
intended regulations were adopted as described in Notice 88-19, the
appreciation of the assets of the Company as of January 1, 1989 (the
"built-in gains") would be taxed to the extent these gains were
realized prior to January 1, 1999. To date, no such regulations have
been issued.
Because the authority to promulgate such regulations exists and because
the Treasury Department issued Notice 88-19, the Company has recorded a
deferred tax liability in its financial statements for the potential
tax. If the deferred tax liability did not exist, which will at least
occur as of January 1, 1999, the net asset value of the Company would
be increased by the amount of the deferred tax liability, which amounts
to approximately $78.80 per share at December 31, 1996.
As built-in gains have been realized, the Company has deposited with the
Internal Revenue Service (IRS) amounts representing the potential tax
on the realized built-in gains. However, because no regulations have
been issued, the Company, while continuing to make the deposits, is also
requesting refunds of the amounts deposited to protect the Company's
right to those deposits should regulations not be issued.
In December 1996, the Company received from the IRS a refund of taxes
paid in 1992 of $10,563. The Company cannot predict whether or when
relevant regulations will be issued or what the response of the IRS
will be to the Company's requests for additional refunds.
Also, the Company is a personal holding company as defined in Section
542 of the Internal Revenue Code. As a personal holding company, the
Company is subject to a special surtax on any undistributed personal
holding company income. However, the Company distributes all of its
personal holding company income.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes. The character of distributions
made during the year from net investment income or net realized gains
(losses), if any, may differ from the ultimate characterization for
federal income tax purposes.
Distributions to Stockholders
The policy of the Company is to distribute all investment company
taxable income and to retain as much tax-exempt income as possible
without incurring tax at the corporate level and without jeopardizing
the Company's regulated investment company status. All or most of its
net realized long-term capital gains are retained.
As a regulated investment company, the Company may annually elect to
treat retained long-term capital gains as distributed to its
stockholders on the last day of the year. The Company must pay a tax
at the highest corporate rate on the retained gains deemed distributed.
The stockholders include these capital gains in their individual
income tax returns and receive a credit equal to their share of the
tax paid by the Company. The difference between the gains retained by
the Company and the tax paid by the Company on behalf of the
stockholders is added by the stockholders to the basis of their stock.
For the year ended December 31, 1996, the Company realized long-term
capital gains of $637,597, realized no capital losses, paid a deposit
of the built-in gains tax of $19,268, received a refund of 1992
built-in gains tax deposit of $10,563, and accrued income taxes of
$143,365 on retained long-term capital gains (note 3), resulting in a
net realized capital gain of $485,527.
The Company had a capital loss carryforward of $227,984 from prior
years which was used to partially offset the capital gain realized in
1996 of $637,597, resulting in a net gain of $409,613 (or $2.49 per
share) as of December 31, 1996, which the Company elected to retain and
treat as distributed to stockholders as of December 31, 1996. The
deemed distribution, net of the tax paid on behalf of the stockholders
of $143,365 (or $.87 per share), has been reclassified by the Company
to paid-in-capital resulting in an increase in the stockholders' basis
of $266,248 (or $1.62 per share).
Note 2 - Net Assets
The Company's net assets at December 31, 1996 were comprised of the
following elements:
Common stock ($5.00 par value) and additional paid-in capital;
300,000 shares authorized, 164,683 shares
issued and outstanding $ 22,147,992
Accumulated undistributed income:
Undistributed net investment income 797,025
Undistributed net realized gains (losses)
Unrealized gains of $91,804,072 and unrealized losses of
$425,154 less deferred federal income tax of $12,976,591 78,402,327
Net assets at December 31, 1996 $ 101,347,344
Note 3 - Investments
Following is a summary of securities sold during the year ended
December 31, 1996:
Proceeds from
Sales and Net Gain
Maturities Cost (Loss)
Money market funds $ 8,519,145 8,519,145
Common shares 852,244 224,247 627,997
U.S. government securities 600,000 600,000
Other bonds and notes 2,155,000 2,155,000
Totals $ 12,126,389 11,498,392 627,997
Capital gain distributions from
other investment companies 9,600
637,597
Federal income tax:
Built-in gains deposit (19,268)
Refund of 1992 built-in gains deposit 10,563
Retained long-term capital gains (143,365)
Net realized gain (loss) on investments $ 485,527
The federal income tax is computed at a rate of 35% on the built-in
unrealized gains which existed at January 1, 1989 (the effective date of
the Company's election to be taxed as a regulated investment company-
note 1) and which were realized during the year ended December 31, 1996.
Net built-in gains realized during the year ended December 31, 1996 were
$55,050. As discussed in note 1, it is the Company's intent to request a
refund from the IRS of the built-in gain tax deposit.
The aggregate cost of securities acquired during the year ended
December 31, 1996 was as follows:
Money market funds $ 8,543,054
Common shares 1,219,973
U.S. government securities 498,555
Other bonds and notes 1,974,345
Total purchase of securities $ 12,235,927
Note 4 - Investment in Affiliated Issuer
The Company is an affiliated company, as defined in Section 2(a)(2)
and 2(a)(3) of the Investment Company Act of 1940, with respect to its
investment in Arnold Industries, Inc. The Company and affiliated
persons owned more than five percent of the voting common stock of
Arnold Industries, Inc., at December 31, 1996.
Note 5 - Retirement Plan
Effective January 1, 1992, the Company began sponsoring a money
purchase pension plan which covers all employees of the Company who
have met certain service requirements. Annually, the Company must
contribute to the Plan an amount equal to five percent of each
participant's compensation. Pension expense was $6,583 in 1996 and
$5,883 in 1995.
Note 6 - Line of Credit
The Company has an unsecured line of credit for short-term bank
borrowings of up to $5 million, with interest computed at the bank's
prime rate. The line of credit expires on July 1, 1997. At
December 31, 1996, the entire line of credit was unused.
Note 7 - Rent Commitment
In March 1993, the Company entered into a five-year operating lease
for office space. At December 31, 1996, the future minimum rental
payments required by the lease are as follows:
1997 $ 52,135
1998 13,126
Total $ 65,261
REAL SILK INVESTMENTS, INCORPORATED
Schedule of Investments in Securities
December 31, 1996
Principal % of
Amount Total
or Number Industry Investment
Description of Shares Value Totals Portfolio
MONEY MARKET FUNDS (unaffiliated issuers):
Money Market Funds $ 551,331 .48%
Fidelity Cash Reserves Fund 209,546 $ 209,546
Pegasus Money Market Fund (Formerly: 341,785 341,785
Woodward Money Market Fund)
Total Money Market Funds $ 551,331 $ 551,331 .48%
COMMON SHARES (unaffiliated issuers):
Sector: Business Services
Industry: Information Services 2,582,628 2.26%
*ACNielsen Corporation 2,933 44,728
*Cognizant Corporation 8,800 290,400
Dun & Bradstreet, Inc. 8,800 209,000
Industry: Office Furniture
Miller (Herman), Inc. 36,000 2,038,500
Sector: Consumer Goods 11,950,031 10.48%
Industry: Apparel/Textiles
Guilford Mills, Inc. 13,125 349,453
Russell Corporation 179,200 5,331,200
Industry: Food/Restaurants
ConAgra, Inc. 10,000 497,500
*Consolidated Products, Inc. 33,645 656,077
*Kroger Company, Inc. 108,000 5,022,000
Industry: Tobacco
*Imperial Tobacco Group PLC 7,268 93,801
Sector: Diversified
Industry: Conglomerate 1,830,203 1.60%
Hanson, PLC 29,075 196,256
TRW, Inc. 32,000 1,584,000
*U.S. Industries, Inc. 1,453 49,947
*Non-Income Producing Security
REAL SILK INVESTMENTS, INCORPORATED
Schedule of Investments in Securities
December 31, 1996
Principal % of
Amount Total
or Number Industry Investment
Description of Shares Value Totals Portfolio
Sector: Energy/Natural Resources 12,405,838 10.88%
Industry: Building Materials
Ply-Gem Industries, Inc. 14,700 185,588
Industry: Metals/Mining
Newmont Mining Corporation 54,916 2,457,491
Penn Virginia Corporation 40,000 1,870,000
Reynolds Metals Co., Inc. 8,344 470,393
Industry: Oil & Gas
Atlantic Richfield Co., Inc. 16,000 2,120,000
Kerr-McGee Corporation 18,000 1,296,000
Northwest Natural Gas, Inc. 23,400 561,600
Occidental Petroleum Corp. 9,570 223,698
*Union Pacific Resources Group Inc. 29,118 844,422
Industry: Paper
Boise Cascade Corporation 6,666 211,646
Temple-Inland, Inc. 40,000 2,165,000
Sector: Financial 20,774,410 18.21%
Industry: Bank/Thrift
First Chicago NBD Corporation 92,928 4,994,880
*Ocwen Financial Corp. 13,500 361,125
Industry: Insurance
American Financial Group, Inc. 33,902 1,279,800
Chubb Corporation 54,000 2,902,500
CMAC Investment Corp. 8,000 294,000
Hartford Steam Boiler Inspection &
Insurance Company 186,000 8,625,750
Ohio Casualty Corporation 16,000 568,000
ReliaStar Financial Corporation 21,039 1,215,002
Industry: Mortgage
*First Alliance Corp. 4,000 121,000
Industry: Mutual Funds
Japan Fund, Inc. 17,651 147,033
Scudder Capital Growth Fund, Inc. 12,000 265,320
*Non-Income Producing Security
REAL SILK INVESTMENTS, INCORPORATED
Schedule of Investments in Securities
December 31, 1996
Principal % of
Amount Total
or Number Industry Investment
Description of Shares Value Totals Portfolio
Sector: Industrial 20,069,034 17.59%
Industry: Capital Goods
Cincinnati Milacron, Inc. 36,000 787,500
Manitowoc Co., Inc. 84,000 3,402,000
Industry: Chemicals
Sigma-Aldrich Corporation 5,000 312,185
*Millenium Chemicals Inc. 2,076 36,849
Industry: Environmental Services
Browning-Ferris Industries, Inc. 16,000 420,000
WMX Technologies, Inc. 13,000 422,500
Industry: Steel
Nucor Corporation 288,000 14,688,000
Sector: Medical 6,911,625 6.06%
Industry: Pharmaceutical
Bristol-Myers Squibb Co., Inc. 4,000 436,000
Johnson & Johnson, Inc. 96,000 4,776,000
Lilly (Eli) & Co., Inc. 8,000 584,000
Merck & Co., Inc. 9,000 716,625
Mylan Laboratories, Inc. 24,000 399,000
Sector: Technology 3,834,935 3.36%
Industry: Computer Hardware/Software
Hewlett-Packard Corp. 16,000 804,000
*Microsoft Corp. 6,000 495,750
Industry: Electronics
*DII Group, Inc. 10,000 232,500
*Marshall Industries, Inc. 36,000 1,102,500
Motorola Inc. 7,000 428,750
*Vishay Intertechnology, Inc. 33,180 771,435
Sector: Communications 7,802,231 6.84%
Industry: Entertainment
Time Warner, Inc. 144,000 5,400,000
*Non-Income Producing Security
REAL SILK INVESTMENTS, INCORPORATED
Schedule of Investments in Securities
December 31, 1996
Principal % of
Amount Total
or Number Industry Investment
Description of Shares Value Totals Portfolio
Industry: Telecommunication
Ameritech Corp. 8,000 485,000
Bell Atlantic Corp. 4,000 259,000
Bell South Corp. 12,000 486,000
GTE Corp. 7,900 358,463
MCI Communications Corp. 14,800 483,768
Telefonos de Mexico S.A. ADR
Series L 10,000 330,000
Sector: Transportation (see also
affiliated issuers) 5,406,848 4.74%
Industry: Automotive
MascoTech, Inc. 96,000 1,572,000
Industry: Railroads
Norfolk Southern Corporation 18,000 1,584,000
Union Pacific Corporation 34,380 2,067,098
Industry: Trucking
Wabash National Corporation 10,000 183,750
Total common shares
(unaffiliated issuers) $93,567,783 $93,567,783 82.02%
U.S. GOVERNMENT AND AGENCY SECURITIES
(unaffiliated issuers):
U.S. Treasury Notes 8.500%, 4/15/97 2,000,000 2,017,500
U.S. Treasury Notes 8.500%, 7/15/97 500,000 508,045
U.S. Treasury Notes 7.875%, 1/15/98 1,000,000 1,022,190
U.S. Treasury Notes 8.250%, 7/15/98 500,000 517,810
Federal Home Loan Mtg. Corp. REMIC,
5.75%, 2006 1,000,000 980,620
Federal National Mtg. Assn Guaranteed
REMIC, 6.75%, 2018 1,000,000 988,750
Federal National Mtg. Assn REMIC,
6.00%, 2015 1,000,000 990,310
Federal Home Loan Mtg. Corp.,
6.55%, 2003 1,000,000 978,440
Federal Home Loan Mtg. Corp.,
6.25%, 2006 500,000 478,125
Total U.S. Government and Agency
Securities (unaffiliated issuers) $ 8,481,790 $ 8,481,790 7.44%
*Non-Income Producing Security
REAL SILK INVESTMENTS, INCORPORATED
Schedule of Investments in Securities
December 31, 1996
Principal % of
Amount Total
or Number Industry Investment
Description of Shares Value Totals Portfolio
OTHER BONDS AND NOTES (unaffiliated issuers):
Kentucky State Turnpike Auth. Res.,
13.125%, 2009 125,000 130,829
Miami Cty., Ohio Econ. Dev. (Winters
National Bank), 10.75%, 2006, put option
1997 300,000 318,720
General Motors Acceptance Corp. Note,
7.125%, 2003 500,000 506,269
Household Finance Corp. Note, 7.625%,
1999 500,000 513,390
Pacific Gas and Electric Co., 6.25%,
2004 500,000 479,595
Total Other Bonds and Notes
(unaffiliated issuers) $ 1,948,803 $ 1,948,803 1.71%
Total investments in securities
(unaffiliated issuers) $104,549,707 $104,549,707 91.65%
COMMON SHARES (affiliated issuers):
Sector: Transportation (see also
unaffiliated issuers)
Industry: Trucking
Arnold Industries, Inc. 600,000 9,525,000 9,525,000 8.35%
Total investments in securities
(affiliated issuers) $ 9,525,000 $ 9,525,000 8.35%
Total investments in securities $114,074,707 $114,074,707 100.00%
See accompanying notes to financial statements.
