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Previous: PHILLIPS CAPITAL INVESTMENTS INC, NSAR-A, EX-27, 2000-08-28 |
Next: VARIABLE ACCOUNT D OF FORTIS BENEFITS INSURANCE CO, 497, 2000-08-28 |
PHILLIPS CAPITAL INVESTMENTS, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
FOR THE SIX MONTH PERIOD ENDED
JUNE 30, 2000
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
--------------- --------------------
<S> <C> <C>
Assets:
Investments in securities, at value -
amortized cost $1,464,259.03 in 2000 and
$2,761,913.74 in 1999 - Note A $2,302,334.77 $3,831,610.19
Cash 11,323.73 157,908.33
Receivables - Note A
Interest 5,444.61 18,344.69
Dividends 4,583.98 3,910.82
Investment securities sold 233,121.58 72,576.66
Deferred registration expenses - Note B 627.92 690.92
Prepaid insurance 741.11 269.26
Other assets 0 -
--------------- ---------------
Total assets $2,558,177.70 $4,085,310.87
=============== ===============
Liabilities
Accrued accounting fees $7,491.77 $5,150.00
Federal income tax payable - 200.00
Miscellaneous accounts payable 1,681.92 176.93
Due shareholders on sale - -
--------------- ---------------
Total liabilities 9,173.69 5,526.93
--------------- ---------------
Net Assets:
Net assets (equivalent to $14.33 and $13.90
per share based on 177,875.961 and
293,475.708 shares of capital stock
outstanding at June 30, 2000 and
December 31, 1999, respectively) - Note C $2,549,004.01 $4,079,783.94
=============== ===============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
1
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
INVESTMENTS IN SECURITIES
JUNE 30, 2000
<TABLE>
<CAPTION>
Principal
Amount or
COMMON STOCKS: 72.14% Shares Market Value
---------------- ---------------
<S> <C> <C>
Insurance: 11.78%
-----------------
Nationwide Financial 2,000 65,750.00
ReliaStar Financial Corp. 2,400 125,850.00
RLI Corp. 3,125 108,593.75
---------------
300,193.75
---------------
Energy Sources & Related: 9.39%
-------------------------------
Phillips Petroleum 1,400 70,962.50
Santa Fe Snyder 8,200 93,275.00
USX Marathon Group 3,000 75,187.50
---------------
239,425.00
---------------
Health Products and Services: 9.34%
-----------------------------------
Tenet Health Care 3,000 81,000.00
Universal Health Services "B" 2,400 157,200.00
---------------
238,200.00
---------------
Consumer Products and Services: 5.80%
-------------------------------------
Rock of Ages 4,000 19,750.00
CEC Enterprises 5,000 128,125.00
---------------
147,875.00
---------------
Shipping and Transportation: 5.54%
----------------------------------
Sea Containers, Ltd. "A" 4,000 84,500.00
Transport Corp. of America 4,000 26,000.00
Rush Enterprises 5,500 30,593.75
---------------
141,093.75
---------------
Investment Co./Foreign Securities: 5.34%
----------------------------------------
First Australian Fund 6,900 47,437.50
Kemper International Resource Fund 1,500 23,385.00
New Germany Fund, Inc 4,701.485 65,233.10
---------------
136,055.60
---------------
Media/Entertainment: 4.84%
--------------------------
AT&T 1,500 47,437.50
Time Warner 1,000 76,000.00
---------------
123,437.50
---------------
Banking and Financial Services: 4.83%
-------------------------------------
Greenpoint Financial 1,500 28,125.00
SLM Holdings 1,000 37,437.50
Washington Mutual 2,000 57,625.00
---------------
123,187.50
---------------
Electric Utilities: 4.06%
-------------------------
Reliant Energy (Houston Ind) 2,000 59,125.00
Texas Utilities 1,500 44,250.00
---------------
103,375.00
---------------
The accompanying notes are an integral part of these
financial statements.
2
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 2000
<CAPTION>
Principal
Amount or
Common Stocks, continued Shares Market Value
-------------- ---------------
<S> <C> <C>
Merchandising: 3.89%
--------------------
Claire's Stores 2,500 48,125.00
KMart 7,500 51,093.75
---------------
99,218.75
---------------
Chemicals: 3.68%
----------------
Akzo N.V. ADS 1,000 42,062.50
Pharmecia 1,000 51,687.50
---------------
93,750.00
---------------
Multi-Industry: 1.65%
---------------------
Norsk Hydro 1,000 42,062.50
---------------
42,062.50
---------------
Forest & Paper Products: 1.10%
------------------------------
Abitibi Consolidated 3,000 28,125.00
---------------
28,125.00
---------------
Metals/Mining: .90%
-------------------
IMCO Recycling Inc. 4,200 22,837.50
---------------
22,837.50
---------------
TOTAL COMMON STOCKS 1,838,836.85
---------------
</TABLE>
The accompanying notes are an integral part of these
financial statements.
3
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 2000
<TABLE>
<CAPTION>
Principal
Amount or
Shares Market Value
--------------- ---------------
<S> <C> <C>
PREFERRED STOCKS: 4.56%
-----------------------
Texaco Capital Preferred "B" 3,500 65,187.50
Con Agra Capital LC 3,000 51,000.00
---------------
116,187.50
---------------
SHORT-TERM DEPOSITS: 7.45%
--------------------------
Summitt Bank, Ark 6.05% Due 9/1/00 95,000.00
Rocky Mountain Bank, MT 7% Due 3/1/01 95,000.00
---------------
TOTAL SHORT-TERM TIME DEPOSITS 190,000.00
---------------
OTHER SHORT-TERM SECURITIES: 6.17%
----------------------------------
Institutional Liquid Assets - Treasury 10,259.79 10,259.79
General Motors Commercial Paper of 7/5/00 147,050.63 147,050.63
---------------
TOTAL OTHER SHORT-TERM SECURITIES 157,310.42
---------------
TOTAL INVESTMENTS IN SECURITIES 2,302,334.77
---------------
OTHER ASSETS (NET OF LIABILITIES): 9.68%
----------------------------------------
Total Other Assets (Net of Liabilities) 246,669.24
---------------
NET ASSETS: 100.00% $2,549,004.01
===============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
4
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Investment Income
Income - Note A
Interest $23,878.87 $84,991.42
Dividends 22,022.42 45,145.15
--------------- ---------------
Total income 45,901.29 130,136.57
--------------- ---------------
Expenses
Investment advisory fees - Note E 13,070.49 39,049.74
Accounting fees 2,991.77 5,800.00
Registration fees and expenses 63.00 706.70
Directors' fees 375.00 1,500.00
Insurance 464.15 983.48
Postage and delivery 104.50 497.68
Printing and electronic filing 0 25.43
Professional fees 576.00 2,430.50
Other 1,742.49 (72.59)
Federal income tax 0 200.00
--------------- ---------------
Total expenses 19,387.40 51,120.94
--------------- ---------------
Investment income - net 26,513.89 79,015.63
--------------- ---------------
Realized and Unrealized Gain on
Investments - Note D
Net realized gain on investments 284,478.71 159,270.62
Change in unrealized appreciation
of investments for the period (231,745.70) (255,500.91)
--------------- ---------------
Net gain (loss) on investments 52,733.01 (96,230.29)
--------------- ---------------
Net increase (decrease) in net
assets resulting from operations $79,246.90 $(17,214.66)
=============== ===============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
5
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, 2000 December 31, 1999
------------- -----------------
<S> <C> <C>
Increase in Net Assets from Operations
Investment income - net $26,513.89 $79,015.63
Net realized gain on investment 284,478.71 159,270.62
Change in unrealized appreciation (231,745.70) (255,500.91)
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations 79,246.90 (17,214.66)
--------------- ---------------
Dividends Paid to Shareholders - Note F
Investment income 0 (79,193.18)
Net realized capital gains 0 (158,386.35)
--------------- ---------------
Total dividends paid to shareholders 0 (237,579.53)
--------------- ---------------
Capital Share Transactions (1,610,026.83) (1,067,728.26)
--------------- ---------------
Net increase (decrease) (1,530,779.93) (1,322,522.45)
Net Assets
Beginning of period (including undistributed
investment income of $6,106.38) 4,079,783.94 5,402,306.39
--------------- ---------------
End of period (including undistributed
investment income of $32,620.27) $2,549,004.01 $4,079,783.94
=============== ===============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
5
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
Note A - Summary of Significant Accounting Policies
The Company is operated as a diversified, open-end management investment
company.
Security valuation: Investments in securities listed on the New York Stock
Exchange, American Stock Exchange or other security exchanges, and securities
traded in the Over-The-Counter market are valued at their closing sales price.
If no sale has been reported for that day, the last published sale or the last
recorded bid price, whichever is the more recent, is used, unless in the opinion
of the Board of Directors the value thus obtained may not fairly indicate the
actual market value, in which case these securities, and any other assets for
which market quotations are not readily available, are valued at fair value as
determined by the management and approved in good faith by the Board of
Directors.
Federal income taxes: For tax years beginning after December 31, 1987, it
is the Company's intention to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its capital gains and investment income to its
shareholders. Therefore, provision has been made for Federal income taxes only
on the undistributed income which is immaterial.
Other: The Company follows industry practice and records security
transactions on the trade date. Dividend income is recognized on the ex-dividend
date, and interest is recognized on an accrual basis.
Note B - Organizational and Registration Expenses
Registration expenses will be amortized as new shares are issued.
Note C - Capital Share Transactions
As of June 30, 2000 and December 31, 1999, there were 10,000,000 shares of
$1.00 par value capital stock authorized. Capital paid-in aggregated
$1,212,631.29 and $2,707,058.36 at June 30, 2000 and December 31, 1999,
respectively.
Transactions in capital stock for the six month period ended June 30, 2000
and for the year ended December 31, 1999, were as follows:
<TABLE>
<CAPTION>
Shares Amount
--------------------------------- ---------------------------------
2000 1999 2000 1999
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold 4,898.911 16,457.782 $63,000.00 $246,701.54
Shares issued in reinvestment
of dividends 0 16,870.603 0 233,489.18
-------------- -------------- --------------- ---------------
4,898.911 33,328.385 63,000.00 480,190.72
Shares redeemed 120,498.658 103,318.204 1,673,026.83 1,547,918.98
-------------- -------------- --------------- ---------------
Net increase (decrease) (115,599.747) (69,989.819) $(1,610,026.83) $(1,067,728.26)
============== ============== =============== ===============
</TABLE>
7
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
JUNE 30, 2000
Note D - Investment Transactions
Purchases of common stocks during the six months ended June 30, 2000 were
$170,227.50 and $290,409.42 for the year ended December 31, 1999; sales were
$644,143.00 for the six months ended June 30, 2000 and $644,147.11 for the year
ended December 31, 1999. Purchases of U.S. Government obligations were $0 and
$954,231.98 for the six months ended June 30, 2000 and the year ended December
31, 1999, respectively, and $550,000.00 and $1,700,000.00 were sold/matured
during the six months ended June 30, 2000 and the year ended December 31, 1999,
respectively.
As of June 30, 2000 and December 31, 1999, the unrealized appreciation of
securities was $838,075.74 and $1,069,696.45, respectively; accumulated
undistributed net realized gains on investment transactions totaled $287,925.75
and $3,447.04 at June 30, 2000 and December 31, 1999, respectively.
Note E - Investment Advisory Fees
The Company pays advisory fees for investment management and advisory
services under a management agreement (Agreement) that provides for fees to be
computed monthly at an annual rate of 0.9 percent of the Company's average daily
net assets up to $30,000,000, 0.75 percent of assets from $30,000,000 to
$60,000,000 and 0.6 percent for those assets in excess of $60,000,000. The
Agreement provides for an expense reimbursement from the investment advisor if
the Company's total expenses exceed 2.0 percent of the Company's average daily
net assets for any year.
Note F - Distributions to Shareholders
On December 16, 1999, a distribution of $0.58 per share, aggregating
$158,386.35, was declared from net realized gains from investment transactions
and a dividend of $0.29 per share, aggregating $79,193.18 was declared from net
investment income. The distribution and dividend were paid on December 30, 1999
to shareholders of record on December 29, 1999.
8
<PAGE>
PHILLIPS CAPITAL INVESTMENTS, INC.
SUPPLEMENTARY INFORMATION - SELECTED PER-SHARE DATA AND RATIOS*
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, --------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995 1994
-------- --------- --------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Per-Share Data:
Investment income $.28 $.48 $.52 $.53 $.48 $.67 $.47
Expenses .12 .19 .18 .19 .18 .16 .15
-------- --------- --------- --------- -------- --------- ---------
Investment income - net .16 .29 .34 .34 .30 .49 .31
Distributions from net
investment income 0 (.29) (.34) (.33) (.29) (.49) (.31)
Net realized and unrealized
gain (loss) on securities .27 (.38) .21 2.28 1.07 1.58 (.21)
Distributions from net
realized long-term gains
on securities 0 (.58) (.41) (.97) (1.99) (.36) (.24)
-------- --------- --------- --------- -------- --------- ---------
Net increase (decrease) in net
asset value .43 (.96) (.20) 1.32 (.91) 1.22 (.45)
Net asset value:
Beginning of year 13.90 14.86 15.06 13.74 14.65 13.43 13.88
-------- --------- --------- --------- -------- --------- ---------
End of Period $14.33 13.90 14.86 $15.06 $13.74 $14.65 $13.43
======== ========= ========= ========= ======== ========= =========
Ratios (Annualized)
Ratio of expenses to average
net assets 1.32% 1.17% 1.18% 1.19% 1.20% 1.11% 1.11%
Ratio of net investment income
to average net assets 1.80% 1.81% 2.17% 2.10% 1.96% 2.98% 2.19%
Portfolio turnover rate 16.80% 11.48% 15.97% 5.71% 19.08% 28.17% 37.62%
Shares Outstanding at End of
Period 177,875.961 293,475.708 363,465.526 339,582.628 355,399.640 343,987.019 419,130.701
</TABLE>
* Selected data for a share of capital stock outstanding throughout the year.
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