SMITH HAYES TRUST, INC.
CAPITAL BUILDER
CONVERTIBLE
SMALL CAP
GOVERNMENT/QUALITY BOND
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
Schedule of Investments
Capital Builder Fund..................................... 1
Convertible Fund......................................... 4
Small Cap Fund........................................... 7
Government/Quality Bond Fund............................. 11
Statement of Assets and Liabilities.......................... 13
Statement of Operations...................................... 14
Statements of Changes in Net Assets
Capital Builder Fund..................................... 15
Convertible Fund......................................... 15
Small Cap Fund........................................... 16
Government/Quality Bond Fund............................. 16
Financial Highlights
Capital Builder Fund..................................... 17
Convertible Fund......................................... 18
Small Cap Fund........................................... 19
Government/Quality Bond Fund............................. 20
Notes to Financial Statements................................ 21
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments
December 31, 1995
(Unaudited)
CAPITAL BUILDER FUND
Percent
of Net Market
Shares Common Stock 93.84% Assets Value
------- ----------------------------------- -------- -------
Cosmetics/Personal Care 2.96%
------------------------ ------
4,500 Gillette Company $234,562
-------
Electrical Equipment 1.87%
------------------------ ------
6,000 Pacific Scientific Company 148,500
-------
Electronics 6.87%
------------------------ ------
4,000 General Electric Company 288,000
4,500 Motorola, Inc. 256,500
-------
544,500
-------
Entertainment/Leisure 3.08%
------------------------ ------
8,500 Harley-Davidson, Inc. 244,375
-------
Financial Services 11.48%
------------------------ ------
3,990 Chemical Banking Corporation 234,412
4,200 Federal Home Loan Mortgage Corporation 350,700
1,500 Wells Fargo & Company 324,000
-------
909,112
-------
Food-Processing 3.38%
------------------------ ------
6,500 Conagra, Inc. 268,125
-------
Holding Companies 0.81%
------------------------ ------
2 Berkshire Hathaway, Inc.* 64,210
-------
Household Products/Wares 3.92%
------------------------ ------
12,000 Newell Company 310,500
-------
Insurance 6.79%
------------------------ ------
9,700 Integon Corporation 200,063
4,500 MBIA, Inc. 337,500
-------
$537,563
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
CAPITAL BUILDER FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Iron/Steel 1.15%
------------------------ ------
11,000 Kentucky Electric Steel, Inc.* $ 90,750
-------
Machine-Diversified 7.93%
------------------------ ------
6,100 Briggs & Stratton Corporation 264,587
7,000 Thermo Electron Corporation* 364,000
-------
628,587
-------
Manufacturing 7.79%
------------------------ ------
4,000 Eastman Kodak Company 268,000
13,000 Pall Corporation 349,375
-------
617,375
-------
Metals/Mining 2.68%
------------------------ ------
6,750 Trinity Industries, Inc. 212,625
-------
Office/Business 4.81%
------------------------ ------
8,100 Pitney-Bowes, Inc. 380,700
-------
Oil/Gas 6.31%
------------------------ ------
7,171 Coastal Corporation 267,120
8,000 Unocal Corporation 233,000
-------
500,120
-------
Pharmaceutical/Medical 4.15%
------------------------ ------
5,000 Merck & Company, Inc. 328,750
-------
Publishing/Printing 3.07%
------------------------ ------
7,000 Belo (A. H.) Corporation Series A 243,250
-------
Real Estate 4.00%
------------------------ ------
13,000 Simon Property Group, Inc. 316,875
-------
Restaurant/Food Service 4.27%
------------------------ ------
7,500 McDonald's Corporation $338,438
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
CAPITAL BUILDER FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Retail Store/Apparel 3.45%
------------------------ ------
7,000 Sears Roebuck & Company $ 273,000
-------
Trucking and Leasing 3.07%
------------------------ ------
12,000 Werner Enterprises, Inc. 243,000
-------
Closed-End Management Company 2.95%
------------------------ ------
14,000 Global Health Sciences Fund* 232,750
-------
Total Investments 96.79% 7,667,667
Cash Equivalents 0.58% 46,140
Net Receivables/(Payables) 2.63% 208,206
------- ---------
TOTAL NET ASSETS 100.00% $7,922,013
====== ==========
* Indicates nonincome-producing security.
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments
December 31, 1995
(Unaudited)
CONVERTIBLE FUND
Percent
Principal of Net Market
Amount Assets Value
------- ------- -------
Convertible Debentures 43.04%
----------------------
25,000 All American Communications 6.50%, due 10/01/03 $ 23,000
15,000 Albany International Corporation 5.25%, due 3/15/02 13,462
10,000 American Brands, Inc. 7.625%, due 3/5/01 10,500
25,000 AMR Corporation 6.125%, due 11/1/24 25,938
15,000 Apache Corporation 6.00%, due 1/15/02 17,325
110,000 Automatic Data Processing, Inc. 0%, due 2/20/12 53,762
16,000 Big B Inc., 6.50%, due 3/15/03 15,960
20,000 Carnival Cruise Lines, Inc. 4.50%, due 7/1/97 29,300
24,000 Cooper Industries, Inc. 7.05%, due 1/1/15 24,810
15,000 DAKA International, Inc. 7.00%, due 3/15/03 34,406
40,000 Delta Air Lines, Inc. 3.23%, due 6/15/03 38,550
45,000 Elan International 0%, due 10/16/12 24,300
15,000 First Financial Management Corp. 5.00%, due 12/15/99 24,338
12,000 Gencorp, Inc. 8.00%, due 8/1/02 12,210
35,000 Hasbro, Inc. 6.00%, due 11/15/98 38,412
35,000 IMC Global, Inc. 6.25%, due 12/01/01 45,588
60,000 Interpublic Group, Inc. 3.75%, due 4/1/02 57,825
60,000 Motorola, Inc. 0%, due 9/27/13 45,900
50,000 News Corporation 0%, due 3/11/13 23,375
30,000 Olsten Corporation 4.875%, due 5/15/03 34,800
30,000 Pennzoil Company 6.50%, due 1/15/03 38,512
15,000 Raymond Corporation 6.50%, due 12/15/03 20,775
20,000 Riverwood International Corporation 6.75%, due 9/15/03 22,025
50,000 RPM, Inc. 0%, due 9/30/12 21,500
25,000 Thermo Electron Corporation 5.00%, due 4/15/01 42,188
90,000 Time Warner, Inc. 0%, due 6/22/13 37,013
22,000 Time Warner, Inc. 8.75%, due 1/10/15 22,797
25,000 Varlen Corporation 6.50%, due 6/1/03 25,313
-------
Total Convertible Debentures $823,884
-------
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
CONVERTIBLE FUND
Percent
of Net Market
Shares Preferred Stock 24.54% Assets Value
------- ----------------------------------- -------- -------
Auto/Trucks 7.65%
------------------------ ------
850 Ford Motor Company, $4.20 Prfd Series A $ 80,537
900 General Motors Corporation, $3.25 Prfd Series C 65,925
-------
146,462
-------
Financial Services 7.49%
------------------------ ------
450 Banc One Corporation, $3.50 Prfd Series C 29,531
100 Citicorp, $1.217 Prfd Series 15 18,287
550 First Chicago Corporation, $5.75 Prfd Series B 36,850
500 Soloman, Inc. (Digital), 6.75% Prfd 23,750
400 Travelers, Inc., $2.75 Prfd Series B 34,900
-------
143,318
-------
Food/Beverage/Tabacco 1.20%
------------------------ ------
3,600 RJR Nabisco Holdings Corporation, 9% Prfd Series C 22,950
-------
Metals/Mining 5.77%
------------------------ ------
400 Cyprus Amax Mineral Company, $4 Prfd Series A 23,750
650 Magma Copper Company, 5.625% Prfd Series D 62,481
550 Wheeling Pittsburgh Corporation, $3.25 Prfd Series A 24,200
-------
110,431
-------
Oil/Gas 0.94%
------------------------ ------
350 Valero Energy Corporation, $3.125 Prfd 18,025
-------
Packaging/Container 1.49%
------------------------ ------
500 Sonoco Products Company, $2.25 Prfd Series A 28,563
-------
Total Preferred Stock 469,749
-------
Common Stock 20.57%
------------------------ ------
Chemical/Drug 1.12%
------------------------ ------
250 Bristol Meyers Squibb Company 21,469
-------
Environmental Control 1.12%
------------------------ ------
1,132 USA Waste Services, Inc.* $ 21,367
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
CONVERTIBLE FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Financial Services 4.64%
------------------------ ------
300 BankAmerica Corporation $ 19,425
300 Federal National Mortgage Association 37,237
517 Republic New York Corporation 32,119
-------
88,781
-------
Food/Beverage/Tabacco 2.19%
------------------------ ------
1,017 Conagra, Inc. 41,951
-------
Insurance 2.61%
------------------------ ------
1,000 Aon Corporation 49,875
-------
Manufacturing 1.30%
------------------------ ------
700 Tyco International Ltd. 24,937
-------
Oil/Gas 2.14%
------------------------ ------
571 Amoco Corporation 41,041
-------
Restaurant/Food Service 1.86%
------------------------ ------
2,420 Consolidated Products, Inc.* 35,695
-------
Telecommunications 2.29%
------------------------ ------
2,500 Alcatel Alsthom ADS 43,750
-------
Wholesale Special Line 1.30%
------------------------ ------
573 Arrow Electronics, Inc.* 24,711
-------
Total Common Stocks 393,577
-------
Total Investments 88.15% 1,687,210
Cash Equivalents 11.49% 219,949
Net Receivables/(Payables) 0.36% 6,956
------ ----------
TOTAL NET ASSETS 100.00% $1,914,115
====== ==========
* Indicates nonincome-producing security.
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments
December 31, 1995
(Unaudited)
SMALL CAP FUND
Percent
of Net Market
Shares Common Stock 96.97% Assets Value
------- ----------------------------------- -------- -------
Broadcasting/Media 2.28%
------------------------ ------
13,000 Lincoln Telecommunications Company $ 274,625
-------
Chemicals 6.05%
------------------------ ------
9,800 Chemed Corporation 380,975
7,200 OM Group, Inc. 238,500
5,200 Synalloy Corporation 109,850
-------
729,325
-------
Computer Related 5.21%
------------------------ ------
7,000 Stormedia, Inc.* 255,500
10,150 Zilog, Inc. * 371,744
-------
627,244
-------
Electrical Equipment 9.82%
------------------------ ------
9,700 Baldor Electric Company 195,212
18,250 Gasonics International Corporation* 246,375
2,200 Kent Electronics Corporation* 128,425
20,500 Sheldahl, Inc.* 371,562
13,600 Smartflex Systems, Inc.* 241,400
-------
1,182,974
---------
Electronics 9.30%
------------------------ ------
6,700 BMC Industries, Inc. 155,775
16,000 Dynatech Corporation * 272,000
9,500 LTX Corporation* 86,688
7,500 Tech-Sym Corporation* 239,062
8,700 Verifone, Inc. * 249,038
4,700 Zygo Corporation* 118,088
-------
1,120,651
----------
Engineering/Construction 1.91%
------------------------ ------
19,800 Insituform Technologies Class A* $ 230,175
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
SMALL CAP FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Environmental Control 2.37%
------------------------ ------
16,400 Tetra Technologies, Inc.* $284,950
-------
Financial Services 4.65%
------------------------ ------
3,600 Cullen/Frost Bankers, Inc. 180,000
5,250 Mountain Parks Financial Corporation* 116,812
13,600 Roosevelt Financial Group, Inc. 263,500
-------
560,312
-------
Food Processing 2.02%
------------------------ ------
14,100 Hudson Foods, Inc.* 243,225
-------
Insurance 2.00%
------------------------ ------
7,600 Sierra Health Services, Inc.* 241,300
-------
Iron/Steel 2.85%
------------------------ ------
17,700 Quanex Corporation 342,938
-------
Machine/Machine Tool 5.99%
------------------------ ------
4,700 AGCO Corporation 239,700
10,100 Credence Systems Corporation 231,038
5,500 Electroglas, Inc. 134,750
5,000 Kulicke Soffa Industries, Inc. 116,250
-------
721,738
-------
Manufacturing 1.83%
------------------------ ------
16,625 Paxar Corporation* 220,281
-------
Medical Supplies/Services 4.38%
------------------------ ------
9,600 Lincare Holding, Inc.* 240,000
9,100 Medisense, Inc.* 287,788
-------
$527,788
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
SMALL CAP FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Oil/Gas 12.72%
------------------------ ------
9,800 Cairn Energy USA, Inc.* $ 137,200
5,150 Landmark Graphics Corporation* 119,737
15,300 Nuevo Energy Company* 342,337
19,200 Parker & Parsley Petroleum Company 422,400
12,200 Pride Pet Services, Inc.* 129,625
12,100 Tejas Power Corporation Class A * 110,413
15,600 United Meridian Corporation* 271,050
-------
1,532,762
---------
Publishing/Printing 1.06%
------------------------ ------
4,900 Consolidated Graphics, Inc.* 127,400
-------
Real Estate 8.19%
------------------------ ------
7,900 Felcor Suite Hotels, Inc. 219,225
20,950 NHP, Inc.* 387,575
15,600 RFS Hotel Investors, Inc. 239,850
13,600 Sunstone Hotel Investors, Inc. 139,400
-------
986,050
-------
Retail/Retail Store 3.46%
------------------------ ------
17,300 Friedman's, Inc. Class A* 333,025
20,250 Sun Television and Appliances 83,531
-------
416,556
-------
Telecommunications 4.96%
------------------------ ------
14,200 Colonial Data Technologies Corporation* 291,100
10,300 Intervoice, Inc.* 195,700
6,700 IPC Information Systems, Inc.* 110,550
-------
$ 597,350
-------
* Indicates nonincome-producing security.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
SMALL CAP FUND
Percent
of Net Market
Shares Common Stock (Continued) Assets Value
------- ----------------------------------- -------- -------
Transportation 3.30%
------------------------ ------
19,700 Covenant Transport* $ 236,400
9,900 Kirby Corporation * 160,875
-------
397,275
-------
Trucking & Leasing 1.75%
------------------------ ------
13,800 Swift Transportation Company. Inc.* 210,450
-------
Wholesale Special Line 0.87%
------------------------ ------
5,100 Sodak Gaming, Inc. * 105,187
-------
Total Investments 96.97% 11,680,556
Cash Equivalents 3.98% 479,221
Net Receivables/(Payables) (0.95)% (113,938)
-------- ----------
TOTAL NET ASSETS 100.00% $12,045,839
======= ===========
* Indicates nonincome-producing security.
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments
December 31, 1995
(Unaudited)
GOVERNMENT/QUALITY BOND FUND
Principal Percent of Market
Amount Net Assets Value
------- -------- -------
U.S. Government Securities 77.71%
---------------------------
200,000 Federal Home Loan Bank 5.58%, due 10/06/00 $ 197,531
197,529 Federal Home Loan Mtg. 7.00%, due 9/1/15 199,999
150,000 Federal Home Loan Mtg. 7.00%, due 11/15/19 152,812
254,809 Federal Natl. Mtg. Asso. 6.00%, due 10/01/99 254,412
246,285 Federal Natl. Mtg. Asso. 6.50%, due 10/01/02 248,749
153,433 Govt. Natl. Mtg. Asso. 6.50%, due 8/20/08 154,488
112,785 Govt. Natl. Mtg. Asso. 11.50%, due 10/15/10 128,716
233,704 Govt. Natl. Mtg. Asso. 10.00%, due 12/15/18 256,637
4,176 Govt. Natl. Mtg. Asso. 10.00%, due 5/15/19 4,586
25,518 Govt. Natl. Mtg. Asso. 9.50%, due 9/15/19 27,377
41,311 Govt. Natl. Mtg. Asso. 10.00%, due 5/15/20 45,365
129,207 Govt. Natl. Mtg. Asso. 9.50%, due 9/15/21 138,616
130,523 Govt. Natl. Mtg. Asso. 7.50%, due 4/15/22 134,194
96,023 Govt. Natl. Mtg. Asso. 7.50%, due 5/15/23 98,724
199,167 Govt. Natl. Mtg. Asso. 7.50%, due 1/15/24 204,769
200,000 Student Loan Mrkt. Asso. Float Rate, due 4/16/96 200,023
100,000 U. S. Treasury Note 5.50%, due 4/30/96 100,062
175,000 U. S. Treasury Note 6.375%, due 8/15/02 183,586
250,000 U. S. Treasury Note 5.75%, due 8/15/03 253,203
250,000 U. S. Treasury Bond 10.75%, due 8/15/05 343,555
300,000 U. S. Treasury Bond 7.125%, due 2/15/23 343,078
-------
Total U.S. Government Securities $3,670,482
---------
<PAGE>
SMITH HAYES TRUST, INC.
Schedule of Investments (Continued)
GOVERNMENT/QUALITY BOND FUND
Principal Percent of Market
Amount Net Assets Value
Corporate Bonds 18.15%
------- ----------------------------------- -------- -------
150,000 Associates Corp.North America 5.25%, due 9/01/08$ 148,941
100,000 Bankamerica Corporation 8.375%, due 3/15/02 111,522
100,000 Banc One Corporation 8.74%, due 9/15/03 115,459
225,000 Chase Manhattan Credit Card 8.75%, due 8/15/99 227,848
250,000 Sears Credit Corporation 7.75%, due 9/15/98 253,750
Total Corporate Bonds 857,520
Total Investments 95.86% 4,528,002
Cash Equivalents 2.93% 138,566
Net Receivables/(Payables) 1.21% 56,974
------ ---------
TOTAL NET ASSETS 100.00% $4,723,542
====== =========
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
Statements of Assets and
Liabilities
December 31, 1995
(Unaudited)
Government/
Capital Quality
Builder Convertible Small Cap Bond
Fund Fund Fund Fund
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments in securities,
at market value (note 4) $7,667,667 1,687,210 11,680,556 4,528,002
Cash equivalents 46,140 219,949 479,221 138,566
Accrued interest and dividends receivable 14,157 11,831 16,094 69,519
Receivable for investment securities sold 203,463 - - -
Receivable for fund shares sold 996 178 37,356 255
Organizational costs, net of accumulated
amortization
5,271 - - -
------------ ---------- ---------- ----------
Total assets 7,937,694 1,919,168 12,213,227 4,736,342
------------ ---------- ---------- ----------
Liabilities:
Accrued expenses, including investment
management and services fees and
distribution expense reimbursement
payable to adviser, administrator
and distributor (note 3) 11,476 4,760 16,387 6,396
Payable for securities purchased - - 146,008 -
Payable for fund shares redeemed 4,205 293 4,993 6,404
------------ ---------- ---------- ----------
Total liabilities 15,681 5,053 167,388 12,800
------------ ---------- ---------- ----------
Net assets applicable to outstanding
capital stock $7,922,013 1,914,115 12,045,839 4,723,542
============ ========== ========== ==========
Net assets are represented by:
Capital stock outstanding, at par (note 6) 717 152 886 446
Additional paid-in capital 6,403,772 1,661,681 10,891,293 4,829,321
Accumulated undistributed net
investment income (loss) (28,601) 836 (120,447) 3,679
Accumulated undistributed net realized
gain (loss) 128,491 20 269,828 (218,019)
Unrealized appreciation (note 5) 1,417,634 251,426 1,004,279 108,115
------------ ---------- ---------- ----------
Total amount representing net assets
applicable to shares outstanding $7,922,013 1,914,115 12,045,839 4,723,542
============ ========== ========== ==========
Net asset value per share of
outstanding capital stock $11.06 12.60 13.60 10.60
============ ========== ========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
Statement of Operations
Six Months Ended December 31, 1995
(Unaudited)
Government/
Capital Quality
Builder Small Cap Bond
Convertible
Fund Portfolio Portfolio Portfolio
---------- -------- ---------- ---------
<S> <C> <C> <C> <C>
Investment income:
Dividends $56,447 15,616 53,533 -
Interest 15,158 26,345 21,826 161,950
---------- -------- ---------- ---------
Total investment income 71,605 41,961 75,359 161,950
---------- -------- ---------- ---------
Expenses (note 3):
Investment advisory fees 21,679 7,853 46,342 14,394
Administration fees 7,226 2,147 12,792 5,477
Distribution expenses 14,356 4,680 27,736 7,136
Amortization of organizational costs 93 - - -
Custodial fees 2,110 1,032 3,733 1,984
Auditing and tax accounting fees 3,951 2,020 2,620 2,747
Other operating expenses 5,145 1,031 7,418 1,940
---------- -------- ---------- ---------
Total expenses 54,560 18,763 100,641 33,678
---------- -------- ---------- ---------
Net investment income (loss) 17,045 23,198 (25,282) 128,272
---------- -------- ---------- ---------
Realized and unrealized gain on investments (note 5):
Net realized gain (loss) 128,491 94,645 1,199,344 (31,935)
---------- -------- ---------- ---------
Net unrealized appreciation (depreciation)
Beginning of period 179,058 1,325,971 (3,781)
End of period 1,417,634 251,426 1,004,279 108,115
---------- -------- ---------- ---------
Net unrealized appreciation (depreciation) 1,417,634 72,368 (321,692) 111,896
---------- -------- ---------- ---------
Net realized and unrealized
gain on investments 1,546,125 167,013 877,652 79,961
---------- -------- ---------- ---------
Net increase in net assets
resulting from operations $1,563,170 190,211 852,370 208,233
========== ======== ========== =========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
SMITH HAYES TRUST, INC.
Statements of Changes in Net Assets The Period from August
24, 1995 (commencement of operations) to
December 31, 1995 for the Capital Builder Fund and
Six Months Ended December 31, 1995 and
Year Ended June 30, 1995 for the Convertible Fund
Capital
Builder Convertible
Fund Fund
----------- ---------------------
Six Months Six Months Year
Ended Ended Ended
Dec. 31, Dec. 31, June 30,
1995 1995 1995
----------- ---------- ----------
(Unaudited) (Unaudited)
Operations:
Net investment income $17,045 23,198 56,762
Net realized gain (loss) on investments 128,491 94,645 (11,847)
Unrealized appreciation 1,417,634 72,368 202,659
----------- ---------- ----------
Net increase in net assets
resulting from operations 1,563,170 190,211 247,574
----------- ---------- ----------
Distributions to shareholders from:
Net investment income 17,093 22,449 58,599
Net realized gains - 73,269 165,477
----------- ---------- ----------
Total distributions 17,093 95,718 224,076
----------- ---------- ----------
Capital share transactions: (note 6)
Proceeds from sales 8,137,929 121,537 169,674
Payment for redemptions (1,779,086) (162,029) (1,359,579)
Reinvestment of net investment
income and net realized gain
distributions at net asset value 17,093 95,147 223,270
----------- ---------- ----------
Total increase (decrease) from
capital share transactions 6,375,936 54,655 (966,635)
----------- ---------- ----------
Total increase (decrease)
in net assets 7,922,013 149,148 (943,137)
Net assets:
Beginning of period - 1,764,967 2,708,104
----------- ---------- ----------
End of period $7,922,013 1,914,115 1,764,967
=========== ========== ==========
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
Statements of Changes in Net Assets
Six Months Ended December 31, 1995 and Year Ended June 30, 1995
Small Cap Government/Quality
Fund Bond Fund
----------------------- ----------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
Dec. 31, June 30, Dec. 31, June 30,
1995 1995 1995 1995
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
(Unaudited) (Unaudited)
Operations:
Net investment income (loss) ($25,282) (50,907) 128,272 398,566
Net realized gain (loss)
on investments 1,199,344 (37,137) (31,935) (232,150)
Unrealized appreciation
(depreciation) (321,692)1,623,590 111,896 352,454
------------ ---------- ---------- ----------
Net increase in net assets
resulting from operations 852,370 1,535,546 208,233 518,870
------------ ---------- ---------- ----------
Distributions to shareholders from:
Net investment income - - 128,557 406,678
Net realized gains 897,261 276,654 - 292
------------ ---------- ---------- ----------
Total distributions 897,261 276,654 128,557 406,970
------------ ---------- ---------- ----------
Capital share transactions: (note 6)
Proceeds from sales 2,364,539 3,211,418 589,006 767,050
Payment for redemptions (735,656)(2,372,561) (757,819) (5,398,157)
Reinvestment of net investment
income and net realized gain
distributions at net asset value 872,059 273,095 118,755 380,984
------------ ---------- ---------- ----------
Total increase (decrease) from
capital share transactions 2,500,942 1,111,952 (50,058) (4,250,123)
------------ ---------- ---------- ----------
Total increase (decrease)
in net assets 2,456,051 2,370,844 29,618 (4,138,223)
Net assets:
Beginning of period 9,589,788 7,218,944 4,693,924 8,832,147
------------ ---------- ---------- ----------
End of period $12,045,839 9,589,788 4,723,542 4,693,924
============ ========== ========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Period from August 24, 1995 (commencement of operations)
to December 31, 1995
(Unaudited)
Capital Builder
Fund
-----------------
Net asset value:
Beginning of period $10.00
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gain
on investments 1.06
-----
Total income from
investment operations 1.08
----
Distributions from net investment (0.02)
income
End of period $11.06
=====
Total return 30.44% *
======
Ratios/Supplemental data:
Net assets, end of period $7,922,013
Ratio of expenses to average net assets 1.89% *
Ratio of net income to average net assets 0.59% *
Portfolio turnover rate 17.22%
*Annualized for those periods less than
twelve months in duration.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Six Months Ended December 31, 1995 and Years Ended June
30, 1995, 1994, 1993, 1992 and 1991
Convertible Fund
------------------------------------------------------------
Six Months Ended
Dec. 31, 1995 1994 1993 1992 1991
1995
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period $11.97 11.69 12.58 10.76 9.96 9.86
----- ---- ----- ----- ---- -----
Income (loss) from
investment operations:
Net investment income 0.16 0.30 0.29 0.33 0.31 0.40
Net realized and unrealized
gain (loss)
on investments 1.13 1.01 (0.53) 2.16 0.80 (0.06)
---- ---- ----- ----- ---- -----
Total income (loss)
from investmen operations 1.29 1.31 (0.24) 2.49 1.11 0.34
---- ---- ----- ----- ---- -----
Less distributions:
Dividends from net
investment income (0.16) (0.30) (0.29) (0.33) (0.31) (0.21)
Distributions from
capital gains (0.50) (0.73) (0.36) (0.34) - (0.03)
---- ---- ----- ----- ---- -----
Total distributions (0.66) (1.03) (0.65) (0.67) (0.31) (0.24)
---- ---- ----- ----- ---- -----
End of period $12.60 11.97 11.69 12.58 10.76 9.96
===== ===== ===== ===== ===== =====
Total return 21.62% * 14.09% (2.26%) 24.06% 10.95% 5.09%
===== ===== ===== ===== ===== =====
Ratios/Supplemental data:
Net assets, end of period $1,914,115 1,764,967 2,708,104 2,368,876 1,791,325 1,188,680
Ratio of expenses to
average net assets 2.00% * 2.25% 2.06% 2.13% 2.48% 2.79%
Ratio of net income to
average net assets 2.47% * 2.58% 2.27% 2.91% 2.85% 3.48%
Portfolio turnover rate 19.40% 51.31% 65.76% 69.72% 96.02% 70.77%
<FN>
*Annualized for those periods less than twelve months in duration.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Six Months Ended December 31, 1995 and Years Ended June
30, 1995, 1994 and 1993
Small Cap Fund
---------------------------------------------------
Six Months Ended
Dec. 31, 1995 1994 1993
1995
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value:
Beginning of period $13.49 11.59 11.77 10.00
----- ----- ----- -----
Income from investment operations:
Net investment loss (0.03) (0.08) (0.07) (0.05)
Net realized and unrealized gain
on investments 1.24 2.34 0.20 1.83
---- ----- ----- ----
Total income from
investment operations 1.21 2.26 0.13 1.78
----- ----- ----- -----
Distributions from capital gains (1.10) (0.36) (0.31) (0.01)
----- ----- ----- -----
End of period $13.60 13.49 11.59 11.77
====== ===== ===== =====
Total return 17.87% * 20.33% 1.21% 17.80%
====== ===== ===== =====
Ratios/Supplemental data:
Net assets, end of period $12,045,839 9,589,788 7,218,944 3,137,762
Ratio of expenses to average
net assets 1.81% * 1.93% 1.91% 2.18%
Ratio of net income to average
net assets (0.45%)* (0.60%) (0.60%) (0.87%)
Portfolio turnover rate 57.46% 86.50% 75.23% 47.55%
<FN>
*Annualized for those periods less
than twelve months in duration.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Six Months Ended December 31, 1995 and Years Ended
June 30, 1995, 1994, 1993, 1992 and 1991
Government/Quality Bond Fund
--------------------------------------------------------------
Six Months Ended
Dec. 31, 1995 1994 1993 1992 1991
1995
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period $10.43 10.21 11.17 10.93 10.42 10.31
----- ----- ----- ----- ----- -----
Income (loss) from investment operations:
Net investment income 0.29 0.60 0.54 0.64 0.73 0.57
Net realized and unrealized
gain (loss) on investments 0.17 0.22 (0.75) 0.43 0.60 0.11
----- ----- ----- ----- ----- -----
Total income (loss)
from investment operations 0.46 0.82 (0.21) 1.07 1.33 0.68
----- ----- ----- ----- ----- -----
Less distributions:
Dividends from net
investment income (0.29) (0.60) (0.54) (0.64) (0.71) (0.51)
Distributions from
capital gains - - (0.21) (0.19) (0.11) (0.06)
----- ----- ----- ----- ----- -----
Total distributions (0.29) (0.60) (0.75) (0.83) (0.82) (0.57)
----- ----- ----- ----- ----- -----
End of period $10.60 10.43 10.21 11.17 10.93 10.42
====== ===== ===== ===== ===== =====
Total return 8.87% * 9.42% (2.00%) 11.00% 12.79% 8.91%
====== ===== ===== ===== ===== =====
Ratios/Supplemental data:
Net assets, end of period $4,723,542 4,693,924 8,832,147 9,709,386 8,112,226 6,060,110
Ratio of expenses to
average net assets 1.41% * 1.47% 1.37% 1.38% 1.50% 1.58%
Ratio of net income to
average net assets 5.37% * 5.86% 4.94% 6.25% 6.64% 6.92%
Portfolio turnover rate 18.56% 9.33% 218.11% 175.95% 507.52% 102.55%
<FN>
*Annualized for those periods less than twelve
months in duration.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
December 31, 1995
(Unaudited)
1. Organization
SMITH HAYES Trust, Inc. (the Trust) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust issues its shares in series, each series
representing a distinct fund with its own investment objectives and
policies. These financial statements relate only to the following funds:
Capital Builder Fund Small Cap Fund
Convertible Fund Government/Quality Bond Fund
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies employed by
the Trust in preparing its financial statements:
Valuation of Investments
Investment securities are carried at market determined using the following
valuation methods:
o Securities traded on a national or regional stock exchange or included
in the NASDAQ National Market System are valued at the last quoted sales
price.
o Securities not listed on an exchange or securities for which a latest
quoted sales price is not readily available and securities traded
over-the-counter but not included in the NASDAQ National Market System
are valued at the mean of the closing bid and asked prices.
o Securities including bonds or other assets for which reliable recent
market quotations are not readily available are valued at fair market
value as determined in good faith or under the direction of The Board of
Directors. Determination of fair value involves, among other things,
reference to market indices, matrices and data from independent brokers
and pricing services.
All securities are valued in accordance with the above policies at the
close of each business day.
At December 31, 1995, the cost of investment securities is identical for
financial reporting and income tax purposes.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
2. Continued
When a call option is written on behalf of a fund, an amount equal to the
premium received by the fund is included by the fund in the fund's
statement of assets and liabilities as a liability. The amount of the
liability is subsequently marked to market to reflect the current value of
the option written. The current market value of a traded option is the last
sales price on the principal exchange on which such options are traded, or
in the absence of such a sale, at the latest ask quotation. When an option
expires on its stipulated expiration date or the fund enters into a closing
purchase transaction, the fund realizes a gain (or loss if the cost of a
closing transaction exceeds the premium received when the option was sold)
without regard to any unrealized gain or loss on the underlying security,
and the liability related to such option is extinguished. When an option is
exercised, the fund realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale are decreased by the premium
originally received.
When a put option is written, an amount equal to the premium paid by the
fund is included by the fund in the fund's statement of assets and
liabilities as an asset. The amount of the asset is subsequently marked to
market to reflect the current value of the option written. The current
market value of a traded option is the last sales price on the principal
exchange on which such options are traded, or in the absence of such a
sale, at the latest ask quotation. When an option expires on its stipulated
expiration date or the fund enters into a closing sales transaction, the
fund realizes a gain (or loss if the cost of a closing transaction is lower
than the premium paid when the option was sold) without regard to any
unrealized gain or loss on the underlying security, and the asset related
to such option is extinguished. When an option is exercised, the fund
realizes a gain or loss from the sale of the underlying security and the
proceeds from the sale are increased by the premium originally paid.
At December 31, 1995, the funds authorized to write option contracts had no
such option contracts outstanding nor were any written during the period.
Security Transactions
Security transactions are accounted for on the date securities are
purchased or sold (trade date). Dividend income is recognized on the
ex-dividend date and interest income, including amortization of premium and
discount on the straight-line basis, is accrued daily.
Realized investment gains and losses are determined by specifically
identifying the issue sold.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
2. Continued
Federal Income Taxes
It is the policy of each fund to comply with requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
virtually all of the taxable income generated by the funds to their
shareholders within the time period allowed by Federal law. Each fund is
treated as a separate entity for tax purposes, and on a calendar basis will
distribute substantially all of its net investment income and realized
gains, if any, to avoid payment of any federal excise tax. The funds will
not distribute net realized losses. Distributions will be made when capital
gains have been generated to cover these losses. Each fund prepares its tax
return on an accrual basis.
Distributions to Shareholders
Dividends to shareholders are recorded on the ex-dividend date.
Cash Equivalents
The Trust considers investments with a maturity of three months or less
when purchased to be cash equivalents.
3. Related Party Transactions
The Trust and each fund have retained CONLEY SMITH, Inc. (the Adviser) as
their exclusive investment adviser. The agreement provides that each fund,
except the Government/Quality Bond Fund, will pay the Adviser a fee equal
to .75% per annum of the fund's average daily net assets. The
Government/Quality Bond Fund pays .60% per annum of its average daily net
assets.
On July 18, 1995, the Trust and each fund also retained Lancaster
Administrative Services, Inc. (the Administrator), as successor to CONLEY
SMITH, Inc., to act as its administrator and transfer agent. The agreement
provides that each fund will pay an administrative fee to the Administrator
equal to .25% per annum of its average daily net assets.
In addition to the advisory and administrative services agreements, the
Trust and each fund have retained SMITH HAYES Financial Services
Corporation (the Distributor), a company related through common ownership
and management, to act as the underwriter and distributor of the fund's
shares. Pursuant to the shareholder approved distribution plan under Rule
12b-1, each fund will reimburse the
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
3. Continued
distributor for shareholder-related expenses incurred in connection with
the distribution of the fund's shares, however, under no circumstances
shall such reimbursement exceed .50% per annum of the fund's average daily
net assets (.25% for the Government/Quality Bond Fund).
Under the terms of the advisory, administrative and distribution agreements
outlined above, the funds collectively paid $90,268, $27,642 and $53,908,
respectively, for such services. Of the amount paid to the Distributor,
$48,330 was retained by them for sales of the Trust's shares made by their
agents and brokers.
At December 31, 1995, the following accrued investment management,
administrative fees and distribution expenses were payable to the Adviser,
Administrator and the Distributor:
Payable Payable Payable
to to to
Adviser Administrator Distributor Total
------- ------------- ---------- ------
Capital Builder Fund $5,022 $1,674 $3,339 $10,035
Convertible Fund 1,213 404 824 2,441
Small Cap Fund 7,482 2,494 4,880 14,856
Government/Quality
Bond Fund 2,412 1,005 1,074 4,491
Under the terms of the adviser agreement, the Adviser may be obligated to
reimburse a fund up to the amount of the Adviser's fee paid to the Adviser
if during any year the expenses of the fund, including the Adviser's fee,
exceed certain limitations. At December 31, 1995, no expense reimbursement
was required.
In addition to the amounts paid by the funds under the adviser,
administrative and distribution plans, the funds primarily used SMITH HAYES
Financial Services Corporation (SMITH HAYES) to affect security trades on
their behalf. As is customary in the industry, the investment sub-advisers
evaluate the pricing and ability to execute the transaction in selecting
brokers to affect trades. SMITH HAYES was paid commissions in the amount of
$13,482 for their brokerage services during the six months ended December
31, 1995.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
4. Investments
Cost of investment securities held at December 31, 1995, was as follows for
each fund:
Capital Builder Fund $ 6,250,033
Convertible Fund 1,435,784
Small Cap Fund 10,676,277
Government/Quality Bond Fund 4,419,887
5. Securities Transactions
Purchases of securities and proceeds from sales during the six months ended
December 31, 1995, were as follows for each fund:
Purchases of Proceeds
Securities from Sales
------------ ----------
Capital Builder Fund $7,733,689 $1,312,105
Convertible Fund 330,232 568,929
Small Cap Fund 7,642,107 6,010,753
Government/Quality Bond Fund 3,133,926 2,960,470
At December 31, 1995, the aggregate gross unrealized appreciation and the
aggregate gross unrealized depreciation of securities in each fund were as
follows:
Aggregate Gross
Unrealized
Appreciation Depreciation
------------ ------------
Capital Builder Fund $1,539,984 $122,350
Convertible Fund 285,665 34,239
Small Cap Fund 1,416,674 412,395
Government/Quality Bond Fund 126,808 18,693
6. Capital Share Transactions
The Trust is authorized to issue a total of one billion shares of common
stock in series with a par value of $.001 per share. The following
summarizes the shares of each fund at December 31, 1995:
Shares
Authorized Outstanding
---------- -----------
Capital Builder Fund 50,000,000 716,504.115
Convertible Fund 50,000,000 151,906.642
Small Cap Fund 50,000,000 885,886.983
Government/Quality Bond Fund 50,000,000 445,727.623
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
6. (Continued)
Transactions in the capital stock of each fund for the six months ended
December 31, 1995, were as follows:
Capital
Builder Convertible
Fund Fund
------------- ------------
Transactions in shares:
Shares sold 885,171.610 9,531.176
Shares redeemed (170,231.364) (12,698.012)
Reinvested distributions 1,563.869 7,666.951
Net decrease 716,504.115 4,500.115
Government/
Small Cap Quality Bond
Fund Fund
------------ -------------
Transactions in shares:
Shares sold 162,153.798 56,221.723
Shares redeemed (51,608.568) (71,773.962)
Reinvested distributions 64,549.166 11,267.079
Net increase (decrease) 175,094.396 (4,285.160)
At December 31, 1995, directors, officers and employees of the Trust, the
Adviser, Administrator and Distributor and their immediate families held
the following in each fund:
Shares Value
------ ---------
Capital Builder Fund 34,585.687 $382,518
Convertible Fund 3,157.222 39,781
Small Cap Fund 8,736.845 118,821
Government/Quality Bond Fund 4,966.864 52,649
7. Business Changes
The Capital Builder Fund commenced operations on August 24, 1995.
Capitalization of the Capital Builder Fund occurred, in part, through the
combination of the Asset Allocation, Balanced and Value Portfolios.
<PAGE>
- ------------------------------------------------------------------------------
SMITH HAYES TRUST, INC.
ASSET ALLOCATION
BALANCED
VALUE
FINANCIAL REPORT
PERIOD FROM JULY 1, 1995
TO AUGUST 25, 1995
<PAGE>
TABLE OF CONTENTS
STATEMENT OF OPERATIONS.................................................1
STATEMENTS OF CHANGES IN NET ASSETS.....................................2
FINANCIAL HIGHLIGHTS
ASSET ALLOCATION PORTFOLIO.........................................3
BALANCED PORTFOLIO.................................................4
VALUE PORTFOLIO....................................................5
NOTES TO FINANCIAL STATEMENTS...........................................6
<PAGE>
SMITH HAYES TRUST, INC.
Statement of Operations
Period from July 1, 1995 to August 25, 1995
(Unaudited)
Asset
Allocation Balance Value
Portfolio Portfolio Portfolio
----------- ---------- ---------
Investment income:
Dividends $1,934 1,555 1,323
Interest 9,702 11,437 4,514
----- ------ -----
Total investment income 11,636 12,992 5,837
------ ------ -----
Expenses (note 3):
Investment advisory 3,062 3,405 2,518
Administration fees 562 584 462
Distribution expenses 1,435 1,570 1,177
Other operating expenses 2,179 1,436 3,813
----- ----- -----
Total expenses 7,238 6,995 7,970
----- ----- -----
Net investment income (loss) 4,398 5,997 (2,133)
----- ----- -------
Realized and unrealized gain (loss) on
investments:
Net realized gain 288,959 305,004 193,236
------- ------- -------
Net unrealized appreciation (depreciation)
Beginning of period 239,504 290,401 142,321
End of period - - -
------- ------- -------
Net unrealized depreciation (239,504) (290,401) (142,321)
Net realized and unrealized gain on
investments 49,455 14,603 50,915
Net increase in net assets resulting
from operations $53,853 20,600 48,782
======= ====== ======
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
Statements of Changes in Net Assets
Period from July 1, 1995 to August 25, 1995 and
Year Ended June 30, 1995
Asset Allocation Balanced Value
Portfolio Portfolio Portfolio
------------------ --------------- ----------------
1995 1995 1995 1995 1995 1995
(Unaudited) (Unaudited) (Unaudited)
---------- ------ --------- ------ --------- -----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $4,398 92,804 5,997 139,672 (2,133) ($20,654)
Net realized gain
on investments 288,959 226,971 305,004 277,943 193,236 493,830
Unrealized appreciation
(depreciation) (239,504) 122,454 (290,401) 37,878 (142,321) (273,014)
--------- ------- --------- ------- --------- ---------
Net increase in net
assets resulting
from operations 53,853 442,229 20,600 455,493 48,782 200,162
------ ------- ------- ------- -------- --------
Distributions to shareholders from:
Net investment income 4,441 93,316 6,012 140,859 - -
Net realized gains 365,277 735,471 383,929 490,579 552,865 409,507
------- ------- ------- ------- ------- -------
Total distributions 369,718 828,787 389,941 631,438 552,865 409,507
------- ------- ------- ------- ------- -------
Capital share transactions:
Proceeds from sales 280 89,077 12,209 295,171 24,700 323,001
Payment for redemptions (115,492) (3,881,092) (658,834) (4,899,867) (107,810) (4,155,154)
Shares transfered in
connections with
reorganization (1,931,940) - (1,834,768) - (1,619,991) -
Reinvestment of net
investment income
and net realized
gain distributions
at net asset value 369,719 828,787 384,490 623,511 552,864 409,507
-------- -------- -------- -------- --------- ---------
Total decrease from
capital share
transactions (1,677,433) (2,963,228) (2,096,903) (3,981,185) (1,150,237) (3,422,646)
---------- ----------- ----------- --------- ---------- ---------
Total decrease in
net assets (1,993,298) (3,349,786) (2,466,244) (4,157,130) (1,654,320) (3,631,991)
Net assets:
Beginning of period $1,993,298 5,343,084 2,466,244 6,623,374 1,654,320 5,286,311
---------- --------- --------- --------- --------- ---------
End of period - 1,993,298 - 2,466,244 - 1,654,320
========== ========= ========= ========== ========= ==========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Period from July 1, 1995 to August 25, 1995 and Years Ended
June 30, 1995, 1994, 1993, 1992 and 1991
Asset Allocation Portfolio
------------------------------------------------
1995 1995 1994 1993 1992 1991
(Unaudited)
------- ----- ---- ---- ---- ----
Net asset value:
Beginning of period $10.37 11.08 12.33 11.61 10.96 10.09
------ ----- ----- ----- ----- -----
Income (loss) from
investment operations:
Net investment income 0.02 0.27 0.07 0.11 0.12 0.24
Net realized and
unrealized gain
(loss) on investments 0.26 1.02 (0.15) 1.00 0.78 1.14
---- ---- ------ ---- ---- ----
Total income (loss)
from investment
operations 0.28 1.29 (0.08) 1.11 0.90 1.38
---- ---- ------ ---- ---- ----
Less distributions:
Dividends from net
investment income (0.02) (0.27) (0.07) (0.11) (0.12) (0.34)
Distributions from
capital gains (2.02) (1.73) (1.10) (0.28) (0.13) (0.17)
------ ------ ------ ------ ------ ------
Total distributions (2.04) (2.00) (1.17) (0.39) (0.25) (0.51)
------ ----- ------ ------ ------ ------
Shares transfered in
reorganization (8.61)
------
End of period $0.00 10.37 11.08 12.33 11.61 10.96
===== ===== ===== ====== ====== =====
Total return 17.53%* 19.10% (.66%) 9.51% 8.19% 12.95%
====== ====== ====== ===== ===== ======
Ratios/Supplemental data:
Net assets, end
of period - 1,993,298 5,343,084 6,433,995 6,937,275 6,470,722
$
-
Ratio of expenses to
average net assets 2.37%* 2.12% 1.96% 1.93% 2.15% 2.39%
Ratio of net income
to average
net assets 1.44%* 2.57% 0.64% 0.91% 1.04% 2.05%
Portfolio turnover rate - 46.38% 117.77% 40.53% 19.42% 48.30%
* Annualized for those periods less than twelve months in duration See
accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Period from July 1, 1995 to August 25, 1995 and Years Ended
June 30, 1995, 1994, 1993, 1992 and 1991
Balanced Portfolio
----------------------------------------------------------
1995 1995 1994 1993 1992 1991
(Unaudited)
--------- ---- ---- ---- ---- ----
Net asset value:
Beginning of period $10.90 11.26 12.23 11.10 10.72 10.77
------ ----- ----- ----- ----- -----
Income (loss) from
investment operations:
Net investment
income 0.03 0.33 0.20 0.34 0.36 0.37
Net realized and
unrealized gain
(loss) on
investments 0.07 0.74 (0.43) 1.13 0.38 0.02
---- ---- ------ ---- ---- ----
Total income (loss)
from investment
operations 0.10 1.07 (0.23) 1.47 0.74 0.39
---- ---- ------ ---- ---- ----
Less distributions:
Dividends from net
investment income (0.03) (0.33) (0.20) (0.34) (0.36) (0.34)
Distributions from
capital gains (2.30) (1.10) (0.54) - - (0.10)
------ ------ ------ ----- ------ ------
Total distributions (2.33) (1.43) (0.74) (0.34) (0.36) (0.44)
------ ------ ------ ----- ------ ------
Shares transfered
in reorganization (8.67)
End of period $0.00 10.90 11.26 12.23 11.10 10.72
===== ===== ===== ===== ===== =====
Total return 6.06%* 11.18% (1.99%) 13.16% 6.81% 4.84%
===== ====== ====== ====== ===== =====
Ratios/Supplemental data:
Net assets,
end of period $ - 2,466,244 6,623,374 6,991,590 7,386,180 6,122,831
Ratio of expenses
to average
net assets 2.09%* 1.96% 1.91% 1.89% 2.13% 2.31%
Ratio of net income
to average
net assets 1.79%* 2.92% 1.65% 2.59% 3.20% 3.95%
Portfolio turnover
rate 128.73% 78.34% 24.17% 24.72% 40.63% 31.70%
* Annualized for those periods less than twelve months in duration See
accompanying notes to financial statements.
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
Period from July 1, 1995 to August 25, 1995 and Years Ended
June 30, 1995, 1994, 1993, 1992 and 1991
Value Portfolio
-----------------------------------------------------------
1995 1995 1994 1993 1992 1991
(Unaudited)
---------- ---- ---- ---- ---- ----
Net asset value:
Beginning of period $11.29 11.29 11.92 10.24 9.35 9.75
------ ----- ----- ----- ---- ----
Income (loss)
from investment
operations:
Net investment
income (0.01) (0.06) (0.06) 0.02 0.00 0.14
Net realized and
unrealized gain (loss)
on investments 0.36 0.69 (0.57) 1.68 0.90 (0.25)
---- ---- ------ ---- ----- ------
Total income (loss)
from investment
operations 0.35 0.63 (0.63) 1.70 0.90 (0.11)
---- ---- ------ ---- ----- ------
Dividends from net
investment income - - (0.02) (0.01) (0.29)
Distributions from
capital gains (4.03) (0.70) - - - -
------ ------ ------ ------ ------ ------
Total distributions (4.03) (0.70) - (0.02) (0.01) (0.29)
------ ------ ------ ------- ------ ------
Shares transfered in
reorganization (7.61)
-----
End of period $0.00 11.22 11.29 11.92 10.24 9.35
===== ===== ===== ===== ===== ======
Total return 19.36%* 11.30% (5.29%) 16.60% 9.67% (2.42%)
====== ====== ======= ====== ===== =======
Ratios/Supplemental
data:
Net assets,
end of period $ - 1,654,320 5,286,311 6,168,798 5,138,910 3,983,877
Ratio of expenses to
average net assets 3.17%* 2.11% 1.98% 1.97% 2.35% 2.46%
Ratio of net income
to average
net assets (0.85%)* (0.58%) (0.48%) (0.03%) 0.18% 1.70%
Portfolio turnover
rate 77.27% 96.81% 68.07% 62.24% 113.56% 31.78%
* Annualized for those periods less than twelve months in duration
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
Period From July 1, 1995 to August 25, 1995
(Unaudited)
1. Organization
SMITH HAYES Trust, Inc. (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund issues its shares in series, each series
representing a distinct portfolio with its own investment objectives and
policies. These are the final financial statements of the Asset Allocation
Portfolio, Balanced Portfolio and Value Portfolio. On August 25, 1995
shareholders approved a plan of reorganization, transferring all shares of
the Asset Allocation Portfolio, Balanced Portfolio, and Value Portfolio into
Capital Builder Fund shares.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies employed by
the Fund in preparing these financial statements:
Security Transactions
Security transactions were accounted for on the date securities were
purchased or sold (trade date). Dividend income was recognized on the
ex-dividend date and interest income, including amortization of premium and
discount on the straight-line basis, was accrued daily.
Realized investment gains and losses are determined by specifically
identifying the issue sold.
Federal Income Taxes
It was the policy of each portfolio to comply with requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute virtually all of the taxable income generated by the portfolios
to their shareholders within the time period allowed by Federal law. Each
portfolio is treated as a separate entity for tax purposes, and on a
calendar basis distributed substantially all of its net investment income
and realized gains, if any, to avoid payment of any federal excise tax. Each
portfolio prepared its tax return on an accrual basis.
Distributions to Shareholders
Dividends to shareholders were recorded on the ex-dividend date.
3. Related Party Transactions
The Fund and each portfolio retained CONLEY SMITH, Inc. (the Adviser) as
their exclusive investment adviser. The agreement provides that each
portfolio paid the Adviser a fee equal to 1% per annum of the portfolio's
average daily net assets.
On July 18, 1995 the Fund and each portfolio also retained Lancaster
Administrative Services, Inc. (the Administrator) to act as their
administrator to provide routine administrative services and to serve as
transfer agent. The agreement provides that the portfolios paid an
administrative fee to the Administrator equal to .1875% per annum of the
average daily net assets of each portfolio.
In addition to the advisory and administrative services agreements, the
Trust and each portfolio retained SMITH HAYES Financial Services Corporation
(the Distributor), a company related through common ownership and
management, to act as the underwriter and distributor of the portfolio's
shares. Pursuant to the shareholder approved distribution plan under Rule
12b-1, each portfolio reimbursed the distributor for shareholder-related
expenses incurred in connection with the distribution of the portfolio's
shares 50% per annum of the portfolio's average daily net assets.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
Period From July 1, 1995 to August 25, 1995
(Unaudited)
3. Continued
Under the terms of the advisory and administrative and distribution
agreements outlined above, the portfolios collectively paid $8,985 $1,608
and $4,182 respectively, for such services. Of the amount paid to the
Distributor, $2,354 was retained by them for sales of the Trust's shares
made by their agents and brokers.
Under the terms of the adviser agreement, the Adviser may be obligated to
reimburse a portfolio up to the amount of the Adviser's fee paid to the
Adviser if during any year the expenses of the portfolio, including the
Adviser's fee, exceed certain limitations. At August 25, 1995, no expense
reimbursement was required.
In addition to the amounts paid by the portfolios under the adviser,
administrative and distribution plans, the portfolios primarily used SMITH
HAYES Financial Services Corporation (SMITH HAYES) to affect security trades
on their behalf. As is customary in the industry, the investment
sub-advisers evaluate the pricing and ability to execute the transaction in
selecting brokers to affect trades. SMITH HAYES was paid commissions in the
amount of $11,057 for their brokerage services during the period ended
August 25, 1995.
4. Securities Transactions
Purchases of securities and proceeds from sales during the period from July
1, 1995 to August 25, 1995, were as follows for each portfolio:
Purchases of Proceeds
Securities from Sales
----------- -----------
Asset Allocation Portfolio $ - $ 1,938,681
Balanced Portfolio 1,583,142 3,767,581
Value Portfolio 1,220,250 2,814,416
========== ==========
5. Capital Share Transactions
Transactions in the capital stock of each portfolio for the period from July
1, 1995 to August 25, 1995, were as follows:
Asset
Allocation Balanced Value
Portfolio Portfolio Portfolio
---------- ---------- ------------
Transactions in shares
Shares sold 26.333 1,107.877 2,111.111
Shares redeemed (235,131.320) (271,624.010) (222,241.428)
Reinvested distributions 42,940.611 44,347.182 72,649.770
------------ ------------- ------------
Net decrease (192,164.376) (226,168.951) (147,480.547)
============ ============== =============
<PAGE>
- -------------------------------------------------------------------------------
SMITH HAYES TRUST, INC.
NEBRASKA TAX-FREE FUND
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
TABLE OF CONTENTS
Schedule of Investments........................ 1
Statement of Assets and Liabilities............ 8
Statement of Operations........................ 9
Statements of Changes in Net Assets............ 10
Financial Highlights........................... 11
Notes to Financial Statements.................. 12
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
(Unaudited)
PERCENT
OF NET
PRINCIPAL ASSETS MARKET
AMOUNT TAX-EXEMPT SECURITIES 97.30% VALUE
----------- ------------------------------------------------ -----------
Education 9.53%
---------------------------------- --------
200,000 Nebraska Educational Facilities Authority
Revenue Bonds, Series 1993 (Nebraska Wesleyan
University Project), 5.55% due 9/1/07 $206,937
100,000 Nebraska Educational Finance Authority Revenue
Bonds, Series 1994 (Dana College Project),
6.75% due 6/1/14 108,062
200,000 Nebraska Educational Finance Authority Revenue
Bonds, Series 1995 (Midland Lutheran College Project),
6.25% due 6/15/15 203,610
300,000 Nebraska Higher Education Loan Program, Inc.
Junior Subordinate Bonds, Series A-6,
6.40% due 6/1/13 313,527
100,000 Nebraska State College Revenue Bonds, Series
1992, 5.00% due 6/15/97 100,932
100,000 Nebraska State Educational Service Unit No. 3
Series1993 A, 5.50% due 6/1/13 96,573
---------
1,029,641
---------
Electric, Water, Sewer 12.87%
----------------------- -----
300,000 City of Grand Island, Sewer System Revenue
Bonds Series 1994, 6.00% due 4/1/14 311,148
150,000 City of Grand Island Nebraska Electric Revenue
Bonds 5.60% due 9/1/97 153,893
100,000 City of Hastings, Nebraska Combined Utility
Revenue Bonds Series 1994, 6.875% due 10/15/14 106,562
200,000 City of Hastings, Nebraska Electric System
Revenue Refunding Bonds, Series 1993, 5.00% due 1/1/08 $195,854
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ---------- ---------------------------------------- ------- -------
Electric, Water, Sewer (Continued)
---------------------------------
100,000 City of Kearney, Nebraska Combined Utilities
Revenue Refunding Bonds, Series 1993,
5.25% due 6/1/01 $102,835
200,000 City of Kearney, Nebraska Combined Utilities
Revenue Refunding Bonds, Series 1994,
6.10% due 6/1/14 210,998
100,000 City of Lincoln, Nebraska Electric System
Revenue Refunding Bonds, 1993 Series A,
5.20% due 9/1/08 100,558
205,000 City of Lincoln, Nebraska Electric System
Revenue Refunding Bonds, 1992 Series A (Power Supply
Facilities), 5.75% due 9/1/16 208,309
-------
1,390,157
---------
General Obligation 25.34%
-------------------------------- -----------
50,000 Boyd County Nebraska School District No. 38
(Spencer - Naper) General Obligation Bonds,
5.85% due 6/15/13 51,380
150,000 Buffalo County Nebraska School District No.
105 (Pleasanton) General Obligation Bonds, Series 1993,
5.95% due 12/15/07 160,614
120,000 Colfax County Nebraska School District No. 2
(Schuyler)General Obligation Bonds, Series 1993, 5.65%
due 12/15/09 124,104
150,000 Colfax County Nebraska School District No. 2
(Schuyler)General Obligation Bonds, Series 1993,
5.75% due 12/15/11 155,565
100,000 Douglas County Nebraska Sanitary and
Improvement District No. 257
General Obligation Refunding Bonds (Ramble
Ridge), 6.25% due 5/15/09 106,143
100,000 Douglas County Nebraska School District No.
010, (Elkhorn Public Schools) General Obligation Bonds,
Series of 1994 6.40% due 12/15/06 $100,000
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ----------- --------------------------------------- ------- -------
General Obligation (Continued)
-------------------------------
150,000 Douglas County Nebraska School District No.
010, (Elkhorn Public Schools) General Obligation Bonds,
Series of 1994 6.40% due 12/15/08 $160,817
100,000 Douglas County Nebraska School District No.
010, (Elkhorn Public Schools) General Obligation Bonds,
Series of 1994 6.60% due 12/15/10 107,252
100,000 Douglas County Nebraska School District No.
010, (Elkhorn Public Schools) General Obligation Bonds,
Series of 1994 6.75% due 12/15/14 107,334
50,000 Hall County, Nebraska School District No. 2
General Obligation Bonds, 5.15% due 12/1/14 48,511
100,000 Keith County School District 001 Nebraska,
(Ogallala Public School)General Obligation
School Building Bond, Series 1994B,
6.30% due 11/15/09 105,843
565,000 Lancaster County School District 001 (Lincoln)
Lease Purchase General Obligation Bonds, 4.15%
due 10/26/00 565,000
100,000 Lincoln-Lancaster County Public Building
Commission General Obligation Bonds, Series 1994,
6.20% due 10/15/11 108,419
100,000 Morrill County Nebraska School District No.
021, (Bayard)General Obligation Bonds,
5.80% due 5/15/06 103,143
100,000 City of North Platte Nebraska General
Obligation Various Purpose Bonds, Series 1995,
6.20% due 3/15/15 103,697
130,000 Papillion, Nebraska Municipal Facilities
Corporation Refunding Bonds (Recreational
Facilities Project), 5.45% due 1/1/10 $126,909
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ---------- ------------------------------------ ------ --------
General Obligation (Continued)
------------------------------
175,000 Saunders County, Nebraska School District #107
Cedar Bluffs Public Schools, General Obligation Bonds,
6.35% due 7/1/14 $183,015
150,000 Washington County, Nebraska School District
001, Blair Community Schools, General Obligation Bonds,
5.90% due 7/15/15 153,236
150,000 Western Nebraska Community College
Certificates of Participation
Lease Rentals, 6.55% due 10/15/13 165,904
---------
2,736,886
---------
Hospital 9.13%
----------------------------------------- ---------
100,000 Douglas County Nebraska Hospital Authority No.
2 Revenue Bonds, Health Care Facilities (Catholic
Health Care Corp. A), 5.85% due 11/15/03 106,349
125,000 Douglas County Nebraska Hospital Authority No.
2 Revenue Bonds, Health Care Facilities (Catholic
Health Care Corp. A), 6.00% due 11/15/15 130,501
100,000 Douglas County Nebraska Hospital Authority No.
1 Revenue Bonds, Health Care Facilities (Archbishop
Bergan Mercy), 6.25% due 11/15/22 103,684
100,000 Gage County Nebraska Hospital Authority No.1
Hospital Revenue Bonds, (Beatrice Community Hospital and
Health Center Project), 6.40% due 10/1/07 108,360
200,000 Gage County Nebraska Hospital Authority No.1
Hospital Revenue Bonds, (Beatrice Community Hospital and
Health Center Project), 6.75% due 10/1/14 216,884
100,000 Kearney County Nebraska Hospital Authority No.
1 Revenue Bonds, Series 1993 (Bethpage Mission, of the
Great Plains, Inc.), 5.90% due 6/1/07 $106,411
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ----------- --------------------------------------- -------- -------
Hospital (Continued)
----------------------------
200,000 Lancaster County Nebraska Hospital Authority
Hospital Revenue Bonds, Series 1992 A (Sisters of
Charity Health Care Systems, Inc.), 6.25% due 5/15/12 $214,538
--------
986,727
--------
Housing 16.78%
------------------------------- ---------
150,000 Nebraska Investment Finance Authority Hospital
Revenue Bonds,(Great Plains Regional Medical Center
Project), 6.50% due 5/15/14 162,285
200,000 Nebraska Investment Finance Authority Hospital
Revenue Bonds,(Nebraska Methodist Healthcare System),
6.55% due 3/1/99 213,606
90,000 Nebraska Investment Finance Authority Revenue
Bonds,(Foundation Educational Building Fund),
7.00% due 11/1/09 92,953
100,000 Nebraska Investment Finance Authority Single
Family Housing Revenue Bonds, 1995 Series A,
6.15% due 3/1/09 107,977
100,000 Nebraska Investment Finance Authority Single
Family Housing Revenue Bonds, 1995 Series A, 6.20%
due 9/1/10 108,556
200,000 Nebraska Investment Finance Authority Single
Family Housing Revenue Bonds, 1994 Series A-1,
6.30% due 3/1/17 221,182
250,000 Nebraska Investment Finance Authority Single
Family Housing Revenue Bonds, 1995 Series B,
6.40% due 9/1/26 273,269
500,000 Nebraska Investment Finance Authority Single
Family Housing Revenue Bonds, 1994 Series D-1,
7.30% due 9/1/26 632,598
-------
$1,812,426
---------
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ----------- ---------------------------------- --------- -----
Power 11.39%
-------------- -----------
240,000 Cornhusker Public Power District Nebraska
Electric System Revenue and Refunding Bonds,
Series 1993, 5.80% due 3/1/16 $247,206
100,000 McCook Nebraska Public Power District Electric
System Revenue and Refunding Bonds, 6.75%
due 12/15/09 107,042
200,000 Municipal Energy Agency of Nebraska Power
Supply System Revenue Refunding Bonds, 1992 Series A,
6.00% due 4/1/17 209,388
250,000 Nebraska Public Power District Electric System
Revenue Bonds, Series 1993 A, 5.40% due 1/1/09 253,335
150,000 Nebraska Public Power District Revenue Bonds,
Power Supply System, Series C, 5.00% due 1/1/17 160,625
250,000 Omaha Public Power District Nebraska Electric
Revenue Bonds, Series B, 5.70% due 2/1/17 253,260
---------
1,230,856
---------
Transportation 0.92%
------------------- -------
100,000 Omaha, Nebraska Airport Authority Airport
Facilities Revenue Refunding Bonds, Series 1993,
5.50% due 1/1/13 99,650
Various Revenues 11.34%
---------------------- -------
150,000 District Energy Corporation Nebraska Facility
Revenue Bonds, Series 1993 (City-County
Building and County Correctional
Family Project), 5.50% due 7/1/13 150,839
250,000 City of Lincoln, Nebraska Parking Revenue
Bonds, Series 1994 C, 6.10% due 8/15/09 269,217
100,000 City of Lincoln, Nebraska Parking Revenue
Bonds, Series 1994 C, 6.15% due 8/15/11 $107,841
<PAGE>
NEBRASKA TAX-FREE PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
PERCENT
PRINCIPAL OF NET MARKET
AMOUNT TAX-EXEMPT SECASSETSS (Continued) ASSETS VALUE
- ----------- ---------------------------------------- ------- ------
Various Revenues (Continued)
--------------------------
200,000 Nebraska Public Gas Agency Gas Supply System
Revenue Bonds, Series A, 6.25% due 4/1/05 $213,208
200,000 Nebraska Public Gas Agency Gas Supply System
Revenue Bonds, Series A, 5.65% due 4/1/06 204,800
250,000 County of Scottsbluff, Nebraska Development
Revenue Bonds Series 1995, (Northfield Villa, Inc. - The
Residency Project), 6.90% due 4/1/20 278,529
---------
1,224,434
---------
Total Investments in Securities 97.30% $10,510,777
Cash Equivalents 1.63% 175,871
Net Receivables/(Payable 1.07% 115,553
----------- -------------
TOTAL NET ASSETS 100.00% $10,802,201
=========== =============
See accompanying notes to financial statements.
<PAGE>
NEBRASKA TAX-FREE FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
(Unaudited)
Assets:
Investments in securities, at market value (cost $10,006,421) $10,510,777
Cash equivalents 175,871
Accrued interest and dividends receivable 153,634
-------------
Total assets 10,840,282
-------------
Liabilities:
Accrued expenses, including investment management,
administration and distribution expense reimbursements
payable to the adviser, administrator and distributor (note 3) 7,332
Payable for fund shares redeemed 30,749
-------------
Total liabilities 38,081
-------------
Net assets applicable to outstanding capital stock $10,802,201
=============
Net assets are represented by:
Capital stock outstanding, at par 1,066
Additional paid-in capital 10,626,045
Accumulated undistributed net investment income 24,071
Accumulated undistributed net realized loss (353,337)
Unrealized appreciation (note 4) 504,356
-------------
Total amount representing net assets applicable to
1,065,988.642 outstanding shares of $.001 par value
common stock (50,000,000 shares authorized) $10,802,201
=============
Net asset value per share $10.13
======
See accompanying notes to financial statements.
<PAGE>
NEBRASKA TAX-FREE FUND
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1995
(Unaudited)
Investment Interest Income: $309,627
-----------
Expenses (note 3):
Investment advisory fees 8,167
Administration fees 6,359
Distribution expenses 13,535
Custodial fees 2,965
Auditing and tax accounting fees 2,963
Legal fees 2,028
Registration fees 2,603
Other operating expenses 3,351
-----------
Total expenses 41,971
-----------
Net investment income 267,656
-----------
Realized loss and unrealized appreciation on investments (note 4):
Net realized loss (43,874)
-----------
Net unrealized appreciation
Beginning of period 1,992
End of period 504,356
-----------
Net unrealized appreciation 502,364
-----------
Net realized and unrealized gain on investments 458,490
-----------
Net increase in net assets resulting from operations $726,146
===========
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SMITH HAYES TRUST, INC.
NEBRASKA TAX-FREE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended December 31, 1995 and Year Ended June 30, 1995
Six Months Ended
Dec 31, 1995 1995
---------------- -------
(Unaudited)
<S> <C> <C>
Operations:
Net investment income $267,656 511,758
Net realized loss on investments (43,874) (289,202)
Unrealized appreciation on investments 502,364 581,628
------------- ------------
Net increase in net assets resulting from operations 726,146 804,184
------------- ------------
Dividends paid to shareholders from net investment income: 267,484 506,537
------------- ------------
Capital share transactions:
Proceeds from shares sold (136,786.380 and 403,726.098 shares) 1,346,317 3,175,403
Distributions reinvested (14,544.450 and 25,799.151 shares) 143,912 242,880
Payment for redemptions (169,294.860 and 221,835.048 shares) (1,670,555) (2,085,987)
------------- ------------
Net increase (decrease) from capital share transactions
((17,964.030) and 207,690.201 shares) (180,326) 1,332,296
------------- ------------
Total increase in net assets 278,336 1,629,943
Net assets:
Beginning of period 10,523,865 8,893,922
------------- ------------
End of period $10,802,201 10,523,865
============= ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEBRASKA TAX-FREE FUND
FINANCIAL HIGHLIGHTS
Six Months Ended December 31, 1995 and Year Ended June
30, 1995, and for the period
from July 12, 1993 (commencement of operations) to June 30, 1994
Six Months Ended
Dec.1995 1995 1994
--------------- ------ -----
(Unaudited)
<S> <C> <C> <C>
Net asset value:
Beginning of period $9.71 9.42 10.00
---- ----- -----
Income (loss) from investment operations:
Net investment income 0.25 0.48 0.50
Net realized and unrealized gain
(loss) on investments 0.42 0.29 (0.63)
---- ---- -----
Total gain (loss) from investment operations 0.67 0.77 (0.13)
---- ---- -----
Less distributions from net investment income (0.25) (0.48) (0.45)
---- ---- -----
End of period (1) $10.13 9.71 9.42
===== ===== =====
Total return 13.8% * 8.5% (1.6%) *
===== ===== =====
Ratios/Supplemental data:
Net assets, end of period $10,802,201 10,523,865 8,893,922
Ratio of expenses to average net assets 0.77% * 0.71% 0.41% *
Ratio of net income to average net assets 4.94% * 5.15% 4.99% *
Portfolio turnover rate 9.81% 34.96% 7.45%
<FN>
*Annualized
(1) Excludes maximum sales charge of 3.90%
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
December 31, 1995
(Unaudited)
1. Organization
SMITH HAYES Trust, Inc. (the Trust) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company. These financial statements apply only to the Nebraska Tax-Free Fund
(the Fund).
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies employed by
the Fund in preparing its financial statements:
Valuation of Investments: Fund securities are valued at fair market value as
determined in good faith or under the direction of the Board of Directors.
Determination of fair value involves, among other things, reference to
market indices, matrices and data from independent brokers and pricing
services.
All securities are valued in accordance with the above policies at the close
of each business day provided that the Fund has shareholder activity.
At December 31, 1995, the cost of investment securities is identical for
financial reporting and income tax purposes.
Securities Transactions: Securities transactions are accounted for on the
date securities are purchased or sold (trade date). Interest income,
including amortization of premium and discount on the straight-line basis,
is accrued daily. Realized investment gains or losses are determined by
specifically identifying the security sold.
Federal Income Taxes: It is the policy of the Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute virtually all of its taxable income, including
any net realized gain on investments, to its shareholders. Therefore, no
Federal income tax provision is required. The Fund prepares its tax return
on an accrual basis.
Distributions to Shareholders: Dividends to shareholders are recorded
on the ex-dividend date.
Cash Equivalents: The Trust considers investments with a maturity of three
months or less when purchased to be cash equivalents.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
3. Related Party Transactions
The Fund has retained CONLEY SMITH, Inc. (the Adviser) as its exclusive
investment adviser. The agreement provides that the Fund will pay the
Adviser a fee equal to .15% per annum of its average daily net assets.
On July 18, 1995, the Fund also retained Lancaster Administrative Services,
Inc. (the Administrator), as successor to CONLEY SMITH, Inc., to act as its
administrator and transfer agent. The agreement provides that the Fund will
pay a fee to the Administrator equal to .125% per annum of the average daily
net assets.
In addition to the advisory and administrative services agreements, the Fund
has retained SMITH HAYES Financial Services Corporation (the Distributor), a
company related through common ownership and management, to act as the
underwriter and distributor of the Fund's shares. Pursuant to the
distribution plan under Rule 12b-1, the Fund will reimburse the Distributor
for shareholder-related expenses incurred in connection with the
distribution of the Fund's shares, however under no circumstances shall such
reimbursement exceed .25% per annum of the Fund's average daily net assets.
Under the terms of the advisory, administrative and distribution agreements
outlined above, the Fund paid $8,167, $6,359, and $13,535, respectively, for
such services. Of the amount paid to the Distributor, $9,688 was retained by
them for the sale of shares made by their agents and brokers. The
Distributor also received $8,217 and retained $1,855 (after allowances to
dealers) as its portion of the sales charges paid by purchasers of the Fund
shares. Such sales charges are not an expense of the Trust and hence are not
reflected in the accompanying statement of operations.
At December 31, 1995 the Fund had accrued sales charges of $115 payable to
the Distributor.
Under the terms of the advisory agreement, the Adviser may be obligated to
reimburse the Fund up to the amount of the Adviser's fee paid to the Adviser
if during any year the expenses of the Fund, including the Adviser's fee,
exceed certain limitations. At December 31, 1995 no expense reimbursement
was required.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
3. Continued
In addition to the amount paid by the Fund under the advisory,
administration and distribution plans, the Fund used SMITH HAYES Financial
Services Corporation (SMITH HAYES) to affect security trades on their
behalf. SMITH HAYES was paid commissions in the amount of $8,225 for their
brokerage services during the six months ended December 31, 1995.
At December 31, 1995, the directors, officers, and employees of the Trust,
the Adviser, Administrator and Distributor and their immediate families held
6,365.416 shares at a value of $64,482.
4. Securities Transactions
The Fund made purchases and sales of investment securities of $1,022,315 and
$1,147,097, respectively, during the six months ended December 31, 1995.
At December 31, 1995, the aggregate gross unrealized appreciation and the
aggregate gross unrealized depreciation of securities were $526,614 and
$22,258, respectively.
<PAGE>
- -------------------------------------------------------------------------------
SMITH HAYES TRUST, INC.
INSTITUTIONAL MONEY MARKET FUND
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
Statement of Net Assets........................ 1
Statement of Operations........................ 3
Statements of Changes in Net Assets............ 4
Financial Highlights........................... 5
Notes to Financial Statements.................. 6
<PAGE>
SMITH HAYES TRUST, INC.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
December 31, 1995
(Unaudited)
Yield at
Par Time of Amortized
Value Description Purchase Cost
- ---------------- ------------------------------------- -------- -----------
Certificates of Deposit --4%
95,000 Beatrice National Bank and Trust
Company, Beatrice, Nebraska, due 8/9/96 6.30% $95,000
95,000 First Bank & Trust Company,
Cozad, Nebraska, due 6/16/96 5.60% 95,000
95,000 Curtis State Bank,
Curtis Nebraska, due 3/16/96 6.25% 95,000
95,000 Farmers State Bank,
Carroll Nebraska, due 6/16/96 6.92% 95,000
95,000 First National Bank
Holdrege Nebraska, due 5/10/96 6.35% 95,000
95,000 First National Bank
York Nebraska, due 4/02/96 6.00% 95,000
95,000 Havelock Bank
Lincoln Nebraska, due 8/03/96 5.80% 95,000
95,000 Lexington State Bank,
Lexington Nebraska, due 2/18/96 6.70% 95,000
95,000 Minden Exchange Bank & Trust Company
Minden Nebraska, due 6/27/96 6.35% 95,000
-------------
Total (cost $855,000) 855,000
-------------
Government Securities --2%
150,000 Federal Home Loan Mtg. Corp., due 5.55% 149,935
1/4/96
200,000 Federal National Mtg. Assn., due 5.52% 198,490
2/21/96
200,000 U.S. Treasury Bill, due 1/11/96 4.98% 199,733
------------
Total (cost $548,158) 548,158
-------------
<PAGE>
SMITH HAYES TRUST, INC.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
December 31, 1995 (Continued)
(Unaudited)
TrustCertificates -- U.S. Government Guaranteed Student Loans -- 90%
23,000,000 Mid-America Student Finance Trust,
due 1/09/96 to 12/26/96 (cost
$23,000,000) 5.65% * $23,000,000
-------------
Total Investments -- 96% 24,403,158
Excess of other Assets over Total Liabilities -- 4%
(Includes $8,615 payable to investment adviser,
administrator and distributor and $105,450
dividends payable to shareholders) 1,099,406
-------------
Net Assets -- 100%
Applicable to 25,502,564 outstanding shares of $.001
par value common stock (100,000,000 shares authorized) $25,502,564
=============
Net Asset Value:
Offering and redemption price per share $1.00
=============
*Interest rate fluctuates with 3-month U.S. Treasury Bill rate,
subject to no longer than 5-day settlement.
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
INSTITUTIONAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1995
(Unaudited)
Investment Interest Income $685,939
-----------
Expenses (note 2):
Investment advisory fees 11,508
Administration fees 13,810
Distribution fee 23,037
Custodial fees 6,079
Auditing and tax accounting fees 5,268
Legal fees 4,784
Other expenses 3,278
-----------
Total expenses 67,764
-----------
Net Investment Income $618,175
===========
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
INSTITUTIONAL MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ened December 31, 1995, and Year Ended June 30, 1995
(Unaudited)
Six Months Ended
Dec. 31, 1995 1995
------------- ----------
(Unaudited)
From Investment Operations:
Net investment income
distributed to shareholders $618,175 1,080,158
============= ===========
From Share Transactions:
(at constant net asset value of $1 per share)
Shares sold 23,195,781 61,906,153
Shares issued in reinvestment of
dividends from net investment income 427,295 693,024
------------- -----------
23,623,076 62,599,177
Shares redeemed 22,457,448 66,271,044
------------- -----------
Total increase (decrease) in net assets
derived from share transactions 1,165,628 (3,671,867)
Net Assets:
Beginning of period 24,336,936 28,008,803
------------- -----------
End of period $25,502,564 24,336,936
============= ===========
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
FINANCIAL HIGHLIGHTS
INSTITUTIONAL MONEY MARKET FUND
Six Months Ended December 31, 1995 and
Years Ended June 30, 1995 and 1994 and the
Period from November 12, 1992 (commencement of operations)
to June 30, 1993
Six Months Ended
Dec. 31, 1995 1995 1994 1993
------------------- ------ ------ -----
(Unaudited)
Net asset value:
Beginning of period $1.00 1.00 1.00 1.00
---- ---- ---- ----
Income from investment operations,
Net investment income 0.027 0.054 0.040 0.009
Less distributions,
Dividends from net investment income (0.027) (0.054) (0.040) (0.009)
------- ------- ------- ------
End of period $1.00 1.00 1.00 1.00
------ ----- ---- ----
Yield 5.18%* 5.63% 4.52% 4.28%*
==== ==== ==== ====
Effective yield 5.31%* 5.79% 4.62% 4.37%*
==== ==== ==== ====
Ratios/Supplemental data:
Net assets, end of period $25,502,564 24,336,936 28,008,803 14,855,439
Ratio of expenses to average net 0.59%* 0.54% 0.61% 0.68%*
assets
Ratio of net income to average 5.36%* 5.42% 4.05% 4.40%*
net assets
*Annualized for those periods less
than twelve months in duration.
See accompanying notes to financial statements.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
December 31, 1995
(Unaudited)
1. Organization and Significant Accounting Policies
SMITH HAYES Trust, Inc. (the Company) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company. These financial statements relate only to the Institutional Money
Market Fund (the Fund).
The following is a summary of significant accounting policies employed by
the Company in preparing its financial statements.
Valuation of Investments: Fund securities are valued at amortized cost.
Pursuant to Rule 2a-7 of the Investment Company Act of 1940, amortized cost
as defined is a method of valuing securities at acquisition cost, adjusted
for amortization of premium or accretion of discount rather than at their
value based on current market factors. This method of valuation is used
consistently throughout the industry by money market funds wishing to
maintain a constant net asset value per share. The Fund maintains a constant
net asset value of $1 per share.
Security Transactions and Investment Income: Security transactions are
recorded on a trade date basis. Realized gains or losses on sales of
investments are determined by specifically identifying the issue sold. In
computing net investment income, the Fund amortizes premiums and discounts
and accrue interest income daily.
Federal Income Taxes: It is the policy of the Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to have the Fund distribute virtually all of its taxable
income generated to it's shareholders. Therefore, no liability for Federal
income taxes is required. On a calendar year basis, the Fund, will
distribute substantially all of its net investment income and realized
gains, if any, to avoid the payment of any Federal excise taxes. The Fund
prepares its tax return on an accrual basis.
Distributions to Shareholders: Dividends to shareholders are accrued and
declared daily from net investment income. Payments or reinvestments of
dividends are made monthly.
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
1. Continued
Trust Certificates: The trust certificates represent U. S. Government
guaranteed student loans held by Mid-America Student Finance Trust (the
Trust). The Trust invests in eligible student loans issued under the Higher
Education Act of 1965 as amended (the Act) established by the U. S.
Government to provide access to funds for students attending post-secondary
institutions. The Trust purchases the student loans from Nebraska and Iowa
banks who are eligible lenders as defined by the Act. The terms of the
loans, which vary on an individual basis, generally provide for repayment in
monthly installments over a period normally not in excess of ten years.
All of the student loans are guaranteed by various authorized guarantee
agencies who have contracts of reinsurance with the Department of Education.
These guarantees are made subject to the performance of certain loan
servicing procedures stipulated by the Act. If these due diligence
requirements are not met, the affected loans may not be covered by the
guarantees should the borrower default.
For liquidity purposes, certain banks have entered into unconditional
agreements to repurchase a predetermined amount of student loans from the
Trust upon five days written notice. The maximum amount any bank is
obligated to repurchase is five percent of the total student loans owned by
the Trust. The repurchase agreements are cancelable with 30 days advance
written notice. At December 31, 1995, 35 banks have entered into repurchase
agreements for an aggregate total of $47,000,000.
2. Management Fee, Distribution Expense and Transactions with Affiliates
The Fund has retained CONLEY SMITH, Inc. (the Adviser) as its exclusive
investment adviser. Under the terms of the agreement the adviser is paid a
monthly fee computed at an annual rate of .10% of the average daily net
assets of the Fund.
On July 18, 1995, the Fund also retained Lancaster Administrative Services,
Inc. (the Administrator), as successor to CONLEY SMITH, Inc., to act as its
administrator and transfer agent. The agreements provide for a fee computed
and paid monthly at an annual rate of .12% of the average daily net assets
of the Fund.
The Fund has retained SMITH HAYES Financial Services Corporation (the
Distributor), a company related through common ownership and management, to
act as the underwriter and distributor of the Fund's shares. Pursuant to the
shareholder approved distribution plan under Rule 12b-1, the Fund will
reimburse the Distributor for
<PAGE>
SMITH HAYES TRUST, INC.
Notes to Financial Statements
2. Continued
shareholder-related expenses incurred in connection with the distribution of
the Fund's shares. Aggregate payments cannot exceed the annual rate of .20%
of the Fund's average daily net assets.
Under the terms of the advisory, administrative and distribution agreements
outlined above, the Fund paid $11,508, $13,810 and $23,037, respectively,
for such services.
In addition to the amounts paid under the advisory, administration and
distribution plans, the Fund primarily used SMITH HAYES Financial Services
Corporation (SMITH HAYES) to affect security trades on its behalf. As is
customary in the industry, the adviser evaluates the pricing and ability to
execute the transaction in selecting brokers to affect trades. SMITH HAYES
was paid commissions in the amount of $256 for brokerage services during the
six months ended December 31, 1995.
At December 31, 1995, the directors, officers, and employees of the Company,
the Adviser, Administrator, Distributor and their immediate families held
1,463,245 shares of the Fund, which constituted 5.73% of the Fund's
outstanding shares.
