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Previous: VANGUARD ASSET ALLOCATION FUND INC, 485BPOS, EX-99.BP, 2000-05-30 |
Next: DREYFUS MUNICIPAL INCOME INC, NSAR-A, 2000-05-30 |
Value
Par Value (Note 1)
--------- --------
HAWAII MUNICIPAL BONDS (92.26%)
----------------------
Hawaii County
General Obligation Bonds (4.36%)
$1,150,000 7.050%, 6/01/01 $ 1,166,583
100,000 6.800%, 12/01/01 100,889
200,000 7.200%, 6/01/05 202,930
1,030,000 7.200%, 6/01/06 1,045,090
300,000 5.600%, 5/01/11 307,875
1,000,000 5.625%, 5/15/18 997,500
1,000,000 5.625%, 5/15/19 990,000
-----------
4,810,867
-----------
Hawaii State
General Obligation Bonds (1.16%)
100,000 7.200%, 9/01/06 102,230
150,000 7.000%, 6/01/07 150,662
135,000 6.000%, 10/01/08 142,762
330,000 7.125%, 9/01/09 337,260
125,000 7.000%, 6/01/10 125,551
100,000 7.125%, 9/01/10 102,200
300,000 6.250%, 1/01/14 316,875
-----------
1,277,540
-----------
Airport Systems Revenue Bonds (6.85%)
500,000 5.125%, 7/01/00 501,210
150,000 5.800%, 7/01/01 152,250
345,000 6.300%, 7/01/01 352,331
200,000 7.000%, 7/01/07 208,750
175,000 7.000%, 7/01/10 183,312
385,000 6.900%, 7/01/12 430,238
510,000 7.000%, 7/01/18 529,125
1,460,000 7.000%, 7/01/20 1,516,575
2,500,000 7.500%, 7/01/20 2,562,175
1,050,000 6.750%, 7/01/21 1,115,100
-----------
7,551,066
-----------
Department of Budget and Finance Special Purpose Revenue Bonds
(Hawaiian Electric Company, Inc.) (8.42%)
3,000,000 5.750%, 12/01/18 2,981,250
620,000 7.600%, 7/01/20 635,438
565,000 6.550%, 12/01/22 579,831
625,000 6.200%, 5/01/26 634,375
600,000 5.875%, 12/01/26 594,750
4,000,000 5.650%, 10/01/27 3,860,000
-----------
9,285,644
-----------
(Kapiolani Health Care System) (3.73%)
400,000 6.300%, 7/01/08 407,500
1,650,000 6.400%, 7/01/13 1,668,563
600,000 6.200%, 7/01/16 588,750
1,185,000 6.000%, 7/01/19 1,118,344
340,000 6.250%, 7/01/21 325,975
-----------
4,109,132
-----------
(Kaiser Permanente) (4.24%)
850,000 6.500%, 3/01/11 869,125
3,875,000 6.250%, 3/01/21 3,802,344
-----------
4,671,469
-----------
(The Queen's Health Systems) (4.47%)
300,000 5.200%, 7/01/04 300,375
250,000 6.125% 7/01/11 262,188
1,020,000 6.000%, 7/01/20 991,950
600,000 6.200%, 7/01/22 630,000
2,735,000 5.750%, 7/01/26 2,529,875
250,000 5.000%, 7/01/28 218,125
-----------
4,932,513
------------
(Pali Momi Medical Center Project) (3.49%)
3,120,000 7.600%, 7/01/10 3,295,500
525,000 7.650%, 7/01/19 554,531
-----------
3,850,031
-----------
(St. Francis Medical Center) (2.59%)
2,765,000 6.500%, 7/01/22 2,851,406
-----------
(Wahiawa General Hospital) (2.59%)
2,915,000 7.500%, 7/01/12 2,860,344
-----------
(Wilcox Hospital) (1.88%)
250,000 4.800%, 7/01/04 233,438
500,000 4.900% 7/01/05 461,250
700,000 5.250%, 7/01/13 598,500
845,000 5.350%, 7/01/18 688,675
115,000 5.500%, 7/01/28 92,144
-----------
2,074,007
-----------
Department of Transportation
Matson Terminals Inc. (2.44%)
2,760,000 5.750%, 3/01/13 2,687,550
-----------
Harbor Capital Improvements Revenue Bonds (3.47%)
400,000 5.650%, 7/01/02 407,500
205,000 6.200%, 7/01/03 213,456
310,000 6.300%, 7/01/04 325,112
200,000 6.200%, 7/01/08 208,250
225,000 7.250%, 7/01/10 230,886
300,000 6.250%, 7/01/15 309,000
810,000 7.000%, 7/01/17 829,221
800,000 6.500%, 7/01/19 821,000
500,000 5.750%, 7/01/29 484,375
-----------
3,828,800
-----------
Highway Revenue Bonds (2.15%)
200,000 5.000%, 7/01/09 197,750
150,000 5.000%, 7/01/11 146,250
1,000,000 5.600%, 7/01/14 1,007,500
1,100,000 5.000%, 7/01/16 1,018,875
-----------
2,370,375
-----------
Housing Authority Single Family
Mortgage Purpose Revenue Bonds (7.92%)
405,000 7.000%, 7/01/11 419,681
100,000 5.700%, 7/01/13 100,500
555,000 6.900%, 7/01/16 574,425
215,000 6.750%, 7/01/20 220,644
540,000 7.100%, 7/01/24 556,875
2,235,000 5.900%, 7/01/27 2,215,444
2,250,000 5.900%, 7/01/27 2,247,187
25,000 7.800%, 7/01/29 25,312
2,500,000 5.750%, 7/01/30 2,368,750
-----------
8,728,818
-----------
Department of Hawaiian Homelands (2.30%)
1,355,000 4.100%, 7/01/07 1,229,663
1,465,000 4.250%, 7/01/09 1,307,513
-----------
2,537,176
-----------
Housing Authority Multi-Family
Mortgage Purpose Revenue Bonds (3.81%)
200,000 4.800%, 1/01/01 200,562
205,000 4.800%, 7/01/01 205,769
210,000 4.900%, 1/01/02 209,738
215,000 4.900%, 7/01/02 215,269
1,000,000 5.700%, 7/01/18 983,750
2,365,000 6.100%, 7/01/30 2,382,738
-----------
4,197,826
-----------
Kapolei State Office Building (1.31%)
1,000,000 5.000%, 5/01/16 932,500
555,000 5.000%, 5/01/18 508,519
-----------
1,441,019
-----------
Public Housing Authority Bonds (0.40%)
185,000 5.750%, 8/01/00 186,089
250,000 5.750%, 8/01/04 253,340
-----------
439,429
-----------
University Faculty Housing (2.78%)
90,000 4.350%, 10/01/00 90,150
330,000 4.450%, 10/01/01 330,000
345,000 4.550%, 10/01/02 344,569
800,000 5.650%, 10/01/16 807,000
1,500,000 5.700%, 10/01/25 1,492,500
-----------
3,064,219
-----------
University of Hawaii - Revenue Bonds (0.55%)
100,000 5.450%, 10/01/06 102,375
500,000 5.700%, 10/01/17 501,875
-----------
604,250
-----------
Honolulu City and County
Board of Water Supply (1.33%)
200,000 5.000%, 7/01/04 201,250
500,000 5.800%, 7/01/16 507,500
750,000 5.800%, 7/01/21 753,750
-----------
1,462,500
-----------
Waste and Water System (3.27%)
1,000,000 4.750%, 7/01/18 886,250
1,000,000 5.250%, 7/01/18 946,250
2,000,000 5.000%, 7/01/23 1,772,500
-----------
3,605,000
-----------
General Obligation Bonds (5.06%)
100,000 7.300%, 7/01/03 107,375
375,000 6.700%, 8/01/05 389,062
200,000 7.350%, 7/01/06 225,250
300,000 6.900%, 12/01/06 308,375
200,000 7.100%, 6/01/07 202,884
820,000 6.700%, 8/01/08 850,750
985,000 6.700%, 8/01/09 1,021,938
525,000 6.700%, 8/01/10 544,687
250,000 7.150%, 6/01/11 253,623
725,000 6.700%, 8/01/11 752,188
105,000 5.500%, 9/01/16 109,725
930,000 5.000%, 4/01/24 817,237
-----------
5,583,094
-----------
Halawa Business Park (0.85%)
170,000 6.300%, 10/15/00 171,532
370,000 6.500%, 10/15/02 382,025
365,000 6.600%, 10/15/03 380,513
-----------
934,070
-----------
Housing Authority Multi-Family
Mortgage Purpose Revenue Bonds
(Hale Pauahi) (0.30%)
320,000 6.800%, 7/01/28 339,200
------------
(Waipahu Project) (1.12%)
1,200,000 6.900%, 6/20/35 1,239,000
-----------
Kauai County
General Obligation Bonds (3.84%)
300,000 5.100%, 2/01/01 302,262
410,000 5.850%, 8/01/07 429,987
1,280,000 5.850%, 8/01/07 1,342,400
250,000 5.900%, 2/01/10 259,063
250,000 5.900%, 2/01/11 258,125
295,000 5.900%, 2/01/12 304,956
595,000 6.250%, 8/01/19 619,544
695,000 6.250%, 8/01/22 719,325
-----------
4,235,662
-----------
Housing Authority Paanau Project (1.52%)
1,815,000 7.250%, 4/01/12 1,676,606
-----------
Maui County
General Obligation Bonds (3.08%)
740,000 8.000%, 1/01/01 759,899
250,000 6.800%, 12/01/05 256,820
175,000 6.800%, 12/01/08 179,774
250,000 5.700%, 1/01/09 255,107
735,000 5.750%, 1/01/12 750,273
235,000 5.750%, 6/01/13 240,287
500,000 5.300%, 9/01/14 491,875
500,000 5.000%, 9/01/17 466,250
-----------
3,400,285
-----------
Water System Revenue (0.98%)
355,000 5.850%, 12/01/00 359,072
300,000 6.500%, 12/01/06 312,000
400,000 6.600%, 12/01/07 416,500
-----------
1,087,572
-----------
Total Hawaii Municipal Bonds 101,736,470
-----------
PUERTO RICO MUNICIPAL BONDS (5.65%)
---------------------------
Puerto Rico Commonwealth
Electric Power Authority Revenue Bonds (0.29%)
300,000 6.250%, 7/01/17 315,375
-----------
General Obligation Bonds (1.91%)
250,000 6.250%, 7/01/10 260,000
100,000 6.250%, 7/01/10 104,500
250,000 7.250%, 7/01/10 256,905
750,000 6.450%, 7/01/17 810,938
100,000 7.300%, 7/01/20 102,774
300,000 6.500%, 7/01/23 325,125
250,000 5.750%, 7/01/24 251,250
-----------
2,111,492
-----------
Highway and Transportation Authority (0.97%)
225,000 6.750%, 7/01/05 230,978
200,000 7.750%, 7/01/10 205,782
630,000 6.000%, 7/01/20 632,993
-----------
1,069,753
-----------
Housing Finance Corp.
Multi-Family Mortgage Revenue Bonds (0.52%)
175,000 7.500%, 10/01/15 178,937
390,000 7.500%, 4/01/22 398,775
-----------
577,712
-----------
Single-Family Mortgage Revenue Bonds (0.24%)
25,000 7.650%, 10/15/22 25,673
235,000 6.250%, 4/01/29 239,994
-----------
265,667
-----------
Industrial, Medical and Environmental Pollution Control
(Abbott Laboratories) (0.27%)
300,000 6.500%, 7/01/09 301,443
-----------
(Hospital Auxilio Mutuo Obligation) (0.42%)
440,000 6.250%, 7/01/24 453,200
-----------
(Pila Hospital Project) (0.42%)
455,000 6.250%, 8/01/32 461,256
-----------
Public Building Authority
Health Facilities and Services (0.61%)
665,000 5.750%, 7/01/15 672,481
-----------
Total Puerto Rico Municipal Bonds 6,228,379
-----------
VIRGIN ISLANDS MUNICIPAL BONDS (0.11%)
------------------------------
Virgin Islands
Public Finance Authority, Series A (0.11%)
100,000 7.300%, 10/01/18 119,750
-----------
Total Virgin Islands Municipal Bonds 119,750
-----------
Total Investments (Cost $109,015,410) (a) 98.02% 108,084,599
Other Assets Less Liabilities 1.98% 2,187,191
-------- -----------
Net Assets 100.00% 110,271,790
====== ============
(a) Aggregate cost for federal income tax purposes is $109,015,410.
At March 31, 2000, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $1,375,173
Gross unrealized depreciation (2,305,984)
----------
Net unrealized depreciation $ (930,811)
==========
Value
Par Value (Note 1)
--------- --------
HAWAII MUNICIPAL BONDS (96.27%)
----------------------
Hawaii County
General Obligation Bonds (2.23%)
$100,000 6.800%, 12/01/01 $ 100,889
---------
Hawaii State
General Obligation Bonds (5.73%)
100,000 5.500%, 7/01/01 101,000
150,000 5.900%, 10/01/06 157,875
---------
258,875
---------
Airport Systems Revenue Bonds (8.12%)
105,000 6.400%, 7/01/02 108,675
250,000 5.700%, 7/01/07 258,438
---------
367,113
---------
Department of Budget and Finance
Special Purpose Revenue Bonds
(Kapiolani Health Care Systems) (4.37%)
200,000 5.500%, 7/01/05 197,750
---------
(The Queen's Health Systems) (4.43%)
200,000 5.200%, 7/01/04 200,250
---------
(St. Francis Medical Center) (4.55%)
200,000 6.000%, 7/01/02 205,500
---------
(Wilcox Hospital) (5.16%)
250,000 4.800% 7/01/04 233,438
---------
Harbor Capital Improvements Revenue Bonds (4.52%)
100,000 5.650%, 7/01/02 101,875
100,000 5.850%, 7/01/02 102,625
---------
204,500
---------
Highway and Transportation Authority (6.13%)
275,000 5.000%, 7/01/06 277,062
---------
Housing Authority
Single Family Mortgage Purpose Revenue Bonds (6.57%)
300,000 4.800%, 7/01/07 297,000
---------
Public Housing Authority Bonds (4.45%)
200,000 5.750%, 8/01/00 201,178
---------
University Faculty Housing (5.10%)
230,000 4.350%, 10/01/00 230,384
---------
University of Hawaii (4.08%)
University Revenue Bonds
180,000 5.450%, 10/01/06 184,275
---------
Honolulu City and County
Board of Water Supply (4.45%)
200,000 5.000%, 7/01/04 201,250
---------
General Obligation Bonds (2.23%)
100,000 5.000%, 10/01/02 100,875
---------
Halawa Business Park (4.46%)
200,000 6.300%, 10/15/00 201,802
---------
Kauai County
General Obligation Bonds (4.34%)
100,000 4.400%, 8/01/03 98,375
100,000 4.550%, 8/01/05 97,750
---------
196,125
---------
Maui County
General Obligation Bonds (10.74%)
190,000 8.000%, 1/01/01 195,109
300,000 4.650%, 3/01/07 290,625
---------
485,734
---------
Water System Revenue (4.61%)
100,000 6.600%, 12/01/07 104,125
100,000 6.700%, 12/01/11 104,250
---------
208,375
---------
Total Hawaii Municipal Bonds 4,352,375
---------
PUERTO RICO MUNICIPAL BONDS (1.60%)
---------------------------
Housing Finance Corp.
Single Family Mortgage Revenue Bonds (1.60%)
70,000 6.150%, 8/01/03 72,012
---------
Total Puerto Rico Municipal Bonds 72,012
---------
Total Investments (Cost $4,452,410) (a) 97.87% 4,424,387
Other Assets Less Liabilities 2.13% 96,397
------ ---------
Net Assets 100.00% 4,520,784
====== =========
(a)Aggregate cost for federal income tax purposes is $4,452,410.
At March 31, 2000, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $29,417
Gross unrealized depreciation (57,440)
-------
Net unrealized depreciation $(28,023)
========
Municipal Intermediate
Bond Municipal
Fund Fund
------------ -------------
ASSETS
Investments at market value
(Identified cost $109,015,410 and $4,452,410,
respectively) (Note 1 (A)) $108,084,599 $4,424,387
Cash 1,137,143 31,559
Interest receivable 1,780,690 68,437
Subscriptions receivable 84,908 600
Other assets 1,284 1,557
------------ ----------
Total assets 111,088,624 4,526,540
------------ ----------
LIABILITIES
Payable for investment securities purchased 501,391 -
Distributions payable 169,247 3,672
Redemptions payable 23,929 -
Advisory fee payable 46,589 2,084
Other liabilities 75,678 -
------------ ----------
Total liabilities 816,834 5,756
------------ ----------
NET ASSETS
(Applicable to 10,509,398 and 907,579 shares outstanding,
$.01 par value, 20,000,000 shares authorized) $110,271,790 $4,520,784
============ ==========
NET ASSET VALUE, OFFERING AND REPURCHASE
PRICE PER SHARE
($110,271,790 / 10,509,398 shares) $10.49
======
($4,520,784 / 907,579 shares) $4.98
=====
NET ASSETS
At March 31, 2000, net assets consisted of:
Paid-in capital $111,651,436 $4,545,259
Accumulated net realized gain (loss) on investments (448,835) 3,548
Net unrealized depreciation of investments (930,811) (28,023)
------------ ----------
$110,271,790 $4,520,784
============ ==========
Municipal Intermediate
Bond Municipal
Fund Fund
------------ ------------
INVESTMENT INCOME
Interest income $ 3,267,357 $128,009
----------- --------
Expenses
Management fee (Note 2) 281,542 13,418
Distribution costs (Notes 2 and 3) 84,463 1,862
Transfer agent fees (Note 2) 33,912 1,610
Shareholder services (Note 2) 56,309 -
Administration fee 10,122 483
Accounting fees 18,760 -
Legal and audit fees 11,833 2,736
Printing 5,758 -
Miscellaneous 5,615 -
Portfolio pricing fee 13,855 1,423
Custodian fees 8,905 1,478
Insurance 2,815 537
Registration fees 2,943 -
Directors fees 79 -
----------- --------
Total expenses 536,911 23,547
Fee reductions (Note 4) (30,481) (2,901)
---------- --------
Net expenses 506,430 20,646
----------- --------
Net investment income 2,760,927 107,363
----------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from security transactions (200,738) 3,548
Change in unrealized depreciation of investments (1,875,190) (58,102)
----------- --------
Net loss on investments (2,075,928) (54,554)
----------- --------
Net increase in net assets resulting
from operations $ 684,999 $ 52,809
=========== ========
For The Six
Months Ended Year Ended
March 31, 2000 September 30,
(Unaudited) 1999
--------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 2,760,927 $ 5,730,819
Net realized gain (loss) on investments (200,738) 26,191
Change in unrealized depreciation of investments (1,875,190) (5,909,543)
------------ -----------
Net increase (decrease) in net assets resulting
from operations 684,999 (152,533)
Distributions to shareholders from:
Net investment income
($0.26 and $0.55 per share, respectively) (2,760,927) (5,730,819)
Capital share transactions (a)
Increase (decrease) in net assets resulting from
capital share transactions (4,101,206) 9,986,554
------------ -----------
Total increase (decrease) in net assets (6,177,134) 4,103,202
NET ASSETS
Beginning of period 116,448,924 112,345,722
------------ ------------
End of period $110,271,790 $116,448,924
============ ============
(a) Summary of capital share activity follows:
For The Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
------------------------ ------------------------
Shares Value Shares Value
------ ----- ------ -----
Shares sold 519,244 $ 5,437,866 1,881,327 $ 20,588,320
Shares issued on reinvestment
of distributions 179,012 1,868,250 335,571 3,925,201
---------- ----------- ---------- ------------
698,256 7,306,116 2,216,898 24,513,521
Shares redeemed (1,094,163) (11,407,322) (1,339,933) (14,526,967)
---------- ----------- ---------- ------------
Net increase (decrease) (395,907) $(4,101,206) 876,965 $ 9,986,554
========== =========== ========== ============
For The Six
Months Ended Year Ended
March 31, 2000 September 30,
(Unaudited) 1999
--------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 107,363 $ 247,821
Net realized gain on investments 3,548 5,108
Change in unrealized depreciation of investments (58,102) (159,764)
---------- ----------
Net increase in net assets resulting from operations 52,809 93,165
Distributions to shareholders from
Net investment income
($0.10 and $0.22 per share, respectively) (107,363) (247,821)
Capital gains
($0.01 and $0.01 per share, respectively) (3,813) (7,321)
Capital share transactions (a)
Decrease in net assets resulting from
capital share transactions (913,881) (256,438)
------------ ----------
Total decrease in net assets (972,248) (418,415)
NET ASSETS
Beginning of period 5,493,032 5,911,447
---------- ----------
End of period $4,520,784 $5,493,032
========== ==========
(a) Summary of capital share activity follows:
For The Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
--------------------- ---------------------
Shares Value Shares Value
------ ----- ------ -----
Shares sold 240,783 $ 1,201,408 342,050 $ 1,749,232
Shares issued on reinvestment
of distributions 18,827 93,986 43,853 224,588
--------- ----------- --------- -----------
259,610 1,295,394 385,903 1,973,820
Shares redeemed (443,340) (2,209,275) (435,722) (2,230,258)
--------- ----------- --------- -----------
Net decrease (183,730) $ (913,881) (49,819) $ (256,438)
========= =========== ========= ===========
For The Six
Months Ended Years Ended September 30,
March 31, 2000 ---------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
---- ---- ---- ---- ----
Net asset value
Beginning of period $10.68 $11.23 $11.10 $10.89 $10.84 $10.62
------ ------ ------ ------ ------ ------
Income from investment operations
Net investment income .26 .55 .55 .54 .55 .55
Net gain (loss) on securities
(both realized and unrealized) (.19) (.55) .13 .21 .05 .31
------ ----- ------ ----- ------ ------
Total from investment operations .07 - .68 .75 .60 .86
------ --- ------ ----- ------ ------
Less distributions
Dividends from net investment income (.26) (.55) (.55) (.54) (.55) (.55)
Distributions from capital gains - - - - - (.09)
----- ---- ----- ---- ---- ------
Total distributions (.26) (.55) (.55) (.54) (.55) (.64)
------ ----- ------ ---- ------ ------
End of period $10.49 $10.68 $11.23 $11.10 $10.89 $10.84
====== ====== ====== ====== ====== ======
Total return .67% (.07)% 6.28% 7.09% 5.62% 8.42%
Ratios/Supplemental Data
Net assets, end of period (in 000's) $110,272 $116,449 $112,346 $106,380 $54,165 $51,131
Ratio of expenses to
average net assets
Before expense reimbursements .94%(a) .94% .89% .98% .98% 1.00%
After expense reimbursements .94%(a)(b) .94%(b) .89%(b) .98%(b) .98%(b) .97%(b)
Ratio of net investment income to
average net assets
Before expense reimbursements 4.85%(a) 4.88% 4.90% 4.99% 5.03% 5.19%
After expense reimbursements 4.85%(a) 4.88% 4.90% 4.99% 5.03% 5.22%
Portfolio turnover 2.88% 10.83% 7.35% 3.21% 15.16% 17.08%
(a) Annualized
| (b) | Ratios of expenses to average net assets after the reduction of custodian fees under a custodian arrangement were .90% .for the six months ended March 31, 2000 and .87%, .85%, .94%, .95% and .95% for the years ended September 30, 1999, 1998, 1997, 1996 and 1995, respectively. |
For The Six
Months Ended
March 31, 2000 Years Ended September 30,
--------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
---- ---- ---- ---- ----
Net asset value
Beginning of period $5.03 $5.18 $ 5.15 $5.12 $ 5.14 $ 4.99
----- ----- ------ ----- ------ ------
Income from investment operations
Net investment income .10 .22 .22 .22 .22 .23
Net gain (loss) on securities
(both realized and unrealized) (.04) (.14) .04 .04 (.02) .15
----- ----- ------ ----- ------ ------
Total from investment operations .06 .08 .26 .26 .20 .38
----- ----- ------ ----- ------ ------
Less distributions
Dividends from net investment income (.10) (.22) (.22) (.22) (.22) (.23)
Distributions from capital gains (.01) (.01) (.01) (.01) - -
----- ------ ------ ----- ---- --
Total distributions (.11) (.23) (.23) (.23) (.22) (.23)
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End of period $4.98 $5.03 $ 5.18 $5.15 $ 5.12 $ 5.14
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Total return 1.17% 1.51% 5.08% 5.17% 3.95% 7.86%
Ratios/Supplemental Data
Net assets, end of period (in 000's) $4,521 $5,493 $5,911 $6,402 $6,624 $4,760
Ratio of expenses to
average net assets
Before expense reimbursements .87%(a) .98% 1.49% 1.43% 1.50% 1.90%
After expense reimbursements .87%(a)(b) .89%(b) .85%(b) .86%(b) .84%(b) .66%(b)
Ratio of net investment income to
average net assets
Before expense reimbursements 3.87%(a) 4.07% 3.53% 3.67% 3.66% 3.39%
After expense reimbursements 3.87%(a) 4.18% 4.17% 4.24% 4.32% 4.63%
Portfolio turnover 3.97% 3.32% 14.57% 17.36% 17.76% 10.04%
(a) Annualized
| (b) | Ratios of expenses to average net assets after the reduction of custodian fees under a custodian arrangement were .77%, for the six months ended March 31, 2000 and .75%, .73%, .75%, .75% and .64% and for the years ended September 30, 1999, 1998, 1997, 1996 and 1995, respectively. |
| First Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal Fund (“Funds”) are each a series of shares of First Pacific Mutual Fund, Inc. which is registered under the Investment Company Act of 1940, as a non-diversified open-end management company. |
| The investment objective of the Funds is to provide investors with the maximum level of income exempt from federal and Hawaii income taxes consistent with the preservation of capital. The Funds seek to achieve their objective by investing primarily in municipal securities which pay interest that is exempt from federal and Hawaii income taxes. |
| The Funds are subject to the risk of price fluctuation of the municipal securities held in their portfolios which is generally a function of the underlying credit rating of an issuer, the maturity length of the securities, the securities’ yield, and general economic and interest rate conditions. |
| Since the Funds invest primarily in obligations of issuers located in Hawaii, the marketability and market value of these obligations may be affected by certain Hawaiian constitutional provisions, legislative measures, executive orders, administrative regulations, voter initiatives, and other political and economic developments. If any such problems arise, they could adversely affect the ability of various Hawaiian issuers to meet their financial obligation. |
| In preparing financial statements in conformity with generally accepted accounting principles, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates. |
(A) SECURITY VALUATION
| Portfolio securities, which are fixed income securities, are valued by an independent pricing service using market quotations, prices provided by market-makers, or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics, in accordance with procedures established in good faith by the Board of Directors. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value. All other securities are valued at their fair value as determined in good faith by the Board of Directors. |
(B) FEDERAL INCOME TAXES
| It is the Funds’ policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute their taxable income, if any, to their shareholders. Therefore, no federal income tax provision is required. At September 30, 1999, the First Hawaii Municipal Bond Fund had an unused capital loss carryforward of approximately $218,123 of which $189,123 expires in 2004 and $29,000 expires in 2005. |
(C) SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS
| Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Bond discounts and premiums are amortized as required by the Internal Revenue Code. Distributions to shareholders are declared daily and reinvested or paid in cash monthly. Premiums and discounts are amortized in accordance with income tax regulations. |
| First Pacific Management Corporation (“FPMC”) provides the Funds with management and administrative services pursuant to a management agreement. In accordance with the terms of the management agreement, FPMC receives compensation at the annual rate of .50% of each Fund’s average daily net assets. |
| The Funds’ distributor, First Pacific Securities, Inc. (“FPS”), a wholly-owned subsidiary of FPMC, received $84,463 and $1,862 for costs incurred in connection with the sale of shares of First Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal Fund, respectively (See Note 3). |
| First Pacific Recordkeeping, Inc. (“FPR”), a wholly-owned subsidiary of FPMC, serves as the transfer agent for the Funds. FPR also provides the First Hawaii Municipal Bond Fund with certain clerical, bookkeeping and shareholder services pursuant to a service agreement approved by the Funds’ directors. As compensation for these services FPR receives a fee, computed daily and payable monthly, at an annualized rate of .10% of average daily net assets. |
| The Funds’ Board of Directors, including a majority of the Directors who are not “interested persons” of the Funds, as defined in the Investment Company Act of 1940, adopted a distribution plan pursuant to Rule 12b-1 of the Act. The Plan regulates the manner in which a regulated investment company may assume costs of distributing and promoting the sales of its shares. |
| The Plan provides that the Funds may incur certain costs, which may not exceed .25% per annum of the Funds’ average daily net assets, for payment to the distributor for items such as advertising expenses, selling expenses, commissions or travel reasonably intended to result in sales of shares of the Funds. |
| Purchases and sales of securities aggregated $3,176,152 and $6,928,367 respectively for the First Hawaii Municipal Bond Fund. Purchases and sales of securities for the First Hawaii Intermediate Municipal Fund aggregated $200,000 and $865,000, respectively. Under an agreement with the Custodian Bank, custodian fees are reduced by credits for cash balances. During the six months ended March 31, 2000, such reductions amounted to $30,481 of which $8,905, $7,721, and $13,855 were used to pay custody fees, accounting fees and pricing fees, respectively, and $2,901 of which $1,478, and $1,423 were used to pay custody fees and pricing fees, respectively, for the First Hawaii Municipal Bond Fund and the First Hawaii Intermediate Municipal Fund, respectively. |
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