<PAGE> 1
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
400 BELLEVUE PARKWAY
WILMINGTON, DELAWARE 19809
(302) 791-9300
July 1, 1996
Dear Shareholder:
This annual report covers the period from January 1, 1996, to June 30, 1996.
The Fund began the current year with assets of $1,009.4 million and ended the
six months with $1,136.8 million. In addition, shareholders increased from
102,117 to 106,480.
The yield on the Fund reflected the move of short-term rates and moved from
5.03% at year-end 1995 to 4.73% on June 30. We remain committed to high quality,
short-term instruments for your safety.
As always, we appreciate your confidence and support and welcome any comments.
Sincerely,
/s/ Allan L. Erb
Allan L. Erb
President
<PAGE> 2
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS............................. 11.4%
Federal Farm Credit Bank
5.25% 07/03/96 $ 8,120 $ 8,117,632
5.40% 12/02/96 5,000 5,000,691
Federal Home Loan Bank
5.22% 08/14/96 10,000 9,936,200
5.30% 01/16/97 2,000 1,999,728
6.90% 02/24/97 1,000 1,007,239
Federal Home Loan Mortgage Corp.
5.25% 07/08/96 12,000 11,987,750
5.25% 07/10/96 5,500 5,492,781
5.26% 08/09/96 10,000 9,943,017
5.26% 09/04/96 7,500 7,428,771
5.34% 09/16/96 10,000 9,885,783
Federal National Mortgage Association
5.07% 07/12/96 13,000 12,979,861
8.15% 08/12/96 7,850 7,872,696
5.10% 10/30/96 5,000 4,914,292
5.10% 11/20/96 10,000 9,798,833
5.16% 11/20/96 9,000 8,816,820
5.11% 11/22/96 5,000 4,897,800
7.70% 12/10/96 4,575 4,620,099
7.68% 01/27/97 5,000 5,069,651
--------------
TOTAL AGENCY OBLIGATIONS 129,769,644
--------------
COMMERCIAL PAPER............................... 85.1%
Agriculture.................................... 2.0%
Cargill, Inc. (A-1+, P-1)
5.27% 07/22/96 15,000 14,953,888
Golden Peanuts Co. (A-1+, P-1)
5.38% 09/16/96 8,000 7,907,942
--------------
22,861,830
--------------
Banks -- Multi-National........................ 1.8%
J.P. Morgan & Co. Inc. (A-1+, P-1)
5.30% 07/09/96 15,000 14,982,333
5.31% 07/11/96 6,000 5,991,150
--------------
20,973,483
--------------
</TABLE>
See accompanying notes to financial statements.
1
<PAGE> 3
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Beverages...................................... 6.6%
Coca-Cola Co. (A-1+, P-1)
5.27% 07/15/96 15,000 $ 14,969,258
5.27% 07/19/96 10,000 9,973,650
5.27% 07/29/96 15,000 14,938,517
5.27% 07/31/96 15,000 14,934,125
PepsiCo, Inc. (A-1, P-1)
5.28% 07/23/96 9,000 8,970,960
5.35% 09/09/96 11,000 10,885,569
--------------
74,672,079
--------------
Chemicals...................................... 3.6%
Dupont (E.I.) de Nemours & Co. (A-1+, P-1)
5.30% 07/10/96 12,000 11,984,100
5.30% 07/11/96 13,000 12,980,861
5.28% 07/30/96 14,000 13,940,453
5.27% 08/09/96 2,000 1,988,582
--------------
40,893,996
--------------
Communications................................. 5.9%
Dun & Bradstreet Corp. (A-1+, P-1)
5.30% 07/23/96 9,542 9,511,095
5.34% 07/25/96 4,500 4,483,980
Knight-Ridder, Inc. (A-1+, P-1)
5.30% 07/16/96 16,500 16,463,562
5.28% 07/17/96 15,000 14,964,800
5.29% 07/18/96 16,500 16,458,782
5.35% 08/12/96 5,500 5,465,671
--------------
67,347,890
--------------
Conglomerates.................................. 0.9%
Raytheon Co. (A-1, P-1)
5.35% 08/09/96 10,000 9,942,042
--------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 4
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Electronics.................................... 6.5%
Avnet, Inc. (A-1+, P-1)
5.31% 07/17/96 7,000 $ 6,983,480
5.33% 08/08/96 10,000 9,943,739
5.30% 08/16/96 5,000 4,966,139
5.38% 08/16/96 10,000 9,931,256
Hewlett-Packard Co. (A-1+, P-1)
5.10% 07/19/96 5,000 4,987,250
5.30% 08/21/96 17,200 17,070,856
5.35% 08/30/96 20,500 20,317,208
--------------
74,199,928
--------------
Entertainment.................................. 4.1%
Walt Disney Co., Inc. (A-1+, P-1)
5.26% 07/10/96 3,000 2,996,055
5.26% 07/15/96 6,000 5,987,727
5.26% 07/16/96 10,000 9,978,083
5.26% 07/17/96 8,000 7,981,298
5.20% 09/03/96 10,000 9,907,555
5.29% 09/19/96 9,970 9,852,797
--------------
46,703,515
--------------
Finance........................................ 23.8%
AT&T Capital Corp. (A-1+, P-1)
5.27% 07/02/96 10,000 9,998,536
5.30% 07/25/96 10,000 9,964,667
Cargill Financial Services (A-1+, P-1)
5.20% 09/03/96 10,000 9,907,556
Ford Motor Credit Co. (A-1, P-1)
5.31% 07/02/96 10,000 9,998,525
5.30% 07/10/96 8,500 8,488,737
5.50% 07/12/96 4,000 3,993,278
5.28% 07/15/96 9,000 8,981,520
5.28% 07/25/96 11,000 10,961,280
General Electric Capital Corp. (A-1+, P-1)
5.26% 08/29/96 15,000 14,870,692
5.26% 08/30/96 16,000 15,859,733
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 5
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Finance -- (Continued)
J.C. Penney Funding Corp.(A-1, P-1)
5.32% 07/24/96 9,000 $ 8,969,410
5.32% 07/26/96 10,000 9,963,056
5.35% 08/13/96 6,000 5,961,658
Met Life Funding Corp. (A-1+ , P-1)
5.38% 09/24/96 12,000 11,847,567
Pitney Bowes Credit Corp. (A-1+, P-1)
5.26% 07/26/96 11,000 10,959,819
5.26% 07/29/96 5,500 5,477,499
5.26% 07/30/96 12,000 11,949,153
5.28% 08/01/96 12,500 12,443,167
5.33% 08/15/96 5,500 5,463,356
Southwestern Bell Capital Corp (A-1, P-1)
5.29% 07/09/96 5,000 4,994,122
5.26% 08/26/96 15,000 14,877,267
Unilever Capital Corp. (A-1+, P-1)
5.27% 07/19/96 5,000 4,986,825
5.27% 07/22/96 8,500 8,473,870
US West Capital Funding Corp. (A-1, P-1)
5.26% 08/19/96 9,500 9,431,985
USAA Capital Corp. (A-1+, P-1)
5.26% 07/24/96 11,500 11,461,354
5.28% 07/24/96 8,000 7,973,013
5.26% 07/31/96 15,500 15,432,058
5.38% 09/23/96 7,000 6,912,127
--------------
270,601,830
--------------
Financial Services............................. 9.5%
Bear Stearns Companies, Inc (A-1, P-1)
5.30% 07/02/96 6,500 6,499,043
5.31% 07/23/96 9,000 8,970,795
5.30% 08/02/96 2,000 1,990,578
5.26% 08/08/96 12,500 12,430,597
5.33% 09/05/96 17,500 17,328,995
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 6
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Financial Services -- (Continued)
Merrill Lynch & Co., Inc. (A-1+, P-1)
5.29% 07/01/96 11,000 $ 11,000,000
5.25% 08/01/96 12,500 12,443,490
5.33% 08/02/96 10,000 9,952,622
5.37% 08/20/96 10,000 9,925,417
5.43% 10/18/96 9,000 8,852,033
Morgan Stanley Group, Inc. (A-1+, P-1)
5.31% 07/11/96 8,000 7,988,200
--------------
107,381,770
--------------
Food........................................... 6.3%
CPC International, Inc (A-1, P-1)
5.30% 07/18/96 10,000 9,974,972
5.27% 08/06/96 21,000 20,889,330
5.37% 09/04/96 13,500 13,369,106
5.27% 09/23/96 6,000 5,926,220
Heinz (H.J.) Co. (A-1, P-1)
5.29% 07/01/96 4,000 4,000,000
5.29% 07/12/96 12,000 11,980,604
McCormick and Co, Inc. (A-1, P-1)
5.45% 07/26/96 5,000 4,981,076
--------------
71,121,308
--------------
Food/Retail.................................... 0.9%
Winn Dixie Stores, Inc. (A-1, P-1)
5.29% 07/09/96 10,000 9,988,244
--------------
Household Items................................ 0.9%
Procter & Gamble Co. (A-1+, P-1)
5.36% 10/18/96 10,000 9,837,711
--------------
Industrial..................................... 1.8%
Schering-Plough Corp. (A-1+, P-1)
5.32% 08/09/96 9,300 9,246,401
5.27% 08/13/96 6,513 6,472,002
5.36% 09/17/96 4,500 4,447,740
--------------
20,166,143
--------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Pharmaceutical................................. 5.6%
Eli Lilly & Co. (A-1+, P-1)
5.22% 09/10/96 $16,500 $ 16,330,133
5.36% 10/10/96 12,000 11,819,547
5.36% 10/11/96 13,000 12,802,573
Smithkline Beecham Corp. (A1, P1)
5.26% 07/03/96 11,500 11,496,639
5.38% 12/17/96 12,500 12,184,299
--------------
64,633,191
--------------
Publishing..................................... 0.7%
McGraw-Hill, Inc. (A1, P1)
5.29% 08/06/96 8,000 7,957,680
--------------
Telecommunications............................. 4.2%
Ameritech Corp. (A-1+, P-1)
5.15% 07/08/96 18,000 17,981,975
5.35% 08/22/96 10,500 10,418,858
AT&T Co. (A-1+, P-1)
5.41% 11/12/96 20,000 19,597,256
--------------
47,998,089
--------------
TOTAL COMMERCIAL PAPER 967,280,729
--------------
U.S. TREASURY OBLIGATIONS...................... 0.1%
U.S. Treasury Note
6.125% 07/31/96 1,000 1,000,316
--------------
TOTAL U.S. TREASURY OBLIGATIONS 1,000,316
--------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Concluded)
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
VARIABLE RATE OBLIGATIONS...................... 3.3%
Federal Home Loan Bank Notes
5.75% 07/01/96 $ 3,500 $ 3,497,907
5.78% 07/01/96 10,000 10,000,000
Federal National Mortgage Association Note
5.52% 09/16/96 5,000 5,000,000
Student Loan Marketing Association Notes
5.43% 07/02/96 5,000 4,998,886
5.59% 07/02/96 4,000 3,998,403
Bear Stearns (A1 P1) 07/15/96 10,000 10,000,000
--------------
TOTAL VARIABLE RATE OBLIGATIONS 37,495,196
--------------
TOTAL INVESTMENTS.............................. 99.9% $1,135,545,885
(Amortized Costs $1,135,545,885)*
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.1% 1,235,626
------------ --------------
NET ASSETS..................................... 100.0% $1,136,781,511
========= ==============
NET ASSETS VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE ($1,136,781,511 / 1,136,795,850) $1.00
==============
</TABLE>
- ------------
* Also cost for Federal income tax purposes.
See accompanying notes to financial statements.
7
<PAGE> 9
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Operations
Six Months Ended June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest...................................................................... $30,187,426
-----------
EXPENSES
Advisory fees................................................................. 2,065,256
Administration fees........................................................... 256,928
Distribution fees............................................................. 1,108,475
Directors' fees............................................................... 22,912
Custodian fees................................................................ 59,832
Transfer agent fees........................................................... 603,022
Legal......................................................................... 18,638
Audit......................................................................... 9,937
SEC registration fees......................................................... 26,176
Blue sky registration fees.................................................... 32,307
Insurance..................................................................... 14,654
Printing and Postage.......................................................... 75,795
Miscellaneous................................................................. 12,426
-----------
TOTAL EXPENSES........................................................... 4,306,358
Waiver of Advisory and Distribution Fees...................................... (29,858)
-----------
NET EXPENSES............................................................. 4,276,500
-----------
NET INVESTMENT INCOME.............................................................. 25,910,926
NET REALIZED LOSS ON INVESTMENTS................................................... (139)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $25,910,787
============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 10
THE BRADFORD FUND, INC.
THE BRADFORD MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
Increase (decrease) in Net Assets:
Operations:
Net investment income...................................... $ 25,910,926 $ 45,828,662
Net realized loss on investments........................... (139) (864)
---------------- -----------------
Net increase in net assets resulting from operations....... 25,910,787 45,827,798
---------------- -----------------
Dividends to shareholders from:
Net investment income ($.0232 and $.0515 per share,
respectively)............................................ (25,910,926) (45,828,662)
---------------- -----------------
Total dividends to shareholders............................... (25,910,926) (45,828,662)
---------------- -----------------
Capital Stock Transactions:
Proceeds from sale of capital shares....................... 2,743,101,703 4,174,590,024
Value of shares issued in reinvestment of dividends........ 24,777,821 43,866,080
Cost of shares repurchased................................. (2,640,467,589) (3,886,262,837)
---------------- -----------------
Increase in net assets derived from capital stock
transactions............................................. 127,411,935 332,193,267
---------------- -----------------
Total increase in assets...................................... 127,411,796 332,192,403
---------------- -----------------
Net Assets:
Beginning of period........................................... 1,009,369,715 677,177,312
---------------- -----------------
End of period................................................. $ 1,136,781,511 $ 1,009,369,715
============== ===============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Financial Highlights
(for a share outstanding through each period)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED FOR THE FOR THE FOR THE FOR THE
JUNE 30, YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
1996 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1995 1994 1993 1992
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income..... .0232 .0515 .0343 .0247 .0308
Net Realized Gain on
Investments............. -- -- -- -- .0001
---------- ---------- -------- -------- --------
Total From Investment
Operations.......... .0232 .0515 .0343 .0247 .0309
---------- ---------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividend to Shareholders
from Net Investment
Income.................... (.0232) (.0515) (.0343) (.0247) (.0308)
Dividend to Shareholders
from Net Realized Gain.... -- -- -- -- (.0001)
---------- ---------- -------- -------- --------
Total Distributions... (.0232) (.0515) (.0343) (.0247) (.0309)
---------- ---------- -------- -------- --------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ======== ========
TOTAL RETURN.................. 4.56%(b) 5.28% 3.48% 2.50% 3.13%
RATIO/SUPPLEMENT DATA:
Net Assets, End of Period
(in thousand)............. $1,136,782 $1,009,370 $677,177 $719,337 $652,622
Ratio of Expenses to
Average Daily Net
Assets.................. .77 %(a)(b) .80%(a) .80%(a) .81%(a) .85%
Ratio of Net Investment
Income to Average Daily
Net Assets.............. 4.68 %(a)(b) 5.15%(a) 3.39%(a) 2.47%(a) 3.08%
</TABLE>
- ---------------
(a) During the period a portion of the Distribution and Advisory fees were
voluntarily reduced. If such voluntary fee reduction had not occurred, the
Ratio of Expenses to Average Daily Net Assets would have been .78%, .81%,
.83% and .84%, respectively, and the Ratio of Net Investment Income to
Average Daily Net Asset would have been 4.67%, 5.14%, 3.36% and 2.44%,
respectively.
(b) Annualized
See accompanying notes to financial statements.
10
<PAGE> 12
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements
June 30, 1996
(Unaudited)
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Bradford Funds, Inc., (the "Company"), an open-end, diversified management
investment company, was incorporated in Maryland on October 26, 1988. The
Company is authorized to issue 1.5 billion shares of multiple portfolios. The
Company is currently offering shares of one portfolio, The Bradford Money Fund
(the "Fund"). The only transaction occurring in the Fund between the date of
incorporation and the commencement of operations was the sale and issuance of
100,000 shares of capital stock for $100,000 to Bradford Capital Management,
Ltd. ("Bradford Capital Management"), the Fund's investment adviser, on January
10, 1989. The investment objective of the Fund is to provide as high a level of
current interest income as is consistent with maintaining liquidity and
stability of principal. It seeks to achieve this objective by investing in high
quality, U.S. dollar-denominated instruments, such as short-term U.S. Government
securities, bank certificates of deposit, commercial paper and repurchase
agreements. The ability of issuers of debt securities held by the Fund to meet
their obligations may be affected by economic developments in a specific
industry or region.
A) SECURITY VALUATION -- Portfolio securities are valued under the amortized
cost method, which approximates current market value. Under this method,
securities are valued at cost when purchased and thereafter a constant
proportionate amortization of any discount or premium is recorded until maturity
of the security. The Fund seeks to maintain net asset value per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on the accrual basis.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, if any, will be
distributed at least annually.
D) FEDERAL INCOME TAXES -- The Fund intends to qualify for and elect the tax
treatment applicable to regulated investment companies under the Internal
Revenue Code and make the requisite distributions to its shareholders which will
be sufficient to relieve it from Federal income and Federal excise taxes.
Therefore, no provision has been recorded for Federal income or Federal excise
taxes.
E) REPURCHASE AGREEMENTS -- Money market instruments may be purchased from
financial institutions, such as banks and non-bank dealers, subject to the
seller's agreement to repurchase them at an agreed upon date and price.
Collateral for repurchase agreements may have longer maturities than the maximum
permissible remaining maturity of portfolio investments. The seller will be
required on a daily basis to maintain the value of the securities subject to the
agreement at not less than the repurchase price. If the seller defaults and the
value of the collateral declines or if bankruptcy proceedings are commenced with
respect to the seller of the security, realization of the collateral by the Fund
may be delayed or limited. The agreements are conditioned upon the collateral
being deposited under the Federal Reserve book-entry system or with the Fund's
custodian or a third party sub-custodian.
11
<PAGE> 13
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Continued)
June 30, 1996
(Unaudited)
NOTE 2 -- INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND TRANSFER AGENCY
AGREEMENTS
The Fund has entered into an investment advisory agreement with Bradford
Capital Management. J.C.B. Financial Services, Inc. acts as the general partner
to the adviser and J.C. Bradford & Co. L.L.C., a Tennessee limited liability
company ("Bradford"), is the adviser's limited partner. The general partner is a
wholly owned subsidiary of Bradford & Co., Incorporated. The Fund has also
entered into an Administration and Accounting Services Agreement with PFPC Inc.
("PFPC"), and distribution and transfer agency agreements with Bradford.
For the advisory services provided and expenses assumed by it, Bradford
Capital Management is entitled to receive from the Fund a fee, computed daily
and payable monthly, at an annual rate of .40% of the first $500 million of the
Fund's daily net assets and .35% of the daily net assets of the Fund in excess
of $500 million. Bradford Capital Management may, in its discretion from time to
time, waive voluntarily all or any portion of its advisory fee or reimburse the
Fund for a portion of the expenses of its operations. For the six months ended
June 30, 1996, waivers amounted to $28,485. Advisory fees, before such waiver
amounted to $2,065,256 for the six months ended June 30, 1996.
As required by various state regulations, Bradford Capital Management will
reimburse the Fund if and to the extent that the aggregate operating expenses of
the Fund exceed applicable state limits for the first fiscal year. Currently,
the most restrictive of such applicable limits known to the Fund is 2.5% of the
first $30 million of average annual net assets, 2% of the next $70 million of
average annual net assets, and 1.5% of the remaining average annual net assets.
Certain expenses such as brokerage commissions, taxes, interest, and
extraordinary items are excluded from this limitation. No such reimbursements
were required for the six months ended June 30, 1996.
For the administration services provided, PFPC is entitled to receive from the
Fund a fee, computed daily and payable monthly, at an annual rate of .10% of the
first $200 million of daily net assets; .075% of the next $200 million of daily
net assets; .05% of the next $200 million of daily net assets; .025% of the next
$100 million of daily net assets; and .01% of the daily net assets in excess of
$700 million.
The Fund has adopted a Plan of Distribution and pursuant thereto has entered
into an agreement under which the distributor, Bradford, is entitled to receive
from the Fund reimbursement of its distribution costs at an annual rate of up to
.20% of daily net assets. Bradford may, in its discretion from time to time,
waive voluntarily all or any portion of its distribution fees. For the six
months ended June 30, 1996, waivers amounted to $1,373. Distribution fees,
before such waiver amounted to $1,108,475 for the six months ended June 30,
1996.
For the transfer agency services provided, Bradford is entitled to receive a
fee, computed and paid monthly, at an annual rate of $11.50 per active account.
12
<PAGE> 14
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Concluded)
June 30, 1996
(Unaudited)
NOTE 3 -- CAPITAL STOCK
Transactions in capital stock of the Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1996 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
---------------- ------------------
<S> <C> <C>
Shares sold..................................................... 2,743,101,703 4,174,590,024
Shares issued in connection with reinvestment of dividends from
net investment income......................................... 24,777,821 43,866,080
Shares redeemed................................................. (2,640,467,589) (3,886,262,837)
---------------- ------------------
Net increase.................................................... 127,411,935 332,193,267
============== ===============
</TABLE>
NOTE 4 -- NET ASSETS
Net assets consisted of the following:
<TABLE>
<CAPTION>
JUNE 30, 1996 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
-------------- ------------------
<S> <C> <C>
Capital stock, at par........................................... $ 1,136,796 $ 1,009,384
Paid-in capital in excess of par................................ 1,135,659,054 1,008,374,531
Accumulated realized capital loss............................... (14,339) (14,200)
-------------- ------------------
$1,136,781,511 $1,009,369,715
============== ===============
</TABLE>
13
<PAGE> 15
BOARD OF DIRECTORS
Allan L. Erb, Chairman
Douglas C. Altenbern
William H. Carter
Richard W. Hanselman
Edward J. Roach
Michael R. Shea
William T. Spitz
OFFICERS
Allan L. Erb
President
Randall R. Harness
Secretary and Treasurer
Judy K. Abroms
Vice President
Michael R. Shea
Vice President
R. Patrick Shepherd
Vice President
INVESTMENT ADVISER
Bradford Capital Management, Ltd.
330 Commerce Street
Nashville, Tennessee 37201
ADMINISTRATOR
PFPC Inc.
P.O. Box 8950
Wilmington, Delaware 19899
TRANSFER AGENT AND DISTRIBUTOR
J. C. Bradford & Co., L.L.C.
330 Commerce Street
Nashville, Tennessee 37201
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THE
BRADFORD
MONEY
FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JUNE 30, 1996
[J.C. BRADFORD & CO. LOGO]
MEMBERS NEW YORK STOCK EXCHANGE
