<PAGE> 1
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
103 BELLEVUE PARKWAY
WILMINGTON, DELAWARE 19809
(302) 791-9300
January 23, 1996
Dear Shareholder:
This annual report covers the period from January 1, 1995 to December 31,
1995.
This has proven to be a milestone year for the Fund. In February of 1989
the Bradford Money Fund began with assets of $240 million and on October 31,
1995 the Fund broke the $1 billion mark.
The Fund began the current year with assets of $677.2 million and ended the
year with $1,009.4 million. In addition, shareholders increased from 89,969 to
102,117.
As a result of the Federal Reserve rate cuts, there has been an across the
board drop in yields. Subsequently the yield for the Fund has slipped from 5.21%
on December 31, 1994 to 5.03% on December 31, 1995. 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
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS........................... 11.2%
Federal Farm Credit Bank
5.55% 02/07/96 $ 6,000 $ 5,965,775
5.40% 12/02/96 5,000 5,001,509
Federal Home Loan Bank
5.62% 05/20/96 3,000 2,934,433
Federal Home Loan Mortgage Corp.
6.68% 01/31/96 10,000 9,944,333
5.54% 02/26/96 16,500 16,357,807
5.58% 05/24/96 5,000 4,888,400
Federal National Mortgage Association
5.62% 01/16/96 6,000 5,985,950
5.50% 02/21/96 13,000 12,898,708
5.50% 03/13/96 9,000 8,901,000
5.62% 04/12/96 8,000 7,872,613
5.10% 10/30/96 5,000 4,785,375
5.10% 11/20/96 10,000 9,541,000
5.16% 11/20/96 9,000 8,582,040
5.11% 11/22/96 5,000 4,768,631
7.70% 12/10/96 4,575 4,670,765
------------
TOTAL AGENCY OBLIGATIONS 113,098,339
------------
COMMERCIAL PAPER............................. 80.0%
Agriculture.................................. 6.7%
Cargill, Inc. (A-1+/P-1)
5.67% 01/24/96 10,000 9,963,775
5.61% 02/20/96 16,500 16,371,437
5.55% 03/12/96 5,000 4,945,271
Golden Peanuts Co. (A-1+/P-1)
5.62% 01/19/96 6,000 5,983,140
5.68% 01/26/96 5,000 4,980,278
5.65% 02/09/96 6,000 5,963,275
5.63% 02/16/96 10,000 9,928,061
5.67% 02/27/96 6,000 5,946,135
5.60% 03/05/96 4,000 3,960,178
------------
68,041,550
------------
</TABLE>
See accompanying notes to financial statements.
1
<PAGE> 3
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Automobiles.................................. 0.7%
Daimler-Benz North America (A-1/P-1)
5.68% 01/19/96 $ 7,500 $ 7,478,700
------------
Banks -- Multi-National...................... 1.0%
Comerica (A-1/P-1)
6.18% 05/28/96 10,000 10,047,651
------------
Beverages.................................... 3.8%
PepsiCo, Inc. (A-1/P-1)
5.70% 01/04/96 4,400 4,397,910
5.65% 02/15/96 14,000 13,901,125
5.62% 02/22/96 20,000 19,837,643
------------
38,136,678
------------
Chemicals.................................... 3.3%
Dupont (E.I.) deNemours & Co.
(A-1+/P-1)
5.70% 01/17/96 10,000 9,974,667
5.67% 01/18/96 3,500 3,490,629
5.70% 01/19/96 2,000 1,994,300
5.67% 01/22/96 8,000 7,973,540
5.65% 01/25/96 10,000 9,962,333
------------
33,395,469
------------
Communications............................... 2.5%
Dun & Bradstreet Corp. (A-1+/P-1)
5.59% 02/20/96 8,000 7,937,889
5.60% 02/27/96 10,000 9,911,333
Knight-Ridder Inc. (A-1+/P-1)
5.70% 01/18/96 7,800 7,779,005
------------
25,628,227
------------
Electronics.................................. 2.8%
Hewlett-Packard Co. (A-1+/P-1)
5.55% 01/02/96 5,000 4,999,229
5.65% 01/24/96 10,000 9,963,903
5.62% 02/15/96 10,000 9,929,750
5.60% 02/29/96 3,000 2,972,467
------------
27,865,349
------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 4
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Finance...................................... 24.9%
AT&T Capital Corp. (A-1/P-1)
5.71% 01/31/96 $ 10,000 $ 9,952,417
5.56% 05/13/96 3,000 2,938,377
Cargill Financial Services (A-1+/P-1)
5.60% 03/04/96 15,000 14,853,000
Ford Motor Credit Co. (A-1/P-1)
5.69% 02/13/96 7,000 6,952,425
5.55% 02/23/96 15,000 14,877,438
5.64% 02/26/96 6,500 6,442,973
5.55% 02/28/96 1,000 991,058
5.57% 02/29/96 7,500 7,431,535
5.57% 03/01/96 2,000 1,981,433
5.50% 07/12/96 4,000 3,882,056
General Electric Capital Corp.
(A-1+/P-1)
5.56% 01/31/96 12,000 11,944,400
5.57% 03/01/96 12,000 11,888,600
J.C. Penney Funding Corp. (A-1/P-1)
5.65% 02/12/96 11,000 10,927,492
5.65% 02/13/96 10,500 10,429,140
5.65% 02/14/96 15,000 14,896,417
5.62% 02/28/96 9,000 8,918,510
Met Life Funding Corp. (A-1+/P-1)
5.65% 01/03/96 7,120 7,117,765
5.70% 01/09/96 13,000 12,983,533
5.68% 01/12/96 20,000 19,965,288
5.65% 01/30/96 7,500 7,465,865
Nordstrom Credit Inc. (A-1/P-1)
5.65% 02/12/96 7,000 6,953,858
Pitney Bowes Credit Corp. (A-1+/P-1)
5.67% 01/24/96 12,000 11,956,530
5.66% 01/26/96 10,000 9,960,694
5.62% 02/05/96 8,000 7,956,289
5.60% 02/09/96 15,000 14,909,000
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 5
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Finance -- (Continued)
USAA Capital Corp. (A-1+/ P-1)
5.66% 01/31/96 $ 5,000 $ 4,976,417
5.63% 02/14/96 8,000 7,944,951
------------
251,497,461
------------
Financial Services........................... 8.9%
Bear Stearns Companies, Inc. (A-1/P-1)
5.60% 01/16/96 8,000 7,981,333
5.67% 01/19/96 11,000 10,968,815
Goldman Sachs Group L.P. (A-1+/P-1)
5.73% 01/08/96 15,000 14,983,288
5.68% 02/07/96 20,000 19,883,243
5.60% 04/19/96 8,500 8,355,878
Merrill Lynch & Co., Inc. (A-1+/P-1)
5.72% 01/18/96 8,000 7,978,391
5.74% 01/22/96 2,000 1,993,303
5.75% 01/25/96 4,500 4,482,750
5.67% 02/12/96 10,000 9,933,850
5.66% 02/28/96 3,500 3,468,084
------------
90,028,935
------------
Food......................................... 5.5%
CPC International, Inc. (A-1/P-1)
5.68% 02/05/96 8,500 8,453,061
5.65% 02/08/96 7,000 6,958,253
5.62% 02/16/96 12,000 11,913,827
5.56% 03/11/96 4,500 4,451,350
5.57% 03/11/96 9,000 8,902,525
5.55% 03/18/96 10,000 9,881,292
McCormick and Co., Inc. (A-1/P-1)
5.45% 07/26/96 5,000 4,843,313
------------
55,403,621
------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 6
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Food/Retail.................................. 4.6%
Winn-Dixie Stores, Inc. (A-1/P-1)
5.62% 01/10/96 $ 15,000 $ 14,978,925
5.66% 02/08/96 10,000 9,940,256
5.68% 02/08/96 15,000 14,910,067
5.65% 02/23/96 6,000 5,950,092
------------
45,779,340
------------
Freight & Shipping........................... 0.3%
Norfolk Southern Corp. (A-1+/P-1)
5.67% 01/11/96 3,000 2,995,275
------------
Industrial................................... 5.7%
Schering-Plough Corp. (A-1+/P-1)
5.56% 01/17/96 10,000 9,975,289
5.63% 01/23/96 11,000 10,962,154
5.63% 02/27/96 8,000 7,928,687
5.45% 05/02/96 10,000 9,815,306
Stanley Works (A-1/P-1)
5.68% 02/02/96 15,000 14,924,267
5.58% 02/27/96 4,000 3,964,660
------------
57,570,363
------------
Pharmaceutical............................... 2.3%
Eli Lilly & Co. (A-1+/P-1)
5.58% 03/15/96 15,000 14,827,950
Warner Lambert Co. (A-1+/P-1)
5.55% 04/09/96 8,500 8,370,269
------------
23,198,219
------------
Publishing................................... 1.5%
McGraw-Hill, Inc. (A-1/P-1)
5.67% 01/23/96 10,000 9,965,350
5.67% 01/26/96 5,600 5,577,950
------------
15,543,300
------------
Retail Merchandising......................... 1.5%
Home Depot (A-1/P-1)
5.68% 01/11/96 15,000 14,976,333
------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Telecommunications........................... 3.3%
American Telephone & Telegraph Co.
(A-1+/P-1)
5.70% 01/12/96 $ 3,000 $ 2,994,775
5.59% 02/13/96 8,000 7,946,584
5.65% 02/15/96 3,000 2,978,813
5.56% 03/11/96 9,500 9,397,294
5.57% 03/29/96 4,000 3,945,538
5.51% 04/05/96 2,000 1,970,919
Southwestern Bell Capital Corp.
(A-1/p-1)
5.45% 03/18/96 2,000 1,976,686
Southwestern Bell Telephone (Aa3/AA)
8.30% 06/01/96 1,500 1,515,100
------------
32,725,709
------------
Transportation............................... 0.7%
Conrail Inc. (A-1/P-1)
5.72% 01/12/96 7,000 6,987,766
------------
TOTAL COMMERCIAL PAPER 807,299,946
------------
U.S. TREASURY OBLIGATIONS.................... 1.1%
U.S. Treasury Notes
5.875% 05/31/96 10,000 10,001,197
6.125% 07/31/96 1,000 1,002,217
------------
TOTAL U.S. TREASURY OBLIGATIONS 11,003,414
------------
VARIABLE RATE OBLIGATIONS.................... 7.7%
Federal Home Loan Bank Notes
6.03% 01/02/96 10,000 10,000,000
6.21% 03/29/96 3,500 3,497,384
Federal National Mortgage Association Notes
4.35% 01/05/96 30,000 29,979,768
5.68% 03/14/96 5,000 5,000,000
Student Loan Marketing Association Notes
5.23% 01/02/96 20,000 20,000,000
5.24% 01/02/96 5,000 4,998,651
5.40% 01/02/96 4,000 3,997,805
------------
TOTAL VARIABLE RATE OBLIGATIONS 77,473,608
------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Concluded)
December 31, 1995
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
TOTAL INVESTMENTS........................... 100.0% $1,008,875,307
(Amortized Cost $1,008,875,307)*
OTHER ASSETS IN EXCESS OF LIABILITIES....... 0.0% 494,408
------------ --------------
NET ASSETS.................................. 100.0% $1,009,369,715
========== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
(1,009,369,715 / 1,009,383,915) $1.00
==============
- ---------------
* Also cost for Federal Income Tax purposes.
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Operations
For the Year Ended December 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest...................................................................... $52,952,970
-----------
EXPENSES
Advisory fees................................................................. 3,359,005
Administration fees........................................................... 493,829
Distribution fees............................................................. 1,776,574
Directors' fees............................................................... 24,000
Custodian fees................................................................ 102,567
Transfer agent fees........................................................... 1,120,184
Legal......................................................................... 13,000
Audit......................................................................... 19,500
SEC registration fees......................................................... 99,280
Blue sky registration fees.................................................... 65,000
Insurance..................................................................... 28,552
Printing and Postage.......................................................... 119,799
Miscellaneous................................................................. 23,119
-----------
TOTAL EXPENSES........................................................... 7,244,409
Waiver of Advisory and Distribution Fees...................................... (120,101)
-----------
NET EXPENSES............................................................. 7,124,308
-----------
NET INVESTMENT INCOME.............................................................. 45,828,662
NET REALIZED LOSS ON INVESTMENTS................................................... (864)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................... $45,827,798
============
</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>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Increase (decrease) in Net Assets:
Operations:
Net investment income................................... $ 45,828,662 $ 24,947,849
Net realized loss on investments........................ (864) (10,526)
----------------- -----------------
Net increase in net assets resulting from operations.... 45,827,798 24,937,323
----------------- -----------------
Dividends to shareholders from:
Net investment income ($.0515 and $.0343 per share,
respectively)......................................... (45,828,662) (24,947,849)
----------------- -----------------
Total dividends to shareholders............................ (45,828,662) (24,947,849)
----------------- -----------------
Capital Stock Transactions:
Proceeds from sale of capital shares.................... 4,174,590,024 3,297,613,955
Value of shares issued in reinvestment of dividends..... 43,866,080 24,178,144
Cost of shares repurchased.............................. (3,886,262,837) (3,363,941,161)
----------------- -----------------
Increase(decrease) in net assets derived from capital
stock
transactions.......................................... 332,193,267 (42,149,062)
----------------- -----------------
Total increase (decrease) in assets........................ 332,192,403 (42,159,588)
----------------- -----------------
Net Assets:
Beginning of year.......................................... 677,177,312 719,336,900
----------------- -----------------
End of year................................................ $ 1,009,369,715 $ 677,177,312
=============== ===============
</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>
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------
<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...................... .0515 .0343 .0247 .0308 .0531
Net Realized Gain on Investments........... -- -- -- .0001 --
------------ ------------ ------------ ------------ ------------
Total From Investment Operations....... .0515 .0343 .0247 .0309 .0531
------------ ------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividend to Shareholders from Net Investment
Income..................................... (.0515) (.0343) (.0247) (.0308) (.0531)
Dividend to Shareholders from Net Realized
Gains...................................... -- -- -- (.0001) --
------------ ------------ ------------ ------------ ------------
Total Distributions ................... (.0515) (.0343) (.0247) (.0309) (.0531)
------------ ------------ ------------ ------------ ------------
Net Asset Value, End of Period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
TOTAL RETURN................................... 5.28% 3.48% 2.50% 3.13% 5.44%
RATIO/SUPPLEMENT DATA:
Net Assets, End of Period (in thousand)...... $1,009,370 $677,177 $719,337 $652,622 $605,089
Ratio of Expenses to Average Daily Net
Assets................................... .80%(a) .80%(a) .81%(a) .85% .88%
Ratio of Net Investment Income to Average
Daily Net Assets......................... 5.15%(a) 3.39%(a) 2.47%(a) 3.08% 5.31%
------------ ------------ ------------ ------------ ------------
</TABLE>
- ---------------
(a) During the period a portion of the Distribution fees were voluntarily
reduced. If such voluntary fee reduction had not occurred, the Ratio of
Expenses to Average Daily Net Assets would have been .81%, .83% and .84%,
respectively, and the Ratio of Net Investment Income to Average Daily Net
Asset would have been 5.14%, 3.36% and 2.44%, respectively.
See accompanying notes to financial statements.
10
<PAGE> 12
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements
December 31, 1995
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)
December 31, 1995
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., a Tennessee limited partnership
("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 year ended
December 31, 1995, waivers amounted to $2,131. Advisory fees, before such waiver
amounted to $3,359,005 for the year ended December 31, 1995.
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 year ended December 31, 1995.
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
year ended December 31, 1995, waivers amounted to $117,970. Distribution fees,
before such waiver amounted to $1,776,574 for the year ended December 31, 1995.
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)
December 31, 1995
NOTE 3 -- CAPITAL STOCK
Transactions in capital stock of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
<S> <C> <C>
Shares sold................................................... 4,174,590,024 3,297,613,955
Shares issued in connection with reinvestment of dividends
from net investment income.................................. 43,866,080 24,178,144
Shares redeemed............................................... (3,886,262,837) (3,363,941,161)
------------------ ------------------
Net increase (decrease)....................................... 332,193,267 (42,149,062)
=============== ===============
</TABLE>
NOTE 4 -- NET ASSETS
Net assets consisted of the following:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
<S> <C> <C>
Capital stock, at par........................................ $ 1,009,384 $ 677,191
Paid-in capital in excess of par............................. 1,008,374,531 676,513,457
Accumulated realized capital loss............................ (14,200) (13,336)
------------------ ------------------
$ 1,009,369,715 $ 677,177,312
=============== ===============
</TABLE>
13
<PAGE> 15
INDEPENDENT AUDITORS' REPORT
Shareholders and Board of Directors
The Bradford Funds, Inc.
The Bradford Money Fund
We have audited the accompanying statement of net assets of The Bradford
Funds, Inc., The Bradford Money Fund as of December 31, 1995 and the related
statements of operations for the year then ended and of changes in net assets
for each of the two years in the period then ended and the financial highlights
for each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The Bradford Funds,
Inc., The Bradford Money Fund as of December 31, 1995, the results of its
operations, changes in its net assets and the financial highlights for the
respective stated years in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Nashville, Tennessee
January 22, 1996
14
<PAGE> 16
BOARD OF DIRECTORS
Allan L. Erb, Chairman
Douglas C. Altenbern
Richard W. Hanselman
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.
330 Commerce Street
Nashville, Tennessee 37201
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THE
BRADFORD
MONEY
FUND
ANNUAL REPORT TO SHAREHOLDERS
DECEMBER 31, 1995
J. C. Bradford & Co.
MEMBERS NEW YORK STOCK EXCHANGE
