<PAGE> 1
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
400 BELLEVUE PARKWAY
WILMINGTON, DELAWARE 19809
(302) 791-9300
January 31, 1997
Dear Shareholder:
This annual report covers the period from January 1, 1996 to December 31,
1996.
The Fund began the current year with assets of $1,009.4 million and ended
the year with $1,234.3 million. In addition, the number of shareholders
increased from 102,117 to 113,869.
The yield on the Fund reflected the move of short-term rates which for most
of the year were flat to down slightly. Accordingly, the Fund yield slipped from
5.03% on December 31, 1995, to 4.77% on December 31, 1996. 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,
LOGO
Allan L. Erb
President
<PAGE> 2
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets
December 31, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS............................... 20.3%
Federal Home Loan Bank
5.22% 01/09/97 $ 9,000 $ 8,989,560
5.30% 01/16/97 2,000 1,999,980
6.90% 02/24/97 1,000 1,001,642
5.36% 02/25/97 15,000 14,877,167
5.35% 03/20/97 10,000 9,884,083
Federal Home Loan Mortgage Corporation
7.75% 01/27/97 15,000 15,021,450
5.23% 02/07/97 18,325 18,226,498
5.23% 03/05/97 14,000 13,871,988
5.29% 03/10/97 5,500 5,445,043
5.29% 03/17/97 15,173 15,005,939
5.31% 03/17/97 13,500 13,350,656
5.30% 03/19/97 19,000 18,784,614
5.31% 03/21/97 18,500 18,284,429
5.34% 03/25/97 16,500 16,296,857
Federal National Mortgage Association
7.68% 01/27/97 5,000 5,008,623
5.23% 01/29/97 16,000 15,934,978
5.36% 02/27/97 9,500 9,419,377
5.22% 03/06/97 14,000 13,870,080
5.34% 03/12/97 11,140 11,024,330
5.28% 03/13/97 14,500 14,349,007
5.05% 03/14/97 10,000 9,993,362
--------------
TOTAL AGENCY OBLIGATIONS 250,639,663
--------------
COMMERCIAL PAPER................................. 74.0%
Agriculture...................................... 3.7%
Cargill, Inc. (A-1+, P-1)
5.27% 01/15/97 19,000 18,961,061
5.28% 02/05/97 16,500 16,415,300
5.28% 03/12/97 5,000 4,948,667
Golden Peanuts Co. (A-1+, P-1)
5.31% 01/13/97 5,000 4,991,150
--------------
45,316,178
--------------
Automobiles...................................... 1.4%
Daimler-Benz (A-1, P-1)
5.32% 01/28/97 11,000 10,956,110
5.32% 02/07/97 6,500 6,464,459
--------------
17,420,569
--------------
</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, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
Chemicals........................................ 2.8%
Dupont (E.I.) de Nemours & Co. (A-1+, P-1)
5.27% 01/10/97 $ 6,000 $ 5,992,095
5.34% 01/21/97 14,000 13,958,467
5.26% 02/06/97 15,000 14,921,100
--------------
34,871,662
--------------
Communications................................... 2.4%
Knight-Ridder, Inc. (A-1+, P-1)
5.30% 01/07/97 20,000 19,982,333
5.30% 03/20/97 9,800 9,687,463
--------------
29,669,796
--------------
Electronics...................................... 2.6%
Avnet, Inc. (A-1, P-1)
5.33% 01/23/97 10,000 9,967,427
5.42% 02/14/97 10,000 9,933,756
5.48% 02/28/97 7,000 6,938,198
5.34% 03/14/97 5,000 4,946,600
--------------
31,785,981
--------------
Entertainment.................................... 5.1%
Walt Disney Co., Inc. (A-1, P-1)
5.35% 01/22/97 15,000 14,953,187
5.27% 01/30/97 14,000 13,940,566
5.39% 02/04/97 10,000 9,949,094
5.25% 02/28/97 8,259 8,189,143
5.25% 03/27/97 16,000 15,801,667
--------------
62,833,657
--------------
Finance.......................................... 18.9%
Ford Motor Credit Co. (A-1, P-1)
5.31% 01/08/97 16,500 16,482,964
5.31% 01/23/97 11,000 10,964,305
5.31% 02/07/97 5,500 5,469,984
5.29% 02/10/97 8,500 8,450,039
5.27% 04/30/97 12,000 11,790,957
General Electric Capital Corp. (A-1, P-1)
5.39% 01/13/97 11,000 10,980,236
5.30% 01/14/97 10,000 9,980,861
5.32% 01/16/97 6,740 6,725,060
5.30% 01/17/97 10,000 9,976,444
5.32% 01/17/97 4,560 4,549,218
5.30% 01/27/97 2,000 1,992,344
</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, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
Finance -- (Continued)
5.31% 02/10/97 $ 6,000 $ 5,964,600
5.30% 02/14/97 1,500 1,490,283
5.31% 03/25/97 11,000 10,865,333
J. C. Penney Funding Corp. (A-1, P-1)
5.31% 01/31/97 14,000 13,938,050
Met Life Funding Corp. (A-1+, P-1)
5.29% 01/09/97 15,000 14,982,366
5.29% 01/24/97 13,000 12,956,064
5.27% 02/10/97 14,000 13,918,022
5.25% 03/14/97 15,000 14,842,500
USAA Capital Corp. (A-1+, P-1)
5.30% 01/02/97 6,000 5,999,117
5.30% 01/29/97 6,000 5,975,267
5.26% 02/24/97 14,000 13,889,330
5.28% 02/26/97 15,000 14,876,800
5.29% 03/31/97 6,500 6,414,993
--------------
233,475,137
--------------
Financial Services............................... 8.3%
Bear Stearns Companies, Inc. (A-1, P-1)
5.30% 02/20/97 14,000 13,896,944
5.30% 03/31/97 3,000 2,960,692
C.S. First Boston, Inc. (A-1, P-1)
5.33% 02/03/97 10,000 9,951,142
Dean Witter, Discover & Co. (A-1, P-1)
5.31% 01/22/97 11,500 11,464,379
Goldman Sachs Group L.P. (A-1+, P-1)
5.34% 03/21/97 5,000 4,941,407
Merrill Lynch & Co., Inc. (A-1+, P-1)
5.34% 01/03/97 9,000 8,997,330
5.33% 01/24/97 1,500 1,494,892
5.34% 02/11/97 12,000 11,927,020
5.45% 02/18/97 11,000 10,920,067
5.32% 03/03/97 24,500 24,279,146
5.33% 03/10/97 1,500 1,484,898
--------------
102,317,917
--------------
</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, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
Food............................................. 2.9%
CPC International, Inc. (A-1, P-1)
5.35% 02/19/97 $10,000 $ 9,927,181
5.43% 02/19/97 2,000 1,985,218
5.29% 03/14/97 17,000 16,820,140
5.30% 04/03/97 7,200 7,102,480
--------------
35,835,019
--------------
Household Items.................................. 1.5%
Procter & Gamble Co. (A-1+, P-1)
5.27% 01/10/97 7,000 6,990,777
5.28% 01/23/97 6,000 5,980,640
5.25% 02/03/97 5,550 5,523,291
--------------
18,494,708
--------------
Industrial....................................... 3.9%
RR Donnelley & Sons (A-1, P-1)
5.31% 01/06/97 15,000 14,988,938
5.32% 01/13/97 10,000 9,982,267
5.28% 02/18/97 6,050 6,007,408
Schering-Plough Corp. (A-1+, P-1)
5.25% 03/11/97 4,700 4,652,706
5.27% 03/11/97 3,000 2,969,698
5.25% 06/17/97 10,366 10,113,545
--------------
48,714,562
--------------
Pharmaceutical................................... 2.1%
Eli Lilly & Co. (A-1+, P-1)
5.28% 01/28/97 22,000 21,912,880
Warner Lambert Co. (A-1+, P-1)
5.28% 01/15/97 4,500 4,490,760
--------------
26,403,640
--------------
Publishing....................................... 1.8%
McGraw-Hill, Inc. (A-1, P-1)
5.30% 01/14/97 11,335 11,313,306
5.30% 03/04/97 5,842 5,788,676
5.30% 03/21/97 5,400 5,337,195
--------------
22,439,177
--------------
</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, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
Technology....................................... 5.0%
Lucent Technologies (A-1, P-1)
5.26% 02/13/97 $12,000 $ 11,924,607
5.29% 02/21/97 2,000 1,985,012
5.25% 03/11/97 13,500 13,364,156
5.28% 03/26/97 7,000 6,913,760
5.28% 04/25/97 8,000 7,866,240
5.28% 04/28/97 10,000 9,828,400
5.28% 04/29/97 10,000 9,826,933
--------------
61,709,108
--------------
Telecommunications............................... 3.5%
Ameritech Corp. (A-1+, P-1)
5.29% 01/21/97 21,000 20,938,283
5.29% 03/18/97 22,000 21,754,541
--------------
42,692,824
--------------
Utilities-Electric............................... 1.1%
Southern California Edison Co. (A-1, P-1)
5.34% 04/04/97 13,500 13,313,768
--------------
Utilities-Telephone.............................. 7.0%
Bell South Telecommunications (A-1+, P-1)
5.28% 01/22/97 15,000 14,953,800
5.26% 02/12/97 9,000 8,944,770
5.28% 02/12/97 14,500 14,410,680
5.27% 02/27/97 13,000 12,891,526
5.32% 03/13/97 10,000 9,895,078
U.S. West Communications Group (A-1, P-1)
5.30% 01/09/97 10,000 9,988,222
5.30% 01/10/97 14,600 14,580,655
--------------
85,664,731
--------------
TOTAL COMMERCIAL PAPER....... 912,958,434
--------------
U.S. TREASURY OBLIGATIONS........................ 1.4%
U.S. Treasury Notes
6.50% 04/30/97 11,000 11,031,672
6.50% 05/15/97 6,500 6,519,684
--------------
TOTAL U.S. TREASURY OBLIGATIONS 17,551,356
--------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Concluded)
December 31, 1996
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- -------- --------------
<S> <C> <C> <C> <C>
VARIABLE RATE OBLIGATIONS........................ 3.9%
Federal Home Loan Bank Notes
5.78% 01/02/97 $10,000 $ 10,000,000
5.75% 03/31/97 3,500 3,498,436
Federal National Mortgage Association Notes
5.18% 03/14/97 5,000 5,000,000
Student Loan Marketing Association Notes
5.41% 01/07/97 5,000 4,999,124
5.44% 01/07/97 2,225 2,221,183
5.57% 01/07/97 4,000 3,999,007
Bear Stearns (A-1, P-1)
5.66% 01/15/97 10,000 10,000,000
5.72% 01/31/97 8,000 8,000,000
--------------
TOTAL VARIABLE RATE OBLIGATIONS 47,717,750
--------------
TOTAL INVESTMENTS................................ 99.6% 1,228,867,203
(Amortized Cost $1,228,867,203)*
OTHER ASSETS IN EXCESS OF LIABILITIES............ 0.4% 5,454,212
---------- --------------
NET ASSETS....................................... 100.0% $1,234,321,415
========== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE
(1,234,321,415 / 1,234,335,754) $1.00
==============
</TABLE>
- ---------------
* Also cost for Federal Income Tax purposes.
See accompanying notes to financial statements.
6
<PAGE> 8
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Operations
For the Year Ended December 31, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest............................................... $63,355,525
-----------
EXPENSES
Advisory fees.......................................... 4,309,221
Administration fees.................................... 521,057
Distribution fees...................................... 2,318,922
Directors' fees........................................ 56,000
Custodian fees......................................... 134,528
Transfer agent fees.................................... 1,250,560
Legal fees............................................. 40,000
Audit fees............................................. 20,500
SEC registration fees.................................. 59,187
Blue sky registration fees............................. 65,000
Insurance expense...................................... 23,867
Printing and Postage fees.............................. 190,116
Miscellaneous fees..................................... 25,000
-----------
TOTAL EXPENSES.................................... 9,013,958
Waiver of Advisory and Distribution Fees............... (81,104)
-----------
NET EXPENSES...................................... 8,932,854
-----------
NET INVESTMENT INCOME....................................... 54,422,671
NET REALIZED LOSS ON INVESTMENTS............................ (139)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $54,422,532
===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income.................................. $ 54,422,671 $ 45,828,662
Net realized loss on investments....................... (139) (864)
--------------- ---------------
Net increase in net assets resulting from operations... 54,422,532 45,827,798
--------------- ---------------
Dividends to shareholders from:
Net investment income ($.0468 and $.0515 per share,
respectively)........................................ (54,422,671) (45,828,662)
--------------- ---------------
Total dividends to shareholders........................... (54,422,671) (45,828,662)
--------------- ---------------
Capital Stock Transactions:
Proceeds from sale of capital shares................... 5,268,446,578 4,174,590,024
Value of shares issued in reinvestment of dividends.... 51,941,658 43,866,080
Cost of shares repurchased............................. (5,095,436,397) (3,886,262,837)
--------------- ---------------
Increase in net assets derived from capital stock
transactions......................................... 224,951,839 332,193,267
--------------- ---------------
Total increase in assets.................................. 224,951,700 332,192,403
--------------- ---------------
Net Assets:
Beginning of year......................................... 1,009,369,715 677,177,312
--------------- ---------------
End of year............................................... $ 1,234,321,415 $ 1,009,369,715
=============== ===============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 10
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,
1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income........................ .0468 .0515 .0343 .0247 .0308
Net Realized Gain on Investments............. -- -- -- -- .0001
---------- ---------- -------- -------- --------
Total From Investment Operations....... .0468 .0515 .0343 .0247 .0309
---------- ---------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividend to Shareholders from Net Investment
Income..................................... (.0468) (.0515) (.0343) (.0247) (.0308)
Dividend to Shareholders from Net Realized
Gains...................................... -- -- -- -- (.0001)
---------- ---------- -------- -------- --------
Total Distributions.................... (.0468) (.0515) (.0343) (.0247) (.0309)
---------- ---------- -------- -------- --------
Net Asset Value, End of Year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ======== ========
TOTAL RETURN................................... 4.78% 5.28% 3.48% 2.50% 3.13%
RATIO/SUPPLEMENT DATA:
Net Assets, End of Year (in thousands)....... $1,234,321 $1,009,370 $677,177 $719,337 $652,622
Ratio of Expenses to Average Daily Net
Assets................................... .77%(a) .80%(a) .80%(a) 81%(a) .85%
Ratio of Net Investment Income to Average
Daily Net Assets......................... 4.68%(a) 5.15%(a) 3.39%(a) 2.47%(a) 3.08%
</TABLE>
- ---------------
(a) During the period a portion of the Advisory and Distribution fees were
voluntarily reduced. If such voluntary fee reductions 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 Assets would have been 4.67%, 5.14%, 3.36% and 2.44%,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 11
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements
December 31, 1996
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.
10
<PAGE> 12
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Continued)
December 31, 1996
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. Bradford Capital
Management has agreed to waive indefinitely a portion of its advisory fee such
that it is receiving .30% of the Fund's average daily net assets in excess of $1
billion. For the year ended December 31, 1996, such waivers amounted to $79,731.
Advisory fees, before such waiver amounted to $4,309,221 for the year ended
December 31, 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 year ended December 31, 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. Such fees amounted to $521,057 for the year ended
December 31, 1996.
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, 1996, Bradford agreed voluntarily to reduce the amount
of its Rule 12b-1 fees to the extent necessary to cause the Fund's total
expenses not to exceed .80% of average net assets. Waivers during the year
amounted to $1,373. Distribution fees, before such waiver amounted to $2,318,922
for the year ended December 31, 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.
11
<PAGE> 13
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Concluded)
December 31, 1996
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, 1996 DECEMBER 31, 1995
------------------ ------------------
<S> <C> <C>
Shares sold................................................. 5,268,446,578 4,174,590,024
Shares issued in connection with reinvestment of dividends
from net investment income................................ 51,941,658 43,866,080
Shares redeemed............................................. (5,095,436,397) (3,886,262,837)
--------------- ---------------
Net increase................................................ 224,951,839 332,193,267
=============== ===============
</TABLE>
NOTE 4 -- NET ASSETS
Net assets consisted of the following:
<TABLE>
<CAPTION>
DECEMBER 31, 1996 DECEMBER 31, 1995
------------------ ------------------
<S> <C> <C>
Capital stock, at par....................................... $ 1,234,336 $ 1,009,384
Paid-in capital in excess of par............................ 1,233,101,418 1,008,374,531
Net accumulated realized capital loss....................... (14,339) (14,200)
--------------- ---------------
$ 1,234,321,415 $ 1,009,369,715
=============== ===============
</TABLE>
12
<PAGE> 14
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, 1996 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 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, 1996 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, 1996, 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
February 12, 1997
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. LLC
330 Commerce Street
Nashville, Tennessee 37201
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THE
BRADFORD
MONEY
FUND
ANNUAL REPORT TO SHAREHOLDERS
DECEMBER 31, 1996
(J.C. BRADFORD & CO. LOGO)
MEMBERS NEW YORK STOCK EXCHANGE
