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Previous: CALIFORNIA COASTAL COMMUNITIES INC, 10-Q, 1998-08-06 |
Next: NORTHLAND CABLE PROPERTIES EIGHT LIMITED PARTNERSHIP, 10-Q, 1998-08-06 |
<PAGE> 1
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
600 FIFTH AVENUE
NEW YORK, NY 10020
(212) 830-5200
July 1, 1998
Dear Shareholder:
This semi-annual report covers the period from January 1, 1998 to June 30,
1998.
The Fund began the current year with assets of $1,563.3 million and ended the
six months with $1,773.6 million. In addition, the number of shareholders
increased from 130,595 to 136,299.
Reflective of the overall trend in short-term interest rates, the Fund's yield
went from 4.94% on December 31, 1997, to 4.87% on June 30, 1998. 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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS............................... 7.69%
Federal Home Loan Bank
5.72% 07/07/98 $18,460 $ 18,460,296
5.62% 10/08/98 8,125 8,128,334
5.61% 04/22/99 10,000 9,996,211
Federal Home Loan Mortgage Corporation
5.45% 08/21/98 10,000 9,922,792
Federal National Mortgage Association
5.40% 07/24/98 16,214 16,158,062
5.35% 08/12/98 6,500 6,496,986
5.45% 08/14/98 12,000 11,919,993
5.45% 08/24/98 10,000 9,918,250
5.71% 09/09/98 12,565 12,565,696
5.57% 05/07/99 12,855 12,842,346
5.56% 05/14/99 20,000 19,977,419
--------------
TOTAL AGENCY OBLIGATIONS 136,386,385
--------------
COMMERCIAL PAPER................................. 88.23%
Agriculture...................................... 5.22%
Archer Daniels Midland (A-1+, P-1)
5.50% 07/17/98 10,000 9,975,556
5.50% 07/21/98 15,000 14,954,167
5.50% 09/03/98 16,000 15,843,555
Golden Peanuts Co. (A-1+,P-1)
5.45% 08/06/98 5,000 4,972,750
5.46% 08/11/98 3,600 3,577,614
5.46% 08/13/98 9,000 8,941,305
5.45% 08/14/98 8,000 7,946,711
5.44% 08/26/98 6,740 6,682,965
5.47% 09/24/98 7,000 6,909,593
5.49% 09/25/98 4,000 3,947,540
5.49% 10/30/98 9,000 8,833,927
--------------
92,585,683
--------------
</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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Automobiles...................................... 4.96%
Daimler-Benz North America (A-1, P-1)
5.48% 07/02/98 $10,000 $ 9,998,478
5.48% 07/23/98 7,000 6,976,558
5.50% 08/07/98 12,000 11,932,167
5.50% 09/16/98 24,500 24,211,785
5.50% 09/17/98 10,000 9,880,833
5.50% 09/23/98 25,281 24,956,561
--------------
87,956,382
--------------
Beverages........................................ 4.48%
Coca-Cola Co. (A-1+, P-1)
5.42% 07/09/98 15,000 14,981,933
5.45% 08/04/98 10,000 9,948,528
5.46% 08/27/98 7,000 6,939,485
5.47% 08/28/98 7,643 7,575,644
5.48% 08/28/98 15,000 14,867,567
5.47% 09/14/98 13,500 13,346,156
5.46% 09/18/98 12,000 11,856,220
--------------
79,515,533
--------------
Broker/Dealer.................................... 11.26%
Bear Stearns Companies, Inc. (A-1, P-1)
5.41% 07/16/98 17,000 16,961,679
5.56% 08/04/98 5,000 4,973,744
5.52% 09/02/98 12,000 11,884,080
5.51% 09/16/98 15,000 14,823,221
Goldman Sachs Group, L.P. (A-1+, P-1)
5.50% 09/08/98 16,000 15,831,333
5.50% 09/10/98 2,000 1,978,306
5.50% 10/09/98 8,000 7,877,778
5.48% 10/13/98 20,000 19,683,378
5.48% 11/16/98 12,500 12,237,417
5.48% 11/20/98 10,000 9,783,844
</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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Broker/Dealer -- (Continued)
Merrill Lynch & Co., Inc. (A-1+, P-1)
5.53% 07/01/98 $ 6,000 $ 6,000,000
5.53% 07/29/98 10,000 9,956,989
5.49% 07/30/98 8,500 8,462,409
5.53% 07/31/98 10,000 9,953,917
5.54% 08/24/98 10,000 9,916,900
5.51% 08/27/98 15,000 14,869,137
5.44% 10/13/98 5,000 4,921,422
5.51% 11/02/98 10,000 9,810,211
5.51% 11/03/98 10,000 9,808,681
--------------
199,734,446
--------------
Chemicals........................................ 9.58%
Dupont (E.I.) de Nemours & Co. (A-1+, P-1)
5.44% 07/08/98 10,000 9,989,422
5.34% 08/14/98 11,000 10,928,207
5.47% 09/02/98 10,000 9,904,275
5.47% 09/21/98 12,000 11,850,487
5.47% 09/22/98 17,000 16,785,606
5.46% 09/23/98 10,000 9,872,600
5.46% 09/24/98 10,000 9,871,083
5.41% 10/27/98 10,000 9,822,672
Monsanto Co. (A-1, P-1)
5.44% 07/08/98 16,000 15,983,076
5.44% 08/11/98 17,000 16,894,676
5.44% 08/20/98 12,000 11,909,333
5.50% 09/11/98 15,000 14,835,000
5.49% 09/15/98 10,000 9,884,100
5.50% 09/22/98 11,500 11,354,174
--------------
169,884,711
--------------
</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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Consumer Products................................ 4.40%
Proctor & Gamble Co. (A-1+, P-1)
5.35% 07/22/98 $17,000 $ 16,946,946
5.47% 09/10/98 20,000 19,784,239
5.47% 09/21/98 8,950 8,838,488
5.47% 10/01/98 20,000 19,720,422
5.47% 10/05/98 13,000 12,810,373
--------------
78,100,468
--------------
Electronics...................................... 1.61%
Emerson Electric (A-1+, P-1)
5.46% 10/23/98 18,750 18,425,812
Motorola, Inc. (A-1+, P-1)
5.50% 09/24/98 10,300 10,166,243
--------------
28,592,055
--------------
Entertainment.................................... 3.49%
Walt Disney Company Inc. (A-1, P-1)
5.43% 11/09/98 28,000 27,446,743
5.46% 11/12/98 15,500 15,184,988
5.47% 12/17/98 19,825 19,315,922
--------------
61,947,653
--------------
Finance.......................................... 16.63%
American Express Credit Corp. (A-1, P-1)
5.20% 07/13/98 17,000 16,970,533
5.35% 07/15/98 12,000 11,975,033
5.48% 09/14/98 14,000 13,840,167
5.45% 09/29/98 10,000 9,863,750
Ford Motor Credit Company (A-1, P-1)
5.50% 07/06/98 4,000 3,996,944
5.36% 07/20/98 10,000 9,971,711
5.36% 07/27/98 10,000 9,961,289
5.46% 08/12/98 10,000 9,936,300
5.48% 09/02/98 3,000 2,971,230
5.48% 09/03/98 13,500 13,368,480
5.48% 09/04/98 10,000 9,901,056
</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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Finance -- (Continued)
General Electric Capital Corporation (A-1+, P-1)
5.39% 07/14/98 $ 2,000 $ 1,996,107
5.43% 07/14/98 6,500 6,487,255
5.34% 07/15/98 22,000 21,954,313
5.50% 08/03/98 10,000 9,949,583
5.50% 08/18/98 10,000 9,926,667
5.43% 10/29/98 12,000 11,782,800
General Motors Acceptance Corporation (A-1, P-1)
5.44% 08/17/98 7,500 7,446,733
5.49% 08/19/98 10,000 9,925,275
MetLife Funding Corporation (A-1+, P-1)
5.54% 07/28/98 15,000 14,937,675
USAA Capital Corp. (A-1+, P-1)
5.45% 07/09/98 9,500 9,488,494
5.34% 07/10/98 20,000 19,973,300
5.51% 07/23/98 10,000 9,966,328
5.47% 08/26/98 13,000 12,889,384
5.42% 09/17/98 14,500 14,329,722
5.49% 09/28/98 6,500 6,411,779
5.42% 10/02/98 5,000 4,929,992
5.42% 10/14/98 10,000 9,841,917
--------------
294,993,817
--------------
Food............................................. 1.87%
Hershey Foods Corp (A-1+, P-1)
5.48% 08/25/98 10,000 9,916,278
5.50% 09/24/98 8,480 8,369,878
McCormick And Co. (A-1, P-1)
5.50% 09/15/98 15,000 14,825,833
--------------
33,111,989
--------------
</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, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Food/Retail...................................... 4.14%
Winn Dixie Stores, Inc. (A-1, P-1)
5.51% 07/28/98 $15,000 $ 14,938,013
5.55% 08/11/98 10,000 9,936,792
5.50% 08/25/98 27,000 26,773,125
5.50% 09/01/98 12,000 11,886,333
5.50% 09/08/98 10,000 9,894,583
--------------
73,428,846
--------------
Industrial....................................... 2.12%
Eaton Corporation (A-1, P-1)
5.50% 09/01/98 18,000 17,829,500
5.50% 09/03/98 20,000 19,804,622
--------------
37,634,122
--------------
Oil & Gas........................................ 6.22%
Amoco Corporation (A-1+, P-1)
5.43% 07/13/98 11,000 10,980,090
5.43% 07/16/98 10,000 9,977,375
5.45% 08/05/98 20,000 19,894,028
5.45% 08/07/98 10,000 9,943,986
5.46% 08/10/98 22,000 21,866,533
5.47% 08/24/98 15,000 14,876,925
Atlantic Richfield Company (A-1, P-1)
5.41% 10/07/98 23,000 22,661,274
--------------
110,200,211
--------------
Pharmaceutical................................... 1.68%
SmithKline Beecham Corporation (A-1+, P-1)
5.50% 08/17/98 29,930 29,715,086
--------------
Publishing....................................... 1.96%
McGraw-Hill, Inc. (A-1, P-1)
5.29% 07/15/98 18,500 18,461,941
5.49% 09/16/98 10,000 9,882,575
5.40% 10/06/98 6,500 6,405,425
--------------
34,749,941
--------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Continued)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
Technology....................................... 2.44%
Lucent Technologies (A-1, P-1)
5.44% 07/13/98 $ 7,000 $ 6,987,307
5.44% 07/14/98 8,000 7,984,284
5.48% 08/19/98 16,000 15,880,658
5.45% 09/18/98 6,500 6,422,262
5.45% 09/25/98 6,000 5,921,883
--------------
43,196,394
--------------
Telecommunications............................... 6.17%
BellSouth Telecommunications (A-1+, P-1)
5.49% 07/27/98 2,755 2,744,076
5.47% 08/12/98 18,200 18,083,854
5.50% 08/20/98 4,500 4,465,625
5.47% 08/21/98 10,205 10,125,920
5.47% 09/08/98 20,000 19,790,317
5.48% 09/11/98 12,640 12,501,465
5.49% 09/11/98 8,000 7,912,160
SBC Communications, Inc. (A-1+, P-1)
5.48% 08/06/98 14,000 13,923,280
5.47% 08/10/98 20,000 19,878,444
--------------
109,425,141
--------------
TOTAL COMMERCIAL PAPER 1,564,772,478
--------------
VARIABLE RATE DEMAND NOTES....................... 1.54%
Bear Stearns Companies, Inc. (A-1, P-1)
5.41% 09/09/98 5,420 5,411,508
5.61% 09/09/98 4,750 4,742,405
General Motors Acceptance Corporation (A-1, P-1)
5.32% 07/07/98 5,000 4,986,540
Morgan Stanley Dean Witter & Co. (A+, A-1)
5.37% 09/22/98 7,250 7,233,447
5.43% 09/09/98 5,000 4,987,412
--------------
TOTAL VARIABLE RATE DEMAND NOTES 27,361,312
--------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Net Assets -- (Concluded)
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ -------- ------- --------------
<S> <C> <C> <C> <C>
VARIABLE RATE AGENCY OBLIGATIONS................. 0.69%
Federal National Mortgage Association
5.35% 09/14/98 $ 5,000 $ 5,000,000
Student Loan Marketing Association
5.36% 07/07/98 5,000 4,999,830
5.35% 07/07/98 2,225 2,223,393
--------------
TOTAL VARIABLE RATE OBLIGATIONS 12,223,223
--------------
U.S. GOVERNMENT OBLIGATIONS...................... 1.97%
U.S. Treasury Notes
5.12% 12/31/98 15,000 14,984,382
5.00% 01/31/99 10,000 9,979,937
5.87% 03/31/99 10,000 10,026,116
--------------
TOTAL U.S. GOVERNMENT OBLIGATIONS 34,990,435
--------------
TOTAL INVESTMENTS................................ 100.12% 1,775,733,833
(Amortized cost $1,775,733,833)*
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (0.12)% (2,131,289)
------ --------------
NET ASSETS....................................... 100.00% $1,773,602,544
====== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE ($1,773,602,544 / 1,773,622,544)..... $1.00
==============
</TABLE>
- ---------------
* Also cost for Federal income tax purposes.
See accompanying notes to financial statements.
8
<PAGE> 10
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statement of Operations
Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest............................................... $49,105,156
-----------
EXPENSES
Advisory fees.......................................... 3,187,753
Administration fees.................................... 278,456
Distribution fees...................................... 1,750,731
Directors' fees........................................ 23,877
Custodian fees......................................... 90,587
Transfer agent fees.................................... 822,806
Legal.................................................. 43,423
Audit.................................................. 21,514
SEC registration fees.................................. 46,117
Blue sky registration fees............................. 61,906
Insurance.............................................. 13,696
Printing and postage................................... 139,246
Miscellaneous.......................................... 6,106
-----------
TOTAL EXPENSES.................................... 6,486,218
Waiver of Advisory Fees................................ (189,738)
-----------
NET EXPENSES...................................... 6,296,480
-----------
NET INVESTMENT INCOME....................................... 42,808,676
NET REALIZED LOSS ON INVESTMENTS............................ (5,642)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $42,803,034
===========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE YEAR
JUNE 30, 1998 ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------- -----------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income.................................. $ 42,808,676 $ 69,288,675
Net realized loss on investments....................... (5,642) (18)
-------------- --------------
Net increase in net assets resulting from operations... 42,803,034 69,288,657
-------------- --------------
Dividends to shareholders from:
Net investment income ($.0243 and $.0485 per share,
respectively)........................................ (42,808,676) (69,288,675)
-------------- --------------
Total dividends to shareholders........................... (42,808,676) (69,288,675)
-------------- --------------
Capital Stock Transactions:
Proceeds from sale of capital shares................... 4,385,586,905 6,757,471,254
Value of shares issued in reinvestment of dividends.... 38,299,785 68,375,264
Cost of shares repurchased............................. (4,213,566,652) (6,496,879,767)
-------------- --------------
Increase in net assets derived from capital stock
transactions......................................... 210,320,038 328,966,751
-------------- --------------
Total increase in assets.................................. 210,314,396 328,966,733
-------------- --------------
Net Assets:
Beginning of period....................................... 1,563,288,148 1,234,321,415
-------------- --------------
End of period............................................. $1,773,602,544 $1,563,288,148
============== ==============
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 12
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
1998 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994
----------- ------------ ------------ ------------ ------------
<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....... .0243 .0485 .0468 .0515 .0343
Net Realized Gain on
Investments............... -- -- -- -- --
---------- ---------- ---------- ---------- --------
Total From Investment
Operations.......... .0243 .0485 .0468 .0515 .0343
---------- ---------- ---------- ---------- --------
LESS DISTRIBUTIONS:
Dividend to Shareholders
from Net Investment
Income.................... (.0243) (.0485) (.0468) (.0515) (.0343)
Dividend to Shareholders
from Net Realized Gain.... -- -- -- -- --
---------- ---------- ---------- ---------- --------
Total Distributions... (.0243) (.0485) (.0468) (.0515) (.0343)
---------- ---------- ---------- ---------- --------
Net Asset Value, End of
Period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========
TOTAL RETURN.................. 5.01%(b) 4.96% 4.78% 5.28% 3.48%
RATIO/SUPPLEMENT DATA:
Net Assets, End of Period
(in thousands)............ $1,773,603 $1,563,288 $1,234,321 $1,009,370 $677,177
Ratio of Expenses to
Average Daily Net
Assets.................. .72%(a)(b) .74%(a) .77%(a) .80%(a) .80%(a)
Ratio of Net Investment
Income to Average Daily
Net Assets.............. 4.89%(a)(b) 4.87%(a) 4.68%(a) 5.15%(a) 3.39%(a)
</TABLE>
- ---------------
(a) During the year a portion of the Advisory and/or 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 .74%, .75%,
.78%, .81%, and .83%, respectively, and the Ratio of Net Investment Income
to Average Daily Net Assets would have been 4.87%, 4.85%, 4.67%, 5.14%, and
3.36%, respectively.
(b) Annualized
See accompanying notes to financial statements.
11
<PAGE> 13
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements
June 30, 1998
(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 5.0 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-dominated 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.
12
<PAGE> 14
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Continued)
June 30, 1998
(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 Reich &
Tang Asset Management, L.P. 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 six months ended June 30, 1998, such waiver amounted to
$189,738. Advisory fees, before such waiver, amounted to $3,187,753 for the six
months ended June 30, 1998.
For the administration services provided, Reich & Tang Asset Management, L.P.
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; .07% of
the next $200 million of daily net assets; .045% 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 $700 million. Such fees amounted to $278,456
for the six months ended June 30, 1998.
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. Such fees
amounted to $1,750,731 for the six months ended June 30, 1998.
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.
Such fees amounted to $784,919 for the six months ended June 30, 1998.
13
<PAGE> 15
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
Notes to Financial Statements -- (Concluded)
June 30, 1998
(Unaudited)
NOTE 3 -- CAPITAL STOCK
Transactions in capital stock of the Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------- ------------------
<S> <C> <C>
Shares sold................................................. 4,385,586,905 6,757,471,254
Shares issued in connection with reinvestment of dividends
from net investment income................................ 38,299,785 68,375,264
Shares redeemed............................................. (4,213,566,652) (6,496,879,767)
-------------- --------------
Net increase................................................ 210,320,038 328,966,751
============== ==============
</TABLE>
NOTE 4 -- NET ASSETS
Net assets consisted of the following:
<TABLE>
<CAPTION>
JUNE 30, 1998
(UNAUDITED) DECEMBER 31, 1997
-------------- -----------------
<S> <C> <C>
Capital stock, at par....................................... $ 1,773,623 $ 1,563,302
Paid-in capital in excess of par............................ 1,771,848,921 1,561,739,204
Net accumulated realized capital loss....................... (20,000) (14,358)
-------------- --------------
$1,773,602,544 $1,563,288,148
============== ==============
</TABLE>
14
<PAGE> 16
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
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
TRANSFER AGENT AND DISTRIBUTOR
J. C. Bradford & Co., LLC
330 Commerce Street
Nashville, Tennessee 37201
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THE
BRADFORD
MONEY
FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JUNE 30, 1998
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