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Previous: INTERLINE RESOURCES CORP, 8-K, 1998-02-19 |
Next: ENVIRONMENTAL MONITORING & TESTING CORPORATION, DEFR14C, 1998-02-19 |
<PAGE> 1
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
600 FIFTH AVENUE
NEW YORK, NY 10020
(212) 830-5200
January 31, 1998
Dear Shareholder:
This annual report covers the period from January 1, 1997 to December
31, 1997.
The Fund began the current year with assets of $1,234.3 million and
ended the year with $1,563.3 million. In addition, the number of shareholders
increased from 113,869 to 130,595.
The Fund yield went from 4.77% on December 31, 1996, to 4.94% on
December 31, 1997. 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,
Allan L. Erb
President
<PAGE> 2
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
STATEMENT OF NET ASSETS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ ----------- --------- ------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS..................................... 28.56%
Federal Farm Credit Bank
6.21% 04/21/98 $ 1,000 $ 1,001,499
5.48% 05/01/98 12,000 11,989,527
Federal Home Loan Bank
5.58% 03/04/98 15,000 14,855,721
Federal Home Loan Mortgage Corporation
5.60% 03/06/98 18,000 17,820,800
5.63% 03/10/98 10,000 9,893,656
5.60% 03/13/98 15,000 14,834,333
Federal National Mortgage Association
5.50% 01/05/98 12,000 11,992,667
5.48% 02/05/98 15,000 14,920,083
5.47% 02/06/98 6,000 5,967,180
5.45% 02/09/98 18,500 18,390,773
5.47% 02/09/98 10,000 9,940,742
5.55% 03/02/98 10,000 9,907,500
5.57% 03/03/98 15,000 14,858,429
5.58% 03/05/98 17,500 17,329,113
5.61% 03/06/98 10,000 9,900,178
5.61% 03/09/98 19,500 19,296,404
5.59% 03/10/98 10,500 10,389,132
5.63% 03/10/98 16,500 16,324,654
5.40% 03/12/98 12,500 12,368,750
5.59% 03/12/98 10,000 9,891,305
5.62% 03/13/98 15,000 14,833,742
5.59% 03/26/98 41,000 40,465,223
5.58% 03/30/98 10,500 10,356,780
5.59% 04/13/98 24,000 23,619,880
5.59% 04/22/98 39,000 38,327,802
5.55% 04/24/98 22,000 21,617,118
5.53% 06/04/98 10,000 9,763,439
5.52% 06/08/98 10,000 9,757,733
5.54% 06/09/98 19,000 18,535,102
5.51% 06/19/98 7,500 7,306,002
--------------
TOTAL AGENCY OBLIGATIONS 446,455,267
--------------
</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, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ ---------- --------- ------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER....................................... 70.50%
Agriculture............................................ 9.66%
Archer Daniels Midland (A-1+,P-1)
5.55% 01/12/98 $ 22,000 $ 21,962,692
5.55% 01/29/98 13,000 12,943,883
5.58% 02/12/98 11,000 10,928,390
5.68% 02/25/98 12,938 12,825,727
5.70% 03/06/98 10,000 9,898,667
Cargill, Inc. (A-1+, P-1)
5.51% 03/12/98 14,000 13,850,006
5.57% 03/17/98 14,500 14,331,740
5.61% 03/20/98 15,000 14,817,675
5.61% 03/23/98 5,000 4,936,887
5.65% 04/02/98 20,000 19,714,361
5.54% 04/17/98 7,000 6,885,814
Golden Peanuts Co. (A-1+,P-1)
5.63% 03/19/98 8,000 7,903,664
--------------
150,999,506
--------------
Automobiles............................................ 4.82%
Daimler-Benz North America (A-1, P-1)
5.55% 01/13/98 12,000 11,977,800
5.70% 01/20/98 9,500 9,471,421
5.53% 02/02/98 10,000 9,950,844
5.53% 02/20/98 8,000 7,938,556
5.76% 02/20/98 5,866 5,819,072
5.55% 02/23/98 15,000 14,877,437
5.64% 02/26/98 5,500 5,451,747
5.53% 02/27/98 10,000 9,912,442
--------------
75,399,319
--------------
Banks-Multi-National................................... 1.40%
J.P. Morgan & Co., Inc. (A-1+, P-1)
5.57% 01/30/98 22,000 21,901,287
--------------
Beverages.............................................. 1.46%
Coca-Cola Co. (A-1+, P-1)
5.57% 02/17/98 10,000 9,927,281
5.57% 02/18/98 13,000 12,903,453
--------------
22,830,734
--------------
</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, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ ----------- --------- -----------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Chemicals.............................................. 6.05%
Dupont (E.I.) de Nemours & Co. (A-1+, P-1)
5.68% 03/05/98 $ 11,729 $ 11,612,414
5.49% 03/18/98 17,000 16,802,970
5.53% 03/25/98 6,500 6,417,127
5.59% 05/14/98 10,000 9,793,480
5.59% 05/28/98 10,000 9,771,742
5.46% 06/02/98 10,000 9,769,467
Monsanto Co. (A-1, P-1)
5.53% 01/07/98 10,000 9,990,783
5.68% 01/26/98 10,000 9,960,556
5.50% 02/04/98 10,500 10,445,458
--------------
94,563,997
--------------
Computer Software...................................... 1.75%
IBM Credit Corp. (A-1, P-1)
5.54% 01/20/98 5,500 5,483,919
5.53% 02/10/98 5,500 5,466,205
5.55% 02/24/98 6,500 6,445,887
5.51% 03/09/98 10,000 9,897,453
--------------
27,293,464
--------------
Consumer Products...................................... 1.85%
Proctor & Gamble Co. (A-1+, P-1)
5.50% 01/23/98 6,600 6,577,817
5.55% 02/25/98 11,500 11,402,490
5.72% 03/10/98 5,600 5,539,495
5.58% 03/31/98 5,500 5,424,127
--------------
28,943,929
--------------
Entertainment.......................................... 1.83%
Walt Disney Company Inc. (A-1, P-1)
5.50% 03/02/98 10,000 9,908,333
5.61% 03/16/98 10,500 10,378,918
5.55% 03/23/98 8,500 8,393,856
--------------
28,943,929
--------------
</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, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ --------- ------------ ---------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Finance................................................ 19.25%
American Express Credit Corp. (A-1, P-1)
5.55% 04/30/98 $ 14,500 $ 14,233,985
5.55% 05/20/98 5,500 5,382,140
Ford Motor Credit Co. (A-1, P-1)
6.05% 01/02/98 10,000 9,998,319
5.57% 02/05/98 14,000 13,924,186
5.50% 02/17/98 9,000 8,935,375
5.48% 02/24/98 12,000 11,901,360
5.55% 02/24/98 4,000 3,966,700
5.49% 02/25/98 10,000 9,916,125
5.51% 03/17/98 10,000 9,885,208
5.50% 04/16/98 1,500 1,475,938
General Electric Capital Corp. (A-1+, P-1)
6.08% 01/09/98 19,000 18,974,329
5.54% 01/15/98 1,000 997,846
5.57% 02/06/98 15,000 14,916,450
5.55% 02/12/98 10,500 10,432,013
5.55% 03/11/98 10,000 9,893,625
5.53% 03/16/98 9,500 9,392,011
5.53% 04/03/98 10,000 9,858,678
J.C. Penney Funding Corp. (A-1, P-1)
5.59% 01/05/98 14,500 14,490,994
5.59% 01/27/98 30,000 29,878,883
5.58% 02/18/98 10,000 9,925,600
Met Life Funding Corp. (A-1+, P-1)
5.59% 01/08/98 12,252 12,238,683
5.71% 03/24/98 16,237 16,025,820
Pitney Bowes Credit Corp. (A-1+, P-1)
5.50% 01/06/98 10,000 9,992,361
USAA Capital Corp. (A-1+, P-1)
5.68% 01/22/98 6,500 6,478,463
5.55% 02/03/98 3,000 2,984,737
5.67% 02/04/98 10,000 9,946,450
5.63% 02/13/98 25,000 24,831,882
--------------
300,878,161
--------------
</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, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ ----------- --------- ------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Financial Services..................................... 9.48%
Bear Stearns Companies, Inc. (A-1, P-1)
5.58% 01/14/98 $ 10,000 $ 9,979,850
5.62% 02/06/98 14,000 13,921,320
5.55% 02/11/98 13,000 12,917,829
5.69% 03/03/98 14,000 13,865,021
5.56% 03/04/98 5,000 4,952,122
5.69% 03/20/98 20,000 19,753,433
Merrill Lynch & Co., Inc. (A-1+, P-1)
5.62% 01/08/98 10,000 9,989,072
5.57% 01/28/98 3,500 3,485,379
5.54% 02/19/98 16,000 15,879,351
5.53% 02/27/98 8,500 8,425,575
5.62% 02/27/98 10,000 9,911,017
5.75% 03/13/98 10,500 10,380,927
5.51% 03/26/98 5,000 4,935,717
5.66% 05/15/98 10,000 9,789,322
--------------
148,185,935
--------------
Food................................................... 3.18%
Campbell Soup Co. (A-1+, P-1)
5.46% 02/26/98 25,000 24,787,667
5.50% 03/04/98 4,600 4,556,428
5.62% 04/09/98 10,500 10,339,361
McCormick and Co., Inc. (A-1, P-1)
5.53% 01/12/98 10,000 9,983,103
--------------
49,666,559
--------------
Food/Retail............................................ 4.78%
Winn Dixie Stores, Inc. (A-1, P-1)
5.58% 01/13/98 15,000 14,972,100
5.58% 01/27/98 10,000 9,959,700
5.68% 02/03/98 30,000 29,843,800
5.67% 02/10/98 8,000 7,949,600
5.70% 02/10/98 12,000 11,924,000
--------------
74,649,200
--------------
</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, 1997
<TABLE>
<CAPTION>
PERCENTAGE PAR
OF PORTFOLIO MATURITY (000) VALUE
------------ ----------- --------- --------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Pharmaceutical......................................... 2.28%
Schering-Plough Corporation (A-1+, P-1)
5.65% 02/24/98 $ 10,000 $ 9,915,250
5.72% 03/19/98 6,000 5,926,593
Warner-Lambert Company (A-1+, P-1)
5.50% 02/23/98 20,000 19,838,056
---------------
35,679,899
---------------
Publishing............................................. 2.71%
McGraw-Hill, Inc. (A-1, P-1)
5.57% 01/30/98 10,830 10,781,406
5.67% 03/18/98 12,000 11,856,360
5.67% 03/19/98 20,000 19,757,450
---------------
42,395,216
---------------
TOTAL COMMERCIAL PAPER 1,102,068,313
---------------
VARIABLE RATE OBLIGATIONS.............................. 1.00%
Federal Home Loan Bank
6.00% 03/29/98 3,500 3,499,485
Federal National Mortgage Association
5.51% 03/14/98 5,000 5,000,000
Student Loan Marketing Association
5.61% 01/06/98 5,000 4,999,596
5.64% 01/06/98 2,225 2,222,661
---------------
TOTAL VARIABLE RATE OBLIGATIONS 15,721,742
---------------
TOTAL INVESTMENTS...................................... 100.06% 1,564,245,322
(Amortized Cost $1,564,245,322)*
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS......... (-0.06%) (957,174)
----- ---------------
NET ASSETS............................................. 100.00% $ 1,563,288,148
====== ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE
(1,563,288,148 / 1,563,302,506) $ 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, 1997
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Interest...................................................................... $ 79,769,295
--------------
EXPENSES
Advisory fees................................................................. 5,228,609
Administration fees........................................................... 539,795
Distribution fees............................................................. 2,844,920
Directors' fees............................................................... 43,601
Custodian fees................................................................ 156,688
Transfer agent fees........................................................... 1,397,967
Legal fees.................................................................... 65,584
Audit fees.................................................................... 19,328
SEC registration fees......................................................... 96,971
Blue sky registration fees.................................................... 66,410
Insurance expense............................................................. 16,992
Printing and postage fees..................................................... 204,747
Miscellaneous fees............................................................ $ 10,238
--------------
TOTAL EXPENSES............................................................ 10,691,850
Waiver of advisory fees....................................................... $ (211,230)
--------------
NET EXPENSES.............................................................. 10,480,620
--------------
NET INVESTMENT INCOME......................................................... 69,288,675
NET REALIZED LOSS ON INVESTMENTS.............................................. (18)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $ 69,288,657
==============
</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, 1997 DECEMBER 31, 1996
----------------- -----------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income...................................... $ 69,288,675 54,422,671
Net realized loss on investments........................... (18) $ (139)
----------------- ---------------
Net increase in net assets resulting from operations....... 69,288,657 54,422,532
----------------- ---------------
Dividends to shareholders from:
Net investment income ($.0485 and $.0468 per share,
respectively)........................................ (69,288,675) (54,422,671)
----------------- ---------------
Total dividends to shareholders.............................. (69,288,675) (54,422,671)
----------------- ---------------
Capital stock transactions:
Proceeds from sale of capital shares....................... 6,757,471,254 5,268,446,578
Value of shares issued in reinvestment of dividends........ 68,375,264 51,941,658
Cost of shares repurchased................................. (6,496,879,767) (5,095,436,397)
----------------- ---------------
Increase in net assets derived from capital stock
transactions......................................... 328,966,751 224,951,839
----------------- ---------------
Total increase in assets..................................... 328,966,733 224,951,700
----------------- ---------------
Net Assets:
Beginning of year.......................................... 1,234,321,415 1,009,369,715
----------------- ---------------
End of year................................................ $ 1,563,288,148 $ 1,234,321,415
================= ===============
</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 year)
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995 1994 1993
----------- ----------- ---------- --------- ---------
<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 ...................... .0485 .0468 .0515 .0343 .0247
Net Realized Gain on Investments ........... -- -- -- -- --
----------- ----------- ---------- --------- ---------
Total From Investment Operations ....... .0485 .0468 .0515 .0343 .0247
----------- ----------- ---------- --------- ---------
LESS DISTRIBUTIONS:
Dividend to Shareholders from Net Investment
Income ................................. (.0485) (.0468) (.0515) (.0343) (.0247)
Dividend to Shareholders from Net Realized
Gains .................................. -- -- -- -- --
----------- ----------- ---------- --------- ---------
Total Distributions .................... (.0485) (.0468) (.0515) (.0343) (.0247)
----------- ----------- ---------- --------- ---------
Net Asset Value, End of Year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== ========== ========= =========
TOTAL RETURN .................................. 4.96% 4.78% 5.28% 3.48% 2.50%
RATIO / SUPPLEMENT DATA:
Net Assets, End of Year (in thousands) ..... $ 1,563,288 $ 1,234,321 $1,009,370 $ 677,177 $719,337
Ratio of Expenses to Average Daily Net
Assets ........................... .74%(a) .77%(a) .80%(a) .80%(a) .81%(a)
Ratio of Net Investment Income to Average
Daily Net Assets ................. 4.87%(a) 4.68%(a) 5.15%(a) 3.39%(a) 2.47%(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 .75%, .78%,
.81%, .83%, and .84% respectively, and the Ratio of Net Investment Income to
Average Daily Net Assets would have been 4.85%, 4.67%, 5.14%, 3.36%, and
2.44% respectively.
See accompanying notes to financial statements.
9
<PAGE> 11
THE BRADFORD FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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.
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.
See accompanying notes to financial statements.
9
<PAGE> 12
THE BRADFORED FUNDS, INC.
THE BRADFORD MONEY FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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.
NOTE 2--INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND TRANSFER AGENCY
AGREEMENTS (CONTINUED)
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, 1997, such waiver amounted to $211,230.
Advisory fees, before such waiver amounted to $5,228,609 for the year ended
December 31, 1997.
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 $201,543 for the period from August 18, 1997 to December 31, 1997.
For the period January 1, 1997 through August 17, 1997, PFPC Inc. provided
administration services to the Fund and for such services received fees in the
amount of $338,252.
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 $2,844,920 for the year ended December 31, 1997.
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 $1,397,967 for the year ended December 31, 1997.
10
<PAGE> 13
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
NOTE 3--CAPITAL STOCK
Transactions in capital stock of the Fund were as follows:
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
------------------ ------------------
<S> <C> <C>
Shares sold..................................................... 6,757,471,254 5,268,446,578
Shares issued in connection with reinvestment of dividends
from net investment income................................... 68,375,264 51,941,658
Shares redeemed................................................. (6,496,879,767) (5,095,436,397)
------------------ -------------------
Net increase.................................................... 328,966,751 224,951,839
================== ===================
NOTE 4--NET ASSETS
Net assets consisted of the following:
DECEMBER 31, 1997 DECEMBER 31, 1996
----------------- -----------------
Capital stock, at par........................................... $ 1,563,302 $ 1,234,336
Paid-in capital in excess of par................................ 1,561,739,204 1,233,101,418
Net accumulated realized capital loss........................... (14,358) (14,339)
----------------- ----------------
$ 1,563,288,148 $ 1,234,321,415
================== ================
</TABLE>
11
<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, 1997 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 securities owned as of
December 31, 1997 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, 1997, 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 16, 1998
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
Micheal 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
THE BRADFORD MONEY FUND
Annual Report to Shareholders
December 31, 1997
J.C. Bradford & Co.
MEMBERS NEW YORK STOCK EXCHANGE
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