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Previous: HORIZONTAL VENTURES INC, S-4/A, 1999-02-18 |
Next: FIRST INVESTORS SERIES FUND, 497, 1999-02-18 |
<PAGE>
THE BRADFORD FUNDS, INC.
THE BRADFORD MONEY FUND
600 Fifth Avenue
New York, NY 10020
(888) 226-5504
January 31, 1999
Dear Shareholder:
This annual report covers the period from January 1, 1998 to December 31,
1998.
The Fund began the current year with assets of $1,563.3 million and ended
the year with $2,037.5 million. In addition, the number of shareholders
increased from 130,595 to 143,383.
Reflective of the overall trend in short-term interest rates, the Fund's
yield went from 4.94% on December 31, 1997, to 4.51% on December 31, 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>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS.................................... 61.36%
Federal Farm Credit Bank
5.50% 02/01/99 $19,600 $ 19,597,635
Federal Home Loan Bank
4.87% 02/18/99 17,000 16,889,409
4.97% 02/24/99 11,000 10,917,995
5.57% 03/09/99 10,000 10,000,267
5.61% 04/22/99 10,000 9,998,574
5.53% 07/15/99 10,000 9,996,615
Federal Home Loan Mortgage Corporation
5.02% 01/12/99 25,000 24,961,653
4.83% 02/01/99 15,000 14,937,612
4.96% 02/02/99 10,000 9,955,911
5.17% 02/02/99 8,000 7,963,236
4.87% 02/03/99 12,000 11,946,430
4.96% 02/05/99 5,500 5,473,478
4.92% 02/08/99 15,000 14,922,100
4.93% 02/09/99 19,000 18,898,524
5.04% 02/10/99 25,000 24,860,000
5.07% 02/11/99 15,000 14,913,388
4.94% 02/17/99 33,000 32,787,168
5.17% 02/19/99 13,000 12,908,520
4.91% 02/22/99 10,000 9,929,078
5.04% 02/22/99 10,000 9,927,200
4.88% 02/25/99 10,000 9,925,444
5.08% 02/25/99 19,000 18,852,539
4.92% 02/26/99 9,000 8,931,120
5.07% 02/26/99 12,000 11,905,323
4.91% 03/02/99 10,000 9,918,167
4.89% 03/05/99 10,000 9,914,425
4.87% 03/08/99 20,000 19,821,433
4.84% 03/08/99 9,964 9,875,586
4.82% 03/12/99 4,000 3,962,511
4.85% 03/12/99 9,000 8,915,125
5.00% 03/12/99 18,000 17,825,000
4.57% 03/15/99 10,000 9,907,331
4.83% 03/15/99 11,000 10,892,264
4.97% 03/15/99 10,223 10,129,871
4.99% 03/17/99 10,000 9,896,042
5.10% 03/18/99 5,000 4,946,167
4.84% 03/18/99 9,000 8,908,040
4.99% 03/19/99 22,000 21,765,193
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (CONTINUED)
Federal Home Loan Mortgage Corporation - (Continued)
5.10% 03/19/99 $10,000 $ 9,890,917
5.10% 03/24/99 20,000 19,767,667
5.01% 03/25/99 10,000 9,884,492
4.92% 03/26/99 7,000 6,919,640
4.83% 03/26/99 19,000 18,785,870
4.80% 04/06/99 20,000 19,746,403
4.87% 04/09/99 30,000 29,602,185
4.88% 04/09/99 8,000 7,893,724
4.90% 04/09/99 20,000 19,733,222
4.91% 04/09/99 15,000 14,799,508
4.89% 04/13/99 10,000 9,861,450
4.85% 04/13/99 10,000 9,862,583
4.81% 05/18/99 10,000 9,816,953
Federal National Mortgage Association
4.80% 02/02/99 20,000 19,914,667
5.05% 02/05/99 17,000 16,916,535
5.23% 02/05/99 6,185 6,153,551
5.22% 02/05/99 25,000 24,873,125
5.09% 02/08/99 10,000 9,997,312
5.33% 02/08/99 12,332 12,262,619
5.04% 02/09/99 15,000 14,918,100
5.32% 02/11/99 21,500 21,369,587
5.50% 02/12/99 25,000 25,000,550
5.16% 02/16/99 9,500 9,437,327
5.08% 02/18/99 29,000 28,803,573
5.36% 02/19/99 20,000 20,003,646
4.96% 03/01/99 12,000 11,902,453
5.00% 03/01/99 10,000 9,918,055
5.02% 03/01/99 13,000 12,893,025
4.88% 03/02/99 15,000 14,878,000
4.99% 03/03/99 14,000 13,881,626
5.19% 03/04/99 24,000 23,785,480
4.88% 03/09/99 10,000 9,909,178
4.98% 03/10/99 18,000 17,830,680
4.94% 03/15/99 10,661 10,554,206
5.53% 03/16/99 10,000 10,007,731
4.96% 03/17/99 23,000 22,762,333
4.60% 03/18/99 14,000 13,864,044
5.84% 03/29/99 10,000 10,010,121
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage Association - (Continued)
4.87% 04/01/99 $18,000 $ 17,780,850
4.93% 04/01/99 10,000 9,876,750
4.90% 04/02/99 11,510 11,367,436
4.92% 04/02/99 6,420 6,340,157
4.90% 04/05/99 11,000 10,859,261
5.27% 04/08/99 10,000 9,858,003
5.27% 04/09/99 10,000 9,856,539
4.86% 04/15/99 18,000 17,747,176
4.87% 04/15/99 11,000 10,845,242
4.84% 04/29/99 14,000 13,777,898
4.77% 05/03/99 10,000 9,838,350
4.81% 05/06/99 13,000 12,782,476
5.57% 05/07/99 12,855 12,849,857
5.56% 05/14/99 20,000 19,990,526
---------------
TOTAL AGENCY OBLIGATIONS 1,250,259,033
---------------
COMMERCIAL PAPER...................................... 36.34%
Agriculture........................................... 0.84%
Archer Daniels Midland Co. (A-1+, P-1)
4.92% 02/24/99 10,000 9,926,200
Cargill, Inc. (A-1+, P-1)
4.95% 04/20/99 7,300 7,190,591
---------------
17,116,791
---------------
Automobiles........................................... 0.29%
Daimler-Benz North America (A-1, P-1)
5.15% 03/05/99 6,000 5,945,925
---------------
Beverages............................................. 2.35%
Coca-Cola Co. (A-1+, P-1)
4.89% 01/26/99 20,000 19,932,084
Pepsico Inc. (A-1, P-1)
5.25% 01/22/99 12,000 11,963,250
5.27% 01/26/99 8,000 7,970,722
5.27% 01/27/99 8,000 7,969,551
---------------
47,835,607
---------------
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Broker/Dealer..................................... 1.34%
Merrill Lynch & Co., Inc. (A-1+, P-1)
5.47% 01/15/99 $ 4,000 $ 3,991,491
5.51% 01/29/99 15,500 15,433,574
5.50% 02/26/99 8,000 7,931,556
---------------
27,356,621
---------------
Chemicals......................................... 3.53%
Dupont (E.I.) de Nemours & Co. (A-1+, P-1)
5.11% 01/11/99 11,000 10,984,386
5.10% 01/13/99 15,000 14,974,500
5.11% 01/14/99 11,000 10,979,702
5.25% 01/25/99 10,000 9,965,000
4.96% 01/28/99 10,000 9,962,800
4.80% 04/14/99 15,272 15,062,265
---------------
71,928,653
---------------
Consumer ProductS................................. 4.57%
Proctor & Gamble Co. (A-1+, P-1)
5.18% 01/04/99 20,000 19,991,367
5.02% 01/11/99 4,250 4,244,074
5.18% 01/12/99 10,000 9,984,172
5.20% 01/13/99 20,000 19,965,333
5.30% 01/19/99 15,000 14,960,250
5.30% 01/26/99 9,000 8,966,875
5.25% 01/27/99 15,000 14,943,125
---------------
93,055,196
---------------
Entertainment..................................... 1.51%
Walt Disney Company Inc. (A-1, P-1)
5.03% 02/05/99 4,000 3,980,439
5.25% 02/12/99 17,000 16,895,875
5.00% 02/25/99 10,000 9,923,611
---------------
30,799,925
---------------
Finance........................................... 9.58%
Ford Motor Credit Company (A-1, P-1)
5.95% 01/05/99 10,000 9,993,389
5.51% 01/20/99 15,000 14,956,379
5.45% 01/21/99 5,000 4,984,861
5.40% 01/25/99 10,000 9,964,000
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Finance - (Continued)
Ford Motor Credit Company - (Continued)
5.08% 01/28/99 $13,000 $ 12,950,470
5.04% 03/23/99 10,000 9,886,600
4.81% 04/07/99 15,500 15,301,186
General Electric Capital Corporation (A-1+, P-1)
5.10% 01/14/99 5,000 4,990,792
5.48% 02/10/99 3,500 3,478,689
4.92% 03/18/99 8,100 8,015,868
4.91% 04/26/99 10,000 9,843,153
5.06% 04/27/99 17,000 16,722,824
5.06% 04/28/99 17,000 16,720,435
4.92% 05/10/99 14,000 13,753,180
4.92% 05/11/99 14,000 13,751,267
USAA Capital Corp. (A-1+, P-1)
5.45% 01/27/99 10,000 9,960,639
5.27% 01/29/99 20,000 19,918,022
---------------
195,191,754
---------------
Food.............................................. 1.56%
Campbell Soup Co. (A-1+, P-1)
5.43% 02/03/99 23,000 22,885,517
Hershey Foods Corp. (A-1+, P-1)
5.35% 01/25/99 9,000 8,967,900
---------------
31,853,417
---------------
Health-Care....................................... 4.84%
Johnson & Johnson (A-1+, P-1)
5.00% 02/16/99 20,000 19,872,222
4.93% 02/22/99 18,000 17,871,820
4.93% 02/23/99 20,000 19,854,839
4.95% 03/03/99 5,000 4,958,063
4.90% 03/03/99 8,940 8,865,773
5.05% 03/03/99 5,000 4,957,215
4.98% 04/05/99 10,612 10,474,009
4.83% 06/28/99 12,000 11,713,420
---------------
98,567,361
---------------
Publishing........................................ 0.54%
McGraw-Hill, Inc. (A-1, P-1)
5.34% 02/04/99 10,950 10,894,775
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
Technology........................................ 4.90%
Lucent Technologies (A-1, P-1)
5.20% 01/05/99 9,500 9,494,511
5.20% 01/07/99 17,000 16,985,267
4.90% 01/08/99 19,000 18,981,897
5.25% 01/14/99 20,000 19,962,083
4.90% 01/15/99 12,500 12,476,180
5.25% 01/20/99 11,000 10,969,521
5.25% 01/21/99 11,000 10,967,917
---------------
99,837,376
---------------
Telecommunications................................ 0.49%
Bellsouth Telecommunications (A-1+, P-1)
5.27% 01/06/99 10,000 9,992,681
---------------
TOTAL COMMERCIAL PAPER 740,376,082
---------------
VARIABLE RATE DEMAND NOTES........................ 1.10%
Bear Stearns Companies, Inc. (A-1, P-1)
4.64% 03/09/99 10,170 10,165,706
Morgan Stanley Dean Witter & Co. (A+, A-1)
4.30% 03/09/99 5,000 4,996,640
4.41% 03/22/99 7,250 7,244,983
---------------
TOTAL VARIABLE RATE DEMAND NOTES 22,407,329
---------------
VARIABLE RATE AGENCY OBLIGATIONS.................. 0.11%
Student Loan Marketing Association
4.85% 01/05/99 2,225 2,224,138
---------------
TOTAL VARIABLE RATE OBLIGATIONS 2,224,138
---------------
</TABLE>
See accompanying notes to financial statements
6
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Net Assets - (Continued)
December 31, 1998
Percentage Par
of Portfolio Maturity (000) Value
------------ -------- --------- ---------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS....................... 0.98%
U.S. Treasury Notes
5.00% 01/31/99 $10,000 $ 9,997,187
5.87% 03/31/99 10,000 10,008,514
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS 20,005,701
---------------
TOTAL INVESTMENTS................................. 99.89% 2,035,272,283
(Amortized Cost $2,035,272,283)*
Cash and Other Assets, Net of Liabilities......... 0.11% 2,236,428
------ ---------------
Net Assets........................................ 100.00% $2,037,508,711
====== ===============
Net Asset Value, Offering and Redemption Price
Per Share ($2,037,508,711 / 2,037,523,743)...... $1.00
===============
</TABLE>
__________________
* Also cost for Federal Income Tax purposes.
See accompanying notes to financial statements
7
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statement of Operations
For the Year Ended December 31, 1998
INVESTMENT INCOME
<S> <C>
Interest.............................................................................................. $101,968,793
------------
EXPENSES
Advisory fees......................................................................................... 6,715,668
Administration fees................................................................................... 569,735
Distribution fees..................................................................................... 3,694,668
Directors' fees....................................................................................... 58,353
Custodian fees........................................................................................ 177,290
Transfer agent fees................................................................................... 1,589,637
Legal................................................................................................. 54,300
Audit................................................................................................. 32,354
SEC registration fees................................................................................. 131,836
Blue sky registration fees............................................................................ 114,309
Insurance............................................................................................. 24,231
Printing and postage.................................................................................. 241,140
Miscellaneous......................................................................................... 36,324
------------
TOTAL EXPENSES..................................................................................... 13,439,845
Waiver of advisory fees............................................................................... (423,905)
------------
NET EXPENSES....................................................................................... 13,015,940
------------
NET INVESTMENT INCOME.................................................................................... 88,952,853
NET REALIZED LOSS ON INVESTMENTS......................................................................... (674)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................................... $ 88,952,179
============
</TABLE>
See accompanying notes to financial statements
8
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Statements of Changes in Net Assets
For the Year For the Year
Ended Ended
December 31, 1998 December 31, 1997
----------------- -----------------
Increase in Net Assets:
Operations:
<S> <C> <C>
Net investment income................................................ $ 88,952,853 $ 69,288,675
Net realized loss on investments..................................... (674) (18)
-------------- ---------------
Net increase in net assets resulting from operations................. 88,952,179 69,288,657
-------------- ---------------
Dividends to shareholders from:
Net investment income ($.0482 and $.0485 per share,
respectively)...................................................... (88,952,853) (69,288,675)
-------------- ---------------
Total dividends to shareholders......................................... (88,952,853) (69,288,675)
-------------- ---------------
Capital Stock Transactions:
Proceeds from sale of capital shares................................. 8,663,466,410 6,757,471,254
Value of shares issued in reinvestment of dividends.................. 85,552,716 68,375,264
Cost of shares repurchased........................................... (8,274,797,889) (6,496,879,767)
-------------- ---------------
Increase in net assets derived from capital stock
transactions....................................................... 474,221,237 328,966,751
-------------- ---------------
Total increase in assets................................................ 474,220,563 328,966,733
-------------- ---------------
Net Assets:
Beginning of year....................................................... 1,563,288,148 1,234,321,415
-------------- ---------------
End of year............................................................. $2,037,508,711 $ 1,563,288,148
============== ===============
</TABLE>
See accompanying notes to financial statements
9
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Financial Highlights
(for a share outstanding through each year)
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,
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
<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........................ .0482 .0485 .0468 .0515 .0343
Net Realized Gain on Investments............. -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total From Investment Operations........... .0482 .0485 .0468 .0515 .0343
---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividend to Shareholders from Net
Investment Income.......................... (.0482) (.0485) (.0468) (.0515) (.0343)
Dividend to Shareholders from Net Realized
Gain....................................... -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total Distributions...................... (.0482) (.0485) (.0468) (.0515) (.0343)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return................................... 4.93% 4.96% 4.78% 5.28% 3.48%
Ratio/Supplement Data:
Net Assets, End of Year (in thousands)....... $2,037,509 $1,563,288 $1,234,321 $1,009,370 $677,177
Ratio of Expenses to Average Daily Net
Assets................................... .70%(a) .74%(a) .77%(a) .80%(a) .80%(a)
Ratio of Net Investment Income to
Average Daily Net Assets................. 4.82%(a) 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 .73%, .75%,
.78%, .81%, and .83%, respectively, and the Ratio of Net Investment Income
to Average Daily Net Assets would have been 4.79%, 4.85%, 4.67%, 5.14%, and
3.36%, respectively.
See accompanying notes to financial statements
10
<PAGE>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Notes To Financial Statements
December 31, 1998
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.
11
<PAGE>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Notes To Financial Statements - (Continued)
December 31, 1998
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 and .29% of the Fund's average daily net assets in excess of $2 billion.
For the year ended December 31, 1998, such waiver amounted to $423,905. Advisory
fees, before such waiver amounted to $6,715,668 for the year ended December 31,
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 $569,735 for the year ended December 31, 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 $3,694,668 for the year ended December 31, 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 $1,589,637 for the year ended December 31, 1998.
12
<PAGE>
<TABLE>
<CAPTION>
THE BRADFORD FUNDS, INC.
The Bradford Money Fund
Notes To Financial Statements - (Concluded)
December 31, 1998
NOTE 3--CAPITAL STOCK
Transactions in capital stock of the Fund were as follows:
For the Year Ended For the Year Ended
December 31, 1998 December 31, 1997
----------------- -----------------
<S> <C> <C>
Shares sold............................................................... 8,663,466,410 6,757,471,254
Shares issued in connection with reinvestment of dividends from
net investment income................................................... 85,552,716 68,375,264
Shares redeemed........................................................... (8,274,797,889) (6,496,879,767)
-------------- --------------
Net increase.............................................................. 474,221,237 328,966,751
============== ==============
<CAPTION>
NOTE 4--NET ASSETS
Net assets consisted of the following:
December 31, 1998 December 31, 1997
----------------- -----------------
<S> <C> <C>
Capital stock, at par..................................................... $ 2,037,524 $ 1,563,302
Paid-in capital in excess of par.......................................... 2,035,486,219 1,561,739,204
Net accumulated realized capital loss..................................... (15,032) (14,358)
-------------- --------------
$2,037,508,711 $1,563,288,148
============== ==============
</TABLE>
13
<PAGE>
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, 1998 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, 1998, 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, 1998, 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, 1999
14
<PAGE>
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF
THE FUND. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE
FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS, WHICH INCLUDES
DETAILS REGARDING THE FUND'S OBJECTIVES, POLICIES, EXPENSES AND OTHER
INFORMATION. AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ANY
PERFORMANCE INFORMATION QUOTED REPRESENTS PAST PERFORMANCE WHICH, OF COURSE, IS
NO GUARANTEE OF FUTURE PERFORMANCE.
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
<PAGE>
THE
BRADFORD
MONEY
FUND
Annual Report to Shareholders
December 31, 1998
[GRAPHIC OMITTED]
Members New York Stock Exchange
<PAGE>
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