UNITED CAPITAL INVESTMENT CORP.
FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
FINANCIAL STATEMENTS
Table of Contents Page
Report of Independent Certified Accountants . . . 1
Statements of Assets and Liabilities of United
Capital Investment Corp. as of December 31, 1995
and 1994 . . . . . . . . . . . . . . . . . . . . . 3
Statements of Operations for the years ended
December 31, 1995 and 1994 . . . . . . . . . 5
Statements of Cash Flows for the years ended
December 31, 1995 and 1994 . . . . . . . . . 6
Statements of Stockholders' Equity for the years
ended December 31, 1995, 1994 and 1993 . . . . . . 7
Notes to the Financial Statements . . . . . . . . 8
Schedule of Portfolio Investments . . . . . . . . 14
Selected Per Share Data and Ratios . . . . . . . 15
Board of Directors
United Capital Investment Corp.
Independent Accountant's Report
We have audited the accompanying statements of assets and
liabilities of United Capital Investment Corp. (the "Company"),
including the schedule of portfolio investments, as of December
31, 1995 and 1994 and the related statements of operations, cash
flows and stockholders' equity for the years then ended. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit 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 are free of material misstatement. An
audit included examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. 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 audit provides a reasonable basis for our opinion.
As described in Note 2, these financial statements were
prepared in conformity with the accounting practices prescribed
by the Small Business Administration, which provides for specific
allocations of certain types of income to specific capital
accounts. As explained in Note 2, the financial statements
include securities valued at $3,533,133 and $3,816,297 (164% and
184% of the net assets), whose values have been estimated by the
Board of Directors in the absence of readily ascertainable
market values. We have reviewed the procedures used by the Board
of Directors in arriving at its estimate of value of such
securities and have inspected underlying documentation, and, in
the circumstances, we believe the procedures are reasonable and
the documentation appropriate. However, because of the inherent
uncertainty of valuation, those estimated values may differ
significantly from values that would have been used had a ready
market for the securities existed, and the differences could be
material.
In our opinion, the financial statements referred to above,
present fairly, in all material respects, the Company's financial
position as of December 31, 1995 and 1994 and the results of its
operation and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
February 22, 1996
Certified Public Accountants
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF ASSETS AND LIABILITIES
ASSETS
December 31,
1995 1994
<S> <C> <C>
Loans Receivable-Long Term (Note 2) $ 3,597,166 $3,913,468
Less: Unrealized Depreciation (64,033) (97,171)
_________ _________
3,533,133 3,816,297
Less: Current Maturities 529,970 575,194
--------- --------
Total Loans Receivable - Net of
Current Maturities 3,003,163 3,241,103
--------- ---------
Current Assets:
Cash 1,350,377 469,177
Accrued Interest 30,636 36,845
Current Maturities - Loans
Receivable (Note 2) 529,970 575,194
Other Assets 11,704 10,831
--------- ---------
Current Assets 1,922,687 1,092,047
--------- ---------
Total Assets $4,925,850 $4,333,150
========= =========
See Notes to the Financial Statements
-3-
</TABLE>
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF ASSETS AND LIABILITIES
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31,
1995 1994
<S> <C> <C>
Long Term Debt:
Debenture Payable to SBA (Note 4)
Class B, 4% Cumulative, 15 Year
Redeemable $1,400,000 $1,400,000
Preferred Stock (Note 5) 900,000 400,000
--------- ---------
Total Long Term Debt 2,300,000 1,800,000
--------- ---------
Current Liabilities
Loans Payable -
Credit Line (Note 3) 350,000 350,000
Accrued Interest 22,869 22,677
Other Current Liabilities 13,368 25,031
Accrued SBA Dividends 84,667 52,000
--------- ---------
Total Current Liabilities 470,904 449,708
--------- ---------
Total Liabilities 2,770,904 2,249,708
--------- ---------
Commitments and Contingencies - -
Stockholders' Equity :(Notes 5, 6 and 8)
Class A, 3% Cumulative Preferred
Stock, $1,000 Par Value;
1,000 Shares Authorized; 1,000
Shares Issued and Outstanding,
Respectively - -
Class B, 4% Cumulative, 15 Year
Redeemable Preferred Stock,
$1,000 Par Value; 3,000 Shares
Authorized: 400 Shares
Issued and Outstanding (See Long
Term Debt and Note 5) - -
Restricted Capital 351,888 479,436
Common Stock, $.01 Par Value; 300,000
Shares Authorized: 199,000 Shares Issued
and Outstanding 1900 1900
Additional Paid in Capital 1,714,605 1,587,057
Retained Earnings 86,463 14,959
--------- ---------
Total Stockholders' Equity 2,154,946 2,083,442
--------- ---------
Total Liabilities and
Stockholders' Equity 4,925,850 4,333,150
========= =========
See Notes to the Financial Statement
-4-
</TABLE>
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF OPERATIONS
Year Ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Revenue:
Interest Earned on Outstanding
Receivables $412,245 $408,643 $439,770
Interest Income on Idle Funds 52,879 23,446 33,311
Other Income 3,560 15,724 21,720
-------- -------- --------
Total Revenue 468,684 447,813 494,801
-------- -------- --------
Expenses:
Interest 111,288 141,917 187,119
Officers Salaries 140,004 140,004 139,980
Professional Fees 31,650 42,774 34,749
Insurance Expense 19,523 18,564 19,001
Pension Expense 14,000 14,000 14,000
Payroll and Other Taxes 9,582 10,687 10,671
Depreciation and Amortization 1,598 954 -
Other Operating Expenses 36,147 45,517 48,840
-------- -------- --------
Total Expenses 363,792 414,417 454,360
-------- -------- --------
Net Investment Income 104,892 33,396 40,441
Unrealized Depreciation in
Value of Investments - 18,330 22,735
-------- -------- --------
Net Income Before Taxes 104,892 15,006 17,706
Provision for Taxes 721 2,288 2,806
-------- -------- --------
Net Income $104,171 $ 12,778 $ 14,900
======== ======== ========
Earnings (Loss)
Per Common Share (Note 2) $ .36 $ (.02) $ (.11)
======== ======== ========
Actual Dividends Paid Per
Common Share $ - $ - $ -
- -
======== ======== ========
See Notes to the Financial Statements
-5-
</TABLE>
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF CASH FLOWS
<S> <C> <C> <C>
Year Ended December 31,
1995 1994 1993
Cash Flow from Operating Activities:
Net Income $104,171 $ 12,778 $ 14,900
Depreciation and Amortization 1,598 954 -
Provision and Write-off ofLoans
Receivable - 18,330 22,735
Decrease (Increase) in Accrued
Interest 6,209 (7,088) 34,991
Decrease (Increase) in Other Assets (2,471) (4,401) 9,530
(Decrease) Increase in Accrued (11,471) (29,234) 3,953
Dividends Paid and Accrued
to the SBA (32,667) (16,000) (36,000)
--------- --------- --------
Net Cash Provided (Used) by Operating
Activities 65,369 (24,661) 50,109
--------- --------- --------
Cash Flow from Investing Activities:
Loans Receivable Originated (877,500) (835,045) (1,479,685)
)
Repayment of Loans Receivable 1,160,664 837,519 1,810,073
---------- --------- -----------
Net Cash Provided (Used) From Investing
Activities 283,164 2,474 330,388
---------- --------- -----------
Cash Flow From Financing Activities:
Amortization of Restricted Capital (127,548) (127,549) (21,258)
Increase in Additional Paid in
Capital 127,548 127,549 21,258
Repayment of Subordinated Debentures - (1,000,000) -
Repurchase of 3% Preferred Stock - - (1,000,000)
Gain on Repurchase - - 628,243
(Decrease) Increase in Line of
Credit - - 350,000
Accrued SBA Dividends 32,667 16,000 36,000
Sale of Class B, 4% Preferred Stock 500,000 - -
--------- --------- ---------
Net Cash (Used) Provided by Financing
Activities 532,667 (984,000) 14,243
--------- ---------- --------
Net Increase (Decrease) in Cash 881,200 (1,006,187) 394,740
Cash Balance - Beginning of Year 469,177 1,475,364 1,080,624
--------- ---------- ---------
Cash Balance - End of Period $1,350,377 $ 469,177$1,475,364
========== ========== =========
Supplemental Disclosures of Cash Flow
Information
Cash Paid During the Year For:
Interest $ 111,096 $ 166,254$ 186,355
Taxes $ 721 $ 2,288$ 2,806
========= ========= =========
See Notes to the Financial Statement
-6-
</TABLE>
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF STOCKHOLDERS' EQUITY
<S> <C> <C> <C>
Year Ended December 31,
1995 1994 1993
Class A, 3% Cumulative Preferred Stock,
$1,000 Par Value,
1,000 Shares Authorized; 1,000 Shares
Issued and Outstanding $ - $ - $1,000,000
Repurchase of 3% Cumulative Preferred
Stock - - (1,000,000)
------ ------ ---------
Balance - End of Period - - -
------ ------ ---------
Class B, 4% Cumulative, 15 Year
Redeemable Preferred Stock,
$1,000 Par Value; 3,000 Shares
Authorized: 400 Shares
Issued and Outstanding (See Long Term
Debt and Note 5) - - -
------ ------ ---------
Common Stock, $.01 Par Value, 300,000
Shares Authorized; 199,000 Shares
Issued and Outstanding 1990 1990 1990
------ ------ ----------
Additional Paid in Capital - Beginning of
Period 1,587,057 1,459,508 1,438,250
Amortization of Restricted Capital 127,548 127,549 21,258
--------- --------- ---------
Additional Paid in Capital - End of
Period 1,714,605 1,587,057 1,459,508
--------- --------- ---------
Restricted Capital
Balance - Beginning of Period 479,436 606,985 -
Gain on Repurchase of Preferred - - 628,243
Amortization of Restricted Capital 127,548 (127,549) (21,258)
--------- --------- ---------
Balance - End of Period 351,888 479,436 606,985
--------- --------- ---------
Retained Earnings
Balance, Beginning of Period 14,959 18,181 39,281
Net Income 104,171 12,778 14,900
Less: Dividends Paid and
Accrued to the SBA (32,667) (16,000) (36,000)
--------- --------- ---------
Balance - End of Period 86,463 14,959 18,181
--------- --------- ---------
Total Stockholders' Equity $2,154,946$2,083,442 $2,086,664
========= ========= =========
See Notes to The Financial Statements
-7-
</TABLE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 1 ORGANIZATION
United Capital Investment Corp. (The "Company") was formed on May
11, 1984, for the purpose of operating as a specialized small
business investment company (SSBIC), licensed under the Small
Business Investment Act of 1958 and regulated and financed in
part by the Small Business Administration (SBA). The Company's
business is to provide financing to persons who qualify as
disadvantaged persons under applicable SBA and SSBIC by the SBA
on February 5, 1985.
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
applied by the Company in the preparation of its financial
statements. The Company maintains its accounts and prepares its
financial statements on the accrual method of accounting in
conformity with generally accepted accounting principles for
investment companies.
Valuation of Loans and Investments
As of December 31, 1995, all investments made by the Company have
been in the form of loans to closely held corporations. The
Board of Directors has valued the investment portfolio based upon
the cost of such investments, less a provision for loan losses.
However, because of the inherent uncertainty of the valuation,
the estimated values might otherwise be significantly higher or
lower than the values that would exist in a ready market for such
loans which market has not and does not exist. The provision for
loan losses of $64,033 represents a good faith determination by
the Board of Directors. Substantially, all loans are
collateralized by real estate. See schedule for analysis of loan
portfolio.
Recognition of Interest Income
It is the Company's policy to record interest on loans and debt
securities only to the extent that management and the Board of
Directors anticipate such amounts may be collected. As of
December 31, 1995, the Board of Directors elected to accrue
interest on substantially all outstanding loans.
Gains or Losses on Securities
Cost of securities sold is reported on the average cost basis.
Amounts reported as realized gains and losses are measured by the
difference between the proceeds of sale and the cost basis of the
investment without regard to unrealized gain or loss reported in
prior years.
No gain is recognized on the exchange of one investment security
for another, or on the exchange of an equity or debt investment
for other tangible or intangible assets.
-8-
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
(Continued)
Furniture, Fixtures and Equipment
Fixed assets are recorded at cost. Depreciation is computed on
the straight line basis.
Pension Plan
The Company maintains a defined contribution money purchase plan
covering all qualifying employees. A provision of $14,000 was
included for the years ended December 31, 1995 and 1994.
Income Taxes
Tax provisions for the various periods were as follows:
<TABLE>
<C> <C> <C> <C>
December 31, 1994 $2,288
December 31, 1995 $ 721
</TABLE>
The Company has registered as an investment company under the
Investment Company Act of 1940 for the first year ended December
31, 1989 and intends to make the election for the current period
ending December 31, 1995. A regulated investment company can
generally avoid taxation at the corporate level to the extent 90%
of the income is distributed to its stockholders.
Earnings Per Share
Earnings per share of common stock are based on a weighted
average number of shares outstanding during the period, less
preferred stock dividend.
NOTE 3 LOANS PAYABLE - LINE OF CREDIT
Effective February 25, 1993, the Company renewed a $500,000 line
of credit with the Hong Kong Shanghai Banking Corp., at a rate of
1% above the New York prime rate, secured by a blanket lien on
all assets and guaranteed personally for the first $150,000 by
Mr. Paul Lee, President of the Company.
-9-
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 3 LOANS PAYABLE _ LINE OF CREDIT
(Continued)
The Company will pay a commitment fee of .5% per annum payable
monthly on the unused balance of the credit line. As of December
31, 1993, the Company repaid the balance on its line of credit.
There are no restrictions on advances under the agreement. The
balance outstanding as of December 31, 1995 was $350,000.
<TABLE>
<S> <C> <C> <C> <C>
Maximum Average
Weighted Amount Amount
Category Balance Average Outstanding Outstanding
of End of Interest During During
Borrowing Period Rate Period Period
12/31/95 $350,000 4.875% $350,000 $350,000
12/31/94 350,000 4.875% 350,000 350,000
</TABLE>
NOTE 4 LONG TERM DEBT - SBA SUBORDINATED DEBENTURES
On April 18, 1994, the Company prepaid a $1,000,000 subordinated
debenture to the Small Business Administration maturing on
September 8, 1997. As a condition of the prepayment, the Company
may not file any application for financial assistance in the form
of subordinated debentures from the date of the prepayment until
the original maturity date of September 8, 1997. However, the
Company may seek funding in the form of four percent preferred
stock or a regular debenture during this period.
As of December 31, 1995, long term debt to the Small Business
Administration consisted of the following subordinated
debentures:
<TABLE>
<S> <C> <C> <C> <C>
First Second 1995 1994
Due Date Five Years Principal Amount
October 29, 1996 4.25% 7.25% $1,000,000 $1,000,000
September 1, 2001 5.33% 8.33% 400,000 400,000
--------- ---------
$1,400,000 $1,400,000
========= =========
</TABLE>
NOTE 5 REDEEMABLE PREFERRED STOCK
Effective November 21, 1989 Congress passes legislation which
alters the preferred stock to a 4 percent cumulative dividend and
a fifteen year call provision for all preferred stock sold
subsequent to the effective date.
10-
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 5 REDEEMABLE PREFERRED STOCK
(Continued)
The Company amended its certificate of incorporation to create a
class A preferred stock $1,000 par value which will consist of
the 1,000 outstanding preferred stock and to change the existing
3,000 authorized but unissued shares of preferred stock into a
new class B preferred stock $1,000 par value which will carry a 4
percent cumulative dividend rate and a mandatory 15 year
redemption. Subsequent to the repurchase of the 3% preferred
stock (see note 8), the Company retired the class A preferred
stock. On February 17, 1995 the Company sold 500 shares of its 15
year redeemable, 4% cumulative preferred stock to the SBA for
$500,000 and on September 20, 1991, the Company sold 400 shares
of its 15 year redeemable, 4 percent cumulative preferred stock
to the SBA for $400,000. The mandatory redemption provisions
call for the preferred stock to be repurchased by the Company at
its face value. In accordance with Regulation S-X, the Company's
financial statements present the preferred stock as Long Term
Debt.
NOTE 6 PREFERRED STOCK
As of December 31, 1995 the Company was authorized to issue 4,000
shares of cumulative preferred stock, consisting of 1,000 shares
of 3 percent cumulative preferred stock and a second class of 4
percent cumulative, 15 year redeemable preferred stock, $1,000
par value.
As of June 30, 1992, 900 shares of 4 percent preferred stock were
issued to the SBA. Each share is entitled to receive 4 percent
per annum. Dividends are not required to be paid to the SBA on
an annual or other periodic basis, so long as cumulative
dividends are paid to the SBA before any other payments are made
to shareholders. Such dividends on the preferred stock will be
deemed to be earned at the time dividends on the Company's common
stock are declared, and accordingly will reduce the amounts
available for distribution to the Company's shareholders. As of
December 31, 1995, the Company was contingently liable to the SBA
on the 4 percent redeemable preferred stock from September 20,
1991 to December 31, 1995 in the amount of $84,667.
NOTE 7 LEASE AGREEMENT
Minimum rental commitments under operating leases in effect as of
December 31, 1995 are as follows:
Rental expense for the current period was $15,735. The lease
expires on April 30, 1997 with a minimum rental of $12,936 per
year.
NOTE 8 REPURCHASE OF 3% PREFERRED STOCK
Effective August 23, 1993, the Company amended its certificate of
incorporation granting the SBA a liquidating interest in a newly
created restricted capital surplus account.
-11-
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 8 REPURCHASE OF 3% PREFERRED STOCK
(Continued)
The Company and the SBA entered into a repurchase agreement dated
October 5, 1993. Pursuant to the agreement, the Company
repurchased all 1,000 shares of its 3% preferred stock, $1,000
par value, from the SBA for a purchase price of $362.257 per
share, or an aggregate of $362,257. The repurchase price was at
a substantial discount to the original sale price of $1,000 per
share. As a condition precedent to the repurchase, the Company
granted the SBA a liquidating interest in the restricted capital
surplus account.
The surplus account is equal to the amount of the repurchase
discount less expenses associated with the repurchase. The
initial value of the liquidating interest was equal to $637,743.
the amount of the repurchase discount on the date of repurchase,
and is being amortized over a sixty (60) month period on a
straight-line basis. Should the Company be in default under the
repurchase agreement, at any time, the liquidating interest will
become fixed at the level immediately preceding the event of
default and will not decline further until such time as the
default is cured or waived. The liquidating interest will expire
on the earlier of (I) sixty (60) months from the date of the
repurchase agreement, or (ii) if any event of default has
occurred and such default has been cured or waived, such later
date on which the liquidating interest is full amortized. Should
the Company voluntarily or involuntarily liquidate prior to the
expiration of the liquidating interest, any assets which are
available, after the payment of all debts of the Company, shall
be distributed first to the SBA until the amount of the then
remaining liquidating interest has been distributed to the SBA.
Such payment, if any, would be prior in right to any payments
made to the Company's shareholders.
NOTE 9 MANAGEMENT FEES
Effective February 9, 1993, the SBA approved the Company's
request for an increase in total compensation to $160,200
retroactive to January 1, 1993.
NOTE 10 RELATED PARTY TRANSACTION
Certain officers and directors of the Company are also
shareholders of the Company. Officers' salaries are set by the
Board of Directors and are also subject to maximum compensation
by the SBA.
NOTE 11 FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISKS
The Company maintains approximately $736,547 in several banks in
excess of amount that would be insured by the Federal Depository
Insurance Company.
-12-
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
NOTE 12 COMMITMENTS AND CONTINGENCIES
Pursuant to SBA regulations, all SSBIC's issuing debentures
subsequent to April 25, were required to amend their certificates
of incorporation to indicate that they have consented , in
advance, to the SBA's right to require the removal of officers or
directors and to the appointment of the SBA, or its designee, in
the event of certain default provisions. Effective November
1994, the Company amended its certificate of incorporation in
accordance with the current provision of the SBA regulation.
NOTE 13 SIGNIFICANT CONCENTRATION OF CREDIT RISK
Approximately twenty-eight percent (28%) of the Company's loan
portfolio consists of loans made for the financing and purchase
of New York City Taxicab Medallions and related assets.
-13-
UNITED CAPITAL INVESTMENT CORP.
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 1995
<TABLE>
<S> <C> <C> <C> <C>
Balance
Original Outstanding
Outstanding Number Maturity December 31,
Type of Loan of Interest Date 1995
Loans Rate
Taxi Cab 10 8.75% - 4 - 15 $1,006,674
13.50% years
Restaurant 5 11.50% - 4 - 15 583,690
17.00% years
Dry Cleaning 8 10.00% - 5 - 10 684,296
16.25% years
Manufacturing 3 9.75% - 5 - 10 320,379
14.50% years
Food Supply 3 12.00% - 4 - 5 133,024
12.50% years
Contractor 1 14.50% 5 years 48,830
Laundromat 1 13.87% 5 years 61,216
Bakery 1 16.25% 5 years 27,881
Garage 8 10.00% - 5 years 299,542
Service 13.00%
Hair Salon 1 10.00% 10 years 141,375
Physicians 2 10.00% - 10 years 74,549
Office 12.50%
Import & Export 1 11.00% 4 years 57,500
Deli Grocery 4 11.75 - 5 years 119,588
14.00%
Other Retail 1 12.00% 5 years 38,622
---------
$3,597,166
=========
</TABLE>
-14-
<TABLE>
UNITED CAPITAL INVESTMENT CORP.
SUPPLEMENTARY INFORMATION
PER SHARE DATA AND RATIOS
FOR THE FIVE YEARS ENDED
<S> <C> <C> <C> <C> <C>
December 31,
1995 1994 1993 1992 1991
Per Share Data
Investment Income $2.36 $2.25 $2.49 $3.03 $3.50
Investment Expenses 1.84 (2.09) (2.30) (2.14) (2.18)
---- ---- ---- ---- ----
Net Investment Income .52 .16 .19 .89 1.32
Net Realized and Unrealized
Gains and Losses on
Securities - (.09) (.11) (.72) (.39)
Dividends (.17) (.09) - - (.90)
Sale of Common Stock - - - - -
Gain on Repurchase of
Preferred Stock - - 2.98 - -
---- ---- ---- ---- ----
Net Increase/Decrease in
Net Asset Value .35 (.02) 3.06 .17 .03
Net Asset Value -
Beginning of Period $10.47 $10.49 $ 7.43 $ 7.26 $ 7.23
Net Asset Value -
End of Year $10.82 $10.47 $10.49 $ 7.43 $ 7.26
===== ===== ===== ===== =====
Ratios
Ratio of Expenses to
Average Net Assets 17.2% 20.9% 25.5% 29.1% 30.1%
===== ===== ===== ===== =====
Ratio of Net Investment
Income to Average
Net Assets 4.9% .6% 2.3% 12.1% 18.2%
===== ===== ===== ===== =====
</TABLE>
-15-
