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THE CROWLEY PORTFOLIO GROUP, INC.
FINANCIAL STATEMENTS
(Unaudited)
May 31, 1997
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
The Crowley Growth and Income Portfolio
The Crowley Income Portfolio
The Crowley Diversified Management Portfolio
Semi-Annual Report
May 31, 1997
Dear Shareholder:
We are pleased to present you with the Semi-Annual Report for The Crowley
Portfolio Group, Inc. The report contains information regarding all three
Portfolios: The Crowley Growth and Income Portfolio, The Crowley Income
Portfolio and The Crowley Diversified Management Portfolio. The combined
Portfolios have assets approaching $18 million. The report contains unaudited
financial data through May 31, 1997. There are currently 410 active shareholder
accounts spread among the three Portfolios.
The Crowley Growth and Income Portfolio had a net asset value of $10.82 per
share as of May 31, 1997, and had distributions totaling $0.58 per share on
December 31, 1996 ($0.46 of ordinary income and $0.12 of capital gains). The
Crowley Growth and Income Portfolio continues to be invested conservatively with
its common stock positions at approximately 27% of the Portfolio, preferred
stocks at 13%, corporate bonds at 18%, government agency bonds at 10%, with cash
and cash equivalents comprising approximately 32% of the Portfolio. Management
continues to believe that the U.S. stock market is overvalued and that it is in
the shareholders' best interests to await better long term investment
opportunities.
The net asset value of the Crowley Income Portfolio was $10.38 per share as of
May 31, 1997, and had a $0.65 per share dividend distribution on December 31,
1996. The Portfolio remains heavily invested in corporate bonds and notes with
68% of the Portfolio so represented. Preferred stocks comprised 13%, government
agency bonds represented 13%, and cash and cash equivalents represented 6% of
the Portfolio. Management believes that the economy will slow in the second half
of 1997 and interest rates will fall creating a good investment environment for
fixed income investments. Management has lengthened maturities in the Portfolio
and continues to keep low levels of cash and cash equivalents.
The Crowley Diversified Management Portfolio had a net asset value of $12.08 per
share as of May 31, 1997. The Diversified Portfolio has experienced rapid growth
in its first two years of operations and currently has assets of approximately
$1.8 million. The Diversified Portfolio is generally considered the most
aggressive of the three Portfolios and is currently comprised of approximately
11% aggressive growth funds, 4% balanced funds, 2% corporate bond funds, 7% high
yield bond funds, 12% growth funds, 14% growth and income funds, 6% stock income
funds, 11% small company funds, 6% foreign equity funds, 8% global equity funds,
7% international bond funds and 3% Pacific equity funds. The remaining 9% is
invested in cash and cash equivalents. Management continues to keep cash and
cash equivalents at lower levels in the Diversified Portfolio. The international
portion of the Portfolio currently is approximately 24%.
Sincerely,
Robert A. Crowley, CFA
President
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stocks
Automotive -
4000 Chrysler 1.88% $ 127,500
4000 Ford Motor 2.22 150,000
---- ---------
4.10 277,500
Banking -
1000 Citicorp 1.69 114,375
2000 NationsBank 1.74 117,750
---- ---------
3.43 232,125
Building -
2000 Texas Industries .71 48,000
---- ---------
3000 Chemicals (Basic) -
Eastman Chemical 2.64 178,500
---- --------
</TABLE>
See accompanying notes to financial statements
-1-
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stocks
Electrical Equipment -
1000 Franklin Electric .71% $ 48,000
----- ---------
Foreign Telecommunications -
3000 Vodafone 1.98 133,875
1200 Telecommunicacoes 2.43 164,850
Brasileiras ----- ---------
4.41 298,725
----- ---------
7000 Insurance (Life) -
Washington National 2.90 196,000
----- ---------
Insurance (Diversified) -
5000 Pioneer Financial Services 2.08 140,625
----- ---------
Leisure -
521 Autotote Corp. Class A .01 586
----- ---------
Media & Services
4000 Media General Class A 1.81 122,250
----- ---------
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stocks
Transportation
3000 Canadian Pacific 1.18% $ 79,875
6000 Illinois Central 3.20 216,750
----- ---------
4.38 296,625
----- ---------
Total Common Stocks
(cost $1,610,728) 27.18% $1,838,936
----- ---------
Preferred Stocks
10000 Hartford Capital 3.66% $247,500
Series A
6000 Lincoln National Capital 2.37 160,500
Series A, 8.75%
5000 Pacific Capital, 8.25% 1.88 127,500
10000 TCI Communications 3.75 253,750
Financing IV, 9.72%
4000 Travelers Capital I, 8.00% 1.50 101,188
----- ---------
Total Preferred Stocks
(cost $875,625) 13.16% $ 890,438
----- ---------
Par Value Corporate Bonds & Notes
$200,000 Bear Stearns, Note
7.500%, 12-16-16 2.93 $ 198,500
200,000 DuPont E.I. & Co., Debenture
8.25%, 01-15-22 3.06 207,000
250,000 Ford Motor Credit, Note
7.350%, 11-7-01 3.64 246,250
100,000 General Electric Capital
8.650%, 05-01-18 1.48 99,890
200,000 Limited Inc., Debenture
7.50%, 3-15-23 2.60 176,000
300,000 Wisconsin Power & Light,
Note
9.300% 12-01-25 4.69 317,154
----- ---------
Total Corporate Bonds & Notes
(cost $1,270,033) 18.40% $1,244,794
----- ----------
</TABLE>
See accompanying notes to financial statements
-3-
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Agency
$ 200,000 Federal Home Loan Mtg.
8.15%, 9-12-06 2.96% $200,180
200,000 Federal Home Loan Bank
8.00%, 02-06-12 2.95 199,500
250,000 Federal Home Loan Mtg.
7.05%, 11-21-11 3.59% $243,125
------ ---------
Total U.S. Government Agency
(cost $648,594) 9.50% $642,805
------ ---------
Repurchase Agreements
2,050,830 Wilmington Trust Co.
4.5%, dated 5-30-97 due
6/02/96 secured by
$35,000,000 U.S. Treasury
Note, 5.75%, due 10-31-97
(cost $2,050,830) 30.31% $2,050,830
----- ---------
Total Investments
(cost $6,455,810) (A) 98.54% $6,667,803
Assets in Excess of Liabilities 1.45 98,689
----- ---------
Net Assets 100.00% $6,766,492
====== ==========
(A) Aggregate cost for federal income tax purposes is $6,455,810.
At May 31, 1997 unrealized appreciation (depreciation) of securities
for federal income tax purposes is as follows:
Unrealized appreciation $ 311,585
Unrealized depreciation ( 99,592)
---------
Net unrealized appreciation $ 211,993
=========
* Non-Income Producing Security
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred Stocks
4000 Georgia Power 1.09% $ 100,000
Series 7.75%
8000 Hartford Capital
Series A 2.15 198,000
6000 Lincoln National Capital
Series 8.75% 1.75 160,500
10000 Pacific Telesis, 7.56% 2.65 243,750
10000 Pacificorp Capital, 8.25% 2.77 255,000
8000 Travelers Capital I, 8.00% 2.20 202,376
----- ---------
Total Preferred Stocks
(cost $1,148,453) 12.61% $1,159,626
----- ---------
Par Value Corporate Bonds & Notes
Auto & Truck -
$200,000 Chrysler Financial Corp. Note 2.21 203,400
7.500%, 01-27-12
250,000 Ford Holdings
7.35%, 11-07-11 2.68 246,250
40,000 Ford Motor Credit Co. Note
9.25%, 07-15-97 .44 40,162
100,000 Ford Motor Company 1993-A
Pass Thru 5.78%, 01-01-99 1.08 99,234
60,000 Ford Motor Credit Co. Note
8.720%, 07-22-99 .69 63,000
30,000 Ford Motor Credit Co. Note
8.000%, 01-15-99 .33 30,722
300,000 General Motors
Corp. Note 7.700%, 04-15-16 3.29 302,109
50,000 General Motors
Corp. Note 9.625%, 12-01-00 .59 54,344
----- ---------
11.31 1,039,221
----- ---------
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Bonds & Notes
Banking -
$ 60,000 BankAmerica
Corp. Note 7.750%, 07-15-02 .67% $ 61,828
30,000 BankAmerica
Corp. Note 7.875%, 12-01-02 .34 31,115
80,000 Bankers Trust New York
Corp. Note 9.500%, 06-14-00 .93 85,850
20,000 Bankers Trust New York
Corp. Note 9.400%, 03-01-01 .24 21,554
250,000 Bankers Trust New York
Deb. 7.500%, 11-15-15 2.67 245,000
95,000 Banque Paribas New York
Note. 6.875%, 03-01-09 .97 89,270
40,000 Barclays American
Corp. Note 7.875%, 08-15-98 .44 40,750
20,000 Chase Manhattan
Note 10.125%, 11-01-00 .24 21,994
</TABLE>
See accompanying notes to financial statements
-6-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Banking - continued
$ 40,000 First Union Corp.
Note 9.450%, 06-15-99 .46% $ 42,131
100,000 First Union Corp.
Note 9.890%, 03-13-01 1.19 109,684
20,000 Heller Financial Inc.
Note 8.000%, 12-15-98 .22 20,431
----- ---------
8.37 769,607
----- ---------
Broadcasting & Cable T.V.
50,000 Cox Communications, Inc.
Note 8.875%, 03-01-01 .58 53,188
----- ---------
Chemical (Basic) -
200,000 DuPont E. I. Note 8.250%,
1-15-22 2.26 208,000
----- ---------
Chemical (Diversified) -
80,000 ICI Wilmington
Note 9.500%, 11-15-00 .94 86,332
----- ---------
</TABLE>
See accompanying notes to financial statements
-7-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Diversified Company -
Electric Utility -
$ 50,000 Alabama Power Company
1st Mortgage
8.300%, 07-01-22 .55% $ 50,109
50,000 Duke Power Company
1st Ref & Mortgage
8.625%, 03-01-22 .56 51,672
200,000 Oklahoma Gas & Electric
1st Mortgage
8.875%, 12-01-20 2.23 204,780
35,000 Mississippi Power & Light Co.
General Ref Mortgage
8.500%, 01-05-23 .41 37,289
100,000 Ohio Power Co.
Note 6.875%, 06-01-03 1.08 98,878
65,000 Southern Calif. Edison Co.
1st Mortgage
8.875%, 06-01-24 .73 67,335
70,000 Teco Energy
Note 9.220%, 10-15-97 .77 70,800
250,000 Virginia Electric & Power Co.
Note 7.50%, 06-01-23 2.61 240,000
100,000 Wisconsin Pwr & Lt Company
1st Mortgage
9.30%, 12-01-25 1.15 105,718
245,000 Wisconsin Electric Pwr
1st Mortgage
7.75%, 01-15-23 2.63 242,356
----- ---------
12.72% $1,168,937
----- ---------
</TABLE>
See accompanying notes to financial statements
-8-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Food Processing -
$100,000 Quaker Oats Co.
Medium-Term
Note 9.000%, 12-17-01 1.17% $ 107,696
----- ---------
Insurance (Diversified) -
40,000 Aetna Services, Inc.
Note 8.625%, 03-01-98 .44 40,737
----- ---------
Machinery (Construction &
Mining) -
200,000 Caterpillar Inc.
Note 6.810%, 08-24-99 2.19 200,924
----- ---------
Natural Gas Industry -
100,000 British Gas Co.
Note 8.750%, 03-15-98 1.11 101,921
----- ---------
Office Equipment & Supplies -
Oil & Gas
50,000 Societe Nat. Elf Aquitaine
Note 7.750%, 05-01-99 .56 51,084
57,000 Washington Gas Light Co.
1st Mortgage
8.625%, 03-01-17 .64 59,119
----- ---------
1.20 110,203
----- ---------
</TABLE>
See accompanying notes to financial statements
-9-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Paper and Forest Products -
$ 50,000 International Paper Company
Deb. 9.700%, 03-15-00 .58% $ 53,656
----- ---------
Retail Store Industry -
50,000 Dayton Hudson Corp. Note
10.000%, 12-01-00 .59 54,593
200,000 Limited, Deb.
7.500%, 03-15-23 1.90 175,000
30,000 Sears Roebuck & Co. Note
9.250%, 08-01-97 .33 30,169
30,000 Wal Mart Stores Note
9.100%, 07-15-00 .35 32,034
----- ---------
3.17% $ 291,796
----- ---------
</TABLE>
See accompanying notes to financial statements
-10-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Securities Brokerage Industry -
$ 35,000 Bear Stearns Companies Note
9.375%, 06-01-01 .41% $ 37,871
200,000 Bear Stearns Companies Note
7.500%, 12-16-16 2.16 199,000
200,000 Bear Stearns Companies Note
8.000%, 02-21-17 2.22 202,960
50,000 Lehman Bros Holdings Inc Note
7.625%, 06-15-97 .54 50,031
200,000 Lehman Bros Holding Inc. Note
8.500%, 05-01-07 2.32 212,968
40,000 Morgan Stanley Group Note
7.875%, 12-15-98 .44 40,792
30,000 Morgan Stanley Group Note
8.100%, 06-24-02 .34 31,392
40,000 Salomon Inc. Note
9.100%, 03-15-98 .44 40,818
----- ---------
8.87 815,832
----- ---------
</TABLE>
See accompanying notes to financial statements
-11-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Corporate Bonds & Notes
Telecommunications Service
Industry
$ 50,000 General Telephone Co. Florida
1st Mortgage,
7.500%, 08-01-02 .55% $ 50,063
150,000 GTE North, Inc.
Note,
7.625%, 05-15-26 1.58 145,055
103,000 General Telephone Co Kentucky
1st Mortgage,
7.750%, 06-01-03 1.13 104,288
100,000 Illinois Bell Telephone Co.
Deb. 8.500%, 04-22-26 1.13 103,937
295,000 Southern Bell Telephone &
Telegraph
Deb. 7.375%, 07-15-10 3.20 294,032
250,000 U.S. West Capital Funding,
Inc., Note, 2.61 240,000
6.750%, 10-01-05 ----- ---------
10.20 937,375
----- ---------
Tobacco -
100,000 Philip Morris Note
8.250%, 10-15-03 1.14 104,796
130,000 Philip Morris Note
7.750%, 05-01-99 1.44 132,376
----- ---------
2.58 237,172
----- ---------
Total Corporate Bonds & Notes
(cost $6,348,761) 67.69% $6,222,597
----- ---------
</TABLE>
See accompanying notes to financial statements
-12-
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Par Percent of Net Market Value
Value Investments Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Agency
$200,000 Federal Home Loan Bank
8.00%, 02-06-12 2.18% $ 200,000
200,000 Federal Home Loan Mtge. Corp.
6.29%, 02-07-06 2.07 190,380
200,000 Federal Home Loan Mtge. Corp.
8.15%, 09-12-06 2.18 200,180
80,000 Federal Home Loan Mtge. Corp.
8.325%, 07-15-09 .88 81,776
200,000 Federal Natl. Mtge. Assn. Deb.
8.400%, 10-25-04 2.24 205,680
305,000 Federal Home Loan Mtge. Corp.
7.05%, 11-21-11 3.22 296,372
------ ---------
Total U.S. Government Agency
(cost $1,201,484) 12.77% $1,174,388
------ ---------
Repurchase Agreements
504,146 Wilmington Trust Co. 4.5% dated 5-30-97, due
6/02/97, secured by $35,000,000 U.S. Treasury
Notes, 5.75%, due 10-31-97
(cost $504,146)
5.48% $ 504,146
------ ---------
Total Investments
(cost $9,202,844) (A) 98.55% $9,060,757
Liabilities in Excess of Other 1.45 133,346
------ ---------
Assets
Net Assets 100.00% $9,194,103
====== =========
(A) Aggregate cost for federal income tax purposes is $9,202,844.
At May 31, 1997, unrealized appreciation (depreciation) of securities
for federal income tax purposes is as follows:
Unrealized appreciation $ 46,439
Unrealized depreciation ( 188,526)
--------
Net unrealized depreciation $( 142,087)
========
</TABLE>
See accompanying notes to financial statements
-13-
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
General Equity Funds
Aggressive Growth -
1726 Strong Opportunity 3.48% $ 64,273
2262 Twentieth Century Ultra 3.82 70,508
2482 Wasatch Aggressive Equity 3.40 62,836
----- ---------
10.70 197,617
----- ---------
Balanced -
1657 Columbia Balanced 1.94 35,881
688 Dodge & Cox Balanced 2.40 44,179
----- ---------
4.34 80,060
----- ---------
Corporate - Investment Grade -
3943 Harbor Bond - 2.41 44,561
----- ---------
Corporate - High Yield -
5641 Federated High Yield Trust 2.84 52,458
3521 Fidelity Capital & Income 1.82 33,560
3736 Strong High Yield 2.35 43,370
----- ---------
7.01 129,388
----- ---------
Growth -
1029 Fidelity Stock Selection 1.47 27,100
1906 Longleaf Partners 2.57 47,456
599 Nicholas 2.40 44,289
1163 Oakmark 2.34 43,132
2216 Soundshore 2.95 54,515
----- ---------
11.73 216,492
----- ---------
</TABLE>
See accompanying notes to financial statements
-14-
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
General Equity Funds - continued
Growth/Income -
1017 Babson Value 2.29% $ 42,221
468 Dodge & Cox Stock 2.27 41,939
4695 Mutual Beacon 3.60 66,525
1238 Neuberger & Berman Guardian 1.93 35,709
2286 Pelican 2.11 38,864
1884 Steinroe Growth & Income 2.10 38,770
----- ---------
14.30 264,028
----- ---------
Income -
3052 Berwyn Income 2.09 38,519
1350 Lindner Dividend 2.03 37,455
1758 Gabelli Equity Income 1.46 27,068
----- ---------
5.58 103,042
----- ---------
Small Company -
1716 Heartland Value 3.18 58,727
1866 Meridian 3.32 61,222
2034 PBGH Growth 2.62 48,332
1213 Parkstone Small Cap.
Series "B" 1.65 30,479
----- ---------
10.77 198,760
----- ---------
</TABLE>
See accompanying notes to financial statements
-15-
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
International Equity Funds
Foreign Equity -
1222 Managers International
Equity 3.09% $ 57,050
6820 Twentieth Century
International Equity 3.36 62,065
------ ----------
6.45 119,115
------ ----------
Global Equity -
2887 Founders Worldwide Growth 3.67 67,834
1860 Janus Worldwide Fund 3.84 70,750
------ ----------
7.51 138,584
------ ----------
International Bond -
4283 T. Rowe Price International Bond 2.28 42,143
4079 Scudder International Bond 2.31 42,586
4362 Warburg Global Fixed Income 2.62 48,420
----- ---------
7.21 133,149
----- ---------
Pacific Equity -
6562 T. Rowe Price - New Asia 3.25 59,911
------ ----------
Total Mutual Funds
(cost $1,520,226) 91.26% $1,684,707
------ ---------
Repurchase Agreements
$ 389 Wilmington Trust, 4.5% dated 5-30-97 due
6/2/97, secured by $35,000,000 U.S. Treasury
Note, 5.75% due 10-31-97
(cost $ 389)
.02% $ 389
----- -----------
Total Investments
(cost $1,520,615) (A) 91.28% $1,685,096
Other Assets Less Liabilities 8.72 160,999
------ ---------
Net Assets 100.00% $1,846,095
====== =========
</TABLE>
See accompanying notes to financial statements
-16-
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
(Unaudited)
May 31, 1997
<TABLE>
<CAPTION>
Number of Percent of Net Market Value
Shares Investments Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
(A) Aggregate cost for federal income tax purposes is $1,520,615.
At May 31, 1997 unrealized appreciation (depreciation) of securities
for federal income tax purposes is as follows:
Unrealized appreciation $ 177,573
Unrealized depreciation ( 13,092)
---------
Net unrealized appreciation $ 164,481
=========
</TABLE>
See accompanying notes to financial statements
-17-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
<TABLE>
<CAPTION>
May 31, 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth
And Income Income Diversified
Portfolio Portfolio Portfolio
ASSETS
Investments at market value
(Identified cost $6,455,810
$9,202,844 and $1,520,615
respectively) $ 6,667,803 $ 9,060,757 $ 1,685,096
Cash 58,765 -- 159,467
Receivable for
Interest 43,330 144,774 467
Dividends 4,214 -- --
----------- ----------- -----------
Total assets 6,774,112 9,205,531 1,845,030
----------- ----------- -----------
LIABILITIES
Cash overdraft -- 3,258 --
Investment securities payable -- -- --
Accrued expenses 7,620 8,170 (1,065)
----------- ----------- -----------
Total liabilities 7,620 11,428 (1,065)
----------- ----------- -----------
NET ASSETS
(500 million shares of $.01 par value
common stock authorized; 625,430
885,974 and 152,835 shares issued
and outstanding, respectively) $ 6,766,492 $ 9,194,103 $ 1,846,095
=========== =========== ===========
NET ASSET VALUE
Offering and redemption price per share
(Net assets/shares outstanding) $ 10.82 $ 10.38 $ 12.08
=========== =========== ===========
At May 31, 1997, net assets consisted of:
Paid-in capital $ 6,385,964 $ 9,344,424 $ 1,639,825
Accumulated undistributed net
investment income (36,484) 224,435 35,269
Accumulated undistributed net
realized gains (losses) 205,019 (232,669) 6,520
Net unrealized appreciation
of investments 211,993 (142,087) 164,481
----------- ----------- -----------
$ 6,766,492 $ 9,194,103 $ 1,846,095
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements
-18-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth
And Income Income Diversified
Portfolio Portfolio Portfolio
INVESTMENT INCOME
Interest income $ 129,577 $ 306,725 $ 1,092
Dividend income 48,873 45,633 19,209
Other income -- 362 47
--------- -------- -------
Total income 178,450 352,720 20,348
EXPENSES
Investment advisory fees (Note 2) 33,106 27,772 8,217
Expenses 3,442 36,714 6,559
-------- -------- -------
Total expenses 64,548 64,486 14,776
-------- -------- -------
Investment income - net $ 113,902 $ 288,234 $ 5,572
-------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from
security transactions $ 88,304 $ (24,947) $ --
Capital gain distribution from
regulated investment companies -- -- 57,614
Change in unrealized appreciation
of investments for the year (38,098) (150,778) 20,016
-------- -------- -------
Net gain (loss) on investments 50,206 175,725 77,630
-------- -------- -------
Net increase in net assets
resulting from operations $ 164,108 $ 112,509 $ 83,202
======== ======== =======
</TABLE>
See accompanying notes to financial statements
-19-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY GROWTH AND INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
For Six Months Ended May 31, 1997 and Year Ended November 30, 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Six Months
1996 Ended May 31, 1997
OPERATIONS
Investment income - net $ 137,653 $ 113,902
Net realized gain on investments 191,740 88,304
Change in unrealized appreciation 21,978 (38,098)
------ ------
Net increase in net assets resulting from operations 351,371 164,108
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net
($.32 and $.46 per share) (183,435) (275,707)
From net realized gains on investments
($.50 and $.12 per share) (286,617) (71,924)
CAPITAL SHARE TRANSACTIONS (a) 318,132 205,639
------- -------
Total increase 199,451 22,116
NET ASSETS
Beginning of year 6,544,925 6,744,376
---------- ---------
End of year
(including undistributed investment income of
$125,320 and $(36,484), respectively) $ 6,744,376 $ 6,766,492
========== ==========
</TABLE>
(a) Summary of capital share activity follows:
<TABLE>
<CAPTION>
Six Months
1996 Ended May 31, 1997
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 34,760 $ 373,438 11,639 $ 123,652
Shares issues in
reinvestment of distributions 44,303 470,052 33,108 347,631
------ ------- ------ -------
79,063 843,490 44,747 471,283
Shares redeemed (49,012) (525,358) (24,787) (265,644)
------ ------- ------ -------
Net increase 30,051 $ 318,132 19,960 $ 205,639
====== ======== ====== ========
</TABLE>
See accompanying notes to financial statements
-20-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
For Six Months Ended May 31, 1997 and Year Ended November 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Six Months
1996 Ended May 31, 1997
OPERATIONS
Investment income - net $ 530,316 $ 288,234
Net realized gain on investments (143,224) (24,947)
Change in unrealized appreciation (1,524) (150,778)
----- -------
Net increase in net assets resulting from operations 385,568 112,509
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net
($.62 and $.65 per share) (502,187) (556,624)
CAPITAL SHARE TRANSACTIONS (a) 704,926 109,453
------- -------
Total increase 558,307 (334,662)
NET ASSETS
Beginning of year 8,940,458 9,528,765
---------- ---------
End of year
(including undistributed investment income of
$492,825 and $224,435, respectively) $ 9,528,765 $ 9,194,103
========== ==========
</TABLE>
(a) Summary of capital share activity follows:
<TABLE>
<CAPTION>
Six Months
1996 Ended May 31, 1997
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 124,539 $ 1,325,485 22,140 $ 226,101
Shares issues in
reinvestment of distributions 47,646 502,187 54,518 556,624
------ ------- ------ -------
172,185 1,827,672 76,658 782,725
Shares redeemed (105,211) (1,112,746) (64,692) (673,272)
------- --------- ------ -------
Net increase 66,974 $ 704,926 11,966 $ 109,453
====== ======== ====== ========
</TABLE>
See accompanying notes to financial statements
-21-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
For Six Months Ended May 31, 1997 and Year Ended November 30, 1996
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Six Months
1996 Ended May 31, 1997
OPERATIONS
Investment income (loss) - net $ 5,545 $ 5,572
Net realized gain on investments 30,015 --
Capital gain distribution from regulated
investment companies 26,533 57,614
Change in unrealized appreciation 95,517 20,016
------ ------
Net increase in net assets resulting from operations 157,610 83,202
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net
($.04 and $.21 per share) (3,511) (27,009)
From net gains on investments
($.00 and $.41 per share) -- (52,732)
CAPITAL SHARE TRANSACTIONS (a) 383,968 342,429
------- -------
Total increase 538,067 345,890
NET ASSETS
Beginning of year 962,138 1,500,205
------- ---------
End of year
(including undistributed investment income of
$1,638 and $35,269, respectively) $ 1,500,205 $ 1,846,095
========== ==========
</TABLE>
(a) Summary of capital share activity follows:
<TABLE>
<CAPTION>
Six Months
1996 Ended May 31, 1997
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 39,599 $ 450,041 25,729 $ 302,302
Shares issues in
reinvestment of distributions 325 3,511 6,934 79,741
--- ----- ----- ------
39,924 453,552 32,663 382,043
Shares redeemed (6,260) (69,584) (3,351) (39,614)
----- ------ ----- ------
Net increase 33,664 $ 383,968 29,312 $ 342,429
====== ======== ====== ========
</TABLE>
See accompanying notes to financial statements
-22-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY GROWTH AND INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
(For a share outstanding throughout each year)
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------------------------------------------------
11-30-96
to
05-31-96 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year $11.14 $11.37 $10.69 $10.45 $10.19 $9.94
--------- --------- --------- --------- --------- ---------
INCOME FROM
INVESTMENT OPERATIONS
Net investment income .18 .23 .32 .12 .11 .17
Net gains on securities (both
realized & unrealized) .08 .36 .88 .63 .18 .32
--------- --------- --------- --------- --------- ---------
Total from
investment operations .26 .59 1.20 .75 .29 .49
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends (from net
investment income) (.46) (.32) (.12) (.11) (.03) (.17)
Distributions (from
realized capital gains) (.12) (.50) (.40) (.40) ( - ) (.07)
--------- --------- --------- --------- --------- ---------
Total distributions (.58) (.82) (.52) (.51) (.03) (.24)
--------- --------- --------- --------- --------- ---------
NET ASSETS VALUE
End of year $10.82 $11.14 $11.37 $10.69 $10.45 $10.19
========= ========= ========= ========= ========= =========
TOTAL RETURN 2.49% 5.55% 11.85% 7.41% 2.85% 4.93%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $6,766 $6,744 $6,545 $5,496 $4,593 $4,440
Ratio of expenses to
average net assets 1.91% 1.95% 1.93% 1.85% 1.61% 1.52%
Ratio of net investment
income to average
net assets 3.37% 2.06% 3.00% 1.10% 1.00% 1.72%
Portfolio turnover rate 29.92% 182.41% 118.08% 107.37% 243.85% 178.78%
Average commission rate
paid per share $.05 $.05 -- -- -- --
</TABLE>
See accompanying notes to financial statements
-23-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
(For a share outstanding throughout each year)
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------------------------------------------------
11-30-96
to
05-31-97 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year $10.90 $11.08 $10.69 $11.57 $10.58 $10.48
------ ------ ------ ------ ------ ------
INCOME FROM
INVESTMENT OPERATIONS
Net investment income .33 .59 .65 .61 .65 .61
Net gains (losses) on
securities (both realized
and unrealized) (.20) (.15) .37 (.76) .40 .22
--- --- --- --- --- ---
Total from
investment operations .13 .44 1.02 (.15) 1.05 .83
--- --- ---- --- ---- ---
LESS DISTRIBUTIONS
Dividends (from net
investment income) (.65) (.62) (.63) (.66) (.06) (.61)
Distributions (from
realized capital gains) -- -- (--) (.07) ( - ) (.12)
---- ---- -- --- --- ---
Total distributions (.65) (.62) (.63) (.73) (.06) (.73)
--- --- --- --- --- ---
NET ASSETS VALUE
End of year $10.38 $10.90 $11.08 $10.69 $11.57 $10.58
====== ====== ====== ====== ====== ======
TOTAL RETURN 1.29% 4.16% 10.12% (1.43)% 9.97% 7.69%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $9,194 $9,529 $8,940 $6,654 $5,423 $4,133
Ratio of expenses to
average net assets 1.38% 1.39% 1.43% 1.37% 1.23% 1.20%
Ratio of net investment
income to average
net assets 6.16% 5.62% 6.43% 6.28% 6.27% 6.11%
Portfolio turnover rate 28.66% 66.18% 31.60% 14.45% 1.17% 45.00%
</TABLE>
See accompanying notes to financial statements
-24-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
(For a share outstanding throughout each year)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Period
Six Months April 1, 1995(a)
Nov. 30, 1996 Year Ended to
to November 30, November 30,
May 31, 1997 1996 1995
NET ASSET VALUE
Beginning of year $12.15 $10.71 $10.00
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .04 .05 --
Net gains on securities (both
realized & unrealized) .51 1.43 .71
------ ------ ------
Total from investment operations .55 1.48 .71
------ ------ ------
LESS DISTRIBUTIONS
Dividends (from net investment income)
(.21) (.04) --
Distributions (from realized capital gains)
(.41) -- --
------ ------ ------
Total distributions (.62) (.04) --
------ ------ ------
NET ASSETS VALUE
End of year $12.08 $12.15 $10.71
====== ====== ======
TOTAL RETURN 4.78% 13.87% 7.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $1,846 $1,500 $962
Ratio of expenses to average net assets
1.82% 2.22% 2.06%
Ratio of net investment income (loss)
to average net assets .69% .46% (.09)%(b)
Portfolio turnover rate .00% 20.69% --
</TABLE>
(a) Effective date of the Portfolio's initial registration under the Securities
Act of 1933, as amended.
(b) Annualized.
See accompanying notes to financial statements
-25-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
May 31, 1997
- -----------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Crowley Portfolio Group, Inc. (the "Fund"), is an open-end
diversified, investment company currently offering three series of
shares: The Crowley Growth and Income Portfolio, The Crowley Income
Portfolio, and The Crowley Diversified Management Portfolio (each a
"Portfolio").
The objective of The Crowley Growth and Income Portfolio is a long-term
growth of capital for investors, with the secondary objective being
current income. The objective of the Crowley Income Portfolio is to
maximize current income, consistent with prudent risk, i.e., reasonable
risk to principal. The objective of The Crowley Diversified Management
Portfolio is high total return consistent with reasonable risk. The
Portfolios will use a variety of investment strategies in an effort to
balance portfolio risks and to hedge market risks. There can be no
assurance that the objectives of the Portfolios will be achieved.
SECURITY VALUATION
Portfolio securities, which are fixed income securities, are
valued by using market quotations, prices provided by
market-makers or estimates of market values obtained from
yield data relating to instruments or securities with similar
characteristics, in accordance with procedures established in
good faith by the Board of Directors. Securities listed on an
exchange or quoted on a national market system are valued at
the last sales price. Investments in regulated investment
companies are valued at the net asset value per share as
quoted by the National Association of Securities Dealers, Inc.
Money market securities with remaining maturities of less than
60 days are valued on the amortized cost basis as reflecting
fair value. All other securities are valued at their fair
value as determined in good faith by the Board of Directors.
FEDERAL INCOME TAXES
The Portfolios intend to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated
investment company and as such will not be subject to federal
income taxes on otherwise taxable income (including net
realized capital gains) which is distributed to shareholders.
At November 30, 1996, the Income Portfolio had a capital loss
carry forward for Federal Income Tax purposes of approximately
$207,700, of which $36,100 expires in the year 2002, $28,400
in 2003 and $143,200 in 2004.
-26-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
May 31, 1997
- -------------------------------------------------------------------------------
SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS
As is common in the industry, security transactions are
accounted for on the trade date (the date the securities are
purchased or sold). Interest income is recorded on the accrual
basis. Bond premiums and discounts are amortized in accordance
with Federal Income Tax regulations. Dividend income and
distributions to shareholders are recorded on the ex-dividend
date.
USE OF ESTIMATES IN FINANCIAL STATEMENTS
In preparing financial statements in conformity with generally
accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements, as well
as the reported amounts of revenues and expenses during the
reported period. Actual results could differ from those
estimates.
(2) INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Crowley & Crowley Corp. (the "Advisor") provides the Fund with
management and administrative services pursuant to a management
agreement.
As compensation for its services, the Advisor receives a fee, computed
daily and payable monthly, at the annualized rate of 1% of the average
daily net assets of The Crowley Growth and Income Portfolio, .60% of
the average daily net assets of The Crowley Income Portfolio and 1% of
the average daily net assets of The Crowley Diversified Management
Portfolio. The Advisor pays all expenses incurred by it in rendering
management services to the Fund including the costs of accounting,
bookkeeping and data processing services provided in its role as
administrator. The Portfolios bear their costs of operations, which
include, but are not limited to: advisory fees; taxes; brokerage fees;
accounting fees; legal fees; custodian and auditing fees; and printing
and other expenses which are not expressly assumed by the Advisor under
the Management Agreements.
-27-
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
May 31, 1997
- -------------------------------------------------------------------------------
The Crowley Financial Group, Inc. ("TCFG") serves as the Portfolio
shareholders' servicing agent. As shareholders servicing agent, TCFG,
will act as the Transfer, Dividend Disbursing and Redemption Agent to
the Portfolios. As compensation for its services, TCFG received a fee
computed daily and payable monthly, at the annualized rate of .40% of
the average daily net assets of each Portfolio. During the period
December 1, 1995 to November 30, 1996, TCFG earned fees of $13,242,
$18,515 and $3,270 from the Growth and Income Portfolio, Income
Portfolio and Diversified Management Portfolio, respectively.
Crowley Securities serves as distributor of the Fund's shares.
Certain officers and directors of the Fund are also officers of Crowley
& Crowley Corp., Crowley Securities Corp. and The Crowley Financial
Group, Inc.
(3) PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short-term investments,
aggregated $1,010,402 and $2,671,023, respectively, in the Growth
Portfolio and Income Portfolio, $1,341,720 and $1,942,396,
respectively, in the Income Portfolio and $258,388 and $0,
respectively, in the Crowley Diversified Management Portfolio.
-28-
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