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Previous: CROWLEY PORTFOLIO GROUP INC, NSAR-B, 1997-01-29 |
Next: CROWLEY PORTFOLIO GROUP INC, 24F-2NT, 1997-01-29 |
THE CROWLEY PORTFOLIO GROUP, INC.
The Crowley Growth and Income Portfolio
The Crowley Income Portfolio
The Crowley Diversified Management Portfolio
Annual Report Dated
November 30, 1996
Dear Shareholder:
We are pleased to present you with the Annual Report for The Crowley Portfolio
Group, Inc. (the "Fund") for the fiscal year ending November 30, 1996. The
Growth and Income and Income Portfolios have just completed their seventh year
of operations, and all the Portfolios have combined assets in excess of 16.75
million dollars with 403 active accounts.
Management continues to invest the assets of the Portfolios in a manner which it
believes corresponds to a low level of risk. The Crowley Growth and Income
Portfolio had a total return of 5.55% for the period November 30, 1995 through
November 30, 1996. The Crowley Growth and Income Portfolio continued to be
invested conservatively with the common stock positions at approximately 38% of
the Portfolio at fiscal year end. The remaining assets in the Portfolio were
invested in a combination of corporate bonds (21%), preferred stocks (9%),
government agency bonds (11%), and U.S. treasury bonds (14%), and the balance in
cash and cash equivalents (7%). The Crowley Income Portfolio had a good year
considering the rising interest rate environment. The total return was 4.16%
during the period November 30, 1995 through November 30, 1996, while management
was able to expand the weighted average maturity of the Portfolio. The weighted
average maturity of the Portfolio at November 30, 1996 was approximately 10
years, up from just under 6 years a year earlier. If rates stabilize, this
should increase the Portfolio's total return for future years.
The Crowley Diversified Management Portfolio had a total return of 13.67% during
the period November 30, 1995 through November 30, 1996. The Diversified
Management Portfolio is designed to be the most aggressive of the three
Portfolios and is primarily invested in other mutual funds. The Crowley
Diversified Management Portfolio was broadly invested in 35 mutual funds in
Growth category (15.31%), followed by Small Company (12.52%), Growth/Income
(10.47%), and Aggressive Growth (10.01%). The international portion of the
Portfolio was at 27.18% as of November 30, 1996.
The enclosed report has been audited by the Funds' Independent Accountants and
contains a list of the Funds' investments as of November 30, 1996. The
Portfolios continue to be managed conservatively. We look forward to continued
success.
Sincerely,
Robert A. Crowley, CFA
President
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
FINANCIAL STATEMENTS
November 30, 1996
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
The Crowley Portfolio Group, Inc.
Wilmington, Delaware
We have audited the accompanying statements of assets and liabilities of The
Crowley Growth & Income Portfolio, The Crowley Income Portfolio and The Crowley
Diversified Management Portfolio, each a series of shares of common stock of The
Crowley Portfolio Group, Inc., including the portfolios of investments as of
November 30, 1996, and the related statements of operations for the year then
ended and the statements of changes in net assets, and the financial highlights
for periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Portfolios' 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 audits 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
November 30, 1996 by correspondence with the custodian and brokers. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Crowley Growth and Income Portfolio, The Crowley Income Portfolio and The
Crowley Diversified Management Portfolio as of November 30, 1996, the results of
their operations for the year then ended and changes in their net assets, and
the financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
/s/ Tait, Weller & Baker
Philadelphia, Pennsylvania
December 23, 1996
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- --------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Common Stocks
Automotive -
2000 Chrysler 1.05% $ 71,000
4000 Ford Motor 1.94 131,000
2000 General Motors 1.71 115,250
----- ---------
4.70 317,250
Building -
4000 Medusa 2.05 138,500
1000 Texas Industries .84 56,750
3000 Vulcan Materials 2.77 186,750
----- ---------
5.66 382,000
----- ---------
Chemicals (Basic) -
3000 Eastman Chemical 2.54 171,375
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- --------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Common Stocks
Diversified Company -
7800 Hanson PLC ADR .77% $ 51,675
3000 Hillenbrand 1.64 110,625
4000 ITT Industries 1.39 93,500
2500 Tenneco * 1.89 127,500
----- ---------
5.69 383,300
----- ---------
Electrical Equipment -
1000 Franklin Electric .60 40,750
1000 General Electric 1.55 104,000
----- ---------
2.15 144,750
----- ---------
Foreign Telecommunications -
3000 Vodafone 1.92 129,750
----- ---------
1000 Forest, Paper & Container
Kimberly Clark 1.45 97,875
---- ---------
7000 Insurance (Life) -
Washington National 2.89 195,125
----- ---------
Insurance (Diversified) -
5000 Pioneer Financial Services 1.37 92,500
----- ---------
Media & Services
4000 Media General Class A 1.88 127,000
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- --------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Common Stocks
Technology -
1000 USRobotics* 1.17% $ 78,625
----- ---------
Telecommunication -
4000 AT&T 2.33 157,000
----- ---------
Transportation
3000 Canadian Pacific 1.22 82,500
6000 Illinois Central 3.03 204,000
----- ---------
4.25 286,500
----- ---------
Total Common Stocks
(cost $2,326,216) 38.00% $2,563,050
----- ---------
Preferred Stocks
10000 Hartford Capital 3.67% $ 247,500
Series A
6000 Lincoln National Capital 2.37 159,750
Series A, 8.75%
5000 Pacific Capital, 8.25% 1.90 128,125
4000 Travelers Capital I, 8.00% 1.50 101,000
----- ---------
Total Preferred Stocks
(cost $625,625) 9.44% $ 636,375
----- ---------
Par Value Corporate Bonds & Notes
$200,000 Bear Stearns, Note
7.500%, 12-16-16 2.94% $ 198,000
119,000 Citicorp, Note
10.500%, 02-01-16 1.81 121,844
200,000 DuPont E.I. & Co., Debenture
8.25%, 01-15-22 3.21 217,000
250,000 Ford Motor Credit, Note
7.350%, 11-7-01 3.71 250,235
100,000 General Electric Capital
8.650%, 05-01-18 1.51 101,593
200,000 Limited Inc., Debenture
7.50%, 3-15-23 2.76 186,000
300,000 Wisconsin Power & Light,
Note
9.300% 12-01-25 4.70 317,154
----- ---------
Total Corporate Bonds & Notes
(cost $1,404,040) 20.64% $1,391,826
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Growth and Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- --------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
U.S. Government Agency
$ 200,000 Federal Home Loan Mtg.
8.15%, 9-12-06 3.00% $ 202,620
300,000 Federal Home Loan Bank
8.00%, 9-18-06 4.46 300,570
250,000 Federal Home Loan Mtg.
7.05%, 11-21-11 3.71% $ 250,000
------ ---------
Total U.S. Government Agency
(cost $747,844) 11.17% $ 753,190
------ ---------
U.S. Government Securities
1,000,000 U.S. Treasury Note
6.25%, 08-15-23 14.40 971,250
------ ---------
Total U.S. Government Securities
(cost $961,875) 14.40% $ 971,250
------ ---------
Repurchase Agreements
570,954 Wilmington Trust Co.
4.5%, dated 11-29-96
due 12/2/96 secured by
$566,827 U.S. Treasury
Note, 5.75%,due 10-31-97,
maturity value $571,236
(cost $570,954) 8.47% $ 570,954
----- ---------
Total Investments
(cost $6,636,554) (A) 102.12% $6,886,645
Liabilities in Excess of Other Assets (2.12) (142,269)
------ ---------
Net Assets 100.00% $6,744,376
====== ==========
(A) Aggregate cost for federal income tax
purposes is $6,636,554.
At November 30, 1996 unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Unrealized appreciation $ 349,603
Unrealized depreciation ( 99,512)
---------
Net unrealized appreciation $ 250,091
=========
</TABLE>
* Non-Income Producing Security
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Preferred Stocks
4000 Georgia Power 1.05% $ 100,000
Series 7.75%
8000 Hartford Capital
Series A 2.08 198,000
6000 Lincoln National Capital
Series 8.75% 1.68 159,750
10000 Pacific Telesis, 7.56% 2.58 246,250
10000 Pacificorp Capital, 8.25% 2.69 256,250
8000 Travelers Capital I, 8.00% 2.12 202,000
----- ---------
Total Preferred Stocks
(cost $1,148,453) 12.20% $1,162,250
----- ---------
Par Value Corporate Bonds & Notes
Auto & Truck -
$250,000 Ford Holdings
7.35%, 11-07-11 2.62 250,234
40,000 Ford Motor Credit Co. Note
9.25%, 07-15-97 .43 40,831
100,000 Ford Motor Company 1993-A
Pass Thru 5.78%, 01-01-99 1.05 99,781
60,000 Ford Motor Credit Co. Note
8.720%, 07-22-99 .67 63,769
30,000 Ford Motor Credit Co. Note
8.000%, 01-15-99 .32 31,181
50,000 General Motors Acceptance
Corp. Deb. 7.750%, 04-15-97 .53 50,351
300,000 General Motors
Corp. Note 7.700%, 04-15-16 3.32 316,500
50,000 General Motors
Corp. Note 9.625%, 12-01-00 .59 55,773
----- ---------
9.53 908,420
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Banking -
$ 60,000 BankAmerica
Corp. Note 7.750%, 07-15-02 .67% $ 63,694
30,000 BankAmerica
Corp. Note 7.875%, 12-01-02 .34 32,147
80,000 Bankers Trust New York
Corp. Note 9.500%, 06-14-00 .92 87,950
20,000 Bankers Trust New York
Corp. Note 9.400%, 03-01-01 .23 22,206
250,000 Bankers Trust New York
Deb. 7.500%, 11-15-15 2.67 253,710
95,000 Banque Paribas New York
Note. 6.875%, 03-01-09 .97 92,194
40,000 Barclays American
Corp. Note 7.875%, 08-15-98 .43 41,312
20,000 Chase Manhattan
Note 10.125%, 11-01-00 .24 22,678
80,000 Citicorp
Note 10.500%, 02-01-16 .86 81,912
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Banking - continued
$ 40,000 First Union Corp.
Note 9.450%, 06-15-99 .45% $ 43,144
100,000 First Union Corp.
Note 9.890%, 03-13-01 1.18 112,732
20,000 Heller Financial Inc.
Note 8.000%, 12-15-98 .22 20,737
----- ---------
9.18 874,416
----- ---------
Broadcasting & Cable T.V.
50,000 Cox Communications, Inc.
Note 8.875%, 03-01-01 .57 54,727
----- ---------
Chemical (Basic) -
200,000 DuPont E. I. Note 8.250%,
1-15-22 2.28 217,000
----- ---------
Chemical (Diversified) -
80,000 ICI Wilmington
Note 9.500%, 11-15-00 .94 89,137
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Diversified Company -
$ 70,000 ITT Corp.
Note 9.875%, 04-15-97 .75% $ 71,006
30,000 ITT Corp.
Deb. 10.125%, 04-05-99 .34 32,555
----- ---------
1.09 103,561
----- ---------
Electric Utility -
50,000 Alabama Power Company
1st Mortgage
8.300%, 07-01-22 .55 52,539
50,000 Duke Power Company
1st Ref & Mortgage
8.625%, 03-01-22 .56 53,336
200,000 Oklahoma Gas & Electric
1st Mortgage
8.875%, 12-01-20 2.15 204,750
206,000 Iowa Electric Light
1st Ref & Mortgage
7.625%, 05-01-02 2.19 208,896
35,000 Mississippi Power & Light Co.
General Ref Mortgage
8.500%, 01-05-23 .39 36,785
100,000 Ohio Power Co.
Note 6.875%, 06-01-03 1.07 102,036
65,000 Southern Calif. Edison Co.
1st Mortgage
8.875%, 06-01-24 .71 67,691
70,000 Teco Energy
Note 9.220%, 10-15-97 .76 72,098
250,000 Virginia Electric & Power Co.
Note 7.50%, 06-01-23 2.63 250,937
100,000 Wisconsin Pwr & Lt Company
1st Mortgage 1.11 105,718
9.30%, 12-01-25
245,000 Wisconsin Electric Pwr
1st Mortgage 2.70 257,747
----- ---------
7.75%, 01-15-23 14.82% $1,412,533
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Food Processing -
$100,000 Quaker Oats Co.
Medium-Term
Note 9.000%, 12-17-01 1.17% $ 111,318
----- ---------
Insurance (Diversified) -
40,000 Aetna Services, Inc.
Note 8.625%, 03-01-98 .43 41,268
----- ---------
Machinery (Construction &
Mining -
200,000 Caterpillar Inc.
Note 6.810%, 08-24-99 2.14 203,900
----- ---------
Natural Gas Industry -
100,000 British Gas Co.
Note 8.750%, 03-15-98 1.09 103,437
----- ---------
Office Equipment & Supplies -
200,000 Xerox Corp. Note
7.400%, 11-21-11 2.10 200,000
----- ---------
Oil & Gas
50,000 Societe Nat. Elf Aquitaine .54 51,781
----- ---------
Note 7.750%, 05-01-99
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Paper and Forest Products -
$ 50,000 International Paper Company
Deb. 9.700%, 03-15-00 .58% $ 55,195
----- ---------
Petroleum (Integrated) -
70,000 Pennzoil Co. Note 9.625%,
11-15-99 .79 75,753
----- ---------
Retail Store Industry -
50,000 Dayton Hudson Corp. Note
10.000%, 12-01-00 .59 56,297
200,000 Limited, Deb.
7.500%, 03-15-23 1.95 186,000
30,000 Sears Roebuck & Co. Note
9.250%, 08-01-97 .32 30,675
30,000 Wal Mart Stores Note
9.100%, 07-15-00 .35 32,878
----- ---------
3.21% $ 305,850
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Securities Brokerage Industry -
$ 35,000 Bear Stearns Companies Note
9.375%, 06-01-01 .41% $ 39,052
200,000 Bear Stearns Companies Note
7.500%, 12-16-16 2.08 198,000
50,000 Lehman Bros Holdings Inc Note
7.625%, 06-15-97 .53 50,460
100,000 Lehman Bros Inc Sr Sub note
7.000%, 05-15-97 1.05 100,484
200,000 Lehman Bros Holding Inc. Note
8.500%, 05-01-07 2.31 219,874
40,000 Morgan Stanley Group Note
7.875%, 12-15-98 .43 41,437
30,000 Morgan Stanley Group Note
8.100%, 06-24-02 .34 32,339
100,000 Salomon Inc. Note
9.500%, 07-01-97 1.07 102,060
100,000 Salomon Inc. Note
7.05%, 01-15-98 1.06 101,219
40,000 Salomon Inc. Note
9.100%, 03-15-98 .45 41,538
100,000 Salomon Inc. Note
7.250%, 01-15-00 1.07 102,171
----- ---------
10.80% $1,028,634
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
Corporate Bonds & Notes
Telecommunications Service
Industry
$ 50,000 General Telephone Co. Florida
1st Mortgage,
7.500%, 08-01-02 .53% $ 50,469
150,000 GTE North, Inc.
Note,
7.625%, 05-15-26 1.63 155,555
103,000 General Telephone Co Kentucky
1st Mortgage,
7.750%, 06-01-03 1.10 104,545
100,000 Illinois Bell Telephone Co.
Deb. 8.500%, 04-22-26 1.10 104,468
250,000 U.S. West Capital Funding,
Inc., Note, 2.62 249,844
----- ---------
6.750%, 10-01-05 6.98 664,881
----- ---------
Tobacco -
100,000 Philip Morris Note
8.250%, 10-15-03 1.14 108,187
30,000 Philip Morris Note
8.750%, 12-01-96 .31 30,000
130,000 Philip Morris Note
7.750%, 05-01-99 1.41 134,508
----- ---------
2.86 272,695
----- ---------
Total Corporate Bonds & Notes
(cost $6,777,538) 71.10% $6,774,506
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Income Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Par Percent of Market Value
Value Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
U.S. Government Agency
$400,000 Federal Home Loan Bank
8.00%, 9-18-06 4.20% $ 400,760
200,000 Federal Home Loan Mtge. Corp.
6.29%, 02-07-06 2.06 196,120
200,000 Federal Home Loan Mtge. Corp.
8.15%, 09-12-06 2.13 202,620
80,000 Federal Home Loan Mtge. Corp.
8.325%, 07-15-09 .88 83,800
200,000 Federal Natl. Mtge. Assn. Deb.
8.400%, 10-25-04 2.21 210,120
305,000 Federal Home Loan Mtge. Corp.
7.05%, 11-21-11 3.20 305,000
------ ---------
Total U.S. Government Agency
(cost $1,400,494) 14.68% $1,398,420
------ ---------
Repurchase Agreements
284,068 Wilmington Trust Co. dated 11-29-
96, due 12-2-96, 4.5%, secured by
$282,020 U.S. Treasury Notes,
5.75%, due 10-31-99, maturity
value $284,208 2.98% $ 284,068
(cost $284,068) ------ ---------
Total Investments
(cost $9,610,553) (A) 100.96% $9,619,244
Liabilities in Excess of Other Assets (.96) (90,479)
------ ---------
Net Assets 100.00% $9,528,765
====== =========
(A) Aggregate cost for federal income tax purposes is $9,610,553.
At November 30, 1996, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Unrealized appreciation $ 115,873
Unrealized depreciation ( 107,182)
--------
Net unrealized appreciation $ 8,691
==========
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
General Equity Funds
Aggressive Growth -
676 Strong Opportunity 1.75% $ 26,206
2138 Twentieth Century Ultra 4.49 67,355
2358 Wasatch Aggressive Equity 3.77 56,616
----- ---------
10.01 150,177
----- ---------
Balanced -
1080 Columbia Balanced 1.59 23,870
507 Dodge & Cox Balanced 2.09 31,310
----- ---------
3.68 55,180
----- ---------
Corporate - Investment Grade -
3830 Harbor Bond - 2.95 44,238
----- ---------
Corporate - High Yield -
4330 Federated High Yield Trust 2.67 40,013
2373 Fidelity Capital & Income 1.47 22,114
3530 Strong High Yield 2.69 40,348
----- ---------
6.83 102,475
----- ---------
Growth -
945 Fidelity Stock Selection 1.67 25,040
1701 Longleaf Partners 2.94 44,085
564 Nicholas 2.62 39,354
1088 Oakmark 2.51 37,661
1994 Soundshore 3.20 47,928
1807 Steinroe Special 2.37 35,619
----- ---------
15.31 229,687
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
General Equity Funds - continued
Growth/Income -
995 Babson Value 2.56% $ 38,460
335 Dodge & Cox Stock 1.85 27,712
780 Mutual Beacon 2.17 32,484
1174 Neuberger & Berman Guardian 2.14 32,039
1640 Pelican 1.75 26,323
----- ---------
10.47 157,018
----- ---------
Income -
2093 Berwyn Income 1.80 27,001
932 Lindner Dividend 1.77 26,618
1662 Gabelli Equity Income 1.66 24,878
----- ---------
5.23 78,497
----- ---------
Small Company -
1606 Heartland Value 3.52 52,764
1493 Meridian 3.08 46,199
2034 PBGH Growth 3.65 54,801
1022 Parkstone Small Cap.
Series "B" 2.27 33,987
----- ---------
12.52% $ 187,751
----- ---------
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
International Equity Funds
Foreign Equity -
1185 Managers International
Equity 3.53% $ 53,011
6098 Twentieth Century
International Equity 3.55 53,238
------ ----------
7.08 106,249
------ ----------
Global Equity -
2340 Founders Worldwide Growth 3.44 51,682
1479 Janus Worldwide Fund 3.54 53,159
------ ----------
6.98 104,841
------ ----------
International Bond -
4112 T. Rowe Price International Bond 2.92 43,839
3971 Scudder International Bond 3.00 44,995
4157 Warburg Global Fixed Income 3.15 47,227
----- ---------
9.07 136,061
----- ---------
Pacific Equity -
6512 T. Rowe Price - New Asia 4.05 60,694
------ ----------
Total Mutual Funds
(cost $1,268,403) 94.18% $1,412,868
------ ---------
Repurchase Agreements
$49,655 Wilmington Trust, 4 1/2% dated 11-
29-96 due 12/2/96, secured by
$49,297 U.S. Treasury Note, 5.75%
due 10-31-97, maturity value $49,679 3.31% $ 49,655
(cost $49,655) ----- ---------
Total Investments
(cost $1,318,058) (A) 97.49% $1,462,523
Other Assets Less Liabilities 2.51 37,682
------ ---------
Net Assets 100.00% $1,500,205
====== =========
</TABLE>
See accompanying notes to financial statements
<PAGE>
The Crowley Diversified Management Portfolio
PORTFOLIO OF INVESTMENTS
(Continued)
November 30, 1996
<TABLE>
<CAPTION>
Number of Percent of Market Value
Shares Investments Net Assets (Note 1-A)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
(A) Aggregate cost for federal income tax purposes is $1,318,058.
At November 30, 1996 unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Unrealized appreciation $ 146,792
Unrealized depreciation ( 2,327)
----------
Net unrealized appreciation $ 144,465
==========
</TABLE>
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth
And Income Income Diversified
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
ASSETS
Investments at market value
(Identified cost $6,636,554,
$9,610,553 and $1,318,058,
respectively) $ 6,886,645 $ 9,619,244 $ 1,462,523
Cash -- -- 38,655
Receivable for
Interest 60,083 147,293 89
Dividends 8,349 -- --
----------- ----------- -----------
Total assets 6,955,077 9,766,537 1,501,267
----------- ----------- -----------
LIABILITIES
Cash overdraft 5,628 32,321 --
Investment securities payable 198,000 198,000 --
Accrued expenses 7,073 7,451 1,062
----------- ----------- -----------
Total liabilities 210,701 237,772 1,062
----------- ----------- -----------
NET ASSETS
(500 million shares of $.01 par value
common stock authorized; 605,470,
874,008 and 123,523 shares issued
and outstanding, respectively) $ 6,744,376 $ 9,528,765 $ 1,500,205
=========== =========== ===========
NET ASSET VALUE
Offering and redemption price per share
(Net assets/shares outstanding) $ 11.14 $ 10.90 $ 12.15
=========== =========== ===========
At November 30, 1996, net assets consisted of:
Paid-in capital $ 6,180,327 $ 9,234,970 $ 1,297,396
Accumulated undistributed net
investment income 125,320 492,825 1,638
Accumulated undistributed net
realized gains (losses) 188,638 (207,721) 56,706
Net unrealized appreciation
of investments 250,091 8,691 144,465
----------- ----------- -----------
$ 6,744,376 $ 9,528,765 $ 1,500,205
=========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF OPERATIONS
Year ended November 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth
And Income Income Diversified
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income $ 183,452 $ 631,147 $ 1,434
Dividend income 83,477 28,506 30,605
Other income 1,117 -- 258
--------- --------- ---------
Total income 268,046 659,653 32,297
--------- --------- ---------
EXPENSES
Investment advisory fees (Note 2) 66,981 55,642 12,059
Shareholder servicing fees (Note 2) 28,820 37,224 5,426
Legal and audit fees 17,050 15,150 5,018
Custodian fees 6,537 12,687 800
Registration fees 4,311 2,875 2,762
Printing and postage 1,668 1,772 362
Insurance 1,300 1,300 250
Directors fees 150 150 75
Miscellaneous 3,576 2,537 --
--------- --------- ---------
Total expenses 130,393 129,337 26,752
--------- --------- ---------
Investment income - net 137,653 530,316 5,545
--------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from
security transactions 191,740 (143,224) 30,015
Captial gain distribution from -- -- 26,533
regulated investment companies
Change in unrealized appreciation
of investments for the year 21,978 (1,524) 95,517
--------- --------- ---------
Net gain (loss) on investments 213,718 (144,748) 152,065
--------- --------- ---------
Net increase in net assets
resulting from operations $ 351,371 $ 385,568 $ 157,610
========= ========= =========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY GROWTH PORTFOLIO GROUP, INC.
CROWLEY GROWTH AND INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended November 30, 1996 and 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
OPERATIONS
Investment income - net $ 137,653 $ 183,314
Net realized gain on investments 191,740 283,957
Change in unrealized appreciation 21,978 212,856
----------- -----------
Net increase in net assets resulting from operations 351,371 680,127
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net
($.32 and $.12 per share) (183,435) (61,711)
From net realized gains on investments
($.50 and $.40 per share) (286,617) (205,702)
CAPITAL SHARE TRANSACTIONS (a) 318,132 635,837
----------- -----------
Total increase 199,451 1,048,551
NET ASSETS
Beginning of year 6,544,925 5,496,374
----------- -----------
End of year
(including undistributed investment income of
$125,320 and $171,102, respectively) $ 6,744,376 $ 6,544,925
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share activity follows:
1996 1995
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 34,760 $ 373,438 81,977 $ 881,682
Shares issued in
reinvestment of distributions 44,303 470,052 26,529 267,413
----------- ----------- ----------- -----------
79,063 843,490 108,506 1,149,095
Shares redeemed (49,012) (525,358) (47,196) (513,258)
----------- ----------- ----------- -----------
Net increase 30,051 $ 318,132 61,310 $ 635,837
=========== =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY GROWTH PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended November 30, 1996 and 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
OPERATIONS
Investment income - net $ 530,316 $ 501,522
Net realized (loss) on investments (143,224) (28,399)
Change in unrealized appreciation (1,524) 278,509
----------- -----------
Net increase in net assets resulting from operations 385,568 751,632
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net
($.62 and $.63 per share) (502,187) (385,139)
CAPITAL SHARE TRANSACTIONS (a) 704,926 1,919,980
----------- -----------
Total increase 588,307 2,286,473
NET ASSETS
Beginning of year 8,940,458 6,653,985
----------- -----------
End of year
(including undistributed investment income
of $492,825 and $464,696, respectively) $ 9,528,765 $ 8,940,458
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share activity follows:
1996 1995
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 124,539 $ 1,325,485 237,444 $ 2,505,734
Shares issued in
reinvestment of distributions 47,646 502,187 38,170 385,139
----------- ----------- ----------- -----------
172,185 1,827,672 275,614 2,890,873
Shares redeemed (105,211) (1,122,746) (91,003) (970,893)
----------- ----------- ----------- -----------
Net increase 66,974 $ 704,926 184,611 $ 1,919,980
=========== =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Year ended November 30, 1996 and the period April 1, 1995* to November 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
OPERATIONS
Investment income (loss) - net $ 5,545 $ (396)
Net realized gain on investments 30,015 159
Capital gain distribution from regulated
investment companies 26,533 --
Change in unrealized appreciation 95,517 48,948
----------- -----------
Net increase in net assets resulting from operations 157,610 48,711
DISTRIBUTIONS TO SHAREHOLDERS
From investment income - net ($.04 per share) (3,511) --
CAPITAL SHARE TRANSACTIONS (a) 383,968 913,427
----------- -----------
Total increase 538,067 962,138
NET ASSETS
Beginning of year 962,138 --
----------- -----------
End of year
(Including undistributed investment income
of $1,638 and $(396), respectively) $ 1,500,205 $ 962,138
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share activity follows:
1996 1995
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 39,599 $ 450,041 91,820 $ 933,857
Shares issued in
reinvestment of distributions 325 3,511 -- --
--------- --------- --------- ---------
39,924 453,552 91,820 933,857
Shares redeemed (6,260) (69,584) (1,961) (20,430)
--------- --------- --------- ---------
Net increase 33,664 $ 383,968 89,859 $ 913,427
========= ========= ========= =========
</TABLE>
* Effective date of Portfolio's initial registration statement under the
Securities Act of 1993, as amended.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY GROWTH AND INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year $ 11.37 $ 10.69 $ 10.45 $ 10.19 $ 9.94
---------- ---------- ---------- ---------- ----------
INCOME FROM
INVESTMENT OPERATIONS
Net investment income .23 .32 .12 .11 .17
Net gains on securities (both
realized & unrealized) .36 .88 .63 .18 .32
---------- ---------- ---------- ---------- ----------
Total from
investment operations .59 1.20 .75 .29 .49
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends (from net
investment income) (.32) (.12) (.11) (.03) (.17)
Distributions (from
realized capital gains) (.50) (.40) (.40) ( --) (.07)
---------- ---------- ---------- ---------- ----------
Total distributions (.82) (.52) (.51) (.03) (.24)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE
End of year $ 11.14 $ 11.37 $ 10.69 $ 10.45 $ 10.19
========== ========== ========== ========== ==========
TOTAL RETURN 5.55% 11.85% 7.41% 2.85% 4.93%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $ 6,744 $ 6,545 $ 5,496 $ 4,593 $ 4,440
Ratio of expenses to
average net assets 1.95% 1.93% 1.85% 1.61% 1.52%
Ratio of net investment
income to average
net assets 2.06% 3.00% 1.10% 1.00% 1.72%
Portfolio turnover rate 182.41% 118.08% 107.37% 243.85% 178.78%
Average commission rate
paid per share $ .05 -- -- -- --
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year $ 11.08 $ 10.69 $ 11.57 $ 10.58 $ 10.48
---------- ---------- ---------- ---------- ----------
INCOME FROM
INVESTMENT OPERATIONS
Net investment income .59 .65 .61 .65 .61
Net gains (losses) on
securities (both realized
and unrealized) (.15) .37 (.76) .40 .22
---------- ---------- ---------- ---------- ----------
Total from
investment operations .44 1.02 (.15) 1.05 .83
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends (from net
investment income) (.62) (.63) (.66) (.06) (.61)
Distributions (from realized
capital gains) -- ( --) (.07) ( --) (.12)
---------- ---------- ---------- ---------- ----------
Total distributions (.62) (.63) (.73) (.06) (.73)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE
End of year $ 10.90 $ 11.08 $ 10.69 $ 11.57 $ 10.58
========== ========== ========== ========== ==========
TOTAL RETURN 4.16% 10.12% (1.43)% 9.97% 7.69%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $ 9,529 $ 8,940 $ 6,654 $ 5,423 $ 4,133
Ratio of expenses to
average net assets 1.39% 1.43% 1.37% 1.23% 1.20%
Ratio of net investment
income to average
net assets 5.62% 6.43% 6.28% 6.27% 6.11%
Portfolio turnover rate 66.18% 31.60% 14.45% 1.17% 45.00%
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
April 1, 1995(a)
Year Ended To
November 30, November 30,
1996 1995
<S> <C> <C>
NET ASSET VALUE
Beginning of year $ 10.71 $ 10.00
------------ ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .05 --
Net gains on securities
(both realized & unrealized) 1.43 .71
------------ ----------
Total from investment operations 1.48 .71
------------ ----------
LESS DISTRIBUTIONS
Dividends (from net investment income) (.04) --
Distributions (from realized capital gains) -- --
------------ ----------
Total distributions (.04) --
------------ ----------
NET ASSET VALUE
End of year $ 12.15 $ 10.71
============ ==========
TOTAL RETURN 13.87% 7.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $ 1,500 $ 962
Ratio of expenses to average net assets 2.22% 2.06%
Ratio of net investment income (loss)
to average net assets .46% (.09)% (b)
Portfolio turnover rate 20.69% --
<FN>
(a) Effective date of the Portfolio's initial registration under the Securities
Act of 1933, as amended.
(b) Annualized.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
(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.
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
November 30, 1996
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.
<PAGE>
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
November 30, 1996
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 $28,820, $37,224 and $5,426 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 $10,316,821 and $10,611,141, respectively, in the Growth
Portfolio and Income Portfolio, $6,550,700 and $5,733,075, respectively, in
the Income Portfolio and $627,774 and $232,552, respectively, in the
Crowley Diversified Management Portfolio.
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