THE CROWLEY PORTFOLIO GROUP, INC.
FINANCIAL STATEMENTS
AND REPORT OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
NOVEMBER 30, 1999
THE CROWLEY PORTFOLIO GROUP, INC.
THE CROWLEY INCOME PORTFOLIO
THE CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
ANNUAL REPORT DATED
NOVEMBER 30, 1999
Dear Shareholder:
We are pleased to present you with the Annual Report for The Crowley Portfolio
Group, Inc. The report contains information regarding both The Crowley Income
Portfolio and The Crowley Diversified Management Portfolio. The Portfolios have
combined assets exceeding 18.4 million dollars as of November 30, 1999. There
are currently 333 active accounts.
The Crowley Diversified Management Portfolio had a net asset value of $14.40 per
share as of November 30, 1999 and had a total return of 14.74% for the period
November 30, 1998 through November 30, 1999. The Crowley Diversified Portfolio
grew from approximately $6.2 million dollars in net assets to approximately $7.1
million dollars in net assets at year end. As of November 30, 1999 The Crowley
Diversified Portfolio was approximately 79.61% invested in a portfolio of 27
mutual funds diversified over 7 different investment classifications. The
largest portion of the Portfolio's assets was invested in funds included in the
Growth category (31.99%), followed by Growth/Income (18.31%), Balanced (8.29%),
Aggressive Growth (7.39%), Global Equity (6.57%), Foreign Equity (5.16%), and
Technology (1.90%). Management currently intends to invest the Portfolio's
assets with a greater allocation to stocks, while continuing to use mutual funds
as the Portfolio's primary investment vehicle.
The Crowley Income Portfolio had a net asset value of $10.56 per share as of
November 30, 1999 and had a total return of .92% for the period November 30,
1998 through November 30, 1999. As of November 30, 1999 The Crowley Income
Portfolio had investments in 61 individual issues. No individual investment
comprised more than 5% of the Portfolio, while corporate bonds and notes
comprised 76.67% of the overall portfolio. The remaining assets were invested in
preferred stocks (16.94%), U.S. government agency bonds (2.18%) and the balance
in cash and cash equivalents (4.21%). The Crowley Income Portfolio continues to
be invested to maximize current income, consistent with prudent risk. Since the
Portfolio's inception, no investment held in The Crowley Income Portfolio has
ever failed to make a coupon or interest payment or failed to be redeemed upon
maturity. During the fiscal year ending November 30, 1999 there was a
significant rise in interest rates. Individual securities within the portfolio
reflected this rise in interest rates by trading at a lower market value,
causing a negative effect on the Portfolio's total return. Current income
remained high over the period and were reflected in the December 31 year-end
dividend distribution. Given the market values of the underlying securities as
of November 30, 1999, it is anticipated that the yield on the Crowley Income
Portfolio will increase for the upcoming year. If interest rates stabilize
during the upcoming fiscal year, then the investment manager believes that total
return of the Portfolio should increase significantly compared to the previous
year.
The enclosed report has been audited by the Fund's Independent Accountants and
contains a list of the Portfolios' investments as of November 30, 1999.
Sincerely,
Robert A. Crowley, CFA
President
January 29, 2000
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 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, 1999, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the 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, 1999 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Crowley Income Portfolio and The Crowley Diversified Management Portfolio as of
November 30, 1999, the results of their operations for the year then ended,
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for the periods referred to above, in conformity
with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 5, 2000
THE CROWLEY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
CORPORATE BONDS & NOTES
-----------------------
<S> <C> <C> <C>
Auto & Truck
$ 500,000 Ford Holdings
7.350%, 11/07/11 4.31% $ 487,600
300,000 General Motors
7.700%, 04/15/16 2.70 305,670
------- -------------
7.01 793,270
------- -------------
Banking
60,000 BankAmerica
7.750%, 07/15/02 .54 61,331
30,000 BankAmerica
7.875%, 12/01/02 .27 30,834
20,000 Bankers Trust New York
9.400%, 03/01/01 .18 20,522
95,000 Banque Paribas New York
6.875%, 03/01/09 .80 90,725
100,000 First Union Corp.
9.890%, 03/13/01 .92 103,959
------- -------------
2.71 307,371
------- -------------
Broadcasting & Cable T.V.
50,000 Cox Communications, Inc.
8.875%, 03/01/01 .45 51,203
------- -------------
Chemical (Basic)
400,000 DuPont E.I.
8.250%, 1/15/22 3.67 415,060
------- -------------
Computers & Periphals
100,000 Unisys Corp.
7.875%, 04/01/08 .88 99,250
------- -------------
Diversified Company
218,000 American Standard, Inc.
9.250%, 12/01/16 1.92 216,910
107,000 Mark IV Industries
7.500%, 09/01/07 .89 100,848
------- -------------
2.81 317,758
------- -------------
Drug
200,000 ICN Pharmaceutical,
9.250%, 08/15/05 1.70 192,740
------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<TABLE>
<CAPTION>
THE CROWLEY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
November 30, 1999
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
CORPORATE BONDS & NOTES
-----------------------
Electric Utility
$ 510,000 Appalachian Power Company
8.500%, 12/01/22 4.70% $ 531,675
250,000 Duquesne Lighting Company
7.625%, 04/15/23 2.28 257,500
217,000 Houston Lighting & Power
7.750%, 03/15/23 1.95 220,798
400,000 Wisconsin Power & Light Company
1st Mortgage, 9.300%, 12/01/25 3.71 419,372
245,000 Wisconsin Electric Power
1st Mortgage, 7.750%, 01/15/23 2.25 254,800
------- -------------
14.89 1,684,145
------- -------------
Electrical Equipment Industry
100,000 General Electric Capital Corp.
Variable Rate, 05/01/18 .88 100,046
------- -------------
Entertainment
300,000 Paramount Communications
7.500%, 07/15/23 2.65 300,000
100,000 Walt Disney Co.
6.500%, 05/27/14 .81 92,125
------- -------------
3.46 392,125
------- -------------
Financial Services
180,000 Advanta Medium Term Note
7.00%, 05/01/01 1.53 172,800
250,000 Franchise Finance Corp.
6.86%, 06/15/07 2.06 232,500
100,000 Leucadia Capital Trust I,
8.65%, 01/15/27 .76 86,000
250,000 Leucadia National Corp.
7.75%, 08/15/13 2.25 255,000
200,000 Source One Mortgage Services Corp.,
9.00%, 06/01/12 1.99 225,000
200,000 Trenwick Capital Trust,
8.82%, 02/01/37 1.61 182,750
------- -------------
10.20 1,154,050
------- -------------
Food Processing
100,000 Quaker Oats Co.
9.000%, 12/17/01 .92 104,126
------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
<TABLE>
<CAPTION>
THE CROWLEY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
November 30, 1999
- --------------------------------------------------------------------------------
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
CORPORATE BONDS & NOTES
-----------------------
<S> <C> <C> <C>
Grocery Store
$ 350,000 Great Atlantic & Pacific Tea
7.750%, 04/15/07 2.97% $ 336,000
------- -------------
Hotel/Gaming Industry
250,000 HMH Properties, Inc., Series B
7.875%, 08/01/08 2.00 226,250
------- -------------
Insurance (Diversified)
185,000 Aetna Services, Inc.
7.625%, 08/15/26 1.58 178,525
------- -------------
Life/Health Insurance
130,000 Amerus Capital I Bond
8.850%, 02/01/27 1.11 125,287
------- -------------
Office Equipment & Supplies
87,000 Ikon Office Solutions, Inc.
6.750%, 12/01/25 .66 74,167
------- -------------
Paper and Forest Products
50,000 International Paper Company
9.700%, 03/15/00 .45 50,460
100,000 Pope & Talbot
8.375%, 06/01/13 .86 97,500
------- -------------
1.31 147,960
------- -------------
Retail Building Supply Industry
300,000 Loews Corp.
7.625%, 06/01/23 2.68 303,000
------- -------------
Retail Store Industry
200,000 K Mart Corp., Medium Term Notes
8.850%, 12/15/11 1.86 210,250
100,000 K Mart Corp.
Pass Thru Sec K-1 8.990%, 07/05/10 .94 106,000
------- -------------
2.80 316,250
------- -------------
Savings & Loan Industry
200,000 Great Western Financial
8.206%, 02/01/27 1.79 202,000
------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
CORPORATE BONDS & NOTES
-----------------------
<S> <C> <C> <C>
Securities Brokerage Industry
$ 200,000 Bear Stearns Companies
7.000%, 04/02/18 1.58% $ 178,280
200,000 Lehman Bros Holding Inc.
8.500%, 08/01/07 1.84 208,250
30,000 Morgan Stanley Group
8.100%, 06/24/02 .27 30,839
------- -------------
3.69 417,369
------- -------------
Telecommunications Service Industry
150,000 AT&T Corp.
8.125%, 07/15/24 1.37 154,875
150,000 GTE North, Inc.
7.625%, 05/15/26 1.31 148,875
100,000 ITT
6.250%, 11/15/00 .87 98,000
250,000 Media One Group
6.750%, 10/01/05 2.16 244,140
------- -------------
5.71 645,890
------- -------------
Trucking/Transportation Leasing
100,000 Interpool, Inc.
7.200%, 08/01/07 .79 89,750
------- -------------
Total Corporate Bonds & Notes
(Cost $8,862,381) 76.67 8,673,592
------- -------------
Number
of Shares
PREFERRED STOCKS
----------------
4,000 AT&T Capital, 8.25% .88% $ 99,000
4,000 AT&T Capital Senior, 8.125% .86 97,252
3,000 Canadian Occidental Petroleum, 9.75% .84 95,000
8,000 Citigroup Capital I, 8.00% 1.75 198,504
4,000 Conseco, 8.70% .76 86,000
4,000 Georgia Power, Series 7.75% .81 92,000
8,000 Hartford Capital, Series A, 7.70% 1.57 178,000
10,000 Hercules Trust I, 9.42% 1.94 219,380
6,000 Lincoln National Capital, Series 8.75% 1.31 148,500
4,000 Nova Chemical, Ltd., 9.50% .85 96,252
10,000 Pacific Telesis, 7.56% 2.06 232,500
10,000 Pacificorp Capital, 8.25% 2.08 235,000
6,000 Transcanada Pipe Line Ltd., 8.25% 1.23 138,936
------- -------------
Total Preferred Stocks
(Cost $2,044,868) 16.94 1,916,324
------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
U.S. GOVERNMENT AGENCY
----------------------
<S> <C> <C> <C>
$1,000,000 Federal Home Loan Bank
Zero Coupon, 07/28/17 2.18% $ 247,000
------ -------------
Total U.S. Government
Agency (Cost $250,288) 2.18 247,000
------ -------------
Total Investments (Cost $11,157,537) (a) 95.79% 10,836,916
Other Assets Less Liabilities 4.21% 476,156
------ -------------
Net Assets 100.00% $ 11,313,072
====== =============
</TABLE>
(a) Aggregate cost for federal
income tax purposes is $11,157,537.
<TABLE>
<CAPTION>
At November 30, 1999, unrealized
appreciation (depreciation)of securities
for federal income tax purposes is as follows:
<S> <C> <C>
Unrealized appreciation $ 61,392
Unrealized depreciation (382,013)
-----------
Net unrealized depreciation $ (320,621)
===========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
GENERAL EQUITY FUNDS
--------------------
<S> <C> <C> <C>
Aggressive Growth
5,303 Strong Opportunity 3.48% $ 247,646
6,789 Twentieth Century Ultra 3.91 278,067
------- -------------
7.39 525,713
------- -------------
Balanced
8,391 Columbia Balanced 2.89 205,318
2,477 Dodge & Cox Balanced 2.39 170,110
9,614 Janus Balanced 3.01 213,729
------- -------------
8.29 589,157
------- -------------
Growth
4,203 Columbia Growth 2.93 208,657
7,455 Dreyfus Disciplined 4.38 311,634
5,804 Fidelity Stock Selection 2.69 191,316
4,956 Harbor Capital Appreciation 3.42 243,157
6,532 Janus Mercury 3.63 258,197
7,790 Longleaf Partners 2.28 161,870
1,967 Nicholas 2.21 156,835
3,053 T. Rowe Price Blue Chip 1.48 105,252
5,407 T. Rowe Price Mid Cap 2.89 205,245
5,990 Vanguard U.S. Growth 3.61 256,432
6,380 Warburg Capital Appreciation 2.47 175,311
------- -------------
31.99 2,273,906
------- -------------
Growth/Income
7,653 American Century Growth & Income 3.47 246,516
4,134 Babson Value 2.67 190,068
2,209 Dodge & Cox Stock 3.16 224,767
13,177 Pelican 2.84 202,270
8,540 Steinroe Growth & Income 3.21 228,020
5,857 Vanguard Growth & Income 2.96 210,442
------- -------------
18.31 1,302,083
------- -------------
Technology
2,121 T. Rowe Price Science & Technology 1.90 134,960
------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Percent of Value
Par Value Net Assets (Note 1-A)
--------- ----------- ----------
INTERNATIONAL EQUITY FUNDS
--------------------------
<S> <C> <C> <C>
Foreign Equity
3,002 Managers International Equity 2.39% $ 170,007
15,125 Twentieth Century International Equity 2.77 196,922
------- -------------
5.16 366,929
------- -------------
Global Equity
6,942 Founders Worldwide Growth 2.75 195,722
4,026 Janus Worldwide 3.82 271,539
------- -------------
6.57 467,261
------- -------------
Total Investments (Cost $4,926,061) (a) 79.61% 5,660,009
Other Assets Less Liabilities 20.39% 1,449,278
------- -------------
Net Assets 100.00% $ 7,109,287
======= =============
</TABLE>
(a) Aggregate cost for federal
income tax purposes is $4,926,061.
<TABLE>
<CAPTION>
At November 30, 1999 unrealized
appreciation (depreciation)of securities
for federal income tax purposes is as follows:
<S> <C> <C>
Unrealized appreciation $ 793,160
Unrealized depreciation (59,212)
----------
Net unrealized appreciation $ 733,948
==========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Diversified
Income Management
Portfolio Portfolio
--------- -----------
<S> <C> <C>
ASSETS
Investments at market value
(Identified cost $11,157,537 and $4,926,061, (Note 1) $10,836,916 $5,660,009
Cash 253,211 1,449,385
Dividends and interest receivable 223,064 -
----------- ----------
Total assets 11,313,191 7,109,394
----------- ----------
LIABILITIES
Accrued expenses 119 107
----------- ----------
NET ASSETS
(500 million shares of $.01 par value common stock
authorized; 1,071,320 and 493,805 shares issued
and outstanding, respectively) $11,313,072 $7,109,287
=========== ==========
NET ASSET VALUE, OFFERING AND REPURCHASE
PRICE PER SHARE
($11,313,072 / 1,071,320 shares)
($7,109,287 / 493,805 shares) $10.56 $14.40
====== ======
NET ASSETS
At November 30, 1999, net assets consisted of:
Paid-in capital $11,271,633 $6,275,045
Undistributed net investment income 655,415 13,346
Accumulated net realized gain (loss) on investments (293,355) 86,948
Net unrealized appreciation (depreciation) (320,621) 733,948
----------- ----------
$11,313,072 $7,109,287
=========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
STATEMENT OF OPERATIONS
Year ended November 30, 1999
<TABLE>
<CAPTION>
Diversified
Income Management
Portfolio Portfolio
--------- -----------
<S> <C> <C>
INVESTMENT INCOME
Interest income $ 748,066 $ 8,805
Dividends 154,266 151,480
----------- -----------
Total income 902,332 160,285
----------- -----------
EXPENSES
Investment advisory fees (Note 2) 71,535 66,941
Transfer agent fees (Note 2) 49,547 29,521
Professional fees 29,286 16,225
Custody fees 3,806 1,200
Directors' fees 2,000 8,000
Miscellaneous 7,155 -
----------- -----------
Total expenses 163,329 121,887
----------- -----------
Net investment income 739,003 38,398
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss from security transactions (52,727) (230,665)
Capital gain distributions from regulated investment companies - 317,139
Change in unrealized appreciation (depreciation) of investments (574,991) 792,579
----------- -----------
Net gain (loss) on investments (627,718) 879,053
----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 111,285 $ 917,451
=========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended November 30, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 739,003 $ 611,531
Net realized gain (loss) on investments (52,727) 14,114
Increase (decrease) in unrealized appreciation of investments (574,991) 123,347
-------------- -------------
Net increase in net assets resulting from operations 111,285 748,992
Distributions to shareholders
Net investment income
($0.59 and $.68 per share, respectively) (638,573) (569,758)
Capital share transactions (a)
Increase (decrease) in net assets resulting from capital
share transactions (139,524) 2,427,296
-------------- -------------
Total increase (decrease) in net assets (666,812) 2,606,530
NET ASSETS
Beginning of year 11,979,884 9,373,354
-------------- -------------
End of year
(Including undistributed net investment income of
$655,415 and $554,985, respectively) $ 11,313,072 $ 11,979,884
============== =============
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share activity follows:
Year Ended Year Ended
November 30, 1999 November 30, 1998
----------------------- ---------------------
Shares Value Shares Value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Shares sold 55,154 $ 580,801 287,143 $ 3,031,209
Shares issued in reinvestment of distributions 60,643 638,573 54,837 569,758
------- -------------- ------- -------------
115,797 1,219,374 341,980 3,600,967
Shares redeemed (128,373) (1,358,898) (109,884) (1,173,671)
------- -------------- ------- -------------
Net increase (decrease) (12,576) $ (139,524) 232,096 $ 2,427,296
======= ============== ======= =============
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended November 30, 1999 and 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 38,398 $ 50,711
Net realized loss on investments (230,665) (9,695)
Capital gain distributions from regulated
investment companies 317,139 223,741
Increase (decrease) in unrealized appreciation of investments 792,579 (335,574)
------------- ------------
Net increase (decrease) in net assets
resulting from operations 917,451 (70,817)
Distributions to shareholders
Net investment income
($0.13 and $.08 per share, respectively) (61,879) (13,884)
From net realized gains on investments
($0.45 and $.32 per share, respectively) (214,198) (55,535)
Capital share transactions (a)
Increase in net assets resulting from capital share transactions 223,129 4,145,151
------------- ------------
Total increase in net assets 864,503 4,004,915
NET ASSETS
Beginning of year 6,244,784 2,239,869
------------- ------------
End of year
(Including undistributed net investment income of
$13,346 and $36,827, respectively) $ 7,109,287 $ 6,244,784
============= ============
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share activity follows:
Year Ended Year Ended
November 30, 1999 November 30, 1998
-------------------- ------------------
Shares Value Shares Value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Shares sold 16,896 $ 226,794 311,457 $ 4,270,555
Shares issued in reinvestment of distributions 21,237 276,077 5,514 69,419
------ ----------- ------- ------------
38,133 502,871 316,971 4,339,974
Shares redeemed (20,662) (279,742) (14,618) (194,823)
------ ----------- ------- ------------
Net increase 17,471 $ 223,129 302,353 $ 4,145,151
====== ============ ======= ============
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY INCOME PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30,
--------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year $11.05 $11.00 $10.90 $11.08 $10.69
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .69 .59 .69 .59 .65
Net gains (losses) on securities
(both realized and unrealized) (.59) .14 .06 (.15) .37
------ ------ ------ ------ ------
Total from investment operations .10 .73 .75 .44 1.02
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends (from net investment income) (.59) (.68) (.65) (.62) (.63)
Distributions (from realized capital gains) - - - - -
------ ------ ------ ------ ------
Total distributions (.59) (.68) (.65) (.62) (.63)
------ ------ ------ ------ ------
NET ASSET VALUE
End of year $10.56 $11.05 $11.00 $10.90 $11.08
====== ====== ====== ====== ======
TOTAL RETURN .92% 7.03% 7.34% 4.16% 10.12%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000 omitted) $11,313 $11,980 $9,373 $9,529 $8,940
Ratio of expenses to average net assets 1.36% 1.35% 1.39% 1.39% 1.43%
Ratio of net investment income to average net assets 6.17% 5.70% 6.22% 5.62% 6.43%
Portfolio turnover rate 27.13% 44.77% 22.81% 66.18% 31.60%
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
CROWLEY DIVERSIFIED MANAGEMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
April 1, 1995 (a)
To
Year Ended November 30, November 30,
------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 13.11 $ 12.87 $ 12.15 $10.71 $ 10.00
------- ------- ------- ------ -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .08 .16 .17 .05 -
Net gains on securities
(both realized and unrealized) 1.79 .48 1.17 1.43 .71
------- ------- ------- ------ -------
Total from investment operations 1.87 .64 1.34 1.48 .71
------- ------- ------- ------ -------
LESS DISTRIBUTIONS
Dividends (from net investment income) (.13) (.08) (.18) (.04) -
Distributions (from realized capital gains) (.45) (.32) (.44) - -
------- ------- ------- ------ -------
Total distributions (.58) (.40) (.62) (.04) -
------- ------- ------- ------ -------
NET ASSET VALUE
End of period $ 14.40 $ 13.11 $ 12.87 $12.15 $ 10.71
======= ======= ======= ====== =======
TOTAL RETURN 14.74% 5.10% 11.64% 13.87% 7.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $7,109 $6,245 $2,240 $1,500 $962
Ratio of expenses to average net assets 1.82% 1.88% 1.87% 2.22% 2.06%(b)
Ratio of net investment income (loss)
to average net assets .57% 1.11% 1.08% .46% (.09)%(b)
Portfolio turnover rate 23.81% 4.51% - 20.69% -
</TABLE>
(a) Effective date of the Portfolio's initial registration under the
Securities Act of 1933, as amended.
(b) Annualized.
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See accompanying notes to financial statements
THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
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(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Crowley Portfolio Group, Inc. (the "Fund") is an open-end diversified
investment company currently offering two series of shares: The Crowley
Income Portfolio, and The Crowley Diversified Management Portfolio (each a
"Portfolio").
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 regulated investment companies 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, 1999, the Income Portfolio had a capital loss
carryforward for Federal income tax purposes of approximately $293,400, of
which $22,000 expires in the year 2002, $28,400 in 2003, $143,200 in 2004,
$47,000 in 2005 and $52,800 in 2006.
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 reporting period. Actual results could differ from
those estimates.
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THE CROWLEY PORTFOLIO GROUP, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
November 30, 1999
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(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 .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 Agreement.
The Crowley Financial Group, Inc. ("TCFG") serves as the Portfolio
shareholders' servicing agent. As shareholder servicing agent, TCFG will
act as the Transfer, Dividend Disbursing and Redemption Agent to the
Portfolios. As compensation for its services, TCFG receives a fee computed
daily and payable monthly, at the annualized rate of .40% of the average
daily net assets of each Portfolio. During the year ended November 30,
1999, TCFG earned fees of $49,547 and $29,521 from the 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 and The Crowley Financial Group, Inc.
(3) PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short-term investments,
aggregated $3,157,172 and $3,054,163, respectively, in the Income Portfolio
and $1,500,000 and $2,984,576, respectively, in the Diversified Management
Portfolio.
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