ANCHOR
STRATEGIC
ASSETS
TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
(UNAUDITED)
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ANCHOR STRATEGIC ASSETS TRUST
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STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(Unaudited)
Assets:
Investments at quoted market value (cost $5,343,617;
see Schedule of Investments, Notes 1,2,& 5)......... $ 5,233,427
Cash ................................................ 7,357
Dividends and interest receivable.................... 1,502
Other assets......................................... 22,467
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Total assets..................................... 5,264,753
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Liabilities:
Accrued expenses and other liabilities (Note 3)...... 12,573
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Total liabilities................................ 12,573
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Net Assets:
Capital stock (unlimited shares authorized at $1.00 par
value, amount paid in on 1,179,111 shares outstanding)
(Note 1)............................................ 6,330,784
Accumulated overdistributed net investment income.... (280,518)
Accumulated realized loss from security transactions,
net.................................................. (687,896)
Net unrealized depreciation in value of investments
(Note 2)............................................. (110,190)
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Net assets (equivalent to $4.45 per share, based on
1,179,111 capital shares outstanding)........... $ 5,252,180
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ANCHOR STRATEGIC ASSETS TRUST
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STATEMENT OF OPERATIONS
JUNE 30, 1997
(Unaudited)
Income:
Dividends........................................... $ 8,494
Interest............................................ 58,127
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Total income..................................... 66,621
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Expenses:
Management fees (Note 3)............................ 48,651
Pricing and bookkeeping fees (Note 4)............... 7,258
Legal fees.......................................... 3,149
Audit and accounting fees........................... 3,199
Custodian fees...................................... 1,790
Transfer fees (Note 4).............................. 1,398
Trustees' fees and expenses......................... 579
Other expenses...................................... 1,620
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Total expenses................................... 67,644
Fees paid indirectly (Note 4)............... (1,294)
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Net expenses................................ 66,350
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Net investment income................................ 271
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Realized and unrealized loss on investments:
Realized loss on investments-net................... (384,806)
Increase in net unrealized depreciation in investments (191,417)
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Net loss on investments.......................... (576,223)
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Net decrease in net assets resulting from operations... $ (575,952)
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ANCHOR STRATEGIC ASSETS TRUST
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STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended Year Ended
June 30, December 31,
1997 1996
(Unaudited)
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From operations:
Net investment income................... $ 271 $ (113,849)
Realized loss on investments, net....... (384,806) (72,237)
Increase in net unrealized
depreciation in investments............ (191,417 472,229
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Net increase (decrease) in net assets
resulting from operations.......... (575,952) 286,143
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Distributions to shareholders:
From net investment income.............. -- --
From net realized gain on investments... -- --
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Total distributions to shareholders.. -- --
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From capital share transactions:
Number of Shares
1997 1996
------- --------
Proceeds from sale of
shares.............. 50,862 774,469 238,826 3,891,921
Shares issued to
shareholders in
distributions
reinvested.......... -- -- -- --
Cost of shares
redeemed............. (556,113) (274,859) (2,592,938) (1,409,327)
-------- --------- ---------- -----------
Increase (decrease)
in net assets
resulting from
capital share
transactions........(505,251) 499,610 (2,354,112) 2,482,594
========= ========= ------------ -----------
Net increase (decrease) in net assets.... (2,930,064) 2,768,737
Net assets:
Beginning of period.................... 8,182,244 5,413,508
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End of period (including overdistributed
net investment income of $ 280,518 and
$280,789 respectively )........... $5,252,180 $ 8,182,245
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ANCHOR STRATEGIC ASSETS TRUST
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SELECTED PER SHARE DATA AND RATIOS
(for a share outstanding throughout each period)
Six
Months
Ended Year Ended December 31,
June 30,
1997
(Unaudited) 1996 1995 1994 1993
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Investment income..$(17.50) $0.01 $0.03 $(3.40) $ 0.19
Expenses, net...... (17.43) 0.03 0.06 (7.86) 2.19
--------- ------- ------- -------- ----------
Net investment
income (loss)...... (0.07) (0.02) (0.03) 4.46 (2.00)
Net realized and
unrealized gain
(loss) on
investment......... (0.34) 0.31 0.12 (5.41) --
Distributions to
shareholders:
From net
investment
income.......... -- -- -- -- --
From net
realized gain -- -- -- -- --
on investments..
------ ------- ------ ------ ------
Net increase
(decrease)in net
asset value....... (0.40) 0.29 0.09 (0.95) (2.00)
Net asset value:
Beginning of
period........... 4.86 4.57 4.48 5.43 7.43
------ ------- -------- ------- ------
End of period..... $4.45 $4.86 $4.57 $4.48 $5.43
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Ratio of expenses
to average net
assets........... 2.07% 1.98% 1.99% 2.19% 30.85%
Ratio of net
investment loss
to average net
assets.......... 0.01% (1.49%) (1.10%) (1.24%) (28.14)%
Portfolio turnover. 0.67 0.37 0.12 0.42 --
Number of shares
outstanding at end
of period.......... 1,179,111 1,684,362 1,184,752 1,044,287 12,000
Per share data and
ratios assuming no
waiver of advisory
fees:
Expenses........... -- -- -- -- $ 2.30
Net investment loss -- -- -- -- $(2.11)
Ratio of expenses
to average net assets -- -- -- -- 32.35%
Ratio of net
investment loss to
average net assets -- -- -- -- (29.64)%
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ANCHOR STRATEGIC ASSETS TRUST
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STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(Unaudited)
Value
Quantity (Note 1)
COMMON STOCKS -- 27.50%
Gold/Silver Mining Stocks
40,000 Aquiline Resources Corporation................. $ 17,600
15,000 Euro-Nevada Mining Corporation................. 456,300
9,000 Franco-Nevada Mining Corporation............... 450,450
13,000 Golden Star Resources.......................... 106,444
33,500 Guyanor Resources, Class B..................... 98,155
65,000 Miramar Mining Corporation..................... 235,300
22,300 Northern Orion Exploration Limited............. 80,057
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Total common stocks (cost $1,300,963).......... 1,444,306
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FOREIGN TIME DEPOSITS -- 44.41%.....
13,712,40French Franc maturing 07/04/97
at 3.100% (cost $2,340,708).................... 2,332,480
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PRECIOUS METALS -- 27.73%
Gold Bullion
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4,339 Ounces gold bullion (cost $1,701,946).......... 1,456,641
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Total investments (cost $5,343,617)............ 5,233,427
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CASH & OTHER ASSETS, LESS LIABILITIES -- 0.36% 18,753
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Total Net Assets............................... $5,252,180
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ANCHOR STRATEGIC ASSETS TRUST
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. Significant accounting policies:
Anchor Strategic Assets Trust, a Massachusetts business trust (the "Trust"),
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end investment management company. The following is a
summary of significant accounting policies followed by the Trust which are in
conformity with those generally accepted in the investment company industry.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. A. Investment securities--
Security transactions are recorded
on the date the investments are purchased or sold. Each day, at noon,
securities traded on national security exchanges are valued at the last sale
price on the primary exchange on which they are listed, or if there has been
no sale by noon, at the current bid price. Other securities for which market
quotations are readily available are valued at the last known sales price,
or, if unavailable, the known current bid price which most nearly represents
current market value. The gold bullion is valued each day at noon based on
the New York spot gold price. Temporary cash investments are stated at cost,
which approximates market value. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. Gains
and losses from sales of investments are calculated using the "identified
cost" method for both financial reporting and federal income tax purposes.
B. Income Taxes-- The Trust has elected to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute each year all of its taxable income to its shareholders. No
provision for federal income taxes is necessary since the Trust intends to
qualify for and elect the special tax treatment afforded a "regulated
investment company" under subchapter M of the Internal Revenue Code.
C. Capital Stock-- The Trust records the sales and redemptions
of its capital stock on trade date.
2. Tax basis of investments:
At June 30, 1997, the total cost of investments for federal income tax
purposes was identical to the total cost on a financial reporting basis.
Aggregate gross unrealized appreciation in investments in which there was an
excess of market value over tax cost was $399,343. Aggregate gross unrealized
depreciation in investments in which there was an excess of tax cost over
market value was $509,533. Net unrealized depreciation in investments at June
30, 1997 was $110,190.
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ANCHOR STRATEGIC ASSETS TRUST
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
(Continued)
3. Investment advisory service agreements:
The investment advisory contract with Anchor Investment Management
Corporation (the "investment adviser") provides that the Trust will pay the
adviser a fee for investment advice based on a rate of 1 1/2% per annum of
the average daily net assets. At June 30, 1997, investment advisory fees of
$7,235 were due which were included in "Accrued expenses and other
liabilities" in the accompanying Statement of Assets and Liabilities. David
Y. Williams, a Trustee of the Trust, is President and a Director of the
Investment Adviser.
4. Certain transactions:
Anchor Investment Management Corporation provides transfer agent services for
the Trust. Fees earned by Anchor Investment Management Corporation for
transfer agent services for the six months ended June 30, 1997 were $1,398.
Certain officers and trustees of the Trust are directors and/or officers of
the investment adviser and distributor. Meeschaert & Co., Inc. the Trust's
distributor, received $9,790 in brokerage commissions during the six months
ended June 30, 1997. Fees earned by Anchor Investment Management Corporation
for expenses related to daily pricing of the Trust shares and for bookkeeping
services for the six months ended June 30, 1997 were $7,258. For the six
months ended June 30, 1997 the total expense increase, as shown in the
statement of operations, is $1,294 as a result of an expense offset
arrangement with its custodian, Investors Bank & Trust Company. The Trust
could have invested the assets used by the custodian in an income producing
asset if it had not agreed to a reduction in fees under the expense offset
arrangement. In addition, the expense ratios in the Selected Per Share Data
and ratios are based on the total expenses, which include amounts that would
have been paid in lieu of an expense offset arrangement
5. Purchases and sales:
Aggregate cost of purchases and the proceeds from sales and maturities on
investments for the six months ended June 30, 1997 were:
Cost of securities acquired:
U.S. Government and investments backed by
such securities $ 3,937,494
Other investments....................... 26,085,299
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$ 30,022,793
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Proceeds from sales and maturities:
U.S. Government and investments backed by
such securities $ 4,923,896
Other investments....................... 25,660,534
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$30,584,430
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ANCHOR STRATEGIC ASSETS TRUST
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OFFICERS AND TRUSTEES
DAVID W.C. PUTNAM Chairman
Chairman, Board of Directors, F.L. Putnam and Trustee
Investment Management Corporation
President and Director, F.L. Putnam
Securities Company Incorporated
J. STEPHEN PUTNAM Vice President and
President, Robert Thomas Securities Treasurer
SPENCER H. LE MENAGER Secretary
President, Equity Inc. and Trustee
MAURICE A. DONAHUE Trustee
Director and Professor, Institute for
Governmental Services and
Walsh-Saltonstall Professor of Practical
Politics, University of Massachusetts
DAVID Y. WILLIAMS President
President and Director, Meeschaert & Co., and Trustee
Inc., President and Director,
Anchor Investment Management Corporation
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ANCHOR STRATEGIC ASSETS TRUST
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INVESTMENT ADVISER AND TRANSFER AGENT
Anchor Investment Management Corporation
2717 Furlong Rd., Doylestown, Pennsylvania 18901
(215) 794-2980
DISTRIBUTOR
Meeschaert & Co., Inc.
2717 Furlong Rd., Doylestown, Pennsylvania 18901
CUSTODIAN
Investors Bank & Trust Company
89 South Street, Boston, Massachusetts 02111
INDEPENDENT PUBLIC ACCOUNTANT
Livingston & Haynes, P.C.
40 Grove St., Wellesley, Massachusetts 02181
LEGAL COUNSEL
Yukevich, Blume, Marchetti & Zangrilli
One Gateway Center, Pittsburgh, Pennsylvania 15222
