The Torray Fund
--------------------------------------------------------------------------------
Letter to Shareholders
August 1, 2000
--------------------------------------------------------------------------------
Dear Fellow Shareholders:
The Torray Fund depreciated 7.6% during the six months ending June 30,
2000, leaving its return since inception 9 1/2 years ago at 19% compounded
annually. By comparison, the Standard & Poor's 500 Index fell only fractionally
in the first half. Its 9 1/2-year record stands at 19.6%. Although we're off to
a slow start this year, we've been through similar periods before and they've
always proven temporary. Our philosophy and strategy are the same and we remain
optimistic about the fund's prospects.
We made a number of changes in the portfolio over the last six months.
Seven stocks were sold, resulting in a gain of $156 million or approximately
$3.39 per share. This amount plus or minus the outcome of further activity --
we don't anticipate much at this time -- will be distributed to shareholders on
October 31st. Eleven companies were purchased including Bristol-Myers, Emerson
Electric, Johnson & Johnson, Procter and Gamble, Raytheon, and Tribune Company.
Evidencing the market's fickle nature, these quality stocks as a group had
dropped 50% from their highs, lowering their average price/earnings ratio to
slightly under 17-to-1. By contrast, the p/e ratio of the stocks we sold was
31-to-1. Over the past twelve months we have reallocated about one-third of our
assets to conservatively valued stocks bought at fair prices. We believe these
new commitments have significantly improved the fund's long-term outlook. Their
two-to-three-year appreciation potential is excellent and the risk of loss on
them is minimal. The size, profitability, and financial strength of the
companies in our portfolio lend a margin of safety that we're convinced will
prove important going forward.
Our view of the general market is cautious. A look at the Nasdaq, home to
many of today's hottest stocks in the high-tech, biotech, telecom and dot.com
sectors, helps explain why. These groups have fueled a long-running speculative
boom based largely on the misperception that their earnings are accelerating at
warp speed. The more convinced investors have become of this notion, the higher
share prices have gone, causing even more people to believe in it, and so on
and on in a classic example of the greater fool theory. During the last half of
the 1990's Nasdaq's earnings fell nearly 8% but its market value advanced 43%
annually. This tremendous surge catapulted its capitalization, now roughly
one-third of the entire U.S. market, to $5 trillion or an incomprehensible 190
times earnings. A heavy weighting in Nasdaq stocks has also contributed to the
S&P 500's gain over the last several years, although at 28 times earnings it's
not nearly as inflated.
This high stakes game is dangerous and not for us. It has affected our
performance, nevertheless, by draining enormous sums of money from broad areas
of the market, including some in which we have major investments. As a result,
prices have weakened, trapping The Torray
1
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
Letter to Shareholders
August 1, 2000
--------------------------------------------------------------------------------
Fund's stock in a tight trading range between $40 and $46. We realize this is
frustrating to you. But the bright side is that the earnings of our companies
have been steadily rising, reducing the fund's price/earnings ratio adjusted
for non-cash and non-recurring charges to slightly under 17-to-1. By this
measure the S&P 500 and Nasdaq are more expensive than our shares by two-thirds
and eleven times respectively. These premiums are unsustainable. Sooner or
later, no one knows when, the bubble will deflate and money will seek other
outlets. In the meantime, we like our position immensely and continue to
personally invest in the fund every month. Over time, perseverance pays big
dividends in this business.
Your investment with us is deeply appreciated. We recognize that some of
you have waited quite a while without reward. Others have paper losses. These
are disagreeable outcomes we know, not to be explained away by clever rhetoric.
But they also serve as a reminder that over short periods equity investing is
not a one-way street; stocks aren't supercharged savings accounts. Long term,
however, they always go up in line with rising earnings. The quality of the
businesses we own, their conservative valuations, and time are all working in
our favor.
Sincerely,
/s/ Robert E. Torray /s/ Douglas C. Eby
Robert E. Torray Douglas C. Eby
2
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
PERFORMANCE DATA
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Total Rates of Return on an Investment in The Torray Fund vs. the S&P 500
For the calendar years or period ended:
<TABLE>
<S> <C> <C> <C> <C> <C>
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
The Torray Fund 19.98% 21.04% 6.37% 2.41% 50.41%
S&P 500 30.48% 7.66% 10.09% 1.30% 37.54%
<S> <C> <C> <C> <C> <C>
1996 1997 1998 1999 6/30/00
---- ---- ---- ---- -------
The Torray Fund 29.09% 37.12% 8.20% 24.01% -7.57%
S&P 500 22.98% 33.36% 28.58% 21.04% -0.42%
</TABLE>
(BAR CHART APPEARS HERE. SEE ABOVE TABLE FOR PLOT POINTS.)
Returns on both The Torray Fund and the S&P 500 assume reinvestment of all
dividends and distributions.
Fund returns are after all expenses. Past performance is not predictive of
future results.
Cumulative Returns for the nine and a half years ended June 30, 2000
<TABLE>
<S> <C>
The Torray Fund 422.43%
S&P 500 447.52%
</TABLE>
3
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
PERFORMANCE DATA
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
Change in Value of $10,000 Invested on December 31, 1990 (commencement of
operations) to:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97 12/31/98 12/31/99 6/30/00
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------
The Torray Fund $11,999 $14,523 $15,448 $15,821 $23,796 $30,719 $42,122 $45,576 $56,519 $52,240
S&P 500 $13,048 $14,047 $15,465 $15,666 $21,547 $26,499 $35,339 $45,438 $54,998 $54,762
</TABLE>
(BAR CHART APPEARS HERE. SEE ABOVE TABLE FOR PLOT POINTS.)
Returns on both The Torray Fund and the S&P 500 assume reinvestment of all
dividends and distributions.
Fund returns are after all expenses. Past performance is not predictive of
future results.
AVERAGE ANNUAL TOTAL RETURNS
(for periods ended June 30, 2000)
<TABLE>
<S> <C> <C> <C> <C>
1 Year 3 Years 5 Years 9 1/2 Yrs
--------- --------- --------- -----------
The Torray Fund -4.86% 14.50% 22.12% 19.00%
S&P 500 7.25% 19.67% 23.80% 19.60%
</TABLE>
4
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Amount
or Shares Market Value
----------------- -------------
<S> <C> <C>
SHORT TERM INVESTMENTS 0.30%
5,619,023 Money Market Fund 5,619,023
COMMON STOCK 99.78%
17.10% HEALTHCARE
3,197,100 Abbott Laboratories 142,470,769
5,628,000 Boston Scientific Corporation* 123,464,250
263,700 Johnson & Johnson 26,864,437
438,300 Bristol-Myers Squibb Company 25,530,975
-----------
318,330,431
16.62% FINANCIAL SERVICES
2,839,000 SLM Holding Corporation 106,285,062
796,500 J.P. Morgan & Co. Incorporated 87,714,562
1,709,000 Franklin Resources, Inc. 51,910,875
252,205 Markel Corporation* 35,718,533
463,518 Citigroup Inc. 27,926,960
-----------
309,555,992
14.15% COMMUNICATION SERVICES
1,836,000 Hughes Electronics Corporation* 161,109,000
1,365,000 PanAmSat Corporation* 59,633,438
1,350,000 AT&T Corporation 42,693,750
-----------
263,436,188
10.53% MEDIA & ENTERTAINMENT
2,325,000 The Walt Disney Company 90,239,063
1,764,900 Tribune Company 61,771,500
489,800 Clear Channel Communications, Inc.* 36,735,000
100,000 Dow Jones & Company, Inc. 7,325,000
-----------
196,070,563
</TABLE>
5
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
10.45% CONSUMER PRODUCTS
<S> <C> <C> <C>
1,959,100 The Gillette Company 68,446,056
920,000 Kimberly-Clark Corporation 52,785,000
1,368,400 International Flavors & Fragrances Inc. 41,308,575
561,100 The Procter & Gamble Company 32,122,975
----------
194,662,606
5.85% BANKING
1,011,000 Bank of America Corporation 43,473,000
940,800 Mellon Financial Corporation 34,280,400
1,173,300 Bank One Corporation 31,165,781
-----------
108,919,181
5.18% AEROSPACE/DEFENSE/ELECTRONICS
2,800,000 Raytheon Company 54,425,000
805,000 General Dynamics Corporation 42,061,250
-----------
96,486,250
4.91% INDUSTRIAL MACHINERY
1,603,900 Illinois Tool Works Inc. 91,422,300
4.04% COMPUTER SYSTEMS & INTEGRATION
2,600,000 Xerox Corporation 52,000,000
212,000 IBM Corporation 23,227,250
-----------
75,227,250
2.73% ELECTRICAL EQUIPMENT
758,000 Molex Incorporated 26,530,000
401,000 Emerson Electric Co. 24,210,375
-----------
50,740,375
2.41% REAL ESTATE
1,696,500 CarrAmerica Realty Corporation 44,957,250
1.78% TRAVEL & LEISURE
1,696,700 Carnival Corporation 33,085,650
</TABLE>
6
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.77% CHEMICALS
<S> <C> <C> <C>
752,000 E.I. duPont de Nemours and Company 32,900,000
1.47% RAILROADS
1,294,600 CSX Corporation 27,429,338
0.79% PACKAGING
980,000 Crown Cork & Seal Company, Inc. 14,700,000
----------
TOTAL COMMON STOCK 99.78% 1,857,923,374
-------------
(cost $1,710,007,890)
TOTAL PORTFOLIO SECURITIES 100.08% 1,863,542,397
(amoritized cost $1,715,626,913)
OTHER ASSETS LESS LIABILITIES (0.08%) (1,510,224)
-------------
NET ASSETS 100.00% $1,862,032,173
==============
</TABLE>
TOP 10 HOLDINGS
<TABLE>
<S> <C>
1. Hughes Electronics Corporation* 6. The Walt Disney Company
2. Abbott Laboratories 7. J.P. Morgan & Co. Incorporated
3. Boston Scientific Corporation* 8. The Gillette Company
4. SLM Holding Corporation 9. Tribune Company
5. Illinois Tool Works Inc. 10. PanAmSat Corporation*
</TABLE>
*non-income producing securities
See notes to the financial statements.
7
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities at value
(amortized cost $1,715,626,913) $ 1,863,542,397
Cash 972,903
Receivable for investments sold 35,369,180
Subscriptions receivable 630,341
Interest and dividends receivable 3,233,015
---------------
TOTAL ASSETS 1,903,747,836
---------------
LIABILITIES
Redemptions payable 266,262
Payable for investments purchased 36,472,059
Accrued expenses 4,977,342
---------------
TOTAL LIABILITIES 41,715,663
---------------
NET ASSETS $ 1,862,032,173
===============
Shares of beneficial interest ($1 stated value,
46,021,540 shares outstanding,
unlimited shares authorized) $ 46,021,540
Paid-in-capital in excess of par 1,512,016,135
Undistributed net realized gain 155,973,619
Undistributed net income 105,395
Net unrealized appreciation of investments 147,915,484
---------------
NET ASSETS $ 1,862,032,173
===============
Per Share $ 40.46
===============
</TABLE>
See notes to the financial statements.
8
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 14,915,784
Interest income 247,762
--------------
Total income 15,163,546
--------------
EXPENSES
Management fees 9,426,691
Other expenses:
Legal fees $23,949
Transfer agent fees & expenses 303,725
Audit fees 14,000
Registration & filing fees 65,106
Custodian's fees 56,007
Trustees' fees 35,000
Printing, postage & mailing 93,617
Insurance 2,042
-------
Total other expenses 593,446
--------------
Total expenses 10,020,137
--------------
NET INVESTMENT INCOME 5,143,409
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on investments 155,973,171
Net change in unrealized gain (310,862,479)
--------------
Net loss on investments (154,889,308)
--------------
NET DECREASE IN NET ASSETS
FROM OPERATIONS $ (149,745,899)
==============
</TABLE>
See notes to the financial statements.
9
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
For the periods indicated:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six months
ended 6/30/00 Year ended
(unaudited) 12/31/99
----------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets from
Operations:
Net investment income $ 5,143,409 $ 2,993,578
Net realized gain on investments 155,973,171 60,809,405
Net change in unrealized gain (310,862,479) 283,128,677
-------------- --------------
Net increase (decrease) in net assets
from operations (149,745,899) 346,931,660
-------------- --------------
Distributions to Shareholders from:
Net investment income ($0.1119 and
$0.0731 per share, respectively) (5,038,014) (2,994,495)
Net realized gain ($0.3860 and $0.7867
per share, respectively) (17,574,148) (32,963,764)
-------------- --------------
Total distributions (22,612,162) (35,958,259)
-------------- --------------
Shares of Beneficial Interest
Increase from share transactions 138,852,353 125,710,066
-------------- --------------
Total increase (decrease) (33,505,708) 436,683,467
Net assets -- beginning of period 1,895,537,881 1,458,854,414
-------------- --------------
Net assets -- end of period (including
undistributed net investment income of
$105,395 and $0, respectively) $1,862,032,173 $1,895,537,881
============== ==============
</TABLE>
See notes to the financial statements.
10
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding for:
--------------------------------------------------------------------------------
PER SHARE DATA
<TABLE>
<CAPTION>
Six months
ended
6/30/00
(unaudited)
-----------------
<S> <C>
Net Asset Value,
Beginning of Period $ 44.310
Income from investment
operations
Net investment income 0.110
Net gain (loss) on
securities (both realized
and unrealized) ( 3.470)
-----------
Total from investment
operations ( 3.360)
Distributions:
Dividends (from net
investment income) ( 0.110)
Distributions (from
capital gains) ( 0.380)
-----------
Total distributions ( 0.490)
Net Asset Value,
End of Period $ 40.460
===========
TOTAL RETURN(3) ( 7.57%)
RATIOS/SUPPLEMENTAL
DATA
Net assets, end of period
(000's omitted) $1,862,032
Ratio of expenses to
average net assets 1.063%1
Ratio of net income to
average net assets 0.55%1
Portfolio turnover rate 22.50 %
<CAPTION>
Years ended December 31:
--------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995 1994 1993
--------------- --------------- ------------- ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 36.480 $ 33.850 $ 25.220 $ 20.110 $ 13.755 $ 14.273 $ 13.743
Income from investment
operations
Net investment income 0.073 0.139 0.130 0.186 0.215 0.213 0.122
Net gain (loss) on
securities (both realized
and unrealized) 8.616 2.630 9.206 5.642 6.674 0.130 0.745
---------- ---------- -------- -------- --------- --------- ---------
Total from investment
operations 8.689 2.769 9.336 5.828 6.889 0.343 0.867
Distributions:
Dividends (from net
investment income) ( 0.073) ( 0.139) ( 0.130) ( 0.187) ( 0.214) ( 0.213) ( 0.122)
Distributions (from
capital gains) ( 0.786) 0.000 ( 0.576) ( 0.531) ( 0.320) ( 0.648) ( 0.215)
---------- ---------- -------- -------- --------- --------- ---------
Total distributions ( 0.859) ( 0.139) ( 0.706) ( 0.718) ( 0.534) ( 0.861) ( 0.337)
Net Asset Value,
End of Period $ 44.310 $ 36.480 $ 33.850 $ 25.220 $ 20.110 $ 13.755 $ 14.273
========== ========== ======== ======== ========= ========= =========
TOTAL RETURN3 24.01 % 8.20 % 37.12 % 29.09 % 50.41 % 2.41 % 6.37 %
RATIOS/SUPPLEMENTAL
DATA
Net assets, end of period
(000's omitted) $1,895,538 $1,458,854 $608,537 $116,593 $ 50,744 $ 23,362 $ 19,666
Ratio of expenses to
average net assets 1.07 % 1.09 % 1.13 % 1.25 % 1.25 % 1.25 % 1.25 %
Ratio of net income to
average net assets 0.18 % 0.42 % 0.47 % 0.87 % 1.31 % 1.51 % 0.94 %
Portfolio turnover rate 32.55 % 25.96 % 11.72 % 20.95 % 22.56 % 36.63 % 29.09 %
<CAPTION>
14 days
Years ended December 31: ended
-------------------------- ---------------
1992 1991 12/31/90
------------ ------------- ---------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 11.514 $ 9.999 $ 10.000
Income from investment
operations
Net investment income 0.180 0.232 0.005
Net gain (loss) on
securities (both realized
and unrealized) 2.229 1.728 0.000
--------- --------- ----------
Total from investment
operations 2.409 1.960 0.005
Distributions:
Dividends (from net
investment income) ( 0.180) ( 0.233) ( 0.006)
Distributions (from
capital gains) 0.000 ( 0.212) 0.000
--------- --------- ----------
Total distributions ( 0.180) ( 0.445) ( 0.006)
Net Asset Value,
End of Period $ 13.743 $ 11.514 $ 9.999
========= ========= ==========
TOTAL RETURN3 21.04 % 19.98 % ( 0.03 %)
RATIOS/SUPPLEMENTAL
DATA
Net assets, end of period
(000's omitted) $ 10,298 $ 4,423 $ 200
Ratio of expenses to
average net assets 1.25 % 1.25 % 0.82%1
Ratio of net income to
average net assets 1.54 % 2.43 % 2.15%1
Portfolio turnover rate 37.09 % 21.17 % n/a2
</TABLE>
1 Annualized
2 Not applicable. During the period December 18, 1990 through December 31, 1990
the Fund invested only in short-term investments which are excluded from
this ratio.
3 Past performance is not predictive of future results.
See notes to the financial statements.
11
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Torray Fund ("Fund") is registered under the Investment Company Act of
1940 as a no load, diversified, open-end management investment company. The
Fund's primary investment objective is to provide long-term total return. The
Fund seeks to meet its objective by investing its assets in a diversified
portfolio of common stocks and U.S. Treasury Bills or Treasury Notes. In order
to accomplish these goals, the Fund intends to hold stocks for the long term,
as opposed to actively buying and selling. There can be no assurances that the
Fund's investment objectives will be achieved. The Fund was organized as a
business trust under Massachusetts law. The Torray Corporation serves as
administrator and investment advisor to the Fund.
The following is a summary of accounting policies followed by the Fund in
the preparation of its financial statements.
Securities Valuation Short-term obligations having remaining maturities of
60 days or less are valued at amortized cost, which approximates market value.
Portfolio securities for which market quotations are readily available are
valued at market value, which is determined by using the last reported sale
price, or, if no sales are reported, the last reported bid price.
Securities Transactions and Investment Income Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the specific identification basis. Dividend income
is recorded on the ex-dividend date and interest income, including amortization
of discount on short-term investments, is recorded on the accrual basis.
Federal Income Taxes The Fund intends to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income, including any net
realized gain on investments to its shareholders. Therefore, no Federal income
tax provision is required. Cost of securities for tax purposes is substantially
the same as for financial reporting purposes.
Net Asset Value The net asset value per share of the Fund is determined
once on each day that the New York Stock Exchange is open, as of the close of
the Exchange.
Use of Estimates In preparing financial statements in accordance with
generally accepted accounting principles, management is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements, and revenues and expenses during the reporting
period. Actual results could differ from those estimates.
12
<PAGE>
The Torray Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
As of June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
NOTE 2 -- MANAGEMENT CONTRACT
Pursuant to the Management Contract, The Torray Corporation provides
investment advisory and portfolio management services to the Fund. The Fund
pays The Torray Corporation a management fee, computed daily and payable
quarterly at the annual rate of one percent of the Fund's daily net assets.
During the six months ended June 30, 2000, The Torray Fund paid management fees
of $9,426,691 (1% of assets).
Excluding the management fee, other expenses incurred by the Fund during
the six months ended June 30, 2000, totaled $593,446. These expenses include
all costs associated with the Fund's operations including transfer agent fees,
Independent Trustees' fees ($10,000 per annum and $1,000 for each Board meeting
attended), taxes, dues, fees and expenses of registering and qualifying the
Fund and its shares for distribution, charges of custodians, auditing and legal
expenses, insurance premiums, supplies, postage, expenses of issue or
redemption of shares, reports to shareholders and Trustees, expenses of
printing and mailing prospectuses, proxy statements and proxies to existing
shareholders, and other miscellaneous expenses.
Certain officers and Trustees of the Fund are also officers and/or
shareholders of The Torray Corporation.
NOTE 3 -- PORTFOLIO SECURITIES
Purchases and sales of investment securities, other than short-term
investments, for the six months ended June 30, 2000, aggregated $561,139,621
and $432,829,484, respectively. Net unrealized appreciation of investments at
June 30, 2000, includes aggregate unrealized gains of $241,300,225 and
unrealized losses of $93,384,741.
NOTE 4 -- SHARES OF BENEFICIAL INTEREST TRANSACTIONS
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Six months Year
ended ended
6/30/00 12/31/99
----------------------------------- ------------------------------------
Shares Amount Shares Amount
--------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Shares issued 9,544,873 $ 406,954,960 12,235,340 $ 505,563,450
Reinvestments of dividends and distributions 533,087 21,630,703 810,315 33,054,946
Shares redeemed (6,835,363) (289,733,310) (10,252,159) (412,908,330)
---------- -------------- ----------- --------------
3,242,597 $ 138,852,353 2,793,496 $ 125,710,066
========== ============== =========== ==============
</TABLE>
Officers, Trustees and affiliated persons of The Torray Fund and their
families directly or indirectly control 846,692 shares or 1.87% of the Fund.
13
<PAGE>
(This Page Intentionally Left Blank)
<PAGE>
TRUSTEES
--------------------------------------------------------------------
Frederick Amling
Bruce C. Ellis
William M Lane
Robert P. Moltz
Roy A. Schotland
Wayne H. Shaner
INVESTMENT ADVISOR
--------------------------------------------------------------------
The Torray Corporation
OFFICERS
--------------
Robert E. Torray, President
Douglas C. Eby, Vice President
William M Lane, Vice President
TRANSFER AGENT
--------------------------------------------------------------------
PFPC Global Fund Services
211 South Gulph Road
King of Prussia, Pennsylvania 19406-0903
LEGAL COUNSEL
--------------------------------------------------------------------
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C. 20036
This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus.
The
TORRAY
FUND
SEMI-ANNUAL REPORT
June 30, 2000
The Torray Fund
Suite 450
6610 Rockledge Drive
Bethesda, Maryland 20817
(301) 493-4600
1-800-443-3036
