LETTER TO SHAREHOLDERS January 18, 1996
- -----------------------------------------------------------------------------
I am pleased to report to you on the progress of your investments during 1995,
which was the fifth year of the Brundage, Story and Rose Investment Trust.
REVIEW OF WORLD ECONOMIES
AND THE U.S. FINANCIAL MARKETS
During the first half of the Trust's fiscal year, which ended November 30,
1995, U.S. economic growth slowed noticeably; the second calendar quarter
experienced only nominal growth. However, the third quarter rebounded
sharply, while the fourth quarter slowed once again. Europe experienced a
reasonable level of economic growth, but restrictive policies in Germany
bolstered the relative value of the Deutsche Mark which, in turn, forced other
European governments to exercise monetary restraint to defend their
currencies. The upshot was economic stagnation in much of Europe. Despite a
recent modest reduction in German interest rates, the European outlook for
1996 remains rather dull. In Central and South America, problems in Mexico
following the December 1994 Peso devaluation cast a pallor over the whole
region. During the second half of 1995, a few bright spots in countries such
as Brazil, Chile and Peru were beginning to emerge, while in Mexico and others
such as Venezuela and Argentina problems still dominated the economic scene.
Asia, excluding Japan, continued robust, and the strong Japanese stock market
during the second half of the year may point to better times ahead despite
continuing financial asset deflation.
Turning again to the U.S. economy, capital spending continued strong, thanks
in part to very strong corporate earnings. However, this was offset by
continuing weak consumer spending in the face of high installment debt. In
fact, just about the only area of the retail sector which experienced high
growth was, as in 1994, consumer electronics and, in particular, personal
computers.
After suffering a severe one-year decline in 1994, the bond market reversed
and posted an exceedingly strong return in 1995. Low inflation and a modest
amount of easing by the Federal Reserve in conjunction with substantial
inflows of foreign capital and a number of other factors all combined to make
1995 a banner year. There is often a positive correlation between the bond
and equity markets, and 1995 was no exception. The conjunction of low
inflation, strong corporate earnings and a strong bond market helped common
stock prices to chalk up one of their strongest gains in many years. However,
during the fourth quarter the budget impasse began to take a toll on investor
enthusiasm. In particular, the technology area, which had enjoyed speculative
excesses approaching manic proportions, began to show signs of stress.
As we look into 1996, the continuing stalemate in Washington poses a high
level of uncertainty which may damage investor confidence in both bonds and
equities. We feel that both markets have factored into their valuations the
assumption that a significant deficit reduction agreement will be reached soon
and will be followed by more aggressive lowering of short term interest rates
by the Federal Reserve. Although the economic outlook remains positive, with
slowing but still satisfactory growth and a flattening in corporate profits,
the battle between the legislative and executive branches of the government is
at center stage, and if it is not resolved in the near future, the impasse may
pose problems for investors during 1996.
<PAGE>
BRUNDAGE, STORY AND ROSE
GROWTH & INCOME FUND
For the fiscal year ended November 30, 1995, the Brundage, Story and Rose
Growth & Income Fund generated a return of 26.1%, a substantial improvement
from the modest returns of 1994 when the market as a whole was very weak.
Relative to the overall market, strong performance in the second half of the
year did not make up for the defensive posture that the Fund employed so
successfully in 1994, and investment results of 26.1% lagged the 37.0% return
of the S&P 500, though still ahead of the 24.9% return of the Lipper All
Equity Funds Average.
Looking back, cyclical issues came under pressure as growth in the economy
slowed to a standstill in the first half of the year, while conversely, a
frenzy of mergers and speculation in the banking industry and lower interest
rates drove regional banks and financial service companies to almost
unprecedented gains. Meanwhile, technology oriented companies showed both
sides of their volatile nature, first racking up substantial gains through the
third quarter, and then, through year-end and into early 1996, retracing the
lion's share of their advance.
Looking forward, we are unlikely to see gains in the market in 1996 that
match the strong performance of 1995. Indeed, with slowing corporate profit
growth and a mediocre economy, we expect that rewards earned in the market
this year will be hard-fought. Given this outlook, we have de-emphasized the
more cyclical areas of the market while building up holdings in less cyclical
growth oriented companies. Regarding the technology area, we think these
companies are most attractive when near term fears blind investors to the long
term creation of value. Accordingly, we would expect to rebuild investments
in these areas where profits were taken at the end of last year. In all, we
remain cautiously optimistic regarding the equity market and have redoubled
our emphasis on quality long term investments.
BRUNDAGE, STORY AND ROSE
SHORT/INTERMEDIATE TERM
FIXED-INCOME FUND
In our letter last year, we indicated there were good reasons to invest in the
Fixed Income Fund given the relatively high level of interest rates. Interest
rates on 3 year and 5 year maturity Treasury obligations were 7.61% and 7.79%,
respectively.
During the ensuing 12 months of fiscal 1995, these rates dropped to 5.40% and
5.52%, producing significant price gains on bonds held in the portfolio on top
of interest income collected. The total rate of return of the Fund, including
both the price change and interest income components of investment return was
14.84% during the period. This was a very attractive absolute return and
compared favorably with market returns. For example, the Lehman Brothers
Intermediate Government/Corporate Bond Index (which has the same duration as
the Fund and includes a large number of corporate and government bonds)
produced a total return of 14.51% while the Merrill Lynch 3-Year Treasury
Index produced a total return of 13.02% during the period.
<PAGE>
The Fund's good results were due in part to good individual issue selection as
well as to exposure to the corporate and mortgage-backed sectors. Corporate
bonds of 3-5 year maturities produced returns better than 3-5 year Treasuries.
The mortgage-backed issues in our portfolio, on average, also outperformed the
3-5 year Treasury Index.
We believe that the Fund continues to offer extremely good value, particularly
versus money market (very short maturity) alternatives. The yield on money
market funds versus longer maturity bonds is narrow by historical standards
but we believe it will become wider as money market yields fall relative to
the yield on the Fund.
SUMMARY
As you will infer from the foregoing discussion, we will not be surprised if
1996 is a challenging year for generating high absolute returns. However, we
feel that both Funds are very well structured to generate good relative
returns during 1996, and we continue to find attractive opportunities in both
the bond and stock markets.
Sincerely yours,
/S/ Malcolm D. Clarke, Jr.
Malcolm D. Clarke, Jr.
President
<PAGE>
<TABLE>
Comparison of Change in Value of $10,000 Investment in the Brundage, Story and
Rose Growth & Income Fund and the Standard & Poor's 500 Index
Brundage, Story and Rose Growth & Income Fund
Average Annual Total Returns
1 Year 26.08%
Since Inception* 11.78%
<FN>
*The public offering of shares commenced on January 2, 1991.
BSR GROWTH & INCOME FUND CHART
<CAPTION>
BSR GROWTH & INCOME FUND
STANDARD & POOR'S 500 INDEX: BSR GROWTH & INCOME FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
<S> <C> <C> <C> <C> <C>
01/01/91 10,000 01/01/91 10,000
03/31/91 14.53% 11,453 03/31/91 11.00% 11,100
06/30/91 -0.23% 11,427 06/30/91 -3.28% 10,736
09/30/91 5.35% 12,038 09/30/91 5.07% 11,280
12/31/91 8.38% 13,047 12/31/91 8.80% 12,273
03/31/92 -2.53% 12,717 03/31/92 -3.12% 11,890
06/30/92 1.90% 12,958 06/30/92 -0.74% 11,802
09/30/92 3.15% 13,367 09/30/92 4.82% 12,371
12/31/92 5.03% 14,039 12/31/92 1.69% 12,579
03/31/93 4.36% 14,651 03/31/93 2.35% 12,875
06/30/93 0.48% 14,721 06/30/93 0.25% 12,907
09/30/93 2.58% 15,101 09/30/93 3.70% 13,385
12/31/93 2.32% 15,452 12/31/93 3.63% 13,870
03/31/94 -3.79% 14,866 03/31/94 -5.21% 13,148
06/30/94 0.42% 14,928 06/30/94 0.06% 13,156
09/30/94 4.88% 15,657 09/30/94 7.20% 14,103
12/31/94 -0.02% 15,654 12/31/94 -2.18% 13,795
03/31/95 9.74% 17,178 03/31/95 7.22% 14,791
06/30/95 9.55% 18,818 06/30/95 5.08% 15,543
09/30/95 7.95% 20,314 09/30/95 8.57% 16,875
11/30/95 4.02% 21,130 11/30/95 2.40% 17,281
Past performance is not predictive of future performance.
Comparison of Change in Value of $10,000 Investment in the Brundage, Story and
Rose Short/Intermediate Term Fixed-Income Fund and Merrill Lynch 3-Year
Treasury Index
Brundage, Story and Rose Short/Intermediate Term Fixed-Income Fund
Average Annual Total Returns
1 Year 14.84%
Since Inception* 8.02%
<FN>
*The public offering of shares commenced on January 2, 1991.
BSR SHORT/INTERMEDIATE TERM FUND CHART
<CAPTION>
ML 3-YEAR TREASURY INDEX: BSR SHORT/INTERMEDIATE TERM FUND:
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
<S> <C> <C> <C> <C> <C>
01/01/91 10,000 01/01/91 10,000
03/31/91 2.00% 10,200 03/31/91 1.58% 10,158
06/30/91 1.80% 10,384 06/30/91 1.96% 10,357
09/30/91 4.44% 10,845 09/30/91 4.89% 10,864
12/31/91 4.69% 11,353 12/31/91 4.21% 11,322
03/31/92 -1.15% 11,223 03/31/92 -0.72% 11,240
06/30/92 3.84% 11,654 06/30/92 3.96% 11,685
09/30/92 4.37% 12,163 09/30/92 3.81% 12,130
12/31/92 -0.48% 12,105 12/31/92 -0.63% 12,054
03/31/93 3.12% 12,482 03/31/93 3.60% 12,488
06/30/93 1.45% 12,663 06/30/93 2.07% 12,747
09/30/93 1.69% 12,878 09/30/93 2.04% 13,007
12/31/93 0.42% 12,931 12/31/93 0.43% 13,063
03/31/94 -1.57% 12,728 03/31/94 -1.64% 12,848
06/30/94 -0.53% 12,661 06/30/94 -0.76% 12,751
09/30/94 0.78% 12,759 09/30/94 0.60% 12,828
12/31/94 -0.19% 12,734 12/31/94 -0.48% 12,766
03/31/95 4.22% 13,271 03/31/95 4.70% 13,366
06/30/95 4.27% 13,837 06/30/95 5.01% 14,036
09/30/95 1.55% 14,051 09/30/95 1.62% 14,263
11/30/95 2.20% 14,360 11/30/95 2.43% 14,610
Past performance is not predictive of future performance.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
<CAPTION>
SHORT/
INTERMEDIATE
TERM GROWTH
FIXED-INCOME & INCOME
FUND FUND
<S> <C> <C>
ASSETS
Investments in securities:
At amortized cost (original cost $33,574,046 and
$18,390,519, respectively) $33,548,518 $18,390,519
============ ===========
At market value (Note 1) $34,234,636 $23,328,600
Investments in repurchase agreements (Note 1) 760,000 1,210,000
Cash 281 258
Receivable for capital shares sold 5,188 15,851
Interest and principal paydowns receivable 370,635 188
Dividends receivable -- 37,625
Organization expenses, net (Note 1) 391 391
Other assets 2,044 1,159
------------ -----------
TOTAL ASSETS 35,373,175 24,594,072
------------ -----------
LIABILITIES
Payable for capital shares redeemed 41,367 46,809
Dividends payable 24,508 --
Payable for securities purchased -- 290,805
Payable to affiliates (Note 3) 23,841 46,354
Other accrued expenses and liabilities 11,950 19,552
------------ -----------
TOTAL LIABILITIES 101,666 403,520
------------ -----------
NET ASSETS $35,271,509 $24,190,552
============ ===========
Net assets consist of:
Capital shares $35,098,614 $18,093,024
Accumulated net realized gains (losses)
from security transactions ( 513,223) 1,134,441
Undistributed net investment income -- 25,006
Net unrealized appreciation on investments 686,118 4,938,081
------------ -----------
Net assets $35,271,509 $24,190,552
============ ===========
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 4) 3,288,115 1,621,993
============ ===========
Net asset value, offering and redemption price per share (Note 1) $ 10.73 $ 14.91
============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1995
<CAPTION>
SHORT/
INTERMEDIATE
TERM GROWTH
FIXED-INCOME & INCOME
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Interest $ 2,370,970 $ 14,004
Dividends -- 405,594
------------ -----------
TOTAL INVESTMENT INCOME 2,370,970 419,598
------------ -----------
EXPENSES
Investment advisory fees (Note 3) 174,030 138,193
Administrative services fees (Note 3) 69,563 42,514
Accounting services fees (Note 3) 44,300 40,700
Professional fees 19,513 19,513
Trustees' fees and expenses 13,255 13,255
Shareholder service and transfer agent fees (Note 3) 12,500 12,500
Insurance expense 14,424 7,814
Registration fees 6,994 7,669
Postage and supplies 6,601 3,798
Reports to shareholders 4,753 4,848
Amortization of organization expenses (Note 1) 4,688 4,688
Custodian fees 4,008 4,333
Distribution expenses (Note 3) 2,509 1,484
Other expenses 3,415 6,642
------------ -----------
TOTAL EXPENSES 380,553 307,951
Fees waived by the Adviser (Note 3) ( 171,125) --
------------ -----------
NET EXPENSES 209,428 307,951
------------ -----------
NET INVESTMENT INCOME 2,161,542 111,647
------------ -----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 109,142 1,134,441
Net change in unrealized appreciation/depreciation
on investments 2,531,772 3,708,141
------------ -----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,640,914 4,842,582
------------ -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 4,802,456 $ 4,954,229
============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED NOVEMBER 30, 1995 AND 1994
<CAPTION>
SHORT/INTERMEDIATE TERM
FIXED-INCOME FUND GROWTH & INCOME FUND
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 2,161,542 $ 2,356,183 $ 111,647 $ 99,764
Net realized gains (losses) from security
transactions 109,142 (622,365) 1,134,441 835,887
Net change in unrealized appreciation/depreciation
on investments 2,531,772 (2,673,507) 3,708,141 ( 623,718)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations 4,802,456 (939,689) 4,954,229 311,933
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,161,542) (2,356,183) ( 97,033) ( 95,266)
From net realized gains from security transactions -- (143,558) ( 835,887) ( 571,879)
----------- ----------- ----------- -----------
Decrease in net assets from distributions to
shareholders (2,161,542) ( 2,499,741) ( 932,920) ( 667,145)
----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (Note 4):
Proceeds from shares sold 5,618,482 13,646,655 3,006,767 2,567,254
Net asset value of shares issued in reinvestment of
distributions to shareholders 1,847,043 1,976,411 920,285 654,877
Payments for shares redeemed 10,224,592) (20,065,740) ( 2,578,708) (3,196,222)
----------- ------------ ----------- -----------
Net increase (decrease) in net assets
from capital share transactions (2,759,067) (4,442,674) 1,348,344 25,909
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ( 118,153) (7,882,104) 5,369,653 ( 329,303)
NET ASSETS:
Beginning of year 35,389,662 43,271,766 18,820,899 19,150,202
----------- ----------- ----------- -----------
End of year $35,271,509 $35,389,662 $24,190,552 $18,820,899
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ 25,006 $ 10,392
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FROM DATE OF
PUBLIC OFFERING
YEAR YEAR YEAR YEAR (JAN. 2, 1991)
ENDED ENDED ENDED ENDED THROUGH
NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 9.94 $ 10.77 $ 10.49 $ 10.43 $ 10.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.64 0.59 0.64 0.69 0.62
Net realized and unrealized
gains (losses) on investments 0.79 ( 0.79) 0.28 0.06 0.43
------- ------- ------- ------- -------
Total from investment operations 1.43 ( 0.20) 0.92 0.75 1.05
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income ( 0.64) ( 0.59) ( 0.64) ( 0.69) ( 0.62)
Distributions from net realized gains -- ( 0.04) -- -- --
------- ------- ------- ------- -------
Total distributions ( 0.64) ( 0.63) ( 0.64) ( 0.69) ( 0.62)
------- ------- ------- ------- -------
Net asset value at end of period $ 10.73 $ 9.94 $ 10.77 $ 10.49 $ 10.43
======= ======= ======= ======= =======
Total return 14.84% ( 1.98%) 9.00% 7.38% 11.87%(B)
======= ======= ======= ======= =======
Net assets at end of period (000's) $35,272 $35,390 $43,272 $32,025 $12,871
======= ======= ======= ======= =======
Ratio of expenses to average net assets(A) 0.60% 0.50% 0.50% 0.50% 0.50%(B)
Ratio of net investment income to average
net assets 6.21% 5.67% 5.95% 6.50% 7.05%(B)
Portfolio turnover rate 39% 57% 29% 24% 12%(B)
<FN>
(A)Absent fee waivers and/or expense reimbursements by the Adviser, the ratios
of expenses to average net assets would have been 1.09%, 1.06%, 1.11%, 1.30% and
2.54%(B) for the periods ended November 30, 1995, 1994, 1993, 1992 and 1991,
respectively (Note 3).
(B)Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FROM DATE OF
PUBLIC OFFERING
YEAR YEAR YEAR YEAR (JAN. 2, 1991)
ENDED ENDED ENDED ENDED THROUGH
NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 12.43 $ 12.70 $ 12.26 $ 10.85 $ 10.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.07 0.06 0.09 0.12 0.15
Net realized and unrealized gains on
investments 3.02 0.11 0.76 1.40 0.92
------- ------- ------- ------- -------
Total from investment operations 3.09 0.17 0.85 1.52 1.07
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income ( 0.06) ( 0.06) ( 0.10) ( 0.11) ( 0.15)
Distributions from net realized gains ( 0.55) ( 0.38) ( 0.31) -- ( 0.07)
------- ------- ------- ------- -------
Total distributions ( 0.61) ( 0.44) ( 0.41) ( 0.11) ( 0.22)
------- ------- ------- ------- -------
Net asset value at end of period $ 14.91 $ 12.43 $ 12.70 $ 12.26 $ 10.85
======= ======= ======= ======= =======
Total return 26.08% 1.35% 6.83% 14.39% 11.64%(B)
======= ======= ======= ======= =======
Net assets at end of period (000's) $24,191 $18,821 $19,150 $15,081 $ 9,103
======= ======= ======= ======= =======
Ratio of expenses to average net assets(A) 1.45% 1.50% 1.50% 1.50% 1.48%(B)
Ratio of net investment income to average
net assets 0.52% 0.51% 0.74% 1.05% 1.51%(B)
Portfolio turnover rate 42% 44% 45% 44% 37%(B)
<FN>
(A)Absent fee waivers by the Adviser, the ratios of expenses to average net
assets would have been 1.58%, 1.78% and 2.35%(B) for the periods ended
November 30, 1993, 1992 and 1991, respectively.
(B)Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
<CAPTION>
PAR MARKET
VALUE INVESTMENT SECURITIES -- 97.1% RATE MATURITY VALUE
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 14.9%
$ 1,000,000 U.S. Treasury Notes 6.750% 5/31/97 $1,019,062
1,000,000 U.S. Treasury Notes 6.250 2/15/03 1,030,937
1,000,000 U.S. Treasury Notes 5.750 8/15/03 1,000,625
1,000,000 U.S. Treasury Notes 7.250 5/15/04 1,097,187
1,000,000 U.S. Treasury Notes 7.250 8/15/04 1,098,750
---------- ----------
$ 5,000,000 TOTAL U.S. TREASURY OBLIGATIONS $5,246,561
---------- ----------
(Amortized Cost $5,109,685)
U.S. GOVERNMENT AGENCY SECURITIES -- 2.9%
$ 1,000,000 Federal Home Loan Bank Notes (Amortized Cost $970,156) 6.100% 3/22/99$ 1,006,721
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES -- 46.0%
$ 253,672 Federal Home Loan Mortgage Corp. GOLD #M-13854 7.500% 5/01/97$ 257,353
614,158 Federal Home Loan Mortgage Corp. GOLD #M-14868 7.500 8/01/97 623,069
342,369 Federal Home Loan Mortgage Corp. GOLD #N-90875 7.500 2/01/99 349,801
18,089 Government National Mortgage Assoc. #114468 9.500 7/15/99 18,890
858,960 Federal Home Loan Mortgage Corp. GOLD #G-50274 7.500 6/01/00 880,761
21,360 Federal Home Loan Mortgage Corp. GNOME #200068 8.000 3/01/02 21,922
80,495 Federal National Mortgage Assoc. DWARF #51935 8.000 4/01/02 83,080
400,272 Federal Home Loan Mortgage Corp. REMIC #1219-E 6.500 3/15/03 400,248
113,537 Federal Home Loan Mortgage Corp. REMIC #1034-E 8.400 1/15/05 115,008
1,000,000 Federal National Mortgage Assoc. REMIC #93-52E 6.000 4/25/05 1,001,790
82,116 Federal Home Loan Mortgage Corp. #140094 7.500 5/01/05 82,606
500,000 Federal Home Loan Mortgage Corp. REMIC #1404-D 6.800 1/15/06 514,350
112,642 Federal National Mortgage Assoc. DWARF #50480 8.000 9/01/06 116,328
700,000 Federal National Mortgage Assoc. REMIC #92-24H 7.500 11/25/06 723,723
805,952 Government National Mortgage Assoc. #362109 9.000 9/15/08 852,802
500,000 Federal Home Loan Mortgage Corp. REMIC #1348-PD 6.250 6/15/11 498,950
1,000,000 Federal National Mortgage Assoc. REMIC #93-4D 6.750 11/25/13 1,006,450
1,500,000 Federal Home Loan Mortgage Corp. REMIC #1523-PE 6.000 10/15/15 1,499,940
1,000,000 Federal National Mortgage Assoc. REMIC #93-20PE 5.900 5/25/16 995,590
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1522-C 6.000 8/15/16 999,940
131,070 Federal National Mortgage Assoc. REMIC #89-60C 8.900 2/25/17 131,331
1,000,000 Federal National Mortgage Assoc. REMIC #94-29PE 6.000 5/25/18 996,550
1,000,000 Federal National Mortgage Assoc. REMIC #93-223PD 5.650 7/25/19 985,110
27,012 Government National Mortgage Assoc. #285639 9.000 2/15/20 28,566
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1699-C 6.200 2/15/24 1,005,680
1,007,006 Federal National Mortgage Assoc. #250322 7.500 7/01/25 1,024,628
996,428 Government National Mortgage Assoc. #410063 7.500 7/15/25 1,017,283
---------- ----------
$ 16,065,138 TOTAL U.S. GOVERNMENT AGENCY
----------
MORTGAGE-BACKED SECURITIES $ 16,231,749
----------
(Amortized Cost $16,130,341)
<PAGE>
<CAPTION>
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND (CONT'D)
PAR MARKET
VALUE INVESTMENT SECURITIES -- 97.1% RATE MATURITY VALUE
<S> <C> <C> <C> <C>
OTHER MORTGAGE-BACKED SECURITIES -- 5.4%
$ 875,702 Advanta Home Equity Loan Trust #92-1A 7.875% 9/25/08$ 907,227
1,000,000 CMC Securities Corp. III #94-B 6.000 2/25/09 992,200
$ 1,875,702 TOTAL OTHER MORTGAGE-BACKED SECURITIES
$ 1,899,427
(Amortized Cost $1,875,398)
ASSET-BACKED SECURITIES -- 6.3%
$ 200,000 Standard Credit Card Master Trust #1991-1A 8.500% 6/07/96$ 202,892
400,000 MBNA Credit Card Master Trust #1991-1A 7.750 10/15/98 406,432
541,791 Nissan Auto Receivables Trust #1994-A 6.450 9/15/99 545,746
1,000,000 Circuit City Credit Card Master Trust #1994-2A 8.000 11/15/99 1,072,980
---------- ----------
$ 2,141,791 TOTAL ASSET-BACKED SECURITIES $2,228,050
---------- ----------
(Amortized Cost $2,138,181)
CORPORATE BONDS -- 18.6%
$ 700,000 General Motors Acceptance Corp. Medium Term Notes 7.600% 1/09/97 $713,272
200,000 Sears Roebuck & Co. Medium Term Notes 7.440 1/15/97 203,61
100,000 Champion International, Inc. 9.800 2/01/98 107,712
1,000,000 Smith Barney 5.500 1/15/99 985,998
1,000,000 Salomon Brothers 7.250 1/15/00 1,015,904
1,000,000 Paine Webber, Inc. 7.000 3/01/00 1,016,901
700,000 Progressive Corp. 10.000 12/15/00 814,594
500,000 Paine Webber, Inc. 9.250 12/15/01 562,295
1,000,000 Quebec Province 8.800 4/15/03 1,134,290
---------- ----------
$ 6,200,000 TOTAL CORPORATE BONDS (Amortized Cost $6,323,626) $6,554,578
---------- ----------
MUNICIPAL BONDS -- 3.0%
$ 1,000,000 Los Angeles Co., CA, Taxable Pension Obligation Bond 8.300% 6/30/02 $1,067,550
---------- ----------
(Amortized Cost $1,001,131)
$ 33,282,631 TOTAL INVESTMENTS AT VALUE -- 97.1%
===========
(Amortized Cost $33,548,518) $34,234,636
-----------
<PAGE>
<CAPTION>
Face Market
Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS(1) -- 2.1%
$ 760,000 Fifth Third Bank, 5.60%, dated 11/30/95, due 12/01/95,
------- repurchase proceeds $760,118 $ 760,000
-----------
$ 760,000 TOTAL REPURCHASE AGREEMENTS 760,000
======= -----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 99.2% $34,994,636
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 276,873
-----------
NET ASSETS -- 100.0% $35,271,509
===========
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
DWARF - A 15 year mortgage pool issued by FNMA.
REMIC - Real Estate Mortgage Investment Conduit.
GNOME - A 15 year mortgage pool issued by FHLMC.
GOLD - A 30 year mortgage pool issued by FHLMC with a shorter coupon payment delay period.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
<CAPTION>
MARKET
INVESTMENTS IN COMMON STOCK -- 96.4% SHARES VALUE
<S> <C> <C>
FINANCIAL AND INSURANCE -- 10.4%
American Express Co. 10,500 $ 446,250
American International Group, Inc. 5,750 516,063
Federal National Mortgage Assoc. 5,000 547,500
General Re Corp. 3,000 448,875
J.P. Morgan & Company, Inc. 7,000 549,500
-----------
$ 2,508,188
-----------
ENERGY AND RESOURCES -- 10.3%
Apache Corp. 10,000 $ 266,250
Mobil Corp. 5,000 521,875
Noble Affiliates, Inc. 20,000 542,500
Pandhandle Eastern Corp. 18,000 510,750
Royal Dutch Petroleum Co. 5,000 641,875
-----------
$ 2,483,250
-----------
INDUSTRIAL -- 9.6%
Illinois Tool Works, Inc. 7,100 $ 449,962
Ingersoll-Rand Co. 9,000 345,375
Thermo Electron Corp.* 18,000 891,000
Watts Industries, Inc. Class A 6,000 123,000
York International Corp. 11,500 514,625
-----------
$ 2,323,962
-----------
HEALTH CARE -- 8.4%
Abbot Laboratories 17,500 $ 710,937
Mallinckrodt Group, Inc. 7,000 238,875
Merck & Co., Inc. 8,000 495,000
U.S. Healthcare, Inc. 13,000 591,500
-----------
$ 2,036,312
-----------
ELECTRICAL EQUIPMENT -- 6.9%
AMP, Inc. 8,000 $ 321,000
General Electric Co. 9,000 605,250
Molex, Inc. Class A 18,812 587,875
Thomas & Betts Corp. 2,000 146,750
-----------
$ 1,660,875
-----------
TELECOMMUNICATIONS -- 6.1%
Cabletron Systems, Inc.* 7,000 $ 581,000
ECI Telecommunications, Ltd. 18,500 393,125
Newbridge Networks Corp.* 12,100 515,763
-----------
$ 1,489,888
-----------
<PAGE>
<CAPTION>
GROWTH & INCOME FUND (CONT'D)
MARKET
INVESTMENTS IN COMMON STOCK -- 96.4% SHARES VALUE
<S> <C> <C>
BASIC AND SPECIALTY CHEMICALS -- 5.7%
Avery-Dennison Corp. 8,000 $ 381,000
Great Lakes Chemical Corp. 8,500 604,563
Nalco Chemical Co. 6,000 183,750
Schulman (A.), Inc. 11,000 207,625
-----------
$ 1,376,938
-----------
MISCELLANEOUS -- 5.0%
Airtouch Communications, Inc.* 24,800 $ 722,300
Minnesota Mining & Manufacturing Co. 7,500 491,250
-----------
$ 1,213,550
-----------
HOUSEHOLD PRODUCTS -- 4.3%
Gillette Co. 7,000 $ 363,125
International Flavors & Fragrances, Inc. 7,500 383,437
Rubbermaid, Inc. 10,500 288,750
-----------
$ 1,035,312
-----------
UTILITIES-TELEPHONE -- 4.2%
BellSouth Corp. 6,600 $ 256,575
GTE Corp. 18,000 767,250
-----------
$ 1,023,825
-----------
RETAILING -- 3.8%
Bed Bath & Beyond, Inc.* 10,000 $ 328,750
Price/Costco, Inc.* 18,000 299,250
Toys R Us, Inc.* 13,000 302,250
-----------
$ 930,250
COMPUTER SYSTEMS AND SOFTWARE -- 3.1%
Adobe Systems, Inc. 6,000 $ 405,750
Sequent Computer Systems, Inc.* 21,500 341,312
-----------
$ 747,062
-----------
FOOD AND BEVERAGES -- 3.0%
PepsiCo, Inc. 9,000 $ 497,250
Sysco Corp. 7,500 229,688
-----------
$ 726,938
-----------
ELECTRONICS -- 2.8%
Motorola, Inc. 11,000 $ 673,750
-----------
PAPER AND FOREST PRODUCTS -- 2.7%
Union Camp Corp. 6,000 $ 294,750
Willamette Industries, Inc. 6,000 363,000
$ 657,750
-----------
LEISURE TIME -- 2.4%
Viacom, Inc. Class B* 12,000 $ 579,000
-----------
CONTAINERS -- 1.6%
Sonoco Products Co. 16,000 $ 400,000
-----------
<PAGE>
<CAPTION>
GROWTH & INCOME FUND (CONT'D)
MARKET
INVESTMENTS IN COMMON STOCK -- 96.4% SHARES VALUE
<S> <C> <C>
UTILITIES-ELECTRIC -- 1.6%
Montana Power Co. 17,000 $ 386,750
-----------
AEROSPACE/DEFENSE -- 1.5%
Boeing Co. 5,000 $ 364,375
-----------
MEDIA -- 1.1%
Donnelley (R.R.) & Sons Co. 7,000 $ 268,625
-----------
TRUCKING AND LEASING -- 1.0%
Landstar System, Inc.* 9,000 $ 231,750
-----------
STEEL -- 0.9%
LTV Corp.* 14,500 $ 210,250
-----------
TOTAL COMMON STOCK -- 96.4% (Cost $18,390,519) $ 23,328,600
-----------
<CAPTION>
FACE MARKET
REPURCHASE AGREEMENTS(1) -- 5.0% AMOUNT VALUE
<S> <C> <C>
Fifth Third Bank, 5.60%, dated 11/30/95, due 12/01/95
repurchase proceeds $1,210,188 $ 1,210,000 $ 1,210,000
----------- -----------
TOTAL REPURCHASE AGREEMENTS $ 1,210,000 $ 1,210,000
=========== -----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT
VALUE -- 101.4% $ 24,538,600
OTHER ASSETS AND LIABILITIES, NET -- (1.4)% ( 348,048)
-----------
NET ASSETS -- 100.0% $ 24,190,552
===========
<FN>
*Non-income producing security.
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
Brundage, Story and Rose Investment Trust (the Trust) was organized as an Ohio
business trust on October 1, 1990. The Trust offers two series of shares to
investors: the Brundage, Story and Rose Short/Intermediate Term Fixed-Income
Fund (the Bond Fund) and the Brundage, Story and Rose Growth & Income Fund
(the Equity Fund), (collectively, the Funds). The Trust commenced operations
on December 3, 1990, when Brundage, Story and Rose (the Adviser) purchased the
initial 5,000 shares of each Fund at $10 per share. The public offering of
shares commenced on January 2, 1991.
The following is a summary of the Trust's significant accounting policies:
Securities valuation -- The Funds' portfolio securities are valued as of the
close of the regular session of trading on the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Portfolio securities listed on stock
exchanges and securities traded in the over-the-counter market are valued at
the last sale price as of the close of business on the day the securities are
being valued. Securities not traded on a particular day, or for which the
last sale price is not readily available, are valued at the closing bid price
quoted by brokers that make markets in the securities. U.S. Government and
agency obligations, asset-backed securities and corporate bonds are valued at
their most recent bid price as obtained from one or more of the major market
makers for such securities or are valued at an estimated fair value obtained
from an independent pricing service based upon such factors as maturity,
coupon, issuer and type of security. If market quotations are not readily
available, securities may be valued at fair value as determined in good faith
by the Adviser consistent with procedures established by the Board of
Trustees.
Repurchase agreements, which are collateralized by U.S. Government
obligations, are valued at cost which, together with accrued interest,
approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian at the
Federal Reserve Bank. At the time each Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying securities,
including accrued interest, will be equal to or exceed the face amount of the
repurchase agreement. Each Fund enters into repurchase agreements only with
institutions deemed to be creditworthy by the Adviser, including the Funds'
custodian, banks having assets in excess of $10 billion and primary U.S.
Government securities dealers.
Share valuation -- The net asset value of each Fund is calculated daily by
dividing the total value of that Fund's assets, less liabilities, by the
number of shares outstanding. The offering and redemption price per share of
each Fund are equal to the net asset value per share.
Investment income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities
purchased are accreted/amortized in accordance with income tax regulations
which approximate generally accepted accounting principles.
Distributions to shareholders -- Dividends arising from net investment income
for the Bond Fund are declared daily and paid monthly. Dividends arising from
net investment income for the Equity Fund are declared and paid quarterly.
With respect to each Fund, net realized short-term capital gains, if any, may
be distributed throughout the year and net realized long-term capital gains,
if any, are distributed at least once each year. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Securities traded on a to-be-announced basis -- The Bond Fund frequently
trades portfolio securities on a "to-be-announced" (TBA) basis. In a TBA
transaction, the Fund has committed to purchase securities for which all
specific information is not yet known at the time of the trade, particularly
the face amount and maturity date in mortgage-backed and asset-backed
securities transactions. Securities purchased on a TBA basis are recorded on
the trade date, however, they are not settled until they are delivered to the
Fund, normally 15 to 45 days later. These transactions are subject to market
fluctuations and their current value is determined in the same manner as for
other portfolio securities. When effecting such transactions, assets of a
dollar amount sufficient to make payment for the portfolio securities to be
purchased are placed in a segregated account on the trade date.
<PAGE>
Organization expenses -- Expenses of organization, net of certain expenses
paid by the Adviser, have been capitalized and are being amortized on a
straight-line basis over five years.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its taxable net income, the Fund
(but not the shareholders) will be relieved of federal income tax on the
income distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during
the fiscal year ended November 30) plus undistributed amounts from prior
years.
The following information is based upon federal income tax cost of portfolio
investments (excluding repurchase agreements) as of November 30, 1995:
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE
TERM GROWTH
FIXED-INCOME & INCOME
FUND FUND
<S> <C> <C>
Gross unrealized appreciation 784,843 $5,115,317
Gross unrealized depreciation ( 98,725) ( 177,236)
----------- ----------
Net unrealized appreciation $686,118 $4,938,081
=========== ==========
Federal income tax cost $33,548,518 $18,390,519
=========== ===========
</TABLE>
As of November 30, 1995, the Bond Fund had a capital loss carryforward of
$513,223 for federal income tax purposes, which expires on November 30, 2002.
This capital loss carryforward may be utilized in future years to offset net
realized capital gains prior to distributing such gains to shareholders.
<PAGE>
2. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investment securities,
other than short-term investments, amounted to $13,020,019 and $15,435,014,
respectively, for the Bond Fund and $8,822,411 and $9,124,262, respectively,
for the Equity Fund during the year ended November 30, 1995.
3. TRANSACTIONS WITH AFFILIATES
Certain Trustees and officers of the Trust are partners of Brundage, Story and
Rose (the Adviser). Certain officers of the Trust are officers of MGF Service
Corp. (MGF), the administrative services agent, shareholder servicing and
transfer agent, and accounting services agent for the Trust, and of Midwest
Group Financial Services, Inc. (MGFS), the underwriter of the Funds' shares.
At November 30, 1995, the Adviser, partners of the Adviser and certain
employee benefit plans of the Adviser collectively owned 13% and 35% of the
shares of beneficial interest outstanding of the Bond Fund and the Equity
Fund, respectively.
ADVISORY AGREEMENT
Each Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. Under the Advisory Agreement, the Bond Fund and the Equity
Fund each pay the Adviser a fee, computed and accrued daily and paid monthly,
at an annual rate of .50% and .65%, respectively, of its average daily net
assets.
In order to reduce the operating expenses of the Bond Fund, the Adviser
voluntarily waived $171,125 of its investment advisory fees during the year
ended November 30, 1995.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement between the Trust and
MGF, MGF supplies non-investment related statistical and research data,
internal regulatory compliance services and executive and administrative
services for the Funds. MGF supervises the preparation of tax returns,
reports to shareholders of the Funds, reports to and filings with the
Securities and Exchange Commission and state securities commissions, and
materials for meetings of the Board of Trustees. For the performance of these
administrative services, MGF receives a monthly fee based on each Fund's
average daily net assets.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and MGF, MGF maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, MGF receives a monthly fee based on the
number of shareholder accounts in each Fund. In addition, each Fund pays
out-of-pocket expenses, including but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and
MGF, MGF calculates the daily net asset value per share and maintains the
financial books and records of each Fund. For these services, MGF receives a
monthly fee from each Fund.
<PAGE>
UNDERWRITING AGREEMENT
Under the terms of the Underwriting Agreement between the Trust and MGFS, MGFS
serves as the exclusive underwriter of the Funds' shares.
PLAN OF DISTRIBUTION
The Trust has a plan of distribution (the Plan) under which each Fund may
incur or reimburse the Adviser for expenses related to the distribution and
promotion of capital shares. The annual limitation for payment of such
expenses under the Plan is .25% of the average daily net assets of each Fund.
4. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares sold and redeemed as shown in the
Statements of Changes in Net Assets are the result of the following capital
share transactions for the years ended November 30, 1995 and 1994:
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE TERM
FIXED-INCOME FUND GROWTH & INCOME FUND
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Shares sold 540,529 1,304,715 228,968 205,874
Shares issued in reinvestment
of distributions to shareholders 177,844 190,946 76,457 52,894
Shares redeemed ( 991,151) ( 1,951,915) ( 197,103) ( 253,261)
---------- ------------ ---------- ----------
Net increase (decrease) in shares outstanding ( 272,778) ( 456,254) 108,322 5,507
Shares outstanding, beginning of year 3,560,893 4,017,147 1,513,671 1,508,164
---------- ------------ ---------- ----------
Shares outstanding, end of year 3,288,115 3,560,893 1,621,993 1,513,671
========== ============ ========== ==========
</TABLE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP Logo
To the Shareholders and Board of Trustees
of the Brundage, Story and Rose Investment Trust:
We have audited the accompanying statements of assets and liabilities of the
Short/Intermediate Term Fixed-Income Fund and the Growth & Income Fund of the
Brundage, Story and Rose Investment Trust (an Ohio business trust), including
the portfolios of investments, as of November 30, 1995, the related statements
of operations for the year then ended, and the statements of changes in net
assets and the financial highlights for the periods indicated thereon. These
financial statements and financial highlights are the responsibility of the
Trust's 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 audit 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, 1995, 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
Short/Intermediate Term Fixed-Income Fund and the Growth & Income Fund of the
Brundage, Story and Rose Investment Trust as of November 30, 1995, the results
of their operations for the year then ended, and the changes in their net
assets and the financial highlights for the periods indicated thereon, in
conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio,
December 22, 1995
<PAGE>
BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202
Nationwide: (Toll Free) 800-543-8721
Cincinnati: 629-2000
BOARD OF TRUSTEES
Francis S. Branin, Jr.
Malcolm D. Clarke, Jr.
Cheryl Grandfield
Antoinette Geyelin Hoar
Jerome B. Lieber
William M.R. Mapel
James G. Pepper
Crosby R. Smith
Charles G. Watson
INVESTMENT ADVISER
Brundage, Story and Rose
One Broadway
New York, New York 10004
UNDERWRITER
Midwest Group Financial
Services, Inc.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202
TRANSFER AGENT
MGF Service Corp.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICES
Nationwide: (Toll Free) 800-320-2212
Cincinnati: 629-2070
<PAGE>
BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
Annual Report
November 30, 1995
Short/Intermediate Term
Fixed-Income Fund
Growth & Income Fund
LOGO
BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
Investment Counsel Since 1932
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000868662
<NAME> BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> GROWTH AND INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-1-1994
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 19,600,519
<INVESTMENTS-AT-VALUE> 24,538,600
<RECEIVABLES> 53,664
<ASSETS-OTHER> 1,159
<OTHER-ITEMS-ASSETS> 649
<TOTAL-ASSETS> 24,594,072
<PAYABLE-FOR-SECURITIES> 290,805
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 112,715
<TOTAL-LIABILITIES> 403,520
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,093,024
<SHARES-COMMON-STOCK> 1,621,993
<SHARES-COMMON-PRIOR> 1,513,671
<ACCUMULATED-NII-CURRENT> 25,006
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,134,441
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,938,081
<NET-ASSETS> 24,190,552
<DIVIDEND-INCOME> 405,594
<INTEREST-INCOME> 14,004
<OTHER-INCOME> 0
<EXPENSES-NET> 307,951
<NET-INVESTMENT-INCOME> 111,647
<REALIZED-GAINS-CURRENT> 1,134,441
<APPREC-INCREASE-CURRENT> 3,708,141
<NET-CHANGE-FROM-OPS> 4,954,229
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 97,033
<DISTRIBUTIONS-OF-GAINS> 835,887
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 228,968
<NUMBER-OF-SHARES-REDEEMED> 197,103
<SHARES-REINVESTED> 76,457
<NET-CHANGE-IN-ASSETS> 5,369,653
<ACCUMULATED-NII-PRIOR> 10,392
<ACCUMULATED-GAINS-PRIOR> 835,887
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 138,193
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 307,951
<AVERAGE-NET-ASSETS> 21,275,187
<PER-SHARE-NAV-BEGIN> 12.43
<PER-SHARE-NII> .07
<PER-SHARE-GAIN-APPREC> 3.02
<PER-SHARE-DIVIDEND> .06
<PER-SHARE-DISTRIBUTIONS> .55
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.91
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000868662
<NAME> BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
<SERIES>
<NUMBER> 2
<NAME> SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-1-1994
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 34,334,046
<INVESTMENTS-AT-VALUE> 34,994,636
<RECEIVABLES> 375,823
<ASSETS-OTHER> 2,044
<OTHER-ITEMS-ASSETS> 672
<TOTAL-ASSETS> 35,373,175
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 101,666
<TOTAL-LIABILITIES> 101,666
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 35,098,614
<SHARES-COMMON-STOCK> 3,288,115
<SHARES-COMMON-PRIOR> 3,560,893
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (513,223)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 686,118
<NET-ASSETS> 35,271,509
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,370,970
<OTHER-INCOME> 0
<EXPENSES-NET> 209,428
<NET-INVESTMENT-INCOME> 2,161,542
<REALIZED-GAINS-CURRENT> 109,142
<APPREC-INCREASE-CURRENT> 2,531,772
<NET-CHANGE-FROM-OPS> 4,802,456
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,161,542
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 540,529
<NUMBER-OF-SHARES-REDEEMED> 991,151
<SHARES-REINVESTED> 177,844
<NET-CHANGE-IN-ASSETS> (118,153)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (622,365)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 174,030
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 380,553
<AVERAGE-NET-ASSETS> 34,806,061
<PER-SHARE-NAV-BEGIN> 9.94
<PER-SHARE-NII> .64
<PER-SHARE-GAIN-APPREC> .79
<PER-SHARE-DIVIDEND> .64
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.73
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
