BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
Semi-Annual Report
May 31, 1997
(Unaudited)
Short/Intermediate Term
Fixed-Income Fund
Equity Fund
Logo:
BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
Investment Counsel Since 1932
<PAGE>
BRUNDAGE,
STORY AND ROSE
INVESTMENT TRUST
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202-4094
Nationwide: (Toll Free) 800-543-8721
Cincinnati: 513-629-2000
BOARD OF TRUSTEES
Francis S. Branin, Jr.
Malcolm D. Clarke, Jr.
Cheryl L.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, LLC
One Broadway
New York, New York 10004
UNDERWRITER
Countrywide Investments, Inc.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202-4094
TRANSFER AGENT
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICES
Nationwide: (Toll Free) 800-320-2212
Cincinnati: 513-629-2070
<PAGE>
Letter To Shareholders
July 22, 1997
I am pleased to report to you on the progress of your investments over the
first six months of fiscal 1997.
The Economy and Financial Markets
After two exceptional years for investors in 1995 and 1996, it seemed
reasonable to expect the market to take a breather in 1997 and to consolidate
its gains. In fact, during the first quarter, fears of higher interest rates and
slowing profit growth started to take their toll after an early run-up, and
stocks ended the quarter with little or no gain.
Shaking off its worries, the market bottomed early in April but for the
three months ended June 1997 the stock market gain, as measured by the S&P, was
17.4%; this was the highest single quarterly gain since this incredible rally
began in early 1995. What a difference a quarter makes! Perhaps more important
to the long-term health of the market, the second quarter of 1997 was the first
period since early 1996 during which the stocks of small and mid-sized companies
began to participate significantly in the market's advance. While still lagging
behind the major large capitalization companies, indices representing other than
just the largest corporations showed much improved performance and have been a
tonic to most investors.
As has been the case for the last two years, the engine behind higher stock
prices continues to be the combined elixirs of strong corporate profits driven
by a good economy, continuing low interest rates thanks to a lack of
inflationary pressures and an attractive supply and demand equation for common
stocks. We have discussed in detail a number of times over the last two years
each of these three supports to the market - and each remains firmly in place.
Economic growth was far stronger than most analysts expected in the first
quarter, driving profits up. On the other hand, the economy cooled sufficiently
during the second calendar quarter to keep inflationary pressures well under
heel. Capital flows into common stocks, following a temporary spring lull, have
also remained strong while the shrinkage of equity supply through corporate
acquisitions and share buy-backs has continued.
Thus, we remain very close to that proverbial "best of both possible
worlds" with economic growth strong enough to drive corporate profits upward,
but not brisk enough to reignite inflation.
How High is Too High?
The questions that serious investors with more than only a short-term
memory must ask are: is the market overvalued; what is a reasonable return to
expect from investing in common stocks; and what are the most attractive areas
in the market currently?
While stock prices currently are undeniably high relative to long-term
historical benchmarks, merely looking at stock prices in this historical context
without also focusing on the unique aspects of the current environment can be
misleading. The current economic expansion, at 25 quarters so far, is the third
longest since World War II, behind those of 1960 (34 quarters) and 1982 (30
quarters). Yet during this period, the economy has actually grown at a slower
rate (2.8%) than during the longest two periods of extended growth. Despite this
modest economic expansion, corporate profit growth has already passed the
cumulative improvement in profits during the previous two longer expansions. Not
only have earnings improved at a faster rate than the historical norm, but
profitability continues to widen to rates far above levels achieved in prior
economic expansions.
To some extent then, the current stock market advance can be seen as a
quite logical reflection in equity prices of the generally improved
profitability of corporate America. One has to ask, of course, whether the new
found profitability in our economy is sustainable or, as we have discussed in
past updates, is it being driven largely by the combined forces of heavy
corporate write-offs in the early 1990's and ongoing share repurchases. While
the last two factors have undeniably augmented corporate profitability, there
are, in fact, tangible positive differences in American industry now versus
earlier periods.
Unlike in the past, the current growth in corporate profits has been
accomplished not through steadily rising prices but through real sales growth
accompanied by significant gains in productivity and declining unit costs. The
amazing cost savings realized by utilizing ever better and ever less expensive
information technologies has been a powerful positive force and one which is, we
believe, largely unrecognized in published economic statistics. There is a
growing school of economic thought that embraces the theory that our economy has
undergone a fundamental change - that "this time it is really different". While
we do not believe that hundreds of years of economic history have been now
rendered meaningless, we do feel that the extraordinary measures taken by U. S.
corporations to improve their competitive positions deserve to be reflected in
higher valuations for many companies and industries.
<PAGE>
Notwithstanding the very positive forces at work in our economy and the
very favorable current economic environment, we are at least somewhat concerned
by the degree of enthusiasm in today's markets and by the extremely high
valuations of a few very large and popular consumer growth stocks.
Brundage, Story and Rose Equity Fund
For the six months ended 5/31/97, your Equity Fund generated a very strong
return of 12.3%, marking yet another period of extraordinary stock market
strength. This performance is particularly gratifying in light of the fact that
the market has been driven by a small group of very highly valued, perhaps
overvalued, large capitalization companies which, because of the risks
associated with these valuation levels, we have not emphasized in your Fund.
Indeed, most broad measures of the market are not at the lofty heights of the
S&P 500 Index and the Dow Jones Industrial Index. One popular index of small and
mid-sized companies, the Russell 2000, generated a return of only 8.4% over the
same six-month period.
The best performing areas in your Fund continue to be technology,
financials and consumer staples, all driven by strong operating results. The
portfolio has also profited from the ongoing trend toward corporate
consolidation; a number of your investments have been acquired at prices which
resulted in substantial profits. In terms of portfolio focus looking forward, to
reiterate what we indicated above, we remain concentrated in mid-sized
businesses which combine the attributes of good profitability with less lofty
valuations than the market as a whole. From an industry standpoint, and again
because of rising valuations in the marketplace, we have recently reduced our
emphasis on technology while continuing to broaden our exposure to the consumer
area and to companies benefiting from deregulatory trends.
Brundage, Story and Rose
Short/Intermediate Term Fund
Interest rates on notes and bonds climbed significantly during the six
months ended 5/31/97. Two year and longer maturity Treasury issues increased in
yield approximately 60 basis points, producing negative price changes for most
bonds during the period. For example, three and five year maturity Treasuries
experienced price declines of 1 to 3% during the six months ended 5/31/97. These
negative price changes were even worse for ten and thirty year bonds which
turned in 4 to 7% price declines.
The total return (price change plus interest income) for three year
Treasury bonds during the six months ended 5/31/97 was 1.36%, while the longer
maturity five year and ten year maturity Treasury returns were .16% and (1.36%)
respectively.
Your Fund's total return during the first six months of this fiscal year
was 1.15%. This return, while low, was positive and compares favorably with
Treasury bond returns of similar maturity to those held in the portfolio. The
30-day yield on the Fund at 5/31/97 was 6.09% which compares favorably to 3
month Treasury bills at 4.93%.
The Fund's favorable relative returns were due to the continued focus on
individual bond selection by our portfolio managers, each focusing on a
different sector of the bond market. In general, our issue-by-issue valuation
led to a decline in Treasury and mortgage-backed holdings and increases in
asset-backed and corporate bond weightings during the past six months.
In summary, we feel that both of your Funds are well-positioned relative to
economic and market conditions as we look toward the balance of fiscal 1997.
Sincerely yours,
Malcolm D. Clarke, Jr.
President
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Short/
Intermediate
Term
Fixed-Income Equity
Fund Fund
<S> <C> <C>
ASSETS
Investments in securities:
At amortized cost (original cost $31,564,100 and $20,337,676,
respectively) ........................................................... $31,600,998 $20,337,676
=========== ===========
At market value (Note 2) ................................................... $31,508,423 $29,538,038
Investments in repurchase agreements (Note 2) ...................................... 628,000 1,559,000
Cash ............................................................................... 547 931
Receivable for capital shares sold ................................................. 38,780 18,856
Interest and principal paydowns receivable ......................................... 357,708 439
Dividends receivable ............................................................... -- 47,886
Receivable for securities sold ..................................................... -- 989,937
Other assets ....................................................................... 11,614 5,449
----------- -----------
TOTAL ASSETS ............................................................... 32,545,072 32,160,536
----------- -----------
LIABILITIES
Payable for capital shares redeemed ................................................ 16,265 39,588
Dividends payable .................................................................. 33,143 --
Payable to affiliates (Note 4) ..................................................... 9,550 25,957
Payable for securities purchased ................................................... -- 327,400
Other accrued expenses and liabilities ............................................. 7,047 14,135
----------- -----------
TOTAL LIABILITIES .......................................................... 66,005 407,080
----------- -----------
NET ASSETS ......................................................................... $32,479,067 $31,753,456
=========== ===========
Net assets consist of:
Paid-in capital .................................................................... $32,990,791 $20,801,339
Undistributed net investment income ................................................ -- 23,299
Accumulated net realized gains (losses) from security transactions ................. (419,149) 1,728,456
Net unrealized appreciation/depreciation on investments ............................ (92,575) 9,200,362
----------- -----------
Net assets ......................................................................... $32,479,067 $31,753,456
=========== ===========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ......................................... 3,093,582 1,802,911
=========== ===========
Net asset value, offering price and redemption price per share (Note 2) ............ $ 10.50 $ 17.61
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1997 (Unaudited)
Short/
Intermediate
Term
Fixed-Income Equity
Fund Fund
<S> <C> <C>
INVESTMENT INCOME
Interest .................................................................. $1,067,368 $ 25,191
Dividends ................................................................. -- 210,641
---------- ----------
TOTAL INVESTMENT INCOME .......................................... 1,067,368 235,832
---------- ----------
EXPENSES
Investment advisory fees (Note 4) ......................................... 81,550 92,232
Administrative services fees (Note 4) ..................................... 32,761 28,483
Accounting services fees (Note 4) ......................................... 18,000 16,200
Professional fees ......................................................... 8,083 8,083
Transfer agent and shareholder service fees (Note 4) ...................... 7,200 7,200
Registration fees ......................................................... 7,415 6,240
Trustees' fees and expenses ............................................... 6,289 6,289
Insurance expense ......................................................... 4,385 3,660
Postage and supplies ...................................................... 3,188 2,991
Reports to shareholders ................................................... 2,217 2,435
Custodian fees ............................................................ 2,085 1,981
Pricing expense ........................................................... 3,202 731
Distribution expenses (Note 4) ............................................ 1,253 1,074
Other expenses ............................................................ 27 4,570
---------- ----------
TOTAL EXPENSES ................................................... 177,655 182,169
Fees waived by the Adviser (Note 4) ....................................... (71,640) --
---------- ----------
NET EXPENSES ..................................................... 106,015 182,169
---------- ----------
NET INVESTMENT INCOME .............................................................. 961,353 53,663
---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions .................... (69,933) 1,728,456
Net change in unrealized appreciation/depreciation on investments ......... (530,133) 1,701,063
---------- ----------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS .......................... (600,066) 3,429,519
---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ......................................... $ 361,287 $3,483,182
========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended May 31, 1997 and November 30, 1996
<CAPTION>
Short/Intermediate Term
Fixed-Income Fund Equity Fund
Six Months Year Six Months Year
Ended Ended Ended Ended
May 31, 1997 November 30, May 31, 1997 November 30,
(Unaudited) 1996 (Unaudited) 1996
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ................................ $ 961,353 $ 1,925,771 $ 53,663 $ 105,845
Net realized gains (losses) from security transactions (69,933) 164,007 1,728,456 2,298,821
Net change in unrealized appreciation/depreciation
on investments ............................... (530,133) (248,560) 1,701,063 2,561,218
----------- ----------- ---------- -----------
Net increase in net assets from operations .................... 361,287 1,841,218 3,483,182 4,965,884
----------- ----------- ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ........................... (961,353) (1,925,771) (43,058) (118,157)
From net realized gains from security transactions ... -- -- (2,298,821) (1,134,441)
----------- ----------- ---------- -----------
Decrease in net assets from distributions to
shareholders ......................................... (961,353) (1,925,771) (2,341,879) (1,252,598)
----------- ----------- ---------- -----------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from shares sold ............................ 2,324,748 4,540,639 2,270,896 2,369,871
Net asset value of shares issued in reinvestment of
distributions to shareholders ................ 770,068 1,615,646 2,291,502 1,235,320
Payments for shares redeemed ......................... (3,392,234) (7,966,690) (1,490,367) (3,968,907)
----------- ----------- ---------- -----------
Net increase (decrease) in net assets
from capital share transactions ...................... (297,418) (1,810,405) 3,072,031 (363,716)
----------- ----------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ......................... (897,484) (1,894,958) 4,213,334 3,349,570
NET ASSETS:
Beginning of period .................................. 33,376,551 35,271,509 27,540,122 24,190,552
----------- ----------- ---------- -----------
End of period ........................................ $32,479,067 $33,376,551 $31,753,456 $27,540,122
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME ........................... $ -- $ -- $ 23,299 $ 12,694
=========== =========== =========== ===========
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
Six
Months
Ended Year Year Year Year Year
May 31, Ended Ended Ended Ended Ended
1997 Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
(Unaudited) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 10.69 $ 10.73 $ 9.94 $ 10.77 $ 10.49 $ 10.43
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income ..................... 0.31 0.62 0.64 0.59 0.64 0.69
Net realized and unrealized
gains (losses) on investments .......... (0.19) (0.04) 0.79 (0.79) 0.28 0.06
------- ------- ------- ------- ------- -------
Total from investment operations ................... 0.12 0.58 1.43 (0.20) 0.92 0.75
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income ...... (0.31) (0.62) (0.64) (0.59) (0.64) (0.69)
Distributions from net realized gains ..... -- -- -- (0.04) -- --
------- ------- ------- ------- ------- -------
Total distributions ................................ (0.31) (0.62) (0.64) (0.63) (0.64) (0.69)
------- ------- ------- ------- ------- -------
Net asset value at end of period ................... $ 10.50 $ 10.69 $ 10.73 $ 9.94 $ 10.77 $ 10.49
======= ======= ======= ======= ======= =======
Total return ....................................... 2.30%(B) 5.65% 14.84% (1.98%) 9.00% 7.38%
======= ======= ======= ======= ======= =======
Net assets at end of period (000's) ................ $32,479 $33,377 $35,272 $35,390 $43,272 $32,025
======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets(A) ......... 0.65%(B) 0.65% 0.60% 0.50% 0.50% 0.50%
Ratio of net investment income to average net assets 5.89%(B) 5.90% 6.21% 5.67% 5.95% 6.50%
Portfolio turnover rate ............................ 67%(B) 40% 39% 57% 29% 24%
<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%(B) for the six months
ended May 31, 1997 and 1.09%, 1.09%, 1.06%, 1.11% and 1.30% for the years
ended November 30, 1996, 1995, 1994, 1993 and 1992, respectively (Note 4).
(B) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
EQUITY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
Per Share Data for a Share Outstanding Throughout Each Period
Six
Months
Ended Year Year Year Year Year
May 31, Ended Ended Ended Ended Ended
1997 Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
(Unaudited) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ............. $ 17.18 $ 14.91 $ 12.43 $ 12.70 $ 12.26 $ 10.85
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income ..................... 0.03 0.06 0.07 0.06 0.09 0.12
Net realized and unrealized
gains on investments ............. 1.85 2.97 3.02 0.11 0.76 1.40
------- ------- ------- ------- ------- -------
Total from investment operations ................... 1.88 3.03 3.09 0.17 0.85 1.52
------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income ...... (0.02) (0.07) (0.06) (0.06) (0.10) (0.11)
Distributions from net realized gains ..... (1.43) (0.69) (0.55) (0.38) (0.31) --
------- ------- ------- ------- ------- -------
Total distributions ................................ (1.45) (0.76) (0.61) (0.44) (0.41) (0.11)
------- ------- ------- ------- ------- -------
Net asset value at end of period ................... $ 17.61 $ 17.18 $ 14.91 $ 12.43 $ 12.70 $ 12.26
======= ======= ======= ======= ======= =======
Total return ....................................... 24.73%(C) 21.27% 26.08% 1.35% 6.83% 14.39%
======= ======= ======= ======= ======= =======
Net assets at end of period (000's) ................ $31,753 $27,540 $24,191 $18,821 $19,150 $15,081
======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets(A) ......... 1.28%(C) 1.30% 1.45% 1.50% 1.50% 1.50%
Ratio of net investment income to average net assets 0.38%(C) 0.42% 0.52% 0.51% 0.74% 1.05%
Portfolio turnover rate ............................ 40%(C) 44% 42% 44% 45% 44%
Average commission rate per share(B) ............... $0.0497 $0.0490 -- -- -- --
<FN>
(A) Absent fee waivers by the Adviser, the ratios of expenses to average
net assets would have been 1.58% and 1.78% for the years ended November 30, 1993
and 1992, respectively.
(B) Beginning with the year ended November 30, 1996, the Fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
(C) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
PORTFOLIO OF INVESTMENTS
May 31, 1997 (Unaudited
<CAPTION>
Par Market
Value INVESTMENT SECURITIES Rate Maturity Value
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 21.8%
$ 1,000,000 U.S. Treasury Notes ............................. 6.250% 5/31/00 $ 996,875
1,000,000 U.S. Treasury Notes ............................. 6.625 7/31/01 1,005,000
1,200,000 U.S. Treasury Notes ............................. 5.750 8/15/03 1,150,500
1,000,000 U.S. Treasury Notes ............................. 7.250 5/15/04 1,035,313
1,000,000 U.S. Treasury Notes ............................. 7.500 2/15/05 1,050,625
1,000,000 U.S. Treasury Notes ............................. 6.500 8/15/05 989,375
500,000 U.S. Treasury Notes ............................. 6.875 5/15/06 506,250
350,000 U.S. Treasury Notes ............................. 7.000 7/15/06 357,219
- ----------- -----------
$ 7,050,000 TOTAL U.S. TREASURY OBLIGATIONS (Cost $7,194,021) $ 7,091,157
- ----------- -----------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
SECURITIES -- 32.4%
$ 157,696 Federal Home Loan Mortgage Corp. GOLD #M-14868 .. 7.500% 8/01/97 $ 158,426
254,217 Federal Home Loan Mortgage Corp. GOLD #N-90875 .. 7.500 2/01/99 257,458
9,734 Government National Mortgage Assoc. #114468 ..... 9.500 7/15/99 10,015
623,981 Federal Home Loan Mortgage Corp. GOLD #G-50274 .. 7.500 6/01/00 631,712
13,373 Federal Home Loan Mortgage Corp. GNOME #200068 .. 8.000 3/01/02 13,610
47,267 Federal National Mortgage Assoc. DWARF #51935 ... 8.000 4/01/02 48,232
1,000,000 Federal National Mortgage Assoc. REMIC #93-52E .. 6.000 4/25/05 988,790
60,280 Federal Home Loan Mortgage Corp. #140094 ........ 7.500 5/01/05 60,729
500,000 Federal Home Loan Mortgage Corp. REMIC #1404-D .. 6.800 1/15/06 498,050
82,658 Federal National Mortgage Assoc. DWARF #50480 ... 8.000 9/01/06 84,780
700,000 Federal National Mortgage Assoc. REMIC #92-24H .. 7.500 11/25/06 708,615
686,255 Government National Mortgage Assoc. #362109 ..... 9.000 9/15/08 720,197
1,500,000 Federal Home Loan Mortgage Corp. REMIC #1523-PE . 6.000 10/15/15 1,482,375
1,000,000 Federal National Mortgage Assoc. REMIC #93-20PE . 5.900 5/25/16 988,969
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1522-C .. 6.000 8/15/16 985,790
1,000,000 Federal National Mortgage Assoc. REMIC #94-29PE . 6.000 5/25/18 981,330
17,673 Government National Mortgage Assoc. #285639 ..... 9.000 2/15/20 18,805
1,000,000 Federal Home Loan Mortgage Corp. REMIC #1699-C .. 6.200 2/15/24 988,240
887,469 Federal National Mortgage Assoc. #250322 ........ 7.500 7/01/25 885,854
- ----------- -----------
$10,540,603 TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
- ----------- SECURITIES (Cost $10,521,892).................. $10,511,977
-----------
OTHER MORTGAGE-BACKED SECURITIES -- 7.8%
$ 545,415 Advanta Home Equity Loan Trust #92-1A ........... 7.875% 9/25/08 $ 557,016
1,000,000 CMC Securities Corp. III #94-B .................. 6.000 2/25/09 982,130
1,000,000 Bear Stearns Mortgage Securities, Inc. #96-3-A2 . 7.240 6/25/27 1,002,900
- ----------- -----------
$ 2,545,415 TOTAL OTHER MORTGAGE-BACKED SECURITIES
- -----------
(Cost $2,536,212).............................. $ 2,542,046
-----------
<PAGE>
<CAPTION>
SHORT/INTERMEDIATE TERM FIXED-INCOME FUND (continued)
Par Market
Value INVESTMENT SECURITIES Rate Maturity Value
<S> <C> <C> <C> <C>
ASSET-BACKED SECURITIES -- 13.1%
$ 173,255 Nissan Auto Receivables Trust #1994-A ........... 6.450% 9/15/99 $ 173,885
1,000,000 Circuit City Credit Card Trust #1994-2-A ........ 8.000 11/15/99 1,032,712
1,000,000 Banc One Credit Card Trust #1994-C-A ............ 7.800 12/15/00 1,023,220
1,000,000 J.C. Penney Credit Card Trust #B-A .............. 8.950 10/15/01 1,049,064
1,000,000 First Bank Corporate Card Trust #1997-1-A ....... 6.400 2/15/03 984,010
- ----------- -----------
$ 4,173,255 TOTAL ASSET-BACKED SECURITIES (Cost $4,244,788) . $ 4,262,891
- ----------- -----------
CORPORATE BONDS -- 21.9%
$ 100,000 Champion International Corp. .................... 9.800% 2/01/98 $ 102,417
1,000,000 Smith Barney .................................... 5.500 1/15/99 985,133
1,000,000 Lehman Brothers, Inc. ........................... 6.125 2/01/01 970,270
1,000,000 Ford Motor Credit Co. Medium Term Notes ......... 5.900 2/23/01 968,150
1,000,000 General Motors Acceptance Corp. - Global Bond ... 6.750 2/07/02 989,989
1,000,000 Quebec Province ................................. 8.800 4/15/03 1,083,080
1,000,000 U.S. West Capital Funding, Inc. ................. 7.300 1/15/07 986,381
1,000,000 Bank One Corp. .................................. 7.600 5/01/07 1,014,932
- ----------- -----------
$ 7,100,000 TOTAL CORPORATE BONDS (Cost $7,104,085) ......... $ 7,100,352
- ----------- -----------
$31,409,273 TOTAL INVESTMENTS AT VALUE-- 97.0%
- ----------- (Cost $31,600,998) ............................ $31,508,423
-----------
================================================================================================================================
<CAPTION>
Face Market
Amount REPURCHASE AGREEMENTS(1) -- 1.9% Value
<S> <C> <C>
$ 628,000 Fifth Third Bank, 5.07%, dated 5/30/97, due 6/02/97, repurchase proceeds $628,265 $ 628,000
- ----------- -----------
$ 628,000 TOTAL REPURCHASE AGREEMENTS ..................................................... $ 628,000
=========== -----------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 98.9%..................... $32,136,423
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.1%..................................... 342,644
-----------
NET ASSETS-- 100.0%.............................................................. $32,479,067
===========
<FN>
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
DWARF - A 15 year mortgage pool issued by FNMA.
GNOME - A 15 year mortgage pool issued by FHLMC.
REMIC - Real Estate Mortgage Investment Conduit.
GOLD - A 30 year mortgage pool issued by FHLMC with a shorter coupon payment
delay period.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
EQUITY FUND
PORTFOLIO OF INVESTMENTS
May 31, 1997 (Unaudited)
<CAPTION>
Market
COMMON STOCK -- 93.0% ................ Shares Value
<S> <C> <C>
CAPITAL GOODS -- 14.3%
AlliedSignal, Inc. ................... 8,000 $ 614,000
Avery Dennison Corp. ................. 16,000 602,000
The Boeing Co. ....................... 4,000 421,000
General Electric Co. ................. 5,600 338,100
Illinois Tool Works, Inc. ............ 9,400 466,475
Molex, Inc. - Class A ................ 29,765 1,078,981
Thermo Electron Corp.* ............... 29,500 1,017,750
----------
$4,538,306
----------
FINANCIALS -- 12.1%
American Express Co. ................. 12,500 $ 868,750
American International Group, Inc. ... 5,750 778,406
Chubb Corp. .......................... 11,900 725,900
Fannie Mae ........................... 22,700 990,288
J.P. Morgan & Company, Inc. .......... 4,500 483,750
----------
$3,847,094
----------
TECHNOLOGY -- 11.7%
Adobe Systems, Inc. .................. 6,500 $ 290,063
Cabletron Systems, Inc.* ............. 18,500 814,000
Computer Sciences Corp.* ............. 10,000 773,750
Motorola, Inc. ....................... 9,000 597,375
Sequent Computer Systems, Inc.* ...... 40,000 675,000
VeriFone, Inc.* ...................... 11,500 587,938
----------
$3,738,126
----------
CONSUMER STAPLES -- 10.9%
American Radio Systems Corp.* ........ 13,000 $ 484,250
Colgate-Palmolive Co. ................ 8,200 508,400
The Walt Disney Co. .................. 4,000 327,500
Gillette Co. ......................... 3,500 311,062
PepsiCo, Inc. ........................ 20,800 764,400
Sysco Corp. .......................... 15,000 523,125
Tupperware Corp. ..................... 8,500 308,125
Viacom, Inc. - Class B* .............. 8,000 237,500
----------
$3,464,362
----------
ENERGY -- 10.5%
Amoco Corp. .......................... 6,500 $ 580,937
Exxon Corp. .......................... 6,000 355,500
The Louisiana Land and Exploration Co. 12,800 659,200
Mobil Corp. .......................... 5,000 699,375
Noble Affiliates, Inc. ............... 8,300 349,638
Royal Dutch Petroleum Co. ............ 3,500 683,375
----------
$3,328,025
----------
<PAGE>
<CAPTION>
EQUITY FUND (continued)
Market
COMMON STOCK -- 93.0% .................. Shares Value
<S> <C> <C>
HEALTH CARE -- 10.1%
Abbott Laboratories .................... 15,000 $ 945,000
Merck & Co., Inc. ...................... 5,000 449,375
Schering-Plough Corp. .................. 10,000 907,500
SmithKline Beecham PLC - ADR ........... 10,200 892,500
----------
$3,194,375
----------
BASIC MATERIALS -- 7.0%
Ecolab, Inc. ........................... 18,100 $ 753,413
International Flavors & Fragrances, Inc. 11,000 488,125
Sonoco Products Co. .................... 18,500 538,812
Willamette Industries, Inc. ............ 6,000 447,000
----------
$2,227,350
----------
COMMUNICATION SERVICES -- 7.0%
AirTouch Communications, Inc.* ......... 33,400 $ 931,025
AT&T Corp. ............................. 16,200 597,375
BellSouth Corp. ........................ 6,600 299,475
GTE Corp. .............................. 9,000 397,125
----------
$2,225,000
----------
UTILITIES -- 4.8%
Enron Corp. ............................ 13,000 $ 529,750
Montana Power Co. ...................... 16,000 364,000
PanEnergy Corp. ........................ 13,300 621,775
----------
$1,515,525
----------
CONSUMER CYCLICALS -- 2.4%
AutoZone, Inc.* ........................ 20,700 $ 483,862
Nike, Inc. - Class B ................... 5,100 290,700
----------
$ 774,562
----------
TRANSPORTAITON -- 2.2%
Landstar System, Inc.* ................. 25,500 $ 685,313
----------
TOTAL COMMON STOCK (Cost $20,337,676) .. $29,538,038
-----------
================================================================
<CAPTION>
Face Market
REPURCHASE AGREEMENTS(1) -- 4.9% Amount Value
<S> <C> <C>
Fifth Third Bank, 5.07%, dated 5/30/97,
due 6/02/97, repurchase proceeds
$1,559,659............................ $1,559,000 $ 1,559,000
---------- -----------
TOTAL REPURCHASE AGREEMENTS............. $1,559,000 $ 1,559,000
========== -----------
TOTAL INVESTMENTS AND REPURCHASE
AGREEMENTS AT VALUE--97.9%............ $31,097,038
OTHER ASSETS IN EXCESS OF
LIABILITIES--2.1%..................... 656,418
-----------
NET ASSETS-- 100.0%..................... $31,753,456
===========
<FN>
* Non-income producing securities.
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
BRUNDAGE, STORY AND ROSE INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
May 31, 1997 (Unaudited)
1. Organization
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 and the Brundage, Story and Rose Equity Fund (collectively, the Funds). The
Trust commenced operations on December 3, 1990, when Brundage, Story and Rose,
LLC (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 Brundage, Story and Rose Short/Intermediate Term Fixed-Income Fund (the
Bond Fund) seeks to provide a higher and more stable level of income than a
money market fund with more principal stability than a mutual fund investing in
intermediate and long-term fixed-income securities. The Bond Fund invests
primarily in short and intermediate-term fixed-income securities.
The Brundage, Story and Rose Equity Fund (the Equity Fund) seeks to provide
protection and enhancement of capital, current income and growth of income. The
Equity Fund invests primarily in common stocks and securities convertible into
common stock.
2. Significant Accounting Policies
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
will be valued at fair value as determined in good faith by the Adviser
consistent with procedures established by the Board of Trustees.
Repurchase agreements -- 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.
<PAGE>
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.
Use of estimates -- 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 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.
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 May 31, 1997:
<TABLE>
<CAPTION>
Bond Equity
Fund Fund
<S> <C> <C>
Gross unrealized appreciation ............ $ 169,455 $ 9,521,305
Gross unrealized depreciation ............ (262,030) (320,943)
----------- -----------
Net unrealized appreciation (depreciation) $ (92,575) $ 9,200,362
=========== ===========
Federal income tax cost .................. $31,600,998 $20,337,676
=========== ===========
</TABLE>
As of November 30, 1996, the Bond Fund had a capital loss carryforward of
$349,216 for federal income tax purposes, which expires on November 30, 2002.
This capital loss carryforward may be utilized in the current and future years
to offset net realized capital gains prior to distributing such gains to
shareholders.
3. Investment Transactions
Purchases and proceeds from sales and maturities of investment securities,
other than short-term investments, amounted to $10,622,613 and $10,962,401,
respectively, for the Bond Fund and $5,536,896 and $5,968,062, respectively, for
the Equity Fund during the six months ended May 31, 1997.
4. Transactions with Affiliates
Certain Trustees and officers of the Trust are principals of the Adviser.
Certain officers of the Trust are officers of Countrywide Fund Services, Inc.
(CFS), the administrative services agent, shareholder servicing and transfer
agent, and accounting services agent for the Trust, and of Countrywide
Investments, Inc., the exclusive underwriter of the Funds' shares.
As of May 31, 1997, the Adviser, principals of the Adviser and certain
employee benefit plans of the Adviser collectively owned 17% and 33% of the
shares of beneficial interest outstanding of the Bond Fund and the Equity Fund,
respectively.
<PAGE>
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 0.50% and 0.65%, respectively, of average daily net assets.
In order to reduce the operating expenses of the Bond Fund, the Adviser
voluntarily waived $71,640 of its investment advisory fees during the six
months ended May 31, 1997.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement with the Trust, CFS
supplies non-investment related statistical and research data, internal
regulatory compliance services and executive and administrative services for the
Funds. CFS 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 these services, CFS 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 with the Trust, CFS 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, CFS 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 with the Trust, CFS
calculates the daily net asset value per share and maintains the financial books
and records of each Fund. For these services, CFS receives a monthly fee from
each Fund. In addition, each Fund pays certain out-of-pocket expenses incurred
by CFS in obtaining valuations of such Fund's portfolio securities.
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 0.25% of the average daily net assets of each Fund.
5. 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 periods ended May 31, 1997 and November 30, 1996:
<TABLE>
<CAPTION>
Bond Fund Equity Fund
Six Months Year Six Months Year
Ended Ended Ended Ended
May 31, 1997 November 30, May 31, 1997 November 30,
(Unaudited) 1996 (Unaudited) 1996
<S> <C> <C> <C> <C>
Shares sold ................................. 220,852 430,192 141,543 157,706
Shares issued in reinvestment
of distributions to shareholders ... 73,244 152,952 151,085 85,211
Shares redeemed ............................. (323,028) (748,745) (92,587) (262,040)
--------- --------- --------- ---------
Net increase (decrease) in shares outstanding (28,932) (165,601) 200,041 (19,123)
Shares outstanding, beginning of period ..... 3,122,514 3,288,115 1,602,870 1,621,993
--------- --------- --------- ---------
Shares outstanding, end of period ........... 3,093,582 3,122,514 1,802,911 1,602,870
========= ========= ========= =========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> SHORT/INTERMEDIATE TERM FIXED-INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 32,228,998
<INVESTMENTS-AT-VALUE> 32,136,423
<RECEIVABLES> 396,488
<ASSETS-OTHER> 11,614
<OTHER-ITEMS-ASSETS> 547
<TOTAL-ASSETS> 32,545,072
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 66,005
<TOTAL-LIABILITIES> 66,005
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,990,791
<SHARES-COMMON-STOCK> 3,093,582
<SHARES-COMMON-PRIOR> 3,122,514
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (419,149)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (92,575)
<NET-ASSETS> 32,479,067
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,067,368
<OTHER-INCOME> 0
<EXPENSES-NET> 106,015
<NET-INVESTMENT-INCOME> 961,353
<REALIZED-GAINS-CURRENT> (69,933)
<APPREC-INCREASE-CURRENT> (530,133)
<NET-CHANGE-FROM-OPS> 361,287
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 961,353
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 220,852
<NUMBER-OF-SHARES-REDEEMED> 323,028
<SHARES-REINVESTED> 73,244
<NET-CHANGE-IN-ASSETS> (897,484)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (349,216)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 81,550
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 177,655
<AVERAGE-NET-ASSETS> 32,719,927
<PER-SHARE-NAV-BEGIN> 10.69
<PER-SHARE-NII> 0.31
<PER-SHARE-GAIN-APPREC> (0.19)
<PER-SHARE-DIVIDEND> 0.31
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.50
<EXPENSE-RATIO> 0.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 21,896,676
<INVESTMENTS-AT-VALUE> 31,097,038
<RECEIVABLES> 1,057,118
<ASSETS-OTHER> 5,449
<OTHER-ITEMS-ASSETS> 931
<TOTAL-ASSETS> 32,160,536
<PAYABLE-FOR-SECURITIES> 327,400
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79,680
<TOTAL-LIABILITIES> 407,080
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,801,339
<SHARES-COMMON-STOCK> 1,802,911
<SHARES-COMMON-PRIOR> 1,602,870
<ACCUMULATED-NII-CURRENT> 23,299
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,728,456
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 9,200,362
<NET-ASSETS> 31,753,456
<DIVIDEND-INCOME> 210,641
<INTEREST-INCOME> 25,191
<OTHER-INCOME> 0
<EXPENSES-NET> 182,169
<NET-INVESTMENT-INCOME> 53,663
<REALIZED-GAINS-CURRENT> 1,728,456
<APPREC-INCREASE-CURRENT> 1,701,063
<NET-CHANGE-FROM-OPS> 3,483,182
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 43,058
<DISTRIBUTIONS-OF-GAINS> 2,298,821
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 141,543
<NUMBER-OF-SHARES-REDEEMED> 92,587
<SHARES-REINVESTED> 151,085
<NET-CHANGE-IN-ASSETS> 4,213,334
<ACCUMULATED-NII-PRIOR> 12,694
<ACCUMULATED-GAINS-PRIOR> 2,298,821
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 92,232
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 182,169
<AVERAGE-NET-ASSETS> 28,492,839
<PER-SHARE-NAV-BEGIN> 17.18
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 1.85
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 1.43
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.61
<EXPENSE-RATIO> 1.28
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
