ASM INDEX 30 FUND PORTFOLIO
American Telephone and Telegraph Co.
Allied Signal, Inc.
Aluminum Company of America
American Express Company
Boeing Company
Caterpillar, Inc.
Chevron Corporation
Coca-Cola Company
Walt Disney Company
Dupont de Nemours & Co.
Eastman Kodak Co.
Exxon Corp.
General Electric Corporation
General Motors Corp.
Goodyear Tire & Rubber
Hewlett-Packard
International Business Machines Corp.
International Paper Co.
Johnson & Johnson
McDonald's Corp.
Merck & Company
Minnesota Mining & Manufacturing Co.
J P Morgan, Inc.
Philip Morris Companies, Inc.
Proctor & Gamble Co.
Sears Roebuck & Company
Travelers Group, Inc.
Union Carbide Corporation
United Technologies Corp.
Wal-Mart Stores, Inc.
Managed by:
Vector Index Advisors, Inc.
15438 North Florida Avenue
Suite 107
Tampa, Florida 33613
[LOGO] ASM Index 30 Fund
<PAGE>
June 30, 1998
Dear Shareholders,
The large and very large companies, what we call "mega cap," continue to be
leading stock market performers to date. Our concentration on 30 of the largest
U.S. companies is benefiting from investor's interest in well-established and
profitable corporations. As of April 30, 1998, the ASM Index 30 Fund total
return was 14.92% for the calendar year with dividends reinvested This return
compared well with all the benchmarks and general equity mutual funds.
The economic problems in Asia we hear about should slow down growth in that
region. Fortunately, the multinational strength of the stocks in our portfolio
looks to the entire world for growth. The impressive economic recovery in Europe
has helped offset the weaknesses in Asia.
In comparison to the S&P 500, the Dow stocks have about a 25% better price
to earnings ratio and a higher dividend. As investments continue to be
concentrated on stocks, I believe the quality of our investment will continue to
attract the conservative long-term investor.
I am happy there is finally another fund designed to track the "Dow."* I
would like to see many such funds created in the next year. Although the new
fund claims, in advertisements, to be the first opportunity to invest in the
"Dow Jones Industrial Average"* stocks, we know better. Our shareholders have
enjoyed the benefits of this investment strategy since 1991.
Again, earnings forecasts for the stocks in our portfolio remain impressive
through 1999. This surprisingly strong stock market still has a future and we
are proud, for many reasons, to be enjoying its financial benefits.
Sincerely,
/s/ Steven H. Adler
Steven H. Adler
President
* "DOW JONES INDUSTRIAL AVERAGE" AND "DOW" ARE THE PROPERTY OF DOW JONES &
COMPANY THE ASM INDEX 30 FUND IS NEITHER AFFILIATED WITH, NOR ENDORSED
BY, DOW JONES & COMPANY.
<PAGE>
ASM INDEX 30 FUND, INC.
Semi-annual Financial Statements (Unaudited)
For the Six Month Period Ended April 30, 1998
TABLE OF CONTENTS
Schedule of Investments in Securities
(Portfolio of Investments) 1-3
Statement of Assets & Liabilities 4
Statements of Operations 5
Statements of Changes in Net Assets 6
Selected Per-share Data and Ratios
(Financial Highlights) 7
Notes to Financial Statements 8-11
[LOGO] ASM Index 30 Fund
<PAGE>
ASM INDEX 30 FUND, INC.
Portfolio of Investments
April 30, 1998
(Unaudited)
Percent of
Total Net
Assets Shares Value
------ ------ -----
COMMON STOCKS:
AEROSPACE
Boeing Co. 13,350 $ 668,334
United Technologies Corp. 13,350 1,314,141
----------
6.4% 1,982,475
ALUMINUM
Aluminum Company of America 3.4% 13,350 1,034,625
AUTO AND TRUCK
General Motors Corp. 2.9% 13,350 899,456
BANKING
J.P. Morgan & Co. 5.7% 13,350 1,752,188
BEVERAGE
Coca-Cola Co. 3.3% 13,350 1,012,931
CHEMICAL
E.I. du Pont de Nemours & Co. 13,350 972,047
Union Carbide Corp. 13,350 647,475
---------
5.3% 1,619,522
COMPUTER & PERIPHERALS
International Business Machines Co 5.0% 13,350 1,546,931
CONSUMER PRODUCTS
Procter & Gamble Co. 3.6% 13,350 1,097,203
DIVERSIFIED
AlliedSignal, Inc. 13,350 584,897
Minnesota Mining & Manufacturing Co. 13,350 1,259,906
---------
6.0% 1,844,803
DRUG
Merck & Co., Inc. 5.2% 13,350 1,608,675
ELECTRICAL EQUIPMENT
General Electric Corp. 3.7% 13,350 1,136,419
FINANCIAL SERVICES
American Express Co. 4.4% 13,350 1,361,700
The accompanying notes are an integral part of these financial statements.
Page 1
<PAGE>
ASM INDEX 30 FUND, INC.
Portfolio of Investments, Continued
April 30, 1998
(Unaudited)
Percent of
Total Net
Assets Shares Value
------ ------ -----
COMMON STOCKS (continued):
HEALTH
Johnson & Johnson 3.1% 13,350 $ 952,856
INSURANCE
Travelers Group, Inc. 2.7% 13,350 816,853
MACHINERY
Caterpillar Inc. 2.5% 13,350 760,116
MULTIMEDIA
The Walt Disney Co. 5.4% 13,350 1,659,572
OFFICE AUTOMATION & EQUIPMENT
Hewlett-Packard Co. 3.3% 13,350 1,005,422
OIL/GAS
Chevron Corp. 13,350 1,103,878
Exxon Corp. 13,350 973,716
---------
6.8% 2,077,594
PAPER & FOREST PRODUCTS
International Paper Co. 2.3% 13,350 696,703
PHOTOGRAPHIC EQUIPMENT AND SUPPLIES
Eastman Kodak Co. 3.1% 13,350 963,703
RESTAURANT
McDonald's Corp. 2.7% 13,350 826,031
RETAIL STORE
Sears, Roebuck & Co. 13,350 791,822
Wal-Mart Stores, Inc. 13,350 675,009
---------
4.8% 1,466,831
TELECOMMUNICATION SERVICES
AT&T Corp. 2.6% 13,350 801,835
The accompanying notes are an integral part of these financial statements.
Page 2
<PAGE>
ASM INDEX 30 FUND, INC.
Portfolio of Investments, Continued
April 30, 1998
(Unaudited)
Percent of
Total Net
Assets Shares Value
------ ------ -----
COMMON STOCKS (continued):
TIRE AND RUBBER
The Goodyear Tire & Rubber Co. 3.0% 13,350 $ 934,500
TOBACCO
Philip Morris Companies, Inc. 1.6% 13,350 498,122
TOTAL COMMON STOCKS ------- ----------
(Cost $25,157,371) 98.7%* 30,357,066
REPURCHASE AGREEMENTS:
Star Bank
4.80%, due 5/01/98 $319,000 319,000
Collateralized by $320,000 GNMA 7.
with market value of $326,650
TOTAL REPURCHASE AGREEMENTS 1.0% 319,000
(Cost $319,000)
TOTAL INVESTMENTS ----- ----------
(Cost $25,476,371) 99.7% 30,676,066
OTHER ASSETS IN EXCESS OF LIABILITIES 0.3% 81,233
TOTAL NET ASSETS ------ ----------
100.0% $ 30,757,299
====== ==========
* Total consists of individual percentages which have been rounded.
The accompanying notes are an integral part of these financial statements.
Page 3
<PAGE>
ASM INDEX 30 FUND, INC.
Statement of Assets and Liabilities
April 30, 1998
(Unaudited)
ASSETS:
Investments in common stocks, at market value
(cost $25,157,371) $ 30,357,066
Repurchase agreements, at cost 319,000
Cash 42,224
Receivable for capital shares issued 10,797
Interest receivable 78
Dividends receivable 19,894
Receivable from investment advisor 114,833
Prepaid expense and other assets 47,011
------------
Total Assets 30,910,903
LIABILITIES:
Payable for capital shares redeemed 17,413
Accrued taxes payable 88,476
Payable to investment advisor 13,495
Accrued expenses 34,220
------------
Total Liabilities 153,604
NET ASSETS $ 30,757,299
============
COMPONENTS OF NET ASSETS:
Capital paid-in $ 23,359,800
Undistributed net investment income 55,958
Accumulated undistributed net realized gains from investmen 2,141,846
Net unrealized appreciation of investments 5,199,695
------------
Total Net Assets $ 30,757,299
============
CAPITAL SHARES OUTSTANDING
($0.001 par value, 1,000,000,000 shares authorized) 1,533,233
============
NET ASSET VALUE -- OFFERING AND REDEMPTION PRICE PER SHARE $ 20.06
============
The accompanying notes are an integral part of these financial statements.
Page 4
<PAGE>
ASM INDEX 30 FUND, INC.
Statement of Operations
For the Six Months Ended April 30, 1998
(Unaudited)
INVESTMENT INCOME:
Dividends $ 286,829
Interest 21,353
------------
Total investment income 308,182
EXPENSES:
Management fees 13,495
Audit fees 13,551
Custodian fees 18,198
Trustee fees 14,010
Legal expense 29,126
Administrative fees 7,996
Registration and filing fees 15,693
Transfer agent and accounting fees 23,747
Printing and postage 6,962
Interest expense 2,660
Other expenses 1,931
------------
Total expenses 147,369
Less: Reimbursement of expenses by advisor (115,794)
------------
Total expenses--net 31,575
Investment income--net 276,607
Net realized gains from investment transactions 2,372,777
Change in unrealized appreciation of investments 3,426,567
------------
Net realized and unrealized gains from investments 5,799,344
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,075,951
============
The accompanying notes are an integral part of these financial statements.
Page 5
<PAGE>
ASM INDEX 30 FUND, INC.
Statements of Changes in Net Assets
Six Months Year
Ended Ended
April 30, 1998 October 31, 1997
(Unaudited)
Increase (decrease) in net assets:
OPERATIONS:
Net investment income $ 276,607 $ 430,876
Net realized gains from investment transactions 2,372,777 5,534,868
Change in unrealized appreciation of investments 3,426,567 1,680,860
Net increase in net assets resulting ------------ ------------
from operations 6,075,951 7,646,604
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (220,649) (430,876)
In excess of net investment income --- (63,140)
From net realized gains (1,783,996) (208,768)
Net decrease in net assets resulting ------------ ------------
from distributions to shareholders (2,004,645) (702,784)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 42,707,901 77,870,255
Reinvestment of distributions 1,527,867 590,838
Cost of shares redeemed (38,676,597) (73,593,574)
Net increase in net assets resulting ----------- ------------
from capital share in transactions 5,559,171 4,867,519
TOTAL INCREASE IN NET ASSETS 9,630,477 11,811,339
Net assets - beginning of period 21,126,822 9,315,483
----------- ------------
NET ASSETS - END OF PERIOD $ 30,757,299 $ 21,126,822
=========== ============
CHANGES IN SHARES OUTSTANDING:
Shares issued 2,312,452 4,853,861
Shares issued in connection with reinvestment o 86,851 36,286
Shares redeemed (2,093,967) (4,321,722)
----------- ------------
Net increase in shares outstanding 305,336 568,425
=========== ============
The accompanying notes are an integral part of these financial statements.
Page 6
<PAGE>
ASM INDEX 30 FUND, INC.
Financial Highlights
<TABLE>
<CAPTION>
Six Months
Ended April 30, Years Ended October 31,
-------------- -------------------------------------------
(Unaudited)
1998 1997 1996 1995 1994 1993
-------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.21 $ 14.13 $ 11.37 $ 9.78 $ 10.07 $ 9.23
-------------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment income 0.14 0.18 0.08 --- 0.56 0.43
Net gains (losses) from investments
(realized and unrealized) 3.59 3.34 2.76 1.77 (0.16) 0.88
-------------- ------- ------- ------- ------- -------
Total from investment operations 3.73 3.52 2.84 1.77 0.40 1.31
DISTRIBUTIONS:
From net investment income (0.10) (0.18) (0.07) (0.05) (0.52) (0.47)
In excess of net investment income --- (0.11) (0.01) (0.13) --- ---
From net realized gains (0.78) (0.15) --- --- --- ---
Tax return of capital --- --- --- --- (0.17) ---
-------------- ------- ------- ------- ------- -------
Total distributions (0.88) (0.44) (0.08) (0.18) (0.69) (0.47)
NET ASSET VALUE, END OF PERIOD $ 20.06 $ 17.21 $ 14.13 $ 11.37 $ 9.78 $ 10.07
============== ======= ======= ======= ======= =======
TOTAL RETURN 22.41% 25.18% 25.01% 18.10% 3.97% 14.65%
============== ======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 30,757 $21,127 $ 9,315 $ 9,704 $ 7,277 $17,085
Ratio of expenses to average net assets * 0.18%(a) 0.42% 1.86% 3.01%** 0.75% 0.75%
Ratio of net investment income to average
net assets * 1.57%(a) 1.51% 0.53% 0.04% 2.17% 3.35%
Portfolio turnover rate *** 91% 265% 391% 340% 1193% 642%
Average commission rate paid **** $ 0.0488 $0.0387 $0.0800
* Ratios are presented net of fees voluntarily reduced. If such voluntary fee
reductions had not occured, the ratios would have been as follows:
Ratio of expenses to average net assets 0.84%(a) 1.05% 2.59% 5.77% 2.94% 3.38%
Ratio of net investment income (loss)
to average net assets 0.91%(a) 0.88% (0.20%) (2.72%) (0.02%) 0.72%
</TABLE>
As a result of certain tax adjustments necessitated by the Fund's failure to
qualify as a regulated investment company for the years ended October 31, 1995,
1994, and 1993, as well as other adjustments, the gross expense ratios
previously reported for these periods have been restated.
** Includes $50,460 of interest expense not subject to the expense reimbursement
agreement.
*** The Fund continues to be as fully invested in equities as possible.
Therefore, portfolio turnover is higher than most equity mutual funds because
purchases and sales of securities are necessary for settlement of transactions
requested by Fund shareholders.
**** For fiscal periods beginning on or after September 1, 1995, the Fund is
required to present the average commission paid for securities transactions on
which commissions are charged.
(a) (Annualized)
The accompanying notes are an integral part of these financial statements.
Page 7
<PAGE>
ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998
(UNAUDITED)
ASM Index 30 Fund, Inc. (the "Fund") was incorporated in Maryland on April
25, 1990 and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a no-load, diversified, open-end management investment
company. The Fund has an investment objective of providing total return through
a combination of capital appreciation and current income.
1. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. Preparation of the
financial statements 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 income and expenses for the
period.
SECURITY VALUATION
Portfolio securities are listed on a national securities exchange and are
stated at the last reported sales price on the day of valuation.
SECURITY TRANSACTIONS
The Fund records purchases of investments one business day after trade date
and sales of investments on the trade date. Realized gains and losses from sales
of investments are calculated on the specific identification basis. Interest
income is recognized on the accrual basis, and dividend income is recorded on
the ex-dividend date.
REPURCHASE AGREEMENTS
Repurchase agreements are transactions in which the Fund purchases
securities from a bank or recognized securities dealer and simultaneously
commits to resell that security to the bank or dealer at an agreed-upon date and
price reflecting a market rate of interest unrelated to the coupon rate or
maturity of the purchased security. The Fund may invest in repurchase agreements
with institutions believed by Vector Index Advisors, Inc. (the "Advisor") to
present minimum credit risk. Each repurchase agreement is recorded at cost. The
Page 8
<PAGE>
ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 1998
(UNAUDITED)
Fund requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to obtain
those securities in the event of a counterparty default. The seller, under the
repurchase agreement, is required to maintain the value of the securities at
least equal to the repurchase price, including accrued interest.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on deposit with the custodian.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the ex-dividend date. On a
quarterly basis, the Fund declares and pays dividends from net investment
income, if any. On an annual basis, the Fund declares and pays net capital gain
dividends, if any. Dividends from net investment income and net capital gain
dividends are determined in accordance with federal income tax regulations which
may differ from generally accepted accounting principles. These differences are
primarily due to deferrals of certain losses and the Fund's use of the
accounting practice of tax equalization, whereby a portion of the costs of
capital shares redeemed is attributable to distributions to shareholders.
Permanent book and tax basis differences have been reclassified among the
components of net assets.
FEDERAL INCOME TAXES
The Fund intends to continue to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders.
2. INVESTMENT ADVISORY FEES
The Fund operates under an investment management agreement (the
"Agreement") with the Advisor. The Agreement provides for compensation to the
Advisor at an annual rate of 0.08% of the Fund's average daily net assets.
Page 9
<PAGE>
ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 1998
(UNAUDITED)
Pursuant to the Agreement, the Advisor provides continuous supervision of the
investment portfolio and pays the cost of compensation of the officers of the
Fund, and occupancy and certain clerical and administrative costs involved in
portfolio management. The Fund bears all other costs and expenses.
Certain officers and directors of the Fund are also officers and directors
of the Advisor. Commencing January 15, 1997, the Advisor voluntarily agreed to
limit expenses of the Fund to 0.18% of the Fund's average daily net assets.
Pursuant to commitments made to the Fund by the Advisor, the Advisor reimbursed
the Fund $115,794 for the six months ended April 30, 1998. The Board of
Directors of the Fund has obtained confirmation that the Advisor has made
arrangements to assure availability of funds to discharge the Fund's
obligations. All amounts due under statutory and voluntary expense limitations
were paid by the Advisor within 30 days of determination.
3. INVESTMENT TRANSACTIONS
For the six months ended April 30, 1998, purchases and sales of investment
securities (excluding short-term securities) were $34,365,936 and $30,737,604,
respectively. As of April 30, 1998, the aggregate cost basis of investments for
Federal income tax purposes was $25,707,302 and net unrealized appreciation of
investments for Federal income tax purposes was comprised of the following:
Gross unrealized appreciation of investments $ 5,339,292
Gross unrealized depreciation of investments (139,597)
------------------
Net unrealized appreciation of investments $ 5,199,695
==================
Page 10
<PAGE>
ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 1998
(UNAUDITED)
4. FINANCIAL HIGHLIGHTS RESTATEMENT
During the year ended October 31, 1996, the Fund, in consultation with its
auditors and legal counsel, determined, based on information available at the
time, that the Fund did not qualify as a regulated investment company under the
Internal Revenue Code for the years ended October 31, 1995 and 1994. As such,
the Fund would be subject to accrued Federal income taxes and interest of
approximately $88,476. The Advisor has agreed to pay these costs.
Also, advisory fees in the amount of $23,443 for the period from April 16,
1995 to October 31, 1995 should not have been accrued by the Fund nor reimbursed
by the Advisor. As a result, the expense ratios before reimbursement in the
Financial Highlights have been restated to reflect these changes. Prior to
restatement, such ratios were 5.94% and 2.55% for the years ended October 31,
1995 and 1994, respectively. All amounts discussed above as well as amounts due
under statutory and voluntary expense limitations are reflected in the
receivable from advisor on the Statement of Assets and Liabilities.
<PAGE>
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