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CHACONIA INCOME & GROWTH FUND, INC.
Schedule of Investments
June 30, 1996
(unaudited)
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COMMON STOCKS
Market
Shares Value
COMMON STOCKS (64.69%)
AEROSPACE & DEFENSE (1.64%)
2,700 Raytheon Co. $139,388
AIRCRAFT (1.34%)
1,360 Lockheed Martin Corp. 114,240
AUTOMOTIVE (1.56%)
4,100 Ford Motor Co. Del. 132,737
BANKING (4.83%)
4,300 Federal National Mortgage Assoc. 144,050
3,700 First Chicago NBD Corp 144,763
3,300 Suntrust Banks Inc. 122,100
410,913
BUSINESS SERVICES (1.10%)
1,500 Dun and Bradstreet Corp. 93,750
DRUGS & HEALTH CARE (11.00%)
3,000 Abbott Labs 130,500
2,700 American Home Products Corp. 162,337
1,400 Bristol-Meyers Squibb 126,000
2,000 Columbia/HCA Healthcare Corp. 106,750
2,100 Lilly, Eli & Co. 136,500
2,500 Merck & Co. Inc. 161,563
6,500 Mylan Labs Inc. 112,124
935,774
ELECTRONICS (1.27%)
1,200 Emerson Electric Co. 108,450
COMMON STOCKS (continued)
Market
Shares Value
FOODS (5.93%)
1,700 Anheuser Busch Cos. Inc. $127,500
3,950 Heinz H.J. Co. 119,981
1,600 Kellogg Co. 117,200
3,000 McDonalds Corp. 140,250
504,931
INDUSTRIALS (5.89%)
4,300 Browning Ferris Inds. Inc. 124,700
8,300 Hanson Plc. 118,275
1,700 Loews Corp. 134,088
3,800 WMX Technologies 124,450
501,513
INSURANCE (6.39%)
2,800 Chubb Corp 139,650
900 General Re Corp. 137,025
5,650 Old Republic International Corp. 121,475
4,100 Safeco Corp. 145,038
543,188
MUTUAL FUNDS (2.04%)
69,406 Trinidad & Tobago Unit Trust Corp./
First Unit Scheme 173,550
PAPER PRODUCTS (1.54%)
1,700 Kimberly Clark Corp. 131,325
PETROLEUM (4.63%)
1,700 Amoco Corp. 123,037
1,700 Exxon Corp. 147,687
1,400 Shell Transportation and Trading 123,200
393,924
RAILROADS (1.25%)
1,700 Norfolk Southern Corp. 144,075
See notes to financial statements.
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CHACONIA INCOME & GROWTH FUND, INC.
Schedule of Investments (continued)
June 30, 1996
(unaudited)
COMMON STOCKS (continued)
Market
Shares Value
RETAIL (2.92%)
2,800 J C Penney Inc. $147,000
8,200 K-Mart Corp. 101,475
248,475
TECHNOLOGY (3.38%)
2,600 Compaq Computer Corp. 128,050
1,600 Hewlett Packard Co. 159,400
287,450
TELEPHONE/UTILITIES (1.65%)
5,700 Southern Co. 140,363
TOBACCO (1.83%)
1,500 Philip Morris Cos. Inc. 156,000
UTILITY (4.06%)
3,900 Cinergy Corp. 124,800
4,000 Telefonos de Mexico 134,000
3,100 Unicom Corp. 86,413
345,213
TOTAL COMMON STOCKS
(Cost $4,503,598) 5,505,259
LONG TERM INVESTMENTS (30.92%)
U.S. Government Securities (24.61%)
350,000 U.S. Treasury Note
8.625% due 08/15/97 $ 360,281
300,000 U.S. Treasury Note
8.875% due 11/15/98 317,438
300,000 U.S. Treasury Note
8.00% due 08/15/99 313,875
150,000 U.S. Treasury Note
7.875% due 11/15/99 156,750
200,000 U.S. Treasury Note
6.25% due 05/31/00 198,750
150,000 U.S. Treasury Note
5.875% due 02/15/04 143,250
COMMON STOCKS (continued)
Market
Shares Value
149,050 FNMA
6.00% due 02/01/09 $141,085
142,558 FHLMC Gold
8.00% due 10/01/10 145,453
100,000 U.S. Treasury Note
8.125% due 05/15/21 112,687
200,000 U.S. Treasury Note
7.25% due 08/15/22 205,000
2,094,569
BANKING (1.10%)
100,000 NationsBank Corp. 6.50%
due 03/15/06 93,878
BANKING & FINANCE (1.19%)
100,000 Norwest Corp. Med. Term Notes
7.125% due 04/01/00 101,476
MORTGAGE BACK -CMO (2.88%)
98,185 GNMA 7.00% due 09/15/09 97,587
149,275 GNMA 7.50% due 03/15/26 147,268
244,857
UTILITY (1.14%)
100,000 Rockwell Intl Corp. Note
6.625% due 06/01/05 96,763
TOTAL LONG TERM INVESTMENTS
(Cost $2,640,511) 2,631,544
SHORT TERM INVESTMENTS (4.49%)
381,790 Citibank Money Market Fund
(Cost $381,790) 381,790
TOTAL INVESTMENTS
(Cost $7,525,899) 100.10% 8,518,593
Other assets less
liabilities (0.10%) (8,161)
TOTAL NET ASSETS 100.00% $8,510,432
See notes to financial statements.
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CHACONIA INCOME & GROWTH FUND, INC.
Statement of Assets and Liabilities
June 30, 1996
(unaudited)
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Assets
Investments in securities, at value
(cost $7,525,899) $8,518,593
Dividends and interest receivable 60,317
Receivable for Fund Shares Sold 33,886
Other assets 2,243
Total assets 8,615,039
Liabilities
Payable for fund shares redeemed 5,273
Accrued adviser fee 25,277
Accrued distribution fee 36,703
Accrued legal fee 24,861
Other accrued expenses 12,493
Total liabilities 104,607
Net Assets $8,510,432
Net Assets consist of:
Capital stock, no par value; unlimited
shares authorized; 697,092 shares
outstanding $5,799,766
Undistributed net investment income 123,338
Undistributed realized gain on investments 1,594,634
Net unrealized depreciation on investments 992,694
Net Assets 8,510,432
Net asset value, redemption and offering
price per share ($8,510,432/697,092)
shares of capital stock outstanding) $ 12.21
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CHACONIA INCOME & GROWTH FUND, INC.
Statement of Operations
For the six months ended June 30, 1996
(unaudited)
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Investment Income:
Interest $ 186,634
Dividends 148,670
Total Investment Income 335,304
Expenses:
Adviser fees 55,404
Distributor fees 43,152
Legal fees 24,861
Administrative fees 21,975
Custodian fees 14,469
Audit fees 8,940
Accounting services 9,034
Transfer agent fees 7,542
Printing expense 3,095
Directors' fees and expenses 2,459
Other expenses 4,394
Total expenses 195,325
Net investment income 139,979
Realized and Unrealized Gain
on Investments
Net realized gain on investments 1,594,634
Net decrease in unrealized appreciation
on investments (1,710,983)
Net loss on investments (116,349)
Net increase in net assets resulting
from operations $ 23,630
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See notes to financial statements.
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CHACONIA INCOME & GROWTH FUND, INC.
Statement of Changes in Net Assets
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For the For the
six months ended year ended
June 30, 1996 Dec. 31, 1995
(Unaudited) (Audited)
Operations:
Net investment income $ 139,979 $ 305,421
Net realized gain on
investments 1,594,634 408,399
Net increase/(decrease) in
unrealized appreciation
on investments (1,710,983) 2,764,622
Net increase in net assets
resulting from operations 23,630 3,478,442
Distributions Payable to Shareholders:
Dividend from net
investment income 0 (305,421)
Distribution in excess of
net investment income
and capital gains 0 (4,498)
Distribution from capital gains 0 (408,399)
Total distributions payable 0 (718,318)
Fund Share Transactions:
Proceeds from shares sold 3,911,252 2,051,054
Dividends reinvested 0 914,562
Payment for shares redeemed (13,233,832) (231,691)
Net increase (decrease) in net
assets from fund share
transactions (9,322,580) 2,733,925
Net increase (decrease) in
net assets (9,298,950) 5,494,049
Net Assets, Beginning
of Period 17,809,382 12,315,333
Net Assets, End of Period $ 8,510,432 $ 17,809,382
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See notes to financial statements.
CHACONIA INCOME & GROWTH FUND, INC.
Notes to Financial Statements
(Unaudited)
1. ORGANIZATION
The Chaconia Income & Growth Fund, Inc. (the "Fund") is organized as a Maryland
Corporation, incorporated on October 24, 1990, and registered as an open-end,
non-diversified, management investment company under the Investment Company Act
of 1940, as amended. The Fund commenced operations on May 11, 1993.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles. A.
Security Valuation-Securities traded on national securities exchanges are valued
at the last sales price. Over-the-counter securities and listed securities for
which no sales price is available, are valued at the mean between the latest bid
and asked prices. Short-term securities are valued at cost, which, when combined
with accrued interest receivable, approximates value. B. Security
Transactions-Security transactions are accounted for on the trade date (date the
order to buy or sell is executed). Realized gains and losses on security
transactions are determined on the specific identification method. Dividend
income is recorded on the ex-dividend date. Interest income is accrued daily. C.
Federal Income Tax Status-No provision for federal income taxes is required
since the Fund intends to qualify as a regulated investment company and
distribute all of its taxable income to its shareholders. D. Dividends and
Distributions to Shareholders-The Fund records dividends and distributions to
shareholders on the ex-dividend date. E. Other- The fund may periodically make
reclassifications among certain of its capital accounts as a result of the
timing and characterization of certain income and capital gains distributions
determined annually in accordance with federal tax regulations which may differ
from generally accepted accounting principles.
3. INVESTMENT TRANSACTIONS:
Investment transactions, excluding short-term investments, for the six months
ended June 30, 1996 were as follows:
Purchases $ 6,512,647
Sales 14,820,050
At June 30, 1996, the cost of securities for federal income tax purposes
was $7,525,899. Aggregate gross unrealized appreciation for all securities in
which there was
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an excess of value over tax cost was $1,119,334 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
value was $126,640.
4. INVESTMENT MANAGEMENT AGREEMENT:
The Fund has an investment advisory and management agreement with Invesco
Capital Management, Inc. ("Adviser"). Under this agreement, the Adviser provides
the Fund with investment advisory and management services for which the Fund
pays a fee at an annual rate of the greater of $50,000 or 0.75% of the portion
of the daily net assets not exceeding $10 million; 0.50% of the portion of the
daily net assets exceeding $10 million but not exceeding $20 million and 0.25%
of the portion of the daily net assets exceeding $20 million.
5. DISTRIBUTION FEES:
The Board of Directrors has adopted a Distribution Plan applicable to the Fund
under Section 12(b) of the 1940 Act and Rule 12b-1 thereunder. Pursuant to the
Plan, registered broker-dealers and qualified recipients will be reimbursed by
the Fund for distribution expenditures up to a limit of 0.50% of 1% on an annual
basis of the Fund's average daily net assets.
6. FUND SHARE TRANSACTIONS:
At June 30, 1996, there were 2,000,000 shares authorized at $.01 par
value.
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For the For the
six months ended year ended
June 30, 1996 Dec. 31, 1995
Shares sold 322,730 170,791
Dividend reinvestment 0 79,702
Shares repurchased (1,093,468)* (21,210)
(770,738) 229,283
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* During the six months ended June 30, 1996 the Fund's largest shareholder
redeemed 1,065,612 shares representing it's entire holding.
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Financial Highlights
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For the six months For the For the For the period
ended June 30, 1996 year ended year ended May 11, 1993 (commencement
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 of operations) thru Dec. 31, 1993
Net asset value, beginning of period $ 12.13 $ 9.94 $10.20 $10.00
Income from investment operations
Net investment income .10 .24 .13 .03
Net realized and unrealized
gain (loss) on investments (.02) 2.47 (.13) .21
Total from investment operations .08 2.71 .00 .24
Less dividends and distributions
Dividend from net investment income .00 (.23) (.13) (.04)
Distribution in excess of net
investment income .00 .00 + .00 + .00 +
Distribution from realized gains .00 (.28) (.13) .00 +
Total dividends and distributions .00 (.51) (.26) (.04)
Net asset value, end of period $12.21 $12.13 $9.94 10.20
Total return based on net asset
value per share .66% 27.16% 0% 2.40%
Ratios/Supplemental Data
Net assets, end of period (in thousands) $8,510 $17,809 $12,315 $12,105
Ratio to Averate Net Assets:
Expenses 2.27%** 2.37% 2.87% 2.73%**
Net investment income 1.63%** 2.09% 1.25% .53%**
Portfolio turnover rate 40.70%** 26.23% 40.13% .55%**
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**Annualized
+ Less than $.01 per share
</FN>
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See notes to financial statements.
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CHACONIA INCOME & GROWTH FUND
SEMI-ANNUAL REPORT
June 30, 1996
(Unaudited)
