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Previous: BLACKROCK STRATEGIC TERM TRUST INC, NSAR-A/A, 1999-08-30 |
Next: CHACONIA INCOME & GROWTH FUND INC, NSAR-A, 1999-08-30 |
CHACONIA INCOME &
GROWTH FUND
SEMI ANNUAL REPORT
- JUNE 30, 1999 -
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholders:
Enclosed please find the unaudited financial statements for the six month period
ended June 30, 1999.
The Chaconia Income and Growth Fund ("Fund") continues to adhere strictly to a
conservative policy of investing in higher quality securities, which are
expected to produce a competitive total return by way of current income and
capital appreciation. The Fund is properly structured to achieve its investment
objectives in the ensuing quarters.
We appreciate your investment in the Fund and look forward to providing
additional information in the coming months on the performance of the Fund.
If you have any questions, please contact the Fund at 1-800-368-3322.
Yours sincerely,
/s/ Clarry Benn
Mr. Clarry Benn
President
<PAGE>
<TABLE>
<CAPTION>
CHACONIA INCOME & GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
June 30, 1999 - (Unaudited)
MARKET
SHARES VALUE
- ------ -----
<C> <S> <C> <C>
COMMON STOCKS 65.08%
AIRCRAFT 0.65%
12,800 Southwest Airlines $398,400
---------
APPAREL
MANUFACTURERS 0.91%
13,000 VF Corp. 555,750
---------
AUTOMOTIVE 1.20%
13,000 Ford Motor Co. Del 733,687
---------
BANKING 4.22%
6,000 Bank of America Corp. 439,875
8,000 Chase Manhattan Corp. 693,000
8,100 Comerica Inc. 481,444
10,600 Federal National Mortgage
Association 724,775
2,800 Wachovia Corp. 239,575
---------
2,578,669
---------
BUILDING AND
CONSTRUCTION 0.73%
9,300 Vulcan Materials 448,725
-------
BUSINESS SERVICES 2.45%
26,200 Deluxe Corp. 1,020,162
13,500 Dun & Bradstreet Corp. 478,406
---------
1,498,568
---------
CAPITAL GOODS 0.25%
2,400 Emerson Electric Co. 150,900
-------
COMPUTERS 1.51%
13,400 Sun Microsystems* 922,925
-------
COMMON STOCKS (continued)
MARKET
SHARES VALUE
- ------ -----
COMPUTER
SOFTWARE 2.97%
12,400 Microsoft Corp.* $1,118,325
18,850 Oracle Corp.* 699,806
---------
1,818,131
---------
DIVERSIFIED
OPERATIONS 2.04%
5,300 General Electric Co. 598,900
7,900 Illinois Tool Works 647,800
---------
1,246,700
---------
DRUGS &
HEALTH CARE 4.10%
12,000 Abbott Labs 546,000
9,200 Bristol-Meyers Squibb 648,025
9,000 Lilly Eli & Co. 644,625
9,000 Merck & Co., Inc. 666,000
---------
2,504,650
---------
FINANCIAL
SERVICES 1.93%
4,672 Associates First Capital 207,028
9,500 Morgan St. Dean Witter & Co. 973,750
---------
1,180,778
---------
FOODS 4.33%
11,000 Albertsons Inc. 567,187
7,200 Anheuser Busch Cos Inc. 510,750
11,750 Heinz H.J. Co. 588,968
1,200 McDonalds Corp. 462,700
20,200 Supervalu Inc. 518,887
---------
2,648,492
---------
HOME APPLIANCES 1.00%
8,800 Maytag Corp. 613,250
---------
INDUSTRIALS 1.79%
10,500 Hanson PLC-Sponsored ADR 465,938
11,900 Schering Plough Corp. 630,700
---------
1,096,638
---------
See notes to financial statements.
<PAGE>
CHACONIA INCOME & GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
June 30, 1999 - (Unaudited)
COMMON STOCKS (continued)
MARKET
SHARES VALUE
- ------ -----
INSTRUMENTS 0.90%
7,900 Johnson Controls Inc. $ 547,569
---------
INSURANCE 2.02%
7,700 American General Corp. 580,388
8,700 Marsh & McIennan Cos 656,850
---------
1,237,238
---------
MEDICAL/PHARM 1.00%
8,800 Warner Lambert Co. 610,500
---------
MULTIMEDIA 0.39%
3,300 Gannet Co. Inc. 235,538
---------
MUTUAL FUNDS 4.35%
1,544,123 Trinidad & Tobago
Unit Trust Corp./First
Unit Scheme 2,660,988
---------
NETWORKING
PRODUCTS 3.59%
26,000 Adaptec Inc.* 918,125
19,800 Cisco Systems Inc.* 1,277,100
---------
2,195,225
---------
OFFICE
AUTOMATION 1.34%
6,300 Pitney Bowes Inc. 404,775
7,000 Xerox Corp. 413,438
---------
818,213
---------
OIL COMPANIES-
INTERGRATED 0.42%
2,382 BP Amoco LC Spons ADR 258,448
---------
PAINT & RELATED 0.27%
6,000 Sherwin-Williams Co. 166,500
---------
PETROLEUM 1.44%
11,400 Exxon Corp. 879,225
---------
RETAIL 4.09%
18,000 Gap Inc. 906,750
8,400 Lowe's Companies 476,175
23,000 Rite Aid Corp. 566,375
11,400 Wal Mart Stores Inc. 550,050
---------
2,499,350
---------
COMMON STOCKS (continued)
MARKET
SHARES VALUE
- ------ -----
RETAIL - OFFICE
SUPPLIES 0.75%
20,850 Office Depot Inc.* $ 460,003
---------
TECHNOLOGY 4.22%
9,200 Compaq Computer Corp. 217,925
14,000 Intel Corp. 833,000
8,200 International Business Machines 1,059,850
5,700 Textron Inc. 469,181
---------
2,579,956
---------
TRANSPORT -
EQUIPMENT 0.76%
12,200 GATX Corp. 464,363
---------
UTILITY 9.45%
10,600 Ameritech Corp/Del 779,100
13,900 Bellsouth Corp. 651,563
14,550 Centurytel Inc. 578,363
8,900 Cinergy Corp. 284,800
13,400 GPU Inc. 565,312
13,500 MCI Worldcom Inc.* 1,164,375
10,400 Motorola Inc. 985,400
17,600 Mylan Laboratories, Inc. 466,400
11,500 Southern Co. 304,750
---------
5,780,063
---------
TOTAL COMMON STOCKS
(Cost $34,744,725) 39,789,442
----------
PRINCIPAL MARKET
AMOUNT VALUE
- ------ -----
BONDS 30.09%
U.S. GOVERNMENT
SECURITIES 14.01%
$100,000 U.S. Treasury Bond
10.625%, due 8/15/15 143,500
350,000 U.S. Treasury Bond
8.875%, due 8/15/17 445,922
150,000 U.S. Treasury Bond
7.875%, due 2/15/21 177,703
100,000 U.S. Treasury Bond
8.125%, due 5/15/21 121,469
150,000 U.S. Treasury Bond
6.875%, due 8/15/25 162,000
See notes to financial statements.
<PAGE>
CHACONIA INCOME & GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
June 30, 1999 - (Unaudited)
BONDS (continued)
PRINCIPAL MARKET
AMOUNT VALUE
- ------ -----
$ 300,000 U.S. TREASURY BOND
6.00%, due 2/15/26 $291,844
200,000 U.S. Treasury Note
6.25%, due 5/31/00 201,750
500,000 U.S. Treasury Note
5.50%, due 12/31/00 500,312
1,000,000 U.S. Treasury Note
5.25%, due 1/31/01 996,875
1,850,000 U.S. Treasury Note
6.375%, due 3/31/01 1,876,594
350,000 U.S. Treasury Note
6.625%, due 7/31/01 357,437
400,000 U.S. Treasury Note
6.625%, due 3/31/02 410,125
500,000 U.S. Treasury Note
6.375%, due 8/15/02 509,688
300,000 U.S. Treasury Note
5.875%, due 2/15/04 301,687
600,000 U.S. Treasury Note
6.625%, due 5/15/07 625,125
250,000 U.S. Treasury Note
6.50%, due 8/15/05 257,812
750,000 U.S. Treasury Note
6.50%, due 11/15/26 776,485
450,000 U.S. Treasury Note
5.50%, due 8/15/28 411,047
---------
8,567,375
---------
AUTOMOTIVE 1.01%
350,000 Dana Corp. 343,346
6.25%, due 3/1/04
300,000 Ford Motor CO. 275,312
6.50%, due 8/1/18
---------
618,658
---------
BANKING 1.14%
250,000 National City Corp.
6.625%, due 3/1/04 $248,901
100,000 Nations Bank Corp.
6.50%, due 3/15/06 97,268
50,000 Sherwin Williams Co. Note
6.25%, due 2/1/00 50,031
315,000 Wachovia Corp.
6.25%, due 08/04/08 $300,397
---------
696,597
---------
COMMUNICATIONS 0.57%
350,000 Cox Communications
6.875%, due 6/15/05 346,350
---------
BONDS (continued)
PRINCIPAL MARKET
AMOUNT VALUE
- ------ -----
DIVERSIFIED
OPERATIONS 0.57%
$350,000 Ingersoll Rand
6.255%, due 2/15/01 $350,020
---------
FINANCIAL
SERVICES 1.60%
125,000 Ameritech Cap Funding Co.
6.30%, due 10/15/04 $124,135
550,000 Associates Corp.
5.75%, due 11/03/03 533,434
325,000 Travelers Property
6.75%, due 11/15/06 318,247
---------
975,816
---------
FOODS 0.16%
100,000 Bestfoods
6.15%, due 01/15/06 96,800
---------
INDUSTRIALS 1.98%
100,000 Carnival Corp.
6.15%, due 4/15/08 94,480
200,000 BM Corp.
5.37%, due 9/22/03 191,959
300,000 Mattel Inc.
6.00%, due 7/15/03 292,702
300,000 Motorola Inc.
5.80%, due 10/15/08 278,868
175,000 Pepsico Inc.
5.75%, due 1/2/03 170,918
200,000 Phillips Pete
6.65%, due 7/15/18 184,275
---------
1,213,202
---------
MORTGAGE
BACKED 6.56%
500,000 Federal Home Loan Bank
5.375%, due 3/2/01 496,855
300,000 Federal Home Loan Bank
5.575%, due 9/2/03 293,879
52,218 FHLMC Gold 8.00%, due 10/1/10 53,916
70,142 FHLMC 7.00%, due 2/1/13 70,583
25,275 FHLMC 8.00%, due 6/1/25 26,005
118,062 FHLMC 6.00%, due 4/1/28 111,468
489,819 FHLMC 6.50%, due 1/1/29 474,845
452,268 FNMA, 6.50%, due 5/1/03 446,433
300,000 FNMA, 6.21%, due 11/7/07 293,982
91,497 FNMA, 6.0%, due 2/1/09 88,487
400,000 FNMA, 6.50%, due 6/1/14 394,839
See notes to financial statements
<PAGE>
CHACONIA INCOME & GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS
June 30, 1999 - (Unaudited)
BONDS (continued)
PRINCIPAL MARKET
AMOUNT VALUE
- ------- -----
$ 429,200 FNMA, 7.00%, due 12/1/27 $425,407
98,760 RNMA, 7.00%, due 5/1/28 97,887
53,151 GNMA, 7.00%, due 9/15/09 53,957
78,040 GNMA, 7.00%, due 10/15/23 77,214
46,495 GNMA, 8.00%, due 9/20/24 47,528
82,005 GNMA, 7.50%, due 3/15/26 83,023
490,653 GNMA, 6.50%, due 9/15/28 473,589
---------
4,009,897
---------
OIL COMPANIES-
INTEGRATED 0.54%
350,000 ARCO
5.90%, DUE 4/15/09 328,839
RETAIL 0.51%
250,000 Lowes Companies Inc.
6.875%, due 2/15/28 235,517
75,000 Walmart Stores Inc. Note
8.625%, due 4/1/01 77,932
---------
313,449
---------
TECHNOLOGY 0.17%
100,000 Motorola Inc. Note
7.60%, due 1/1/07 103,799
---------
UTILITY 1.27%
250,000 Alabama Power
5.49%, due 11/1/05 233,400
125,000 AT&T Corp.
6.50%, due 3/15/29 112,769
250,000 National Rural Utility
5.70%, due 1/15/10 229,006
100,000 Norwest Corp. Med.
Term Noters
7.125%, due 4/1/00 100,906
100,000 Rockwell Int'l Corp. Note
6.625%, due 6/1/05 98,753
---------
774,834
---------
TOTAL BONDS
(Cost $21,230,219) $18,395,636
-----------
SHORT TERM
INVESTMENTS 3.95%
2,414,589 Star Treasury Fund 2,414,589
TOTAL INVESTMENTS
(Cost $55,974,944) 99.12% 60,599,667
OTHER ASSETS LESS LIABILITIES 0.88% 540,082
------- -----------
TOTAL NET ASSETS 100.00% $61,139,749
======= ===========
<FN>
* Non-Income Producing
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CHACONIA INCOME & GROWTH FUND, INC.
STATEMENT OF ASSETS & LIABILITIES
June 30, 1999
(Unaudited)
ASSETS
<S> <C>
Investments in securities, at value
(cost $55,974,944) $60,599,667
Dividends and interest receivable 312,825
Receivable for fund shares sold 173,752
Receivable for securities sold 456,803
Other assets 1,887
-----------
Total assets 61,544,934
-----------
LIABILITIES
Payable for securities purchases 141,612
Payable for fund shares redeemed 77,218
Accrued advisory fee 46,562
Accrued distribution fee 130,288
Other accrued expenses 9,505
-----------
Total liabilities 405,185
-----------
Net Assets $61,139,749
===========
NET ASSETS CONSIST OF:
Capital stock, $.01 par value; 8,000,000
shares authorized; 4,774,313 shares
outstanding $55,765,328
Undistributed net investment income 223,834
Undistributed net realized gains 525,864
Net unrealized appreciation on investments 4,624,723
-----------
Net Assets $61,139,749
===========
Net asset value, redemption and offering
price per share $61,139,749/4,774,313) $ 12.81
===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
CHACONIA INCOME & GROWTH FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended June 30, 1999
(Unaudited)
INVESTMENT INCOME:
<S> <C>
Dividends $ 248,805
Interest 476,126
----------
Total investment income 724,931
----------
EXPENSES:
Advisory fees 101,719
Distribution fees 130,288
Administration fees 39,555
Legal fees 49,835
Transfer agent fees 54,707
Printing expense 16,020
Accounting expense 27,711
Audit fees 11,250
Custody fees 7,287
Trustees fees 10,000
Other expenses 15,236
----------
Total expenses 463,608
----------
Net investment income 261,323
----------
NET REALIZED AND UNREALIZED GAINS
ON INVESTMENTS
Net realized gain on investments 548,210
Net increase in unrealized appreciation
on investments 856,546
----------
Net gains on investments 1,404,756
----------
Net increase in net assets resulting
from operations $1,666,079
==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
CHACONIA INCOME & GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE
SIX MONTHS ENDED FOR THE
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DEC 31, 1999
----------- ------------
OPERATIONS:
<S> <C> <C>
Net investment income $ 261,323 $ 351,142
Net realized gain from
investment transactions 548,210 2,356,344
Net increase in unrealized
appreciation on investments 856,546 1,624,709
------------ ------------
Net increase in net assets
resulting from operations 1,666,079 4,332,195
------------ ------------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Dividends from net investment
income 0 (366,583)
Distributions from net realized
gains on investments 0 (2,365,631)
------------ ------------
Change in net assets derived
from investment activities 0 (2,732,214)
------------ ------------
FUND SHARE TRANSACTIONS:
Proceeds from shares sold 20,163,598 26,243,505
Dividends reinvested 0 2,262,655
Payment for shares redeemed (4,452,101) (4,843,886)
------------ ------------
Net increase in net assets from
fund share transactions 15,711,497 23,662,274
------------ ------------
Net increase in net assets 17,377,576 25,262,255
NET ASSETS, BEGINNING
OF PERIOD. 43,762,173 18,499,918
------------ ------------
NET ASSETS, END OF PERIOD. $ 61,139,749 $ 43,762,173
============ ============
</TABLE>
See notes to financial statements
<PAGE>
CHACONIA INCOME & GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
- ---------------
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. The Fund's
investment objective is high current income and capital appreciation.
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. These
policies are in conformity with generally accepted accounting principles. 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.
A. SECURITY VALUATION - Securities traded on national securities exchanges are
valued at the last sales price. Over-the-counter securities 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 which mature in 60 days or less are valued at
costs, 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, 1999 were as follows:
Purchases $35,455,765
Sales $19,078,647
U.S. Government securities transactions included above were
Purchases $6,935,410
Sales $5,450,390
At June 30, 1999, the cost of securities for federal income tax purposes was
$55,974,944. Aggregate gross unrealized appreciation for all securities in which
there was an excess of value over tax costs was $5,771,670 and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax
cost over value was $1,146,947.
4. INVESTMENT MANAGEMENT AGREEMENT AND
- --------------------------------------
OTHER TRANSACTIONS WITH AFFILIATES
- ----------------------------------
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 .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.
During 1999, the Fund incurred legal fees of $49,835 to Foley & Larnder
counsel for the Fund. Mr. Ulice Payne, a partner of the firm, is an officer of
the Fund.
5. DISTRIBUTION FEES
- --------------------
The Board of Directors 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
- --------------------------
Transactions in capital shares for the years listed below were as follows:
FOR THE
SIX MONTHS ENDED FOR THE
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DEC 31, 1998
----------- ------------
Shares sold 1,620,992 2,104,262
Dividend reinvestment 0 181,467
Shares repurchased (356,386) (389,200)
--------- ---------
1,264,606 1,896,529
========= =========
<PAGE>
<TABLE>
<CAPTION>
CHACONIA INCOME & GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS
FOR THE SIX
MONTHS ENDED FOR THE FOR THE FOR THE FOR THE FOR THE
JUNE 30,1999 YEAR ENDED, YEAR ENDED, YEAR ENDED, YEAR ENDED, YEAR ENDED,
UNAUDITED DEC.31, 1998 DEC. 31, 1997 DEC.31, 1996 DEC. 31, 1995 DEC. 31, 1994
--------- ------------ ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.47 $11.47 $10.44 $12.13 $9.94 $10.20
------ ------ ------ ------ ----- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.06 0.11 0.08 0.13 0.24 0.13
Net realized and unrealized gains (losses
on investments 0.28 1.71 2.00 0.55 2.47 (0.13)
------ ------ ------ ------ ----- ------
Total from investment operations 0.34 1.82 2.08 0.68 2.71 0.00
------ ------ ------ ------ ----- ------
LESS DISTRIBUTIONS
Dividend from net Investment income 0.00 (0.11) (0.09) (0.17) (0.23) (0.13)
Distribution in excess of net
investment income 0.00 0.00 0.00 (0.01) 0.00+ 0.00+
Distribution from realized gains 0.00 (0.71) (0.96) (2.15) (0.28) (0.13)
Distribution in excess of net
realized gains on investments 0.00 0.00 0.00 (0.04) 0.00 0.00
------ ------ ------ ------ ----- ------
Total dividends and distributions 0.00 (0.82) (1.05) (2.37) (0.51) (0.26)
Net asset value, end of period $12.81 $12.47 $11.47 $10.44 $12.13 $9.94
====== ====== ====== ====== ====== ======
Total return 2.73% 15.87% 19.98% 5.61% 27.16% 0.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $61,140 $43,762 $18,500 $10,132 $17,809 $12,315
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.75% 1.99% 2.55% 2.84% 2.37% 2.87%
Net investment income 0.99% 1.21% 0.98% 1.03% 2.09% 1.25%
Portfolio turnover rate 39.43% 41.23% 35.04% 72.91% 26.23% 40.13%
<FN>
* Annualized.
+ Less than $.01 per share.
</FN>
</TABLE>
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